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) June 11, 2001
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GENERAL MOTORS CORPORATION
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(Exact name of registrant as specified in its charter)
STATE OF DELAWARE 1-143 38-0572515
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(State or other jurisdiction (Commission File Number) (I.R.S. Employer
of incorporation) Identification No.)
300 Renaissance Center, Detroit, Michigan 48265-3000
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (313)-556-5000
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ITEM 9. Forward Looking Information Relating to Hughes
General Motors Corporation's (GM) subsidiary Hughes Electronics Corporation
(Hughes) filed the following forward looking information on Form 8-K.
Hughes Announces Revised guidance for
Second Quarter and Full-Year 2001
El Segundo, Calif., June 11, 2001 -- Hughes Electronics Corporation, a
world-leading provider of digital television entertainment, broadband services,
satellite-based private business networks, and global video and data
broadcasting, announced today that it is issuing new guidance for the second
quarter and full year of 2001.
"Sales at our national consumer electronics retailers, which are our
primary distribution outlets for DIRECTV Systems, have been slower than we
expected, in large part due to the softening economy," explained Jack A. Shaw,
HUGHES chief executive officer. "In addition, we are seeing continued slowing in
the contribution of subscribers from the rural markets that are served by the
National Rural Telecommunications Cooperative (NRTC). As a result, we expect
that our DIRECTV business in the United States will add fewer net subscribers
than we originally anticipated this quarter, and for the full year.
"We are also increasing our DIRECTV U.S. EBITDA1 guidance for the quarter
and the full year because the lowered subscriber projections result in lower
subscriber marketing expenses." Shaw continued.
"To combat the slower retail sales in the United States, we are taking
aggressive steps to strengthen the performance of all of our distribution
partners, who include independent retailers and direct sales, in addition to our
national consumer electronics retailers and Blockbuster. We have implemented a
variety of marketing tactics, including aggressively targeting cable customers
who have experienced large rate increases or poor service. We are also shifting
our advertising and marketing focus to the more than 60 million television
households where DIRECTV offers local channels and is truly a replacement for
cable. In addition, we're adding a lease program through our direct sales
channel, as well as continuing our efforts to reduce churn," Shaw stated. "We
also anticipate positive results from our traditional third quarter offering of
NFL SUNDAY TICKET(TM), - one of our strongest acquisition tools - which we will
begin promoting in early August."
"In addition, we are adjusting our projections for DIRECTV Latin America
as we place a greater emphasis on reducing churn and attracting long-term
profitable subscribers. As a result, we will be more selective in our pursuit of
new subscribers and have accordingly reduced our current quarter and full-year
subscriber projections. We also expect lower EBITDA losses."
HUGHES' revised guidance is shown below. No changes were made to the
guidance for PanAmSat and Hughes Network Systems (HNS). HUGHES' complete
guidance is contained on the HUGHES web site at www.hughes.com.
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Prior Revised Prior Revised
Q2 2001 Q2 2001 Full Year 2001 Full Year 2001
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HUGHES
Revenues ~$2B ~$2B 20 - 25% Growth ~20% Growth
EBITDA $80 - 100M $80 - 100M $550 - $650M $575M - $650M
DIRECTV U.S.
Revenues $1.35B - $1.4B $1.35B - $1.4B $5.6 - $5.8B $5.5 - $5.7B
EBITDA $60 - 75M ~$75M $325M - $425M $350M - $425M
Net Subscribers 275 - 350K ~175K 1.5 - 1.7M ~1.3M
Cumulative Subscribers 10.1 - 10.2 ~10M 11 - 11.2M ~10.8M
DIRECTV Latin America
Revenues ~$180M ~$180M ~$800M ~$750M
EBITDA ~$(35M) ~$(35M) $(90M) - (130M) ~$(100M)
Net Subscribers ~100K ~25K ~500K ~350K
Cumulative Subscribers ~1.5M ~1,430K ~1.8M ~1,655K
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HUGHES will be conducting a conference call with analysts to discuss its
new guidance at 5:15 p.m. ET today. The dial-in number is 913-981-5517. The
confirmation code is 692005. HUGHES invites reporters to participate in a
listen-only mode. The call will be simultaneously webcast via the HUGHES web
site at www.hughes.com. 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 web site.
Hughes Electronics Corporation is a unit of General Motors Corporation.
The earnings of Hughes Electronics are used to calculate the earnings
attributable to the General Motors Class H common stock (NYSE:GMH).
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
General Motors and HUGHES.
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1 EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is the
sum of operating profit (loss) and depreciation and amortization.
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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
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(Registrant)
Date June 11, 2001
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By
s/Peter R. Bible
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(Peter R. Bible,
Chief Accounting Officer)
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