DISH Network (US:DISH)2022-05-06 10:09Financial Performance - Total revenue for March 2022 was $4,330,620, a decrease of 3.7% from $4,497,853 in March 2021[22] - Service revenue decreased to $4,075,122 in March 2022 from $4,209,471 in March 2021, reflecting a decline of 3.2%[22] - Operating income for March 2022 was $550,360, down 36.3% from $864,576 in March 2021[22] - Net income attributable to DISH Network for March 2022 was $432,651, a decrease of 31.3% compared to $630,224 in March 2021[22] - Basic net income per share attributable to DISH Network was $0.82 in March 2022, down from $1.20 in March 2021[22] - Diluted net income per share attributable to DISH Network was $0.68 in March 2022, compared to $0.99 in March 2021, a decline of 31.3%[22] - For the three months ended March 31, 2022, net income was $448.846 million, compared to $641.563 million for the same period in 2021[28] - Cash flows from operating activities for the three months ended March 31, 2022, were $705.344 million, down from $1,125.498 million in the prior year[28] - Net income attributable to DISH Network for the three months ended March 31, 2022, was $432.651 million, compared to $630.224 million for the same period in 2021, representing a decrease of approximately 31.4%[59] - Basic net income per share attributable to DISH Network was $0.82 for Q1 2022, down from $1.20 in Q1 2021, reflecting a decline of 31.7%[59] - Diluted net income per share attributable to DISH Network was $0.68 for Q1 2022, compared to $0.99 in Q1 2021, indicating a decrease of 31.3%[59] Assets and Liabilities - Total current liabilities increased to $8,047,594 in March 2022 from $6,515,886 in December 2021, representing a rise of 23.5%[19] - Total assets as of March 31, 2022, were $49,201,652, up from $48,001,725 as of December 31, 2021, indicating a growth of 2.5%[19] - Total liabilities rose to $32,810,015 in March 2022 from $32,078,612 in December 2021, an increase of 2.3%[19] - The company had a balance of $11.218 billion in accumulated earnings as of March 31, 2022[30] - Total cash, cash equivalents, and restricted cash at the end of the period was $2.799 billion, down from $4.535 billion at the end of the previous year[28] - Total current marketable investment securities as of March 31, 2022, amounted to $538.775 million, a significant decrease from $2.975 billion as of December 31, 2021[64] - As of March 31, 2022, the total marketable investment securities, restricted cash, and cash equivalents were valued at $784.871 million, down from $8.461 billion as of December 31, 2021[64] - The company reported a total long-term debt and finance lease obligations of $21,425,682 thousand as of March 31, 2022, slightly up from $21,417,016 thousand as of December 31, 2021[101] - The fair value of the company's long-term debt was estimated at $20,466,929 thousand as of March 31, 2022[102] Cash Flow and Investments - Cash and cash equivalents increased to $2,696,478 in March 2022 from $2,428,188 in December 2021, reflecting a rise of 11.1%[19] - The company reported net cash flows from investing activities of $(5,642.626) million for the three months ended March 31, 2022[28] - The company recognized $15.285 million in non-cash, stock-based compensation for the three months ended March 31, 2022[28] - The company reported capitalized interest of $267.305 million for Q1 2022, compared to $208.452 million in Q1 2021[63] - The company has invested approximately $30 billion in wireless spectrum licenses and related investments, excluding $7 billion of capitalized interest[33] - The company has invested approximately $20 billion to acquire wireless spectrum licenses and plans to commercialize them through a cloud-native, Open Radio Access Network (O-RAN) based 5G network[35] - The company expects capital expenditures for its 5G Network Deployment to be approximately $10 billion, including a long-term agreement with Samsung for $1.2 billion[132] Subscriber and Market Information - As of March 31, 2022, DISH Network had 10.245 million Pay-TV subscribers, including 7.993 million DISH TV subscribers and 2.252 million SLING TV subscribers[31] - The Retail Wireless segment had 8.203 million subscribers as of March 31, 2022[32] - DISH Network plans to deploy a 5G broadband network capable of serving 20% of the U.S. population by June 2022 and 70% by June 2023[140] - The company has over 60 market areas under construction, representing approximately 260 cities with populations of at least 50,000[140] 5G Network Deployment - The company aims to deploy a facilities-based 5G broadband network covering 20% of the U.S. population by June 2022 and 70% by June 2023, with over 60 market areas and approximately 260 cities under construction[35] - Significant additional investments will be required to complete the 5G Network Deployment, including research and development, wireless testing, and infrastructure upgrades[35] - Future capital requirements for 2022 are expected to be significant due to 5G network deployment and potential purchases of additional wireless spectrum licenses[103] - The company expects to incur significant additional expenses related to research and development, wireless testing, and ongoing upgrades to the wireless network infrastructure[141] - The company may need to raise additional capital to fund its 5G Network Deployment and related activities, which may not be available on favorable terms[142] Legal and Regulatory Matters - DISH Network L.L.C. filed petitions for reexamination of the 784, 799, 318, and 970 patents, with the United States Patent and Trademark Office confirming the patentability of the challenged claims[193] - A class action complaint was filed against DISH Network regarding fiduciary breaches in the management of its 401(k) Plan, alleging excessive expenses and underperforming funds[213] - The FCC has determined that DISH Network has a controlling interest in Northstar Wireless and SNR Wireless, affecting their eligibility for bidding credits[150] - The AWS-3 Licenses require reliable signal coverage to 40% of the population by October 2021 and 75% by October 2027, with potential penalties for noncompliance[161] - The FCC licenses for Northstar Wireless and SNR Wireless may expire in October 2027 unless renewed, with no guarantees of renewal[162] Other Financial Obligations - The company has $3,095,429 thousand in total lease payments due for operating leases over the next five years, with the largest payment of $218,969 thousand due in 2026[99] - The company has removed certain obligations for Northstar Wireless and SNR Wireless regarding prepayment of outstanding loan amounts[172][181] - The Northstar Purchase Agreement involved the acquisition of 80% of Northstar Manager's Class B Common Interests in Northstar Spectrum for approximately $312 million, resulting in a 97% ownership stake[40] - The value of the Northstar Put Right has accrued to approximately $88 million as of March 31, 2022, indicating potential future financial obligations[39] - The SNR Put Right has accrued to approximately $323 million as of March 31, 2022, pending FCC approval for the sale[178]