GCI, INC. (NYSE:GCI) Files An 8-K Results of Operations and Financial Condition

On March 1, 2017, GCI, Inc.’s parent company, General
Communication, Inc. (“GCI”) issued a press release announcing
earnings for the three months and year ended December 31, 2016. A
copy of the press release is attached as Exhibit 99.1.

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 Adjusted EBITDA (defined as earnings
plus imputed interest on financed devices before net interest
expense, income taxes, depreciation and amortization expense, loss
on extinguishment of debt, software impairment charge, derivative
instrument unrealized income (loss), share-based compensation
expense, accretion expense, loss attributable to non-controlling
interest resulting from NMTC transactions, gains and impairment
losses on equity and cost method investments, gain recorded for
adjusting to fair value assets that were included as consideration
paid to acquire a fiber system, and other non-cash adjustments) for
the three months and years ended December 31, 2016 and 2015, and
the three months ended September 30, 2016. Adjusted EBITDA has been
reconciled to the closely related GAAP financial measure, net
income (loss), within the earnings release.>

Adjusted 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
Adjusted EBITDA to evaluate the operating performance of its
business, and as a measure of performance for incentive
compensation purposes. GCI believes Adjusted EBITDA is useful to
investors and other users of our financial information in
understanding and evaluating operating performance as an
analytical indicator of income generated to service debt and fund
capital expenditures. In addition, multiples of current or
projected Adjusted EBITDA are used to estimate current or
prospective enterprise value. Adjusted 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. Adjusted EBITDA as presented herein may not be comparable
to similarly titled measures reported by other companies.

Section 9 – Financial Statements and Exhibits