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Previous Close18.40
Open18.37
Bid17.30 x 1100
Ask24.50 x 1100
Day's Range17.30 - 18.47
52 Week Range13.68 - 40.67
Volume198,342
Avg. Volume144,743
Market Cap538.54M
Beta (5Y Monthly)1.61
PE Ratio (TTM)N/A
EPS (TTM)-1.12
Earnings DateNov. 10, 2020 - Nov. 16, 2020
Forward Dividend & YieldN/A (N/A)
Ex-Dividend DateMay 13, 2020
1y Target EstN/A
  • Telesat Reports Results for the Quarter and Nine Months Ended September 30, 2020
    GlobeNewswire

    Telesat Reports Results for the Quarter and Nine Months Ended September 30, 2020

    OTTAWA, Oct. 29, 2020 (GLOBE NEWSWIRE) -- Telesat today announced its financial results for the three and nine-month periods ended September 30, 2020. All amounts are in Canadian dollars and reported under International Financial Reporting Standards (“IFRS”) unless otherwise noted.For the quarter ended September 30, 2020, Telesat reported consolidated revenue of $202 million, a decrease of 15% ($35 million) compared to the same period in 2019. When adjusted for changes in foreign exchange rates, revenue declined 14% ($34 million) compared to 2019. The revenue decrease was due to short-term services provided to another satellite operator in the third quarter of 2019 that did not recur in 2020, a reduction of service for one of Telesat’s North American DTH customers and lower revenue due to the completion of the term for prepaid services in a customer agreement that was accounted for as having a significant financing component. In addition, the restructuring of certain customer contracts related to the COVID 19 pandemic negatively impacted revenue.Operating expenses for the quarter were $42 million, an increase of $4 million from 2019. Increased expenses primarily consisted of higher professional fees and licensing fees combined with higher wage expense, which was the result of increased hiring to support Telesat’s Low Earth Orbit (“LEO”) program.Adjusted EBITDA1 was $162 million, a decrease of 20% ($41 million) or, when adjusted for foreign exchange rates, a decrease of $40 million. The Adjusted EBITDA margin1 for the third quarter of 2020 was 80.4%, compared to 85.7% in 2019.For the quarter ended September 30, 2020, net income was $107 million, compared to net loss of $123 million for 2019. The positive variation for the quarter was principally the result of non-cash gains on the fair value of financial instruments in 2020, non-cash foreign exchange gains in 2020 arising from the translation of Telesat’s U.S. dollar denominated debt into Canadian dollars and lower interest expense.For the nine-month period ended September 30, 2020, Telesat reported consolidated revenue of $619 million, a decrease of 10% ($72 million) compared to the same period in 2019. Revenue decreases were due to a reduction of service for one of Telesat’s North American DTH customers and lower revenue due to the completion of the term for prepaid services in a customer agreement that was accounted for as having a significant financing component. In addition, revenue associated with short-term services provided to other satellite operators in 2019 did not recur in 2020.Operating expenses for the nine-month period were $134 million, an increase of $19 million from 2019. The increase is substantially attributable to compensation and professional fees associated with the LEO program, provision for bad debts as previously disclosed and higher in-orbit insurance.  Adjusted EBITDA1 was $493 million, a decrease of 16% ($95 million) or, when adjusted for foreign exchange rates, a decrease of $93 million. The Adjusted EBITDA margin1 for the first nine months of 2020 was 79.7%, compared to 85.1% in 2019.For the nine months ended September 30, 2020, net loss was $9 million, compared to net income of $185 million for 2019. The negative variation for the period was principally the result of non-cash foreign exchange losses in 2020, arising from the translation of Telesat’s U.S. dollar denominated debt into Canadian dollars compared to foreign exchange gains in 2019, offset by lower interest expense, smaller losses on changes in the fair value of financial instruments, and lower taxes.“Our reduced revenue and Adjusted EBITDA1 over the first three quarters of this year relative to the prior period are the result of a number of factors that we have disclosed previously, including the non-renewal late last year of a North American DTH contract, the end of the revenue amortization period of another contract, a dearth of opportunities for the provision of short-term satellite services, and the adverse impact of COVID-19 on our customers providing broadband to the aeronautical and maritime markets,” commented Dan Goldberg, Telesat’s President and CEO. “Having said that, the overwhelming majority of our revenues has been unaffected by the pandemic and we continue to have robust operating margins and cash flow, which are underpinned by our significant contractual backlog. In addition, we are making substantial progress on the development of our revolutionary LEO satellite constellation as well as our other strategic objectives, including leveraging our valuable spectrum rights.”Business Highlights * At September 30, 2020: \- Telesat had contracted backlog2 for future services of approximately $2.8 billion. \- Fleet utilization was 81%. Telesat’s quarterly report on Form 6-K for the quarter ended September 30, 2020, has been filed with the United States Securities and Exchange Commission (“SEC”) and may be accessed on the SEC’s website at www.sec.gov.Conference CallTelesat has scheduled a conference call on Thursday, October 29, 2020, at 10:30 a.m. ET to discuss its financial results for the three and nine-month periods ended September 30, 2020. The call will be hosted by Daniel S. Goldberg, President and Chief Executive Officer, and Andrew Browne, Chief Financial Officer, of Telesat.The toll-free dial-in number for the teleconference is +1 800 952 5114. Callers outside of North America should dial +1 416 641 6104. The conference event service confirmation number is: 4342827. The access code is 9600987 followed by the number sign (). Please allow at least 15 minutes prior to the scheduled start time to connect to the teleconference.Dial-in Audio Replay: A replay of the teleconference will be available one hour after the end of the call on October 29, 2020 until 11:59 p.m. ET on November 12, 2020. To access the replay, please call +1 800 408 3053. Callers from outside North America should dial +1 905 694 9451. The access code is 5616479 followed by the number sign ().About TelesatBacked by a legacy of engineering excellence, reliability and industry-leading customer service, Telesat has grown to be one of the largest and most successful global satellite operators. Telesat works collaboratively with its customers to deliver critical connectivity solutions that tackle the world’s most complex communications challenges, providing powerful advantages that improve their operations and drive growth. Telesat LEO, our Low Earth Orbit network will revolutionize global broadband connectivity by delivering a combination of high capacity, security, resiliency and affordability with ultra-low latency and fiber-like speeds.Privately held and headquartered in Ottawa, Canada with offices and facilities around the world, Telesat’s principal shareholders are Canada’s Public Sector Pension Investment Board and Loral Space & Communications Inc. (NASDAQ: LORL). For more information, visit www.telesat.com.Media contact: Michael Bolitho Telesat +1.613.748.8828 ir@telesat.comForward-Looking Statements Safe HarborThis news release contains statements that are not based on historical fact and are ''forward-looking statements'' within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this news release, the words “making progress”, “continuing”, and “development", or other variations of these words or other similar expressions are intended to identify forward-looking statements and information. Actual results may differ materially from the expectations expressed or implied in the forward-looking statements as a result of known and unknown risks and uncertainties. Detailed information about some of the known risks and uncertainties is included in the "Risk Factors" sections of Telesat Canada's Annual Report on Form 20-F for the fiscal year ended December 31, 2019 and in Telesat Canada’s Quarterly Report on Form 6-K for the quarters ending March 31, 2020, June 30, 2020, and September 30, 2020, all of which can be obtained from the SEC website.Known risks and uncertainties include but are not limited to: risks associated with operating satellites and providing satellite services, including satellite construction or launch delays, launch failures, in-orbit failures or impaired satellite performance, the impact of  COVID-19  on Telesat’s business and the economic environment, the ability to successfully deploy an advanced global LEO satellite constellation, the availability of government and/or other funding for the LEO satellite constellation, the receipt of proceeds in relation to the re-allocation of C-band spectrum, volatility in exchange rates, the ability to expand our existing satellite utilization and risks associated with domestic and foreign government regulation. The foregoing list of important factors is not exhaustive. The information contained in this news release reflects Telesat's beliefs, assumptions, intentions, plans and expectations as of the date of this news release. Except as required by law, Telesat disclaims any obligation or undertaking to update or revise the information herein.Telesat Canada       Unaudited Interim Condensed Consolidated Statements of Income (Loss) For the periods ended September 30                                        Three months    Nine Months   (in thousands of Canadian dollars)  2020   2019   2020   2019   Revenue $202,053  $237,117  $618,560  $690,729   Operating expenses  (42,185)  (37,798)  (133,712)  (114,871)  Depreciation  (55,597)  (62,406)  (166,819)  (187,281)  Amortization  (4,289)  (6,430)  (12,906)  (18,536)  Other operating losses, net  (34)  (60)  (246)  (147)  Operating income  99,948   130,423   304,877   369,894   Interest expense  (50,116)  (63,897)  (155,917)  (194,169)  Interest and other income  875   5,514   6,667   15,490   Gain (loss) on changes in fair value of financial instruments5,715   (144,524)  (38,884)  (64,361)  Gain (loss) on foreign exchange  66,334   (30,351)  (99,088)  98,427   Income (loss) before tax  122,756   (102,835)  17,655   225,281   Tax expense  (15,736)  (19,845)  (27,100)  (40,592)  Net income (loss)  $107,020  $(122,680) $(9,445) $184,689                      Telesat Canada       Unaudited Interim Condensed Consolidated Balance Sheets                               (in thousands of Canadian dollars)  September 30, 2020   December 31, 2019            Assets      Cash and cash equivalents $1,242,315 $1,027,222  Trade and other receivables  61,136  64,062  Other current financial assets  562  210  Prepaid expenses and other current assets  12,654  43,724  Total current assets  1,316,667  1,135,218  Satellites, property and other equipment  1,387,115  1,458,933  Deferred tax assets  15,018  12,412  Other long-term financial assets  31,810  57,730  Other long-term assets  7,921  8,264  Intangible assets  786,409  802,791  Goodwill  2,446,603  2,446,603  Total assets $5,991,543 $5,921,951           Liabilities      Trade and other payables $21,992 $26,247  Other current financial liabilities  61,901  38,281  Other current liabilities  93,133  72,315  Current indebtedness  24,974  24,408  Total current liabilities  202,000  161,251  Long-term indebtedness  3,763,119  3,688,391  Deferred tax liabilities  320,477  348,762  Other long-term financial liabilities  37,290  42,511  Other long-term liabilities  401,436  435,711  Total liabilities  4,724,322  4,676,626           Shareholders' Equity      Share capital  154,895  154,895  Accumulated earnings  1,021,610  1,031,055  Reserves  90,716  59,375  Total shareholders' equity  1,267,221  1,245,325  Total liabilities and shareholders' equity$5,991,543 $5,921,951          Telesat Canada     Unaudited Interim Condensed Consolidated Statements of Cash Flows For the nine months ended September 30            (in thousands of Canadian dollars) 2020  2019  Cash flows from operating activities       Net (loss) income $(9,445) $184,689  Adjustments to reconcile net (loss) income to cash flows from operating activities        Depreciation  166,819   187,281   Amortization  12,906   18,536   Tax expense  27,100   40,592   Interest expense  155,917   194,169   Interest income  (6,761)  (15,573)  Loss (gain) on foreign exchange  99,088   (98,427)  Loss on changes in fair value of financial instruments  38,884   64,361   Share-based compensation  7,160   10,548   Loss on disposal of assets  246   147   Other  (45,474)  (84,298) Income taxes paid, net of income taxes received  (35,221)  (64,064) Interest paid, net of interest received  (120,576)  (124,744) Operating assets and liabilities  9,046   (13,029) Net cash from operating activities  299,689   300,188          Cash flows used in investing activities       Purchases for satellite programs  (64,810)  (2,950) Purchase of property and other equipment  (13,235)  (6,377) Purchase of intangible assets  (30)  (27,518) Net cash used in investing activities  (78,075)  (36,845)         Cash flows used in financing activities       Repayment of indebtedness  (19,197)  (23,436) Payments of principal on lease liabilities  (1,215)  (913) Satellite performance incentive payments  (6,877)  (7,349) Government grant received  6,120   —  Dividends paid on Director Voting preferred shares  —   (10) Net cash used in financing activities  (21,169)  (31,708)          Effect of changes in exchange rates on cash and cash equivalents  14,648   (21,718)          Increase in cash and cash equivalents  215,093   209,917  Cash and cash equivalents, beginning of period  1,027,222   768,433  Cash and cash equivalents, end of period $1,242,315  $978,350          Telesat’s Adjusted EBITDA margin(1):  Three months ended September 30, Nine months ended September 30, (in thousands of Canadian dollars) (unaudited) 2020  2019  2020  2019  Net income (loss) $107,020  $(122,680) $(9,445) $184,689  Tax expense  15,736   19,845   27,100   40,592  (Gain) loss on changes in fair value of financial instruments  (5,715)  144,524   38,884   64,361  (Gain) loss on foreign exchange  (66,334)  30,351   99,088   (98,427) Interest and other income  (875)  (5,514)  (6,667)  (15,490) Interest expense  50,116   63,897   155,917   194,169  Depreciation  55,597   62,406   166,819   187,281  Amortization  4,289   6,430   12,906   18,536  Other operating losses, net  34   60   246   147  Non-recurring compensation expenses(3)  252   376   876   1,080  Non-cash expense related to share-based compensation  2,275   3,440   7,160   10,548  Adjusted EBITDA $162,395  $203,135  $492,884  $587,486                Revenue $202,053  $237,117  $618,560  $690,729  Adjusted EBITDA Margin  80.4%  85.7 %  79.7%  85.1% End Notes1 The common definition of EBITDA is “Earnings Before Interest, Taxes, Depreciation and Amortization.” In evaluating financial performance, Telesat uses revenue and deducts certain operating expenses (including share-based compensation expense and unusual and non-recurring items, including restructuring related expenses) to obtain operating income before interest expense, taxes, depreciation and amortization (“Adjusted EBITDA”) and the Adjusted EBITDA margin (defined as the ratio of Adjusted EBITDA to revenue) as measures of Telesat’s operating performance.Adjusted EBITDA allows Telesat and investors to compare Telesat’s operating results with that of competitors exclusive of depreciation and amortization, interest and investment income, interest expense, taxes and certain other expenses. Financial results of competitors in the satellite services industry have significant variations that can result from timing of capital expenditures, the amount of intangible assets recorded, the differences in assets’ lives, the timing and amount of investments, the effects of other income (expense), and unusual and non-recurring items. The use of Adjusted EBITDA assists Telesat and investors to compare operating results exclusive of these items. Competitors in the satellite services industry have significantly different capital structures. Telesat believes the use of Adjusted EBITDA improves comparability of performance by excluding interest expense.Telesat believes the use of Adjusted EBITDA and the Adjusted EBITDA margin along with IFRS financial measures enhances the understanding of Telesat’s operating results and is useful to Telesat and investors in comparing performance with competitors, estimating enterprise value and making investment decisions. Adjusted EBITDA as used here may not be the same as similarly titled measures reported by competitors. Adjusted EBITDA should be used in conjunction with IFRS financial measures and is not presented as a substitute for cash flows from operations as a measure of Telesat’s liquidity or as a substitute for net income as an indicator of Telesat’s operating performance.2 Remaining performance obligations, which we refer to as contracted revenue backlog, represents Telesat’s expected future revenue from existing service contracts (without discounting for present value) including any deferred revenue that Telesat will recognize in the future in respect of cash already received. The majority of Telesat’s contracted revenue backlog is generated from contractual agreements for satellite capacity.3 Includes severance payments and special compensation and benefits for executives and employees.

  • Telesat Third Quarter 2020 Conference Call
    GlobeNewswire

    Telesat Third Quarter 2020 Conference Call

    OTTAWA, Oct. 22, 2020 (GLOBE NEWSWIRE) -- Telesat has scheduled a conference call on Thursday, October 29, 2020, at 10:30 a.m. ET to discuss its financial results for the three and nine month periods ended September 30, 2020. The call will be hosted by Daniel S. Goldberg, President and Chief Executive Officer, and Andrew Browne, Chief Financial Officer, of Telesat. Prior to the commencement of the call, Telesat will post a news release containing its financial results on its website (www.telesat.com) under the tab “Investor Relations” and the heading “News”.Dial-in Instructions: The toll-free dial-in number for the teleconference is +1 800 952 5114. Callers outside of North America should dial +1 416 641 6104. The conference event service confirmation number is: 4342827. The access code is 9600987 followed by the number sign (). Please allow at least 15 minutes prior to the scheduled start time to connect to the teleconference.Dial-in Audio Replay: A replay of the teleconference will be available one hour after the end of the call on October 29, 2020 until 11:59 p.m. ET on November 12, 2020. To access the replay, please call +1 800 408 3053. Callers from outside North America should dial +1 905 694 9451. The access code is 5616479 followed by the number sign ().About TelesatBacked by a legacy of engineering excellence, reliability and industry-leading customer service, Telesat has grown to be one of the largest and most successful global satellite operators. Telesat works collaboratively with its customers to deliver critical connectivity solutions that tackle the world’s most complex communications challenges, providing powerful advantages that improve their operations and drive growth. Telesat LEO, our Low Earth Orbit network will revolutionize global broadband connectivity by delivering a combination of high capacity, security, resiliency and affordability with ultra-low latency and fiber-like speeds.Privately held and headquartered in Ottawa, Canada with offices and facilities around the world, Telesat’s principal shareholders are Canada’s Public Sector Pension Investment Board and Loral Space & Communications Inc. (NASDAQ: LORL). For more information, visit www.telesat.com.Media contact:Michael Bolitho Telesat +1.613.748.8828ir@telesat.com

  • Telesat Teams with Lockheed Martin on Space Development Agency Transport Layer
    GlobeNewswire

    Telesat Teams with Lockheed Martin on Space Development Agency Transport Layer

    Telesat to support investigation of integrating commercial space network with SDA government space networkARLINGTON, Va., Oct. 20, 2020 (GLOBE NEWSWIRE) -- Telesat U.S. Services, a wholly owned subsidiary of leading global satellite operator Telesat, is now part of the Lockheed Martin (NYSE: LMT) team which was recently awarded the Space Transport Layer Tranche 0 contract by the U.S. Space Development Agency (SDA). The Lockheed Martin-led team will provide on-orbit delivery of 10 space vehicles with optical inter-satellite links (OISLs), contributing to a total of 20 satellites in Tranche 0. As part of this team, Telesat will support a commercial interoperability exercise by working with the Lockheed Martin team to demonstrate interoperability between the OISLs of the SDA’s Transport Layer satellites and those of Telesat’s Low Earth Orbit (LEO) constellation. The OISLs native to Telesat LEO will be compatible with the SDA’s OISL standard for an assured, resilient and secure network. OISL technology is the enabler of vastly improved network security, resilience and performance in any space communications network. As a commercial OISL leader, Telesat will work with Lockheed Martin to explore interoperability of the SDA Space Transport Layer Tranche 0 satellites with the Telesat LEO network.“Lockheed Martin took a visionary approach to their SDA Transport Layer team, incorporating commercial space solutions to provide the U.S. government greater communications system resiliency and flexibility. We’re proud to bring Telesat’s system engineering expertise to the team,” said Don Brown, General Manager of Government Services at Telesat. “With the Telesat LEO advanced space architecture, governments worldwide can leverage commercial innovations. This approach, underpinned by Telesat’s OISL expertise, will enable space network performance on par with terrestrial networks, helping Lockheed Martin and the SDA demonstrate how interoperability with the commercial space networks can effectively drive better results for government connectivity.”As part of the project, Telesat will conduct hardware and software testing on their LEO emulator at Telesat’s U.S. Government facility.This project comes on the heels of numerous government partnerships for Telesat, including exploring the future of space-based government communications with the U.S. Defense Advanced Research Project Agency’s (DARPA) Blackjack program and the U.S. Space Force, Space and Missile Systems Center’s (SMC) CASINO program. Through these partnerships, Telesat continues to showcase the possibilities of Telesat LEO in supporting government efforts and meeting the U.S. Government’s unique unilateral requirements, including offering true global connectivity throughout the polar regions.About TelesatBacked by a legacy of engineering excellence, reliability and industry-leading customer service, Telesat has grown to be one of the largest and most successful global satellite operators. Telesat works collaboratively with its customers to deliver critical connectivity solutions that tackle the world’s most complex communications challenges, providing powerful advantages that improve their operations and drive growth. Telesat LEO, our Low Earth Orbit network will revolutionize global broadband connectivity by delivering a combination of high capacity, security, resiliency and affordability with ultra-low latency and fiber-like speeds.Privately held and headquartered in Ottawa, Canada with offices and facilities around the world, Telesat’s principal shareholders are Canada’s Public Sector Pension Investment Board and Loral Space & Communications Inc. (NASDAQ: LORL). For more information, visit www.telesat.com.About Lockheed Martin Headquartered in Bethesda, Maryland, Lockheed Martin is a global security and aerospace company that employs approximately 110,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. For additional information, visit our website: www.lockheedmartin.com.Please follow @LMNews on Twitter for the latest announcements and news across the corporation.Media contacts:KWT Global for Telesat telesat@kwtglobal.comLockheed Martin Chris Pettigrew, +1 720-607-9445; Christopher.w.pettigrew@lmco.comForward-Looking Statements Safe HarborThis news release contains statements that are not based on historical fact and are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this news release, the words “will”, “can”, or other variations of these words or other similar expressions are intended to identify forward-looking statements and information. Actual results may differ materially from the expectations expressed or implied in the forward-looking statements as a result of known and unknown risks and uncertainties. Detailed information about some of the known risks and uncertainties is included in the “Risk Factors” sections of Telesat Canada’s Annual Report on Form 20-F for the fiscal year ended December 31, 2019 and in Telesat Canada’s Quarterly Report on Form 6-K for the quarters ending March 31, 2020 and June 30, 2020, all of which can be obtained from the SEC website.Known risks and uncertainties include but are not limited to: risks associated with operating satellites and providing satellite services, including satellite construction or launch delays, launch failures, in-orbit failures or impaired satellite performance, the impact of COVID-19 on Telesat’s business and the economic environment, the ability to successfully deploy an advanced global LEO satellite constellation, the availability of government and/or other funding for the LEO satellite constellation, the receipt of proceeds in relation to the re-allocation of C-band spectrum, volatility in exchange rates, the ability to expand our existing satellite utilization and risks associated with domestic and foreign government regulation. The foregoing list of important factors is not exhaustive. The information contained in this news release reflects Telesat’s beliefs, assumptions, intentions, plans and expectations as of the date of this news release. Except as required by law, Telesat disclaims any obligation or undertaking to update or revise the information herein.