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Earnings Roundup / Lions Gate

Studio swings to loss and misses expectations

February 10, 2009|Times Wire Reports

Independent film studio Lions Gate Entertainment Corp. fell to a wider-than-expected loss in the third quarter as movies such as "Transporter 3" and "The Spirit" underperformed and operating costs rose.

Its results widely missed Wall Street expectations, sending its shares tumbling in after-hours trading.

The company, which operates under the Lionsgate name, lost $93.4 million, or 81 cents a share, compared with a profit of $7.3 million, or 6 cents, a year earlier.

Revenue rose 8% to $324 million.

Analysts polled by Thomson Reuters expected a narrower loss of 20 cents a share on revenue of $348.8 million.

Chief Executive Jon Feltheimer said the quarter's results would have a "significant negative impact" on the company's free cash flow and earnings before interest, taxes, depreciation and amortization, or EBITDA, for the year.

But he said 2010 should show "significant positive" EBITDA with fewer films and lower related marketing costs, as well as solid performance from its television and other businesses.

International revenue fell 8% to $41.1 million.

Mandate Pictures' revenue dropped 34% to $8.3 million. Mandate is the studio behind "Juno" and "Nick and Norah's Infinite Playlist." Lionsgate bought it in 2007.

Shares of Santa Monica-based Lions Gate fell 41 cents, or 7.7%, to $4.92 in after-hours trading after falling 17 cents to $5.33 in the regular session.

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