On May 30, the largest independent movie studio released full-year 2007 earnings for the period ending March 31. That would be Lions Gate Entertainment
- Revenue from theatrical showings decreased 26% to $107.9 million, but the shortfall was counterbalanced by strong international sales and TV-release windows.
- DVD sales came in flat over last year at $528 million, once again showing us exactly where the money is made in the movie business.
- With relatively fixed operational expenses, it doesn't take much of a revenue bump to make good things happen on the bottom line, as you can see here. That's especially true when the year-ago period came in close to breakeven.
(Figures in millions, except per-share data)
Income Statement Highlights
|
FY 2007 |
FY 2006 |
Change |
|
|---|---|---|---|
|
Sales |
$976.7 |
$945.4 |
3.3% |
|
Net Profit |
$27.5 |
$6.1 |
350.8% |
|
EPS |
$0.25 |
$0.06 |
316.7% |
|
Diluted Shares |
111.2 |
106.1 |
4.8% |
Get back to basics with the income statement.
Margin Checkup
|
FY 2007 |
FY 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
55.3% |
51.5% |
3.8 |
|
Operating Margin |
4.3% |
1.6% |
2.7 |
|
Net Margin |
2.8% |
0.6% |
2.2 |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
FY 2007 |
FY 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$288.9 |
$217.1 |
33.1% |
|
Accounts Rec. |
$130.5 |
$182.7 |
(28.6%) |
|
Film & TV Library |
$493.1 |
$417.8 |
18.0% |
|
Liabilities |
FY 2007 |
FY 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$155.6 |
$188.8 |
(17.6%) |
|
Long-Term Debt |
$325.0 |
$385.0 |
(15.6%) |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
FY 2007 |
FY 2006 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$107.8 |
$123.0 |
(12.3%) |
|
Capital Expenditures |
$8.3 |
$5.6 |
50.3% |
|
Free Cash Flow |
$99.5 |
$117.4 |
(15.3%) |
|
$25.7 |
$6.2 |
316.6% |
Free cash flow is a Fool's best friend.
Related Foolishness:
- Foolish Forecast: Lions Gate Purrs
- A Cold Weekend for Steve Austin
- The Lion Thrives in "Captivity"
- Foolish Fundamentals: The Income Statement
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Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.
At the time of publication, Fool contributor Anders Bylund had no position in any company mentioned. Fool rules are here.
