Starz Entertainment Corp(STRZ) - 2024 Q2 - Quarterly Report

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]