ANCHORAGE, AK – General Communication, Inc. (“GCI”) (NASDAQ:GNCMA) today reported its 2012 results with revenues increasing to $710.2 million over revenues of $679.4 million in 2011, an increase of $30.8 million or 4.5 percent. Adjusted EBITDA of $226.8 million increased $3.2 million or 1.4 percent over 2011 EBITDA of $223.6 million. Adjusted EBITDA for the year 2012 was offset by $3.0 million of expenses related to the Alaska Wireless Network (“AWN”) transaction.
Net income for 2012 totaled $9.7 million or earnings per diluted share of $0.23, an increase over net income of $5.7 million or earnings per diluted share of $0.12 for 2011.
For the fourth quarter of 2012, revenues totaled $183.7 million, an increase of $14.9 million or 8.8 percent over revenues of $168.8 million in the fourth quarter of 2011. Revenues were up $5.2 million or 2.9 percent sequentially when compared to third quarter 2012 revenues of $178.5 million. Adjusted EBITDA for the fourth quarter of 2012 was $53.1 million, an increase of $0.8 million or 1.6 percent over the fourth quarter of 2011 and a decrease of 10.7 percent from the third quarter of 2012. The sequential decrease in EBITDA was primarily due to an increase in COGS and selling, general and administrative costs.
“GCI’s results for 2012 were mostly on track with our expectations,” said Ron Duncan, GCI president. “Consumer Internet and managed broadband both had very strong years and we launched the iPhone to very a very positive customer response,although at a high handset cost.”
“We incurred $3 million in AWN related transaction costs for the year. While wewill incur more costs in 2013, the larger pre closing expense items are behind us. We continue planning for the AWN closing and the integration of GCI’s and Alaska Communications’ wireless networks. We look forward to announcing the achievement of this milestone following completion of the required regulatory approvals.”
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, excluding expenses related to the Alaska Wireless Network (“AWN”) transaction. GCI’s revenue and EBITDA results for 2012 finished in the middle of the revenue range and slightly below the low end of the EBITDA range, excluding the $3.0 million in expenses related to the AWN transaction.
The AWN transaction is expected to close during the second quarter of 2013. The timing of such closing during the quarter will impact GCI’s 2013 results. GCI will issue guidance on consolidated revenues, EBITDA and AWN’s expected preferred distributions for 2013 after the AWN transaction has been approved and completed.
- Managed Broadband revenues for 2012 totaled $86.6 million, an increase of $23.3 million or 36.9 percent over 2011, primarily as a result of sales of broadband service on GCI’s TERRA-Southwest terrestrial network. This was the first full year of revenues following GCI’s significant investment in rural terrestrial network expansion.
· GCI had 128,900 consumer and commercial cable modem customers at the end of 2012, an increase of 9,500 over the end of 2011. Fourth quarter cable modem customers increased by 4,200 over 124,700 customers at the end of the third quarter 2012. Average monthly revenue per cable modem for the fourth quarter of 2012 was $72.16, an increase of $11.84 over $60.32 posted for the prior year and $9.31 over $62.85 reported for the third quarter of 2012.
- GCI entered into a third arrangement under the New Markets Tax Credit (NMTC) program to help fund Phase 3 of our TERRA-Northwest project. Phase 3 of our TERRA-NW project continues the extension of terrestrial broadband service to Kotzebue. The NMTC program was established in the Community Renewal Tax Relief Act of 2000 to induce capital investment in qualified low-income communities.
GCI will hold a conference call to discuss the quarter’s results on Thursday, March 7, 2013 beginning at 2 p.m. (Eastern). To access the briefing on March 7, call the conference operator between 1:50-2:00 p.m. (Eastern Time) at 888-942-9042 (International callers should dial 1-415-228-4668) 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 866-485-4168, access code 7461 (International callers should dial 1-203-369-1620.)
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 78 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 statewide mobile wireless network seamlessly links urban and rural Alaska.
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.
Theforegoing contains forward-looking statements regarding GCI’s expected results that are based on management’s expectations as well as on a number ofassumptions 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.