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, a decline from 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, up from $992.3 million in the same period of 2022[17]. - Comprehensive loss attributable to Lions Gate 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[19]. - 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 reduction of approximately 44.5%[26]. - Net income attributable to Lions Gate shareholders for the nine months ended December 31, 2023, was a loss of $1,344.0 million, compared to a loss of $1,880.5 million for the same period in 2022, indicating an improvement of approximately 28.5%[49]. 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, representing 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, indicating 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 reached $3,574.6 million as of December 31, 2023, compared to $3,467.5 million at September 30, 2023, indicating a worsening financial position[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]. - 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[26]. - As of December 31, 2023, total corporate debt was $2,319.4 million, an increase from $2,059.9 million as of March 31, 2023[82]. Impairments and Restructuring - 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 content impairment charges of $77.8 million and $317.4 million for the three and nine months ended December 31, 2023, respectively, compared to $80.8 million and $299.7 million for the same periods in 2022[162]. - The Company has incurred impairment charges totaling $696.7 million from the inception of the restructuring plan through December 31, 2023[162]. - The Company plans to shut down the LIONSGATE+ service in the U.K. market, resulting in additional content impairment charges due to ongoing strategic reviews[161]. 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]. - Total common shares issued increased slightly from 83.5 million at September 30, 2023, to 83.6 million at December 31, 2023[22]. - The company reported a share-based compensation expense of $22.1 million for the three months ended December 31, 2023[22]. - The total share-based compensation expense for the three months ended December 31, 2023, was $31.7 million, an increase from $24.8 million in the same period of 2022[148]. - The company did not repurchase any common shares during the three and nine months ended December 31, 2023, with approximately $288.1 million of common shares repurchased to date[154]. Revenue Breakdown - Motion Picture revenues for the three months ended December 31, 2023, were $443.2 million, up from $288.8 million in the same period of 2022, representing a growth of 53.5%[131]. - The Company’s total home entertainment revenue for the three months ended December 31, 2023, was $176.5 million, compared to $166.7 million in the same period of 2022, reflecting an increase of 5.3%[131]. - Studio Business revenues for the three months ended December 31, 2023, were $691.6 million, down 22.7% from $894.2 million in the prior year[177]. - Media Networks segment revenue rose to $417.2 million for the three months ended December 31, 2023, up 9.1% from $380.3 million in the same period last year[177]. Cash Flow and Financing - 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[26]. - The Company received approximately $56.4 million from the termination of certain interest rate swap contracts, which was recorded as a reduction of asset values of derivatives[201]. - The Company had a total notional amount of $1,700.0 million in pay-fixed interest rate swaps designated as cash flow hedges as of December 31, 2023[200]. Future Commitments and Projections - 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[51]. - 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[165]. - The Company’s restructuring plan includes exiting the LIONSGATE+ business in seven international territories, aiming for cost-saving initiatives[161].
Lions Gate Entertainment(LGF_A) - 2024 Q3 - Quarterly Report