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DISH Network Announces Third Quarter 2011 Financial Results

Discussion in 'General DISH™ Discussion' started by Slamminc11, Nov 7, 2011.

  1. Nov 7, 2011 #1 of 14
    Slamminc11

    Slamminc11 Hall Of Fame

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    DISH Network Revenues Grow by 12.3 Percent to $3.60 Billion and Net Income Increases 30.3 Percent to $319 Million; DISH Declares Non-Recurring Dividend


    ENGLEWOOD, CO -- (MARKET WIRE) -- 11/07/11 -- DISH Network Corporation (NASDAQ: DISH) today reported its third quarter 2011 financial results.

    Revenue totaled $3.60 billion for the quarter ended Sept. 30, 2011, a 12.3 percent increase compared with $3.21 billion for the corresponding period in 2010. Net income attributable to common shareholders totaled $319 million for the quarter ended Sept. 30, 2011, a 30.3 percent increase compared with $245 million during the same period last year. Diluted earnings per share were $0.71 for the third quarter, compared with $0.55 during the same period in 2010. DISH Network's net subscribers decreased by approximately 111,000 during the third quarter, and the company ended Sept. 30, 2011, with approximately 13.945 million subscribers.

    "DISH delivered another quarter of strong growth in net income compared to the same period last year," said Joe Clayton, president and CEO of DISH Network. "Our net subscriber loss improved over the second quarter of this year but continued to be affected by increased competitive pressures, including aggressive competitive promotional offers, discounting and a weak housing market. Going forward, we plan to build on the momentum of our introduction of the Blockbuster-branded programming service which allows DISH customers to stream movies and TV shows as well as receive DVDs by mail."

    Detailed financial data and other information are available in DISH Network's Form 10-Q for the quarterly period ended Sept. 30, 2011, filed today with the Securities and Exchange Commission.

    DISH Network will host its third quarter 2011 financial results conference call today at noon ET. The dial-in number is (800) 616-6729.

    Non-Recurring Dividend
    On Nov. 1, 2011, DISH Network Corporation's Board of Directors declared a non-recurring dividend of $2.00 per share on outstanding Class A and Class B common stock. The dividend will be payable in cash on Dec. 1, 2011, to shareholders of record on Nov. 17, 2011.
     
  2. Nov 7, 2011 #2 of 14
    phrelin

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    Northern...
    Oh, oh. This is the first time I've seen what I would call "distortional spin" in the news release, meaning game playing with the numbers to attempt to influence shallow analysts. And I don't understand the dividend in relationship to the balance sheet.

    We now have "segments", Dish Network and Blockbuster with segment reporting in the notes on page number 33 (page 43 in the PDF).

    In fact, the segment now known as Dish Network did see a 1.5% revenue gain over the same quarter last year and a 4% gain for the first three quarters over the first three quarters last year.

    But what's weird is the quarterly net income for the segment is up 30% year-to-year and 64% over the 9 month figures year-to-year.

    Not really buried, but perhaps slipped in when I wasn't paying attention is the following which contains a substantial revenue increase:
    That quarterly number was $362 million versus $12 million year to year.

    Which brings us back to reality. Net income on the Blockbuster segment for the quarter was a negative $177,000. Blockbusters revenue was $347 million. So I assume the Dish Network segment's Equipment and merchandise sales, rental and other quarterly revenue rose to around $15 million from $12 million.

    I'm not sure that $2 dividend totaling $892 million in cash is such a good idea when the quarterly shows only $1 billion in cash.

    Finally, Echostar took a large quarterly loss. Yeah, it's a separate company. But basically its quarterly revenue from Dish Network dropped 10% year-to-year. Buried in all that is the Sling Media operation. I see all these adapters and the 922 technology and wonder where's the revenue from that technology.

    Oh well....
     
  3. Nov 7, 2011 #3 of 14
    Stewart Vernon

    Stewart Vernon Roving Reporter Staff Member Super Moderator DBSTalk Club

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    Dish and Echostar are officially two unique entities... so while we know they have close ties, they have to keep their numbers separate.

    I think this is the first quarterly report since Dish bought Blockbuster, though, so it might make sense for them to try and differentiate those numbers.

    Dish owns Blockbusters, so while they may be trying to operate them as separate entities still... it isn't like Echostar which actually is a separate company.
     
  4. Nov 7, 2011 #4 of 14
    phrelin

    phrelin Hall Of Fame DBSTalk Club

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    Northern...
    Yes, I agree. What I'm concerned about is that Dish is not compensating Echostar enough for the Sling Media products.

    Yep. But what Dish has done is in the news release which offered up this:
    And they don't break down the entities on the main financial statements. You have to go to the notes on page number 33 (page 43 in the PDF) to find out that the Dish Network operations revenue is up only 1.4%.

    I understand the desire not to emphasize that the Dish Network segment had only 13.945 million subscribers as of September 30, 2011 as analysts tend to think that's the only number in the statements. In fact they had 13.851 million subscribers as of September 30, 2009, so they are still up 94,000 subscribers compared to two years ago.

    But a year ago they had 14.289 million subscribers which seemed like a huge gain that now seems lost.

    Looking forward, one has to take note of four things:
    • The Dish segment has frozen rates on packages until February 2013
    • The Dish segment is paying higher retransmission fees
    • The Dish segment is losing subscribers
    • The Dish Network corporation Board of Directors has chosen to pay out $0.892 billion in cash dividends when it is reporting it has only $1.046 billion in cash.
    Perhaps management thinks that when the one year freebie expires in February, they'll see higher revenues from premiums or there'll be higher revenues from the $10 Platinum/Blockbuster thing. Or maybe they'll produce more revenue from more 922's or the XiP will come out sooner than December 2012.

    I don't know what they have in mind. I like what we have seen in all the speculation on the acquisitions. But my tendency is to look at these financials taking on a bean counter viewpoint. I see the beans slipping away.
     
  5. Nov 8, 2011 #5 of 14
    Stewart Vernon

    Stewart Vernon Roving Reporter Staff Member Super Moderator DBSTalk Club

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    It's murky to be sure.

    Whenever Dish adds subscribers their profit is down... whenever they lose subscribers their profit is up.

    Other than that, the rest is hard to decipher.

    I still maintain the same argument I've had for a while... IF you dig at the numbers, Dish is losing customers at a reasonable rate compared to their competition.

    The problem is... Dish has NOT been good at new customer acquisition... and I know they hired some new folk and are supposed to be working on that, but most of that started at the end of the just-reported quarter.

    I have seen a couple of commercials for the Movie Pass that are much slicker than Dish has made in the past... so that's a start.

    I think a lot of people still don't even think about Dish... but think DirecTV vs their local cable... I think Dish has quietly been the little satellite company that could... and hope they are trying to get "out there" a bit more with the Blockbuster acquisition to increase their familiarity to potential customers.
     
  6. Nov 8, 2011 #6 of 14
    Herdfan

    Herdfan Well-Known Member

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    Teays...
    While dividends are thought of as being paid from profits, they are technically paid from Retained Earnings which is part of the equity section of the balance sheet.
     
  7. Nov 8, 2011 #7 of 14
    tcatdbs

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    If they would offer "New Customer Rates" to existing subscribers after their 12 month contract is up, they wouldn't lose nearly as many subs. Cable, Direct and Dish all offer "specials" that cause subs to bounce from one to another... maybe if everyone offered one "low" rate across the board, customers would stay put.

    My rate going from $45 to $75 after the "Absolute" package drop, and now I'm getting close to my $20 worth of freebies expiring... no way I'll stick around at $85-$95 for what I was paying $45 for a year ago.
     
  8. Nov 8, 2011 #8 of 14
    Stewart Vernon

    Stewart Vernon Roving Reporter Staff Member Super Moderator DBSTalk Club

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    Sure they would... because "give an inch, take a mile" is in play.

    IF rates were lowered, that would become the new normal... and people would demand a new better deal when their term was up. It is the nature of people to keep wanting more.

    Also, giving existing customers the new customer discount in perpetuity means Dish (or any company) would be always on a tight profit margin... We like new satellite launches and more channels and new equipment... they get to spend on those things by making profit now. Cut the profit margin, and those things get fewer and farther between.
     
  9. Nov 8, 2011 #9 of 14
    phrelin

    phrelin Hall Of Fame DBSTalk Club

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    Northern...
    That I understand, but reality is they are paid from available cash which this time will be depleted significantly if I read the balance sheet correctly.

    By the way, usually Charlie makes these things work. But the new guy working for him has a history of bankrupting companies.
     
  10. phrelin

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    Northern...
    From The Morning Bridge:
     
  11. R.Ivan

    R.Ivan New Member

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    The one percent at it again???? Good Luck to us all....
     
  12. RasputinAXP

    RasputinAXP Kwisatz Haderach of Cordcuttery

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    ???
     
  13. tampa8

    tampa8 Godfather/Supporter

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    +1
     
  14. Jim5506

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    There is no 1%, we are all 100% - were in this together.
     

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