Exhibit 99.1

                    

GCI REPORTS SECOND QUARTER 2014 FINANCIAL RESULTS
Consolidated Revenues of $224 million, Adjusted EBITDA of $84 million
August 6, 2014, Anchorage AK - General Communication, Inc. (“GCI”) (NASDAQ:GNCMA) today reported performance for the second quarter of 2014, with consolidated revenues of $224 million, adjusted EBITDA of $84 million, and net income of $8 million or $0.20 per share.
Consolidated revenues of $224 million increased four percent on a sequential basis and increased eighteen percent on a year-over-year basis. Adjusted EBITDA of $84 million represented a 13 percent increase on a sequential basis and a 36 percent increase on a year-over-year basis.
On a year to date basis, consolidated revenues were $441 million, representing a 17 percent increase over the same period in 2013. Adjusted EBITDA was $159 million, a 32 percent increase over the same period last year. Net income was $10 million or $0.25 per share, a 38 percent and a 39 percent increase over the same period last year, respectively.
“The first half of 2014 has been a period of solid performance, especially with wireless and data services,” said Ron Duncan, GCI president and chief executive officer. “As we look forward to the remainder of 2014, our challenge is to build on the success of the first half and continue to execute to plan.”
Important Notes
It should be noted that both Wireless and Wireline segment results are materially affected by The Alaska Wireless Network (“AWN”) transaction, which was effective July 23, 2013.
Operating Highlights
Wireless:
The Wireless segment, reflecting the results of AWN, posted revenues of $69 million, an 11 percent increase on a sequential basis, and a 95 percent increase on a year-over-year




basis, reflecting the results of the AWN transaction. Wireless adjusted EBITDA for the period was $40 million, reflecting a six percent increase on a sequential basis and a 182 percent increase on a year-over-year basis. When the sequential growth is compared to a pro forma adjusted EBITDA, with a normalized effect of handset subsidies, as was reported last quarter, the normalized growth was 24 percent. This strong increase is a result of seasonal increases in roaming, as well as increased demand for backhaul services.
For the second quarter of 2014, the revenue detail was as follows:

($ millions)
2Q 2014
2Q 2013
1Q 2014
Wholesale Wireless
25
15
25
Roaming and Backhaul
30
13
25
USF Support
14
8
13
Total Wireless Revenue
69
36
63


Wireline:

The Wireline segment posted revenues of $155 million, a one percent increase on a sequential basis and on a year-over-year basis. Adjusted EBITDA for the segment was $44 million, representing a 20 percent increase on a sequential basis, and an eight percent decline on a year-over-year basis. When the sequential growth is normalized for handset subsidies, the growth was five percent. The year-over-year decline is due primarily to increases in Selling, General and Administrative expenses (SG&A), partially offset by the revenue increases discussed below. Within SG&A, the primary drivers of the increase are increased labor costs as well as increased health care costs.
Wireline - Consumer:

Consumer revenues for the second quarter of 2014 were $69 million, a slight decline on a sequential basis and a slight increase on a year-over-year basis. Growth in the revenues for the quarter has been driven by video set top boxes, data average revenue per subscriber (ARPU), and non-Lifeline wireless subscribers, but has been offset by seasonal losses overall in cable modem and video subscribers. Revenue was also lower due to a wireless




promotion during the quarter that reduced activation fees received and credited newly activated customers $100.

Wireline - Business Services:
Business Services revenues for the second quarter of 2014 were $55 million, a five percent increase on a sequential basis and a three percent decline on a year-over-year basis. The sequential growth for the quarter in this customer segment has been driven by seasonal increases in hotel video and increased demand for data transport and storage. On a year-over-year basis, the reduction in revenue is largely attributable to lower Professional Services revenue, which were particularly strong in the second quarter of 2013.
Data revenues can be better understood by the following detail:
($ millions)
2Q 2014
2Q 2013
1Q 2014
Data Transport and Storage
25
22
24
Professional Services
11
17
11
Total Data Revenue
36
39
35

Wireline - Managed Broadband:
Managed Broadband revenues for the second quarter of 2014 were $31 million, a slight decline sequentially, and a seven percent increase on a year-over-year basis. The strong performance is attributable to continued demand in the School Access and Telehealth programs, as well as positive momentum in the regulated business.
Accomplishments and Milestones
GCI became the first Alaska carrier to provide a Lifeline service plan that includes data.
GCI’s premiere data service, re:D, had its speed increased to 200 Mbps, and was launched in two additional markets.




On the video front, GCI strengthened its customer offerings with video on demand (VOD) launches in three new markets, and an expansion of fourteen new networks on GCI GO (TV Anywhere access).
Also on the video front, GCI is one of the first carriers in the U.S. to launch the Netflix app on TiVo.
On July 28th, the Company announced the acquisition of three CBS broadcast stations in Southeast Alaska, KXLJ in Juneau, KTNL in Sitka, and KUBD in Ketchikan. Through its subsidiary, Denali Media Holdings, the Company now owns CBS and NBC affiliates in Southeast Alaska and the CBS affiliate KTVA-TV in Anchorage.

Guidance

The Company previously provided guidance of annual consolidated revenues in the range of $910 million to $930 million, and adjusted EBITDA in the range of $285 million to $305 million. On a revenue perspective, the first half performance was weaker than expected, and the Company is revising the range downward to $880 million to $900 million. For earnings as measured by adjusted EBITDA, however, the strong performance in the first two quarters implies that the high end of the range is most likely.
With respect to capital expenditures, our cash expenditures for property and equipment have totaled $81 million year to date, which includes $19 million for the purchase of real estate, or $62 million in core cash capital expenditures. At this time, the Company is continuing its guidance for 2014 core cash capital expenditures of approximately $170 million.
The Company will hold a conference call to discuss the quarter’s results on Thursday, August 7th, at 2:00 p.m. (Eastern). To access the call, call the conference operator between 1:50-2:00 p.m. (Eastern) at 888-942-9537 (International callers should dial +1-517-308-9456) and identify your call as “GCI”. In addition to dial-up access, GCI will make available net conferencing. To access the call via net conference, log on to gci.com




and follow the instructions. A replay of the call will be available for 72-hours by dialing 800-839-2291, access code 7461 (International callers should dial +1-402-998-1194).
About GCI
GCI is the largest Alaska-based and -operated, integrated telecommunications provider, offering voice, data, and video services statewide. Learn more about GCI at www.gci.com/about.
Forward Looking Statement Disclosure
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 on 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)
 
 
 
 
June 30,
 
December 31,
ASSETS
2014
 
2013
Current assets:
 
 
 
Cash and cash equivalents
$
82,329

 
44,971

 
 
 
 
Receivables (including $33,200 and $28,000 from a related party at June 30, 2014 and December 31, 2013, respectively)
203,550

 
228,372

Less allowance for doubtful receivables
3,052

 
2,346

Net receivables
200,498

 
226,026

 
 
 
 
Deferred income taxes
44,600

 
39,753

Prepaid expenses
12,713

 
7,725

Inventories
8,377

 
10,347

Other current assets
166

 
230

Total current assets
348,683

 
329,052

 
 
 
 
Property and equipment in service, net of depreciation
985,260

 
969,578

Construction in progress
89,351

 
87,476

Net property and equipment
1,074,611

 
1,057,054

 
 
 
 
Goodwill
229,043

 
219,041

Cable certificates
191,635

 
191,635

Wireless licenses
86,347

 
91,400

Other intangible assets, net of amortization
64,526

 
71,435

Deferred loan and senior notes costs, net of amortization of $7,607 and $6,545 at June 30, 2014 and December 31, 2013, respectively
11,341

 
12,129

Other assets
54,958

 
40,061

Total other assets
637,850

 
625,701

Total assets
$
2,061,144

 
2,011,807

 
 
 
 




GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Continued)
(Amounts in thousands)
 
 
 
 
June 30,
 
December 31,
LIABILITIES AND STOCKHOLDERS’ EQUITY
2014
 
2013
Current liabilities:
 
 
 
  Current maturities of obligations under long-term debt and
    capital leases
$
10,681

 
9,301

Accounts payable (including $10,900 and $11,200 to a related party at June 30, 2014 and December 31, 2013, respectively)
57,138

 
65,095

Deferred revenue
30,946

 
27,586

Accrued payroll and payroll related obligations
25,516

 
29,855

Accrued liabilities
16,995

 
14,359

Accrued interest
6,704

 
7,088

Subscriber deposits
1,138

 
1,326

Total current liabilities
149,118

 
154,610

 
 
 
 
Long-term debt, net
1,082,990

 
1,045,144

Obligations under capital leases, excluding current maturities
70,609

 
66,261

Obligation under capital lease due to related party, excluding
  current maturity
1,870

 
1,880

Deferred income taxes
166,665

 
161,476

Long-term deferred revenue
86,552

 
88,259

Other liabilities
37,879

 
36,823

Total liabilities
1,595,683

 
1,554,453

 
 
 
 
Commitments and contingencies
 
 
 
Stockholders’ equity:
 

 
 

Common stock (no par):
 

 
 

Class A. Authorized 100,000 shares; issued 38,455 and 37,299 shares at June 30, 2014 and December 31, 2013, respectively; outstanding 38,429 and 37,209 shares at June 30, 2014 and December 31, 2013, respectively
12,801

 
11,467

Class B. Authorized 10,000 shares; issued and outstanding 3,162 and 3,165 shares at June 30, 2014 and December 31, 2013, respectively; convertible on a share-per-share basis into Class A common stock
2,670

 
2,673

Less cost of 26 and 90 Class A common shares held in treasury at June 30, 2014 and December 31, 2013, respectively
(249
)
 
(866
)
Paid-in capital
29,260

 
26,880

Retained earnings
127,266

 
116,990

Total General Communication, Inc. stockholders' equity
171,748

 
157,144

Non-controlling interests
293,713

 
300,210

Total stockholders’ equity
465,461

 
457,354

Total liabilities and stockholders’ equity
$
2,061,144

 
2,011,807






GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
 
 
 
 
CONSOLIDATED INCOME STATEMENTS
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
(Amounts in thousands, except per share amounts)
2014
 
2013
 
2014
 
2013
Revenues:
 
 
 
 
 
 
 
Non-related party
$
210,236

 
189,661

 
410,739

 
375,877

Related party
14,163

 

 
29,943

 

Total revenues
224,399

 
189,661

 
440,682

 
375,877

 
 
 
 
 
 
 
 
Cost of goods sold (exclusive of depreciation and amortization shown separately below):
 
 
 
 
 
 
 
Non-related party
69,707

 
65,699

 
138,850

 
130,309

Related party
2,675

 

 
5,306

 

Total cost of goods sold
72,382

 
65,699

 
144,156

 
130,309

 
 
 
 
 
 
 
 
Selling, general and administrative expenses:
 
 
 
 
 
 
 
Non-related party
68,685

 
63,871

 
139,427

 
128,418

Related party
1,132

 

 
2,282

 

Total selling, general and administrative expenses
69,817

 
63,871

 
141,709

 
128,418

 
 
 
 
 
 
 
 
Depreciation and amortization expense
43,786

 
34,396

 
86,138

 
68,395

Operating income
38,414

 
25,695

 
68,679

 
48,755

 
 
 
 
 
 
 
 
Other expense:
 
 
 
 
 
 
 
Interest expense (including amortization of deferred loan fees)
(18,170
)
 
(17,527
)
 
(36,381
)
 
(34,431
)
Other
(1,049
)
 
53

 
(1,146
)
 
53

Other expense
(19,219
)
 
(17,474
)
 
(37,527
)
 
(34,378
)
Income before income tax expense
19,195

 
8,221

 
31,152

 
14,377

Income tax expense
(127
)
 
(4,158
)
 
(342
)
 
(7,187
)
 
 
 
 
 
 
 
 
Net income
19,068

 
4,063

 
30,810

 
7,190

Net income (loss) attributable to non-controlling interests
10,913

 
(117
)
 
20,534

 
(234
)
Net income attributable to General Communication, Inc.
$
8,155

 
4,180

 
10,276

 
7,424

Basic net income attributable to General Communication, Inc. common stockholders per Class A common share
$
0.20

 
0.10

 
0.25

 
0.18

Basic net income attributable to General Communication, Inc. common stockholders per Class B common share
$
0.20

 
0.10

 
0.25

 
0.18

Diluted net income attributable to General Communication, Inc. common stockholders per Class A common share
$
0.20

 
0.10

 
0.25

 
0.18

Diluted net income attributable to General Communication, Inc. common stockholders per Class B common share
$
0.20

 
0.10

 
0.25

 
0.18

Common shares used to calculate Class A basic EPS
38,383

 
37,979

 
38,186

 
38,117

Common shares used to calculate Class A diluted EPS
41,693

 
41,365

 
41,495

 
41,542






GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
SUPPLEMENTAL SCHEDULES
(Unaudited)
(Amounts in thousands)
 
 
 
 
 
 
 
Second Quarter 2014
 
Second Quarter 2013
 
Wireless
Wireline
 
 
Wireless
Wireline
 
 
Segment
Segment
Total
 
Segment
Segment
Total
Revenues
 
 
 
 
 
 
 
  Wireless
$
69,397

7,149

76,546

 
35,559

7,944

43,503

  Data

88,475

88,475

 

87,177

87,177

  Video

34,478

34,478

 

31,207

31,207

  Voice

24,900

24,900

 

27,774

27,774

    Total
69,397

155,002

224,399

 
35,559

154,102

189,661

 
 
 
 
 
 
 
 
Cost of goods sold
23,500

48,882

72,382

 
16,573

49,126

65,699

 
 
 
 
 
 
 
 
    Contribution
45,897

106,120

152,017

 
18,986

104,976

123,962

 
 
 
 
 
 
 
 
Less SG&A
5,894

63,923

69,817

 
4,652

59,219

63,871

Less (plus) other expense

1,052

1,052

 

(49
)
(49
)
    EBITDA
40,003

41,145

81,148

 
14,334

45,806

60,140

 
 
 
 
 
 
 
 
Share-based compensation

2,193

2,193

 
(104
)
1,751

1,647

Accretion
171

130

301

 
43

112

155

Other

829

829

 

197

197

    Adjusted EBITDA
$
40,174

44,297

84,471

 
14,273

47,866

62,139





GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
SUPPLEMENTAL SCHEDULES
(Unaudited)
(Amounts in thousands)
 
 
 
 
 
 
 
Second Quarter 2014
 
First Quarter 2014
 
Wireless
Wireline
 
 
Wireless
Wireline
 
 
Segment
Segment
Total
 
Segment
Segment
Total
Revenues
 
 
 
 
 
 
 
  Wireless
$
69,397

7,149

76,546

 
62,517

8,236

70,753

  Data

88,475

88,475

 

87,613

87,613

  Video

34,478

34,478

 

32,401

32,401

  Voice

24,900

24,900

 

25,516

25,516

    Total
69,397

155,002

224,399

 
62,517

153,766

216,283

 
 
 
 
 
 
 
 
Cost of goods sold
23,500

48,882

72,382

 
18,713

53,061

71,774

 
 
 
 
 
 
 
 
    Contribution
45,897

106,120

152,017

 
43,804

100,705

144,509

 
 
 
 
 
 
 
 
Less SG&A
5,894

63,923

69,817

 
5,958

65,934

71,892

Less other expense

1,052

1,052

 

97

97

    EBITDA
40,003

41,145

81,148

 
37,846

34,674

72,520

 
 
 
 
 
 
 
 
Share-based compensation

2,193

2,193

 

1,778

1,778

Accretion
171

130

301

 
176

125

301

Other

829

829

 

198

198

    Adjusted EBITDA
$
40,174

44,297

84,471

 
38,022

36,775

74,797





GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
SUPPLEMENTAL SCHEDULES
(Unaudited)
(Amounts in thousands)
 
 
 
 
 
 
 
Six Months Ended June 30, 2014
 
Six Months Ended June 30, 2013
 
Wireless
Wireline
 
 
Wireless
Wireline
 
 
Segment
Segment
Total
 
Segment
Segment
Total
Revenues
 
 
 
 
 
 
 
  Wireless
$
131,914

15,385

147,299

 
69,396

15,169

84,565

  Data

176,088

176,088

 

174,049

174,049

  Video

66,879

66,879

 

62,293

62,293

  Voice

50,416

50,416

 

54,970

54,970

    Total
131,914

308,768

440,682

 
69,396

306,481

375,877

 
 
 
 
 
 
 
 
Cost of goods sold
42,213

101,943

144,156

 
30,985

99,324

130,309

 
 
 
 
 
 
 
 
    Contribution
89,701

206,825

296,526

 
38,411

207,157

245,568

 
 
 
 
 
 
 
 
Less SG&A
11,852

129,857

141,709

 
9,069

119,349

128,418

Less other expense

1,149

1,149

 

(53
)
(53
)
    EBITDA
77,849

75,819

153,668

 
29,342

87,861

117,203

 
 
 
 
 
 
 
 
Share-based compensation

3,971

3,971

 

2,906

2,906

Accretion
347

255

602

 
120

162

282

Other

1,027

1,027

 

397

397

    Adjusted EBITDA
$
78,196

81,072

159,268

 
29,462

91,326

120,788









GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
WIRELINE SEGMENT SUPPLEMENTAL REVENUE SCHEDULES
(Unaudited)
(Amounts in thousands)
 
 
 
 
 
 
 
 
 
 
Second Quarter 2014
 
Second Quarter 2013
 
 
Business
Managed
 
 
 
Business
Managed
 
 
Consumer
Services
Broadband
Total
 
Consumer
Services
Broadband
Total
Revenues
 
 
 
 
 
 
 
 
 
  Wireless
$
6,360

789


7,149

 
7,180

764


7,944

  Data
27,313

35,554

25,608

88,475

 
24,413

39,394

23,370

87,177

  Video
26,871

7,607


34,478

 
27,740

3,467


31,207

  Voice
8,279

11,359

5,262

24,900

 
9,141

13,253

5,380

27,774

    Total
$
68,823

55,309

30,870

155,002

 
68,474

56,878

28,750

154,102

 
 
 
 
 
 
 
 
 
 
(Amounts in thousands)
 
 
 
 
 
 
 
 
 
 
Second Quarter 2014
 
First Quarter 2014
 
 
Business
Managed
 
 
 
Business
Managed
 
 
Consumer
Services
Broadband
Total
 
Consumer
Services
Broadband
Total
Revenues
 
 
 
 
 
 
 
 
 
  Wireless
$
6,360

789


7,149

 
7,491

745


8,236

  Data
27,313

35,554

25,608

88,475

 
26,944

34,840

25,829

87,613

  Video
26,871

7,607


34,478

 
27,249

5,152


32,401

  Voice
8,279

11,359

5,262

24,900

 
8,445

11,741

5,330

25,516

    Total
$
68,823

55,309

30,870

155,002

 
70,129

52,478

31,159

153,766

 
 
 
 
 
 
 
 
 
 
(Amounts in thousands)
 
 
 
 
 
 
 
 
 
 
Six Months Ended June 30, 2014
 
Six Months Ended June 30, 2013
 
 
Business
Managed
 
 
 
Business
Managed
 
 
Consumer
Services
Broadband
Total
 
Consumer
Services
Broadband
Total
Revenues
 
 
 
 
 
 
 
 
 
  Wireless
$
13,851

1,534


15,385

 
13,726

1,443


15,169

  Data
54,257

70,394

51,437

176,088

 
48,469

79,530

46,050

174,049

  Video
54,120

12,759


66,879

 
55,701

6,592


62,293

  Voice
16,724

23,100

10,592

50,416

 
18,671

25,580

10,719

54,970

    Total
$
138,952

107,787

62,029

308,768

 
136,567

113,145

56,769

306,481

 
 
 
 
 
 
 
 
 
 





GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
KEY PERFORMANCE INDICATORS
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
June 30, 2014
 
June 30, 2014
 
 

 
as compared to
 
as compared to
 
 
June 30,
June 30,
March 31,
 
June 30,
March 31,
 
June 30,
March 31,
 
 
2014
2013
2014
 
2013
2014
 
2013
2014
Wireline Segment
 
 
 
 
 
 
 
 
 
Consumer
 
 
 
 
 
 
 
 
 
Data
 
 
 
 
 
 
 
 
 
 
Cable modem subscribers
115,600

115,600

116,400

 

(800
)
 
 %
(0.7
)%
Video
 
 
 
 
 
 
 
 
 
 
Basic subscribers
116,300

119,600

118,000

 
(3,300
)
(1,700
)
 
(2.8
)%
(1.4
)%
 
Digital programming tier subscribers
65,200

69,500

66,900

 
(4,300
)
(1,700
)
 
(6.2
)%
(2.5
)%
 
HD/DVR converter boxes
103,400

89,900

101,200

 
13,500

2,200

 
15.0
 %
2.2
 %
 
Homes passed
248,000

245,100

248,000

 
2,900


 
1.2
 %
 %
Voice
 
 
 
 
 
 
 
 
 
 
Local access lines in service
57,700

65,200

59,800

 
(7,500
)
(2,100
)
 
(11.5
)%
(3.5
)%
 
Local access lines in service on GCI facilities
53,800

60,800

55,700

 
(7,000
)
(1,900
)
 
(11.5
)%
(3.4
)%
Business Services
 
 
 
 
 
 
 
 
 
Data
 
 
 
 
 
 
 
 
 
 
Cable modem subscribers
14,200

14,100

14,000

 
100

200

 
0.7
 %
1.4
 %
Video
 
 
 
 
 
 
 
 
 
 
Hotels and mini-headend subscribers
20,600

20,800

17,000

 
(200
)
3,600

 
(1.0
)%
21.2
 %
 
Basic subscribers
2,000

2,000

2,000

 


 
 %
 %
 
Total basic subscribers
22,600

22,800

19,000

 
(200
)
3,600

 
-0.9
 %
18.9
 %
Voice
 
 
 
 
 
 
 
 
 
 
Local access lines in service
48,200

50,500

48,500

 
(2,300
)
(300
)
 
(4.6
)%
(0.6
)%
 
Local access lines in service on GCI facilities
35,000

35,600

35,000

 
(600
)

 
(1.7
)%
 %
Consumer and Business Services Combined
Wireless
 
 
 
 
 
 
 
 
 
 
Consumer Lifeline lines in service
28,200

32,600

29,500

 
(4,400
)
(1,300
)
 
(13.5
)%
(4.4
)%
 
Consumer Non-Lifeline lines in service
96,700

92,800

94,400

 
3,900

2,300

 
4.2
 %
2.4
 %
 
Business Services Non-Lifeline lines in service
18,500

17,500

18,500

 
1,000


 
5.7
 %
 %
 
Total wireless lines in service
143,400

142,900

142,400

 
500

1,000

 
0.3
 %
0.7
 %




GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
KEY PERFORMANCE INDICATORS
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
June 30, 2014
 
June 30, 2014
 
 
Three Months Ended
 
as compared to
 
as compared to
 
 
June 30,
June 30,
March 31,
 
June 30,
March 31,
 
June 30,
March 31,
 
 
2014
2013
2014
 
2013
2014
 
2013
2014
Wireline segment
 
 
 
 
 
 
 
 
 
Consumer
 
 
 
 
 
 
 
 
 
Video
 
 
 
 
 
 
 
 
 
 
Average monthly revenue per subscriber
$
76.49

$
76.47

$
76.98

 
$
0.02

$
(0.49
)
 
 %
(0.6
)%
 
 
 
 
 
 
 
 
 
 
 
Combined Consumer and Business Services
 
 
 
 
 
 
Data
 
 
 
 
 
 
 
 
 
 
Average monthly revenue per cable modem subscriber
$
76.83

$
68.25

$
75.93

 
$
8.58

$
0.90

 
12.6
 %
1.2
 %
 
 
 
 
 
 
 
 
 
 
 
Wireless
 
 
 
 
 
 
 
 
 
 
Average monthly revenue per subscriber
$
49.95

$
49.99

$
51.48

 
$
(0.04
)
$
(1.53
)
 
(0.1
)%
(3.0
)%







General Communication, Inc.
 
 
 
 
 
 
 
 
Non-GAAP Financial Reconciliation Schedule
 
 
 
 
 
 
 
 
(Unaudited, Amounts in Thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Six Months Ended
 
 
June 30,
 
June 30,
 
March 31,
 
June 30,
 
June 30,
 
 
2014
 
2013
 
2014
 
2014
 
2013
Net income
 
$
19,068

 
4,063

 
11,742

 
30,810

 
7,190

Income tax expense
 
127

 
4,158

 
215

 
342

 
7,187

Income before income tax expense
 
19,195

 
8,221

 
11,957

 
31,152

 
14,377

 
 
 
 
 
 
 
 
 
 
 
Other expense:
 
 
 
 
 
 
 
 
 
 
Interest expense (including amortization of deferred loan fees)
 
18,170

 
17,527

 
18,211

 
36,381

 
34,431

Other
 
1,049

 
(53
)
 
97

 
1,146

 
(53
)
Other expense
 
19,219

 
17,474

 
18,308

 
37,527

 
34,378

 
 
 
 
 
 
 
 
 
 
 
Operating income
 
38,414

 
25,695

 
30,265

 
68,679

 
48,755

Depreciation and amortization expense
 
43,786

 
34,396

 
42,352

 
86,138

 
68,395

Other
 
(1,052
)
 
49

 
(97
)
 
(1,149
)
 
53

 
 
 
 
 
 
 
 
 
 
 
EBITDA (Note 2)
 
81,148

 
60,140

 
72,520

 
153,668

 
117,203

Share-based compensation
 
2,193

 
1,647

 
1,778

 
3,971

 
2,906

Accretion
 
301

 
155

 
301

 
602

 
282

Other
 
829

 
197

 
198

 
1,027

 
397

Adjusted EBITDA (Note 1)
 
$
84,471

 
62,139

 
74,797

 
159,268

 
120,788

 
 
 
 
 
 
 
 
 
 
 
Notes:
 
 
 
 
 
 
 
 
 
 
(1) EBITDA (as defined in Note 2 below) before deducting share-based compensation, accretion expense, net income or loss attributable to non-controlling interests resulting from New Markets Tax Credit transactions, non-cash contribution adjustment, and other non-cash adjustments.
 
 
 
 
 
 
 
 
 
 
 
(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.