Business Context and Reporting Period
This Form 8-K is filed by Lions Gate Entertainment Corp. (noted in metadata as Starz Entertainment Corp) on February 9, 2009. The filing reports the results of operations for the third quarter of fiscal 2009, which ended on December 31, 2008.
Key Financial Metrics
The filing discloses specific non-GAAP financial measures for the quarter ended December 31, 2008:
- Free Cash Flow: Approximately negative $105 million.
- Net Cash Flows Used in Operating Activities: Approximately negative $56 million.
- EBITDA: Negative $89 million.
The filing does not provide specific values for GAAP revenue, net income, total debt, or liquidity ratios within the text of this report; these are referenced as being contained in the attached press release (Exhibit 99.1).
Material Changes and Definitions
The company provides specific definitions for its non-GAAP measures:
- Free Cash Flow: Defined as net cash flows used in operating activities, less purchases of property and equipment, adjusted for the net increase or decrease in production obligations. The company adjusts for production obligations to reflect cash payments for films when actually made rather than when costs are accrued under GAAP.
- EBITDA: Defined as earnings before interest, income tax provision or benefit, depreciation, and equity interests losses.
The filing notes that these measures are commonly used in the entertainment industry but may not be comparable to similarly titled measures used by other companies.
Guidance, Outlook, and Risks
The filing does not contain forward-looking guidance, management commentary on future outlook, or specific risk factors beyond the standard disclaimers regarding non-GAAP measures. The primary purpose of this filing is to incorporate the press release (Exhibit 99.1) by reference.
Investor Verification Checklist
- Verify the full GAAP financial results (Revenue, Net Income) in the attached Exhibit 99.1 (Press Release), as they are not detailed in this 8-K text.
- Review the reconciliation of Free Cash Flow and EBITDA to Net Income in Exhibit 99.1 to understand the specific adjustments made.
- Confirm the company's current liquidity position and debt levels, as these specific figures are not provided in this summary text.
- Note the significant negative cash flow generation (both operating and free cash flow) for the quarter.