Loral Space & Communications Inc. (NASDAQ: LORL) has reported its financial results for the three months ended on March 31, 2012.

Company highlights:

• In March 2012, Telesat(1) completed a refinancing transaction, resulting in:
• Telesat refinancing its credit facilities, with an increase of $490 million in debt outstanding
• Telesat approving a special cash distribution of CAD 656 million to its shareholders, of which CAD 586 million was paid during the quarter, with Loral receiving CAD 375 million


• In April 2012, Telesat announced that it will be issuing $700 million of new 6 percent senior notes due in 2017. Proceeds from the issuance, together with cash on hand, will be used to redeem or repurchase the 11 percent senior notes due in 2015
• Loral declared and paid a special dividend of $13.60 per share for an aggregate dividend of $418 million. 
 Backlog at Space Systems/Loral (SS/L) reached a record $2 billion as a result of three satellite orders in the first quarter

Combined segment revenues and Adjusted EBITDA(2) for the quarter were $483 million and $155 million, respectively, which compared to $486 million and $195 million, respectively, in the first quarter of 2011. All of Telesat's revenue and Adjusted EBITDA are included in these segment results. Loral's income statement, however, reflects its 64 percent economic interest in Telesat under the equity method of accounting, and accordingly, does not consolidate Telesat's financial results with those of the company.

Loral's revenues and Adjusted EBITDA for the quarter after eliminating all of Telesat's results were $287 million and $6 million, respectively, compared to $280 million and $35 million respectively, in the first quarter of 2011.

Loral reported net income of $8 million in the current quarter compared to net income of $68 million for the first quarter of 2011. Net income for 2012 was negatively impacted by lower Adjusted EBITDA at SS/L and the expense related to Telesat's refinancing and cash distribution to stakeholders, including management option holders, as more fully described below.

Diluted earnings per share for the first quarter of 2012 were $0.24 compared to diluted earnings per share of $2.10 in the first quarter of 2011. Cash at the end of the first quarter was $509 million, which reflects a special cash distribution from Telesat of CAD 375 million but does not reflect payment of the Loral dividend of $418 million in April 2012. There were no drawings against the $150 million revolving credit facility at SS/L.

"The quarter is most noteworthy for the financing activities at Telesat including the special distribution made by Telesat to its stakeholders," said Michael Targoff, chief executive officer of Loral Space & Communications. "This provided tangible rewards to Telesat's shareholders for the steady progress in Telesat's financial performance since our investment."

To read the entire financial report, access this direct webpage link.