EBITDA for the quarter increased to $153.8 million and EBITDA margin was 7.5%, compared to an EBITDA loss of $173.0 million in the fourth quarter of 1999. The 1999 EBITDA loss included a one-time fourth quarter pre-tax charge of $272 million related to the discontinuation of certain narrowband wireless businesses at Hughes Network Systems (HNS). Excluding the wireless charge, EBITDA increased 55.4% from $99.0 million in the fourth quarter of 1999. This increase was principally due to one-time favorable adjustments to corporate expenditures primarily related to pension and other employee costs, and higher EBITDA at DIRECTV U.S. generated principally from its larger subscriber base. These were partially offset by increased investments in new businesses such as Hughes Network Systems’s DirecPC(R) business and PanAmSat’s Net-36(TM) broadband Internet initiative.
HUGHES had fourth quarter 2000 earnings2 of $1,058.8 million, compared to a loss2 of $226.7 million in the same period for 1999. The increase was primarily due to a one-time fourth quarter 2000 after-tax gain of $1,132.3 million related to the sale of HUGHES’ satellite manufacturing businesses and the aforementioned increases in EBITDA. These were partially offset by increased depreciation and amortization expense resulting from the mid-1999 United States Satellite Broadcasting (USSB) and Primestar transactions, and the expanded PanAmSat satellite fleet, as well as lower equity losses related to the discontinuation of the DIRECTV Japan business.
