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LIONSGATE REPORTS RESULTS FOR FOURTH QUARTER FISCAL 2022

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Fourth Quarter Revenue was $929.9 Million; Operating Loss was $50.4 Million; Net Loss Attributable to Lionsgate Shareholders was $104.6 Million or $0.46 Diluted Net Loss per Share; Cash Flows Used in Operating Activities was $171.1 Million

Adjusted OIBDA was $82.6 Million, Adjusted Free Cash Flow was $87.7 Million and Adjusted Net Income Attributable to Lionsgate Shareholders was $13.0 Million or Adjusted Diluted EPS of $0.06

Global Subscribers Grew to 35.8 Million, including StarzPlay Arabia; Global Streaming Subscribers Grew 47% Year over Year to 24.5 Million

Film & Television Library Revenue was $766 Million for Trailing 12 Months

SANTA MONICA, Calif. and VANCOUVER, BC, May 26, 2022 /PRNewswire/ -- Lionsgate (NYSE: LGF.A, LGF.B) today reported fourth quarter (quarter ended March 31, 2022) revenue of $929.9 million, operating loss of $50.4 million and net loss attributable to Lionsgate shareholders of $104.6 million or $0.46 diluted net loss per share on 225.2 million diluted weighted average common shares outstanding. Adjusted net income attributable to Lionsgate shareholders in the quarter was $13.0 million or adjusted diluted EPS of $0.06 on 230.6 million diluted weighted average common shares outstanding, with adjusted OIBDA of $82.6 million.  Cash flow used in operating activities was $171.1 million and adjusted free cash flow was $87.7 million.

Courtesy of Lionsgate. (PRNewsFoto/Lionsgate)
Courtesy of Lionsgate. (PRNewsFoto/Lionsgate)

Full year fiscal 2022 (fiscal year ended March 31, 2022) revenue was $3.60 billion, operating income was $9.0 million, and net loss attributable to Lionsgate shareholders was $188.2 million, or $0.84 diluted net loss per share on 224.1 million diluted weighted average common shares outstanding. Adjusted net income attributable to Lionsgate shareholders was $95.4 million or adjusted diluted EPS of $0.42 and adjusted OIBDA was $402.2 million for fiscal 2022. Full year cash flow used in operating activities was $660.9 million and adjusted free cash flow was $70.4 million.

"Despite a very competitive and disruptive environment, I'm pleased to report a strong fourth quarter to close one of our best content building years as we continue to create significant long term value," said Lionsgate CEO Jon Feltheimer.  "Our content creation strengths were evident across our businesses as our Television Group achieved record new series launches and current series renewals, our Motion Picture Group continued to add to a strong pipeline of branded properties and our library turned in another standout performance.  At Starz, our increased investment in content generated a robust slate that drove strong subscriber growth and a notable reduction in churn."

Revenue from Lionsgate's 17,000-title film and television library was $766 million for the trailing 12 months.

Fourth Quarter Segment Results

The Studio Business, composed of the Motion Picture and Television Production Segments, increased revenue by 30.8% to $658.3 million compared to $503.1 million in the prior year quarter.  Segment profit increased 16.8% to $82.6 million compared to $70.7 million in the prior year quarter.  Revenue and segment profit growth was driven by revenue growth at Television Production and continued cost control.

Motion Picture segment revenue decreased by 1.5% to $288.1 million compared to $292.4 million in the prior year quarter.  Segment profit decreased 19.6% to $49.5 million compared to $61.6 million in the prior year quarter.  Revenue and segment profit trends were driven by the timing of P&A spend and certain content deliveries, partially offset by the continued strength of the film & television library.

Television Production segment revenue increased by 75.7% to $370.2 million compared to $210.7 million in the prior year quarter.  Segment profit increased 263.7% to $33.1 million compared to $9.1 million in the prior year quarter. Revenue and segment profit increases were driven by continued growth in content deliveries.  Lionsgate Television had a record 14 new shows picked up to series in the fiscal year and went 15-for-15 in current series renewed for additional seasons.

Media Networks segment revenue decreased 5.2% to $380.2 million compared to $401.0 million in the prior year quarter. Excluding revenue from the Pantaya streaming service in the prior year quarter, Media Networks segment revenue decreased 2.2% year-over-year due to reductions in domestic linear revenue, partially offset by growth in domestic streaming revenue and STARZPLAY International revenue. Segment profit decreased 23.3% to $33.0 million compared to $43.0 million in the prior year quarter, driven by the decline in domestic linear revenue.

Total Media Networks global subscribers increased to 35.8 million including STARZPLAY Arabia, a non-consolidated equity method investee, driven by robust international and domestic streaming subscriber growth. Global streaming subscribers increased 47% year-over-year to 24.5 million. STARZPLAY International subscribers grew 88% year-over-year to 12.8 million.

Lionsgate senior management will hold its analyst and investor conference call to discuss its fiscal 2022 fourth quarter results at 5:00 PM ET/2:00 PM PT this afternoon, May 26. Interested parties may listen to the live webcast by visiting the events page on the Lionsgate Investor Relations website or via https://services.choruscall.com/links/lgf220526rX546qOw.html. A full replay will become available this evening by clicking the same link.

About Lionsgate

Lionsgate (NYSE: LGF.A, LGF.B) encompasses world-class motion picture and television studio operations aligned with the STARZ premium global subscription platform to bring a unique and varied portfolio of entertainment to consumers around the world.  The Company's film, television, subscription and location-based entertainment businesses are backed by a 17,000-title library and a valuable collection of iconic film and television franchises. A digital age company driven by its entrepreneurial culture and commitment to innovation, the Lionsgate brand is synonymous with bold, original, relatable entertainment for audiences worldwide.

For further information, investors should contact:
Nilay Shah
310-255-3651
nshah@lionsgate.com

For media inquiries, please contact:
Peter 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 potential effects of the COVID-19 global pandemic on the Company, and economic and business conditions; the potential effects of Russia's invasion of Ukraine on the Company, and 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; other trends affecting the entertainment industry; and the other risk factors set forth in Lionsgate's Annual Report on Form 10-K filed with the Securities and Exchange Commission on May 26, 2022.  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 year ended  March 31, 2022, 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 at http://investors.lionsgate.com/financial-reports/quarterly-results/2022.

 

LIONS GATE ENTERTAINMENT CORP.

CONSOLIDATED BALANCE SHEETS



March 31,
2022


March 31,
2021


(Unaudited, amounts in millions)

ASSETS




Cash and cash equivalents

$              371.2


$              528.7

Accounts receivable, net

442.2


383.7

Other current assets

244.7


274.3

     Total current assets

1,058.1


1,186.7

Investment in films and television programs and program rights, net

3,013.6


2,222.7

Property and equipment, net

81.2


91.1

Investments

56.0


31.9

Intangible assets

1,440.2


1,575.1

Goodwill

2,764.5


2,764.5

Other assets

577.6


434.2

     Total assets

$          8,991.2


$          8,306.2

LIABILITIES




Accounts payable and accrued liabilities

$              585.8


$              545.4

Participations and residuals

468.5


508.8

Film related and other obligations

951.1


385.0

Debt - short term portion

222.8


88.0

Deferred revenue

174.9


165.7

     Total current liabilities

2,403.1


1,692.9

Debt

2,202.1


2,542.9

Participations and residuals

265.1


304.6

Film related and other obligations

729.0


318.5

Other liabilities

298.7


337.1

Deferred revenue

49.8


56.2

Deferred tax liabilities

38.8


40.3

Redeemable noncontrolling interest

321.2


219.1

Commitments and contingencies




EQUITY




Class A voting common shares, no par value, 500.0 shares authorized, 83.3 shares issued

(March 31, 2021 - 83.0 shares issued)

668.2


663.2

Class B non-voting common shares, no par value, 500.0 shares authorized, 142.0 shares

issued (March 31, 2021 - 138.2 shares issued)

2,353.8


2,296.0

Accumulated deficit

(369.7)


(82.9)

Accumulated other comprehensive income (loss)

29.3


(83.3)

     Total Lions Gate Entertainment Corp. shareholders' equity

2,681.6


2,793.0

Noncontrolling interests

1.8


1.6

Total equity

2,683.4


2,794.6

     Total liabilities and equity

$          8,991.2


$          8,306.2

 

LIONS GATE ENTERTAINMENT CORP.

CONSOLIDATED STATEMENTS OF OPERATIONS



Three Months Ended


Year Ended


March 31,


March 31,


2022


2021


2022


2021


(Unaudited, amounts in millions, except per share amounts)

Revenues

$              929.9


$              876.4


$          3,604.3


$          3,271.5

Expenses








     Direct operating

577.0


476.9


2,064.2


1,725.9

     Distribution and marketing

227.7


234.6


861.0


719.3

     General and administration

122.3


143.3


475.4


486.6

     Depreciation and amortization

43.8


45.6


177.9


188.5

     Restructuring and other

9.5


5.8


16.8


24.7

     Gain on sale of Pantaya


(44.1)



(44.1)

          Total expenses

980.3


862.1


3,595.3


3,100.9

Operating income (loss)

(50.4)


14.3


9.0


170.6

Interest expense

(45.9)


(46.4)


(176.0)


(181.5)

Interest and other income

1.4


3.5


30.8


5.8

Other expense

(4.6)


(2.2)


(10.9)


(6.7)

Loss on extinguishment of debt



(28.2)


Gain on investments


0.2


1.3


0.5

Equity interests loss

(1.6)


(0.9)


(3.0)


(6.1)

Loss before income taxes

(101.1)


(31.5)


(177.0)


(17.4)

Income tax provision

(6.8)


(10.3)


(28.4)


(17.1)

Net loss

(107.9)


(41.8)


(205.4)


(34.5)

     Less: Net loss attributable to noncontrolling interests

3.3


4.1


17.2


15.6

Net loss attributable to Lions Gate Entertainment

Corp. shareholders

$            (104.6)


$              (37.7)


$            (188.2)


$              (18.9)









Per share information attributable to Lions Gate

Entertainment Corp. shareholders:








Basic net loss per common share

$              (0.46)


$              (0.17)


$              (0.84)


$              (0.09)

Diluted net loss per common share

$              (0.46)


$              (0.17)


$              (0.84)


$              (0.09)









Weighted average number of common shares

outstanding:








     Basic

225.2


221.2


224.1


220.5

     Diluted

225.2


221.2


224.1


220.5

 

LIONS GATE ENTERTAINMENT CORP.

CONSOLIDATED STATEMENTS OF CASH FLOWS



Three Months Ended


Year Ended


March 31,


March 31,


2022


2021


2022


2021


(Unaudited, amounts in millions)

Operating Activities:








Net loss

$          (107.9)


$            (41.8)


$          (205.4)


$            (34.5)

Adjustments to reconcile net loss to net cash used in operating activities:








     Depreciation and amortization

43.8


45.6


177.9


188.5

     Amortization of films and television programs and program rights

449.0


336.2


1,567.7


1,189.8

     Amortization of debt financing costs and other non-cash interest

13.4


14.2


50.5


44.8

     Non-cash share-based compensation

22.5


29.0


100.0


89.0

     Other amortization

21.0


21.5


92.5


73.2

     Gain on sale of Pantaya


(44.1)



(44.1)

     Loss on extinguishment of debt



28.2


     Equity interests loss

1.6


0.9


3.0


6.1

     Gain on investments


(0.2)


(1.3)


(0.5)

     Deferred income taxes

(4.2)


3.4


(1.7)


3.4

Changes in operating assets and liabilities:








     Accounts receivable, net and other assets

(103.7)


0.2


(256.9)


133.9

     Investment in films and television programs and program rights, net

(476.2)


(632.0)


(2,211.7)


(1,616.7)

     Accounts payable and accrued liabilities

18.6


40.5


1.4


32.7

     Participations and residuals

(15.0)


9.2


(71.3)


(49.1)

     Program rights and other film obligations