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.”
By DAVID LIEBERMAN, Financial Editor | Wednesday May 30, 2012 @ 4:43pm EDTTags: Lionsgate, Summit Entertainment, The Hunger Games
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This article was printed from http://www.deadline.com/2012/05/lionsgate-reports-fiscal-q4-loss-due-to-summit-acquisition-costs/
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