Lionsgate raises guidance amid Icahn fight
Ups guidance for adjusted EBITIDA from $75 mil to $115 milTORONTO -- As its proxy fight with activist shareholder Carl Icahn grinds on, Lionsgate on Thursday raised its guidance for adjusted EBITIDA from $75 million to $115 million.
"Our preliminary fiscal 2010 financial results show that our strong product pipelines, coupled with the continued recovery of the retail and advertising markets, are helping our home entertainment and television businesses to outperform our previous expectations," Lionsgate CEO Jon Feltheimer said in his latest window-dressing appeal to shareholders as they weigh Carl Icahn's unsolicited $7.00 per-share takeover bid.
Vancouver-based Lionsgate will report its fiscal 2010 results on June 1. But as it grapples with Icahn for control of the company, Lionsgate put stronger preliminary results down to its TV business, record library revenue and higher home entertainment revenue.
Lionsgate is also targeting a return to positive free cash flow in fiscal 2011.
"We remain on track to achieve the significant free cash flow generation for fiscal 2013 to 2015 of $100 million to $125 million annually," Feltheimer added.
Lionsgate on Wednesday postponed a vote by investors on a proposed poison pill defense to May 12 as it appeals a British Columbia Securities Commission ruling earlier this week to allow shareholders to freely consider Icahn's takeover bid without any anti-takeover hurdles (HR, April 28).