ANCHORAGE, Alaska, March 9, 2011 /PRNewswire/ -- General Communication, Inc. ("GCI") (Nasdaq: GNCMA) today reported its 2010 results with revenues increasing 9.3 percent to $651.3 million over revenues of $595.8 million in 2009. Adjusted EBITDA increased $28.6 million or 14.8 percent over 2009 EBITDA of $192.9 million. EBITDA margin improved to 34.0 percent as compared to 32.4 percent for the prior year. Revenues and adjusted EBITDA were record high results for GCI.
Net income for 2010 totaled $9.0 million or earnings per diluted share of $0.17 and compares to net income of $3.5 million, or earnings per diluted share of $0.06 for 2009.
"For 2010 we recorded ' yet another best year ever' with revenues and EBITDA at all time highs of $651 million and $221 million respectively," said GCI president Ron Duncan. "The increase of more than $28 million in EBITDA demonstrates the solid return generated by GCI's investments.
"Our performance in the marketplace is exemplary, led by exceptional growth in wireless and continued strength across all of our other consumer businesses."During the year we purchased more than 8 million shares of our stock, returning more than $80 million in cash to shareholders. It is our expectation that we will continue to use available cash to repurchase shares subject to market conditions." For the fourth quarter of 2010, revenues totaled $165.0 million as compared to $147.5 million in the fourth quarter of 2009, an increase of 11.9 percent. Revenues were down $6.5 million sequentially when compared to third quarter 2010 revenues of $171.5 million. Approximately $3 million of the reduction was due to changes in estimates for receivables between the two quarters as a result of changes in certain USF payment rates. The balance of the reduction was due to normal seasonality. Fourth quarter 2010 adjusted EBITDA totaled $50.3 million and compares to $45.0 million, an increase of 12.0 percent over the fourth quarter of 2009. On a sequential basis, EBITDA decreased $12.4 million or 19.8 percent from $62.7 million in the third quarter of 2010. Sequential comparisons between the third and fourth quarter EBITDA are distorted by the effects of the $3 million in revenue adjustments referred to above plus a favorable $3.8 million adjustment to cost of goods sold recorded in the third quarter as a result of the resolution of several disputed billing issues. Consequently, more than half of the decrease between the two quarters is a result of adjustments and changes in estimates. The remaining amount is the result of normal seasonal effects and increased selling, general and administrative expenses (SG&A) for the fourth quarter of 2010. GCI anticipates revenues of $685 million to $700 million and adjusted EBITDA of $233 million to $238 million for the year 2011. GCI further anticipates it will incur capital expenditures of approximately $100 million for 2011, not including expenditures related to the TERRA-Southwest (TSW) project. GCI hopes to complete construction of the TSW project by the end of 2011. This would allow the project to be placed into service more than a year ahead of schedule. Residents of southwest Alaska would see the benefits of full terrestrial connectivity well ahead of schedule and GCI's anticipated EBITDA from the project would be accelerated. The TSW project is expected to cost $88 million, of which approximately $9 million was expended in 2010. The TSW project will be funded by a $44 million grant and $44 million long term loan as previously announced by GCI. Highlights
- GCI repurchased 8,011,750 shares of its Class A common stock for the calendar year ended 2010 at an average price per share of $10.08. GCI is authorized to repurchase more than $100 million of its shares depending on company performance, market conditions, and liquidity, and is subject to board oversight. At the end of 2010 GCI had approximately 47.1 million shares outstanding.
- GCI is the second largest wireless provider in Alaska with 138,700 wireless subscribers at the end of 2010, an increase of more than ten percent over the end of 2009.
- Consumer revenues for 2010 totaled $342.9 million, an increase of 16.3 percent over 2009. Revenue increases were strong across all product lines during 2010. Fourth quarter 2010 revenues of $86.7 million increased 14.4 percent over the prior year.
- GCI had 144,800 access lines at the end of 2010, representing an estimated 36 percent share of the total access line market in Alaska. Total access lines were up 1,200 in GCI's consumer and commercial group offset by a decrease of 1,100 lines in its regulated operations. While net GCI access lines were relatively flat year to year, GCI's market share increased more than 100 basis points due to a decline in the total size of the market.
- GCI's facilities-based access lines totaled 109,900, representing 76 percent of its total access lines at the end of 2010, an increase of 400 lines over the third quarter of 2010 and an increase of 2,600 lines when compared to the end of the fourth quarter of the prior year.
- GCI had 116,400 consumer and commercial cable modem customers at the end of 2010, an increase of 1,200 over the 115,200 cable modem customers at the end of the third quarter 2010. Average monthly revenue per cable modem for the fourth quarter of 2010 was $53.47, an increase of 17.2 percent over the $45.63 figure posted in the fourth quarter of 2009 and an increase of 5.7 percent over the $50.61 figure posted for the third quarter of 2010.