GCI Reports First Quarter 2010 Financial Results

ANCHORAGE, Alaska, May 5 /PRNewswire-FirstCall/ -- General Communication, Inc. ("GCI") (Nasdaq: GNCMA) today reported its first quarter 2010 results with revenues increasing to $152.4 million and adjusted EBITDA increasing to $51.1 million. Revenues for the first quarter of 2010 increased 2.5 percent over revenues of $148.7 million in the first quarter of 2009. Adjusted EBITDA increased $4.6 million or 9.9 percent over first quarter of 2009 EBITDA of $46.4 million. EBITDA margin for the first quarter of 2010 improved to 33.5 percent as compared to 31.2 percent in the first quarter of 2009.

GCI's first quarter 2010 net income totaled $1.7 million or earnings per diluted share of $0.03 and compares to net income of $0.4 million, or earnings per diluted share of $0.00 for the same period of 2009.

First quarter 2010 revenues increased $4.9 million or 3.3 percent over total revenues of $147.5 million in the fourth quarter of 2009. Adjusted EBITDA increased $6.1 million or 13.6 percent over adjusted EBITDA of $45.0 million in the fourth quarter of 2009.

"GCI turned in another great quarter driven by increasing consumer customer metrics in all categories," said GCI president Ron Duncan.

"The strength of our bundled service offerings combined with the power of our Internet service, which offers the highest speeds available in Alaska, continues to bring new customers in the door. Continuously improving products and new service offerings deepen existing customer relationships and add incremental revenue. This all adds up to the best customer experience in Alaska and the most rapidly growing consumer business in the state."

"While network access revenues are down both year-over-year and sequentially this quarter represents the first one to experience the full impact of our new rate structures. We expect our network access business to be more stable from here on."

"Alaska's economy remains steady. Higher energy prices will maintain the state's operating budget and the legislature proposed a record state capital budget which will stimulate construction activities throughout the state."

Highlights

• Consumer revenues for the first quarter of 2010 totaled $80.4 million, an increase of 13.6 percent over the first quarter of 2009 and an increase of 6.0 percent over the fourth quarter of 2009. Revenue increases were strong for voice, video, data and wireless services.
• GCI added 2,700 wireless subscribers in the first quarter of 2010. Wireless subscribers totaled 128,100 at the end of the quarter.
• GCI won a State of Alaska contract for approximately 3,500 wireless phones. The phones are expected to be provisioned on GCI's network before the end of the third quarter of 2010.
• Total GCI access lines were 146,700 at the end of the first quarter of 2010, representing an estimated 35 percent share of the total access line market in Alaska. Access lines increased by 2,000 lines over the fourth quarter of 2009.
• GCI's facilities-based access lines totaled 109,900, representing 75 percent of its 146,700 total access lines at the end of the first quarter of 2010, an increase of 2,600 lines over the fourth quarter of 2009 and an increase of 8,700 lines when compared to the end of the first quarter of the prior year.
• GCI had 113,600 consumer and commercial cable modem customers at the end of the first quarter of 2010, an increase of 2,900 over the 110,700 cable modem customers at the end of the fourth quarter 2009. Average monthly revenue per cable modem totaled $45.85 for the first quarter of 2010 as compared to $40.97 in the prior year, an increase of 11.9 percent and is up 0.5 percent over $45.63 for the fourth quarter of 2009.
• GCI had 149,200 basic video subscribers at the end of the first quarter of 2010, a decrease of 700 from the first quarter of 2009 and an increase of 1,600 over the fourth quarter of 2009.
• GCI repurchased 52,500 shares of its Class A common shares at a cost of approximately $0.3 million or $5.78 per share. Depending on company performance, market conditions, liquidity, and subject to board oversight GCI may continue repurchasing its own shares.

GCI will hold a conference call to discuss the quarter's results on Thursday, May 6, 2010 beginning at 2 p.m. (Eastern). To access the briefing on May 6, call the conference operator between 1:50-2:00 p.m. (Eastern Time) at 800-593-7188 (International callers should dial 1-312-470-7059) 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 866-514-4272, access code 7461 (International callers should dial 203-369-2013.)

Full text and tables can be found at www.gci.com.

GCI is the largest telecommunications company in Alaska. GCI'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 Alaska to the lower 48 states with a diversely routed, protected fiber network. 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.

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.