EchoStar's Costly Customers: Fool by Numbers

On Nov. 7, satellite TV service provider EchoStar (Nasdaq: DISH  ) released third-quarter 2006 earnings for the period ending Sept. 30, 2006.

  • The sales growth didn't translate into profits, thanks to higher cost of sales and a hefty increase in tax payments. The company added another million subscribers in the interim for a total of 12.8 million, and they don't come cheap.
  • The fatter cash balance looks good, until you realize that there's an increase in long-term debt. But free cash flow is at least positive -- satellite TV is just a very capital-intensive line of business.
  • You have to appreciate generous share buybacks like EchoStar's. Decreasing your share count by nearly 8% in a year is a very shareholder-friendly thing to do.

(Figures in millions, except per-share data)

Income Statement Highlights

Avg. Est.

Q3 2006

Q3 2005







Net Profit










Diluted Shares




*as calculated

Get back to basics with a look at the income statement.

Margin Checkup

Q3 2006

Q3 2005


Gross Margin




Operating Margin




Net Margin




*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights


Q3 2006

Q3 2005


Cash + ST Invest.




Accounts Rec.









Q3 2006

Q3 2005


Accounts Payable




Long-Term Debt




Learn the ways of the balance sheet.

Cash Flow Highlights

Q3 2006

Q3 2005


Cash From Ops.




Capital Expenditures




Free Cash Flow




Find out why Fools always follow the money.

Related Companies:

  • DirecTV Group (NYSE: DTV  )
  • Comcast (Nasdaq: CMCSA  )
  • Time Warner (NYSE: TWX  )

Related Foolishness:

Time Warner is aMotley Fool Stock Advisorselection.Find more great stocks with afree 30-day trialof our premium newsletter service.

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so for more of our in-depth discussion of what the numbers mean.

At the time of publication,Fool contributorAnders Bylund had no position in any company mentioned. Fool rules are here.

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