Dish Network 2003 Annual Report Download - page 47

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Item 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS - Continued
42
Year Ended December 31, 2002 Compared to the Year Ended December 31, 2001.
For the Years Ended December 31, Variance
2002
(As Restated) (1) 2001 Fav/(Unfav) %
Statements of Operations Data
(in thousands)
Revenue:
Subscription television services............................................................. 4,411,838$ 3,588,441$ 823,397$ 22.9%
Other subscriber-related revenue............................................................ 17,861 17,283 578 3.3%
DTH equipment sales............................................................................. 287,831 271,242 16,589 6.1%
Other....................................................................................................... 103,295 124,172 (20,877) (16.8%)
Total revenue............................................................................................. 4,820,825 4,001,138 819,687 20.5%
Costs and Expenses:
Subscriber-related expenses................................................................... 2,200,239 1,792,542 (407,697) (22.7%)
% of Subscription television services revenue............................ 49.9% 50.0%
Satellite and transmission expenses........................................................ 62,131 40,899 (21,232) (51.9%)
% of Subscription television services revenue............................ 1.4% 1.1%
Cost of sales - DTH equipment.............................................................. 178,554 188,039 9,485 5.0%
% of DTH equipment sales........................................................... 62.0% 69.3%
Cost of sales - other................................................................................ 55,582 81,974 26,392 32.2%
Subscriber acquisition costs................................................................... 1,168,649 1,080,819 (87,830) (8.1%)
General and administrative..................................................................... 319,915 305,738 (14,177) (4.6%)
% of Total revenue........................................................................ 6.6% 7.6%
Non-cash, stock-based compensation..................................................... 11,279 20,173 8,894 44.1%
Depreciation and amortization............................................................... 372,958 278,652 (94,306) (33.8%)
Total costs and expenses........................................................................... 4,369,307 3,788,836 (580,471) (15.3%)
Operating income...................................................................................... 451,518 212,302 239,216 112.7%
Other Income (Expense):
Interest income....................................................................................... 112,927 97,671 15,256 N/A
Interest expense, net of amounts capitalized.......................................... (482,903) (371,365) (111,538) N/A
Merger termination related expenses
(including $33,323 in interest expense)............................................. (689,798) - (689,798) N/A
Other....................................................................................................... (170,680) (152,652) (18,028) N/A
Total other income (expense).................................................................... (1,230,454) (426,346) (804,108) N/A
Loss before income taxes.......................................................................... (778,936) (214,044) (564,892) N/A
Income tax provision, net.......................................................................... (73,098) (1,454) (71,644) N/A
Net loss...................................................................................................... (852,034)$ (215,498)$ (636,536)$ N/A
Net loss to common shareholders.............................................................. (414,601)$ (215,835)$ (198,766)$ N/A
Subscribers (in millions), as of year end................................................... 8.180 6.830 1.350 19.8%
Monthly churn percentage......................................................................... 1.59% 1.60% 0.01% 0.6%
Average subscriber acquisition costs per subscriber ("SAC")................... 421$ 395$ (26)$ (6.6%)
Average revenue per subscriber ("ARPU").............................................. 49.17$ 49.32$ (0.15)$ (0.3%)
EBITDA.................................................................................................... (2,679)$ 338,302$ (340,981)$ N/A
(1) We restated our 2002 consolidated financial statements to reverse an accrual of approximately $30.2 million, on a pre-tax basis, related to the
replacement of smart cards in satellite receivers owned by us and leased to consumers. See Note 3 to the Notes to the Consolidated Financial
Statements in Item 15 of this Annual Report on Form 10-K.