Lionsgate Reports Record Revenues of $1.47 Billion for Fiscal 2009, up 8% From Previous Year; Net Loss is $163.0 Million
Company Reports
Lionsgate reported a net loss for the fiscal year ended
Lionsgate reported EBITDA for the year of negative
“We ended our fiscal year on a strong note with record box office in the first calendar quarter,” said Lionsgate Co-Chairman and Chief Executive Officer
The Company reported that cash and cash equivalents were
Overall motion picture revenue for the year grew to a record
Lionsgate’s home entertainment revenue was a record
Television revenue included in the motion picture segment was
Lionsgate’s international revenues of
Mandate Pictures’ revenue of
Television production revenue increased to
Also reflecting growth of the Company’s television business is
Lionsgate senior management will hold its analyst and investor conference call to discuss its fiscal 2009 financial results at
Lionsgate is the leading next generation studio with a diversified presence in the production and distribution of motion pictures, television programming, home entertainment, family entertainment, video-on-demand and digitally delivered content. The Company is leveraging its content leadership and marketing expertise to create a multiplatform global industry leader in entertainment through the recent acquisition of TV Guide Network, one of the 25 most widely distributed cable networks, the recent acquisition of TV Guide.com, a premier content and navigation portal, partnerships that include the FEARnet branded VOD and Internet horror channel with Sony and Comcast, the expected fall 2009 launch of EPIX, a new premium entertainment channel with partners Viacom and MGM, investment in the leading young men’s digital distribution platform Break Media, ownership of the premier independent television syndication company Debmar-Mercury and an alliance with independent filmed entertainment production and distribution company Roadside Attractions.
The Company is a market share leader at the North American theatrical box office for calendar 2009 due to recent theatrical box office successes such as
More information on Lionsgate can be found at www.lionsgate.com.
www.lionsgate.com
For further information, please contact:
Peter D. Wilkes
310-255-3726
pwilkes@lionsgate.com
The matters discussed in this press release include forward-looking statements, including those regarding the timing of our upcoming film slate and the performance of our fiscal 2010. Such statements are subject to a number of risks and uncertainties. Actual results in the future could differ materially and adversely from those described in the forward-looking statements as a result of various important factors, including the substantial investment of capital required to produce and market films and television series, increased costs for producing and marketing feature films, budget overruns, limitations imposed by our credit facilities, unpredictability of the commercial success of our motion pictures and television programming, the cost of defending our intellectual property, difficulties in integrating acquired businesses, technological changes and other trends affecting the entertainment industry, and the risk factors as set forth in Lionsgate’s Annual Report on Form 10-K, filed with the Securities and Exchange Commission on
LIONSGATE ENTERTAINMENT CORP.
CONSOLIDATED BALANCE SHEETS
March 31, March 31,
2009 2008
---- ----
(Amounts in thousands,
except share amounts)
ASSETS
Cash and cash equivalents $138,475 $371,589
Restricted cash 10,056 10,300
Restricted investments 6,987 6,927
Accounts receivable, net of reserve for returns
and allowances of $98,947 (March 31, 2008 -
$95,515) and provision for doubtful
accounts of $9,847 (March 31, 2008 -
$5,978) 227,010 260,284
Investment in films and television programs,
net 702,767 608,942
Property and equipment, net 42,415 13,613
Finite-lived intangible assets, net 78,904 2,317
Goodwill 379,402 224,531
Other assets 81,554 39,255
------ ------
$1,667,570 $1,537,758
========== ==========
LIABILITIES
Bank loans $255,000 $-
Accounts payable and accrued
liabilities 270,561 245,430
Participations and residuals 371,857 385,846
Film and production obligations 304,525 278,016
Subordinated notes and other financing
obligations 331,716 328,718
Deferred revenue 142,093 111,510
------- -------
1,675,752 1,349,520
--------- ---------
Commitments and contingencies
SHAREHOLDERS' EQUITY (DEFICIENCY)
Common shares, no par value, 500,000,000 shares
authorized, 116,950,512 and
121,081,311 shares issued at March 31, 2009
and March 31, 2008, respectively 390,295 434,650
Series B preferred shares (nil and 10 shares
issued and outstanding
at March 31, 2009 and March 31, 2008,
respectively) - -
Accumulated deficit (386,599) (223,619)
Accumulated other comprehensive loss (11,878) (533)
------- ----
(8,182) 210,498
Treasury shares, no par value, 2,410,499
shares at March 31, 2008 - (22,260)
--- -------
(8,182) 188,238
------ -------
$1,667,570 $1,537,758
========== ==========
LIONSGATE ENTERTAINMENT CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
Year Year Year
Ended Ended Ended
March 31, March 31, March 31,
2009 2008 2007
---- ---- ----
(Amounts in thousands, except
per share amounts)
Revenues $1,466,374 $1,361,039 $976,740
Expenses:
Direct operating 793,816 660,924 435,934
Distribution and marketing 669,557 635,666 404,410
General and administration 136,563 119,080 90,782
Depreciation and amortization 7,657 5,500 3,670
----- ----- -----
Total expenses 1,607,593 1,421,170 934,796
--------- --------- -------
Operating income (loss) (141,219) (60,131) 41,944
-------- ------- ------
Other expenses (income):
Interest expense 19,327 16,432 17,832
Interest and other income (5,785) (11,276) (11,930)
Gain on sale of equity
securities - (2,909) (1,722)
Gain on extinguishment of
debt (3,549) - -
------ --- ---
Total other expenses, net 9,993 2,247 4,180
----- ----- -----
Income (loss) before equity
interests and income taxes (151,212) (62,378) 37,764
Equity interests loss (9,044) (7,559) (2,605)
------ ------ ------
Income (loss) before income
taxes (160,256) (69,937) 35,159
Income tax provision 2,724 4,031 7,680
----- ----- -----
Net income (loss) $(162,980) $(73,968) $27,479
========= ======== =======
Basic Net Income (Loss) Per
Common Share $(1.40) $(0.62) $0.25
====== ====== =====
Diluted Net Income (Loss) Per
Common Share $(1.40) $(0.62) $0.25
====== ====== =====
Weighted average number of
common shares outstanding:
Basic 116,795 118,427 108,398
Diluted 116,795 118,427 111,164
LIONSGATE ENTERTAINMENT CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Year Year Year
Ended Ended Ended
March 31, March 31, March 31,
2009 2008 2007
---- ---- ----
(Amounts in thousands)
Operating Activities:
Net income (loss) $(162,980) $(73,968) $27,479
Adjustments to reconcile net income
(loss) to net cash provided
by (used in) operating activities:
Depreciation of property and
equipment 5,925 3,974 2,786
Amortization of deferred
financing costs 4,196 3,581 3,756
Amortization of films and
television programs 458,757 403,319 241,640
Amortization of intangible assets 1,732 1,526 884
Non-cash stock-based compensation 13,438 13,934 7,259
Gain on sale of equity securities - (2,909) (1,722)
Gain on extinguishment of debt (3,549) - -
Deferred income taxes - (1,087) 6,780
Equity interests loss 9,044 7,559 2,605
Changes in operating assets and
liabilities:
Restricted cash 244 (228) (4,095)
Accounts receivable, net 37,304 (128,876) 79,704
Investment in films and
television programs (558,277) (445,714) (297,149)
Other assets (7,363) (2,985) 7,448
Accounts payable and accrued
liabilities 30,323 67,791 (38,509)
Unpresented bank drafts - - (14,772)
Participations and residuals (12,781) 209,806 3,261
Film obligations 59,376 1,387 (6,079)
Deferred revenue 22,705 32,040 38,451
------ ------ ------
Net Cash Flows Provided By (Used In)
Operating Activities (101,906) 89,150 59,727
-------- ------ ------
Investing Activities:
Purchases of investments - auction
rate securities (13,989) (229,262) (865,750)
Proceeds from the sale of
investments - auction
rate securities 14,000 466,641 795,448
Purchases of investments - equity
securities - (4,836) (122)
Proceeds from the sale of
investments -
equity securities - 24,155 390
Acquisition of TV Guide Network,
net of
unrestricted cash acquired (243,158) - -
Acquisition of Mandate Pictures,
net of
unrestricted cash acquired - (41,205) -
Acquisition of Maple Pictures, net
of
unrestricted cash acquired - 1,753 -
Acquisition of Debmar, net of
unrestricted
cash acquired - - (24,119)
Investment in equity method
investees (18,031) (6,460) (5,116)
Increase in loan receivables (28,767) (5,895) -
Purchases of property and equipment (8,674) (3,608) (8,348)
------ ------ ------
Net Cash Flows Provided By (Used In)
Investing Activities (298,619) 201,283 (107,617)
-------- ------- --------
Financing Activities:
Exercise of stock options 2,894 1,251 4,277
Tax withholding requirements on
equity awards (3,734) (5,319) -
Repurchase and cancellation of
common shares (44,968) (22,260) -
Borrowings under bank loan 255,000
Borrowings under financing
arrangements - 3,718 -
Increase in production obligations 189,858 162,400 97,083
Repayment of production obligations (222,034) (111,357) (48,993)
Repayment of subordinated notes and
other
financing obligations (5,377) - -
------ --- ---
Net Cash Flows Provided By
Financing Activities 171,639 28,433 52,367
------- ------ ------
Net Change In Cash And Cash
Equivalents (228,886) 318,866 4,477
Foreign Exchange Effects on Cash (4,228) 1,226 42
Cash and Cash Equivalents -
Beginning Of Period 371,589 51,497 46,978
------- ------ ------
Cash and Cash Equivalents - End Of
Period $138,475 $371,589 $51,497
======== ======== =======
LIONSGATE ENTERTAINMENT CORP.
RECONCILIATION OF FREE CASH FLOW, AS DEFINED
TO NET CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES
Year Year
Ended Ended
March 31, March 31,
2009 2008
---- ----
(Amounts in thousands)
Net Cash Flows Provided By (Used In)
Operating Activities $(101,906) $89,150
Purchases of property and equipment (8,674) (3,608)
Net borrowings under and (repayment) of
production obligations (32,176) 51,043
------- ------
Free Cash Flow, as defined $(142,756) $136,585
========= ========
Free cash flow is defined as net cash flows provided by (used in)
operating activities, less purchases of property and equipment and plus or
minus the net increase or decrease in production obligations. The
adjustment for the production obligations is made because the GAAP based
cash flows from operations reflects a non-cash reduction of cash flows for
the cost of films associated with production obligations prior to the time
the Company actually pays for the film. The Company believes that it is
more meaningful to reflect the impact of the payment for these films in
its free cash flow when the payments are actually made.
Free cash flow is a non-GAAP financial measure as defined in Regulation G
promulgated by the Securities and Exchange Commission. This non-GAAP
financial measure is in addition to, not a substitute for, or superior to,
measures of financial performance prepared in accordance with Generally
Accepted Accounting Principles.
Management believes this non-GAAP measure provides useful information to
investors regarding cash that our operating businesses generate whether
classified as operating or financing activity (related to the production
of our films) within our GAAP based statement of cash flows, before taking
into account cash movements that are non-operational. Free cash flow is a
non-GAAP financial measure commonly used in the entertainment industry and
by financial analysts and others who follow the industry. Not all
companies calculate free cash flow in the same manner and the measure as
presented may not be comparable to similarly titled measures presented by
other companies.
LIONSGATE ENTERTAINMENT CORP.
RECONCILIATION OF EBITDA, AS DEFINED TO NET INCOME (LOSS)
Year Year Year
Ended Ended Ended
March 31, March 31, March 31,
2009 2008 2007
---- ---- ----
(Amounts in thousands)
EBITDA, as defined $(133,562) $(54,631) $45,614
Depreciation and
amortization (7,657) (5,500) (3,670)
Interest expense (19,327) (16,432) (17,832)
Interest and other
income 5,785 11,276 11,930
Equity interests loss (9,044) (7,559) (2,605)
Gain on sale of equity
securities - 2,909 1,722
Gain on extinguishment
of debt 3,549 - -
Income tax provision (2,724) (4,031) (7,680)
------ ------ ------
Net income (loss) $(162,980) $(73,968) $27,479
========= ======== =======
EBITDA is defined as earnings before interest, income tax provision,
depreciation and amortization, equity interests, and gains on
extinguishment of debt and the sale of equity securities. EBITDA as
defined, is a non-GAAP financial measure. Management believes EBITDA as
defined, to be a meaningful indicator of our performance that provides
useful information to investors regarding our financial condition and
results of operations. Presentation of EBITDA as defined, is a non-GAAP
financial measure commonly used in the entertainment industry and by
financial analysts and others who follow the industry to measure operating
performance. While management considers EBITDA as defined, to be an
important measure of comparative operating performance, it should be
considered in addition to, but not as a substitute for, net income and
other measures of financial performance reported in accordance with
Generally Accepted Accounting Principles. EBITDA as defined, does not
reflect cash available to fund cash requirements. Not all companies
calculate EBITDA as defined, in the same manner and the measure as
presented may not be comparable to similarly-titled measures presented by
other companies.
SOURCE Lionsgate