Exhibit 99.1

 

March 15, 2007

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 2006 FINANCIAL RESULTS**

 

|   | **•** | Net income of $18.4 million or $0.33 per diluted share |
|--------|------------|--------------------------------------------------------|

|   | **•** | Consolidated revenues of $477.3 million |
|--------|------------|-----------------------------------------|

|   | **•** | EBITDAS of $156.0 million |
|--------|------------|---------------------------|

 

**ANCHORAGE, AK** -- GCI (NASDAQ:GNCMA) today reported its 2006 results with net income of $18.4 million, or diluted earnings per share of $0.33. The company’s 2006 net income compares to income of $20.8 million, or diluted earnings per share of $0.33, in 2005. GCI recorded net income of $2.9 million or $0.05 per share on a diluted basis in the fourth quarter of 2006 that compares to net income of $8.6 million or $0.15 per share on a diluted basis for the fourth quarter of 2005. 

 

GCI’s revenues for 2006 increased 7.7 percent to $477.3 million over 2005 revenues of $443.0 million. For the fourth quarter of 2006, revenues totaled $121.1 million as compared to $112.1 million in the fourth quarter of 2005, an increase of 8.1 percent. Revenues, as expected, were down 3.2 percent sequentially when compared to third quarter 2006 revenues of $125.1 million.

 

Earnings before interest, taxes, depreciation, amortization and share based compensation expense (EBITDAS) for 2006 totaled $156.0 million. EBITDA for 2005 totaled $150.8, as adjusted to exclude $2.8 million in expenses from the early extinguishment of debt. EBITDAS for 2006 increased $5.2 million or 3.5 percent over 2005. EBITDA for 2005 included MCI bad debt recoveries of $3.3 million and a $7.5 million net benefit from a claims settlement. There were negligible MCI bad debt recoveries recorded in 2006.

 

Fourth quarter 2006 EBITDAS totaled $36.9 million and compares to $41.7 million, as adjusted, for the fourth quarter of 2005. The decrease in EBITDAS is primarily attributable to the $7.5 million claims settlement as noted above which occurred in the fourth quarter of 2005. 

 

Sequentially, fourth quarter 2006 EBITDAS of $36.9 million decreased $4.5 million from the third quarter 2006 EBITDAS of $41.4 million. The decrease in sequential EBITDAS was due in part to the seasonal decrease in revenues and certain infrequently occurring items that reduced EBITDAS by $1.5 million during the fourth quarter. These items included a workers compensation claim and fiber repair costs. Third quarter 2006 EBITDAS, as previously reported, was reduced by $1.8 million in immaterial errors of which $1.2 million increased EBITDAS for the second quarter of 2006. 

 

GCI anticipates revenues of $492 million to $502 million and EBITDAS of $164 million to $166 million for the year 2007. First quarter revenues are expected to total $119 million to $121 million and EBITDAS is expected to exceed $37 million. GCI’s guidance is exclusive of Alaska DigiTel, LLC results pending completion of our consolidation analysis.

 

"This year completes our first decade of uninterrupted revenue and EBITDAS growth,” said Ron Duncan, GCI president. "Our business is strong and we are consistently 

 

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