ANCHORAGE, Alaska, March 7, 2012 /PRNewswire/ -- General Communication, Inc. ("GCI") (NASDAQ: GNCMA) today reported its 2011 results with revenues increasing to $679.4 million over revenues of $651.3 million in 2010. Adjusted EBITDA for 2011 was $223.6 million, an increase of $2.1 million over Adjusted EBITDA of $221.5 million for 2010.
For the fourth quarter of 2011, revenues totaled $168.8 million as compared to $165.0 million in the fourth quarter of 2010. Revenues were down $8.9 million sequentially when compared to third quarter 2011 revenues of $177.7 million. Adjusted EBITDA for the fourth quarter of 2011 was $52.3 million, an increase of 3.8 percent over the fourth quarter of 2010 and a decrease, as expected, of 17.2 percent from the seasonal peak third quarter of 2011.
Revenues and EBITDA for the fourth quarter and the year 2011 were unfavorably impacted by the November 29, 2011 FCC order implementing final rules for the calculation of support from the Universal Service Fund (USF) high cost program. The final rules, effective for the year 2012, accelerated the timing of an adjustment to USF accounts receivable which reduced GCI's reported revenue and EBITDA by $3.5 million in the fourth quarter of 2011. GCI had previously expected the order would affect the company's results beginning with the first quarter of 2012.Net income for 2011 totaled $5.8 million or earnings per diluted share of $0.12, a decrease from net income of $9.0 million or earnings per share of $0.17 for 2010. "GCI's completion of it's TERRA Southwest network on budget and nearly two years ahead of schedule was the highlight of 2011," said GCI President Ron Duncan. "This $88 million project which provides the first terrestrial connectivity for residents of southwest Alaska is an important platform for future growth." "Unfortunately 2011 performance was not as strong as we would have liked in our other key growth area of wireless. A nearly six month delay in the completion of our 4G network delayed plans for new products and devices and impeded subscriber growth. GCI has now rolled out its HSPA+ network covering Alaska's major population centers and we have a competitive offering of smartphones and modems capable of utilizing our new network. We will continue to expand the coverage of this network through the end of 2012. " "Excluding the adverse impact of the FCC Order, 2011 financial results were mostly in line with expectations. Revenues grew by more than four percent and, but for the FCC Order, EBITDAS, at $227 million, would have been at the high end of our revised guidance." GCI provided guidance on revenues of $685 million to $700 million and adjusted EBITDA of $225 million to $227 million for the year 2011, excluding any affects from the USF order. GCI's revenue and EBITDA results for 2011 finished near the low end of the revenue range and near the high end of the EBITDA range, respectively, excluding the impact of the changes to the USF high cost program. GCI anticipates revenues of $690 million to $720 million and adjusted EBITDA of $230 million to $240 million for the year 2012. Expectations for 2012 have been reduced by more than $13 million as a result of the FCC USF order. Highlights
- GCI completed construction on TERRA-Southwest (TERRA-SW) and has transitioned the majority of its customers in the TERRA-SW region to the recently completed network. TERRA-SW is GCI's project to extend terrestrial broadband service to Bristol Bay and the Yukon-Kuskokwim Delta and was completed by the end of 2011, two years ahead of schedule.
- GCI repurchased 5,228,885 shares of its Class A common stock in 2011 at an average price per share of $10.07. GCI is authorized to repurchase $92.9 million of its common equity depending on company performance, market conditions, and liquidity, and subject to board oversight. At the end of 2011, GCI had approximately 42.2 million shares outstanding.
- Managed Broadband revenues for 2011 totaled $63.2 million, an increase of $13.3 million or 26.6 percent over 2010. Fourth quarter 2011 revenues of $17.2 million increased $3.3 million over fourth quarter revenues of $13.9 million in 2010.
- Commercial revenues for 2011 increased $7.6 million to $136.1 million, as compared to revenues of $128.5 million in 2010. Fourth quarter 2011 revenues of $34.5 million increased 3.8 percent over the prior year. Commercial revenues were unfavorably impacted by $0.4 million in revenue adjustments due to changes to the USF high cost program in the fourth quarter of 2011.
- GCI is the second largest wireless provider in Alaska with 139,900 wireless subscribers at the end of 2011, an increase of 1,200 subscribers over the prior year. GCI has rolled out its HSPA+ network covering Alaska's major population centers and an additional nine towns and cities are covered by our HSPA network. We will continue to expand the coverage of this network through the end of 2012.
- GCI had 119,400 consumer and commercial cable modem customers at the end of 2011, an increase of 3,000 customers over 116,400 customers at the end of 2010. Fourth quarter cable modem customers increased by 1,500 over 117,900 customers at the end of the third quarter 2011. Average monthly revenue per cable modem for the fourth quarter of 2011 was $61.37, an increase of 14.8 percent over the $53.47 figure posted for the prior year and 6.9 percent from the $57.43 figure posted for the third quarter of 2011.
- GCI had 138,100 access lines at the end of the fourth quarter of 2011, representing an estimated 36 percent share of the total access line market in Alaska. Access lines for 2011 decreased 4.6 percent from the total at the end of 2010 and decreased 0.8 percent from the third quarter of 2011.
- GCI's facilities-based access lines totaled 109,800, representing 79.5 percent of its total access lines at the end of the fourth quarter of 2011. Facilities based access lines increased 100 lines over the third quarter of 2011.