Document

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 
 
 
 
FORM 8-K
 
CURRENT REPORT

Pursuant to Section 13 OR 15(d) of The
Securities Exchange Act of 1934

Date of report (Date of earliest event reported): August 2, 2017

 
GENERAL COMMUNICATION, INC.
 
 
(Exact name of registrant as specified in its charter)
 

 
State of Alaska
 
0-15279
 
92-0072737
 
 
(State or other Jurisdiction of Incorporation or organization)
 
Commission File Number
 
(I.R.S Employer
Identification No.)
 
 
 
2550 Denali Street
 
 
 
 
Suite 1000
 
 
 
 
Anchorage, Alaska
 
99503
 
 
(Address of principal executive offices)
 
(Zip Code)
 
 
Registrant’s telephone number, including area code: (907) 868-5600
 
 
NONE
 
 
(Former name or former address, if changed since last report)
 
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions:
 
¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
 
Emerging growth company ☐
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐




Section 2 - Financial Information

Item 2.02
Results of Operations and Financial Condition

On August 2, 2017, General Communication, Inc. ("GCI") issued a press release announcing earnings for the three and six months ended June 30, 2017. A copy of the press release is attached as Exhibit 99.1.

The information in this Form 8-K and the Exhibit attached hereto shall not be deemed "filed" for purposes of Section 18 of the Securities Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.

The earnings release attached as Exhibit 99.1 discloses the non-GAAP financial measure of Adjusted EBITDA (defined as 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) and Pro Forma EBITDA (defined as Adjusted EBITDA plus Liberty transaction costs) for the three and six months ended June 30, 2017 and 2016 and the three months ended March 31, 2017. Adjusted EBITDA and Pro Forma EBITDA have been reconciled to the closely related GAAP financial measure, net income (loss), within the earnings release.

Adjusted EBITDA 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.

Section 9 - Financial Statements and Exhibits

Item 9.01
Financial Statements and Exhibits

(d) Exhibits
 
 
 
 
 
 
 
 
Exhibit
 
 
 
 
Number
 
 
Description
 
99.1
 
 
Press Release issued by General Communication, Inc. on August 2, 2017
 
 
 
 
 
 



SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 
 
 
GENERAL COMMUNICATION, INC.
 
 
 
(Registrant)
 
 
 
 
Date: August 3, 2017
 
 
 
 
 
 
 
 
 
By
/s/ Peter J. Pounds
 
 
 
Name: Peter J. Pounds
 
 
 
Title:  Senior Vice President,
 
 
 
Chief Financial Officer,
 
 
 
and Secretary
 
 
 
(Principal Financial Officer)






 
 
 
 
Exhibit Index
 
 
 
 
Exhibit No.
 
Description
 
99.1
 
Press Release issued by General Communication, Inc. on August 2, 2017
 
 
 
 
 


Exhibit
    
Exhibit 99.1

                    

GCI REPORTS SECOND QUARTER 2017 FINANCIAL RESULTS
Net Loss of $9 million
Consolidated Revenue of $224 million
Pro Forma EBITDA of $75 million

August 2, 2017, Anchorage, Alaska - General Communication, Inc. (“GCI”) (NASDAQ: GNCMA) announces its results for the second 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 closing related requirements:

Financing: We have received consents from our bondholders waiving their change of control put right, and we have amended our Senior Credit Facility to allow for the transaction.

Hart-Scott-Rodino Review: On June 7, 2017, the Federal Trade Commission and Department of Justice announced early termination of the waiting period under the premerger notification rules.

Regulatory Approvals: 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 have submitted our S-4 to the SEC this week for review.

The transaction is expected to be completed during the fourth quarter of 2017, subject to the satisfaction of customary closing conditions, including the regulatory and shareholder approvals.

Universal Services - Rural Health Care (RHC) Program Update

The RHC program provides funding for rural health care facilities to gain access to critical broadband connectivity at urban rates. For the fiscal year ending June 30, 2017, the requests for funding from the program exceeded the program cap of $400 million for the first time. The FCC then reduced by 7.5 percent the amount of the subsidy to users who did not file in the first application window. This reduction left some of our customers with significant and unexpected amounts due.

With the significantly higher cost of service in Alaska, the FCC recognized that this would be a real burden on rural health care providers in Alaska. On June 30, 2017 the FCC




issued an order which would allow telecom providers to “forgive” the additional 7.5 percent payment which would have otherwise been payable, by retroactively resetting the rates for service. Under these specific circumstances, GCI is currently expecting to forgive these amounts for the fiscal year ending June 30, 2017. The impact of this decision is a one-time reduction of revenues and EBITDA of approximately $5 million in the second quarter. We are working with our rural health care provider partners and the FCC on alternative funding solutions for future years.
Operating and Financial Highlights

Our second quarter revenues were $224 million, a decline of $4 million sequentially and $9 million from the second quarter of 2016 driven by weakness in consumer wireless and video in addition to the RHC revenue reduction. Pro Forma EBITDA, which is Adjusted EBITDA plus $9 million of one-time Liberty transaction costs in the quarter, was $75 million. This is up $2 million from the previous quarter and $3 million year-over-year. Pro Forma EBITDA is up due to general operational efficiencies including savings achieved in procurement initiatives and our circuit costs.
As we mentioned in our first quarter call, 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 33.4 percent compared to 30.6 percent in the second quarter of 2016 and 32.0 percent in the first quarter of 2017.
Consumer
Consumer revenues of $106 million in the second quarter were down $6 million or 5.5 percent year-over-year and down $1 million or 0.8 percent sequentially. Wireless revenues were down $4 million year-over-year with the declines coming equally from handset sales and ARPU declines. Additionally, our video subscribers were down 7.1 percent year-over-year. The recession in Alaska is a significant contributing factor in our subscriber headwinds.
Business
GCI Business revenues of $118 million in the second quarter are down $3 million or 2.7 percent year-over-year and $3 million or 2.4 percent sequentially. The decline is primarily due to the $5 million RHC adjustment mentioned earlier. GCI Business revenues increased $2 million or 1.8 percent year-over-year and $3 million or 2.1 percent sequentially after removing the impact of the RHC adjustment. Sales of data products led to the revenue increase in business, which was partially offset by a decline in voice.
SG&A

SG&A expenses were $96 million during the quarter. Excluding the one-time Liberty transaction costs of $9 million, expenses were down $1 million or 0.8 percent year-over-year and down $2 million or 2.3 percent sequentially.





Capital Expenditures

Capital expenditures for the quarter totaled $43 million.
Leverage
After adding back the roaming adjustment and Liberty transaction costs, our net debt to trailing 12 months Adjusted EBITDA was 4.7x as of June 30, 2017.

2017 Guidance

We are narrowing 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, August 3, 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)
 
 
 
 
June 30,
 
December 31,
ASSETS
2017
 
2016
Current assets:
 
 
 
Cash and cash equivalents
$
23,022

 
19,297

 
 
 
 
Receivables
208,118

 
184,296

Less allowance for doubtful receivables
3,788

 
4,407

Net receivables
204,330

 
179,889

 
 
 
 
Prepaid expenses
23,221

 
18,599

Inventories
10,837

 
11,945

Other current assets
167

 
167

Total current assets
261,577

 
229,897

 
 
 
 
Property and equipment
2,682,580

 
2,614,875

Less accumulated depreciation
1,538,272

 
1,452,957

Net property and equipment
1,144,308

 
1,161,918

 
 
 
 
Goodwill
242,110

 
239,263

Cable certificates
191,635

 
191,635

Wireless licenses
93,753

 
92,347

Other intangible assets, net of amortization
76,082

 
74,444

Other assets
75,120

 
76,435

Total other assets
678,700

 
674,124

Total assets
$
2,084,585

 
2,065,939

 
 
 
 




GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Continued)
(Amounts in thousands)
 
 
 
 
June 30,
 
December 31,
LIABILITIES AND STOCKHOLDERS’ EQUITY
2017
 
2016
Current liabilities:
 
 
 
  Current maturities of obligations under long-term debt,
capital leases, and tower obligation
$
13,703

 
13,229

Accounts payable
49,360

 
72,937

Deferred revenue
39,960

 
37,618

Accrued payroll and payroll related obligations
30,979

 
30,305

Accrued liabilities
15,147

 
14,729

Accrued interest (including $2,296 and $5,132 to a related party at June 30, 2017 and December 31, 2016, respectively)
11,461

 
13,926

Subscriber deposits
1,224

 
917

Total current liabilities
161,834

 
183,661

 
 
 
 
Long-term debt, net (including $57,642 and $56,640 to a related party at June 30, 2017 and December 31, 2016, respectively)
1,384,105

 
1,333,446

Obligations under capital leases, excluding current maturities (including $1,738 and $1,769 due to a related party at June 30, 2017 and December 31, 2016, respectively)
45,393

 
50,316

Deferred income taxes
136,473

 
137,982

Long-term deferred revenue
137,359

 
135,877

Tower obligation
90,990

 
87,653

Other liabilities (including $71,400 and $29,700 for derivative stock appreciation rights with a related party at June 30, 2017 and December 31, 2016, respectively)
126,820

 
83,756

Total liabilities
2,082,974

 
2,012,691

 
 
 
 
Commitments and contingencies
 
 
 
Stockholders’ equity:
 

 
 

Common stock (no par):
 

 
 

Class A. Authorized 100,000 shares; issued 33,082 and 32,668 shares at June 30, 2017 and December 31, 2016, respectively; outstanding 33,056 and 32,642 shares at June 30, 2017 and December 31, 2016, respectively

 

Class B. Authorized 10,000 shares; issued and outstanding 3,052 and 3,153 shares at June 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 June 30, 2017 and December 31, 2016
(249
)
 
(249
)
Paid-in capital
11,686

 
3,237

Retained earnings (deficit)
(45,407
)
 
17,068

Total General Communication, Inc. stockholders' equity (deficit)
(31,392
)
 
22,719

Non-controlling interests
33,003

 
30,529

Total stockholders’ equity
1,611

 
53,248

Total liabilities and stockholders’ equity
$
2,084,585

 
2,065,939






GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
(Amounts in thousands, except per share amounts)
2017
 
2016
 
2017
 
2016
Revenues
$
224,346

 
233,766

 
452,461

 
464,864

Cost of goods sold (exclusive of depreciation and amortization shown separately below)
68,329

 
78,141

 
137,603

 
154,432

Selling, general and administrative expenses
96,229

 
88,022

 
189,787

 
175,668

Depreciation and amortization expense
48,757

 
48,072

 
98,694

 
95,214

Operating income
11,031

 
19,531

 
26,377

 
39,550

 
 
 
 
 
 
 
 
Other income (expense):
 
 
 
 
 
 
 
Interest expense (including amortization of deferred loan fees)
(20,946
)
 
(19,362
)
 
(40,782
)
 
(38,533
)
Interest expense with related party
(1,915
)
 
(1,846
)
 
(3,792
)
 
(3,677
)
Derivative instrument unrealized income (loss) with related party
(38,790
)
 
6,510

 
(41,700
)
 
11,040

Other
645

 
587

 
1,272

 
1,089

Other expense, net
(61,006
)
 
(14,111
)
 
(85,002
)
 
(30,081
)
 
 
 
 
 
 
 
 
Income (loss) before income taxes
(49,975
)
 
5,420

 
(58,625
)
 
9,469

Income tax (expense) benefit
40,975

 
(2,122
)
 
(5,621
)
 
(5,189
)
Net income (loss)
(9,000
)
 
3,298

 
(64,246
)
 
4,280

 
 
 
 
 
 
 
 
Net loss attributable to non-controlling interests
(118
)
 
(117
)
 
(235
)
 
(234
)
Net income (loss) attributable to General Communication, Inc.
$
(8,882
)
 
3,415

 
(64,011
)
 
4,514

 
 
 
 
 
 
 
 
Basic net income (loss) attributable to General Communication, Inc. common stockholders per Class A common share
$
(0.26
)
 
0.09

 
(1.86
)
 
0.12

Basic net income (loss) attributable to General Communication, Inc. common stockholders per Class B common share
$
(0.26
)
 
0.09

 
(1.86
)
 
0.12

Diluted net loss attributable to General Communication, Inc. common stockholders per Class A common share
$
(0.26
)
 
(0.01
)
 
(1.86
)
 
(0.05
)
Diluted net loss attributable to General Communication, Inc. common stockholders per Class B common share
$
(0.26
)
 
(0.01
)
 
(1.86
)
 
(0.05
)
Common shares used to calculate Class A basic EPS
31,276

 
33,308

 
31,248

 
33,502

Common shares used to calculate Class A diluted EPS
34,354

 
37,100

 
34,364

 
37,427






GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
SUPPLEMENTAL SCHEDULES
(Unaudited)
 
 
 
 
 
 
(Amounts in thousands)
Second Quarter 2017
 
Second Quarter 2016
 
First Quarter 2017
Revenues
 
 
 
 
 
  Wireless
$
66,695

 
71,848

 
65,462

  Data
109,069

 
108,007

 
114,154

  Video
29,731

 
31,645

 
29,061

  Voice
18,851

 
22,266

 
19,438

    Total
224,346

 
233,766

 
228,115

 
 
 
 
 
 
Cost of goods sold
68,329

 
78,141

 
69,274

 
 
 
 
 
 
    Contribution
156,017

 
155,625

 
158,841

 
 
 
 
 
 
Less SG&A
(96,229
)
 
(88,022
)
 
(93,558
)
Plus share-based compensation
5,745

 
2,683

 
3,138

Plus imputed interest on financed devices
630

 
633

 
681

Plus accretion
437

 
442

 
490

Other
(533
)
 
179

 
(783
)
    Adjusted EBITDA
66,067

 
71,540

 
68,809

Liberty transaction costs
8,943

 

 
4,208

Pro Forma EBITDA
$
75,010

 
71,540

 
73,017






GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
SUPPLEMENTAL SCHEDULES
(Unaudited)
 
 
 
 
 
Six Months Ended
 
June 30,
(Amounts in thousands)
2017
 
2016
Revenues
 
 
 
  Wireless
$
132,157

 
140,108

  Data
223,223

 
214,978

  Video
58,792

 
65,054

  Voice
38,289

 
44,724

    Total
452,461

 
464,864

 
 
 
 
Cost of goods sold
137,603

 
154,432

 
 
 
 
    Contribution
314,858

 
310,432

 
 
 
 
Less SG&A
(189,787
)
 
(175,668
)
Plus share-based compensation
8,883

 
5,010

Plus imputed interest on financed devices
1,311

 
1,234

Plus accretion
927

 
834

Other
(1,316
)
 
304

    Adjusted EBITDA
134,876

 
142,146

Liberty transaction costs
13,151

 

Pro Forma EBITDA
$
148,027

 
142,146






General Communication, Inc.
 
 
 
 
 
 
 
 
Non-GAAP Financial Reconciliation Schedule
 
 
 
 
 
 
 
 
(Unaudited, Amounts in Thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Six Months Ended
 
 
June 30,
 
June 30,
 
March 31,
 
June 30,
 
June 30,
 
 
2017
 
2016
 
2017
 
2017
 
2016
Net income (loss)
 
$
(9,000
)
 
3,298

 
(55,246
)
 
(64,246
)
 
4,280

Income tax expense (benefit)
 
(40,975
)
 
2,122

 
46,596

 
5,621

 
5,189

Income (loss) before income taxes
 
(49,975
)
 
5,420

 
(8,650
)
 
(58,625
)
 
9,469

 
 
 
 
 
 
 
 
 
 
 
Other (income) expense:
 
 
 
 
 
 
 
 
 
 
Interest expense (including amortization of deferred loan fees)
 
20,946

 
19,362

 
19,836

 
40,782

 
38,533

Related party interest expense
 
1,915

 
1,846

 
1,877

 
3,792

 
3,677

Derivative instrument unrealized (income) loss with related party
 
38,790

 
(6,510
)
 
2,910

 
41,700

 
(11,040
)
Other
 
(645
)
 
(587
)
 
(627
)
 
(1,272
)
 
(1,089
)
Other expense, net
 
61,006

 
14,111

 
23,996

 
85,002

 
30,081

 
 
 
 
 
 
 
 
 
 
 
Operating income
 
11,031

 
19,531

 
15,346

 
26,377

 
39,550

Plus depreciation and amortization expense
 
48,757

 
48,072

 
49,937

 
98,694

 
95,214

Plus share-based compensation expense
 
5,745

 
2,683

 
3,138

 
8,883

 
5,010

Plus imputed interest on financed devices
 
630

 
633

 
681

 
1,311

 
1,234

Plus accretion expense
 
437

 
442

 
490

 
927

 
834

Other
 
(533
)
 
179

 
(783
)
 
(1,316
)
 
304

Adjusted EBITDA (Note 1)
 
66,067

 
71,540

 
68,809

 
134,876

 
142,146

Liberty transaction costs
 
8,943

 

 
4,208

 
13,151

 

Pro Forma EBITDA (Note 2)
 
$
75,010

 
71,540

 
73,017

 
148,027

 
142,146

 
 
 
 
 
 
 
 
 
 
 
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)
 
 
 
 
 
 
 
 
Second Quarter 2017
 
Second Quarter 2016
 
Consumer
Business
Total
 
Consumer
Business
Total
Revenues
 
 
 
 
 
 
 
  Wireless
$
40,115

26,580

66,695

 
44,145

27,703

71,848

  Data
35,418

73,651

109,069

 
34,818

73,189

108,007

  Video
24,937

4,794

29,731

 
26,813

4,832

31,645

  Voice
5,910

12,941

18,851

 
6,764

15,502

22,266

    Total
$
106,380

117,966

224,346

 
112,540

121,226

233,766

 
 
 
 
 
 
 
 
(Amounts in thousands)
 
 
 
 
 
 
 
 
Second Quarter 2017
 
First Quarter 2017
 
Consumer
Business
Total
 
Consumer
Business
Total
Revenues
 
 
 
 
 
 
 
  Wireless
$
40,115

26,580

66,695

 
40,100

25,362

65,462

  Data
35,418

73,651

109,069

 
36,088

78,066

114,154

  Video
24,937

4,794

29,731

 
24,939

4,122

29,061

  Voice
5,910

12,941

18,851

 
6,061

13,377

19,438

    Total
$
106,380

117,966

224,346

 
107,188

120,927

228,115

 
 
 
 
 
 
 
 
(Amounts in thousands)
 
 
 
 
 
 
 
 
Six Months Ended June 30, 2017
 
Six Months Ended June 30, 2016
 
Consumer
Business
Total
 
Consumer
Business
Total
Revenues
 
 
 
 
 
 
 
  Wireless
$
80,215

51,942

132,157

 
87,549

52,559

140,108

  Data
71,506

151,717

223,223

 
69,778

145,200

214,978

  Video
49,876

8,916

58,792

 
55,160

9,894

65,054

  Voice
11,971

26,318

38,289

 
13,806

30,918

44,724

    Total
$
213,568

238,893

452,461

 
226,293

238,571

464,864

 
 
 
 
 
 
 
 






GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
KEY PERFORMANCE INDICATORS
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
June 30, 2017
 
June 30, 2017
 
 

 
as compared to
 
as compared to
 
 
June 30,
June 30,
March 31,
 
June 30,
March 31,
 
June 30,
March 31,
 
 
2017
2016
2017
 
2016
2017
 
2016
2017
Consumer
 
 
 
 
 
 
 
 
 
Data
 
 
 
 
 
 
 
 
 
 
Cable modem subscribers1
128,100

130,100

130,900

 
(2,000
)
(2,800
)
 
(1.5
)%
(2.1
)%
Video
 
 
 
 
 
 
 
 
 
 
Basic subscribers2
102,700

110,500

106,100

 
(7,800
)
(3,400
)
 
(7.1
)%
(3.2
)%
 
Homes passed
251,200

249,500

250,800

 
1,700

400

 
0.7
 %
0.2
 %
Voice
 
 
 
 
 
 
 
 
 
 
Local access lines in service3
51,700

54,300

52,700

 
(2,600
)
(1,000
)
 
(4.8
)%
(1.9
)%
Business
 
 
 
 
 
 
 
 
 
Data
 
 
 
 
 
 
 
 
 
 
Cable modem subscribers1
10,000

9,900

9,900

 
100

100

 
1.0
 %
1.0
 %
Voice
 
 
 
 
 
 
 
 
 
 
Local access lines in service3
40,200

41,400

40,300

 
(1,200
)
(100
)
 
(2.9
)%
(0.2
)%
Video
 
 
 
 
 
 
 
 
 
 
Hotel and mini-headend subscribers
19,100

20,700

15,200

 
(1,600
)
3,900

 
(7.7
)%
25.7
 %
 
Basic subscribers2
1,300

1,500

1,300

 
(200
)

 
(13.3
)%
 %
 
   Total basic subscribers
20,400

22,200

16,500

 
(1,800
)
3,900

 
(8.1
)%
23.6
 %
Consumer and Business Combined
Wireless
 
 
 
 
 
 
 
 
 
 
Consumer wireless lines in service4
201,200

203,900

198,600

 
(2,700
)
2,600

 
(1.3
)%
1.3
 %
 
Business wireless lines in service4
23,300

24,200

23,400

 
(900
)
(100
)
 
(3.7
)%
(0.4
)%
 
Total wireless lines in service
224,500

228,100

222,000

 
(3,600
)
2,500

 
(1.6
)%
1.1
 %
 
 
 
 
 
 
 
 
 
 
 
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 June 30, 2016 for the number of subscribers that were transferred on January 1, 2017.
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 June 30, 2016 for the number of subscribers that were transferred on January 1, 2017.
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 June 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 June 30, 2016 for the number of subscribers that were transferred on January 1, 2017.