Lionsgate Reports Revenues of $290.9 Million and Net Profit of $2.0 Million for Third Quarter of Fiscal 2008



    
    Company Reports Best Third Quarter Revenue In Its History
    

    SANTA MONICA, Calif., and VANCOUVER, British Columbia, Feb. 11 /CNW/ --
Lionsgate (NYSE:   LGF), the leading independent filmed entertainment studio,
continued its growth momentum, reporting revenues of $290.9 million and net
income of $2.0 million for its fiscal quarter ended December 31, 2007, the
Company announced today.  The Company noted that revenue growth of 14% from
the prior year third quarter was driven by strong theatrical box office,
international revenue growth and continued strength in television production
revenues.  The Company achieved its best revenue performance ever for a fiscal
third quarter.
    Lionsgate reported net income for the three months ended December 31,
2007, of $2.0 million.  Diluted net income per common share was $0.02 on 120.3
million adjusted weighted average common shares outstanding.
    "Our theatrical, television, home entertainment, library, international
and digital businesses all achieved continued solid performance in the
quarter," said Lionsgate Co-Chairman and Chief Executive Officer Jon
Feltheimer. "With an anticipated record-breaking revenue and free cash flow
quarter ending March 31, we are on track to meet our full year guidance."
    The Company reported that its filmed entertainment backlog grew to a
record $416.6 million in the quarter.  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 quarter was $254.1 million.
Lionsgate had two hit theatrical releases in the quarter, Saw IV and Tyler
Perry's Why Did I Get Married?, and the Company has now had seven hit releases
in a row -- The Eye, Rambo, Saw IV, Why Did I Get Married?, 3:10 To Yuma, Good
Luck, Chuck and War.
    Lionsgate's home entertainment revenue was $105.1 million in the third
quarter, reflecting strong sales of Bratz, Skinwalkers and Captivity and
continued sales of Delta Farce, Saw III and The Condemned.  After the close of
the quarter, Lionsgate had the best DVD month in its history in January 2008
as War, 3:10 To Yuma, Good Luck, Chuck and Saw IV all debuted at #1 or #2 on
the North American DVD and BluRay charts.
    Television revenue included in the motion picture segment was $28.9
million in the third quarter, led by titles such as Crash, Daddy's Little
Girls, Happily N'Ever After and Pride.
    Lionsgate also had the strongest international revenue quarter in its
history, reporting $53.8 million in international revenue in the third quarter
from such titles as Saw IV, Saw III, Good Luck, Chuck, War, Catacombs, the
special edition DVD release of Dirty Dancing by Lionsgate U.K. and Mandate
International's 30 Days of Night.  Lionsgate U.K. contributed $22.4 million in
revenue in the quarter.
    Television production revenue was $36.8 million in the third quarter,
driven by deliveries of episodes of Golden Globe (R)-winning drama series Mad
Men (AMC), Weeds Season 3 (Showtime) and Wildfire Season 4 (ABC Family), and
domestic series licensing of Tyler Perry's House of Payne, South Park and
Family Feud from the Company's Debmar-Mercury syndication arm.
    Lionsgate senior management will hold its analyst and investor conference
call to discuss its fiscal 2008 third quarter financial results at 9:00 A.M.
ET/6:00 A.M. PT, Tuesday, February 12, 2008.  Interested parties may
participate live in the conference call by calling 1-888-639-6205
(1-703-925-2608 outside the U.S. and Canada). A full digital replay will be
available from Tuesday afternoon, February 12, through Tuesday, February 19,
by dialing 1-800-475-6701 (1-320-365-3844 outside the U.S. and Canada) and
using access code 907460.
    Lionsgate is the leading independent filmed entertainment studio and is a
premier producer and distributor of motion pictures, television programming,
home entertainment, family entertainment, video-on-demand and digitally
delivered content.  Its prestigious and prolific library of nearly 12,000
motion picture titles and television episodes is a valuable source of
recurring revenue and a foundation for the growth of the Company's core
businesses. The Lionsgate brand is synonymous with original, daring, quality
entertainment in markets around the globe.

    http://www.lionsgate.com

    
     For further information, contact:
     Peter D. Wilkes
     Lionsgate
     310-255-3726
     pwilkes@lionsgate.com
    

    
     Kelli Easterling
     Lionsgate
     310-255-4929
     keasterling@lionsgate.com
    
    The matters discussed in this press release include forward-looking
statements, including those regarding the timing of our upcoming film slate,
the expansion of our television business and the success of our fiscal 2008.
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 May 30, 2007. 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.

    UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

    
                                                December 31,         March 31,
                                                    2007               2007
                                                (Unaudited)
                                                  (Amounts in thousands,
                                                   except share amounts)
                            ASSETS
    Cash and cash equivalents                     $182,654            $51,497
    Restricted cash                                 32,396              4,915
    Investments - auction rate
     securities                                          -            237,379
    Investments - equity securities                      -                125
    Accounts receivable, net of reserve
     for video returns and allowances of
     $69,978 (March 31, 2007 - $77,691)
     and provision for doubtful accounts
     of $5,448 (March 31, 2007 - $6,345)           163,376            130,496
    Investment in films and television
     programs                                      710,680            493,140
    Property and equipment                          13,877             13,095
    Goodwill                                       227,063            187,491
    Other assets                                    50,831             18,957
                                                $1,380,877         $1,137,095
    

    
                          LIABILITIES
    Accounts payable and accrued
     liabilities                                  $224,933           $155,617
    Participation and residuals                    286,494            171,156
    Film obligations                               269,375            167,884
    Subordinated notes and other
     financing obligations                         328,718            325,000
    Deferred revenue                               120,841             69,548
                                                 1,230,361            889,205
    

    Commitments and contingencies

    
                     SHAREHOLDERS' EQUITY
    Common shares, no par value,
     500,000,000 shares authorized,
     120,401,688 and 116,970,280 shares
     issued at December 31, 2007 and
     March 31, 2007, respectively                  427,069            398,836
    Series B preferred shares (10 shares
     issued and outstanding)                             -                  -
    Accumulated deficit                           (257,025)          (149,651)
    Accumulated other comprehensive
     income (loss)                                     809             (1,295)
                                                   170,853            247,890
    Treasury shares, no par value, 2,196,899
     shares at December 31, 2007                   (20,337)                 -
                                                   150,516            247,890
                                                $1,380,877         $1,137,095
    



    LIONS GATE ENTERTAINMENT CORP.

    UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

    
                                     Three     Three       Nine       Nine
                                     Months    Months     Months     Months
                                     Ended     Ended      Ended      Ended
                                    December  December   December   December
                                   31, 2007   31, 2006   31, 2007   31, 2006
                                        (Amounts in thousands, except
                                              per share amounts)
    

    
    Revenues                       $290,866   $254,531    $833,113   $645,156
    Expenses:
      Direct operating              137,381    110,921     406,926    274,189
      Distribution and marketing    120,429     95,803     444,942    296,194
      General and administration     27,093     23,347      79,802     64,307
      Depreciation                      933        824       2,830      1,949
        Total expenses              285,836    230,895     934,500    636,639
    Operating income (loss)           5,030     23,636    (101,387)     8,517
    Other expenses (income):
      Interest expense                4,090      4,601      12,163     14,181
      Interest and other income      (2,511)    (2,906)     (8,960)    (7,753)
      Gain on sale of equity
       securities                       (83)         -      (2,868)         -
        Total other income, net       1,496      1,695         335      6,428
    Income (loss) before equity
     interests and income taxes       3,534     21,941    (101,722)     2,089
    Equity interests loss            (1,248)      (425)     (3,242)      (802)
    Income (loss) before income
     taxes                            2,286     21,516    (104,964)     1,287
    Income tax provision
     (benefit)                          328      1,061       2,410     (1,172)
    Net income (loss)                $1,958    $20,455   $(107,374)    $2,459
    

    
    Basic Net Income (Loss) Per
     Common Share                     $0.02      $0.19      $(0.91)     $0.02
    Diluted Net Income (Loss) Per
     Common Share                     $0.02      $0.17      $(0.91)     $0.02
    



    LIONS GATE ENTERTAINMENT CORP.

    UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY

    
                                                  Series B    Restric-
                            Common Shares    Preferred Shares   ted   Unearned
                                                               Share  Compen-
                           Number     Amount   Number  Amount  Units  sation
                               (Amounts in thousands, except share amounts)
    Balance at
     March 31, 2006    104,422,765    $328,771     10     $-  $5,178  $(4,032)
    Reclassification of
     unearned
     compensation
     and restricted
     share common units
     upon adoption of
     SFAS No. 123(R)                     1,146                (5,178)   4,032
    Exercise of stock
     options             1,297,144       4,277
    Stock based
     compensation,
     net of share units
     withholding tax
     obligations of $504   113,695       6,517
    Issuance of common
     shares to directors
     for services           25,568         238
    Conversion of 4.875%
     notes, net of
     unamortized issuance
     costs              11,111,108      57,887
    Comprehensive income
     (loss)
      Net income
      Foreign currency
       translation
       adjustments
      Net unrealized gain
       on foreign
       exchange contracts
      Unrealized gain on
       investments --
       available for sale
      Comprehensive income
    Balance at March 31,
     2007              116,970,280     398,836     10      -       -        -
    Exercise of
     stock options         933,855      (2,879)
    Stock based
     compensation, net
     of share units
     withholding tax
     obligations of $980   486,457       9,084
    Issuance of common
     shares to directors
     for services           25,970         277
    Issuance of common
     shares for investment
     in NextPoint, Inc   1,890,189      20,851
    Issuance of common
     shares related to
     the Redbus
     acquisition            94,937         900
    Repurchase of common
     shares, no par value
    Comprehensive loss
      Net loss
      Foreign currency
       translation
       adjustments
      Net unrealized loss
       on foreign
       exchange contracts
      Comprehensive loss
    Balance at December 31,
     2007               120,401,688   $427,069     10     $-      $-       $-
    

    
                                           Accumulated
                                    Compre-  Other
                                    hensive Compre-
                       Accumulated  Income  hensive   Treasury Shares
                          Deficit   (Loss)  Income     Number  Amount   Total
                                            (Loss)
                              (Amounts in thousands, except share amounts)
    

    
    Balance at March 31,
     2006                $(177,130)         $(3,517)       -      $- $149,270
    Reclassification of
     unearned
     compensation and
     restricted share
     common units
     upon adoption of SFAS
     No. 123(R)                                                             -
    Exercise of stock
     options                                                            4,277
    Stock based
     compensation,
     net of share units
     withholding tax
     obligations of $504                                                6,517
    Issuance of common
     shares to directors
     for services                                                         238
    Conversion of 4.875%
     notes, net of
     unamortized issuance
     costs                                                             57,887
    Comprehensive income
     (loss)
      Net income            27,479  $27,479                            27,479
      Foreign currency
       translation
       adjustments                    1,876 1,876                       1,876
      Net unrealized gain
       on foreign
       exchange contracts               259   259                         259
      Unrealized gain on
       investments --
       available for sale                87    87                          87
      Comprehensive income          $29,701                                 -
    Balance at March 31,
     2007                 (149,651)        (1,295)         -       -  247,890
    Exercise of stock
     options                                                           (2,879)
    Stock based
     compensation, net
     of share units
     withholding tax
     obligations of $980                                                9,084
    Issuance of common
     shares to directors
     for services                                                         277
    Issuance of common
     shares for investment
     in NextPoint, Inc                                                 20,851
    Issuance of common
     shares related to
     the Redbus acquisition                                               900
    Repurchase of common
     shares, no par value                         (2,196,899)(20,337) (20,337)
    Comprehensive loss
      Net loss           (107,374)$(107,374)                         (107,374)
      Foreign currency
       translation
       adjustments                    2,322 2,322                       2,322
      Net unrealized loss
       on foreign
       exchange contracts              (218) (218)                       (218)
      Comprehensive loss          $(105,270)
    Balance at December 31,
     2007               $(257,025)           $809 (2,196,899)$(20,337)$150,516
    



    LIONS GATE ENTERTAINMENT CORP.

    UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

    
                                                 Nine Months       Nine Months
                                                   Ended              Ended
                                                 December 31,     December 31,
                                                    2007             2006
                                                   (Amounts in thousands)
    Operating Activities:
    Net income (loss)                            $(107,374)            $2,459
    Adjustments to reconcile net income
     (loss) to net cash  provided by
     (used in) operating activities
      Depreciation of property and
       equipment                                     2,830              1,949
      Amortization of deferred
       financing costs                               2,659              2,915
      Amortization of films and
       television programs                         252,907            142,982
      Amortization of intangible assets                698                702
      Non-cash stock-based compensation             10,207              4,795
      Gain on sale of equity securities             (2,794)               -
      Equity interests loss                          3,242                802
    Changes in operating assets and
     liabilities:
      Restricted cash                              (19,674)            (9,150)
      Accounts receivable, net                     (32,704)            76,829
      Investment in films and
       television programs                        (397,844)          (246,567)
      Other assets                                  (5,882)             5,079
      Accounts payable and accrued
       liabilities                                  41,111            (23,733)
      Unpresented bank drafts                            -            (14,772)
      Participation and residuals                  110,397              1,048
      Film obligations                              50,790             70,134
      Deferred revenue                              39,568             50,233
    Net Cash Flows Provided By (Used
     In) Operating Activities                      (51,863)            65,705
    Investing Activities:
    Purchases of investments - auction
     rate securities                              (207,262)          (575,789)
    Proceeds from the sale of
     investments - auction rate
     securities                                    444,641            536,226
    Purchases of investments - equity
     securities                                     (4,765)                 -
    Proceeds from the sale of
     investments - equity securities                24,035                  -
    Acquisition of Mandate, net of
     unrestricted cash acquired                    (41,205)                 -
    Loan to Mandate - preacquisition                (2,895)                 -
    Acquisition of Maple, net of
     unrestricted cash acquired                      1,737                  -
    Acquisition of Debmar, net of
     unrestricted cash acquired                        -              (24,137)
    Investment in equity method
     investees                                      (6,464)            (5,000)
    Loan to equity method investee                  (3,000)                 -
    Purchases of property and equipment             (2,718)            (7,737)
    Net Cash Flows Provided By (Used
     In) Investing Activities                      202,104            (76,437)
    Financing Activities:
    Exercise of stock options                          864              3,280
    Amounts paid to satisfy tax
     withholding requirements on
     options exercised                              (4,723)               -
    Repurchases of common shares                   (20,337)               -
    Borrowings under financing
     arrangements                                    3,718                -
    Net Cash Flows Provided By (Used
     In) Financing Activities                      (20,478)             3,280
    Net Change In Cash And Cash
     Equivalents                                   129,763             (7,452)
    Foreign Exchange Effects on Cash                 1,394                (53)
    Cash and Cash Equivalents -
     Beginning Of Period                            51,497             46,978
    Cash and Cash Equivalents - End Of
     Period                                       $182,654            $39,473
    



    LIONS GATE ENTERTAINMENT CORP.

    
                   RECONCILIATION OF NET CASH FLOWS USED IN
                    OPERATING ACTIVITIES TO FREE CASH FLOW
    

    
                                         Three Months Ended  Nine Months Ended
                                            December 31,      December 31,
                                            2007    2006      2007     2006
                                                (Amounts in thousands)
    Net Cash Flows Provided By (Used In)
     Operating Activities                  $6,690  $54,923  $(51,863) $65,705
       Purchases of property and equipment   (333)  (4,200)   (2,718)  (7,737)
       Decrease in Unpresented Bank Drafts      -        -         -   14,772
    Free Cash Flow, as defined             $6,357  $50,723  $(54,581) $72,740
    
    Free cash flow is defined as net cash flows provided by or used in
operating activities less purchases of property and equipment and unpresented
bank drafts. Unpresented bank drafts represent checks issued and not yet
presented for payment in excess of the cash balances at custodial banks. The
applicable bank accounts are funded at the time the checks are presented for
payment.
    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 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.




For further information:

For further information: Peter D. Wilkes, +1-310-255-3726, 
pwilkes@lionsgate.com; or Kelli Easterling, +1-310-255-4929, 
keasterling@lionsgate.com, both of Lionsgate Web Site:
http://www.lionsgate.com


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890