On Thursday, Loral Space & Communications, Inc. (NASDAQ:LORL) reported its first quarter earnings and discussed the following topics in its earnings conference call. Take a look.
Strategic Alternatives with SS/L
Jeremy Khan – Bowstreet: I was wondering if you could just touch on the strategic alternatives with SS/L and if you’re still contemplating a spin at this time?
Michael B. Targoff – CEO, President and VC of the Board of Directors: Really, I am just going to repeat what I said on the last call, because as I said in my remarks, our consideration is ongoing and Jeremy, I am not a position to say more than that today, but we have engaged in looking at storing some alternatives that have put the spin on the back burner because we believe the alternatives have the potential to be more promising and more beneficial to the shareholders, and with that said, that’s what we’re doing right now.
Jeremy Khan – Bowstreet: Lastly, if there was a sale of the business, will there be any adverse tax consequences?
Michael B. Targoff – CEO, President and VC of the Board of Directors: I am sorry, say that again.
Jeremy Khan – Bowstreet: Can you just briefly comment on if there will be any adverse tax consequences from the sale of the business?
Michael B. Targoff – CEO, President and VC of the Board of Directors: Well, we have a good tax basis and if the sale – if there is a sale and if the sale is taxable there would be a tax on the difference of basis. First is the price in consideration of the NOLs we have too, so if we were a tax payer, if there is a sale of the business at a price that exceeds the basis on the NOL.
Douglas Wurtz – Tiger Veda: I am just curious why the company didn’t buy back any stock in the first quarter, and what is the company’s appetite for repurchasing shares today, given the recent sell off?
Michael B. Targoff – CEO, President and VC of the Board of Directors: Given the distribution at our strategic alternatives, I don’t think it’s appropriate for us to be buying back stock. So we are in a position where we are going to focus on our activities, and in some time in the future, we will consider buying back stock again.
Douglas Wurtz – Tiger Veda: Is there a strategic alternative to spin, invest and sale, an outright sale or a JV? Can you comment on whether the potential buyers or JV partners are domestic or foreign or both?
Michael B. Targoff – CEO, President and VC of the Board of Directors: It could be anything. I am not going to be more specific. It could be a sale, it could be a purchase, it could be a JV. I am just not going to be more specific at this point, and it could be the partner or the side of the transaction could be either domestic or international.