GCI Liberty Reports First Quarter 2020 Financial Results

May 7, 2020

ENGLEWOOD, Colo.--(BUSINESS WIRE)--May 7, 2020-- GCI Liberty, Inc. (“GCI Liberty”) (Nasdaq: GLIBA, GLIBP) today reported first quarter 2020 results. Headlines include(1):

  • Ensuring business continuity amidst COVID-19 pandemic
  • GCI(2) revenue increased 9% compared to the first quarter of 2019
    • Excluding revenue related to 2019 recognized in the quarter, GCI revenue increased 4%
    • GCI Consumer revenue up 3%
    • GCI Business revenue up 14%
      • Excluding revenue related to 2019 recognized in the quarter, GCI Business revenue increased 6%
  • GCI operating income and Adjusted OIBDA(3) increased
  • GCI launched 5G service in Anchorage on April 17th
  • Liquidity as of March 31st
    • $569 million of cash and cash equivalents, including $82 million at GCI
    • $267 million undrawn capacity under the GCI senior credit facility

"GCI remains committed to keeping Alaskans connected during this difficult time. We added 5,000 new cable modem customers in the quarter, approximately 70% of which were on our free 60 day promotional plan. Our network has experienced high demand with both voice and data usage peaking at 40 percent above normal; and the network has withstood this unprecedented demand without service interruptions to our customers," said GCI CEO, Ron Duncan. "However, like the rest of the nation, the Alaska economy has been damaged as of late and continues to struggle with the combination of historically low oil prices, a likely non-existent tourist season, and significant unemployment. Yet, our business model has been resilient and we are proud to provide critical connectivity services at this time. Our first quarter results demonstrated this, with increased revenue and Adjusted OIBDA growth.”

Note on COVID-19

GCI Liberty is monitoring and continues to assess the effects of the COVID-19 pandemic on its operations, wholly-owned businesses and various investments. COVID-19 has not had a material impact on GCI Liberty’s operating results in the first quarter, however, management has increased certain estimates, including but not limited to, allowance for doubtful accounts.

GCI Liberty is in compliance with all debt covenants as of March 31, 2020. GCI's leverage, as defined in its credit agreement, was 4.4x, versus a maximum allowable leverage of 6.5x. GCI Liberty believes it has sufficient liquidity to operate the business and does not anticipate any modifications to debt covenants will be needed in the near term.

GCI has seen a substantial increase in network traffic since early March, with utilization stabilizing at approximately 25% greater than pre-COVID-19 levels. The network continues to perform well despite higher levels of traffic. To assist Alaskans impacted by the COVID-19 pandemic, GCI launched several offers in March, providing free entry-level cable modem internet plans for new customers and free upgrades for existing customers through May 31, 2020. GCI is working directly with the Department of Education and Early Development and the Alaska Council of School Administrators to offer entry-level data plans with Wi-Fi equipment to K-12 students and teachers for free until May 31, 2020. GCI is also participating in the Federal Communications Commission's ("FCC") Keep Americans Connected Pledge, pausing disconnects and waiving late fees for residential and small business customers impacted by COVID-19 and opening its Wi-Fi hotspots to any American in need of them. Additionally, the State of Alaska has restricted GCI from charging late fees to or disconnecting residential customers impacted by COVID-19 until November 15, 2020 or the end of the public health emergency. The following discussion includes the impact of GCI's COVID-19 related offers and programs on financial results and subscriber metrics, which are expected to continue at least through the second quarter.

Discussion of Results

Unless otherwise noted, the following discussion compares financial information for the three months ended March 31, 2020 to financial information for the same period in 2019.

GCI

GCI participates in various Universal Service Fund ("USF") programs, which provide government subsidies to customers in low income areas, including schools, libraries and other facilities. One of these programs, the USF Rural Health Care ("RHC") Program, subsidizes the rates for services provided to rural health care providers(4). In the first quarter of 2019, GCI recorded an accounts receivable reserve of $21 million and associated bad debt expense relating to an RHC customer whose requested funding was denied under the RHC Program. As a result, GCI ceased recognizing revenue related to this customer for the period from April 1, 2019 through December 31, 2019. On February 19, 2020, the FCC issued an order that granted this customer's appeal and directed the Universal Service Administrative Company ("USAC") to reverse its previous funding denials. As a result, in the first quarter of 2020, GCI began recording revenue for services provided to this customer, which totaled $3 million in the current period, and recognized $9 million of revenue that was previously unrecognized for services provided to this customer in 2019. The $21 million accounts receivable reserve related to this customer was previously reversed at the end of the fourth quarter of 2019.

The following table provides GCI’s operating metrics and financial results for the first quarter of 2019 and 2020.

(amounts in thousands, except operating metrics)

 

1Q19

 

 

1Q20

 

% Change

 

GCI Consolidated Financial Metrics

 

 

 

 

 

 

 

 

Revenue

 

 

 

 

 

 

 

 

Consumer

$

106,590

 

 

$

109,834

 

 

3

 

%

Business

 

106,621

 

 

 

121,727

 

 

14

 

%

Total revenue

$

213,211

 

 

$

231,561

 

 

9

 

%

 

 

 

 

 

 

 

 

 

Operating income (loss)

$

(23,978)

 

 

$

23,186

 

 

197

 

%

Operating income margin (%)

 

(11.2)

 

%

 

10.0

 

%

2,120

 

bps

 

 

 

 

 

 

 

 

 

Adjusted OIBDA(a)

$

44,471

 

 

$

86,395

 

 

94

 

%

Adjusted OIBDA margin(a) (%)

 

20.9

 

%

 

37.3

 

%

1,640

 

bps

 

 

 

 

 

 

 

 

 

GCI Consumer

 

 

 

 

 

 

 

 

Financial Metrics

 

 

 

 

 

 

 

 

Revenue

 

 

 

 

 

 

 

 

Wireless

$

39,907

 

 

$

40,773

 

 

2

 

%

Data

 

41,178

 

 

 

44,294

 

 

8

 

%

Video

 

21,021

 

 

 

20,762

 

 

(1)

 

%

Voice

 

4,484

 

 

 

4,005

 

 

(11)

 

%

Total revenue

$

106,590

 

 

$

109,834

 

 

3

 

%

Operating Metrics

 

 

 

 

 

 

 

 

Wireless:

 

 

 

 

 

 

 

 

Revenue generating lines in service(b)

 

178,200

 

 

 

175,000

 

 

(2)

 

%

Non-revenue generating lines in service(c)

 

10,500

 

 

 

4,500

 

 

(57)

 

%

Wireless lines in service

 

188,700

 

 

 

179,500

 

 

(5)

 

%

Data:

 

 

 

 

 

 

 

 

Revenue generating cable modem subscribers(d)

 

124,800

 

 

 

128,400

 

 

3

%

Non-revenue generating cable modem subscribers(e)

 

 

 

 

3,600

 

 

NM

 

Cable modem subscribers

 

124,800

 

 

 

132,000

 

 

6

%

Video:

 

 

 

 

 

 

 

 

Basic subscribers

 

86,700

 

 

 

79,200

 

 

(9)

 

%

Homes passed

 

253,400

 

 

 

253,400

 

 

 

%

Voice - Total access lines in service(f)

 

43,600

 

 

 

38,900

 

 

(11)

 

%

 

 

 

 

 

 

 

 

 

GCI Business

 

 

 

 

 

 

 

 

Financial Metrics

 

 

 

 

 

 

 

 

Revenue

 

 

 

 

 

 

 

 

Wireless

$

22,757

 

 

$

22,489

 

 

(1)

 

%

Data

 

69,035

 

 

 

84,214

 

 

22

 

%

Video

 

3,825

 

 

 

4,022

 

 

5

 

%

Voice

 

11,004

 

 

 

11,002

 

 

 

%

Total revenue

$

106,621

 

 

$

121,727

 

 

14

 

%

Operating Metrics

 

 

 

 

 

 

 

 

Wireless - Revenue generating lines in service(b)

 

20,900

 

 

 

23,700

 

 

13

 

%

Data - Revenue generating cable modem subscribers(d)

 

9,000

 

 

 

8,800

 

 

(2)

 

%

Voice - Total access lines in service(f)

 

35,700

 

 

 

34,000

 

 

(5)

 

%

a)

See reconciling schedule 1.

b)

A revenue generating wireless line in service is defined as a wireless device with a monthly fee for services.

c)

A non-revenue generating wireless line in service is defined as a data-only line with no monthly fee for services.

d)

A revenue generating cable modem subscriber is defined by the purchase of cable modem service regardless of the level of service purchased. If one entity purchases multiple cable modem service access points, each access point is counted as a subscriber.

e)

A non-revenue generating cable modem subscriber is defined by the provision of basic cable modem service as a promotion to aid those impacted by COVID-19.

f)

A local access line in service is defined as a revenue generating circuit or channel connecting a customer to the public switched telephone network.

GCI revenue increased in the first quarter in part due to the RHC revenue previously discussed, as well as strength in both GCI Business and GCI Consumer revenue. Compared to the same period in 2019, operating income (loss) and Adjusted OIBDA improved meaningfully due to the $30 million benefit from the successful RHC appeal (the aforementioned revenue benefit and the $21 million write-off in the first quarter of 2019, which did not recur in the first quarter of 2020) as well as improvement in GCI's core operations. The operating performance improvement was driven by continued cost efficiencies and the focus on the core facilities based Alaska market.

GCI Consumer

Consumer revenue grew in the first quarter as gains in wireless and data revenue more than offset declines in video and voice. The data revenue increase was driven by an increase in subscribers and continued migration of existing subscribers to plans offering higher speeds and data limits. Wireless revenue increased due to customers selecting higher value plans. Video and voice revenues declined due to subscriber losses.

GCI Business

GCI Business revenue increased in the first quarter due to higher data and video revenue. Data revenue increased partly due to the aforementioned recognition of $9 million of RHC revenue from services provided in 2019 as well as higher sales to education and health care customers. Video revenue increased due to higher political advertising revenue. Wireless and voice revenue were relatively flat for the quarter.

Capital Expenditures

Year to date, GCI has spent $23 million on capital expenditures, excluding capitalized interest and accrued capital expenditures from 2019. Capital expenditure spending was related primarily to improvements to the wireless and hybrid fiber coax networks.

Share Repurchases

GCI Liberty did not repurchase shares from February 1, 2020 through April 30, 2020. The total remaining repurchase authorization for GCI Liberty is approximately $494 million.

FOOTNOTES

1)

GCI Liberty’s President and CEO, Greg Maffei, will discuss these headlines and other matters on GCI Liberty's earnings conference call which will begin at 5:00 p.m. (E.D.T.) on May 7, 2020. For information regarding how to access the call, please see “Important Notice” later in this document.

2)

GCI Liberty’s principal asset is GCI Holdings, LLC (“GCI” or “GCI Holdings”), Alaska's largest communications provider. Other assets include its interests in Charter Communications, Inc. ("Charter") and Liberty Broadband Corporation, as well as its interest in LendingTree and subsidiary Evite.

3)

For a definition of Adjusted OIBDA and Adjusted OIBDA margin and applicable reconciliations, see the accompanying schedules.

4)

More detailed information regarding certain regulatory matters pending before the FCC regarding USF programs, including the RHC program, can be found in GCI Liberty's Annual Report on Form 10-K for the year ended December 31, 2019.

GCI LIBERTY FINANCIAL METRICS

(amounts in thousands)

 

 

1Q19

 

 

1Q20

Revenue

 

 

 

 

 

 

GCI Holdings

 

$

213,211

 

 

$

231,561

 

Corporate and other

 

 

4,525

 

 

 

4,238

 

Total GCI Liberty Revenue

 

$

217,736

 

 

$

235,799

 

 

 

 

 

 

 

 

Operating Income (Loss)

 

 

 

 

 

 

GCI Holdings

 

$

(23,978

)

 

$

23,186

 

Corporate and other

 

 

(8,666

)

 

 

(12,603

)

Total GCI Liberty Operating Income (Loss)

 

$

(32,644

)

 

$

10,583

 

 

 

 

 

 

 

 

Adjusted OIBDA

 

 

 

 

 

 

GCI Holdings

 

$

44,471

 

 

$

86,395

 

Corporate and other

 

 

(6,306

)

 

 

(10,329

)

Total GCI Liberty Adjusted OIBDA

 

$

38,165

 

 

$

76,066

 

NOTES

The following financial information with respect to GCI Liberty's investments in equity securities and equity affiliates is intended to supplement GCI Liberty's consolidated statements of operations which are included in its Form 10-K and Form 10-Q for the year ended December 31, 2019 and three months ended March 31, 2020, respectively.

Fair Value of Public Holdings

(amounts in millions)

 

12/31/2019

 

3/31/2020

Charter(1)

 

$

2,599

 

 

$

2,338

 

Liberty Broadband(1)

 

 

5,367

 

 

 

4,726

 

LendingTree(2)

 

 

1,045

 

 

 

632

 

Total

 

$

9,011

 

 

$

7,696

 

(1)

Represents fair value of the investments in Charter and Liberty Broadband. A portion of the Charter equity securities are considered covered shares and subject to certain contractual restrictions in accordance with the indemnification obligation, as described below.

(2)

Represents fair value of the investment in LendingTree. In accordance with GAAP, this investment is accounted for using the equity method of accounting and is included in the balance sheet of GCI Liberty at $166 million and $165 million at December 31, 2019 and March 31, 2020, respectively.

Cash and Debt

The following presentation is provided to separately identify cash and liquid investments and debt information.

(amounts in millions)

12/31/2019

 

3/31/2020

Cash and Cash Equivalents:

 

 

 

 

 

GCI

$

61

 

 

$

82

 

Corporate and other

 

509

 

 

 

487

 

Total GCI Liberty Consolidated Cash

$

570

 

 

$

569

 

 

 

 

 

 

 

Debt:

 

 

 

 

 

Senior Notes

$

775

 

 

$

775

 

Senior Credit Facility

 

513

 

 

 

512

 

Finance Leases and Other(1)

 

110

 

 

 

109

 

Total GCI Debt

$

1,398

 

 

$

1,396

 

 

 

 

 

 

 

Margin Loan

$

1,300

 

 

$

1,300

 

1.75% Exchangeable Senior Debentures due 2046

 

477

 

 

 

477

 

Total Corporate Level Debt

$

1,777

 

 

$

1,777

 

 

 

 

 

 

 

Total GCI Liberty Debt

$

3,175

 

 

$

3,173

 

Premium on debt and deferred financing fees

 

191

 

 

 

143

 

Finance leases and tower obligation (excluded from GAAP Debt)

 

(103

)

 

 

(102

)

Total GCI Liberty Debt (GAAP)

$

3,263

 

 

$

3,214

 

 

 

 

 

 

 

Other Financial Obligations:

 

 

 

 

 

Indemnification Obligation(2)

$

202

 

 

$

180

 

Preferred Stock(3)

 

178

 

 

 

178

 

 

 

 

 

 

 

GCI Leverage(4)

 

5.1x

 

 

4.4x

(1)

Includes the Wells Fargo Note Payable and current and long-term obligations under finance leases and communication tower obligations.

(2)

Indemnity to Qurate Retail, pursuant to an indemnification agreement (the "indemnification agreement"), with respect to the Liberty Interactive LLC ("LI LLC") 1.75% exchangeable debentures due 2046 (the "Charter exchangeable debentures"), as described below.

(3)

Preferred shares have a 7% coupon, $25/share liquidation preference plus accrued and unpaid dividends and 1/3 vote per share. The redemption date is the first business day following the twenty-first anniversary of the March 8, 2018 auto conversion. The preferred stock is considered a liability for GAAP purposes.

(4)

As defined in GCI's credit agreement.

GCI Liberty cash was flat for the quarter as an increase in cash at GCI was offset by corporate expense. GCI cash increased as cash from operations more than offset capital expenditures. Both GCI Liberty and GCI debt were flat for the quarter.

Pursuant to an indemnification agreement, GCI Liberty will compensate Qurate Retail for any payments made in excess of the adjusted principal amount of the LI LLC Charter exchangeable debentures to any holder that exercises its exchange right on or before the put/call date of October 5, 2023. This indemnity is supported by a negative pledge in favor of Qurate Retail on the reference shares of Class A common stock of Charter held at GCI Liberty that underlie the LI LLC Charter exchangeable debentures. The indemnification obligation on GCI Liberty's balance sheet is valued based on the estimated exchange feature in the LI LLC Charter exchangeable debentures. As of April 1, 2020, a holder of the LI LLC Charter exchangeable debentures no longer has the ability to exchange, and accordingly, the indemnification obligation was reclassified as a long-term liability as of March 31, 2020. There is $332 million principal amount of the LI LLC Charter exchangeable debentures outstanding as of March 31, 2020.

Important Notice: GCI Liberty (Nasdaq: GLIBA, GLIBP) President and CEO, Greg Maffei, will discuss GCI Liberty's earnings release on a conference call which will begin at 5:00 p.m. (E.D.T.) on May 7, 2020. The call can be accessed by dialing (800) 458-4121 or (720) 543-0206, passcode 5580110, at least 10 minutes prior to the start time. The call will also be broadcast live across the Internet and archived on our website. To access the webcast go to www.gciliberty.com/events. Links to this press release and replays of the call will also be available on GCI Liberty's website.

This press release includes certain forward-looking statements under the Private Securities Litigation Reform Act of 1995, including statements about business strategies, market potential, future financial prospects, capital expenditures, the impact of COVID-19, Alaska's economy, the launch of new products and services, matters relating to the Universal Service Administrative Company and Rural Health Care program, indemnification by GCI Liberty, the continuation of our stock repurchase program and other matters that are not historical facts. These forward-looking statements involve many risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements, including, without limitation, possible changes in market acceptance of new products or services, competitive issues, regulatory matters affecting our businesses, continued access to capital on terms acceptable to GCI Liberty, changes in law and government regulations, the availability of investment opportunities, general market conditions (including as a result of COVID-19) and market conditions conducive to stock repurchases. These forward-looking statements speak only as of the date of this press release, and GCI Liberty expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in GCI Liberty's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Please refer to the publicly filed documents of GCI Liberty, including the most recent Forms 10-K and Forms 10-Q, for additional information about GCI Liberty and about the risks and uncertainties related to GCI Liberty's business which may affect the statements made in this press release.

NON-GAAP FINANCIAL MEASURES

To provide investors with additional information regarding our financial results, this press release includes a presentation of Adjusted OIBDA, which is a non-GAAP financial measure, for GCI Liberty (and certain of its subsidiaries) and GCI Holdings together with a reconciliation to that entity or such businesses’ operating income, as determined under GAAP. GCI Liberty defines Adjusted OIBDA as operating income (loss) plus depreciation and amortization, stock-based compensation, separately reported litigation settlements, insurance proceeds, restructuring, acquisition and other related costs and impairment charges. Further, this press release includes Adjusted OIBDA margin which is also a non-GAAP financial measure. GCI Liberty defines Adjusted OIBDA margin as adjusted OIBDA divided by revenue.

GCI Liberty believes Adjusted OIBDA is an important indicator of the operational strength and performance of its businesses by identifying those items that are not directly a reflection of each business' performance or indicative of ongoing business trends. In addition, this measure allows management to view operating results and perform analytical comparisons and benchmarking between businesses and identify strategies to improve performance. Because Adjusted OIBDA is used as a measure of operating performance, GCI Liberty views operating income as the most directly comparable GAAP measure. Adjusted OIBDA is not meant to replace or supersede operating income or any other GAAP measure, but rather to supplement such GAAP measures in order to present investors with the same information that GCI Liberty's management considers in assessing the results of operations and performance of its assets. Please see the attached schedules for applicable reconciliations.

SCHEDULE 1

The following table provides a reconciliation of GCI’s operating income (loss) to its Adjusted OIBDA for the three months ended March 31, 2019 and March 31, 2020, respectively.

GCI HOLDINGS ADJUSTED OIBDA RECONCILIATION

(amounts in thousands)

 

 

1Q19

 

 

1Q20

GCI Holdings

 

 

 

 

 

 

Operating Income (Loss)

 

$

(23,978

)

 

$

23,186

 

Depreciation and amortization

 

 

66,953

 

 

 

62,361

 

Stock compensation expense

 

 

3,996

 

 

 

848

 

Insurance proceeds

 

 

(2,500

)

 

 

 

Adjusted OIBDA

 

$

44,471

 

 

$

86,395

 

SCHEDULE 2

The following table provides a reconciliation of operating income (loss) calculated in accordance with GAAP to Adjusted OIBDA for GCI Liberty for the three months ended March 31, 2019 and March 31, 2020, respectively.

GCI LIBERTY ADJUSTED OIBDA RECONCILIATION

(amounts in thousands)

 

 

1Q19

 

 

1Q20

GCI Liberty

 

 

 

 

 

 

GCI Liberty Operating Income (Loss)

 

$

(32,644

)

 

$

10,583

 

Stock-based compensation

 

 

5,631

 

 

 

2,475

 

Insurance proceeds

 

 

(2,500

)

 

 

 

Depreciation and amortization

 

 

67,678

 

 

 

63,008

 

Consolidated GCI Liberty Adjusted OIBDA

 

$

38,165

 

 

$

76,066

 

GCI Holdings

 

$

44,471

 

 

$

86,395

 

Corporate and other

 

 

(6,306

)

 

 

(10,329

)

GCI LIBERTY, INC. AND SUBSIDIARIES

BALANCE SHEET INFORMATION

(unaudited)

 

 

March 31,

 

December 31,

 

2020

 

2019

 

Amounts in thousands, except share

amounts

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

568,762

 

569,520

 

Trade and other receivables, net of allowance for doubtful accounts of $7,795 and $7,516, respectively

106,284

 

114,435

 

Other current assets

35,599

 

43,868

 

Total current assets

710,645

 

727,823

 

Investments in equity securities

2,343,209

 

2,605,293

 

Investments in affiliates, accounted for using the equity method

166,565

 

167,643

 

Investment in Liberty Broadband measured at fair value

4,725,734

 

5,367,242

 

Property and equipment, net

1,067,592

 

1,090,901

 

Intangible assets not subject to amortization

 

 

 

Goodwill

855,837

 

855,837

 

Cable certificates

305,000

 

305,000

 

Other

41,500

 

41,500

 

 

1,202,337

 

1,202,337

 

Intangible assets subject to amortization, net

379,885

 

391,979

 

Tax sharing receivable

74,001

 

84,534

 

Other assets, net

323,559

 

295,693

 

Total assets

$

10,993,527

 

11,933,445

 

 

 

 

 

Liabilities and Equity

 

 

 

Current liabilities:

 

 

 

Accounts payable and accrued liabilities

$

91,159

 

92,893

 

Deferred revenue

25,902

 

27,886

 

Current portion of debt, net of deferred financing costs

3,085

 

3,008

 

Indemnification obligation

 

202,086

 

Other current liabilities

84,083

 

69,149

 

Total current liabilities

204,229

 

395,022

 

Long-term debt, net, including $607,301 and $658,839 measured at fair value, respectively

3,210,630

 

3,263,210

 

Obligations under finance leases and tower obligations, excluding current portion

96,104

 

97,507

 

Long-term deferred revenue

54,940

 

57,986

 

Deferred income tax liabilities

1,303,525

 

1,527,109

 

Preferred stock

178,063

 

178,002

 

Derivative instrument

24,165

 

71,305

 

Indemnification obligation

179,746

 

 

Other liabilities

127,011

 

133,020

 

Total liabilities

5,378,413

 

5,723,161

 

Equity

 

 

 

Stockholders’ equity:

 

 

 

Series A common stock, $0.01 par value. Authorized 500,000,000 shares; issued and outstanding 101,319,919 shares at March 31, 2020 and 101,306,716 shares at December 31, 2019

1,013

 

1,013

 

Series B common stock, $0.01 par value. Authorized 20,000,000 shares; issued and outstanding 4,488,829 shares at March 31, 2020 and 4,437,593 shares at December 31, 2019

45

 

44

 

Series C common stock, $0.01 par value. Authorized 1,040,000,000 shares; no issued and outstanding at March 31, 2020 and December 31, 2019

 

 

Additional paid-in capital

3,223,368

 

3,221,885

 

Accumulated other comprehensive earnings (loss), net of taxes

34,145

 

(4,084

)

Retained earnings

2,347,768

 

2,982,626

 

Total stockholders' equity

5,606,339

 

6,201,484

 

Non-controlling interests

8,775

 

8,800

 

Total equity

5,615,114

 

6,210,284

 

Commitments and contingencies

 

 

 

Total liabilities and equity

$

10,993,527

 

11,933,445

 

GCI LIBERTY, INC. AND SUBSIDIARIES

STATEMENT OF OPERATIONS INFORMATION

(unaudited)

 

 

Three months ended

 

March 31,

 

2020

 

2019

 

Amounts in thousands, except

per share amounts

Revenue

$

235,799

 

 

217,736

 

Operating costs and expenses:

 

 

 

Operating expense (exclusive of depreciation and amortization shown separately below)

69,663

 

 

68,893

 

Selling, general and administrative, including stock-based compensation

92,545

 

 

116,309

 

Depreciation and amortization expense

63,008

 

 

67,678

 

Insurance proceeds

 

 

(2,500

)

 

225,216

 

 

250,380

 

Operating income (loss)

10,583

 

 

(32,644

)

Other income (expense):

 

 

 

Interest expense (including amortization of deferred loan fees)

(36,255

)

 

(37,618

)

Share of earnings (losses) of affiliates, net

(707

)

 

(3,296

)

Realized and unrealized gains (losses) on financial instruments, net

(833,992

)

 

1,009,600

 

Tax sharing agreement

(10,533

)

 

9,081

 

Other, net

2,380

 

 

2,768

 

 

(879,107

)

 

980,535

 

Earnings (loss) before income taxes

(868,524

)

 

947,891

 

Income tax (expense) benefit

236,622

 

 

(269,405

)

Net earnings (loss)

(631,902

)

 

678,486

 

Less net earnings (loss) attributable to the non-controlling interests

(25

)

 

(57

)

Net earnings (loss) attributable to GCI Liberty, Inc. shareholders

$

(631,877

)

 

678,543

 

Basic net earnings attributable to Class A and Class B GCI Liberty, Inc. shareholders per common share

$

(5.99

)

 

6.47

 

Diluted net earnings attributable to Class A and Class B GCI Liberty, Inc. shareholders per common share

$

(5.99

)

 

6.41

 

GCI LIBERTY, INC. AND SUBSIDIARIES

STATEMENT OF CASH FLOWS INFORMATION

(unaudited)

 

 

Three months ended

 

March 31,

 

2020

 

2019

 

amounts in thousands

Cash flows from operating activities:

 

 

 

Net earnings (loss)

$

(631,902

)

 

678,486

 

Adjustments to reconcile net earnings (loss) to net cash from operating activities:

 

 

 

Depreciation and amortization

63,008

 

 

67,678

 

Stock-based compensation expense

2,475

 

 

5,631

 

Share of (earnings) losses of affiliates, net

707

 

 

3,296

 

Realized and unrealized (gains) losses on financial instruments, net

833,992

 

 

(1,009,600

)

Deferred income tax expense (benefit)

(236,622

)

 

269,397

 

Other, net

19

 

 

2,489

 

Change in operating assets and liabilities:

 

 

 

Current and other assets

(3,431

)

 

11,801

 

Payables and other liabilities

2,417

 

 

(8,113

)

Net cash provided (used) by operating activities

30,663

 

 

21,065

 

Cash flows from investing activities:

 

 

 

Capital expended for property and equipment

(35,665

)

 

(40,114

)

Other investing activities, net

1,088

 

 

803

 

Net cash provided (used) by investing activities

(34,577

)

 

(39,311

)

Cash flows from financing activities:

 

 

 

Repayment of debt, finance leases and tower obligations

(2,259

)

 

(4,739

)

Repurchases of GCI Liberty common stock

 

(43,910

)

Other financing activities, net

(1,065

)

 

(1,929

)

Net cash provided (used) by financing activities

(3,324

)

 

(50,578

)

Net increase (decrease) in cash, cash equivalents and restricted cash

(7,238

)

 

(68,824

)

Cash, cash equivalents and restricted cash at beginning of period

576,150

 

 

492,032

 

Cash, cash equivalents and restricted cash at end of period

$

568,912

 

 

423,208

 

 

GCI Liberty, Inc.
Courtnee Chun, 720-875-5420

Source: GCI Liberty, Inc.

© 2020 GCI Liberty