Loral Posts Third Quarter Loss
[Satellite Today 11-12-08] Loral reported a net loss of $50.4 million in its 2008 third quarter 2008, including a $35.3 million charge representing Loral’s share of Telesat’s third quarter loss, the Loral announced Nov. 11. Net income for the same period last year was $20 million, which included $56.7 million in gains from foreign exchange hedges.
The company ended the quarter of 2008 with $99.8 million in available cash compared to $314.7 million available at the end of 2007. “Given the concerns about the current economic environment, we are pleased that our booking successes for the year-to-date will provide substantial backlog to help weather the potential impact of the economic downturn," Michael Targoff, CEO of Loral, said in a statement. “With the new credit facility in place, our manufacturing subsidiary has reinforced its liquidity for its ongoing business plan and enhanced its capability to meet unexpected cash requirements.”
Space Systems/Loral reported revenue increases at $216.3 million compared to $207.3 million in the third quarter of 2007. Adjusted EBITDA for the quarter for the manufacturing segment was $9.6 million. This includes a $4 million recognition of foreign exchange losses on a contract with Hispasat, expected to be recovered over the life of the contract.
Telesat’s performance in the third quarter continued on target with expectations. Revenues were $169.7 million and adjusted EBITDA was $108.2 million. Telesat said it had interest expense of $58.9 million on its debt for the quarter and reported a net loss of $53.5 million.