Loral Space mmunications : Quarterly Report

UNITED STATES SECURITIES AND EXCHANGE COMMISSION‌‌‌ Washington, D.C. 20549 Form 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2017 Commission file number 1-14180 Loral Space & Communications Inc. 600 Fifth Avenue New York, New York 10020 Telephone: [phone] Jurisdiction of incorporation: Delaware IRS identification number: 87-0748324

indicate by check mark whether the registrant (1) has filed all reports required to be filed by section 13 or 15(d) of the securities Exchange act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  No 

indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every interactive Data File required to be submitted and posted pursuant to rule 405 of regulation s-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes  No 

indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. see the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in rule 12b-2 of the Exchange act.

Large accelerated filer		accelerated filer	
Non-accelerated filer	(Do not check if a smaller reporting company)	smaller reporting company	
Emerging growth company	

if an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to section 13(a) of the Exchange act. 

indicate by check mark whether the registrant is a shell company (as defined in Exchange act rule 12b-2 of the act). Yes  No 

as of November 1, 2017, 21,427,078 shares of the registrant's voting common stock and 9,505,673 shares of the registrant's non-voting common stock were outstanding.

LORAL SPACE & COMMUNICATIONS INC. INDEX TO QUARTERLY REPORT ON FORM 10-Q For the quarterly period ended September 30, 2017

Item 1: Financial Statements (Unaudited)

PART I - FINANCIAL INFORMATION

Page No.

Condensed Consolidated Balance sheets as of september 30, 2017 and December 31, 2016 3

Condensed Consolidated statements of operations and Comprehensive income (Loss) for the three and nine months ended september 30, 2017 and 4

september 30, 2016

Condensed Consolidated statements of shareholders' Equity for the nine months ended september 30, 2017 and the year ended December 31, 2016 5

Condensed Consolidated statements of Cash Flows for the nine months ended september 30, 2017 and september 30, 2016 6

Notes to Condensed Consolidated Financial statements 7

Item 2: management's Discussion and analysis of Financial Condition and results of operations 25

Item 3: Quantitative and Qualitative Disclosures about market risk 40

PART II - OTHER INFORMATION

Item 4: Disclosure Controls and procedures 41

Item 1: Legal proceedings 43

Item 1A: risk Factors 43

Item 6: Exhibits 43

signatures 44

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PART I FINANCIAL INFORMATION
Item 1. Financial Statements
LORAL SPACE & COMMUNICATIONS INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share data) (Unaudited)
September 30,	December 31,
2017	2016
ASSETS
Current assets:
Cash and cash equivalents	$ 259,263	$ 37,458
other current assets	3,685	3,483
Total current assets	262,948	40,941
investments in affiliates	24,117	107,950
Deferred tax assets	101,567	115,285
other assets	365	55
Total assets	$ 388,997	$ 264,231
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
accrued employment costs	$ 2,026	$ 2,356
income taxes payable	43,110	-
other current liabilities	2,298	3,772
Total current liabilities	47,434	6,128
pension and other postretirement liabilities		16,857	18,433
Long-term liabilities		71,050	69,259
Total liabilities		135,341	93,820

Commitments and contingencies shareholders' Equity:

preferred stock, 0.01 par value; 10,000,000 shares authorized, no shares issued and outstanding - - Common stock:

voting common stock, 0.01 par value; 50,000,000 shares authorized, 21,581,572 issued 216 216

Non-voting common stock, 0.01 par value; 20,000,000 shares authorized 9,505,673 issued and outstanding 95 95

paid-in capital 1,019,988 1,019,988

Treasury stock (at cost), 154,494 shares of voting common stock (9,592) (9,592)

accumulated deficit (728,000) (826,460)

accumulated other comprehensive loss (29,051) (13,836)

Total shareholders' equity 253,656 170,411

Total liabilities and shareholders' equity $ 388,997 $ 264,231 see notes to condensed consolidated financial statements

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LORAL SPACE & COMMUNICATIONS INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (In thousands, except per share amounts) (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016

general and administrative expenses	$ (2,015)	$ (1,709)	$ (6,000)	$ (4,900)
operating loss	(2,015)	(1,709)	(6,000)	(4,900)
interest and investment income	728	44	1,754	140
interest expense	(11)	(6)	(22)	(15)
other expense	(985)	(187)	(2,858)	(1,306)
Loss from continuing operations before income taxes and equity in net income of affiliates	(2,283)	(1,858)	(7,126)	(6,081)
income tax provision	(16,552)	(8,911)	(82,236)	(31,066)
Loss from continuing operations before equity in net income of affiliates	(18,835)	(10,769)	(89,362)	(37,147)
Equity in net income of affiliates	43,372	6,948	183,086	96,799
income (loss) from continuing operations	24,537	(3,821)	93,724	59,652
Loss from discontinued operations, net of tax	-	(71)	(5)	(306)
Net income (loss)	24,537	(3,892)	93,719	59,346
other comprehensive (loss) income, net of tax	(12,356)	1,713	(15,215)	11,289
Comprehensive income (loss)	$ 12,181	$ (2,179)	$ 78,504	$ 70,635

income (loss) from continuing operations	$ 0.79	$ (0.12)	$ 3.03	$ 1.93
Loss from discontinued operations, net of tax	-	-	-	(0.01)
Net income (loss)	$ 0.79	$ (0.12)	$ 3.03	$ 1.92
Diluted income (loss) from continuing operations	$ 0.77	$ (0.12)	$ 2.98	$ 1.85
Loss from discontinued operations, net of tax	-	-	-	(0.01)
Net income (loss)	$ 0.77	$ (0.12)	$ 2.98	$ 1.84

Net income (loss) per share: Basic

Weighted average common shares outstanding:

Basic	30,933	30,933	30,933	30,933
Diluted	31,008	30,933	31,008	31,008

see notes to condensed consolidated financial statements

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