LIONSGATE REPORTS RESULTS FOR FIRST QUARTER FISCAL 2017
Revenue Increases 35% to $553.6 Million; Adjusted EBITDA is $40.7 Million; Net Income Attributable to Lionsgate Shareholders is $1.3 Million or Basic EPS of $0.01
Television Production Revenues Increase 43%; Motion Picture Group Revenues Grow 32%
Filmed Entertainment Backlog Exceeds Record $1.5 Billion
SANTA MONICA, Calif. and VANCOUVER, B.C., Aug. 4, 2016 /PRNewswire/ — Lionsgate (NYSE: LGF) today reported revenue of $553.6 million, adjusted EBITDA of $40.7 million, adjusted net income attributable to Lionsgate shareholders of $29.5 million or adjusted basic EPS of $0.20, and net income attributable to Lionsgate shareholders of $1.3 million or basic EPS of $0.01 for the first quarter of fiscal 2017 (quarter ended June 30, 2016).
“In addition to a very solid performance across all of our businesses, the most significant development in the quarter was our agreement to acquire Starz,” said Lionsgate Chief Executive Officer Jon Feltheimer. “Upon closing, it will be the largest and most transformative transaction in our history. The combination will accelerate the growth and diversification of both companies, deepening our portfolio of content, expanding our access to distribution, streamlining our pathways to the consumer and unlocking enormous opportunities for future growth.”
Strong Revenue Gains in Television and Film
Revenue of $553.6 million for the quarter grew 35% from the prior-year quarter driven by strong gains in Television Production revenue as well as revenue gains in all categories of the Motion Pictures segment.
Increased Television Production revenue was led by strong growth in domestic television series licensing and inclusion of $27.3 million in revenue from Pilgrim Media Group which more than offset declines from international television sales and home entertainment revenue from television programming. Domestic television series episodes and hours delivered in the quarter more than tripled those of the prior-year quarter.
Net income attributable to Lionsgate shareholders for the quarter of $1.3 million or basic EPS of $0.01 on 147.2 million weighted average number of common shares outstanding compared to net income attributable to Lionsgate shareholders of $40.7 million or basic EPS of $0.28 on 147.6 million weighted average number of common shares outstanding during the prior year quarter.
Adjusted EBITDA of $40.7 million for the quarter compared to adjusted EBITDA of $71.0 million in the prior year quarter. Adjusted net income attributable to Lionsgate shareholders of $29.5 million or adjusted basic EPS of $0.20 for the quarter compared to adjusted net income attributable to Lionsgate shareholders of $49.3 million or adjusted basic EPS of $0.33 in the prior year quarter.
Declines in adjusted EBITDA and EPS were attributable in part to higher marketing and distribution costs for a theatrical slate that included two wide releases in the quarter compared to no wide theatrical releases with associated marketing costs in the prior year quarter. Increased G&A in the quarter was due in part to one-time professional fees and other costs associated with Lionsgate’s agreement to acquire Starz.
Overall Motion Picture segment revenue was $362.5 million in the quarter compared to $275.4 million in the prior year quarter. Theatrical revenue more than doubled in the quarter to $47.2 million due to a larger wide release slate than in the prior year quarter. Television revenues from the Motion Picture segment increased 10% to $53.3 million. Lionsgate’s home entertainment revenue from motion picture and television production for the quarter was $150.3 million, a 16% increase from the prior year quarter, reflecting four wide theatrical releases compared to two wide theatrical releases in the prior year quarter.
International Motion Picture segment revenue increased 34% to $113.8 million in the quarter driven by the international box office performance of Now You See Me 2, which has already grossed more than $300 million at the global box office, and the continued performance of the fiscal 2016 releases Gods of Egypt, The Divergent Series: Allegiant, and The Hunger Games: Mockingjay—Part 2 as well as the Lionsgate UK release of Eddie the Eagle.
64 Episodes and 49 Hours of Domestic Television Series Delivered in the Quarter
The Television Production segment continued its strong performance. In the quarter, 64 episodes and 49 hours of domestic television series were delivered, led by Greenleaf, a breakout success in its debut season on OWN, Monica the Medium, Casual, Feed the Beast, Graves, Guilt and Nashville as well as the game and talk shows Family Feud, The Wendy Williams Show and Celebrity Name Game and the reality series The Ultimate Fighter and Street Outlaws from Pilgrim Media Group. International television revenue for the quarter declined compared to the prior year quarter that included revenue from Orange is the New Black’s international licensing deal with Netflix.
Lionsgate’s filmed entertainment backlog, or already contracted future revenue not yet recorded, exceeded a record $1.5 billion at June 30, 2016.
During the quarter, the Company declared a quarterly cash dividend of $0.09 per common share payable on August 5, 2016 to shareholders of record as of June 30, 2016.
Lionsgate senior management will hold its analyst and investor conference call to discuss its first quarter fiscal 2017 financial results at 5:00 PM ET/2:00 PM PT today, Thursday, August 4. Interested parties may participate live in the conference call by calling 1-800-230-1092 (612-288-0340 outside the U.S. and Canada). A full digital replay will be available from Friday, August 5, through Friday, August 12, by dialing 1-800-475-6701 (320-365-3844 outside the U.S. and Canada) and using access code 398706.