LIONSGATE REPORTS RESULTS FOR SECOND QUARTER FISCAL 2017
Revenue Increases 34% to $639.5 Million; Net Loss Attributable to Lionsgate Shareholders is $(17.5) Million or Basic Net Loss per Common Share of $(0.12)
Television Production Revenues Increase 43%; Motion Picture Group Revenues Grow 31%
Filmed Entertainment Backlog Remains at $1.5 Billion
SANTA MONICA, Calif. and VANCOUVER, Nov. 3, 2016 /PRNewswire/ -- Lionsgate (NYSE: LGF) today reported revenue of $639.5 million, net loss attributable to Lionsgate shareholders of $(17.5) million or basic net loss per common share of $(0.12), adjusted net income attributable to Lionsgate shareholders of $16.9 million or adjusted basic EPS of $0.11, and adjusted EBITDA of $2.6 million for the second quarter of fiscal 2017 (quarter ended September 30, 2016).
"We achieved solid revenue gains across our core businesses, highlighted by another strong performance from our Television Group, in what we expect to be the last quarter for which we report Lionsgate financial results on a standalone basis," said Lionsgate Chief Executive Officer Jon Feltheimer. "We're making great progress in planning the integration of Starz and Lionsgate, and next quarter we expect to report combined numbers that will begin to reflect the scope of our vertically integrated global content platform, supported by strong free cash flow generation and a more diversified income stream."
Revenue of $639.5 million for the quarter grew 34% from the prior-year quarter driven by strong gains in both segments. Motion Picture Group revenues grew 31% as the Company had seven wide theatrical releases in the quarter compared to three wide theatrical releases in the prior year quarter. Television Production revenues increased 43% from the prior-year quarter due primarily to $43 million in domestic television revenue from the Pilgrim Media Group, acquired in November 2015, as well as the mix of television episodes delivered in the quarter.
Net loss attributable to Lionsgate shareholders for the quarter of $(17.5) million or basic net loss per common share of $(0.12) on 147.8 million weighted average number of common shares outstanding narrowed from a net loss attributable to Lionsgate shareholders of $(42.1) million or basic net loss per common share of $(0.28) on 148.3 million weighted average number of common shares outstanding during the prior year quarter. EPS in the quarter also included a larger income tax benefit.
Adjusted EBITDA of $2.6 million for the quarter increased from adjusted EBITDA of negative $(8.1) million in the prior year quarter. Adjusted net income attributable to Lionsgate shareholders of $16.9 million or adjusted basic EPS of $0.11 for the quarter increased from adjusted net loss attributable to Lionsgate shareholders of $(28.4) million or adjusted basic net loss per common share of $(0.19) in the prior year quarter.
Increases in adjusted EBITDA and adjusted EPS in the quarter were attributable in part to gains in profitability in the Television Group and higher revenue in the Motion Picture Group which offset the increased marketing and distribution costs for a larger theatrical slate.
Overall Motion Picture segment revenue was $464.4 million in the quarter compared to $354.0 million in the prior year quarter. Theatrical revenue more than doubled to $62.0 million due to the larger release slate. Television revenues from the Motion Picture segment increased 16% to $69.3 million.
Lionsgate's home entertainment revenue from Motion Picture and Television Production increased 5% to $160.7 million driven by gains of 31% in motion picture digital home entertainment revenue and the strong home entertainment performance of Now You See Me 2.
International Motion Picture revenue increased 56% to $168.3 million driven by the strong performance of Now You See Me 2, which has grossed nearly $350 million worldwide. Nerve, Deepwater Horizon and Lionsgate UK's London Has Fallen also contributed to the revenue growth in the quarter.
The Company's hit Tyler Perry's Boo! A Madea Halloween, which has been number one at the domestic box office the past two weeks, was released after the end of the quarter.
Television Production segment revenue increased 43% in the quarter to $175.1 million, led by a 76% increase in domestic television revenue which offset declines in international television and television home entertainment revenue.
Lionsgate's filmed entertainment backlog, or already contracted future revenue not yet recorded, remained at a near record $1.5 billion at September 30, 2016.
Lionsgate senior management will hold its analyst and investor conference call to discuss its second quarter fiscal 2017 financial results at 5:00 PM ET/2:00 PM PT today, Thursday, November 3. Interested parties may participate live in the conference call by calling 1-800-230-1085 (612-288-0329 outside the U.S. and Canada). A full digital replay will be available from Friday afternoon, November 4, through Friday, November 11, by dialing 1-800-475-6701 (320-365-3844 outside the U.S. and Canada) and using access code 403502.
Lionsgate is a premier next generation global content leader with a diversified presence in motion picture production and distribution, television programming and syndication, home entertainment, international distribution and sales, branded channel platforms, interactive ventures and games, and location-based entertainment. The Company has nearly 80 television shows on 40 different networks spanning its primetime production, distribution and syndication businesses. These include the ground-breaking hit series Orange is the New Black, the fan favorite drama series Nashville, the syndication success The Wendy Williams Show, the hit drama series The Royals, the Golden Globe-nominated dramedy Casual and the breakout success Greenleaf.
The Company's feature film business spans eight labels and includes the blockbuster Hunger Games franchise, the Now You See Me and John Wick series, Tyler Pe