SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549-1004
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report
(Date of earliest event reported) October 3, 2000
----------------
GENERAL MOTORS CORPORATION
-----------------------------------------------------
(Exact name of registrant as specified in its charter)
STATE OF DELAWARE 1-143 38-0572515
---------------------------- ----------------------- -------------------
(State or other jurisdiction (Commission File Number) (I.R.S. Employer
of incorporation) Identification No.)
300 Renaissance Center, Detroit, Michigan 48265-3000
-------------------------------------------- ----------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (313)-556-5000
--------------
- 1 -
ITEM 5. OTHER EVENTS
On October 12, 2000, a news release was issued on the subject of third
quarter consolidated earnings for General Motors Corporation (GM). The news
release did not include certain financial statements, related footnotes and
certain other financial information that will be filed with the Securities and
Exchange Commission as part of GM's Quarterly Report on Form 10-Q. Following is
the third quarter earnings release for GM, and their subsidiary Hughes
Electronics Corporation's (Hughes) earnings release dated October 11, 2000.
GM REPORTS EARNINGS PER SHARE OF $1.55; NET INCOME TOTALS $829 MILLION
-- Record third-quarter earnings per share of $1.55, up from $1.33 in the
same quarter of 1999.
-- Net income $829 million, compared with $877 million in year-ago
third-quarter period.
-- Record net income at GMAC and a net-income increase in North America.
DETROIT -- General Motors Corp. (NYSE: GM) today reported $1.55 diluted
earnings per share of GM $1-2/3 par value common stock in the third quarter of
2000, an increase of more than 16 percent from $1.33 in the prior-year period.
The increase in earnings per share was primarily due to the continued focus on
improving shareholder returns through ongoing stock-repurchases.
"We're pleased that GMAC had record profits and GM's North American
automotive operations generated continued strong results and posted improved net
income during the third quarter compared with the same period last year," said
GM Chairman John F. Smith, Jr. "However, overall automotive net income was down
slightly in the third quarter primarily due to the profit decline in Europe,
which along with the other regions faced unrelenting competitive pressures
during the period."
GM North America reported third-quarter net income of $728 million, up 8.5
percent from $671 million in the third quarter of 1999. "Demand remains strong
in the North American market, but the pricing environment is extremely
competitive and is forcing all players to accelerate cost reductions," Smith
said.
GM President and Chief Executive Officer G. Richard Wagoner, Jr., noted
that in North America vehicle sales remained strong in the third quarter despite
production ramp-ups at two North American truck assembly plants that resulted in
lower truck production. Higher incentives and other marketing costs were more
than offset by continued improvements in material and manufacturing costs.
"These results reinforce the need to step-up our efforts to eliminate waste
and lower costs," Wagoner said. "But we will not take our eye off our objective
of becoming a fast-moving, innovative, product-focused company.
"The industry continues to venture into new territory -- near-record demand
mixed with unprecedented price pressures and intensely strong competition on all
fronts. It has heightened our sense of urgency to drive toward our vision
objectives," Wagoner said.
Results in the European market were affected by a critical model changeover
-- the launch of the new Opel/Vauxhall Corsa, GM's highest volume model. This
start-up combined with overall unfavorable country mix and intensifying price
pressures hurt the European results.
GM's Latin America/Africa/Mid-East region posted its fourth-consecutive
profitable quarter despite the start-up of GM's new assembly plant in Brazil.
The modest loss in the Asia-Pacific region was primarily due to the start-up at
GM Thailand.
- 2 -
Wagoner said GM's aggressive future-product plan and its global growth
strategy would not be interrupted due to the challenging environment.
"We're focused globally on bringing out innovative new products and
services that will delight our customers, attract new ones and boost our bottom
line," Wagoner said. "Examples include the new Corsa and the pending launch of
the exciting Opel/Vauxhall Speedster in Europe. In North America, there's the
coming debut of the Chevrolet Avalanche with its unique "midgate" between the
spacious cabin and cargo bed, the Buick Rendezvous "crossover" sport-utility
vehicle (SUV), and our all-new midsize SUVs, as well as the expansion of OnStar
services.
"All of our business priorities -- innovative products and services,
e-business leadership, growth in the Asian-Pacific region and proactive
participation in the industry's consolidation, as well as strong business
results -- remain unchanged," Wagoner said.
GMAC delivered record third-quarter results despite the impact of higher
short-term interest rates in North America and Europe. GMAC's mortgage operation
was the subsidiary's biggest contributor to the earnings improvement, due to
lower servicing costs and an increase in domestic mortgage originations.
Hughes Electronics' net sales and revenues increased 4.5 percent to $2.1
billion in the third quarter, from $2.0 billion in the same period a year ago.
"The increase was driven primarily by continued growth in the DIRECTV business,
which added a record 450,000 net subscribers in the United States during the
quarter," said GM Vice Chairman Harry J. Pearce.
Pearce added that, "Due to rapid consolidation in the media and
telecommunications industries, GM is now considering alternative strategic
transactions involving Hughes and other participants in those industries. Any
such transaction might involve the separation of Hughes from General Motors.
GM's objective in this effort is to maximize the enterprise value of Hughes for
the long-term benefit of the holders of GM's Class H and $1-2/3 par value common
stocks through a structure that maintains the financial strength of General
Motors." No assurance can be given that any transaction will be agreed upon with
any party or that other conditions, including any stockholder or regulatory
approvals, will be satisfied.
In the fourth quarter this year, GM North America and GMAC are expected to
deliver solid results consistent with last year's performance despite the
current market environment. GM Europe is facing a very competitive pricing
environment and is expected to remain in a continuing significant loss position
in the fourth quarter, as are GM Asia Pacific and Hughes.
----------------------
In this news release, use of the words anticipate, expect, should, believe,
plan, intensify, overcome, opportunities and similar words are associated with
forward-looking statements that are inherently subject to numerous risks and
uncertainties. Accordingly, there can be no assurance that the results described
in such forward-looking statements will be realized. The principal risk factors
that may cause actual results to differ materially from those expressed in
forward-looking statements contained in this news release are described in
various documents filed by GM with the U.S. Securities and Exchange Commission,
including GM's Annual Report on Form 10-K for the year ended Dec. 31, 1999,
filed March 13, 2000, (at page II-20).
# # #
- 3 -
HIGHLIGHTS - Q3 Summary Financial Highlights
Three Months Ended
September 30,
---------------------
2000 1999
--------- ---------
Total net sales and revenues
(Dollars in billions) $42.6 $42.8
------ ------
Consolidated net income
(Dollars in millions) $829 $877
.............................................................
Earnings Per Share Attributable to Common Stocks Assuming
Dilution
$1-2/3 par value $1.55 $1.33
Class H $(0.09) $(0.04)(1)
.............................................................
Return on net assets (RONA) for continuing
operations on a four quarter rolling average
excluding Hughes 12.5% 14.2%
.............................................................
Total Cash (Dollars in billions)(2) $13.5 $16.7
.............................................................
Total $1-2/3 shares repurchased (3)
(Shares in millions) 3.8 2.9
Cost of $1-2/3 shares acquired
(Dollars in millions) $237 $202
.............................................................
Net profit margins
Three Months Ended
September 30,
--------------------
2000 1999
--------- ---------
GM North America (GMNA) 2.8% 2.5%
GM Europe (GME) (3.4%) 0.5%
GM Latin America/Africa/Mid-East (GMLAAM) 2.0% (3.0%)
GM Asia/Pacific (GMAP) (1.1%) (6.1%)
Total GM Automotive (GMA) 1.7% 1.7%
Hughes (4.2%) (1.5%)
Total Automotive, Communications
Services, and Other Operations 1.2% 1.3%
GMAC 6.7% 7.6%
Consolidated net income 1.9% 2.0%
(1) The 1999 earnings per share amount attributable to the GM Class H
common stock was restated to reflect the three-for-one stock split of
the GM Class H common stock, in the form of a 200% stock dividend, paid
on June 30, 2000.
(2)Total cash includes cash and marketable securities as well as $3.0
billion invested in short-term fixed income securities of the
Corporation's Voluntary Employees' Beneficiary Association Trust.
(3)Shares repurchased in 1999 were part of the $4 billion repurchase
program and shares repurchased in 2000 were part of the $1.4 billion
repurchase program.
- 4 -
HIGHLIGHTS - Q3 Financial Results
(Dollars in Millions Except
Per Share Amounts)
Three Months Ended
September 30,
---------------------
2000 1999
--------- ---------
Total net sales and revenues $42,606 $42,794
------ ------
Consolidated net income $829 $877
.............................................................
Earnings Attributable to Common Stocks
$1-2/3 par value $878 $866
Class H $(76) $(17)
.............................................................
Basic Earnings Per Share Attributable to Common Stocks
$1-2/3 par value $1.57 $1.35
Class H $(0.09) $(0.04) (2)
.............................................................
Earnings Per Share Attributable to Common Stocks Assuming
Dilution
$1-2/3 par value $1.55 $1.33
Class H $(0.09) $(0.04) (2)
.............................................................
Cash Dividends Per Share of Common Stocks
$1-2/3 par value $0.50 $0.50
Class H $ - $ -
.............................................................
Book Value Per Share of Common Stocks
Sept. 30, Dec. 31, Sept. 30,
2000 1999 1999
-------- ------- --------
$1-2/3 par value $40.09 $27.02 $20.59
Class H $8.02 $5.40(2) $4.12 (2)
.............................................................
See footnotes beginning on page 8.
continues
- 5 -
HIGHLIGHTS - Q3 Net Income by Segment
(Dollars in Millions)
Income/(Loss)
Three Months Ended
September 30,
---------------------
2000 1999
--------- ---------
GM North America (GMNA) $728 $671
GM Europe (GME) (181) 32
GM Latin America/Africa/Mid-East (GMLAAM) 31 (36)
GM Asia/Pacific (GMAP) (10) (54)
----- -----
Total GM Automotive (GMA) $568 $613
Hughes (3) (88) (30)
Other (57) (96)
----- -----
Total Automotive, Communications
Services, and Other Operations $423 $487
GMAC $401 $393
Other 5 (3)
----- -----
Total Financing and Insurance Operations $406 $390
----- -----
Consolidated Net Income $829 $877
===== =====
Net profit margin from
Total GM Automotive (GMA) 1.7% 1.7%
Consolidated net income 1.9% 2.0%
Three Months Ended
September 30, 2000
--------------------------------
GMNA GME GMLAAM GMAP
----- ------ ------ ------
Total net sales and revenues $26,171 $5,339 $1,524 $952
------ ----- ----- ---
Pre-tax income (loss) $1,086 $(265) $(9) $(7)
Income tax expense (benefit) 344 (81) (27) 10
Equity income/(loss) and
minority interests (14) 3 13 7
----- ----- ----- ---
Net income (loss) $728 $(181) $31 $(10)
===== ===== ===== ===
Net profit (loss) margin 2.8% (3.4%) 2.0% (1.1%)
Effective income tax rate 31.7% 30.6% 300.0% (142.9%)
Three Months Ended
September 30, 1999
--------------------------------
GMNA GME GMLAAM GMAP
----- ------ ------ ------
Total net sales and revenues $26,566 $6,391 $1,200 $884
------ ----- ----- ---
Pre-tax income (loss) $1,008 $52 $(79) $12
Income tax expense (benefit) 336 19 (37) 11
Equity income/(loss) and
minority interests (1) (1) 6 (55)
----- ----- ----- ---
Net income (loss) $671 $32 $(36) $(54)
===== ===== ===== ===
Net profit (loss) margin 2.5% 0.5% (3.0%) (6.1%)
Effective income tax rate 33.3% 36.5% 46.8% 91.7%
See footnotes beginning on page 8.
continues
- 6 -
HIGHLIGHTS - Q3 Operating Information
Three Months Ended
September 30,
---------------------
2000 1999
------- -------
Worldwide Wholesale Sales (units in 000s)
United States: Cars 611 581
Trucks 563 618
------ ------
Total United States 1,174 1,199
Canada and Mexico 154 142
------ ------
Total GM North America 1,328 1,341
------ ------
GME 396 446
GMLAAM 181 141
GMAP 134 121
------ ------
Total International 711 708
------ ------
Total Worldwide 2,039 2,049
====== ======
....................................................
Vehicle Unit Deliveries (units in 000s)
United States
Chevrolet - Cars 230 231
- Trucks 420 447
Pontiac 167 153
GMC 123 138
Buick 108 122
Oldsmobile 67 87
Saturn 71 61
Cadillac 51 46
Other 12 13
------ ------
Total United States 1,249 1,298
Canada and Mexico 186 168
------ ------
Total GM North America 1,435 1,466
------ ------
GME 413 483
GMLAAM 153 149
GMAP 128 121
------ ------
Total International 694 753
------ ------
Total Worldwide 2,129 2,219
====== ======
....................................................
Market share
United States
Cars 29.2% 29.5%
Trucks 25.6% 28.2%
Total 27.4% 28.9%
Total North America 27.4% 28.6%
Total Europe 8.9% 9.8%
Latin America (4) 20.7% 20.0%
Asia and Pacific 4.0% 4.0%
Total Worldwide 15.2% 15.9%
.....................................................
U.S. Retail/Fleet Mix
% Fleet Sales - Cars 28.6% 21.8%
% Fleet Sales - Trucks 12.9% 9.5%
Total vehicles 21.3% 15.9%
....................................................
Days Supply of Inventory - U.S.
Cars 71 65
Trucks 105 82
.....................................................
Capacity Utilization %
U.S. and Canada (2-shift rated) 87.7% 91.1%
.....................................................
GMNA
Net Price (%) (0.3)% 0.4%
.....................................................
See footnotes beginning on page 8.
continues
- 7 -
HIGHLIGHTS - Q3 Other Financial Information
(Dollars in Millions)
Three Months Ended
September 30,
----------------------
2000 1999
--------- ----------
Depreciation and Amortization (1)
Depreciation $1,002 $1,004
Amortization of special tools 537 635
Amortization of intangible
assets 57 78
------ -----
Total $1,596 $1,717
====== =====
....................................................
Worldwide Employment at September 30 (in 000s)
GMNA 212 219
GME 90 82(5)
GMLAAM 24 23
GMAP 11 10
Hughes 18 18
GMAC 27 27
Other 13 12
------ ------
Total 395 391
====== ======
....................................................
Worldwide Payrolls $5,229 $5,469
....................................................
(1)Amounts exclude depreciation and amortization charges incurred by
financing and insurance operations.
(2)The 1999 earnings per share and book value per share amounts
attributable to the GM Class H common stock were restated to reflect
the three-for-one stock split of the GM Class H common stock, in the
form of a 200% stock dividend, paid on June 30, 2000.
(3)Excludes the effects of purchase accounting adjustments related to
General Motors' acquisition of Hughes in 1985, and excludes Hughes
Series A Preferred Stock dividends payable to General Motors.
(4)Latin America excludes the Middle East and Africa.
(5)1999 excludes Saab employees.
- 8 -
HIGHLIGHTS - Q3 Financial Results
(Dollars in Millions Except
Per Share Amounts)
Nine Months Ended
September 30,
---------------------
2000 1999
--------- ---------
Total net sales and revenues $138,207 $130,296
------- -------
Income from continuing operations $4,363 $4,431
Income from discontinued operations - 426
------ ------
Consolidated net income $4,363 $4,857
.............................................................
Earnings Attributable to Common Stocks
$1-2/3 par value
Continuing operations $4,424 $4,400
Discontinued operations - 426
------ ------
$1-2/3 par value $4,424 $4,826
Class H $(144) $(20)
.............................................................
Basic Earnings Per Share Attributable to Common Stocks
$1-2/3 par value
Continuing operations $7.51 $6.79
Discontinued operations - 0.66
------ ------
$1-2/3 par value $7.51 $7.45
Class H $(0.23) $(0.06)(2)
.............................................................
Earnings Per Share Attributable to Common Stocks Assuming
Dilution
$1-2/3 par value
Continuing operations $7.37 $6.67
Discontinued operations - 0.65
------ ------
$1-2/3 par value $7.37 $7.32
Class H $(0.23) $(0.06)(2)
.............................................................
Cash Dividends Per Share of Common Stocks
$1-2/3 par value $1.50 $1.50
Class H $ - $ -
.............................................................
See footnotes beginning on page 12.
continues
- 9 -
HIGHLIGHTS - Q3 Net Income by Segment
(Dollars in Millions)
Income/(Loss)
Nine Months Ended
September 30,
---------------------
2000 1999
--------- ---------
GM North America (GMNA) $3,428 $3,575
GM Europe (GME) 206 393
GM Latin America/Africa/Mid-East (GMLAAM) 42 (99)
GM Asia/Pacific (GMAP) (126) (195)
----- -----
Total GM Automotive (GMA) $3,550 $3,674
Hughes (3) (229) (44)
Other (162) (387)
----- -----
Total Automotive, Communications
Services, and Other Operations $3,159 $3,243
GMAC $1,193 $1,176
Other 11 12
----- -----
Total Financing and Insurance Operations $1,204 $1,188
----- -----
Income from continuing operations $4,363 $4,431
Income from discontinued operations - 426
----- -----
Consolidated Net Income $4,363 $4,857
===== =====
Net profit margin from
Total GM Automotive (GMA) 3.2% 3.4%
Income from continuing operations 3.2% 3.4%
Nine Months Ended
September 30, 2000
--------------------------------
GMNA GME GMLAAM GMAP
----- ------ ------ ------
Total net sales and revenues $85,984 $19,315 $4,282 $2,605
------ ------ ----- -----
Pre-tax income (loss) $5,068 $362 $(77) $26
Income tax expense (benefit) 1,604 164 (74) 21
Equity income/(loss) and
minority interests (36) 8 45 (131)
----- ------ ----- -----
Net income (loss) $3,428 $206 $42 $(126)
===== ====== ===== =====
Net profit (loss) margin 4.0% 1.1% 1.0% (4.8%)
Effective income tax rate 31.6% 45.3% 96.1% 80.8%
Nine Months Ended
September 30, 1999
--------------------------------
GMNA GME GMLAAM GMAP
----- ------ ------ ------
Total net sales and revenues $82,793 $19,669 $3,448 $2,246
------ ------ ----- -----
Pre-tax income (loss) $5,264 $605 $(224) $(49)
Income tax expense (benefit) 1,685 208 (106) (8)
Equity income/(loss) and
minority interests (4) (4) 19 (154)
----- ------ ----- -----
Net income (loss) $3,575 $393 $(99) $(195)
===== ====== ===== =====
Net profit (loss) margin 4.3% 2.0% (2.9%) (8.7%)
Effective income tax rate 32.0% 34.4% 47.3% 16.3%
See footnotes beginning on page 12.
continues
- 10 -
HIGHLIGHTS - Q3 Operating Information
Nine Months Ended
September 30,
----------------------
2000 1999
--------- --------
Worldwide Wholesale Sales (units in 000s)
United States: Cars 1,917 1,916
Trucks 1,906 1,954
------ ------
Total United States 3,823 3,870
Canada and Mexico 570 510
------ ------
Total GM North America 4,393 4,380
------ ------
GME 1,434 1,471
GMLAAM 470 399
GMAP 345 312
------ ------
Total International 2,249 2,182
------ ------
Total Worldwide 6,642 6,562
====== ======
....................................................
Vehicle Unit Deliveries (units in 000s)
United States
Chevrolet - Cars 706 683
- Trucks 1,342 1,299
Pontiac 487 485
GMC 412 408
Buick 322 357
Oldsmobile 225 282
Saturn 216 178
Cadillac 148 133
Other 29 31
------ ------
Total United States 3,887 3,856
Canada and Mexico 541 512
------ ------
Total GM North America 4,428 4,368
------ ------
GME 1,459 1,531
GMLAAM 436 401
GMAP 349 337
------ ------
Total International 2,244 2,269
------ ------
Total Worldwide 6,672 6,637
====== ======
....................................................
Market share
United States
Cars 28.8% 30.3%
Trucks 27.1% 27.8%
Total 27.9% 29.1%
Total North America 27.8% 28.9%
Total Europe 9.4% 9.8%
Latin America (4) 20.2% 19.8%
Asia and Pacific 3.6% 3.7%
Total Worldwide 15.2% 15.7%
.....................................................
U.S. Retail/Fleet Mix
% Fleet Sales - Cars 27.5% 25.9%
% Fleet Sales - Trucks 15.5% 13.3%
Total vehicles 21.7% 20.0%
.....................................................
Capacity Utilization %
U.S. and Canada (2-shift rated) 89.9% 89.7%
.....................................................
See footnotes beginning on page 12.
continues
- 11 -
<PAGE>
HIGHLIGHTS - Q3 Other Financial Information
(Dollars in Millions Except Per Share Amounts)
Nine Months Ended
September 30,
----------------------
2000 1999
--------- ----------
Depreciation and Amortization (1)
Depreciation $2,964 $3,075
Amortization of special tools 1,852 1,889
Amortization of intangible
assets 209 157
----- -----
Total $5,025 $5,121
===== =====
....................................................
Worldwide Payrolls $16,589 $16,450
....................................................
(1)Amounts exclude depreciation and amortization charges
incurred by financing and insurance operations.
(2)The 1999 earnings per share amount attributable to the GM Class H
common stock was restated to reflect the three-for-one stock split of
the GM Class H common stock, in the form of a 200% stock dividend, paid
on June 30, 2000.
(3)Excludes the effects of purchase accounting adjustments related to
General Motors' acquisition of Hughes in 1985, and excludes Hughes
Series A Preferred Stock dividends payable to General Motors.
(4)Latin America excludes the Middle East and Africa.
- 12 -
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------ -----------------
2000 1999 2000 1999
---- ---- ---- ----
(Dollars in Millions Except Per Share Amounts)
GENERAL MOTORS CORPORATION AND SUBSIDIARIES
Total net sales and revenues $42,606 $42,794 $138,207 $130,296
------ ------ ------- -------
Cost of sales and other expenses 33,678 34,555 108,888 104,261
Selling, general, and
administrative expenses 5,182 4,736 15,520 13,169
Interest expense 2,480 1,985 7,066 5,624
------- ------- --------- ---------
Total costs and expenses 41,340 41,276 131,474 123,054
------ ------ ------- -------
Income from continuing operations
before income taxes and minority
interests 1,266 1,518 6,733 7,242
Income tax expense 436 553 2,148 2,538
Equity income/(loss) and minority
interests (1) (88) (222) (273)
---- ----- ------ ------
Income from continuing operations 829 877 4,363 4,431
Income from discontinued operations - - - 426
----- ----- ----- -----
Net income 829 877 4,363 4,857
Dividends on preference stocks (27) (28) (83) (51)
----- ----- ------ ------
Earnings attributable to common
stocks $802 $849 $4,280 $4,806
=== === ===== =====
Basic earnings (losses) per
share attributable to
common stocks
$1-2/3 par value
Continuing operations $1.57 $1.35 $7.51 $6.79
Discontinued operations - - - 0.66
----- ----- ----- -----
Earnings per share attributable
to $1-2/3 par value $1.57 $1.35 $7.51 $7.45
===== ===== ===== =====
Earnings per share attributable
to Class H $(0.09) $(0.04) $(0.23) $(0.06)
====== ====== ====== ======
Earnings (losses) per
share attributable to common
stocks assuming dilution
$1-2/3 par value
Continuing operations $1.55 $1.33 $7.37 $6.67
Discontinued operations - - - 0.65
----- ----- ----- -----
Earnings per share attributable
to $1-2/3 par value $1.55 $1.33 $7.37 $7.32
===== ===== ===== =====
Earnings per share attributable
to Class H $(0.09) $(0.04) $(0.23) $(0.06)
====== ====== ====== ======
- 13 -
CONSOLIDATED STATEMENTS OF INCOME - concluded
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------ -----------------
2000 1999 2000 1999
---- ---- ---- ----
(Dollars in Millions)
AUTOMOTIVE, COMMUNICATIONS SERVICES, AND OTHER OPERATIONS
Total net sales and revenues $36,602 $37,546 $120,667 $115,186
------ ------ ------- -------
Cost of sales and other expenses 31,827 32,894 103,408 99,404
Selling, general, and
administrative expenses 3,765 3,486 11,304 9,648
----- ----- ------ -----
Total costs and expenses 35,592 36,380 114,712 109,052
------ ------ ------- -------
Interest expense 210 223 648 597
Net expense from transactions with
Financing and Insurance Operations 197 85 508 245
--- ---- ------ ------
Income from continuing operations
before income taxes and minority
interests 603 858 4,799 5,292
Income tax expense 193 291 1,433 1,799
Equity income/(loss) and minority
interests 13 (80) (207) (250)
-- --- ---- ----
Income from continuing operations 423 487 3,159 3,243
Income from discontinued operations - - - 426
--- ---- ----- -----
Net income - Automotive,
Communications Services,
and Other Operations $423 $487 $3,159 $3,669
=== === ===== =====
Three Months Ended Nine Months Ended
September 30, September 30,
----------------- ------------------
2000 1999 2000 1999
---- ---- ---- ----
(Dollars in Millions)
FINANCING AND INSURANCE OPERATIONS
Total revenues $6,004 $5,248 $17,540 $15,110
------ ------ ------- -------
Interest expense 2,270 1,762 6,418 5,027
Depreciation and amortization
expense 1,474 1,371 4,480 3,918
Operating and other expenses 1,366 1,216 4,063 3,429
Provision for financing and
insurance losses 428 324 1,153 1,031
--- --- ----- -----
Total costs and expenses 5,538 4,673 16,114 13,405
----- ----- ------ ------
Net income from transactions with
Automotive, Communications
Services, and Other Operations 197 85 508 245
--- -- --- ---
Income before income taxes and
minority interests 663 660 1,934 1,950
Income tax expense 243 262 715 739
Equity income/(loss) and
minority interests (14) (8) (15) (23)
--- -- --- ---
Net income - Financing and
Insurance Operations $406 $390 $1,204 $1,188
==== ==== ====== ======
- 14 -
<PAGE>
CONSOLIDATED BALANCE SHEETS
Sept. 30, Sept. 30,
2000 Dec. 31, 1999
(Unaudited) 1999 (Unaudited)
----------- ---- -----------
GENERAL MOTORS CORPORATION AND SUBSIDIARIES (Dollars in Millions)
ASSETS
Automotive, Communications Services,
and Other Operations
Cash and cash equivalents $9,351 $9,730 $12,056
Marketable securities 1,176 1,698 1,666
------- ------- -------
Total cash and marketable securities 10,527 11,428 13,722
Accounts and notes receivable
(less allowances) 5,975 5,093 5,480
Inventories (less allowances) 11,300 10,638 10,603
Equipment on operating leases
(less accumulated depreciation) 5,980 5,744 6,244
Deferred income taxes and other current assets 9,489 9,006 7,494
------- ------- -------
Total current assets 43,271 41,909 43,543
Equity in net assets of nonconsolidated
associates 3,500 1,711 1,642
Property - net 34,036 32,779 31,761
Intangible assets - net 8,651 8,527 12,338
Deferred income taxes 13,309 15,277 17,139
Other assets 32,662 25,358 13,894
------ ------ ------
Total Automotive, Comm. Serv., and Other
Operations assets 135,429 125,561 120,317
Financing and Insurance Operations
Cash and cash equivalents 912 712 328
Investments in securities 9,309 9,110 8,937
Finance receivables - net 87,534 80,627 76,449
Investment in leases and other receivables 37,551 36,407 35,837
Other assets 24,864 21,312 20,589
Net receivable from Automotive, Comm. Serv.,
and Other Operations 1,599 1,001 369
----- ----- ---
Total Financing and Insurance Operations
assets 161,769 149,169 142,509
------- ------- -------
Total assets $297,198 274,730 $262,826
======== ======= ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Automotive, Communications Services, and
Other Operations
Accounts payable (principally trade) $18,190 $17,254 $16,323
Loans payable 3,321 1,991 695
Accrued expenses 32,196 32,854 32,803
Net payable to Financing and Insurance
Operations 1,599 1,001 369
------ ------ ------
Total current liabilities 55,306 53,100 50,190
Long-term debt 8,245 7,415 7,880
Postretirement benefits other than pensions 34,376 34,166 34,455
Pensions 3,226 3,339 3,179
Other liabilities and deferred income taxes 16,060 17,426 18,170
------- ------- -------
Total Automotive, Communications Services,
and Other Operations liabilities 117,213 115,446 113,874
Financing and Insurance Operations
Accounts payable 5,316 4,262 4,587
Debt 129,325 122,282 115,329
Other liabilities and deferred income taxes 13,238 11,282 11,607
-------- -------- --------
Total Financing and Insurance Operations
liabilities 147,879 137,826 131,523
Minority interests 670 596 635
General Motors - obligated mandatorily
redeemable preferred securities of
subsidiary trusts holding solely junior
subordinated debentures of General Motors
Series D - 79 79
Series G 139 139 140
Stockholders' equity
$1-2/3 par value common stock
(issued, 565,371,465; 619,412,233
and 642,050,210 shares) 943 1,033 1,071
Class H common stock
(issued, 874,807,080; 411,345,561 and
405,587,898 shares) 87 14 14
Capital surplus (principally additional
paid-in capital) 21,818 13,794 15,282
Retained earnings 10,335 6,961 5,573
------ ------- -------
Subtotal 33,183 21,802 21,940
Accumulated foreign currency translation
adjustments (2,480) (2,033) (1,969)
Net unrealized gains on securities 715 996 631
Minimum pension liability adjustment (121) (121) (4,027)
------ ------ --------
Accumulated comprehensive loss (1,886) (1,158) (5,365)
------ ------- --------
Total stockholders' equity 31,297 20,644 16,575
-------- -------- --------
Total liabilities and stockholders' equity $297,198 $274,730 $262,826
======= ======= =======
- 15 -
<TABLE>
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<CAPTION>
Nine Months Ended September 30,
-------------------------------
2000 1999
---- ----
Automotive, Financing Automotive, Financing
Comm.Serv. and Comm.Serv. and
and Other Insurance and Other Insurance
--------- --------- --------- ---------
(Dollars in Millions)
<S> <C> <C> <C> <C>
Net cash provided by operating activities $9,207 $4,746 $15,372 $9,883
Cash flows from investing activities
Expenditures for property (6,314) (335) (4,721) (204)
Investments in marketable securities -
acquisitions (2,425) (18,198) (3,481) (16,089)
Investments in marketable securities -
liquidations 2,947 17,998 2,217 15,489
Mortgage servicing rights - acquisitions - (698) - (1,199)
Mortgage servicing rights - liquidations - - - 34
Finance receivables - acquisitions - (140,295) - (139,165)
Finance receivables - liquidations - 88,560 - 100,692
Proceeds from sales of finance receivables - 43,407 - 35,120
Operating leases - acquisitions (5,342) (12,147) (6,175) (13,948)
Operating leases - liquidations 4,615 7,313 4,279 7,104
Investments in companies, net of cash
acquired (4,052) - (2,885) (2,120)
Net investing activity with Financing and
Insurance Operations (998) - 75 -
Other (558) 356 (831) 677
---- --- ---- ---
Net cash used in investing activities (12,127) (14,039) (11,522) (13,609)
------ ------ ------ ------
Cash flows from financing activities
Net increase (decrease) in loans payable 1,255 1,121 (551) (7,601)
Long-term debt-borrowings 4,130 19,450 5,414 21,672
Long-term debt-repayments (4,213) (11,482) (4,632) (10,536)
Net financing activity with Automotive,
Communications Services,
and Other Operations - 998 - (75)
Repurchases of common and preference stocks (652) - (2,149) -
Proceeds from issuing common and preference
stocks 2,778 - 1,905 -
Cash dividends paid to stockholders (989) - (1,023) -
----- ------ ----- -----
Net cash provided by (used in) financing
activities 2,309 10,087 (1,036) 3,460
----- ------ ------ -----
Effect of exchange rate changes on cash and
cash equivalents (365) 3 (167) 1
Net transactions with Automotive/Financing
Operations 597 (597) (447) 447
--- ---- ---- ---
Net cash (used in) provided by continuing
operations (379) 200 2,200 182
Net cash provided by discontinued operations - - 128 -
----- ----- ----- -----
Net (decrease) increase in cash and cash
equivalents (379) 200 2,328 182
Cash and cash equivalents at beginning
of the period 9,730 712 9,728 146
----- --- ----- ---
Cash and cash equivalents at end
of the period $9,351 $912 $12,056 $328
===== === ====== ===
</TABLE>
- 16 -
HUGHES REPORTS THIRD QUARTER 2000 FINANCIAL RESULTS
Editor's note: Hughes invites reporters to participate in a listen-only mode
on its third quarter 2000 analyst call at 2 p.m. EDT Wednesday, Oct. 11. The
dial-in number is 719-457-2622, and the confirmation code is 644450.
El Segundo, Calif., October 11, 2000 -- Hughes Electronics Corporation,
the world's leading provider of digital television entertainment, satellite
services and satellite-based private business networks, today reported third
quarter 2000 revenues increased 3.7% to $1,688.5 million, compared with $1,627.8
million in the third quarter of 1999. EBITDA(1) for the quarter decreased 46.6%
to $107.9 million and EBITDA margin(1) was 6.4%, compared to EBITDA of $202.1
million and EBITDA margin of 12.4% in the third quarter of 1999. Hughes had a
third quarter 2000 loss(2) of $88.5 million, compared to a loss(2) of $29.6
million in the same period for 1999.
"Our continued investment in high-growth, high-value businesses is
reflected in our reduced earnings this quarter," said Michael T. Smith, Hughes
chairman and chief executive officer. "And now that we have completed the sale
of our satellite manufacturing businesses to The Boeing Company, we have
received more than $3.0 billion in after-tax proceeds which we will use to fuel
further growth and pay down debt."
Smith continued, "In the third quarter, some of our most exciting service
businesses attained significant milestones. DIRECTV(R) had its best third
quarter ever for subscriber growth in both the United States and Latin America.
We began shipping the AOL Plus Powered by DirecPC(TM) product; we signed up
additional distribution partners, including Juno and Pegasus; and we are on
schedule to introduce our two-way via-satellite DirecPC(TM) broadband service by
the end of the year. In addition, PanAmSat announced its first customers for
NET/36(TM), its satellite-based Internet broadcast network for content providers
seeking to deliver streaming video, audio and data to broadband customers."
NINE-MONTH FINANCIAL REVIEW
For the first three quarters of 2000, revenues increased 35.4% to $5,228.6
million, compared to $3,862.3 million in the same period last year. This growth
was primarily the result of record subscriber growth at DIRECTV in the United
States and additional revenues resulting from the United States Satellite
Broadcasting, Inc. (USSB) and PRIMESTAR, Inc. transactions, as well as higher
outright sales and sales-type leases of transponders at PanAmSat.
EBITDA for the first nine months of 2000 was $440.2 million and EBITDA
margin was 8.4%, compared to EBITDA of $437.4 million and EBITDA margin of 11.3%
in the same period of 1999. The slight increase in EBITDA was primarily
attributable to higher outright sales and sales-type leases of transponders at
PanAmSat, offset by increased losses in the DIRECTV businesses due to higher
marketing costs associated with the record subscriber growth in both the United
States and Latin America. The decline in margin resulted from the increased
marketing expenses for the DIRECTV services and the lower margins associated
with PanAmSat's outright sales and sales-type leases.
For the first nine months of 2000, losses(2) totaled $228.9 million,
compared to losses(2) of $43.6 million in 1999. The higher loss was primarily
due to increased depreciation and amortization resulting principally from the
mid-1999 acquisitions of USSB and PRIMESTAR, and higher net interest expense.
Additionally, in the first quarter of 2000, Hughes booked a one-time pre-tax
charge of $171 million (reported in "Other, net") related to its agreement with
SkyPerfecTV! and the discontinuation of the DIRECTV Japan business. The
after-tax impact of this charge was a loss of $13 million, which includes the
tax benefits associated with the write-off of Hughes' historical investments in
DIRECTV Japan.
- 17 -
SEGMENT FINANCIAL REVIEW: THIRD QUARTER 2000
Direct-To-Home Broadcast
Third quarter revenues for the segment increased 12.8% to $1,291.5 million
from $1,144.6 million in the third quarter of 1999. The segment had negative
EBITDA of $17.7 million compared with EBITDA of $55.1 million in the third
quarter of 1999.
United States: DIRECTV reported quarterly revenues of $1,154 million
compared with revenues of $1,052 million last year. The increase was due to
continued strong subscriber growth, partially offset by the impact of the
conclusion of the PRIMESTAR By DIRECTV medium-power service, as described below.
DIRECTV added a record 450,000 net subscribers to its high-power DIRECTV
service in the quarter versus 423,000 net subscribers added in the third quarter
of 1999, and converted about 300,000 customers from the PRIMESTAR By DIRECTV
medium-power service. While gross subscriber additions were up significantly
compared to the third quarter of 1999, net subscriber additions were impacted by
DIRECTV's first-ever price increase and the conclusion of the PRIMESTAR
conversion process.
As of September 30, 2000, DIRECTV had 9.0 million subscribers. Through the
first nine months of 2000, DIRECTV grew 37% in its core urban/suburban markets,
which exclude those markets in the National Rural Telecommunications Cooperative
(NRTC) territories.
EBITDA for the third quarter of 2000 was $36 million compared to EBITDA of
$86 million in last year's third quarter. This decline was principally due to
higher marketing costs and the impact from the completion of the PRIMESTAR
conversion process.
As a result of the PRIMESTAR conversions, DIRECTV no longer receives the
revenues from the PRIMESTAR By DIRECTV customers who either discontinued
service, or who converted but live in NRTC territories. DIRECTV receives only a
small percentage of revenues from customers in these territories, thus reducing
the revenues and EBITDA attributable to DIRECTV in the third quarter of 2000.
Since its 1999 acquisition of PRIMESTAR, DIRECTV converted a total of
approximately 1.5 million customers to its high-power service. DIRECTV shut down
the PRIMESTAR By DIRECTV service on September 30, 2000--six months ahead of its
original schedule.
Latin America: The DIRECTV businesses in Latin America generated $136
million in revenues for the quarter, up 79% over the $76 million reported in the
third quarter of 1999. This increase was due to continued strong subscriber
growth.
The DIRECTV service in Latin America added 126,000 net new subscribers in
the third quarter of 2000, an 88% increase over the 67,000 acquired in the same
period last year. The total number of DIRECTV subscribers in Latin America as of
September 30, 2000 was 1,136,000.
The DIRECTV businesses in Latin America had negative EBITDA of $50 million
compared to negative EBITDA of $24 million for the same period in 1999. The
decline was primarily due to the impact of higher marketing expenses associated
with the record subscriber growth.
Japan: DIRECTV Japan's loss was $3 million for the quarter, compared
with a loss of $20 million in the third quarter of 1999. DIRECTV Japan ceased
broadcasting on September 30, 2000, and is on schedule to complete the
migration of customers to SkyPerfecTV! and the closure of the legal entity.
- 18 -
Satellite Services
PanAmSat, which is 81% owned by Hughes, generated third quarter 2000
revenues of $199.3 million compared with $210.7 million in the prior year's
period. The 5.4% decrease was driven primarily by a third quarter 1999 one-time
customer payment of approximately $15 million associated with the termination of
a direct-to-home video services agreement in India.
Third quarter 2000 EBITDA for the segment was $135.5 million compared to
$169.0 million in the third quarter 1999, a 19.8% decrease. EBITDA margin in the
third quarter of 2000 was 68.0%, compared to 80.2% in the same period of 1999.
The decrease in EBITDA and EBITDA margin was primarily due to the one-time
customer payment received in the third quarter of 1999; an increase in direct
operating costs and selling, general and administrative (SG&A) costs as a result
of the company's continued fleet expansion; and investment in the new NET/36
broadband Internet initiative.
As of September 30, 2000, PanAmSat had contracts for satellite services
representing future payments (backlog) of approximately $5.8 billion compared to
approximately $6.0 billion in the second quarter of 2000. This includes a $350
million reduction in backlog resulting from anomalies on the Galaxy VIII-i
satellite. This reduction would be more than offset by additional backlog
generated by the Galaxy VIII-iR replacement satellite that will be constructed
if PanAmSat's agreement in principal with Galaxy Latin America is finalized.
Network Systems
Hughes Network Systems' (HNS's) third quarter 2000 revenues were $284.0
million, compared to $426.2 million in the third quarter of 1999. The decrease
in revenues was principally due to lower sales of DIRECTV receiver equipment
associated with the early completion of the transition of PRIMESTAR By DIRECTV
subscribers to the high-power DIRECTV service. HNS shipped 470,000 DIRECTV
receiver systems in the third quarter of 2000, compared to 730,000 units in the
same period last year. The discontinuation of certain narrowband wireless
businesses, announced in January 2000, also contributed to the reduced revenues,
as did lower revenues in the mobile satellite network product line.
In the quarter, HNS had EBITDA of $16.8 million and EBITDA margin of 5.9%,
compared to EBITDA of $49.8 million and 11.7% margin in the third quarter of
1999. The decline in EBITDA and EBITDA margin is attributable to the reduced
revenues; increased investment in the upcoming launch of new DirecPC services,
including AOL Plus Powered by DirecPC; and the elimination of DIRECTV equipment
subsidies from DIRECTV. These reductions were offset by a $21 million one-time
EBITDA gain that resulted from successful negotiations with certain narrowband
wireless customers for receivables previously written-off.
New orders in the third quarter of 2000 were $423 million, compared to
$295 million in the same period last year, driving backlog to approximately $1.3
billion as of September 30, 2000. This increase was primarily due to higher
sales of domestic VSAT (very small aperture terminal) private business networks
to customers including Exxon/Mobile, CAIS Internet, Musicland and National Cable
Communications. In total, these new contracts represent more than 14,000
additional points of presence on HNS-built networks. Mobile satellite network
sales also contributed to the increase, and included a $150 million contract for
Inmarsat's next-generation ground infrastructure.
- 19 -
BALANCE SHEET
From December 31, 1999 to September 30, 2000, the Company's consolidated
cash balance decreased $59.8 million to $178.4 million and total debt increased
$949.4 million to $3,090.8 million. The principal cash requirements for the
first nine months of 2000 were related to general working capital requirements
and capital expenditures for property, plant, equipment and satellites.
Hughes Electronics Corporation is a unit of General Motors Corporation.
The earnings of Hughes are used to calculate the earnings per share attributable
to the General Motors Class H common stock (NYSE:GMH).
A live webcast of Hughes' third-quarter 2000 earnings call will be
available at the company's website at www.hughes.com or at www.vcall.com. The
call will begin at 2:00 p.m. ET, today. Investors are advised to allow 15
minutes prior to the call to register and download any necessary software.
Following the completion of the call, the webcast will be archived on the
Investor Relations portion of the Hughes website for at least one week.
NOTE: Hughes Electronics Corporation believes that some of the foregoing
statements may constitute forward-looking statements. When used in this report,
the words "estimate," "plan," "project," "anticipate," "expect," "intend,"
"outlook," "believe," and other similar expressions are intended to identify
such forward-looking statements and information. Important factors that may
cause actual results of Hughes to differ materially from the forward-looking
statements in this report are set forth in the Form 10-Ks filed with the SEC by
GM and Hughes.
---------------------
(1) EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is
the sum of operating profit (loss) and depreciation and amortization. EBITDA
margin is calculated by dividing EBITDA by total revenues. (2) Equals reported
Net Loss excluding the effects of purchase accounting adjustments related to
General Motors' acquisition of Hughes in 1985.
# # #
- 20 -
STATEMENTS OF OPERATIONS AND
AVAILABLE SEPARATE CONSOLIDATED NET LOSS
(Dollars in Millions)
(Unaudited)
Nine Months Ended
Third Quarter September 30,
----------------- -----------------
2000 1999 2000 1999
----------------------------------------------------------------------------
Revenues
Direct broadcast, leasing, and
other services $1,485.5 $1,345.0 $4,523.3 $3,147.0
Product sales 203.0 282.8 705.3 715.3
----------------------------------------------------------------------------
Total Revenues 1,688.5 1,627.8 5,228.6 3,862.3
----------------------------------------------------------------------------
Operating Costs and Expenses
Broadcast programming and other
costs 681.4 596.4 2,035.9 1,374.4
Cost of products sold 152.1 273.2 585.1 631.4
Selling, general and
administrative expenses 747.1 556.1 2,167.4 1,419.1
Depreciation and amortization 238.3 208.8 673.1 480.1
----------------------------------------------------------------------------
Total Operating Costs and
Expenses 1,818.9 1,634.5 5,461.5 3,905.0
----------------------------------------------------------------------------
Operating Loss (130.4) (6.7) (232.9) (42.7)
Interest income 7.1 2.6 15.3 20.8
Interest expense (66.5) (51.7) (169.2) (71.0)
Other, net (11.9) (31.6) (294.4) (96.3)
----------------------------------------------------------------------------
Loss from Continuing Operations
Before Income Taxes and
Minority Interests (201.7) (87.4) (681.2) (189.2)
Income tax benefit (77.8) (36.8) (354.4) (59.7)
Minority interests in net losses
of subsidiaries 19.6 8.8 31.7 22.1
-----------------------------------------------------------------------------
Loss from continuing operations (104.3) (41.8) (295.1) (107.4)
Income from discontinued
operations, net of taxes 10.5 6.9 50.3 47.9
----------------------------------------------------------------------------
Net Loss (93.8) (34.9) (244.8) (59.5)
Adjustments to exclude the effect
of GM purchase accounting
adjustments 5.3 5.3 15.9 15.9
----------------------------------------------------------------------------
Loss Excluding the Effect of
GM Purchase Accounting
Adjustments (88.5) (29.6) (228.9) (43.6)
Preferred stock dividends (24.1) (24.7) (72.9) (26.3)
-----------------------------------------------------------------------------
Loss Used for Computation of
Available Separate
Consolidated Net Income
(Loss) $(112.6) $(54.3) $(301.8) $(69.9)
=============================================================================
Available Separate Consolidated
Net Income (Loss)
Average number of shares of
General Motors Class H Common
Stock outstanding (in millions)
(Numerator) 873.9 405.3 616.7 362.4
Average Class H dividend base
(in millions) (Denominator) 1,297.8 1,286.7 1,296.5 1,244.1
Available Separate Consolidated
Net Income (Loss) $(75.8) $(17.1) $(143.6) $(20.4)
=============================================================================
Certain 1999 amounts have been reclassified to conform with the 2000
presentation.
- 21 -
BALANCE SHEET
(Dollars in Millions)
Sept. 30,
2000 December 31,
ASSETS (Unaudited) 1999
-------------------------------------------------------------------------------
Current Assets
Cash and cash equivalents $178.4 $238.2
Accounts and notes receivable 1,145.8 960.9
Contracts in process 130.1 155.8
Inventories 346.0 236.1
Net assets of discontinued operations 1,128.8 1,224.6
Deferred income taxes 537.8 254.3
Prepaid expenses and other 931.4 788.1
----------------------------------------------------------------------------
Total Current Assets 4,398.3 3,858.0
Satellites, net 4,229.6 3,907.3
Property, net 1,588.1 1,223.0
Net Investment in Sales-type Leases 227.5 146.1
Intangible Assets, net 7,207.7 7,406.0
Investments and Other Assets 2,380.3 2,056.6
----------------------------------------------------------------------------
Total Assets $20,031.5 $18,597.0
============================================================================
LIABILITIES AND STOCKHOLDER'S EQUITY
----------------------------------------------------------------------------
Current Liabilities
Accounts payable $1,149.5 $1,062.2
Deferred revenues 153.6 130.5
Short-term borrowings and current portion
of long-term debt 1,133.9 555.4
Accrued liabilities and other 1,312.6 894.0
----------------------------------------------------------------------------
Total Current Liabilities 3,749.6 2,642.1
Long-Term Debt 1,956.9 1,586.0
Other Liabilities and Deferred Credits 1,414.5 1,454.2
Deferred Income Taxes 947.2 689.1
Commitments and Contingencies
Minority Interests 574.3 544.3
Stockholder's Equity 11,389.0 11,681.3
----------------------------------------------------------------------------
Total Liabilities and Stockholder's Equity $20,031.5 $18,597.0
============================================================================
Holders of GM Class H common stock have no direct rights in the equity or assets
of Hughes, but rather have rights in the equity and assets of General Motors
(which includes 100% of the stock of Hughes).
- 22 -
SELECTED SEGMENT DATA
(Dollars in Millions)
Nine Months Ended
Third Quarter September 30,
-------------------- -----------------
2000 1999 2000 1999
---------------------------------------------------------------------------
DIRECT-TO-HOME BROADCAST
Total Revenues $1,291.5 $1,144.6 $3,717.5 $2,571.4
EBITDA (1) $(17.7) $55.1 $(40.9) $46.0
EBITDA Margin (1) N/A 4.8% N/A 1.8%
Operating Loss $(150.1) $(60.2) $(410.9) $(158.2)
Depreciation and Amortization $132.4 $115.3 $370.0 $204.2
Capital Expenditures (2) $262.0 $97.6 $649.1 $253.4
--------------------------------------------------------------------------
SATELLITE SERVICES
Total Revenues $199.3 $210.7 $820.7 $604.6
EBITDA (1) $135.5 $169.0 $557.9 $465.9
EBITDA Margin (1) 68.0% 80.2% 68.0% 77.1%
Operating Profit $52.0 $98.2 $319.1 $258.9
Operating Profit Margin 26.1% 46.6% 38.9% 42.8%
Depreciation and Amortization $83.5 $70.8 $238.8 $207.0
Capital Expenditures (3) $109.4 $347.8 $317.6 $823.0
--------------------------------------------------------------------------
NETWORK SYSTEMS
Total Revenues $284.0 $426.2 $1,020.3 $998.2
EBITDA (1) $16.8 $49.8 $34.4 $80.5
EBITDA Margin (1) 5.9% 11.7% 3.4% 8.1%
Operating Profit (Loss) $1.6 $31.3 $(15.4) $23.1
Operating Profit Margin 0.6% 7.3% N/A 2.3%
Depreciation and Amortization $15.2 $18.5 $49.8 $57.4
Capital Expenditures (4) $79.2 $38.4 $241.0 $111.2
--------------------------------------------------------------------------
ELIMINATIONS and OTHER
Total Revenues $(86.3) $(153.7) $(329.9) $(311.9)
EBITDA (1) $(26.7) $(71.8) $(111.2) $(155.0)
Operating Loss $(33.9) $(76.0) $(125.7) $(166.5)
Depreciation and Amortization $7.2 $4.2 $14.5 $11.5
Capital Expenditures $(24.6) $8.4 $(2.3) $(42.2)
--------------------------------------------------------------------------
TOTAL
Total Revenues $1,688.5 $1,627.8 $5,228.6 $3,862.3
EBITDA (1) $107.9 $202.1 $440.2 $437.4
EBITDA Margin (1) 6.4% 12.4% 8.4% 11.3%
Operating Loss $(130.4) $(6.7) $(232.9) $(42.7)
Depreciation and Amortization $238.3 $208.8 $673.1 $480.1
Capital Expenditures $426.0 $492.2 $1,205.4 $1,145.4
==========================================================================
Certain 1999 amounts have been reclassified to conform with the 2000
presentation.
(1)EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is
the sum of operating profit (loss) and depreciation and amortization. EBITDA
margin is calculated by dividing EBITDA by total revenues.
(2)Includes expenditures related to satellites amounting to $37.5 million,
$13.6 million, $73.2 million and $89.1 million, respectively.
(3)Includes expenditures related to satellites amounting to $81.7 million,
$93.2 million, $258.8 million and $408.8 million, respectively. Also
included in the third quarter and first nine months of 1999 are $228.2
million and $369.5 million, respectively, related to the early
buy-out of satellite sale-leaseback.
(4)Includes expenditures related to satellites amounting to $68.7 million,
$28.0 million, $193.2 million and $74.9 million, respectively.
- 23 --
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
(c) Exhibit
Exhibit 3(ii) The By-Laws of General Motors Corporation, was amended on
October 3, 2000, reflecting amendments to the second paragraph of Section
3.1 of Article III; the last sentence of Section 3.2 of Article III; and
adding Section 3.10, Administrative Committee, of Article III as described
below:
Section Amendment
------- ---------
3.1 Committees of the
Board of Directors.
Paragraph 2 The following committees shall be
standing committees of the board: the
investment funds committee, the audit
committee, the executive compensation
committee, the public policy committee,
the committee on director affairs,
the capital stock committee and the
-----------------------------------
administrative committee.
-------------------------
3.2 Election and Vacancies.
Last sentence No officer or other employee of the
corporation shall be a member of any
standing committee of the board, with the
exception of the investment funds
committee and the administrative
-----------------------
committee.
----------
3.10 Administrative Committee.
Added The board of directors shall select the
members of the administrative committee
and shall designate the chairman of the
committee. The committee shall have the
authority and responsibility to act on
behalf of the board with regard to
matters submitted to the board of
directors that pursuant to the Delegation
of Authority adopted by the board of
directors from time to time do not
constitute issues within its sole
jurisdiction. Whenever the committee
takes any action of this type, it shall
report such action at the next meeting of
the board of directors. The committee
shall have and may exercise such other
powers, authority and responsibilities as
may be determined by the board of
directors.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
GENERAL MOTORS CORPORATION
--------------------------
(Registrant)
Date October 12, 2000
-----------------
By
s/Peter R. Bible
-------------------------------
(Peter R. Bible,
Chief Accounting Officer)
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