Lionsgate spent nearly $8 million in legal fees during the last three months of 2010 to defend itself from Carl Icahn's hostile takeover bid -- and it cost the studio a change at a quarterly profit.
The company said on Wednesday that it lost $6 million during its fiscal third quarter -- a much better result than the $65.3 million net loss in the same period a year ago.
Lionsgate attributed the net loss to interest losses of $13.1 million (including $11.1 million in Lionsgate's interest in Epix) and $7.9 million in "corporate defense and associated costs related to shareholder activist activities." (Read: Carl Icahn.)
Lionsgate's overall revenue increased 24 percent to $422.9 million during the quarter on home entertainment (mostly DVD revenue from "The Expendables") and international film and TV revenue, and a slight increase in box office receipts.
The revenue jump was also the result of lower theatrical marketing costs, Lionsgate said.
Overall motion picture revenue was $326.7 million, up 30 percent the prior year. Within that, theatrical revenue was up 9 percent (to $53.8 million) on the strength of "The Next Three Days," "For Colored Girls" and "Saw 3D."
International motion picture revenue ($21.4 million) (excluding Lionsgate U.K.) increased 31 percent on the strength of "Saw 3D."
Lionsgate's home entertainment revenue was $174.4 million in the third quarter, up 63 percent, driven "The Expendables," "Tyler Perry's Madea's Big Happy Family," "Killers" and "Kick Ass," as well as releases from sister company Roadside Attractions ("Winter's Bone" and "Mad Men Season 3").
Revenue from Lionsgate's television production business was $96.2 million, up about 5 percent.
Here's the full earnings release:
SANTA MONICA, Calif., and VANCOUVER, British Columbia, Feb. 9, 2011 /PRNewswire/ -- Lionsgate (NYSE: LGF) today reported revenue of $422.9 million and adjusted EBITDA of $28.9 million for the third quarter of fiscal year 2011 (quarter ended December 31, 2010).
Revenue increased 24% compared to the prior year's third quarter driven primarily by increases in home entertainment and international film and TV revenue as well as a slight increase in theatrical revenue.
The Company reported adjusted EBITDA of $28.9 million in the third quarter compared to negative $9.5 million for the prior year's third quarter. Net loss was $6.0 million in the quarter compared to net loss of $65.3 million in the prior year's third quarter. The gain in quarter-to-quarter comparisons was attributable primarily to strong gains in the Company's home entertainment operations, driven by the DVD and digital performance of THE EXPENDABLES, robust international performance, gains in television production and syndication and lower theatrical marketing costs in the quarter despite three wide release films.
Net loss of $6.0 million in the quarter included non-cash equity interest losses of $13.1 million ($11.1 million attributable to Lionsgate's interest in Epix) and $7.9 million in corporate defense and associated costs related to shareholder activist activities.
Basic net loss per common share for the quarter was $0.04
