|
|
SELECTED SEGMENT DATA
|
(Dollars in Millions) |
|
|
|
(Unaudited) |
|
Three Months |
|
Six Months |
|
|
|
|
Ended June 30, |
|
Ended June 30, |
|
|
|
|
|
|
|
|
|
|
|
|
|
2003 |
|
|
2002 |
|
|
2003 |
|
|
2002 |
|
|
|
DIRECT-TO-HOME BROADCAST |
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenues |
$ |
1,943.1 |
|
$ |
1,776.3 |
|
$ |
3,791.0 |
|
$ |
3,406.7 |
|
|
|
Operating
Profit Before Depreciation and Amortization (1) |
|
299.4 |
|
|
60.5 |
|
|
510.7 |
|
|
39.6 |
|
|
|
Operating Profit Before Depreciation and Amortization
Margin (1) |
|
15.4% |
|
|
3.4% |
|
|
13.5% |
|
|
1.2% |
|
|
|
Operating Profit (Loss) |
$ |
129.9 |
|
$ |
(85.2) |
|
$ |
168.2 |
|
$ |
(249.2) |
|
|
|
Operating Profit Margin |
|
6.7% |
|
|
N/A |
|
|
4.4% |
|
|
N/A |
|
|
|
Depreciation and Amortization |
$ |
169.5 |
|
$ |
145.7 |
|
$ |
342.5 |
|
$ |
288.8 |
|
|
|
Capital Expenditures |
|
65.6 |
|
|
140.0 |
|
|
138.8 |
|
|
264.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SATELLITE SERVICES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenues |
$ |
203.5 |
|
$ |
209.3 |
|
$ |
403.3 |
|
$ |
416.4 |
|
|
|
Operating
Profit Before Depreciation and Amortization (1) |
|
149.3 |
|
|
150.7 |
|
|
297.9 |
|
|
301.8 |
|
|
|
Operating Profit Before Depreciation and Amortization
Margin (1) |
|
73.4% |
|
|
72.0% |
|
|
73.9% |
|
|
72.5% |
|
|
|
Operating Profit
|
$ |
74.4 |
|
$ |
61.0 |
|
$ |
150.7 |
|
$ |
118.1 |
|
|
|
Operating Profit Margin |
|
36.6% |
|
|
29.1% |
|
|
37.4% |
|
|
28.4% |
|
|
|
Depreciation and Amortization |
$ |
74.9 |
|
$ |
89.7 |
|
$ |
147.2 |
|
$ |
183.7 |
|
|
|
Capital Expenditures |
|
21.7 |
|
|
109.5 |
|
|
54.8 |
|
|
183.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NETWORK SYSTEMS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenues |
$ |
299.6 |
|
$ |
254.4 |
|
$ |
547.0 |
|
$ |
497.2 |
|
|
|
Operating
Profit Before Depreciation and Amortization (1) |
|
(9.2) |
|
|
(27.0) |
|
|
(31.4) |
|
|
(57.5) |
|
|
|
Operating Loss |
|
(29.8) |
|
|
(43.6) |
|
|
(69.6) |
|
|
(92.1) |
|
|
|
Depreciation and Amortization |
|
20.6 |
|
|
16.6 |
|
|
38.2 |
|
|
34.6 |
|
|
|
Capital Expenditures |
|
55.3 |
|
|
87.8 |
|
|
109.4 |
|
|
216.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ELIMINATIONS and OTHER |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenues |
$ |
(75.5) |
|
$ |
(47.7) |
|
$ |
(143.3) |
|
$ |
(103.2) |
|
|
|
Operating
Profit Before Depreciation and Amortization (1) |
|
(34.8) |
|
|
(32.6) |
|
|
(67.5) |
|
|
32.2 |
|
|
|
Operating Profit (Loss) |
|
(34.5) |
|
|
(30.9) |
|
|
(67.4) |
|
|
36.8 |
|
|
|
Depreciation and Amortization |
|
(0.3) |
|
|
(1.7) |
|
|
(0.1) |
|
|
(4.6) |
|
|
|
Capital Expenditures |
|
29.3 |
|
|
13.1 |
|
|
56.4 |
|
|
32.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL |
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenues |
$ |
2,370.7 |
|
$ |
2,192.3 |
|
$ |
4,598.0 |
|
$ |
4,217.1 |
|
|
|
Operating
Profit Before Depreciation and Amortization (1) |
|
404.7 |
|
|
151.6 |
|
|
709.7 |
|
|
316.1 |
|
|
|
Operating Profit Before Depreciation and Amortization
Margin (1) |
|
17.1% |
|
|
6.9% |
|
|
15.4% |
|
|
7.5% |
|
|
|
Operating Profit (Loss) |
$ |
140.0 |
|
$ |
(98.7) |
|
$ |
181.9 |
|
$ |
(186.4) |
|
|
|
Operating Profit Margin |
|
5.9% |
|
|
N/A |
|
|
4.0% |
|
|
N/A |
|
|
|
Depreciation and Amortization |
$ |
264.7 |
|
$ |
250.3 |
|
$ |
527.8 |
|
$ |
502.5 |
|
|
|
Capital Expenditures |
|
171.9 |
|
|
350.4 |
|
|
359.4 |
|
|
696.3 |
|
|
(1) Operating profit (loss) before depreciation
and amortization, which is a non-GAAP financial measure, can be calculated
by adding amounts under the caption "Depreciation and amortization"
to "Operating Profit (Loss)", as presented in the Consolidated
Statements of Operations and Available Separate Consolidated Net Income
(Loss). This measure should be used in conjunction with other GAAP financial
measures and is not presented as an alternative measure of operating results,
as determined in accordance with accounting principles generally accepted
in the United States of America. Hughes’ management and its Board
of Directors use operating profit before depreciation and amortization
to evaluate the operating performance of Hughes and its business segments,
to allocate resources and capital to its business segments and as a measure
of performance for incentive compensation purposes. Hughes’ management
also uses this metric to measure income generated from operations that
could be used to fund capital expenditures, service debt, or pay taxes.
Depreciation and amortization expense primarily represents an allocation
to current expense of the cost of historical capital expenditures and
for intangible assets resulting from prior business acquisitions. To compensate
for the exclusion of depreciation and amortization from operating profit,
Hughes’ management and Board of Directors separately measure and
budget for capital expenditures and business acquisitions.
Hughes believes this measure is useful to investors, along with other
GAAP measures (such as revenues, operating profit and net income), to
compare Hughes’ operating performance to other communications, entertainment
and media service providers. Hughes believes that investors use current
and projected operating profit before depreciation and amortization and
similar measures to estimate Hughes’ current or prospective enterprise
value and make investment decisions. This metric provides investors with
a means to compare operating results exclusive of depreciation and amortization.
Hughes’ management believes this is useful given the significant
variation in depreciation and amortization expense that can result from
the timing of capital expenditures, the capitalization of intangible assets
in purchase accounting, potential variations in expected useful lives
when compared to other companies and periodic changes to estimated useful
lives.
Operating profit before depreciation and amortization margin is calculated
by dividing operating profit before depreciation and amortization by total
revenues.
All 2003 2Q Results
|
