Attached files
| file | filename |
|---|---|
| EX-4.2 - EXHIBIT 4.2 - GRIZZLY MERGER SUB 1, LLC | exhibit4-2.htm |
| EX-99.2 - EXHIBIT 99.2 - GRIZZLY MERGER SUB 1, LLC | exhibit99-2.htm |
| 8-K - GENERAL COMMUNICATION, INC. FORM 8-K - GRIZZLY MERGER SUB 1, LLC | gciform8k110309.htm |
November 4, 2009
John Lowber, (907) 868-5628; jlowber@gci.com
Bruce Broquet, (907) 868-6660; bbroquet@gci.com
David Morris, (907) 265-5396; dmorris@gci.com
FOR IMMEDIATE RELEASE
GCI REPORTS THIRD QUARTER 2009 FINANCIAL RESULTS
|
· |
Consolidated revenue of $150.8 million |
|
· |
Adjusted EBITDA of $50.3 million |
|
· |
Net income of $4.3 million or $0.08 per diluted share |
ANCHORAGE, AK -- GCI (NASDAQ:GNCMA) today reported third quarter 2009 revenues of $150.8 million as compared to revenues of $151.7 million in the third quarter of 2008. Third quarter 2009 earnings before interest, taxes, depreciation,
amortization and adjusted for share-based compensation and non-cash contribution (adjusted EBITDA) totaled $50.3 million. Adjusted EBITDA increased $2.5 million or 5.3 percent from the third quarter of 2008.
GCI’s third quarter 2009 net income totaled $4.3 million or earnings per diluted share of $0.08 and compares to net income of $0.3 million, or earnings per diluted share of $0.00 for the same period of 2008.
Third quarter 2009 revenues increased $2.0 million over total revenues of $148.8 million in the second quarter of 2009. Second quarter revenues included an accrual of approximately $2.4 million of Competitive Eligible Telecommunications Carrier (CETC) revenues that were attributable
to prior quarters. Adjusted EBITDA decreased $0.9 million, or 1.9 percent from adjusted EBITDA of $51.2 million also in the second quarter of 2009. Second quarter EBITDA was favorably affected by the previously mentioned accrual of CETC revenues attributable to prior quarters.
“GCI turned in another strong quarter with good financial results driven by solid customer metrics,” said GCI president Ron Duncan. ”Led by increases of 7,400 wireless and 3,200 new cable modem subscribers, consumer customer counts were up in all categories
year-over-year and in three out of four categories on a sequential basis. These customer metrics are the leading indicators of our financial performance and they continue to grow across the board as our customers voraciously purchase GCI products.”
“After the quarter’s end we sold $425 million in 8 5/8 percent senior unsecured notes to refinance our bank debt. Following the closing of the transaction this week we have approximately $40 million in cash and only $2.8 million in letters of credit commitments against our existing and pending new $75 million line
of credit. This transaction essentially bullet proofs our balance sheet, giving us protection from refinancing risk and further unexpected changes in the financial markets. It increases the company’s financial flexibility and fully funds our business plans for the foreseeable future. We can now focus on executing our business plan and growing value for our shareholders.”
“The Alaska economy largely continues to resist the recessionary impacts from the global recession. Jobs in Alaska, measured on a year-over-year basis, were down for the last five months, yet the job loss at the end of September totaled just 2,000, on a statewide employment
base in excess of 330,000. Certain segments of the Alaska economy--like tourism--are feeling a material adverse impact but on the whole declines are being offset by growth in other areas. Alaska labor data may be lagging real time trends to some extent, however the data suggest the slight downward trend is not accelerating. While we continue to see slowing revenue growth in certain segments of our business we are encouraged by our positive customer trends. While we now don’t expect to meet our original
goal of $200 million in EBITDA for 2009, we won’t miss it by much and for the second quarter in a row we are operating at an annualized run rate in excess of $200 million.”
Highlights
|
· |
GCI added 7,400 consumer and commercial wireless subscribers in the third quarter of 2009. Wireless subscribers totaled 120,000 at the end of the quarter. |
|
· |
Consumer revenues totaled $75.0 million, an increase of 12.8 percent over the third quarter of 2008 and an increase of 2.2 percent over the second quarter of 2009. The year-over-year increases in revenues were in all product lines. |
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· |
Consumer, network access, commercial and regulated operations access lines totaled 143,000 at the end of the third quarter of 2009, representing an estimated 34 percent share of the total access line market in Alaska. Access lines increased by 1,100 lines over the second quarter of 2009. |
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· |
GCI has provisioned 104,400 access lines representing 73 percent of its total access lines on its own facilities at the end of the third quarter of 2009, an increase of 2,800 lines over the second quarter of 2009 and an increase of 8,100 lines when compared to the end of the third quarter of the prior year. The company had provisioned 96,300 access lines on its
own facilities at the end of the third quarter of 2008. |
|
· |
GCI had 108,500 consumer and commercial cable modem access customers at the end of the third quarter of 2009, an increase of 3,200 over the 105,300 cable modem customers at the end of the second quarter 2009. Average monthly revenue per cable modem totaled $43.42 for the third quarter of 2009 as compared to $39.23 in the prior year, an increase of 10.7 percent and
is up 2.9 percent over $42.19 for the second quarter of 2009. The increase in average monthly revenues arises primarily from customers upgrading to plans with increased levels of service. |
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· |
GCI had 149,300 basic video subscribers at the end of the third quarter of 2009, an increase of 1,100 over the third quarter of 2008 and a decrease of 2,400 from the second quarter of 2009. |
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· |
GCI closed a $425 million, 8 5/8 percent, senior unsecured notes offering. The proceeds from the over subscribed offering were used to retire all outstanding amounts under an existing senior secured credit facility and the remainder will be used for general corporate purposes. |
Consumer
Consumer revenues increased 12.8 percent to $75.0 million as compared to $66.5 million in the third quarter of 2008 and increased 2.2 percent over the second quarter of 2009. The year-over-year increases in revenue were across all product lines
Consumer voice revenues were up 7.8 percent over the prior year and down 3.9 percent from the second quarter of 2009. Consumer local access lines in service for the third quarter were up 3,500 lines over the third quarter of 2008. Access lines in the third quarter increased by
1,500 compared to the second quarter of 2009.
GCI serves 72,700 consumer access lines on its own facilities, an increase of 2,400 lines over the second quarter of 2009. More than 88 percent of consumer access lines are completely provisioned on GCI owned facilities.
Consumer video revenues increased 5.2 percent over the prior year and increased 1.8 percent from the second quarter of 2009. The increase in revenue is due in part to an increase in subscribers purchasing higher tier services including high definition or digital service and renting
high definition/digital video recorders. Consumer video subscribers totaled 129,600 at the end of the third quarter of 2009.
Consumer data revenues increased 18.4 percent over the prior year and 4.6 percent over the second quarter of 2009. The increase in consumer data revenues is due to an increase in cable modem customers and an increase in average monthly revenue per modem subscriber. The increase
in average monthly revenues arises in part from customers upgrading to plans with increased levels of service. GCI added
5,800 consumer cable modem customers over the prior year and cable modem customer counts increased by 3,000 on a sequential basis over the second quarter of 2009.
Consumer wireless revenues increased to $22.2 million, an increase of 23.9 percent over the third quarter of 2008. The increase in wireless revenues is primarily due to an increase in wireless subscribers. Consumer has added 28,700 wireless lines in service from the end of the
third quarter a year ago, an increase of 35.3 percent. Consumer wireless revenues increased $3.5 million sequentially over the second quarter of 2009 not including the accrual of $2.4 million in CETC revenues in the second quarter that were attributable to prior quarters. Consumer added 6,300 wireless customers as compared to the end of the second quarter of 2009.
Network Access
Network access revenues decreased 22.0 percent to $30.3 million as compared to $38.8 million in the third quarter of 2008 and decreased 2.8 percent from the second quarter of 2009.
Voice revenues, as expected, decreased 38.0 percent from the prior year and 9.3 percent from the second quarter of 2009. The decrease in voice revenues and corresponding minutes as compared to the prior year is primarily due to the migration of AT&T Mobility traffic from our
network. Minutes for the third quarter of 2009 increased 4.2 percent over the second quarter of 2009.
Data revenues for the third quarter of 2009 were down 18.0 percent compared to the third quarter 2008 and decreased 7.4 percent from the second quarter of 2009. The decrease in data revenues from the prior year is primarily attributable to a customer’s conversion from leased
to purchased capacity on GCI’s fiber systems. The fiber purchase occurred in the prior year. The sequential decrease is mostly attributable to rate compression.
Wireless revenues, primarily related to roaming traffic, increased $2.2 million over the prior year and increased $1.6 million sequentially.
Commercial
Commercial revenues decreased $2.4 million to $27.8 million as compared to $30.2 million in the third quarter of 2008 and increased $0.9 million over $26.9 million in the second quarter of 2009. The decrease in commercial revenues was primarily due to a decrease in the time and
materials category of commercial data services as oil field operators and global outsource customers reduced spending. Commercial video revenues were also down year over year coming off the elections of the prior year. Sequential commercial revenue increases are due to growth in wireless and the return of a portion of the time and materials revenues in the data segment.
Voice revenues increased 1.2 percent over the prior year primarily due to an increase in local service access lines. Long distance minutes decreased 8.3 percent from the prior year and 3.7 percent from the second quarter of 2009. Commercial local access lines increased by 1,100
over the third quarter of 2008 and were stable sequentially.
Commercial video revenues were down $0.7 million from the prior year, as expected, due to the previous years advertising revenues from the November 2008 election as well as the Olympics.
Commercial data service revenues – including time and materials charges - totaled $15.8 million in the third quarter of 2009, down $2.3 million from the third quarter of 2008 and up $0.4 million from the second quarter of 2009. The decrease in data revenues from the prior
year is primarily attributable to reduced time and materials revenues. Time and materials revenues are down primarily due to decreased activity in the state’s oil sector.
Wireless revenues totaled $2.0 million for the third quarter, an increase of 37.8 percent over the prior year and an increase of 24.7 percent over the second quarter of 2009. GCI had 10,100 commercial wireless subscribers at the end of the third quarter, an increase of 1,200 subscribers
over the second quarter of 2009.
Managed Broadband
Managed broadband revenues totaled $11.7 million in the third quarter of 2009, an increase of 13.8 percent over $10.3 million in the third quarter of 2008. Revenue for the third quarter was up 6.5 percent over the $11.0 million reported in the second
quarter of 2009.
Regulated Operations
Regulated operations revenues totaled $6.0 million as compared to $5.9 million in the third quarter of 2008. Adjusted EBITDA totaled $1.3 million for the third quarter of 2009, relatively unchanged from the prior year. Regulated operations has 11,300 local access lines at the end
of the third quarter of 2009, a decrease of 300 access lines from the second quarter of 2009. As GCI rolls out more statewide wireless coverage further access line decreases are expected due to wireless substitution.
Other Items
During the third quarter of 2009 GCI’s capital expenditures totaled $31.5 million as compared to $29.7 million in the second quarter of 2009. For the nine months ended September 30, 2009, GCI capital expenditures total $85.6 million.
GCI will hold a conference call to discuss the quarter’s results on Thursday, November 5, 2009 beginning at 2 p.m. (Eastern). To access the briefing on November 5, call the conference operator between 1:50 p.m. and 2 p.m. (Eastern Time) at 888-316-9408 (International callers
should dial 1-312-470-7175) 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 800-925-1779, access code 7461 (International callers should dial 402-220-3079.)
GCI is the largest telecommunications company in Alaska. The company’s cable plant, which provides voice, video, and broadband data services, passes 90 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 to the lower 48 states with a diversely routed, protected fiber network. The company’s satellite network provides communications services to small towns and villages throughout rural Alaska. GCI is in the process of constructing Alaska’s first truly statewide mobile wireless network, which will seamlessly link urban and rural Alaska for the first time in the state’s history.
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 the company can be found at www.gci.com.
The foregoing contains forward-looking statements regarding the company’s expected results that are based on management’s expectations as well as on a number of assumptions concerning future events. Actual results may 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 Form 10-K and 10-Q filed with the Securities and Exchange Commission.
# # #
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GENERAL COMMUNICATION, INC. AND SUBSIDIARIES |
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CONSOLIDATED BALANCE SHEETS |
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(Unaudited) |
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(Amounts in thousands) |
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September 30, |
December 31, |
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Assets |
2009 |
2008 |
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Current assets: |
||||||||
|
Cash and cash equivalents |
$ | 22,503 | 29,904 | |||||
|
|
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Receivables |
133,405 | 113,136 | ||||||
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Less allowance for doubtful receivables |
5,757 | 2,582 | ||||||
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Net receivables |
127,648 | 110,554 | ||||||
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Deferred income taxes |
13,847 | 7,843 | ||||||
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Inventories |
8,111 | 7,085 | ||||||
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Prepaid expenses |
5,046 | 5,960 | ||||||
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Investment securities |
905 | 1,563 | ||||||
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Other current assets |
4,411 | 647 | ||||||
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Total current assets |
182,471 | 163,556 | ||||||
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|
||||||||
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Property and equipment in service, net of depreciation |
815,450 | 793,051 | ||||||
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Construction in progress |
30,026 | 54,098 | ||||||
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Net property and equipment |
845,476 | 847,149 | ||||||
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|
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Cable certificates |
191,565 | 191,565 | ||||||
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Goodwill |
68,586 | 66,868 | ||||||
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Wireless licenses |
25,967 | 25,967 | ||||||
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Other intangible assets, net of amortization |
19,135 | 22,976 | ||||||
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Deferred loan and senior notes costs, net of amortization |
5,561 | 6,496 | ||||||
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Other assets |
20,413 | 10,724 | ||||||
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Total other assets |
331,227 | 324,596 | ||||||
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Total assets |
$ | 1,359,174 | 1,335,301 | |||||
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(Continued) |
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GENERAL COMMUNICATION, INC. AND SUBSIDIARIES |
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CONSOLIDATED BALANCE SHEETS |
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(Unaudited) |
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(Continued) |
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(Amounts in thousands) |
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September 30, |
December 31, |
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Liabilities and Stockholders' Equity |
2009 |
2008 |
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Current liabilities: |
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Current maturities of obligations under long-term debt and capital leases |
$ | 13,215 | 12,857 | |||||
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Accounts payable |
29,743 | 40,497 | ||||||
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Deferred revenue |
22,021 | 22,095 | ||||||
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Accrued payroll and payroll related obligations |
20,287 | 22,632 | ||||||
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Accrued liabilities |
10,203 | 11,043 | ||||||
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Accrued interest |
2,973 | 10,224 | ||||||
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Subscriber deposits |
1,507 | 1,262 | ||||||
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Total current liabilities |
99,949 | 120,610 | ||||||
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|
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Long-term debt |
732,336 | 708,406 | ||||||
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Obligations under capital leases, excluding current maturities |
90,499 | 94,029 | ||||||
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Obligation under capital lease due to related party, excluding current
maturity |
1,874 | 1,868 | ||||||
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Deferred income taxes |
98,713 | 86,187 | ||||||
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Long-term deferred revenue |
50,017 | 49,998 | ||||||
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Other liabilities |
16,940 | 15,288 | ||||||
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Total liabilities |
1,090,328 | 1,076,386 | ||||||
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Commitments and contingencies |
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Stockholders’ equity: |
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Common stock (no par): |
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Class A. Authorized 100,000 shares; issued 51,889 and 50,062 shares
at September 30, 2009 and December 31, 2008, respectively;
outstanding 51,615 and 49,593 shares at September 30, 2009 and
December 31, 2008, respectively |
150,885 | 151,262 | ||||||
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Class B. Authorized 10,000 shares; issued 3,189 and 3,203 shares
at September 30, 2009 and December 31, 2008, respectively;
outstanding 3,189 and 3,201 shares at September 30, 2009 and
December 31, 2008, respectively; convertible on a share-per-share basis
into Class A common stock |
2,687 | 2,706 | ||||||
|
Less cost of 274 and 469 Class A and Class B common shares held in
treasury at September 30, 2009 and December 31, 2008, respectively |
(2,349 | ) | (2,462 | ) | ||||
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|
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Paid-in capital |
29,234 | 27,233 | ||||||
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Retained earnings |
88,389 | 80,176 | ||||||
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Total stockholders' equity |
268,846 | 258,915 | ||||||
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Total liabilities and stockholders' equity |
$ | 1,359,174 | 1,335,301 | |||||
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GENERAL COMMUNICATION, INC. AND SUBSIDIARIES | |||||||
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CONSOLIDATED INCOME STATEMENTS | |||||||
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(Unaudited) | |||||||
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Three Months Ended |
Nine Months Ended | ||||||
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September 30, |
September 30, | ||||||
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(Amounts in thousands, except per share amounts) |
2009 |
2008 |
2009 |
2008 | |||
|
Revenues |
150,816 |
151,660 |
448,301 |
428,795 | |||
|
|
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Cost of goods sold (exclusive of depreciation and amortization shown
separately below) |
50,167 |
50,401 |
145,372 |
154,160 | |||
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Selling, general and administrative expenses |
49,045 |
56,410 |
157,350 |
151,076 | |||
|
Depreciation and amortization expense |
30,874 |
28,869 |
92,778 |
83,820 | |||
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Operating income |
20,730 |
15,980 |
52,801 |
39,739 | |||
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|
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Other income (expense): |
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Interest expense (including amortization of deferred loan fees) |
(13,176) |
(14,134) |
(39,096) |
(34,820) | |||
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Interest income |
49 |
386 |
68 |
869 | |||
|
Other expense, net |
(13,127) |
(13,748) |
(39,028) |
(33,951) | |||
|
Income before income tax expense |
7,603 |
2,232 |
13,773 |
5,788 | |||
|
|
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Income tax expense |
3,267 |
1,548 |
6,519 |
4,758 | |||
|
|
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Net income |
4,336 |
684 |
7,254 |
1,030 | |||
|
|
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Net (income) loss attributable to the non-controlling interest |
- |
(419) |
- |
1,503 | |||
|
|
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Net income attributable to General Communication, Inc. |
4,336 |
265 |
7,254 |
2,533 | |||
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Basic net income per common share |
0.08 |
0.01 |
0.14 |
0.05 | |||
|
Diluted net income per common share |
0.08 |
0.00 |
0.13 |
0.05 | |||
|
Common shares used to calculate basic EPS |
53,315 |
52,371 |
52,902 |
52,317 | |||
|
Common shares used to calculate diluted EPS |
53,828 |
53,318 |
53,457 |
52,986 | |||
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GENERAL COMMUNICATION, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||||||||||||||||||
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SUPPLEMENTAL SCHEDULES |
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|
(Unaudited) |
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(Amounts in thousands) |
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Third Quarter 2009 |
Third Quarter 2008 |
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Network |
Managed |
Regulated |
Network |
Managed |
Regulated |
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|
Consumer |
Access |
Commercial |
Broadband |
Operations |
Totals |
Consumer |
Access |
Commercial |
Broadband |
Operations |
Totals |
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Revenues |
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Voice |
$ | 12,487 | 12,197 | 7,688 | - | 6,037 | 38,409 | 11,582 | 19,671 | 7,597 | - | 5,938 | 44,788 | |||||||||||||||||||||||||||||||||||
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Video |
27,612 | - | 2,320 | - | - | 29,932 | 26,241 | - | 2,999 | - | - | 29,240 | ||||||||||||||||||||||||||||||||||||
|
Data |
12,726 | 14,876 | 15,801 | 11,715 | - | 55,118 | 10,745 | 18,148 | 18,140 | 10,293 | - | 57,326 | ||||||||||||||||||||||||||||||||||||
|
Wireless |
22,196 | 3,190 | 1,971 | - | - | 27,357 | 17,917 | 959 | 1,430 | - | - | 20,306 | ||||||||||||||||||||||||||||||||||||
|
Total |
75,021 | 30,263 | 27,780 | 11,715 | 6,037 | 150,816 | 66,485 | 38,778 | 30,166 | 10,293 | 5,938 | 151,660 | ||||||||||||||||||||||||||||||||||||
|
Cost of goods
sold (exclusive
of depreciation
and amortization) |
24,686 | 7,536 | 13,310 | 2,893 | 1,742 | 50,167 | 20,574 | 10,501 | 15,283 | 2,651 | 1,392 | 50,401 | ||||||||||||||||||||||||||||||||||||
|
Contribution |
50,335 | 22,727 | 14,470 | 8,822 | 4,295 | 100,649 | 45,911 | 28,277 | 14,883 | 7,642 | 4,546 | 101,259 | ||||||||||||||||||||||||||||||||||||
|
Less SG&A |
26,547 | 8,255 | 8,090 | 3,157 | 2,996 | 49,045 | 28,794 | 11,398 | 9,356 | 3,636 | 3,226 | 56,410 | ||||||||||||||||||||||||||||||||||||
|
Add other
income
(expense) |
- | - | - | - | - | - | (184 | ) | (164 | ) | (71 | ) | - | - | (419 | ) | ||||||||||||||||||||||||||||||||
|
EBITDA |
23,788 | 14,472 | 6,380 | 5,665 | 1,299 | 51,604 | 16,933 | 16,715 | 5,456 | 4,006 | 1,320 | 44,430 | ||||||||||||||||||||||||||||||||||||
|
Add share-based
compensation |
(554 | ) | (388 | ) | (226 | ) | (164 | ) | - | (1,332 | ) | 1,075 | 920 | 488 | 211 | - | 2,694 | |||||||||||||||||||||||||||||||
|
Add non-cash
contribution |
- | - | - | - | - | - | 267 | 234 | 101 | 38 | - | 640 | ||||||||||||||||||||||||||||||||||||
|
Adjusted EBITDA |
$ | 23,234 | 14,084 | 6,154 | 5,501 | 1,299 | 50,272 | 18,275 | 17,869 | 6,045 | 4,255 | 1,320 | 47,764 | |||||||||||||||||||||||||||||||||||
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GENERAL COMMUNICATION, INC. AND SUBSIDIARIES |
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SUPPLEMENTAL SCHEDULES | ||||||||||||||||||||||||||||||||||||||||||||||||
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(Unaudited) |
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(Amounts in thousands) |
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Third Quarter 2009 |
Second Quarter 2009 |
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|
Network |
Managed |
Regulated |
Network |
Managed |
Regulated |
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|
Consumer |
Access |
Commercial |
Broadband |
Operations |
Totals |
Consumer |
Access |
Commercial |
Broadband |
Operations |
Totals |
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|
Revenues |
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|
Voice |
$ | 12,487 | 12,197 | 7,688 | - | 6,037 | 38,409 | 12,988 | 13,444 | 7,701 | - | 6,368 | 40,501 | |||||||||||||||||||||||||||||||||||
|
Video |
27,612 | - | 2,320 | - | - | 29,932 | 27,132 | - | 2,221 | - | - | 29,353 | ||||||||||||||||||||||||||||||||||||
|
Data |
12,726 | 14,876 | 15,801 | 11,715 | - | 55,118 | 12,166 | 16,073 | 15,409 | 10,998 | - | 54,646 | ||||||||||||||||||||||||||||||||||||
|
Wireless |
22,196 | 3,190 | 1,971 | - | - | 27,357 | 21,113 | 1,603 | 1,580 | - | - | 24,296 | ||||||||||||||||||||||||||||||||||||
|
Total |
75,021 | 30,263 | 27,780 | 11,715 | 6,037 | 150,816 | 73,399 | 31,120 | 26,911 | 10,998 | 6,368 | 148,796 | ||||||||||||||||||||||||||||||||||||
|
Cost of goods
sold (exclusive
of depreciation
and amortization) |
24,686 | 7,536 | 13,310 | 2,893 | 1,742 | 50,167 | 24,011 | 6,556 | 12,977 | 2,357 | 1,447 | 47,348 | ||||||||||||||||||||||||||||||||||||
|
Contribution |
50,335 | 22,727 | 14,470 | 8,822 | 4,295 | 100,649 | 49,388 | 24,564 | 13,934 | 8,641 | 4,921 | 101,448 | ||||||||||||||||||||||||||||||||||||
|
Less SG&A |
26,547 | 8,255 | 8,090 | 3,157 | 2,996 | 49,045 | 27,740 | 9,370 | 8,600 | 3,411 | 2,598 | 51,719 | ||||||||||||||||||||||||||||||||||||
|
Add other
income
(expense) |
- | - | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||
|
EBITDA |
23,788 | 14,472 | 6,380 | 5,665 | 1,299 | 51,604 | 21,648 | 15,194 | 5,334 | 5,230 | 2,323 | 49,729 | ||||||||||||||||||||||||||||||||||||
|
Add share-based
compensation |
(554 | ) | (388 | ) | (226 | ) | (164 | ) | - | (1,332 | ) | 607 | 452 | 246 | 122 | - | 1,427 | |||||||||||||||||||||||||||||||
|
Add non-cash
contribution |
- | - | - | - | - | - | 37 | 25 | 12 | 6 | - | 80 | ||||||||||||||||||||||||||||||||||||
|
Adjusted EBITDA |
$ | 23,234 | 14,084 | 6,154 | 5,501 | 1,299 | 50,272 | 22,292 | 15,671 | 5,592 | 5,358 | 2,323 | 51,236 | |||||||||||||||||||||||||||||||||||
|
GENERAL COMMUNICATION, INC. AND SUBSIDIARIES |
||||||||||||||||||||||||||||||||||||||||||||||||
|
SUPPLEMENTAL SCHEDULES | ||||||||||||||||||||||||||||||||||||||||||||||||
|
(Unaudited) |
||||||||||||||||||||||||||||||||||||||||||||||||
|
(Amounts in thousands) |
||||||||||||||||||||||||||||||||||||||||||||||||
|
Nine Months Ended September 30, 2009 |
Nine Months Ended September 30, 2008 |
|||||||||||||||||||||||||||||||||||||||||||||||
|
Network |
Managed |
Regulated |
Network |
Managed |
Regulated |
|||||||||||||||||||||||||||||||||||||||||||
|
Consumer |
Access |
Commercial |
Broadband |
Operations |
Totals |
Consumer |
Access |
Commercial |
Broadband |
Operations |
Totals |
|||||||||||||||||||||||||||||||||||||
|
Revenues |
||||||||||||||||||||||||||||||||||||||||||||||||
|
Voice |
$ | 39,390 | 39,975 | 23,373 | - | 18,574 | 121,312 | 35,560 | 64,826 | 22,091 | - | 7,817 | 130,294 | |||||||||||||||||||||||||||||||||||
|
Video |
82,114 | - | 6,591 | - | - | 88,705 | 77,556 | - | 6,968 | - | - | 84,524 | ||||||||||||||||||||||||||||||||||||
|
Data |
36,654 | 48,903 | 47,725 | 33,323 | - | 166,605 | 31,227 | 52,975 | 50,933 | 26,953 | - | 162,088 | ||||||||||||||||||||||||||||||||||||
|
Wireless |
60,981 | 5,704 | 4,994 | - | - | 71,679 | 45,638 | 2,042 | 4,209 | - | - | 51,889 | ||||||||||||||||||||||||||||||||||||
|
Total |
219,139 | 94,582 | 82,683 | 33,323 | 18,574 | 448,301 | 189,981 | 119,843 | 84,201 | 26,953 | 7,817 | 428,795 | ||||||||||||||||||||||||||||||||||||
|
Cost of goods
sold (exclusive
of depreciation
and amortization) |
72,100 | 20,776 | 39,642 | 7,939 | 4,915 | 145,372 | 68,964 | 32,285 | 43,266 | 7,955 | 1,690 | 154,160 | ||||||||||||||||||||||||||||||||||||
|
Contribution |
147,039 | 73,806 | 43,041 | 25,384 | 13,659 | 302,929 | 121,017 | 87,558 | 40,935 | 18,998 | 6,127 | 274,635 | ||||||||||||||||||||||||||||||||||||
|
Less SG&A |
83,772 | 27,900 | 26,413 | 10,760 | 8,505 | 157,350 | 80,201 | 30,564 | 26,279 | 9,584 | 4,448 | 151,076 | ||||||||||||||||||||||||||||||||||||
|
Add other
income
(expense) |
- | - | - | - | - | - | 660 | 591 | 252 | - | - | 1,503 | ||||||||||||||||||||||||||||||||||||
|
EBITDA |
63,267 | 45,906 | 16,628 | 14,624 | 5,154 | 145,579 | 41,476 | 57,585 | 14,908 | 9,414 | 1,679 | 125,062 | ||||||||||||||||||||||||||||||||||||
|
Add share-based
compensation |
817 | 617 | 346 | 117 | - | 1,897 | 2,209 | 1,863 | 1,057 | 418 | - | 5,547 | ||||||||||||||||||||||||||||||||||||
|
Add non-cash
contribution |
220 | 151 | 73 | 36 | - | 480 | 267 | 234 | 101 | 38 | - | 640 | ||||||||||||||||||||||||||||||||||||
|
Adjusted EBITDA |
$ | 64,304 | 46,674 | 17,047 | 14,777 | 5,154 | 147,956 | 43,952 | 59,682 | 16,066 | 9,870 | 1,679 | 131,249 | |||||||||||||||||||||||||||||||||||
|
KEY PERFORMANCE INDICATORS |
||||||||||||||||||||||||||||
|
(Unaudited) |
||||||||||||||||||||||||||||
|
September 30, 2009 |
September 30, 2009 |
|||||||||||||||||||||||||||
|
as compared to |
as compared to |
|||||||||||||||||||||||||||
|
September 30, |
September 30, |
June 30, |
September 30, |
June 30, |
September 30, |
June 30, |
||||||||||||||||||||||
|
2009 |
2008 |
2009 |
2008 |
2009 |
2008 |
2009 |
||||||||||||||||||||||
|
Consumer |
||||||||||||||||||||||||||||
|
Voice |
||||||||||||||||||||||||||||
|
Long-distance subscribers |
89,900 | 89,300 | 88,600 | 600 | 1,300 | 0.7 | % | 1.5 | % | |||||||||||||||||||
|
Total local access lines in service |
82,700 | 79,200 | 81,200 | 3,500 | 1,500 | 4.4 | % | 1.8 | % | |||||||||||||||||||
|
Local access lines in service on GCI facilities |
72,700 | 64,300 | 70,300 | 8,400 | 2,400 | 13.1 | % | 3.4 | % | |||||||||||||||||||
|
Video |
||||||||||||||||||||||||||||
|
Basic subscribers |
129,600 | 131,200 | 129,700 | (1,600 | ) | (100 | ) | -1.2 | % | -0.1 | % | |||||||||||||||||
|
Digital programming tier subscribers |
77,600 | 70,100 | 76,200 | 7,500 | 1,400 | 10.7 | % | 1.8 | % | |||||||||||||||||||
|
HD/DVR converter boxes |
77,000 | 62,900 | 74,400 | 14,100 | 2,600 | 22.4 | % | 3.5 | % | |||||||||||||||||||
|
Homes passed |
231,400 | 227,400 | 230,400 | 4,000 | 1,000 | 1.8 | % | 0.4 | % | |||||||||||||||||||
|
Data |
||||||||||||||||||||||||||||
|
Cable modem subscribers |
97,900 | 92,100 | 94,900 | 5,800 | 3,000 | 6.3 | % | 3.2 | % | |||||||||||||||||||
|
Wireless |
||||||||||||||||||||||||||||
|
Wireless lines in service |
109,900 | 81,200 | 103,600 | 28,700 | 6,300 | 35.3 | % | 6.1 | % | |||||||||||||||||||
|
Network Access Services |
||||||||||||||||||||||||||||
|
Data: |
||||||||||||||||||||||||||||
|
Total ISP access lines in service |
1,700 | 1,800 | 1,700 | (100 | ) | - | -5.6 | % | 0.0 | % | ||||||||||||||||||
|
Commercial |
||||||||||||||||||||||||||||
|
Voice: |
||||||||||||||||||||||||||||
|
Long-distance subscribers |
9,700 | 10,200 | 9,600 | (500 | ) | 100 | -4.9 | % | 1.0 | % | ||||||||||||||||||
|
Total local access lines in service |
47,300 | 46,200 | 47,300 | 1,100 | - | 2.4 | % | 0.0 | % | |||||||||||||||||||
|
Local access lines in service on GCI facilities |
19,000 | 17,900 | 18,400 | 1,100 | 600 | 6.1 | % | 3.3 | % | |||||||||||||||||||
|
Video |
||||||||||||||||||||||||||||
|
Hotels and mini-headend
subscribers |
18,000 | 15,000 | 20,300 | 3,000 | (2,300 | ) | 20.0 | % | -11.3 | % | ||||||||||||||||||
|
Basic subscribers |
1,700 | 2,000 | 1,700 | (300 | ) | - | -15.0 | % | 0.0 | % | ||||||||||||||||||
|
Total basic subscribers |
19,700 | 17,000 | 22,000 | 2,700 | (2,300 | ) | 15.9 | % | -10.5 | % | ||||||||||||||||||
|
Data |
||||||||||||||||||||||||||||
|
Cable modem subscribers |
10,600 | 9,000 | 10,400 | 1,600 | 200 | 17.8 | % | 1.9 | % | |||||||||||||||||||
|
Wireless |
||||||||||||||||||||||||||||
|
Wireless lines in service |
10,100 | 6,900 | 8,900 | 3,200 | 1,200 | 46.4 | % | 13.5 | % | |||||||||||||||||||
|
Regulated Operations |
||||||||||||||||||||||||||||
|
Voice: |
||||||||||||||||||||||||||||
|
Total local access lines in service |
11,300 | 12,300 | 11,600 | (1,000 | ) | (300 | ) | -8.1 | % | -2.6 | % | |||||||||||||||||
|
September 30, 2009 |
September 30, 2009 |
|||||||||||||||||||||||||||
|
Three Months Ended |
as Compared to |
as Compared to |
||||||||||||||||||||||||||
|
September 30, |
September 30, |
June 30, |
September 30, |
June 30, |
September 30, |
June 30, |
||||||||||||||||||||||
| 2009 | 2008 | 2009 | 2008 | 2009 | 2008 | 2009 | ||||||||||||||||||||||
|
Consumer |
||||||||||||||||||||||||||||
|
Voice |
||||||||||||||||||||||||||||
|
Long-distance minutes carried
(in millions) |
28.0 | 31.2 | 28.3 | (3.2 | ) | (0.3 | ) | -10.3 | % | -1.1 | % | |||||||||||||||||
|
Video |
||||||||||||||||||||||||||||
|
Average monthly gross revenue per
subscriber |
$ | 70.95 | $ | 67.00 | $ | 69.59 | $ | 3.95 | $ | 1.36 | 5.9 | % | 2.0 | % | ||||||||||||||
|
Wireless |
||||||||||||||||||||||||||||
|
Average monthly gross revenue per
subscriber |
$ | 59.03 | $ | 55.21 | $ | 57.88 | $ | 3.82 | $ | 1.15 | 6.9 | % | 2.0 | % | ||||||||||||||
|
Network Access Services |
||||||||||||||||||||||||||||
|
Voice |
||||||||||||||||||||||||||||
|
Long-distance minutes carried
(in millions) |
224.6 | 255.8 | 215.6 | (31.2 | ) | 9.0 | -12.2 | % | 4.2 | % | ||||||||||||||||||
|
Commercial |
||||||||||||||||||||||||||||
|
Voice: |
||||||||||||||||||||||||||||
|
Long-distance minutes carried
(in millions) |
30.6 | 33.3 | 31.8 | (2.7 | ) | (1.2 | ) | -8.1 | % | -3.8 | % | |||||||||||||||||
|
Total |
||||||||||||||||||||||||||||
|
Long-distance minutes carried
(in millions) |
283.2 | 320.3 | 275.7 | (37.1 | ) | 7.5 | -11.6 | % | 2.7 | % | ||||||||||||||||||
General Communication, Inc.
Non-GAAP Financial Reconciliation Schedule
(Unaudited, Amounts in Millions)
|
Three Months Ended |
||||||||||||
|
September 30,
2009 |
September 30,
2008 |
June 30,
2009 |
||||||||||
|
Net income attributable to General Communication, Inc. |
$ | 4.3 | 0.3 | 2.6 | ||||||||
|
Net income attributable to the non-controlling interest |
--- | 0.4 | --- | |||||||||
|
Net income |
4.3 | 0.7 | 2.6 | |||||||||
|
Income tax expense |
3.3 | 1.5 | 2.7 | |||||||||
|
Income before income tax expense |
7.6 | 2.2 | 5.3 | |||||||||
|
Other (income) expense: |
||||||||||||
|
Interest expense
(including amortization
of deferred loan fees) |
13.2 | 14.1 | 13.2 | |||||||||
|
Interest income |
(0.1 | ) | (0.4 | ) | --- | |||||||
|
Other expense, net |
13.1 | 13.7 | 13.2 | |||||||||
|
Operating income |
20.7 | 15.9 | 18.5 | |||||||||
|
Depreciation and amortization expense |
30.9 | 28.9 | 31.2 | |||||||||
|
Net income attributable to the non-controlling interest |
--- | (0.4 | ) | --- | ||||||||
|
EBITDA (Note 2) |
51.6 | 44.4 | 49.7 | |||||||||
|
Share-based compensation expense |
(1.3 | ) | 2.7 | 1.4 | ||||||||
|
Non-cash contribution adjustment |
--- | 0.7 | 0.1 | |||||||||
|
Adjusted EBITDA (Note 1) |
$ | 50.3 | 47.8 | 51.2 | ||||||||
General Communication, Inc.
Non-GAAP Financial Reconciliation Schedule
(Unaudited, Amounts in Millions)
|
Nine Months Ended |
||||||||
|
September 30,
2009 |
September 30,
2008 |
|||||||
|
Net income attributable to General Communication, Inc. |
$ | 7.3 | 2.5 | |||||
|
Net income attributable to the non-controlling interest |
--- | (1.5 | ) | |||||
|
Net income |
7.3 | 1.0 | ||||||
|
Income tax expense |
6.5 | 4.8 | ||||||
|
Income before income tax expense |
13.8 | 5.8 | ||||||
|
Other (income) expense: |
||||||||
|
Interest expense
(including amortization
of deferred loan fees) |
39.0 | 34.8 | ||||||
|
Interest income |
(0.1 | ) | (0.8 | ) | ||||
|
Other expense, net |
38.9 | 34.0 | ||||||
|
Operating income |
52.7 | 39.8 | ||||||
|
Depreciation and amortization expense |
92.9 | 83.8 | ||||||
|
Net income attributable to the non-controlling interest |
--- | 1.5 | ||||||
|
EBITDA (Note 2) |
145.6 | 125.1 | ||||||
|
Share-based compensation expense |
1.9 | 5.5 | ||||||
|
Non-cash contribution adjustment |
0.5 | 0.6 | ||||||
|
Adjusted EBITDA (Note 1) |
$ | 148.0 | 131.2 | |||||
Notes:
|
|
(1) EBITDA (as defined in Note 2 below) before deducting share-based compensation expense 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. |