UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The
Securities Exchange Act of 1934
Date of report (Date of earliest event reported): August 22, 2005
GENERAL COMMUNICATION, INC.
(Exact Name of Registrant as Specified in its Charter)
Alaska 0-15279 92-0072737
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(State or other (Commission File Number) (IRS Employer
jurisdiction of Identification
incorporation) No.)
2550 Denali Street Suite 1000 Anchorage, Alaska 99503
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (907) 868-5600
NONE
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(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligations of the registrant under any of the
following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
Section 2 - Financial Information
Item 2.05 Costs Associated with Exit or Disposal Activities.
General Communication, Inc. ("GCI" or the "Company") committed to a
reorganization plan on August 22, 2005.
The plan of reorganization was developed to more efficiently meet the demands of
technological and product convergence. The reorganization plan will realign the
company along customer lines rather than product lines. The Company will be
reorganized under Consumer, Commercial, Carrier and Managed Broadband segments,
replacing the Long Distance, Cable, Local Access and Internet services segments.
The reorganization plan will include organizational efficiencies that will
result in the layoff of 76 employees by November 30, 2005. The reorganization is
expected to be complete and become effective on January 1, 2006.
GCI estimates that the range of amounts expected to be incurred in connection
with the reorganization will be $1,500,000 to $2,000,000, of which $1,300,000 to
$1,800,000 will require the use of cash. Substantially all of the expenses are
expected to be attributed to payroll and related employee severance costs.
Although accrual of the estimated costs of the reorganization will reduce the
Company's EBIDTA for the third quarter of 2005, the reorganization is expected
to result in increases in EBITDA during the fourth quarter. GCI's guidance with
respect to revenues and EBITDA remains unchanged for the year ended December 31,
2005. The Company's expectations for future periods remain the same. Guidance
for subsequent periods will be provided, consistent with prior practice,
following completion of the Company's detailed budget for 2006.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
GENERAL COMMUNICATION, INC.
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(Registrant)
Date: August 22, 2005
By /s/
Name: John M. Lowber
Title: Senior Vice President,
Chief Financial Officer,
Secretary and Treasurer
(Principal Financial Officer)