Dish Network 2014 Annual Report Download - page 74

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, 2014 Compared to the Year Ended December 31, 2013.
For the Years Ended December 31, Variance
Statements of O
p
erations Data 2014 2013 Amount %
Revenue:
Subscriber-related revenue...................................................................................... 14,495,091$ 13,764,774$ 730,317$ 5.3
Equipment sales and other revenue......................................................................... 85,815 94,855 (9,040) (9.5)
Equipment sales, services and other revenue - EchoStar......................................... 62,481 45,236 17,245 38.1
Total revenue.................................................................................................... 14,643,387 13,904,865 738,522 5.3
Costs and Expenses:
Subscriber-related expenses................................................................................. 8,313,046 7,818,061 494,985 6.3
% of Subscriber-related revenue............................................................... 57.4% 56.8%
Satellite and transmission expenses...................................................................... 693,114 535,541 157,573 29.4
% of Subscriber-related revenue............................................................... 4.8% 3.9%
Cost of sales - equipment, services and other ...................................................... 107,777 91,902 15,875 17.3
Subscriber acquisition costs................................................................................. 1,811,318 1,842,870 (31,552) (1.7)
General and administrative expenses.................................................................... 815,745 776,711 39,034 5.0
% of Total revenue...................................................................................... 5.6% 5.6%
Depreciation and amortization.............................................................................. 1,077,936 1,054,026 23,910 2.3
Impairment of long-lived assets............................................................................ - 437,575 (437,575) *
Total costs and expenses.................................................................................. 12,818,936 12,556,686 262,250 2.1
Operating income (loss).......................................................................................... 1,824,451 1,348,179 476,272 35.3
Other Income (Expense):
Interest income........................................................................................................ 61,841 148,865 (87,024) (58.5)
Interest expense, net of amounts capitalized............................................................ (611,209) (744,985) 133,776 18.0
Other, net................................................................................................................. (69,341) 384,856 (454,197) *
Total other income (expense)........................................................................... (618,709) (211,264) (407,445) *
Income (loss) before income taxes.......................................................................... 1,205,742 1,136,915 68,827 6.1
Income tax (provision) benefit, net.......................................................................... (276,840) (299,826) 22,986 7.7
Effective tax rate ............................................................................................ 23.0% 26.4%
Income (loss) from continuing operations............................................................... 928,902 837,089 91,813 11.0
Income (loss) from discontinued operations, net of tax........................................... - (47,343) 47,343 *
Net income (loss)..................................................................................................... 928,902 789,746 139,156 17.6
Less: Net income (loss) attributable to noncontrolling interests........................ (15,791) (17,746) 1,955 11.0
Net income (loss) attributable to DISH Network.................................................... 944,693$ 807,492$ 137,201$ 17.0
Other Data:
Pay-TV subscribers, as of period end (in millions)................................................. 13.978 14.057 (0.079) (0.6)
Pay-TV subscriber additions, gross (in millions).................................................... 2.601 2.666 (0.065) (2.4)
Pay-TV subscriber additions, net (in millions)........................................................ (0.079) 0.001 (0.080) *
Pay-TV average monthly subscriber churn rate....................................................... 1.59% 1.58% 0.01% 0.6
Pay-TV average subscriber acquisition cost per subscriber (“Pay-TV SAC”)........ 853$ 866$ (13)$ (1.5)
Pay-TV average monthly revenue per subscriber (“Pay-TV ARPU”).................... 83.77$ 80.37$ 3.40$ 4.2
Broadband subscribers, as of period end (in millions)............................................ 0.577 0.436 0.141 32.3
Broadband subscriber additions, gross (in millions)............................................... 0.295 0.343 (0.048) (14.0)
Broadband subscriber additions, net (in millions)................................................... 0.141 0.253 (0.112) (44.3)
Adjusted EBITDA................................................................................................... 2,848,837$ 2,804,807$ 44,030$ 1.6
* Percentage is not meaningful.
(In thousands)