.54 For Fiscal 2011 First Quarter Compared To Basic Net Income Per Common Share of
ADJUSTED EBITDA IS NEGATIVE $13.7 MILLION COMPARED TO $53.4 MILLION IN PRIOR YEAR FIRST QUARTER
Basic Net Loss Per Common Share Is $0.54 For Fiscal 2011 First Quarter Compared To Basic Net Income Per Common Share of $0.31 In Prior Year's First Quarter
SANTA MONICA, Calif., and VANCOUVER, British Columbia, Aug. 9 /PRNewswire-FirstCall/ -- Lionsgate (NYSE: LGF), the leading next generation studio, today reported revenue of $326.6 million and adjusted EBITDA of negative $13.7 million for the first quarter of fiscal year 2011 (quarter ended June 30, 2010).
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," said Lionsgate Co-Chairman and Chief Executive Officer Jon Feltheimer. "With our upcoming theatrical slate, beginning with this 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."
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 one wide release, 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. The home entertainment revenue from theatrical titles such as DAYBREAKERS, FROM PARIS WITH LOVE, THE SPY NEXT DOOR and BROTHERS compared to revenue from the slate of MADEA GOES TO JAIL, MY BLOODY VALENTINE 3-D, TRANSPORTER 3, NEW IN TOWN and THE SPIRIT in the prior year's first quarter. DAYBREAKERS, FROM PARIS WITH LOVE and THE SPY NEXT DOOR all ranked among the industry's top six titles in terms of DVD-to-box office conversion rate in the quarter as Lionsgate, bolstered by its distribution agreement with Redbox, maintained its leadership in DVD-to-box office conversion.
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, driven by a slate that included PRECIOUS, BROTHERS, GAMER, Tyler Perry's I CAN DO BAD ALL BY MYSELF and RAMBO.
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 such as BROTHERS and DAYBREAKERS and third-party titles such as the Academy Award(R)-winning THE HURT LOCKER.
Mandate Pictures' revenue of $13.3 million in the first quarter declined 75% from the prior year's first quarter, affected primarily by timing and a slate that compared to revenues from the prior year's record first quarter slate that included DRAG ME TO HELL, JUNO and PASSENGERS.
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.
However, within that total, Debmar-Mercury's revenue increased 55% to $31.8 million in the first quarter on increased revenue from "Tyler Perry's House of Payne," "Meet The Browns" and "The Wendy Williams Show."
Lionsgate's filmed entertainment backlog increased to $478.6 million at June 30, 2010, one of the highest totals in the Company's history. 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.
Lionsgate senior management will hold its analyst and investor conference call to discuss its fiscal year 2011 first quarter financial results at 9:00 A.M. ET/6:00 A.M. PT on Tuesday, August 10, 2010. Interested parties may participate live in the conference call by calling 1-800-230-1092 (612-288-0337 outside the U.S. and Canada). A full digital replay will be available from Tuesday morning, August 10, through Tuesday, August 17, by dialing 1-800-475-6701 (320-365-3844 outside the U.S. and Canada) and using access code 166802.
Lionsgate (NYSE: LGF) is the leading next generation studio with a strong and diversified presence in the production and distribution of motion pictures, television programming, home entertainment, family entertainment, video-on-demand and digitally delivered content. The Company has built a strong television presence in production of prime time cable and broadcast network series, distribution and syndication of programming through Debmar-Mercury and an array of channel assets. Lionsgate currently has 15 shows on more than 10 networks spanning its prime time production, distribution and syndication businesses, including such critically-acclaimed hits as "Mad Men", "Weeds" and "Nurse Jackie" along with new series such as "Blue Mountain State" and "Running Wilde" and the syndication successes "Tyler Perry's House Of Payne", its spinoff "Meet The Browns" and "The Wendy Williams Show".
Its feature film business has generated such recent hits as TYLER PERRY'S WHY DID I GET MARRIED TOO?, KICK ASS and the critically-acclaimed PRECIOUS, which garnered nearly $50 million at the North American box office and won two Academy Awards(R). The Company's home entertainment business has grown to more than 7% market share and is an industry leader in box office-to-DVD revenue conversion rate. Lionsgate handles a prestigious and prolific library of approximately 12,000 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 brand remains synonymous with original, daring, quality entertainment in markets around the world.
For further information, please contact:
Peter D. Wilkes
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