GCI Reports First Quarter 2012 Financial Results
ANCHORAGE, Alaska, May 2, 2012 /PRNewswire/ — General Communication, Inc. (“GCI”) (NASDAQ:GNCMA) today reported its first quarter 2012 results with revenues increasing 4.3 percent to $171.9 million over revenues of $164.8 million in the first quarter of 2011. Adjusted EBITDA increased $1.5 million or 2.8 percent over the first quarter of 2011 EBITDA of $53.3 million. Revenues and EBITDA for the first quarter of 2012 were impacted by a $1.3 million decrease in USF support when compared to the first quarter of the prior year.
GCI’s first quarter 2012 net income totaled $1.4 million or earnings per diluted share of $0.03 and compares to net income of $1.4 million, or earnings per diluted share of $0.02 for the first quarter of 2011.
First quarter of 2012 revenues increased $3.1 million or 1.8 percent over revenues of $168.8 million in the fourth quarter of 2011. Adjusted EBITDA increased $2.6 million or 4.9 percent over adjusted EBITDA of $52.3 million in the fourth quarter of 2011.
“Strong results in four out of five business units, led by managed broadband, offset weak results in consumer to bring the quarter in approximately in accordance with our expectations,” said GCI president Ron Duncan. “The consumer group continues to suffer from soft customer metrics. We launched the iPhone last week and intend to use the iPhone in a number of new bundles and service packages to get the consumer metrics back on track. We are exceedingly pleased with the results in managed broadband that is the primary beneficiary of our new TERRA Southwest network.
- GCI repurchased 862,250 shares of its Class A common stock in the first quarter of 2012 at an average price per share of $10.40. GCI is authorized to repurchase more than $88 million of its shares depending on company performance, market conditions, liquidity, and subject to board oversight. At the end of the first quarter of 2012 GCI had approximately 41.6 million shares outstanding.
- Managed broadband revenues for the first quarter of 2012 totaled $19.0 million, an increase of 36.0 percent over the first quarter of 2011 and 10.6 percent over the fourth quarter of 2011. The strong revenue growth is primarily due to the increase in broadband service capacity resulting from the turn up of the TERRA Southwest terrestrial network.
- GCI had 122,000 consumer and commercial cable modem customers at the end of the first quarter of 2012, an increase of 2,600 over the 119,400 cable modem customers at the end of the fourth quarter 2011. Average monthly revenue per cable modem for the first quarter of 2012 was $61.48, an increase of 19.6 percent over the $51.39 figure posted for the prior year and an increase of 1.9 percent over the $60.32 figure posted for the fourth quarter of 2011.
- GCI had 136,900 access lines at the end of the first quarter of 2012, representing an estimated 36 percent share of the total access line market in Alaska. Access lines decreased by 1,200 lines from the fourth quarter of 2011.
- GCI’s facilities-based access lines totaled 109,500, representing 80.0 percent of its total access lines at the end of the first quarter of 2012. Total facilities-based access lines remained steady compared to the prior quarter primarily due to the continuing effort to transition leased commercial access lines to GCI owned facilities.
GCI will hold a conference call to discuss the quarter’s results on Thursday, May 3, 2012 beginning at 2 p.m. (Eastern). To access the briefing on May 3, call the conference operator between 1:50-2:00 p.m. (Eastern Time) at 888-566-7703 (International callers should dial 1-630-395-0020) 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 800-925-0728, access code 7461 (International callers should dial 1-402-998-1627.)
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 80 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. (“GCI”)