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GCI Reports 2012 Financial Results
Submitted by admin on 3/6/2013 @ 5:00 PM
Companies mentioned in this article:
General Communication, Inc.
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.