re: POSITIVE EARNINGS !!! Anyone else excited ?
Well, excited might be too strong a term, but I am quite pleased.
The PR wire story contained a LOT more info.
VANCOUVER, Feb. 22 /CNW-PRN/ - Lions Gate Entertainment Corp. today
announced its financial results for the third quarter of fiscal 2000. For the
three months ended December 31, 1999, revenue was $104.2 million, an
increase of $64.2 million or 160.5% over $40 million in the same period in
the prior year. EBITDA (earnings before interest, taxes, depreciation, and
amortization) was $8.4 million, an increase of $6.5 million or 342% from
$1.9 million in the same period one year ago. Excluding the Company's
equity pick up of the non-cash operating loss in Mandalay Pictures, LLC, net
earnings for the third quarter were $4.4 million, or $0.14 per share (on
30.6 million weighted average common shares outstanding.) Including the
results of Mandalay Pictures, net earnings for the quarter were $3 million,
or $.10 per share versus a loss of $0.6 million or $0.03 per share (on 24.3
million weighted average common shares outstanding) in the third quarter
one year ago.
''This is by far the most profitable quarter in the Company's history, and
obviously our management team is excited by the positive results,'' said
Lions Gate Chairman and CEO Frank Giustra. ''With our latest equity
financing of $33 million (US) completed in January, and significant new
shareholders, including SBS Broadcasting, Telemunchen, and Paul Allen's
Vulcan Ventures we are confident we have the managerial strength and
strategic vision to continue to see Lions Gate broaden its horizons in the
emerging digital marketplace for all types of entertainment content.''
Stated President and COO Roman Doroniuk: ''The Company has made
tremendous progress in all operating areas. With our new equity and credit
facility in place with National Bank of Canada the Company is well
positioned to continue its growth into the future.''
Results for the three months ended December 31, 1999 reflect the
contributions of the Company's four main operating divisions: Motion
Pictures, Television, Animation, and Studio Facilities:
MOTION PICTURES
Revenue was $55.3 million, up $33.9 million or 158.4% from $21.4 million
in the same period a year ago. In Lions Gate Films, the increased revenue
was due largely to the theatrical release of Dogma, which performed
exceptionally well at the box office during the fall of 1999. Several home
video titles also met or exceeded expectations, including Red Violin
(Oscar-nominated for Best Original Score), Free Money, New Rose Hotel,
and Metroland.
TELEVISION
Revenue for the quarter was $35 million, an increase of $26.5 million
versus last year's third quarter revenue of $8.5 million. Major television
movies delivered included ''Shutterspeed'' (TNT) and ''King of the World''
(ABC). Eight hours of the one-hour series ''Hope Island'' (Pax-TV,
Paramount Worldwide) and five hours of the one-hour series ''Higher
Ground'' (Fox, WIC, Paramount Worldwide) were also delivered. Termite Art
Productions delivered 15.5 hours of programming, including ''When Good
Times Go Bad'' (Fox), ''Busted on the Job III'' (Fox), and ''High Rollers''
(History Channel).
ANIMATION
Revenue of $12.2 million was up significantly from $8.5 million in the
previous year's quarter, as the current year's quarter consisted of entirely
100% Canadian deliveries, with average revenue per hour greatly exceeding
last year's. Deliveries included 15 half-hours of ''Mega Babies'' (Fox,
TeleToon), 11 half-hours of ''Kids from Room 402'' (Fox), and 6 half-hours
of ''Bad Dog II'' (Fox.)
STUDIO FACILITIES
Revenue of $1.8 million exceeded the prior year's third quarter revenue of
$1.5 million by 20%. Higher occupancy levels and the new seventh sound
stage contributed to the increase: Average stage occupancy was 99% and
average office occupancy was 90% during the quarter. Projects currently
shooting at the Studios include: The Sixth Day, starring Arnold
Schwarzenegger, Along Came a Spider, starring Morgan Freeman and Lions
Gate's own television series ''Higher Ground.''
EQUITY INVESTMENT IN MANDALAY PICTURES, LLC (45%)(x)
(x)Accounted for on an equity basis.
The non-cash equity interest loss in Mandalay Pictures of $1.4 million is
comprised of 100% of the non-cash operating loss of Mandalay Pictures
October 1, 1999 to December 31, 1999 of $956,000 and amortization of the
deferred pre-operating costs for the quarter of $477,000. Sleepy Hollow
has generated domestic box office of $98 million (US) and is currently in
release in major territories around the world. Currently in production at
Mandalay Pictures is Enemy at the Gates, starring Jude Law, Joseph
Fiennes, Ed Harris, Bob Hoskins, and Rachel Weisz.
LIONS GATE ENTERTAINMENT CORP. (AMEX/TSE:LGF) develops, produces and
distributes a targeted range of film and television content. Via four
operating divisions -- Motion Pictures, Television, Animation, and Studio
Facilities -- the distinctive Lions Gate brand is recognized as a symbol of
quality entertainment throughout North America and around the world.
The foregoing information may contain forward-looking statements
relating to the future performance of Lions Gate Entertainment Corp.
Forward-looking statements, specifically those concerning future
performance, are subject to certain risks and uncertainties, and actual
results may differ materially. These risks and uncertainties are detailed
from time to time in the Company's filings with the appropriate securities
commissions.
www.lionsgate-ent.com
<<
Lions Gate Entertainment Corp.
Consolidated Balance Sheets
As at December 31, 1999, September 30, 1999 and December 31, 1998
(all amounts in thousands of Canadian dollars)
(UNAUDITED)
-----------------------------------------------------
December 31 September 30 December 31
1999 1999 1998
$ $ $
Assets
Cash and short-term
deposits 3,331 8,388 6,007
Accounts receivable 112,163 76,258 63,643
Investment in film and
television programs 137,213 130,515 77,004
Investment in Mandalay
Pictures, LLC 65,659 68,302 76,754
Capital assets 43,676 43,458 39,875
Goodwill 29,803 30,414 31,046
Other assets 7,168 7,768 763
-----------------------------------------------------
399,013 365,103 295,092
-----------------------------------------------------
-----------------------------------------------------
Liabilities
Bank loans 3,296 18,128 9,977
Accounts payable and
accrued liabilities 84,766 58,742 33,181
Production and
distribution loans 61,617 50,829 41,378
Long-term debt 37,963 44,084 44,107
Deferred revenue 26,139 28,370 8,759
Non-controlling interest 4,853 4,446 3,554
-----------------------------------------------------
218,634 204,599 140,956
Shareholders' Equity
Capital stock 195,505 177,413 151,030
Deficit (16,264) (19,258) (2,534)
Cumulative translation
adjustments 1,138 2,349 5,640
-----------------------------------------------------
180,379 160,504 154,136
-----------------------------------------------------
399,013 365,103 295,092
-----------------------------------------------------
-----------------------------------------------------
Lions Gate Entertainment Corp.
Consolidated Statements of Operations and Deficit
For the Three Months and Nine Months Ended December 31, 1999
and December 31, 1998
(all amounts in thousands of Canadian dollars, except per share amounts)
UNAUDITED
------------------------------------------------------
For the For the For the For the
Three Three Nine Nine
Months Months Months Months
Ended Gross Ended Gross Ended Ended
December Profit December Profit December December
31, 1999 Margin 31, 1998 Margin 31, 1999 31, 1998
$ $ $ $
-------------------------------------------------------------------------
Revenue
Motion Pictures 55,276 21,417 109,842 49,964
Television 34,960 8,506 56,396 10,083
Animation 12,159 8,507 29,700 17,976
Studio Facilities 1,768 1,528 5,146 4,465
-------------------------------------------------------------------------
104,163 39,958 201,084 82,488
-------------------------------------------------------------------------
Direct Operating Expenses
Motion Pictures 47,085 17,934 90,255 40,945
Television 31,542 6,909 50,529 7,248
Animation 9,264 6,633 22,573 14,063
Studio Facilities 592 530 1,774 1,675
-------------------------------------------------------------------------
88,483 32,006 165,131 63,931
-------------------------------------------------------------------------
Gross Profit
Motion Pictures 8,191 14.8% 3,483 16.3% 19,587 9,019
Television 3,418 9.8% 1,597 18.8% 5,867 2,835
Animation 2,895 23.8% 1,874 22.0% 7,127 3,913
Studio Facilities 1,175 66.5% 998 65.3% 3,372 2,790
-------------------------------------------------------------------------
15,680 15.1% 7,952 19.9% 35,953 18,557
-------------------------------------------------------------------------
Other Operating
Expenses
General and
administration 7,330 6,030 22,367 16,014
Amortization 1,671 1,087 4,629 2,848
Interest 1,282 1,021 3,622 2,577
Minority interest 407 304 1,218 541
-------------------------------------------------------------------------
10,690 8,442 31,836 21,980
-------------------------------------------------------------------------
Income (Loss) Before
Undernoted 4,990 (490) 4,117 (3,423)
Gain on Dilution of
Investment in a
Subsidiary - - - 839
-------------------------------------------------------------------------
Income (Loss) Before
Income Taxes and
Equity Interest 4,990 (490) 4,117 (2,584)
Provision for
(Recovery of)
Income Taxes 563 118 1,844 (603)
-------------------------------------------------------------------------
Income (Loss) Before
Equity Interest 4,427 (608) 2,273 (1,981)
Equity Interest in
Loss of Mandalay
Pictures, LLC (1,433) - (3,987) -
Other Equity
Interest - - 159 -
-------------------------------------------------------------------------
Net Income (Loss)
for the Period 2,994 (608) (1,555) (1,981)
Deficit, Beginning
of Period (19,258) (1,926) (14,709) (553)
-------------------------------------------------------------------------
Deficit, End of
Period (16,264) (2,534) (16,264) (2,534)
-------------------------------------------------------------------------
Basic Income (Loss)
per Common Share $0.10 ($0.03) ($0.05) ($0.08)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Basic Income (Loss)
per Common Share
excluding
Mandalay $0.14 ($0.03) $0.08 ($0.08)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Lions Gate Entertainment Corp.
Consolidated Statements of Cash Flows
For the Three Months and Nine Months Ended December 31, 1999 and
December 31, 1998
(all amounts in thousands of Canadian dollars)
UNAUDITED
-------------------------------------------------------
Three Months Three Months Nine Months Nine Months
Ended Ended Ended Ended
December December December December
31, 1999 31, 1998 31, 1999 31, 1998
Cash flows from operating activities:
Income (loss) for
the period 2,994 (608) (1,555) (1,981)
Adjustments to reconcile
net income (loss) to
net cash provided by
(used for) operating
activities:
Amortization of
capital assets 648 511 1,843 1,343
Amortization of
goodwill 611 576 1,833 1,505
Write-off of
development costs 172 - 233 -
Amortization of
pre-operating costs 240 - 720 -
Amortization of film
and television
programs 87,891 31,477 163,357 62,256
Gain on dilution of
investment in a
subsidiary - - - (839)
Minority interest 407 304 1,218 541
Other equity interest - - (159) -
Equity interest in loss
of Mandalay Pictures,
LLC 1,433 - 3,987 -
-------------------------------------------------------------------------
94,396 32,260 171,477 62,825
Changes in assets and liabilities,
excluding the effects
of acquisitions:
Accounts receivable (35,905) (12,622) (51,041) (14,428)
Other assets 361 354 (1,701) (1,523)
Accounts payable and
accrued liabilities 26,024 1,044 40,098 5,525
Deferred revenue (2,231) (3,057) 15,359 (2,089)
-------------------------------------------------------------------------
82,645 17,979 174,192 50,310
-------------------------------------------------------------------------
Cash flows from financing
activities:
Issue of capital stock 18,092 (127) 18,437 6,506
Decrease in bank loan (14,832) (2,691) (8,889) (6,857)
Increase in production
and distribution
loans 10,788 7,766 13,202 10,695
Increase (decrease)
in long-term debt (6,121) 1,864 (3,182) 16,445
-------------------------------------------------------------------------
7,927 6,812 19,568 26,789
-------------------------------------------------------------------------
Cash flows from investing activities:
Investment in Mandalay
Pictures - (99) - (46)
Acquisition of
International Movie
Group, net of
cash acquired - (21) - (4,379)
Acquisition of Termite
Art Productions, net
of cash acquired - (62) - (4,133)
Minority investment in
subsidiary - - - 3,000
Redemption of capital
stock - - - (10)
Increase in investment
in film and television
programs (94,763) (29,046) (211,855) (72,127)
Purchase of capital
assets (866) (1,384) (4,828) (2,461)
-------------------------------------------------------------------------
(95,629) (30,612) (216,683) (80,156)
-------------------------------------------------------------------------
Net change in cash
and short-term
deposits (5,057) (5,821) (22,923) (3,057)
Cash and short-term
deposits-beginning
of period 8,388 11,828 26,254 9,064
-------------------------------------------------------------------------
Cash and short-term
deposits-end of
period 3,331 6,007 3,331 6,007
-------------------------------------------------------------------------
-------------------------------------------------------------------------
INVESTOR RELATIONS MEDIA RELATIONS
Peter Waal (Los Angeles)
Lions Gate Entertainment Corp. Richard Licata
TEL: (604) 609-6114 Rogers & Cowan
FAX: (604) 609-6145 TEL: (310) 201-8825
SOURCE Lions Gate Entertainment Corp.
/CONTACT: INVESTOR RELATIONS: Peter Waal, Lions Gate Entertainment
Corp.
(604) 609-6114, fax (604) 609-6145; MEDIA RELATIONS (Los Angeles):
Richard
Licata, Rogers & Cowan (310) 201-8825/
(LGF. LGF) |
