Company Overview of DIRECTV Holdings LLC

DIRECTV Holdings LLC reported unaudited consolidated earnings results for the first quarter ended March 31, 2013. For the quarter, the company reported operating profit before depreciation and amortization of $1,521 million, operating profit of $1,115 million, cash paid for property and equipment of $111 million, cash flow before interest and taxes of $992 million and free cash flow of $682 million on revenues of $5,790 million compared to operating profit before depreciation and amortization of $1,410 million, operating profit of $1,038 million, cash paid for property and equipment of $109 million, cash flow before interest and taxes of $1,211 million and free cash flow of $971 million on revenues of $5,499 million reported a year ago. Revenues increased 5% primarily due to strong ARPU growth along with a larger subscriber base. OPBDA increased 8% principally due to lower subscriber acquisition costs related to the reduction in gross additions, relatively unchanged subscriber services costs, and the absence of NFL Sunday Ticket costs in the quarter. These improvements were partially offset by higher programming costs mostly related to programming supplier rate increases. Operating profit increased 7% mainly due to the OPBDA and OPBDA margin improvements, partially offset by higher depreciation and amortization resulting from increased leased equipment and infrastructure capital expenditures. Income before income taxes was $925 million compared to $851 million reported a year ago. Net income was $590 million compared to $536 million reported a year ago. Net cash provided by operating activities was $1,131 million compared to $1,359 million reported a year ago.

DIRECTV Holdings LLC reported unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2012. For the quarter, the company’s revenues were $6,320 million against $6,029 million a year ago. Operating profit was $1,023 million against $965 million a year ago. Income before income taxes was $831 million against $794 million a year ago. Net income was $546 million against $535 million a year ago. Cash flow before interest and taxes was $910 million against $847 million a year ago. Free cash flow was $680 million against $646 million a year ago. Net cash provided by operating activities was $1,147 million against $1,086 million a year ago. For the year, the company’s revenues were $23,235 million against $21,872 million a year ago. Operating profit was $4,153 million against $3,702 million a year ago. Income before income taxes was $3,346 million against $3,042 million a year ago. Net income was $2,125 million against $1,935 million a year ago. Net cash provided by operating activities was $4,115 million against $3,571 million a year ago. Cash paid for property and equipment was $541 million against $567 million a year ago.

DIRECTV Holdings LLC announced earnings results for the third quarter and nine months ended September 30, 2012. For the quarter, the company reported revenues of $5,769 million compared with $5,421 million for the same period a year ago. Operating profit was $876 million compared with $800 million for the same period a year ago. Income before income tax was $705 million compared with $629 million for the same period a year ago. Net income was $439 million compared with $392 million for the same period a year ago. Cash paid for property and equipment was $137 million compared with $159 million for the same period a year ago. Free cash flow was $275 million compared with $267 million for the same period a year ago. For the nine months, the company reported revenues of $16,915 million compared with $15,843 million for the same period a year ago. Operating profit was $3,130 million compared with $2,737 million for the same period a year ago. Income before income tax was $2,515 million compared with $2,248 million for the same period a year ago. Net income was $1,579 million compared with $1,400 million for the same period a year ago. Net cash provided by operating activities was $2,960 million compared with $2,424 million for the same period a year ago. Cash paid for property and equipment was $377 million compared with $404 million for the same period a year ago.