GCI Reports Second Quarter 2010 Financial Results
-- Consolidated revenue of $162.3 million -- Adjusted EBITDA of $57.4 million -- Net income of $1.9 million or $0.04 per diluted share
ANCHORAGE, Alaska, Aug. 4 /PRNewswire-FirstCall/ -- General Communication, Inc. ("GCI") (NASDAQ:GNCMA) today reported its second quarter 2010 results with revenues increasing to $162.3 million and adjusted EBITDA increasing to $57.4 million.
"Five years ago GCI was reselling another provider's wireless products and had only 12,000 customers," said GCI president Ron Duncan. "Since then we have diligently built the only statewide wireless network and customers have responded in droves. In those five years we have welcomed 120,000 new customers growing our base ten fold. While we were a little late to build our own network we worked aggressively to create the best statewide wireless system and are proud to acknowledge that Alaskans have rewarded GCI by making us the second largest wireless company in the state."
"GCI's wireless results have been a leading indicator of our financial performance for several quarters and this move to second place in wireless fits nicely with announcing yet another record high quarter of revenues and EBITDA. I couldn't be more pleased with our performance and I'd like to thank the customers, contractors and employees who have made it possible. Watch out number one, here we come!"
Revenues for the second quarter of 2010 increased 9.1 percent over revenues of $148.8 million in the second quarter of 2009. Adjusted EBITDA increased $6.1 million or 11.9 percent over the second quarter of 2009 EBITDA of $51.2 million. The increase in revenues and EBITDA was partly due to a $4.7 million change in the estimate of the amount due to GCI under the USF high-cost area program, offset by a $1.7 million reserve adjustment for amounts receivable under a contract with a large customer. The USF estimate change impacted the consumer and commercial segments. The contract reserve adjustment was attributed to the managed broadband segment.
GCI's second quarter 2010 net income totaled $1.9 million or earnings per diluted share of $0.04 and compares to net income of $2.6 million, or earnings per diluted share of $0.05 for the same period of 2009.
Second quarter 2010 revenues increased $9.9 million or 6.5 percent over total revenues of $152.4 million in the first quarter of 2010. Adjusted EBITDA increased $6.3 million or 12.3 percent over adjusted EBITDA of $51.1 million in the first quarter of 2010. The sequential increase in revenues and EBITDA was favorably impacted by the aforementioned adjustments.
"GCI anticipated revenues of $610 million to $620 million and adjusted EBITDA of $200 to $204 million for the year 2010," said Duncan. "The company's practice is to provide guidance only on an annual basis, however our continued success in the consumer business, improvements in the commercial business and stabilizing trends in the network access business lead us to conclude that GCI is likely to slightly exceed its guidance for the year."
"Alaska's economy continues to perform well when benchmarked against the rest of the country. Alaska jobs are growing again and energy prices appear to be stabilizing at levels that will support the state's operating budget."
-- GCI became the second largest wireless provider in Alaska with the
addition of 3,100 wireless subscribers in the second quarter of 2010.
Wireless subscribers totaled 131,200 at the end of the quarter.
-- Consumer revenues for the second quarter of 2010 totaled $87.1
million, an increase of 18.7 percent over the second quarter of 2009
and an increase of 8.4 percent over the first quarter of 2010. Revenue
increases were strong for all consumer products and services.
-- GCI had 145,400 access lines at the end of the second quarter of 2010,
representing an estimated 35 percent share of the total access line
market in Alaska. Access lines decreased by 1,300 lines from the first
quarter of 2010.
-- GCI's facilities-based access lines totaled 109,700, representing 75
percent of its total access lines at the end of the second quarter of
2010, a decrease of 200 lines from the first quarter of 2010 and an
increase of 8,000 lines when compared to the end of the second quarter
of the prior year.
-- GCI had 114,300 consumer and commercial cable modem customers at the
end of the second quarter of 2010, an increase of 700 over the 113,600
cable modem customers at the end of the first quarter 2010. Average
monthly revenue per cable modem totaled $46.69 for the second quarter
of 2010 as compared to $42.19 in the prior year, an increase of 10.7
percent and is up 1.8 percent over $45.85 for the first quarter of
-- GCI had 151,500 basic video subscribers at the end of the second
quarter of 2010, a decrease of 200 from the second quarter of 2009 and
an increase of 2,300 over the first quarter of 2010.
-- GCI repurchased 171,300 shares of its Class A common shares at a cost
of approximately $1.0 million or $5.86 per share during the second
quarter of 2010. 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, August 5, 2010 beginning at 2 p.m. (Eastern). To access the briefing on August 5, call the conference operator between 1:50-2:00 p.m. (Eastern Time) at 888-829-8669 (International callers should dial 1-630-395-0367) 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 866-453-2036, access code 7461 (International callers should dial 203-369-1225.)
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. 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.