LIONSGATE Press Releases
LIONSGATE REPORTS RESULTS FOR THIRD QUARTER FISCAL 2017
Revenue Increases 12% to $752 Million; Net Loss Attributable to Lionsgate Shareholders is $31 Million or Basic Net Loss per Common Share of $0.19
Adjusted Net Income Attributable to Lionsgate Shareholders is $34 Million or Adjusted Basic EPS of $0.21
Quarter Includes $52 Million in Restructuring and Other Costs Primarily Related to Starz Transaction, $28 Million Loss on Extinguishment of Debt
TV Production and Motion Picture Segment Profits Increase Sharply
SANTA MONICA, Calif. and VANCOUVER, British Columbia, Feb. 8, 2017 /PRNewswire/ -- Lionsgate (NYSE: LGF.A, LGF.B) today reported revenue of $752 million, net loss attributable to Lionsgate shareholders of $(31) million or basic net loss per common share of $(0.19), adjusted net income attributable to Lionsgate shareholders of $34 million or adjusted basic EPS of $0.21, and adjusted OIBDA of $84 million for the third quarter of fiscal 2017 (quarter ended December 31, 2016).
The quarter's reported results included 23 days of operations from the combined entity following the December 8, 2016 close of Lionsgate's acquisition of Starz.
"We're pleased to report increased profits across our film, television and media networks divisions as well as another strong revenue performance from our Television Group," said Lionsgate Chief Executive Officer Jon Feltheimer. "We've just completed one of our busiest and most productive quarters ever as we continue to scale our global content platform and integrate Starz into our operations. Our strong film and television offerings are now complemented by our Starz premium network that is becoming a "must-have" value proposition for the digital age."
Revenue of $752 million for the quarter grew 12% from the prior-year quarter driven by solid gains in Television Production and the acquisition of Starz.
Segment profits at Motion Pictures increased 55% as reductions in direct operating expenses and distribution and marketing costs more than offset the decline in revenue from the prior year quarter. Television Production segment profits increased 117% due to strong revenue and lower distribution and marketing costs.
The Company's wide release of the blockbuster La La Land, which earned a record-tying 14 Academy Award nominations and has grossed over $270 million to date at the worldwide box office, occurred after the close of the December 31 quarter. The financial impact of the film's performance will be reflected in future quarters.
Net loss attributable to Lionsgate shareholders for the quarter of $(31) million or basic net loss per common share of $(0.19) on 161.4 million weighted average number of common shares outstanding compared to net income attributable to Lionsgate shareholders of $41 million or basic EPS of $0.27 on 149.5 million weighted average number of common shares outstanding during the prior year quarter.
Adjusted OIBDA of $84 million for the quarter increased from adjusted OIBDA of $24 million in the prior year quarter. Adjusted net income attributable to Lionsgate shareholders of $34 million or adjusted basic EPS of $0.21 for the quarter compared to adjusted net income attributable to Lionsgate shareholders of $55 million or adjusted basic EPS of $0.37 in the prior year quarter.
Net loss and basic net loss per common share in the quarter was largely attributable to $52 million in restructuring and other costs in the quarter primarily associated with Lionsgate's acquisition and integration of Starz, including $22 million of severance costs and $27 million of transaction-related costs. The quarter also included a $28 million loss on extinguishment of debt in connection with the Starz transaction financing. In addition, the quarter included a $20 million gain on Lionsgate's investment in Starz stock.
Motion Picture segment revenues of $440 million declined 13% despite strong box office performances from Tyler Perry'sBoo! A Madea Halloween and Hacksaw Ridge, compared to a prior year quarter that included TheHunger Games: Mockingjay Part 2. Additionally, Hacksaw Ridge was recorded on a net fee basis rather than gross revenue based on the Company's distribution agreement. Segment profit improved 55% driven by reductions in direct operating expenses and distribution and marketing expenses. Segment profit margins increased from 6.5% to 11.6% in the quarter. Motion Picture segment profit on a combined pro forma basis (reflecting the integration of Starz for all periods) grew 67% in the quarter.
TV Production segment revenues increased 39% to $229 million, the second highest total ever, driven primarily by an increase in television deliveries including episodes of Orange is the New Black, the new series Dear White People and the three-hour musical event Dirty Dancing. Segment profit increased 117% to $26 million as higher revenues were further bolstered by a decrease in distribution and marketing expenses. Segment profit margins improved to 11.4% from 7.3% in the quarter. TV Production segment profit on a combined pro forma basis (reflecting the integration of Starz for all periods) grew 93% in the quarter.
Media Networks reported revenues of $85 million and segment profit of $33 million, representing segment profit margins of 39%. Results were not comparable due to the acquisition of Starz on December 8, 2016. On a combined pro forma basis (reflecting the integration of Starz for all periods) the segment grew revenues 3% in the quarter. Direct operating expenses on a combined pro forma basis were down 21% primarily related to original programming timing, driving combined pro forma segment profit up 94%.
Lionsgate's backlog, or already contracted future revenue on the licensing of film and television product not yet recorded, was $1.4 billion at December 31, 2016.
Lionsgate senior management will hold its analyst and investor conference call to discuss its third quarter fiscal 2017 financial results at 5:00 PM ET/2:00 PM PT today, Wednesday, February 8. Interested parties may listen to the live webcast by visiting the events page on the Lionsgate corporate website or via http://services.choruscall.com/links/lgf170208fsetOE9d.html. A full replay will be available later this afternoon, February 8, through Wednesday, February 15, by clicking the same link.
Lionsgate (NYSE: LGF.A, LGF.B) is a vertically integrated next generation global content leader with a diversified presence in motion picture production and distribution, television programming and syndication, premium pay television networks, home entertainment, global distributi