EchoStar Reports Record Results for Second Quarter, 2000
DISH Network Captures 56 Percent of Net New DBS Customers in 2000 As First Half Growth Up 37 Percent Over 1999
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LITTLETON, Colo.--(BUSINESS WIRE)--Aug. 1, 2000-- EchoStar Communications Corporation (NASDAQ: DISH - news, DISHP - news) announced today that it continued to experience record-setting customer growth for its DISH Network(TM) direct broadcast satellite (DBS) television service during the second quarter of 2000, adding approximately 445,000 net subscribers and ending the quarter with over 4.3 million subscribers as of June 30, 2000. DISH Network's second quarter subscriber growth was 34 percent greater than the number of net new customers added in the second quarter of 1999, and the subscriber growth for the first half of 2000 was 37 percent greater than the subscriber growth that occurred in the first half of 1999. As a result, DISH Network has captured over 56 percent of net new DBS television subscribers in 2000, maintaining DISH Network's position as the fastest growing television provider in the United States.
EchoStar reported total revenue of $646 million for the quarter ended June 30, 2000, compared to $350 million for the corresponding period in 1999. Pre-marketing cash flow grew to $221 million during the first quarter ended June 30, 2000, compared to $129 million during the first quarter ended June 30, 1999. With record customer growth, EchoStar experienced increased upfront acquisition costs, resulting in increased operating and net losses compared to the corresponding period in 1999. Consequently, EchoStar's operating loss for the quarter ended June 30, 2000, totaled $86 million compared to $51 million reported during the corresponding period in 1999. The Company's net losses totaled $133 million for the first quarter of 2000 compared to a net loss of $76 million during the corresponding period in 1999. Earnings before interest, taxes, depreciation and amortization (EBITDA) for the quarter ended June 30, 2000, totaled negative $31 million, compared to EBITDA of negative $23 million for the corresponding period in 1999. EBITDA for the second quarter of 2000 represents a $56 million improvement over the quarter ended March 31, 2000, when EBITDA was negative $87.5 million.
For more information about EchoStar, visit the Investor Relations section of our website at www.echostar.com.
Statement under the Private Securities Litigation Reform Act of 1995: All statements contained herein, as well as statements made in press releases and oral statements that may be made by us or by officers, directors or employees acting on our behalf, that are not statements of historical fact constitute ``forward-looking statements'' within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause our actual results to be materially different from historical results or from any future results expressed or implied by such forward-looking statements. Among the factors that could cause our actual results to differ materially are the following: a total or partial loss of one or more satellites due to operational failures, space debris or otherwise; an unsuccessful deployment of our sixth satellite, EchoStar VI; delays in the construction of our seventh, eighth or ninth satellites; inability to settle outstanding claims with insurers; a decrease in sales of digital equipment and related services to international direct-to-home service providers; a decrease in DISH Network subscriber growth; an increase in subscriber turnover; an increase in subscriber acquisition costs; an inability to obtain certain retransmission consents; our inability to retain necessary authorizations from the FCC; an increase in competition from cable, direct broadcast satellite, other satellite system operators, and other providers of subscription television services; the introduction of new technologies and competitors into the subscription television business; a change in the regulations governing the subscription television service industry; the outcome of any litigation in which we may be involved; general business and economic conditions; and other risk factors described from time to time in our reports filed with the Securities and Exchange Commission. In addition to statements that explicitly describe such risks and uncertainties, readers are urged to consider statements that include the terms ``believes,'' ``belief,'' ``expects,'' ``plans,'' ``anticipates,'' ``intends'' or the like to be uncertain and forward-looking. All cautionary statements made herein should be read as being applicable to all forward-looking statements wherever they appear. In this connection, investors should consider the risks described herein and should not place undue reliance on any forward-looking statements.
EchoStar Communications Corp., includes three interrelated business units:
DISH Network(TM) is EchoStar's state-of-the-art direct broadcast satellite system that is capable of offering over 500 channels of digital video and CD-quality audio programming, including Dolby Digital sound, high-speed interactive television and data services, all on a single dish, as well as offering fully MPEG-2/DVB compliant hardware and installation. DISH Network was ranked number one in customer satisfaction among satellite/cable TV subscribers by the J.D. Power and Associates 1999 Cable/Satellite TV Customer Satisfaction Study.
EchoStar Technologies Corporation designs, distributes and oversees the manufacturing of DBS set-top boxes, antennas and other digital equipment for DISH Network and various international customers that include Bell ExpressVu Canada and the Via Digital system in Spain. ETC provides construction, oversight and project integration services for customers internationally. ETC also oversees EchoStar Data Networks Corporation in Atlanta, a leading designer of broadband IP streaming products and services for DISH Network.
Satellite Services provides the delivery of interactive video, audio and data services to business television customers and other satellite users. These services include satellite uplink, satellite transponder space usage, business solutions and other services. Satellite Services also oversees the design and delivery of interactive television services and satellite equipment.
DISH Network, which currently serves over 4.3 million customers, is a trademark of EchoStar Communications Corporation. EchoStar is included in the Nasdaq-100 Index (NDX) which contains the largest non-financial companies on the Nasdaq Stock Market. DISH Network is located on the Internet at www.dishnetwork.com.
SELECTED FINANCIAL DATA
EchoStar Communications Corporation
(In thousands, except subscribers and per share data)
Three Months Ended June 30,
1999 2000
---------------------------
(Unaudited)
Statements of Operations Data
Revenue:
DISH Network:
Subscription television services $ 306,781 $ 555,309
Other 2,161 2,169
---------- -----------
Total DISH Network 308,942 557,478
DTH equipment sales and
integration services 27,073 60,034
Satellite services 9,345 19,360
C-band and other 4,857 9,257
---------- -----------
Total revenue 350,217 646,129
Costs and Expenses:
DISH Network Operating Expenses:
Subscriber-related expenses 133,060 231,450
Customer service center and other 24,925 68,371
Satellite and transmission 10,629 13,895
---------- -----------
Total DISH Network operating expenses 168,614 313,716
Cost of sales - DTH equipment
and integration services 18,606 46,320
Cost of sales - C-band and other 3,393 7,120
Marketing:
Subscriber promotion subsidies 142,965 227,825
Advertising and other 8,967 24,471
---------- -----------
Total marketing expenses 151,932 252,296
General and administrative 31,002 58,176
Non-cash, stock-based compensation 1,719 13,022
Depreciation and amortization 25,940 41,710
---------- -----------
Total costs and expenses 401,206 732,360
---------- -----------
Operating loss $ (50,989) $ (86,231)
========== ===========
Extraordinary charge for early
retirement of debt, net of tax $ - $ -
========== ===========
Net loss $ (76,129) $ (132,860)
========== ===========
Net loss attributable to common shares $ (78,014) $ (133,100)
========== ===========
Weighted-average common
shares outstanding 388,936 471,555
========== ===========
Net loss per common share:
Basic and diluted loss per share
before extraordinary charge $ (0.20) $ (0.28)
Extraordinary charge - -
---------- -----------
Basic and diluted net loss $ (0.20) $ (0.28)
========== ===========
Other Data
Pre-marketing cash flow $ 128,602 $ 220,797
========== ===========
EBITDA $ (23,330) $ (31,499)
========== ===========
DISH Network subscribers 2,597,000 4,310,000
========== ===========
December 31, June 30,
1999 2000
---- ----
Balance Sheets Data (Unaudited)
-------------------
Cash, cash equivalents and
marketable investment
securities $ 1,254,175 $ 890,622
Restricted cash and marketable
investment securities 3,000 3,000
Total assets 3,898,189 3,821,322
Total current liabilities 896,909 1,062,579
Total long-term obligations,
net of current portion 3,049,698 3,052,285
SELECTED FINANCIAL DATA
EchoStar Communications Corporation
(In thousands, except per share data)
Six Months Ended June 30,
1999 2000
-------------------------
(Unaudited)
Statements of Operations Data
Revenue:
DISH Network:
Subscription television services $ 567,797 $ 1,032,183
Other 4,424 3,482
---------- -----------
Total DISH Network 572,221 1,035,665
DTH equipment sales and
integration services 59,742 122,738
Satellite services 17,319 33,610
C-band and other 10,511 19,837
---------- -----------
Total revenue 659,793 1,211,850
Costs and Expenses:
DISH Network Operating Expenses:
Subscriber-related expenses 243,417 433,024
Customer service center and other 49,034 124,420
Satellite and transmission 20,075 26,371
---------- -----------
Total DISH Network operating expenses 312,526 583,815
Cost of sales - DTH equipment
and integration services 41,522 92,542
Cost of sales - C-band and other 7,443 15,236
Marketing:
Subscriber promotion subsidies 270,573 477,912
Advertising and other 20,656 47,641
---------- -----------
Total marketing expenses 291,229 525,553
General and administrative 61,025 113,753
Non-cash, stock-based compensation 1,719 27,031
Depreciation and amortization 51,000 82,168
---------- -----------
Total costs and expenses 766,464 1,440,098
---------- -----------
Operating loss $ (106,671) $ (228,248)
========== ===========
Extraordinary charge for early
retirement of debt, net of tax $ (268,999) $ -
========== ===========
Net loss $ (448,460) $ (317,990)
========== ===========
Net loss attributable to common shares $ (452,544) $ (318,723)
========== ===========
Weighted-average common
shares outstanding 375,736 468,661
========== ===========
Net loss per common share:
Basic and diluted loss per share
before extraordinary charge $ (0.49) $ (0.68)
Extraordinary charge (0.71) -
---------- -----------
Basic and diluted net loss $ (1.20) $ (0.68)
========== ===========
Other Data
Pre-marketing cash flow $ 237,277 $ 406,504
========== ===========
EBITDA $ (53,952) $ (119,049)
========== ===========
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Contact:
EchoStar Communications Corporation
Judianne Atencio, Communications Director
303/723-2010
e-mail: judianne.atencio@echostar.com |
