SANTA MONICA, Calif., and VANCOUVER, British Columbia -- Lionsgate (NYSE: LGF), the leading next generation studio, today reported revenue of $326.6 million and adjusted EBITDA of negative $13.7 million for the first quarter of fiscal year 2011 (quarter ended June 30, 2010).

Revenue declined 14% compared to the prior year's first quarter due primarily to the deconsolidation of TV Guide Network revenue, timing of television deliveries, decline in Mandate Pictures revenue compared to a record quarter last year as well as a decline in home entertainment revenue attributable to the smaller theatrical slate in fiscal 2010.

The Company noted that its television business remains on track to exceed last year's $351 million in revenue and $39.5 million contribution before overhead for the full year. The Company's first quarter library revenue was consistent with the prior year's first quarter, and full year library revenue is expected to equal or surpass last year's record revenue and cash flow.

The Company reported adjusted EBITDA of negative $13.7 million in the first quarter compared to $53.4 million for the prior year first quarter. Net loss was $64.1 million in the quarter compared to net income of $36.3 million in the prior year's first quarter. The loss was attributable primarily to an increase of $71.2 million in theatrical marketing costs as the Company distributed three wide releases in the quarter compared to one wide release in the prior year's first quarter. Stock-based compensation increased $23.3 million in the first quarter, primarily reflecting accelerated vesting of restricted share units (RSU's), stock options and stock appreciation rights caused by the triggering of change of control provisions in senior management contracts. The quarter also included $7.3 million in corporate defense costs related to shareholder activist activities.

Basic net loss per common share for the quarter was $0.54 on 118.2 million weighted average common shares outstanding, compared to basic net income of $0.31 on 117.1 million weighted average common shares outstanding in the prior year's first quarter.

"Our first quarter was affected by marketing costs for our three wide releases, timing of television deliveries and the underperformance of our theatrical release Killers," said Lionsgate Co-Chairman and Chief Executive Officer Jon Feltheimer. "With our upcoming theatrical slate, beginning with this Friday's opening of The Expendables, and the continued strength of our television, library and channel businesses, we remain poised to achieve our full year financial targets."

Overall motion picture revenue for the first quarter of fiscal 2011 was unchanged from the first quarter of the prior year at $272.7 million. Within the motion picture segment, theatrical revenue was $71.3 million, an increase of 214% from the prior year's first quarter, as the Company's theatrical release slate of Tyler Perry's Why Did I Get Married Too?, Kick-Ass and Killers achieved significantly higher box office than the film slate in the first quarter of the prior year, which included one wide release, Crank 2: High Voltage.

Lionsgate's home entertainment revenue from both motion pictures and television was $117.1 million in the first quarter, a 22% decline from the first quarter of the prior year, reflecting a smaller fiscal 2010 theatrical slate. The home entertainment revenue from theatrical titles such as Daybreakers, From Paris with Love, The Spy Next Door and Brothers compared to revenue from the slate of Madea Goes to Jail, My Bloody Valentine 3-D, Transporter 3, New in Town and The Spirit in the prior year's first quarter. Daybreakers, From Paris with Love and The Spy Next Door all ranked among the industry's top six titles in terms of DVD-to-box office conversion rate in the quarter as Lionsgate, bolstered by its distribution agreement with Redbox, maintained its leadership in DVD-to-box office conversion.

Television included in motion picture revenue (primarily pay television) was $30.0 million in the first quarter, an increase of 46% from the prior year's first quarter, driven by a slate that included Precious, Brothers, Gamer, Tyler Perry's I Can Do Bad All by Myself and Rambo.

International motion picture revenue of $29.1 million (excluding Lionsgate U.K.) in the first quarter increased 66% from the prior year's first quarter. The slate of Kick-Ass, Killers, Brothers, Daybreakers and Saw VI compared favorably to the slate in the prior year's first quarter.

Lionsgate U.K. revenue also increased, growing 9% to $16.3 million, reflecting the strength of Lionsgate titles such as Brothers and Daybreakers and third-party titles such as the Academy Award(R)-winning The Hurt Locker.

Mandate Pictures' revenue of $13.3 million in the first quarter declined 75% from the prior year's first quarter, affected primarily by timing and a slate that compared to revenues from the prior year's record first quarter slate that included Drag Me to Hell, Juno and Passengers.

Television production revenue was $53.9 million, a 38% decline from the prior year's first quarter, attributable primarily to timing as deliveries of one episode of "Mad Men Season 4" and eight episodes of "Scream Queens Season 2" compared to deliveries of six episodes of "Weeds Season 5" and 12 episodes of "Nurse Jackie Season 1" in the prior year's first quarter.

However, within that total, Debmar-Mercury's revenue increased 55% to $31.8 million in the first quarter on increased revenue from "Tyler Perry's House of Payne," "Meet The Browns" and "The Wendy Williams Show."

Lionsgate's filmed entertainment backlog increased to $478.6 million at June 30, 2010, one of the highest totals in the Company's history. Filmed entertainment backlog represents the amount of future revenue not yet recorded from contracts for the licensing of films and television product for television exhibition and in international markets.

 

Read more

Warner Bros. is now reporting that Inception made $47.75 million internationally this past weekend, which pushes its total abroad to $251.2 million.

According to Warner Bros., Inception was able to add another $46 million abroad from 8,000 screens in 58 markets. Christopher Nolan's mind-bender has now raked in $250 million internationally, which puts its worldwide cume at $477 million.

Inception opened in first place in Spain with $4.5 million from 491 screens and 468,000 admissions. In Brazil, the sci-fi flick debuted in second place with $2 million from 312 screens and 312,000 admissions.

Results from other countries:

inceptionforeign88.jpg

 

Read more

Source: Variety

Moviegoers should ready themselves for another take on the tale of a man raised by apes.

Germany's Constantin Film is set to produce an English-language version of Tarzan and they are planning to do it in 3D. Robert Kulzer and Reinhard Klooss (Resident Evil: Afterlife, The Three Musketeers) will serve as producers. No American studio is attached to distribute at this time.

The last time Hollywood took on Tarzan was in 1999 with Disney's animated effort. The film raked in nearly $450 million worldwide.

 

Read more

OMAHA, Nebraska -- Ballantyne Strong, Inc. (NYSE Amex: BTN), a provider of digital cinema projection equipment and services, cinema screens and other cinema products, today reported financial results for the second quarter (Q2) and six months ended June 30, 2010.

Second Quarter Results

Ballantyne Strong's net revenues rose 67% to $32.7 million, an all-time quarterly record, reflecting a significant increase in digital cinema equipment sales as well as year-over-year sales gains from cinema screens and digital cinema services. Net earnings rose to $2.8 million, or $0.19 per diluted share, compared to net earnings of $0.9 million, or $0.07 per diluted share a year-ago. Q2 2010 results were positively impacted by approximately $1.3 million ($0.8 million after-tax) of equity income and gains pertaining to the Company's 44.4% ownership in the Digital Link II, LLC joint venture during the quarter. The income primarily resulted from the sale of projectors that were previously held within the joint venture and compares to a net loss from the joint venture of $0.2 million in Q2 2009.

Sales of digital cinema equipment rose 97% to $19.7 million, reflecting growing global demand for digital projection systems, primarily in the Americas and China. Ballantyne's cinema screen sales increased approximately 45% to $4.5 million in Q2 2010, largely due to the ongoing worldwide adoption of 3D digital cinema technology, the bulk of which requires a specialty "silver" screen. Cinema services revenue nearly doubled to $2.1 million, reflecting the mid-April commencement of the Company's agreement with a major US exhibitor to handle their digital projection equipment installations and systems integration. To date, these installs and integrations have been running smoothly.

Consolidated gross profit rose to $6.0 million, or 18.2% of revenue in Q2 2010, from $4.3 million, or 21.7% of revenue in Q2 2009. The expected decline in gross profit margin reflects the increase in sales of digital projection equipment that carry lower margins than most of the Company's other products and services. SG&A rose 12.6% to approximately $3.0 million, but fell significantly as a percentage of net revenues to 9.1%, compared to 13.5% in Q2 2009. Ballantyne remains focused on limiting the growth in SG&A expenses in order to drive operating leverage.

Six-Month Results

For the six-month period ended June 30, 2010, net revenues rose 58.1% to $58.1 million. Gross profit in the first half of 2010 was $10.3 million, or 17.7% of net revenues, compared to first half 2009 gross profit of $7.6 million, or 20.8% of net revenues. Net earnings for the first six months of 2010 was $3.8 million, or $0.26 per diluted share, compared to net earnings of $1.5 million, or $0.10 per diluted share, in the first half of 2009.

Balance Sheet Update

Ballantyne generated $3.3 million in cash from operating activities and ended the quarter with $24.1 million in cash and cash equivalents, compared to $23.6 million at December 31, 2009.

John P. Wilmers, President and CEO, commented, "Sales and service momentum accelerated in the second quarter as the worldwide digital cinema rollout picked up additional steam due to the completion of digital cinema equipment funding for the three largest domestic exhibitors and a desire by other global exhibitors to capitalize on the success and expanding pipeline of 3D releases and alternative digital content. This momentum had an obvious positive impact on Ballantyne's 2010 first half operating results as our digital cinema business is benefiting from an increasing number of NEC digital projector sales in the Americas and China, a sharp ramp-up in digital cinema service installations and our cinema screen manufacturing business, which has been operating at full capacity in recent months.

"Given the growing backlog for cinema screens, we recently acquired our existing Canadian manufacturing facility and a parcel of adjacent land. We are undertaking a previously announced $6 million expansion of this facility, including the cost of the acquisition, with the goal of materially increasing our capacity to meet growing global demand for conventional, large-format, gain, silver and other specialized cinema screens. We expect to have this important expansion completed by year-end."

 

Read more

HOLLYWOOD, Calif. -- Paramount Pictures, Participant Media and Walden Media announced today 30,000 people have pledged to see the award-winning documentary film Waiting for "Superman" when it opens this fall, making it the first goal reached on the campaign's "Pledge Progress Meter." As a result, DonorsChoose.org is fulfilling their commitment and donating $5 gift cards to every person who pledges to see the film by September 15th.

The gift cards can be used to fulfill requests made by public school teachers from every corner of America who post classroom project needs on DonorsChoose.org. The mission of DonorsChoose.org is to improve public education by empowering every teacher to be a change-maker and enabling any citizen to be a philanthropist.

"Thanks to our generous supporters, DonorsChoose.org is thrilled to provide $5 philanthropic gift codes to people that take the pledge to see Waiting for 'Superman.' Redeeming this code on DonorsChoose.org gives people an immediate and direct way to help students get the resources they need to learn. Making this personal connection to a classroom is an important first step towards greater involvement in education," said Charles Best, DonorsChoose.org Founder and CEO.

Waiting for "Superman" directed by Davis Guggenheim (An Inconvenient Truth) will be released under the Paramount Vantage banner and distributed by Paramount Pictures. It examines the crisis of public education in the United States through multiple interlocking stories. Designed to start a national conversation, the movie and corresponding "Take the Pledge" campaign aim to inspire everyone to create innovative and long-term solutions to help change the course of our kids' lives for the better. The "Pledge Progress Meter" launched in May as a way for non-profits, foundations and corporations to match individual pledge levels with powerful action items aimed at helping both students and public schools. First Book was the first organization to take the pledge, by agreeing to donate 250,000 new books to schools and programs in low-income communities across the country once the pledge meter reaches 50,000 pledges.

The film opens in New York and Los Angeles on September 24, nationwide in October.

The film is produced by Lesley Chilcott, with Participant Media's Jeff Skoll and Diane Weyermann serving as executive producers. It is written by Davis Guggenheim & Billy Kimball.

 

Read more

Subscribe to Articles Feed