ANCHORAGE, Alaska, Aug. 3, 2011 /PRNewswire/ -- General Communication, Inc. ("GCI") (NASDAQ: GNCMA) today reported its second quarter 2011 results with revenues increasing to $168.1 million over revenues of $162.3 million in the second quarter of 2010. Adjusted EBITDA decreased $2.4 million or 4.2 percent from the second quarter of 2010 EBITDA of $57.4 million. Adjusted EBITDA for the second quarter of 2011 increased $0.6 million after excluding the benefit of $3 million in net adjustments to EBITDA reflected in the second quarter of 2010. The 2010 adjustments were related to a change in USF estimates and a contract reserve adjustment for a large customer.
GCI's second quarter 2011 net loss totaled $2.0 million or loss per diluted share of $(0.04) and compares to net income of $1.9 million, or earnings per diluted share of $0.04 for the same period of 2010. GCI's second quarter net loss is primarily related to a $9.1 million loss on debt extinguishment related to the refinancing of the company's $320 million Senior Notes due 2014 that were replaced with a new issue due 2021.
Second quarter of 2011 revenues increased 2.0 percent or $3.3 million over first quarter of 2011 revenues. Adjusted EBITDA increased 3.0 percent or $1.6 million over the first quarter of 2011 Adjusted EBITDA.
"GCI's results for the second quarter were flat as a result of soft consumer metrics." said GCI president Ron Duncan. "Consumer growth was adversely affected by a large troop deployment from Fort Wainwright in Fairbanks, a billing clean-up and delays in the implementation of new systems and products. Most of those issues are behind us now and we expect to return to more normal consumer growth patterns in the second half of the year. Presently we expect results for the full year to be within the range of our guidance."We are on track with our important TERRA project and anticipate that it will be completed this year. We also continued to make strong progress on our stock repurchase program by retiring more than $14 million worth of stock in the second quarter. GCI previously provided guidance on revenues of $685 million to $700 million and adjusted EBITDA of $233 million to $238 million for the year 2011. Highlights
- GCI repurchased 1,233,067 shares of its Class A common stock in the second quarter of 2011 at an average price per share of $11.44. GCI is authorized to repurchase $114.4 million of its common equity depending on company performance, market conditions, and liquidity, and subject to board oversight. At the end of the second quarter of 2011 GCI had approximately 45.7 million shares outstanding.
- GCI is the second largest wireless provider in Alaska with 141,000 wireless subscribers at the end of the quarter, an increase of 800 subscribers over the end of the first quarter of 2011.
- Consumer revenues for the second quarter of 2011 totaled $88.6 million, an increase of 1.6 percent over the second quarter of 2010. Consumer revenues for the second quarter of 2010 benefited from a $4.1 million USF estimate change. Excluding the estimate change for the prior year, consumer revenues increased $5.5 million or 6.6 percent over 2010. Revenue increases were in the video, data and wireless product lines during the second quarter of 2011.
- Commercial revenues increased $2.1 million to $34.2 million as compared to $32.1 million in the second quarter of 2010 and increased $2.4 million over $31.8 million in the first quarter of 2011. Commercial revenues for the second quarter of 2010 were favorably impacted by a $0.6 million USF estimate change. The increase in revenues was primarily due to an increase in data service revenues, mostly from the oil sector.
- Managed Broadband revenues increased $4.3 million or 40.9 percent over the second quarter of 2010 and increased $0.6 million or 4.6 percent over the first quarter of 2011. The second quarter of 2010 reflected a $1.7 million contract reserve adjustment. Excluding the contract reserve adjustment, managed broadband revenues increased $2.6 million or 21.1 percent over the prior year.
- GCI had 142,400 access lines at the end of the second quarter of 2011, representing an estimated 36 percent share of the total access line market in Alaska. Access lines decreased by 2,900 lines from the first quarter of 2011.
- GCI's facilities-based access lines totaled 112,300, representing 78.9 percent of its total access lines at the end of the second quarter of 2011. Reported facilities based access lines decreased 2,000 lines from the first quarter of 2011. The decrease in lines is primarily due to a large troop deployment from Ft. Wainwright, located near Fairbanks.
- GCI had 116,400 consumer and commercial cable modem customers at the end of the second quarter of 2011, a decrease of 1,600 from the 118,000 cable modem customers at the end of the first quarter 2011. The decrease in customers is primarily due to the troop deployment in Fairbanks. Average monthly revenue per cable modem for the second quarter of 2011 was $53.85, an increase of 15.3 percent over the $46.69 figure posted for the prior year and 3.1 percent from the $52.21 figure posted for the first quarter of 2011.
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