Lionsgate Reports Record Revenues of $1.47 Billion for Fiscal 2009, up 8% From Previous Year; Net Loss is $163.0 Million



    
    Company Reports $463.2 Million In Fourth Quarter Revenues

    
    SANTA MONICA, Calif., and VANCOUVER, British Columbia, June 1
/PRNewswire-FirstCall/ -- Lionsgate (NYSE:   LGF), the leading next generation
studio, continued its growth momentum for fiscal 2009, reporting revenues of
$1.47 billion and a net loss of $163.0 million for its fiscal year ended March
31, 2009, the Company announced today.  The Company noted that revenue growth
of 8% from the prior year was driven by increased home entertainment sales,
growth in library revenues, continued strength in television production
revenues and burgeoning digital revenues throughout the fiscal year.  The
Company reported $463.2 million in fourth quarter revenues, its second best
quarterly revenue performance, driven by record theatrical box office in the
quarter and strong home entertainment and library sales.

    Lionsgate reported a net loss for the fiscal year ended March 31, 2009 of
$163.0 million.  Diluted net loss per common share was $1.40 on 116.8 million
weighted average common shares outstanding compared to diluted net loss of
$0.62 on 118.4 million weighted average common shares outstanding the prior
year.  The loss was primarily attributable to the underperformance of
theatrical releases in the second and third fiscal quarters and a charge of
$36.1 million taken on the Company's North American DVD distribution of HIT
Entertainment's family entertainment titles.  Theatrical distribution and
marketing expenses of $330.5 million increased 1.3% from $326.3 million in the
previous year.  The Company anticipates that theatrical marketing and
distribution expenses will decrease by more than $100 million in fiscal 2010.

    Lionsgate reported EBITDA for the year of negative $133.6 million
compared to EBITDA of negative $54.6 million in the prior year.  EBITDA is
defined as earnings before interest, income tax provision, depreciation and
amortization, equity interests and gains on extinguishment of debt and the
sale of equity securities.

    "We ended our fiscal year on a strong note with record box office in the
first calendar quarter," said Lionsgate Co-Chairman and Chief Executive
Officer Jon Feltheimer. "We are also pleased that we could drive library, home
entertainment and television revenues to record levels in such a challenging
market environment.  We believe that continued strength in our core businesses
coupled with meaningful contributions from many of our recent investments and
lower theatrical marketing costs position us for strong positive metrics in
fiscal 2010."

    The Company reported that cash and cash equivalents were $138.5 million
at March 31, 2009.  This is prior to the sale of a 49% equity interest in TV
Guide Network and TV Guide.com to global private equity investment fund One
Equity Partners for $123 million in cash on May 28, 2009.  The Company's
filmed entertainment backlog grew to a record $499.5 million at fiscal
year-end.  Filmed entertainment backlog represents the amount of future
revenue not yet recorded from the licensing of films and television product
for television exhibition and in international markets.

    Overall motion picture revenue for the year grew to a record $1.23
billion, an increase of 7% from $1.15 billion in the prior year, reflecting
gains in theatrical, home entertainment and television from motion pictures
that more than offset declines in international and Mandate Pictures.  Within
the motion picture segment, theatrical revenue was $223.3 million, an increase
of 17% from $191.7 million the previous year, propelled by record fourth
quarter box office from titles such as Tyler Perry's Madea Goes To Jail, My
Bloody Valentine 3-D and The Haunting In Connecticut as well as successes
earlier in the year that included Saw V, Tyler Perry's The Family That Preys
and The Forbidden Kingdom.  However, margins during the fiscal year decreased,
primarily attributable to underperforming theatrical releases in the second
and third quarter, contributing to the net loss for the year.

    Lionsgate's home entertainment revenue was a record $675.6 million in the
fiscal year, a 5% increase from $645.1 million in the prior year, reflecting
strong sales of titles such as Saw V, Tyler Perry's The Family That Preys, The
Forbidden Kingdom, The Bank Job, The Eye, Rambo, Tyler Perry's Meet The
Browns, Punisher: War Zone, Transporter 3, Bangkok Dangerous and My Best
Friend's Girl.  This  includes $34.9 million from television programming on
DVD, including the third season of Weeds and the first season of Mad Men, a
62% increase from $21.6 million in the prior year.  Lionsgate achieved a
record $279 million in library revenues in the fiscal year, the majority of
which is included in Home Entertainment.

    Television revenue included in the motion picture segment was $170.3
million in the fiscal year, a 47% increase from $115.5 million in the prior
year, reflecting a strong pay television slate that included titles such as
3:10 To Yuma, Forbidden Kingdom, Good Luck Chuck, Tyler Perry's Meet The
Browns, Rambo, Saw IV, The Bank Job, The Eye and Tyler Perry's Why Did I Get
Married?

    Lionsgate's international revenues of $142.3 million decreased 10% from
$158.7 million the prior year as this year's international theatrical slate of
My Best Friend's Girl, Punisher: War Zone, Saw V and The Eye compared
unfavorably to last year's theatrical slate of Good Luck Chuck, Saw IV, War
and The Condemned, exacerbated by softness in the international sales market.

    Mandate Pictures' revenue of $45.5 million decreased 13% from $52.3
million in the prior year.  Revenue drivers in the fiscal year were Juno and
Nick & Norah's Infinite Playlist.

    Television production revenue increased to $222.2 million in the fiscal
year, a 6% gain from $210.5 million in the prior year, as domestic series
licensing and home entertainment releases of television programming reported
strong gains.  International television revenues and revenues from domestic
television movies and miniseries declined.  In fiscal 2009, Lionsgate
delivered 62 episodes and 54.5 hours of such television series as the Emmy
Award-winning Mad Men (AMC), Weeds (Showtime), Crash (Starz), Fear Itself (NBC
and FEARnet) and Scream Queens (VH1) compared to 57 episodes and 48.5 hours of
television series and pilots the prior year.  Lionsgate anticipates continued
growth of its television business in fiscal 2010 with the addition of new
series such as Nurse Jackie (Showtime), which debuts on June 8th, Blue
Mountain State (Spike), new reality shows from the Company's joint venture
with ISH Entertainment and a Debmar-Mercury portfolio of syndicated
programming that includes Tyler Perry's House of Payne, the House of Payne
spinoff Meet The Browns, The Wendy Williams Show, E! True Hollywood Stories,
Family Feud and South Park.

    Also reflecting growth of the Company's television business is $10.3
million in Media Networks revenue, representing one month of revenue from TV
Guide Network and TV Guide.com subsequent to their February 28, 2009
acquisition by Lionsgate.

    Lionsgate senior management will hold its analyst and investor conference
call to discuss its fiscal 2009 financial results at 9:00 A.M. ET/6:00 A.M.
PT, Tuesday, June 2, 2009.  Interested parties may participate live in the
conference call by calling 1-800-230-1059 (612-332-0418 outside the U.S. and
Canada).  A full digital replay will be available from Tuesday afternoon, June
2, through Tuesday, June 9, by dialing 1-800-475-6701 (320-365-3844 outside
the U.S. and Canada) and using access code 102099.

    Lionsgate is the leading next generation studio with a diversified
presence in the production and distribution of motion pictures, television
programming, home entertainment, family entertainment, video-on-demand and
digitally delivered content. The Company is leveraging its content leadership
and marketing expertise to create a multiplatform global industry leader in
entertainment through the recent acquisition of TV Guide Network, one of the
25 most widely distributed cable networks, the recent acquisition of TV
Guide.com, a premier content and navigation portal, partnerships that include
the FEARnet branded VOD and Internet horror channel with Sony and Comcast, the
expected fall 2009 launch of EPIX, a new premium entertainment channel with
partners Viacom and MGM, investment in the leading young men's digital
distribution platform Break Media, ownership of the premier independent
television syndication company Debmar-Mercury and an alliance with independent
filmed entertainment production and distribution company Roadside Attractions.

    The Company is a market share leader at the North American theatrical box
office for calendar 2009 due to recent theatrical box office successes such as
TYLER PERRY'S MADEA GOES TO JAIL, the second highest-grossing film in
Lionsgate history, MY BLOODY VALENTINE 3D and THE HAUNTING IN CONNECTICUT. 
Other recent successes include SAW V, RELIGULOUS, FORBIDDEN KINGDOM, RAMBO and
THE BANK JOB.  Lionsgate has forged a strong position in television with the
production of such critically-acclaimed series as "Mad Men," "Weeds" and
"Crash," the distribution of Tyler Perry's "House of Payne," "Family Feud" and
"South Park," and upcoming shows including Tyler Perry's "Meet The Browns" and
"The Wendy Williams Show."  In addition, the Company's home entertainment
business, propelled by such recent DVD successes as TRANSPORTER 3, SAW V and
TYLER PERRY'S THE FAMILY THAT PREYS, is the industry leader in box
office-to-DVD conversion rate and has market share of nearly 8%.  Lionsgate
handles a prestigious and prolific library of approximately 12,000 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.
    

    More information on Lionsgate can be found at www.lionsgate.com.
    

    www.lionsgate.com

    For further information, 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 timing of our upcoming film slate
and the performance of our fiscal 2010.  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, budget
overruns, limitations imposed by our credit facilities, unpredictability of
the commercial success of our motion pictures and television programming, the
cost of defending our intellectual property, difficulties in integrating
acquired businesses, 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
on June 1, 2009. 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
    


    

    
                         LIONSGATE ENTERTAINMENT CORP.
                         CONSOLIDATED BALANCE SHEETS
    

    
                                                    March 31,   March 31,
                                                       2009        2008
                                                       ----        ----
                                                   (Amounts in thousands,
                                                    except share amounts)
                                    ASSETS
    Cash and cash equivalents                        $138,475    $371,589
    Restricted cash                                    10,056      10,300
    Restricted investments                              6,987       6,927
    Accounts receivable, net of reserve for returns
     and allowances of $98,947 (March 31, 2008 -
     $95,515) and provision for doubtful
     accounts of $9,847 (March 31, 2008 -
     $5,978)                                          227,010     260,284
    Investment in films and television programs,
     net                                              702,767     608,942
    Property and equipment, net                        42,415      13,613
    Finite-lived intangible assets, net                78,904       2,317
    Goodwill                                          379,402     224,531
    Other assets                                       81,554      39,255
                                                       ------      ------
                                                   $1,667,570  $1,537,758
                                                   ==========  ==========
    

    
                                  LIABILITIES
    Bank loans                                       $255,000          $-
    Accounts payable and accrued
     liabilities                                      270,561     245,430
    Participations and residuals                      371,857     385,846
    Film and production obligations                   304,525     278,016
    Subordinated notes and other financing
     obligations                                      331,716     328,718
    Deferred revenue                                  142,093     111,510
                                                      -------     -------
                                                    1,675,752   1,349,520
                                                    ---------   ---------
    

    Commitments and contingencies

    
                       SHAREHOLDERS' EQUITY (DEFICIENCY)
    Common shares, no par value, 500,000,000 shares
     authorized, 116,950,512 and
     121,081,311 shares issued at March 31, 2009
     and March 31, 2008, respectively                 390,295     434,650
    Series B preferred shares (nil and 10 shares
     issued and outstanding
     at March 31, 2009 and March 31, 2008,
     respectively)                                          -           -
    Accumulated deficit                              (386,599)   (223,619)
    Accumulated other comprehensive loss              (11,878)       (533)
                                                      -------        ----
                                                       (8,182)    210,498
    Treasury shares, no par value, 2,410,499
     shares at March 31, 2008                               -     (22,260)
                                                          ---     -------
                                                       (8,182)    188,238
                                                       ------     -------
                                                   $1,667,570  $1,537,758
                                                   ==========  ==========
    



    
                        LIONSGATE ENTERTAINMENT CORP.
                   CONSOLIDATED STATEMENTS OF OPERATIONS
    

    
                                       Year        Year        Year
                                       Ended       Ended      Ended
                                     March 31,   March 31,  March 31,
                                        2009        2008       2007
                                        ----        ----       ----
                                       (Amounts in thousands, except
                                            per share amounts)
    


    
    Revenues                        $1,466,374  $1,361,039   $976,740
    Expenses:
      Direct operating                 793,816     660,924    435,934
      Distribution and marketing       669,557     635,666    404,410
      General and administration       136,563     119,080     90,782
      Depreciation and amortization      7,657       5,500      3,670
                                         -----       -----      -----
        Total expenses               1,607,593   1,421,170    934,796
                                     ---------   ---------    -------
    Operating income (loss)           (141,219)    (60,131)    41,944
                                      --------     -------     ------
    Other expenses (income):
      Interest expense                  19,327      16,432     17,832
      Interest and other income         (5,785)    (11,276)   (11,930)
      Gain on sale of equity
       securities                            -      (2,909)    (1,722)
      Gain on extinguishment of
       debt                             (3,549)          -          -
                                        ------         ---        ---
        Total other expenses, net        9,993       2,247      4,180
                                         -----       -----      -----
    Income (loss) before equity
     interests and income taxes       (151,212)    (62,378)    37,764
    Equity interests loss               (9,044)     (7,559)    (2,605)
                                        ------      ------     ------
    Income (loss) before income
     taxes                            (160,256)    (69,937)    35,159
    Income tax provision                 2,724       4,031      7,680
                                         -----       -----      -----
    Net income (loss)                $(162,980)   $(73,968)   $27,479
                                     =========    ========    =======
    Basic Net Income (Loss) Per
     Common Share                       $(1.40)     $(0.62)     $0.25
                                        ======      ======      =====
    Diluted Net Income (Loss) Per
     Common Share                       $(1.40)     $(0.62)     $0.25
                                        ======      ======      =====
    Weighted average number of
     common shares outstanding:
      Basic                            116,795     118,427    108,398
      Diluted                          116,795     118,427    111,164
    



    
                         LIONSGATE ENTERTAINMENT CORP.
                   CONSOLIDATED STATEMENTS OF CASH FLOWS
    

    
                                           Year        Year        Year
                                          Ended       Ended       Ended
                                         March 31,   March 31,   March 31,
                                           2009        2008        2007
                                           ----        ----        ----
                                              (Amounts in thousands)
    Operating Activities:
    Net income (loss)                    $(162,980)  $(73,968)   $27,479
    Adjustments to reconcile net income
     (loss) to net cash provided
     by (used in) operating activities:
      Depreciation of property and
       equipment                             5,925      3,974      2,786
      Amortization of deferred
       financing costs                       4,196      3,581      3,756
      Amortization of films and
       television programs                 458,757    403,319    241,640
      Amortization of intangible assets      1,732      1,526        884
      Non-cash stock-based compensation     13,438     13,934      7,259
      Gain on sale of equity securities          -     (2,909)    (1,722)
      Gain on extinguishment of debt        (3,549)         -          -
      Deferred income taxes                      -     (1,087)     6,780
      Equity interests loss                  9,044      7,559      2,605
    Changes in operating assets and
     liabilities:
      Restricted cash                          244       (228)    (4,095)
      Accounts receivable, net              37,304   (128,876)    79,704
      Investment in films and
       television programs                (558,277)  (445,714)  (297,149)
      Other assets                          (7,363)    (2,985)     7,448
      Accounts payable and accrued
       liabilities                          30,323     67,791    (38,509)
      Unpresented bank drafts                    -          -    (14,772)
      Participations and residuals         (12,781)   209,806      3,261
      Film obligations                      59,376      1,387     (6,079)
      Deferred revenue                      22,705     32,040     38,451
                                            ------     ------     ------
    Net Cash Flows Provided By (Used In)
     Operating Activities                 (101,906)    89,150     59,727
                                          --------     ------     ------
    Investing Activities:
    Purchases of investments - auction
     rate securities                       (13,989)  (229,262)  (865,750)
    Proceeds from the sale of
     investments - auction
     rate securities                        14,000    466,641    795,448
    Purchases of investments - equity
     securities                                  -     (4,836)      (122)
    Proceeds from the sale of
     investments -
     equity securities                           -     24,155        390
    Acquisition of TV Guide Network,
     net of
     unrestricted cash acquired           (243,158)         -          -
    Acquisition of Mandate Pictures,
     net of
     unrestricted cash acquired                  -    (41,205)         -
    Acquisition of Maple Pictures, net
     of
     unrestricted cash acquired                  -      1,753          -
    Acquisition of Debmar, net of
     unrestricted
     cash acquired                               -          -    (24,119)
    Investment in equity method
     investees                             (18,031)    (6,460)    (5,116)
    Increase in loan receivables           (28,767)    (5,895)         -
    Purchases of property and equipment     (8,674)    (3,608)    (8,348)
                                            ------     ------     ------
    Net Cash Flows Provided By (Used In)
     Investing Activities                 (298,619)   201,283   (107,617)
                                          --------    -------   --------
    Financing Activities:
    Exercise of stock options                2,894      1,251      4,277
    Tax withholding requirements on
     equity awards                          (3,734)    (5,319)         -
    Repurchase and cancellation of
     common shares                         (44,968)   (22,260)         -
    Borrowings under bank loan             255,000
    Borrowings under financing
     arrangements                                -      3,718          -
    Increase in production obligations     189,858    162,400     97,083
    Repayment of production obligations   (222,034)  (111,357)   (48,993)
    Repayment of subordinated notes and
     other
     financing obligations                  (5,377)         -          -
                                            ------        ---        ---
    Net Cash Flows Provided By
     Financing Activities                  171,639     28,433     52,367
                                           -------     ------     ------
    Net Change In Cash And Cash
     Equivalents                          (228,886)   318,866      4,477
    Foreign Exchange Effects on Cash        (4,228)     1,226         42
    Cash and Cash Equivalents -
     Beginning Of Period                   371,589     51,497     46,978
                                           -------     ------     ------
    Cash and Cash Equivalents - End Of
     Period                               $138,475   $371,589    $51,497
                                          ========   ========    =======
    



    
                        LIONSGATE ENTERTAINMENT CORP.
                RECONCILIATION OF FREE CASH FLOW, AS DEFINED
         TO NET CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES
    

    
                                                    Year       Year
                                                   Ended      Ended
                                                 March 31,   March 31,
                                                    2009       2008
                                                    ----       ----
                                                (Amounts in thousands)
    Net Cash Flows Provided By (Used In)
     Operating Activities                        $(101,906)   $89,150
      Purchases of property and equipment           (8,674)    (3,608)
      Net borrowings under and (repayment) of
       production obligations                      (32,176)    51,043
                                                   -------     ------
    Free Cash Flow, as defined                   $(142,756)  $136,585
                                                 =========   ========
    



    
    Free cash flow is defined as net cash flows provided by (used in)
    operating activities, less purchases of property and equipment and plus or
    minus the net increase or decrease in production obligations. The
    adjustment for the production obligations 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 obligations 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.
    



    
                      LIONSGATE ENTERTAINMENT CORP.
         RECONCILIATION OF EBITDA, AS DEFINED TO NET INCOME (LOSS)
    

    
                                 Year       Year       Year
                                Ended      Ended      Ended
                              March 31,  March 31,  March 31,
                                 2009       2008       2007
                                 ----       ----       ----
                                   (Amounts in thousands)
    EBITDA, as defined        $(133,562)  $(54,631)   $45,614
      Depreciation and
       amortization              (7,657)    (5,500)    (3,670)
      Interest expense          (19,327)   (16,432)   (17,832)
      Interest and other
       income                     5,785     11,276     11,930
      Equity interests loss      (9,044)    (7,559)    (2,605)
      Gain on sale of equity
       securities                     -      2,909      1,722
      Gain on extinguishment
       of debt                    3,549          -          -
      Income tax provision       (2,724)    (4,031)    (7,680)
                                 ------     ------     ------
    Net income (loss)         $(162,980)  $(73,968)   $27,479
                              =========   ========    =======
    



    
    EBITDA is defined as earnings before interest, income tax provision,
    depreciation and amortization, equity interests, and gains on
    extinguishment of debt and the sale of equity securities.  EBITDA as
    defined, is a non-GAAP financial measure. Management believes EBITDA as
    defined, 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 as defined, 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 as defined, 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 as defined, does not
    reflect cash available to fund cash requirements. Not all companies
    calculate EBITDA as defined, in the same manner and the measure as
    presented may not be comparable to similarly-titled measures presented by
    other companies.





    




For further information:

For further information: Peter D. Wilkes of Lionsgate, +1-310-255-3726,
pwilkes@lionsgate.com Web Site: http://www.lionsgate.com


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