Financial Performance - Lionsgate reported first quarter revenue of $834.7 million, a decrease of 5.9% from the prior year quarter[2][3]. - Net loss attributable to Lionsgate shareholders was $59.4 million, or $0.25 diluted net loss per share[2][3]. - Adjusted net income attributable to Lionsgate shareholders was $20.9 million, or $0.09 adjusted diluted earnings per share[2][3]. - Revenues for the three months ended June 30, 2024, were $834.7 million, a decrease of 8.1% from $908.6 million in the same period of 2023[12]. - Total expenses for the same period were $815.9 million, down 11.8% from $925.4 million in 2023[12]. - Operating income for the quarter was $18.8 million, compared to a loss of $16.8 million in the prior year[12]. - Net loss attributable to Lions Gate Entertainment Corp. shareholders was $59.4 million, an improvement from a loss of $70.7 million in 2023[12]. - Total revenues for the three months ended June 30, 2024, were $588.4 million, a decrease of 5.3% compared to $625.0 million for the same period in 2023[64]. - Net loss for the three months ended June 30, 2024, was $44.4 million, compared to a net loss of $21.4 million for the same period in 2023[67]. Segment Performance - The Studio Business reported revenue of $588.4 million, a decrease of 5.9% year-over-year, with adjusted OIBDA of $58.3 million, down 5.5%[3][4]. - Motion Picture segment revenue decreased by 15% to $347.3 million, while segment profit increased by 24% to $86.1 million[4]. - Television Production segment revenue increased by 10% to $241.1 million, but segment profit decreased by 53% to $10.7 million[4]. - North American Media Networks revenue grew 1% to $345.3 million, with segment profit increasing by 54% to $58.5 million[5]. - Total segment profit for the three months ended June 30, 2024, was $143.0 million, up from $116.1 million in the same period in 2023[30]. - Total segment profit for Q2 2024 was $96.8 million, compared to $92.1 million in Q2 2023, reflecting an increase of about 5.1%[70]. Subscriber Metrics - North American OTT subscribers increased by 5.5% to 13.2 million compared to the prior year quarter[5]. - The total number of OTT subscribers in Starz North America as of June 30, 2024, was 13.20 million, a decrease from 13.38 million as of March 31, 2024[27]. - Total Starz subscribers, excluding territories exited, was 27.17 million as of June 30, 2024, down from 27.54 million as of March 31, 2024[27]. Cash Flow and Liquidity - The company reported a net cash flow used in operating activities of $(158.9) million, compared to $29.2 million in the prior year[14]. - Cash, cash equivalents, and restricted cash at the end of the period were $241.9 million, down from $394.1 million at the end of June 2023[14]. - Adjusted free cash flow for the three months ended June 30, 2024, was $(88.9) million, compared to $34.8 million in the same period of 2023[43]. - Net cash flows used in operating activities for the three months ended June 30, 2024, were $(117.6) million, compared to $37.7 million provided in Q2 2023[67]. - Cash, cash equivalents, and restricted cash at the end of the period were $216.6 million, down from $299.8 million at the end of Q2 2023[67]. Restructuring and Future Plans - The company is taking steps toward full separation by calendar year-end, subject to regulatory approvals[3]. - The estimated future cash outlay related to the current restructuring plan is between $50 million and $55 million[33]. - The Company continues to evaluate its restructuring plan and may exit additional territories or remove certain content from its platform in the future[34]. - The company plans to continue focusing on content development and expanding its distribution channels to enhance revenue growth in the future[16]. Impairments and Expenses - The Company recorded content impairment charges of $1.9 million for the Media Networks segment in the three months ended June 30, 2024, compared to $28.0 million for the same period in 2023[33]. - The company incurred impairments of $18.0 million related to operating lease right-of-use and leasehold improvement assets in the Television Production segment[35]. - Corporate general and administrative expenses increased to $33.3 million in Q2 2024 from $30.4 million in Q2 2023, an increase of about 9.5%[72]. - Total severance costs for the three months ended June 30, 2024, were $3.0 million, up from $2.5 million in the same period of 2023[79]. Non-GAAP Measures - Adjusted OIBDA is defined as operating income before adjusted depreciation and amortization, adjusted for various costs including restructuring and COVID-19 related charges[48]. - The company uses non-GAAP financial measures to evaluate the operating performance of its business, which are in addition to GAAP measures[47]. - Adjusted Free Cash Flow is defined as net cash flows from operating activities minus capital expenditures, adjusted for production loans and unusual items[96]. - The company believes that adjusted measures provide useful information regarding operating performance and cash flows before non-operating items[105].
Lions Gate Entertainment(LGF_A) - 2025 Q1 - Quarterly Results