LIONSGATE REPORTS FISCAL 2013 REVENUE OF $2.71 BILLION, ADJUSTED EBITDA OF $329.7 MILLION, NET INCOME OF $232.1 MILLION OR $1.73 BASIC EPS AND ADJUSTED NET INCOME OF $190.1 MILLION OR $1.41 ADJUSTED BASIC EPS

LIONSGATE REPORTS FISCAL 2013 REVENUE OF $2.71 BILLION, ADJUSTED EBITDA OF $329.7 MILLION, NET INCOME OF $232.1 MILLION OR $1.73 BASIC EPS AND ADJUSTED NET INCOME OF $190.1 MILLION OR $1.41 ADJUSTED BASIC EPS

Free Cash Flow Was $280.5 Million For Fiscal 2013

Fourth Quarter Revenue Was $785.7 Million with Adjusted EBITDA of $115.6 Million, Net Income of $163.0 Million or $1.20 Basic EPS, Adjusted Net Income of $89.6 Million or $0.66 Adjusted Basic EPS and Free Cash Flow of $123.3 Million



SANTA MONICA, Caif. and VANCOUVER, British Columbia, May 30, 2013 /PRNewswire/ -- Lionsgate (NYSE: LGF) today reported revenue of $2.71 billion, adjusted EBITDA of $329.7 million, net income of $232.1 million or $1.73 basic net income per share and adjusted net income of $190.1 million or $1.41 adjusted basic net income per share for Fiscal 2013 (fiscal year ended March 31, 2013).

(Logo: http://photos.prnewswire.com/prnh/20110919/LA70620LOGO)

Revenue of $2.71 billion for fiscal 2013 increased by 71% compared to $1.59 billion in the prior year, reflecting strong performances by the Company throughout its theatrical, home entertainment, international and Lionsgate U.K. operations driven by a successful slate of feature films led by the global blockbuster HUNGER GAMES and TWILIGHT franchises.

Adjusted EBITDA of $329.7 million for fiscal 2013 compared to adjusted EBITDA of $71.6 million in the prior year.

Net income for the fiscal year was $232.1 million or $1.73 basic net income per share on 134.5 million weighted average number of common shares outstanding compared to a $(39.1) million net loss or $(0.30) basic net loss per share on 132.2 million weighted average number of common shares outstanding during the prior year. Adjusted net income of $190.1 million or $1.41 adjusted basic net income per share compared to adjusted net loss of $(13.1) million or $(0.10) adjusted basic net loss per share in the prior year.

Free cash flow of $280.5 million for fiscal 2013 compared to negative free cash flow of $(86.9) million in the prior year.

Lionsgate's filmed entertainment backlog, or already contracted future revenue not yet recorded, was $1.1 billion at March 31, 2013.

"We completed a stellar fiscal 2013 with an outstanding fourth quarter that reflected strong contributions from our young adult franchises as well as the rest of our theatrical slate and our home entertainment and international businesses," said Lionsgate Chief Executive Officer Jon Feltheimer. "We are performing ahead of plan for all of our metrics, and we're pleased with the financial strength of our diverse portfolio of businesses and our strong and growing momentum building Lionsgate into a next generation global content leader."

Overall Motion Picture segment revenue for fiscal 2013 was $2.33 billion, an increase of 96% from the prior year reflecting strong gains in all categories. Within the Motion Picture segment, theatrical revenue in the fiscal year was $535.5 million compared to $208.9 million in the prior year, a 156% increase attributable to the box office performance of a 2013 slate that included THE TWILIGHT SAGA: BREAKING DAWN - PART 2, WARM BODIES, THE EXPENDABLES 2 and MADEA'S WITNESS PROTECTION as well as THE HUNGER GAMES from the 2012 slate. The next HUNGER GAMES installment, THE HUNGER GAMES: CATCHING FIRE, will open worldwide on November 22, 2013.

Lionsgate's home entertainment revenue from both motion pictures and television was $964.1 million for the fiscal year, a 41% increase compared to $683.5 million in the prior year, driven by THE HUNGER GAMES, THE TWILIGHT SAGA: BREAKING DAWN -- PART 1 and THE TWILIGHT SAGA: BREAKING DAWN - PART 2, three of the biggest home entertainment titles of the year, as well as THE EXPENDABLES 2, MADEA'S WITNESS PROTECTION, CABIN IN THE WOODS and WHAT TO EXPECT WHEN YOU'RE EXPECTING. Digital media revenue increased by 46% to $276.6 million in fiscal 2013 compared to $190.1 million in the prior year.

Television revenue included in the Motion Picture segment was $277.9 million in fiscal 2013, more than doubling the $119.9 million generated in the prior year.

International Motion Picture segment revenue of $369.7 million (excluding Lionsgate U.K.) for fiscal 2013 more than tripled the prior year total, driven by the strong international theatrical performances of THE HUNGER GAMES, THE TWILIGHT SAGA: BREAKING DAWN - PART 2, THE TWILIGHT SAGA: BREAKING DAWN - PART 1, STEP UP REVOLUTION and WHAT TO EXPECT WHEN YOU'RE EXPECTING.

Lionsgate U.K. revenue was $147.7 million, an increase of 46% from the prior year, on the strength of a diversified theatrical slate including THE HUNGER GAMES and THE EXPENDABLES 2, Lionsgate U.K.'s SALMON FISHING IN THE YEMEN and third-party titles such as MAGIC MIKE.

Revenue in the Television Production segment in fiscal 2013 was $379.0 million compared to $397.3 million in the prior year. The decline was primarily attributable to a decrease in home entertainment revenue for television programming as the prior year included the licensing of four seasons of MAD MEN to Netflix. Domestic and international licensing of television programming posted gains over the prior year.

Lionsgate senior management will hold its analyst and investor conference call to discuss its fiscal 2013 results at 9:00 A.M. ET/6:00 A.M. PT on Friday, May 31, 2013. Interested parties may participate live in the conference call by calling 1-800-230-1092 (612-332-0107 outside the U.S. and Canada). A full digital replay will be available from Friday morning, May 31, through Friday, June 7, by dialing 1-800-475-6701 (320-365-3844 outside the U.S. and Canada) and using access code 292007.

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. Lionsgate currently has 28 television shows on 20 networks spanning its primetime production, distribution and syndication businesses, including such critically-acclaimed hits as the multiple Emmy Award-winning Mad Men and Nurse Jackie, the new comedy Anger Management, the network series Nashville, the syndication successes Tyler Perry's House of Payne, its spinoff Meet the Browns, For Better Or Worse, The Wendy Williams Show, Are We There Yet? and the upcoming 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, The Twilight Saga Breaking Dawn - Part 2, Tyler Perry's Temptation, Warm Bodies, Snitch, Texas Chainsaw 3D, The Expendables 2, The Possession, Sinister, The Cabin in the Woods and Arbitrage. 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 15,000 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 facility 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, 2013, 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,

2013 2012
---- ----

(Amounts in thousands,

except share amounts)

ASSETS

Cash and cash
equivalents $62,363 $64,298

Restricted cash 10,664 11,936

787,150 784,530
Accounts receivable, net of
reserves for returns and
allowances of $103,418 (March
31, 2012 -$93,860) and
provision for doubtful accounts
of $4,494 (March 31, 2012 -
$4,551)

Investment in
films and
television
programs, net 1,244,075 1,329,053

Property and
equipment, net 8,530 9,772

Equity method
investments 169,450 171,262

Goodwill 323,328 326,633

Other assets 72,619 90,511

Deferred tax
assets 82,690 -

$2,760,869 $2,787,995

Total assets



LIABILITIES

Senior revolving
credit facility $338,474 $99,750

Senior secured
second-
priority notes 432,277 431,510

Term loan - 477,514

Accounts payable
and accrued
liabilities 313,620 371,092

Participations
and residuals 409,763 420,325

Film obligations
and production
loans 569,019 561,150

Convertible
senior
subordinated
notes and other
financing
obligations 87,167 108,276

Deferred
revenue 254,023 228,593

2,404,343 2,698,210

Total
liabilities



Commitments and
contingencies


SHAREHOLDERS' EQUITY


672,915 712,623
Common shares, no par value,
500,000,000 shares authorized,
135,882,899 and 143,980,754
shares issued at March 31, 2013
and March 31, 2012,
respectively

Accumulated
deficit (309,912) (542,039)

Accumulated
other
comprehensive
loss (6,477) (3,711)
------

356,526 166,873

Treasury shares,
no par value,
11,040,493
shares at March
31, 2012 - (77,088)
--- -------

Total
shareholders'
equity 356,526 89,785

$2,760,869 $2,787,995

Total liabilities and shareholders' equity
===







LIONS GATE ENTERTAINMENT CORP.


ANNUAL CONSOLIDATED STATEMENTS OF OPERATIONS


Year Year Year

Ended Ended Ended

March 31, March 31, March 31,

2013 2012 2011
---- ---- ----


(Amounts in thousands,
except per share amounts)



Revenues $2,708,141 $1,587,579 $1,582,720

Expenses:

Direct
operating 1,390,569 908,402 795,746

Distribution
and
marketing 817,862 483,513 547,226

General and
administration 218,341 168,864 171,407

Gain on sale
of asset
disposal
group - (10,967) -

Depreciation
and
amortization 8,290 4,276 5,811
----- ----- -----

Total
expenses 2,435,062 1,554,088 1,520,190
--------- --------- ---------

Operating income 273,079 33,491 62,530
------- ------ ------

Other expenses (income):

Interest
expense

Contractual
cash based
interest 75,322 62,430 38,879

Amortization
of debt
discount
(premium)
and deferred
financing
costs 18,258 15,681 16,301

Total interest expense 93,580 78,111 55,180

Interest and
other
income (4,036) (2,752) (1,742)

Loss on
extinguishment
of debt 24,089 967 14,505

Total other
expenses,
net 113,633 76,326 67,943
------- ------ ------

Income (loss) before equity
interests and income taxes 159,446 (42,835) (5,413)

Equity interests income (loss) (3,075) 8,412 (20,712)
------ ----- -------

Income (loss) before income
taxes 156,371 (34,423) (26,125)

Income tax provision (benefit) (75,756) 4,695 4,256
------- ----- -----

Net income (loss) $232,127 $(39,118) $(30,381)
======== ======== ========



Basic Net Income (Loss) Per
Common Share $1.73 $(0.30) $(0.23)
===== ====== ======


Diluted Net Income (Loss) Per
Common Share $1.61 $(0.30) $(0.23)
===== ====== ======


Weighted average number of
common shares outstanding:

Basic 134,514 132,226 131,176

Diluted 149,370 132,226 131,176







LIONS GATE ENTERTAINMENT CORP.


FOURTH QUARTER CONSOLIDATED STATEMENTS OF OPERATIONS


Three Months Three Months

Ended Ended

March 31, March 31,

2013 2012
---- ----


(Amounts in thousands,

except per share amounts)


Revenues $785,708 $645,213

Expenses:

Direct
operating 419,187 360,743

Distribution
and
marketing 192,658 204,319

General and
administration 75,067 75,713

Depreciation
and
amortization 2,050 1,673
----- -----

Total
expenses 688,962 642,448
------- -------

Operating income 96,746 2,765
------ -----

Other expenses (income):

Interest expense

Contractual
cash based
interest 15,520 22,087

Amortization
of debt
discount
(premium)
and deferred
financing
costs 4,511 4,885


Total interest expense 20,031 26,972

Interest and
other
income (978) (892)

Loss on
extinguishment
of debt 278 -

Total other
expenses,
net 19,331 26,080
------ ------

Income (loss) before equity
interests and income taxes 77,415 (23,315)

Equity interests income (loss) (1,173) 2,407
------ -----

Income (loss) before income
taxes 76,242 (20,908)

Income tax provision (benefit) (86,726) 1,838
------- -----

Net income (loss) $162,968 $(22,746)
======== ========



Basic Net Income (Loss) Per
Common Share $1.20 $(0.17)
===== ======


Diluted Net Income (Loss) Per
Common Share $1.10 $(0.17)
===== ======


Weighted average number of common shares outstanding:

Basic 135,406 131,735

Diluted 150,350 131,735







LIONS GATE ENTERTAINMENT CORP.


ANNUAL CONSOLIDATED STATEMENTS OF CASH FLOWS


Year Year Year

Ended Ended Ended

March 31, March 31, March 31,

2013 2012 2011
---- ---- ----


(Amounts in thousands)

Operating Activities:

Net income (loss) $232,127 $(39,118) $(30,381)

Adjustments to reconcile net income (loss) to

net cash provided by (used in) operating activities:

Depreciation
of property
and
equipment 3,040 3,023 4,837

Amortization
of
intangible
assets 5,250 1,253 974

Amortization
of films and
television
programs 966,027 603,660 529,428

Amortization
of debt
discount
(premium)
and deferred
financing
costs 18,258 15,681 16,301

Accreted
interest
payment
from equity
method
investee TV
Guide - - 10,200

Non-cash
stock-
based
compensation 35,838 9,957 29,204

Gain on sale
of asset
disposal
group - (10,967) -

Loss on
extinguishment
of debt 24,089 967 14,505

Equity
interests
(income)
loss 3,075 (8,412) 20,712

Deferred
income
taxes (87,899) 1,256 689

Changes in operating assets and liabilities:

Restricted
cash 1,241 37,636 (43,067)

Accounts
receivable,
net (4,948) (256,208) (64,203)

Investment
in films
and
television
programs (890,276) (690,304) (487,391)

Other
assets (2,682) 1,298 (298)

Accounts
payable and
accrued
liabilities (50,154) 28,302 3,180

Participations
and
residuals (6,875) 19,813 (1,369)

Film
obligations 1,920 37,081 19,154

Deferred
revenue 28,088 30,969 19,852

Net Cash Flows Provided By (Used In)
Operating Activities 276,119 (214,113) 42,327
------- -------- ------

Investing Activities:

Purchases of investments (2,022) - (13,993)

Proceeds from the sale of investments 6,354 - 20,989

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 (1,530) (1,030) (24,677)

Increase in loans receivable - (4,671) (1,042)

Repayment of loans receivable 4,274 - 8,113

Purchases of property and equipment (2,581) (1,885) (2,756)

Net Cash Flows Provided By (Used In)
Investing Activities 4,495 (552,199) (28,366)
----- -------- -------

Financing Activities:

Senior revolving credit facility -
borrowings 1,160,424 390,650 525,250

Senior revolving credit facility -
repayments (921,700) (360,650) (472,500)

Senior revolving credit facility -
deferred financing costs (15,804) - -

Senior secured second-priority notes
- consent fee (3,270) - -

Senior secured second-priority notes
- borrowings, net of deferred
financing costs - 201,955 -

Senior secured second-priority notes
- repurchases - (9,852) -

- 476,150 -
Term Loan -borrowings associated with the acquisition of Summit,
net of debt discount of $7,500 and deferred financing costs of
$16,350

Term Loan - repayments (484,664) (15,066) -

Convertible senior subordinated notes
-borrowings - 45,000 -

Convertible senior subordinated notes
-repurchases (7,639) (46,059) -

Individual production loans -
borrowings 374,506 327,531 118,589

Individual production loans -
repayments (323,124) (207,912) (147,102)

Pennsylvania Regional Center credit
facility -repayments (500) - -

Film credit facility - borrowings 4,004 54,325 19,456

Film credit facility - repayments (47,945) (30,813) (34,762)

Change in restricted cash collateral
associated with financing activities - - 3,087

Repurchase of common shares - (77,088) -

Exercise of stock options 2,897 3,520 -

Tax withholding required on equity
awards (15,995) (4,320) (13,476)

Other financing obligations -
repayments (3,710) - -

Net Cash Flows Provided By (Used In)
Financing Activities (282,520) 747,371 (1,458)
-------- ------- ------

Net Change In Cash And Cash
Equivalents (1,906) (18,941) 12,503

Foreign Exchange Effects on Cash (29) (3,180) 4,674

Cash and Cash Equivalents -Beginning
Of Period 64,298 86,419 69,242

Cash and Cash Equivalents -End Of
Period $62,363 $64,298 $86,419
======= ======= =======







LIONS GATE ENTERTAINMENT CORP.


FOURTH QUARTER CONSOLIDATED STATEMENTS OF CASH FLOWS


Three Months Three Months

Ended Ended

March 31, March 31,

2013 2012
---- ----


(Amounts in thousands)

Operating Activities:

Net income (loss) $162,968 $(22,746)

Adjustments to reconcile net income (loss) to

net cash provided by (used in) operating activities:

Depreciation
of property
and
equipment 772 640

Amortization
of
intangible
assets 1,278 1,033

Amortization
of films and
television
programs 307,152 248,449

Amortization
of debt
discount
(premium)
and deferred
financing
costs 4,511 4,885

Non-cash
stock-
based
compensation 18,954 2,358

Loss on
extinguishment
of debt 278 -

Equity
interests
(income)
loss 1,173 (2,407)

Deferred
income
taxes (87,899) 1,256

Changes in operating assets and liabilities:

Restricted
cash (6,883) 19,643

Accounts
receivable,
net (133,265) (199,280)

Investment
in films
and
television
programs (186,401) (138,498)

Other
assets 5,268 (400)

Accounts
payable and
accrued
liabilities (11,163) 80,069

Participations
and
residuals 5,708 35,654

Film
obligations 15,626 (15,310)

Deferred
revenue (40,217) (17,607)

Net Cash Flows Provided By (Used In)
Operating Activities 57,860 (2,261)
------ ------

Investing Activities:

Purchase of Summit, net of
unrestricted cash acquired of
$315,932 - (553,732)

Investment in equity method investees (1,530) -

Increase in loans receivable - (3,171)

Purchases of property and equipment (495) (336)

Net Cash Flows Provided By (Used In)
Investing Activities (2,025) (557,239)
------ --------

Financing Activities:

Senior revolving credit facility -
borrowings 55,500 127,000

Senior revolving credit facility -
repayments (163,500) (121,750)

- 476,150
Term Loan -borrowings associated with the acquisition of Summit, net of debt
discount of $7,500 and deferred financing costs of $16,350

Term Loan - repayments - (15,066)

Convertible senior subordinated notes
-borrowings - 45,000

Individual production loans -
borrowings 115,376 129,383

Individual production loans -
repayments (40,576) (73,914)

Film credit facility - borrowings 10 10,611

Film credit facility - repayments (8,890) (7,295)

Change in restricted cash collateral
associated with financing activities 12,769 -

Exercise of stock options - 3,369

Tax withholding required on equity
awards (11,056) (1,690)

Net Cash Flows Provided By (Used In)
Financing Activities (40,367) 571,798
------- -------

Net Change In Cash And Cash
Equivalents 15,468 12,298

Foreign Exchange Effects on Cash (1,293) (851)

Cash and Cash Equivalents -Beginning
Of Period 48,188 52,851

Cash and Cash Equivalents -End Of
Period $62,363 $64,298
======= =======










LIONS GATE ENTERTAINMENT CORP.


RECONCILIATION OF ANNUAL NET INCOME (LOSS) TO

EBITDA AND EBITDA, AS ADJUSTED


Year Year Year

Ended Ended Ended

March 31, March 31, March 31,

2013 2012 2011
---- ---- ----


(Amounts in thousands)



Net income (loss) $232,127 $(39,118) $(30,381)

Depreciation
and
amortization 8,290 4,276 5,811

Contractual
cash based
interest 75,322 62,430 38,879

Noncash
interest
expense 18,258 15,681 16,301

Interest and
other
income (4,036) (2,752) (1,742)

Income tax
provision (75,756) 4,695 4,256

EBITDA $254,205 $45,212 $33,124
======== ======= =======


Gain on sale
of asset
disposal
group - (10,967) -

Loss on
extinguishment
of debt 24,089 967 14,505

Stock-based
compensation
(1) 47,665 25,014 32,505

Acquisition
related
charges 2,575 11,957 -

Corporate
defense
charges (2) - (1,726) 22,865

Non-risk
prints and
advertising
expense 1,155 1,095 (25,659)

EBITDA, as adjusted $329,689 $71,552 $77,340
======== ======= =======



(1) The years ended March 31, 2013, 2012
and 2011 include cash settled SARs
expense of $12.0 million, $15.3
million, and $3.8 million,
respectively.


(2) The year ended March 31, 2012
includes a benefit for charges
associated with a shareholder
activist matter of $2.0 million
related to a negotiated settlement
with a vendor of costs incurred and
recorded in fiscal year 2011, and
insurance recoveries of related
litigation offset by other costs.










LIONS GATE ENTERTAINMENT CORP.


RECONCILIATION OF FOURTH QUARTER NET INCOME (LOSS)

TO EBITDA AND EBITDA, AS ADJUSTED



Three Months Three Months

Ended Ended

March 31, March 31,

2013 2012
---- ----


(Amounts in
thousands)



Net income (loss) $162,968 $(22,746)

Depreciation
and
amortization 2,050 1,673

Contractual
cash based
interest 15,520 22,087

Noncash
interest
expense 4,511 4,885

Interest and
other
income (978) (892)

Income tax
provision (86,726) 1,838

EBITDA $97,345 $6,845
======= ======


Loss on
extinguishment
of debt 278 -

Stock-based
compensation
(1) 22,020 15,282

Acquisition
related
charges 548 9,632

Corporate
defense
charges - (2,770)

Non-risk
prints and
advertising
expense (4,554) 1,017

EBITDA, as adjusted $115,637 $30,006
======== =======



(1) The three
months
ended
March 31,
2013 and
2012
include
cash
settled
SARs
expense
of $9.7
million
and $12.9
million,
respectively.





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

EBITDA, as adjusted represents EBITDA as defined above adjusted for gain on sale of asset disposal group when applicable, loss on extinguishment of debt, 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 cash settled stock appreciation rights ("SARs") and equity settled SARs. 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. The amount is subtracted from EBITDA in the three months ended March 31, 2013 because there was no non-risk prints and advertising expense incurred and the amount represents the estimated amortization of participation expense that would have been recorded if such prior period amounts had not been expensed. EBITDA, as adjusted is a non-GAAP financial measure.

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 and 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,

2013 2012 2011
---- ---- ----

(Amounts in thousands)


Net Cash Flows Provided By
(Used In) Operating
Activities $276,119 $(214,113) $42,327

Purchases of
property and
equipment (2,581) (1,885) (2,756)

Net borrowings
under and
(repayment)
of production
loans 6,941 143,131 (43,819)

Restricted cash
held in trust - (13,992) 13,992

Free Cash Flow, as defined $280,479 $(86,859) $9,744
======== ======== ======







LIONS GATE ENTERTAINMENT CORP.


RECONCILIATION OF FOURTH QUARTER FREE CASH FLOW

TO NET CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES


Three Months Three Months

Ended Ended

March 31, March 31,

2013 2012
---- ----

(Amounts in thousands)


Net Cash Flows Provided By
(Used In) Operating
Activities $57,860 $(2,261)

Purchases of
property and
equipment (495) (336)

Net borrowings
under and
(repayment)
of production
loans 65,920 58,785

Restricted cash
held in trust - (13,992)

Free Cash Flow, as defined $123,285 $42,196
======== =======




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 the decrease in restricted cash held in a trust for certain obligations until December 31, 2011. 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 companies.








LIONS GATE ENTERTAINMENT CORP.


RECONCILIATION OF ANNUAL EBITDA

TO FREE CASH FLOW


Year Year Year

Ended Ended Ended

March 31, March 31, March 31,

2013 2012 2011
---- ---- ----



(Amounts in thousands)


EBITDA $254,205 $45,212 $33,124


Plus:
Amortization
of film and
television
programs 966,027 603,660 529,428

Less: Cash
paid for
film and
television
programs
(1) (881,415) (510,092) (512,056)
-----------

84,612 93,568 17,372
Amortization
of film and
television
programs in
excess of
cash paid


Plus: Non-
cash stock-
based
compensation 35,838 9,957 29,204

Less: Gain
on sale of
asset
disposal
group - (10,967) -

Plus: Equity
interests
(income)
loss 3,075 (8,412) 20,712

Plus: Loss
on
extinguishment
of debt 24,089 967 14,505
------------

EBITDA adjusted for net investment in film and television
programs,
non-cash stock-based compensation, equity
interests (income) loss, and loss on
extinguishment of debt 401,819 130,325 114,917


Changes in other operating assets and liabilities:

Restricted
cash
excluding
funds held
in trust 1,241 23,644 (29,075)

Accounts
receivable,
net (4,948) (256,208) (64,203)

Other assets (2,682) 1,298 (298)

Accounts
payable and
accrued
liabilities (50,154) 28,302 3,180

Participations
and
residuals (6,875) 19,813 (1,369)

Deferred
revenue 28,088 30,969 19,852

Accreted
interest
payment
from equity
method
investee TV
Guide - - 10,200

(35,330) (152,182) (61,713)


Purchases of
property
and
equipment (2,581) (1,885) (2,756)

Interest,
taxes and
other (2) (83,429) (63,117) (40,704)


Free Cash Flow, as defined $280,479 $(86,859) $9,744
======== ======== ======



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


Change in
investment
in film and
television
programs $(890,276) $(690,304) $(487,391)

Change in
film
obligations 1,920 37,081 19,154

Individual
production
loans -
borrowings 374,506 327,531 118,589

Individual
production
loans -
repayments (323,124) (207,912) (147,102)

Pennsylvania
Regional
Center
credit
facility -
repayments (500) - -

Film credit
facility -
borrowings 4,004 54,325 19,456

Film credit
facility -
repayments (47,945) (30,813) (34,762)

$(881,415) $(510,092) $(512,056)

Total cash
paid for
film and
television
programs
===============



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

Contractual
cash based
interest $(75,322) $(62,430) $(38,879)

Interest and
other
income 4,036 2,752 1,742

Current
income tax
provision (12,143) (3,439) (3,567)

$(83,429) $(63,117) $(40,704)

Total
interest,
taxes and
other
==========







LIONS GATE ENTERTAINMENT CORP.


RECONCILIATION OF FOURTH QUARTER EBITDA

TO FREE CASH FLOW


Three Months Three Months

Ended Ended

March 31, March 31,

2013 2012
---- ----



(Amounts in thousands)


EBITDA $97,345 $6,845


Plus:
Amortization
of film and
television
programs 307,152 248,449

Less: Cash
paid for
film and
television
programs
(1) (104,855) (95,023)
-----------

202,297 153,426
Amortization
of film and
television
programs in
excess of
cash paid


Plus: Non-
cash stock-
based
compensation 18,954 2,358

Plus: Equity
interests
(income)
loss 1,173 (2,407)

Plus: Loss
on
extinguishment
of debt 278 -
---------------


EBITDA adjusted for net investment in film and
television programs, non-cash stock-based
compensation, equity interests (income) loss,
and loss on extinguishment of debt 320,047 160,222


Changes in other operating assets and liabilities:

Restricted
cash
excluding
funds held
in trust (6,883) 5,651

Accounts
receivable,
net (133,265) (199,280)

Other assets 5,268 (400)

Accounts
payable and
accrued
liabilities (11,163) 80,069

Participations
and
residuals 5,708 35,654

Deferred
revenue (40,217) (17,607)

(180,552) (95,913)


Purchases of
property
and
equipment (495) (336)

Interest,
taxes and
other (2) (15,715) (21,777)


Free Cash Flow, as defined $123,285 $42,196
======== =======



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


Change in
investment
in film and
television
programs $(186,401) $(138,498)

Change in
film
obligations 15,626 (15,310)

Individual
production
loans -
borrowings 115,376 129,383

Individual
production
loans -
repayments (40,576) (73,914)

Film credit
facility -
borrowings 10 10,611

Film credit
facility -
repayments (8,890) (7,295)

$(104,855) $(95,023)

Total cash
paid for
film and
television
programs
===============



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


Contractual
cash based
interest $(15,520) $(22,087)

Interest and
other
income 978 892

Current
income tax
provision (1,173) (582)

$(15,715) $(21,777)

Total
interest,
taxes and
other
==========




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 ANNUAL INCOME (LOSS) BEFORE INCOME TAXES, NET

INCOME (LOSS), BASIC AND DILUTED EPS TO ADJUSTED INCOME (LOSS) BEFORE

INCOME TAXES, NET INCOME (LOSS), BASIC AND DILUTED EPS



Year Ended March 31, 2013
-------------------------

(Amounts in thousands, except per share amounts)


Income before

income taxes Net income Basic EPS Diluted EPS
------------ ---------- --------- -----------


As reported $156,371 $232,127 $1.73 $1.61

Tax valuation
allowance
(1) - (87,490) (0.65) (0.59)


As adjusted for valuation allowance $156,371 $144,637 $1.08 $1.02


Loss on
extinguishment
of debt (2) 24,089 15,255 0.11 0.10

Stock-based
compensation
(3) 47,665 30,186 0.22 0.20



As adjusted for valuation allowance,
loss on extinguishment of debt and
stock-based compensation $228,125 $190,078 $1.41 $1.32
======== ======== ===== =====



Year Ended March 31, 2012
-------------------------

(Amounts in thousands, except per share amounts)


Income (Loss)

before

income taxes Net loss Basic EPS Diluted EPS
------------ -------- --------- -----------


As reported $(34,423) $(39,118) $(0.30) $(0.30)

Loss on
extinguishment
of debt (2) 967 967 0.01 0.01

Stock-based
compensation
(3) 25,014 25,014 0.19 0.19



As adjusted for loss on extinguishment of debt
and stock-based compensation $(8,442) $(13,137) $(0.10) $(0.10)
======= ======== ====== ======



Year Ended March 31, 2011
-------------------------

(Amounts in thousands, except per share amounts)


Income (Loss)

before

income taxes Net income (loss) Basic EPS Diluted EPS
------------ ---------------- --------- -----------


As reported $(26,125) $(30,381) $(0.23) $(0.23)

Loss on
extinguishment
of debt (2) 14,505 14,505 0.11 0.11

Stock-based
compensation
(3) 32,505 32,505 0.25 0.25


As adjusted for loss on extinguishment of debt

and stock-
based
compensation $20,885 $16,629 $0.13 $0.13











LIONS GATE ENTERTAINMENT CORP.


RECONCILIATION OF FOURTH QUARTER INCOME (LOSS) BEFORE INCOME TAXES, NET

INCOME (LOSS), BASIC AND DILUTED EPS TO ADJUSTED INCOME (LOSS) BEFORE

INCOME TAXES, NET INCOME (LOSS), BASIC AND DILUTED EPS


Three Months Ended March 31, 2013
---------------------------------

(Amounts in thousands, except per share amounts)


Income before

income taxes Net income Basic EPS Diluted EPS
------------ ---------- --------- -----------


As reported $76,242 $162,968 $1.20 $1.10

Tax valuation
allowance
(1) - (87,490) (0.64) (0.59)


As adjusted for valuation allowance $76,242 $75,478 $0.56 $0.51


Loss on
extinguishment
of debt (2) 278 176 - 0.01

Stock-based
compensation
(3) 22,020 13,945 0.10 0.09


As adjusted for valuation allowance, loss on extinguishment

of debt and
stock-based
compensation $98,540 $89,599 $0.66 $0.61




Three Months Ended March 31, 2012
---------------------------------

(Amounts in thousands, except per share amounts)


Loss before

income taxes Net loss Basic EPS Diluted EPS
------------ -------- --------- -----------


As reported $(20,908) $(22,746) $(0.17) $(0.17)

Stock-based
compensation
(3) 15,282 15,282 0.11 0.11


As adjusted for stock-based
compensation $(5,626) $(7,464) $(0.06) $(0.06)
======= ======= ====== ======




Income (loss) before income taxes, net income (loss) and basic and diluted EPS, as adjusted are adjusted for the following items:

(1) Tax valuation allowance: This adjusts net income to eliminate the discrete tax benefit recognized for financial reporting purposes upon the reduction of the Company's valuation allowance on its remaining net deferred tax assets (excluding certain deferred tax liabilities) as of March 31, 2013 that are expected to be realized in future tax returns. The adjustment presents net income for the year ended March 31, 2013 assuming the valuation allowance on these remaining deferred tax assets was not reversed, consistent with the prior period's presentations.

(2) Loss on early extinguishment of debt: This adjusts income (loss) before income taxes and net income (loss) to eliminate the loss on early extinguishment of debt. The adjustment to net income (loss) is net of the tax impact calculated using the tax rate applicable to each adjustment.

(3) Stock based compensation: Adjustments for stock-based compensation represents compensation expenses associated with stock options, restricted share units, cash settled SARs and equity settled SARs. The adjustment to net income is net of the tax impact calculated using the tax rate applicable to each adjustment.

Management believes that these non-GAAP measures provide useful information to investors regarding the Company's results as compared to historical periods. The Company uses these measures, among other measures, to evaluate the operating performance of the Company. The Company believes that the adjusted results provide relevant and useful information for investors because they clarify the Company's actual operating performance and allow investors to review our operating performance in the same way as our management. Since these measures are not calculated in accordance with generally accepted accounting principles, they should not be considered in isolation of, or as a substitute for income before income taxes, net income, basic and diluted EPS. Not all companies calculate income before income taxes, net income, basic and diluted EPS as adjusted in the same manner and the measures as presented may not be comparable to similarly titled measures presented by other companies.

SOURCE Lionsgate

Photo:http://photos.prnewswire.com/prnh/20110919/LA70620LOGO
http://photoarchive.ap.org/
Lionsgate

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


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