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8-K - GCI, INC. FORM 8-K - GCI, LLC | incform8k102109.htm |
Exhibit
99.1
October 22,
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
ANNOUNCES PRELIMINARY THIRD QUARTER 2009 FINANCIAL RESULTS
INVESTOR
RELATIONS CONFERENCE CALL ADVISORY
ANCHORAGE, AK -- GCI
(NASDAQ:GNCMA) today reported that third quarter 2009 revenues are expected to
total approximately $150 million. Third quarter 2009 earnings before
depreciation and amortization expense, net interest expense, income tax expense,
share-based compensation expense, and non-cash contribution adjustment (adjusted
EBITDA) are expected to approximate $50 million. GCI reported revenues of $151.7
million and adjusted EBITDA of $47.8 million in the third quarter of
2008.
GCI expects third quarter 2009 net income to
total approximately $4 million. GCI reported net income of $0.3 million for the
same period of 2008.
GCI added $10 million of revolver indebtedness
under its senior secured bank credit facility during the third quarter of 2009.
The credit facility had approximately $390 million outstanding and approximately
$3 million in letters of credit at the end of the third quarter of
2009.
Selected Customer
Metrics
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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.
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·
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Company wide
access lines totaled 143,000 at the end of the third quarter of
2009.
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·
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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.
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·
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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.
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·
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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.
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These results are based on preliminary
unaudited financial information and are subject to change in connection with our
quarterly procedures for preparing financial statements to be included in our
periodic SEC filings. Consequently, you should not place undue reliance on
this preliminary financial information.
Final results for
the third quarter of 2009 will be released after the market closes on November
4, 2009. 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 1:50-2 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.
# # #
GCI
Non-GAAP
Financial Reconciliation Schedule
(Unaudited, Amounts
in Millions)
Three Months
Ended
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||||||||
September
30,
2009
(preliminary)
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September
30,
2008
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Net income
attributable to GCI
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$ | 4.0 | 0.3 | |||||
Net income
attributable to the non-controlling interest
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--- | 0.4 | ||||||
Net
income
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4.0 | 0.7 | ||||||
Income tax
expense
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4.0 | 1.5 | ||||||
Income before
income tax expense
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8.0 | 2.2 | ||||||
Other
(income) expense:
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||||||||
Interest
expense
(including
amortization
of
deferred loan fees)
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13.0 | 14.1 | ||||||
Interest
income
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--- | (0.4 | ) | |||||
Other
expense, net
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13.0 | 13.7 | ||||||
Operating
income
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21.0 | 15.9 | ||||||
Depreciation
and amortization expense
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30.0 | 28.9 | ||||||
Net income
attributable to the non-controlling interest
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--- | (0.4 | ) | |||||
EBITDA (Note
2)
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51.0 | 44.4 | ||||||
Share-based
compensation expense
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(1.0 | ) | 2.7 | |||||
Non-cash
contribution adjustment
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--- | 0.7 | ||||||
Adjusted
EBITDA (Note 1)
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$ | 50.0 | 47.8 |
Notes:
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(1) EBITDA
(as defined in Note 2 below) before deducting share-based compensation
expense and non-cash contribution
adjustment.
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(2) Earnings
Before Interest, Taxes, Depreciation and Amortization is the sum of Net
Income Attributable to GCI, 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.
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