LIONSGATE REPORTS REVENUE OF $743.6 MILLION, EBITDA OF $66.2 MILLION, ADJUSTED EBITDA OF $87.2 MILLION AND NET INCOME OF $37.8

LIONSGATE REPORTS REVENUE OF $743.6 MILLION, EBITDA OF $66.2 MILLION, ADJUSTED 
EBITDA OF $87.2 MILLION AND NET INCOME OF $37.8 MILLION OR $0.28 PER BASIC 
SHARE IN THE THIRD QUARTER OF FISCAL 2013 
Third Quarter Results Driven By Domestic Theatrical Releases of THE TWILIGHT 
SAGA: BREAKING DAWN - PART 2 And Other Films As Well As Home Entertainment And 
International Operations 
Company Reports $125.2 Million In Free Cash Flow In The Third Quarter 
SANTA MONICA, Calif. and VANCOUVER, Feb. 11, 2013 /CNW/ - Lionsgate (NYSE: 
LGF) today reported revenue of $743.6 million, EBITDA of $66.2 million, 
adjusted EBITDA of $87.2 million  and net income of $37.8 million or $0.28 per 
basic share for the third quarter of Fiscal 2013 (quarter ended December 31, 
2012). 
(Logo: http://photos.prnewswire.com/prnh/20110919/LA70620LOGO) 
Revenue of $743.6 million in the third quarter increased by 130% compared to 
$323.0 million in the prior year quarter, driven by the domestic theatrical 
box office performance of THE TWILIGHT SAGA: BREAKING DAWN – PART 2 and 
several other films, continued strong home entertainment and international 
revenue and increased pay television revenue. 
EBITDA of $66.2 million and adjusted EBITDA of $87.2 million in the third 
quarter compared to EBITDA of $16.6 million and adjusted EBITDA of $27.3 
million in the prior year quarter. 
Net income of $37.8 million in the third quarter compared to net loss of 
$(1.4) million in the prior year quarter.  The Company noted that, excluding 
the $14.7 million noncash expense for extinguishment of debt related to the 
early payment of the balance of the Summit term loan, net income as adjusted 
was $52.4 million or $0.39 per basic share. 
Profitability and EBITDA growth in the third quarter compared to the prior 
year quarter was attributable to strong performances of the Company's 
theatrical, home entertainment and international businesses which more than 
offset increased marketing costs for a larger slate of films. 
Basic net income per common share for the third quarter was $0.28 on 135.0 
million weighted average common shares outstanding, compared to basic net loss 
per common share of $(0.01) on 126.5 million weighted average common shares 
outstanding in the prior year quarter. 
The Company reported $125.2 million in free cash flow in the third quarter 
compared to free cash flow of negative $(37.0) million in the prior year 
quarter. 
Revenue for the nine months ended December 31, 2012 was $1.92 billion compared 
to $942.4 million in the prior year nine-month period.  EBITDA of $156.9 
million and adjusted EBITDA of $214.1 million for the nine-month period 
compared to EBITDA of $38.4 million and adjusted EBITDA of $41.5 million for 
the prior year nine-month period. 
Net income of $69.2 million or $0.52 basic net income per common share for the 
nine months ended December 31, 2012 compared to net loss of $(16.4) million or 
$(0.12) basic net loss per common share for the prior year nine-month period. 
Lionsgate's filmed entertainment backlog, or already contracted future revenue 
not yet recorded, was $1.2 billion at December 31, 2012. 
"The quarter reflected not only the impact of our young adult franchises but 
strong contributions from the rest of our theatrical releases and our home 
entertainment and international operations," said Lionsgate Chief Executive 
Officer Jon Feltheimer.  "Our revenue growth compared to the prior year 
quarter was matched by continued strong EBITDA and free cash flow that will 
enable us to continue our focus on optimizing our capital structure and 
deleveraging our balance sheet." 
Overall motion picture revenue for the third quarter was $673.5 million, an 
increase of 189% from the prior year quarter reflecting strong gains in most 
categories.  Within the motion picture segment, theatrical revenue in the 
quarter was $192.9 million compared to $8.4 million in the prior year quarter, 
an increase attributable to the box office performance of THE TWILIGHT SAGA: 
BREAKING DAWN – PART 2, SINISTER, THE IMPOSSIBLE and several other titles.  
The TWILIGHT SAGA BREAKING DAWN – PART 2 will have a March 2, 2013 home 
entertainment release. 
Lionsgate's home entertainment revenue from both motion pictures and 
television was $233.0 million in the third quarter, a 43% increase from the 
prior year quarter driven by a diverse mix of titles including THE EXPENDABLES 
2, STEP UP REVOLUTION, MADEA'S WITNESS PROTECTION, CABIN IN THE WOODS, WHAT TO 
EXPECT WHEN YOU'RE EXPECTING, ARBITRAGE and continued revenue from THE HUNGER 
GAMES, released on DVD and digital in August. 
Television revenue included in motion picture revenue was $98.8 million in the 
third quarter, a fourfold increase from the prior year quarter driven by 
contributions from THE HUNGER GAMES, THE TWILIGHT SAGA: BREAKING DAWN – PART 
1 and GOOD DEEDS. 
International motion picture revenue of $89.5 million (excluding Lionsgate 
U.K.) for the third quarter increased six times over from the prior year 
quarter driven by the strong international theatrical performances of THE 
TWILIGHT SAGA: BREAKING DAWN – PART 2 and STEP UP REVOLUTION. 
Lionsgate U.K. revenue was $36.6 million, an increase of 120% from the prior 
year quarter, on the strength of a diversified theatrical slate driven by THE 
EXPENDABLES 2 and WHAT TO EXPECT WHEN YOU'RE EXPECTING, Lionsgate U.K. and 
third-party titles MAGIC MIKE and KEITH LEMON: THE FILM and the continued 
strong performance of THE HUNGER GAMES. 
Television production revenue was $70.1 million in the third quarter, a 
decline of 22% compared to the prior year quarter, as strong international 
sales of ANGER MANAGEMENT, MAD MEN Seasons 3, 4 and 5 and WEEDS Season 8 were 
offset by revenue declines in domestic series licensing due to timing. 
Lionsgate senior management will hold its analyst and investor conference call 
to discuss its third quarter fiscal 2013 results at 9:00 A.M. ET/6:00 A.M. PT 
on Tuesday, February 12, 2013. Interested parties may participate live in the 
conference call by calling 1-800-230-1074 (612-234-9959 outside the U.S. and 
Canada).  A full digital replay will be available from Tuesday morning, 
February 12, through Tuesday, February 19, by dialing 1-800-475-6701 
(320-365-3844 outside the U.S. and Canada) and using access code 279710. 
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 strong 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 26 shows on 19 networks spanning its primetime production, distribution 
and syndication businesses, including the multiple Emmy Award-winning Mad Men, 
the critically acclaimed series Weeds, Nurse Jackie, Anger Management, which 
has been picked up for another 90 episodes by FX, 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 13(th) 
highest-grossing domestic release of all time, The Twilight Saga Breaking Dawn 
– Part 2, which has grossed more than $800 million at the worldwide box 
office, Warm Bodies, Texas Chainsaw 3D, The Possession, Sinister, The 
Expendables 2, Cabin in the Woods, Tyler Perry's Madea's Witness Protection 
and Arbitrage.  With the January 2012 acquisition of Summit Entertainment, the 
Company has now added the blockbuster Twilight Saga, which has grossed more 
than $3.3 billion at the worldwide box office, to its current slate, giving 
the Company the two premier young adult franchises in the world. 
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, 
2012,as amended, 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. 
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS 


                                             December 31,   March 31,
                                             2012           2012
                                             (Amounts in thousands,
                                             except share amounts)

ASSETS

Cash and cash equivalents                    $ 48,188       $ 64,298

Restricted cash                              16,581         11,936

Accounts receivable, net of reserves for
returns and allowances of $94,449 (March 31, 656,862        784,530
2012 - $93,860) and provision for doubtful
accounts of $5,582 (March 31, 2012 - $4,551)

Investment in films and television programs, 1,367,302      1,329,053
net

Property and equipment, net                  9,092          9,772

Equity method investments                    169,094        171,262

Goodwill                                     323,328        326,633

Other assets                                 82,279         90,511

Total assets                                 $ 2,672,726    $ 2,787,995

LIABILITIES

Senior revolving credit facility             $ 446,474      $ 99,750

Senior secured second-priority notes         432,076        431,510

Term loan                                    —        477,514

Accounts payable and accrued liabilities     329,104        371,092

Participations and residuals                 404,309        420,325

Film obligations and production loans        487,898        561,150

Convertible senior subordinated notes and    85,958         108,276
other financing obligations

Deferred revenue                             294,418        228,593

Total liabilities                            2,480,237      2,698,210

Commitments and contingencies

SHAREHOLDERS' EQUITY

Common shares, no par value, 500,000,000
shares authorized, 135,164,345 and           667,255        712,623
143,980,754 shares issued at December 31,
2012 and March 31, 2012, respectively

Accumulated deficit                          (472,880)      (542,039)

Accumulated other comprehensive loss         (1,886)        (3,711)
                                             192,489        166,873

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

Total shareholders' equity                   192,489        89,785

Total liabilities and shareholders' equity   $ 2,672,726    $ 2,787,995

LIONS GATE ENTERTAINMENT CORP.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
               Three Months  Three Months  Nine Months    Nine Months
               Ended         Ended         Ended          Ended
               December 31,  December 31,  December 31,   December 31,
               2012          2011          2012           2011
                             As adjusted                  As adjusted
                             (Note 1)                     (Note 1)
               (Amounts in thousands, except per share amounts)

Revenues       $ 743,645     $ 323,026     $ 1,922,433    $ 942,366

Expenses:

Direct         402,334       201,957       971,382        547,659
operating

Distribution   210,053       72,806        625,204        279,194
and marketing

General and    46,900        35,801        143,274        93,151
administration

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

Depreciation
and            2,020         688           6,240          2,603
amortization

Total expenses 661,307       311,252       1,746,100      911,640

Operating      82,338        11,774        176,333        30,726
income

Other expenses
(income):

Interest
expense

Contractual
cash based     18,166        14,468        59,802         40,343
interest

Amortization
of debt
discount
(premium) and  4,608         2,767         13,747         10,796
deferred
financing
costs

Total interest 22,774        17,235        73,549         51,139
expense

Interest and   (1,079)       (490)         (3,058)        (1,860)
other income

Loss on
extinguishment 14,652        —       23,811         967
of debt

Total other    36,347        16,745        94,302         50,246
expenses, net

Income (loss)
before equity  45,991        (4,971)       82,031         (19,520)
interests and
income taxes

Equity
interests      (3,512)       4,156         (1,902)        6,005
income (loss)

Income (loss)
before income  42,479        (815)         80,129         (13,515)
taxes

Income tax     4,649         585           10,970         2,857
provision

Net income     $ 37,830      $ (1,400)     $ 69,159       $ (16,372)
(loss)

Basic Net
Income (Loss)  $ 0.28        $ (0.01)      $ 0.52         $ (0.12)
Per Common
Share

Diluted Net
Income (Loss)  $ 0.27        $ (0.01)      $ 0.51         $ (0.12)
Per Common
Share

Weighted
average number
of common
shares
outstanding:

Basic          135,030       126,451       134,222        132,389

Diluted        149,807       126,451       136,735        132,389

 ________________________________________________________
|   |||||||
|___|||||||
|   |                                                    |
|___|____________________________________________________|
|   |In the quarter ended March 31, 2012, the Company    |
|   |eliminated the lag in recording its share of EPIX's |
|   |results. Due to the elimination of the lag in       |
|   |recording the Company's share of EPIX's results,    |
|(1)|prior period amounts presented have been adjusted to|
|   |eliminate the lag in reporting. The elimination of  |
|   |the lag in reporting of EPIX decreased net loss for |
|   |the three months ended December 31, 2011 by $0.3    |
|   |million and increased the net loss for the nine     |
|   |months ended December 31, 2011 by $2.3 million.     |
|___|____________________________________________________|

LIONS GATE ENTERTAINMENT CORP.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(LOSS)
              Three Months  Three Months   Nine Months    Nine Months
              Ended         Ended          Ended          Ended
              December 31,  December 31,   December 31,   December 31,
                            2011           2012           2011
              2012
                            As adjusted                   As adjusted
                            (1)                           (1)
              (Amounts in thousands)

Net income    $ 37,830      $ (1,400)      $ 69,159       $ (16,372)
(loss)

Foreign
currency      657           106            1,735          (4,253)
translation
adjustments

Net
unrealized
gain (loss)   107           (188)          90             474
on foreign
exchange
contracts

Comprehensive $ 38,594      $ (1,482)      $ 70,984       $ (20,151)
income (loss)

 __________________________________________________________________
|   ||||                                                           |
|___||||___________________________________________________________|
|   |                                                              |
|___|______________________________________________________________|
|(1)|See footnote on Unaudited Condensed Consolidated Statements of|
|   |Operations table                                              |
|___|______________________________________________________________|

LIONS GATE ENTERTAINMENT CORP.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                Three Months  Three Months  Nine Months   Nine Months
                Ended         Ended         Ended         Ended
                December 31,  December 31,  December 31,  December 31,
                                                          2011
                2012          2011          2012
                              As adjusted                 As adjusted
                              (1)                         (1)
                (Amounts in thousands)

Operating
Activities:

Net income      $ 37,830      $ (1,400)     $ 69,159      $ (16,372)
(loss)

Adjustments to
reconcile net
income (loss)
to net cash
provided by
(used in)
operating
activities:

Depreciation of
property and    743           618           2,268         2,383
equipment

Amortization of
intangible      1,277         70            3,972         220
assets

Amortization of
films and       264,211       135,997       658,875       355,211
television
programs

Amortization of
debt discount
(premium) and   4,608         2,767         13,747        10,796
deferred
financing costs

Non-cash
stock-based     5,967         2,797         16,884        7,599
compensation

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

Loss on
extinguishment  14,652        —       23,811        967
of debt

Equity
interests       3,512         (4,156)       1,902         (6,005)
(income) loss

Changes in
operating
assets and
liabilities:

Restricted cash 2,822         (6,003)       8,124         17,993

Accounts        44,291        (33,547)      128,317       (56,928)
receivable, net

Investment in
films and       (280,755)     (118,422)     (703,875)     (551,806)
television
programs

Other assets    (6,406)       176           (7,950)       1,698

Accounts
payable and     (41,140)      (67,192)      (38,991)      (51,767)
accrued
liabilities

Participations  (11,568)      (28,172)      (12,583)      (15,841)
and residuals

Film            114           41,393        (13,706)      52,391
obligations

Deferred        35,966        3,784         68,305        48,576
revenue

Net Cash Flows
Provided By
(Used In)       76,124        (71,290)      218,259       (211,852)
Operating
Activities

Investing
Activities:

Purchases of    (2,022)       —       (2,022)       —
investments

Proceeds from
the sale of     6,354         —       6,354         —
investments

Proceeds from
the sale of
asset disposal
group, net of   —       —       —       9,119
transaction
costs and cash
disposed of
$3,943

Investment in
equity method   —       (202)         —       (1,030)
investees

Increase in
loans           —       —       —       (1,500)
receivable

Repayment of
loans           —       —       4,274         —
receivable

Purchases of
property and    (1,110)       (296)         (2,086)       (1,549)
equipment

Net Cash Flows
Provided By     3,222         (498)         6,520         5,040
Investing
Activities

Financing
Activities:

Exercise of     2,845         151           2,897         151
stock options

Tax withholding
required on     (934)         (698)         (4,939)       (2,630)
equity awards

Repurchase of   —       —       —       (77,088)
common shares

Senior
revolving       423,500       110,000       1,104,924     263,650
credit facility
- borrowings

Senior
revolving       (245,750)     (38,500)      (758,200)     (238,900)
credit facility
- repayments

Senior
revolving
credit facility (606)         —       (15,804)      —
- deferred
financing costs

Individual
production      150,182       63,278        259,130       198,148
loans -
borrowings

Individual
production      (99,618)      (11,112)      (282,548)     (133,998)
loans -
repayments

Film credit
facility -      97            10,712        3,994         43,714
borrowings

Film credit
facility -      —       (14,331)      (39,055)      (23,518)
repayments

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

Change in
restricted cash
collateral      (12,769)      3,043         (12,769)      —
associated with
financing
activities

Term Loan -     (299,160)                   (484,664)     —
repayments

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

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

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

Convertible
senior
subordinated    —       (26,583)      (7,639)       (46,059)
notes -
repurchases

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

Net Cash Flows
Provided By
(Used In)       (85,983)      95,960        (242,153)     175,573
Financing
Activities

Net Change In
Cash And Cash   (6,637)       24,172        (17,374)      (31,239)
Equivalents

Foreign
Exchange        426           (847)         1,264         (2,329)
Effects on Cash

Cash and Cash
Equivalents -   54,399        29,526        64,298        86,419
Beginning Of
Period

Cash and Cash
Equivalents -   $ 48,188      $ 52,851      $ 48,188      $ 52,851
End Of Period

 __________________________________________________________________
|   ||||                                                           |
|___||||___________________________________________________________|
|   |                                                              |
|___|______________________________________________________________|
|(1)|See footnote on Unaudited Condensed Consolidated Statements of|
|   |Operations table                                              |
|___|______________________________________________________________|

LIONS GATE ENTERTAINMENT CORP.

RECONCILIATION OF NET INCOME (LOSS) TO EBITDA AND EBITDA, AS ADJUSTED
               Three Months  Three Months  Nine Months    Nine Months
               Ended         Ended         Ended          Ended
               December 31,  December 31,  December 31,   December 31,
                                           2012           2011
               2012          2011
                             As adjusted                  As adjusted
                             (1)                          (1)
               (Amounts in thousands)

Net income     $ 37,830      $ (1,400)     $ 69,159       $ (16,372)
(loss)

Depreciation
and            2,020         688           6,240          2,603
amortization

Contractual
cash based     18,166        14,468        59,802         40,343
interest

Noncash
interest       4,608         2,767         13,747         10,796
expense

Interest and   (1,079)       (490)         (3,058)        (1,860)
other income

Income tax     4,649         585           10,970         2,857
provision

EBITDA         $ 66,194      $ 16,618      $ 156,860      $ 38,367



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

Loss on
extinguishment 14,652        —       23,811         967
of debt

Stock-based    8,997         4,745         25,645         9,732
compensation

Acquisition
related        —       2,325         2,027          2,325
charges

Corporate
defense        —       3,091         —        1,044
charges (2)

Non-risk
prints and     (2,596)       569           5,709          78
advertising
expense

EBITDA, as     $ 87,247      $ 27,348      $ 214,052      $ 41,546
adjusted

 __________________________________________________________________
|   |||||                                                          |
|___|||||__________________________________________________________|
|   |                                                              |
|___|______________________________________________________________|
|(1)|See footnote on Unaudited Condensed Consolidated Statements of|
|   |Operations table                                              |
|___|______________________________________________________________|
|   |The nine months ended December 31, 2011 includes a benefit for|
|   |charges associated with a shareholder activist matter of $2.0 |
|(2)|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.       |
|___|______________________________________________________________|

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 a gain on 
sale of asset disposal group, 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 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. The amount is subtracted from EBITDA in 
the three months ended December 31, 2012 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.

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 FREE CASH FLOW TO NET CASH

FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES
              Three Months   Three Months   Nine Months    Nine Months
              Ended          Ended          Ended          Ended
              December 31,   December 31,   December 31,   December 31,
              2012           2011           2012
                                                           2011
              (Amounts in thousands)

Net Cash
Flows
Provided By   76,124         (71,290)       218,259        (211,852)
(Used In)
Operating
Activities

Purchases of
property and  (1,110)        (296)          (2,086)        (1,549)
equipment

Net
borrowings
under and     50,161         48,547         (58,979)       84,346
(repayment)
of production
loans

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

Free Cash
Flow, as      $ 125,175      $ (37,031)     $ 157,194      $ (143,047)
defined

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 EBITDA TO FREE CASH FLOW
                          Three        Three       Nine Months  Nine Months
                          Months       Months      Ended        Ended
                          Ended        Ended
                          December     December    December     December
                          31,          31,         31,          31,
                          2012         2011        2012         2011
                                       As                       As adjusted
                                       adjusted                 (1)
                                       (1)
                          (Amounts in thousands)

EBITDA                    $ 66,194     $ 16,618    $ 156,860    $ 38,367



Plus: Amortization of
film and television       264,211      135,997     658,875      355,211
programs

Less: Cash paid for film
and television programs   (230,480)    (28,482)    (776,560)    (415,069)
(1)

Amortization of film and
television programs in    33,731       107,515     (117,685)    (59,858)
excess of cash paid



Plus: Non-cash            5,967        2,797       16,884       7,599
stock-based compensation

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

Plus: Equity interests    3,512        (4,156)     1,902        (6,005)
(income) loss

Plus: Loss on             14,652       —     23,811       967
extinguishment of debt

EBITDA adjusted for net
investment in film and
television programs,
non-cash stock-based      124,056      122,774     81,772       (29,897)
compensation, equity
interests loss, and loss
on extinguishment of debt



Changes in other
operating assets and
liabilities:

Restricted cash excluding 2,822        (19,995)    8,124        4,001
funds held in trust

Accounts receivable, net  44,291       (33,547)    128,317      (56,928)

Other assets              (6,406)      176         (7,950)      1,698

Accounts payable and      (41,140)     (67,192)    (38,991)     (51,767)
accrued liabilities

Participations and        (11,568)     (28,172)    (12,583)     (15,841)
residuals

Deferred revenue          35,966       3,784       68,305       48,576
                          23,965       (144,946)   145,222      (70,261)



Purchases of property and (1,110)      (296)       (2,086)      (1,549)
equipment

Interest, taxes and other (21,736)     (14,563)    (67,714)     (41,340)
(2)



Free Cash Flow, as        $ 125,175    $ (37,031)  $ 157,194    $ (143,047)
defined

_________________________

(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       (280,755)    (118,422)   (703,875)    (551,806)
programs

Change in film            114          41,393      (13,706)     52,391
obligations

Borrowings under
individual production     150,182      63,278      259,130      198,148
loans

Repayment of individual   (99,618)     (11,112)    (282,548)    (133,998)
production loans

Production loan
repayments under          (500)        —     (500)        —
Pennsylvania Regional
Center credit facility

Production loan
borrowings under film     97           10,712      3,994        43,714
credit facility

Production loan
repayments under film     —      (14,331)    (39,055)     (23,518)
credit facility

Total cash paid for film  $ (230,480)  $ (28,482)  $ (776,560)  $ (415,069)
and television programs



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

Contractual cash based    (18,166)     (14,468)    (59,802)     (40,343)
interest

Interest and other income 1,079        490         3,058        1,860

Income tax provision      (4,649)      (585)       (10,970)     (2,857)

Total interest, taxes and $ (21,736)   $ (14,563)  $ (67,714)   $ (41,340)
other

 __________________________________________________________________
|   |||||                                                          |
|___|||||__________________________________________________________|
|   |                                                              |
|___|______________________________________________________________|
|(1)|See footnote on Unaudited Condensed Consolidated Statements of|
|   |Operations 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 NET INCOME AND EARNINGS PER SHARE, AS REPORTED

TO NET INCOME AND EARNINGS PER SHARE, AS ADJUSTED
                                                 Three Months Ended
                                                 December 31,
                                                 2012
                                                 (Amounts in
                                                 thousands, except per
                                                 share amounts)



Net income, as reported                          $ 37,830

Loss on extinguishment of debt                   14,652

Income tax effect of loss on extinguishment of   (108)
debt

Net income, as adjusted                          $ 52,374



Basic Net Income Per Common Share, as reported   $ 0.28

Loss on extinguishment of debt per share, net of 0.11
tax

Basic Net Income Per Common Share, as adjusted   $ 0.39



Diluted Net Income Per Common Share, as reported $ 0.27

Loss on extinguishment of debt per share, net of 0.10
tax

Diluted Net Income Per Common Share, as adjusted $ 0.37



Weighted average number of common shares
outstanding:

Basic                                            135,030

Diluted                                          149,807

Net income, as adjusted is defined as net income, as reported, adjusted for 
the loss on early extinguishment of debt, net of tax. The adjustment for the 
loss on early extinguishment of debt, net of tax, reflects a non-cash charge 
associated with the early extinguishment of debt. Earnings per share, as 
adjusted is defined as net income, as adjusted per weighted average shares 
outstanding.

Management believes that these non-GAAP measures provide useful information to 
investors regarding our results before taking into account certain 
non-operating non-cash charges. Not all companies calculate net income, as 
adjusted in the same manner and the measure as presented may not be comparable 
to similarly titled measures presented by other companies.

http://www.lionsgate.com

http://photos.prnewswire.com/prnh/20110919/LA70620LOGO

PRN Photo Desk, photodesk@prnewswire.com

SOURCE: Lionsgate

To view this news release in HTML formatting, please use the following URL: 
http://www.newswire.ca/en/releases/archive/February2013/11/c4712.html

CO: Lionsgate
ST: British Columbia
NI: ENT FILM TVNEWS CONF ERN 

-0- Feb/11/2013 21:09 GMT


 
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