SANTA MONICA, Calif. and VANCOUVER, British Columbia, Aug. 6, 2015 /PRNewswire/ -- Lionsgate (NYSE: LGF) today reported revenue of $408.9 million, adjusted EBITDA of $70.3 million, adjusted net income of $48.9 million or adjusted basic EPS of $0.33, net income of $40.7 million or basic EPS of $0.28 and free cash flow of $94.7 million for the first quarter of fiscal 2016 (quarter ended June 30, 2015).

http://photos.prnewswire.com/prnvar/20130919/LA83194LOGO

The Company's EBITDA and EPS results in the quarter reflected another strong performance from its television production business, driven by a 73% surge in revenue from licensing of international programming, continued momentum at its EPIX pay television partnership and lower theatrical marketing expenses.

"We're pleased to report strong financial results with continued robust free cash flow contributing to the strongest balance sheet in the Company's history," said Lionsgate Chief Executive Officer Jon Feltheimer. "We believe that we're exceptionally well positioned to use the depth of our film and television pipelines, our natural advantages as a global content company with few legacy constraints and the strength of our capital structure to continue moving quickly and opportunistically in a dynamic and disruptive industry environment."

Adjusted EBITDA of $70.3 million for the quarter compared to adjusted EBITDA of $88.6 million in the prior year quarter. Adjusted net income of $48.9 million or adjusted basic EPS of $0.33 for the quarter compared to adjusted net income of $56.8 million or adjusted basic EPS of $0.41 in the prior year quarter.

Net income for the quarter was $40.7 million or basic EPS of $0.28 on 147.6 million weighted average number of common shares outstanding compared to $43.3 million or basic EPS of $0.31 on 138.5 million weighted average number of common shares outstanding during the prior year quarter.

Revenue of $408.9 million for the quarter compared to $449.4 million in the prior year quarter.

The Company reported free cash flow of $94.7 million in the quarter.

Record Filmed Entertainment Backlog Increases to Over $1.3 Billion

Lionsgate's filmed entertainment backlog, or already contracted future revenue not yet recorded, rose to an all-time high of over $1.3 billion at June 30, 2015, compared to $1.1 billion at March 31, 2015.

During the quarter, the Company declared another quarterly cash dividend of $0.07 per common share payable on August 7, 2015 to shareholders of record as of June 30, 2015.

Company's Combined Cash Balance and Availability Approaches $1 Billion

The Company reported a combined cash balance and availability on its revolving credit facility of nearly $1.0 billion at June 30, 2015.

Overall Motion Picture segment revenue for the quarter was $275.4 million compared to $331.9 million in the prior year quarter. Within the Motion Picture segment, theatrical revenue declined to $23.1 million. While the one wide release in the quarter, The Age of Adaline, had a strong theatrical box office performance, the Company recorded only its distribution fee as theatrical revenue under the terms of its distribution arrangement with Lakeshore Entertainment.

The Company anticipates 13 wide releases during the remainder of the fiscal year, including The Hunger Games: Mockingjay - Part 2, Allegiant - Part 1, the supernatural thriller The Last Witch Hunter and the critically-acclaimed revenge thriller Sicario.

Lionsgate's home entertainment revenue from motion picture and television production for the quarter was $129.5 million compared to $140.9 million in the prior year quarter with four recent wide release theatrical titles distributed on home entertainment platforms compared to five recent wide release theatrical titles, including The Hunger Games: Catching Fire, distributed in the prior year quarter. The decline offset gains from increased home entertainment revenue from television programming. The hit film Insurgent launched to robust numbers on packaged media, VOD and electronic sell-through platforms after the quarter.

Television revenue included in the Motion Picture segment of $48.4 million in the quarter compared to $58.8 million in the prior year quarter.

International Motion Picture segment revenue for the quarter was $84.8 million compared to $90.7 million in the prior year quarter.

Strong Television Production Performance Driven by 73% Increase in International Television Revenue

Television production segment revenue grew 14% to $133.6 million in the quarter compared to $117.5 million in the prior year quarter, driven by a 73% increase in international television revenue reflecting licensing revenue from the first three seasons of Orange is the New Black. This growth offset a decline in domestic television revenue due to timing of deliveries. The Company expects to add 16 original new series to its current pipeline of programming during the fiscal year.

Lionsgate senior management will hold its analyst and investor conference call to discuss its fiscal 2016 first quarter financial results at 9:00 A.M. ET/6:00 A.M. PT on Friday, August 7, 2015. Interested parties may participate live in the conference call by calling 1-800-230-1074 (612-288-0329 outside the U.S. and Canada). A full digital replay will be available from Friday morning, August 7 through Friday, August 14 by dialing 1-800-475-6701 (320-365-3844 outside the U.S. and Canada) and using access code 363943.

ABOUT LIONSGATE

Lionsgate is a premier next generation global content leader with a strong and diversified presence in motion picture production and distribution, television programming and syndication, home entertainment, digital distribution, new channel platforms, video games and international distribution and sales. The Company currently has over 30 television shows on more than 20 networks spanning its primetime production, distribution and syndication businesses, including such critically-acclaimed hits as Orange is the New Black, the multiple Emmy Award-winning drama Mad Men, the broadcast network series Nashville, the syndication success The Wendy Williams Show, the drama series Manhattan and the breakout comedy The Royals.

Its feature film business has been fueled by such successes as the blockbuster first three installments of The Hunger Games franchise, the first two installments of the Divergent franchise, The Age of Adaline, John Wick, CBS Films/Lionsgate's The Duff, Now You See Me, Roadside Attractions' Love & Mercy and Mr. Holmes and Pantelion Films' Instructions Not Included, the highest-grossing Spanish-language film ever released in the U.S.

Lionsgate's home entertainment business is an industry leader in box office-to-DVD and box office-to-VOD revenue conversion rate. The Company handles a prestigious and prolific library of approximately 16,000 motion picture and television titles that is an important source of recurring revenue and serves as the foundation for the growth of the Company's core businesses. The Lionsgate and Summit brands remain synonymous with original, daring, quality entertainment in markets around the world.

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 performance of future fiscal years. 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 and television series, budget overruns, limitations imposed by our credit facility and notes, unpredictability of the commercial success of our motion pictures and television programming, the cost of defending our intellectual property, difficulties in integrating acquired businesses, risks related to our acquisition strategy and integration of acquired businesses, the effects of disposition of businesses or assets, technological changes and other trends affecting the entertainment industry, and the risk factors as set forth in Lionsgate's Quarterly Report on Form 10-Q, filed with the Securities and Exchange Commission (the "SEC") on August 6, 2015, which risk factors are incorporated herein by reference. The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements that may be made to reflect any future events or circumstances.



                                               LIONS GATE ENTERTAINMENT CORP.



                                       UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS


                                                   June 30,                         March 31,
                                                        2015                                 2015
                                                        ----                                 ----

                                                             (Amounts in thousands,

                                                             except share amounts)

                           ASSETS

    Cash and cash equivalents                                     $196,550                              $102,697

    Restricted cash                                    2,508                                  2,508

    Accounts receivable, net of
     reserves for returns and
     allowances of $49,508
     (March 31, 2015 -$64,362)
     and provision for doubtful
     accounts of $4,175 (March
     31, 2015 -$4,120)                               761,216                                891,880

    Investment in films and
     television programs, net                      1,539,828                              1,381,829

    Property and equipment, net                       28,354                                 26,651

    Investments                                      499,009                                438,298

    Goodwill                                         323,328                                323,328

    Other assets                                      75,278                                 74,784

    Deferred tax assets                               43,716                                 50,114
                                                      ------                                 ------

    Total assets                                                $3,469,787                            $3,292,089
                                                                ==========                            ==========

                         LIABILITIES

    Senior revolving credit
     facility                                              $             -                          $         -

    5.25% Senior Notes                               225,000                                225,000

    Term Loan                                        400,000                                375,000

    Accounts payable and
     accrued liabilities                             220,314                                332,473

    Participations and
     residuals                                       501,760                                471,661

    Film obligations and
     production loans                                776,411                                656,755

    Convertible senior
     subordinated notes                               98,463                                114,126

    Deferred revenue                                 291,812                                274,787
                                                     -------                                -------

    Total liabilities                              2,513,760                              2,449,802
                                                   ---------                              ---------

    Commitments and contingencies

                    SHAREHOLDERS' EQUITY

    Common shares, no par
     value, 500,000,000 shares
     authorized, 148,261,908
     shares issued (March 31,
     2015 -145,532,978 shares)                       868,487                                830,786

    Retained earnings                                 44,028                                 13,720

    Accumulated other
     comprehensive income
     (loss)                                           43,512                                (2,219)
                                                      ------                                 ------

    Total shareholders' equity                       956,027                                842,287
                                                     -------                                -------

    Total liabilities and
     shareholders' equity                                       $3,469,787                            $3,292,089
                                                                ==========                            ==========



                                                    LIONS GATE ENTERTAINMENT CORP.



                                        UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME


                                                                             Three Months Ended

                                                                                  June 30,
                                                                                --------

                                                                     2015                     2014
                                                                     ----                     ----

                                                                (Amounts in thousands, except per share
                                                                                amounts)

    Revenues                                                                 $408,941                          $449,383

    Expenses:

    Direct operating                                              230,310                              238,873

    Distribution and marketing                                     71,924                               97,321

    General and administration                                     60,712                               64,079

    Depreciation and amortization                                   1,830                                1,346

    Total expenses                                                364,776                              401,619

    Operating income                                               44,165                               47,764
                                                                   ------                               ------

    Other expenses (income):

    Interest expense

    Cash interest                                                  10,371                                9,442

    Amortization of debt discount and
     deferred financing costs                                       2,254                                3,530
                                                                    -----                                -----

    Total interest expense                                         12,625                               12,972

    Interest and other income                                       (600)                             (1,018)
                                                                     ----                               ------

    Total other expenses, net                                      12,025                               11,954
                                                                   ------                               ------

    Income before equity interests and
     income taxes                                                  32,140                               35,810

    Equity interests income                                        11,388                               18,210
                                                                   ------                               ------

    Income before income taxes                                     43,528                               54,020

    Income tax provision                                            2,844                               10,759
                                                                    -----                               ------

    Net income                                                                $40,684                           $43,261
                                                                              =======                           =======


    Basic net income per common share                                           $0.28                             $0.31
                                                                                =====                             =====

    Diluted net income per common share                                         $0.26                             $0.30
                                                                                =====                             =====


    Weighted average number of common shares outstanding:

    Basic                                                         147,619                              138,509

    Diluted                                                       157,498                              152,210


    Dividends declared per common share                                         $0.07                             $0.05



                                             LIONS GATE ENTERTAINMENT CORP.



                               UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS


                                                          Three Months Ended

                                                               June 30,
                                                             --------

                                                        2015                     2014
                                                        ----                     ----

                                                      (Amounts in thousands)

    Operating Activities:

    Net income                                                   $40,684                          $43,261

    Adjustments to reconcile net
     income to net cash used in
     operating activities:

     Depreciation
     and
     amortization                                      1,830                                1,346

     Amortization
     of films
     and
     television
     programs                                        160,419                              158,808

     Amortization
     of debt
     discount
     and
     deferred
     financing
     costs                                             2,254                                3,530

    Non-cash
     share-
     based
     compensation                                     16,591                               16,537

     Distribution
     from
     equity
     method
     investee                                              -                               6,230

    Equity
     interests
     income                                         (11,388)                            (18,210)

    Deferred
     income
     taxes                                               791                                5,105

    Changes in operating assets
     and liabilities:

    Restricted
     cash                                                  -                               1,391

    Accounts
     receivable,
     net                                             134,173                              169,514

    Investment
     in films
     and
     television
     programs                                      (315,861)                           (263,851)

    Other
     assets                                          (2,514)                                 382

    Accounts
     payable
     and
     accrued
     liabilities                                    (95,336)                            (95,666)

     Participations
     and
     residuals                                        29,916                              (1,539)

    Film
     obligations                                     (9,218)                            (34,589)

    Deferred
     revenue                                          16,776                              (4,883)


    Net Cash
     Flows
     Used In
     Operating
     Activities                                     (30,883)                            (12,634)
                                                     -------                              -------

    Investing Activities:

    Proceeds
     from the
     sale of
     equity
     method
     investees                                             -                              14,575

    Investment
     in equity
     method
     investees                                         (800)                             (9,650)

    Purchases
     of
     property
     and
     equipment                                       (3,248)                             (1,427)


    Net Cash
     Flows
     Provided
     By (Used
     In)
     Investing
     Activities                                      (4,048)                               3,498
                                                      ------                                -----

    Financing Activities:

    Senior
     revolving
     credit
     facility
     -
     borrowings                                            -                             170,000

    Senior
     revolving
     credit
     facility
     -
     repayments                                            -                           (183,619)

    Term Loan
     -
     borrowings,
     net of
     deferred
     financing
     costs of
     $616                                             24,384                                    -

     Convertible
     senior
     subordinated
     notes -
     repurchases                                         (5)                                (16)

    Production
     loans -
     borrowings                                      203,087                              207,953

    Production
     loans -
     repayments                                     (74,276)                            (36,859)

    Repurchase
     of common
     shares                                                -                           (109,529)

    Dividends
     paid                                           (10,187)                             (7,066)

    Excess tax
     benefits
     on
     equity-
     based
     compensation
     awards                                               45                                2,771

    Exercise
     of stock
     options                                           3,118                                  406

    Tax
     withholding
     required
     on equity
     awards                                         (16,082)                            (10,247)

    Net Cash
     Flows
     Provided
     By
     Financing
     Activities                                      130,084                               33,794
                                                     -------                               ------

    Net Change
     In Cash
     And Cash
     Equivalents                                      95,153                               24,658

    Foreign
     Exchange
     Effects
     on Cash                                         (1,300)                                  22

    Cash and
     Cash
     Equivalents
     -
     Beginning
     Of Period                                       102,697                               25,692


    Cash and
     Cash
     Equivalents
     -End Of
     Period                                                     $196,550                          $50,372
                                                                ========                          =======



                                   LIONS GATE ENTERTAINMENT CORP.



                     RECONCILIATION OF NET INCOME TO EBITDA AND ADJUSTED EBITDA


                                               Three Months Ended

                                                    June 30,
                                                  --------

                                             2015                 2014(1)
                                             ----                  ------

                                           (Amounts in thousands)

    Net income                                       $40,684                          $43,261

     Depreciation
     and
     amortization                           1,830                               1,346

    Cash
     interest                              10,371                               9,442

    Noncash
     interest
     expense                                2,254                               3,530

    Interest
     and other
     income                                 (600)                            (1,018)

    Income tax
     provision                              2,844                              10,759
                                            -----                              ------

    EBITDA                                           $57,383                          $67,320
                                                     =======                          =======


    Stock-
     based
     compensation(2)                       16,879                              16,421

     Restructuring
     and other
     items(3)                                   -                              4,888

    Backstopped
     prints and
     advertising
     expense                              (3,934)                                  -

    Adjusted
     EBITDA(1)                                       $70,328                          $88,629
                                                     =======                          =======


    (1)              The definition of Adjusted EBITDA
                     now includes the gains or losses
                     from the sale of equity method
                     investments.  Accordingly,
                     Adjusted EBITDA for the quarter
                     ended June 30, 2014 has been
                     revised to include the $11.4
                     million gain on the sale of the
                     Company's interest in FEARnet
                     which occurred April 2014.  This
                     presentation is consistent with
                     the Company's increasing
                     investment activity and practice
                     of including equity interest
                     income and losses from equity
                     method investments in Adjusted
                     EBITDA. Prior to the sale of
                     FEARnet, the Company recognized
                     cumulative equity interest losses
                     before income taxes of
                     approximately $11.7 million from
                     its interest in FEARnet.

    (2)              The three months ended June 30,
                     2015 and 2014 include cash settled
                     SARs expense of $0.3 million and
                     $1.1 million, respectively.

    (3)              Restructuring and other items
                     includes certain unusual items,
                     such as severance and
                     restructuring charges, and certain
                     transaction related costs, when
                     applicable.  Amounts in the
                     quarter ended June 30, 2014
                     primarily represent  severance
                     costs associated with the
                     integration of the marketing
                     operations of the Company's
                     Lionsgate and Summit film labels
                     and costs related to the move of
                     our international sales and
                     distribution organization to the
                     United Kingdom. Approximately $1.2
                     million of these costs are non-
                     cash charges resulting from the
                     acceleration of vesting of stock
                     awards.

EBITDA is defined as earnings before interest, income tax provision, and depreciation and amortization. EBITDA is a non-GAAP financial measure.

Adjusted EBITDA represents EBITDA as defined above adjusted for stock-based compensation, restructuring and other items, and backstopped prints and advertising expense. Stock-based compensation represents compensation expenses associated with stock options, restricted share units and cash and equity settled stock appreciation rights ("SARs"). Restructuring and other items includes certain unusual items, such as severance and restructuring charges, and certain transaction related costs, when applicable. Backstopped prints and advertising expense ("P&A") represents the amount of theatrical marketing expense for third party titles that the Company funded and expensed for which a third party provides a first dollar loss guarantee (subject to a cap) that such expense will be recouped from the performance of the film (which results in minimal risk of loss to the Company). The amount represents the P&A expense incurred net of the impact of expensing the P&A cost over the revenue streams similar to a participation expense (i.e. the P&A under these arrangements are being expensed similar to a participation cost for purposes of the adjusted measure). The amount is subtracted from EBITDA in the three months ended June 30, 2015 because there was no additional backstopped P&A expense incurred in the period and the amount represents the estimated amortization of the amounts previously added back. Adjusted EBITDA is a non-GAAP financial measure.

We believe EBITDA and Adjusted EBITDA to be meaningful indicators of our performance that provide useful information to investors regarding our financial condition and results of operations. EBITDA and Adjusted EBITDA are non-GAAP financial measures commonly used in the entertainment industry and by financial analysts and others who follow the industry to measure operating performance. While we consider EBITDA and Adjusted EBITDA to be important measures of comparative operating performance, they should be considered in addition to, but not as a substitute for, net income and other measures of financial performance reported in accordance with GAAP. EBITDA and Adjusted EBITDA do not reflect cash available to fund cash requirements. Not all companies calculate EBITDA or Adjusted EBITDA in the same manner and the measures, as presented, may not be comparable to similarly-titled measures presented by other companies.



                         LIONS GATE ENTERTAINMENT CORP.



                      RECONCILIATION OF FREE CASH FLOW TO

                  NET CASH FLOWS USED IN OPERATING ACTIVITIES


                                          Three Months Ended

                                             June 30,
                                             --------

                                  2015                     2014
                                  ----                     ----

                                      (Amounts in thousands)

    Net Cash
     Flows
     Used In
     Operating
     Activities                          $(30,883)                       $(12,634)

    Purchases
     of
     property
     and
     equipment                 (3,248)                          (1,427)

    Net
     borrowings
     under and
     (repayment)
     of
     production
     loans                     128,811                           171,094

    Excess tax
     benefits
     on
     equity-
     based
     compensation
     awards                         45                             2,771
                                   ---                             -----

    Free Cash
     Flow, as
     defined                               $94,725                         $159,804
                                           =======                         ========

Free cash flow is defined as net cash flows used in operating activities, less purchases of property and equipment, plus or minus the net increase or decrease in production loans, plus or minus excess tax benefits on equity-based compensation awards. The adjustment for the production loans is made because the GAAP based cash flows from operations reflects a non-cash reduction of cash flows for the cost of films and television programs associated with production loans prior to the time the Company actually pays for the film or television program. The Company believes that it is more meaningful to reflect the impact of the payment for these films and television programs 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 GAAP.

We believe 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 and television programs) 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.



                                                            LIONS GATE ENTERTAINMENT CORP.



                                                      RECONCILIATION OF EBITDA TO FREE CASH FLOW


                                                                                           Three Months Ended

                                                                                                June 30,
                                                                                              --------

                                                                                   2015                                2014
                                                                                   ----                                ----

                                                                                       (Amounts in thousands)

    EBITDA                                                                                   $57,383                                            $67,320


    Plus: Amortization of film and television programs                          160,419                               158,808

    Less: Cash paid for film and television programs(1)                       (196,268)                            (127,346)
                                                                               --------                              --------

    Amortization of (cash paid for) film and television
     programs in excess of cash paid (amortization)                            (35,849)                               31,462


    Plus: Non-cash stock-based compensation                                      16,591                                16,537

    Plus: Distributions from equity method investee                                   -                                6,230

    Less: Equity interests income                                              (11,388)                             (18,210)


    EBITDA adjusted for items above                                              26,737                               103,339


    Changes in other operating assets and liabilities:

    Restricted cash                                                                   -                                1,391

    Accounts receivable, net                                                    134,173                               169,514

    Other assets                                                                (2,514)                                  382

    Accounts payable and accrued liabilities                                   (95,336)                             (95,666)

    Participations and residuals                                                 29,916                               (1,539)

    Deferred revenue                                                             16,776                               (4,883)
                                                                                 ------                                ------

                                                                                 83,015                                69,199


    Purchases of property and equipment                                         (3,248)                              (1,427)

    Interest, taxes and other(2)                                               (11,779)                             (11,307)


    Free Cash Flow, as defined                                                               $94,725                                           $159,804
                                                                                             =======                                           ========

    _________________________

    (1) Cash paid for film and television programs is calculated using the following amounts as presented in our consolidated statement of cash flows:

    Change in investment in film and television programs                                  $(315,861)                                        $(263,851)

    Change in film obligations                                                  (9,218)                             (34,589)

    Production loans - borrowings                                               203,087                               207,953

    Production loans - repayments                                              (74,276)                             (36,859)
                                                                                -------                               -------

    Total cash paid for film and television programs                                      $(196,268)                                        $(127,346)
                                                                                           =========                                          =========

    _________________________

    (2) Interest, taxes and other consists of the following:

    Cash interest                                                                          $(10,371)                                          $(9,442)

    Interest and other income                                                       600                                 1,018

    Current income tax provision                                                (2,053)                              (5,654)

    Excess tax benefits on equity-based compensation
     awards                                                                          45                                 2,771

    Total interest, taxes and other                                                        $(11,779)                                         $(11,307)
                                                                                            ========                                           ========

This reconciliation is provided to illustrate the difference between our EBITDA and free cash flow which are both separately reconciled to their corresponding GAAP metrics.



                                                                                                    LIONS GATE ENTERTAINMENT CORP.





                                                                                          RECONCILIATION OF INCOME BEFORE INCOME TAXES, NET

                                                                                     INCOME, AND BASIC AND DILUTED EPS TO ADJUSTED INCOME BEFORE

                                                                            INCOME TAXES, ADJUSTED NET INCOME, AND ADJUSTED BASIC AND DILUTED EPS


                                                                                                    Three Months Ended June 30, 2015
                                                                                                    --------------------------------

                                                                                            (Amounts in thousands, except per share amounts)

                                                                              Income before
                                                                              income taxes               Net income               Basic EPS*              Diluted EPS*
                                                                             --------------              ----------               ---------               -----------

    As reported                                                                                $43,528                                           $40,684                                             $0.28                                        $0.26

    Stock-based compensation(1)                                                      16,879                               10,689                                    0.07                               0.07

    Backstopped prints and advertising expense(2)                                   (3,934)                             (2,491)                                 (0.02)                            (0.02)

    As adjusted for stock-based compensation and
     backstopped prints and advertising expense                                                $56,473                                           $48,882                                             $0.33                                        $0.31
                                                                                               =======                                           =======                                             =====                                        =====


                                                                                                   Three Months Ended June 30, 2014**
                                                                                                   ---------------------------------

                                                                                            (Amounts in thousands, except per share amounts)

                                                                              Income before
                                                                              income taxes               Net income               Basic EPS*              Diluted EPS*
                                                                             --------------              ----------               ---------               -----------

    As reported                                                                                $54,020                                           $43,261                                             $0.31                                        $0.30

    Stock-based compensation(1)                                                      16,421                               10,401                                    0.08                               0.07

    Restructuring and other items(3)                                                  4,888                                3,096                                    0.02                               0.02

    As adjusted for stock-based compensation and
     restructuring and other items**                                                           $75,329                                           $56,758                                             $0.41                                        $0.38
                                                                                               =======                                           =======                                             =====                                        =====

    _________________________

    * Basic and Diluted EPS amounts may not add precisely due to rounding

    ** The definition of adjusted income before income taxes, adjusted net income and adjusted earnings per share now includes the gains or losses from the sale of equity method investments. Accordingly, adjusted income before income taxes,
     and adjusted net income for the quarter ended June 30, 2014 has been revised to include the gain on the April 2014 sale of the Company's interest in FEARnet of $11.4 million ($7.2 million after income taxes) and representing adjusted
     basic and diluted earnings per share of $0.05 for the quarter ended June 30, 2014. This presentation is consistent with the Company's increasing investment activity and practice of including equity interest income and losses from equity
     method investments in adjusted income before income taxes, adjusted net income and adjusted earnings per share. Prior to the sale of FEARnet, the Company recognized cumulative equity interest losses before income taxes of approximately
     $11.7 million from the Company's interest in FEARnet.

Adjusted income before income taxes, adjusted net income and adjusted basic and diluted EPS are adjusted for the following items (The adjustment to net income is net of the tax impact calculated using the statutory tax rate applicable to each adjustment):

(1) Stock-based compensation: Adjustments for stock-based compensation represents compensation expenses associated with stock options, restricted share units, cash and equity settled SARs.

(2) Backstopped prints and advertising expense: This adjusts income before income taxes and net income to eliminate the amount of theatrical marketing expense for third party titles that the Company funded and expensed for which a third party provides a first dollar loss guarantee (subject to a cap) that such expense will be recouped from the performance of the film (which results in minimal risk of loss to the company). The amount represents the P&A expense incurred net of the impact of expensing the P&A cost over the revenue streams similar to a participation expense (i.e. the P&A under these arrangements are being expensed similar to a participation cost for purposes of the adjusted measure). The amount is subtracted in the three months ended June 30, 2015 because there was no additional backstopped P&A expense incurred in the period and the amount represents the estimated amortization of the amounts previously added back.

(3) Restructuring and other items: Adjustments for certain unusual items, such as severance and restructuring charges, and certain transaction related costs, when applicable. Amounts in the quarter ended June 30, 2014 primarily represent severance costs associated with the integration of the marketing operations of the Company's Lionsgate and Summit film labels and costs related to the move of our international sales and distribution organization to the United Kingdom. A portion of these costs are non-cash charges resulting from the acceleration of vesting of stock awards.

We believe that these non-GAAP measures provide useful information to investors regarding the Company's results as compared to historical periods. The Company uses these measures, among other measures, to evaluate the operating performance of the Company. The Company believes that the adjusted results provide relevant and useful information for investors because they clarify the Company's actual operating performance and allow investors to review our operating performance in the same way as our management. Since these measures are not calculated in accordance with generally accepted accounting principles, they should not be considered in isolation of, or as a substitute for income before income taxes, net income, basic and diluted EPS. Not all companies calculate adjusted income before income taxes, adjusted net income, and adjusted basic and diluted EPS in the same manner and the measures as presented may not be comparable to similarly titled measures presented by other companies.

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SOURCE Lionsgate