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Jul 17, 2000 12:00am PT

Lions Gate takes bite out of loss

Revenue for the year was $183 million, TV success

TORONTO — With an improved showing from its four operating divisions and a major infusion of cash from new investors, Lions Gate has managed to cut its year-end loss by almost two thirds and increase revenues by a whopping 129%.

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Company reported a loss of C$5.3 million ($3.6 million) for the year, down from $9.5 million in red ink shed the previous year. The new figure includes Lions Gate’s equity pickup of the non-cash operating loss in L.A.-based Mandalay Pictures. When its share of Mandalay’s loss is excluded, the company would be in the black to the tune of $400,000 on the year.

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A $33 million infusion brought to the table in January by an international consortium orchestrated by Jon Feltheimer (who was subsequently appointed vice chairman and CEO of the company) certainly helped things along.

“These results reflect management’s ability to focus exclusively on our operational growth plan with the strong support of our bankers and the significant shareholders that joined us this year,” Feltheimer said in a release.

Revenue for the year ended March 31 was $183 million, up an impressive 129% from fiscal 1999. All four divisions of the company — motion pictures, TV, animation and studio facilities — contributed to the increase, noted Lions Gate chairman and founder Frank Guistra.

TV makes most gains

Of the four divisions, TV enjoyed the greatest revenue jump, with a five-fold increase to $55.2 million thanks to production of telepics and one-hour series. Twenty-two episodes of “Hope Island” were delivered during the year, as were 15 of 22 episodes of “Higher Ground.”

Company reported that made-fors “King of the World” and “Final Run” were leading revenue earners on the year.

Revs generated by the motion picture division rose 89% to $99.1 million. The theatrical release of “Dogma” and homevid sales of “Red Violin” produced much of the increase. “Gods and Monsters” and “Affliction” also contributed to video revenues. “American Psycho,” which hit theaters in April, has thus far collected worldwide box office of $24 million.

Animation revenue of $24.1 million represented an increase of 62% for the year, with Lions Gate toon partner Cine-Groupe delivering 79 half-hours of programming for the year. Deliveries included 22 half-hours of “Kids From Room 402,” 19 half-hours of “Mega Babies” and 14 of “Bad Dog.” Studio facilities saw revs rise 13% to $4.7 million.

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