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EX-99.2 - EXHIBIT 99.2 - GCI, LLC | form8k11012017exhibit99-2.htm |
8-K - 8-K - GCI, LLC | incform8k11012017.htm |
Exhibit 99.1
GCI REPORTS THIRD QUARTER 2017 FINANCIAL RESULTS
Net Loss of $9 million
Consolidated Revenue of $231 million
Pro Forma EBITDA of $81 million
November 1, 2017, Anchorage, Alaska - General Communication, Inc. (“GCI”) (NASDAQ: GNCMA) announces its results for the third quarter of 2017.
Liberty Interactive Transaction Update:
As previously announced, GCI and Liberty Interactive Corporation signed an agreement to combine GCI with certain assets of the Liberty Ventures Group. The following summarizes our progress on outstanding closing related requirements:
Regulatory Approvals: As previously reported, we have made the required filings with each of the Federal Communications Commission ("FCC") and the Regulatory Commission of Alaska seeking approval of the transaction.
Shareholder vote: We are responding to additional requests from the SEC on the S-4.
We are now expecting to close the transaction in the first quarter of 2018 rather than the fourth quarter of 2017, subject to the satisfaction of customary closing conditions, including the regulatory and shareholder approvals.
Operating and Financial Highlights
Our third quarter revenues were $231 million, an increase of $7 million sequentially and a $5 million decrease from the third quarter of 2016. The year-over-year decline was due largely to a $5 million decline in wireless equipment revenue. Pro Forma EBITDA, which is Adjusted EBITDA plus $2 million of one-time Liberty transaction costs in the quarter, was $81 million. This is up $6 million from the previous quarter and $3 million year-over-year.
As we have stated previously, we are focusing on operating efficiencies and cost savings as we expect muted revenue growth in the context of the Alaska recession. This quarter we had Pro Forma EBITDA margins of 34.9 percent compared to 33.0 percent in the third quarter of 2016 and 33.4 percent in the second quarter of 2017.
Consumer
Consumer revenues of $110 million in the third quarter were up $4 million or 3.5 percent sequentially and down $5 million or 4.1 percent year-over-year. Wireless revenues were down $5 million year-over-year with the declines primarily from handset sales. During the
quarter we experienced subscriber declines of 1,900 cable modems, 2,300 video subscribers and 300 wireless subscribers. The recession in Alaska is a significant contributing factor in our subscriber headwinds. However, we also completed our rate plan simplification project effective September 30, 2017. This was an important project to complete as we move to our new billing system in 2018 although it did result in elevated customer churn throughout the process.
Business
GCI Business revenues of $121 million in the third quarter were up $3 million or 2.6 percent sequentially and down $1 million or 0.6 percent year-over-year. The year-over-year decline is due to declines in voice revenues. On a sequential basis, second quarter revenue was affected by a $5 million reduction from the Universal Services Rural Health Care adjustment. Excluding this adjustment, third quarter sequential revenues would have declined $2 million due to lower time and materials revenue.
SG&A
SG&A expenses were $91 million during the quarter. Excluding the one-time Liberty transaction costs of $2 million, expenses were level year-over-year and up $2 million or 2.0 percent sequentially.
Capital Expenditures
On a year to date basis we have made $120 million of capital expenditures excluding capitalized interest.
Leverage
After adding back the roaming adjustment and Liberty transaction costs, our net debt to trailing 12 months Adjusted EBITDA was 4.6x as of September 30, 2017.
2017 Guidance
We are affirming our Pro Forma EBITDA guidance to be between $300 million and $315 million in 2017, excluding costs related to the Liberty transaction.
Capital expenditures are expected to be approximately $165 million in 2017.
Use of Non-GAAP Measure
Pro-Forma and Adjusted EBITDA are presented herein and are non-GAAP measures. See our attached financials for a reconciliation of these non-GAAP measures to the nearest GAAP measure.
Pro-Forma EBITDA guidance is a forward-looking non-GAAP financial measure presented herein. Reconciliation to the most directly comparable GAAP financial measure is not provided because we are unable to provide such reconciliation without unreasonable effort. The inability to provide a reconciliation is due to the uncertainty and inherent difficulty regarding the occurrence, the financial impact and the periods with respect to recognition of future GAAP financial measures. We also believe that such a reconciliation would imply an inappropriate degree of precision. For the same reasons, we are unable to address the probable significance of the unavailable information.
Conference Call
The company will hold a conference call to discuss the financial results on Thursday, November 2, at 2:00 p.m. (Eastern). To access the call, call the conference operator between 1:45-2:00 p.m. (Eastern) at 844-850-0551 (International callers should dial +1-412-902-4197) 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 ir.gci.com and follow the instructions.
After appropriate filings have been made with the SEC, a rebroadcast of the briefing will be available by logging onto our investor relations site at www.gci.com.
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 of Forms 10-K and 10-Q filed with the Securities and Exchange Commission.
About GCI
GCI is the largest communications provider in Alaska, providing data, wireless, video, voice and managed services to consumer and business customers throughout Alaska and nationwide. Headquartered in Alaska, GCI has delivered services for nearly 40 years to some of the most remote communities and in some of the most challenging conditions in North America. Learn more about GCI at www.gci.com.
Contact:
Media / Investors: Heather Handyside, 907.868.6838, hhandyside@gci.com
# # #
GENERAL COMMUNICATION, INC. AND SUBSIDIARIES | ||||||
CONSOLIDATED BALANCE SHEETS | ||||||
(Unaudited) | ||||||
(Amounts in thousands) | ||||||
September 30, | December 31, | |||||
ASSETS | 2017 | 2016 | ||||
Current assets: | ||||||
Cash and cash equivalents | $ | 19,203 | 19,297 | |||
Receivables | 183,785 | 184,296 | ||||
Less allowance for doubtful receivables | 4,282 | 4,407 | ||||
Net receivables | 179,503 | 179,889 | ||||
Prepaid expenses | 23,162 | 18,599 | ||||
Inventories | 9,394 | 11,945 | ||||
Other current assets | 62 | 167 | ||||
Total current assets | 231,324 | 229,897 | ||||
Property and equipment | 2,714,782 | 2,614,875 | ||||
Less accumulated depreciation | 1,561,039 | 1,452,957 | ||||
Net property and equipment | 1,153,743 | 1,161,918 | ||||
Goodwill | 242,264 | 239,263 | ||||
Cable certificates | 191,635 | 191,635 | ||||
Wireless licenses | 93,753 | 92,347 | ||||
Other intangible assets, net of amortization | 74,371 | 74,444 | ||||
Other assets | 76,200 | 76,435 | ||||
Total other assets | 678,223 | 674,124 | ||||
Total assets | $ | 2,063,290 | 2,065,939 | |||
GENERAL COMMUNICATION, INC. AND SUBSIDIARIES | ||||||
CONSOLIDATED BALANCE SHEETS | ||||||
(Unaudited) | ||||||
(Continued) | ||||||
(Amounts in thousands) | ||||||
September 30, | December 31, | |||||
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | 2017 | 2016 | ||||
Current liabilities: | ||||||
Current maturities of obligations under long-term debt, capital leases, and tower obligation | $ | 13,756 | 13,229 | |||
Accounts payable | 58,288 | 72,937 | ||||
Deferred revenue | 41,348 | 37,618 | ||||
Accrued payroll and payroll related obligations | 31,460 | 30,305 | ||||
Accrued interest (including $3,714 and $5,132 to a related party at September 30, 2017 and December 31, 2016, respectively) | 25,968 | 13,926 | ||||
Accrued liabilities | 13,988 | 14,729 | ||||
Subscriber deposits | 1,239 | 917 | ||||
Total current liabilities | 186,047 | 183,661 | ||||
Long-term debt, net (including $58,177 and $56,640 to a related party at September 30, 2017 and December 31, 2016, respectively) | 1,333,485 | 1,333,446 | ||||
Obligations under capital leases, excluding current maturities (including $1,721 and $1,769 due to a related party at September 30, 2017 and December 31, 2016, respectively) | 42,864 | 50,316 | ||||
Deferred income taxes | 133,610 | 137,982 | ||||
Long-term deferred revenue | 136,722 | 135,877 | ||||
Tower obligation | 93,842 | 87,653 | ||||
Derivative stock appreciation rights with related party | 83,670 | 29,700 | ||||
Other liabilities | 55,741 | 54,056 | ||||
Total liabilities | 2,065,981 | 2,012,691 | ||||
Commitments and contingencies | ||||||
Stockholders’ equity (deficit): | ||||||
Common stock (no par): | ||||||
Class A. Authorized 100,000 shares; issued 33,072 and 32,668 shares at September 30, 2017 and December 31, 2016, respectively; outstanding 33,046 and 32,642 shares at September 30, 2017 and December 31, 2016, respectively | — | — | ||||
Class B. Authorized 10,000 shares; issued and outstanding 3,052 and 3,153 shares at September 30, 2017 and December 31, 2016, respectively; convertible on a share-per-share basis into Class A common stock | 2,578 | 2,663 | ||||
Less cost of 26 Class A common shares held in treasury at September 30, 2017 and December 31, 2016 | (249 | ) | (249 | ) | ||
Paid-in capital | 16,512 | 3,237 | ||||
Retained earnings (deficit) | (54,417 | ) | 17,068 | |||
Total General Communication, Inc. stockholders' equity (deficit) | (35,576 | ) | 22,719 | |||
Non-controlling interests | 32,885 | 30,529 | ||||
Total stockholders’ equity (deficit) | (2,691 | ) | 53,248 | |||
Total liabilities and stockholders’ equity (deficit) | $ | 2,063,290 | 2,065,939 |
GENERAL COMMUNICATION, INC. AND SUBSIDIARIES | ||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
(Unaudited) | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
September 30, | September 30, | |||||||||||
(Amounts in thousands, except per share amounts) | 2017 | 2016 | 2017 | 2016 | ||||||||
Revenues | $ | 231,214 | 236,655 | 683,675 | 701,519 | |||||||
Cost of goods sold (exclusive of depreciation and amortization shown separately below) | 67,496 | 73,494 | 205,099 | 227,926 | ||||||||
Selling, general and administrative expenses | 90,691 | 88,974 | 280,478 | 264,642 | ||||||||
Depreciation and amortization expense | 48,853 | 47,819 | 147,547 | 143,033 | ||||||||
Operating income | 24,174 | 26,368 | 50,551 | 65,918 | ||||||||
Other income (expense): | ||||||||||||
Interest expense (including amortization of deferred loan fees) | (21,595 | ) | (19,666 | ) | (62,377 | ) | (58,199 | ) | ||||
Interest expense with related party | (1,953 | ) | (1,881 | ) | (5,745 | ) | (5,558 | ) | ||||
Derivative instrument unrealized income (loss) with related party | (12,270 | ) | 4,800 | (53,970 | ) | 15,840 | ||||||
Other | (69 | ) | 613 | 1,203 | 1,702 | |||||||
Other expense, net | (35,887 | ) | (16,134 | ) | (120,889 | ) | (46,215 | ) | ||||
Income (loss) before income taxes | (11,713 | ) | 10,234 | (70,338 | ) | 19,703 | ||||||
Income tax (expense) benefit | 2,864 | (2,407 | ) | (2,757 | ) | (7,596 | ) | |||||
Net income (loss) | (8,849 | ) | 7,827 | (73,095 | ) | 12,107 | ||||||
Net loss attributable to non-controlling interests | (118 | ) | (116 | ) | (353 | ) | (350 | ) | ||||
Net income (loss) attributable to General Communication, Inc. | $ | (8,731 | ) | 7,943 | (72,742 | ) | 12,457 | |||||
Basic net income (loss) attributable to General Communication, Inc. common stockholders per Class A common share | $ | (0.25 | ) | 0.21 | (2.12 | ) | 0.33 | |||||
Basic net income (loss) attributable to General Communication, Inc. common stockholders per Class B common share | $ | (0.25 | ) | 0.21 | (2.12 | ) | 0.33 | |||||
Diluted net income (loss) attributable to General Communication, Inc. common stockholders per Class A common share | $ | (0.25 | ) | 0.14 | (2.12 | ) | 0.08 | |||||
Diluted net income (loss) attributable to General Communication, Inc. common stockholders per Class B common share | $ | (0.25 | ) | 0.14 | (2.12 | ) | 0.08 | |||||
Common shares used to calculate Class A basic EPS | 31,374 | 32,033 | 31,291 | 33,008 | ||||||||
Common shares used to calculate Class A diluted EPS | 34,426 | 35,478 | 34,385 | 36,793 |
GENERAL COMMUNICATION, INC. AND SUBSIDIARIES | |||||||||
SUPPLEMENTAL SCHEDULES | |||||||||
(Unaudited) | |||||||||
(Amounts in thousands) | Third Quarter 2017 | Third Quarter 2016 | Second Quarter 2017 | ||||||
Revenues | |||||||||
Wireless | $ | 69,452 | 74,398 | 66,695 | |||||
Data | 113,845 | 110,032 | 109,069 | ||||||
Video | 29,355 | 30,770 | 29,731 | ||||||
Voice | 18,562 | 21,455 | 18,851 | ||||||
Total | 231,214 | 236,655 | 224,346 | ||||||
Cost of goods sold | 67,496 | 73,494 | 68,329 | ||||||
Contribution | 163,718 | 163,161 | 156,017 | ||||||
Less SG&A | (90,691 | ) | (88,974 | ) | (96,229 | ) | |||
Plus share-based compensation | 4,858 | 2,810 | 5,745 | ||||||
Plus imputed interest on financed devices | 608 | 651 | 630 | ||||||
Plus accretion | 425 | 406 | 437 | ||||||
Other | 227 | 131 | (533 | ) | |||||
Adjusted EBITDA | 79,145 | 78,185 | 66,067 | ||||||
Liberty transaction costs | 1,620 | — | 8,943 | ||||||
Pro Forma EBITDA | $ | 80,765 | 78,185 | 75,010 |
GENERAL COMMUNICATION, INC. AND SUBSIDIARIES | ||||||
SUPPLEMENTAL SCHEDULES | ||||||
(Unaudited) | ||||||
Nine Months Ended | ||||||
September 30, | ||||||
(Amounts in thousands) | 2017 | 2016 | ||||
Revenues | ||||||
Wireless | $ | 201,609 | 214,506 | |||
Data | 337,068 | 325,010 | ||||
Video | 88,147 | 95,824 | ||||
Voice | 56,851 | 66,179 | ||||
Total | 683,675 | 701,519 | ||||
Cost of goods sold | 205,099 | 227,926 | ||||
Contribution | 478,576 | 473,593 | ||||
Less SG&A | (280,478 | ) | (264,642 | ) | ||
Plus share-based compensation | 13,741 | 7,820 | ||||
Plus imputed interest on financed devices | 1,919 | 1,885 | ||||
Plus accretion | 1,352 | 1,240 | ||||
Other | (1,089 | ) | 435 | |||
Adjusted EBITDA | 214,021 | 220,331 | ||||
Liberty transaction costs | 14,771 | — | ||||
Pro Forma EBITDA | $ | 228,792 | 220,331 |
General Communication, Inc. | ||||||||||||||||
Non-GAAP Financial Reconciliation Schedule | ||||||||||||||||
(Unaudited, Amounts in Thousands) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | June 30, | September 30, | September 30, | ||||||||||||
2017 | 2016 | 2017 | 2017 | 2016 | ||||||||||||
Net income (loss) | $ | (8,849 | ) | 7,827 | (9,000 | ) | (73,095 | ) | 12,107 | |||||||
Income tax expense (benefit) | (2,864 | ) | 2,407 | (40,975 | ) | 2,757 | 7,596 | |||||||||
Income (loss) before income taxes | (11,713 | ) | 10,234 | (49,975 | ) | (70,338 | ) | 19,703 | ||||||||
Other (income) expense: | ||||||||||||||||
Interest expense (including amortization of deferred loan fees) | 21,595 | 19,666 | 20,946 | 62,377 | 58,199 | |||||||||||
Related party interest expense | 1,953 | 1,881 | 1,915 | 5,745 | 5,558 | |||||||||||
Derivative instrument unrealized (income) loss with related party | 12,270 | (4,800 | ) | 38,790 | 53,970 | (15,840 | ) | |||||||||
Other | 69 | (613 | ) | (645 | ) | (1,203 | ) | (1,702 | ) | |||||||
Other expense, net | 35,887 | 16,134 | 61,006 | 120,889 | 46,215 | |||||||||||
Operating income | 24,174 | 26,368 | 11,031 | 50,551 | 65,918 | |||||||||||
Plus depreciation and amortization expense | 48,853 | 47,819 | 48,757 | 147,547 | 143,033 | |||||||||||
Plus share-based compensation expense | 4,858 | 2,810 | 5,745 | 13,741 | 7,820 | |||||||||||
Plus imputed interest on financed devices | 608 | 651 | 630 | 1,919 | 1,885 | |||||||||||
Plus accretion expense | 425 | 406 | 437 | 1,352 | 1,240 | |||||||||||
Other | 227 | 131 | (533 | ) | (1,089 | ) | 435 | |||||||||
Adjusted EBITDA (Note 1) | 79,145 | 78,185 | 66,067 | 214,021 | 220,331 | |||||||||||
Liberty transaction costs | 1,620 | — | 8,943 | 14,771 | — | |||||||||||
Pro Forma EBITDA (Note 2) | $ | 80,765 | 78,185 | 75,010 | 228,792 | 220,331 | ||||||||||
Note: |
(1) Earnings plus imputed interest on financed devices before:
•Net interest expense,
•Income taxes,
•Depreciation and amortization expense,
•Loss on extinguishment of debt,
•Derivative instrument unrealized income (loss),
•Share-based compensation expense,
•Accretion expense,
•Loss attributable to non-controlling interest resulting from NMTC transactions,
•Gains and impairment losses on equity and cost method investments, and
•Other non-cash adjustments.
(2) Adjusted EBITDA plus Liberty transaction costs.
Adjusted and Pro Forma EBITDA are 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 Adjusted EBITDA and Pro Forma EBITDA to evaluate the operating performance of its business, and as a measure of performance for incentive compensation purposes. GCI believes Adjusted EBITDA and Pro Forma EBITDA are useful to investors and other users of our financial information in understanding and evaluating operating performance as an analytical indicator of income generated to service debt and fund capital expenditures. In addition, multiples of current or projected Adjusted EBITDA and Pro Forma EBITDA are used to estimate current or prospective enterprise value. Adjusted EBITDA and Pro Forma EBITDA do not give effect to cash used for debt service requirements, and thus do not reflect funds available for investment or other discretionary uses. Adjusted EBITDA and Pro Forma EBITDA as presented herein may not be comparable to similarly titled measures reported by other companies.
GENERAL COMMUNICATION, INC. AND SUBSIDIARIES | ||||||||||||||
SUPPLEMENTAL REVENUE SCHEDULES | ||||||||||||||
(Unaudited) | ||||||||||||||
(Amounts in thousands) | ||||||||||||||
Third Quarter 2017 | Third Quarter 2016 | |||||||||||||
Consumer | Business | Total | Consumer | Business | Total | |||||||||
Revenues | ||||||||||||||
Wireless | $ | 42,224 | 27,228 | 69,452 | 46,900 | 27,498 | 74,398 | |||||||
Data | 36,991 | 76,854 | 113,845 | 35,255 | 74,777 | 110,032 | ||||||||
Video | 24,991 | 4,364 | 29,355 | 26,134 | 4,636 | 30,770 | ||||||||
Voice | 5,939 | 12,623 | 18,562 | 6,551 | 14,904 | 21,455 | ||||||||
Total | $ | 110,145 | 121,069 | 231,214 | 114,840 | 121,815 | 236,655 | |||||||
(Amounts in thousands) | ||||||||||||||
Third Quarter 2017 | Second Quarter 2017 | |||||||||||||
Consumer | Business | Total | Consumer | Business | Total | |||||||||
Revenues | ||||||||||||||
Wireless | $ | 42,224 | 27,228 | 69,452 | 40,115 | 26,580 | 66,695 | |||||||
Data | 36,991 | 76,854 | 113,845 | 35,418 | 73,651 | 109,069 | ||||||||
Video | 24,991 | 4,364 | 29,355 | 24,937 | 4,794 | 29,731 | ||||||||
Voice | 5,939 | 12,623 | 18,562 | 5,910 | 12,941 | 18,851 | ||||||||
Total | $ | 110,145 | 121,069 | 231,214 | 106,380 | 117,966 | 224,346 | |||||||
(Amounts in thousands) | ||||||||||||||
Nine Months Ended September 30, 2017 | Nine Months Ended September 30, 2016 | |||||||||||||
Consumer | Business | Total | Consumer | Business | Total | |||||||||
Revenues | ||||||||||||||
Wireless | $ | 122,439 | 79,170 | 201,609 | 134,449 | 80,057 | 214,506 | |||||||
Data | 108,497 | 228,571 | 337,068 | 105,033 | 219,977 | 325,010 | ||||||||
Video | 74,867 | 13,280 | 88,147 | 81,294 | 14,530 | 95,824 | ||||||||
Voice | 17,910 | 38,941 | 56,851 | 20,357 | 45,822 | 66,179 | ||||||||
Total | $ | 323,713 | 359,962 | 683,675 | 341,133 | 360,386 | 701,519 | |||||||
GENERAL COMMUNICATION, INC. AND SUBSIDIARIES | |||||||||||||||||
KEY PERFORMANCE INDICATORS | |||||||||||||||||
(Unaudited) | |||||||||||||||||
September 30, 2017 | September 30, 2017 | ||||||||||||||||
as compared to | as compared to | ||||||||||||||||
September 30, | September 30, | June 30, | September 30, | June 30, | September 30, | June 30, | |||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | 2017 | |||||||||||
Consumer | |||||||||||||||||
Data | |||||||||||||||||
Cable modem subscribers1 | 125,400 | 128,900 | 127,300 | (3,500 | ) | (1,900 | ) | (2.7 | )% | (1.5 | )% | ||||||
Video | |||||||||||||||||
Basic subscribers2 | 99,800 | 108,800 | 102,100 | (9,000 | ) | (2,300 | ) | (8.3 | )% | (2.3 | )% | ||||||
Homes passed | 251,600 | 250,200 | 251,200 | 1,400 | 400 | 0.6 | % | 0.2 | % | ||||||||
Voice | |||||||||||||||||
Local access lines in service3 | 50,200 | 53,800 | 51,700 | (3,600 | ) | (1,500 | ) | (6.7 | )% | (2.9 | )% | ||||||
Business | |||||||||||||||||
Data | |||||||||||||||||
Cable modem subscribers1 | 10,000 | 10,100 | 10,000 | (100 | ) | — | (1.0 | )% | — | % | |||||||
Voice | |||||||||||||||||
Local access lines in service3 | 39,600 | 41,300 | 40,200 | (1,700 | ) | (600 | ) | (4.1 | )% | (1.5 | )% | ||||||
Video | |||||||||||||||||
Hotel and mini-headend subscribers | 17,200 | 17,100 | 19,100 | 100 | (1,900 | ) | 0.6 | % | (9.9 | )% | |||||||
Basic subscribers2 | 1,300 | 1,900 | 1,300 | (600 | ) | — | (31.6 | )% | — | % | |||||||
Total basic subscribers | 18,500 | 19,000 | 20,400 | (500 | ) | (1,900 | ) | (2.6 | )% | (9.3 | )% | ||||||
Consumer and Business Combined | |||||||||||||||||
Wireless | |||||||||||||||||
Consumer wireless lines in service4 | 200,900 | 203,000 | 201,200 | (2,100 | ) | (300 | ) | (1.0 | )% | (0.1 | )% | ||||||
Business wireless lines in service4 | 22,800 | 23,400 | 23,300 | (600 | ) | (500 | ) | (2.6 | )% | (2.1 | )% | ||||||
Total wireless lines in service | 223,700 | 226,400 | 224,500 | (2,700 | ) | (800 | ) | (1.2 | )% | (0.4 | )% | ||||||
1 On January 1, 2017, we transferred 3,100 small business cable modem subscribers from Business to Consumer. We adjusted the previously reported subscriber numbers as of September 30, 2016 for the number of subscribers that were transferred on January 1, 2017 and for database cleanup in preparation for our new billing system. | |||||||||||||||||
2 On January 1, 2017, we transferred 500 small business basic subscribers from Business to Consumer. We adjusted the previously reported subscriber numbers as of September 30, 2016 for the number of subscribers that were transferred on January 1, 2017 and for database cleanup in preparation for our new billing system. | |||||||||||||||||
3 On January 1, 2017, we transferred 4,800 small business local access lines from Business to Consumer. We adjusted the previously reported subscriber numbers as of September 30, 2016 for the number of subscribers that were transferred on January 1, 2017. | |||||||||||||||||
4 On January 1, 2017, we transferred 3,700 small business wireless lines from Business to Consumer. We adjusted the previously reported subscriber numbers as of September 30, 2016 for the number of subscribers that were transferred on January 1, 2017. |