Dish Network 2014 Annual Report Download - page 79

Item 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS - Continued
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Year Ended December 31, 2013 Compared to the Year Ended December 31, 2012.
For the Years Ended December 31, Variance
Statements of Operations Data 2013 2012 Amount %
Revenue:
Subscriber-related revenue................................................................................................. 13,764,774$ 13,064,936$ 699,838$ 5.4
Equipment sales and other revenue..................................................................................... 94,855 98,480 (3,625) (3.7)
Equipment sales, services and other revenue - EchoStar.................................................... 45,236 17,918 27,318 *
Total revenue............................................................................................................... 13,904,865 13,181,334 723,531 5.5
Costs and Expenses:
Subscriber-related expenses............................................................................................. 7,818,061 7,254,458 563,603 7.8
% of Subscriber-related revenue........................................................................... 56.8% 55.5%
Satellite and transmission expenses................................................................................. 535,541 466,240 69,301 14.9
% of Subscriber-related revenue........................................................................... 3.9% 3.6%
Cost of sales - equipment, services and other ................................................................. 91,902 97,965 (6,063) (6.2)
Subscriber acquisition costs............................................................................................. 1,842,870 1,687,327 155,543 9.2
General and administrative expenses............................................................................... 776,711 722,045 54,666 7.6
% of Total revenue................................................................................................. 5.6% 5.5%
Litigation expense............................................................................................................ - 730,457 (730,457) *
Depreciation and amortization......................................................................................... 1,054,026 964,484 89,542 9.3
Impairment of long-lived assets....................................................................................... 437,575 - 437,575 *
Total costs and expenses.............................................................................................. 12,556,686 11,922,976 633,710 5.3
Operating income (loss)...................................................................................................... 1,348,179 1,258,358 89,821 7.1
Other Income (Expense):
Interest income.................................................................................................................... 148,865 99,091 49,774 50.2
Interest expense, net of amounts capitalized....................................................................... (744,985) (536,236) (208,749) (38.9)
Other, net............................................................................................................................ 384,856 173,697 211,159 *
Total other income (expense)...................................................................................... (211,264) (263,448) 52,184 19.8
Income (loss) before income taxes...................................................................................... 1,136,915 994,910 142,005 14.3
Income tax (provision) benefit, net..................................................................................... (299,826) (331,991) 32,165 9.7
Effective tax rate....................................................................................................... 26.4% 33.4%
Income (loss) from continuing operations.......................................................................... 837,089 662,919 174,170 26.3
Income (loss) from discontinued operations, net of tax...................................................... (47,343) (37,179) (10,164) (27.3)
Net income (loss)................................................................................................................ 789,746 625,740 164,006 26.2
Less: Net income (loss) attributable to noncontrolling interests.................................... (17,746) (10,947) (6,799) (62.1)
Net income (loss) attributable to DISH Network................................................................ 807,492$ 636,687$ 170,805$ 26.8
Other Data:
Pay-TV subscribers, as of period end (in millions)............................................................. 14.057 14.056 0.001 0.0
Pay-TV subscriber additions, gross (in millions)................................................................ 2.666 2.739 (0.073) (2.7)
Pay-TV subscriber additions, net (in millions)................................................................... 0.001 0.089 (0.088) (98.9)
Pay-TV average monthly subscriber churn rate.................................................................. 1.58% 1.57% 0.01% 0.6
Pay-TV average subscriber acquisition cost per subscriber (“Pay-TV SAC”)................... 866$ 784$ 82$ 10.5
Pay-TV average monthly revenue per subscriber (“Pay-TV ARPU”)............................... 80.37$ 76.98$ 3.39$ 4.4
Broadband subscribers, as of period end (in millions)........................................................ 0.436 0.183 0.253 *
Broadband subscriber additions, gross (in millions)........................................................... 0.343 0.121 0.222 *
Broadband subscriber additions, net (in millions).............................................................. 0.253 0.078 0.175 *
Adjusted EBITDA.............................................................................................................. 2,804,807$ 2,407,486$ 397,321$ 16.5
* Percentage is not meaningful.
(In thousands)