UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 6, 2013
DISH NETWORK CORPORATION
(Exact name of registrant as specified in its charter)
NEVADA |
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0-26176 |
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88-0336997 |
(State or other jurisdiction |
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(Commission File Number) |
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(IRS Employer |
9601 SOUTH MERIDIAN BLVD. |
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ENGLEWOOD, COLORADO |
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80112 |
(Address of principal executive offices) |
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(Zip Code) |
(303) 723-1000
(Registrants telephone number, including area code)
DISH DBS CORPORATION
(Exact name of registrant as specified in its charter)
COLORADO |
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333-31929 |
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84-1328967 |
(State or other jurisdiction of |
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(Commission File Number) |
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(IRS Employer |
9601 SOUTH MERIDIAN BLVD. |
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80112 |
(Address of principal executive offices) |
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(Zip Code) |
(303) 723-1000
(Registrants telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02. Results of Operations and Financial Condition.
On August 6, 2013, DISH Network Corporation issued a press release reporting financial results for the quarter ended June 30, 2013. A copy of the press release is attached hereto as Exhibit 99.1 and incorporated herein by reference. DISH Network Corporations quarterly investor summary for the quarter ended June 30, 2013 is attached hereto as Exhibit 99.2 and incorporated herein by reference.
The information contained in this Current Report on Form 8-K, including Exhibits 99.1 and 99.2, is being furnished and shall not be deemed filed with the Securities and Exchange Commission or otherwise incorporated by reference into any registration statement or other document filed pursuant to the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
Exhibit 99.1 |
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Press Release DISH Network Reports Second Quarter 2013 Financial Results dated August 6, 2013. |
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Exhibit 99.2 |
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Quarterly Investor Summary for the quarter ended June 30, 2013. |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned hereunto duly authorized.
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DISH NETWORK CORPORATION | |
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Date: August 6, 2013 |
By: |
/s/ R. Stanton Dodge |
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R. Stanton Dodge |
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Executive Vice President, General Counsel and Secretary |
Exhibit 99.1
DISH Network Reports Second Quarter 2013 Financial Results
· YOY subscriber-related revenue improves 5 percent
· Net loss driven by $438 million of impairment charges on satellites acquired through TerreStar, DBSD transactions
· Pay-TV ARPU increases more than 4 percent YOY
· Broadband subscriber base grows 24 percent sequentially
ENGLEWOOD, Colo., August 6, 2013 DISH Network Corporation (NASDAQ: DISH) today reported revenue totaling $3.61 billion for the quarter ending June 30, 2013, compared to $3.57 billion for the corresponding period in 2012. Subscriber-related revenue increased 4.9 percent to $3.46 billion from $3.30 billion in the year-ago period.
Net loss attributable to DISH Network totaled $(11) million for the quarter ending June 30, 2013, compared to $226 million in net income earned in the year-ago quarter. Diluted loss per share was $(0.02), compared with earnings per share of $0.50 during the same period in 2012. Net income attributable to DISH Network in the quarter was impacted by the $438 million impairment of two of the three satellites acquired through the TerreStar and DBSD transactions.
We are pleased to see continued growth in Hopper® receiver take rates, as well as growth in broadband-connected subscribers, said Joseph P. Clayton, DISH president and CEO. This performance reflects efforts like our DISH Anywhere mobile app and our iPad 2 promotion with Apple, and will set the stage for long-range revenue performance.
Pay-TV ARPU for the second quarter totaled $80.90 compared to the year-ago periods pay-TV ARPU of $77.59. Pay-TV subscriber churn rate increased to 1.67 percent versus 1.60 percent for second quarter 2012, impacted by DISHs first programming package price increase in two years.
DISH added approximately 624,000 gross new pay-TV subscribers compared to approximately 665,000 gross new pay-TV subscribers in the prior years second quarter. Total subscribers declined approximately 78,000 in the second quarter. The company ended the second quarter with 14.014 million pay-TV subscribers compared to 14.061 million pay-TV subscribers at the end of second quarter 2012.
DISH added approximately 61,000 net broadband subscribers in the second quarter, bringing its broadband subscriber base to approximately 310,000, a 24 percent increase sequentially. DISH added approximately 11,000 net broadband subscribers in the second quarter of 2012.
Year-to-Date Review
DISH Networks first half revenues of $7.16 billion increased 0.1 percent over $7.15 billion in revenue from the same period last year. In the first six months of 2013, net income attributable to DISH Network totaled $205 million compared with $586 million during the same period last year. Diluted earnings per share were $0.45 for the first six months of 2013, compared with $1.30 during the same period in 2012.
Detailed financial data and other information are available in DISH Networks Form 10-Q for the quarter ended June 30, 2013, filed today with the Securities and Exchange Commission.
DISH Network will host its second quarter 2013 financial results conference call today at noon ET. The dial-in numbers are (800) 616-6729 (U.S.) and (763) 488-9145, conference ID number 18183282.
About DISH
DISH Network Corporation (NASDAQ: DISH), through its subsidiary DISH Network L.L.C., provides approximately 14.014 million satellite TV customers, as of June 30, 2013, with the highest quality programming and technology with the most choices at the best value, including HD Free for Life®. Subscribers enjoy the largest high definition line-up with more than 200 national HD channels, the most international channels, and award-winning HD and DVR technology. DISH Network Corporations subsidiary, Blockbuster L.L.C., delivers family entertainment to millions of customers around the world. DISH Network Corporation is a Fortune 200 company. Visit www.dish.com.
Cautionary Statement Concerning Forward-Looking Statements
Certain statements contained herein may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of DISH Network Corporation to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. More information about such risks, uncertainties and other factors is set forth in DISH Network Corporations Disclosure Regarding Forward-Looking Statements included in its recent filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2012 and its quarterly reports on Form 10-Q for the quarterly periods ended March 31, 2013 and June 30, 2013. The forward-looking statements speak only as of the date made, and DISH Network Corporation expressly disclaims any obligation to update these forward-looking statements.
# # #
Media Contact
Robert Toevs
303-723-2010
bob.toevs@dish.com
@DISHNews
Investor Contact
Jason Kiser
303-723-2210
jason.kiser@dish.com
Exhibit 99.2
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QUARTERLY INVESTOR SUMMARY 2Q13 August 6, 2013 |
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2 DISH QUARTERLY INVESTOR SUMMARY2Q13 DISH NETWORK REPORTS SECOND QUARTER 2013 FINANCIAL RESULTS YOY subscriber-related revenue improves 5 percent Net loss driven by $438 million of impairment charges on satellites acquired through TerreStar, DBSD transactions Pay-TV ARPU increases more than 4 percent YOY Broadband subscriber base grows 24 percent sequentially ENGLEWOOD, Colo., August 6, 2013 DISH Network Corporation (NASDAQ: DISH) today reported revenue totaling $3.61 billion for the quarter ending June 30, 2013, compared to $3.57 billion for the corresponding period in 2012. Subscriber- related revenue increased 4.9 percent to $3.46 billion from $3.30 billion in the year-ago period. Net loss attributable to DISH Network totaled $(11) million for the quarter ending June 30, 2013, compared to $226 million in net income earned in the year-ago quarter. Diluted loss per share was $(0.02), compared with earnings per share of $0.50 during the same period in 2012. Net income attributable to DISH Network in the quarter was impacted by the $438 million impairment of two of the three satellites acquired through the TerreStar and DBSD transactions. We are pleased to see continued growth in Hopper® receiver take rates, as well as growth in Broadband-connected subscribers, said Joseph P. Clayton, DISH president and CEO. This performance reflects efforts like our DISH Anywhere mobile app and our iPad 2 promotion with Apple, and will set the stage for long-range revenue performance. Pay-TV ARPU for the second quarter totaled $80.90 compared to the year-ago periods pay-TV ARPU of $77.59. Pay-TV subscriber churn rate increased to 1.67 percent versus 1.60 percent for second quarter 2012, impacted by DISHs first programming package price increase in two years. DISH added approximately 624,000 gross new pay-TV subscribers compared to approximately 665,000 gross new pay-TV subscribers in the prior years second quarter. Total subscribers declined approximately 78,000 in the second quarter. The company ended the second quarter with 14.014 million pay-TV subscribers compared to 14.061 million pay-TV subscribers at the end of second quarter 2012. DISH added approximately 61,000 net broadband subscribers in the second quarter, bringing its broadband subscriber base to approximately 310,000, a 24 percent increase sequentially. DISH added approximately 11,000 net broadband subscribers in the second quarter of 2012. Year-to-Date Review DISH Networks first half revenues of $7.16 billion increased 0.1 percent over $7.15 billion in revenue from the same period last year. In the first six months of 2013, net income attributable to DISH Network totaled $205 million compared with $586 million during the same period last year. Diluted earnings per share were $0.45 for the first six months of 2013, compared with $1.30 during the same period in 2012. Detailed financial data and other information are available in DISH Networks Form 10-Q for the quarter ended June 30, 2013, filed today with the Securities and Exchange Commission. DISH Network will host its second quarter 2013 financial results conference call today at noon ET. The dial-in numbers are (800) 616-6729 (U.S.) and (763) 488-9145, conference ID number 18183282. About DISH DISH Network Corporation (NASDAQ: DISH), through its subsidiary DISH Network L.L.C., provides approximately 14.014 million satellite TV customers, as of June 30, 2013, with the highest-quality programming and technology with the most choices at the best value, including HD Free for Life®. Subscribers enjoy the largest high-definition lineup with more than 200 national HD channels, the most international channels, and award-winning HD and DVR technology. DISH Network Corporations subsidiary, Blockbuster L.L.C., delivers family entertainment to millions of customers around the world. DISH Network Corporation is a Fortune 200 company. Visit www.dish.com. TABLE OF CONTENTS Pay-TV Metrics3 Broadband Metrics5 Selected Financial Results6 Condensed Consolidated Balance Sheets9 Condensed Consolidated Statements of Operations10 Condensed Consolidated Statements of Cash Flows11 Results of Operations 2Q13 vs. 2Q1212 Cautionary Statement Concerning Forward-Looking Statements13 DISH 2Q13 Financial Results Conference Call Noon ET Today U.S. or Canada 800-616-6729 Internationally 763-488-9145 Conference ID: 18183282 |
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DISH QUARTERLY INVESTOR SUMMARY2Q13 PAY-TV METRICS Pay-TV Net Additions DISH lost approximately 78,000 net Pay-TV subscribers in 2Q13, compared to the loss of approximately 10,000 net Pay-TV subscribers during the same period in 2012. The increase in the number of net Pay-TV subscribers lost versus the same period in 2012 resulted from lower gross new Pay-TV subscriber activations and an increase in our Pay-TV churn rate. (10) (19) 14 36 (78) 2Q12 3Q12 4Q12 1Q13 2Q13 Pay-TV Net Additions In Thousands 665 739 662 654 624 2Q12 3Q12 4Q12 1Q13 2Q13 Pay-TV Gross Additions In Thousands Pay-TV Gross Activations In 2Q13, DISH added approximately 624,000 gross new Pay- TV subscribers compared to the addition of approximately 665,000 gross new Pay-TV subscribers during the same period in 2012, a decrease of 6.2%. Our gross new Pay-TV subscriber activations continue to be negatively impacted by increased competitive pressures, including aggressive marketing and discounted promotional offers. In addition, our gross new Pay- TV subscriber activations continue to be adversely affected by sustained economic weakness and uncertainty. Pay-TV Churn Our Pay-TV churn rate for 2Q13 was 1.67% compared to 1.60% for the same period in 2012. Our Pay-TV churn rate was negatively impacted in part because we had a programming package price increase in the first quarter 2013 and did not during the same period in 2012. Churn continues to be adversely affected by the increased competitive pressures discussed above. Our Pay-TV churn rate is also impacted by, among other things, the credit quality of previously acquired subscribers, our ability to consistently provide outstanding customer service, the aggressiveness of competitor subscriber acquisition efforts, and our ability to control piracy and other forms of fraud. 1.60% 1.80% 1.54% 1.47% 1.67% 2Q12 3Q12 4Q12 1Q13 2Q13 Pay-TV Churn Rate In Percentage 3 |
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DISH QUARTERLY INVESTOR SUMMARY2Q13 PAY-TV METRICSCONTINUED Pay-TV Subscribers DISH ended 2Q13 with 14.014 million Pay-TV subscribers compared to 14.061 million total Pay-TV subscribers at the end of 2Q12. 14,061 14,042 14,056 14,092 14,014 2Q12 3Q12 4Q12 1Q13 2Q13 Pay-TV Subscribers In Thousands Pay-TV ARPU Pay-TV average monthly revenue per subscriber (Pay-TV ARPU) was $80.90 during 2Q13 versus $77.59 during the same period in 2012. The $3.31, or 4.3%, increase in Pay-TV ARPU was primarily attributable to the programming package price increase in February 2013 and higher hardware related revenue, partially offset by a decrease in pay-per-view revenue. $77.59 $76.99 $77.59 $78.54 $80.90 2Q12 3Q12 4Q12 1Q13 2Q13 Pay-TV ARPU Dollars Pay-TV SAC Pay-TV Subscriber Acquisition Cost (Pay-TV SAC) was $882 during 2Q13 compared to $800 during the same period in 2012, an increase of $82 or 10.3%. This increase was primarily attributable to increased advertising and equipment costs. Advertising costs were up $12 per activation reflecting increased brand spending related to the launch of our new Hopper with Sling set-top box in February 2013. Capitalized equipment costs increased $49 per activation, primarily due to an increase in the percentage of new subscriber activations with new Hopper receiver systems. In addition, the Hopper with Sling set-top box cost per unit is currently higher than the original Hopper set-top box. $800 $797 $791 $882 $882 2Q12 3Q12 4Q12 1Q13 2Q13 Pay-TV SAC Dollars 4 |
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DISH QUARTERLY INVESTOR SUMMARY2Q13 BROADBAND METRICS Broadband Net Additions DISH added approximately 61,000 net Broadband subscribers during 2Q13 compared to the addition of approximately 11,000 net Broadband subscribers during the same period in 2012. This increase versus the same period in 2012 primarily resulted from higher gross new Broadband subscriber activations. 11 17 44 66 61 2Q12 3Q12 4Q12 1Q13 2Q13 Broadband Net Additions In Thousands Broadband Gross Activations During 2Q13, DISH added approximately 79,000 gross new Broadband subscribers compared to the addition of approximately 21,000 gross new Broadband subscribers during the same period in 2012. This increase was driven by increased advertising related to the dishNET branded Broadband services. 21 29 57 83 79 2Q12 3Q12 4Q12 1Q13 2Q13 Broadband Gross Activations In Thousands Broadband Subscribers DISH ended 2Q13 with 310,000 Broadband subscribers compared to 122,000 total Broadband subscribers at the end of 2Q12. 122 139 183 249 310 2Q12 3Q12 4Q12 1Q13 2Q13 Broadband Subscribers In Thousands 5 |
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DISH QUARTERLY INVESTOR SUMMARY2Q13 SELECTED FINANCIAL RESULTS Subscriber-Related Revenue Subscriber-related revenue totaled $3.457 billion for 2Q13, an increase of $161 million or 4.9% compared to the same period in 2012. The change in Subscriber-related revenue from the same period in 2012 was primarily related to the increase in Pay-TV ARPU previously discussed. Included in Subscriber- related revenue was $47 million and $22 million of revenue related to our Broadband services for the three months ended June 30, 2013 and 2012, respectively. $3,296 $3,267 $3,298 $3,353 $3,457 2Q12 3Q12 4Q12 1Q13 2Q13 Subscriber--Related Revenue Dollars in Millions Subscriber-Related Expenses Subscriber-related expenses totaled $1.924 billion during 2Q13, an increase of $100 million or 5.5% compared to the same period in 2012. The increase in Subscriber-related expenses was primarily attributable to higher Pay-TV programming and retention costs and higher Broadband Subscriber-related expenses due to the increase in our Broadband Subscriber base. The increase in programming costs was driven by rate increases in certain of our programming contracts, including the renewal of certain contracts at higher rates. Included in Subscriber-related expenses was $33 million and $11 million of expense related to our Broadband services for 2Q13 and 2Q12, respectively. $1,824 $1,808 $1,861 $1,912 $1,924 2Q12 3Q12 4Q12 1Q13 2Q13 Subscriber--Related Expenses Dollars In Millions Net Income Net income (loss) attributable to DISH Network was a loss of $11 million during 2Q13, a decrease of $237 million compared to income of $226 million for the same period in 2012. Net income in 2Q13 was negatively impacted by a $438 million impairment charge for the T2 and D1 satellites and favorably impacted by a $76 million unrealized gain on our derivative financial instruments that are indexed to the trading price of the common equity securities of Sprint. Note that the $730 million estimated fair value of the Voom Settlement Agreement was recorded as Litigation expense on our Condensed Consolidated Statement of Operations and Comprehensive Income (Loss) for 3Q12. $226 ($158) $209 $216 ($11) 2Q12 3Q12 4Q12 1Q13 2Q13 Net Income Dollars in Millions |
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DISH QUARTERLY INVESTOR SUMMARY2Q13 SELECTED FINANCIAL RESULTSCONTINUED EBITDA EBITDA was $422 million during 2Q13, a decrease of $338 million or 44.4% compared to the same period in 2012. EBITDA for 2Q13 was negatively impacted by a $438 million impairment charge for the T2 and D1 satellites and favorably impacted by a $76 million unrealized gain on our derivative financial instruments that are indexed to the trading price of the common equity securities of Sprint. Note that the $730 million estimated fair value of the Voom Settlement Agreement was recorded as Litigation expense on our Condensed Consolidated Statement of Operations and Comprehensive Income (Loss) for 3Q12. $760 $37 $675 $701 $422 2Q12 3Q12 4Q12 1Q13 2Q13 EBITDA Dollars in Millions Non-GAAP Reconciliation EBITDA to Net Income Quarter To Date6/30/129/30/1212/31/123/31/136/30/13(In thousands) EBITDA760,159$ 37,073$ 675,315$ 701,242$ 422,410$ Interest expense, net (89,097) (109,514) (107,822) (123,892) (171,027) Income tax (provision) benefit, net(146,211) 149,383 (118,558) (127,425) 38,039 Depreciation and amortiation(299,119) (235,403) (239,829) (234,327) (300,474) Net income (loss) attributable to DISH Network225,732$ (158,461)$ 209,106$ 215,598$ (11,052) Earnings before interest, taxes, depreciation and amortization (EBITDA) is not a measure determined in accordance with accounting principles generally accepted in the United States (GAAP) and should not be considered a substitute for operating income, net income or any other measure determined in accordance with GAAP. EBITDA is used as a measurement of operating efficiency and overall financial performance and we believe it to be a helpful measure for those evaluating companies in the Pay-TV industry. Conceptually, EBITDA measures the amount of income generated each period that could be used to service debt, pay taxes and fund capital expenditures. EBITDA should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. |
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DISH QUARTERLY INVESTOR SUMMARY2Q13 SELECTED FINANCIAL RESULTSCONTINUED Free Cash Flow (FCF) Free Cash Flow for the three months ended June 30, 2013, was $263 million and $638 million for the six months ended June 30, 2013. Note that 4Q12 includes the negative impact of $676 million of payments for the Voom Settlement Agreement. $238 $424 ($298) $375 $263 2Q12 3Q12 4Q12 1Q13 2Q13 Free Cash Flow Dollars in Millions Non-GAAP Reconciliation FCF to Cash From Operations Quarter To Date 6/30/129/30/1212/31/123/31/136/30/13(In thousands) Free cash flow 238,257 $ 424,238$ (297,808)$ 374,935$ 262,592$ Add back: Purchases of property and equipment 251,257 261,740 275,641 311,527 282,213 Net cash flows from operating activities 489,514$ 685,978$ (22,167)$ 686,462$ 544,805$ FCF is defined as Net cash flows from operating activities less Purchases of property and equipment, as shown on our Condensed Consolidated Statements of Cash Flows. We believe free cash flow is an important liquidity metric because it measures, during a given period, the amount of cash generated that is available to repay debt obligations, make investments, fund acquisitions and for certain other activities. Free cash flow is not a measure determined in accordance with GAAP and should not be considered a substitute for Operating income, Net income, Net cash flows from operating activities or any other measure determined in accordance with GAAP. Since free cash flow includes investments in operating assets, we believe this non-GAAP liquidity measure is useful in addition to the most directly comparable GAAP measure Net cash flows from operating activities |
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DISH QUARTERLY INVESTOR SUMMARY2Q13 CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in thousands, except share amounts) (Unaudited) June 30, December 31, 2013 2012 Assets Current Assets: Cash and cash equivalents 4,093,822 $ 3,606,140 $ Marketable investment securities 5,433,340 3,631,637 Trade acconts receivable -- other, net of allowance for doubtful accounts of $15,987 and $16,945, respectively 878,579 842,905 Trade accounts receivable -- EchoStar, net of allowance for doubtful accounts of zero 23,648 26,960 Inventory 577,288 623,720 Deferred tax assets 99,854 99,854 Prepaid income taxes 91,459 110,608 Other current assets (Note 2) 963,901 117,329 Total current assets 12,161,891 9,059,153 Noncurrent Assets: Restricted cash and marketable investment securities 90,858 134,410 Property and equipment, net of accumulated depreciation of $3,130,717 and $3,043,609, respectively 3,990,025 4,402,360 FCC authorzations 3,296,665 3,296,665 Marketable and other investment securities 134,295 119,051 Other noncurrent assets, net 392,067 367,969 Total noncurrent assets 7,903,910 8,320,455 Total assets 20,065,801 $ 17,379,608$ Liabilities and Stockholders Equity (Deficit) Current Liabilities: Trade accounts payable -- other 294,390 $ 298,722 $ Trade accounts payable -- EchoStar 321,711 281,875 Deferred revenue and other 887,338 857,280 Accrued programming 1,186,807 1,096,908 Accrued inerest 261,488 224,383 Litigation accrual-- 70,999 Other accrued expenses 524,329 556,599 Current portion of long--term debt and capital lease obligations 535,837 537,701 Total current liabilities 4,011,900 3,924,467 Long--Term Obligations, Net of Current Portion: Long--term debt and capital lease obligations, net of current portion 13,633,032 11,350,399 Deferred tax liabilites 1,664,891 1,662,732 Long--term deferred revenue, distribution and carriage payments and other long--term liabilities 386,290 370,382 Total long--term obligations, net of current portion 15,684,213 13,383,513 Total liabilitie 19,696,113 17,307,980 Commitments and Contingencies (Note 12) Stockholders Equity (Deficit): Class A common stock, $.01 par value, 1,600,000,000 shares authorized, 273,688,726 and 270,613,262 shares issued, 217,570,466 and 214,495,002 shares outstanding, respectively 2,737 2,706 Class B common stock, $.01 par value, 800,000,000 shares authorized, 238,435,208 shares issued and outstanding 2,384 2,384 Class C common stock, $.01 par value, 800,000,000 shares authorized, none issued and outstanding-- -- Additional paid--in capital 2,517,367 2,440,626 Accumulatd other comprehensive income (loss)214,533 188,803 Accumulated earnings (deficit)(823,647) (1,028,193) Treasury stock, at cost(1,569,459) (1,569,459) Total DISH Network stockholders equity (deficit)343,915 36,867 Noncontrolling interest 25,773 34,761 Total stockholders equity (deficit)369,688 71,628 Total liabilities and stockholders equity (deficit)20,065,801$ 17,379,608$ As of |
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DISH QUARTERLY INVESTOR SUMMARY2Q13 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in thousands, except per share amounts) (Unaudited) crtvsvcs: Jennifer Alvarez: PR: PR 295 Q2 2013 Investor Brochure: Copy: Routing Round 3: IR Packet worksheet Q2 2013. xls 2013 2012 2013 2012 Revenue: Subscriber--related revenue 3,456,536 $ 3,295,831$ 6,809,086$ 6,520,296$ Equipment and merchandise sales, rental and other revenue 140,611 270,257 341,145 620,994 Equipment sales, services and other revenue -- EchoStar 8,986 5,678 11,126 12,345 Total revenue 3,606,133 3,571,766 7,161,357 7,153,635 Costs and Expenses (exclusive of depreciation shown separately below -- Note 7): Subscriber--related expenses 1,924,020 1,823,665 3,835,613 3,584,917 Satellite and transmission expenses: EchoStar 125,706 107,082 238,639 216,936 Other 10,190 9,178 20,438 20,857 Cost of sales -- equipment, merchandise, services, rental and other 76,783 130,061 176,309 272,323 Subscriber acquisition costs: Cost of sales -- subscriber promotion subsidies 67,745 51,500 145,232 136,269 Other subscriber acquisition costs 366,791 355,142 753,204 669,911 Total subscriber acquisition costs 434,536 406,642 898,436 806,180 General and administrative expenses -- EchoStar 26,297 14,790 45,177 26,872 General and administrative expenses 249,879 312,877 501,443 676,970 Depreciation and amortization (Note 7) 300,474 299,119 534,801 507,817 Impairment of long--lived assets (Note 7) 437,575 -- 47,575 -- Total costs and expenses 3,585,460 3,103,414 6,688,431 6,112,872 Operating income (loss) 20,673 468,352 472,926 1,040,763 Other Income (Expense): Interest income 43,843 20,204 81,337 27,293 Interest expense, net of amounts capitalized (214,870) (109,301) (376,256) (247,314) Other, net 97,241 (7,448) 106,981 102,834 Total other income (expense) (73,786) (96,545) (187,938) (117,187) Income (loss) before income taxes (53,113) 371,807 284,988 923,576 Income tax (provision) benefit, net 38,039 (146,211) (89,386) (337,854) Net income (loss) (15,074) 225,596 195,602 585,722 Less: Net income (loss) attributable to noncontrolling interest(4,022) (136) (8,944) (320) Net income (loss) attributable to DISH Network(11,052) $ 225,732 $ 204,546$ 586,042$ Weighted--average common shares outstanding -- Class A and B common stock: Basic 455,452 450,292 454,353 448,791 Diluted 455,452 453,077 457,405 451,425 Earnings per share -- Class A and B common stock: Basic net income (loss) per share attributable to DISH Network(0.02) $ 0.50 $ 0.45 $ 1.31 $ Diluted net income (loss) per share attributable to DISH Network(0.02) $ 0.50 $ 0.45 $ 1.30 $ Comprehensive Income (Loss): Net income (loss) (15,074) $ 225,596 $ 195,602 $ 585,722 $ Other comprehensive income (loss): Foreign currency translation adjustments 2,862 (1,965) 5,599 1,288 Unrealized holding gains (losses) on available--for--sale securities 19,285 (69,393) 37,068 (18,372) Recognition of previously unrealized (gains) losses on available--for--sale securities included in net income (loss) (6,706) (3,135) (5,344) (84,022) Deferred income tax (expense) benefit(4,597) -- (11,593) -- Total other comprehensive income (loss), net of tax 10,844 (74,493) 25,730 (101,106) Comprehensive income (loss) (4,230) 151,103 221,332 484,616 Less: Comprehensive income (loss) attributable to noncontrolling interest(4,022) (136) (8,944) (320) Comprehensive income (loss) attributable to DISH Network (208) $ 151,239 $ 230,276 $ 484,936 $ For the Three Months For the Six Months Ended June 30, Ended June 30, |
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DISH QUARTERLY INVESTOR SUMMARY2Q13 11 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) 2013 2012 Cash Flows From Operating Activities: Net income (loss) 195,602 $ 585,722 $ Adjustments to reconcile net income (loss) to net cash flows from operating activities: Depreciation and amortization 534,801 507,817 Impairment of long--lived assets 437,575 -- Realized and unrealized losses (gains) on investments(107,947) (101,638) Non--cash, stock--based compensation 15,362 30,199 Deferred tax expense (benefit) (45,319) 68,683 Other, net 49,959 7,841 Change in noncurrent assets 17,733 27,230 Change in long--term deferred revenue, distribution and carriage payments and other long--term liabilities 25,555 (29,170) Changes in current assets and curren liabilities, net 107,946 251,380 Net cash flows from operating activities 1,231,267 1,348,064 Cash Flows From Investing Actvities: Purchases of marketable investment securities(3,590,433) (1,996,257) Sales and maturities of marketable investment securities 1,836,573 1,221,341 Purchases and prepaid funding of derivative financial instruments (Note 2) (696,000) -- urchases of property and equipment (593,740) (420,185) Change in restricted cash and marketable investment securities 43,067 (1,535) DBSD North America Transaction, less cash acquired of $5,230 -- (40,015) TerreStar Transaction-- (36,942) Other (57,842) (15,867) Net cash flow from investing activities(3,058,375) (1,289,460) Cash Flows From Financing Activities: Proceeds from issuance of long--term debt 2,300,000 1,900,000 Proceeds from issuance of resricted debt 2,600,000 -- Redemption of restricted debt(2,600,000) -- Funding of restricted debt escrow(2,596,750) -- Release of restricted debt escrow 2,596,771 -- Debt issuance costs(11,427) (9,564) Repayment of long--term debt and capital leae obligations(20,531) (18,949) Net proceeds from Class A common stock options xercised and stock issued under the Employee Stock Purchase Plan 37,071 49,852 Othr 9,605 5,770 Net cash flows from financing activities 2,314,739 1,927,109 Effect of exchange rates on cash and cash equivalents 51 873 Net increase (decrease) in cash and cash equivalents 487,682 1,986,586 Cash and cash equivalets, beginning of period 3,606,140 609,108 Cash and cash equialents, end of period 4,093,822 $ 2,595,694 $ Supplemental Disclosure of Cash Flow Information: Cash paid for interest (including capitalized interest)405,951$ 268,800$ Capitalized interest 69,153 $ 38,643$ Cash received for interest 90,427 $ 19,383 $ Cash paid for income taxes 115,130 $ 243,861 $ Employee benefits paid in Class A common stock 24,229 $ 22,280$ Transfer of regulatory authorization from EchoStar 23,148 $ --$ For the Six Months Ended June 30, |
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DISH QUARTERLY INVESTOR SUMMARY2Q13 RESULTS OF OPERATIONS 2Q13 VS. 2Q12 (In thousands) (Unaudited) Statements of Operations Data 2013 2012 Amount % Revenue: Subscriber-related revenue 3,456,536 $ 3,295,831 $ 160,705 $ 4.9 Equipment and merchandise sales, rental and other revenue 140,611 270,257 (129,646) (48.0) Equipment sales, services and other revenue - EchoStar 8,986 5,678 3,308 58.3 Total revenue 3,606,133 3,571,766 34,367 1.0 Costs and Expenses: Subscriber-related expenses 1,924,020 1,823,665 100,355 5.5 % of Subscriber-related revenue 55.7% 55.3% Satellite and transmission expenses - EchoStar 125,706 107,082 18,624 17.4 % of Subscriber-related revenue 3.6% 3.2% Satellite and transmission expenses - Other 10,190 9,178 1,012 11.0 % of Subscriber-related revenue 0.3% 0.3% Cost of sales - equipment, merchandise, services, rental and other 76,783 130,061 (53,278) (41.0) Subscriber acquisition costs 434,536 406,642 27,894 6.9 General and administrative expenses 276,176 327,667 (51,491) (15.7) % of Total revenue 7.7% 9.2% Depreciation and amortization 300,474 299,119 1,355 0.5 Impairment of long-lived assets 437,575 - 437,575 * Total costs and expenses 3,585,460 3,103,414 482,046 15.5 Operating income (loss)20,673 468,352 (447,679) (95.6) Other Income (Expense): Interest income 43,843 20,204 23,639 * Interest expense, net of amounts capitalized(214,870) (109,301) (105,569) (96.6) Other, net 97,241 (7,448) 104,689 * Total other income (expense)(73,786) (96,545) 22,759 23.6 Income (loss) before income taxes(53,113) 371,807 (424,920) * Income tax (provision) benefit, net 38,039 (146,211) 184,250 * Effective tax rate 71.6% 39.3% Net income (loss)(15,074) 225,596 (240,670) * Less: Net income (loss) attributable to non controlling interest(4,022) (136) (3,886) * Net income (loss) attributable to DISH Network $(11,052)$ 225,732$ (236,784) * Other Data: Pay-TV subscribers, as of period end (in millions)14.014 14.061 (0.047) (0.3) Pay-TV subscriber additions, gross (in millions)0.624 0.665 (0.041) (6.2) Pay-TV subscriber additions, net (in millions)(0.078) (0.010) (0.068) * Pay-TV average monthly subscriber churn rate 1.67% 1.60% 0.07% 4.4 Pay-TV average subscriber acquisition cost per subscriber (Pay-TV SAC)882$ 800$ 82$ 10.3 Pay-T average monthly revenue per subscriber (Pay-TV ARPU) 80.90 $ 77.59 $ 3.31 $ 4.3 Broadband subscribers, as of period end (in millions) 0.310 0.122 0.188 * Broadband subscriber additions, gross (in millions)0.079 0.021 0.058 * Broadband subscriber additions, net (in millions)0.061 0.011 0.050 * EBITDA (in thousands)422,410$ 760,159$ (337,749)$ (44.4) For the Three Months Ended June 30, Variance * Percentage is not meaningful. |
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DISH QUARTERLY INVESTOR SUMMARY2Q13 CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS Certain statements contained herein may constitute forward- looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of DISH Network Corporation to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. More information about such risks, uncertainties and other factors is set forth in DISH Network Corporations Disclosure Regarding Forward-Looking Statements included in its recent filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2012, and its quarterly reports on Form 10-Q for the quarterly periods ended March 31, 2013, and June 30, 2013. The forward-looking statements speak only as of the date made, and DISH Network Corporation expressly disclaims any obligation to update these forward-looking statements. |
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