This was a weird quarter for the independent studio. The good news? Revenues of $645.2M were up 71% vs. the quarter last year that ended in March, largely due to the box office bonanza from The Hunger Games‘ first eight days of receipts in North America. The bad news? Lionsgate ended up with a net loss of $22.7M, down from a $48.7M profit, as it dealt with $51M in costs related to its acquisition of Summit — consisting of $12M in transaction and severance costs, $26M in purchase accounting costs, and $13M in stock appreciation rights due to the increase in its stock price. Wall Street is disappointed; Lionsgate shares are down 6.3% in after-market trading. The revenue figure was well ahead of analysts’ $622.7M consensus forecast. But the net loss of 17 cents a share contrasts with expectations for a 25 cent profit. CEO Jon Feltheimer remains upbeat: “With substantially all of the profitability of the first Hunger Games film and this November’s release of The Twilight Saga: Breaking Dawn — Part 2 still alead of us, we have great visibility and have set the stage for anticipating strong EBITDA, free cash flow, and earnings in the years ahead.”

Maybe the loss also has something to do with the several misses that LGF continues to make on its film slate? Maybe those multi million dollar losses shouldn’t be ignored in this equation? Imainge a LGF with proper management? There would be no net loss!
Hear Hear!! In the wake of Hunger Games’s success, Lionsgate feels bulletproof and continues down awful decision road, the kind they had perfected before HG. Cabin in the Woods, Safe, and What to Expect When You’re Expecting all tanked and stunk of the Conan, Warrior, Abduction string of failures that had them on the ropes last year. Mark my words now… the new Madea will tank next month. It’s not a summer movie and will get buried and Expendables 2 will see similar numbers as the original . A hit, to be sure, but not a monster one (especially considering the budget). I also think Catching Fire is already in trouble and they’re on track to produce a terrible follow up because they’re so focused on rushing this thing into production. And keeping 2 completely separate marketing teams for what is essentially about a dozen solid theatrical releases a year is the worst kind of unexplainable waste.