DISH Network (DISH) - 2020 Q2 - Quarterly Report

Financial Performance - Total revenue for the three months ended June 30, 2020, was $3,187,090, a decrease of 0.2% compared to $3,211,312 for the same period in 2019[47]. - Subscriber-related revenue was $3,149,813 for the three months ended June 30, 2020, down from $3,162,572 in the prior year, reflecting a decline of approximately 0.4%[47]. - Operating income for the three months ended June 30, 2020, increased to $637,650, compared to $430,732 for the same period in 2019, representing a growth of 48.1%[47]. - Net income attributable to DISH Network for the three months ended June 30, 2020, was $452,343, up from $317,043 in the same period last year, marking a rise of 42.6%[47]. - Total costs and expenses for the three months ended June 30, 2020, were $2,549,440, a decrease of 8.3% from $2,780,580 in the prior year[47]. - Subscriber acquisition costs totaled $199,724 for the three months ended June 30, 2020, down 16.1% from $238,078 in the same period of 2019[47]. - Basic net income per share attributable to DISH Network was $0.86 for the three months ended June 30, 2020, compared to $0.68 for the same period in 2019, an increase of 26.5%[47]. - Comprehensive income attributable to DISH Network for the three months ended June 30, 2020, was $449,481, compared to $317,249 in the same period last year, reflecting a growth of 41.6%[47]. - The company reported a decrease in subscriber-related expenses to $1,884,743 for the three months ended June 30, 2020, down from $2,000,961 in the prior year, a reduction of 5.8%[47]. Assets and Liabilities - Total current assets increased to $4,108,574 thousand as of June 30, 2020, compared to $4,015,100 thousand as of December 31, 2019, reflecting a growth of approximately 2.3%[43]. - Cash and cash equivalents rose to $2,589,817 thousand, up from $2,443,643 thousand, indicating an increase of about 5.9%[43]. - Total liabilities decreased to $20,732,122 thousand from $21,114,788 thousand, representing a reduction of approximately 1.8%[43]. - Long-term debt and finance lease obligations decreased to $10,985,852 thousand from $12,968,229 thousand, a decline of about 15.3%[43]. - Total stockholders' equity rose to $12,159,537 thousand, up from $11,564,072 thousand, reflecting an increase of about 5.1%[43]. - The current portion of long-term debt and finance lease obligations increased to $2,073,410 thousand from $1,171,366 thousand, a significant rise of approximately 77%[43]. - Marketable investment securities decreased significantly to $40,202 thousand from $416,704 thousand, a decline of about 90.4%[43]. Cash Flow and Investments - Net cash flows from operating activities for the six months ended June 30, 2020, were $1.71 billion, an increase from $1.35 billion in the prior year[53]. - Cash, cash equivalents, and restricted cash at the end of the period were $2.65 billion, up from $1.92 billion at the end of June 2019[53]. - The company redeemed and repurchased senior notes totaling $1.1 billion during the financing activities[53]. - The company incurred an impairment of long-lived assets amounting to $356.42 million during the six months ended June 30, 2020[53]. - The company expects expenditures for its 5G Network Deployment to be approximately $10 billion, excluding capitalized interest[67]. - Anticipated expenditures for wireless projects in 2020 are estimated to be between $250 million and $500 million, excluding capitalized interest[67]. Subscriber Information - As of June 30, 2020, DISH Network had 11.272 million Pay-TV subscribers, including 9.017 million DISH TV subscribers and 2.255 million SLING TV subscribers[56]. - The weighted-average common shares outstanding for the three months ended June 30, 2020, were 524,292, an increase from 469,655 in the same period of 2019[47]. Spectrum and Regulatory Commitments - The company has committed to offer 5G broadband service to at least 70% of the U.S. population by June 14, 2023, as part of its FCC build-out commitments[65]. - The company is required to offer nationwide postpaid retail mobile wireless service within one year of the Closing Date[62]. - The company must comply with various build-out commitments to avoid penalties totaling up to $2.2 billion to the FCC[63]. - The company entered into a Spectrum Purchase Agreement to acquire Sprint's 800 MHz spectrum for approximately $3.59 billion[177]. - The company must provide the DOJ with deployment efforts updates every fiscal quarter, including the number of towers deployed and mobile wireless subscriptions[188]. Impairments and Charges - A non-cash impairment charge of $253 million was recorded in Q1 2020 due to the revision of build-out deadlines for the narrowband IoT deployment[67]. - The company recorded a non-cash impairment charge of $356.4 million for long-lived assets during the first quarter of 2020, which included $103 million related to AWS-4 satellites and $253 million for narrowband IoT deployment[91][92][94]. - The company impaired $227 million for capitalized costs related to the narrowband IoT deployment during the six months ended June 30, 2020[152]. Research and Development - Research and development costs totaled $5 million for the three months ended June 30, 2020, compared to $6 million for the same period in 2019, reflecting a decrease of approximately 16.67%[120].