Mumbai : Lionsgate reported revenue of $326.6 million and adjusted EBITDA of negative $13.7 million for the first quarter of fiscal year 2011.

Revenue declined 14% compared to the prior year’s first quarter due primarily to the deconsolidation of TV Guide Network revenue, timing of television deliveries, decline in Mandate Pictures revenue compared to a record quarter last year as well as a decline in home entertainment revenue attributable to the smaller theatrical slate in fiscal 2010.

The Company noted that its television business remains on track to exceed last year’s $351 million in revenue and $39.5 million contribution before overhead for the full year. The Company’s first quarter library revenue was consistent with the prior year’s first quarter, and full year library revenue is expected to equal or surpass last year’s record revenue and cash flow.

The Company reported adjusted EBITDA of negative $13.7 million in the first quarter compared to $53.4 million for the prior year first quarter. Net loss was $64.1 million in the quarter compared to net income of $36.3 million in the prior year’s first quarter. The loss was attributable primarily to an increase of $71.2 million in theatrical marketing costs as the Company distributed three wide releases in the quarter compared to one wide release in the prior year’s first quarter. Stock-based compensation increased $23.3 million in the first quarter, primarily reflecting accelerated vesting of restricted share units (RSU’s), stock options and stock appreciation rights caused by the triggering of change of control provisions in senior management contracts. The quarter also included $7.3 million in corporate defense costs related to shareholder activist activities.

Basic net loss per common share for the quarter was $0.54 on 118.2 million weighted average common shares outstanding, compared to basic net income of $0.31 on 117.1 million weighted average common shares outstanding in the prior year’s first quarter.

"Our first quarter was affected by marketing costs for our three wide releases, timing of television deliveries and the underperformance of our theatrical release Killers. With our upcoming theatrical slate, beginning with Friday’s opening of The Expendables, and the continued strength of our television, library and channel businesses, we remain poised to achieve our full year financial targets," said Lionsgate Co-Chairman and CEO Jon Feltheimer.

Overall motion picture revenue for the first quarter of fiscal 2011 was unchanged from the first quarter of the prior year at $272.7 million. Within the motion picture segment, theatrical revenue was $71.3 million, an increase of 214% from the prior year’s first quarter, as the Company’s theatrical release slate of Tyler Perry’s Why Did I Get Married Too?, Kick Ass and Killers achieved significantly higher box office than the film slate in the first quarter of the prior year, which included Crank 2: High Voltage.

Lionsgate’s home entertainment revenue from both motion pictures and television was $117.1 million in the first quarter, a 22% decline from the first quarter of the prior year, reflecting a smaller fiscal 2010 theatrical slate.

Television included in motion picture revenue (primarily pay television) was $30.0 million in the first quarter, an increase of 46% from the prior year’s first quarter.

International motion picture revenue of $29.1 million (excluding Lionsgate U.K.) in the first quarter increased 66% from the prior year’s first quarter. The slate of Kick Ass, Killers, Brothers, Daybreakers and Saw VI compared favorably to the slate in the prior year’s first quarter.

Lionsgate U.K. revenue also increased, growing 9% to $16.3 million, reflecting the strength of Lionsgate titles.

Mandate Pictures’ revenue of $13.3 million in the first quarter declined 75% from the prior year’s first quarter, affected by timing and a slate that compared to revenues from the prior year’s record first quarter slate.

Television production revenue was $53.9 million, a 38% decline from the prior year’s first quarter, attributable primarily to timing as deliveries of one episode of "Mad Men Season 4" and eight episodes of "Scream Queens Season 2" compared to deliveries of six episodes of "Weeds Season 5" and 12 episodes of "Nurse Jackie Season 1" in the prior year’s first quarter.

Lionsgate’s filmed entertainment backlog increased to $478.6 million at June 30, 2010, one of the highest totals in the Company’s history.