Dish Network 2004 Annual Report Download - page 53

Download and view the complete annual report

Please find page 53 of the 2004 Dish Network annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 148

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148

Item 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS - Continued
45
Year Ended December 31, 2003 Compared to the Year Ended December 31, 2002.
For the Years Ended December 31, Variance
2003 2002 Amount %
Statements of Operations Data (In thousands)
Revenue:
Subscriber-related revenue..................................................................... 5,409,875$ 4,429,699$ 980,176$ 22.1%
Equipment sales...................................................................................... 295,409 348,629 (53,220) (15.3%)
Other....................................................................................................... 34,012 42,497 (8,485) (20.0%)
Total revenue............................................................................................. 5,739,296 4,820,825 918,471 19.1%
Costs and Expenses:
Subscriber-related expenses................................................................... 2,707,898 2,200,239 507,659 23.1%
% of Subscriber-related revenue................................................. 50.1% 49.7%
Satellite and transmission expenses........................................................ 79,322 62,131 17,191 27.7%
% of Subscriber-related revenue................................................. 1.5% 1.4%
Cost of sales - equipment....................................................................... 194,491 227,670 (33,179) (14.6%)
% of Equipment sales.................................................................... 65.8% 65.3%
Cost of sales - other................................................................................ 3,496 6,466 (2,970) (45.9%)
Subscriber acquisition costs................................................................... 1,312,068 1,168,649 143,419 12.3%
General and administrative..................................................................... 332,723 319,915 12,808 4.0%
% of Total revenue........................................................................ 5.8% 6.6%
Non-cash, stock-based compensation..................................................... 3,544 11,279 (7,735) (68.6%)
Depreciation and amortization............................................................... 398,206 372,958 25,248 6.8%
Total costs and expenses........................................................................... 5,031,748 4,369,307 662,441 15.2%
Operating income (loss)............................................................................ 707,548 451,518 256,030 56.7%
Other income (expense):
Interest income....................................................................................... 65,058 112,927 (47,869) (42.4%)
Interest expense, net of amounts capitalized.......................................... (552,490) (482,903) (69,587) (14.4%)
Merger termination related expenses
(including $33,323 in interest expense)............................................. - (689,798) 689,798 100.0%
Other....................................................................................................... 18,766 (170,680) 189,446 N/A
Total other income (expense).................................................................... (468,666) (1,230,454) 761,788 61.9%
Income (loss) before income taxes............................................................ 238,882 (778,936) 1,017,818 N/A
Income tax benefit (provision), net............................................................ (14,376) (73,098) 58,722 80.3%
Net income (loss)...................................................................................... 224,506$ (852,034)$ 1,076,540$ N/A
Basic and diluted net income (loss) to common shareholders................... 224,506$ (414,601)$ 639,107$ N/A
Other Data:
DISH Network subscribers, as of year end (in millions)........................... 9.425 8.180 1.245 15.2%
DISH Network subscriber additions, gross (in millions)........................... 2.894 2.764 0.130 4.7%
DISH Network subscriber additions, net (in millions).............................. 1.245 1.350 (0.105) (7.8%)
Monthly churn percentage......................................................................... 1.57% 1.59% (0.02%) (1.3%)
Average revenue per subscriber ("ARPU").............................................. 51.21$ 49.37$ 1.84$ 3.7%
Average subscriber acquisition costs per subscriber ("SAC")................... 453$ 421$ 32$ 7.6%
Equivalent average subscriber acquition costs per
subscriber ("Equivalent SAC")............................................................. 480$ 507$ (27)$ (5.3%)
EBITDA.................................................................................................... 1,124,520$ (2,679)$ 1,127,199$ N/A