LOS ANGELES (Reuters) – Lions Gate Entertainment said on Wednesday it plans to expand its annual film slate, making 14 films in its fiscal year ending March 2011, up from 11 in fiscal 2010.
A company spokesman also said that starting in fiscal 2012, the independent studio's aim is to generate $150 million of ultimate profitability from each year's film slate.
Lions Gate said earlier on Wednesday it entered a credit agreement and related agreements. It said lenders agreed to commitments of $110 million for motion picture financing and acquisition purposes.
Miller Tabak analyst David Joyce in a note said investors should be relieved the volume of film production and distribution can re-accelerate post-fiscal 2010 and that the film credit facility could accelerate Lions Gate's return to $100 million free cash flow.
The new financing deal had been expected by analysts after the termination of another film financing deal with Pride Pictures last spring.
0 comments:
Post a Comment