Exhibit 99.3 — Selected Financial Data (adjusted to reflect the retrospective application of the consolidation accounting standard)
ITEM 6. SELECTED 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 and Mandate Pictures from their acquisition dates of October 17, 2005, July 3, 2006 and September 10, 2007, 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. In addition, the Selected Consolidated Financial Data below includes the results of TV Guide Network from the acquisition date of February 28, 2009 until its deconsolidation on May 28, 2009, as explained below. The Selected Consolidated Financial Data below has been adjusted for the adoption of a new accounting standard pertaining to consolidation accounting for variable interest entities. This new accounting standard applied to our investment in TV Guide Network. Upon adoption, we applied the provisions of the new accounting standard retrospectively and accordingly, we deconsolidated TV Guide Network on May 28, 2009, the date on which we sold a 49% interest in TV Guide Network to OEP, and retrospectively adjusted the financial statements to account for TV Guide Network under the equity method of accounting since that date. See Note 2 and Note 7 to the Consolidated Financial Statements. Due to the acquisitions, the consolidation of Maple Pictures, and the deconsolidation of TV Guide Network, the Company’s results of operations for the years ended March 31, 2010, 2009, 2008, 2007, and 2006 and financial positions as at March 31, 2010, 2009, 2008, 2007, and 2006 are not directly comparable to prior reporting periods.
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| Year Ended March 31, |
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| 2010 |
| 2009 |
| 2008 |
| 2007 |
| 2006 |
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| (Amounts in thousands, except per share amounts) |
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Statement of Operations Data: |
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Revenues |
| $ | 1,489,506 |
| $ | 1,466,374 |
| $ | 1,361,039 |
| $ | 976,740 |
| $ | 945,385 |
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Expenses: |
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Direct operating |
| 777,969 |
| 793,816 |
| 660,924 |
| 435,934 |
| 456,986 |
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Distribution and marketing |
| 506,141 |
| 669,557 |
| 635,666 |
| 404,410 |
| 399,299 |
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General and administration |
| 143,060 |
| 136,563 |
| 119,080 |
| 90,782 |
| 69,936 |
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Depreciation and amortization |
| 12,455 |
| 7,657 |
| 5,500 |
| 3,670 |
| 3,821 |
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Total expenses |
| 1,439,625 |
| 1,607,593 |
| 1,421,170 |
| 934,796 |
| 930,042 |
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Operating income (loss) |
| 49,881 |
| (141,219 | ) | (60,131 | ) | 41,944 |
| 15,343 |
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Other expenses (income): |
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Interest expense |
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Contractual cash based interest |
| 27,461 |
| 15,131 |
| 12,851 |
| 14,056 |
| 15,057 |
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Amortization of debt discount, deferred financing costs and accretion of redeemable preferred stock units |
| 19,701 |
| 19,144 |
| 17,048 |
| 15,783 |
| 14,578 |
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Interest rate swaps mark-to-market |
| — |
| — |
| — |
| — |
| 123 |
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Total interest expense |
| 47,162 |
| 34,275 |
| 29,899 |
| 29,839 |
| 29,758 |
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Interest and other income |
| (1,547 | ) | (5,785 | ) | (11,276 | ) | (11,930 | ) | (4,304 | ) | |||||
Gain on sale of equity securities |
| — |
| — |
| (2,909 | ) | (1,722 | ) | — |
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Gain on extinguishment of debt |
| (5,675 | ) | (3,023 | ) | — |
| — |
| — |
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Total other expenses, net |
| 39,940 |
| 25,467 |
| 15,714 |
| 16,187 |
| 25,454 |
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Income (loss) before equity interests and income taxes |
| 9,941 |
| (166,686 | ) | (75,845 | ) | 25,757 |
| (10,111 | ) | |||||
Equity interests loss |
| (28,201 | ) | (9,044 | ) | (7,559 | ) | (2,605 | ) | (74 | ) | |||||
Income (loss) before income taxes |
| (18,260 | ) | (175,730 | ) | (83,404 | ) | 23,152 |
| (10,185 | ) | |||||
Income tax provision (benefit) |
| 1,218 |
| 2,724 |
| 4,031 |
| 7,680 |
| (1,030 | ) | |||||
Income (loss) before discontinued operations |
| (19,478 | ) | (178,454 | ) | (87,435 | ) | 15,472 |
| (9,155 | ) | |||||
Income from discontinued operations (including gain on sale in 2006 of $4,872, net of tax of $2,464) |
| — |
| — |
| — |
| — |
| 4,476 |
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Net income (loss) |
| $ | (19,478 | ) | $ | (178,454 | ) | $ | (87,435 | ) | $ | 15,472 |
| $ | (4,679 | ) |
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Basic Per Share Data: |
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Basic Income (Loss) Per Common Share From Continuing Operations |
| $ | (0.17 | ) | $ | (1.53 | ) | $ | (0.74 | ) | $ | 0.14 |
| $ | (0.09 | ) |
Basic Income Per Common Share From Discontinued Operations |
| — |
| — |
| — |
| — |
| 0.04 |
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Basic Net Income (Loss) Per Common Share |
| $ | (0.17 | ) | $ | (1.53 | ) | $ | (0.74 | ) | $ | 0.14 |
| $ | (0.05 | ) |
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Diluted Per Share Data: |
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Diluted Income (Loss) Per Common Share From Continuing Operations |
| $ | (0.17 | ) | $ | (1.53 | ) | $ | (0.74 | ) | $ | 0.14 |
| $ | (0.09 | ) |
Diluted Income Per Common Share From Discontinued Operations |
| — |
| — |
| — |
| — |
| 0.04 |
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Diluted Net Income (Loss) Per Common Share |
| $ | (0.17 | ) | $ | (1.53 | ) | $ | (0.74 | ) | $ | 0.14 |
| $ | (0.05 | ) |
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Weighted average number of common shares outstanding: |
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Basic |
| 117,510 |
| 116,795 |
| 118,427 |
| 108,398 |
| 103,066 |
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Diluted |
| 117,510 |
| 116,795 |
| 118,427 |
| 111,164 |
| 103,066 |
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Balance Sheet Data (at end of period): |
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Cash and cash equivalents |
| 69,242 |
| 138,475 |
| 371,589 |
| 51,497 |
| 46,978 |
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Investments - auction rate securities |
| — |
| — |
| — |
| 237,379 |
| 167,081 |
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Investment in films and television programs |
| 661,105 |
| 702,767 |
| 608,942 |
| 493,140 |
| 417,750 |
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Total assets |
| 1,527,155 |
| 1,667,250 |
| 1,536,927 |
| 1,135,598 |
| 1,050,953 |
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Senior revolving credit facility |
| 17,000 |
| 255,000 |
| — |
| — |
| — |
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Senior secured second-priority notes |
| 225,155 |
| — |
| — |
| — |
| — |
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Subordinated notes and other financing obligations |
| 192,036 |
| 281,521 |
| 261,519 |
| 243,675 |
| 290,869 |
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Total liabilities |
| 1,473,233 |
| 1,625,557 |
| 1,282,328 |
| 807,880 |
| 809,848 |
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Total shareholders' equity |
| 53,922 |
| 41,693 |
| 254,599 |
| 327,718 |
| 241,105 |
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