Exhibit 99.2
Selected Consolidated Financial Data (adjusted to reflect the retrospective application of FSP APB 14-1)
ITEM 6. SELECTED CONSOLIDATED FINANCIAL DATA.
The consolidated financial statements for all periods presented in this Form 10-K are prepared in conformity with U.S. generally accepted accounting principles.
The Selected Consolidated Financial Data below includes the results of Lionsgate UK, Debmar-Mercury, Mandate Pictures, and TV Guide Network from their acquisition dates of October 17, 2005, July 3, 2006, September 10, 2007, and February 28, 2009, respectively, onwards. The Selected Consolidated Financial Data below also includes the results of Maple Pictures from the date of consolidation of July 18, 2007, onwards. The Selected Consolidated Financial Data below has also been adjusted for the adoption of Financial Accounting Standards Board Staff Position APB 14-1, “Accounting for convertible debt instruments that may be settled in cash upon conversion (including partial cash settlement)” (“FSP APB 14-1”). FSP APB 14-1 applied to the Company’s 2.9375% and 3.625% Convertible Senior Subordinated Notes, issued in October 2004 and February 2005. FSP APB 14-1 did not apply to the 4.875% Convertible Senior Subordinated Notes issued in December 2003 and converted into common shares in December 2006. FSP APB 14-1 requires retrospective application and accordingly the Company’s results of operations for the years ended March 31, 2009, 2008, 2007, 2006, and 2005 and financial positions as at March 31, 2009, 2008, 2007, 2006, and 2005 have been adjusted on a retrospective basis as if FSP APB 14-1 were effective from the date of issuance of the Company’s 2.9375% and 3.625% Convertible Senior Subordinated Notes. See Note 2 and Note 10 to the Consolidated Financial Statements. Due to the acquisitions and the consolidation of Maple Pictures, the Company’s results of operations for the years ended March 31, 2009, 2008, 2007, 2006, and 2005 and financial positions as at March 31, 2009, 2008, 2007, 2006, and 2005 are not directly comparable to prior reporting periods.
| Year Ended March 31, | ||||||||||||||||||||
| 2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||||||
| (Amounts in thousands, except per share amounts) | ||||||||||||||||||||
Statement of Operations Data: | ||||||||||||||||||||
| Revenues | $ | 1,466,374 | $ | 1,361,039 | $ | 976,740 | $ | 945,385 | $ | 838,097 | ||||||||||
| Expenses: | ||||||||||||||||||||
| Direct operating | 793,816 | 660,924 | 435,934 | 456,986 | 351,598 | |||||||||||||||
| Distribution and marketing | 669,557 | 635,666 | 404,410 | 399,299 | 364,281 | |||||||||||||||
| General and administration | 136,563 | 119,080 | 90,782 | 69,936 | 69,258 | |||||||||||||||
| Depreciation and amortization | 7,657 | 5,500 | 3,670 | 3,821 | 4,562 | |||||||||||||||
| Total expenses | 1,607,593 | 1,421,170 | 934,796 | 930,042 | 789,699 | |||||||||||||||
| Operating income (loss) | (141,219 | ) | (60,131 | ) | 41,944 | 15,343 | 48,398 | |||||||||||||
| Other expenses (income): | ||||||||||||||||||||
| Interest expense | ||||||||||||||||||||
| Contractual cash based interest | 15,131 | 12,851 | 14,056 | 15,057 | 18,392 | |||||||||||||||
| Amortization of debt discount and deferred financing costs | 19,144 | 17,048 | 15,783 | 14,578 | 9,757 | |||||||||||||||
| Interest rate swaps mark-to-market | — | — | — | 123 | (2,453 | ) | ||||||||||||||
| Total interest expense | 34,275 | 29,899 | 29,839 | 29,758 | 25,696 | |||||||||||||||
| Interest and other income | (5,785 | ) | (11,276 | ) | (11,930 | ) | (4,304 | ) | (3,333 | ) | ||||||||||
| Gain on sale of equity securities | — | (2,909 | ) | (1,722 | ) | — | — | |||||||||||||
| Gain on extinguishment of debt | (3,023 | ) | — | — | — | — | ||||||||||||||
| Total other expenses, net | 25,467 | 15,714 | 16,187 | 25,454 | 22,363 | |||||||||||||||
| Income (loss) before equity interests and income taxes | (166,686 | ) | (75,845 | ) | 25,757 | (10,111 | ) | 26,035 | ||||||||||||
| Equity interests loss | (9,044 | ) | (7,559 | ) | (2,605 | ) | (74 | ) | (200 | ) | ||||||||||
| Income (loss) before income taxes | (175,730 | ) | (83,404 | ) | 23,152 | (10,185 | ) | 25,835 | ||||||||||||
| Income tax provision (benefit) | 2,724 | 4,031 | 7,680 | (1,030 | ) | 8,747 | ||||||||||||||
| Income (loss) before discontinued operations | (178,454 | ) | (87,435 | ) | 15,472 | (9,155 | ) | 17,088 | ||||||||||||
| Income (loss) from discontinued operations (including gain on sale in 2006 of $4,872), net of tax of $2,464 in 2006 and $200 in 2005 | — | — | — | 4,476 | 362 | |||||||||||||||
| Net income (loss) | $ | (178,454 | ) | $ | (87,435 | ) | $ | 15,472 | $ | (4,679 | ) | $ | 17,450 | |||||||
Basic Per Share Data: | ||||||||||||||||||||
| Basic Income (Loss) Per Common Share From Continuing Operations | $ | (1.53 | ) | $ | (0.74 | ) | $ | 0.14 | $ | (0.09 | ) | $ | 0.18 | |||||||
| Basic Income Per Common Share From Discontinued Operations | — | — | — | 0.04 | 0.00 | |||||||||||||||
Basic Net Income (Loss) Per Common Share | $ | (1.53 | ) | $ | (0.74 | ) | $ | 0.14 | $ | (0.05 | ) | $ | 0.18 | |||||||
Diluted Per Share Data: | ||||||||||||||||||||
| Diluted Income (Loss) Per Common Share From Continuing Operations | $ | (1.53 | ) | $ | (0.74 | ) | $ | 0.14 | $ | (0.09 | ) | $ | 0.17 | |||||||
| Diluted Income Per Common Share From Discontinued Operations | — | — | — | 0.04 | 0.00 | |||||||||||||||
Diluted Net Income (Loss) Per Common Share | $ | (1.53 | ) | $ | (0.74 | ) | $ | 0.14 | $ | (0.05 | ) | $ | 0.17 | |||||||
Weighted average number of common shares outstanding: | ||||||||||||||||||||
| Basic | 116,795 | 118,427 | 108,398 | 103,066 | 97,610 | |||||||||||||||
| Diluted | 116,795 | 118,427 | 111,164 | 103,066 | 103,375 | |||||||||||||||
Balance Sheet Data (at end of period): | ||||||||||||||||||||
| Cash and cash equivalents | 138,475 | 371,589 | 51,497 | 46,978 | 112,839 | |||||||||||||||
| Investments – auction rate securities | — | — | 237,379 | 167,081 | — | |||||||||||||||
| Investment in films and television programs | 702,767 | 608,942 | 493,140 | 417,750 | 367,376 | |||||||||||||||
| Total assets | 1,667,250 | 1,536,927 | 1,135,598 | 1,050,953 | 851,482 | |||||||||||||||
| Bank loans | 255,000 | — | — | — | 1,162 | |||||||||||||||
| Subordinated notes and other financing obligations | 281,521 | 261,519 | 243,675 | 290,869 | 284,243 | |||||||||||||||
| Total liabilities | 1,625,557 | 1,282,328 | 807,880 | 809,848 | 631,733 | |||||||||||||||
| Shareholders’ equity | 41,693 | 254,599 | 327,718 | 241,105 | 219,749 | |||||||||||||||