SANTA MONICA, Calif. and VANCOUVER, British Columbia, May 21, 2015 /PRNewswire/ -- Lionsgate (NYSE:
LGF), a premier next generation global content leader, today
reported revenue of $2.40 billion,
adjusted EBITDA of $384.9 million,
adjusted net income of $257.5 million
or $1.85 adjusted basic net income
per share and net income of $181.8
million or $1.31 basic net
income per share for fiscal 2015 (fiscal year ended March 31, 2015).
Free cash flow in fiscal 2015 was $261.6
million, marking the third straight year in which the
Company delivered over $250 million
in free cash flow.
Strong domestic and international television performance, a film
slate including The Hunger Games: Mockingjay -- Part
1, Insurgent and John
Wick, increased earnings from the Company's investment
in the EPIX channel, reduced interest expense and lower theatrical
marketing costs all drove the Company's profitability in the fiscal
year.
"We're pleased to report very strong financial results in fiscal
2015, bolstered by a stellar performance from our television
business, complemented by a great year on the strategic front as
well," said Lionsgate Chief Executive Officer Jon Feltheimer. "With the launch of new
strategic initiatives ranging from location-based entertainment and
OTT platforms to video games and virtual reality, exciting new
partnerships in China, a robust
portfolio of current and future film franchises and the strongest
balance sheet in the Company's history, we're very well positioned
to capitalize on opportunities throughout our global
environment."
Adjusted EBITDA of $384.9 million
in the fiscal year compared to adjusted EBITDA of $370.8 million in the prior year.
Adjusted net income of $257.5
million or $1.85 adjusted
basic net income per share in the fiscal year increased 18% from
adjusted net income of $217.9 million
or $1.58 adjusted basic net income
per share in the prior year.
Net income of $181.8 million or
$1.31 basic net income per share on
139.0 million weighted average number of common shares outstanding
increased 20% from $152.0 million or
$1.11 basic net income per share on
137.5 million weighted average number of common shares outstanding
in the prior year.
Free cash flow of $261.6 million
in the fiscal year increased from $258.3
million in the prior year.
Revenue of $2.40 billion in the
fiscal year declined 9% from $2.63
billion in the prior year due primarily to smaller
theatrical and home entertainment slates of wide theatrical
releases which offset gains in television production revenue.
Lionsgate had 10 wide release theatrical films in the fiscal year
compared to 13 wide release theatrical films in the prior
year. The Company anticipates 14 wide release theatrical
films in fiscal 2016.
The Company will pay its quarterly dividend of $0.07 per common share tomorrow, May 22, to shareholders of record as of
March 31, 2015.
Lionsgate's filmed entertainment backlog, or already contracted
future revenue not yet recorded, was $1.1
billion at March 31, 2015.
Overall Motion Picture segment revenue in the fiscal year was
$1.82 billion, a decline of 17%
compared to the prior year. Within the Motion Picture
segment, theatrical revenue in the fiscal year was $354.0 million compared to $524.7 million in the prior year due to the
smaller slate of wide release films noted above.
Lionsgate's home entertainment revenue in the fiscal year
was $707.5 million compared to
$863.9 million in the prior year as
the smaller slate of wide theatrical releases offset home
entertainment gains from television production.
Television revenue included in the Motion Picture segment
in the fiscal year was $270.2
million, an increase of 20% compared to $225.3 million in the prior year as a strong
slate of theatrical wide releases reaching their pay television
windows included The Hunger Games: Catching Fire,
Divergent, Red 2 and Ender's Game and compared
favorably to the prior year slate.
International Motion Picture segment revenue in the fiscal
year was $495.0 million compared to
$543.4 million in the prior
year. Within international revenue, Lionsgate UK revenue
increased 8% to $158.5 million on a
diversified mix of Lionsgate, third-party and in-house produced
Lionsgate U.K. releases.
Revenue for the Television Production segment rose to a record
$579.5 million in the fiscal year, an
increase of 30% from $447.4 million
in the prior year reflecting strong gains in all categories --
domestic television licensing and syndication, international
television revenue and home entertainment revenue from television
production.
A record 238 episodes and 168 hours of domestic television
series were delivered in the fiscal year, including episodes of
Anger Management, Orange is the New Black,
Nashville, Mad Men,
Manhattan, The Royals and
Nurse Jackie. The fiscal year also benefitted from
significant domestic television revenue from the talk and game
shows The Wendy Williams Show and Family Feud.
Record international television revenue included licensing of
Anger Management, Orange is the New Black,
Nashville and Mad
Men.
In the quarter ended March 31,
2015, the Company reported revenue of $646.1 million compared to $721.9 million in the prior year quarter, and
adjusted EBITDA of $90.4 million
compared to $92.0 million in the
prior year quarter. Adjusted basic net income of $57.8 million or $0.41 adjusted basic net income per share in the
quarter compared to $63.5 million or
$0.46 adjusted basic net income per
share in the prior year quarter, and net income of $19.6 million or $0.14 basic net income per share in the quarter
compared to $49.2 million or
$0.35 basic net income per share in
the prior year quarter.
Free cash flow in the quarter of $157.2
million increased 161% from the $60.3
million in free cash flow in the prior year quarter.
During the quarter, the Company continued to strengthen its
balance sheet by locking in favorable long-term fixed interest
rates for its term loan, reducing borrowing to zero under its
$800 million revolving credit
facility and more than doubling free cash flow from the prior-year
quarter.
Lionsgate senior management will hold its analyst and investor
conference call to discuss its fiscal 2015 financial results at
9:00 A.M. ET/6:00 A.M. PT tomorrow, Friday, May 22.
Interested parties may participate live in the conference call by
calling 1-800-230-1092 (612-234-9960 outside the U.S. and
Canada). A full digital
replay will be available from Friday morning, May 22, through Friday,
May 29, by dialing 1-800-475-6701 (320-365-3844 outside the
U.S. and Canada) and using access
code 359323.
ABOUT LIONSGATE
Lionsgate is a premier next generation global content leader
with a strong and diversified presence in motion picture production
and distribution, television programming and syndication, home
entertainment, digital distribution, new channel platforms, video
games and international distribution and sales. Lionsgate currently
has more than 30 television shows on over 20 different networks
spanning its primetime production, distribution and syndication
businesses, including such critically-acclaimed hits as the
multiple Emmy Award-winning Mad Men and Nurse Jackie,
the broadcast network series Nashville, the syndication success The
Wendy Williams Show, the critically-acclaimed hit series
Orange is the New Black and the breakout series The
Royals.
Its feature film business has been fueled by such recent
successes as the blockbuster first three installments of The
Hunger Games franchise, the first two installments of the
Divergent franchise, Age of Adaline, CBS/Lionsgate's
The DUFF, John Wick,
Now You See Me, Roadside Attractions' A Most Wanted
Man, Lionsgate/Codeblack Films' Addicted and Pantelion
Films' Instructions Not Included, the highest-grossing
Spanish-language film ever released in the U.S.
Lionsgate's home entertainment business is an industry leader in
box office-to-DVD and box office-to-VOD revenue conversion rates.
Lionsgate handles a prestigious and prolific library of
approximately 16,000 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 and Summit brands remain synonymous with original,
daring, quality entertainment in markets around the world.
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
performance of future fiscal years. Such statements are
subject to a number of risks and uncertainties. Actual results in
the future could differ materially and adversely from those
described in the forward-looking statements as a result of various
important factors, including the substantial investment of capital
required to produce and market films and television series,
increased costs for producing and marketing feature films and
television series, budget overruns, limitations imposed by our
credit facility and notes, unpredictability of the commercial
success of our motion pictures and television programming, the cost
of defending our intellectual property, difficulties in integrating
acquired businesses, risks related to our acquisition strategy and
integration of acquired businesses, the effects of disposition of
businesses or assets, technological changes and other trends
affecting the entertainment industry, and the risk factors as set
forth in Lionsgate's Annual Report on Form 10-K, filed with the
Securities and Exchange Commission (the "SEC") on May 21, 2015, which risk factors are incorporated
herein by reference. The Company undertakes no obligation to
publicly release the result of any revisions to these
forward-looking statements that may be made to reflect any future
events or circumstances.
LIONS GATE
ENTERTAINMENT CORP.
|
CONSOLIDATED
BALANCE SHEETS
|
|
March
31,
2015
|
|
March
31,
2014
|
|
(Amounts in
thousands,
except share
amounts)
|
ASSETS
|
|
|
|
Cash and cash
equivalents
|
$
|
102,697
|
|
|
$
|
25,692
|
|
Restricted
cash
|
2,508
|
|
|
8,925
|
|
Accounts receivable,
net of reserves for returns and allowances of $64,362 (March 31,
2014 - $106,680) and provision for doubtful accounts of $4,120
(March 31, 2014 - $4,876)
|
891,880
|
|
|
885,571
|
|
Investment in films
and television programs, net
|
1,381,829
|
|
|
1,274,573
|
|
Property and
equipment, net
|
26,651
|
|
|
14,552
|
|
Investments
|
438,298
|
|
|
181,941
|
|
Goodwill
|
323,328
|
|
|
323,328
|
|
Other
assets
|
74,784
|
|
|
71,067
|
|
Deferred tax
assets
|
50,114
|
|
|
65,983
|
|
Total
assets
|
$
|
3,292,089
|
|
|
$
|
2,851,632
|
|
LIABILITIES
|
|
|
|
Senior revolving
credit facility
|
$
|
—
|
|
|
$
|
97,619
|
|
5.25% Senior
Notes
|
225,000
|
|
|
225,000
|
|
Term Loans
|
375,000
|
|
|
222,753
|
|
Accounts payable and
accrued liabilities
|
332,473
|
|
|
332,457
|
|
Participations and
residuals
|
471,661
|
|
|
469,390
|
|
Film obligations and
production loans
|
656,755
|
|
|
499,787
|
|
Convertible senior
subordinated notes
|
114,126
|
|
|
131,788
|
|
Deferred
revenue
|
274,787
|
|
|
288,300
|
|
Total
liabilities
|
2,449,802
|
|
|
2,267,094
|
|
Commitments and
contingencies
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
Common shares, no par
value, 500,000,000 shares authorized, 145,532,978 shares issued
(March 31, 2014 - 141,007,461 shares)
|
830,786
|
|
|
743,788
|
|
Retained earnings
(accumulated deficit)
|
13,720
|
|
|
(157,875)
|
|
Accumulated other
comprehensive loss
|
(2,219)
|
|
|
(1,375)
|
|
Total shareholders'
equity
|
842,287
|
|
|
584,538
|
|
Total liabilities and
shareholders' equity
|
$
|
3,292,089
|
|
|
$
|
2,851,632
|
|
LIONS GATE
ENTERTAINMENT CORP.
|
ANNUAL
CONSOLIDATED STATEMENTS OF INCOME
|
|
|
Year Ended March
31,
|
|
2015
|
|
2014
|
|
2013
|
|
(Amounts in
thousands, except per share amounts)
|
Revenues
|
$
|
2,399,640
|
|
|
$
|
2,630,254
|
|
|
$
|
2,708,141
|
|
Expenses:
|
|
|
|
|
|
Direct
operating
|
1,315,775
|
|
|
1,369,381
|
|
|
1,390,569
|
|
Distribution and
marketing
|
591,491
|
|
|
739,461
|
|
|
817,862
|
|
General and
administration
|
263,507
|
|
|
254,925
|
|
|
218,341
|
|
Depreciation and
amortization
|
6,586
|
|
|
6,539
|
|
|
8,290
|
|
Total
expenses
|
2,177,359
|
|
|
2,370,306
|
|
|
2,435,062
|
|
Operating
income
|
222,281
|
|
|
259,948
|
|
|
273,079
|
|
Other expenses
(income):
|
|
|
|
|
|
Interest
expense
|
|
|
|
|
|
Cash
interest
|
39,657
|
|
|
48,960
|
|
|
75,322
|
|
Amortization of debt
discount and deferred financing costs
|
12,819
|
|
|
17,210
|
|
|
18,258
|
|
Total interest
expense
|
52,476
|
|
|
66,170
|
|
|
93,580
|
|
Interest and other
income
|
(2,790)
|
|
|
(6,030)
|
|
|
(4,036)
|
|
Loss on
extinguishment of debt
|
11,664
|
|
|
39,572
|
|
|
24,089
|
|
Total other expenses,
net
|
61,350
|
|
|
99,712
|
|
|
113,633
|
|
Income before
equity interests and income taxes
|
160,931
|
|
|
160,236
|
|
|
159,446
|
|
Equity interests
income (loss)
|
52,477
|
|
|
24,724
|
|
|
(3,075)
|
|
Income before
income taxes
|
213,408
|
|
|
184,960
|
|
|
156,371
|
|
Income tax provision
(benefit)
|
31,627
|
|
|
32,923
|
|
|
(75,756)
|
|
Net
income
|
$
|
181,781
|
|
|
$
|
152,037
|
|
|
$
|
232,127
|
|
|
|
|
|
|
|
Basic net income
per common share
|
$
|
1.31
|
|
|
$
|
1.11
|
|
|
$
|
1.73
|
|
Diluted net income
per common share
|
$
|
1.23
|
|
|
$
|
1.04
|
|
|
$
|
1.61
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
|
|
Basic
|
139,048
|
|
|
137,468
|
|
|
134,514
|
|
Diluted
|
151,778
|
|
|
154,415
|
|
|
149,370
|
|
|
|
|
|
|
|
Dividends declared
per common share
|
$
|
0.26
|
|
|
$
|
0.10
|
|
|
$
|
—
|
|
LIONS GATE
ENTERTAINMENT CORP.
|
FOURTH QUARTER
CONSOLIDATED STATEMENTS OF INCOME
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2015
|
|
2014
|
|
(Amounts in
thousands,
except per share
amounts)
|
Revenues
|
$
|
646,082
|
|
|
$
|
721,858
|
|
Expenses:
|
|
|
|
Direct
operating
|
369,935
|
|
|
403,625
|
|
Distribution and
marketing
|
169,854
|
|
|
188,964
|
|
General and
administration
|
76,532
|
|
|
68,805
|
|
Depreciation and
amortization
|
1,901
|
|
|
1,773
|
|
Total
expenses
|
618,222
|
|
|
663,167
|
|
Operating
income
|
27,860
|
|
|
58,691
|
|
Other expenses
(income):
|
|
|
|
Interest
expense
|
|
|
|
Cash
interest
|
10,111
|
|
|
9,278
|
|
Amortization of debt
discount and deferred financing costs
|
2,771
|
|
|
4,332
|
|
Total interest
expense
|
12,882
|
|
|
13,610
|
|
Interest and other
income
|
(602)
|
|
|
(1,280)
|
|
Loss on
extinguishment of debt
|
10,388
|
|
|
2,919
|
|
Total other expenses,
net
|
22,668
|
|
|
15,249
|
|
Income before
equity interests and income taxes
|
5,192
|
|
|
43,442
|
|
Equity interests
income
|
15,124
|
|
|
11,566
|
|
Income before
income taxes
|
20,316
|
|
|
55,008
|
|
Income tax
provision
|
762
|
|
|
5,856
|
|
Net
income
|
$
|
19,554
|
|
|
$
|
49,152
|
|
|
|
|
|
Basic net income
per common share
|
$
|
0.14
|
|
|
$
|
0.35
|
|
Diluted net income
per common share
|
$
|
0.14
|
|
|
$
|
0.33
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
Basic
|
140,364
|
|
|
138,599
|
|
Diluted
|
145,649
|
|
|
155,081
|
|
|
|
|
|
Dividends declared
per common share
|
$
|
0.07
|
|
|
$
|
0.05
|
|
LIONS GATE
ENTERTAINMENT CORP.
|
ANNUAL
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
Year Ended March
31,
|
|
2015
|
|
2014
|
|
2013
|
Operating
Activities:
|
(Amounts in
thousands)
|
Net income
|
$
|
181,781
|
|
|
$
|
152,037
|
|
|
$
|
232,127
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
Depreciation and
amortization
|
6,586
|
|
|
6,539
|
|
|
8,290
|
|
Amortization of films
and television programs
|
899,951
|
|
|
921,289
|
|
|
966,027
|
|
Amortization of debt
discount and deferred financing costs
|
12,819
|
|
|
17,210
|
|
|
18,258
|
|
Non-cash share-based
compensation
|
79,938
|
|
|
60,492
|
|
|
35,838
|
|
Distribution from
equity method investee
|
7,788
|
|
|
16,079
|
|
|
—
|
|
Loss on
extinguishment of debt
|
11,664
|
|
|
39,572
|
|
|
24,089
|
|
Equity interests
(income) loss
|
(52,477)
|
|
|
(24,724)
|
|
|
3,075
|
|
Deferred income taxes
(benefit)
|
13,934
|
|
|
15,913
|
|
|
(87,899)
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
Restricted
cash
|
6,417
|
|
|
1,775
|
|
|
1,241
|
|
Accounts receivable,
net
|
(13,968)
|
|
|
(93,503)
|
|
|
(4,948)
|
|
Investment in films
and television programs
|
(1,012,294)
|
|
|
(948,082)
|
|
|
(890,276)
|
|
Other
assets
|
(5,331)
|
|
|
(3,768)
|
|
|
(2,682)
|
|
Accounts payable and
accrued liabilities
|
(5,086)
|
|
|
17,628
|
|
|
(50,154)
|
|
Participations and
residuals
|
2,704
|
|
|
59,207
|
|
|
(6,875)
|
|
Film
obligations
|
(24,977)
|
|
|
(19,187)
|
|
|
1,920
|
|
Deferred
revenue
|
(12,940)
|
|
|
34,035
|
|
|
28,088
|
|
Net Cash Flows
Provided By Operating Activities
|
96,509
|
|
|
252,512
|
|
|
276,119
|
|
Investing
Activities:
|
|
|
|
|
|
Proceeds from the
sale of equity method investees
|
14,575
|
|
|
9,000
|
|
|
—
|
|
Investment in equity
method investees
|
(22,730)
|
|
|
(17,250)
|
|
|
(1,530)
|
|
Distributions from
equity method investee in excess of earnings
|
—
|
|
|
4,169
|
|
|
—
|
|
Purchases of other
investments
|
(30,000)
|
|
|
—
|
|
|
(2,022)
|
|
Proceeds from the
sale of other investments
|
—
|
|
|
—
|
|
|
6,354
|
|
Repayment of loans
receivable
|
—
|
|
|
4,275
|
|
|
4,274
|
|
Purchases of property
and equipment
|
(17,013)
|
|
|
(8,799)
|
|
|
(2,581)
|
|
Net Cash Flows
Provided By (Used In) Investing Activities
|
(55,168)
|
|
|
(8,605)
|
|
|
4,495
|
|
Financing
Activities:
|
|
|
|
|
|
Senior revolving
credit facility - borrowings, net of deferred financing costs of
$15,804 for the year ended March 31, 2013
|
778,500
|
|
|
872,220
|
|
|
1,144,620
|
|
Senior revolving
credit facility - repayments
|
(876,119)
|
|
|
(1,113,075)
|
|
|
(921,700)
|
|
Term Loans and 5.25%
Senior Notes - borrowings, net of deferred financing costs of
$4,315 and $6,860 for the years ended March 31, 2015 and 2014,
respectively
|
370,685
|
|
|
440,640
|
|
|
—
|
|
Term Loans -
repayments
|
(229,500)
|
|
|
—
|
|
|
(484,664)
|
|
10.25% Senior Notes -
repurchases and redemptions in the year ended March 31, 2014 and
consent fee in the year ended March 31, 2013
|
—
|
|
|
(470,584)
|
|
|
(3,270)
|
|
Convertible senior
subordinated notes - borrowings
|
—
|
|
|
60,000
|
|
|
—
|
|
Convertible senior
subordinated notes - repurchases
|
(16)
|
|
|
—
|
|
|
(7,639)
|
|
Production loans -
borrowings
|
631,709
|
|
|
532,416
|
|
|
378,510
|
|
Production loans -
repayments
|
(449,648)
|
|
|
(517,874)
|
|
|
(371,069)
|
|
Pennsylvania Regional
Center credit facility - repayments
|
—
|
|
|
(65,000)
|
|
|
(500)
|
|
Repurchase of common
shares
|
(144,840)
|
|
|
—
|
|
|
—
|
|
Dividends
paid
|
(33,353)
|
|
|
(6,900)
|
|
|
—
|
|
Exercise of stock
options
|
6,839
|
|
|
11,972
|
|
|
2,897
|
|
Tax withholding
required on equity awards
|
(20,062)
|
|
|
(23,077)
|
|
|
(15,995)
|
|
Other financing
obligations - repayments
|
—
|
|
|
—
|
|
|
(3,710)
|
|
Net Cash Flows
Provided By (Used In) Financing Activities
|
34,195
|
|
|
(279,262)
|
|
|
(282,520)
|
|
Net Change In Cash
And Cash Equivalents
|
75,536
|
|
|
(35,355)
|
|
|
(1,906)
|
|
Foreign Exchange
Effects on Cash
|
1,469
|
|
|
(1,316)
|
|
|
(29)
|
|
Cash and Cash
Equivalents - Beginning Of Period
|
25,692
|
|
|
62,363
|
|
|
64,298
|
|
Cash and Cash
Equivalents - End Of Period
|
$
|
102,697
|
|
|
$
|
25,692
|
|
|
$
|
62,363
|
|
LIONS GATE
ENTERTAINMENT CORP.
|
FOURTH QUARTER
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2015
|
|
2014
|
Operating
Activities:
|
(Amounts in
thousands)
|
Net income
|
$
|
19,554
|
|
|
$
|
49,152
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
1,901
|
|
|
1,773
|
|
Amortization of films
and television programs
|
260,479
|
|
|
284,471
|
|
Amortization of debt
discount and deferred financing costs
|
2,771
|
|
|
4,332
|
|
Non-cash share-based
compensation
|
31,247
|
|
|
19,448
|
|
Distribution from
equity method investee
|
—
|
|
|
6,230
|
|
Loss on
extinguishment of debt
|
10,388
|
|
|
2,919
|
|
Equity interests
income
|
(15,124)
|
|
|
(11,566)
|
|
Deferred income
taxes
|
2,691
|
|
|
2,641
|
|
Changes in operating
assets and liabilities:
|
|
|
|
Restricted
cash
|
5,000
|
|
|
31,529
|
|
Accounts receivable,
net
|
80,835
|
|
|
(47,127)
|
|
Investment in films
and television programs
|
(196,825)
|
|
|
(255,139)
|
|
Other
assets
|
(3,915)
|
|
|
(2,072)
|
|
Accounts payable and
accrued liabilities
|
47,614
|
|
|
13,423
|
|
Participations and
residuals
|
8,774
|
|
|
20,971
|
|
Film
obligations
|
8,976
|
|
|
(30,395)
|
|
Deferred
revenue
|
(4,816)
|
|
|
16,088
|
|
Net Cash Flows
Provided By Operating Activities
|
259,550
|
|
|
106,678
|
|
Investing
Activities:
|
|
|
|
Investment in equity
method investees
|
(7,980)
|
|
|
—
|
|
Purchases of other
investments
|
(28,000)
|
|
|
—
|
|
Purchases of property
and equipment
|
(5,720)
|
|
|
(2,683)
|
|
Net Cash Flows
Used In Investing Activities
|
(41,700)
|
|
|
(2,683)
|
|
Financing
Activities:
|
|
|
|
Senior revolving
credit facility - borrowings
|
97,000
|
|
|
90,001
|
|
Senior revolving
credit facility - repayments
|
(257,500)
|
|
|
(186,501)
|
|
Term Loans and 5.25%
Senior Notes - borrowings, net of deferred financing costs of
$4,315
|
370,685
|
|
|
—
|
|
Term Loans -
repayments
|
(229,500)
|
|
|
—
|
|
Production loans -
borrowings
|
97,928
|
|
|
172,834
|
|
Production loans -
repayments
|
(187,780)
|
|
|
(216,489)
|
|
Repurchase of common
shares
|
(14,981)
|
|
|
—
|
|
Dividends
paid
|
(9,817)
|
|
|
(6,900)
|
|
Excess tax benefits
on equity-based compensation awards
|
(6,767)
|
|
|
—
|
|
Exercise of stock
options
|
2,435
|
|
|
1,103
|
|
Tax withholding
required on equity awards
|
(5,123)
|
|
|
(8,701)
|
|
Net Cash Flows
Used In Financing Activities
|
(143,420)
|
|
|
(154,653)
|
|
Net Change In Cash
And Cash Equivalents
|
74,430
|
|
|
(50,658)
|
|
Foreign Exchange
Effects on Cash
|
(619)
|
|
|
948
|
|
Cash and Cash
Equivalents - Beginning Of Period
|
28,886
|
|
|
75,402
|
|
Cash and Cash
Equivalents - End Of Period
|
$
|
102,697
|
|
|
$
|
25,692
|
|
LIONS GATE
ENTERTAINMENT CORP.
|
RECONCILIATION OF
ANNUAL NET INCOME TO EBITDA AND ADJUSTED EBITDA
|
|
|
Year Ended March
31,
|
|
2015(1)
|
|
2014
|
|
2013
|
|
(Amounts in
thousands)
|
Net
income
|
$
|
181,781
|
|
|
$
|
152,037
|
|
|
$
|
232,127
|
|
Depreciation and
amortization
|
6,586
|
|
|
6,539
|
|
|
8,290
|
|
Cash
interest
|
39,657
|
|
|
48,960
|
|
|
75,322
|
|
Noncash interest
expense
|
12,819
|
|
|
17,210
|
|
|
18,258
|
|
Interest and other
income
|
(2,790)
|
|
|
(6,030)
|
|
|
(4,036)
|
|
Income tax provision
(benefit)
|
31,627
|
|
|
32,923
|
|
|
(75,756)
|
|
EBITDA
|
$
|
269,680
|
|
|
$
|
251,639
|
|
|
$
|
254,205
|
|
|
|
|
|
|
|
Stock-based
compensation(2)
|
80,310
|
|
|
72,119
|
|
|
47,665
|
|
Restructuring and
other items(3)
|
10,725
|
|
|
7,500
|
|
|
2,575
|
|
Loss on
extinguishment of debt
|
11,664
|
|
|
39,572
|
|
|
24,089
|
|
Backstopped prints
and advertising expense
|
12,509
|
|
|
—
|
|
|
1,155
|
|
Adjusted
EBITDA(1)
|
$
|
384,888
|
|
|
$
|
370,830
|
|
|
$
|
329,689
|
|
|
|
|
|
|
|
_______________________________
(1)
|
The definition of
Adjusted EBITDA now includes the gains or losses from the sale of
equity method investments. Accordingly, Adjusted EBITDA for
the fiscal year ended March 31, 2015 has been revised to include
the $11.4 million gain on the sale of the Company's interest in
FEARnet which occurred in the first quarter ended June 30,
2014. This change is consistent with the Company's increasing
investment activity and practice of including equity interest
income and losses from equity method investments in Adjusted
EBITDA. Prior to the sale of FEARnet, the Company recognized
cumulative equity interest losses before income taxes of
approximately $11.7 million from its interest in
FEARnet.
|
(2)
|
The years ended March
31, 2015, 2014 and 2013 include cash settled SARs expense of $1.9
million, $10.9 million, and $12.0 million, respectively.
|
(3)
|
Restructuring and
other items includes certain unusual items, such as severance and
restructuring charges, certain transaction related costs, and the
settlement of an administrative order, when applicable.
Amounts in the year ended March 31, 2015 primarily represent
severance costs associated with the integration of the marketing
operations of the Company's Lionsgate and Summit film labels and
costs related to the move of our international sales and
distribution organization to the United Kingdom amounting to an
aggregate of $9.1 million. Approximately $1.2 million of these
costs are non-cash charges resulting from the acceleration of
vesting of stock awards. In addition, the remaining amount for the
year ended March 31, 2015 includes transaction costs related to the
registration and offering of common shares by a shareholder, for
which the Company received no proceeds, pursuant to a preexisting
registration rights agreement dated October 22, 2009, and costs
related to the previously disclosed Starz Exchange transaction.
Amounts in the year ended March 31, 2014 represent the settlement
of an administrative order. Amounts in the year ended March 31,
2013 represent severance and transaction costs related to the
acquisition of Summit Entertainment.
|
LIONS GATE
ENTERTAINMENT CORP.
|
RECONCILIATION OF
FOURTH QUARTER NET INCOME TO
|
EBITDA AND
ADJUSTED EBITDA
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2015
|
|
2014
|
|
(Amounts in
thousands)
|
Net
income
|
$
|
19,554
|
|
|
$
|
49,152
|
|
Depreciation and
amortization
|
1,901
|
|
|
1,773
|
|
Cash
interest
|
10,111
|
|
|
9,278
|
|
Noncash interest
expense
|
2,771
|
|
|
4,332
|
|
Interest and other
income
|
(602)
|
|
|
(1,280)
|
|
Income tax
provision
|
762
|
|
|
5,856
|
|
EBITDA
|
$
|
34,497
|
|
|
$
|
69,111
|
|
|
|
|
|
Stock-based
compensation(1)
|
31,435
|
|
|
19,920
|
|
Restructuring and
other items(2)
|
3,717
|
|
|
—
|
|
Loss on
extinguishment of debt
|
10,388
|
|
|
2,919
|
|
Backstopped prints
and advertising expense
|
10,409
|
|
|
—
|
|
Adjusted
EBITDA
|
$
|
90,446
|
|
|
$
|
91,950
|
|
|
|
|
|
________________________________
(1)
|
The three months
ended March 31, 2015 and 2014 include cash settled SARs expense of
$0.3 million and $0.5 million, respectively.
|
(2)
|
Restructuring and
other items includes certain unusual items, such as severance and
restructuring charges, certain transaction related costs, and the
settlement of an administrative order, when applicable.
Amounts in the three months ended March 31, 2015 primarily
represent costs related to the move of our international sales and
distribution organization to the United Kingdom amounting to an
aggregate of $2.0 million. In addition, the three months ended
March 31, 2015 includes transaction costs related to the
registration and offering of common shares by a shareholder, for
which the Company received no proceeds, pursuant to a preexisting
registration rights agreement dated October 22, 2009, and costs
related to the previously disclosed Starz Exchange
transaction.
|
EBITDA is defined as earnings before interest, income tax
provision or benefit, and depreciation and amortization. EBITDA is
a non-GAAP financial measure.
Adjusted EBITDA represents EBITDA as defined above adjusted for
stock-based compensation, restructuring and other items, loss on
extinguishment of debt, and backstopped prints and advertising
expense. Stock-based compensation represents compensation expenses
associated with stock options, restricted share units and cash and
equity settled stock appreciation rights ("SARs"). Restructuring
and other items includes certain unusual items, such as severance
and restructuring charges, certain transaction related costs, and
the settlement of an administrative order (in fiscal 2014), when
applicable. Backstopped prints and advertising expense ("P&A")
represents the amount of theatrical marketing expense for third
party titles that the Company funded and expensed for which a third
party provides a first dollar loss guarantee (subject to a cap)
that such expense will be recouped from the performance of the film
(which results in minimal risk of loss to the Company). The amount
represents the P&A expense incurred net of the impact of
expensing the P&A cost over the revenue streams similar to a
participation expense (i.e. the P&A under these arrangements
are being expensed similar to a participation cost for purposes of
the adjusted measure). Adjusted EBITDA is a non-GAAP financial
measure.
We believe EBITDA and Adjusted EBITDA to be meaningful
indicators of our performance that provide useful information to
investors regarding our financial condition and results of
operations. EBITDA and Adjusted EBITDA are non-GAAP financial
measures commonly used in the entertainment industry and by
financial analysts and others who follow the industry to measure
operating performance. While we consider EBITDA and Adjusted EBITDA
to be important measures of comparative operating performance, they
should be considered in addition to, but not as a substitute for,
net income and other measures of financial performance reported in
accordance with GAAP. EBITDA and Adjusted EBITDA do not reflect
cash available to fund cash requirements. Not all companies
calculate EBITDA or Adjusted EBITDA in the same manner and the
measures, as presented, may not be comparable to similarly-titled
measures presented by other companies.
LIONS GATE
ENTERTAINMENT CORP.
|
RECONCILIATION OF
ANNUAL FREE CASH FLOW
|
TO NET CASH FLOWS
PROVIDED BY OPERATING ACTIVITIES
|
|
|
Year Ended March
31,
|
|
2015
|
|
2014
|
|
2013
|
|
(Amounts in
thousands)
|
Net Cash Flows
Provided By Operating Activities
|
$
|
96,509
|
|
|
$
|
252,512
|
|
|
$
|
276,119
|
|
Purchases of property
and equipment
|
(17,013)
|
|
|
(8,799)
|
|
|
(2,581)
|
|
Net borrowings under
and (repayment) of production loans
|
182,061
|
|
|
14,542
|
|
|
6,941
|
|
Free Cash Flow, as
defined
|
$
|
261,557
|
|
|
$
|
258,255
|
|
|
$
|
280,479
|
|
|
|
|
|
|
|
LIONS GATE
ENTERTAINMENT CORP.
|
RECONCILIATION OF
FOURTH QUARTER FREE CASH FLOW
|
TO NET CASH FLOWS
PROVIDED BY OPERATING ACTIVITIES
|
|
Three Months
Ended
|
|
March
31,
|
|
2015
|
|
2014
|
|
(Amounts in
thousands)
|
Net Cash Flows
Provided By Operating Activities
|
$
|
259,550
|
|
|
$
|
106,678
|
|
Purchases of property
and equipment
|
(5,720)
|
|
|
(2,683)
|
|
Net borrowings under
and (repayment) of production loans
|
(89,852)
|
|
|
(43,655)
|
|
Excess tax benefits
on equity-based compensation awards
|
(6,767)
|
|
|
—
|
|
Free Cash Flow, as
defined
|
$
|
157,211
|
|
|
$
|
60,340
|
|
|
|
|
|
Free cash flow is defined as net cash flows provided by
operating activities, less purchases of property and equipment,
plus or minus the net increase or decrease in production loans,
plus or minus excess tax benefits on equity-based compensation
awards. 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 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 GAAP.
We believe 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 and television programs) within our
GAAP based statement of cash flows, before taking into account cash
movements that are non-operational. Free cash flow is a non-GAAP
financial measure commonly used in the entertainment industry and
by financial analysts and others who follow the industry. Not all
companies calculate free cash flow in the same manner and the
measure as presented may not be comparable to similarly titled
measures presented by other companies.
LIONS GATE
ENTERTAINMENT CORP.
|
RECONCILIATION OF
ANNUAL EBITDA TO FREE CASH FLOW
|
|
|
Year Ended March
31,
|
|
2015
|
|
2014
|
|
2013
|
|
(Amounts in
thousands)
|
EBITDA
|
$
|
269,680
|
|
|
$
|
251,639
|
|
|
$
|
254,205
|
|
|
|
|
|
|
|
Plus: Amortization of
film and television programs
|
899,951
|
|
|
921,289
|
|
|
966,027
|
|
Less: Cash paid for
film and television programs(1)
|
(855,210)
|
|
|
(952,727)
|
|
|
(881,415)
|
|
Amortization of (cash
paid for) film and television programs in excess of cash paid
(amortization)
|
44,741
|
|
|
(31,438)
|
|
|
84,612
|
|
|
|
|
|
|
|
Plus: Non-cash
stock-based compensation
|
79,938
|
|
|
60,492
|
|
|
35,838
|
|
Plus: Distributions
from equity method investee
|
7,788
|
|
|
16,079
|
|
|
—
|
|
Less: Equity
interests (income) loss
|
(52,477)
|
|
|
(24,724)
|
|
|
3,075
|
|
Plus: Loss on
extinguishment of debt
|
11,664
|
|
|
39,572
|
|
|
24,089
|
|
|
|
|
|
|
|
EBITDA adjusted
for items above
|
361,334
|
|
|
311,620
|
|
|
401,819
|
|
|
|
|
|
|
|
Changes in other
operating assets and liabilities:
|
|
|
|
|
|
Restricted
cash
|
6,417
|
|
|
1,775
|
|
|
1,241
|
|
Accounts receivable,
net
|
(13,968)
|
|
|
(93,503)
|
|
|
(4,948)
|
|
Other
assets
|
(5,331)
|
|
|
(3,768)
|
|
|
(2,682)
|
|
Accounts payable and
accrued liabilities
|
(5,086)
|
|
|
17,628
|
|
|
(50,154)
|
|
Participations and
residuals
|
2,704
|
|
|
59,207
|
|
|
(6,875)
|
|
Deferred
revenue
|
(12,940)
|
|
|
34,035
|
|
|
28,088
|
|
|
(28,204)
|
|
|
15,374
|
|
|
(35,330)
|
|
|
|
|
|
|
|
Purchases of property
and equipment
|
(17,013)
|
|
|
(8,799)
|
|
|
(2,581)
|
|
Interest, taxes and
other(2)
|
(54,560)
|
|
|
(59,940)
|
|
|
(83,429)
|
|
|
|
|
|
|
|
Free Cash Flow, as
defined
|
$
|
261,557
|
|
|
$
|
258,255
|
|
|
$
|
280,479
|
|
_________________________
|
|
|
|
|
|
(1) Cash paid for
film and television programs is calculated using the following
amounts as presented in our consolidated statement of cash
flows:
|
Change in investment
in film and television programs
|
$
|
(1,012,294)
|
|
|
$
|
(948,082)
|
|
|
$
|
(890,276)
|
|
Change in film
obligations
|
(24,977)
|
|
|
(19,187)
|
|
|
1,920
|
|
Production loans -
borrowings
|
631,709
|
|
|
532,416
|
|
|
378,510
|
|
Production loans -
repayments
|
(449,648)
|
|
|
(517,874)
|
|
|
(371,569)
|
|
Total cash paid for
film and television programs
|
$
|
(855,210)
|
|
|
$
|
(952,727)
|
|
|
$
|
(881,415)
|
|
_________________________
|
|
|
|
|
|
(2) Interest, taxes
and other consists of the following:
|
|
|
|
|
|
Cash
interest
|
$
|
(39,657)
|
|
|
$
|
(48,960)
|
|
|
$
|
(75,322)
|
|
Interest and other
income
|
2,790
|
|
|
6,030
|
|
|
4,036
|
|
Current income tax
provision
|
(17,693)
|
|
|
(17,010)
|
|
|
(12,143)
|
|
Total interest, taxes
and other
|
$
|
(54,560)
|
|
|
$
|
(59,940)
|
|
|
$
|
(83,429)
|
|
|
|
|
|
|
|
LIONS GATE
ENTERTAINMENT CORP.
|
RECONCILIATION OF
FOURTH QUARTER EBITDA TO FREE CASH FLOW
|
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2015
|
|
2014
|
|
(Amounts in
thousands)
|
EBITDA
|
$
|
34,497
|
|
|
$
|
69,111
|
|
|
|
|
|
Plus: Amortization of
film and television programs
|
260,479
|
|
|
284,471
|
|
Less: Cash paid for
film and television programs(1)
|
(277,701)
|
|
|
(329,189)
|
|
Cash paid for film
and television programs in excess of amortization
|
(17,222)
|
|
|
(44,718)
|
|
|
|
|
|
Plus: Non-cash
stock-based compensation
|
31,247
|
|
|
19,448
|
|
Plus: Distributions
from equity method investee
|
—
|
|
|
6,230
|
|
Less: Equity
interests income
|
(15,124)
|
|
|
(11,566)
|
|
Plus: Loss on
extinguishment of debt
|
10,388
|
|
|
2,919
|
|
EBITDA adjusted
for items above
|
43,786
|
|
|
41,424
|
|
|
|
|
|
Changes in other
operating assets and liabilities:
|
|
|
|
Restricted
cash
|
5,000
|
|
|
31,529
|
|
Accounts receivable,
net
|
80,835
|
|
|
(47,127)
|
|
Other
assets
|
(3,915)
|
|
|
(2,072)
|
|
Accounts payable and
accrued liabilities
|
47,614
|
|
|
13,423
|
|
Participations and
residuals
|
8,774
|
|
|
20,971
|
|
Deferred
revenue
|
(4,816)
|
|
|
16,088
|
|
|
133,492
|
|
|
32,812
|
|
|
|
|
|
Purchases of property
and equipment
|
(5,720)
|
|
|
(2,683)
|
|
Interest, taxes and
other(2)
|
(14,347)
|
|
|
(11,213)
|
|
|
|
|
|
Free Cash Flow, as
defined
|
$
|
157,211
|
|
|
$
|
60,340
|
|
________________________
|
|
|
|
(1) Cash paid for
film and television programs is calculated using the following
amounts as presented in our consolidated statement of cash
flows:
|
Change in investment
in film and television programs
|
$
|
(196,825)
|
|
|
$
|
(255,139)
|
|
Change in film
obligations
|
8,976
|
|
|
(30,395)
|
|
Production loans -
borrowings
|
97,928
|
|
|
172,834
|
|
Production loans -
repayments
|
(187,780)
|
|
|
(216,489)
|
|
Total cash paid for
film and television programs
|
$
|
(277,701)
|
|
|
$
|
(329,189)
|
|
_________________________
|
|
|
|
(2) Interest, taxes
and other consists of the following:
|
|
|
|
Cash
interest
|
$
|
(10,111)
|
|
|
$
|
(9,278)
|
|
Interest and other
income
|
602
|
|
|
1,280
|
|
Current income tax
benefit (provision)
|
1,929
|
|
|
(3,215)
|
|
Excess tax benefits
on equity-based compensation awards
|
(6,767)
|
|
|
—
|
|
Total interest, taxes
and other
|
$
|
(14,347)
|
|
|
$
|
(11,213)
|
|
|
|
|
|
This reconciliation is provided to illustrate the difference
between our EBITDA and free cash flow which are both separately
reconciled to their corresponding GAAP metrics.
LIONS GATE
ENTERTAINMENT CORP.
|
|
|
|
RECONCILIATION OF
ANNUAL INCOME BEFORE INCOME TAXES, NET
|
|
INCOME, BASIC AND
DILUTED EPS TO ADJUSTED INCOME BEFORE
|
|
INCOME TAXES,
ADJUSTED NET INCOME, AND ADJUSTED BASIC AND DILUTED
EPS
|
|
|
|
|
Year Ended March
31, 2015*
|
|
|
Income before
income taxes
|
|
Net
income
|
|
Basic
EPS*
|
|
Diluted
EPS*
|
|
|
(Amounts in
thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
As
reported
|
$
|
213,408
|
|
|
$
|
181,781
|
|
|
$
|
1.31
|
|
|
$
|
1.23
|
|
|
Stock-based
compensation(1)
|
80,310
|
|
|
51,398
|
|
|
0.37
|
|
|
0.34
|
|
|
Restructuring and
other items(2)
|
10,725
|
|
|
7,437
|
|
|
0.05
|
|
|
0.05
|
|
|
Loss on
extinguishment of debt(3)
|
11,664
|
|
|
8,889
|
|
|
0.06
|
|
|
0.06
|
|
|
Backstopped prints
and advertising expense(4)
|
12,509
|
|
|
8,006
|
|
|
0.06
|
|
|
0.05
|
|
|
As adjusted for
stock-based compensation, restructuring and other items, loss on
extinguishment of debt, and backstopped prints and advertising
expense *
|
$
|
328,616
|
|
|
$
|
257,511
|
|
|
$
|
1.85
|
|
|
$
|
1.73
|
|
|
_________________________
|
|
|
|
|
|
|
|
|
* The definition of
adjusted income before income taxes, adjusted net income and
adjusted earnings per share now includes the gains or losses from
the sale of equity method investments. Accordingly, adjusted income
before income taxes, and adjusted net income has been revised to
now include the gain on the April 2014 sale of the Company's
interest in FEARnet of $11.4 million ($7.2 million after income
taxes) and representing adjusted basic and diluted earnings per
share of $0.05 for the year ended March 31, 2015. This change is
consistent with the Company's increasing investment activity and
practice of including equity interest income and losses from equity
method investments in adjusted income before income taxes, adjusted
net income and adjusted earnings per share. Prior to the sale of
FEARnet, the Company recognized cumulative equity interest losses
before income taxes of approximately $11.7 million from the
Company's interest in FEARnet.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March
31, 2014
|
|
|
Income before
income taxes
|
|
Net
income
|
|
Basic
EPS*
|
|
Diluted
EPS*
|
|
|
(Amounts in
thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
As
reported
|
$
|
184,960
|
|
|
$
|
152,037
|
|
|
$
|
1.11
|
|
|
$
|
1.04
|
|
|
Stock-based
compensation(1)
|
72,119
|
|
|
45,435
|
|
|
0.33
|
|
|
0.29
|
|
|
Restructuring and
other items(2)
|
7,500
|
|
|
7,500
|
|
|
0.05
|
|
|
0.05
|
|
|
Loss on
extinguishment of debt(3)
|
39,572
|
|
|
24,930
|
|
|
0.18
|
|
|
0.16
|
|
|
Tax valuation
allowance(5)
|
—
|
|
|
(12,030)
|
|
|
(0.09)
|
|
|
(0.08)
|
|
|
As adjusted for
stock-based compensation, restructuring and other items, loss on
extinguishment of debt and valuation allowance
|
$
|
304,151
|
|
|
$
|
217,872
|
|
|
$
|
1.58
|
|
|
$
|
1.47
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March
31, 2013
|
|
|
Income before
income taxes
|
|
Net
income
|
|
Basic
EPS*
|
|
Diluted
EPS*
|
|
|
(Amounts in
thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
As
reported
|
$
|
156,371
|
|
|
$
|
232,127
|
|
|
$
|
1.73
|
|
|
$
|
1.61
|
|
|
Stock-based
compensation(1)
|
47,665
|
|
|
30,186
|
|
|
0.22
|
|
|
0.20
|
|
|
Loss on
extinguishment of debt(3)
|
24,089
|
|
|
15,255
|
|
|
0.11
|
|
|
0.10
|
|
|
Tax valuation
allowance(5)
|
—
|
|
|
(141,087)
|
|
|
(1.05)
|
|
|
(0.94)
|
|
|
As adjusted for
stock-based compensation, loss on extinguishment of debt and
valuation allowance
|
$
|
228,125
|
|
|
$
|
136,481
|
|
|
$
|
1.01
|
|
|
$
|
0.96
|
|
|
_________________________
|
|
|
|
|
|
|
|
|
* Basic and Diluted
EPS amounts may not add precisely due to rounding
|
|
|
|
|
|
LIONS GATE
ENTERTAINMENT CORP.
|
|
RECONCILIATION OF
FOURTH QUARTER INCOME BEFORE INCOME TAXES, NET
|
INCOME, BASIC AND
DILUTED EPS TO ADJUSTED INCOME BEFORE
|
INCOME
TAXES, ADJUSTED NET INCOME, AND ADJUSTED BASIC AND DILUTED
EPS
|
|
|
|
Three Months Ended
March 31, 2015
|
|
Income before
income taxes
|
|
Net
income
|
|
Basic
EPS*
|
|
Diluted
EPS*
|
|
(Amounts in
thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
As
reported
|
$
|
20,316
|
|
|
$
|
19,554
|
|
|
$
|
0.14
|
|
|
$
|
0.14
|
|
Stock-based
compensation(1)
|
31,435
|
|
|
20,441
|
|
|
0.15
|
|
|
0.14
|
|
Restructuring and
other items(2)
|
3,717
|
|
|
2,998
|
|
|
0.02
|
|
|
0.02
|
|
Loss on
extinguishment of debt(3)
|
10,388
|
|
|
8,081
|
|
|
0.06
|
|
|
0.05
|
|
Backstopped prints
and advertising expense(4)
|
10,409
|
|
|
6,676
|
|
|
0.05
|
|
|
0.04
|
|
As adjusted for
stock-based compensation, restructuring and other items, loss on
extinguishment of debt and backstopped prints and advertising
expense
|
$
|
76,265
|
|
|
$
|
57,750
|
|
|
$
|
0.41
|
|
|
$
|
0.39
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31, 2014
|
|
Income before
income taxes
|
|
Net
income
|
|
Basic
EPS*
|
|
Diluted
EPS*
|
|
(Amounts in
thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
As
reported
|
$
|
55,008
|
|
|
$
|
49,152
|
|
|
$
|
0.35
|
|
|
$
|
0.33
|
|
Stock-based
compensation(1)
|
19,920
|
|
|
12,550
|
|
|
0.09
|
|
|
0.08
|
|
Loss on
extinguishment of debt(3)
|
2,919
|
|
|
1,839
|
|
|
0.01
|
|
|
0.01
|
|
As adjusted for
stock-based compensation and loss on extinguishment of
debt
|
$
|
77,847
|
|
|
$
|
63,541
|
|
|
$
|
0.46
|
|
|
$
|
0.42
|
|
_________________________
|
|
|
|
|
|
|
|
* Basic and Diluted
EPS amounts may not add precisely due to rounding
|
|
|
|
|
Adjusted income before income taxes, adjusted net income and
adjusted basic and diluted EPS are adjusted for the following items
(The adjustment to net income is net of the tax impact calculated
using the statutory tax rate applicable to each adjustment):
(1)
|
Stock-based
compensation: Adjustments for stock-based compensation represents
compensation expenses associated with stock options, restricted
share units, cash and equity settled SARs.
|
(2)
|
Restructuring and
other items: Adjustments for certain unusual items, such as
severance and restructuring charges, certain transaction related
costs, and the settlement of an administrative order, when
applicable. Amounts in the year ended March 31, 2015
primarily represent severance costs associated with the integration
of the marketing operations of the Company's Lionsgate and Summit
film labels and costs related to the move of our international
sales and distribution organization to the United Kingdom. A
portion of these costs are non-cash charges resulting from the
acceleration of vesting of stock awards. In addition, the
remaining amount for the year ended March 31, 2015 includes
transaction costs related to the registration and offering of
common shares by a shareholder, for which the Company received no
proceeds, pursuant to a preexisting registration rights agreement
dated October 22, 2009, and costs related to the previously
disclosed Starz Exchange transaction. Amounts in the year ended
March 31, 2014 represent the settlement of an administrative order.
Amounts in the year ended March 31, 2013 represent severance and
transaction costs related to the acquisition of Summit
Entertainment.
|
(3)
|
Loss on
extinguishment of debt: This adjusts income before income taxes and
net income to eliminate the loss on extinguishment of
debt.
|
(4)
|
Backstopped prints
and advertising expense: This adjusts income before income taxes
and net income to eliminate the amount of theatrical marketing
expense for third party titles that the Company funded and expensed
for which a third party provides a first dollar loss guarantee
(subject to a cap) that such expense will be recouped from the
performance of the film (which results in minimal risk of loss to
the company). The amount represents the P&A expense incurred
net of the impact of expensing the P&A cost over the revenue
streams similar to a participation expense (i.e. the P&A under
these arrangements are being expensed similar to a participation
cost for purposes of the adjusted measure).
|
(5)
|
Tax valuation
allowance: This adjusts net income to eliminate the discrete tax
benefit recognized for financial reporting purposes upon the
reduction of the Company's valuation allowance on its net deferred
tax assets in our various tax jurisdictions. A substantial portion
of the Company's valuation allowance was reversed in the year ended
March 31, 2013 due to the expectation of the realization of the
related net deferred tax assets in future tax returns. A further
reduction in the valuation allowance related to the Company's
Canadian net deferred tax assets was reversed in the year ended
March 31, 2014.
|
We believe that these non-GAAP measures provide useful
information to investors regarding the Company's results as
compared to historical periods. The Company uses these measures,
among other measures, to evaluate the operating performance of the
Company. The Company believes that the adjusted results provide
relevant and useful information for investors because they clarify
the Company's actual operating performance and allow investors to
review our operating performance in the same way as our management.
Since these measures are not calculated in accordance with
generally accepted accounting principles, they should not be
considered in isolation of, or as a substitute for income before
income taxes, net income, basic and diluted EPS. Not all companies
calculate adjusted income before income taxes, adjusted net income,
and adjusted basic and diluted EPS in the same manner and the
measures as presented may not be comparable to similarly titled
measures presented by other companies.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/lionsgate-reports-strong-financial-results-for-fiscal-2015-300087585.html
SOURCE Lions Gate Entertainment Corp.