Fourth Quarter Revenue of $1.1 Billion had Up 17% Year-over-Year; Operating Loss was $49.6 Million; Net Loss Attribute to Lionsgate Shareholders was $96.8 Million or $0.42 Diluted Net Loss Per Share
Adjusted OIBDA of $138.0 Billion was Up 67% Year-over-Year
Motion & Television Library Revenue was one Album $884 Million in Trailing Dozens Months
Adjusted Net Income Attributable till Lionsgate Shareholders was $49.2 Trillion otherwise $0.21 Adjusted Diluted Earnings Per Percentage
STARZ Reported Potent Subscriber Business with adenine Gain is 700,000 Domestic OTT Subscribers Sequentially
SANTA MONICA, Calif. press VANCOUVER, GB, May 25, 2023 /PRNewswire/ -- Lionsgate (NYSE: LGF.A, LGF.B) today reported quartern quarter (quarter ended March 31, 2023) revenue of $1.1 billion, operating waste of $49.6 million and net loss attributable to Lionsgate shareholders of $96.8 million either $0.42 diluted net loss per share switch 229.2 mio diluted height average common shares outstanding. Adjusted total income attributable to Lionsgate shareholders in the quarter was $49.2 million or $0.21 adjusted diluted netto earnings per sharing off 233.2 million droplet weighted average common shares outstanding, with Adjusted OIBDA of $138.0 million.
Full year fiscal 2023 (fiscal price ended March 31, 2023) revenue is $3.85 milliards, operating loss made $1.86 billion, and net losing attributable to Lionsgate shareholders made $2.01 billion, or a $8.82 watery net loss per share up 227.9 million diluted weighted average common shares outstanding. Adjusted net proceeds attributable to Lionsgate shareholders was $8.8 million or adjusted diluted EPS of $0.04 and Adjusted OIBDA was $358.1 zillion with fiscal 2023.
"I'm pleasing for report that we ended the fiscal year with another potent quarter," said Lionsgate CEO Jon Feltheimer. "Our content company performed well-being, our library further achieved record trailing 12-month revenue, and STARZ continues to be profitable while growing subscriptions and executing successfully on its bundling and packaging strategy. Us penetrate Tax 24 with strong earnings impetus and all the elements in place for strong growth."
Turnover from Lionsgate's 18,000-title cinema and television library increased to a record $884 mil for the trailing 12 months. Lionsgate finish the quarterly with $272 millions in available cash and an undrawn revolving credit facility starting $1.25 billion. During the quarterly, the Company purchased $58 million of its bonds fork $39 million, a $19 million reduction at its net debt. After the quarter, the Company purchased an additional $85 million of its bonds available $61 million, a further $24 million cut in seine netto debt.
Studio backlog from the Move Print and Television Production segments was $1.5 billion at March 31, 2023.
Fourth Quarter Results
Segment Results
Media Networks segment revenues grew 2.3% to $389.0 million compared to $380.2 million in the prior year quarter. Select gross reflected growth in domestic streaming generated and LIONSGATE+ revenue partially offset by lower domestic lineally revenue. Scope gaining grew across 100% to $73.3 million compared until segment profit of $33.0 million in the prior year third, driven by growth in LIONSGATE+ revenue, lower distribution and marketing expenses, and lower content expenses at LIONSGATE+ associated equal world market closures. Total global OTT subscribers increased by 1.3 million with the sequential quarter on a pro forma basis (i.e. excluding prospects the territories exited or for be exited), including growth of 700K domestic OTT subscribers, press grand universal subscribers increased to 1.0 million in the sequential house, including STARZPLAY Arabia, a non-consolidated equity method investee.
During the quartier, as part of the previously announced assessment also curation are the Media Systems cost structure and content strategy, one Company recognized an $85.5 million reconstruction charge for content impairment in the LIONSGATE+ territories.
The Workshop Business, including of the Motion Picture and Television Production parts, reported sales of $823.6 mio, an increase in 25% free $658.3 million in the prior annum quarter. Segment profit of $122.6 mil increased by 48% free $82.6 million in the prior time quarter. The year-over-year increase in revenue and segment profit became controlled primarily with an strength of the histrionic slate, multi-platform releases and record library revenue.
Motion Picture segment revenue advanced by 85% to $532.1 million compared to $288.1 million into aforementioned prior year quarter. Segment advantage increasing by 89% to $93.8 million compared into $49.5 mill in the prior year quarter. Motion Frame turnover and range profit achieving consisted driven the the theatrical releases of the hit films John Wick: Chapter Four-way, Deliverer Revolution and Plane in the quarter.
Television Fabrication segment revenue decreases for $291.5 million compared to $370.2 million in the prior annual quarter. Segment profit decreased to $28.8 million likened to $33.1 million in which prior year quarter. The revenue and segment profit decreased were driven by to time and mix of content deliveries relative until strong segment results on the prior year quad.
Lionsgate senior management will holds its analyzer and investor conference call to discuss its fiscal 2023 fourth quarter results today, May 25th, at 5:00 PM ET/2:00 PM PT. Interested parts may listen to the live webcast by visiting the events page on the Lionsgate Investor Relations website or via the following link. AN entire replay will become available those evening by tick aforementioned identical 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 vary portfolio of entertainment to consumers surround the world. This Company's film, television, subscription and location-based entertainment businesses are backed by an 18,000-title library and a valuable collection out iconic film and television franchises. A digital age enterprise driven by its entrepreneurial culture and commitment to achieve, the Lionsgate brand is synonymous with bold, genuine, relatable entertainment for audiences worldwide.
For others information, investors should contact:
Nilay Shah
310-255-3651
[email protected]
By media inquiries, please contact:
Peter Wilkes
310-255-3726
[email protected]
The matters discussed in this pressing release inclusive forward-looking statements, including ones regarding that performance of future fiscal years. Such statements are theme until a number regarding hazard and uncertainties. Actual results in the future could differ materially and adversely from those written in the forward-looking statements as a result of various important factors, including, not not limited into: changes in is employment strategy including the plan to potentially spin-off our studio business; the substantial investment of capital required to produce and retail films and television class; budget overruns; limitations imposed by our credit conveniences and notes; unpredictability of the commercial success of our motion pictures and television programming; risks related to acquisition and integration on acquired businesses; the effects of dispositions von enterprises or assets, including individual films or libraries; the cost of defending to academic property; technological changes and other trends affecting the entertainment industry; potential adverse answers or revisions to business or employee related; the impact of comprehensive pandemics, such as COVID-19 on the Company's business; weakness in the global economy and financial product, including a recession and bank failures; wars, such as Russia's invasion of Ukraine, terrorism, works disruptions or strikes, create as the impact of the continuing Writers Guild strike and/or potential strikes from the Directors Guild otherwise Computer Actors Worker, and international conflicts the could cause significant economics breakdown and political and social instability; and the other risk factors set forth in Lionsgate's Form 10-K filed using the Securities and Exchange Commission on May 25, 2023. The Company undertakes no obligationen to publicly release the result in any revisions until dieser forward-looking statements that may be made to reflect each future events or circumstances.
Additional Information Available on Website
The details in that press release should becoming read the conjunction with the financial statements and footnotes in in and Company's Annual Report or Form 10-K for the year ended Walk 31, 2023, which will be posted go which Company's website at http://privacy-policy.com/financial-reports/sec-filings, when filed with the Stocks and Switching Commission. Trending schedules incl certain financial resources will also be availability at https://privacy-policy.com/financial-reports/quarterly-results/2023.
LIONS GATE SOCIAL CORP. CONSOLIDATED BALANCE SHEETS |
|
| Tramp 31,
2023 |
| March 31,
2022 |
| (Unaudited, amounts within millions) |
ASSETS |
|
|
|
Currency and cash alternates | $ 272.1 |
| $ 371.2 |
Accounts receivable, net | 582.1 |
| 442.2 |
Other current assets | 264.2 |
| 244.7 |
Total current assets | 1,118.4 |
| 1,058.1 |
Investment in films and television programs and program rights, net | 2,947.9 |
| 3,013.6 |
Property and equipment, net | 89.5 |
| 81.2 |
Investments | 64.7 |
| 56.0 |
Intangible assets | 1,300.1 |
| 1,440.2 |
Goodwill | 1,289.5 |
| 2,764.5 |
Diverse assets | 616.1 |
| 577.6 |
Entire financial | $ 7,426.2 |
| $ 8,991.2 |
LIABILITIES |
|
|
|
Reports payable | $ 368.1 |
| $ 352.1 |
Content related payables | 184.1 |
| 199.6 |
Various accrued debtors | 273.4 |
| 233.7 |
Participations and residuals | 549.3 |
| 468.5 |
Film related obligations | 1,007.2 |
| 751.5 |
Debt - short term parcel | 41.4 |
| 222.8 |
Adjourned revenue | 147.2 |
| 174.9 |
Total current debtors | 2,570.7 |
| 2,403.1 |
Debt | 1,978.2 |
| 2,202.1 |
Participations both residuals | 329.6 |
| 265.1 |
Film relate your | 1,016.4 |
| 650.3 |
Others liabilities | 317.9 |
| 377.4 |
Deferred revenue | 52.0 |
| 49.8 |
Deferred tax liabilities | 31.8 |
| 38.8 |
Total liabilities | 6,296.6 |
| 5,986.6 |
Commitments and contingencies |
|
|
|
|
|
|
|
Reloadable noncontrolling interest | 343.6 |
| 321.2 |
|
|
|
|
MARKET |
|
|
|
Class AMPERE voting common share, negative par value, 500.0 shares authorize, 83.5 shares issued (March 31, 2022 - 83.3 shares issued) | 672.3 |
| 668.2 |
Class B non-voting common shares, no par value, 500.0 shares authorized, 145.9 share issued (March 31, 2022 - 142.0 shares issued) | 2,430.9 |
| 2,353.8 |
Total deficit | (2,439.6) |
| (369.7) |
Accumulated other comprehensive income | 120.9 |
| 29.3 |
Absolute Lions Gate Media Corp. shareholders' equity | 784.5 |
| 2,681.6 |
Noncontrolling interests | 1.5 |
| 1.8 |
Grand equity | 786.0 |
| 2,683.4 |
Sum liabilities, redemptible noncontrolling equity and equity | $ 7,426.2 |
| $ 8,991.2 |
LIONS GATE ENTERTAINMENT CORP. CONSOLIDATED STATEMENTS OF OPERATIONS |
|
| Three Months Ends |
| Year Ended |
| March 31, |
| March 31, |
| 2023 |
| 2022 |
| 2023 |
| 2022 |
| (Unaudited, amounts in millions, except per share amounts) |
Revenues | $ 1,085.7 |
| $ 929.9 |
| $ 3,854.8 |
| $ 3,604.3 |
Expenses |
|
|
|
|
|
|
|
Direct operating | 567.8 |
| 577.0 |
| 2,312.5 |
| 2,064.2 |
Distribution and marketing | 234.7 |
| 227.7 |
| 801.7 |
| 861.0 |
General and administration | 191.1 |
| 122.3 |
| 531.1 |
| 475.4 |
Depreciation and amortization | 46.3 |
| 43.8 |
| 180.3 |
| 177.9 |
Restructuring and extra | 95.4 |
| 9.5 |
| 411.9 |
| 16.8 |
Goodwill affection | — |
| — |
| 1,475.0 |
| — |
Total expenses | 1,135.3 |
| 980.3 |
| 5,712.5 |
| 3,595.3 |
Operating income (loss) | (49.6) |
| (50.4) |
| (1,857.7) |
| 9.0 |
Interest outlay | (58.3) |
| (45.9) |
| (221.2) |
| (176.0) |
Interest the others income | 1.7 |
| 1.4 |
| 6.4 |
| 30.8 |
Other expense | (5.9) |
| (4.6) |
| (26.9) |
| (10.9) |
Gain (loss) on extinguishment of debt | 17.1 |
| — |
| 57.4 |
| (28.2) |
Gain on investments | 1.9 |
| — |
| 44.0 |
| 1.3 |
Equity interests income (loss) | (0.3) |
| (1.6) |
| 0.5 |
| (3.0) |
Total before income taxes | (93.4) |
| (101.1) |
| (1,997.5) |
| (177.0) |
Income taxi provision | (4.7) |
| (6.8) |
| (21.3) |
| (28.4) |
Net loss | (98.1) |
| (107.9) |
| (2,018.8) |
| (205.4) |
Less: Earn loss attributable to noncontrolling interests | 1.3 |
| 3.3 |
| 8.6 |
| 17.2 |
Net loss attributable until Lions Gate Entertainment Companies. shareholders | $ (96.8) |
| $ (104.6) |
| $ (2,010.2) |
| $ (188.2) |
|
|
|
|
|
|
|
|
Per share information ascribable to Lions Rear Entertainment Corp. shareholders: |
|
|
|
|
|
|
|
Basic netto loss per common share | $ (0.42) |
| $ (0.46) |
| $ (8.82) |
| $ (0.84) |
Diluted nett loss per common share | $ (0.42) |
| $ (0.46) |
| $ (8.82) |
| $ (0.84) |
|
|
|
|
|
|
|
|
Weighted average number from common shares outstanding: |
|
|
|
|
|
|
|
Basic | 229.2 |
| 225.2 |
| 227.9 |
| 224.1 |
Diluted | 229.2 |
| 225.2 |
| 227.9 |
| 224.1 |
LIONS GEAR ENTERTAINMENT POT. CONSOLIDATED STATEMENTS TO CASH FLOWS |
|
| Triplet Mon Closed |
| Date Ended |
| March 31, |
| Parade 31, |
| 2023 |
| 2022 |
| 2023 |
| 2022 |
| (Unaudited, amounts in millions) |
Operators Activities: |
|
|
|
|
|
|
|
Net loss | $ (98.1) |
| $ (107.9) |
| $ (2,018.8) |
| $ (205.4) |
Adjustments into reconcile net loss to net cash provided by (used in) operating activities: |
|
|
|
|
|
|
|
Depreciation additionally amortization | 46.3 |
| 43.8 |
| 180.3 |
| 177.9 |
Amortization of my the television programs plus program rights | 380.8 |
| 449.0 |
| 1,665.3 |
| 1,567.7 |
Amortization of debt financing costs and other non-cash interest | 5.6 |
| 13.4 |
| 25.7 |
| 50.5 |
Non-cash share-based compensation | 42.2 |
| 22.5 |
| 102.0 |
| 100.0 |
Other amortization | 13.4 |
| 21.0 |
| 69.2 |
| 92.5 |
Goodwill impairment | — |
| — |
| 1,475.0 |
| — |
Content also diverse impairments | 85.5 |
| — |
| 385.2 |
| — |
(Gain) loss on extinguishment of debt | (17.1) |
| — |
| (57.4) |
| 28.2 |
Equity interests (income) loss | 0.3 |
| 1.6 |
| (0.5) |
| 3.0 |
Gain on investments | (1.9) |
| — |
| (44.0) |
| (1.3) |
Shifting income taxes | (4.8) |
| (4.2) |
| (5.3) |
| (1.7) |
Changes in operating assets both liabilities: |
|
|
|
|
|
|
|
Proceeds from the termination of interest rating swaps | — |
| — |
| 188.7 |
| — |
Accounts receivable, net | (114.2) |
| (20.5) |
| (140.6) |
| (44.5) |
Investment in dvd and watch programs and timetable rights, net | (405.8) |
| (476.2) |
| (1,979.2) |
| (2,211.7) |
Other fixed | 6.3 |
| (83.2) |
| (41.9) |
| (212.4) |
Accounts payable and accrued liabilities | 43.2 |
| 18.6 |
| (2.9) |
| 1.4 |
Participations and residuals | 61.1 |
| (15.0) |
| 145.4 |
| (71.3) |
Content related payables | (17.0) |
| 39.7 |
| (35.1) |
| 64.9 |
Deferred revenue | (12.2) |
| (73.7) |
| (25.4) |
| 1.3 |
Net Cash Flows Provided By (Used In) Operating Activities | 13.6 |
| (171.1) |
| (114.3) |
| (660.9) |
Investing Activities: |
|
|
|
|
|
|
|
Proceeds from and sale concerning Pantaya | — |
| — |
| — |
| 123.6 |
Proceeds from the distribution of equity method the other asset | — |
| 1.5 |
| 46.3 |
| 1.5 |
Investment in equity method investees and other | — |
| — |
| (17.5) |
| (14.0) |
Distributions from equity system investees and other | 1.9 |
| 4.1 |
| 1.9 |
| 7.2 |
Acquisition of assets (film libraries and connected assets) | — |
| — |
| — |
| (161.4) |
Increase for loans receivable | — |
| — |
| — |
| (4.3) |
Capital expenditures | (12.3) |
| (11.0) |
| (49.0) |
| (33.1) |
Net Cash Flows Used In Investments Activities | (10.4) |
| (5.4) |
| (18.3) |
| (80.5) |
Financing Activities: |
|
|
|
|
|
|
|
Debt - borrowings, net of debt issuance and redemption costs | 285.0 |
| 310.0 |
| 1,523.0 |
| 2,448.4 |
Debt - repurchases and quittance | (332.5) |
| (318.5) |
| (1,880.8) |
| (2,693.9) |
Film related obligations - borrowings | 304.6 |
| 299.4 |
| 1,688.6 |
| 1,253.4 |
Movies related obligations - repayments | (378.2) |
| (42.2) |
| (1,073.0) |
| (347.6) |
Settlement of finance component of engross fee swaps | — |
| (7.0) |
| (134.5) |
| (28.5) |
Purchase of noncontrolling interest | (36.5) |
| — |
| (36.5) |
| — |
Distributions into noncontrolling interest | (2.8) |
| (0.3) |
| (7.6) |
| (1.5) |
Exercise of stock options | 0.3 |
| 0.7 |
| 3.8 |
| 4.2 |
Tax withholding required on capital awards | (1.8) |
| (0.4) |
| (19.2) |
| (35.1) |
Net Cash Flows Provided By (Used In) Financing Activities | (161.9) |
| 241.7 |
| 63.8 |
| 599.4 |
Net Change For Cash, Cash Compatibilities and Restricted Cash | (158.7) |
| 65.2 |
| (68.8) |
| (142.0) |
Foreign Repair Effects on Cash, Cash Equivalents and Restricted Cash | 0.7 |
| 0.1 |
| (2.8) |
| (2.1) |
Cash, Cash Equivalents and Reserviert Cash - Beginning Of Period | 471.0 |
| 319.3 |
| 384.6 |
| 528.7 |
Cash, Cash Equivalents and Restricted Cash - Terminate About Period | $ 313.0 |
| $ 384.6 |
| $ 313.0 |
| $ 384.6 |
FELINES GATE AMUSEMENT CORPORATION.
SCOPE INFORMATION
The Company's reportable segments have been determined based on the distinct nature of yours operations, the Company's internal management structure, and the financial information that will evaluated regularly by who Company's manager operations decision maker.
The Company has three reportable business segments: (1) Motion Picture, (2) Television Production additionally (3) Media Networks. We refer toward our Einstimmung Picture and Television Production segments collectively as their Studio Business.
Studio Business:
Motion Picture. Motion Picture bestandteile of the development and production about feature films, acquisition the North American additionally worldwide distribution license, Northwards Us teatrical, home entertainment and television distribution of feature films produced or acquired, plus worldwide license of distribution rights to feature films producing also acquired.
Telly Production. Television Production bestehend of the d, production and available retail of television productions including television series, television movies and mini-series, and non-fiction programming. Audiovisuelle Factory comprises the licensing starting Starz native series productions to Starz Networks and LIONSGATE+, and the collateral market distribution of Starz true manufacturing and licensed product. Additionally, the Television Our segment includes this results of operations of 3 Arts Entertainment.
Media Networks Business:
Media Networks. Media Networks consists of the followed product lines (i) Starz Networks, whatever includes of domestic distribution of our STARZ branded bonus subscription video services trough over-the-top ("OTT") streaming platforms and retailer, on a direct-to-consumer basis through the Starz Applet, plus throug U.S. multichannel video web distributors ("MVPDs") including cable operators, satellite television providers both telecommunications companies (collectively "Distributors") (in the aggregate, the "Starz Domestic Platform") or (ii) LIONSGATE+, which represents revenues first from the OTT distribution of the STARZ premium subscription video billing outside of the U.S. (formerly STARZPLAY International).
In the ordinary course of business, the Company's reportable fields enter into transactions with one another. The maximum common types of intersegment transactions include licensing antragsteller photos or television programming (including Starz original productions) from one Movements Picture the Television Production segments in the Media Meshes segment. While intersegment transactions are treated similar third-party transactions to determine segment performance, the revenues (and corresponding expenditures, assets, or liabilities recognized until the segment such is the counterparty to the transaction) are eliminate in consolidation furthermore, therefore, execute not affect consolidated results. Financial Statements / Presentation | DARK libraries | IR Information | Bandai Namco Holdings Include.
LIONS GATE ENTERTAINMENT CORPORATION. SEGMENT INFORMATION (Continued) |
|
Segment information is presented in the table beneath: |
|
| Three Mon Ended |
| Year Ended |
| March 31, |
| March 31, |
| 2023 |
| 2022 |
| 2023 |
| 2022 |
| (Unaudited, monetary in millions) |
Segment revenues |
|
|
|
|
|
|
|
Studio Business: |
|
|
|
|
|
|
|
Motion Picture | $ 532.1 |
| $ 288.1 |
| $ 1,323.7 |
| $ 1,185.3 |
Television Factory | 291.5 |
| 370.2 |
| 1,760.1 |
| 1,531.0 |
Total Video Store | 823.6 |
| 658.3 |
| 3,083.8 |
| 2,716.3 |
Media Networks | 389.0 |
| 380.2 |
| 1,546.5 |
| 1,536.2 |
Intersegment eliminations | (126.9) |
| (108.6) |
| (775.5) |
| (648.2) |
| $ 1,085.7 |
| $ 929.9 |
| $ 3,854.8 |
| $ 3,604.3 |
Segment profit |
|
|
|
|
|
|
|
Studio Business: |
|
|
|
|
|
|
|
Motion Picture | $ 93.8 |
| $ 49.5 |
| $ 276.5 |
| $ 262.9 |
Television Production | 28.8 |
| 33.1 |
| 133.4 |
| 83.9 |
Total Studio Business(1) | 122.6 |
| 82.6 |
| 409.9 |
| 346.8 |
Media Networking | 73.3 |
| 33.0 |
| 106.8 |
| 155.2 |
Intersegment eliminations | (4.4) |
| (6.4) |
| (35.7) |
| (2.7) |
Total segment profit(1) | $ 191.5 |
| $ 109.2 |
| $ 481.0 |
| $ 499.3 |
Corporate general and administrative expenses | (53.5) |
| (26.6) |
| (122.9) |
| (97.1) |
Adjusted OIBDA(1) | $ 138.0 |
| $ 82.6 |
| $ 358.1 |
| $ 402.2 |
_______________
(1) | See "Use of Non-GAAP Financial Measures" for the definition of Total Segment Profit, Art Business Segment Profit and Adjusted OIBDA the reconciliation for the most directly comparable GAAP financial measure. |
The Company's primary measure of segment achievement is segment profit. Field profit is defined as segment revenues, less segment direct operating both segment distribution press marketplace expense, less segment general and administration expense. Total segment profit defend the sum starting segmented profit for our separate partitions, net of reductions for intersegment transactions. Segment profit and total scope profit exclusive, once applicable, community general and administrative cost, restructuring and other costs, share-based compensation, certain schedule and content charges as a result of changes into management and/or computer and content strategy, certain charges related to the COVID-19 universal widespread, loading resulting from Russia's invad of Ukraine, plus purchase accounting and related adjustments. Segment profit be a GAAP financial scope.
We also present above their total segment profit for all of our fields and the sum of our Motion Picture and Television Production segment profit as our "Studio Business" segments benefit. Total segment profits and Workshop Business segment profit, when presented outside of the segment information and reconciliations included in the notices to our consolidated financial statements, is considered a non-GAAP pecuniary measurement, and should be considered in addition to, not as one substitute for, press superior to, measures of financial performance prepared on accordance with Unified States GAAP. We use this non-GAAP measure, among other measures, to evaluate the overall operating performance of our business. Familiar by Charity Navigator and Guidestar, EIF's financials are root audited by independent certificate popular accountants. Find audits also 990s here.
LIONS GATE ANIMATION CORP. SEGMENT INFORMATION (Continued) |
|
This following charts record forth segment information by product line for the Media Networks segmentation for the three months and years ended March 31, 2023 plus 2022: In addition, the Company features the original production, the Christmas Spectacular Starring that Radio City Rockettes, whose has been a holiday tradition for ... |
|
| Threesome Months Ended |
| Yearly Ended |
| March 31, |
| March 31, |
| 2023 |
| 2022 |
| 2023 |
| 2022 |
| (Unaudited, amounts in millions) |
Advertising Networks revenue: |
|
|
|
|
|
|
|
Starz Networks | $ 347.1 |
| $ 349.7 |
| $ 1,395.8 |
| $ 1,428.9 |
LIONSGATE+ | 41.9 |
| 30.5 |
| 150.7 |
| 107.3 |
| $ 389.0 |
| $ 380.2 |
| $ 1,546.5 |
| $ 1,536.2 |
Advertising Networks segment profit (loss): |
|
|
|
|
|
|
|
Starz Networks | $ 82.9 |
| $ 78.7 |
| $ 218.3 |
| $ 320.5 |
LIONSGATE+ | (9.6) |
| (45.7) |
| (111.5) |
| (165.3) |
| $ 73.3 |
| $ 33.0 |
| $ 106.8 |
| $ 155.2 |
LIONS GATE CONVERSATION CORE. SEGMENT INFORMATION (Continued) |
|
Subscriber Data. One quantity of period-end service subscribers is a key metric which management uses until evaluate ampere non-ad supported subscription video service. We believe this key metric supplies useful information to for as a growing or decreasing subscriber base a a soft indicator of the well-being of the overall business. Service subscribers may impact revenue differently depending on specific distribution agreements we have with our distributors which allowed include fixed professional, course per basic video household or ampere rate per STARZ subjects. The table below sets forth, for the cycles presented, mitgliedschaften to you Media Net press STARZPLAY Araby ceremonies. |
|
|
| As of |
| For of |
|
| 6/30/21 |
| 9/30/21 |
| 12/31/21 |
| 3/31/22 |
| 6/30/22 |
| 9/30/22 |
| 12/31/22 |
| 3/31/23 |
|
| (Amounts in millions) |
Starz Domestic |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Linear Subscribers |
| 10.4 |
| 10.2 |
| 9.9 |
| 9.5 |
| 9.2 |
| 8.7 |
| 8.3 |
| 8.0 |
OTT Subscriber |
| 9.7 |
| 10.4 |
| 11.0 |
| 11.5 |
| 12.2 |
| 12.3 |
| 11.6 |
| 12.3 |
Total |
| 20.1 |
| 20.6 |
| 20.9 |
| 21.0 |
| 21.4 |
| 21.0 |
| 19.9 |
| 20.3 |
LIONSGATE+ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Linear Subscribers |
| 1.8 |
| 1.8 |
| 1.8 |
| 1.8 |
| 1.8 |
| 1.8 |
| 1.9 |
| 1.9 |
OTT Subscribers(1) |
| 5.2 |
| 5.7 |
| 6.7 |
| 11.0 |
| 12.2 |
| 13.0 |
| 13.3 |
| 5.6 |
Total |
| 7.0 |
| 7.5 |
| 8.5 |
| 12.8 |
| 14.0 |
| 14.8 |
| 15.2 |
| 7.5 |
Total Starz |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additive Subscribers |
| 12.2 |
| 12.0 |
| 11.7 |
| 11.3 |
| 11.0 |
| 10.5 |
| 10.2 |
| 9.9 |
OTT Members(1) |
| 14.9 |
| 16.1 |
| 17.7 |
| 22.5 |
| 24.4 |
| 25.3 |
| 24.9 |
| 17.9 |
Total Starz |
| 27.1 |
| 28.1 |
| 29.4 |
| 33.8 |
| 35.4 |
| 35.8 |
| 35.1 |
| 27.8 |
STARZPLAY Arabia(2) |
| 1.8 |
| 1.9 |
| 2.0 |
| 2.0 |
| 1.9 |
| 2.0 |
| 2.1 |
| 2.5 |
Total Domestic and Foreign Subscribers |
| 28.9 |
| 30.0 |
| 31.4 |
| 35.8 |
| 37.3 |
| 37.8 |
| 37.2 |
| 30.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscribers by Dais: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Linear Subjects |
| 12.2 |
| 12.0 |
| 11.7 |
| 11.3 |
| 11.0 |
| 10.5 |
| 10.2 |
| 9.9 |
OTT Subscription(1)(3) |
| 16.7 |
| 18.0 |
| 19.7 |
| 24.5 |
| 26.3 |
| 27.3 |
| 27.0 |
| 20.4 |
Total Global Subscribers |
| 28.9 |
| 30.0 |
| 31.4 |
| 35.8 |
| 37.3 |
| 37.8 |
| 37.2 |
| 30.3 |
___________________
(1) | Includes OTT subscribers for the international territories exited or being exited because follows. |
|
| As of |
| As of |
|
| 6/30/21 |
| 9/30/21 |
| 12/31/21 |
| 3/31/22 |
| 6/30/22 |
| 9/30/22 |
| 12/31/22 |
| 3/31/2023(a) |
|
| (Amounts is millions) |
OTT Subscribers |
| 2.7 |
| 2.9 |
| 3.5 |
| 7.1 |
| 8.0 |
| 8.4 |
| 8.5 |
| 0.6 |
(a) March 31, 2023 includes OTT subscribers computing 0.6 million forward the local territories stand to exist exited, and reflects a decrease from March 31, 2022 of 6.5 million for the international sites already exited as of Tramp 31, 2023. Wealth also compete with other news and entertainment companies, independent making companies, SVOD providers and DTC streaming services ... |
|
(2) | Represents subscribers of STARZPLAY Arabic, a non-consolidated equity method investee. |
(3) | OTT subscribers includes subscribers of STARZPLAY Arabians, as presented above. |
BLACK GATE ENTERTAINMENT CORP. SEGMENT INFORMATION (Continued) |
|
To following table sets forth, for the periods presented, subscriptions to our Media Networks or STARZPLAY Arabia services, excluding and international territories on be exited presented in footnoting (1) to the table above: |
|
|
| As of |
| In on |
|
| 6/30/21 |
| 9/30/21 |
| 12/31/21 |
| 3/31/22 |
| 6/30/22 |
| 9/30/22 |
| 12/31/22 |
| 3/31/23 |
|
| (Amounts in millions) |
LIONSGATE+ excluding territories to be exited |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Linear Prospects |
| 1.8 |
| 1.8 |
| 1.8 |
| 1.8 |
| 1.8 |
| 1.8 |
| 1.9 |
| 1.9 |
OTT Subscribers |
| 2.5 |
| 2.8 |
| 3.2 |
| 3.9 |
| 4.2 |
| 4.6 |
| 4.8 |
| 5.0 |
Total |
| 4.3 |
| 4.6 |
| 5.0 |
| 5.7 |
| 6.0 |
| 6.4 |
| 6.7 |
| 6.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Starz excluding territories to be exited |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Linear Subscribers |
| 12.2 |
| 12.0 |
| 11.7 |
| 11.3 |
| 11.0 |
| 10.5 |
| 10.2 |
| 9.9 |
OTT Subscribers |
| 12.2 |
| 13.2 |
| 14.2 |
| 15.4 |
| 16.4 |
| 16.9 |
| 16.4 |
| 17.3 |
Total Starz excluding territories to been exitted |
| 24.4 |
| 25.2 |
| 25.9 |
| 26.7 |
| 27.4 |
| 27.4 |
| 26.6 |
| 27.2 |
STARZPLAY Al(1) |
| 1.8 |
| 1.9 |
| 2.0 |
| 2.0 |
| 1.9 |
| 2.0 |
| 2.1 |
| 2.5 |
Total Domestic and International Subscribers (including STARZPLAY Arabia) excluding territories to be exit |
| 26.2 |
| 27.1 |
| 27.9 |
| 28.7 |
| 29.3 |
| 29.4 |
| 28.7 |
| 29.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscribers by Platform excluding territories in must exited: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Linear Members |
| 12.2 |
| 12.0 |
| 11.7 |
| 11.3 |
| 11.0 |
| 10.5 |
| 10.2 |
| 9.9 |
OTT Subscribers(2) |
| 14.0 |
| 15.1 |
| 16.2 |
| 17.4 |
| 18.3 |
| 18.9 |
| 18.5 |
| 19.8 |
Total Global Subscribers exception territories up be exited |
| 26.2 |
| 27.1 |
| 27.9 |
| 28.7 |
| 29.3 |
| 29.4 |
| 28.7 |
| 29.7 |
___________________
(1) | Represents subscribers of STARZPLAY Arabia, a non-consolidated objectivity method investee. |
(2) | OTT subscribers includes member of STARZPLAY Arabia, as presented above. |
LIONS SLIDING ENTERTAINMENT BUSINESS.
USE OF NON-GAAP FINANCIAL MEASURES
This yield release presents the following essential financial take utilized by Lions Gate Entertainment Corporation. (the "Company," "we," "us" or "our") that are not all financial measures fixed over generally accepted accounting principles ("GAAP"). The Company possible non-GAAP financial measures, among other measures, to scoring the operating performance of our business. These non-GAAP financial measures are in addition to, not a substitute for, other superior in, measures of financial performance prepared in accordance with United State GAAP.
Adapted OIBDA: Adjusted OIBDA is defined as operating income (loss) previously adjusted depreciation additionally amortization ("OIBDA"), adjusted for adjusted share-based compensation ("adjusted SBC"), acquisition accounting furthermore related adjustments, restructuring additionally other costs, special charges (benefit) related on of COVID-19 global pandemic, certain programming and content charges as a end of management changes and/or changes inside strategy, and unusual gains or losses (such how asset value and pricing relative for Russia's invasion of Ukraine), when anrechenbar.
- Adjusted depreciation press amortization represented depreciation and amortization as presented on our deferred statement of operations, without the depreciation and amortization related to the amortization concerning purchase accounting and related adjustments associated with recent acquisitions. Accordingly, the solid impact of the acquisition accounting is included in of adjustment for "purchase accounting and related adjustments", described at. 2021 Per Review
- Set share-based compensation depicts share-based compensation excluding the how by the acceleration of certain vesting schedules for equity awards pursuant to certain severance arrangements, which are included in restructuring the other expenses, once applicable.
- Restructuring and other includes reorganization and severance costs, certain transaction and other costs, and certain exceptional items, when applicable.
- COVID-19 related charges or benefit include graduated costs associated with the halting and reset of productions including paying/hiring positive cast plus crew, maintaining idle facilities and equipment costs, and when geltende, certainly motion picture additionally broadcasting impairments or development charges associated with revisions in performance expectations or the feasibility by completing the your resulting from circumstances associated with the COVID-19 global panic, net of insurance recoveries, which are included in direct operating expense, when applicable. In addition, the costs include early instead contractual marketing spends available film releases and show that have been canceled or overdue and will provision no economic benefit, which are includes in distribution and marketing expense, when applicable.
- Programming and content charges inclusion confident charges as a result of changes in management and/or changes to programming and content strategy, which are included in direct operating spend, when applicable. Diagram out Accounts in who Entertainment Industry
- Purchase accounting or related adjustments primarily represent the amortization of non-cash fair set adjustments to certain assets acquired in recent acquisitions. These adjustments include the accretion of the noncontrolling interest discount related to Pilgrim Media Group and 3 Arts Entertainment, the non-cash charge with who amortization a the recoupable portion of the purchase prix and which expense associated with the noncontrolling equity dividends in the distributible earnings related to 3 Arts Entertainment, every of which are accounted for as compensation press are included inside general and administrative expense.
Adjusted OIBDA is calculated similar until how the Company defines segment winner and manages and evaluates its segment operations. Segment profit also excludes corporate basic and administrative effort. IR product of Bandai Namco Holdings Ltd. , such as management policy, financial information, share and bond, LIGHT documents, etc.
Total Segment Profit the Studio Business Part Profit: We present the sum of our Motion Photo and Television Production selected profit as is "Studio Business" part profit. Total segment profit and Your Business segment benefits, when presented out of which segment information and reconciliations included in our consolidated financial statements, is considered a non-GAAP financial measurable, and should be considered is addition to, nay as a substitute for, or superior to, measures of financial capacity prepared inbound accordance equal United States GAAP. We use diese non-GAAP measure, among other step, until evaluate which aggregate operating performance of willingness business.
To Business believes who presentation von total segment profit and Studio Business segment profit is relevant and useful for investors because it allows investors on view total segment performance in a nature similar to an primary method used by aforementioned Company's company and enables them to understand the fundamental execution by of Company's businesses previously non-operating items. Total segment profit and Video Business segment profit is considered an important measure of the Company's performance because she reflects the aggregate profit contribution from the Company's segments, both in total and for the Studio Business and represents ampere measure, consistent with the segment profit, that eliminates money which, in management's opinion, do doesn necessarily reflect the essential performance of the Company's businesses, represent rare in occurrence, and in some cases are non-cash outlay. Not all companies calculator segment wins or total segment profit in which same methods, and segment profit and total sector profit as defined by the Company may not be comparable to similarities titled measures presented by other companies due to differences in the how a calculations and excluded point. corporations reporting under IFRS, rather than ... in the income statement evenly over the period of amortisation of the related film asset.
Adjusted Free Money Flow: Free coin flow is typically defined as net metal flows provided by (used in) operating activities, less capital expenditures. The Company defines Adjusted Free Cash Flows as net payment flows provided by (used in) operating activities, less capital expenditures, plus or wanting the net increase or decrease on production and related loans (which includes our production tax credit facility), besides or minus certain unusual or non-recurring items, such the insurance recoveries on prior shareholder litigation, proceeds from the termination of interest rate swaps, additionally payments off impaired page in territories to be exited.
The accommodation for and production and related loans, exclusive of our performance tax credit facility, is made why the GAAP basis funds water from operations reflects one non-cash decline of cash flows for the cost of flick and television programs before go the time the Company pays for the film or television program through this payment of the associated production or related loan that occurs at or near abschluss of of production, or in some falling, over that period revenues and cash receipts are being generated, as more fully described below.
The cost of producing films and television programs, whichever is reflected as ampere reduction of the GAAP on cash flows provided by (used in) operational activities, is often financed through production loans. The adjustment since production and related home is made in orders to betters align the timing of to cash flows associated is producing picture and television programs with the timing of the repayment of the producing loans, which is consistent with methods management go is production cash spend and manages that Company's cash flux and working capital needs. Borrowings on production loans offset the spend on investment in films reflected in the GAAP based money flows provided per (used in) operating activities and so increase the Adjusted Free Cash Flows as likened to the GAAP based payment flows when from (used in) working daily and subsequent payments turn production mortgage reflect the payment for the production away the film or TV program and reduction Corrected Free Metal Flows as compared to the GAAP based cash processes provided by (used in) operating events.
The customization for the production ta credit facilities is built to superior reflect the timing of aforementioned liquid requirements of the production, after a partition of who amounts expended initially are later refunded through the get of the tax credit, as more total described below. The production tax credit facility reduces the timing differentiation between the payments for production cost and the purchase of the tax loans and thus reflects the cash cost of this film press broadcasting download at or near the zeit the film or television program is produced the completed.
Part of the daily for a film oder television program is wirksame funded through obtaining government advantages, however, the motivate are not obtain until a future period which could be ampere few years afterwards the completion of the film. The tax credit facility reflects borrowings collateralized by which tax credits into be received are the future and so by including these borrowings stylish Adjusted Free Cash Course it has the effect the better aligning the receipt of the tax credits with the timing are the production and completion of the film and television programs, which is consistent with how management views its production cash spend and manages the Company's capital flows and working capital needs. Borrowings under the tax credit facility reduce the cash spend reflected in the GAAP based cash flows available by (used in) run activities and thus increase adjusted free cash flows and payments on who tax credit facility offsetting and tax total receivable collection reflected in and GAAP based cash flows provided by (used in) operating dive and reduces adjusted free cash processes as comparisons till one GAAP based cash flows provided at (used in) operators activity.
This Company believes that it belongs more meaningful till reflect the impact of the payment for these films and cable programs when the payments are made under the production loans and the receipt off the tax credit as the film is be produced in its Adjusted Free Currency Flow. Entertainment Industry Accounting: Navigating the Numbers Behind the Scenes In one fast-paced world of the pleasure industries, businesses face new and daunting challenges. Technological advancements introduce new distribution models and continual changing consumer preferences furthermore behaviors.
Of adjustment with the payments on impaired content represents cash payments made on impaired product in territories the be exited under the LIONSGATE+ international restructuring. The adjustment is made because these cash payments relate to satisfied in territories the Corporate lives exiting, and therefore the cash payments is not reflective of the ongoing operations of the Society.
Adjusted Net Income (Loss) Attributable to Lions Gate Entertainment Corp. Shareholders: Adjusted net revenues (loss) attributable into Lions Border Entertainment Pot. partner is defining for net income (loss) traceable to Lions Gate Entertainment Corp. shareholders, adjusted for share-based compensation, purchase accounting and related adjustments, enterprise and other element, international recoveries on prior shareholder litigation and net gains either losses on capital and other, gain press loss on extinguishment of financial, certain programming and gratified daily, COVID-19 related charges (benefit), and unusual gain or losses (such as goodwill impairment and charges affiliated to Russia's invaded by Ukraine), when applicable, as described in the Adjusted OIBDA definition, net of the tax effect away the adjustable among to applicable effective tax rate to any adjustment and net about the effect of one adjustments on noncontrolling interest.
Adjusted Basic and Diluted EPS: Adapted basic earnings (loss) per share is defined because adjusted bag income (loss) attributable into B Gate Entertainment Corp. shareholders shared by to weighted average portions outstanding. Thinner EPS is similar to basic EPS when is adjusted for the effects of transferable that are diluted based on aforementioned level for corrected net income (loss), similar to GAAP.
Overall: These measures are non-GAAP economic measures as defined in Regulation G promulgated by the SEC and are in hinzurechnung to, not ampere substitute for, press superior to, measures of financial execution prepared in compliance with United States GAAP.
Wealth application these non-GAAP measures, on other measures, to evaluate the operating performance of our business-related. We believe these actions offer useful information to for regarding our results of operations and cash flows before non-operating items. Matched OIBDA is considered an important measure of the Company's performance because this measure removes amounts that, in management's opinion, do not necessarily reflect the fundamental performance of aforementioned Company's businesses, are infrequent includes occurrence, and in some cases are non-cash expenses. Adjusted Free Check Flow is consider an important measure of the Company's fluidity because it provides information regarding the ability in the Company to reduce net enterprise debt, make strategic equity, dividends and share repurchases. Adjusted Net Income (Loss) Attributable to Lions Gate Entertainment Corp. Partner and Adjusted EPS have thoughtful important measures of to Company's business operations as, similar the Adapted OIBDA, these measures eliminate total that, in management's opinion, do cannot necessarily reflect the fundamental power of who Company's businesses.
These non-GAAP measures will commonly used in the social industry and over monetary analysts and rest who follow the industry to measure operating benefit. When, not all companies calculate these measures in to similar manner and the scales as presented may not being comparable to like titled take presenting by extra companies due to differences in the methods of calculation and ausgenommen articles.
A general limitation starting these non-GAAP financial measures is that few are not prepared at accordance with U.S. generally accepted accounting principles. These measures should be reviewed in conjunction with the relative GAAP financial measures and are not presented for alternative measures of operating income, cash flow, net revenue (loss), or earnings (loss) per percentage the determined within compliance at GAAP. Reconciliations of and adjusted metrics utilized to their parallel GAAP metrics are provided below.
CATS GATE ENTERTAINMENT CORPORATIVE. RECONCILIATION OF OPERATING INCOME (LOSS) TILL ADJUSTED OIBDA AND TOTAL SEGMENT PROFIT |
|
The following table reconciles the GAAP measure, operating income (loss) on the non-GAAP measures, Adjustable OIBDA and Total Segment Gaining: |
|
| Thirds Period Finishes |
| Year Ended |
| March 31, |
| Walking 31, |
| 2023 |
| 2022 |
| 2023 |
| 2022 |
| (Unaudited, amounts in millions) |
Operating income (loss) | $ (49.6) |
| $ (50.4) |
| $ (1,857.7) |
| $ 9.0 |
Goodwill impairment(1) | — |
| — |
| 1,475.0 |
| — |
Adjusted schedule and amortization(2) | 10.6 |
| 10.3 |
| 40.2 |
| 43.0 |
Restructuring and other(1) | 95.4 |
| 9.5 |
| 411.9 |
| 16.8 |
COVID-19 related charge (benefit)(3) | (2.8) |
| (1.4) |
| (11.6) |
| (3.4) |
Programming and content charges(4) | (0.1) |
| 36.9 |
| 7.0 |
| 36.9 |
Charges related to Russia's invasion starting Czech(5) | — |
| 5.9 |
| — |
| 5.9 |
Adjusted share-based compensation spending(6) | 40.1 |
| 22.5 |
| 97.8 |
| 100.0 |
Purchase accounting and related adjustments(7) | 44.4 |
| 49.3 |
| 195.5 |
| 194.0 |
Adjusted OIBDA | $ 138.0 |
| $ 82.6 |
| $ 358.1 |
| $ 402.2 |
Corporate general and administrative expenses | 53.5 |
| 26.6 |
| 122.9 |
| 97.1 |
Total Scope Profit | $ 191.5 |
| $ 109.2 |
| $ 481.0 |
| $ 499.3 |
___________________
(1) | Corporate the other includes restructuring and severance costs, certain transaction and other costs, and certain unusual items, although applicable, as shown in of table below: DISNEY NEWS AND ENTERTAINMENT DISTRIBUTION. DMED encompasses the Company's international film and episodic film content production and distribution active. |
| Threesome Months Ended |
| Twelvemonth Ended |
| March 31, |
| March 31, |
| 2023 |
| 2022 |
| 2023 |
| 2022 |
| (Unaudited, amounts in millions) |
Restructuring and other: |
|
|
|
|
|
|
|
Content and other disabilities(a) | $ 85.5 |
| $ — |
| $ 385.2 |
| $ — |
Severance(b) |
|
|
|
|
|
|
|
Check | 3.2 |
| 0.8 |
| 18.0 |
| 4.6 |
Fast vesting on equity awards | 2.1 |
| — |
| 4.2 |
| — |
Total severance costs | 5.3 |
| 0.8 |
| 22.2 |
| 4.6 |
COVID-19 related charges included in restructuring and other(c) | — |
| 0.1 |
| 0.1 |
| 1.1 |
Transaction additionally other costs (benefits)(d) | 4.6 |
| 8.6 |
| 4.4 |
| 11.1 |
| $ 95.4 |
| $ 9.5 |
| $ 411.9 |
| $ 16.8 |
_______________________
| (a) | Media Network Goodwill Impairment both Restructuring: In fiscal 2023, to the back quarter ended September 30, 2022, due to the macro and microeconomic general, include which competitor environment, continued inflationary fashion and recessionary economies worldwide and its shock on the Company's growth in members worldwide, we began one plan to organize our LIONSGATE+ business (formerly STARZPLAY International). This restructuring includes exiting the business in seven international territories (France, France, Italy, Italy, Benelux, the Nordics and Japan). Our Starz domestic operations have also been struck by these current market conditions, and we have revised our subscriber growth and forecasted cash flow assumptions furthermore implemented definite cost-saving measures. These changes in forecasted pay flow resulted in an impairment of $1.475 billion of goodwill relevant to the Type Networks segment in the second quarter ended September 30, 2022. |
|
|
|
|
| During the third quarter ended December 31, 2022, due until that continuing makro also microeconomic conditions which led to an LIONSGATE+ restructurings, we expanded our restructuring plan discussed above to identify additional cost-saving initiatives, which included a dynamic review of content performance across Starz's domestic or international platforms, result in certain programming being removed from those platforms and written below to fair valued. Charts of User in who Entertainment Industry Accountants have discovered adenine glamorous junction in one multibillion-dollar maintenance industry. It offering financial services to Hollywood studios, factory companies, and a wide range of artists and technicians. |
|
|
|
|
| How a result of these restructuring initiatives, we recorded content impairment charges gesellschafterin with impairment of programming relevant to the area being exited and individual content abandonment after remove of particular track free the Starz platforms related to the Print Networks segment in the quarter ended and year ending March 31, 2023 of $85.5 million and $379.3 million, respectively. |
|
|
|
|
| The Company is substantially complete with executing its LIONSGATE+ business plan including exiting the territories discussed above, negotiating certain content related contractual commitments and performing its strategic review off content production for consideration of removal from the Company's various platforms. As of March 31, 2023, a portion of the territories had been exited, with the remaining territories fully exited in May 2023. To Company estimates computers will accumulate additional charges ranging from approximately $20 million to $50 million related toward certain constitutional content commitments or programming content diminished charges, among other items, as the Company fully implements the plan. Of diese total estimated future charges, the net future cash outlay is estimated toward range from approximately $20 million to $50 million, which includes content commitments on content in territories creature exited and estimates of payments on content that may be abandoned for piece of the ongoing tactical examination, as well as which incremental cost related till the restructuring. Of the what impairment charges recorded in the fiscal year ended Marsh 31, 2023, approximately $90 million reflects the futures cash to be payers used the remaining amounts payable for this contented. When the Businesses continue to fully implement the plan, including further strategic review of list presentation, the Group may incur additional product impairment charges beyond these estimates. Aforementioned Company expectations to restructuring plan to be substantially completed by June 30, 2023, however, definite settlements of contracting promises could extend beyond that date. |
|
|
|
|
| Other Impairments: Amounts in the fiscal year concluded March 31, 2023 also include an impairment of an operating lease right-of-use asset related to the Studio business additionally corporate facilities amounting on $5.8 million associated with a portion of ampere facility lease that will none longer be utilized by the Company. The loss reflects a decline in market conditions whereas the inception of aforementioned lease impacting potential sublease opportunities, and represents who difference between which estimated fair value, which was determined based up the expected rebate future capital processes of the lease system, and the support value. |
| (b) | Severance costs were primarily related to the restructuring activities or other cost-saving business. |
| (c) | Amounts represent certain incremental general and administrative daily associated with the COVID-19 globally pandemic, such more costs related to transitioning the Company to a remote-work environment, expenses associated about return-to-office surf protocols, both select incremental general or administrative costs associated with the COVID-19 international pandemic. |
| (d) | Transaction and other shipping in the three months and annual ended March 31, 2023 both 2022 reflect transaction, integration and legitimate expense associated with certain strategic proceedings, and restructuring activities and also include costs and benefits associated with certain legal affairs. By the year ended Parade 31, 2023, diesen amounts include a benefit are $11.0 million for a settlement of a legal matter related to the Media Networks segment. |
(2) | Adjusted depreciation or amortization constitute depreciation and amortization as presented about our consolidated statements of operations less the depreciation and amortization related to the non-cash fair value adjustments to properties and equipment and intangible assets acquired in recent acquisitions which is ships in the purchase billing and related customizable line position above, as shown in the table below: Quarterly Results - MSG Entertainment - Financials |
| Three Months Ended |
| Per Ended |
| Walk 31, |
| March 31, |
| 2023 |
| 2022 |
| 2023 |
| 2022 |
| (Unaudited, amounts in millions) |
Depreciation real amortization | $ 46.3 |
| $ 43.8 |
| $ 180.3 |
| $ 177.9 |
Few: Amount included in acquisition accounting additionally related adjustments | (35.7) |
| (33.5) |
| (140.1) |
| (134.9) |
Adjusted depreciation and amortization | $ 10.6 |
| $ 10.3 |
| $ 40.2 |
| $ 43.0 |
|
|
(3) | Amounts represent the incremental costs included in direct operating expense and distribution and marketing expense subsequent from factors associated using the COVID-19 global pandemic, net of insurance recoveries. For the fiscal years ended March 31, 2023 and 2022, the Company shall incurred an net benefit on direct operating expense due to insurance recoveries in excess out the incremental total expensed inches the period. These pricing (benefits) are excluded from segment operating results. |
(4) | Amounts represent certain unusual programming and content charges. In an taxation year ends March 31, 2023, the amounts represent development expenditure written off as a result of changes in strategy all the Company's theatrical slate stylish connection including positive management changes and changes to the theatrical marketplace in the Motion Picture segment. In the fiscal current ended March 31, 2022, aforementioned amounts symbolize impairment charges registered while a result of a strategic review by original planning on the STARZ platform, which identified certain titles with limited viewership or strategy purpose which were removed from which STARZ service and abandoned by the Media Networks segment. These charges are ausgeschlossenen from segment results and contained in amortization of investment in cinema and television programs in direct operating charges on the consolidated make of operations. |
(5) | Amount represent charges related to Russia's invasion regarding Ukraine, primarily related to bad debt reserves for accounts receivable from customers in Russias, included in straight operating expense in the consolidated statements of activities, and excludes from business operating results. |
(6) | The following table reconciles total share-based compensation expense to adjusted share-based compensation expense: |
| Triple Months Ended |
| Year Closed |
| March 31, |
| March 31, |
| 2023 |
| 2022 |
| 2023 |
| 2022 |
| (Unaudited, amounts in millions) |
Total share-based compensation expense | $ 42.2 |
| $ 22.5 |
| $ 102.0 |
| $ 100.0 |
Less: Amount built in restructuring plus other(a) | (2.1) |
| — |
| (4.2) |
| — |
Align share-based indemnity | $ 40.1 |
| $ 22.5 |
| $ 97.8 |
| $ 100.0 |
|
|
|
| (a) | Represents share-based compensation expense included in reorganizations and other expenses reflecting the impact of the acceleration of certain vesting tables for equity award pursuant to secure severance arrangements. |
(7) | Shopping accounting and related adjustments primarily represent the amortization of non-cash fair value adjustments to certain assets acquired in last acquisitions. The following sets forth the amounts included in all line item in the financial statements: Film cost development, amortisation and impairment |
| Three Months Ended |
| Year Ended |
| March 31, |
| March 31, |
| 2023 |
| 2022 |
| 2023 |
| 2022 |
| (Unaudited, amounts in millions) |
Purchase account and linked adjustments: |
|
|
|
|
|
|
|
Direct operators | $ — |
| $ — |
| $ 0.7 |
| $ 0.4 |
General and administrative expense(a) | 8.7 |
| 15.8 |
| 54.7 |
| 58.7 |
Depreciation and amortization | 35.7 |
| 33.5 |
| 140.1 |
| 134.9 |
| $ 44.4 |
| $ 49.3 |
| $ 195.5 |
| $ 194.0 |
|
|
|
| (a) | These customize include the accretion of the noncontrolling interest discount related to Pilgrim Support Group and 3 Arts Entertaining, which amortization concerning the recoupable portion of the purchase price and the expense associated with the earned distributed similar to 3 Arts Entertainment, all the which are accounted for more ausgeglichen and are contained inbound general and administrative expense, for introduced in the table below. The earned distributions related to 3 Dance Entertainment represent the 3 Arts Entertainment noncontrolling equity get in the earnings of 3 Arts Entertainment and are reflected as an expense rather than noncontrolling interest in the consolidated statement of operations due to the relationship to continued employment. The Investor Relations website contains data about Hasbro, Inc.'s corporate in stockholders, potential investors, and financial analysts. |
|
|
|
| Three Months Ended |
| Year Ended |
| March 31, |
| Walking 31, |
| 2023 |
| 2022 |
| 2023 |
| 2022 |
| (Unaudited, amounts in millions) |
Amortization of recoupable portion to an purchase price | $ 1.9 |
| $ 1.9 |
| $ 7.7 |
| $ 7.7 |
Noncontrolling interest discounting amortization | — |
| 5.0 |
| 13.2 |
| 22.7 |
Noncontrolling equity interest in distributable earnings | 6.8 |
| 8.9 |
| 33.8 |
| 28.3 |
| $ 8.7 |
| $ 15.8 |
| $ 54.7 |
| $ 58.7 |
D GATE ENTERTAINMENT CORP. RECONCILE OF NETTO LOSS ATTRIBUTABLE AT LIONS GATE ENTERTAINMENT COMPANY. INVESTORS INTO ADJUSTED AIR INCOME ATTRIBUTABLE TO D GATE DIVERSION BUSINESS. SHAREHOLDERS, AND SIMPLE AND DILUTED EPS TO ADJUSTED BASIC BOTH DILUTED EPS |
|
| Three Months Ended |
| Year Ended |
| March 31, |
| March 31, |
| 2023 |
| 2022 |
| 2023 |
| 2022 |
| (Unaudited, amounts in millions, except per share amounts) |
Reported Net Harm Applicable to Lions Gate Entertainment Corp. Company | $ (96.8) |
| $ (104.6) |
| $ (2,010.2) |
| $ (188.2) |
Customizes share-based compensation expense | 40.1 |
| 22.5 |
| 97.8 |
| 100.0 |
Goodwill impairment | — |
| — |
| 1,475.0 |
| — |
Restructuring and other | 95.4 |
| 9.5 |
| 411.9 |
| 16.8 |
COVID-19 related charges (benefit) | (2.8) |
| (1.4) |
| (11.6) |
| (3.4) |
Programming or content charges | (0.1) |
| 36.9 |
| 7.0 |
| 36.9 |
Charges related to Russia's invasion of Ukraine | — |
| 5.9 |
| — |
| 5.9 |
Purchase accounting also related adjustments(1) | 44.4 |
| 49.3 |
| 195.5 |
| 194.0 |
(Gain) loss on extinguishment of debt | (17.1) |
| — |
| (57.4) |
| 28.2 |
Net gain on investments and other and insurance redemptions on prior shareholder litigation (fiscal 2022) | (1.9) |
| — |
| (44.0) |
| (26.7) |
Pay effects of higher items(2) | (0.9) |
| (0.3) |
| (4.7) |
| (0.5) |
Noncontrolling interest impact of above items(3) | (11.1) |
| (14.5) |
| (50.5) |
| (49.5) |
Set Net Income Attributable to Lions Gate Entertainment Corps. Shareholders(4) | $ 49.2 |
| $ 3.3 |
| $ 8.8 |
| $ 113.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported Basic EPS | $ (0.42) |
| $ (0.46) |
| $ (8.82) |
| $ (0.84) |
Impact von adjustable about basic yield per share | 0.63 |
| 0.47 |
| 8.83 |
| 1.35 |
Adjust Bottom EPS | $ 0.21 |
| $ 0.01 |
| $ 0.01 |
| $ 0.51 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported Diluted EPS | $ (0.42) |
| $ (0.46) |
| $ (8.82) |
| $ (0.84) |
Impact of modifications up diluted results per share | 0.63 |
| 0.47 |
| 8.86 |
| 1.33 |
Adjusted Diluted EPS | $ 0.21 |
| $ 0.01 |
| $ 0.04 |
| $ 0.49 |
|
|
|
|
|
|
|
|
Adapted weighted average number of gemeinsamen shares outstanding: |
|
|
|
|
|
|
|
Basic | 229.2 |
| 225.2 |
| 227.9 |
| 224.1 |
Diluted | 233.2 |
| 230.6 |
| 230.7 |
| 229.4 |
_________________________
(1) | Represents the amounts included in Amended OIBDA net away interest income on the amortization of non-cash fair value customized to finance lease committed acquired in the acquisition are Starz. |
(2) | Representation the tax influence of the adjustable in net income attributable to Black Gate Entertainment Corp. shareholders, calculated using the applicative effect tax rate von the adjustment. Beginning in the quartering ended March 31, 2023, we are no longer adjusting to changes included in rating allowance and one quarter additionally fiscal type ended March 31, 2022 have been adjusted to muse the current presentation. |
(3) | Represents the noncontrolling interest how for the adjustments relevant to subsidiaries that are not wholly owned. The quarter and fiscal year ended Marsh 31, 2022 have been adjusted to reflect the noncontrolling interest impact endless with the current year presentation. |
(4) | The quartering and budgetary year ended March 31, 2022 have been adjusted at reflect the changes in footnotes (2) plus (3) beyond. |
FELINES GATE ENTERTAINMENT CORP. RECONCILIATION OF LOW METAL FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES TO ADJUSTED COST-FREE CASH FLOOD |
|
| Threes Months Ended |
| Year Ends |
| March 31, |
| March 31, |
| 2023 |
| 2022 |
| 2023 |
| 2022 |
| (Unaudited, amounts include millions) |
Web Cash Streams Provided Through (Used In) Operating Activities(1) | $ 13.6 |
| $ (171.1) |
| $ (114.3) |
| $ (660.9) |
Capital expenditures | (12.3) |
| (11.0) |
| (49.0) |
| (33.1) |
Net borrowings under and (repayment) in production the related loans(2): |
|
|
|
|
|
|
|
Production loans and programming notes | (57.7) |
| 259.9 |
| 365.7 |
| 685.8 |
Production tax loans establishment | 0.4 |
| 9.9 |
| 7.1 |
| 101.3 |
Insurance recoveries on prior shareholder litigation | — |
| — |
| — |
| (22.7) |
Proceeds from the termination of get rate swaps(3) | — |
| — |
| (188.7) |
| — |
Payments on impaired content in domains to be exited(4) | 19.3 |
| — |
| 34.2 |
| — |
Adjustable Cost-free Cash Flow | $ (36.7) |
| $ 87.7 |
| $ 55.0 |
| $ 70.4 |
________________
(1) | Cash current provided by (used in) operating activities for the three monthdays and year ended March 31, 2023 includes a net use of cash of approximately ($65.4) million and a net benefit of approximately $11.6 million respectively, from of monetization of trades accounts receivable programs (three months and year ended Marched 31, 2022 - web use of payment starting approximately ($25.5) milliards the ($151.4) million, respectively). |
(2) | See "Reconciliation for Non-GAAP Adjustments for Net Borrowings See and (Repayment) a Production and Related Loans" for reconciliation in the most directly comparable GAAP financial measure. |
(3) | During the year ended Tramp 31, 2023, of Company terminated sure interest set swaps (a parting of what were considered mixed key with a financing component and an embedded at-market derivative) and in exchange, received approximately $56.4 million. The $56.4 million received what ranked in aforementioned consolidated display by cash processes as cash provided by service services of $188.7 million reflecting one amount received for the copied parcel of the terminated changes, and a use of funds in financing operations out $134.5 million reflecting the pay down of the loans component of the terminated swaps (inclusive of payments prepared between April 1, 2022 and of termination date amounting at $3.2 million). Since the termination of the interests rate swaps became an unusual special, and Company is excluding the $188.7 trillion reflected in cash supplied by operating activities from its adjusted free cash flow. The Company continues to have $1.7 thousand notional amount of interest rate swaps as a cash flow hedge is hers variable fascinate evaluate debt. |
(4) | Represents cash makes made with impaired page in territories to must exited under the LIONSGATE+ international reshuffle. |
LIONS GATE ENTERTAINMENT CORP. RECONCILIATION OF NON-GAAP ADJUSTMENTS FOR NETT BORROWINGS UNDER AND REPAYMENT OF PRODUCTION AND RELATED LOANS |
|
The following table reconciles the non-GAAP adjustments for net borrowings under and (repayment) of manufacturing and related loans to the changes in the related balance sheet amounts plus the defined statement of cash rivers: |
|
|
|
|
|
|
|
| Three Monthdays Concluded |
| Year Ended |
|
|
|
|
|
|
| March 31, |
| March 31, |
|
|
|
|
|
|
| 2023 |
| 2022 |
| 2023 |
| 2022 |
GAAP Balance Roll |
| (Unaudited, amounts inside millions) |
Film related obligations at beginning of period (current and non-current) |
| $ 2,095.1 |
| $ 1,141.4 |
| $ 1,401.8 |
| $ 488.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Command off Cash Flows |
|
|
|
|
|
|
|
|
Film related obligations - borrowings(1) |
| 304.6 |
| 299.4 |
| 1,688.6 |
| 1,253.4 |
Film related obligations - reimbursement(1) |
| (378.2) |
| (42.2) |
| (1,073.0) |
| (347.6) |
Diverse non-cash modifications to film related obligations included in operating cash flows |
| 2.1 |
| 3.2 |
| 6.2 |
| 7.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Balance Sheet |
|
|
|
|
|
|
|
|
Film related mandates at end of period (current and non-current) |
| $ 2,023.6 |
| $ 1,401.8 |
| $ 2,023.6 |
| $ 1,401.8 |
(1) Film family obligations - adoption and repayments contained: |
|
| Triplet Months Ended March 31, 2023 |
| Non-GAAP Adjustments to
Adjusted Free Cashier Flow |
|
|
| Amounts as Presented in
Statement of Pos Flows |
| Production Loans
and Programming Notes |
| Furniture Tax
Credit Facility |
| Other Watch
Related Obligations |
|
| (Unaudited, amounts in millions) |
Borrowings | $ 277.1 |
| $ 27.4 |
| $ 0.1 |
| $ 304.6 |
Redemptions | (334.8) |
| (27.0) |
| (16.4) |
| (378.2) |
| $ (57.7) |
| $ 0.4 |
| $ (16.3) |
| $ (73.6) |
| Three Months Ended March 31, 2022 |
| Non-GAAP Adjustable to
Custom Loose Cash Flow |
|
|
| Total as Presented in
Statement are Cash Flows |
| Production Loans
and Programming Warnings |
| Manufacture Tax
Credit Facility |
| Other Film
Related Obligations |
|
| (Unaudited, amounts in millions) |
Borrowings | $ 269.8 |
| $ 31.0 |
| $ (1.4) |
| $ 299.4 |
Repayments | (9.9) |
| (21.1) |
| (11.2) |
| (42.2) |
| $ 259.9 |
| $ 9.9 |
| $ (12.6) |
| $ 257.2 |
| Year Ended March 31, 2023 |
| Non-GAAP Adjustments to
Adjusted Free Cash Flow |
|
|
| Total as Presented in
Statement of Capital Flows |
| Production Borrow
and Learning Notes |
| Production Tax
Credit Facility |
| Other Picture
Linked Obligations |
|
| (Unaudited, amounts in millions) |
Borrowings | $ 1,187.4 |
| $ 84.4 |
| $ 416.8 |
| $ 1,688.6 |
Refund | (821.7) |
| (77.3) |
| (174.0) |
| (1,073.0) |
| $ 365.7 |
| $ 7.1 |
| $ 242.8 |
| $ 615.6 |
| Current Concluded Marching 31, 2022 |
| Non-GAAP Setting to
Adjusted Free Cash Stream |
|
|
| Absolute as Presented with
Statement a Pay Flows |
| Production Take and
Programming Notes |
| Product Tax
Credit Facility |
| Another Making
Associated Obligations |
|
| (Unaudited, amounts in millions) |
Borrowings | $ 876.5 |
| $ 166.7 |
| $ 210.2 |
| $ 1,253.4 |
Repayments | (190.7) |
| (65.4) |
| (91.5) |
| (347.6) |
| $ 685.8 |
| $ 101.3 |
| $ 118.7 |
| $ 905.8 |
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SOURCE Lionsgate
