Earnings Per Share

9 Months Ended

Sep. 30, 2021

Net (loss) income per share:

Earnings Per Share

10. Earnings Per Share

Telesat has awarded employee stock options, which, if exercised, would result in dilution of Loral’s economic ownership interest in Telesat from 62.6% to approximately 61.1%.

The following table presents the dilutive impact of Telesat stock options on Loral’s reported net income for the purpose of computing diluted earnings per share (in thousands):

	Three Months Ended			Nine Months Ended
	September 30,			September 30,
	2020		2021		2020
Net income — basic	$	51,172	$	26,999	$	3,395
Less: Adjustment for dilutive effect of Telesat stock options		(257)		(1,129)		(46)
Net income — diluted	$	50,915	$	25,870	$	3,349

Telesat stock options are excluded from the calculation of diluted loss per share for the three months ended September 30, 2021 as the effect would be antidilutive.

Basic income per share is computed based upon the weighted average number of share of voting and non-voting common stock outstanding. The following is the computation of common shares outstanding for diluted earnings per share (in thousands):

	Three Months Ended			Nine Months Ended
	September 30,			September 30,
	2020		2021		2020
Weighted average common shares outstanding		30,933		30,933		30,933
Unconverted restricted stock units		93		99		84
Common shares outstanding for diluted earnings per share		31,026		31,032		31,017

For the three months ended September 30, 2021, the following unconverted restricted stock units are excluded from the calculation of diluted loss per share as the effect would have been antidilutive (in thousands):

	Three Months Ended
	September 30, 2021
Unconverted restricted stock units	99