LIONSGATE REPORTS REVENUE OF $645.2 MILLION, EBITDA OF $6.8 MILLION, ADJUSTED EBITDA OF $30.0 MILLION AND NET LOSS OF $22.7 MILLION OR $(0.17) PER BASIC SHARE IN THE FOURTH QUARTER OF FISCAL 2012

LIONSGATE REPORTS REVENUE OF $645.2 MILLION, EBITDA OF $6.8 MILLION, ADJUSTED EBITDA OF $30.0 MILLION AND NET LOSS OF $22.7 MILLION OR $(0.17) PER BASIC SHARE IN THE FOURTH QUARTER OF FISCAL 2012

COMPANY REPORTS REVENUE OF $1.59 BILLION AND EBITDA OF $45.2 MILLION FOR FULL FISCAL YEAR 2012; ADJUSTED EBITDA FOR THE FISCAL YEAR IS $71.6 MILLION; NET LOSS IS $39.1 MILLION OR $(0.30) PER BASIC SHARE

Fourth Quarter Results Impacted by $38 Million of Transaction and Purchase Accounting Costs Associated With Acquisition of Summit Entertainment and $13 Million in Increased Stock Appreciation Rights (SARS) Related to Stock Price Increase



SANTA MONICA, Calif. and VANCOUVER, British Columbia, May 30, 2012 /PRNewswire/ -- Lionsgate (NYSE: LGF) today reported revenue of $645.2 million, EBITDA of $6.8 million, adjusted EBITDA of $30.0 million and net loss of $22.7 million or $(0.17) per share for the fourth quarter of Fiscal 2012 (quarter ended March 31, 2012).

Revenue of $645.2 million in the fourth quarter increased by 71% compared to $376.9 million in the prior year quarter, driven by theatrical revenue of the global blockbuster THE HUNGER GAMES' first eight days in North American theatrical release, the home entertainment release of THE TWILIGHT SAGA: BREAKING DAWN - PART 1 and strong television and library revenues.

EBITDA of $6.8 million and adjusted EBITDA of $30.0 million in the fourth quarter compared to EBITDA of $63.0 million and adjusted EBITDA of $67.9 million in the prior year quarter and net loss of $22.7 million in the fourth quarter compared to net income of $48.7 million in the prior year quarter due in part to $38 million in transaction and purchase accounting costs associated with the January 2012 acquisition of Summit Entertainment, including $12 million in transaction and severance costs and a $26 million impact on the profitability of the home entertainment release of THE TWILIGHT SAGA: BREAKING DAWN - PART 1 due to the application of purchase accounting required by GAAP.

Fourth quarter results were also affected by theatrical marketing costs for four releases in the quarter, including THE HUNGER GAMES, an additional $16 million in advance theatrical marketing costs for fiscal 2013 film releases and $13 million in increased stock appreciation rights (SARS) related to the increase in the Company's stock price in the quarter. There were no theatrical releases with marketing costs in the prior year quarter.

Increased interest expense along with the factors affecting EBITDA discussed above contributed to the net loss in the quarter.

Television And Filmed Entertainment Library Revenues Hit Record Levels In Fiscal Year; Filmed Entertainment Backlog Reaches $1 Billion

The Company reported revenue of $1.59 billion, EBITDA of $45.2 million, adjusted EBITDA of $71.6 million and net loss of $39.1 million for the full fiscal year 2012 (fiscal year ended March 31, 2012).

"Fiscal 2012 was a milestone year with the acquisition of Summit Entertainment, the rollout of our record-breaking film THE HUNGER GAMES, continued growth in library revenues and the increasing profitability of our diversified television business," said Lionsgate Chief Executive Officer Jon Feltheimer. "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 ahead of us, we have great visibility and have set the stage for anticipated strong EBITDA, free cash flow and earnings in the years ahead."

Fiscal 2012 revenues were comparable to fiscal 2011 as record television revenues of $397 million and theatrical revenue growth offset declines in home entertainment, international film and pay TV revenue due to a smaller theatrical slate. Only eight days of the North American theatrical revenues of THE HUNGER GAMES, released on March 23, 2012, are included in fiscal 2012 financial results.

The Company reported EBITDA of $45.2 million and adjusted EBITDA of $71.6 million for the fiscal year compared to EBITDA of $33.1 million and adjusted EBITDA of $77.3 million in the prior year. The increased EBITDA reflected growth in television and library profitability, reduced theatrical marketing costs, increased equity interest income and a one-time gain on the sale of Maple Pictures offset in part by the factors described above affecting the fourth quarter, including transaction and severance costs associated with the Summit acquisition and increased stock appreciation rights related to the increase in the Company's stock price in the fourth quarter, as well as underperformance of certain films earlier in the year.

Net loss of $39.1 million in fiscal 2012 compared to net loss of $30.4 million in the prior year due to higher interest costs partially offset by the increased EBITDA discussed above. Basic net loss per common share for the fiscal year was $0.30 on 132.2 million weighted average common shares outstanding, compared to basic net loss per common share of $0.23 on 131.2 million weighted average common shares outstanding in the prior year.

Equity interest income was $8.4 million in the fiscal year compared to a loss of $20.7 million in the prior year, with the turnaround to profitability primarily attributable to the Company's interest in EPIX.

Filmed entertainment library revenues increased to a record $416 million in the fiscal year, an 11% increase from the prior year.

Lionsgate's filmed entertainment backlog reached a record $1.0 billion at March 31, 2012, its sixth consecutive quarter of growth, driven in part by incorporation of the Summit Entertainment backlog. 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.

Overall motion picture revenue for 2012 was $1.19 billion, a decrease of 3% from the prior year. Within the motion picture segment, theatrical revenue was $208.9 million, an increase of 2% from the prior year, attributable to the strength of the first eight days of THE HUNGER GAMES in North American theatrical release which offset the impact of a significantly smaller overall theatrical slate compared to the prior year.

Lionsgate's home entertainment revenue from both motion pictures and television was $683.5 million in the fiscal year compared to $690.0 million in the prior year. Revenue from home entertainment releases of television programming increased 87% from the prior year and, coupled with the February 2012 home entertainment release of THE TWILIGHT SAGA: BREAKING DAWN - PART 1, offset declines attributable to a smaller film slate.

Television revenue included in motion picture revenue was $119.9 million in the fiscal year, a decrease of 14% from the prior year.

International motion picture revenue of $112.9 million (excluding Lionsgate U.K.) for the fiscal year decreased 11% from the prior year due to a smaller overall theatrical slate.

Despite a smaller number of releases compared to the prior year, Lionsgate U.K. revenue grew by 28% to $101.5 million, driven primarily by the first eight days of THE HUNGER GAMES in UK release and THE EXPENDABLES.

Mandate Pictures' revenue grew by 43% to $55.4 million in the fiscal year on the strength of titles such as 50/50, A VERY HAROLD & KUMAR 3D CHRISTMAS and YOUNG ADULT.

Television production revenue was a record $397.3 million in the fiscal year, an increase of 13% from the prior year driven by home entertainment releases of television programming, primarily the digital media revenue from the first four seasons of "Mad Men" and digital media revenue from the first five seasons of "Weeds."

Digital media revenue, which is included in home entertainment revenue discussed above and includes electronic sell-through, video on demand and revenue from other digital media platforms, increased 38% in the fiscal year to $193 million.

Lionsgate G&A expenses in the fiscal year were $168.9 million, a 1% decline from the prior year as decreased costs related to shareholder activism offset one-time severance and transaction costs related to the acquisition of Summit Entertainment, higher G&A of the combined entity and increases in stock appreciation rights associated with the increase in the Company's stock price.

Lionsgate senior management will hold its analyst and investor conference call to discuss its fiscal year 2012 and fourth quarter financial results at 9:00 A.M. ET/6:00 A.M. PT on Thursday, May 31, 2012. Interested parties may participate live in the conference call by calling 1-800-230-1085 (612-234-9960 outside the U.S. and Canada). A full digital replay will be available from Thursday morning, May 31, through Thursday, June 7, by dialing 1-800-475-6701 (320-365-3844 outside the U.S. and Canada) and using access code 248708.

ABOUT LIONSGATE

Lionsgate is a leading global entertainment company with a strong and diversified presence in motion picture production and distribution, television programming and syndication, home entertainment, family entertainment, digital distribution, new channel platforms and international distribution and sales. The Company has built a significant television presence in production of primetime cable and broadcast network series, distribution and syndication of programming and an array of channel assets. Lionsgate currently has 23 shows on 16 networks spanning its primetime production, distribution and syndication businesses, including such critically-acclaimed hits as the multiple Emmy Award-winning "Mad Men," "Weeds" and "Nurse Jackie," along with the powerful drama "Boss," the new network series "Nashville" and "Next Caller," the syndication successes "Tyler Perry's House of Payne," its spinoff "Meet the Browns," "The Wendy Williams Show" and "Are We There Yet?" and the upcoming "Anger Management," starring Charlie Sheen, and "Orange Is The New Black," an original series for Netflix.

Its feature film business has been fueled by such recent successes as the blockbuster first installment of "The Hunger Games" franchise, which has already grossed nearly $650 million at the worldwide box office, "The Expendables," "The Lincoln Lawyer," "Cabin In The Woods," "Tyler Perry's Madea's Big Happy Family" and "Margin Call." With the January 2012 acquisition of Summit Entertainment, the Company added the blockbuster "The Twilight Saga," which has grossed more than $2.5 billion at the worldwide box office, to a slate that already included its "The Hunger Games" franchise and now has the two premier young adult franchises in the world. Recent Summit hits include "Red," "Letters to Juliet," "Knowing," the "Step Up" franchise and the Academy Award-winning Best Picture, "The Hurt Locker."

Lionsgate's home entertainment business is an industry leader in box office-to-DVD and box office-to-VOD revenue conversion rate. Lionsgate handles a prestigious and prolific library of approximately 13,000 motion picture and television titles that is an important source of recurring revenue and serves as the foundation for the growth of the Company's core businesses. The Lionsgate and Summit brands remain synonymous with original, daring, quality entertainment in markets around the world.

For further information, please contact:
Peter D. Wilkes
310-255-3726
pwilkes@lionsgate.com

The matters discussed in this press release include forward-looking statements, including those regarding the performance of future fiscal years. Such statements are subject to a number of risks and uncertainties. Actual results in the future could differ materially and adversely from those described in the forward-looking statements as a result of various important factors, including the substantial investment of capital required to produce and market films and television series, increased costs for producing and marketing feature films and television series, budget overruns, limitations imposed by our credit facilities and notes, unpredictability of the commercial success of our motion pictures and television programming, the cost of defending our intellectual property, difficulties in integrating acquired businesses, risks related to our acquisition strategy and integration of acquired businesses, the effects of disposition of businesses or assets, technological changes and other trends affecting the entertainment industry, and the risk factors as set forth in Lionsgate's Annual Report on Form 10-K, filed with the Securities and Exchange Commission (the "SEC") on May 30, 2012, which risk factors are incorporated herein by reference. The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements that may be made to reflect any future events or circumstances.






LIONS GATE ENTERTAINMENT CORP. CONSOLIDATED BALANCE SHEETS

March 31, March 31,
2012 2011
---- ----
As adjusted (1)
(Amounts in thousands,
except share amounts)
ASSETS
Cash and cash equivalents $64,298 $86,419
Restricted cash 11,936 43,458
Accounts receivable, net of reserve
for returns and allowances of
$93,860 (March 31, 2011 -
$90,715) and provision for doubtful accounts of $4,551 (March 31, 2011 - $2,427) 784,530 330,624
Investment in films and television
programs, net 1,329,053 607,757
Property and equipment, net 9,772 9,089
Equity method investments 171,262 161,894
Goodwill 326,633 239,254
Other assets 90,511 46,322
Assets held for sale - 44,336
Total assets $2,787,995 $1,569,153


LIABILITIES
Senior revolving credit facility $99,750 $69,750
Senior secured second-priority notes 431,510 226,331
Term loan 477,514 -
Accounts payable and accrued
liabilities 371,092 230,989
Participations and residuals 420,325 297,482
Film obligations and production loans 561,150 326,440
Convertible senior subordinated notes
and other financing obligations 108,276 110,973
Deferred revenue 228,593 150,937
Liabilities held for sale - 17,396
Total liabilities 2,698,210 1,430,298


Commitments and contingencies

SHAREHOLDERS' EQUITY

Common shares, no par value,
500,000,000 shares authorized,
143,980,754 and
136,839,445 shares issued at
March 31, 2012 and March 31,
2011, respectively 712,623 643,200
Accumulated deficit (542,039) (502,921)
Accumulated other comprehensive loss (3,711) (1,424)
------ ------
166,873 138,855
Treasury shares, no par value,
11,040,493 shares and nil at March
31, 2012 and 2011, respectively (77,088) -
------- ---
Total shareholders' equity 89,785 138,855
Total liabilities and
shareholders' equity $2,787,995 $1,569,153
---------------------- ========== ==========





(1) In the quarter ended
March 31, 2012, the Company
eliminated the lag in recording
its share of EPIX's results, and
accordingly, for the year ended
March 31, 2012, the Company has
recorded its share of the net
income generated by EPIX for the
twelve months ended March 31,
2012. Due to the elimination of
the lag in recording the
Company's share of EPIX's
results, prior period amounts
presented have been adjusted to
eliminate the lag in reporting.
The elimination of the lag in
reporting of EPIX increased net
loss recorded for the year ended
March 31, 2012 by $1.3 million.
As a result of the elimination of
the lag in reporting, net loss
was decreased from $53.6 million
previously reported to $30.4
million for the year ended March
31, 2011 and net loss was
increased from $19.5 million
previously reported to $30.3
million for the year ended March
31, 2010. The change had no
impact on cash flows from
operating, investing, or
financing activities.






LIONS GATE ENTERTAINMENT CORP. ANNUAL CONSOLIDATED STATEMENTS OF OPERATIONS

Year Year Year
Ended Ended Ended
March 31, March 31, March 31,
2012 2011 2010
---- ---- ----
As adjusted (1) As adjusted (1)
(Amounts in thousands, except per share amounts)


Revenues $1,587,579 $1,582,720 $1,489,506
Expenses:
Direct operating 908,402 795,746 777,969
Distribution and
marketing 483,513 547,226 506,141
General and
administration 168,864 171,407 143,060
Gain on sale of
asset disposal
group (10,967) - -
Depreciation and
amortization 4,276 5,811 12,455

Total expenses 1,554,088 1,520,190 1,439,625
--------- --------- ---------
Operating income 33,491 62,530 49,881
------ ------ ------
Other expenses (income):
Interest expense
Contractual
cash based
interest 62,430 38,879 27,461
Amortization
of debt
discount
(premium) and
deferred
financing
costs 15,681 16,301 19,701
Total interest expense 78,111 55,180 47,162
Interest and
other income (2,752) (1,742) (1,547)
Loss (gain) on
extinguishment
of debt 967 14,505 (5,675)
Total other
expenses, net 76,326 67,943 39,940
------ ------ ------
Income (loss) before equity interests and income
taxes (42,835) (5,413) 9,941
Equity interests income (loss) 8,412 (20,712) (38,995)
----- ------- -------
Loss before income taxes (34,423) (26,125) (29,054)
Income tax provision 4,695 4,256 1,218
----- ----- -----
Net loss $(39,118) $(30,381) $(30,272)
======== ======== ========

Basic Net Loss Per Common Share $(0.30) $(0.23) $(0.26)
====== ====== ======
Diluted Net Loss Per Common Share $(0.30) $(0.23) $(0.26)
====== ====== ======
Weighted average number of common shares outstanding:
Basic 132,226 131,176 117,510
Diluted 132,226 131,176 117,510







(1) See footnote on
Consolidated Balance Sheets
table




LIONS GATE ENTERTAINMENT CORP. FOURTH QUARTER CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Three Months
Ended Ended
March 31, March 31,
2012 2011
---- ----
As adjusted (1)
(Amounts in thousands,
except per share amounts)

Revenues $645,213 $376,915
Expenses:
Direct operating 360,743 195,266
Distribution and
marketing 204,319 85,746
General and
administration 75,713 37,072
Depreciation and
amortization 1,673 1,326

Total expenses 642,448 319,410
------- -------
Operating income 2,765 57,505
----- ------
Other expenses (income):
Interest expense
Contractual
cash based
interest 22,087 9,200
Amortization
of debt
discount
(premium) and
deferred
financing
costs 4,885 4,245
Total interest expense 26,972 13,445
Interest and
other income (892) (660)
Total other
expenses, net 26,080 12,785
------ ------
Income (loss) before equity interests and income
taxes (23,315) 44,720
Equity interests income 2,407 4,149
----- -----
Income (loss) before income taxes (20,908) 48,869
Income tax provision 1,838 211
----- ---
Net income (loss) $(22,746) $48,658
======== =======

Basic Net Income (Loss) Per Common Share $(0.17) $0.36
====== =====
Diluted Net Income (Loss) Per Common Share $(0.17) $0.34
====== =====
Weighted average number of common shares outstanding:
Basic 131,735 136,792
Diluted 131,735 150,861







(1) See footnote on Consolidated
Balance Sheets table




LIONS GATE ENTERTAINMENT CORP. ANNUAL CONSOLIDATED STATEMENTS OF CASH FLOWS

Year Year Year
Ended Ended Ended
March 31, March 31, March 31,
2012 2011 2010
---- ---- ----
As adjusted (1) As adjusted (1)
(Amounts in thousands)
Operating Activities:
Net loss $(39,118) $(30,381) $(30,272)
Adjustments to reconcile net loss to
net cash provided by (used in) operating
activities:
Depreciation of
property and
equipment 3,023 4,837 7,526
Amortization of
intangible
assets 1,253 974 4,929
Amortization of
films and
television
programs 603,660 529,428 511,658
Amortization of
debt discount
(premium) and
deferred
financing
costs 15,681 16,301 19,701
Accreted
interest
payment from
equity method
investee TV
Guide - 10,200 -
Non-cash
stock-based
compensation 9,957 29,204 17,875
Gain on sale of
asset disposal
group (10,967) - -
Loss (gain) on
extinguishment
of debt 967 14,505 (5,675)
Equity
interests
(income) loss (8,412) 20,712 38,995
Changes in operating assets and liabilities:
Restricted cash 37,636 (43,067) (187)
Accounts
receivable,
net (256,208) (64,203) (79,392)
Investment in
films and
television
programs (690,304) (487,391) (471,087)
Other assets 1,298 (298) (4,443)
Accounts
payable and
accrued
liabilities 29,558 3,869 (22,769)
Participations
and residuals 19,813 (1,369) (69,574)
Film
obligations 87,726 19,154 (48,786)
Deferred
revenue 30,969 19,852 (3,459)
Net Cash Flows Provided By (Used In) Operating
Activities (163,468) 42,327 (134,960)
-------- ------ --------
Investing Activities:
Purchases of restricted investments - (13,993) (13,994)
Proceeds from the sale of restricted
investments - 20,989 13,985
Purchase of Summit, net of unrestricted cash
acquired of $315,932 (553,732) - -
Buy-out of the earn-out associated with the
acquisition of Debmar-Mercury, LLC - (15,000) -
Proceeds from the sale of asset disposal group,
net of transaction costs, and cash disposed of
$3,943 9,119 - -
Investment in equity method investees (1,030) (24,677) (47,129)
Increase in loans receivable (4,671) (1,042) (1,418)
Repayment of loans receivable - 8,113 8,333
Purchases of property and equipment (1,885) (2,756) (3,684)
Net Cash Flows Used In Investing Activities (552,199) (28,366) (43,907)
-------- ------- -------
Financing Activities:
Exercise of stock options 3,520 - -
Tax withholding requirements on equity awards (4,320) (13,476) (2,030)
Repurchase of common shares (77,088) - -
Proceeds from the issuance of mandatorily
redeemable preferred stock units
and common
stock units
related to the
sale of 49%
interest in TV
Guide Network,
net of
unrestricted
cash
deconsolidated - - 109,776
Borrowings under senior revolving credit
facility 390,650 525,250 302,000
Repayments of borrowings under senior revolving
credit facility (360,650) (472,500) (540,000)
Borrowings under individual production loans 276,886 118,589 144,741
Repayment of individual production loans (207,912) (147,102) (136,261)
Production loan borrowings under Pennsylvania
Regional Center credit facility - - 63,133
Production loan borrowings under film credit
facility 54,325 19,456 30,469
Production loan repayments under film credit
facility (30,813) (34,762) (2,718)
Change in restricted cash collateral associated
with financing activities - 3,087 -
Proceeds from Term Loan associated with the
acquisition of Summit, net of debt discount of
$7,500 476,150 - -
and deferred
financing
costs of
$16,350
Repayments of borrowings under Term Loan
associated with the acquisition of Summit (15,066) - -
Proceeds from sale of senior secured second-
priority notes, net of deferred financing
costs 201,955 - -
Repurchase of senior secured second-priority
notes (9,852) - 214,727
Proceeds from the issuance of convertible
senior subordinated notes 45,000 - -
Repurchase of convertible senior subordinated
notes (46,059) - (75,185)
Repayment of other financing obligations - - (134)
Net Cash Flows Provided By (Used In) Financing
Activities 696,726 (1,458) 108,518
------- ------ -------
Net Change In Cash And Cash Equivalents (18,941) 12,503 (70,349)
Foreign Exchange Effects on Cash (3,180) 4,674 1,116
Cash and Cash Equivalents - Beginning Of Period 86,419 69,242 138,475
------
Cash and Cash Equivalents - End Of Period $64,298 $86,419 $69,242
======= ======= =======







(1) See footnote on Consolidated
Balance Sheets table




LIONS GATE ENTERTAINMENT CORP. FOURTH QUARTER CONSOLIDATED STATEMENTS OF CASH FLOWS

Three Months Three Months
Ended Ended
March 31, March 31,
2012 2011
---- ----
As adjusted (1)
(Amounts in thousands)
Operating Activities:
Net income (loss) $(22,746) $48,658
Adjustments to reconcile net income (loss) to
net cash provided by operating activities:
Depreciation
of property
and equipment 640 1,242
Amortization
of intangible
assets 1,033 84
Amortization
of films and
television
programs 248,449 128,845
Amortization
of debt
discount
(premium) and
deferred
financing
costs 4,885 4,245
Accreted
interest
payment from
equity method
investee TV
Guide - 10,200
Non-cash
stock-based
compensation 2,358 2,813
Equity
interests
income (2,407) (4,149)
Changes in operating assets and liabilities:
Restricted
cash 19,643 (24,368)
Accounts
receivable,
net (199,280) 40,836
Investment in
films and
television
programs (138,498) (66,243)
Other assets (400) 1,160
Accounts
payable and
accrued
liabilities 81,325 (28,506)
Participations
and residuals 35,654 19,800
Film
obligations 35,335 36,726
Deferred
revenue (17,607) (13,380)
Net Cash Flows Provided By Operating
Activities 48,384 157,963
------ -------
Investing Activities:
Purchase of Summit, net of unrestricted cash
acquired of $315,932 (553,732) -
Increase in loans receivable (3,171) (1,042)
Purchases of property and equipment (336) (1,569)
Net Cash Flows Used In Investing Activities (557,239) (2,611)
-------- ------
Financing Activities:
Exercise of stock options 3,369 -
Tax withholding requirements on equity awards (1,690) (557)
Borrowings under senior revolving credit
facility 127,000 43,500
Repayments of borrowings under senior
revolving credit facility (121,750) (198,000)
Borrowings under individual production loans 78,738 18,386
Repayment of individual production loans (73,914) (3,805)
Production loan borrowings under film credit
facility 10,611 1,735
Production loan repayments under film credit
facility (7,295) (3,255)
Proceeds from Term Loan associated with the
acquisition of Summit, net of debt discount
of $7,500 476,150 -
and deferred
financing
costs of
$16,350
Repayments of borrowings under Term Loan
associated with the acquisition of Summit (15,066) -
Proceeds from the issuance of convertible
senior subordinated notes 45,000 -
Net Cash Flows Provided By (Used In)
Financing Activities 521,153 (141,996)
------- --------
Net Change In Cash And Cash Equivalents 12,298 13,356
Foreign Exchange Effects on Cash (851) 3,485
Cash and Cash Equivalents -Beginning Of
Period 52,851 69,578
------ ------
Cash and Cash Equivalents - End Of Period $64,298 $86,419
======= =======







LIONS GATE ENTERTAINMENT CORP. RECONCILIATION OF NET LOSS TO ANNUAL EBITDA AND ANNUAL EBITDA, AS ADJUSTED

Year Year Year
Ended Ended Ended
March 31, March 31, March 31,
2012 2011 2010
---- ---- ----
As adjusted (1) As adjusted (1)
(Amounts in thousands)


Net loss $(39,118) $(30,381) $(30,272)
Depreciation
and
amortization 4,276 5,811 12,455
Contractual
cash based
interest 62,430 38,879 27,461
Noncash
interest
expense 15,681 16,301 19,701
Interest and
other income (2,752) (1,742) (1,547)
Income tax
provision 4,695 4,256 1,218
EBITDA (2) $45,212 $33,124 $29,016
======= ======= =======

Gain on sale of
asset disposal
group (10,967) - -
Loss (gain) on
extinguishment
of debt 967 14,505 (5,675)
Stock-based
compensation
(3) 25,014 32,505 18,823
Acquisition
related
charges 11,957 - -
Corporate
defense
charges (1,726) 22,865 5,668
Non-risk
prints and
advertising
expense 1,095 (25,659) 32,126
EBITDA, as adjusted $71,552 $77,340 $79,958
======= ======= =======




(1) See footnote on
Consolidated Balance
Sheets table

(2) The definition of
EBITDA has been
revised to conform
strictly to the
acronym of earnings
before interest,
income taxes, and
depreciation and
amortization. EBITDA
as previously
reported also
excluded the gain on
sale of asset
disposal group,
losses on
extinguishment of
debt, and equity
interests.

(3) The year ended March
31, 2011 includes
$21.9 million in
additional
compensation expense
associated with the
immediate vesting of
certain equity awards
held by certain
executive officers as
a result of the
triggering of "change
in control"
provisions in their
respective employment
agreements, which
occurred on June 30,
2010.









LIONS GATE ENTERTAINMENT CORP. RECONCILIATION OF NET INCOME (LOSS) TO FOURTH QUARTER EBITDA ANDFOURTH QUARTER EBITDA, AS ADJUSTED

Three Months Three Months
Ended Ended
March 31, March 31,
2012 2011
---- ----
As adjusted (1)
(Amounts in thousands)


Net (loss) income $(22,746) $48,658
Depreciation and amortization 1,673 1,326
Contractual cash based interest 22,087 9,200
Noncash interest expense 4,885 4,245
Interest and other income (892) (660)
Income tax provision 1,838 211
EBITDA $6,845 $62,980
====== =======

Stock-based compensation 15,282 2,530
Acquisition related charges 9,632 -
Corporate defense and related
charges (2,770) 2,416
Non-risk prints and advertising
expense 1,017 (5)
EBITDA, as adjusted $30,006 $67,921
======= =======







(1) See footnote on Consolidated
Balance Sheets table






EBITDA is defined as earnings before interest, income tax provision, and depreciation and amortization. EBITDA is a non-GAAP financial measure.

EBITDA, as adjusted represents EBITDA as defined above adjusted for stock-based compensation, acquisition related charges, certain corporate defense and related charges, and non-risk prints and advertising expense. Stock-based compensation represents compensation expenses associated with stock options, restricted share units and stock appreciation rights. Acquisition related charges represent severance and transaction costs associated with the acquisition of Summit. Corporate defense and related charges represent legal fees, other professional fees, and certain other costs associated with a shareholder activist matter. Non-risk prints and advertising expense represents the amount of theatrical marketing expense for third party titles that the Company funded and expensed for which a third party provides a guarantee that such expense will be recouped from the performance of the film (i.e. there is no risk of loss to the company) net of an amount of the estimated amortization of participation expense that would have been recorded if such amount had not been expensed.

Management believes EBITDA and EBITDA, as adjusted to be a meaningful indicator of our performance that provides useful information to investors regarding our financial condition and results of operations. Presentation of EBITDA and EBITDA, as adjusted is a non-GAAP financial measure commonly used in the entertainment industry and by financial analysts and others who follow the industry to measure operating performance. While management considers EBITDA and EBITDA, as adjusted to be an important measure of comparative operating performance, it should be considered in addition to, but not as a substitute for, net income and other measures of financial performance reported in accordance with Generally Accepted Accounting Principles. EBITDA and EBITDA, as adjusted do not reflect cash available to fund cash requirements. Not all companies calculate EBITDA or EBITDA, as adjusted in the same manner and the measure as presented may not be comparable to similarly-titled measures presented by other companies.





LIONS GATE ENTERTAINMENT CORP. RECONCILIATION OF ANNUAL FREE CASH FLOW TO NET CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES

Year Year Year
Ended Ended Ended
March 31, March 31, March 31,
2012 2011 2010
---- ---- ----
(Amounts in thousands)

Net Cash Flows Provided
By (Used In) Operating
Activities $(163,468) $42,327 $(134,960)
Purchases of property and
equipment (1,885) (2,756) (3,684)
Net borrowings under and
(repayment) of production
loans 92,486 (43,819) 36,231
Restricted cash held in trust (13,992) 13,992 -
Free Cash Flow, as
defined $(86,859) $9,744 $(102,413)
======== ====== =========







LIONS GATE ENTERTAINMENT CORP. RECONCILIATION OF FOURTH QUARTER FREE CASH FLOW TO NET CASH FLOWS PROVIDED BY OPERATING ACTIVITIES

Three Months Three Months
Ended Ended
March 31, March 31,
2012 2011
---- ----
(Amounts in thousands)

Net Cash Flows Provided
By Operating Activities $48,384 $157,963
Purchases of property and
equipment (336) (1,569)
Net borrowings under and
(repayment) of production
loans 8,140 13,061
Restricted cash held in trust - (1,823)
Free Cash Flow, as
defined $56,188 $167,632
======= ========





Free cash flow is defined as net cash flows provided by (used in) operating activities, less purchases of property and equipment, plus or minus the net increase or decrease in production loans including production loan activity under the Company's Film Credit Facility, plus or minus the net increase or decrease in restricted cash held in a trust to fund the Company's cash severance obligations that would be due to certain executive officers should their employment be terminated "without cause," (as defined), in connection with a "change in control" of the Company, (as defined in each of their respective employment contracts). For purposes of the employment agreements with such executive officers, a "change in control" occurred on June 30, 2010 when a certain shareholder became the beneficial owner of 33% or more of the Company's common shares. The adjustment for the production loans is made because the GAAP based cash flows from operations reflects a non-cash reduction of cash flows for the cost of films associated with production loans prior to the time the Company actually pays for the film. The Company believes that it is more meaningful to reflect the impact of the payment for these films in its free cash flow when the payments are actually made.

Free cash flow is a non-GAAP financial measure as defined in Regulation G promulgated by the Securities and Exchange Commission. This non-GAAP financial measure is in addition to, not a substitute for, or superior to, measures of financial performance prepared in accordance with Generally Accepted Accounting Principles.

Management believes this non-GAAP measure provides useful information to investors regarding cash that our operating businesses generate whether classified as operating or financing activity (related to the production of our films) within our GAAP based statement of cash flows, before taking into account cash movements that are non-operational. Free cash flow is a non-GAAP financial measure commonly used in the entertainment industry and by financial analysts and others who follow the industry. Not all companies calculate free cash flow in the same manner and the measure as presented may not be comparable to similarly titled measures presented by other





LIONS GATE ENTERTAINMENT CORP. RECONCILIATION OF ANNUAL EBITDA TO ANNUAL FREE CASH FLOW

Year Year Year
Ended Ended Ended
March 31, March 31, March 31,
2012 2011 2010
---- ---- ----
As adjusted (1) As adjusted (1)
(Amounts in thousands)

EBITDA $45,212 $33,124 $29,016

Plus:
Amortization
of film and
television
programs 603,660 529,428 511,658
Less: Cash paid
for film and
television
programs (1) (510,092) (512,056) (483,642)
--------------
Amortization of
film and
television
programs
in excess of cash paid 93,568 17,372 28,016

Plus: Non-cash
stock-based
compensation 9,957 29,204 17,875
Less: Gain on
sale of asset
disposal group (10,967) - -
Less: Equity
interests
(income) loss (8,412) 20,712 38,995
Plus: Loss
(gain) on
extinguishment
of debt 967 14,505 (5,675)
--------------

EBITDA adjusted for net investment in film and
television programs
non-cash
stock-based
compensation,
gain on sale
of asset
disposal group,
equity
interests
(income) loss
and loss
(gain) on
extinguishment
of debt 130,325 114,917 108,227

Changes in other operating assets and
liabilities:
Restricted cash
excluding
funds held in
trust 23,644 (29,075) (187)
Accounts
receivable,
net (256,208) (64,203) (79,392)
Other assets 1,298 (298) (4,443)
Accounts
payable and
accrued
liabilities 29,558 3,869 (22,769)
Participations
and residuals 19,813 (1,369) (69,574)
Deferred
revenue 30,969 19,852 (3,459)
Accreted
interest
payment from
equity method
investee TV
Guide - 10,200 -
(150,926) (61,024) (179,824)

Purchases of
property and
equipment (1,885) (2,756) (3,684)
Interest, taxes
and other (2) (64,373) (41,393) (27,132)

Free Cash Flow, as defined $(86,859) $9,744 $(102,413)
======== ====== =========



(1)Cash paid for film and television programs is
calculated using the following amounts
as presented in
our
consolidated
statement of
cash flows:

Change in
investment in
film and
television
programs $(690,304) $(487,391) $(471,087)
Change in film
obligations 87,726 19,154 (48,786)
Borrowings
under
individual
production
loans 276,886 118,589 144,741
Repayment of
individual
production
loans (207,912) (147,102) (136,261)
Production loan
borrowings
under film
credit
facility 54,325 19,456 30,469
Production loan
repayments
under film
credit
facility (30,813) (34,762) (2,718)
Total cash paid for film and
television programs $(510,092) $(512,056) $(483,642)
========= ========= =========


(2)Interest, taxes and other consists of the
following:

Contractual
cash based
interest $(62,430) $(38,879) $(27,461)
Interest and
other income 2,752 1,742 1,547
Income tax
provision (4,695) (4,256) (1,218)
Total interest, taxes and
other $(64,373) $(41,393) $(27,132)
======== ======== ========







(1) See footnote on Consolidated
Balance Sheets table

This reconciliation is provided to
illustrate the difference between
our EBITDA and free cash flow
which are both separately
reconciled to their corresponding
GAAP metrics.




LIONS GATE ENTERTAINMENT CORP. RECONCILIATION OF FOURTH QUARTER EBITDATO FOURTH QUARTER FREE CASH FLOW

Three Months Three Months
Ended Ended
March 31, March 31,
2012 2011
---- ----
As adjusted (1)
(Amounts in thousands)

EBITDA $6,845 $62,980

Plus:
Amortization
of film and
television
programs 248,449 128,845
Less: Cash paid
for film and
television
programs (1) (95,023) (16,456)
----------------
Amortization of
film and
television
programs
in excess of cash paid 153,426 112,389

Plus: Non-cash
stock-based
compensation 2,358 2,813
Less: Gain on
sale of asset
disposal group - -
Less: Equity
interests
(income) (2,407) (4,149)
Plus: Loss
(gain) on
extinguishment
of debt - -
---------------

EBITDA adjusted for net investment in film and
television programs
non-cash
stock-based
compensation,
gain on sale
of asset
disposal group,
equity
interests
(income) loss
and loss
(gain) on
extinguishment
of debt 160,222 174,033

Changes in other operating assets and
liabilities:
Restricted cash
excluding
funds held in
trust 19,643 (26,191)
Accounts
receivable,
net (199,280) 40,836
Other assets (400) 1,160
Accounts
payable and
accrued
liabilities 81,325 (28,506)
Participations
and residuals 35,654 19,800
Deferred
revenue (17,607) (13,380)
Accreted
interest
payment from
equity method
investee TV
Guide - 10,200
(80,665) 3,919

Purchases of
property and
equipment (336) (1,569)
Interest, taxes
and other (2) (23,033) (8,751)

Free Cash Flow $56,188 $167,632
======= ========



(1)Cash paid for film and television programs is
calculated using the following amounts
as presented in
our
consolidated
statement of
cash flows:

Change in
investment in
film and
television
programs $(138,498) $(66,243)
Change in film
obligations 35,335 36,726
Borrowings
under
individual
production
loans 78,738 18,386
Repayment of
individual
production
loans (73,914) (3,805)
Production loan
borrowings
under film
credit
facility 10,611 1,735
Production loan
repayments
under film
credit
facility (7,295) (3,255)
Total cash paid for film and
television programs $(95,023) $(16,456)
======== ========


(2)Interest, taxes and other consists of the
following:

Contractual
cash based
interest $(22,087) $(9,200)
Interest and
other income 892 660
Income tax
provision (1,838) (211)
Total interest, taxes and
other $(23,033) $(8,751)
======== =======



(1) See footnote on Consolidated
Balance Sheets table

This reconciliation is provided to
illustrate the difference between
our EBITDA and free cash flow
which are both separately
reconciled to their corresponding
GAAP metrics.




SOURCE Lionsgate

Lionsgate

Web Site: http://www.lionsgate.com


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