Loral Space and Communications Inc. (LORL, Financial) filed Quarterly Report for the period ended 2010-03-31.
Loral Space And Communications Inc. has a market cap of $772.46 million; its shares were traded at around $37.89 with a P/E ratio of 4.92 and P/S ratio of 0.78. LORL is in the portfolios of Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
We are investing in the Canadian coverage portion of the ViaSat-1 satellite which is being constructed by SS/L. On December 31, 2009, we entered into an agreement to lease a portion of the Canadian coverage portion of the satellite and provide gateway services to an internet broadband service provider for between CAD 133 million and CAD 262 million over the 15-year life of the satellite. Loral expects to have invested approximately $70 million, excluding customer prepayments of between CAD 2.5 million and CAD 13.0 million, by the time service is initiated. Approximately $30 million has been invested through March 31, 2010, with the remaining $40 million to be invested by the end of 2011.
Satellite Manufacturing segment revenue increased by $14 million for the three months ended March 31, 2010 as compared to the three months ended March 31, 2009, primarily as a result of an increase in the number, size and complexity of satellites ordered. Revenue for the three months ended March 31, 2010 was primarily driven by $3.22 billion of orders placed for 18 satellites in 2007, 2008 and 2009. Revenue for the three months ended March 31, 2009 was primarily driven by $2.96 billion of orders placed for 17 satellites in 2006, 2007 and 2008. Eliminations for the three months ended March 31, 2010 and 2009 consist primarily of revenue applicable to Lorals interest in a portion of the payload of the ViaSat-1 satellite which is being constructed by SS/L (see Note 17 to the financial statements).
Satellite Manufacturing segment Adjusted EBITDA increased $2 million for the three months ended March 31, 2010 compared with the three months ended March 31, 2009. The increase was due to a margin increase of $1 million primarily due to the higher sales volume, a $1 million increase in gains from cash flow hedges of foreign currency denominated contracts and a $1 million decrease in pension and general and administrative expenses, partially offset by a $1 million increase in stock-based compensation related to SS/L phantom stock appreciation rights paid in cash.
Revenue from Satellite Manufacturing before eliminations increased by $15 million for the three months ended March 31, 2010 as compared to the three months ended March 31, 2009, primarily as a result of an increase in the number, size and complexity of satellites ordered. Revenue for the three months ended March 31, 2010 was primarily driven by $3.22 billion of orders placed for 18 satellites in 2007, 2008 and 2009. Revenue for the three months ended March 31, 2009 was primarily driven by $2.96 billion of orders placed for 17 satellites in 2006, 2007 and 2008. Eliminations for the three months ended March 31, 2010 and 2009 consist primarily of revenue applicable to Lorals interest in a portion of the payload of the ViaSat-1 satellite which is being constructed by SS/L (see Note 17 to the financial statements). As a result, revenues from Satellite Manufacturing as reported increased $17 million for the three months ended March 31, 2010 as compared to the three months ended March 31, 2009.
Cost of Satellite Manufacturing increased by $13 million for the three months ended March 31, 2010 as compared to the three months ended March 31, 2009. Margins improved by $1 million, partially offsetting a $14 million increase in costs from higher sales volume.
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Loral Space And Communications Inc. has a market cap of $772.46 million; its shares were traded at around $37.89 with a P/E ratio of 4.92 and P/S ratio of 0.78. LORL is in the portfolios of Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
Telesats operating results are subject to fluctuations as a result of exchange rate variations to the extent that transactions are made in currencies other than Canadian dollars. Approximately 44% of Telesats revenues received in Canada for the three months ended March 31, 2010, certain of its expenses and a substantial portion of its indebtedness and capital expenditures were denominated in U.S. dollars. The most significant impact of variations in the exchange rate is on the U.S. dollar denominated debt financing. A five percent change in the value of the Canadian dollar against the U.S. dollar at March 31, 2010 would have increased or decreased Telesats net income for the quarter ended March 31, 2010 by approximately $149 million. During the period from October 31, 2007 to March 31, 2010, Telesats U.S. term loan facility, senior notes and senior subordinated notes have increased by approximately $177 million due to the stronger U.S. dollar. However during that same time period, the liability created by the fair value of the currency basis swap, which synthetically converts $1.054 billion of the U.S. term loan facility debt into CAD 1.224 billion of debt, decreased by approximately $143 million.We are investing in the Canadian coverage portion of the ViaSat-1 satellite which is being constructed by SS/L. On December 31, 2009, we entered into an agreement to lease a portion of the Canadian coverage portion of the satellite and provide gateway services to an internet broadband service provider for between CAD 133 million and CAD 262 million over the 15-year life of the satellite. Loral expects to have invested approximately $70 million, excluding customer prepayments of between CAD 2.5 million and CAD 13.0 million, by the time service is initiated. Approximately $30 million has been invested through March 31, 2010, with the remaining $40 million to be invested by the end of 2011.
Satellite Manufacturing segment revenue increased by $14 million for the three months ended March 31, 2010 as compared to the three months ended March 31, 2009, primarily as a result of an increase in the number, size and complexity of satellites ordered. Revenue for the three months ended March 31, 2010 was primarily driven by $3.22 billion of orders placed for 18 satellites in 2007, 2008 and 2009. Revenue for the three months ended March 31, 2009 was primarily driven by $2.96 billion of orders placed for 17 satellites in 2006, 2007 and 2008. Eliminations for the three months ended March 31, 2010 and 2009 consist primarily of revenue applicable to Lorals interest in a portion of the payload of the ViaSat-1 satellite which is being constructed by SS/L (see Note 17 to the financial statements).
Satellite Manufacturing segment Adjusted EBITDA increased $2 million for the three months ended March 31, 2010 compared with the three months ended March 31, 2009. The increase was due to a margin increase of $1 million primarily due to the higher sales volume, a $1 million increase in gains from cash flow hedges of foreign currency denominated contracts and a $1 million decrease in pension and general and administrative expenses, partially offset by a $1 million increase in stock-based compensation related to SS/L phantom stock appreciation rights paid in cash.
Revenue from Satellite Manufacturing before eliminations increased by $15 million for the three months ended March 31, 2010 as compared to the three months ended March 31, 2009, primarily as a result of an increase in the number, size and complexity of satellites ordered. Revenue for the three months ended March 31, 2010 was primarily driven by $3.22 billion of orders placed for 18 satellites in 2007, 2008 and 2009. Revenue for the three months ended March 31, 2009 was primarily driven by $2.96 billion of orders placed for 17 satellites in 2006, 2007 and 2008. Eliminations for the three months ended March 31, 2010 and 2009 consist primarily of revenue applicable to Lorals interest in a portion of the payload of the ViaSat-1 satellite which is being constructed by SS/L (see Note 17 to the financial statements). As a result, revenues from Satellite Manufacturing as reported increased $17 million for the three months ended March 31, 2010 as compared to the three months ended March 31, 2009.
Cost of Satellite Manufacturing increased by $13 million for the three months ended March 31, 2010 as compared to the three months ended March 31, 2009. Margins improved by $1 million, partially offsetting a $14 million increase in costs from higher sales volume.
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