Lionsgate reports small loss in Q4

Falling short of Wall Street estimates, Lionsgate has reported a narrowed quarterly loss of $1.7 million, or a penny a share, for its third quarter ended Dec. 31, compared with a $6 million loss for the year-ago period. The analyst consensus had been for a profit of 9 cents a share. Lionsgate released the earnings report -- its first since its $412.5 million leveraged buyout of Summit Entertainment -- after the markets closed Thursday. Shares fell 21 cents to $10.80 in afterhours trading. Shares remain up more than 20% since the Summit deal was announced Jan. 13. Revenues were $323 million, down 24% due to Lionsgate releasing no films during the quarter compared with three in the year-ago period. Analysts had expected revenues to come in at $359 million. "We had no wide theatrical releases in the quarter, but we received solid contributions from our other operating divisions and another strong performance by Epix," said CEO Jon Feltheimer. The combo of Lionsgate-Summit combo brings together Hollywood's biggest independent film studios, highlighted by Summit's "Twilight" franchise and Lionsgate's upcoming "The Hunger Games." The deal prompted several analysts to boost their ratings and price targets. Feltheimer said the company was "very excited" about the opportunities created by the Summit deal. "The February 11 home entertainment release of 'Twilight Saga Breaking Dawn 1,' the March 23 theatrical release of 'Hunger Games' and the November 16 theatrical release of 'Twilight Saga Breaking Dawn 2' lead a strong combined slate that we believe will enable us to deliver increased consistency, profitability and value to our shareholders," he added. Motion picture revenue fell 29% to $233.3 million and home entertainment revenue from both motion pictures and TV revenues declined to $162.9 million with Lionsgate noting that the decrease was attributable primarily to the strength of year-ago titles. Lionsgate's filmed entertainment backlog reached a record $607.5 million on Dec. 31, the fifth consecutive quarter of increased backlog. The figure represents the amount of future revenue not yet recorded from contracts for the licensing of films and TV product General and administrative expenses totalled $35.8 million, essentially unchanged from the prior year. Lionsgate said transaction costs associated with the Summit acquisition and increases in share-based compensation associated with the increased stock price offset reductions in costs related to ending its long battle with Carl Icahn and an 8% decline in other expenses. Contact Dave McNary at dave.mcnary@variety.com