Financial Performance - Lionsgate reported second quarter revenue of $948.6 million, with a net loss attributable to shareholders of $163.3 million or $0.68 diluted net loss per share[1][2] - Adjusted net loss attributable to shareholders was $102.5 million or $0.43 adjusted diluted net loss per share, with an adjusted OIBDA loss of $17.7 million[2][3] - Revenues for the three months ended September 30, 2024, were $948.6 million, a decrease of 6.6% compared to $1,015.5 million for the same period in 2023[17] - Net loss attributable to Lions Gate Entertainment Corp. shareholders was $163.3 million for the three months ended September 30, 2024, compared to a net loss of $886.2 million for the same period in 2023[17] - Total segment revenues for the three months ended September 30, 2024, were $948.6 million, a decrease of 6.5% from $1,015.5 million in the same period of 2023[27] - Total segment profit for the three months ended September 30, 2024, was $15.6 million, down from $173.5 million in the prior year, reflecting a significant decline[27] - The company reported a significant increase in amortization of films and television programs, totaling $486.5 million for the three months ended September 30, 2024, compared to $407.6 million in the same period of 2023[20] - Total adjusted OIBDA for the three months ended September 30, 2024, was $(17.7) million, compared to $140.7 million in the prior year[27] - Adjusted net income attributable to Lions Gate Entertainment Corp. shareholders for the six months ended September 30, 2024, was a loss of $81.6 million, compared to a profit of $38.8 million for the same period in 2023[49] Segment Performance - The Studio Business generated revenue of $823.7 million, a 4% increase from the prior year quarter, but reported an operating loss of $34.8 million[5] - Motion Picture segment revenue increased by 3% to $407.1 million, while segment profit decreased to $2.6 million due to underperformance of key releases[6] - Television Production segment revenue rose 6% to $416.6 million, but segment profit decreased to $24.4 million due to prior year strike impacts[7] - Starz Networks revenue for the three months ended September 30, 2024, was $343.0 million, slightly down from $344.0 million in the prior year[30] - The Motion Picture segment reported a profit of $2.6 million, a sharp drop from $67.5 million in the same quarter last year[27] - Media Networks segment profit for the three months ended September 30, 2024, was $27.2 million, down from $66.6 million in the same period of 2023[30] Cash Flow and Liquidity - Cash, cash equivalents, and restricted cash at the end of the period were $289.3 million, an increase from $269.2 million at the end of the same period in 2023[20] - The company experienced a net cash outflow from operating activities of $82.0 million for the three months ended September 30, 2024, compared to a net cash inflow of $301.1 million for the same period in 2023[20] - Net cash flows used in operating activities for the three months ended September 30, 2024, were $(82.0) million, compared to $235.8 million in the prior year[84] - Cash flows from financing activities included borrowings of $629.9 million and repayments of $786.0 million, resulting in a net cash outflow of $156.1 million[114] Restructuring and Impairment - Approximately 8% of eligible U.S. employees opted for voluntary severance and early retirement packages as part of business streamlining efforts[4] - The company incurred goodwill and intangible asset impairment charges of $663.9 million for the six months ended September 30, 2024[38] - Restructuring and other costs amounted to $28.6 million for the six months ended September 30, 2024, compared to $254.0 million in the same period of 2023[40] - The company plans to continue evaluating its Media Networks business and may expand its restructuring plan, potentially incurring additional impairment charges[42] Non-GAAP Measures - The company utilizes non-GAAP financial measures to evaluate operating performance, including Adjusted OIBDA and Adjusted Free Cash Flow[60] - Adjusted Free Cash Flow is defined as net cash flows from operating activities minus capital expenditures, adjusted for production loans and unusual items[65] - Adjusted Net Income attributable to shareholders is calculated by adjusting net income for various non-operating items[72] - The company believes these non-GAAP measures provide useful information regarding results of operations and cash flows before non-operating items[75] Forward-Looking Statements - Lionsgate Studios' Adjusted OIBDA is projected to be between $300 million and $320 million for the fiscal year ending March 31, 2025[139] - Starz Networks' Adjusted OIBDA is estimated at $200 million for the fiscal year ending March 31, 2025[140] - The company acknowledges that individual items related to restructuring and COVID-19 charges are not reasonably estimable due to their unpredictable nature[140] - Forward-looking statements are based on reasonable expectations and assumptions as of November 7, 2024, but actual results may vary materially[142]
Lions Gate Entertainment(LGF_A) - 2025 Q2 - Quarterly Results