All posts from in,

Lions Gate Entertainment's (LGF) CEO Jon Feltheimer on Q1 2016 Results - Earnings Call Transcript


Ladies and gentlemen, thank you for standing by. Welcome to the Lionsgate Fiscal 2016 First Quarter Earnings Call. [Operator Instructions] I’d like to remind you that the conference is being recorded. I would now turn the conference over to our host, Mr. Peter Wilkes. Please go ahead.

Peter Wilkes - SVP of Investor Relations and Executive Communications

Good morning. Thank you for joining us for our fiscal 2016 first quarter analyst call. We'll begin with opening remarks from our CEO, Jon Feltheimer. Following his remarks, we'll open the call for your questions. Joining us on the call today are our Vice Chairman, Michael Burns; Motion Picture Group Co-Chairs, Rob Friedman and Patrick Wachsberger, Chairman of the Lionsgate Television Group, Kevin Beggs; Steve Beeks, Co-COO; and President of the Motion Picture Group, Brian Goldsmith, Co-COO; Jimmy Barge, our CFO; and Rick Prell, our Chief Accounting Officer and Laura Kennedy, EVP of Corporate development.

The matters discussed on this call include forward-looking statements, including those regarding the performance of future fiscal years. Such statements are subject to a number of risks and uncertainties. Actual results in the future could differ materially and adversely from those described in the forward-looking statements as a result of various factors, including the risk factors set forth in Lionsgate's 10-K filed with the SEC on May 21. The company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements that may be made to reflect any future events or circumstances. Jon?

Jon Feltheimer - Chief Executive Officer

Good morning. Thank you for joining us on the call this morning. Our first quarter results reflected another strong performance from our television production business, increased contributions from international operations and the continued momentum of our EPIX platform. We also benefited from lower marketing costs and timing of product deliveries in the quarter and are on track for our full fiscal year expectations.

It was also another quarter marked by a robust free cash flow generation, contributing to the strongest balance sheet in our history. Although it’s only been two months since we last spoke to you, we have a lot to talk about.

On July 1, we launched the Hunger Games Exhibition to record first week ticket sales for any entertainment property at its New York venue and we announced that San Francisco will be the next stop on its global tour. We named accomplished digital executives to run our Comic-Con and Tribeca Short List SVOD services. And we announced our first original series for the Comic-Con platform. We continue to build our presence in the game space with a mobile game based on our action hero franchise the Expendables and a John Wick virtual-reality game to extend the popularity of what we believe is evolving into one of our newest action franchises.

We established new or expanded relationships across a broad spectrum of partners, including game developers Starbreeze and Fifth Journey and virtual-reality innovators Valve, HTC, Samsung, WEVR, Oculus and Grab. We’re already seeing exciting results from game companies Telltale and Next Games and mobile game streaming platform Mobcrush, three fast-growing companies in whom we invested last year. Telltale in which we have an almost 15% investment stake is about to launch Minecraft: Story Mode, a uniquely narrative driven episodically released video game. This expansion of their Minecraft global gaming franchise adds to a growing roster of valuable properties that already includes Walking Dead, Game of Thrones and Borderlands.