Lionsgate Fourth Quarter Revenue was $1.1 Billion; Operating Loss was $60.9 Million Net Loss Attributable to Lionsgate Shareholders was $39.5 Million or $0.22 Diluted Net Loss Per Share Adjusted Net Income Attributable to Lionsgate Shareholders was $63.4 Million or $0.27 Adjusted Diluted Earnings Per Share Quarterly Adjusted OIBDA was $140.3 Million  Television Group Segment Profit Increased 83% in the Quarter, Driven by Library Gains and Post-Strike Series Deliveries Film & Television Library Achieved Record $339 Million Revenue Quarter with Trailing 12-Month Revenue of $886 Million $397 Million of Net Cash Flow Provided by Operating Activities in the Full Year with Adjusted Free Cash Flow of $230 Million  SANTA MONICA, Calif. and VANCOUVER, BC, May 23, 2024 /PRNewswire/ -- Lions Gate Entertainment Corp. (NYSE:LGF, LGF.B)) ("Lionsgate") and Lionsgate Studios Corp. (NASDAQ:LION) ("Lionsgate Studios") today reported fourth quarter results for the quarter ended March 31, 2024.  Lionsgate Studios launched as a separate publicly-traded company on May 14, 2024, with parent company Lionsgate continuing to hold an approximately 87% stake in Lionsgate Studios.  This press release includes consolidated financial results for parent company Lionsgate as well as operating results for Lionsgate Studios (also referred to as the "Studio Business"), comprised of its Motion Picture and Television Production segments.  Lionsgate reported fourth quarter revenue of $1.1 billion, operating loss of $60.9 million, and net loss attributable to Lionsgate shareholders of $39.5 million or $0.22 diluted net loss per share on 235.3 million diluted weighted average common shares outstanding. Adjusted net income attributable to Lionsgate shareholders in the quarter was $63.4 million or $0.27 adjusted diluted net earnings per share on 238.9 million diluted weighted average common shares outstanding.  Adjusted OIBDA was $140.3 million in the quarter.  "We reported strong financial results in the fourth quarter to wrap up a great year in which we completed four major transactions, moved closer to a value-defining separation of our studio and STARZ businesses, grossed over a billion dollars at the global box office and grew our film and TV library to record levels," said Lionsgate and Lionsgate Studios CEO Jon Feltheimer.  "With the launch of Lionsgate Studios as a pure play, publicly-traded company earlier this month, we have an opportunity to shine a light on the value of the content we are creating, owning and delivering while taking an important step forward in preparing for the anticipated full separation of our studio and STARZ businesses by the end of the calendar year."  Library revenue in the quarter was a record $339 million with trailing 12-month revenue of $886 million, the second best total in Lionsgate's history.  Lionsgate reported $397 million of net cash flow provided by operating activities and $230 million in adjusted free cash flow in the full year, ending the quarter with $314 million in unrestricted cash.  Backlog from the Motion Picture and Television Production segments was $1.5 billion at March 31, 2024. Fourth Quarter Results The Studio Business, comprised of the Motion Picture and Television Production segments, reported revenue of $879.9 million, an increase of 6.8% from the prior year quarter.  Segment profit of $134.8 million increased by nearly 10% from the prior year quarter.   Motion Picture segment revenue declined by 23% to $410.6 million and segment profit declined by 12% to $82.2 million.  Revenue and segment profit compared to a prior year quarter in which John Wick: Chapter Four was released theatrically.  However, Motion Picture Group segment profit of $319.6 million for the year was the highest in 10 years.   Television Production segment revenue increased 61% to $469.3 million while segment profit increased 83% to $52.6 million.  Revenue and segment profit increases were driven by strength in library sales and an increase in post-strike content deliveries.  Media Networks segment domestic revenue grew on a sequential basis for the third quarter in a row.  Domestic OTT subscribers were flat sequentially and overall North American net subscribers decreased by 480K.  Media Networks segment revenue decreased by 7.1% year-over-year to $361.5 million.  Domestic streaming revenue growth was offset by declines in domestic linear and LIONSGATE+ revenue.  Segment profit declined by 28.4% to $52.5 million, driven primarily by higher domestic content amortization expense.   Lionsgate and Lionsgate Studios senior management will hold their analyst and investor conference call to discuss fiscal 2024 fourth quarter results today, May 23rd, at 5:00 PM ET/2:00 PM PT.  The consolidated financial results of Lionsgate and the operating results of Lionsgate Studios' segments will be discussed on a single call.  Interested parties may listen to the live webcast by visiting the events page on either the Lionsgate Investor Relations website or the Lionsgate Studios Investor Relations website.  Alternatively, interested parties can join the webcast directly via the following link.  A full replay will become available this evening by clicking the same link.  About Lionsgate Lionsgate (NYSE:LGF, LGF.B)) encompasses world-class motion picture and television studio operations and the STARZ premium global subscription platform, bringing a unique and varied portfolio of entertainment to consumers around the world.  The Company's film, television, subscription and location-based entertainment businesses are backed by a more than 20,000-title library and a valuable collection of iconic film and television franchises. A digital age company driven by its entrepreneurial culture and commitment to innovation, the Lionsgate brand is synonymous with bold, original, relatable entertainment for audiences worldwide.  About Lionsgate Studios Lionsgate Studios (NASDAQ: LION) is one of the world's leading standalone, pure play, publicly-traded content companies.  It brings together diversified motion picture and television production and distribution businesses, a world-class portfolio of valuable brands and franchises, a talent management and production powerhouse and a more than 20,000-title film and television library, all driven by Lionsgate's bold and entrepreneurial culture. For further information, investors should contact:Nilay For media inquiries, please contact:Peter D. 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, but not limited to: the benefits of the business combination consummated on May 13, 2024; the outcome of any legal, regulatory or governmental proceedings that may be instituted against the Company or any investigation or inquiry in connection with the business combination; unexpected costs related to the business combination; changes in our business strategy including the plan to potentially spin-off our studio business; the substantial investment of capital required to produce and market 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; risks related to acquisition and integration of acquired businesses; the effects of dispositions of businesses or assets, including individual films or libraries; the cost of defending our intellectual property; technological changes and other trends affecting the entertainment industry; potential adverse reactions or changes to business or employee relationships; the impact of global pandemics on our business; weakness in the global economy and financial markets, including a recession and past and future bank failures; wars, terrorism and multiple international conflicts that could cause significant economic disruption and political and social instability; labor disruptions and strikes; and the other risk factors set forth in Lionsgate's and Lionsgate Studios' public filings with the Securities and Exchange Commission.  The companies 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. Additional Information Available on Websites The information in this press release should be read in conjunction with the financial statements and footnotes contained in Lionsgate's Annual Report on Form 10-K for the year ended March 31, 2024, which will be posted on Lionsgate's website at http://investors.lionsgate.com/financial-reports/sec-filings,and Lionsgate Studios' Current Report on Form 8-K/A, which will be posted on Lionsgate Studios' website at https://investors.lionsgatestudios.com/. Trending schedules containing certain financial information will also be available. LIONS GATE ENTERTAINMENT CORP. CONSOLIDATED BALANCE SHEETS March 31,2024 March 31,2023 (Unaudited, amounts in millions) ASSETS Cash and cash equivalents $              314.0 $              272.1 Accounts receivable, net 753.0 582.1 Other current assets 396.5 264.2 Total current assets 1,463.5 1,118.4 Investment in films and television programs and program rights, net 2,762.2 2,947.9 Property and equipment, net 88.5 89.5 Investments 74.8 64.7 Intangible assets, net 991.8 1,300.1 Goodwill 811.2 1,289.5 Other assets 900.7 616.1 Total assets $          7,092.7 $          7,426.2 LIABILITIES Accounts payable $              327.6 $              368.1 Content related payables 190.0 184.1 Other accrued liabilities 355.1 273.4 Participations and residuals 678.4 549.3 Film related obligations 1,393.1 1,007.2 Debt - short term portion 860.3 41.4 Deferred revenue 187.6 147.2 Total current liabilities 3,992.1 2,570.7 Debt 1,619.7 1,978.2 Participations and residuals 435.1 329.6 Film related obligations 544.9 1,016.4 Other liabilities 556.4 317.9 Deferred revenue 118.4 52.0 Deferred tax liabilities 13.3 31.8 Total liabilities 7,279.9 6,296.6 Commitments and contingencies Redeemable noncontrolling interest 123.3 343.6 EQUITY (DEFICIT) Class A voting common shares, no par value, 500.0 shares authorized, 83.6 shares issued (March 31, 2023 - 83.5 shares issued) 673.6 672.3 Class B non-voting common shares, no par value, 500.0 shares authorized, 151.7 shares issued (March 31, 2023 - 145.9 shares issued) 2,474.4 2,430.9 Accumulated deficit (3,576.7) (2,439.6) Accumulated other comprehensive income 116.0 120.9 Total Lions Gate Entertainment Corp. shareholders' equity (deficit) (312.7) 784.5 Noncontrolling interests 2.2 1.5 Total equity (deficit) (310.5) 786.0 Total liabilities, redeemable noncontrolling interest and equity (deficit) $          7,092.7 $          7,426.2   LIONS GATE ENTERTAINMENT CORP. CONSOLIDATED STATEMENTS OF OPERATIONS Three Months Ended Year Ended March 31, March 31, 2024 2023 2024 2023 (Unaudited, amounts in millions, except per share amounts) Revenues $          1,117.7 $          1,085.7 $          4,016.9 $          3,854.8 Expenses Direct operating 640.1 567.8 2,189.2 2,312.5 Distribution and marketing 225.3 234.7 911.4 801.7 General and administration 122.4 191.1 490.5 531.1 Depreciation and amortization 53.3 46.3 192.2 180.3 Restructuring and other 137.5 95.4 508.5 411.9 Goodwill and intangible asset impairment — — 663.9 1,475.0 Total expenses 1,178.6 1,135.3 4,955.7 5,712.5 Operating loss (60.9) (49.6) (938.8) (1,857.7) Interest expense (76.8) (58.3) (269.8) (221.2) Interest and other income 15.6 1.7 22.1 6.4 Other expense (7.4) (5.9) (26.9) (26.9) Gain (loss) on extinguishment of debt (1.3) 17.1 19.9 57.4 Gain on investments, net 0.8 1.9 3.5 44.0 Equity interests income (loss) 3.0 (0.3) 8.7 0.5 Loss before income taxes (127.0) (93.4) (1,181.3) (1,997.5) Income tax benefit (provision) 77.4 (4.7) 65.0 (21.3) Net loss (49.6) (98.1) (1,116.3) (2,018.8) Less: Net loss attributable to noncontrolling interests 10.1 1.3 13.4 8.6 Net loss attributable to Lions Gate Entertainment Corp. shareholders $              (39.5) $              (96.8) $        (1,102.9) $        (2,010.2) Per share information attributable to Lions Gate Entertainment Corp. shareholders: Basic net loss per common share $              (0.22) $              (0.42) $              (4.77) $              (8.82) Diluted net loss per common share $              (0.22) $              (0.42) $              (4.77) $              (8.82) Weighted average number of common shares outstanding: Basic 235.3 229.2 233.6 227.9 Diluted 235.3 229.2 233.6 227.9   LIONS GATE ENTERTAINMENT CORP. CONSOLIDATED STATEMENTS OF CASH FLOWS Three Months Ended Year Ended March 31, March 31, 2024 2023 2024 2023 (Unaudited, amounts in millions) Operating Activities: Net loss $           (49.6) $           (98.1) $      (1,116.3) $      (2,018.8) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation and amortization 53.3 46.3 192.2 180.3 Amortization of films and television programs and program rights 439.3 380.8 1,577.9 1,665.3 Amortization of debt financing costs and other non-cash interest 6.2 5.6 28.3 25.7 Non-cash share-based compensation 15.3 42.2 90.6 102.0 Other amortization 18.5 13.4 53.4 69.2 Goodwill and intangible asset impairment — — 663.9 1,475.0 Non-cash charge from the modification of an equity award 49.2 — 49.2 — Content and other impairments 59.9 85.5 377.3 385.2 Gain on extinguishment of debt 1.3 (17.1) (19.9) (57.4) Equity interests (income) loss (3.0) 0.3 (8.7) (0.5) Gain on investments, net (0.8) (1.9) (3.5) (44.0) Deferred income taxes (5.2) (4.8) (18.5) (5.3) Changes in operating assets and liabilities: Proceeds from the termination of interest rate swaps — — — 188.7 Accounts receivable, net 48.2 (114.2) 105.6 (140.6) Investment in films and television programs and program rights, net (493.1) (405.8) (1,419.3) (1,979.2) Other assets 22.6 6.3 (1.7) (41.9) Accounts payable and accrued liabilities (42.7) 43.2 (136.3) (2.9) Participations and residuals 18.5 61.1 29.0 145.4 Content related payables (102.9) (17.0) (45.6) (35.1) Deferred revenue (39.6) (12.2) (0.8) (25.4) Net Cash Flows Provided By (Used In) Operating Activities (4.6) 13.6 396.8 (114.3) Investing Activities: Purchase of eOne, net of cash acquired — — (331.1) — Proceeds from the sale of equity method and other investments — — 5.2 46.3 Investment in equity method investees and other (2.0) — (13.3) (17.5) Distributions from equity method investees and other 0.8 1.9 0.8 1.9 Increase in loans receivable (0.1) — (3.7) — Capital expenditures (10.0) (12.3) (34.7) (49.0) Net Cash Flows Used In Investing Activities (11.3) (10.4) (376.8) (18.3) Financing Activities: Debt - borrowings, net of debt issuance and redemption costs 874.5 285.0 3,145.0 1,523.0 Debt - repurchases and repayments (685.4) (332.5) (2,672.8) (1,880.8) Film related obligations - borrowings 748.0 304.6 2,010.6 1,688.6 Film related obligations - repayments (685.1) (378.2) (2,215.4) (1,073.0) Settlement of financing component of interest rate swaps — — — (134.5) Purchase of noncontrolling interest (194.1) (36.5) (194.6) (36.5) Distributions to noncontrolling interest — (2.8) (1.7) (7.6) Exercise of stock options — 0.3 0.5 3.8 Tax withholding required on equity awards (0.9) (1.8) (32.0) (19.2) Net Cash Flows Provided By (Used In) Financing Activities 57.0 (161.9) 39.6 63.8 Net Change In Cash, Cash Equivalents and Restricted Cash 41.1 (158.7) 59.6 (68.8) Foreign Exchange Effects on Cash, Cash Equivalents and Restricted Cash (2.9) 0.7 (1.2) (2.8) Cash, Cash Equivalents and Restricted Cash - Beginning Of Period 333.2 471.0 313.0 384.6 Cash, Cash Equivalents and Restricted Cash - End Of Period $           371.4 $           313.0 $           371.4 $           313.0   LIONS GATE ENTERTAINMENT CORP. SEGMENT INFORMATION The Company's reportable segments have been determined based on the distinct nature of their operations, the Company's internal management structure, and the financial information that is evaluated regularly by the Company's chief operating decision maker. The Company has three reportable business segments: (1) Motion Picture, (2) Television Production and (3) Media Networks. We refer to our Motion Picture and Television Production segments collectively as our Studio Business. Studio Business: Motion Picture. Motion Picture consists of the development and production of feature films, acquisition of North American and worldwide distribution rights, North American theatrical, home entertainment and television distribution of feature films produced and acquired, and worldwide licensing of distribution rights to feature films produced and acquired. Television Production. Television Production consists of the development, production and worldwide distribution of television productions including television series, television movies and mini-series, and non-fiction programming. Television Production includes the licensing of Starz original series productions to Starz Networks and LIONSGATE+, and the ancillary market distribution of Starz original productions and licensed product. Additionally, the Television Production segment includes the results of operations of 3 Arts Entertainment. Media Networks Business: Media Networks. Media Networks consists of the following product lines (i) Starz Networks, which includes the domestic distribution of STARZ branded premium subscription video services through over-the-top ("OTT") platforms, on a direct-to-consumer basis through the Starz App, and through U.S. multichannel video programming distributors ("MVPDs") including cable operators, satellite television providers and telecommunication companies (collectively, "Distributors") (in the aggregate, the "Starz Domestic Platform"); and (ii) LIONSGATE+, which represents revenues primarily from the OTT distribution of the Company's STARZ branded premium subscription video services outside of the U.S. The Starz Domestic Platform together with the LIONSGATE+ platforms are referred to as the "Starz Platforms". In the ordinary course of business, the Company's reportable segments enter into transactions with one another. The most common types of intersegment transactions include licensing motion pictures or television programming (including Starz original productions) from the Motion Picture and Television Production segments to the Media Networks segment. While intersegment transactions are treated like third-party transactions to determine segment performance, the revenues (and corresponding expenses, assets, or liabilities recognized by the segment that is the counterparty to the transaction) are eliminated in consolidation and, therefore, do not affect consolidated results. LIONS GATE ENTERTAINMENT CORP. SEGMENT INFORMATION (Continued) Segment information is presented in the tables below. The Motion Picture and Television Production segments include the results of operations of eOne from the acquisition date of December 27, 2023. Three Months Ended Year Ended March 31, March 31, 2024 2023 2024 2023 (Unaudited, amounts in millions) Segment revenues Studio Business: Motion Picture $              410.6 $              532.1 $          1,656.3 $          1,323.7 Television Production 469.3 291.5 1,330.1 1,760.1 Total Studio Business 879.9 823.6 2,986.4 3,083.8 Media Networks 361.5 389.0 1,576.4 1,546.5 Intersegment eliminations (123.7) (126.9) (545.9) (775.5) $          1,117.7 $          1,085.7 $          4,016.9 $          3,854.8 Segment profit Studio Business: Motion Picture $                82.2 $                93.8 $              319.4 $              276.5 Television Production 52.6 28.8 146.8 133.4 Total Studio Business(1) 134.8 122.6 466.2 409.9 Media Networks 52.5 73.3 236.4 106.8 Intersegment eliminations (5.1) (4.4) (48.9) (35.7) Total segment profit(1) $              182.2 $              191.5 $              653.7 $              481.0 Corporate general and administrative expenses (41.9) (53.5) (136.1) (122.9) Adjusted OIBDA(1) $              140.3 $              138.0 $              517.6 $              358.1 _______________ (1) See "Use of Non-GAAP Financial Measures" for the definition of Total Segment Profit, Studio Business Segment Profit and Adjusted OIBDA and reconciliation to the most directly comparable GAAP financial measure.   The Company's primary measure of segment performance is segment profit. Segment profit is defined as segment revenues, less segment direct operating and segment distribution and marketing expense, less segment general and administration expenses. Total segment profit represents the sum of segment profit for our individual segments, net of eliminations for intersegment transactions. Segment profit and total segment profit excludes, when applicable, corporate general and administrative expense, restructuring and other costs, share-based compensation, certain programming and content charges as a result of changes in management and/or programming and content strategy, certain charges related to the COVID-19 global pandemic, charges resulting from Russia's invasion of Ukraine, and purchase accounting and related adjustments. Segment profit is a GAAP financial measure. We also present above our total segment profit for all of our segments and the sum of our Motion Picture and Television Production segment profit as our "Studio Business" segment profit. Total segment profit and Studio Business segment profit, when presented outside of the segment information and reconciliations included in the notes to our consolidated financial statements, is considered a non-GAAP financial measure, and should be considered in addition to, not as a substitute for, or superior to, measures of financial performance prepared in accordance with United States GAAP. We use this non-GAAP measure, among other measures, to evaluate the aggregate operating performance of our business. LIONS GATE ENTERTAINMENT CORP. SEGMENT INFORMATION (Continued) The following table sets forth segment information by product line for the Media Networks segment for the three months  and year ended March 31, 2024 and 2023: Three Months Ended Year Ended March 31, March 31, 2024 2023 2024 2023 (Unaudited, amounts in millions) Media Networks revenue: Starz Networks $              345.4 $              347.1 $          1,365.4 $          1,395.8 LIONSGATE+ 16.1 41.9 211.0 150.7 $              361.5 $              389.0 $          1,576.4 $          1,546.5 Media Networks segment profit (loss): Starz Networks $                57.8 $                82.9 $              206.1 $              218.3 LIONSGATE+ (5.3) (9.6) 30.3 (111.5) $                52.5 $                73.3 $              236.4 $              106.8   LIONS GATE ENTERTAINMENT CORP. SEGMENT INFORMATION (Continued) Subscriber Data. The number of period-end service subscribers is a key metric which management uses to evaluate a non-ad supported subscription video service.  We believe this key metric provides useful information to investors as a growing or decreasing subscriber base is a key indicator of the health of the overall business. Service subscribers may impact revenue differently depending on specific distribution agreements we have with our distributors which may include fixed fees, rates per basic video household or a rate per STARZ subscriber. The following table sets forth, for the periods presented, subscriptions to our Media Networks and STARZPLAY Arabia services, excluding LIONSGATE+ subscribers in territories exited or to be exited: As of As of 6/30/22 9/30/22 12/31/22 3/31/23 6/30/23 9/30/23 12/31/23 3/31/24 (Amounts in millions) Starz Domestic OTT Subscribers 12.18 12.25 11.56 12.25 11.82 12.02 12.63 12.59 Linear Subscribers 9.22 8.76 8.32 8.02 7.68 7.42 7.10 6.76 Total 21.40 21.01 19.88 20.27 19.50 19.44 19.73 19.35 LIONSGATE+ excluding territories exited or to be exited(1) OTT Subscribers(2) 2.29 2.76 3.17 3.47 3.72 3.77 3.25 3.31 Linear Subscribers 1.81 1.81 1.83 1.81 1.80 1.79 1.75 1.66 Total 4.10 4.57 5.00 5.28 5.52 5.56 5.00 4.97 Total Starz excluding territories exited or to be exited OTT Subscribers(2) 14.47 15.01 14.73 15.72 15.54 15.79 15.88 15.90 Linear Subscribers 11.03 10.57 10.15 9.83 9.48 9.21 8.85 8.42 Total Starz excluding territories exited or to be exited 25.50 25.58 24.88 25.55 25.02 25.00 24.73 24.32 STARZPLAY Arabia(3) 1.94 2.00 2.10 2.55 2.80 3.04 3.19 3.22 Total Domestic and International Subscribers(including STARZPLAY Arabia) excluding territoriesexited or to be exited(2) 27.44 27.58 26.98 28.10 27.82 28.04 27.92 27.54 Subscribers by Platform excluding territories exited or to be exited: OTT Subscribers(2)(4) 16.41 17.01 16.83 18.27 18.34 18.83 19.07 19.12 Linear Subscribers 11.03 10.57 10.15 9.83 9.48 9.21 8.85 8.42 Total Global Subscribers excluding territories exited or to be exited(2) 27.44 27.58 26.98 28.10 27.82 28.04 27.92 27.54 Supplemental Subscriber Information: Starz North America(5) OTT Subscribers 12.85 12.93 12.24 12.95 12.51 12.73 13.43 13.38 Linear Subscribers 11.03 10.57 10.15 9.83 9.48 9.21 8.85 8.42 Total 23.88 23.50 22.39 22.78 21.99