Financial Performance - Lionsgate reported third quarter revenue of $970.5 million, a decrease from $975.1 million in the prior year quarter[3]. - Net loss attributable to Lionsgate shareholders was $21.9 million, or $0.09 diluted net loss per share, compared to a net loss of $106.6 million in the prior year quarter[2][19]. - Adjusted net income attributable to Lionsgate shareholders was $68.4 million, or $0.28 adjusted diluted net income per share[2][3]. - Operating income for Lionsgate was $35.8 million, compared to an operating loss of $43.5 million in the prior year quarter[19]. - The total segment profit for the three months ended December 31, 2024, was $176.7 million, slightly down from $182.0 million in the same period last year[34]. - The total segment profit for the nine months ended December 31, 2024, was $335.5 million, down from $471.5 million in the same period of 2023, indicating a decline of 29%[44]. - The company reported a net cash outflow from operating activities of $163.0 million for the three months ended December 31, 2024, compared to a cash inflow of $128.2 million in the same period of 2023[92]. - The company reported a significant increase in accounts receivable, netting $281.5 million for the nine months ended December 31, 2024, compared to $57.4 million in the previous year[21]. Segment Performance - The Studio Business reported revenue of $713.8 million, an increase of 3% from the prior year quarter, with adjusted OIBDA up 45% to $112.0 million[5]. - Television Production segment revenue increased 63% to $404.6 million, driven by higher episodic deliveries and licensing of library content[7]. - The Motion Picture segment revenue decreased to $309.2 million, attributed to the comparison with last year's successful theatrical releases[6]. - Media Networks segment revenues decreased to $344.5 million in Q3 2024, down from $417.2 million in Q3 2023, primarily due to a decline in Starz Networks revenue[36]. - Total revenues for the three months ended December 31, 2024, increased to $713.8 million, up from $691.6 million in the same period of 2023, representing a growth of 17.5%[90]. - Motion Picture segment revenue for Q3 2024 was $309.2 million, down 30.2% from $443.2 million in Q3 2023[99]. - Television Production segment revenue increased by 62.9% to $404.6 million in Q3 2024 from $248.4 million in Q3 2023[99]. Cash Flow and Liquidity - The company experienced a net cash outflow of $118.9 million from operating activities in Q3 2024, contrasting with a net cash inflow of $71.1 million in Q3 2023[21]. - Cash and cash equivalents decreased to $186.2 million as of December 31, 2024, from $277.0 million as of March 31, 2024[88]. - Cash flows from financing activities included borrowings of $1,346.6 million and repayments of $1,300.4 million for the nine months ended December 31, 2024, resulting in a net cash inflow of $46.2 million[120]. - Cash flows provided by financing activities included borrowings of $1,543.8 million and repayments of $1,421.9 million for the nine months ended December 31, 2024, resulting in a net cash inflow of $121.9 million[63]. - The company reported cash flows provided by operating activities of $14.1 million for the nine months ended December 31, 2024, compared to $11.3 million for the same period in 2023, representing an increase of approximately 24.8%[63]. Debt and Obligations - Total film-related obligations at the end of Q3 2024 were $1,940.2 million, up from $1,801.8 million at the beginning of the period[62]. - Film related obligations at the beginning of the period (current and non-current) were $2,023.6 million for the nine months ended December 31, 2023, compared to $1,938.0 million for the same period in 2024, indicating a decrease of approximately 4.2%[63]. - The company reported a goodwill and intangible asset impairment of $663.9 million in the nine months ended December 31, 2023, impacting overall financial health[53]. - The company incurred content impairment charges of $7.3 million related to the Motion Picture and Television Production segments during the three months ended December 31, 2024[48]. Restructuring and Costs - The Company recorded restructuring and other costs of $43.3 million for the three months ended December 31, 2024, significantly lower than $116.9 million in the same period of 2023[45]. - The company expects to incur approximately $26.1 million in severance expenses under a voluntary severance program, with $14.6 million recognized in Q3 2024[105]. - Restructuring and other costs for Q3 2024 totaled $40.9 million, a decrease from $52.5 million in Q3 2023[105]. Subscriber Metrics - North American OTT subscribers grew by 170,000 sequentially, indicating a rebound in subscriber growth for STARZ[8]. - As of June 30, 2024, Starz North America had 13.20 million OTT subscribers, a decrease of 1.4% from the previous quarter, while total subscribers were 21.30 million, down 2.3%[40]. - The total global subscribers, excluding exited territories, were 27.17 million as of June 30, 2024, a decrease of 2.0% from the previous quarter[40]. Non-GAAP Measures - Adjusted OIBDA is defined as operating income before adjusted depreciation and amortization, providing a clearer view of the company's operational performance[66]. - The company uses non-GAAP financial measures to evaluate operating performance, which are considered important for understanding the fundamental performance of the business[81]. - Adjusted Net Income (Loss) attributable to Lions Gate Entertainment Corp. shareholders is adjusted for various non-operating items, providing a more accurate reflection of the company's profitability[78]. - The company believes that Adjusted Net Income (Loss) provides useful information regarding its business operations by excluding non-recurring items[135].
Lionsgate Studios Corp.(LION) - 2025 Q3 - Quarterly Results