Acquisition Costs Derail Lions Gate's Strong Q317 Feb, 2004 By: Erik Gruenwedel
Despite a 25 percent jump in revenue, to $77.4 million, assorted nonrecurring expenses — including $8 million related to the acquisition of Artisan Entertainment — resulted in Lions Gate Entertainment posting a $29.8 million net loss, or 36 cents per diluted share, for the third quarter ended Dec. 31, 2003.
Santa Monica, Calif.-based Lions Gate lost $2.3 million, or 7 cents per diluted share, during the same period last year.
On a positive note, strong home video sales of House of 1,000 Corpses and TV on DVD releases of NBC comedies “Will & Grace” and “Saturday Night Live,” featuring Will Ferrell; and ABC's fright flick The Diary of Ellen Rimbauer, from Stephen King, helped Lions Gate see a 24 percent increase in film and TV revenue, to $54.2 million, compared with $43.6 million last year.
TV revenue increased 40 percent, to $17.1 million, from $12.2 million last year.
“We are ahead of schedule in achieving the successful integration of Artisan Entertainment,” said Lions Gate CEO Jon Feltheimer in a statement. “This was a highly accretive and deleveraging transaction.”