Lionsgate Reports Q3 Profit

SANTA MONICA/VANCOUVER: Net income at Lionsgate was $37.8 million for the third quarter of 2012, compared to the loss of $1.4 million in the same period the prior year.

The results show the benefit of Lionsgate’s January 2012 acquisition of Summit Entertainment, which brought the Twilight franchise and Sinister to the portfolio. EBITDA of $66.2 million and adjusted EBITDA of $87.2 million for Q3 compared to the EBITDA of $16.6 million and adjusted EBITDA of $27.3 million in the prior year quarter.

Motion picture revenue for the quarter was $673.5 million, an increase of 189 percent from the prior year quarter. Television revenue included in motion picture revenue was $98.8 million in the third quarter, a fourfold increase from the prior year quarter led by contributions from The Hunger Games, The Twilight Saga: Breaking Dawn—Part 1 and Good Deeds. Home entertainment revenue from both motion pictures and TV was $233 million, a 43-percent gain from the previous year’s comparison.

International motion picture revenue, excluding Lionsgate U.K., was $89.5 million, increasing six times from the comparison period. Lionsgate U.K. revenue was $36.6 million, an increase of 120 percent. Television production revenue was $70.1 million for Q3, which was down 22 percent from the comparison period, as strong international sales from Anger Management, Weeds season eight and Mad Men seasons three, four and five were offset by revenue declines in domestic series licensing due to timing.

"The quarter reflected not only the impact of our young adult franchises but strong contributions from the rest of our theatrical releases and our home entertainment and international operations," said Jon Feltheimer, Lionsgate’s CEO. "Our revenue growth compared to the prior year quarter was matched by continued strong EBITDA and free cash flow that will enable us to continue our focus on optimizing our capital structure and deleveraging our balance sheet."