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LIONSGATE REPORTS REVENUE OF $471.8 MILLION, ADJUSTED EBITDA OF $17.1 MILLION, EBITDA OF $(13.4) MILLION AND NET LOSS OF $(44.2) MILLION OR $(0.33) PER BASIC SHARE IN THE FIRST QUARTER OF FISCAL 2013

4:00 PM ET 8/9/12 | PR Newswire

Lionsgate (NYSE: LGF) today reported revenue of $471.8 million, adjusted EBITDA of $17.1 million, EBITDA of $(13.4) million and net loss of $(44.2) million or $(0.33) per share for the first quarter of Fiscal 2013 (quarter ended June 30, 2012).

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Revenue of $471.8 million in the first quarter increased by 81% compared to $261.3 million in the prior year quarter, driven by the North American theatrical revenue of the global blockbuster THE HUNGER GAMES and the films CABIN IN THE WOODS and WHAT TO EXPECT WHEN YOU'RE EXPECTING as well as strong revenue gains in the Company's home entertainment business.

Adjusted EBITDA of $17.1 million and EBITDA of $(13.4) million in the first quarter compared to EBITDA of $28.7 million and adjusted EBITDA of $27.5 million in the prior year quarter and net loss of $(44.2) million in the first quarter compared to net income of $10.3 million in the prior year quarter due in part to an increase of $90 million in theatrical marketing costs associated with five releases in the quarter (including four wide releases) compared to one release in the prior year quarter. The Company noted that all five releases are anticipated to be profitable on an ultimate basis.

EBITDA and net loss in the quarter were also affected by increased G&A costs due primarily to increased stock-based compensation largely associated with the increase in the Company's stock price as well as increased costs associated with the integration of Summit Entertainment. Profitability in the quarter was also impacted by increased interest expense, a noncash charge for early retirement of a significant portion of the Summit term loan debt and the application of purchase accounting required by GAAP.

Basic net loss per common share for the first quarter was $(0.33) on 133.2 million weighted average common shares outstanding, compared to basic net income per common share of $0.08 on 137.0 million weighted average common shares outstanding in the prior year quarter.

Lionsgate's filmed entertainment backlog was $992 million at June 30, 2012. 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.

"We completed our first quarter on target for our fiscal year and our three-year plan," said Lionsgate Chief Executive Officer Jon Feltheimer. "Our financial results in the quarter were affected by marketing costs for a slate of five films, primarily noncash stock-based compensation and a noncash charge for paying down a significant portion of our Summit term loan debt early. However, with two-thirds of the profitability of the first HUNGER GAMES film still ahead, we anticipate that the combined benefits of our Summit acquisition, the strength of our young adult franchises and the continued evolution of our television business will translate into significant and growing contributions for the balance of our three-year plan."

Overall motion picture revenue for the first quarter was $406.5 million, an increase of 111% from the prior year quarter. Within the motion picture segment, theatrical revenue was $137.6 million, a fivefold increase from the prior year first quarter, attributable to the box office performance of THE HUNGER GAMES, the 12th highest-grossing North American release of all time, and the other theatrical releases mentioned above.

Lionsgate's home entertainment revenue from both motion pictures and television was $145.5 million in the first quarter compared to $92.9 million in the prior year quarter driven by five major DVD and digital releases in the quarter.

Television revenue included in motion picture revenue was $37.1 million in the first quarter, a decrease of 14% from the prior year quarter.

International motion picture revenue of $48.6 million (excluding Lionsgate U.K.) for the first quarter increased more than fourfold from the prior year quarter driven by the worldwide theatrical release of THE HUNGER GAMES as well as revenue contributions from THE TWILIGHT films, CABIN IN THE WOODS, WHAT TO EXPECT WHEN YOU'RE EXPECTING and MAN ON A LEDGE.

Lionsgate U.K. revenue was $32.6 million, a nearly threefold increase from the prior year quarter, on the strength of a theatrical slate driven by THE HUNGER GAMES and Lionsgate U.K.'s SALMON FISHING IN THE YEMEN.

Television production revenue was $65.3 million in the first quarter, a decline of 5% compared to the prior year quarter due primarily to fewer deliveries from the Company's Debmar-Mercury syndication arm offset in part by increased digital media revenue from Weeds Seasons 6 and 7 and Mad Men Season 5 in their home entertainment windows.

Lionsgate senior management will hold its analyst and investor conference call to discuss its first quarter fiscal 2013 results at 9:00 A.M. ET/6:00 A.M. PT on Friday, August 10, 2012. Interested parties may participate live in the conference call by calling 1-800-230-1059 (612-234-9960 outside the U.S. and Canada). A full digital replay will be available from Friday morning, August 10, through Friday, August 17, by dialing 1-800-475-6701 (320-365-3844 outside the U.S. and Canada) and using access code 255773.

ABOUT LIONSGATE

Lionsgate is a leading global entertainment company with a strong and diversified presence in motion picture production and distribution, television programming and syndication, home entertainment, family entertainment, digital distribution, new channel platforms and international distribution and sales. The Company has built a significant television presence in production of primetime cable and broadcast network series, distribution and syndication of programming and an array of channel assets. Lionsgate currently has 23 shows on 16 networks spanning its primetime production, distribution and syndication businesses, including the multiple Emmy Award-winning "Mad Men" and the critically-acclaimed series "Weeds," "Nurse Jackie" and "Boss," the new network series "Nashville" and "Next Caller," the Charlie Sheen sitcom "Anger Management," the syndication successes "Tyler Perry's House of Payne," its spinoff "Meet the Browns," "The Wendy Williams Show" and "Are We There Yet?" and the upcoming "Orange Is The New Black," an original series for Netflix.

Its feature film business has been fueled by such recent successes as the blockbuster first installment of "The Hunger Games" franchise, which has grossed nearly $700 million at the worldwide box office, "Cabin In The Woods," "Tyler Perry's Madea's Witness Protection" and "Margin Call." With the January 2012 acquisition of Summit Entertainment, the Company added the blockbuster "The Twilight Saga," which has grossed more than $2.5 billion at the worldwide box office, to a slate that already included its "The Hunger Games" franchise and now has the two premier young adult franchises in the world. Recent Summit hits include "Red," "Letters to Juliet," "Knowing," and the Academy Award-winning Best Picture, "The Hurt Locker."

Lionsgate's home entertainment business is an industry leader in box office-to-DVD and box office-to-VOD revenue conversion rate. Lionsgate handles a prestigious and prolific library of approximately 15,000 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 and Summit brands remain synonymous with original, daring, quality entertainment in markets around the world.

For further information, please contact: Peter D. Wilkes 310-255-3726 [e-mail]

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 the substantial investment of capital required to produce and market films and television series, increased costs for producing and marketing feature 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, the cost of defending our intellectual property, difficulties in integrating acquired businesses, risks related to our acquisition strategy and integration of acquired businesses, the effects of disposition of businesses or assets, technological changes and other trends affecting the entertainment industry, and the risk factors as set forth in Lionsgate's Annual Report on Form 10-K, filed with the Securities and Exchange Commission (the "SEC") on May 30, 2012, which risk factors are incorporated herein by reference. The Company 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.