Lions Gate Entertainment Corp
) posted a loss of 17 cents a share, down 51 cents from the
year-ago quarter, when the company reported earnings of 34
The disappointing result was the outcome of higher marketing
costs related to films slated to release in 2013 and expenses
related to the acquisition of Summit Entertainment.
However, excluding the one time expenses, the company reported
earnings of 21 cents a share. The Zacks Consensus Estimate for the
quarter was 18 cents.
Total revenue in the quarter jumped 71% year over year to $645.2
million, driven by strong theatrical and home entertainment
'The Hunger Games'
Twilight Saga: Breaking Dawn - Part 1
coupled with a rise in television and library revenues. Moreover,
the reported revenue surpassed the Zacks Consensus Estimate of $616
During the quarter, the company reported adjusted EBITDA of $30
million compared with $67.9 million in the fourth quarter of
For Fiscal 2012, the company reported a loss of 30 cents per
share compared with a loss of 23 cents in the prior year.
Revenue came in at $1.59 billion from $1.58 billion in the prior
revenue decreased 3% year over year to $1.19 billion in fiscal
2012. Within Motion Picture, theatrical revenue inched up 2% to
$208.9 million, reflecting fewer theatrical releases compared with
the prior year.
International Film revenue declined 11% to $112.9 million due to
less number of titles. Television revenue decreased 14% to $119.9
million. However, Lions Gate UK revenue increased 28% to $101.5
Mandate Pictures revenue jumped 43% to $55.4 million, reflecting
strong revenues from
A Very Harold & Kumar 3D
revenue increased 13% to $397.3 million, reflecting strong digital
Home Entertainment revenue for both motion pictures and
television inched down 1% to $683.5 million as the prior-year
results were boosted by strong theatrical titles.
Other Financial Details
Lions Gate ended the quarter with cash and cash equivalents of
$64.3 million with film obligations and production loans of $561.2
million and shareholders' equity of $89.8 million. The
company generated a free cash flow of $56.2 million during the
Lions Gate acquired Summit Entertainment which further expands
its filmed entertainment library while boosting its feature film
and home entertainment offerings.
Moreover, the company's production and distribution capacity is
largely benefitted with the integration of Summit's film
operations. In addition, it will also facilitate Lions Gate to
emerge as a leading international sales group by broadening its
The company's filmed entertainment backlog increased to $1
billion, reflecting strong future revenues, which is
Lions Gate is a film studio engaged in the production and
distribution of motion pictures for theater and straight-to-video
release and also television programming for cable and broadcast
networks. The company has a strong track record of producing small
and mid-budget specialty films.
In order to grab its share of box office receipts, Lions Gate
competes with other major studios, such as Fox Entertainment Group,
Paramount Motion Pictures Group and
Time Warner Inc
Currently, Lions Gate retains a Zacks #2 Rank, which
translates into a short-term 'Buy' rating.
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