exhibi99-1.htm

Exhibit 99.1

November 4, 2010

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 REPORTS THIRD QUARTER 2010 FINANCIAL RESULTS

·	Consolidated revenue of $171.5 million

·	Adjusted EBITDA of $62.7 million

·	Net income of $7.6 million or $0.14 per diluted share

·	Increase in stock repurchase program and repurchase of common stock

ANCHORAGE, AK – General Communication, Inc. (“GCI”) (NASDAQ:GNCMA) today reported its third quarter 2010 results with revenues increasing to $171.5 million and adjusted EBITDA increasing to a record $62.7 million. After the close of the third quarter, GCI repurchased approximately 7.5 million GCI shares held by Arctic Slope Regional Corporation (“ASRC”).

Revenues for the third quarter increased 13.7 percent over revenues of $150.8 million in the third quarter of 2009 and adjusted EBITDA increased $12.4 million or 24.8 percent over the third quarter 2009 EBITDA of $50.3 million. EBITDA margin for the third quarter of 2010 improved to 36.6 percent as compared to 33.3 percent in the prior year.

Net income for the third quarter of 2010 totaled $7.6 million or earnings per diluted share of $0.14 and compares to net income of $4.3 million, or earnings per diluted share of $0.08 for the same period of 2009.

“Four years ago, GCI undertook a major investment program to take advantage of substantial growth opportunities in the Alaska market, particularly mobile wireless service. GCI’s financial results for the third quarter as well as for the year-to-date confirm that our decision to reinvest in the state was the right thing to do,” said GCI president Ron Duncan. “Fueled by that investment program, all of GCI’s business lines are performing very well, and we are on our way to another year of record high revenues and adjusted EBITDA.”

“GCI’s strong financial performance, particularly our growing free cash flow, and strengthening customer metrics gave us confidence to pursue the repurchase of the GCI shares held by ASRC last month. The transaction is a win for both companies. ASRC has met its return objectives on its GCI investment over the past 2½ years, and GCI has reduced its total shares outstanding by 13.6 percent.”

GCI’s third quarter 2010 EBITDA was favorably affected by $3.8 million of refunds received as a result of settling billing disputes with several vendors that reduced cost of goods sold for the quarter. The increases in contribution margin resulting from the vendor refunds were offset in part by $1.9 million in accrued airplane accident expenses.

GCI’s third quarter 2010 revenues increased $9.2 million or 5.7 percent over total revenues of $162.3 million in the second quarter of 2010. Adjusted EBITDA increased $5.4 million or 9.4 percent over adjusted EBITDA of $57.4 million in the second quarter of 2010 in spite of the fact that the second quarter of 2010 included a $3.0 million net revenue adjustment mostly attributable to a change in USF estimates.

“GCI originally guided to revenues of $610 million to $620 million and adjusted EBITDA of $200 to $204 million for the year 2010.” said Duncan. “The company's practice is to provide guidance only on an annual basis. Continued success in consumer, improvements in commercial, and stabilizing trends in network access, however, lead us to conclude that GCI will exceed its revenue and adjusted EBITDA guidance for the year.”

Highlights

In October of 2010, GCI repurchased 7,486,240 shares of its Class A common stock for $10.16 per share in a privately negotiated transaction with ASRC. The purchase price of approximately $76 million was funded by available cash and a $30 million temporary draw on the company’s revolving facility. The $30 million revolver loan is expected to be repaid before year end.

·	GCI is the second largest wireless provider in Alaska with 136,500 wireless subscribers at the end of the third quarter of 2010, an increase of 5,300 wireless subscribers from the end of the second quarter of 2010.

·	Consumer revenues for the third quarter of 2010 totaled $88.7 million, a 18.3 percent increase over the third quarter of 2009 and an increase of 6.8 percent over the second quarter of 2010, excluding $4.1 million in USF estimate changes in the second quarter of 2010.

·	GCI had 144,700 access lines at the end of the third quarter of 2010, representing an estimated 36 percent share of the total access line market in Alaska. Access lines increased by 1,700 lines over the third quarter of 2009 and decreased by 700 lines from the second quarter of 2010.

·	GCI’s facilities-based access lines totaled 109,500, representing 76 percent of its total access lines at the end of the third quarter of 2010, a decrease of 200 lines from the second quarter of 2010 and an increase of 5,100 lines when compared to the end of the third quarter of the prior year.

GCI had 115,200 consumer and commercial cable modem customers at the end of the third quarter of 2010, an increase of 900 over the 114,300 cable modem customers at the end of the second quarter 2010. Average monthly revenue per cable modem for the third quarter of 2010 was $50.61, an increase of 16.6 percent over the $43.42 figure posted in the third quarter of 2009 and an increase of 8.4 percent over the $46.69 figure posted for the second quarter of 2010.

In October of 2010, GCI’s Board of Directors amended GCI’s stock repurchase program to authorize the company to repurchase up to $100 million worth of its outstanding shares. The ASRC transaction reduces the amount available under the program by approximately $76 million. Depending on company performance, market conditions, liquidity, and subject to board oversight GCI may continue repurchasing its own shares.

Consumer

Consumer revenues increased 18.3 percent to $88.7 million as compared to $75.0 million in the third quarter of 2009 and increased 1.8 percent over $87.1 million in the second quarter of 2010. Revenue increases were strong for all consumer products and services. Consumer revenues were favorably impacted by a $4.1 million USF estimate change in the second quarter of 2010.

Consumer voice revenues of $14.6 million increased 16.9 percent when compared to the third quarter a year ago and decreased 4.3 percent from the second quarter of 2010. Consumer voice revenues in the

third quarter of 2010 were favorably impacted by an increase in customers and USF support when compared to the prior year. Consumer voice revenues would have increased 3.9 percent over the second quarter of 2010, excluding a $1.2 million USF revenue adjustment in the second quarter of 2010. Consumer local access lines in service at the end of third quarter of 2010 totaled 84,700, an increase of 2,000 lines over the third quarter of 2009. Total access lines decreased by 400 lines sequentially.

GCI serves 77,100 consumer access lines on its own facilities, an increase of 4,400 lines over the third quarter of 2009. More than 91 percent of consumer access lines are provisioned exclusively on GCI facilities.

Consumer video revenues of $29.7 million increased 7.6 percent over the prior year and increased 1.3 percent over the second quarter of 2010. The increases are due in part to increases in video subscribers purchasing higher tiered services and renting high definition/digital video recorder converters. Consumer video subscribers totaled 130,500 at the end of the third quarter of 2010, an increase of 900 subscribers over the third quarter of 2009 and a decrease of 700 subscribers from the second quarter of 2010.

Consumer data revenues of $15.8 million increased 24.1 percent over the prior year and 8.1 percent over the second quarter of 2010. The increase in consumer data revenues is due to an increase in cable modem customers and increasing average monthly revenue per cable modem. GCI added 6,500 consumer cable modem customers over the prior year and cable modem customer counts increased by 900 on a sequential basis.

Consumer wireless revenues increased to $28.6 million, an increase of 28.8 percent over the third quarter of 2009 driven by an increase in wireless subscribers. Since the end of the third quarter a year ago, consumer has added 13,000 wireless customers, an increase of 11.8 percent. Consumer wireless revenues increased 2.4 percent over the second quarter of 2010. Consumer wireless revenues would have increased 14.2 percent over the second quarter of 2010, excluding a $2.9 million USF revenue adjustment in the second quarter of 2010. Consumer added 3,900 wireless customers as compared to the end of the second quarter of 2010.

Network Access

Network access revenues decreased 6.8 percent to $28.2 million as compared to $30.3 million in the third quarter of 2009 and increased 4.0 percent over the second quarter of 2010.

Voice revenues, as expected, decreased 29.2 percent from the prior year and increased 20.3 percent over the second quarter of 2010. The decrease in voice revenues from the prior year is primarily due to decreasing average revenue per minute and the transition of voice traffic to dedicated networks. The declining revenue per minute is largely due to the renegotiation of long-term contracts with GCI’s largest carrier customers during 2009. The sequential increase in voice revenues is primarily attributable to a $1.1 million reclassification of certain revenues from the data revenue category.

Data revenues were down 4.5 percent compared to the third quarter of 2009 and decreased 10.2 percent from the second quarter of 2010. The decrease in data revenues is primarily due to the aforementioned $1.1 million reclassification and, in part, due to lower rates resulting from increased competition. The lower rates were partially offset by increases in data network capacity purchased by common carrier customers.

Wireless revenues, primarily related to roaming traffic, increased $2.2 million over the prior year and increased $1.2 million sequentially.

Commercial

Commercial revenues for the third quarter increased $7.7 million, an increase of 27.6 percent, to $35.4 million as compared to $27.8 million in the third quarter of 2009 and increased $3.4 million over $32.1 million in the second quarter of 2010. The increase in revenues is primarily due to an increase in special project work. Commercial revenues were favorably impacted by a $0.6 million USF estimate change during the second quarter of 2010.

Voice revenues increased 4.4 percent over the prior year and decreased 5.0 percent sequentially. Voice revenues were steady on a sequential basis excluding $0.4 million of the total $0.6 million USF estimate change in the second quarter of 2010. Long distance minutes decreased 2.6 percent from the prior year and increased 1.4 percent over the second quarter of 2010. Commercial local access lines increased by 800 over the third quarter of 2009 and increased 100 lines sequentially.

Commercial video revenues increased $0.6 million over the prior year and $0.3 million sequentially.

Commercial data services revenues include both transmission charges for data circuits and time and materials charges for GCI on-site support of customer operations. Data transport charges of $9.2 million increased by $0.6 million as compared to the third quarter of 2009 and time and material charges for support activities increased by $5.8 million to $13.0 million for the third quarter of 2010 as a result of increased activity primarily in the state’s oil sector. Commercial data service revenues were $22.2 million in the third quarter of 2010, up $6.4 million over the third quarter of 2009 and $3.4 million over the second quarter of 2010.

Commercial wireless revenues totaled $2.3 million for the third quarter, an increase of 14.7 percent over the prior year and an increase of 5.0 percent sequentially. Wireless revenue increased sequentially 15.7 percent excluding the USF adjustment in the second quarter of 2010. GCI had 13,600 Commercial wireless subscribers at the end of the third quarter, an increase of 1,400 subscribers over the second quarter of 2010.

Managed Broadband

Managed broadband revenues totaled $13.5 million in the third quarter of 2010, an increase of 15.7 percent over $11.7 million in the third quarter of 2009 and a 30.4 percent increase sequentially, including the $1.7 million reserve adjustment reported in the second quarter of 2010.

Regulated Operations

Regulated operations revenues totaled $5.6 million in the third quarter of 2010 as compared to $6.0 million in the third quarter of 2009. Regulated operations revenues for the third quarter of 2010 were steady with the second quarter of 2010. Regulated operations had 10,200 local access lines at the end of the third quarter of 2010, a decrease of 400 access lines from the second quarter of 2010.

Other Items

GCI’s third quarter 2010 capital expenditures totaled $24.7 million as compared to $31.5 million in the third quarter of 2009 and $27.1 million in the second quarter of 2010.

GCI will hold a conference call to discuss the quarter’s results on Thursday, November 4, 2010 beginning at 2 p.m. (Eastern). To access the briefing on November 4, call the conference operator between 1:50-2:00 p.m. (Eastern Time) at 888-324-6913 (International callers should dial 1-212-287-1671) 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. A replay of the call will be available for 72-hours by dialing 800-262-4859, access code 7461 (International callers should dial 203-369-3220.)

GCI is the largest telecommunications company in Alaska. GCI’s cable plant, which provides voice, video, and broadband data services, passes 90 percent of Alaska households. GCI operates Alaska’s most extensive terrestrial / subsea fiber optic network which connects not only Anchorage but also Fairbanks and Juneau / Southeast Alaska to the lower 48 states with a diversely routed, protected fiber network. GCI’s satellite network provides communications services to small towns and communities throughout rural Alaska. GCI’s newly constructed statewide mobile wireless network seamlessly links urban and rural Alaska for the first time in the state’s history.

A pioneer in bundled services, GCI is the top provider of voice, data, and video services to Alaska consumers with a 70 percent share of the consumer broadband market. GCI is also the leading provider of communications services to enterprise customers, particularly large enterprise customers with complex data networking needs. More information about GCI can be found at www.gci.com.

The foregoing contains forward-looking statements regarding GCI’s expected results that 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.

# # #

GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)


(Amounts in thousands)
	September 30,		December 31,
Assets	2010		2009

Current assets:
Cash and cash equivalents	$	79,000		48,776

Receivables		171,994		147,859
Less allowance for doubtful receivables		9,913		7,060
Net receivables		162,081		140,799

Deferred income taxes		17,522		17,618
Prepaid expenses		6,054		4,491
Inventories		7,922		9,278
Other current assets		5,282		5,872
Total current assets		277,861		226,834

Property and equipment in service, net of depreciation		788,648		823,080
Construction in progress		40,692		26,161
Net property and equipment		829,340		849,241

Cable certificates		191,635		191,565
Goodwill		73,452		73,452
Wireless licenses		25,967		25,967
Other intangible assets, net of amortization		17,494		19,561
Deferred loan and senior notes costs, net of amortization		14,159		13,168
Other assets		16,542		18,609
Total other assets		339,249		342,322
Total assets	$	1,446,450		1,418,397

			(Continued)

GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Continued)


(Amounts in thousands)
	September 30,			December 31,
Liabilities and Stockholders' Equity		2010			2009

Current liabilities:
Current maturities of obligations under long-term debt and capital leases	$	10,379			9,892
Accounts payable		35,068			30,697
Deferred revenue		22,461			21,404
Accrued payroll and payroll related obligations		22,140			21,874
Accrued interest		16,914			14,821
Accrued liabilities		12,522			15,037
Subscriber deposits		1,205			1,549
Total current liabilities		120,689			115,274

Long-term debt, net		773,830			771,247
Obligations under capital leases, excluding current maturities		85,461			89,279
Obligation under capital lease due to related party		1,883			1,876
Deferred income taxes		110,550			100,386
Long-term deferred revenue		50,410			52,342
Other liabilities		23,269			21,676
Total liabilities		1,166,092			1,152,080


Commitments and contingencies
Stockholders’ equity:
Common stock (no par):
Class A. Authorized 100,000 shares; issued 52,022 and 51,899 shares at September 30, 2010 and December 31, 2009, respectively; outstanding 51,525 and 51,627 shares at September 30, 2010 and December 31, 2009, respectively		149,550			150,911
Class B. Authorized 10,000 shares; issued and outstanding 3,181 and 3,186 shares at September 30, 2010 and December 31, 2009, respectively; convertible on a share-per-share basis into Class A common stock		2,680			2,684
Less cost of 496 and 272 Class A common shares held in treasury at September 30, 2010 and December 31, 2009, respectively		(2,354	)		(2,339	)
Paid-in capital		35,950			30,410
Retained earnings		94,532			84,651
Total stockholders' equity		280,358			266,317

Total liabilities and stockholders' equity	$	1,446,450			1,418,397

GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENT
(Unaudited)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(Amounts in thousands, except per share amounts)	2010			2009			2010			2009
Revenues	$	171,509			150,816			486,254			448,301
Cost of goods sold (exclusive of depreciation and amortization shown separately below)		52,486			50,167			153,147			145,372
Selling, general and administrative expenses		58,532			49,045			166,493			157,350
Depreciation and amortization expense		30,288			30,874			92,234			92,778
Operating income		30,203			20,730			74,380			52,801
Other income (expense):
Interest expense (including amortization of deferred loan fees)		(17,760	)		(13,176	)		(53,169	)		(39,096	)
Interest income		99			49			236			68
Other expense, net		(17,661	)		(13,127	)		(52,933	)		(39,028	)
Income before income tax expense		12,542			7,603			21,447			13,773
Income tax expense		4,959			3,267			10,260			6,519
Net income	$	7,583			4,336			11,187			7,254
Basic net income per Class A common share	$	0.14			0.08			0.20			0.14
Basic net income per Class B common share	$	0.14			0.08			0.20			0.14
Diluted net income per Class A common share	$	0.14			0.08			0.20			0.13
Diluted net income per Class B common share	$	0.14			0.08			0.20			0.13

Common shares used to calculate Class A basic EPS		51,496			50,125			51,521			49,705

Common shares used to calculate Class A diluted EPS		54,940			53,828			54,808			53,457

GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
SUPPLEMENTAL SCHEDULES
(Unaudited)
(Amounts in thousands)
	Third Quarter 2010																	Third Quarter 2009
				Network						Managed			Regulated								Network						Managed			Regulated
	Consumer			Access			Commercial			Broadband			Operations		Totals			Consumer			Access			Commercial			Broadband			Operations		Totals
Revenues
Voice	$	14,601			8,636			8,025			-			5,595		36,857		$	12,487			12,197			7,688			-			6,037		38,409
Video		29,720			-			2,953			-			-		32,673			27,612			-			2,320			-			-		29,932
Data		15,797			14,208			22,211			13,548			-		65,764			12,726			14,876			15,801			11,715			-		55,118
Wireless		28,595			5,360			2,260			-			-		36,215			22,196			3,190			1,971			-			-		27,357
Total		88,713			28,204			35,449			13,548			5,595		171,509			75,021			30,263			27,780			11,715			6,037		150,816

Cost of goods sold		25,374			5,547			16,731			3,545			1,289		52,486			24,686			7,536			13,310			2,893			1,742		50,167

Contribution		63,339			22,657			18,718			10,003			4,306		119,023			50,335			22,727			14,470			8,822			4,295		100,649

Less SG&A		33,248			8,178			9,955			4,392			2,759		58,532			26,547			8,255			8,090			3,157			2,996		49,045
EBITDA		30,091			14,479			8,763			5,611			1,547		60,491			23,788			14,472			6,380			5,665			1,299		51,604

Add share-based compensation		1,121			549			362			215			3		2,250			(554	)		(388	)		(226	)		(164	)		-		(1,332	)
Adjusted EBITDA	$	31,212			15,028			9,125			5,826			1,550		62,741		$	23,234			14,084			6,154			5,501			1,299		50,272


GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
SUPPLEMENTAL SCHEDULES
(Unaudited)
(Amounts in thousands)
	Third Quarter 2010																	Second Quarter 2010
				Network						Managed			Regulated								Network						Managed			Regulated
	Consumer			Access			Commercial			Broadband			Operations		Totals			Consumer			Access			Commercial			Broadband			Operations		Totals
Revenues
Voice	$	14,601			8,636			8,025			-			5,595		36,857		$	15,254			7,176			8,448			-			5,607		36,485
Video		29,720			-			2,953			-			-		32,673			29,352			-			2,639			-			-		31,991
Data		15,797			14,208			22,211			13,548			-		65,764			14,608			15,823			18,831			10,387			-		59,649
Wireless		28,595			5,360			2,260			-			-		36,215			27,935			4,113			2,153			-			-		34,201
Total		88,713			28,204			35,449			13,548			5,595		171,509			87,149			27,112			32,071			10,387			5,607		162,326

Cost of goods sold		25,374			5,547			16,731			3,545			1,289		52,486			26,192			6,379			15,097			3,160			926		51,754

Contribution		63,339			22,657			18,718			10,003			4,306		119,023			60,957			20,733			16,974			7,227			4,681		110,572

Less SG&A		33,248			8,178			9,955			4,392			2,759		58,532			30,445			7,897			9,179			4,219			2,964		54,704
EBITDA		30,091			14,479			8,763			5,611			1,547		60,491			30,512			12,836			7,795			3,008			1,717		55,868

Add share-based compensation		1,121			549			362			215			3		2,250			825			390			273			155			-		1,643
Add non-cash contribution adjustment		-			-			-			-			-		-			(82	)		(39	)		(24	)		(15	)		-		(160	)
Adjusted EBITDA	$	31,212			15,028			9,125			5,826			1,550		62,741		$	31,255			13,187			8,044			3,148			1,717		57,351

GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
SUPPLEMENTAL SCHEDULES
(Unaudited)
(Amounts in thousands)
	Nine Months Ended September 30, 2010																	Nine Months Ended September 30, 2009
				Network						Managed			Regulated								Network						Managed			Regulated
	Consumer			Access			Commercial			Broadband			Operations		Totals			Consumer			Access			Commercial			Broadband			Operations		Totals
Revenues
Voice	$	43,711			22,471			24,316			-			17,262		107,760		$	39,390			39,975			23,373			-			18,574		121,312
Video		88,096			-			7,909			-			-		96,005			82,114			-			6,591			-			-		88,705
Data		44,531			46,360			56,544			36,020			-		183,455			36,654			48,903			47,725			33,323			-		166,605
Wireless		79,892			12,668			6,474			-			-		99,034			60,981			5,704			4,994			-			-		71,679
Total		256,230			81,499			95,243			36,020			17,262		486,254			219,139			94,582			82,683			33,323			18,574		448,301

Cost of goods sold		77,199			18,454			44,199			9,923			3,372		153,147			72,100			20,776			39,642			7,939			4,915		145,372

Contribution		179,031			63,045			51,044			26,097			13,890		333,107			147,039			73,806			43,041			25,384			13,659		302,929

Less SG&A		92,858			23,919			28,279			12,654			8,783		166,493			83,772			27,900			26,413			10,760			8,505		157,350
EBITDA		86,173			39,126			22,765			13,443			5,107		166,614			63,267			45,906			16,628			14,624			5,154		145,579

Add share-based compensation		2,329			1,119			785			460			3		4,696			817			617			346			117			-		1,897
Add non-cash contribution adjustment		(82	)		(39	)		(24	)		(15	)		-		(160	)		220			151			73			36			-		480
Adjusted EBITDA	$	88,420			40,206			23,526			13,888			5,110		171,150		$	64,304			46,674			17,047			14,777			5,154		147,956

GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
KEY PERFORMANCE INDICATORS
(Unaudited)

							September 30, 2010						September 30, 2010
							as compared to						as compared to
	September 30,		September 30,		June 30,		September 30,			June 30,			September 30,			June 30,
	2010		2009		2010		2009			2010			2009			2010
Consumer
Voice
Long-distance subscribers		89,000		89,900		90,200		(900	)		(1,200	)		-1.0	%		-1.3	%
Total local access lines in service		84,700		82,700		85,100		2,000			(400	)		2.4	%		-0.5	%
Local access lines in service on GCI facilities		77,100		72,700		77,100		4,400			-			6.1	%		0.0	%

Video
Basic subscribers		130,500		129,600		131,200		900			(700	)		0.7	%		-0.5	%
Digital programming tier subscribers		80,600		77,600		80,600		3,000			-			3.9	%		0.0	%
HD/DVR converter boxes		87,500		77,000		86,500		10,500			1,000			13.6	%		1.2	%
Homes passed		234,900		231,400		234,700		3,500			200			1.5	%		0.1	%

Data
Cable modem subscribers		104,400		97,900		103,500		6,500			900			6.6	%		0.9	%

Wireless
Wireless lines in service		122,900		109,900		119,000		13,000			3,900			11.8	%		3.3	%

Network Access Services
Data:
Total ISP access lines in service		1,700		1,700		1,700		-			-			0.0	%		0.0	%
Total ISP access lines in service on GCI facilities		1,300		1,400		1,400		(100	)		(100	)		-7.1	%		-7.1	%

Commercial
Voice:
Long-distance subscribers		9,300		9,700		9,400		(400	)		(100	)		-4.1	%		-1.1	%
Total local access lines in service		48,100		47,300		48,000		800			100			1.7	%		0.2	%
Local access lines in service on GCI facilities		20,900		19,000		20,600		1,900			300			10.0	%		1.5	%

Video
Hotels and mini-headend subscribers		16,000		18,000		18,500		(2,000	)		(2,500	)		-11.1	%		-13.5	%
Basic subscribers		1,800		1,700		1,800		100			-			5.9	%		0.0	%
Total basic subscribers		17,800		19,700		20,300		(1,900	)		(2,500	)		-9.6	%		-12.3	%

Data
Cable modem subscribers		10,800		10,600		10,800		200			-			1.9	%		0.0	%

Wireless
Wireless lines in service		13,600		10,100		12,200		3,500			1,400			34.7	%		11.5	%

Regulated Operations
Voice:
Total local access lines in service		10,200		11,300		10,600		(1,100	)		(400	)		-9.7	%		-3.8	%

							September 30, 2010						September 30, 2010
	Three Months Ended						as Compared to						as Compared to
	September 30,		September 30,		June 30,		September 30,			June 30,			September 30,			June 30,
		2010		2009		2010		2009			2010			2009			2010
Consumer
Voice
Long-distance minutes carried (in millions)		25.6		28.0		26.7		(2.4	)		(1.1	)		-8.6	%		-4.1	%

Video
Average monthly gross revenue per subscriber	$	75.85	$	70.95	$	74.54	$	4.90		$	1.31			6.9	%		1.8	%

Wireless
Average monthly gross revenue per subscriber	$	74.61	$	64.17	$	75.07	$	10.44		$	(0.46	)		16.3	%		-0.6	%

Network Access Services
Voice
Long-distance minutes carried (in millions)		205.4		224.6		201.3		(19.2	)		4.1			-8.5	%		2.0	%

Commercial
Voice:
Long-distance minutes carried (in millions)		29.8		30.6		29.4		(0.8	)		0.4			-2.6	%		1.4	%

Total
Long-distance minutes carried (in millions)		260.8		283.2		257.4		(22.4	)		3.4			-7.9	%		1.3	%

General Communication, Inc.

Non-GAAP Financial Reconciliation Schedule

(Unaudited, Amounts in Millions)

	Three Months Ended
	September 30, 2010			September 30, 2009			June 30, 2010
Net income	$	7.6			4.3			1.9
Income tax expense		4.9			3.3			5.5
Income before income tax expense		12.5			7.6			7.4

Other (income) expense:
Interest expense (including amortization of deferred loan fees)		17.8			13.2			17.8
Interest income		(0.1	)		(0.1	)		(0.1	)
Other expense, net		17.7			13.1			17.7

Operating income		30.2			20.7			25.1
Depreciation and amortization expense		30.3			30.9			30.8

EBITDA (Note 2)		60.5			51.6			55.9
Share-based compensation		2.2			(1.3	)		1.6
Non-cash contribution adjustment		---			---			(0.1	)
Adjusted EBITDA (Note 1)	$	62.7			50.3			57.4

General Communication, Inc.

Non-GAAP Financial Reconciliation Schedule

(Unaudited, Amounts in Millions)


	Nine Months Ended
	September 30, 2010			September 30, 2009
Net income	$	11.2			7.3
Income tax expense		10.2			6.5
Income before income tax expense		21.4			13.8

Other (income) expense:
Interest expense (including amortization of deferred loan fees)		53.2			39.0
Interest income		(0.2	)		(0.1	)
Other expense, net		53.0			38.9

Operating income		74.4			52.7
Depreciation and amortization expense		92.2			92.9

EBITDA (Note 2)		166.6			145.6
Share-based compensation		4.7			1.9
Non-cash contribution adjustment		(0.1	)		0.5
Adjusted EBITDA (Note 1)	$	171.2			148.0

Notes:

(1) EBITDA (as defined in Note 2 below) before deducting share-based compensation and non-cash contribution adjustment.

(2) Earnings Before Interest, Taxes, Depreciation and Amortization is the sum of Net Income, Interest Expense (including Amortization of Deferred Loan Fees), Interest Income, Income Tax Expense, and Depreciation and Amortization Expense. EBITDA is not presented as an alternative measure of net income, operating income or cash flow from operations, as determined in accordance with accounting principles generally accepted in the United States of America. 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.