Financial Performance - Revenues for the three months ended December 31, 2023, were $975.1 million, a decrease of 2.5% from $1,000.1 million in the same period of 2022[17]. - Net loss attributable to Lions Gate Entertainment Corp. shareholders for the three months ended December 31, 2023, was $106.6 million, compared to a net income of $16.6 million in the same period of 2022[17]. - Operating loss for the three months ended December 31, 2023, was $43.5 million, compared to an operating income of $7.8 million in the same period of 2022[17]. - The company reported total expenses of $1,018.6 million for the three months ended December 31, 2023, an increase from $992.3 million in the same period of 2022[17]. - Comprehensive loss attributable to Lions Gate Entertainment Corp. shareholders for the three months ended December 31, 2023, was $126.6 million, compared to a comprehensive income of $28.7 million in the same period of 2022[20]. - For the nine months ended December 31, 2023, the net loss was $1,063.5 million, significantly higher than the loss of $369.7 million for the same period in the previous year[25]. - The company reported a net loss of $106.6 million for the three months ended December 31, 2023, compared to a net income of $16.6 million for the same period in the previous year[22]. - For the nine months ended December 31, 2023, Lions Gate reported a net loss of $1,066.8 million, an improvement from a net loss of $1,920.8 million in the same period of 2022, reflecting a decrease of approximately 44.5%[28]. Assets and Liabilities - Total current assets increased to $1,525.6 million as of December 31, 2023, from $1,118.4 million as of March 31, 2023, reflecting a growth of 36.5%[16]. - Total liabilities rose to $7,069.3 million as of December 31, 2023, compared to $6,296.6 million as of March 31, 2023, marking an increase of 12.3%[16]. - As of December 31, 2023, Lions Gate Entertainment Corp. reported a total equity deficit of $323.7 million, an increase from $218.8 million at September 30, 2023[22]. - The accumulated deficit increased to $3,574.6 million as of December 31, 2023, up from $3,467.5 million at September 30, 2023[22]. - Total shareholders' equity was reported at $2,459.3 million as of December 31, 2023, compared to $2,437.0 million at September 30, 2023[22]. - Cash and cash equivalents increased to $283.0 million as of December 31, 2023, from $272.1 million as of March 31, 2023[16]. - The company's total assets as of December 31, 2023, amounted to $7,154.7 million, a decrease from $7,426.2 million as of March 31, 2023, reflecting a decline of 3.7%[195]. Shareholder Information - The weighted average number of common shares outstanding for the three months ended December 31, 2023, was 235.1 million, compared to 228.8 million in the same period of 2022[17]. - The total number of Class A Voting Common Shares increased to 83.6 million as of December 31, 2023, from 83.5 million at September 30, 2023[22]. - The total number of Class B Non-Voting Common Shares increased to 151.5 million as of December 31, 2023, from 151.4 million at September 30, 2023[22]. - The company had 500 million authorized Class A voting shares and 500 million authorized Class B non-voting shares as of December 31, 2023[148]. - The company had approximately $179.9 million of authorized potential repurchases remaining, with a total of $288.1 million common shares repurchased to date[157]. Impairments and Charges - The company reported a significant impairment of goodwill and intangible assets totaling $663.9 million for the nine months ended December 31, 2023[17]. - The Company recorded an impairment of goodwill and trade name of $296.2 million for the nine months ended December 31, 2023[52]. - The Company recorded total impairment charges of $696.7 million from the inception of the restructuring plan through December 31, 2023[166]. - The Company incurred a goodwill impairment charge of $663.9 million for the nine months ended December 31, 2023, compared to $1,475.0 million in the same period of 2022[191]. - Content impairment charges for the Media Networks segment were $77.8 million for the three months ended December 31, 2023, slightly down from $80.8 million in the same period of 2022[166]. Cash Flow and Investments - The company generated net cash flows of $401.4 million from operating activities, compared to a cash outflow of $128.0 million in the prior year, indicating a significant turnaround[28]. - Lions Gate's investment in films and television programs and program rights for the nine months was $926.2 million, a decrease from $1,573.4 million in the previous year[28]. - The Company’s total investment in films and television programs includes $804.9 million for released films, $296.1 million for completed but not released films, and $467.6 million for films in progress as of December 31, 2023[59]. - The company reported a depreciation and amortization expense of $138.9 million for the nine months ended December 31, 2023, compared to $133.9 million in the prior year[28]. - Cash, cash equivalents, and restricted cash at the end of the period totaled $333.2 million, down from $471.0 million at the end of the previous year[28]. Debt and Financing - The company’s debt borrowings for the nine months were $2,270.5 million, an increase from $1,238.0 million in the same period of 2022[28]. - As of December 31, 2023, total corporate debt was $2,319.4 million, with a net debt of $2,288.5 million after accounting for unamortized debt issuance costs[85]. - The Revolving Credit Facility has an availability of $875.0 million as of December 31, 2023, with a total commitment of $1.25 billion[86]. - The effective interest rate for Term Loan A was 7.20% and for Term Loan B was 7.70% as of December 31, 2023[94]. - The Company repurchased $85.0 million principal amount of the 5.500% Senior Notes for $61.4 million in the nine months ended December 31, 2023[101]. Strategic Decisions and Acquisitions - Lions Gate's acquisition of eOne was completed on December 27, 2023, for a total cash purchase price of approximately $375.0 million, with $331.0 million paid net of cash acquired[38]. - The preliminary fair value of net assets acquired from eOne was estimated at $379.3 million, with goodwill recorded at $5.8 million[43]. - The Company closed on the acquisition of an additional 25% of 3 Arts Entertainment for approximately $194 million on January 2, 2024, which represents about half of the noncontrolling interest[124]. - The Business Combination Agreement with Screaming Eagle Acquisition Corp. is expected to deliver approximately $350.0 million in gross proceeds, including $175.0 million in PIPE financing, and is anticipated to close in spring 2024[54]. Restructuring and Costs - For the three months ended December 31, 2023, the total restructuring and other costs amounted to $116.9 million, compared to $75.3 million for the same period in 2022, reflecting a year-over-year increase of 55%[169]. - The total severance costs for the nine months ended December 31, 2023, reached $41.3 million, significantly higher than $16.9 million for the same period in 2022[169]. - The Company expects to incur additional charges ranging from approximately $30 million to $55 million related to contractual content commitments and programming content impairment charges[169]. - The net future cash outlay related to the restructuring plan is estimated to range from approximately $145 million to $170 million[169]. - The remaining severance liability as of December 31, 2023, is approximately $29.5 million, expected to be paid within the next 12 months[174]. Revenue Breakdown - Motion Picture revenues for the three months ended December 31, 2023, totaled $443.2 million, a significant increase from $288.8 million in 2022, while total revenues for the nine months reached $1,245.6 million compared to $791.6 million in 2022[134]. - Theatrical revenue for the three months ended December 31, 2023, was $100.1 million, compared to $11.7 million in the same period of 2022, indicating a substantial recovery in theatrical releases[134]. - Digital media revenue for the nine months ended December 31, 2023, was $495.3 million, up from $378.5 million in 2022, reflecting strong performance in home entertainment[134]. - The Company’s international revenue for the three months ended December 31, 2023, was $94.7 million, compared to $55.3 million in 2022, showcasing growth in international markets[134]. Other Financial Metrics - The Company recognized total revenues of $975.1 million for the three months ended December 31, 2023, compared to $1,000.1 million in the same period of 2022, and $2,899.1 million for the nine months ended December 31, 2023, compared to $2,769.1 million in 2022[134]. - The Company reported a provision for doubtful accounts of $7.1 million as of December 31, 2023, down from $9.2 million at the end of March 2023[140]. - The Company recorded a gain on extinguishment of debt of $38.2 million for the three months ended December 31, 2023, compared to a gain of $21.2 million for the same period in 2022[105]. - The Company recognized a loss of $4.3 million in accumulated other comprehensive income (loss) from forward exchange contracts for the three months ended December 31, 2023, compared to a gain of $2.7 million in the same period of 2022[211]. - Interest expense for the three months ended December 31, 2023, was $67.1 million, an increase from $59.6 million in the same period of 2022, indicating a rise of 2.5%[211].

Financial Performance - Revenues for the three months ended September 30, 2023, increased to $1,015.5 million, up 15.9% from $875.2 million in the same period of 2022[17] - The company reported a comprehensive loss of $890.1 million for the three months ended September 30, 2023, compared to a comprehensive loss of $1,766.2 million in the same period of 2022[20] - The company experienced a net loss of $886.2 million for the three months ended September 30, 2023, which is a significant increase from a net loss of $1,811.1 million for the same period in the previous year[22] - For the six months ended September 30, 2023, Lions Gate reported a net loss of $959.4 million, an improvement from a net loss of $1,936.0 million in the same period of 2022[28] - The company reported a net loss of $2.8 million for the quarter, an improvement from a net loss of $10.2 million in the same quarter of the previous year[49] Assets and Liabilities - Total assets decreased to $6,179.4 million as of September 30, 2023, down from $7,426.2 million as of March 31, 2023[16] - Total liabilities decreased to $5,988.1 million as of September 30, 2023, compared to $6,296.6 million as of March 31, 2023[16] - Cash and cash equivalents decreased to $223.6 million as of September 30, 2023, down from $272.1 million as of March 31, 2023[16] - Total accumulated deficit increased to $3,467.5 million as of September 30, 2023, up from $2,516.3 million at the end of the previous quarter[22] - As of September 30, 2023, Lions Gate Entertainment reported a total equity deficit of $218.8 million, compared to a deficit of $728.2 million as of June 30, 2023[22] Shareholder Information - Basic net loss per common share for the three months ended September 30, 2023, was $3.79, an improvement from $7.95 in the same period of 2022[17] - The number of Class A Voting Common Shares remained at 83.5 million, while Class B Non-Voting Common Shares increased to 151.4 million as of September 30, 2023[25] - The total number of common shares issued increased to 673.0 million as of September 30, 2023, from 672.9 million at the end of the previous quarter[25] Revenue Segments - Motion Picture revenues reached $395.9 million for the three months ended September 30, 2023, compared to $224.0 million in the prior year, representing a 76.7% increase[118] - Home Entertainment revenues totaled $181.8 million for the three months ended September 30, 2023, up 56.9% from $115.8 million in the same period of 2022[118] - Television Production revenues decreased to $393.9 million for the three months ended September 30, 2023, down 9.6% from $430.9 million in the prior year[118] - The Media Networks segment reported revenues of $416.5 million for the three months ended September 30, 2023, compared to $396.1 million in the prior year, reflecting a growth of 5.4%[164] Impairments and Expenses - Goodwill and intangible asset impairment for the three months ended September 30, 2023, was $663.9 million, consistent with the same amount in the prior year[17] - The company recorded impairments of $239.5 million for the six months ended September 30, 2023, compared to $218.2 million in the same period of 2022[40] - The company recorded content impairment charges of $211.6 million for the three months and $239.5 million for the six months ended September 30, 2023, compared to $218.8 million for the three months and $218.8 million for the six months ended September 30, 2022[145] - The total restructuring and other costs amounted to $222.1 million for the three months and $254.0 million for the six months ended September 30, 2023, compared to $233.2 million and $241.3 million for the same periods in 2022[145] Cash Flow and Financing - The company generated net cash flows of $330.3 million from operating activities, compared to a cash outflow of $139.4 million in the prior year[28] - As of September 30, 2023, the company had cash, cash equivalents, and restricted cash totaling $269.2 million, down from $599.4 million at the end of the previous period[28] - The company has approximately $179.9 million of authorized potential share repurchases remaining, with $288.1 million in common shares repurchased to date[139] - The company recorded a gain of $3.4 million on extinguishment of debt related to Senior Notes repurchases during the three months ended September 30, 2023[84] Debt and Interest Rates - As of September 30, 2023, total corporate debt was $1,955.3 million, a decrease from $2,059.9 million as of March 31, 2023[64] - The effective interest rate for Term Loan A is 7.18% and for Term Loan B is 7.68%[73] - The company’s production loans amount to $1,198.9 million, with a weighted average interest rate of 7.10%[85] - The Revolving Credit Facility provides for borrowings up to $1.25 billion, with $1.25 billion available as of September 30, 2023[65] Strategic Initiatives - Lions Gate is in the process of acquiring the Entertainment One business from Hasbro for an aggregate cash purchase price of $375.0 million, subject to adjustments[34] - The company plans to shut down the LIONSGATE+ service in the U.K. market, resulting in additional content impairment charges[147] - The company is undergoing a strategic review of content performance and may decide to exit additional territories or remove certain content from its platform in the future[152]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________________________________________________________________________________________ Form 10-Q ____________________________________________________________________________________________________ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHAN ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to ____________ Commission File No.: 1-14880 LIONS GATE ENTERTAINMENT CORP. (Exact name of registrant as specified in its charter) Indicate by che ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________________________________________________________________________________________ Form 10-Q ____________________________________________________________________________________________________ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF ☒ 1934 For the quarterly period ended December 31, 2022 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES ...