GCI Reports Second Quarter 2012 Financial Results
- Consolidated revenue of $176.1 million
- Adjusted EBITDA of $59.4 million
- Net income of $4.0 million or $0.09 per diluted share
ANCHORAGE, Alaska, Aug. 1, 2012 /PRNewswire/ -- General Communication, Inc. ("GCI") (NASDAQ: GNCMA) today reported its second quarter 2012 results with revenues increasing to $176.1 million over revenues of $168.1 million in the second quarter of 2011. Adjusted EBITDA increased 8.2 percent or $4.5 million over the second quarter of 2011 EBITDA of $54.9 million.
Revenues in the second quarter of 2012 were favorably impacted by the recognition of $1.6 million in revenues for services provided to a managed broadband customer for their fiscal year ended June 30, 2009, following a successful regulatory appeal. The EBITDA impact of $1.6 million in additional revenues was offset entirely by $1.8 million of costs related to the previously announced transaction to form The Alaska Wireless Network, LLC ("AWN").
GCI's second quarter 2012 net income totaled $4.0 million or earnings per diluted share of $0.09 and compares to a net loss of $2.0 million or loss per diluted share of $(0.04) for the same period of 2011.
Second quarter of 2012 revenues increased $4.2 million over revenues of $171.9 million in the first quarter of 2012. Adjusted EBITDA increased $4.6 million or 8.4 percent over adjusted EBITDA of $54.8 million in the first quarter of 2012.
"We took a major step forward this quarter by reaching agreement with Alaska Communications to combine our wireless networks," said Ron Duncan , GCI president. "Once implemented, we look forward to providing GCI customers the best overall wireless service in urban and rural Alaska. Adding Alaska Communications' substantial mobile radio spectrum portfolio, LTE network, and wireless tower footprint to GCI's wireless assets will result in a substantially more capable statewide 4G wireless platform."
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.
- GCI entered into an agreement with Alaska Communications Systems Group, Inc. to form The Alaska Wireless Network, LLC ("AWN") that will hold and operate both companies' wireless facilities. AWN will provide a robust, statewide network with the spectrum, scale, advanced technology and cost structure necessary to compete with the national carriers. GCI will invest $100 million to gain a majority interest in a wireless network operation that is twice the size of its current one. The AWN transaction is subject to required governmental approvals and other customary conditions.
- GCI began selling the iPhone on April 20, 2012 and has sold 9,200 iPhones by the end of the second quarter of 2012. GCI estimates 40 percent of iPhones sales are to new subscribers. The iPhone has been well received by GCI's customers and the costs associated with the launch have been within expectations.
- GCI had 141,000 wireless subscribers at the end of the second quarter of 2012 and is the second largest wireless service provider in Alaska. Wireless subscribers increased by 1,000 over the first quarter of 2012. Average monthly revenue per subscriber was $67.69, a decrease of 1.4 percent from $68.65 for the first quarter of 2012.
- Managed Broadband revenues for the second quarter of 2012 totaled $21.7 million, an increase of $7.1 million or 48.4 percent over the second quarter of 2011, primarily as a result of the turn-up of GCI's TERRA-Southwest terrestrial network.
- GCI had 123,500 consumer and commercial cable modem customers at the end of the second quarter of 2012, an increase of 1,500 over the 122,000 cable modem customers at the end of the first quarter 2012. Average monthly revenue per cable modem for the second quarter of 2012 was $63.64, an increase of 19.0 percent over $53.46 for the prior year and an increase of 3.5 percent over the $61.48 figure posted for the first quarter of 2012.
GCI will hold a conference call to discuss the quarter's results on Thursday, August 2, 2012 beginning at 2 p.m. (Eastern). To access the briefing on August 2, call the conference operator between 1:50-2:00 p.m. (Eastern Time) at 888-790-3403 (International callers should dial 1-415-228-3889) 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 888-562-4207, access code 7461 (International callers should dial 203-369-3178.)
Full text and tables can be found at www.gci.com, then For Investors.
GCI is the largest telecommunications company in Alaska. GCI's cable plant, which provides voice, video, and broadband data services, passes 80 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 newly constructed statewide mobile wireless network seamlessly links 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 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 Form 10-K and 10-Q filed with the Securities and Exchange Commission.
SOURCE General Communication, Inc. (“GCI”)
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