Lionsgate Earnings: $19.5M Net Loss on Record Revenue of $1.6B (updated)

Fighting takeover attempt, company also reports record EBITDA of $80.1M for fiscal 2010

Updated Wednesday 9:30 a.m. ET:

During a conference call on Wednesday, Lionsgate chairman and CEO Jon Feltheimer lauded shareholders for resisting Carl Icahn's latest takeover bid. "Less than 4 percent of shareholders tendered their shares," Feltheimer said. "We believe they clearly understand the real story."

He declined to take questions about Icahn during the earnings call.

Feltheimer noted that seven of Lionsgate's last 11 theatrical releases were profitable. "Kick Ass" and "Tyler Perry's Why Did I Get Married Too?" were "solidly profitable," he said.

He also said the company has been placing fewer yet smarter bets on network television pilots. "Running Wilde," the only pilot Lionsgate backed this year, was picked up by Fox for a 13-episode run.

Previously:

Lionsgate on Tuesday reported a net loss of $19.5 million for fiscal 2010 despite record revenue of nearly $1.6 billion.

Currently fighting a hostile takeover bid by noted raider Carl Icahn, the Vancouver-based company also reported record adjusted earnings before interest, taxes, depreciation and appreciation of $128.5, which was way above earlier projections of around $75 million.

Earlier on Tuesday, Lionsgate announced that its shareholders had rejected a bid by Icahn to purchase the company at a price of $7 per share. Icahn said Tuesday that he'll now escalate the matter into a proxy fight.

The adjusted EBITDA figure compares to a negative $122.9 million for fiscal 2009, while revenue was up 8 percent over the same period.

Lionsgate officials attribute the increased earnings to gains in its television division, as well as the performances of its library, its TV Guide Network operation, and its theatrical and home entertainment units.

The net loss included $28.1 million in red ink from equity interests, $26.6 million of that coming from the newly launched Epix movie channel.

Lionsgate reported general and administratrive expenses of $117.6 million for its core business, down 4 percent from fiscal 2009.

Icahn, who owns 18.8 percent of Lionsgate, launched a bid for the company in March, following extensive wranglings with management regarding expenditures and acquisitions. He has been calling for the ouster of top management and has been denied in his attempts to obtain a seat on the 12-member board of directors.

"We had a very strong year with contriutions from all of our businesses," Lionsgate chairman and CEO Jon Feltheimer said. "We are particularly pleased by the continued rapid growth of our television business, the ongoing progress of our channel investments and a record library performance despite a challenging industry environment. We are well positioned to continue the positive trend toward topline revenue growth, strong EBITDA and a return to positive cash flow as we continue to build the longterm value of our business."

Lionsgate's motion-picture revenue declined 38 percent for the year to $1.12 million, with the company launching only 10 films in fiscal 2010 compared to 16 in 2009. The company said marketing and distribution costs declined 23 percent to $515.8 million.

Home entertainment revenue was down 10 percent to $608.2 million, and was also affected by increased output.

On the television side, the company reported record revenue of $350.9 million, up 58 percent year to year.

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