Mission Statement
Lions Gate Entertainment Corp. (“Lionsgate,” the “Company,” “we,” “us” or “our”) is a leading global entertainment company with a strong and diversified presence in motion picture production and distribution, television programming and syndication, home entertainment, family entertainment, digital distribution, new channel platforms and international distribution and sales." (from 10-K)
Risks
- Cannot assure future profitability
"We have reported operating income for fiscal years 2010, 2011 and 2012 and operating losses for fiscal years 2008 and 2009. We have reported net losses for the fiscal years 2008, 2009, 2010, 2011 and 2012. Our accumulated deficit was $542.0 million at March 31, 2012." - 10-K Item 1A pg 26
- May not be able to fully service all indebtedness
"Our ability to make scheduled payments or to refinance our debt obligations depends on our financial and operating performance, which is subject to prevailing economic and competitive conditions and to certain financial, business and other factors beyond our control." - 10-K Item 1A pg 27
(see more)
"We have reported operating income for fiscal years 2010, 2011 and 2012 and operating losses for fiscal years 2008 and 2009. We have reported net losses for the fiscal years 2008, 2009, 2010, 2011 and 2012. Our accumulated deficit was $542.0 million at March 31, 2012." - 10-K Item 1A pg 26
- May not be able to fully service all indebtedness
"Our ability to make scheduled payments or to refinance our debt obligations depends on our financial and operating performance, which is subject to prevailing economic and competitive conditions and to certain financial, business and other factors beyond our control." - 10-K Item 1A pg 27
(see more)
Personal Assessment
LIONSGATE is still a young Movie Studio. Barely fifteen years old, yet due to smart business strategies they are able to compete with some of the largest, longest standing studios. LIONSGATE shows its intelligence through both vertical and horizontal integration. They mostly produce their own content, but they also distribute it, and other studio's content as well. Evidence of horizontal integration is shown through their acquisition of other companies, such as Summit Entertainment. The company also makes use of synergy by distributing popular soundtracks alongside their movie counterparts, examples being The Hunger Games and their newly acquired Twilight Saga franchise. Investors would be safe looking into this company do to its rapid expansion, mindful business practices, and new acquisitions.