Dish Network 2006 Annual Report Download - page 54

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Item 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS – Continued
44
RESULTS OF OPERATIONS
Year Ended December 31, 2006 Compared to the Year Ended December 31, 2005.
For the Years Ended December 31, Variance
2006 2005 Amount %
Statements of Operations Data (In thousands)
Revenue:
Subscriber-related revenue........................................................................ 9,375,519$ 7,986,394$ 1,389,125$ 17.4
Equipment sales......................................................................................... 362,098 367,968 (5,870) (1.6)
Other.......................................................................................................... 80,869 92,813 (11,944) (12.9)
Total revenue...................................................................................... 9,818,486 8,447,175 1,371,311 16.2
Costs and Expenses:
Subscriber-related expenses................................................................... 4,807,872 4,095,986 711,886 17.4
% of Subscriber-related revenue................................................. 51.3% 51.3%
Satellite and transmission expenses........................................................ 147,450 134,545 12,905 9.6
% of Subscriber-related revenue................................................. 1.6% 1.7%
Cost of sales - equipment....................................................................... 282,420 271,697 10,723 3.9
% of Equipment sales.................................................................... 78.0% 73.8%
Cost of sales - other................................................................................ 7,260 23,339 (16,079) (68.9)
Subscriber acquisition costs................................................................... 1,596,303 1,492,581 103,722 6.9
General and administrative..................................................................... 551,547 456,206 95,341 20.9
% of Total revenue........................................................................ 5.6% 5.4%
Tivo litigation expense........................................................................... 93,969 - 93,969 NM
Depreciation and amortization............................................................... 1,114,294 805,573 308,721 38.3
Total costs and expenses.................................................................... 8,601,115 7,279,927 1,321,188 18.1
Operating income (loss)............................................................................ 1,217,371 1,167,248 50,123 4.3
Other income (expense):
Interest income.......................................................................................... 126,401 43,518 82,883 NM
Interest expense, net of amounts capitalized............................................. (458,150) (373,844) (84,306) (22.6)
Gain on insurance settlement .................................................................... - 134,000 (134,000)
(100.0)
Other.......................................................................................................... 37,393 36,169 1,224 3.4
Total other income (expense)............................................................. (294,356) (160,157) (134,199) (83.8)
Income (loss) before income taxes............................................................ 923,015 1,007,091 (84,076) (8.3)
Income tax benefit (provision), net............................................................ (314,743) 507,449 (822,192) NM
Net income (loss)...................................................................................... 608,272$ 1,514,540$ (906,268)$ (59.8)
Other Data:
DISH Network subscribers, as of period end (in millions)........................ 13.105 12.040 1.065 8.8
DISH Network subscriber additions, gross (in millions)........................... 3.516 3.397 0.119 3.5
DISH Network subscriber additions, net (in millions).............................. 1.065 1.135 (0.070) (6.2)
Average monthly subscriber churn rate..................................................... 1.64% 1.65% (0.01%) (0.6)
Average monthly revenue per subscriber ("ARPU")................................ 62.47$ 58.04$ 4.43$ 7.6
Average subscriber acquisition costs per subscriber ("SAC")................... 686$ 693$ (7)$ (1.0)
EBITDA.................................................................................................... 2,369,058$ 2,142,990$ 226,068$ 10.5