SANTA MONICA, Calif.
and VANCOUVER, British
Columbia, May 21, 2020
/PRNewswire/ -- Global content leader Lionsgate (NYSE: LGF.A,
LGF.B) today reported fourth quarter (quarter ended March 31, 2020) revenue of $944 million, operating loss of $12 million and net loss attributable to
Lionsgate shareholders of $45 million
or $0.20 diluted net loss per share
on 219.9 million diluted weighted average common shares
outstanding. Adjusted net income attributable to Lionsgate
shareholders in the quarter was $47
million or adjusted diluted EPS of $0.21, with adjusted OIBDA of $126 million. Fourth quarter cash flow provided
by operating activities was $180
million and adjusted free cash flow was $175 million.
"We reported a strong quarter to end a solid fiscal year despite
the disruption posed by the COVID-19 global pandemic," said
Lionsgate CEO Jon Feltheimer.
"Our Lionsgate family has risen to the challenge of these
unprecedented times with resilience, dedication and
collaboration. Thanks to their efforts, Starz is continuing
to deliver great entertainment to our audiences in the current at
home environment, and we're working closely with all of our content
partners to ensure that when production resumes and theatres
re-open, we will be ready."
Full year fiscal 2020 (fiscal year ended March 31, 2020) revenue was $3.89 billion, operating income was $2.8 million, and net loss attributable to
Lionsgate shareholders was $188
million, or $0.86 diluted net
loss per share on 217.9 million diluted weighted average
common shares outstanding. Adjusted net income attributable
to Lionsgate shareholders was $124.3
million or adjusted diluted EPS of $0.56 and adjusted OIBDA was $462 million for fiscal 2020. Full year
adjusted free cash flow was $349
million.
Driven by robust sales in the at home environment in the
quarter, library revenues for the fiscal year reached a record
$600 million.
The Company reported a charge of $50.5
million in the quarter due to the COVID-19 global pandemic
and related economic disruption. This charge included, among
other things, certain motion picture and television impairments and
development charges associated with changes in performance
expectations and the feasibility of project completions, along with
costs associated with pausing film and television production.
Fourth Quarter Results
Segment Results
Media Networks segment revenue of $358
million was essentially unchanged from the prior year
quarter while segment profit of $26
million was impacted by the continued investment in
STARZPLAY's international expansion. STARZPLAY has launched
in 50 countries and exceeded subscriber targets for the fiscal
year. Domestically, STARZ grew its OTT subscribers to 6.8
million in the quarter.
Motion Picture segment revenue increased by 10% to $393 million compared to the prior year quarter
due to the strong home entertainment performance of Knives
Out and other titles. The only new theatrical release in
the quarter, I Still Believe, was in theatres for only four
days before they closed, but the studio pivoted quickly to
launch the title in an exclusive premium video-on-demand window to
mitigate lost theatrical revenue. Segment profit was
$101 million.
Television Production segment revenue was $258 million and segment profit was $22 million driven in part by strong library
sales.
COVID-19 Impact
The impact of the ongoing COVID-19 global pandemic and
measures to prevent its spread, and the resulting unprecedented
economic uncertainty, are affecting our business in a number of
ways. To date, we have experienced early termination of the
theatrical run of one of our films domestically and one of our
films in the UK, delayed theatrical distribution of several films
domestically and internationally, and delayed production of film
and television content resulting in changes in future release dates
for some titles and series. Our partners have also closed several
location-based entertainment attractions based on our film and
television properties. We may not be able to accurately predict
when theatres re-open, production resumes or if and when certain of
our content will be released. The full extent of the impact of the
COVID-19 global pandemic on our business, operations and financial
results will depend on numerous evolving factors that we may not be
able to accurately predict.
Conversely, television and streaming consumption around the
globe has increased as well as home entertainment demand. STARZ has
experienced an increase in viewership of its content across all
platforms as well as an increase in subscribers to its OTT
services, both domestically and internationally. This increase,
however, may not be indicative of future results and growth may
slow as governmental and other restrictions are relaxed, and as a
result of the current and possible longer term negative economic
impact of the pandemic. In a number of instances, we have also been
able to adapt to these new circumstances by releasing one of our
theatrical films earlier on streaming platforms, completing
post-production of one of our television series remotely and
continuing the development of a number of our television series
utilizing virtual writers' rooms. These changes in the way we
operate may be helpful to partially offset some of the negative
impacts from the pandemic. However, the impact of these
changes and the COVID-19 global pandemic are uncertain and cannot
be predicted.
As a direct result of the COVID-19 global pandemic and the
related economic disruption, including the worldwide closure of
most theatres, international travel restrictions and the pausing of
motion picture and television productions, during the fourth
quarter of fiscal 2020 we have incurred $50.5 million in incremental costs which were
expensed in the period. These costs include $46.0 million reflected in direct operating
expense, which include certain motion picture and television
impairments and development charges associated with changes in
performance expectations or the feasibility of completing the
project, costs associated with the pausing of productions,
including certain cast and crew costs and incremental costs
associated with bad debt reserves. In addition, these costs include
$4.2 million reflected in
distribution and marketing expense, which primarily consists of
early marketing spends for film releases and events that have been
canceled or delayed and will provide no economic benefit, and
$0.3 million in restructuring and
other costs primarily due to transitioning the Company to a
remote-work environment and other incremental costs associated with
the COVID-19 global pandemic during this period. We expect to incur
additional incremental costs in future periods. We are in the
process of seeking insurance recovery for some of these costs,
which cannot be estimated at this time, and therefore have not been
recorded in our consolidated financial statements. These costs,
along with other items, are excluded from segment operating
results, Adjusted OIBDA, Adjusted Net Income Attributable to Lions
Gate Entertainment Corp. Shareholders, and Adjusted EPS (see Use of
Non-GAAP Financial Measures).
Lionsgate senior management will hold its analyst and investor
conference call to discuss its fiscal 2020 fourth quarter and full
year results at 5:00 PM ET/2:00 PM
PT this afternoon, May 21. Interested parties may listen
to the live webcast by visiting the events page on the Lionsgate
corporate website or via
https://services.choruscall.com/links/lgf200521OrPx2lYU.html. A
full replay will become available later this afternoon by clicking
the same link.
ABOUT LIONSGATE
The first major new studio in decades, Lionsgate is a global
content leader whose films, television series, digital products and
linear and over-the-top platforms reach next generation audiences
around the world. Lionsgate film and television properties also
support a global network of location-based entertainment and other
branded attractions as well as a robust video game business.
Lionsgate's content initiatives are backed by a nearly 17,000-title
film and television library and delivered through a global sales
and distribution infrastructure. The Lionsgate brand is synonymous
with original, daring and ground-breaking content created with
special emphasis on the evolving patterns and diverse composition
of the Company's worldwide consumer base.
For further information, investors should contact:
James Marsh
310-255-3651
jmarsh@lionsgate.com
For media inquiries, 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
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, but not limited to: the potential
effects of the COVID-19 global pandemic on the Company, economic
and business conditions; the substantial investment of capital
required to produce and market 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; risks related to acquisition and
integration of acquired businesses; the effects of dispositions of
businesses or assets, including individual films or libraries; the
cost of defending our intellectual property; technological changes
and other trends affecting the entertainment industry; potential
adverse reactions or changes to business or employee relationships;
and the other risk factors as set forth in Lionsgate's Annual
Report on Form 10-K for the fiscal year ended March 31, 2020, to be filed with the Securities
and Exchange Commission. 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.
Additional Information Available on Website
The information in this press release should be read in
conjunction with the financial statements and footnotes contained
in the Company's Annual Report on Form 10-K for the fiscal
year ended March 31, 2020, which will
be posted on the Company's website at
http://investors.lionsgate.com/financial-reports/sec-filings, when
filed with the Securities and Exchange Commission. Trending
schedules containing certain financial information will also be
available on the Company's website.
LIONS GATE
ENTERTAINMENT CORP.
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
March 31,
2020
|
|
March 31,
2019
|
|
(Unaudited,
amounts in millions)
|
ASSETS
|
|
|
|
Cash and cash
equivalents
|
$
|
318.2
|
|
|
$
|
184.3
|
|
Accounts receivable,
net
|
522.0
|
|
|
647.2
|
|
Program
rights
|
310.5
|
|
|
295.7
|
|
Other current
assets
|
157.4
|
|
|
267.2
|
|
Total current
assets
|
1,308.1
|
|
|
1,394.4
|
|
Investment in films
and television programs and program rights, net
|
1,517.3
|
|
|
1,672.0
|
|
Property and
equipment, net
|
140.9
|
|
|
155.3
|
|
Investments
|
40.3
|
|
|
26.2
|
|
Intangible
assets
|
1,719.6
|
|
|
1,871.6
|
|
Goodwill
|
2,833.5
|
|
|
2,833.5
|
|
Other
assets
|
391.5
|
|
|
436.1
|
|
Deferred tax
assets
|
—
|
|
|
19.8
|
|
Total
assets
|
$
|
7,951.2
|
|
|
$
|
8,408.9
|
|
LIABILITIES
|
|
|
|
Accounts payable and
accrued liabilities
|
$
|
526.9
|
|
|
$
|
531.2
|
|
Participations and
residuals
|
441.9
|
|
|
408.5
|
|
Film obligations and
production loans
|
353.7
|
|
|
512.6
|
|
Debt - short term
portion
|
68.6
|
|
|
53.6
|
|
Deferred
revenue
|
116.6
|
|
|
146.5
|
|
Total current
liabilities
|
1,507.7
|
|
|
1,652.4
|
|
Debt
|
2,664.4
|
|
|
2,850.8
|
|
Participations and
residuals
|
421.6
|
|
|
479.8
|
|
Film obligations and
production loans
|
96.9
|
|
|
143.1
|
|
Other
liabilities
|
334.9
|
|
|
114.0
|
|
Deferred
revenue
|
61.3
|
|
|
62.8
|
|
Deferred tax
liabilities
|
36.6
|
|
|
56.5
|
|
Redeemable
noncontrolling interest
|
167.8
|
|
|
127.6
|
|
Commitments and
contingencies
|
|
|
|
EQUITY
|
|
|
|
Class A voting common
shares, no par value, 500.0 shares authorized, 83.0 shares issued
(March 31, 2019 - 82.5 shares issued)
|
659.2
|
|
|
649.7
|
|
Class B non-voting
common shares, no par value, 500.0 shares authorized, 136.4 shares
issued (March 31, 2019 - 133.5 shares issued)
|
2,221.7
|
|
|
2,140.6
|
|
Retained earnings
(accumulated deficit)
|
(16.9)
|
|
|
208.7
|
|
Accumulated other
comprehensive loss
|
(206.0)
|
|
|
(80.3)
|
|
Total Lions Gate
Entertainment Corp. shareholders' equity
|
2,658.0
|
|
|
2,918.7
|
|
Noncontrolling
interests
|
2.0
|
|
|
3.2
|
|
Total
equity
|
2,660.0
|
|
|
2,921.9
|
|
Total liabilities and
equity
|
$
|
7,951.2
|
|
|
$
|
8,408.9
|
|
LIONS GATE
ENTERTAINMENT CORP.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
March
31,
|
|
March
31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
(Unaudited,
amounts in millions, except per share amounts)
|
Revenues
|
$
|
944.3
|
|
|
$
|
913.7
|
|
|
$
|
3,890.0
|
|
|
$
|
3,680.5
|
|
Expenses
|
|
|
|
|
|
|
|
Direct
operating
|
564.1
|
|
|
533.0
|
|
|
2,226.1
|
|
|
2,028.2
|
|
Distribution and
marketing
|
217.0
|
|
|
227.2
|
|
|
1,008.7
|
|
|
835.5
|
|
General and
administration
|
113.1
|
|
|
110.2
|
|
|
430.4
|
|
|
445.4
|
|
Depreciation and
amortization
|
54.6
|
|
|
41.4
|
|
|
197.7
|
|
|
163.4
|
|
Restructuring and
other
|
7.5
|
|
|
35.9
|
|
|
24.3
|
|
|
78.0
|
|
Total
expenses
|
956.3
|
|
|
947.7
|
|
|
3,887.2
|
|
|
3,550.5
|
|
Operating income
(loss)
|
(12.0)
|
|
|
(34.0)
|
|
|
2.8
|
|
|
130.0
|
|
Interest
expense
|
|
|
|
|
|
|
|
Interest
expense
|
(45.5)
|
|
|
(46.7)
|
|
|
(191.3)
|
|
|
(163.6)
|
|
Interest on
dissenting shareholders' liability
|
—
|
|
|
—
|
|
|
—
|
|
|
(35.3)
|
|
Total interest
expense
|
(45.5)
|
|
|
(46.7)
|
|
|
(191.3)
|
|
|
(198.9)
|
|
Shareholder
litigation settlements
|
—
|
|
|
—
|
|
|
—
|
|
|
(114.1)
|
|
Interest and other
income
|
1.8
|
|
|
2.9
|
|
|
8.8
|
|
|
12.0
|
|
Other
expense
|
(1.4)
|
|
|
(2.9)
|
|
|
(11.1)
|
|
|
(4.7)
|
|
Gain (loss) on
extinguishment of debt
|
6.7
|
|
|
(1.9)
|
|
|
5.4
|
|
|
(1.9)
|
|
Loss on
investments
|
(0.2)
|
|
|
(44.4)
|
|
|
(0.5)
|
|
|
(87.6)
|
|
Equity interests
loss
|
(1.5)
|
|
|
(14.0)
|
|
|
(17.2)
|
|
|
(42.9)
|
|
Loss before income
taxes
|
(52.1)
|
|
|
(141.0)
|
|
|
(203.1)
|
|
|
(308.1)
|
|
Income tax benefit
(provision)
|
3.2
|
|
|
(18.1)
|
|
|
(3.3)
|
|
|
8.5
|
|
Net
loss
|
(48.9)
|
|
|
(159.1)
|
|
|
(206.4)
|
|
|
(299.6)
|
|
Less: Net loss
attributable to noncontrolling interests
|
4.0
|
|
|
3.9
|
|
|
18.0
|
|
|
15.4
|
|
Net loss
attributable to Lions Gate Entertainment Corp.
shareholders
|
$
|
(44.9)
|
|
|
$
|
(155.2)
|
|
|
$
|
(188.4)
|
|
|
$
|
(284.2)
|
|
|
|
|
|
|
|
|
|
Per share
information attributable to Lions Gate Entertainment Corp.
shareholders:
|
|
|
|
|
|
|
|
Basic net loss per
common share
|
$
|
(0.20)
|
|
|
$
|
(0.72)
|
|
|
$
|
(0.86)
|
|
|
$
|
(1.33)
|
|
Diluted net loss
per common share
|
$
|
(0.20)
|
|
|
$
|
(0.72)
|
|
|
$
|
(0.86)
|
|
|
$
|
(1.33)
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
219.9
|
|
|
215.4
|
|
|
217.9
|
|
|
213.7
|
|
Diluted
|
219.9
|
|
|
215.4
|
|
|
217.9
|
|
|
213.7
|
|
|
|
|
|
|
|
|
|
Dividends declared
per common share
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.18
|
|
LIONS GATE
ENTERTAINMENT CORP.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
March
31,
|
|
March
31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
(Unaudited,
amounts in millions)
|
Operating
Activities:
|
|
|
|
|
|
|
|
Net loss
|
$
|
(48.9)
|
|
|
$
|
(159.1)
|
|
|
$
|
(206.4)
|
|
|
$
|
(299.6)
|
|
Adjustments to
reconcile net loss to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
54.6
|
|
|
41.4
|
|
|
197.7
|
|
|
163.4
|
|
Amortization of films
and television programs and program rights
|
400.7
|
|
|
411.2
|
|
|
1,706.7
|
|
|
1,516.5
|
|
Interest on
dissenting shareholders' liability
|
—
|
|
|
—
|
|
|
—
|
|
|
(72.0)
|
|
Amortization of debt
financing costs
|
3.7
|
|
|
2.7
|
|
|
14.9
|
|
|
11.6
|
|
Non-cash share-based
compensation
|
9.2
|
|
|
24.3
|
|
|
50.5
|
|
|
68.1
|
|
Other
amortization
|
22.4
|
|
|
8.4
|
|
|
68.5
|
|
|
29.0
|
|
Distributions from
equity method investee
|
—
|
|
|
—
|
|
|
—
|
|
|
1.8
|
|
Loss (gain) on
extinguishment of debt
|
(6.7)
|
|
|
1.9
|
|
|
(5.4)
|
|
|
1.9
|
|
Equity interests
loss
|
1.5
|
|
|
14.0
|
|
|
17.2
|
|
|
42.9
|
|
Loss on
investments
|
0.2
|
|
|
44.4
|
|
|
0.5
|
|
|
87.6
|
|
Deferred income taxes
(benefit)
|
(1.7)
|
|
|
12.7
|
|
|
(0.9)
|
|
|
(23.6)
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
Accounts receivable,
net and other assets
|
126.5
|
|
|
162.4
|
|
|
397.5
|
|
|
470.8
|
|
Investment in films
and television programs and program rights, net
|
(409.2)
|
|
|
(396.4)
|
|
|
(1,545.3)
|
|
|
(1,469.9)
|
|
Accounts payable and
accrued liabilities
|
2.0
|
|
|
107.8
|
|
|
(31.8)
|
|
|
41.0
|
|
Participations and
residuals
|
39.3
|
|
|
(68.7)
|
|
|
(24.5)
|
|
|
(85.8)
|
|
Film
obligations
|
10.5
|
|
|
(1.5)
|
|
|
6.8
|
|
|
(11.8)
|
|
Deferred
revenue
|
(23.8)
|
|
|
(33.7)
|
|
|
(31.4)
|
|
|
(44.4)
|
|
Net Cash Flows
Provided By Operating Activities
|
180.3
|
|
|
171.8
|
|
|
614.6
|
|
|
427.5
|
|
Investing
Activities:
|
|
|
|
|
|
|
|
Proceeds from the
sale of equity method investee, net of transaction costs
|
—
|
|
|
48.0
|
|
|
—
|
|
|
48.0
|
|
Investment in equity
method investees and other
|
(5.8)
|
|
|
(9.0)
|
|
|
(20.6)
|
|
|
(48.6)
|
|
Business
acquisitions, net of cash acquired
|
—
|
|
|
—
|
|
|
—
|
|
|
(77.3)
|
|
Capital
expenditures
|
(7.1)
|
|
|
(14.9)
|
|
|
(31.1)
|
|
|
(43.8)
|
|
Net Cash Flows
Provided By (Used In) Investing Activities
|
(12.9)
|
|
|
24.1
|
|
|
(51.7)
|
|
|
(121.7)
|
|
Financing
Activities:
|
|
|
|
|
|
|
|
Debt -
borrowings
|
255.0
|
|
|
631.7
|
|
|
852.1
|
|
|
3,541.2
|
|
Debt - repurchases
and repayments
|
(294.8)
|
|
|
(743.8)
|
|
|
(1,033.4)
|
|
|
(3,212.7)
|
|
Production loans -
borrowings
|
4.9
|
|
|
91.2
|
|
|
59.0
|
|
|
338.1
|
|
Production loans -
repayments
|
(2.9)
|
|
|
(97.3)
|
|
|
(293.8)
|
|
|
(305.4)
|
|
Payment of dissenter
liability accrued at acquisition
|
—
|
|
|
—
|
|
|
—
|
|
|
(797.3)
|
|
Repurchase of common
shares
|
(2.6)
|
|
|
—
|
|
|
(2.6)
|
|
|
—
|
|
Dividends
paid
|
—
|
|
|
—
|
|
|
—
|
|
|
(57.4)
|
|
Distributions to
noncontrolling interest
|
(1.2)
|
|
|
(1.3)
|
|
|
(5.7)
|
|
|
(3.7)
|
|
Exercise of stock
options
|
1.2
|
|
|
3.8
|
|
|
1.7
|
|
|
8.0
|
|
Tax withholding
required on equity awards
|
(0.3)
|
|
|
(3.3)
|
|
|
(3.4)
|
|
|
(10.1)
|
|
Net Cash Flows
Used In Financing Activities
|
(40.7)
|
|
|
(119.0)
|
|
|
(426.1)
|
|
|
(499.3)
|
|
Net Change In Cash
and Cash Equivalents
|
126.7
|
|
|
76.9
|
|
|
136.8
|
|
|
(193.5)
|
|
Foreign Exchange
Effects on Cash and Cash Equivalents
|
(4.0)
|
|
|
1.2
|
|
|
(2.9)
|
|
|
(0.3)
|
|
Cash and Cash
Equivalents - Beginning Of Period
|
195.5
|
|
|
106.2
|
|
|
184.3
|
|
|
378.1
|
|
Cash and Cash
Equivalents - End Of Period
|
$
|
318.2
|
|
|
$
|
184.3
|
|
|
$
|
318.2
|
|
|
$
|
184.3
|
|
LIONS GATE ENTERTAINMENT CORP.
SEGMENT INFORMATION
The Company's reportable segments have been determined based on
the distinct nature of their operations, the Company's internal
management structure, and the financial information that is
evaluated regularly by the Company's chief operating decision
maker.
The Company has three reportable business segments: (1) Motion
Picture, (2) Television Production and (3) Media Networks.
Motion Picture. Motion Picture consists of the
development and production of feature films, acquisition of North
American and worldwide distribution rights, North American
theatrical, home entertainment and television distribution of
feature films produced and acquired, and worldwide licensing of
distribution rights to feature films produced and acquired.
Television Production. Television Production consists of
the development, production and worldwide distribution of
television productions including television series, television
movies and mini-series, and non-fiction programming. Television
Production includes the licensing of Starz original series
productions to Starz Networks and STARZPLAY International, and the
ancillary market distribution of Starz original productions and
licensed product. Additionally, the results of operations of 3 Arts
Entertainment is included in the Television Production segment from
the acquisition date of May 29,
2018.
Media Networks. Media Networks consists of the following
product lines (i) Starz Networks, which includes the domestic
licensing of premium subscription video programming to
Distributors, and on a direct-to-consumer basis (ii) STARZPLAY
International, which represents revenues primarily from the OTT
distribution of the Company's STARZ branded premium subscription
video services internationally and (iii) Other Streaming Services,
which represents primarily our majority owned premium Spanish
language streaming services business, Pantaya.
In the ordinary course of business, the Company's reportable
segments enter into transactions with one another. The most common
types of intersegment transactions include licensing motion
pictures or television programming (including Starz original
productions) from the Motion Picture and Television Production
segments to the Media Networks segment. While intersegment
transactions are treated like third-party transactions to determine
segment performance, the revenues (and corresponding expenses,
assets, or liabilities recognized by the segment that is the
counterparty to the transaction) are eliminated in consolidation
and, therefore, do not affect consolidated results.
LIONS GATE ENTERTAINMENT CORP.
SEGMENT INFORMATION (Continued)
Segment information is presented in the table below:
|
Three Months
Ended
|
|
Year
Ended
|
|
March
31,
|
|
March
31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
(Unaudited,
amounts in millions)
|
Segment
revenues
|
|
|
|
|
|
|
|
Motion
Picture
|
$
|
393.3
|
|
|
$
|
357.6
|
|
|
$
|
1,670.9
|
|
|
$
|
1,464.4
|
|
Television
Production
|
258.1
|
|
|
272.8
|
|
|
1,001.3
|
|
|
920.9
|
|
Media
Networks
|
358.0
|
|
|
362.0
|
|
|
1,486.8
|
|
|
1,461.0
|
|
Intersegment
eliminations
|
(65.1)
|
|
|
(78.7)
|
|
|
(269.0)
|
|
|
(165.8)
|
|
|
$
|
944.3
|
|
|
$
|
913.7
|
|
|
$
|
3,890.0
|
|
|
$
|
3,680.5
|
|
Gross
contribution
|
|
|
|
|
|
|
|
Motion
Picture
|
$
|
129.9
|
|
|
$
|
47.9
|
|
|
$
|
313.5
|
|
|
$
|
234.1
|
|
Television
Production
|
31.9
|
|
|
30.2
|
|
|
90.7
|
|
|
109.6
|
|
Media
Networks
|
50.4
|
|
|
115.3
|
|
|
380.5
|
|
|
534.0
|
|
Intersegment
eliminations
|
4.2
|
|
|
(2.9)
|
|
|
6.8
|
|
|
(6.3)
|
|
|
$
|
216.4
|
|
|
$
|
190.5
|
|
|
$
|
791.5
|
|
|
$
|
871.4
|
|
Segment general
and administration
|
|
|
|
|
|
|
|
Motion
Picture
|
$
|
28.7
|
|
|
$
|
27.0
|
|
|
$
|
104.8
|
|
|
$
|
105.6
|
|
Television
Production
|
10.4
|
|
|
10.7
|
|
|
37.3
|
|
|
43.5
|
|
Media
Networks
|
24.9
|
|
|
24.4
|
|
|
87.5
|
|
|
97.7
|
|
|
$
|
64.0
|
|
|
$
|
62.1
|
|
|
$
|
229.6
|
|
|
$
|
246.8
|
|
Segment
profit
|
|
|
|
|
|
|
|
Motion
Picture
|
$
|
101.2
|
|
|
$
|
20.9
|
|
|
$
|
208.7
|
|
|
$
|
128.5
|
|
Television
Production
|
21.5
|
|
|
19.5
|
|
|
53.4
|
|
|
66.1
|
|
Media
Networks
|
25.5
|
|
|
90.9
|
|
|
293.0
|
|
|
436.3
|
|
Intersegment
eliminations
|
4.2
|
|
|
(2.9)
|
|
|
6.8
|
|
|
(6.3)
|
|
Total segment
profit
|
$
|
152.4
|
|
|
$
|
128.4
|
|
|
$
|
561.9
|
|
|
$
|
624.6
|
|
Corporate general and
administrative expenses
|
(26.6)
|
|
|
(25.1)
|
|
|
(99.7)
|
|
|
(104.2)
|
|
Adjusted
OIBDA(1)
|
$
|
125.8
|
|
|
$
|
103.3
|
|
|
$
|
462.2
|
|
|
$
|
520.4
|
|
_______________
|
(1)
|
See "Use of Non-GAAP
Financial Measures" for the definition of Adjusted OIBDA and
reconciliation to the most directly comparable GAAP financial
measure.
|
The Company's primary measure of segment performance is segment
profit. Segment profit is defined as gross contribution (revenues,
less direct operating and distribution and marketing expense) less
segment general and administration expenses. Segment profit
excludes corporate general and administrative expense,
restructuring and other costs, share-based compensation, certain
programming and content charges as a result of changes in
management and associated programming and content strategy, and,
when applicable, certain cost related to the COVID-19 global
pandemic and purchase accounting and related adjustments. The
Company believes the presentation of segment profit is relevant and
useful for investors because it allows investors to view segment
performance in a manner similar to the primary method used by the
Company's management and enables them to understand the fundamental
performance of the Company's businesses. Media Networks gross
contribution and segment profit for the fiscal year ended
March 31, 2020 includes a benefit of
$39.7 million in direct operating
expenses associated with the modification of a content licensing
arrangement, net of amortization for related changes in content
availability and air dates.
LIONS GATE ENTERTAINMENT CORP.
SEGMENT INFORMATION (Continued)
The following table sets forth segment information by product
line for the Media Networks segment for the three months and fiscal
years ended March 31, 2020 and 2019:
|
Three Months
Ended
|
|
Year
Ended
|
|
March
31,
|
|
March
31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
(Unaudited,
amounts in millions)
|
Media Networks
revenue:
|
|
|
|
|
|
|
|
Starz
Networks
|
$
|
337.7
|
|
|
$
|
354.8
|
|
|
$
|
1,430.1
|
|
|
$
|
1,440.9
|
|
STARZPLAY
International
|
9.3
|
|
|
1.2
|
|
|
22.9
|
|
|
2.1
|
|
Other Streaming
Services
|
11.0
|
|
|
6.0
|
|
|
33.8
|
|
|
18.0
|
|
|
$
|
358.0
|
|
|
$
|
362.0
|
|
|
$
|
1,486.8
|
|
|
$
|
1,461.0
|
|
Media Networks
gross contribution:
|
|
|
|
|
|
|
|
Starz
Networks
|
$
|
85.8
|
|
|
$
|
129.4
|
|
|
$
|
528.9
|
|
|
$
|
574.1
|
|
STARZPLAY
International
|
(36.6)
|
|
|
(13.4)
|
|
|
(139.6)
|
|
|
(33.2)
|
|
Other Streaming
Services
|
1.2
|
|
|
(0.7)
|
|
|
(8.8)
|
|
|
(6.9)
|
|
|
$
|
50.4
|
|
|
$
|
115.3
|
|
|
$
|
380.5
|
|
|
$
|
534.0
|
|
Media Networks
general and administration:
|
|
|
|
|
|
|
|
Starz
Networks
|
$
|
18.5
|
|
|
$
|
20.8
|
|
|
$
|
66.1
|
|
|
$
|
86.1
|
|
STARZPLAY
International
|
4.4
|
|
|
2.5
|
|
|
15.0
|
|
|
7.2
|
|
Other Streaming
Services
|
2.0
|
|
|
1.1
|
|
|
6.4
|
|
|
4.4
|
|
|
$
|
24.9
|
|
|
$
|
24.4
|
|
|
$
|
87.5
|
|
|
$
|
97.7
|
|
Media Networks
segment profit:
|
|
|
|
|
|
|
|
Starz
Networks
|
$
|
67.3
|
|
|
$
|
108.6
|
|
|
$
|
462.8
|
|
|
$
|
488.0
|
|
STARZPLAY
International
|
(41.0)
|
|
|
(15.9)
|
|
|
(154.6)
|
|
|
(40.4)
|
|
Other Streaming
Services
|
(0.8)
|
|
|
(1.8)
|
|
|
(15.2)
|
|
|
(11.3)
|
|
|
$
|
25.5
|
|
|
$
|
90.9
|
|
|
$
|
293.0
|
|
|
$
|
436.3
|
|
LIONS GATE ENTERTAINMENT CORP.
SUPPLEMENTAL INFORMATION
Interest Rate Swaps
On May 15, 2020, the Company
entered into certain transactions which effectively extended the
maturity date on an aggregate of $1.05
billion of interest rate swaps by an additional 2 to 5
years, subject to Mandatory Early Termination Dates of March 23, 2025. This resulted in a decrease of
the weighted average fixed pay rate from 2.87028% to 2.39293% per
annum representing an annual cash interest savings of approximately
$8.1 million compared to the prior
swaps.
LIONS GATE ENTERTAINMENT CORP.
USE OF NON-GAAP FINANCIAL MEASURES
This earnings release presents the following important
financial measures utilized by Lions Gate Entertainment Corp. (the
"Company," "we," "us" or "our") that are not all financial measures
defined by generally accepted accounting principles ("GAAP"). The
Company uses non-GAAP financial measures, among other measures, to
evaluate the operating performance of our business. These non-GAAP
financial measures are in addition to, not a substitute for, or
superior to, measures of financial performance prepared in
accordance with United States GAAP.
Adjusted OIBDA: Adjusted OIBDA is defined as operating
income (loss) before adjusted depreciation and amortization
("OIBDA"), adjusted for adjusted share-based compensation
("adjusted SBC"), purchase accounting and related adjustments,
restructuring and other costs, certain cost related to the COVID-19
global pandemic, and certain programming and content charges as a
result of management changes and associated changes in
strategy.
- Adjusted depreciation and amortization represents depreciation
and amortization as presented on our consolidated statement of
operations, less the depreciation and amortization related to the
amortization of purchase accounting and related adjustments
associated with recent acquisitions. Accordingly, the full impact
of the purchase accounting is included in the adjustment for
"purchase accounting and related adjustments", described
below.
- Adjusted share-based compensation represents share-based
compensation excluding the impact of the acceleration of certain
vesting schedules for equity awards pursuant to certain severance
arrangements, which are included in restructuring and other
expenses, when applicable.
- Restructuring and other includes restructuring and severance
costs, certain transaction and related costs, and certain unusual
items, when applicable.
- COVID-19 related costs include certain motion picture and
television impairments and development charges associated with
changes in performance expectations or the feasibility of
completing the project, and costs associated with the pausing of
productions, including certain cast and crew costs and incremental
costs associated with bad debt reserves, which are included in
direct operating expense, when applicable. In addition, the costs
include early marketing spends for film releases and events that
have been canceled or delayed and will provide no economic benefit,
which are included in distribution and marketing expense, when
applicable.
- Programming and content charges include charges resulting from
the implementation of changes to the Company's programming strategy
and broadcasting strategy in connection with recent management
changes, which are included in direct operating expenses, when
applicable.
- Purchase accounting and related adjustments primarily represent
the amortization of non-cash fair value adjustments to certain
assets acquired in recent acquisitions. These adjustments include
the accretion of the noncontrolling interest discount related to
Pilgrim Media Group and 3 Arts Entertainment, the amortization of
the recoupable portion of the purchase price and the expense
associated with the earned distributions related to 3 Arts
Entertainment, all of which are accounted for as compensation and
are included in general and administrative expense.
Adjusted OIBDA is calculated similar to how the Company defines
segment profit and manages and evaluates its segment operations.
Segment profit also excludes corporate general and administrative
expense.
Adjusted Free Cash Flow: Free cash flow is typically
defined as net cash flows provided by (used in) operating
activities, less capital expenditures. The Company defines Adjusted
Free Cash Flow as net cash flows provided by (used in) operating
activities, less capital expenditures, plus or minus the net
increase or decrease in production loans, plus shareholder
litigation settlement charges and interest paid. 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 and television programs associated with production loans
prior to the time the Company actually pays for the film or
television program. The Company believes that it is more meaningful
to reflect the impact of the payment for these films and television
programs in its Adjusted Free Cash Flow when the payments are
actually made. The adjustment for shareholder litigation settlement
and interest charges paid is to exclude the non-recurring, one-time
payment included in cash flows from operating activities that is
associated with litigation matters arising from the Starz
merger.
Adjusted Net Income (Loss) Attributable to Lions Gate
Entertainment Corp. Shareholders: Adjusted net income (loss)
attributable to Lions Gate Entertainment Corp. shareholders is
defined as net income (loss) attributable to Lions Gate
Entertainment Corp. shareholders, adjusted for share-based
compensation, purchase accounting and related adjustments,
restructuring and other items, net gains or losses on investments,
gain or loss on extinguishment of debt, certain programming and
content charges, and COVID-19 related costs as described in the
Adjusted OIBDA definition, net of the tax effect of the adjustments
at the applicable blended statutory rate and net of the impact of
the adjustments on non-controlling interest and certain changes in
our deferred tax valuation allowance.
Adjusted Basic and Diluted EPS: Adjusted basic earnings
(loss) per share is defined as adjusted net income (loss)
attributable to Lions Gate Entertainment Corp. shareholders divided
by the weighted average shares outstanding. Diluted EPS is similar
to basic EPS but is adjusted for the effects of securities that are
diluted based on the level of adjusted net income (loss), similar
to GAAP.
LIONS GATE ENTERTAINMENT CORP.
USE
OF NON-GAAP FINANCIAL MEASURES (Continued)
These measures are non-GAAP financial measures as defined in
Regulation G promulgated by the SEC and are in addition to, not a
substitute for, or superior to, measures of financial performance
prepared in accordance with United States GAAP.
We use these non-GAAP measures, among other measures, to
evaluate the operating performance of our business. We believe
these measures provide useful information to investors regarding
our results of operations and cash flows before non-operating
items. Adjusted OIBDA is considered an important measure of the
Company's performance because this measure eliminates amounts that,
in management's opinion, do not necessarily reflect the fundamental
performance of the Company's businesses, are infrequent in
occurrence, and in some cases are non-cash expenses. Adjusted Free
Cash Flow is considered an important measure of the Company's
liquidity because it provides information about the ability of the
Company to reduce net corporate debt, make strategic investments,
dividends and share repurchases. Adjusted Net Income (Loss)
Attributable to Lions Gate Entertainment Corp. Shareholders and
Adjusted EPS are considered important measures of the Company's
business operations as, similar to Adjusted OIBDA, these measures
eliminate amounts that, in management's opinion, do not necessarily
reflect the fundamental performance of the Company's
businesses.
These non-GAAP measures are commonly used in the entertainment
industry and by financial analysts and others who follow the
industry to measure operating performance. However, not all
companies calculate these measures in the same manner and the
measures as presented may not be comparable to similarly titled
measures presented by other companies due to differences in the
methods of calculation and excluded items.
A general limitation of these non-GAAP financial measures is
that they are not prepared in accordance with U.S. generally
accepted accounting principles. These measures should be reviewed
in conjunction with the relevant GAAP financial measures and are
not presented as alternative measures of operating income, cash
flow, net income (loss), or earnings (loss) per share as determined
in accordance with GAAP. Reconciliations of the adjusted metrics
utilized to their corresponding GAAP metrics are provided
below.
LIONS GATE ENTERTAINMENT
CORP.
RECONCILIATION OF OPERATING INCOME
(LOSS)
TO ADJUSTED OIBDA
The following table reconciles the GAAP measure, operating
income (loss) to the non-GAAP measure, Adjusted OIBDA:
|
Three Months
Ended
|
|
Year
Ended
|
|
March
31,
|
|
March
31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
(Unaudited,
amounts in millions)
|
Operating income
(loss)
|
$
|
(12.0)
|
|
|
$
|
(34.0)
|
|
|
$
|
2.8
|
|
|
$
|
130.0
|
|
Adjusted depreciation
and amortization(1)
|
10.3
|
|
|
10.7
|
|
|
41.8
|
|
|
41.1
|
|
Restructuring and
other(2)
|
7.5
|
|
|
35.9
|
|
|
24.3
|
|
|
78.0
|
|
COVID-19 related
costs(3)
|
50.2
|
|
|
—
|
|
|
50.2
|
|
|
—
|
|
Programming and
content charges(4)
|
2.5
|
|
|
35.1
|
|
|
76.5
|
|
|
35.1
|
|
Adjusted share-based
compensation expense(5)
|
9.0
|
|
|
10.8
|
|
|
50.0
|
|
|
52.1
|
|
Purchase accounting
and related adjustments(6)
|
58.3
|
|
|
44.8
|
|
|
216.6
|
|
|
184.1
|
|
Adjusted
OIBDA
|
$
|
125.8
|
|
|
$
|
103.3
|
|
|
$
|
462.2
|
|
|
$
|
520.4
|
|
___________________
|
(1)
|
Adjusted depreciation
and amortization represents depreciation and amortization as
presented on our consolidated statements of operations less the
depreciation and amortization related to the non-cash fair value
adjustments to property and equipment and intangible assets
acquired in recent acquisitions which are included in the purchase
accounting and related adjustments line item above, as shown in the
table below:
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
March
31,
|
|
March
31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
(Unaudited,
amounts in millions)
|
Depreciation and
amortization
|
$
|
54.6
|
|
|
$
|
41.4
|
|
|
$
|
197.7
|
|
|
$
|
163.4
|
|
Less: Amount included
in purchase accounting and related adjustments
|
(44.3)
|
|
|
(30.7)
|
|
|
(155.9)
|
|
|
(122.3)
|
|
Adjusted depreciation
and amortization
|
$
|
10.3
|
|
|
$
|
10.7
|
|
|
$
|
41.8
|
|
|
$
|
41.1
|
|
|
|
(2)
|
Restructuring and
other includes restructuring and severance costs, certain
transaction and related costs, and certain unusual items, when
applicable, as shown in the table below:
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
March
31,
|
|
March
31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
(Unaudited,
amounts in millions)
|
Restructuring and
other:
|
|
|
|
|
|
|
|
Severance(a)
|
|
|
|
|
|
|
|
Cash
|
$
|
4.6
|
|
|
$
|
14.5
|
|
|
$
|
12.3
|
|
|
$
|
31.5
|
|
Accelerated vesting
on equity awards
|
0.3
|
|
|
13.5
|
|
|
0.6
|
|
|
16.0
|
|
Total severance
costs
|
4.9
|
|
|
28.0
|
|
|
12.9
|
|
|
47.5
|
|
COVID-19 related
costs included in restructuring and other(b)
|
0.3
|
|
|
—
|
|
|
0.3
|
|
|
—
|
|
Transaction and
related costs(c)
|
2.3
|
|
|
7.9
|
|
|
11.1
|
|
|
30.5
|
|
|
$
|
7.5
|
|
|
$
|
35.9
|
|
|
$
|
24.3
|
|
|
$
|
78.0
|
|
|
_______________________
|
|
(a)
|
Severance costs in
the three months and fiscal years ended March 31, 2020 and
2019 were primarily related to restructuring activities in
connection with recent acquisitions, and other cost-saving
initiatives.
|
|
(b)
|
During the three
months and fiscal year ended March 31, 2020, the Company has
incurred certain costs including costs primarily related to
transitioning the Company to a remote-work environment and other
incremental costs associated with the COVID-19 global
pandemic.
|
|
(c)
|
Transaction and
related costs in the three months and fiscal years ended
March 31, 2020 and 2019 reflect transaction, integration and
legal costs associated with certain strategic transactions,
restructuring activities and legal matters. In the three months and
fiscal year ended March 31, 2019, these costs were primarily
related to the legal fees associated with the Starz class action
lawsuits and other matters, and to a lesser extent, costs related
to the acquisition of 3 Arts Entertainment and other strategic
transactions.
|
(3)
|
As a direct result of
the COVID-19 global pandemic, during the fourth quarter of fiscal
2020 we have incurred $50.2 million in incremental direct operating
and distribution and marketing expense. These charges are also
excluded from segment operating results. These costs include
certain motion picture and television impairments and development
charges associated with changes in performance expectations or the
feasibility of completing the project, and costs associated with
the pausing of productions, including certain cast and crew costs
and incremental costs associated with bad debt reserves, amounting
to $46.0 million in aggregate, which are included in direct
operating expense. In addition, the costs include early marketing
spends for film releases and events that have been canceled or
delayed and will provide no economic benefit amounting to $4.2
million, which are included in distribution and marketing expense.
We expect to incur additional incremental costs in future periods.
We are in the process of seeking insurance recovery for some of
these costs, which cannot be estimated at this time, and therefore
have not been recorded in our consolidated financial
statements.
|
(4)
|
In the fiscal years
ended March 31, 2020 and 2019, in connection with recent management
changes, the Company implemented changes to its programming
strategy and broadcasting strategy including programming acquired
or produced under prior management. As a result, the Company
recorded certain programming and content charges of $76.5 million
and $35.1 million in fiscal 2020 and 2019, respectively, which are
included in direct operating expense in the consolidated statement
of operations.
|
(5)
|
The following table
reconciles total share-based compensation expense to adjusted
share-based compensation expense:
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
March
31,
|
|
March
31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
(Unaudited,
amounts in millions)
|
Total share-based
compensation expense
|
$
|
9.3
|
|
|
$
|
24.3
|
|
|
$
|
50.6
|
|
|
$
|
68.1
|
|
Less: Amount included
in restructuring and other(a)
|
(0.3)
|
|
|
(13.5)
|
|
|
(0.6)
|
|
|
(16.0)
|
|
Adjusted share-based
compensation
|
$
|
9.0
|
|
|
$
|
10.8
|
|
|
$
|
50.0
|
|
|
$
|
52.1
|
|
|
|
|
|
(a)
|
Represents
share-based compensation expense included in restructuring and
other expenses reflecting the impact of the acceleration of certain
vesting schedules for equity awards pursuant to certain severance
arrangements.
|
(6)
|
Purchase accounting
and related adjustments primarily represent the amortization of
non-cash fair value adjustments to certain assets acquired in
recent acquisitions. These adjustments include the accretion of the
noncontrolling interest discount related to Pilgrim Media Group and
3 Arts Entertainment, the amortization of the recoupable portion of
the purchase price and the expense associated with the earned
distributions related to 3 Arts Entertainment, all of which are
accounted for as compensation and are included in general and
administrative expense. The following sets forth the amounts
included in each line item in the financial statements:
|
|
Three Months
Ended
|
|
Year
Ended
|
|
March
31,
|
|
March
31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
(Unaudited,
amounts in millions)
|
Purchase accounting
and related adjustments:
|
|
|
|
|
|
|
|
Direct
operating
|
$
|
0.5
|
|
|
$
|
1.5
|
|
|
$
|
8.1
|
|
|
$
|
18.0
|
|
General and
administrative expense
|
13.5
|
|
|
12.6
|
|
|
52.6
|
|
|
43.8
|
|
Depreciation and
amortization
|
44.3
|
|
|
30.7
|
|
|
155.9
|
|
|
122.3
|
|
|
$
|
58.3
|
|
|
$
|
44.8
|
|
|
$
|
216.6
|
|
|
$
|
184.1
|
|
LIONS GATE
ENTERTAINMENT CORP.
|
RECONCILIATION OF
NET LOSS ATTRIBUTABLE TO LIONS GATE ENTERTAINMENT CORP.
SHAREHOLDERS TO ADJUSTED NET INCOME ATTRIBUTABLE TO LIONS GATE
ENTERTAINMENT CORP. SHAREHOLDERS, AND BASIC AND DILUTED EPS TO
ADJUSTED BASIC AND DILUTED EPS
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
March
31,
|
|
March
31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
(Unaudited,
amounts in millions, except per share amounts)
|
Reported Net Loss
Attributable to Lions Gate Entertainment Corp.
Shareholders
|
$
|
(44.9)
|
|
|
$
|
(155.2)
|
|
|
$
|
(188.4)
|
|
|
$
|
(284.2)
|
|
Adjusted share-based
compensation expense
|
9.0
|
|
|
10.8
|
|
|
50.0
|
|
|
52.1
|
|
Restructuring and
other
|
7.5
|
|
|
35.9
|
|
|
24.3
|
|
|
78.0
|
|
COVID-19 related
costs
|
50.2
|
|
|
—
|
|
|
50.2
|
|
|
—
|
|
Programming and
content charges
|
2.5
|
|
|
35.1
|
|
|
76.5
|
|
|
35.1
|
|
Purchase accounting
and related adjustments(1)
|
58.2
|
|
|
44.0
|
|
|
215.9
|
|
|
182.2
|
|
Shareholder
litigation settlements(2)
|
—
|
|
|
—
|
|
|
—
|
|
|
114.1
|
|
Loss (gain) on
extinguishment of debt
|
(6.7)
|
|
|
1.9
|
|
|
(5.4)
|
|
|
1.9
|
|
Loss on
investments
|
0.2
|
|
|
44.4
|
|
|
0.5
|
|
|
87.6
|
|
Tax impact of above
items(3)
|
(27.5)
|
|
|
(39.5)
|
|
|
(90.8)
|
|
|
(102.6)
|
|
Deferred tax
valuation allowance(4)
|
5.5
|
|
|
53.7
|
|
|
21.4
|
|
|
53.7
|
|
Noncontrolling
interest impact of above items
|
(7.1)
|
|
|
(6.8)
|
|
|
(29.9)
|
|
|
(26.6)
|
|
Adjusted Net
Income Attributable to Lions Gate Entertainment Corp.
Shareholders
|
$
|
46.9
|
|
|
$
|
24.3
|
|
|
$
|
124.3
|
|
|
$
|
191.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported Basic
EPS
|
$
|
(0.20)
|
|
|
$
|
(0.72)
|
|
|
$
|
(0.86)
|
|
|
$
|
(1.33)
|
|
Impact of adjustments
on basic earnings per share
|
0.41
|
|
|
0.83
|
|
|
1.43
|
|
|
2.22
|
|
Adjusted Basic
EPS
|
$
|
0.21
|
|
|
$
|
0.11
|
|
|
$
|
0.57
|
|
|
$
|
0.89
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported Diluted
EPS
|
$
|
(0.20)
|
|
|
$
|
(0.72)
|
|
|
$
|
(0.86)
|
|
|
$
|
(1.33)
|
|
Impact of adjustments
on diluted earnings per share
|
0.41
|
|
|
0.83
|
|
|
1.42
|
|
|
2.20
|
|
Adjusted Diluted
EPS
|
$
|
0.21
|
|
|
$
|
0.11
|
|
|
$
|
0.56
|
|
|
$
|
0.87
|
|
|
|
|
|
|
|
|
|
Adjusted weighted
average number of common shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
219.9
|
|
|
215.4
|
|
|
217.9
|
|
|
213.7
|
|
Diluted
|
220.4
|
|
|
220.1
|
|
|
220.2
|
|
|
220.9
|
|
_________________________
|
(1)
|
Represents the
amounts included in Adjusted OIBDA net of interest income on the
amortization of non-cash fair value adjustments to finance lease
obligations acquired in the acquisition of Starz.
|
(2)
|
Shareholder
litigation settlements of $114.1 million in the fiscal year ended
March 31, 2019 was related to previous shareholder litigation
in connection with the Starz merger.
|
(3)
|
Represents the tax
impact of the adjustments to net income attributable to Lions Gate
Entertainment Corp. shareholders, calculated using the blended
statutory tax rate applicable to each adjustment.
|
(4)
|
In the three months
and fiscal year ended March 31, 2020 and 2019, represents a charge
from a net increase in the valuation allowance for certain of the
Company's deferred tax assets.
|
LIONS GATE
ENTERTAINMENT CORP.
|
RECONCILIATION OF
NET CASH FLOWS PROVIDED BY OPERATING ACTIVITIES
|
TO ADJUSTED FREE
CASH FLOW
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
March
31,
|
|
March
31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
(Unaudited,
amounts in millions)
|
Net Cash Flows
Provided By Operating Activities(1)
|
$
|
180.3
|
|
|
$
|
171.8
|
|
|
$
|
614.6
|
|
|
$
|
427.5
|
|
Capital
expenditures
|
(7.1)
|
|
|
(14.9)
|
|
|
(31.1)
|
|
|
(43.8)
|
|
Net borrowings under
and (repayment) of production loans
|
2.0
|
|
|
(6.1)
|
|
|
(234.8)
|
|
|
32.7
|
|
Shareholder
litigation settlement charges and interest
|
—
|
|
|
—
|
|
|
—
|
|
|
221.3
|
|
Adjusted Free Cash
Flow
|
$
|
175.2
|
|
|
$
|
150.8
|
|
|
$
|
348.7
|
|
|
$
|
637.7
|
|
|
|
|
|
|
|
|
|
________________
|
(1)
|
Cash flows provided
by operating activities for the three months and fiscal year ended
March 31, 2020 includes a net benefit (use of cash) of
approximately ($27.9) million and $253.0 million, respectively,
from the monetization of trade accounts receivable programs (three
months and fiscal year ended March 31, 2019 - net benefit of
approximately $218.6 million and $347.0 million).
|
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SOURCE Lionsgate