|
|
| DIRECTV Holdings LLC |
| Non-GAAP Financial Reconciliation and
Other Data |
| (Unaudited) |
|
| Pre-Marketing Margin Reconciliation
to Operating Profit |
| |
|
|
|
|
For the Quarter Ended |
|
Guidance |
| |
|
March 31, |
|
Full Year |
| |
|
2003 |
|
2002 |
|
2003 |
| |
|
|
|
|
|
|
|
| |
|
(dollars in millions) |
| Operating profit |
|
$ 106.0 |
|
$ 8.6 |
|
~$ 375 |
| Add back: |
Subscriber acquisition costs |
|
|
|
|
| |
|
Third party customer acquisitions |
325.0 |
|
368.2 |
|
** |
| |
|
Direct customer acquisitions |
55.8 |
|
22.9 |
|
** |
| |
Depreciation and amortization expense |
124.4 |
|
85.1 |
|
** |
| |
Retention, upgrade and other marketing costs |
93.8 |
|
77.6 |
|
** |
|
|
|
|
|
|
|
|
| Subtotal |
|
|
599.0 |
|
553.8 |
|
~2,545 |
|
|
|
|
|
|
|
|
| |
|
|
| Pre-marketing margin* |
|
$ 705.0 |
|
$ 562.4 |
|
~ $2,920 |
|
|
|
|
|
|
|
|
Pre-marketing margin as a percentage
of revenue* |
 41.3% |
|
38.4% |
|
~40% |
|
| Other Data |
| |
|
|
|
|
For the Quarter Ended |
|
|
| |
|
March 31, |
|
|
| |
|
2003 |
|
2002 |
|
|
| |
|
|
|
|
|
|
| |
|
(dollars except where noted) |
|
|
| Average monthly revenue per subscriber
(ARPU) |
$ 59.10 |
|
$ 56.70 |
|
|
| Average monthly subscriber churn -% |
|
1.5% |
|
1.6% |
|
|
| Average subscriber acquisition costs (SAC) |
$ 545 |
|
$ 510 |
|
|
| Total number of subscribers - platform
(000's) |
11,421 |
|
10,544 |
|
|
| Total owned and operated subscribers (000's) |
9,768 |
|
8,793 |
|
|
(*) Pre-marketing margin is a measure of profitability before subscriber acquisition costs; retention, upgrade and other marketing costs; and depreciation and amortization. Pre-marketing margin is not presented as an alternative measure of operating results or cash flow from operations, as determined in accordance with accounting principles generally accepted in the United States of America. HUGHES and DIRECTV U.S. management use pre-marketing margin to aid in the evaluation of DIRECTV U.S.' operating performance. HUGHES and DIRECTV U.S. believe pre-marketing margin is a measure of performance used by some investors, equity analysts and others to make informed investment decisions. Pre-marketing margin is used as an additional analytical indicator of profitability. HUGHES and DIRECTV management believe that pre-marketing margin is a common measure used to compare DIRECTV U.S.' operating performance to other multi-channel video providers. Pre-marketing margin does not reflect funds available for investment in the business of DIRECTV, dividends or other discretionary uses. Pre-marketing margin as presented herein may not be comparable to similarly titled measures reported by other companies.
(**)No individual guidance provided.
|
