-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, JfFp9bFqeQAxIGiRA7lhOXr7EYopqkRbQ6dZw5tgJYLJ1T/LBNQ2IcXUp3Sqb8+U Cb4NJJxpvpijroJmpQZRCA== 0000808461-03-000019.txt : 20030723 0000808461-03-000019.hdr.sgml : 20030723 20030723104958 ACCESSION NUMBER: 0000808461-03-000019 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030722 ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20030723 FILER: COMPANY DATA: COMPANY CONFORMED NAME: GENERAL COMMUNICATION INC CENTRAL INDEX KEY: 0000808461 STANDARD INDUSTRIAL CLASSIFICATION: TELEPHONE COMMUNICATIONS (NO RADIO TELEPHONE) [4813] IRS NUMBER: 920072737 STATE OF INCORPORATION: AK FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-15279 FILM NUMBER: 03797594 BUSINESS ADDRESS: STREET 1: 2550 DENALI ST STE 1000 CITY: ANCHORAGE STATE: AK ZIP: 99503 BUSINESS PHONE: 9072655600 MAIL ADDRESS: STREET 1: 2550 DENALI STREET STREET 2: SUITE 1000 CITY: ANCHORAGE STATE: AK ZIP: 99503 8-K 1 gci8kform72203.txt GENERAL COMMUNICATION, INC. FORM 8-K 7/22/03 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 ---------- FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934 Date of report (Date of earliest event reported): July 22, 2003 GENERAL COMMUNICATION, INC. (Exact Name of Registrant as Specified in its Charter) Alaska 0-15279 92-0072737 - --------------- ---------------------- ------------ (State or Other (Commission File Number) (IRS Employer Jurisdiction of Identification Incorporation) Number) 2550 Denali Street Suite 1000 Anchorage, Alaska 99503 ----------------------------------------------------- -------- (Address of Principal Executive Offices) (Zip Code) Registrant's telephone number, including area code: (907) 265-5600 NONE ----------------------------------------------------------- (Former Name or Former Address, if Changed Since Last Report) Item 7. Financial Statements and Exhibit. (a) Financial statements of businesses acquired: None (b) Pro forma financial information: None (c) Exhibit: This exhibit is furnished pursuant to Item 9 hereof and should not be deemed to be "filed" under the Securities Exchange Act of 1934. 99.1 Press release dated July 22, 2003 Item 9. Regulation FD Disclosure and disclosure under Item 12-- Results of Operations and Financial Condition. On July 22, 2003, General Communication, Inc. (GCI) issued a press release announcing second quarter 2003 earnings. A copy of the press release is attached as Exhibit 99.1. This information furnished under "Item 9. Regulation FD Disclosure" is intended to be furnished under "Item 12. Results of Operations and Financial Condition" in accordance with SEC Release No. 33-8216. 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 EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization). EBITDA has been reconciled to the closely related GAAP financial measure, Net Income, within the earnings release. EBITDA is the sum of Net Income, Net Interest expense, Taxes, and Depreciation and Amortization. EBITDA is not presented as an alternative measure of Net Income as determined in accordance with Generally Accepted Accounting Principals. GCI's management uses EBITDA to evaluate the operating performance of its business, and as a measure of performance for incentive compensation purposes. GCI believes EBITDA is a measure used as an analytical indicator of income generated to service debt and fund capital expenditures. In addition, multiples of current or projected EBITDA are used to estimate current or prospective enterprise value. EBITDA does not give effect to cash used for debt service requirements, and thus does not reflect funds available for investment or other discretionary uses. EBITDA as presented herein may not be comparable to similarly titled measures reported by other companies. 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: July 22, 2003 By /s/ John M. Lowber ----------------------------------- Name: John M. Lowber Title: Senior Vice President, Chief Financial Officer, Secretary and Treasurer (Principal Financial Officer) EX-99 2 gci8kexhibit72203.txt EXHIBIT 99 TO GCI FORM 8-K 7/22/03 EXHIBIT INDEX Exhibit No. Description - ----------- -------------------------------------------------------- 99.1 Press release of General Communication, Inc., Inc. dated July 22, 2003. Exhibit 99.1 July 22, 2003 John Lowber, (907) 868-5628; jlowber@gci.com Bruce Broquet, (907) 868-6660; bbroquet@gci.com David Morris, (907) 265-5396; dmorris@gci.com FOR IMMEDIATE RELEASE GCI ANNOUNCES SECOND QUARTER 2003 RESULTS ANCHORAGE, AK -- GCI (NASDAQ:GNCMA) today announced its results for the second quarter of 2003. For the second quarter of 2003, the company expects net income will total $4.8 million or $0.08 per share on a diluted basis. The expected second quarter 2003 net income compares to a net loss of $1.1 million or $(0.03) per share for the second quarter of 2002. For the six months ended June 30, 2003, GCI expects to report net income of $7.4 million or $0.11 per share on a diluted basis, after the cumulative effect of a change in accounting principle of $0.5 million or $(0.01) per share on a diluted basis, net of income tax benefit. GCI recorded net income of $1.1 million or $0.00 per share on a diluted basis for the six months ending June 30, 2002. Revenues are expected to total $95.9 million for the second quarter of 2003, an increase of 3.5 percent as compared to $92.7 million in the second quarter of 2002. Earnings before interest, taxes, depreciation, amortization, and accretion (EBITDA) is expected to increase to $30.8 million for the second quarter of 2003, an increase of $12.1 million or 64.7 percent when compared to second quarter 2002 EBITDA of $18.7 million. EBITDA for the second quarter of 2002 included a charge of $9.7 million increasing the company's reserve for bad debts due to the WorldCom bankruptcy. The expected EBITDA for the second quarter of 2003 includes a net $861,000 non-recurring refund from an intrastate access cost pool that previously overcharged the company for access services. Revenues for the second quarter increased sequentially 3.3 percent to $95.9 million as compared to revenues of $92.8 million in the first quarter of 2003. GCI's second quarter EBITDA of $30.8 million compares to EBITDA of $28.9 million in the first quarter of 2003. GCI's second quarter 2003 revenues of $95.9 million and EBITDA of $30.8 million exceeded guidance for revenues of approximately $92 million to $95 million and EBITDA in excess of $28.9 million, respectively. "We are pleased with our results for the first half of 2003," said Ron Duncan, GCI president. "Our revenue and customer counts continue to grow and the events associated with the WorldCom bankruptcy are largely behind us. As expected, EBITDA exceeded the first quarter and we remain on target to meet our EBITDA guidance for the year. During the quarter we were pleased to announce that we will be enhancing the quality of our Alaska network with the construction of geographically diverse undersea fiber route which will provide restoration capability, additional capacity and increased reliability for our government and commercial customers and for all Alaskans who use GCI's long distance, Internet and other services." The company's local services business added 2,900 access lines during the second quarter and now serves 101,900 local lines, an estimated 21 percent share of the total access line market in Alaska. GCI's statewide dial-up Internet platform decreased 1,300 customers to 70,300 customers during the second quarter as more customers continue to migrate to cable modems. More than 40,500 Internet customers are using GCI cable modem service, an increase of 1,900 over the first quarter of 2003. GCI cable television services now pass 200,405 homes and serve 137,230 basic subscribers. Basic subscribers increased sequentially by 947 subscribers from the first quarter of 2003. Digital subscribers increased sequentially by 500 when compared to the first quarter of 2003. GCI serves 30,700 digital customers in Anchorage, Fairbanks, Juneau and Kenai. Further detailed results and financial tables for the second quarter of 2003 will be released on July 30, 2003. GCI will also hold an institutional investor and analyst conference call on July 31, 2003 at 2 p.m. Eastern time. To access the briefing on July 31, dial 877-709-5341 (international callers should dial 630-395-0019) and identify your call as "GCI." In addition to the conference call, GCI will make available net conferencing. To access the call via net conference, log on to www.gci.com and follow the instructions. The foregoing contains forward-looking statements regarding the company's expected results which 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 Form 10-K and 10-Q filed with the Securities and Exchange Commission. Based on revenues, GCI is the largest Alaska-based and operated integrated telecommunications provider. The company provides local, wireless, and long distance telephone, cable television, Internet and data communication services. More information about the company can be found at www.gci.com. Non-GAAP Financial Reconciliation Schedule (Amounts in Millions)
Three Months Ended June 30, 2003 June 30, 2002 March 31, 2003 ---------------- --------------- ---------------- EBITDA (Note 1) $ 30.8 18.7 28.9 Depreciation, amortization and accretion expense 12.8 13.9 13.5 ---------------- --------------- ---------------- Operating income 18.0 4.8 15.4 ---------------- --------------- ---------------- Other income (expense): Interest expense (9.1) (6.2) (9.2) Deferred loan and senior notes fee expense (0.6) (0.4) (1.1) Interest income 0.1 0.1 0.2 ---------------- --------------- ---------------- Other expense, net (9.6) (6.5) (10.1) ---------------- --------------- ---------------- Net income (loss) before income taxes and cumulative effect of a change in accounting principle 8.4 (1.7) 5.3 Income tax (expense) benefit (3.6) 0.6 (2.2) ---------------- --------------- ---------------- Net income (loss) before cumulative effect of a change in accounting principle 4.8 (1.1) 3.1 Cumulative effect of a change in accounting principle, net of income tax benefit of $0.4 --- --- (0.5) ---------------- --------------- ---------------- Net income (loss) $ 4.8 (1.1) 2.6 ================ =============== ================
Non-GAAP Financial Reconciliation Schedule (continued) (Amounts in Millions)
Six Months Ended June 30, 2003 June 30, 2002 ---------------- --------------- EBITDA (Note 1) $ 59.7 43.8 Depreciation, amortization and accretion expense 26.3 27.9 ---------------- --------------- Operating income 33.4 15.9 ---------------- --------------- Other income (expense): Interest expense (18.3) (12.8) Deferred loan and senior notes fee expense (1.7) (1.1) Interest income 0.3 0.2 ---------------- --------------- Other expense, net (19.7) (13.7) ---------------- --------------- Net income before income taxes and cumulative effect of a change in accounting principle 13.7 2.2 Income tax expense (5.8) (1.1) ---------------- --------------- Net income before cumulative effect of a change in accounting principle 7.9 1.1 Cumulative effect of a change in accounting principle, net of income tax benefit of $0.4 (0.05) --- ---------------- --------------- Net income $ 7.4 1.1 ================ ===============
Notes: (1) EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is the sum of Net Income (Loss), Net Other Expense, Taxes, and Depreciation, Amortization and Accretion. EBITDA is not presented as an alternative measure of Net Income (Loss), Operating income or cash flow from operations, as determined in accordance with Generally Accepted Accounting Principals (GAAP.) GCI's management uses EBITDA to evaluate the operating performance of its business, and as a measure of performance for incentive compensation purposes. GCI believes EBITDA is a measure used as an analytical indicator of income generated to service debt and fund capital expenditures. In addition, multiples of current or projected EBITDA are used to estimate current or prospective enterprise value. EBITDA does not give effect to cash used for debt service requirements, and thus does not reflect funds available for investment or other discretionary uses. EBITDA as presented herein may not be comparable to similarly titled measures reported by other companies. -----END PRIVACY-ENHANCED MESSAGE-----