Financial Performance - Fourth quarter revenue was $1.1 billion, with an operating loss of $60.9 million and a net loss attributable to Lionsgate shareholders of $39.5 million, equating to a diluted net loss per share of $0.22[2] - Adjusted net income attributable to Lionsgate shareholders was $63.4 million, or $0.27 adjusted diluted earnings per share, with adjusted OIBDA of $140.3 million for the quarter[2] - Revenues for the three months ended March 31, 2024, increased to $1,117.7 million, up from $1,085.7 million in the same period of 2023, representing a growth of 2.0%[18] - The net loss attributable to Lions Gate Entertainment Corp. shareholders for the three months ended March 31, 2024, was $39.5 million, a decrease from a net loss of $96.8 million in the same period of 2023, reflecting a 59.1% improvement[18] - Basic net loss per common share for the three months ended March 31, 2024, was $0.22, compared to $0.42 for the same period in 2023, indicating a reduction of 47.6%[18] - Adjusted net income attributable to Lions Gate Entertainment Corp. shareholders increased to $63.4 million in Q1 2024, compared to $49.2 million in Q1 2023, reflecting a 28.8% year-over-year growth[56] - Adjusted basic EPS for Q1 2024 was $0.27, up from $0.21 in Q1 2023, representing a 28.6% increase[56] Segment Performance - Television Group segment profit increased by 83% to $52.6 million, driven by strong library sales and post-strike content deliveries, while segment revenue rose 61% to $469.3 million[7] - Film & Television Library achieved record revenue of $339 million in the quarter, with trailing 12-month revenue of $886 million, marking the second-best total in Lionsgate's history[4] - The Studio Business reported revenue of $879.9 million, a 6.8% increase from the prior year quarter, with segment profit rising nearly 10% to $134.8 million[5] - Motion Picture segment revenue declined by 23% to $410.6 million, while segment profit decreased by 12% to $82.2 million, compared to a prior year quarter that included the release of "John Wick: Chapter Four"[6] - Media Networks revenue decreased to $361.5 million for the three months ended March 31, 2024, compared to $389.0 million in the same period of 2023, a decline of 7.0%[35] - Starz Networks segment profit for the three months ended March 31, 2024, was $57.8 million, down from $82.9 million in the same period of 2023, a decrease of 30.3%[35] Cash Flow and Liquidity - Full year net cash flow provided by operating activities was $397 million, with adjusted free cash flow of $230 million, ending the quarter with $314 million in unrestricted cash[4] - The company reported a net cash flow used in operating activities of $4.6 million for the three months ended March 31, 2024, compared to a positive cash flow of $13.6 million in 2023[20] - Adjusted free cash flow for the year ended March 31, 2024, was $229.5 million, a substantial increase from $55.0 million in the previous year[60] - The company reported a significant increase in cash flows provided by operating activities to $2.6 million for the three months ended March 31, 2024, compared to $1.7 million for the same period in 2023[126] Debt and Obligations - Debt borrowings for the three months ended March 31, 2024, amounted to $874.5 million, significantly higher than $285.0 million in the same period of 2023[20] - Total film-related obligations at the end of Q1 2024 were $1,938.0 million, up from $2,023.6 million at the end of Q1 2023[65] - The company reported a significant increase in borrowings related to production loans, which are used to finance film and television production costs[76] - Total borrowings for the three months ended March 31, 2024, amounted to $748.0 million, a significant increase from $254.5 million in the same period of 2023, reflecting a growth of approximately 194.5%[126] Restructuring and Impairments - The company recorded a goodwill impairment charge of $493.9 million in fiscal 2024 related to the Media Networks reporting unit[41] - The company incurred $137.5 million in restructuring and other costs in Q1 2024, up from $95.4 million in Q1 2023, with total costs for the fiscal year 2024 at $508.5 million compared to $411.9 million in 2023[44] - The company recorded $12.8 million in development costs written off in Q1 2024 due to strategic changes in the Television Production segment following the acquisition of eOne[49] - The company has incurred total impairment charges of $743.8 million since the inception of its restructuring plan through March 31, 2024[46] Strategic Decisions and Future Outlook - The company completed four major transactions and moved closer to a value-defining separation of its studio and STARZ businesses, with plans for a full separation by the end of the calendar year[3] - The company has made a strategic decision to exit the LIONSGATE+ service in Latin America and the U.K., with remaining operations only in Canada and India[45] - The company expects future cash outlays related to restructuring to range between $80 million and $90 million, depending on strategic content reviews and recoverable amounts from alternative distribution strategies[47] - The company plans to continue investing in content and technology to drive future growth and market expansion[92] Non-GAAP Measures - Adjusted OIBDA is highlighted as an important performance measure, as it eliminates amounts that do not reflect the fundamental performance of the company's businesses[143] - The company utilizes non-GAAP financial measures to evaluate operating performance, including Adjusted OIBDA and Total Segment Profit, which are essential for understanding the fundamental performance of the business[130][133] - The company believes that Adjusted Free Cash Flow provides a clearer picture of liquidity and the ability to reduce net corporate debt and make strategic investments[84] - A general limitation of these non-GAAP measures is that they are not prepared in accordance with U.S. GAAP, and should be reviewed alongside relevant GAAP financial measures[145]
Lions Gate Entertainment(LGF_B) - 2024 Q4 - Annual Results