Lions Gate Entertainment Net Profit Slumps - Quick Facts

(RTTNews) - Lions Gate Entertainment Corp. (LGF) reported a sharp plunge in second-quarter net income to $0.5 million, from $75.53 million a year before. On a per share basis, the company reported a breakeven in the recent quarter, versus a profit of $0.53 in the previous year. This included a $36.2 million charge on early extinguishment of debt, the company said.

According to the company, quarterly net profit fell because the inclusion of charges for early extinguishment of debt, the comparison to the prior year second quarter home entertainment release of The Hunger Games and the timing of television deliveries offset lower theatrical marketing costs and continued decline in interest expense.

Quarterly adjusted net income was $25.4 million or $0.18 per share, excluding stock-based compensation, early extinguishment of debt and the discrete tax benefit recognized from the reversal of a Canadian tax valuation allowance. On average, 8 analysts polled by Thomson Reuters expected loss per share of $0.08 for the quarter. Analysts' estimates typically exclude one-time items.

For the quarter, revenue of $498.73 million dropped by 29% from $707.0 million reported last year, reflecting the comparison to a prior year second quarter that included the home entertainment release of The Hunger Games as well as timing of television deliveries. Eleven analysts estimated revenues of $528.85 million for the quarter.