GENERAL COMMUNICATION INC. REPORTS THIRD-QUARTER 1991 RESULTS
ANCHORAGE, Alaska, Nov. 14 /PRNewswire/ -- General Communication Inc. (GCI) (NASDAQ: GNCMA) today reported a consolidated net loss for the third quarter of 1991 totaling $645,000, or 4 cents per share. This compares with third-quarter 1990 net income of $175,000, or 1 cent per share. Net loss for the nine-month period ended Sept. 30, 1991, totaled $305,000, or 2 cents per share, compared with net income of $749,000 during the same period of 1990, or 5 cents per share.
Year-to-date revenues through Sept. 30, 1991, totaled $54,308,000, a 15-percent increase over 1990 revenues of $47,138,000. Revenues for the third quarter of 1991 totaled $20,404,000, a 28-percent increase over prior year third-quarter revenues of $15,965,000.
Operating income through Sept. 30, 1991, totaled $1,496,000 as compared to 1990 operating income of $2,949,000. The operating loss for the third quarter of 1991 totaled $64,000 as compared to third quarter 1990 operating income of $894,000.
GCI General Manager Wilson Hughes attributed the growth in revenues primarily to the company's provision of intrastate services beginning in May 1991. Additional revenue growth is attributed to the company's provision of operator services using its own facilities and personnel beginning in September 1990, and the company's carriage of traffic for other common carriers including MCI and U.S. Sprint. GCI Network Systems also continues to experience increases in revenue from its service business and private line sales.
The decrease in operating income during the three- and nine-month periods ended Sept. 30, 1991, resulted from a number of factors including the company's marketing campaign associated with its provision of intrastate services; legal and regulatory issues involving future interconnection arrangements with local telephone companies in Alaska; costs associated with the initial operations of the company's Hawaii subsidiary, Pacific Dataport Inc.; increases in distribution costs resulting from access charge increases, a reduction in circuits available under the company's carrier lease agreement with AT&T, and acquisition of capacity on the undersea fiber optic cable connecting Seward, Alaska, and Pacific City, Ore.; and, increases in expenditures for personnel and administration, insurance, data processing, accounting and human resources service and support functions necessary to support the company's continued growth. Certain of the costs incurred during the third quarter of 1991 are not expected to be recurring.
GCI, an Alaska-owned and operated long distance telephone carrier, has more than 80,000 customers throughout Alaska.
/CONTACT: John Lowber or Wilson Hughes of General Communication Inc., 907-265-5600/
(GNCMA) CO: General Communication Inc. ST: Alaska IN: TLS SU: ERN LM-JH -- SE008 -- 1210 11/14/91 16:59 EST