LIONSGATE REPORTS REVENUE OF $1.58 BILLION AND EBITDA OF $68.3 MILLION FOR FISCAL YEAR 2011; ADJUSTED EBITDA FOR THE FISCAL YEAR IS $106.5 MILLION; NET LOSS IS $53.6 MILLION OR $(0.41) PER BASIC SHARE

    <<
    COMPANY SWINGS TO POSITIVE FREE CASH FLOW

    COMPANY REPORTS REVENUE OF $376.9 MILLION, EBITDA OF $58.8 MILLION, NET
    INCOME OF $46.1 MILLION OR $0.34 PER BASIC SHARE AND FREE CASH FLOW OF
    $167.6 MILLION IN THE FOURTH QUARTER OF FISCAL 2011





    >>

SANTA MONICA, Calif. and VANCOUVER, British Columbia, May 31, 2011 /CNW/ -- Lionsgate (NYSE: LGF) today reported revenue of $1.58 billion, EBITDA of $68.3 million and adjusted EBITDA of $106.5 million for fiscal year 2011 (fiscal year ended March 31, 2011).

Revenue increased 6% compared to the prior year driven primarily by increases in theatrical, home entertainment and international film revenue. The home entertainment revenue included strong growth in digital and on demand revenue, which increased 69% from the prior year to $140 million.

The Company reported EBITDA of $68.3 million and adjusted EBITDA of $106.5 million for the fiscal year compared to EBITDA of $62.3 million and adjusted EBITDA of $128.4 million in the prior year. EBITDA gains primarily reflected significantly reduced theatrical marketing costs and higher margin revenue from digital media platforms. Adjusted EBITDA decreased because of the inclusion of an adjustment for non-risk prints and advertising (P&A).

Net loss of $53.6 million in fiscal 2011 compared to net loss of $19.5 million in the prior year was primarily due to increased interest expenses, a $14.5 million non-cash loss on extinguishment of debt related to the July 20, 2010 deleveraging transaction and increased equity interest loss, mainly associated with Lionsgate's interest in EPIX.

Basic net loss per common share for the fiscal year was $0.41 on 131.2 million weighted average common shares outstanding, compared to basic net loss per common share of $0.17 on 117.5 million weighted average common shares outstanding in the prior year.

"Strong performances from our television business and our filmed entertainment library contributed to financial results that exceeded our preliminary estimates," said Lionsgate Co-Chairman and Chief Executive Officer Jon Feltheimer. "We were particularly pleased by near record international sales, reflecting the demand for content in the world marketplace, and rapid growth of high margin digital and on demand revenue. Our numbers going forward should reflect growing momentum in our film business from franchises like THE HUNGER GAMES, THE EXPENDABLES and WHAT TO EXPECT WHEN YOU'RE EXPECTING that we expect will have the capacity to generate more consistent year to year motion picture performance."

The Company noted that its filmed entertainment library achieved its sixth consecutive record year, generating revenue of $329 million in fiscal 2011 compared to $323 million in the prior year. Library revenue was $374 million including syndicated TV product compared to $371 million the prior year.

The Company was profitable in the fourth quarter of the fiscal year (quarter ended March 31, 2011) as net income of $46.1 million or basic net income of $0.34 per common share on 136.8 million weighted average common shares outstanding compared to a net loss of $22.3 million or basic net loss of $0.19 per common share on 117.9 million weighted average common shares outstanding in the prior year's fourth quarter.

EBITDA in the fourth quarter was $58.8 million compared to EBITDA of $12.5 million in the prior year's fourth quarter. Adjusted EBITDA of $65.7 million compared to adjusted EBITDA of $30.5 million in the prior year's fourth quarter, and free cash flow of $168 million in the fourth quarter compared to free cash flow of negative $17 million in the prior year's fourth quarter, a swing of $185 million. Revenue decreased by 6% to $376.9 million.

The strong income performance in the fourth quarter was attributable to lower theatrical P&A expenses, record digital revenue, a strong cable VOD quarterly revenue performance and strong international sales in addition to a significant increase in equity interest income as EPIX contributed a profit in the quarter.

Overall motion picture revenue for 2011 was $1.23 billion, an increase of 10% from the prior year. Within the motion picture segment, theatrical revenue was $205.9 million, an increase of 48% from the prior year, attributable to a record North American box office performance that included such films as THE EXPENDABLES, KICK ASS, THE LAST EXORCISM, TYLER PERRY'S WHY DID I GET MARRIED TOO? and SAW 3D.

Lionsgate's home entertainment revenue from both motion pictures and television was $690.0 million in the fiscal year, a 5% increase from the prior year, driven by strong growth in digital and on demand revenue and strong performances from a diversified slate of theatrical titles including THE EXPENDABLES, KICK ASS, KILLERS, THE NEXT THREE DAYS, SAW 3D and THE SWITCH as well as carryover titles from the prior year's theatrical slate such as PRECIOUS, DAYBREAKERS and FROM PARIS WITH LOVE. The television series WEEDS and MAD MEN also made significant contributions.

Television revenue included in motion picture revenue was $139.8 million in the fiscal year, an increase of 3% from the prior year.

International motion picture revenue of $126.5 million (excluding Lionsgate U.K.) for the fiscal year increased 72% from the prior year as the slate of SAW 3D, KICK ASS, KILLERS, THE NEXT THREE DAYS and ALPHA & OMEGA compared favorably to the prior year's slate and the Company achieved near record international sales in a strong marketplace.

Lionsgate U.K. revenue also increased in the fiscal year, growing 7% to $79.2 million, reflecting the strength of Lionsgate titles such as SAW 3D, which had a record U.K. performance for any installment of the SAW franchise, and THE EXPENDABLES as well as third-party titles such as HARRY BROWN and the Academy Award®-winning THE HURT LOCKER.

Mandate Pictures' revenue of $38.7 million in the fiscal year declined 61% from the prior year due to a smaller slate.

Television production revenue was $353.2 million in the fiscal year, an increase of 1% from the prior year. Domestic series licensing from the Company's television distribution and syndication business increased 48% to $136.5 million in the fiscal year due to increased revenue from deliveries of the television series "Meet The Browns," "Are We There Yet?" and "The Wendy Williams Show."

Domestic series licensing from Lionsgate Television decreased 5% in the fiscal year due to timing of deliveries, which included 13 episodes of "Mad Men Season 4" (AMC), 13 episodes of "Weeds Season 6" (Showtime), 13 episodes of "Blue Mountain State Season 2" (Spike), 12 episodes of "Nurse Jackie season 3" (Showtime), 13 episodes of "Running Wilde" (Fox) and eight episodes of "Scream Queens Season 2" (VH1). Total deliveries of 75 episodes and 48.5 hours (including pilots) were comparable to the prior year. The prior year also included $19.0 million of revenue from the Company's former collaboration with Ish Entertainment.

Lionsgate's filmed entertainment backlog reached a record $532.0 million at March 31, 2011. 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.

Lionsgate G&A expenses in the fiscal year were $116.1 million, excluding stock-based compensation and corporate defense costs related to shareholder activist activities. G&A as a percentage of revenue, excluding stock-based compensation and corporate defense and related costs, declined to 7.3% in the fiscal year compared to 7.5% in the prior year.

Lionsgate senior management will hold its analyst and investor conference call to discuss its fiscal year 2011 and fourth quarter financial results at 9:00 A.M. ET/6:00 A.M. PT on Wednesday, June 1, 2011. Interested parties may participate live in the conference call by calling 1-800-230-1059 (612-332-0632 outside the U.S. and Canada). A full digital replay will be available from Wednesday morning, June 1, through Wednesday, June 8, by dialing 1-800-475-6701 (320-365-3844 outside the U.S. and Canada) and using access code 205455.

    <<

    About Lionsgate
    >>

Lionsgate (NYSE: LGF) 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 and new channel platforms. The Company has built a strong television presence in production of prime time cable and broadcast network series, distribution and syndication of programming and an array of channel assets. Lionsgate currently has 15 shows on more than 10 networks spanning its prime time production, distribution and syndication businesses, including such critically-acclaimed hits as "Mad Men", "Weeds" and "Nurse Jackie" along with the popular comedy "Blue Mountain State" and the syndication successes "Tyler Perry's House Of Payne", its spinoff "Meet The Browns," "The Wendy Williams Show" and "Are We There Yet?".

Its feature film business has generated more than half a billion dollars at the North American box office in the past year, fueled by such hits as THE EXPENDABLES, THE LINCOLN LAWYER, TYLER PERRY'S MADEA'S BIG HAPPY FAMILY, SAW 3D, THE LAST EXORCISM, KICK ASS and PRECIOUS. The Company's home entertainment business has grown to more than 8% market share and is an industry leader in box office-to-DVD and box office-to-VOD revenue conversion rates. Lionsgate handles a prestigious and prolific library of approximately 13,000 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 brand remains synonymous with original, daring, quality entertainment in markets around the world.

    <<

    www.lionsgate.com




    >>

For further information, please contact:Peter D. Wilkes310-255-3726pwilkes@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 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 31, 2011, 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.

LIONS GATE ENTERTAINMENT CORP.

    <<
                          CONSOLIDATED BALANCE SHEETS

    >>

    <<
                                                            
                                                  March 31,     March 31,
                                                       2011          2010
                                     (Amounts in thousands,
                                      except share amounts)
    ASSETS                                                 
    Cash and cash equivalents                       $86,419       $69,242
    Restricted cash                                  43,458         4,123
    Restricted investments                                -         6,995
    Accounts receivable, net of reserve for
     returns and allowances of $95,197
     (March 31, 2010 -                                     
     $87,978) and provision for doubtful
     accounts of $6,567 (March 31,
     2010 - $7,676)                                 359,821       292,924
    Investment in films and television
     programs, net                                  621,288       661,105
    Property and equipment, net                      10,418        12,414
    Equity method investments                       150,585       179,071
    Goodwill                                        239,254       239,254
    Other assets                                     46,601        62,027
              Total assets                        $1,557,844   $1,527,155
                                                            
    LIABILITIES                                            
    Senior revolving credit facility                $69,750       $17,000
    Senior secured second-priority notes            226,331       225,155
    Accounts payable and accrued liabilities        243,440       253,745
    Participations and residuals                    301,386       302,677
    Film obligations and production loans           327,420       351,769
    Convertible senior subordinated notes
     and other financing obligations                110,973       192,036
    Deferred revenue                                150,998       130,851
      Total liabilities                           1,430,298     1,473,233
                                                            
    Commitments and contingencies                          
                                                            
    SHAREHOLDERS' EQUITY                                   
                                                            
    Common shares, no par value, 500,000,000
     shares authorized, 136,839,445 and                    
     117,951,754 shares issued at March 31, 2011
     and March 31, 2010, respectively               643,200       521,164
    Accumulated deficit                           (514,230)     (460,631)
    Accumulated other comprehensive loss            (1,424)       (6,611)
    Total shareholders' equity                      127,546        53,922
      Total liabilities and
     shareholders' equity                        $1,557,844    $1,527,155


    >>

LIONS GATE ENTERTAINMENT CORP.

ANNUAL CONSOLIDATED STATEMENTS OF OPERATIONS

    <<
                                      Year            Year            Year
                                     Ended           Ended           Ended
                                   March 31,       March 31,       March 31,
                                         2011            2010            2009
                                         ----            ----            ----
                                        (Amounts in thousands, except per
                                                  share amounts)
    >>

    <<
    Revenues                       $1,582,720      $1,489,506      $1,466,374
    Expenses:
      Direct operating                795,746         777,969         793,816
      Distribution and
       marketing                      547,226         506,141         669,557
      General and
       administration                 171,407         143,060         136,563
      Depreciation and
       amortization                     5,811          12,455           7,657
                                        -----          ------           -----
        Total expenses              1,520,190       1,439,625       1,607,593
                                    ---------       ---------       ---------
    Operating income (loss)            62,530          49,881        (141,219)
                                       ------          ------        --------
    Other expenses
     (income):
      Interest expense
        Contractual cash based
         interest                      38,879          27,461          15,131
        Amortization of debt
         discount and deferred
         financing costs               16,301          19,701          19,144
                                       ------          ------          ------
            Total interest expense     55,180          47,162          34,275
      Interest and other
       income                          (1,742)         (1,547)         (5,785)
      Loss (gain) on
       extinguishment of debt          14,505          (5,675)         (3,023)
                                       ------          ------          ------
        Total other expenses,
         net                           67,943          39,940          25,467
                                       ------          ------          ------
    Income (loss) before
     equity interests and
     income taxes                      (5,413)          9,941        (166,686)
    Equity interests loss             (43,930)        (28,201)         (9,044)
                                      -------         -------          ------
    Loss before income
     taxes                            (49,343)        (18,260)       (175,730)
    Income tax provision                4,256           1,218           2,724
                                        -----           -----           -----
    Net loss                         $(53,599)       $(19,478)      $(178,454)
                                     ========        ========       =========
    >>

    <<
    Basic Net Loss Per
     Common Share                      $(0.41)         $(0.17)         $(1.53)
                                       ======          ======          ======
    Diluted Net Loss Per
     Common Share                      $(0.41)         $(0.17)         $(1.53)
                                       ======          ======          ======
    Weighted average number
     of common shares
     outstanding:
      Basic                           131,176         117,510         116,795
      Diluted                         131,176         117,510         116,795


    >>

LIONS GATE ENTERTAINMENT CORP.

FOURTH QUARTER CONSOLIDATED STATEMENTS OF OPERATIONS

    <<
                                                      Three          Three
                                                     Months         Months
                                                     Ended          Ended
                                                   March 31,      March 31,
                                                        2011           2010
                                                        ----           ----
                                                           (Amounts in
                                                            thousands,
                                                         except per share
                                                             amounts)
    >>

    <<
    Revenues                                        $376,915       $401,647
    Expenses:
      Direct operating                               195,266        177,671
      Distribution and marketing                      85,746        166,190
      General and administration                      37,072         45,294
      Depreciation and amortization                    1,326          1,839
                                                       -----          -----
        Total expenses                               319,410        390,994
                                                     -------        -------
    Operating income                                  57,505         10,653
                                                      ------         ------
    Other expenses (income):
      Interest expense
        Contractual cash based interest                9,200          9,873
        Amortization of debt discount and
         deferred financing costs                      4,245          3,937
                                                       -----          -----
            Total interest expense                    13,445         13,810
      Interest and other income                         (660)          (340)
                                                        ----
        Total other expenses, net                     12,785         13,470
                                                      ------         ------
    Income (loss) before equity interests and
     income taxes                                     44,720         (2,817)
    Equity interests income (loss)                     1,636        (18,500)
                                                       -----        -------
    Income (loss) before income taxes                 46,356        (21,317)
    Income tax provision                                 211            967
                                                         ---            ---
    Net income (loss)                                $46,145       $(22,284)
                                                     =======       ========
    >>

    <<
    Basic Net Income (Loss) Per Common Share           $0.34         $(0.19)
                                                       =====         ======
    Diluted Net Income (Loss) Per Common
     Share                                             $0.33         $(0.19)
                                                       =====         ======
    Weighted average number of common shares
     outstanding:
      Basic                                          136,792        117,904
      Diluted                                        149,219        117,904


    >>

LIONS GATE ENTERTAINMENT CORP.

ANNUAL CONSOLIDATED STATEMENTS OF CASH FLOWS

    <<
                                     Year            Year         Year
                                    Ended           Ended         Ended
                                    March           March         March
                                      31,             31,          31,
                                       2011            2010          2009
                                       ----            ----          ----
                                         (Amounts in thousands)
    Operating Activities:
    Net loss                       $(53,599)       $(19,478)    $(178,454)
    Adjustments to reconcile net
     loss to
    net cash provided  by (used
     in) operating activities:
      Depreciation of property and
       equipment                      4,837           7,526         5,925
      Amortization of intangible
       assets                           974           4,929         1,732
      Amortization of films and
       television programs          529,428         511,658       458,757
      Amortization of debt
       discount and deferred
       financing costs               16,301          19,701        19,144
      Accreted interest payment
       from equity method investee
       TV Guide                      10,200               -             -
      Non-cash stock-based
       compensation                  29,204          17,875        13,438
      Loss (gain) on
       extinguishment of debt        14,505          (5,675)       (3,023)
      Equity interests loss          43,930          28,201         9,044
    Changes in operating assets
     and liabilities:
      Restricted cash               (43,067)           (187)          244
      Accounts receivable, net      (64,203)        (79,392)       37,304
      Investment in films and
       television programs         (487,391)       (471,087)     (558,277)
      Other assets                     (298)         (4,443)       (7,363)
      Accounts payable and accrued
       liabilities                    3,869         (22,769)       30,323
      Participations and residuals   (1,369)        (69,574)      (12,781)
      Film obligations               19,154         (48,786)       59,376
      Deferred revenue               19,852          (3,459)       22,705
                                     ------          ------        ------
    Net Cash Flows Provided By
     (Used In) Operating
     Activities                      42,327        (134,960)     (101,906)
                                     ------        --------      --------
    Investing Activities:
    Purchases of restricted
     investments                    (13,993)        (13,994)      (13,989)
    Proceeds from the sale of
     restricted investments          20,989          13,985        14,000
    Buy-out of the earn-out
     associated with the
     acquisition of Debmar-
     Mercury, LLC                   (15,000)              -             -
    Acquisition of TV Guide, net
     of unrestricted cash
     acquired                             -               -      (243,158)
    Investment in equity method
     investees                      (24,677)        (47,129)      (18,031)
    Increase in loans receivable     (1,042)         (1,418)      (28,767)
    Repayment of loans
     receivable                       8,113           8,333             -
    Purchases of property and
     equipment                       (2,756)         (3,684)       (8,674)
    Net Cash Flows Used In
     Investing Activities           (28,366)        (43,907)     (298,619)
                                    -------         -------      --------
    Financing Activities:
    Exercise of stock options             -               -         2,894
    Tax withholding requirements
     on equity awards               (13,476)         (2,030)       (3,734)
    Repurchase and cancellation
     of common shares                     -               -       (44,968)
    Proceeds from the issuance
     of mandatorily redeemable
     preferred stock units
      and common stock units
       related to the sale of 49%
       interest in TV Guide
       Network,
      net of unrestricted cash
       deconsolidated                     -         109,776             -
    Borrowings under senior
     revolving credit facility      525,250         302,000       255,000
    Repayments of borrowings
     under senior revolving
     credit facility               (472,500)       (540,000)            -
    Borrowings under individual
     production loans               118,589         144,741       189,858
    Repayment of individual
     production loans              (147,102)       (136,261)     (222,034)
    Production loan borrowings
     under Pennsylvania Regional
     Center credit facility               -          63,133             -
    Production loan borrowings
     under film credit facility      19,456          30,469             -
    Production loan repayments
     under film credit facility     (34,762)         (2,718)            -
    Change in restricted cash
     collateral associated with
     financing activities             3,087               -             -
    Proceeds from sale of senior
     secured second-priority
     notes                                -         214,727             -
    Repurchase of convertible
     senior subordinated notes            -         (75,185)       (5,310)
    Repayment of other financing
     obligations                          -            (134)          (67)
    Net Cash Flows Provided By
     (Used In) Financing
     Activities                      (1,458)        108,518       171,639
                                     ------         -------       -------
    Net Change In Cash And Cash
     Equivalents                     12,503         (70,349)     (228,886)
    Foreign Exchange Effects on
     Cash                             4,674           1,116        (4,228)
    Cash and Cash Equivalents -
     Beginning Of Period             69,242         138,475       371,589
                                     ------
    Cash and Cash Equivalents -
     End Of Period                  $86,419         $69,242      $138,475
                                    =======         =======      ========


    >>

LIONS GATE ENTERTAINMENT CORP.

FOURTH QUARTER CONSOLIDATED STATEMENTS OF CASH FLOWS

    <<
                                                  Three           Three
                                                  Months          Months
                                                  Ended           Ended
                                               March 31,       March 31,
                                                     2011            2010
                                                     ----            ----
                                                  (Amounts in thousands)
    Operating Activities:
    Net income (loss)                             $46,145        $(22,284)
    Adjustments to reconcile net income
     (loss) to
    net cash provided by operating
     activities:
      Depreciation of property and equipment        1,242           1,354
      Amortization of intangible assets                84             485
      Amortization of films and television
       programs                                   128,845         101,754
      Amortization of debt discount and
       deferred financing costs                     4,245           3,937
      Accreted interest payment from equity
       method investee TV Guide                    10,200               -
      Non-cash stock-based compensation             2,813           6,134
      Equity interests income (loss)               (1,636)         18,500
    Changes in operating assets and
     liabilities:
      Restricted cash                             (24,368)         (9,537)
      Accounts receivable, net                     40,836         (55,787)
      Investment in films and television
       programs                                   (66,243)        (33,067)
      Other assets                                  1,160          (6,854)
      Accounts payable and accrued liabilities    (28,501)          8,948
      Participations and residuals                 19,800          16,228
      Film obligations                             36,726         (28,767)
      Deferred revenue                            (13,380)          2,054
                                                  -------           -----
    Net Cash Flows Provided By Operating
     Activities                                   157,968           3,098
                                                  -------           -----
    Investing Activities:
    Investment in equity method investees               -          (5,787)
    Increase in loans receivable                   (1,042)         (1,056)
    Purchases of property and equipment            (1,569)         (1,110)
    Net Cash Flows Used In Investing
     Activities                                    (2,611)         (7,953)
                                                   ------          ------
    Financing Activities:
    Tax withholding requirements on equity
     awards                                          (557)           (297)
    Borrowings under senior revolving credit
     facility                                      43,500         132,000
    Repayments of borrowings under senior
     revolving credit facility                   (198,000)       (127,000)
    Borrowings under individual production
     loans                                         18,386          10,154
    Repayment of individual production loans       (3,805)        (24,376)
    Production loan borrowings under
     Pennsylvania Regional Center credit
     facility                                        (745)          5,970
    Production loan repayments under
     Pennsylvania Regional Center credit
     facility                                         740             163
    Production loan borrowings under film
     credit facility                                1,735          (1,748)
    Production loan repayments under film
     credit facility                               (3,255)         (2,718)
    Proceeds from sale of senior secured
     second-priority notes                              -          (1,505)
    Net Cash Flows Used In Financing
     Activities                                  (142,001)         (9,357)
                                                 --------          ------
    Net Change In Cash And Cash Equivalents        13,356         (14,212)
    Foreign Exchange Effects on Cash                3,485          (1,236)
    Cash and Cash Equivalents -Beginning Of
     Period                                        69,578          84,690
                                                   ------          ------
    Cash and Cash Equivalents - End Of Period     $86,419         $69,242
                                                  =======         =======


    >>

LIONS GATE ENTERTAINMENT CORP.

    <<
    RECONCILIATION OF NET INCOME (LOSS) TO ANNUAL EBITDA AND ANNUAL
                          EBITDA, AS ADJUSTED
    >>

    <<
                               Year           Year           Year
                              Ended          Ended          Ended
                               March          March          March
                                31,            31,            31,
                                 2011           2010            2009
                                 ----           ----            ----
                                    (Amounts in thousands)
    >>

    <<
    Net income (loss)        $(53,599)      $(19,478)      $(178,454)
      Depreciation and
       amortization             5,811         12,455           7,657
      Contractual cash
       paid interest
       expense                 38,879         27,461          15,131
      Noncash interest
       expense                 16,301         19,701          19,144
      Interest and other
       income                  (1,742)        (1,547)         (5,785)
      Income tax provision      4,256          1,218           2,724
      Equity interests
       loss                    43,930         28,201           9,044
      Loss (gain) on
       extinguishment of
       debt                    14,505         (5,675)         (3,023)
                               ------         ------          ------
    EBITDA                    $68,341        $62,336       $(133,562)
                              =======        =======       =========
    >>

    <<
      Stock-based
       compensation (1)        32,505         18,823           9,720
      EBITDA attributable
       to TV Guide Network      8,407          9,466               -
      Corporate defense
       and related charges     22,865          5,668             950
      Non-risk prints and
       advertising expense    (25,659)        32,126               -
                              -------         ------             ---
    EBITDA, as adjusted      $106,459       $128,419       $(122,892)
                             ========       ========       =========


    >>

    <<
                            The year ended March 31, 2011 includes
                            $21.9 million in additional
                            compensation expense associated with
                            the immediate vesting of certain
                            equity awards held by certain
                            executive officers as a result of the
                            triggering of "change in control"
                            provisions in their respective
                            employment agreements, which occurred
    (1)                     on June 30, 2010.


    >>

LIONS GATE ENTERTAINMENT CORP.

    <<
    RECONCILIATION OF NET INCOME (LOSS) TO FOURTH QUARTER EBITDA AND
                    FOURTH QUARTER EBITDA, AS ADJUSTED
    >>

    <<
                                          Three           Three
                                          Months          Months
                                          Ended           Ended
                                       March 31,       March 31,
                                             2011            2010
                                             ----            ----
                                          (Amounts in thousands)
    >>

    <<
    Net income (loss)                     $46,145        $(22,284)
      Depreciation and amortization         1,326           1,839
      Contractual cash paid interest
       expense                              9,200           9,873
      Noncash interest expense              4,245           3,937
      Interest and other income              (660)           (340)
      Income tax provision                    211             967
      Equity interests loss                (1,636)         18,500
                                           ------          ------
    EBITDA                                $58,831         $12,492
                                          =======         =======
    >>

    <<
      Stock-based compensation              2,530           6,258
      EBITDA attributable to TV Guide
       Network                              1,885           2,981
      Corporate defense and related
       charges                              2,416           4,656
      Non-risk prints and advertising
       expense                                 (5)          4,078
                                              ---           -----
    EBITDA, as adjusted                   $65,657         $30,465
                                          =======         =======


    >>

EBITDA is defined as earnings before interest, income tax provision, depreciation and amortization, equity interests, and gains or losses on extinguishment of debt and the sale of equity securities. EBITDA is a non-GAAP financial measure.

EBITDA, as adjusted represents EBITDA as defined above adjusted for stock-based compensation, EBITDA attributable to TV Guide Network, certain corporate defense and related charges, and non-risk prints and advertising expense. Stock-based compensation represents compensation expenses associated with stock options, restricted share units and stock appreciation rights. EBITDA attributable to TV Guide Network represents the Company's 51% share of TV Guide Network's EBITDA for the three months and year ended March 31, 2011 and 2010. Corporate defense and related charges represent legal fees, other professional fees, and certain other costs associated with a shareholder activist matter. Non-risk prints and advertising expense represents the amount of theatrical marketing expense for third party titles that the Company funded and expensed for which a third party provides a guarantee that such expense will be recouped from the performance of the film (i.e. there is no risk of loss to the company) net of an amount of the estimated amortization of participation expense that would have been recorded if such amount had not been expensed. The amount is subtracted from EBITDA in the three months and year ended March 31, 2011 because there was no non-risk prints and advertising expense incurred and the amount represents the estimated amortization of participation expense that would have been recorded if such prior period amounts had not been expensed.

Management believes EBITDA and EBITDA, as adjusted to be a meaningful indicator of our performance that provides useful information to investors regarding our financial condition and results of operations. Presentation of EBITDA and EBITDA, as adjusted is a non-GAAP financial measure commonly used in the entertainment industry and by financial analysts and others who follow the industry to measure operating performance. While management considers EBITDA and EBITDA, as adjusted to be an important measure of comparative operating performance, it should be considered in addition to, but not as a substitute for, net income and other measures of financial performance reported in accordance with Generally Accepted Accounting Principles. EBITDA and EBITDA, as adjusted do not reflect cash available to fund cash requirements. Not all companies calculate EBITDA or EBITDA, as adjusted in the same manner and the measure as presented may not be comparable to similarly-titled measures presented by other companies.

LIONS GATE ENTERTAINMENT CORP.

    <<
    RECONCILIATION OF ANNUAL FREE CASH FLOW TO NET CASH FLOWS PROVIDED BY
                        (USED IN) OPERATING ACTIVITIES
    >>

    <<
                                 Year            Year           Year
                                Ended           Ended           Ended
                                March                           March
                                  31,         March 31,          31,
                                   2011             2010           2009
                                   ----             ----           ----
                                       (Amounts in thousands)
    >>

    <<
    Net Cash Flows Provided
     By (Used In) Operating
     Activities                 $42,327        $(134,960)     $(101,906)
      Purchases of property and
       equipment                 (2,756)          (3,684)        (8,674)
      Net borrowings under and
       (repayment) of
       production loans         (43,819)          36,231        (32,176)
      Restricted cash held in
       trust                     13,992                -              -
                                 ------              ---            ---
    Free Cash Flow               $9,744        $(102,413)     $(142,756)
                                 ======        =========      =========


    >>

LIONS GATE ENTERTAINMENT CORP.

    <<
    RECONCILIATION OF FOURTH QUARTER FREE CASH FLOW TO NET CASH FLOWS
                     PROVIDED BY OPERATING ACTIVITIES
    >>

    <<
                                         Three           Three
                                         Months          Months
                                         Ended           Ended
                                      March 31,       March 31,
                                            2011            2010
                                            ----            ----
                                          (Amounts in thousands)
    >>

    <<
    Net Cash Flows Provided By
     Operating Activities               $157,968          $3,098
      Purchases of property and
       equipment                          (1,569)         (1,110)
      Net borrowings under and
       (repayment) of production
       loans                              13,061         (18,688)
      Restricted cash held in
       trust                              (1,823)              -
                                          ------             ---
    Free Cash Flow                      $167,637        $(16,700)
                                        ========        ========


    >>

Free cash flow is defined as net cash flows provided by (used in) operating activities, less purchases of property and equipment, plus or minus the net increase or decrease in production loans including production loan activity under the Company's Film Credit Facility, plus or minus the net increase or decrease in restricted cash held in a trust to fund the Company's cash severance obligations that would be due to certain executive officers should their employment be terminated "without cause," (as defined), in connection with a "change in control" of the Company, (as defined in each of their respective employment contracts). For purposes of the employment agreements with such executive officers, a "change in control" occurred on June 30, 2010 when a certain shareholder became the beneficial owner of 33% or more of the Company's common shares. The adjustment for the production loans is made because the GAAP based cash flows from operations reflects a non-cash reduction of cash flows for the cost of films associated with production loans prior to the time the Company actually pays for the film. The Company believes that it is more meaningful to reflect the impact of the payment for these films in its free cash flow when the payments are actually made.

Free cash flow is a non-GAAP financial measure as defined in Regulation G promulgated by the Securities and Exchange Commission. This non-GAAP financial measure is in addition to, not a substitute for, or superior to, measures of financial performance prepared in accordance with Generally Accepted Accounting Principles.

Management believes this non-GAAP measure provides useful information to investors regarding cash that our operating businesses generate whether classified as operating or financing activity (related to the production of our films) within our GAAP based statement of cash flows, before taking into account cash movements that are non-operational. Free cash flow is a non-GAAP financial measure commonly used in the entertainment industry and by financial analysts and others who follow the industry. Not all companies calculate free cash flow in the same manner and the measure as presented may not be comparable to similarly titled measures presented by other companies.

LIONS GATE ENTERTAINMENT CORP.

RECONCILIATION OF ANNUAL EBITDA TO ANNUAL FREE CASH FLOW

    <<
                                   Year            Year           Year
                                  Ended            Ended         Ended
                                   March           March          March
                                    31,              31,           31,
                                      2011            2010           2009
                                      ----            ----           ----
                                         (Amounts in thousands)
    >>

EBITDA $68,341 $62,336 $(133,562)

    <<
      Plus: Amortization of
       film and television
       programs                    529,428         511,658        458,757
      Less: Cash paid for
       film and television
       programs (1)               (512,056)       (483,642)      (531,077)
                                  --------        --------       --------
      Amortization of (cash paid
       for) film and television
       programs
         in excess of cash paid
          (amortization)            17,372          28,016        (72,320)
    >>

    <<
      Plus: Non-cash stock-
       based compensation           29,204          17,875         13,438
                                    ------          ------         ------
    >>

    <<
    EBITDA adjusted for net
     investment in film and
     television programs
      and non-cash stock-
       based compensation          114,917         108,227       (192,444)
    >>

    <<
    Changes in other operating
     assets and liabilities:
      Restricted cash
       excluding funds held
       in trust                    (29,075)           (187)           244
      Accounts receivable,
       net                         (64,203)        (79,392)        37,304
      Other assets                    (298)         (4,443)        (7,363)
      Accounts payable and
       accrued liabilities           3,869         (22,769)        30,323
      Participations and
       residuals                    (1,369)        (69,574)       (12,781)
      Deferred revenue              19,852          (3,459)        22,705
      Accreted interest
       payment from equity
       method investee TV
       Guide                        10,200               -              -
                                    ------             ---            ---
                                   (61,024)       (179,824)        70,432
    >>

    <<
      Purchases of property
       and equipment                (2,756)         (3,684)        (8,674)
      Interest, taxes and
       other (2)                   (41,393)        (27,132)       (12,070)
    >>

    <<
    Free Cash Flow                  $9,744       $(102,413)     $(142,756)
                                    ======       =========      =========
    >>

    <<
    (1) Cash paid for film and
     television programs is
     calculated using the
     following amounts
      as presented in our
       consolidated statement of
       cash flows:
    >>

    <<
      Change in investment
       in film and
       television programs       $(487,391)      $(471,087)     $(558,277)
      Change in film
       obligations                  19,154         (48,786)        59,376
      Borrowings under
       individual production
       loans                       118,589         144,741        189,858
      Repayment of
       individual production
       loans                      (147,102)       (136,261)      (222,034)
      Production loan
       borrowings under film
       credit facility              19,456          30,469              -
      Production loan
       repayments under film
       credit facility             (34,762)         (2,718)             -
                                   -------          ------            ---
        Total cash paid for
         film and television
         programs                $(512,056)      $(483,642)     $(531,077)
                                 =========       =========      =========
    >>

    <<
    (2) Interest, taxes and
     other consists of the
     following:
    >>

    <<
      Contractual cash based
       interest                   $(38,879)       $(27,461)      $(15,131)
      Interest and other
       income                        1,742           1,547          5,785
      Income tax provision          (4,256)         (1,218)        (2,724)
                                    ------          ------         ------
        Total interest, taxes
         and other                $(41,393)       $(27,132)      $(12,070)
                                  ========        ========       ========


    >>

This reconciliation is provided to illustrate the difference between our EBITDA and free cash flow which are both separately reconciled to their corresponding GAAP metrics.

LIONS GATE ENTERTAINMENT CORP.

    <<
    RECONCILIATION OF FOURTH QUARTER EBITDA TO FOURTH QUARTER FREE CASH
                                    FLOW
    >>

    <<
                                             Three           Three
                                             Months          Months
                                             Ended           Ended
                                          March 31,       March 31,
                                                2011            2010
                                                ----            ----
                                             (Amounts in thousands)
    >>

EBITDA $58,831 $12,492

    <<
      Plus: Amortization of film and
       television programs                   128,845         101,754
      Less: Cash paid for film and
       television programs (1)               (16,456)        (80,522)
                                             -------         -------
      Amortization of film and television programs
         in excess of cash paid              112,389          21,232
    >>

    <<
      Plus: Non-cash stock-based
       compensation                            2,813           6,134
                                               -----           -----
    >>

    <<
    EBITDA adjusted for net investment in film
     and television programs
      and non-cash stock-based
       compensation                          174,033          39,858
    >>

    <<
    Changes in other operating assets and
     liabilities:
      Restricted cash excluding funds
       held in trust                         (26,191)         (9,537)
      Accounts receivable, net                40,836         (55,787)
      Other assets                             1,160          (6,854)
      Accounts payable and accrued
       liabilities                           (28,501)          8,948
      Participations and residuals            19,800          16,228
      Deferred revenue                       (13,380)          2,054
      Accreted interest payment from
       equity method investee TV Guide        10,200               -
                                              ------             ---
                                               3,924         (44,948)
    >>

    <<
      Purchases of property and
       equipment                              (1,569)         (1,110)
      Interest, taxes and other (2)           (8,751)        (10,500)
    >>

    <<
    Free Cash Flow                          $167,637        $(16,700)
                                            ========        ========
    >>

    <<
    (1) Cash paid for film and television programs
     is calculated using the following amounts
      as presented in our consolidated statement
       of cash flows:
    >>

    <<
      Change in investment in film and
       television programs                  $(66,243)       $(33,067)
      Change in film obligations              36,726         (28,767)
      Borrowings under individual
       production loans                       18,386          10,154
      Repayment of individual production
       loans                                  (3,805)        (24,376)
      Production loan borrowings under
       film credit facility                    1,735          (1,748)
      Production loan repayments under
       film credit facility                   (3,255)         (2,718)
                                              ------          ------
        Total cash paid for film and
         television programs                $(16,456)       $(80,522)
                                            ========        ========
    >>

    <<
    (2) Interest, taxes and other consists of
     the following:
    >>

    <<
      Contractual cash based interest        $(9,200)        $(9,873)
      Interest and other income                  660             340
      Income tax provision                      (211)           (967)
                                                ----            ----
        Total interest, taxes and other      $(8,751)       $(10,500)
                                             =======        ========


    >>

This reconciliation is provided to illustrate the difference between our EBITDA and free cash flow which are both separately reconciled to their corresponding GAAP metrics.

    <<




    >>

SOURCE Lionsgate

For further information: Web Site: http://www.lionsgate.com


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