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Lions Gate Lions Gate Entertainment Corp. Entertainment Corp.

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Page 1: Lions Gate Entertainment Corp.. What does this company do? Lions Gate is the top producer and distributor of independent films. Lions Gate is the top

Lions Gate Lions Gate Entertainment Corp.Entertainment Corp.

Page 2: Lions Gate Entertainment Corp.. What does this company do? Lions Gate is the top producer and distributor of independent films. Lions Gate is the top

What does this What does this company do?company do?

Lions Gate is the top producer and Lions Gate is the top producer and distributor of independent films.distributor of independent films.

Engages in the production and Engages in the production and distribution of motion pictures, distribution of motion pictures, television programming, home television programming, home entertainment, family entertainment, family entertainment, video-on-demand, entertainment, video-on-demand, and music content.and music content.

Page 3: Lions Gate Entertainment Corp.. What does this company do? Lions Gate is the top producer and distributor of independent films. Lions Gate is the top

History of the History of the companycompany

Founded: 1997 by Investment Banker Founded: 1997 by Investment Banker Frank Giustra.Frank Giustra.

Headquartered in Vancouver, Canada.Headquartered in Vancouver, Canada. By end of 1997: Giustra had acquired By end of 1997: Giustra had acquired

Cineplex Film Properties, Mandalay Cineplex Film Properties, Mandalay Television, and North Shore Studios.Television, and North Shore Studios.

2000: Giustra was replaced with Jon 2000: Giustra was replaced with Jon Feltheimer who focused on assembling Feltheimer who focused on assembling a library of film and TV titles.a library of film and TV titles.

Page 4: Lions Gate Entertainment Corp.. What does this company do? Lions Gate is the top producer and distributor of independent films. Lions Gate is the top

History Cont.History Cont.

2001: Lions Gate joined with Artisan 2001: Lions Gate joined with Artisan Entertainment and the two companies Entertainment and the two companies acquired distribution rights to the TV and acquired distribution rights to the TV and film library of Kushner-Locke.film library of Kushner-Locke.

2002: the company sold its stake in 2002: the company sold its stake in Mandalay Pictures.Mandalay Pictures.

2003: With its purchase of Artisan 2003: With its purchase of Artisan Entertainment, the company dramatically Entertainment, the company dramatically increased the size of its film and TV increased the size of its film and TV library.library.

Page 5: Lions Gate Entertainment Corp.. What does this company do? Lions Gate is the top producer and distributor of independent films. Lions Gate is the top

Products/ServicesProducts/Services

Releases approx. 15-18 motion pictures Releases approx. 15-18 motion pictures theatrically per yeartheatrically per year

Operations:Operations:– Artisan Entertainment- (Independent film production Artisan Entertainment- (Independent film production

and distribution)and distribution)– CinemaNow- (Online video-on-demand providerCinemaNow- (Online video-on-demand provider– Image Entertainment- Home video and DVD Image Entertainment- Home video and DVD

distribution)distribution)– Lionsgate Films- (Independent film production and Lionsgate Films- (Independent film production and

distribution)distribution)– Lionsgate Studios- (Canadian production studios)Lionsgate Studios- (Canadian production studios)– Lionsgate Television- (TV production)Lionsgate Television- (TV production)– Trimark Pictures- (low budget film distribution)Trimark Pictures- (low budget film distribution)

Page 6: Lions Gate Entertainment Corp.. What does this company do? Lions Gate is the top producer and distributor of independent films. Lions Gate is the top

Products/Services Products/Services Cont.Cont. Total Sales 2006= $951.2 millionTotal Sales 2006= $951.2 million LIBRARY: ~3,000 motion LIBRARY: ~3,000 motion picture titles and 2,500picture titles and 2,500television episodes/prog.television episodes/prog. Some selected titles:Some selected titles:

– American Psycho (2002)American Psycho (2002)– Crash (2005)Crash (2005)– Fahrenheit 9/11 (2004)Fahrenheit 9/11 (2004)– Monster’s Ball (2001)Monster’s Ball (2001)– Dogma (1999)Dogma (1999)– Open Water (2004)Open Water (2004)

Page 7: Lions Gate Entertainment Corp.. What does this company do? Lions Gate is the top producer and distributor of independent films. Lions Gate is the top

Subsidiary- Lions Gate Subsidiary- Lions Gate Television Corp.Television Corp. Operates as Lions Gate Television and Operates as Lions Gate Television and

bills itself as a boutique production bills itself as a boutique production company.company.

Aims more for the smaller cable Aims more for the smaller cable audiences than its media conglomerate-audiences than its media conglomerate-backed competitors.backed competitors.

Lions Gate Television believes that its low Lions Gate Television believes that its low production costs and the programming production costs and the programming needs of new cable channels provide the needs of new cable channels provide the firm with a bright future.firm with a bright future.

2006- produced more than 90 hours of 2006- produced more than 90 hours of programming programming

Page 8: Lions Gate Entertainment Corp.. What does this company do? Lions Gate is the top producer and distributor of independent films. Lions Gate is the top

Lions Gate Entertainment Lions Gate Entertainment Corp: Location of Corp: Location of Operation/ProfitsOperation/Profits

Lions Gate Entertainment Corp. Lions Gate Entertainment Corp. has offices in Los Angeles, New has offices in Los Angeles, New York and Vancouver.York and Vancouver.

2006 Sales- $951.2 million2006 Sales- $951.2 million 1-Year Sales Growth- 12.9%1-Year Sales Growth- 12.9% 2006 Net Income- $6.1 million2006 Net Income- $6.1 million 1-Year Net Income Growth- 69.9%1-Year Net Income Growth- 69.9%

Source: Hoovers

Page 9: Lions Gate Entertainment Corp.. What does this company do? Lions Gate is the top producer and distributor of independent films. Lions Gate is the top

Stock PerformanceStock Performance

Source: http://moneycentral.msn.com/detail/stock_quote?ipage=qd&Symbol=LGF

Page 10: Lions Gate Entertainment Corp.. What does this company do? Lions Gate is the top producer and distributor of independent films. Lions Gate is the top

Possible Reasons for Possible Reasons for the Stock the Stock

Performance? Performance? The drastic increase in stock performance seen The drastic increase in stock performance seen

around Sept. 22 was likely due to the fact that around Sept. 22 was likely due to the fact that Lionsgate shares had reached a new 52-week Lionsgate shares had reached a new 52-week high that day. high that day.

The decrease in stock price shortly after could The decrease in stock price shortly after could possibly be in part due to the anticipated possibly be in part due to the anticipated releasing of Lionsgate’s new motion picture releasing of Lionsgate’s new motion picture Employee of the MonthEmployee of the Month. Recent reports state . Recent reports state that Jessica Simpson is one of the most that Jessica Simpson is one of the most “overexposed” celebrities out there today- “overexposed” celebrities out there today- which could have an impact on how many which could have an impact on how many people plan to see the film, thus negatively people plan to see the film, thus negatively affecting stock prices. affecting stock prices.

Page 11: Lions Gate Entertainment Corp.. What does this company do? Lions Gate is the top producer and distributor of independent films. Lions Gate is the top

Lions Gate Entertainment Lions Gate Entertainment is an excellent stock is an excellent stock

because…because… Stock Rating SummaryStock Rating Summary ““Lions Gate Entertainment Corp., Lions Gate Entertainment Corp.,

a small-cap value company in the a small-cap value company in the consumer services sector, is consumer services sector, is expected to outperform the expected to outperform the market over the next six months market over the next six months with very low risk.” (msn money)with very low risk.” (msn money)

(10 is the best possible rating.)(10 is the best possible rating.)

Source: http://moneycentral.msn.com/investor/srs/srsmain.asp?Symbol=LGF

:msn money

Page 12: Lions Gate Entertainment Corp.. What does this company do? Lions Gate is the top producer and distributor of independent films. Lions Gate is the top

……ContinuedContinued

– In the past year, earnings growth has accelerated In the past year, earnings growth has accelerated moderately compared to earnings growth in the past three moderately compared to earnings growth in the past three years. years.

– The StockScouter measure of relative price change and The StockScouter measure of relative price change and consistency is very high. consistency is very high.

– Previous day's closing price for LGF was slightly above its Previous day's closing price for LGF was slightly above its 50-day moving average.50-day moving average. Source: msn moneySource: msn money

– Lionsgate is an excellent stock Lionsgate is an excellent stock because it is a successfully run, because it is a successfully run, independent company that is independent company that is anticipated to outperform the anticipated to outperform the market over the next six months.market over the next six months.

Page 13: Lions Gate Entertainment Corp.. What does this company do? Lions Gate is the top producer and distributor of independent films. Lions Gate is the top

Why did we chose Why did we chose Lions Gate?Lions Gate?

Interest: This company was of interest to Interest: This company was of interest to all of us because it is in the movie all of us because it is in the movie industry, which we all were drawn to. industry, which we all were drawn to. We know of many Lions Gate motion We know of many Lions Gate motion pictures.pictures.

The Company: This is a successful, The Company: This is a successful, independent company that conducts independent company that conducts itself in a different, yet effective way. It itself in a different, yet effective way. It knows how to spend very little, yet earn knows how to spend very little, yet earn a lot.a lot.

Through our findings, it seemed to be a Through our findings, it seemed to be a very good company to invest stocks in.very good company to invest stocks in.