ANCHORAGE, Alaska, March 6, 2013 /PRNewswire-FirstCall/
-- General Communication, Inc. ("GCI") (NASDAQ: GNCMA) today
reported its 2012 results with revenues increasing to $710.2 million over revenues of $679.4 million in 2011, an increase of
$30.8 million or 4.5 percent.
Adjusted EBITDA of $226.8 million
increased $3.2 million or 1.4 percent
over 2011 EBITDA of $223.6 million.
Adjusted EBITDA for the year 2012 was offset by $3.0 million of expenses related to the Alaska
Wireless Network ("AWN") transaction.
Net income for 2012 totaled $9.7
million or earnings per diluted share of $0.23, an increase over net income of
$5.7 million or earnings per diluted
share of $0.12 for 2011.
For the fourth quarter of 2012, revenues totaled $183.7 million, an increase of $14.9 million or 8.8 percent over revenues of
$168.8 million in the fourth quarter
of 2011. Revenues were up $5.2
million or 2.9 percent sequentially when compared to third
quarter 2012 revenues of $178.5
million. Adjusted EBITDA for the fourth quarter of 2012 was
$53.1 million, an increase of
$0.8 million or 1.6 percent over the
fourth quarter of 2011 and a decrease of 10.7 percent from the
third quarter of 2012. The sequential decrease in EBITDA was
primarily due to an increase in COGS and selling, general and
administrative costs.
"GCI's results for 2012 were mostly on track with our
expectations," said Ron Duncan, GCI
president. "Consumer Internet and managed broadband both had very
strong years and we launched the iPhone to very a very positive
customer response, although at a high handset cost."
"We incurred $3 million in AWN
related transaction costs for the year. While we will incur more
costs in 2013, the larger pre closing expense items are behind us.
We continue planning for the AWN closing and the integration of
GCI's and Alaska Communications' wireless networks. We look forward
to announcing the achievement of this milestone following
completion of the required regulatory approvals."
GCI previously provided guidance on revenues of $690 million to $720 million and adjusted EBITDA
of $230 million to $240 million for
the year 2012, excluding expenses related to the Alaska Wireless
Network ("AWN") transaction. GCI's revenue and EBITDA results for
2012 finished in the middle of the revenue range and slightly below
the low end of the EBITDA range, excluding the $3.0 million in expenses related to the AWN
transaction.
The AWN transaction is expected to close during the second
quarter of 2013. The timing of such closing during the quarter will
impact GCI's 2013 results. GCI will issue guidance on consolidated
revenues, EBITDA and AWN's expected preferred distributions for
2013 after the AWN transaction has been approved and completed.
Highlights
- Managed Broadband revenues for 2012 totaled $86.6 million, an increase of $23.3 million or 36.9 percent over 2011,
primarily as a result of sales of broadband service on GCI's
TERRA-Southwest terrestrial network. This was the first full year
of revenues following GCI's significant investment in rural
terrestrial network expansion.
- GCI had 128,900 consumer and commercial cable modem customers
at the end of 2012, an increase of 9,500 over the end of 2011.
Fourth quarter cable modem customers increased by 4,200 over
124,700 customers at the end of the third quarter 2012. Average
monthly revenue per cable modem for the fourth quarter of 2012 was
$72.16, an increase of $11.84 over $60.32
posted for the prior year and $9.31
over $62.85 reported for the third
quarter of 2012.
- GCI entered into a third arrangement under the New Markets Tax
Credit (NMTC) program to help fund Phase 3 of our TERRA-Northwest
project. Phase 3 of our TERRA-NW project continues the extension of
terrestrial broadband service to Kotzebue. The NMTC program was established in
the Community Renewal Tax Relief Act of 2000 to induce capital
investment in qualified low-income communities.
Consumer
Consumer revenues of $353.0 million for the year 2012 were steady as
compared to 2011. An increase in data revenue offset the decreases
in voice and video revenues. Fourth quarter 2012 revenues of
$89.9 million increased $3.6 million over fourth quarter 2011 revenues of
$86.3 million and increased
$3.1 million sequentially. In the
fourth quarter of 2012, growth in data and wireless revenues were
offset mostly by the expected decrease in voice revenue when
compared to the fourth quarter of 2011 and the third quarter of
2012.
Consumer voice revenues of $41.4
million decreased $10.6
million when compared to 2011 as customers continue to
abandon wireline service and shift to wireless. Consumer local
access lines in service at the end of 2012 totaled 69,700, a
decrease of 7,900 lines from the end of 2011. USF high cost support
for wired consumer voice services decreased $2.2 million from the prior year.
Fourth quarter 2012 consumer voice revenues of $9.7 million decreased $1.8 million from the fourth quarter of 2011 and
$0.3 million sequentially. Total
access lines decreased 2,200 lines sequentially.
Consumer video revenues of $115.3
million decreased $3.3 million
or 2.8 percent from 2011. Fourth quarter 2012 video revenues of
$28.7 million decreased by
$0.9 million from the prior year and
were steady on a sequential basis. The decrease is primarily due to
a decline in basic video subscribers. Consumer basic video
subscribers totaled 122,300 at the end of 2012, a decrease of 2,700
subscribers from 2011 and an increase of 100 subscribers over the
third quarter of 2012. GCI has had a steady increase in the number
of customers who subscribe only to cable modem service. Presumably
these access-only customers are purchasing video programming from
other sources including over-the-top providers such as Netflix and
Hulu.
Consumer data revenues of $86.5
million increased $14.5
million or 20.1 percent over 2011. Fourth quarter 2012 data
revenues of $23.1 million increased
16.0 percent over the prior year and 8.1 percent sequentially. The
increase in consumer data revenues for the year and for the fourth
quarter of 2012 is due to an increase in cable modem customers and
increasing monthly usage. GCI added 7,300 consumer cable modem
customers over 2011 and cable modem customer counts increased by
2,500 on a sequential basis. GCI had 115,600 consumer cable modem
customers at the end of 2012 representing 94.5 percent of basic
video subscribers. GCI projects consumer cable modem subscribers
could exceed total consumer basic video subscribers by the end of
2013.
Consumer wireless revenues of $109.8
million for 2012 were steady with the prior year. Fourth
quarter 2012 wireless revenues of $28.4
million increased $3.1 million
or 12.2 percent over 2011 and $1.3
million or 4.9 percent sequentially. The increase was
primarily due to an increase in plan revenue. GCI served 123,000
consumer wireless subscribers at the end of 2012. USF high cost
support for consumer wireless services decreased $3.4 million from the prior year.
Consumer served 90,600 postpaid and pre-paid non-Lifeline
wireless subscribers at the end of 2012, an increase of 8,400 over
the end of the prior year and an increase of 3,300 wireless
customers sequentially. Post paid subscribers increased 7,200 year
over year and 5,900 sequentially. Prepaid subscribers increased 700
over the prior year and decreased by 2,300 customers sequentially.
The sequential decrease in prepaid subscribers is seasonal.
GCI served 32,400 Lifeline customers at the end of 2012. In
compliance with FCC Lifeline program reforms, GCI was required to
recertify all Lifeline subscribers, enrolled as of June 1, 2012, by the end of 2012, with current
subscribers to be recertified annually thereafter. The FCC
recertification process contributed to a decrease of 10,000
Lifeline subscribers in 2012 and a decrease in Lifeline subsidy
support revenues of $2.7 million.
Lifeline subscribers declined by 3,100 on a sequential basis.
Lifeline subscriber counts could decline further as a result of the
annual recertification process or future program changes.
Network Access
Network access revenues of
$105.4 million were steady with the
prior year. Fourth quarter revenues of $26.8
million increased $1.0 million
or 4.0 percent compared to 2011 and decreased $0.7 million or 2.6 percent on a sequential
basis.
Voice revenues for 2012 decreased $1.1
million to $22.5 million from
the prior year. The continued decrease in wireline voice revenues
was expected and is primarily due to wireless and data
substitution. Long distance minutes in 2012 decreased 2.0 percent
from the prior year.
Data revenues were down $6.3
million when compared to $62.5
million in 2011. Fourth quarter 2012 data revenues decreased
$1.0 million to $14.3 million from the prior year and were up
slightly on a sequential basis. The decrease in data revenue when
compared to the prior year on an annual and quarterly basis is
primarily attributable to a decrease in special project revenue and
rate compression.
Wireless revenues, primarily related to roaming traffic,
increased $7.3 million to
$26.8 million, an increase of 37.6
percent over the prior year. Fourth quarter revenues of
$7.1 million increased $2.1 million or 42.8 percent over the prior year
and decreased $0.6 million or 7.7
percent on a sequential basis. The decrease in quarterly sequential
revenues is due to seasonality.
Commercial
Commercial revenues of $143.6 million increased $7.5 million or 5.5 percent over the prior year.
Fourth quarter 2012 revenues of $38.6
million increased 11.8 percent over the fourth quarter of
the prior year and 6.5 percent on a sequential basis.
Commercial data service revenues were $93.4 million in 2012, an increase of 8.7 percent
over 2011. Fourth quarter 2012 revenues were $26.1 million, an increase of $3.8 million or 16.8 percent over the prior year
quarter and a $2.4 million or 10.3
percent increase on a sequential basis. Commercial data service
revenues include both transport charges for data circuits,
professional services which are time and materials charges for GCI
on-site support of customer operations and data center revenues. As
summarized in the table below, data transport charges of
$47.6 million increased by
$3.2 million as compared to 2011,
time and material charges for support activities increased by
$3.4 million to $44.9 million and data center revenues increased
by $0.8 million over 2011.
Millions
$
|
2012
|
2011
|
Q4
2012
|
Q4
2011
|
Data
Transport Charges
|
$47.6
|
$44.4
|
$12.0
|
$11.4
|
Professional Services
|
44.9
|
41.5
|
13.8
|
10.8
|
Data
Center Revenues
|
0.9
|
0.1
|
0.3
|
0.1
|
Total Data
Revenues
|
$93.4
|
$86.0
|
$26.1
|
$22.3
|
Commercial wireless revenues totaled $9.9
million for 2012 and were steady with the prior year. Fourth
quarter 2012 revenues of $2.6 million
were steady with the prior year quarter and on a sequential basis.
GCI had 17,000 commercial wireless subscribers at the end of 2012,
an increase of 1,700 subscribers over the prior year and an
increase of 400 subscribers on a sequential basis.
Managed
Broadband
Managed broadband revenues totaled $86.6
million in 2012, an increase of $23.3
million or 36.9 percent over the prior year. Fourth quarter
2012 revenue of $23.1 million
increased $5.9 million or 34.4
percent over the prior year and $0.5
million or 2.0 percent sequentially. The strong revenue
growth is primarily due to an increase in broadband capacity
utilized on the TERRA Southwest terrestrial network. This was the
first full year of revenues following GCI's significant investment
in rural network expansion.
Regulated Operations
Regulated operations revenues
totaled $21.6 million in 2012, a
decrease of $0.4 million from the
prior year. Regulated operations revenues of $5.4 million for the fourth quarter of 2012
increased $0.3 million over the
fourth quarter of 2011 and were steady with the third quarter of
2012. Regulated operations had 8,300 local access lines at the end
of 2012, a decrease of 800 access lines from 2011 and a decrease of
200 access lines on a sequential basis.
Other Items
SG&A expenses for 2012 totaled
$243.2 million, an increase of 3.3
percent as compared to $235.5 million
for 2011. The increase is due to labor and related benefits and
transaction costs related to AWN. As a percentage of revenues,
SG&A expenses decreased to 34.3 percent in 2012 as compared to
34.7 percent in the prior year.
GCI's 2012 capital expenditures totaled $165.7 million as compared to $186.4 million in 2011. Cash capital expenditures
total $146.0 million for 2012 and
compare to 177.1 million in 2011. GCI's total capital expenditures
for 2012 includes $20.2 million
related to the TERRA-Northwest project all of which was funded with
proceeds from our NMTC transactions and a grant from the Regulatory
Commission of Alaska. GCI expects
cash capital expenditures to total approximately $150 million for 2013, exclusive of the
developing TV broadcast investment plan.
GCI will hold a conference call to discuss the quarter's results
on Thursday, March 7, 2013 beginning
at 2 p.m. (Eastern). To access the
briefing on March 7, call the
conference operator between 1:50-2:00 p.m.
(Eastern Time) at 888-942-9042 (International callers should
dial 1-415-228-4668) and identify your call as "GCI." In addition
to the conference call, GCI will make available net conferencing.
To access the call via net conference, log on to www.gci.com and
follow the instructions. A replay of the call will be available for
72-hours by dialing 866-485-4168, access code 7461 (International
callers should dial 1-203-369-1620.)
GCI is the largest telecommunications company in Alaska. GCI's cable plant, which provides
voice, video, and broadband data services, passes 78 percent of
Alaska households. GCI operates
Alaska's most extensive
terrestrial/subsea fiber optic network which connects not only
Anchorage but also Fairbanks and Juneau/Southeast
Alaska to the lower 48 states with a diversely routed,
protected fiber network. GCI's TERRA-Southwest fiber/microwave
system links 65 communities in the Bristol Bay and Yukon-Kuskokwim
Delta to Anchorage bringing
terrestrial broadband Internet access to the region for the first
time. GCI's satellite network provides communications services to
small towns and communities throughout rural Alaska. GCI's statewide mobile wireless
network seamlessly links urban and rural Alaska.
A pioneer in bundled services, GCI is the top provider of voice,
data, and video services to Alaska
consumers with a 70 percent share of the consumer broadband market.
GCI is also the leading provider of communications services to
enterprise customers, particularly large enterprise customers with
complex data networking needs. More information about GCI can be
found at www.gci.com.
The foregoing contains forward-looking statements regarding
GCI's expected results that are based on management's expectations
as well as on a number of assumptions concerning future events.
Actual results might differ materially from those projected in the
forward looking statements due to uncertainties and other factors,
many of which are outside GCI's control. Additional information
concerning factors that could cause actual results to differ
materially from those in the forward looking statements is
contained in GCI's cautionary statement sections of Forms 10-K and
10-Q filed with the Securities and Exchange Commission.
GENERAL
COMMUNICATION, INC. AND SUBSIDIARIES
|
CONSOLIDATED BALANCE SHEETS
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Amounts
in thousands)
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
Assets
|
|
2012
|
|
2011
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash equivalents
|
|
$
24,491
|
|
29,387
|
|
|
|
|
|
Receivables
|
|
150,436
|
|
141,827
|
Less allowance for doubtful receivables
|
|
3,215
|
|
5,796
|
Net receivables
|
|
147,221
|
|
136,031
|
|
|
|
|
|
Deferred income taxes
|
|
12,897
|
|
15,555
|
Prepaid expenses
|
|
8,441
|
|
7,899
|
Inventories
|
|
12,098
|
|
7,522
|
Other current assets
|
|
1,678
|
|
3,631
|
Total current
assets
|
|
206,826
|
|
200,025
|
|
|
|
|
|
Property
and equipment in service, net of depreciation
|
|
838,247
|
|
849,121
|
Construction in progress
|
|
94,418
|
|
42,918
|
Net property and
equipment
|
|
932,665
|
|
892,039
|
|
|
|
|
|
Cable
certificates
|
|
191,635
|
|
191,635
|
Goodwill
|
|
77,294
|
|
74,883
|
Wireless
licenses
|
|
25,967
|
|
25,967
|
Restricted
cash
|
|
30,933
|
|
15,910
|
Other
intangible assets, net of amortization
|
|
16,560
|
|
15,835
|
Deferred
loan and senior notes costs, net of amortization
|
|
11,189
|
|
12,812
|
Other
assets
|
|
13,453
|
|
17,214
|
Total other assets
|
|
367,031
|
|
354,256
|
Total
assets
|
|
$
1,506,522
|
|
1,446,320
|
|
|
|
|
|
|
|
|
|
(Continued)
|
|
|
|
|
|
|
|
|
|
|
GENERAL
COMMUNICATION, INC. AND SUBSIDIARIES
|
CONSOLIDATED BALANCE SHEETS
|
(Unaudited)
|
(Continued)
|
|
|
|
|
|
|
|
|
|
|
(Amounts
in thousands)
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
Liabilities and Stockholders' Equity
|
|
2012
|
|
2011
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Current maturities of obligations under long-term debt and capital
leases
|
|
$
7,923
|
|
8,797
|
Accounts payable
|
|
52,384
|
|
41,353
|
Deferred revenue
|
|
25,218
|
|
22,003
|
Accrued payroll and payroll related obligations
|
|
19,440
|
|
22,126
|
Accrued interest
|
|
6,786
|
|
6,680
|
Accrued liabilities
|
|
15,242
|
|
11,423
|
Subscriber deposits
|
|
1,366
|
|
1,250
|
Total current
liabilities
|
|
128,359
|
|
113,632
|
|
|
|
|
|
Long-term
debt, net
|
|
875,123
|
|
858,031
|
Obligations under capital leases, excluding current
maturities
|
|
72,725
|
|
78,605
|
Obligation
under capital lease due to related party, excluding current
maturity
|
|
1,892
|
|
1,893
|
Deferred
income taxes
|
|
123,661
|
|
114,234
|
Long-term
deferred revenue
|
|
89,815
|
|
81,822
|
Other
liabilities
|
|
25,511
|
|
24,456
|
Total
liabilities
|
|
1,317,086
|
|
1,272,673
|
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
Common stock (no par):
|
|
|
|
|
Class A. Authorized 100,000 shares;
issued 38,534 and 39,296 shares at December 31, 2012 and 2011,
respectively; outstanding 38,357 and 39,043 shares at December 31,
2012 and 2011, respectively
|
|
22,703
|
|
26,179
|
|
|
|
|
|
Class B. Authorized 10,000 shares;
issued and outstanding 3,169 and 3,171 shares at December 31, 2012
and 2011, respectively; convertible on a share-per-share basis into
Class A common stock
|
|
2,676
|
|
2,679
|
|
|
|
|
|
Less cost of 177 and 253 Class A
common shares held in treasury at December 31, 2012 and 2011,
respectively
|
|
(1,617)
|
|
(2,225)
|
|
|
|
|
|
Paid-in capital
|
|
25,832
|
|
32,795
|
Retained earnings
|
|
107,584
|
|
97,911
|
Total General
Communication, Inc. stockholders' equity
|
|
157,178
|
|
157,339
|
Non-controlling interests
|
|
32,258
|
|
16,308
|
Total
stockholders' equity
|
|
189,436
|
|
173,647
|
|
|
|
|
|
Total
liabilities and stockholders' equity
|
|
$
1,506,522
|
|
1,446,320
|
|
|
|
|
|
GENERAL
COMMUNICATION, INC. AND SUBSIDIARIES
|
CONSOLIDATED INCOME STATEMENTS
|
YEARS
ENDED DECEMBER 31, 2012, 2011 AND 2010
|
|
|
|
|
|
|
|
(Unaudited)
|
(Amounts
in thousands, except per share amounts)
|
2012
|
|
2011
|
|
2010
|
|
|
|
|
|
|
Revenues
|
$710,181
|
|
$679,381
|
|
$651,250
|
|
|
|
|
|
|
Cost of
goods sold (exclusive of depreciation and amortization shown
separately below)
|
247,501
|
|
227,399
|
|
207,817
|
Selling,
general and administrative expenses
|
243,248
|
|
235,521
|
|
228,808
|
Depreciation and amortization
expense
|
130,452
|
|
125,937
|
|
126,699
|
Operating income
|
88,980
|
|
90,524
|
|
87,926
|
|
|
|
|
|
|
Other
income (expense):
|
|
|
|
|
|
Interest expense (including amortization of deferred loan
fees)
|
(67,747)
|
|
(68,258)
|
|
(70,329)
|
Loss on extinguishment of debt
|
-
|
|
(9,111)
|
|
-
|
Other
|
17
|
|
(264)
|
|
261
|
Other expense, net
|
(67,730)
|
|
(77,633)
|
|
(70,068)
|
|
|
|
|
|
|
Income before income tax
expense
|
21,250
|
|
12,891
|
|
17,858
|
|
|
|
|
|
|
Income tax
expense
|
12,088
|
|
7,405
|
|
9,248
|
|
|
|
|
|
|
Net income
|
9,162
|
|
5,486
|
|
8,610
|
|
|
|
|
|
|
Net loss
attributable to the non-controlling interests
|
511
|
|
238
|
|
-
|
|
|
|
|
|
|
Net income attributable to General
Communication, Inc.
|
$
9,673
|
|
$
5,724
|
|
$
8,610
|
|
|
|
|
|
|
Basic net
income attributable to General Communication, Inc. common
stockholders per Class A common share
|
$
0.23
|
|
$
0.13
|
|
$
0.16
|
Basic net
income attributable to General Communication, Inc. common
stockholders per Class B common share
|
$
0.23
|
|
$
0.13
|
|
$
0.16
|
Diluted
net income attributable to General Communication, Inc. common
stockholders per Class A common share
|
$
0.23
|
|
$
0.12
|
|
$
0.16
|
Diluted
net income attributable to General Communication, Inc. common
stockholders per Class B common share
|
$
0.23
|
|
$
0.12
|
|
$
0.16
|
Common
shares used to calculate Class A basic EPS
|
38,560
|
|
42,175
|
|
50,076
|
|
|
|
|
|
|
Common
shares used to calculate Class A diluted EPS
|
42,119
|
|
45,889
|
|
53,426
|
|
|
|
|
|
|
|
|
|
|
|
|
GENERAL
COMMUNICATION, INC. AND SUBSIDIARIES
|
SUPPLEMENTAL SCHEDULES
|
(Unaudited)
|
(Amounts
in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth
Quarter 2012
|
|
Fourth
Quarter 2011
|
|
|
Network
|
|
Managed
|
Regulated
|
|
|
|
Network
|
|
Managed
|
Regulated
|
|
|
Consumer
|
Access
|
Commercial
|
Broadband
|
Operations
|
Totals
|
|
Consumer
|
Access
|
Commercial
|
Broadband
|
Operations
|
Totals
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Voice
|
$
9,708
|
5,306
|
6,591
|
-
|
5,360
|
26,965
|
|
$
11,511
|
5,429
|
6,662
|
-
|
5,044
|
28,646
|
Video
|
28,656
|
-
|
3,343
|
-
|
-
|
31,999
|
|
29,595
|
-
|
2,999
|
-
|
-
|
32,594
|
Data
|
23,115
|
14,336
|
26,058
|
23,131
|
-
|
86,640
|
|
19,931
|
15,321
|
22,308
|
17,207
|
-
|
74,767
|
Wireless
|
28,379
|
7,125
|
2,568
|
-
|
-
|
38,072
|
|
25,299
|
4,991
|
2,515
|
-
|
-
|
32,805
|
Total
|
89,858
|
26,767
|
38,560
|
23,131
|
5,360
|
183,676
|
|
86,336
|
25,741
|
34,484
|
17,207
|
5,044
|
168,812
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
goods sold
|
36,092
|
5,953
|
19,086
|
6,911
|
1,772
|
69,814
|
|
27,938
|
5,972
|
16,140
|
3,987
|
1,628
|
55,665
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contribution
|
53,766
|
20,814
|
19,474
|
16,220
|
3,588
|
113,862
|
|
58,398
|
19,769
|
18,344
|
13,220
|
3,416
|
113,147
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less
SG&A
|
35,146
|
6,903
|
10,709
|
6,319
|
2,913
|
61,990
|
|
36,550
|
8,189
|
10,959
|
5,234
|
3,546
|
64,478
|
Less Other
expense
|
-
|
-
|
-
|
115
|
-
|
115
|
|
-
|
-
|
-
|
205
|
-
|
205
|
EBITDA
|
18,620
|
13,911
|
8,765
|
9,786
|
675
|
51,757
|
|
21,848
|
11,580
|
7,385
|
7,781
|
(130)
|
48,464
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add
share-based compensation
|
539
|
158
|
228
|
117
|
8
|
1,050
|
|
1,769
|
646
|
630
|
335
|
16
|
3,396
|
Add
accretion
|
(19)
|
(6)
|
(5)
|
(3)
|
-
|
(33)
|
|
93
|
30
|
27
|
13
|
-
|
163
|
Add loss
from noncontrolling interests
|
-
|
-
|
-
|
336
|
-
|
336
|
|
-
|
-
|
-
|
238
|
-
|
238
|
Adjusted EBITDA
|
$
19,140
|
14,063
|
8,988
|
10,236
|
683
|
53,110
|
|
$
23,710
|
12,256
|
8,042
|
8,367
|
(114)
|
52,261
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GENERAL
COMMUNICATION, INC. AND SUBSIDIARIES
|
SUPPLEMENTAL SCHEDULES
|
(Unaudited)
|
(Amounts
in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth
Quarter 2012
|
|
Third
Quarter 2012
|
|
|
Network
|
|
Managed
|
Regulated
|
|
|
|
Network
|
|
Managed
|
Regulated
|
|
|
Consumer
|
Access
|
Commercial
|
Broadband
|
Operations
|
Totals
|
|
Consumer
|
Access
|
Commercial
|
Broadband
|
Operations
|
Totals
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Voice
|
$
9,708
|
5,306
|
6,591
|
-
|
5,360
|
26,965
|
|
$
9,968
|
5,664
|
6,896
|
-
|
5,319
|
27,847
|
Video
|
28,656
|
-
|
3,343
|
-
|
-
|
31,999
|
|
28,394
|
-
|
3,142
|
-
|
-
|
31,536
|
Data
|
23,115
|
14,336
|
26,058
|
23,131
|
-
|
86,640
|
|
21,379
|
14,093
|
23,622
|
22,685
|
-
|
81,779
|
Wireless
|
28,379
|
7,125
|
2,568
|
-
|
-
|
38,072
|
|
27,066
|
7,718
|
2,548
|
-
|
-
|
37,332
|
Total
|
89,858
|
26,767
|
38,560
|
23,131
|
5,360
|
183,676
|
|
86,807
|
27,475
|
36,208
|
22,685
|
5,319
|
178,494
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
goods sold
|
36,092
|
5,953
|
19,086
|
6,911
|
1,772
|
69,814
|
|
33,027
|
6,194
|
16,607
|
5,230
|
1,696
|
62,754
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contribution
|
53,766
|
20,814
|
19,474
|
16,220
|
3,588
|
113,862
|
|
53,780
|
21,281
|
19,601
|
17,455
|
3,623
|
115,740
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less
SG&A
|
35,146
|
6,903
|
10,709
|
6,319
|
2,913
|
61,990
|
|
33,699
|
6,157
|
10,028
|
5,723
|
2,621
|
58,228
|
Less Other
expense
|
-
|
-
|
-
|
115
|
-
|
115
|
|
-
|
-
|
-
|
(164)
|
-
|
(164)
|
EBITDA
|
18,620
|
13,911
|
8,765
|
9,786
|
675
|
51,757
|
|
20,081
|
15,124
|
9,573
|
11,896
|
1,002
|
57,676
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add
share-based compensation
|
539
|
158
|
228
|
117
|
8
|
1,050
|
|
723
|
224
|
286
|
155
|
7
|
1,395
|
Add
accretion
|
(19)
|
(6)
|
(5)
|
(3)
|
-
|
(33)
|
|
112
|
35
|
33
|
21
|
-
|
201
|
Add loss
from noncontrolling interests
|
-
|
-
|
-
|
336
|
-
|
336
|
|
-
|
-
|
-
|
177
|
-
|
177
|
Add
non-cash contribution
|
-
|
-
|
-
|
-
|
-
|
-
|
|
-
|
-
|
-
|
-
|
-
|
-
|
Adjusted EBITDA
|
$
19,140
|
14,063
|
8,988
|
10,236
|
683
|
53,110
|
|
$
20,916
|
15,383
|
9,892
|
12,249
|
1,009
|
59,449
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GENERAL
COMMUNICATION, INC. AND SUBSIDIARIES
|
SUPPLEMENTAL SCHEDULES
|
(Unaudited)
|
(Amounts
in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve
Months Ended December 31, 2012
|
|
Twelve
Months Ended December 31, 2011
|
|
|
Network
|
|
Managed
|
Regulated
|
|
|
|
Network
|
|
Managed
|
Regulated
|
|
|
Consumer
|
Access
|
Commercial
|
Broadband
|
Operations
|
Totals
|
|
Consumer
|
Access
|
Commercial
|
Broadband
|
Operations
|
Totals
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Voice
|
$
41,439
|
22,496
|
27,377
|
-
|
21,625
|
112,937
|
|
$
52,052
|
23,553
|
28,712
|
-
|
22,002
|
126,319
|
Video
|
115,307
|
-
|
12,841
|
-
|
-
|
128,148
|
|
118,635
|
-
|
11,605
|
-
|
-
|
130,240
|
Data
|
86,466
|
56,194
|
93,434
|
86,562
|
-
|
322,656
|
|
71,977
|
62,456
|
85,961
|
63,248
|
-
|
283,642
|
Wireless
|
109,760
|
26,757
|
9,923
|
-
|
-
|
146,440
|
|
109,910
|
19,447
|
9,823
|
-
|
-
|
139,180
|
Total
|
352,972
|
105,447
|
143,575
|
86,562
|
21,625
|
710,181
|
|
352,574
|
105,456
|
136,101
|
63,248
|
22,002
|
679,381
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
goods sold
|
128,324
|
24,356
|
66,895
|
21,298
|
6,628
|
247,501
|
|
110,693
|
28,744
|
65,170
|
17,021
|
5,771
|
227,399
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contribution
|
224,648
|
81,091
|
76,680
|
65,264
|
14,997
|
462,680
|
|
241,881
|
76,712
|
70,931
|
46,227
|
16,231
|
451,982
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less
SG&A
|
139,191
|
26,841
|
42,014
|
24,087
|
11,115
|
243,248
|
|
134,951
|
27,837
|
41,085
|
18,246
|
13,402
|
235,521
|
Less Other
expense
|
-
|
-
|
-
|
(2)
|
-
|
(2)
|
|
-
|
-
|
-
|
297
|
-
|
297
|
EBITDA
|
85,457
|
54,250
|
34,666
|
41,179
|
3,882
|
219,434
|
|
106,930
|
48,875
|
29,846
|
27,684
|
2,829
|
216,164
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add
share-based compensation
|
2,586
|
790
|
1,041
|
595
|
28
|
5,040
|
|
3,457
|
1,214
|
1,276
|
657
|
16
|
6,620
|
Add
accretion
|
533
|
169
|
156
|
102
|
-
|
960
|
|
347
|
120
|
100
|
52
|
-
|
619
|
Add loss
from noncontrolling interests
|
-
|
-
|
-
|
867
|
-
|
867
|
|
-
|
-
|
-
|
238
|
-
|
238
|
Add
non-cash contribution adjustment
|
282
|
89
|
83
|
54
|
-
|
508
|
|
-
|
-
|
-
|
-
|
-
|
-
|
Adjusted EBITDA
|
$
88,858
|
55,298
|
35,946
|
42,797
|
3,910
|
226,809
|
|
$110,734
|
50,209
|
31,222
|
28,631
|
2,845
|
223,641
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GENERAL
COMMUNICATION, INC. AND SUBSIDIARIES
|
KEY
PERFORMANCE INDICATORS
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31, 2012
|
|
December
31, 2012
|
|
|
|
|
|
|
as
compared to
|
|
as
compared to
|
|
|
December
31,
|
December
31,
|
September
30,
|
|
December
31,
|
September
30,
|
|
December
31,
|
September
30,
|
|
|
2012
|
2011
|
2012
|
|
2011
|
2012
|
|
2011
|
2012
|
Consumer
|
|
|
|
|
|
|
|
|
|
Voice
|
|
|
|
|
|
|
|
|
|
|
Local
service lines in service
|
69,700
|
77,600
|
71,900
|
|
(7,900)
|
(2,200)
|
|
-10.2%
|
-3.1%
|
|
Local
access lines in service on GCI facilities
|
64,900
|
72,000
|
66,900
|
|
(7,100)
|
(2,000)
|
|
-9.9%
|
-3.0%
|
|
|
|
|
|
|
|
|
|
|
|
Video
|
|
|
|
|
|
|
|
|
|
|
Basic
subscribers
|
122,300
|
125,000
|
122,200
|
|
(2,700)
|
100
|
|
-2.2%
|
0.1%
|
|
Digital
programming tier subscribers
|
72,500
|
75,600
|
72,000
|
|
(3,100)
|
500
|
|
-4.1%
|
0.7%
|
|
HD/DVR
converter boxes
|
90,400
|
89,400
|
89,200
|
|
1,000
|
1,200
|
|
1.1%
|
1.3%
|
|
Homes
passed
|
243,600
|
242,100
|
242,400
|
|
1,500
|
1,200
|
|
0.6%
|
0.5%
|
|
|
|
|
|
|
|
|
|
|
|
Data
|
|
|
|
|
|
|
|
|
|
|
Cable
modem subscribers
|
115,600
|
108,300
|
113,100
|
|
7,300
|
2,500
|
|
6.7%
|
2.2%
|
|
|
|
|
|
|
|
|
|
|
|
Wireless
|
|
|
|
|
|
|
|
|
|
|
Wireless
Lifeline lines in service
|
32,400
|
42,400
|
35,500
|
|
(10,000)
|
(3,100)
|
|
-23.6%
|
-8.7%
|
|
Wireless
Postpaid lines in service
|
81,600
|
73,900
|
76,000
|
|
7,700
|
5,600
|
|
10.4%
|
7.4%
|
|
Wireless
Prepaid lines in service
|
9,000
|
8,300
|
11,300
|
|
700
|
(2,300)
|
|
8.4%
|
-20.4%
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
|
|
|
|
|
|
|
|
|
Voice
|
|
|
|
|
|
|
|
|
|
|
Total
local access lines in service
|
51,600
|
51,400
|
51,800
|
|
200
|
(200)
|
|
0.4%
|
-0.4%
|
|
Local
access lines in service on GCI facilities
|
30,800
|
28,700
|
30,500
|
|
2,100
|
300
|
|
7.3%
|
1.0%
|
|
|
|
|
|
|
|
|
|
|
|
Video
|
|
|
|
|
|
|
|
|
|
|
Hotels and
mini-headend subscribers
|
15,800
|
15,700
|
18,500
|
|
100
|
(2,700)
|
|
0.6%
|
-14.6%
|
|
Basic
subscribers
|
1,900
|
1,900
|
1,900
|
|
-
|
-
|
|
0.0%
|
0.0%
|
|
Total basic subscribers
|
17,700
|
17,600
|
20,400
|
|
100
|
(2,700)
|
|
0.6%
|
-13.2%
|
|
|
|
|
|
|
|
|
|
|
|
Data
|
|
|
|
|
|
|
|
|
|
|
Cable
modem subscribers
|
13,300
|
11,100
|
11,600
|
|
2,200
|
1,700
|
|
19.8%
|
14.7%
|
|
|
|
|
|
|
|
|
|
|
|
Wireless
|
|
|
|
|
|
|
|
|
|
|
Wireless
lines in service
|
17,000
|
15,300
|
16,600
|
|
1,700
|
400
|
|
11.1%
|
2.4%
|
|
|
|
|
|
|
|
|
|
|
|
Regulated Operations
|
|
|
|
|
|
|
|
|
|
Voice:
|
|
|
|
|
|
|
|
|
|
|
Total
local access lines in service
|
8,300
|
9,100
|
8,500
|
|
(800)
|
(200)
|
|
-8.8%
|
-2.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31, 2012
|
|
December
31, 2012
|
|
|
Three
Months Ended
|
|
as
Compared to
|
|
as
Compared to
|
|
|
December
31,
|
December
31,
|
September
30,
|
|
December
31,
|
September
30,
|
|
December
31,
|
September
30,
|
|
|
2012
|
2011
|
2012
|
|
2011
|
2012
|
|
2011
|
2012
|
Consumer
|
|
|
|
|
|
|
|
|
|
Video
|
|
|
|
|
|
|
|
|
|
|
Average
monthly revenue per subscriber
|
$
77.99
|
$
78.51
|
$
77.45
|
|
$
(0.52)
|
$
0.54
|
|
-0.7%
|
0.7%
|
|
|
|
|
|
|
|
|
|
|
|
Wireless
|
|
|
|
|
|
|
|
|
|
|
Average
monthly revenue per subscriber
|
$
71.85
|
$
61.40
|
$
67.98
|
|
$
10.45
|
$
3.87
|
|
17.0%
|
5.7%
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
Voice
|
|
|
|
|
|
|
|
|
|
|
Long-distance minutes carried (in
millions)
|
227.2
|
231.3
|
243.0
|
|
(4.1)
|
(15.8)
|
|
-1.8%
|
-6.5%
|
|
|
|
|
|
|
|
|
|
|
|
Data
|
|
|
|
|
|
|
|
|
|
|
Average
monthly revenue per cable modem subscriber
|
$
72.16
|
$
60.32
|
$
62.85
|
|
$
11.84
|
$
9.31
|
|
19.6%
|
14.8%
|
|
|
|
|
|
|
|
|
|
|
|
General
Communication, Inc.
|
Non-GAAP Financial Reconciliation
Schedule
|
(Unaudited, Amounts in Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
|
December
31,
|
|
December
31,
|
|
September
30,
|
|
|
2012
|
|
2011
|
|
2012
|
Net income
(loss)
|
$
|
0.6
|
|
(1.1)
|
|
3.5
|
Income tax
expense (benefit)
|
|
1.7
|
|
0.1
|
|
5.3
|
Income
(loss) before income tax expense (benefit)
|
|
2.3
|
|
(1.0)
|
|
8.8
|
|
|
|
|
|
|
|
Other
expense:
|
|
|
|
|
|
|
Interest
expense (including amortization of deferred loan fees)
|
|
16.8
|
|
16.9
|
|
16.8
|
Other
|
|
0.2
|
|
0.2
|
|
(0.2)
|
Other
expense, net
|
|
17.0
|
|
17.1
|
|
16.6
|
|
|
|
|
|
|
|
Operating
income
|
|
19.3
|
|
16.1
|
|
25.4
|
Depreciation and amortization expense
|
|
32.6
|
|
32.6
|
|
32.1
|
Equity
investment
|
|
(0.1)
|
|
(0.2)
|
|
0.2
|
|
|
|
|
|
|
|
EBITDA
(Note 2)
|
|
51.8
|
|
48.5
|
|
57.7
|
Share-based compensation
|
|
1.0
|
|
3.4
|
|
1.4
|
Accretion
|
|
-
|
|
0.2
|
|
0.2
|
Non-controlling interests
|
|
0.3
|
|
0.2
|
|
0.1
|
Adjusted
EBITDA (Note 1)
|
$
|
53.1
|
|
52.3
|
|
59.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General
Communication, Inc.
|
Non-GAAP Financial Reconciliation
Schedule
|
(Unaudited, Amounts in Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
Ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2012
|
|
2011
|
Net
income
|
$
|
9.2
|
|
5.5
|
Income tax
expense
|
|
12.1
|
|
7.4
|
Income
before income tax expense
|
|
21.3
|
|
12.9
|
|
|
|
|
|
Other
expense:
|
|
|
|
|
Interest
expense (including amortization of deferred loan fees)
|
|
67.7
|
|
68.3
|
Loss on
extinguishment of debt
|
|
-
|
|
9.1
|
Other
|
|
-
|
|
0.2
|
Other
expense, net
|
|
67.7
|
|
77.6
|
|
|
|
|
|
Operating
income
|
|
89.0
|
|
90.5
|
Depreciation and amortization expense
|
|
130.4
|
|
125.9
|
Other
|
|
-
|
|
(0.2)
|
|
|
|
|
|
EBITDA
(Note 2)
|
|
219.4
|
|
216.2
|
Share-based compensation
|
|
5.0
|
|
6.6
|
Accretion
|
|
0.5
|
|
0.6
|
Non-controlling interests
|
|
0.9
|
|
0.2
|
Non-cash
contribution adjustment
|
|
1.0
|
|
-
|
Adjusted
EBITDA (Note 1)
|
$
|
226.8
|
|
223.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes:
|
(1)
|
EBITDA (as
defined in Note 2 below) before deducting share-based
compensation, accretion expense,
and net loss attributable to non-controlling interests and
non-cash contribution
adjustment.
|
|
|
(2)
|
Earnings
Before Interest, Taxes, Depreciation and Amortization is the sum of
Net Income, Interest Expense
(including Amortization of Deferred Loan Fees), Interest
Income, Income Tax Expense, and
Depreciation and Amortization Expense. EBITDA is not presented as an alternative measure of
net income, operating income or
cash flow from operations, as determined in accordance with
accounting principles generally
accepted in the United States of America. GCI's management
uses EBITDA to evaluate the operating
performance of its business, and as a measure of performance for incentive compensation
purposes. GCI believes EBITDA is a
measure used as an analytical indicator of income generated to
service debt and fund capital
expenditures. In addition, multiples of current or projected
EBITDA are used to estimate current or
prospective enterprise value. EBITDA does not give effect to cash used for debt service
requirements, and thus does not reflect funds available for investment or other discretionary
uses. EBITDA as presented herein
may not be comparable to similarly titled measures reported by
other companies.
|
SOURCE General Communication, Inc.