LIONSGATE REPORTS RESULTS FOR FIRST QUARTER FISCAL 2024
First Quarter Revenue of $909 million was Up 2% Year-over-Year
Operating Loss was $16.8 Million; Net Loss Attributable to Lionsgate Shareholders
was $70.7 Million or $0.31 Diluted Net Loss Per Share
Adjusted OIBDA of $85.7 Million was Up Significantly Year-over-Year
Trailing Twelve Month Film & Television Library Revenue was a Record $896
Million
Adjusted Net Loss Attributable to Lionsgate Shareholders was $9.8 Million or $0.04
Adjusted Diluted Net Loss Per Share
STARZ Focuses Operations on U.S., U.K. and Canada; Announces Exit of Latin
America by December 31st
SANTA MONICA, CA, and VANCOUVER, BC, August 9, 2023 - Lionsgate (NYSE: LGF.A, LGF.B) today reported first quarter (quarter ended June 30, 2023) revenue of $908.6 million, operating loss of $16.8 million and net loss attributable to Lionsgate shareholders of $70.7 million or $0.31 diluted net loss per share on 230.2 million diluted weighted average common shares outstanding. Adjusted net loss attributable to Lionsgate shareholders in the quarter was $9.8 million or $0.04 adjusted diluted net earnings per share on 230.2 million diluted weighted average common shares outstanding, with Adjusted OIBDA of $85.7 million.
"I'm pleased to report a strong financial quarter with another record library performance," said Lionsgate CEO Jon Feltheimer. "We continued to execute our strategic agenda culminating in our signing a definitive agreement with Hasbro last week to acquire global entertainment platform eOne. The acquisition checks off all the boxes by adding thousands of titles to our library, growing our portfolio of brands and strengthening our scripted and unscripted television business."
Revenue from Lionsgate's film and television library increased to a record $896 million for the trailing 12 months. Lionsgate ended the quarter with $323 million in available cash and an undrawn revolving credit facility of $1.25 billion. During the quarter, the Company purchased $85 million of its bonds for $61 million, driving a $24 million reduction in its net debt and future cash interest savings.
Studio backlog from the Motion Picture and Television Production segments was $1.5 billion at June 30, 2023.
Subsequent to the end of the quarter, STARZ made a strategic decision to exit Latin America by December 31st and focus its operations on the U.S., U.K. and Canada.
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First Quarter Results
Segment Results
Media Networks segment revenue was $381.1 million compared to $381.2 million in the prior year quarter. Segment revenue was driven by growth in domestic streaming revenue and international revenue, offset by lower domestic linear revenue. Segment profit grew to $31.9 million compared to segment losses of $37.0 million in the prior year quarter, driven by growth in international revenue, lower content and operating expenses due to international market closures, and lower operating expenses domestically. Total STARZ global OTT subscribers increased by 100K sequentially on a pro forma basis.
The Studio Business, comprised of the Motion Picture and Television Production segments, reported revenue of $625.0 million, a decrease of 12% from $711.1 million in the prior year quarter. Segment profit of $92.1 million increased by 31% from $70.1 million in the prior year quarter.
Motion Picture segment revenue increased by 46% to $406.5 million compared to $278.8 million in the prior year quarter. Segment profit increased by 37% to $69.2 million compared to $50.5 million in the prior year quarter. Motion Picture revenue and segment profit growth were driven by strength in box office and home entertainment performance of John Wick: Chapter 4, successful multiplatform releases and strong library sales.
Television Production segment revenue decreased to $218.5 million compared to $432.3 million in the prior year quarter. Segment profit increased 17% to $22.9 million compared to $19.6 million in the prior year quarter. Revenue reflects an unfavorable comparison with last year's higher-than-normal content deliveries, while the segment profit growth was driven by favorable year-over-year comparisons in television syndication.
Lionsgate senior management will hold its analyst and investor conference call to discuss its fiscal 2024 first quarter results today, August 9th, at 6:00 PM ET/3:00 PM PT. Interested parties may listen to the live webcast by visiting the events page on the Lionsgate Investor Relations websiteor via the following link. A full replay will become available this evening by clicking the same link.
About Lionsgate
Lionsgate (NYSE: LGF.A, LGF.B) encompasses world-class motion picture and television studio operations aligned with the STARZ premium global subscription platform to bring a unique and varied portfolio of entertainment to consumers around the world. The Company's film, television, subscription and location-based entertainment businesses are backed by a 18,000-title library and a valuable collection of iconic film and television franchises. A digital age company driven by its entrepreneurial culture and commitment to innovation, the Lionsgate brand is synonymous with bold, original, relatable entertainment for audiences worldwide.
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For further information, investors should contact:
Nilay Shah
310-255-3651nshah@lionsgate.com
For media inquiries, please contact:
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Peter Wilkes
310-255-3726pwilkes@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, but not limited to: changes in our business strategy including the plan to potentially spin-off our studio business; the substantial investment of capital required to produce and market films and television series; budget overruns; limitations imposed by our credit facilities and notes; unpredictability of the commercial success of our motion pictures and television programming; risks related to acquisition and integration of acquired businesses; the effects of dispositions of businesses or assets, including individual films or libraries; the cost of defending our intellectual property; technological changes and other trends affecting the entertainment industry; potential adverse reactions or changes to business or employee relationships; the impact of global pandemics on our business; weakness in the global economy and financial markets, including a recession and bank failures; wars, such as Russia's invasion of Ukraine, terrorism, and international conflicts that could cause significant economic disruption and political and social instability; labor disruptions or strikes, such as the impact of the strikes by the Writers' Guild of America and the from the Screen Actors Guild - American Federation of Television and Radio Artists; and the other risk factors set forth in Lionsgate's Form 10-Q filed with the Securities and Exchange Commission on August 9, 2023. 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.
Additional Information Available on Website
The information in this press release should be read in conjunction with the financial statements and footnotes contained in the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2023, which has been posted on the Company's website at http://investors.lionsgate.com/financial-reports/sec-filings.Trending schedules containing certain financial information will also be available at https://investors.lionsgate.com/financial-reports/quarterly-results/2024.
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LIONS GATE ENTERTAINMENT CORP.
CONSOLIDATED BALANCE SHEETS
June 30, | March 31, | ||||||||
2023 | 2023 | ||||||||
(Unaudited, amounts in millions) | |||||||||
ASSETS | |||||||||
Cash and cash equivalents | $ | 322.7 | $ | 272.1 | |||||
Accounts receivable, net | 516.3 | 582.1 | |||||||
Other current assets | 277.7 | 264.2 | |||||||
Total current assets | 1,116.7 | 1,118.4 | |||||||
Investment in films and television programs and program rights, net | 3,008.1 | 2,947.9 | |||||||
Property and equipment, net | 88.5 | 89.5 | |||||||
Investments | 64.5 | 64.7 | |||||||
Intangible assets | 1,265.6 | 1,300.1 | |||||||
Goodwill | 1,289.5 | 1,289.5 | |||||||
Other assets | 629.3 | 616.1 | |||||||
Total assets | $ | 7,462.2 | $ | 7,426.2 | |||||
LIABILITIES | |||||||||
Accounts payable | $ | 350.3 | $ | 368.1 | |||||
Content related payables | 203.1 | 184.1 | |||||||
Other accrued liabilities | 280.2 | 273.4 | |||||||
Participations and residuals | 526.6 | 549.3 | |||||||
Film related obligations | 1,314.0 | 1,007.2 | |||||||
Debt - short term portion | 43.6 | 41.4 | |||||||
Deferred revenue | 187.7 | 147.2 | |||||||
Total current liabilities | 2,905.5 | 2,570.7 | |||||||
Debt | 1,887.1 | 1,978.2 | |||||||
Participations and residuals | 347.4 | 329.6 | |||||||
Film related obligations | 858.8 | 1,016.4 | |||||||
Other liabilities | 304.7 | 317.9 | |||||||
Deferred revenue | 51.3 | 52.0 | |||||||
Deferred tax liabilities | 32.0 | 31.8 | |||||||
Total liabilities | 6,386.8 | 6,296.6 | |||||||
Commitments and contingencies | |||||||||
Redeemable noncontrolling interest | 347.2 | 343.6 | |||||||
EQUITY | |||||||||
Class A voting common shares, no par value, 500.0 shares authorized, 83.5 shares issued | 672.9 | 672.3 | |||||||
(March 31, 2023 - 83.5 shares issued) | |||||||||
Class B non-voting common shares, no par value, 500.0 shares authorized, 148.0 shares | 2,431.2 | 2,430.9 | |||||||
issued (March 31, 2023 - 145.9 shares issued) | |||||||||
Accumulated deficit | (2,516.3) | (2,439.6) | |||||||
Accumulated other comprehensive income | 138.6 | 120.9 | |||||||
Total Lions Gate Entertainment Corp. shareholders' equity | 726.4 | 784.5 | |||||||
Noncontrolling interests | 1.8 | 1.5 | |||||||
Total equity | 728.2 | 786.0 | |||||||
Total liabilities, redeemable noncontrolling interest and equity | $ | 7,462.2 | $ | 7,426.2 | |||||
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LIONS GATE ENTERTAINMENT CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended | ||||||
June 30, | ||||||
2023 | 2022 | |||||
(Unaudited, amounts in millions, | ||||||
except per share amounts) | ||||||
Revenues | $ | 908.6 | $ | 893.9 | ||
Expenses | ||||||
Direct operating | 481.2 | 596.5 | ||||
Distribution and marketing | 244.2 | 211.5 | ||||
General and administration | 123.6 | 103.7 | ||||
Depreciation and amortization | 44.4 | 42.4 | ||||
Restructuring and other | 32.0 | 8.0 | ||||
Total expenses | 925.4 | 962.1 | ||||
Operating loss | (16.8) | (68.2) | ||||
Interest expense | (62.0) | (46.1) | ||||
Interest and other income | 1.9 | 1.3 | ||||
Other expense | (5.7) | (5.0) | ||||
Gain (loss) on extinguishment of debt | 21.2 | (1.3) | ||||
Gain on investments | - | 1.8 | ||||
Equity interests income (loss) | (0.3) | 0.9 | ||||
Loss before income taxes | (61.7) | (116.6) | ||||
Income tax provision | (9.8) | (6.0) | ||||
Net loss | (71.5) | (122.6) | ||||
Less: Net loss attributable to noncontrolling interests | 0.8 | 3.6 | ||||
Net loss attributable to Lions Gate Entertainment Corp. shareholders | $ | (70.7) | $ | (119.0) | ||
Per share information attributable to Lions Gate Entertainment Corp. | ||||||
shareholders: | ||||||
Basic net loss per common share | $ | (0.31) | $ | (0.53) | ||
Diluted net loss per common share | $ | (0.31) | $ | (0.53) | ||
Weighted average number of common shares outstanding: | ||||||
Basic | 230.2 | 225.6 | ||||
Diluted | 230.2 | 225.6 |
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Lions Gate Entertainment Corporation published this content on 09 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 August 2023 20:27:58 UTC.