November 13, 2006

 

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

 

ANCHORAGE, AK – General Communication, Inc. (“GCI”) (NASDAQ:GNCMA) today reported that a technical accounting error has come to its attention that will require the correction of previously reported 2005 net income available to common shareholders and net income per share. This correction has no effect on GCI’s operating income, net income, financial position, stockholder’s equity, or cash flows, and only affects 2005 net income available to common shareholders and net income per share amounts. Correction of the error will have no effect on GCI’s overall capital adequacy or its ability to carry out its business development plans. 

 

The effect of the correction on net income available to common shareholders and net income per share in each period follows. 

 

 

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(Amounts in thousands except per share amounts) |   | (Unaudited)ThreemonthsendedJune 30,2005 |   | (Unaudited)Six monthsendedJune 30,2005 |   | (Unaudited)Nine monthsendedSeptember 30,2005 |   | Year endedDecember 31,2005 |   |
|-----------------------------------------------------------------------------------------|--------|-----------------------------------------|--------|----------------------------------------|--------|----------------------------------------------|--------|----------------------------|--------|
| Net income available to common shareholders,as reported                                 | $      |                                    | 5,229  |                                   |   | 9,799                                        |   |                       | 12,084 |   |   | 20,683 |   |
| Adjustment                                                                              |   |                                    | (2,358 | )                                      |   | (2,358                                       | )      |                       | (2,358 | ) |   | (2,358 | ) |
| Net income available to common shareholders,as restated                                 | $      |                                    | 2,871  |                                   |   | 7,441                                        |   |                       | 9,726  |   |   | 18,325 |   |
|                                                                                    |   |                                    |   |                                   |   |                                         |   |                       |   |   |   |   |   |
| Net income per common share:                                                            |   |                                    |   |                                   |   |                                         |   |                       |   |   |   |   |   |
| Basic net income per common share,as reported                                           | $      |                                    | 0.10   |                                   |   | 0.18                                         |   |                       | 0.22   |   |   | 0.38 |   |
| Adjustment                                                                              |   |                                    | (0.05  | )                                      |   | (0.04                                        | )      |                       | (0.04  | ) |   | (0.04 | ) |
| Basic net income per common share, as restated                                          | $      |                                    | 0.05   |                                   |   | 0.14                                         |   |                       | 0.18   |   |   | 0.34 |   |
|                                                                                    |   |                                    |   |                                   |   |                                         |   |                       |   |   |   |   |   |
| Diluted net income per common share, as reported                                        | $      |                                    | 0.09   |                                   |   | 0.18                                         |   |                       | 0.22   |   |   | 0.37 |   |
| Adjustment                                                                              |   |                                    | (0.04  | )                                      |   | (0.05                                        | )      |                       | (0.05  | ) |   | (0.04 | ) |
| Diluted net income per common share, as restated                                        | $      |                                    | 0.05   |                                   |   | 0.13                                         |   |                       | 0.17   |   |   | 0.33 |   |

 

GCI will file an amendment to its Annual Report on Form 10-K for the year ended December 31, 2005 to restate its consolidated financial statements for the year ended December 31, 2005. It will also file an amendment to its Form 10-Q for the quarter ended June 30, 2006 to restate its 2005 quarterly unaudited interim consolidated financial statements. GCI has filed a notification with the SEC to extend the filing deadline for its Form 10-Q for the quarter ended September 30, 2006 by five days and expects to file the Form 10-Q within the five day filing extension period. As a result of the restatements, the independent registered public accounting firm’s review of GCI’s September 30, 2006 Form 10-Q may not be complete by the time it is filed. GCI believes that the unaudited consolidated financial statements contained in such 10-Q filing are a fair presentation of GCI’s financialposition as of September 30, 2006. Upon the completion 

 

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