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DISH Network's (DISH) CEO Charlie Ergen on Q1 2016 Results - Earnings Call Transcript

Q1 2016 Earnings Conference Call

April 20, 2016, 12:00 ET


Stanton Dodge - General Counsel

Steve Swain - CFO

Paul Orban - CAO

Erik Carlson - President & COO

Charlie Ergen - Chairman & CEO

Roger Lynch - CEO, Sling TV

Tom Cullen - EVP, Corporate Development


Tuna Amobi - S&P Capital IQ

Brett Feldman - Goldman Sachs

John Hodulik - UBS

Jonathan Atkin - RBC Capital Markets

Kannan Venkateshwar - Barclays Capital

Phil Cusick - JPMorgan

Michael Morris - Guggenheim Securities

Marci Ryvicker - Wells Fargo Securities

Walter Piecyk - BITG

Alex Byers - POLITICO

Jimmy Schaeffler - The Carmel Group

Scott Moritz - Bloomberg


Good afternoon. My name is Chris and I will be your conference operator today. At this time I would like to welcome everyone to the DISH Network Corporation Q1 2016 earnings conference call. [Operator Instructions]. Thank you. Stanton Dodge, you may begin your conference.

Stanton Dodge

Thanks, Chris. Thanks for joining us, everyone. I am Stan Dodge, General Counsel of DISH Network. Jason is out today but I am joined by Charlie Ergen, our Chairman and CEO; Erik Carlson, President and COO of DISH Network; Tom Cullen, our EVP of Corporate Development; Roger Lynch, CEO of Sling TV; Bernie Han, our EVP of Strategic Planning; Steve Swain, our CFO; Paul Orban, our Chief Accounting Officer; and Bob Toevs, our Vice President of Corporate Communications. Before we open it up for Q&A, we need to do our Safe Harbor disclosures. We ask that media representatives not identify participants or their firms in your reports. We also do not allow audio taping and ask that you respect that.

All statements we make during this call that are not statements of historical fact constitute forward-looking statements which involve known and unknown risks, uncertainties and other factors that could cause our actual results to be materially different from historical results and from any future results expressed or implied by such forward-looking statements. For a list of those factors, please refer to the front of our 10-Q. All cautionary statements that we make during this call should be understood as being applicable to any forward-looking statements that we make wherever they appear. You should carefully consider the risks described in our reports and should not place undue reliance on any forward-looking statements which we assume no responsibility for updating.

As part of the process for the broadcast incentive auction, we filed an application to potentially participate as a bidder for those spectrum aspects. Because of the FCC's anti-collusion rules, we're not able to discuss what, if any, spectrum resources we may intend to bid on and we will not be answering any questions about the incentive auction during today's call.

Operator, we will now open up the call first for analysts Q&A and then media Q&A.

Question-and-Answer Session


[Operator Instructions]. Your first question comes from the line of Tuna Amobi from S&P Capital IQ. Your line is open.

Tuna Amobi

Just real quick, first, on interest expense, it seemed like there was a major swing there in terms of capitalized interest. I know you had alluded to that in the last call. But I'm wondering if this is the steady-state that you would expect for the rest of the year or are we likely to see other swings in the coming quarters for the rest of the year?

Steve Swain

You're right. I mentioned it on last quarter's call. Because our total spectrum carrying value is approximately $15 billion, effectively all of our interest expense will be capitalized off of our income statement throughout 2016.

Tuna Amobi

And is that likely to continue beyond 2016 or is that it?

Steve Swain

It is likely.

Paul Orban

This is Paul. It will continue as long as we're commercializing or developing a spectrum.