Lionsgate reports revenues of $1.36 billion for fiscal 2008

MUMBAI: Filmed entertainment studio Lionsgate continued its growth momentum for fiscal 2008, reporting revenues of $1.36 billion and a net loss of $74.0 million for its fiscal year ended 31 March, 2008, the company announced.

The company noted that revenue growth of 39% from the prior year was driven by strong theatrical box office, increased home entertainment sales, growth in library revenues, continued strength in television production revenues and burgeoning digital revenues. The company reported $511.5 million in fourth quarter revenues, its best quarterly revenue performance.

Diluted net loss per common share was $0.62 on 118.4 million adjusted weighted average common shares outstanding. The loss was primarily attributable to increased theatrical distribution and marketing expenses in association with the planned growth of the company’s motion picture slate. Theatrical distribution and marketing expenses of $326.3 million increased 118% from $149.7 million in the previous year.

"Every division of the company made contributions to our tremendous revenue growth, and they have positioned us for continued double-digit revenue growth in fiscal 2009," said Lionsgate co-chairman and chief executive officer Jon Feltheimer. "We continue to leverage our vast array of content for large niche audiences into a fast-growing channel business."

The company reported that cash and cash equivalents grew to $371.6 million, its strongest cash position ever after three consecutive years of positive free cash flow in excess of $100 million. The company’s filmed entertainment backlog also grew to a record $437.4 million at fiscal year-end.

Overall motion picture revenue for the year was a record $1.15 billion, an increase of 34.1% from $858.2 million in fiscal 2007, including revenues generated by the September 2007 acquisition of Mandate Pictures. Within the motion picture segment, theatrical revenue was $191.7 million, an increase of 78% from $107.9 million the previous year, propelled by a string of hits including Saw 4, 3:10 To Yuma, Good Luck, Chuck, The Bank Job, Tyler Perry’s Why Did I Get Married?, The Eye, Rambo, Tyler Perry’s Meet The Browns and War.

Television revenue included in the motion picture segment was $115.9 million in the fiscal year, a 6% increase from $109.3 million in fiscal 2007, led by titles such as Crank, Daddy’s Little Girls, Employee of The Month, Saw III and The Descent.

Television production revenue was $210.1 million in the fiscal year, an increase of 77% from $118.5 million in fiscal 2007, driven by a mix of deliveries of episodes of in-house productions such as the Golden Globe- winning drama series Mad Men (AMC), Weeds Season 3 (Showtime), Wildfire Season 4 (ABC Family), and the Dead Zone Season 5 (USA Network) and domestic series licensing of Tyler Perry’s House of Payne, South Park and Family Feud from the Company’s television syndication subsidiary, Debmar-Mercury.

The company will continue to use the free cash flow metric and amounts presented as such will continue to reflect the same amounts as were previously reflected as free cash flow as presented in the attached free cash flow reconciliation. The aforementioned changes do not affect Lionsgate’s current, previous or anticipated free cash flow results.