Dish Network 2013 Annual Report Download - page 78

Item 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS - Continued
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RESULTS OF OPERATIONS
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 - EchoStar......................................................... 494,240 424,543 69,697 16.4
% of Subscriber-related revenue.................................................................... 3.6% 3.2%
Satellite and transmission expenses - Other............................................................... 41,301 41,697 (396) (0.9)
% of Subscriber-related revenue.................................................................... 0.3% 0.3%
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 interest............................... (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.
** For the year ended December 31, 2012, Pay-TV ARPU has been adjusted by $0.12 to exclude the effect of discontinued operations.
(In thousands)