Dish Network 2013 Annual Report Download - page 83

Item 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS - Continued
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Year Ended December 31, 2012 Compared to the Year Ended December 31, 2011.
For the Years Ended December 31, Variance
Statements of Operations Data 2012 2011 Amount %
Revenue:
Subscriber-related revenue................................................................................................. 13,064,936$ 12,972,152$ 92,784$ 0.7
Equipment sales and other revenue..................................................................................... 98,480 65,437 33,043 50.5
Equipment sales, services and other revenue - EchoStar.................................................... 17,918 36,474 (18,556) (50.9)
Total revenue............................................................................................................... 13,181,334 13,074,063 107,271 0.8
Costs and Expenses:
Subscriber-related expenses............................................................................................. 7,254,458 6,845,611 408,847 6.0
% of Subscriber-related revenue........................................................................... 55.5% 52.8%
Satellite and transmission expenses - EchoStar............................................................... 424,543 441,541 (16,998) (3.8)
% of Subscriber-related revenue........................................................................... 3.2% 3.4%
Satellite and transmission expenses - Other..................................................................... 41,697 39,806 1,891 4.8
% of Subscriber-related revenue........................................................................... 0.3% 0.3%
Cost of sales - equipment, services and other ................................................................. 97,965 80,372 17,593 21.9
Subscriber acquisition costs............................................................................................. 1,687,327 1,505,131 182,196 12.1
General and administrative expenses............................................................................... 722,045 637,365 84,680 13.3
% of Total revenue................................................................................................. 5.5% 4.9%
Litigation expense............................................................................................................ 730,457 (316,949) 1,047,406 *
Depreciation and amortization......................................................................................... 964,484 912,203 52,281 5.7
Total costs and expenses.............................................................................................. 11,922,976 10,145,080 1,777,896 17.5
Operating income (loss)...................................................................................................... 1,258,358 2,928,983 (1,670,625) (57.0)
Other Income (Expense):
Interest income.................................................................................................................... 99,091 33,882 65,209 *
Interest expense, net of amounts capitalized....................................................................... (536,236) (557,966) 21,730 3.9
Other, net............................................................................................................................ 173,697 8,240 165,457 *
Total other income (expense)...................................................................................... (263,448) (515,844) 252,396 48.9
Income (loss) before income taxes...................................................................................... 994,910 2,413,139 (1,418,229) (58.8)
Income tax (provision) benefit, net..................................................................................... (331,991) (890,765) 558,774 62.7
Effective tax rate....................................................................................................... 33.4% 36.9%
Income (loss) from continuing operations.......................................................................... 662,919 1,522,374 (859,455) (56.5)
Income (loss) from discontinued operations, net of tax...................................................... (37,179) (6,796) (30,383) *
Net income (loss)................................................................................................................ 625,740 1,515,578 (889,838) (58.7)
Less: Net income (loss) attributable to noncontrolling interest..................................... (10,947) (329) (10,618) *
Net income (loss) attributable to DISH Network................................................................ 636,687$ 1,515,907$ (879,220)$ (58.0)
Other Data:
Pay-TV subscribers, as of period end (in millions)............................................................. 14.056 13.967 0.089 0.6
Pay-TV subscriber additions, gross (in millions)................................................................ 2.739 2.576 0.163 6.3
Pay-TV subscriber additions, net (in millions)................................................................... 0.089 (0.166) 0.255 *
Pay-TV average monthly subscriber churn rate.................................................................. 1.57% 1.63% (0.06%) (3.7)
Pay-TV average subscriber acquisition cost per subscriber (“Pay-TV SAC”)................... 784$ 770$ 14$ 1.8
Pay-TV average monthly revenue per subscriber (“Pay-TV ARPU”)............................... 76.98$ ** 76.43$ ** 0.55$ 0.7
Broadband subscribers, as of period end (in millions)........................................................ 0.183 0.105 0.078 74.3
Broadband subscriber additions, gross (in millions)........................................................... 0.121 0.030 0.091 *
Broadband subscriber additions, net (in millions).............................................................. 0.078 (0.005) 0.083 *
Adjusted EBITDA.............................................................................................................. 2,407,486$ 3,849,755$ (1,442,269)$ (37.5)
* Percentage is not meaningful.
** For the years ended December 31, 2012 and 2011, Pay-TV ARPU has been adjusted by $0.12 and $0.02, respectively,
to exclude the effect of discontinued operations.
(In thousands)