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]. - Net loss for the three months ended September 30, 2023, was $887.9 million, compared to a net loss of $1,813.3 million for the same period in 2022[20]. - The company reported a basic net loss per common share of $3.79 for the three months ended September 30, 2023, compared to $7.95 for the same period in 2022[17]. - Comprehensive loss attributable to Lions Gate Entertainment Corp. shareholders for the three months ended September 30, 2023, was $(888.4) million, compared to $(1,764.0) million for the same period in 2022[20]. - The net loss for the three months ended September 30, 2023, was $886.2 million, compared to a net loss of $1,811.1 million for the same period in 2022[23]. - The company reported an increase in total comprehensive loss to $(218.8) million for the three months ended September 30, 2023[23]. - The company recorded a net loss of $2.8 million for the quarter, an improvement from a net loss of $10.2 million in the prior year[46]. - The Company reported an operating loss of $817.5 million for the three months ended September 30, 2023, compared to an operating loss of $1,747.6 million in the same period of 2022[160]. 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]. - The company’s total equity (deficit) as of September 30, 2023, was $(218.8) million, down from $786.0 million as of March 31, 2023[16]. - The company’s accumulated deficit increased to $(3,467.5) million as of September 30, 2023, from $(2,439.6) million as of March 31, 2023[16]. - As of September 30, 2023, Lions Gate Entertainment reported a total equity of $2,437.0 million, with an accumulated deficit of $3,467.5 million[23]. Cash Flow and Investments - The company generated net cash flows provided by operating activities of $330.3 million, a significant improvement from a cash outflow of $139.4 million in the prior year[26]. - 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[26]. - The company reported an increase in accounts receivable, net, to $132.2 million for the six months ended September 30, 2023, compared to $9.8 million in the prior year[26]. - The company had total cash, cash equivalents, and restricted cash of $269.2 million as of September 30, 2023, down from $313.0 million as of March 31, 2023, indicating a decrease of approximately 14%[192]. Segment Performance - Motion Picture revenues totaled $395.9 million for the three months ended September 30, 2023, up from $224.0 million in the prior year, representing a 76.7% increase[114]. - Home Entertainment revenues reached $181.8 million for the three months ended September 30, 2023, compared to $115.8 million in the same period of 2022, marking a 56.8% increase[114]. - Television Production revenues were $393.9 million for the three months ended September 30, 2023, down from $430.9 million in the prior year, reflecting a decrease of 8.6%[114]. - The Media Networks segment achieved revenues of $416.5 million for the three months ended September 30, 2023, compared to $396.1 million in the prior year, marking an increase of 5.4%[157]. - The total segment profit for the three months ended September 30, 2023, was $173.5 million, significantly higher than $72.2 million in the same period of 2022, an increase of 140.5%[160]. Impairments and Charges - 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 content impairment charges of $211.6 million for the three months ended September 30, 2023, 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[139]. - The company performed a goodwill impairment assessment resulting in a charge of $493.9 million related to the Media Networks reporting unit, reflecting ongoing challenges in subscriber growth and revenue[51]. - An impairment charge of $170.0 million was recorded for indefinite-lived intangible assets related to the Starz business, based on a quantitative assessment[56]. Debt and Financing - As of September 30, 2023, total corporate debt was $1,955.3 million, down from $2,059.9 million as of March 31, 2023[61]. - The company has $1.25 billion available under its Revolving Credit Facility as of September 30, 2023, with no letters of credit outstanding[62]. - The Company repurchased $85.0 million principal amount of the 5.500% Senior Notes for $61.4 million during the six months ended September 30, 2023[78]. - The Company’s 5.500% Senior Notes had a carrying value of $695.1 million and a fair value of $475.5 million as of September 30, 2023[99]. - The Company’s production loans had a carrying value of $1,193.8 million and a fair value of $1,198.9 million as of September 30, 2023[99]. Strategic Initiatives - Lions Gate entered into an agreement to acquire the Entertainment One business from Hasbro for an aggregate cash purchase price of $375.0 million, subject to adjustments[32]. - The proposed spin-off of the Studio Business is subject to various conditions and may not proceed if those conditions are not met[212]. - The restructuring plan for the LIONSGATE+ business includes exiting seven international territories and identifying additional cost-saving initiatives[213]. - The company plans to shut down the LIONSGATE+ service in the U.K. market, resulting in additional content impairment charges[141]. - The company is undergoing a strategic review of content performance across its platforms, which may lead to further restructuring and content removal in the future[145].
Lions Gate Entertainment(LGF_A) - 2024 Q2 - Quarterly Report