LIONSGATE AND LIONSGATE STUDIOS REPORT RESULTS FOR FOURTH QUARTER FISCAL 2024

Lionsgate Fourth Quarter Revenue was $1.1 Billion; Operating Loss was $60.9 Million

Net Loss Attributable to Lionsgate Shareholders was $39.5 Million or $0.22 Diluted Net Loss Per Share

Adjusted Net Income Attributable to Lionsgate Shareholders was $63.4 Million or $0.27 Adjusted Diluted Earnings Per Share

Quarterly Adjusted OIBDA was $140.3 Million 

Television Group Segment Profit Increased 83% in the Quarter, Driven by Library Gains and Post-Strike Series Deliveries

Film & Television Library Achieved Record $339 Million Revenue Quarter with Trailing 12-Month Revenue of $886 Million

$397 Million of Net Cash Flow Provided by Operating Activities in the Full Year with Adjusted Free Cash Flow of $230 Million 

SANTA MONICA, Calif. and VANCOUVER, BC, May 23, 2024 /PRNewswire/ — Lions Gate Entertainment Corp. (NYSE: LGF.A, LGF.B) (“Lionsgate”) and Lionsgate Studios Corp. (Nasdaq: LION) (“Lionsgate Studios”) today reported fourth quarter results for the quarter ended March 31, 2024.  Lionsgate Studios launched as a separate publicly-traded company on May 14, 2024, with parent company Lionsgate continuing to hold an approximately 87% stake in Lionsgate Studios.  This press release includes consolidated financial results for parent company Lionsgate as well as operating results for Lionsgate Studios (also referred to as the “Studio Business”), comprised of its Motion Picture and Television Production segments. 

Lionsgate reported fourth quarter revenue of $1.1 billion, operating loss of $60.9 million, and net loss attributable to Lionsgate shareholders of $39.5 million or $0.22 diluted net loss per share on 235.3 million diluted weighted average common shares outstanding. Adjusted net income attributable to Lionsgate shareholders in the quarter was $63.4 million or $0.27 adjusted diluted net earnings per share on 238.9 million diluted weighted average common shares outstanding.  Adjusted OIBDA was $140.3 million in the quarter. 

“We reported strong financial results in the fourth quarter to wrap up a great year in which we completed four major transactions, moved closer to a value-defining separation of our studio and STARZ businesses, grossed over a billion dollars at the global box office and grew our film and TV library to record levels,” said Lionsgate and Lionsgate Studios CEO Jon Feltheimer.  “With the launch of Lionsgate Studios as a pure play, publicly-traded company earlier this month, we have an opportunity to shine a light on the value of the content we are creating, owning and delivering while taking an important step forward in preparing for the anticipated full separation of our studio and STARZ businesses by the end of the calendar year.” 

Library revenue in the quarter was a record $339 million with trailing 12-month revenue of $886 million, the second best total in Lionsgate’s history.  Lionsgate reported $397 million of net cash flow provided by operating activities and $230 million in adjusted free cash flow in the full year, ending the quarter with $314 million in unrestricted cash.  Backlog from the Motion Picture and Television Production segments was $1.5 billion at March 31, 2024.

Fourth Quarter Results

The Studio Business, comprised of the Motion Picture and Television Production segments, reported revenue of $879.9 million, an increase of 6.8% from the prior year quarter.  Segment profit of $134.8 million increased by nearly 10% from the prior year quarter.  

Motion Picture segment revenue declined by 23% to $410.6 million and segment profit declined by 12% to $82.2 million.  Revenue and segment profit compared to a prior year quarter in which John Wick: Chapter Four was released theatrically.  However, Motion Picture Group segment profit of $319.6 million for the year was the highest in 10 years.  

Television Production segment revenue increased 61% to $469.3 million while segment profit increased 83% to $52.6 million.  Revenue and segment profit increases were driven by strength in library sales and an increase in post-strike content deliveries. 

Media Networks segment domestic revenue grew on a sequential basis for the third quarter in a row.  Domestic OTT subscribers were flat sequentially and overall North American net subscribers decreased by 480K.  Media Networks segment revenue decreased by 7.1% year-over-year to $361.5 million.  Domestic streaming revenue growth was offset by declines in domestic linear and LIONSGATE+ revenue.  Segment profit declined by 28.4% to $52.5 million, driven primarily by higher domestic content amortization expense.  

Lionsgate and Lionsgate Studios senior management will hold their analyst and investor conference call to discuss fiscal 2024 fourth quarter results today, May 23rd, at 5:00 PM ET/2:00 PM PT.  The consolidated financial results of Lionsgate and the operating results of Lionsgate Studios’ segments will be discussed on a single call.  Interested parties may listen to the live webcast by visiting the events page on either the Lionsgate Investor Relations website or the Lionsgate Studios Investor Relations website.  Alternatively, interested parties can join the webcast directly via the following link.  A full replay will become available this evening by clicking the same link. 

About Lionsgate

Lionsgate (NYSE: LGF.A, LGF.B) encompasses world-class motion picture and television studio operations and the STARZ premium global subscription platform, bringing a unique and varied portfolio of entertainment to consumers around the world.  The Company’s film, television, subscription and location-based entertainment businesses are backed by a more than 20,000-title library and a valuable collection of iconic film and television franchises. A digital age company driven by its entrepreneurial culture and commitment to innovation, the Lionsgate brand is synonymous with bold, original, relatable entertainment for audiences worldwide. 

About Lionsgate Studios

Lionsgate Studios (NASDAQ: LION) is one of the world’s leading standalone, pure play, publicly-traded content companies.  It brings together diversified motion picture and television production and distribution businesses, a world-class portfolio of valuable brands and franchises, a talent management and production powerhouse and a more than 20,000-title film and television library, all driven by Lionsgate’s bold and entrepreneurial culture.

For further information, investors should contact:

Nilay Shah

310-255-3651

nshah@lionsgate.com

For media inquiries, please contact:

Peter D. Wilkes

310-255-3726

pwilkes@lionsgate.com

The matters discussed in this press release include forward-looking statements, including those regarding the performance of future fiscal years.  Such statements are subject to a number of risks and uncertainties. Actual results in the future could differ materially and adversely from those described in the forward-looking statements as a result of various important factors, including, but not limited to: the benefits of the business combination consummated on May 13, 2024; the outcome of any legal, regulatory or governmental proceedings that may be instituted against the Company or any investigation or inquiry in connection with the business combination; unexpected costs related to the business combination; changes in our business strategy including the plan to potentially spin-off our studio business; the substantial investment of capital required to produce and market films and television series; budget overruns; limitations imposed by our credit facilities and notes; unpredictability of the commercial success of our motion pictures and television programming; risks related to acquisition and integration of acquired businesses; the effects of dispositions of businesses or assets, including individual films or libraries; the cost of defending our intellectual property; technological changes and other trends affecting the entertainment industry; potential adverse reactions or changes to business or employee relationships; the impact of global pandemics on our business; weakness in the global economy and financial markets, including a recession and past and future bank failures; wars, terrorism and multiple international conflicts that could cause significant economic disruption and political and social instability; labor disruptions and strikes; and the other risk factors set forth in Lionsgate’s and Lionsgate Studios’ public filings with the Securities and Exchange Commission.  The companies undertakes no obligation to publicly release the result of any revisions to these forward-looking statements that may be made to reflect any future events or circumstances.

Additional Information Available on Websites

The information in this press release should be read in conjunction with the financial statements and footnotes contained in Lionsgate’s Annual Report on Form 10-K for the year ended March 31, 2024, which will be posted on Lionsgate’s website at http://investors.lionsgate.com/financial-reports/sec-filings,and Lionsgate Studios’ Current Report on Form 8-K/A, which will be posted on Lionsgate Studios’ website at https://investors.lionsgatestudios.com/. Trending schedules containing certain financial information will also be available.

LIONS GATE ENTERTAINMENT CORP.

CONSOLIDATED BALANCE SHEETS

March 31,

2024

March 31,

2023

(Unaudited, amounts in millions)

ASSETS

Cash and cash equivalents

$              314.0

$              272.1

Accounts receivable, net

753.0

582.1

Other current assets

396.5

264.2

Total current assets

1,463.5

1,118.4

Investment in films and television programs and program rights, net

2,762.2

2,947.9

Property and equipment, net

88.5

89.5

Investments

74.8

64.7

Intangible assets, net

991.8

1,300.1

Goodwill

811.2

1,289.5

Other assets

900.7

616.1

Total assets

$          7,092.7

$          7,426.2

LIABILITIES

Accounts payable

$              327.6

$              368.1

Content related payables

190.0

184.1

Other accrued liabilities

355.1

273.4

Participations and residuals

678.4

549.3

Film related obligations

1,393.1

1,007.2

Debt – short term portion

860.3

41.4

Deferred revenue

187.6

147.2

Total current liabilities

3,992.1

2,570.7

Debt

1,619.7

1,978.2

Participations and residuals

435.1

329.6

Film related obligations

544.9

1,016.4

Other liabilities

556.4

317.9

Deferred revenue

118.4

52.0

Deferred tax liabilities

13.3

31.8

Total liabilities

7,279.9

6,296.6

Commitments and contingencies

Redeemable noncontrolling interest

123.3

343.6

EQUITY (DEFICIT)

Class A voting common shares, no par value, 500.0 shares authorized, 83.6 shares issued (March 31, 2023 – 83.5 shares issued)

673.6

672.3

Class B non-voting common shares, no par value, 500.0 shares authorized, 151.7 shares issued (March 31, 2023 – 145.9 shares issued)

2,474.4

2,430.9

Accumulated deficit

(3,576.7)

(2,439.6)

Accumulated other comprehensive income

116.0

120.9

Total Lions Gate Entertainment Corp. shareholders’ equity (deficit)

(312.7)

784.5

Noncontrolling interests

2.2

1.5

Total equity (deficit)

(310.5)

786.0

Total liabilities, redeemable noncontrolling interest and equity (deficit)

$          7,092.7

$          7,426.2

 

LIONS GATE ENTERTAINMENT CORP.

CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended

Year Ended

March 31,

March 31,

2024

2023

2024

2023

(Unaudited, amounts in millions, except per share amounts)

Revenues

$          1,117.7

$          1,085.7

$          4,016.9

$          3,854.8

Expenses

Direct operating

640.1

567.8

2,189.2

2,312.5

Distribution and marketing

225.3

234.7

911.4

801.7

General and administration

122.4

191.1

490.5

531.1

Depreciation and amortization

53.3

46.3

192.2

180.3

Restructuring and other

137.5

95.4

508.5

411.9

Goodwill and intangible asset impairment

663.9

1,475.0

Total expenses

1,178.6

1,135.3

4,955.7

5,712.5

Operating loss

(60.9)

(49.6)

(938.8)

(1,857.7)

Interest expense

(76.8)

(58.3)

(269.8)

(221.2)

Interest and other income

15.6

1.7

22.1

6.4

Other expense

(7.4)

(5.9)

(26.9)

(26.9)

Gain (loss) on extinguishment of debt

(1.3)

17.1

19.9

57.4

Gain on investments, net

0.8

1.9

3.5

44.0

Equity interests income (loss)

3.0

(0.3)

8.7

0.5

Loss before income taxes

(127.0)

(93.4)

(1,181.3)

(1,997.5)

Income tax benefit (provision)

77.4

(4.7)

65.0

(21.3)

Net loss

(49.6)

(98.1)

(1,116.3)

(2,018.8)

Less: Net loss attributable to noncontrolling interests

10.1

1.3

13.4

8.6

Net loss attributable to Lions Gate Entertainment Corp. shareholders

$              (39.5)

$              (96.8)

$        (1,102.9)

$        (2,010.2)

Per share information attributable to Lions Gate Entertainment Corp. shareholders:

Basic net loss per common share

$              (0.22)

$              (0.42)

$              (4.77)

$              (8.82)

Diluted net loss per common share

$              (0.22)

$              (0.42)

$              (4.77)

$              (8.82)

Weighted average number of common shares outstanding:

Basic

235.3

229.2

233.6

227.9

Diluted

235.3

229.2

233.6

227.9

 

LIONS GATE ENTERTAINMENT CORP.

CONSOLIDATED STATEMENTS OF CASH FLOWS

Three Months Ended

Year Ended

March 31,

March 31,

2024

2023

2024

2023

(Unaudited, amounts in millions)

Operating Activities:

Net loss

$           (49.6)

$           (98.1)

$      (1,116.3)

$      (2,018.8)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

Depreciation and amortization

53.3

46.3

192.2

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