Lionsgate posts net income of $12.2 million in Q1

MUMBAI: Lionsgate reported revenue of $261.3 million, EBITDA of $29.2 million, adjusted EBITDA of $28.7 million and net income of $12.2 million or $0.09 per basic common share for the first quarter of fiscal year 2012 (quarter ended June 30, 2011).

EBITDA of $29.2 million and adjusted EBITDA of $28.7 million for the first quarter compared to EBITDA of negative $35.8 million and adjusted EBITDA of negative $13.7 million in the prior year’s first quarter. The EBITDA gains reflected significantly reduced theatrical marketing costs, increased contributions from the company’s television business and a significant reduction in G&A expenses related to shareholder activism. The prior year’s first quarter also included a one-time increase in stock-based compensation related to shareholder activism.

The company posted net income of $12.2 million for the first quarter compared to net loss of $64.1 million in the prior year’s first quarter. The increase was attributable to reduced theatrical marketing costs, increased contributions from the television business, decreased costs associated with shareholder activism and a significant increase in equity interest income as the Company’s share in EPIX contributed net profit of $4.8 million in the quarter compared to a net loss of $12.0 million in the prior year’s first quarter.

Basic net income per common share for the first quarter was $0.09 on 137.0 million weighted average common shares outstanding, compared to basic net loss per common share of $0.54 on 118.2 million weighted average common shares outstanding in the prior year’s first quarter.

Due to timing of the theatrical and home entertainment release slates, revenue in the first quarter decreased by $65 million from the prior year’s first quarter. The Company had only one theatrical wide release in the quarter compared to three theatrical wide releases in the prior year’s first quarter and no new wide release titles on DVD and digital in the first quarter compared to three new wide release titles on DVD and digital in the prior year’s first quarter.

"Our strong performance in the quarter reflected significant contributions from our television business and our share of the EPIX channel as well as decreased costs in several areas. Our rapid and accelerating transition from traditional to new digital businesses, both domestically and internationally, is helping to drive our progress and positioning us for future growth, and we’re very excited about our upcoming slates that highlight our momentum in building new film and TV franchises as well as extending our existing brands," said Lionsgate co-chairman and CEO Jon Feltheimer.

Overall motion picture revenue for the first quarter was $192.6 million, a decline of 29% from the prior year’s first quarter due to the timing of the theatrical and home entertainment release slates. Within the motion picture segment, theatrical revenue was $27.1 million in the quarter, a decrease of 62% from the prior year’s first quarter as the Company had only one wide theatrical release in the quarter, Tyler Perry’s Madea’s Big Happy Family, compared to three wide theatrical releases in the prior year’s first quarter (Kick Ass, Killers and Why Did I Get Married Too?).

Lionsgate’s home entertainment revenue from both motion pictures and television was $92.9 million in the quarter, a 32% decrease from the prior year’s first quarter, as there were no new wide release theatrical titles released on DVD and digital in the quarter compared to three new wide release theatrical titles released on DVD and digital in the prior year’s first quarter.

Television revenue included in motion picture revenue was $43.3 million in the quarter, a more than fourfold increase from the prior year’s first quarter due to timing as the slate of four wide release theatrical titles licensed to pay TV in the quarter compared to no wide release theatrical titles in the prior year’s first quarter.

International motion picture revenue of $11.6 million (excluding Lionsgate U.K.) for the quarter decreased from the prior year’s first quarter due to the number and timing of releases compared to the prior year’s first quarter.

Lionsgate UK revenue of $12.5 million decreased in the quarter from the prior year’s first quarter due to a slate of only two wide release titles contributing this quarter compared to four wide release titles contributing in the prior year’s first quarter.

Mandate Pictures’ revenue of $9.8 million in the quarter declined from the prior year’s first quarter due to a smaller slate.

Television production revenue was $68.7 million in the first quarter, an increase of 27% from the prior year’s first quarter. Domestic series licensing from the company’s television production, distribution and syndication business increased 24% to $49.9 million in the quarter due to increased revenue from deliveries of the television series Are We There Yet?, Tyler Perry’s House of Payne, The Wendy Williams Show and Seasons 6 (in syndication) and 7 of Weeds. International television revenue increased 61% to $12.6 million led by deliveries of Blue Mountain State Season 2, Weeds Seasons 5 and 6, Mad Men Season 4 and Paris Hilton’s My New BFF: Dubai.

Lionsgate’s filmed entertainment backlog reached a record $546 million at 30 June, 2011. Filmed entertainment backlog represents the amount of future revenue not yet recorded from contracts for the licensing of films and television product for television exhibition and in international markets.

Cash and availability was $436.0 million at June 30, 2011. Lionsgate G&A expenses in the first quarter were $27.9 million, a 57% reduction from the prior year’s first quarter due to significant reductions in costs related to shareholder activism and stock-based compensation (also related to shareholder activism) as well as a 3% decline in other G&A expenses.

Comments

comments