Good day, and welcome to the Lionsgate first quarter 2022 earnings conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two. Please note, this event is being recorded. I would now like to turn the conference over to Nilay Shah. Please go ahead. Good afternoon. Thank you for joining us for the Lionsgate fiscal 2022 first quarter conference call. We'll begin with opening remarks from our CEO, Jon Feltheimer, followed by remarks from our CFO, Jimmy Barge. After their remarks, we'll open the call for questions. Also joining us on the call today are Vice Chairman Michael Burns, COO Brian Goldsmith, Chairman of the TV group Kevin Beggs, and Chairman of the Motion Picture group Joe Drake. From STARZ, we have President and CEO Jeffrey Hirsch, CFO Scott Macdonald, President of Domestic Networks Alison Hoffman, and President of International Networks Superna Kalle. 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 could differ materially and adversely from those described in the forward-looking statements as a result of various factors. This includes the risk factors set forth in Lionsgate's most recent annual report on Form 10-K, as amended in our most recent quarterly report on Form 10-Q filed with the SEC. 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. I'll now turn the call over to Jon. Thank you, Nilay, and good afternoon, everyone. Thank you for joining us. I'd like to begin with a few highlights from a strong financial quarter and then drill down in each of our businesses. We acquired the Spyglass Media Group library while investing in Spyglass's go-forward business and entering into a first-look television deal between Spyglass and Lionsgate Television. In the past six months, we've actually acquired three libraries with a total of nearly 400 titles and more than $2.5 billion of underlying domestic box office as we continue to grow our stockpile of valuable premium content. We announced the theatrical output agreement with Universal, giving STARZ an exclusive 18-month post Pay-1 window for Universal's live-action theatrical titles. Coupled with the Lionsgate Pay-1 theatrical output agreement announced with STARZ last quarter, the Universal deal completes our strategy for establishing a strong and reliable pipeline of first-run features for STARZ. Our television group is taking advantage of unprecedented demand by producing a record 34 scripted series this year, 15 of them for STARZ, while maintaining our leadership as a top independent third-party supplier of premium scripted content. We are coming off one of our strongest years with 13 new series orders, all seven of our pilots picked up to series, and all of last year's freshman series renewed for their second season. In our motion picture business, we continue to assemble a strong and diversified film slate for theaters, streamers, multi-platform distribution, and STARZ. Despite the pandemic, we have set up a total of 26 films in the past 12 months for delivery in fiscal 2023 and fiscal 2024. As we continue to execute our business plan, we are also executing our strong commitment to greater diversity, equity, and inclusiveness in our workforce, talent relationships, and content. Turning to our individual businesses. It was a strong financial quarter for STARZ, but like the rest of the industry, we were impacted by a reduction in at-home viewership and importantly, a light content quarter due to COVID-driven production delays. We continued to grow our base of international subscribers in the quarter, but domestic subscribers declined, a temporary drop that we have already reversed since the end of the quarter. In fact, two weeks after the quarter ended, "Power Book III: Raising Kanan" debuted to the second-biggest STARZ original series premiere ever, driving over 800,000 global subscriber gross adds in the first week alone and an 80% spike in viewership on the app. As a result, we are again growing our domestic over-the-top subscriber base, which is already back to the March quarter's record levels. With our biggest and strongest STARZ original series slate ever this year, with 12 scripted series compared to seven last year and a building cadence of five tentpole series over the next three quarters, we continue to expect STARZ global subscriber growth this year to outpace subscriber growth last year. Our confidence is buttressed by a very strong slate that, following "Raising Kanan," includes wrestling drama "Heels," starring Stephen Amell and Alexander Ludwig, getting great early reviews. The second season of the hit series "Power Book II: Ghost," the sixth season of fan-favorite Outlander, Curtis "50 Cent" Jackson's crime family drama "BMF," the horror comedy "Shining Vale" starring Courteney Cox, and the debut of "Power Book IV: Force." These will be followed next season by high-end properties such as the Watergate drama "Gaslit" starring Julia Roberts and Sean Penn, the "John Wick" prequel "The Continental," and "The Serpent Queen," based on the dark legend of Catherine de' Medici. Internationally, subscriber growth continued, but was slowed by a light content quarter as well as the global reopening. Here again, we've seen a significant subscriber uptick with the international launch of "Raising Kanan," which along with "Ghosts," "Run the World," and "The Girlfriend Experience," proves that great programming for our core audiences in the United States attracts a global audience as well. Combined with Lionsgate feature films and library titles that are driving our theatrical content offering and best-in-class third-party acquisitions of the great "Gangs of London" and the international premiere of "Dr. Death" later this quarter, our best of global SVOD programming continues to set us apart as a home for original, adult, fiercely premium content, complementary to every platform and a compelling value proposition for every bundle. Turning to television, we continue to execute our strategy supplying STARZ with a bumper crop of premium scripted series while delivering high-end programming to an expanding array of new buyers in the quarter. "Home Economics" debuted on ABC in April with the strongest Live+3 retention of any new comedy this season. The new comedy "Ghosts" debuts on CBS in the fall, and "Welcome to Flatch" premieres on Fox mid-season. The growth of the nearly $10 billion AVOD market has created opportunities for us to license existing television series with AVOD revenues up 104% from last year, to sell original new television series, an area where we've always been a first mover, and to extend the revenue food chain for shows entering syndication. In fact, AVOD accounted for nearly 2/3 of our recent syndication sales to the hit comedy Weeds. With a diverse portfolio of television businesses that includes our collaboration with 3 Arts, one of the world's foremost talent management and production companies, a partnership that has already generated three series orders, including the Apple hit "Mythic Quest," BBC Studios with two series picked up by the networks, Pilgrim Media Group with more than 20 unscripted series for leading platform partners, Debmar-Mercury, home to the evergreen properties "Wendy Williams" and "Family Feud," with "Nick Cannon" launching in the fall, and a roster of world-class production partnerships. The growth of our television slate is driven by our A-list talent relationships and future-proofed against headwinds in any one part of the business. Despite the challenge of making films during a pandemic, we continued to fill our pipeline during the quarter, completing production on "Borderlands," starring Cate Blanchett, Kevin Hart, Jamie Lee Curtis, and Jack Black. The Kelly Fremon Craig-directed adaptation of the Judy Blume classic, "Are You There God? It's Me, Margaret.," produced by Academy Award winner James L. Brooks. "White Bird: A Wonder Story," the follow-up to our breakout hit "Wonder." The faith-based "American Underdog: The Kurt Warner Story," "Shotgun Wedding" starring Jennifer Lopez, and Roland Emmerich's sci-fi epic "Moonfall." We couldn't be more excited about returning to the set with the incomparable Keanu Reeves as we began shooting "John Wick: Chapter 4" in June. We also have three big brands that continue to move towards production. "The Hunger Games" prequel, "The Ballad of Songbirds & Snakes," the nostalgic reimagining of the classic "Dirty Dancing," and "Monopoly," based on the iconic Hasbro game, rounding out a strong and diverse slate that can navigate the twists and turns of today's motion picture landscape by appealing to every platform. Last month, we announced an agreement to anchor the entertainment vertical for the NFT platform Autograph, bringing "The Hunger Games," "Twilight," "John Wick," "Mad Men," and other top properties into the world of digital collectibles. It's the latest in a series of franchise extensions that provides us with a high-margin annuity from branded theme parks, exhibitions, and escape rooms, live- to- tape global concert tours, and adaptations of iconic Lionsgate film and television properties headed for the Broadway stage. In closing, if the media consolidation of the past year has taught us anything, it's that the global appetite for content is greater than ever. To paraphrase Keanu Reeves in "John Wick: Chapter 3," we have that content, lots of content, in our world-class library, our deep film and television pipelines, and throughout our global streaming platform at STARZ. We live right in the sweet spot of global consumer demand. Bold, original, high-end, premium scripted television and film. With our talented and entrepreneurial employees working across every part of our company every single day to identify ways to create, own, and monetize this content, we're well-positioned to create outsized value for our partners, consumers, and shareholders. Thank you. Now, I'll turn things over to Jimmy. Thanks, Jon. Good afternoon, everyone. I'll briefly discuss our fiscal first quarter financial results and update you on our balance sheet. Fiscal first quarter Adjusted EBITDA was $120 million, with total revenue coming in at $901 million, driven by new TV series deliveries and continued demand for library content. Reported fully diluted earnings per share was a loss of $0.20 a share, and fully diluted adjusted earnings per share came in at $0.18 a share. Adjusted free cash flow for the quarter was a $192 million use of cash. Now, let me briefly discuss the fiscal first quarter performance of the underlying segments compared to the prior year quarter. You can follow along in our trending schedules that have been posted to our website and show greater detail around our global Media Networks subscribers. Media Networks' quarterly revenue was up 4% to $382 million, and segment profit of $88 million was up 23%, driven by lighter content spend on a lower quarterly cadence of programming. We ended the quarter with 28.9 million total global subscribers. Global linear subscribers declined to 12.2 million, while total global Media Networks OTT subscribers remained flat sequentially at 16.7 million, representing year-over-year growth of 58%. As Jon noted, given the success we saw in the early launch numbers of "Raising Kanan", we are again growing our domestic OTT subscriber base, which is already back to the record levels reported last quarter. Furthermore, we continue to believe that we will add more subscribers in fiscal 2022 relative to fiscal 2021 in both our domestic and international markets. Turning to Motion Pictures, revenue was up 4% to $291 million, while segment profit of $44 million reflects higher P&A spend from the theatrical releases of "Spiral" and "Hitman's Wife's Bodyguard" versus the prior year quarter, which had no theatrical releases due to theater closures. This was partially offset by continuing strength in library revenue. Finally, television revenue nearly doubled to $386 million, driven by new series deliveries including "Raising Kanan," "Blindspotting," and "Heels," while segment profit came in at $3 million, reflecting the delivery of freshman series and a tough comp against the prior year quarter, which included licensing of "Mad Men." Our total library revenue across our Motion Picture and TV businesses was $740 million on a trailing 12-month basis, which compares to $711 million reported this time last year and demonstrates the resiliency of our library in all economic cycles. On the balance sheet, we ended the quarter with leverage of 4.7 x, or 3.6 x excluding our investment in STARZPLAY International, which as expected, reflects the timing of P&A spend on trailing 12 months adjusted to EBITDA. We continued to retain significant liquidity with $262 million of cash on hand and a $1.5 billion of undrawn revolver. We remain committed to strengthening our balance sheet and paying down debt. Now, I'd like to turn the call over to Nilay for Q&A. Thanks, Jimmy. Operator, can you open up the call for Q&A? Certainly. Thank you. We will now begin the question- and- answer session. To ask a question, you may press star then one on your telephone keypad. If you're using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star then two. At this time, we will pause momentarily to assemble our roster. The first question will be from Kutgun Maral with RBC Capital Markets. Please go ahead. Great. Thank you for taking the question. I wanted to ask about television production. It's great to see the very strong results. I realize some of that includes sales to STARZ, but still, I think it may have actually been a record for quarterly domestic TV revenue. You called out 13 new series orders, seven pilots being picked up, and all the freshman series being renewed. It just seems like a very healthy pipeline that should not only help fiscal 2022, but perhaps 2023 and beyond. Just two questions. First, are we approaching an inflection point for that business where there's maybe more visibility into a step function increase in revenue and maybe eventually profits? Or is this more of a function of a post-COVID catch-up that will eventually normalize? Second, the traction you called out with AVOD is very interesting. Any more color you could provide on the opportunity you see ahead there would be very helpful. Thank you. I'll let Kevin answer that question. T his is Kevin speaking. Just in reverse order. We're seeing in this AVOD space, it's an exciting time that's reminiscent of really the emergence of originals in the basic cable space when we were doing "Mad Men" and shows like that. Those revenues and those ad dollars are moving, and they're moving into AVOD and Roku is getting into originals. IMDb TV is well into originals. Tubi, we're in conversations with about various shows. I see this as a trend. I think there will be more, and within each of these verticals, they will dig into more originals as a point of differentiation from all the others. They're not as focused on exclusivity as SVOD players, so they're often sharing similar windows on other products. What makes them different will be the originals, which has always been the secret sauce in the cable space before, which they're inheriting. On the inflection point, I can just say that this surplus of buyers moving into the space, needing great high-quality premium content is really beneficial to us as a studio supplier. There's no greater priority than our partnership with STARZ. We're thrilled that 15 of that roster are together with them in either sole production or co-production. Things that aren't exactly right for them can travel elsewhere. We have five shows with HBO Max. We have a big project with Showtime and "The First Lady," and are again jumping into business with Peacock and have had a long history with Hulu, two on Apple. They're all digging in to do more. That bodes well for us as an independent that can work everywhere and have a really finely- honed creative machine churning out great development with terrific producer and pod deals and frankly, great taste. Jimmy, maybe take a shot at sort of the trajectory or the CAGR for the TV business over the next couple of years. Without giving specific numbers, I think you're right in terms of an inflection point, in terms of coming out of this with the development pipeline flowing through and getting deeper and deeper beyond those freshman series that you just noted, and going to those back seasons where the margins are better, and you're going to really see some nice continuation is what we foresee relative to segment profit going into from 2022 to 2023, 2024. That's perfect. Thank you. Thanks, Kutgun. Operator, could we get the next question, please? Certainly. That question comes from Alan Gould with Loop Capital. Please go ahead. Thanks. Hi there. Excuse me. Do we need to send somebody over, Alan? I've got two questions here. One for Jimmy, and if Joe's on the line, one for Joe. Jimmy, can you just refresh our memory? How much are you planning on spending on content production this year? Can you break that down a little bit between the divisions? The question for Joe is the box office seems to be having a real tough time. I think Barry Diller was just quoted saying that there's 90% of the screens are going to close down. What are your thoughts on box office and alternative ways of releasing your films? Alan, I'll take the first one there. In terms of content spend, we had $1.6 billion of content spend last year. What we've said on the previous calls is we're expecting 50% increases from there. Call it in the mid-$2 billion, around $2.5 billion. I would just say that is on a net basis, meaning after we've eliminated the intercompany payments coming from STARZ to TV. If you really gross it up to look at it more comparable to maybe other companies, you're really talking about closer or tipping over $3 billion. For us, it's a pretty cash-efficient spend as we have that intercompany element, so we can put more on the screen with less cash. You saw in the quarter, we were more heavily weighted in Q1 because we had, as you'll see in the trending schedules, a little over $575 million of content spend in the first quarter. That was up about $400 million versus the prior year quarter. Ramping into that spend early. It'll continue the cadence into the second quarter. Again, we'll top out at somewhere around $2.5 billion-$3 billion on a gross basis. Joe? Hi, Alan. Thank you for the question. Well, first, I would say I don't totally agree with Mr. Diller. We actually have found this period of late, this period of change, really more as a place to look for opportunity than to see challenge. There's certainly some challenges with the marketplace, when you look at the theatrical market, even though it's not all the way back, certainly brands are working. Big brands are working. There's an audience that want to come back. I think we've got a ways before we can talk about what normalized box office is with the variants coming into the market and such. I was really pleased to see the way certain brands played in the market. Equally, we've certainly spent a lot of energy and done a lot of work in the last year working with different distribution strategies, bespoke distribution strategies for each film. Great examples of this are "The Hitman's Bodyguard" and "Spiral," both of which we were able to reach our green light ultimates, just with slightly different patterns, different spends, different approaches to the market, when we spent media, where we put our media. I believe that the market's going to come back. What full percentage of theaters will be there when it's over or when it's fully back? I think there'll be a strong, robust platform for us to monetize our movies in the theatrical market. At the same time, we have certainly explored and found some other really interesting ways to monetize the value of our content. I think that I know you hear this theme over and over and over, which is that the value of content is just getting greater. I think we're seeing it everywhere in the marketplace. It's really just a function of being nimble enough, and Lionsgate's in a very unique position in that regard for us to take advantage of all the opportunities out there, including a robust theatrical marketplace as it comes back. Joe, just to follow up. S peaking of brands, when is the next "John Wick" film again, and when is the prequel to "Hunger Games?" W e're deep in production. Super, super, super excited. It is definitely going to be bigger and better. In terms of when we're going to date the movie, we're having those conversations now. We're not quite ready to put our flag in the ground. You'll be hearing something soon. As soon as we're ready, we will let you know. That is in production as we speak, and Chad and Keanu are doing incredible work. On "The Hunger Games," our plan is to be in production in the first half of next year. I'd have to actually go back and look and see whether it's late 2023 or early 2024 fiscal when we're currently targeting to put that movie in the market. Both are moving along really well. I would say again, too, "Borderlands" is looking great. Super excited to see that. "Dirty Dancing" I think is going to be special. A lot of brands coming back into the marketplace for us. Okay. Thanks a lot, Joe. Thanks, Alan. Next question? Yeah, thanks. The next question will come from Steven Cahall with Wells Fargo. Please go ahead. Thanks. Maybe a couple for Jeff. On STARZ, could you just unpack that subscriber forecast a little bit about adding more subscribers this year than last? I know you have a big content pipeline coming in the rest of the fiscal year. It just seems like a lot of what we've seen in streaming is that the pandemic might have provided some pull forward. Just curious what gives you the confidence that now that we're coming out of the pandemic, you'll be able to have as strong a year for net adds, as you did last year. Related on STARZ International, how should we just think about segment profit for that segment this year? I think maybe you've talked about it on a profitability basis looking similar to last year. Just didn't know if there was any update to that outlook. Thanks. Hey, Steven. How are you? Great. As Jon and Jimmy talked about remarks, it's a very light content quarter for us. We premiered two half-hour comedies that were great shows that I think that coupled with the world opening back up, it was not our strongest quarter as we had guided on the last call. As they said, also in their prepared remarks, we're very confident that this year will be stronger than last year. We've gone from seven originals to 12 originals. We have five tentpoles in the next three quarters that drive large growth of subscriber acquisition. We also saw our churn at a historic low in this quarter. Those two things coupled together give us great confidence that we will accelerate growth this year. "Raising Kanan" obviously premiered, as Jon said in his prepared remarks, to huge numbers, huge viewership. Simply put, if "Raising Kanan" was six weeks earlier, we would be having a different sequential conversation than we're having right now. On the segment profit portion of things, Steven, you're right, p lus or minus, in line with the prior year investment. That's really based off the timing of content, et cetera. We like what we're doing there. We like the market share we're capturing. We're leaning into it. Great. Thank you. Operator, can we get the next question, please? Once again, if you have a question, please press star then one. The next question is from Thomas Yeh with Morgan Stanley. Please go ahead. Thanks for taking my questions. Two quick ones for Jeff. On STARZ ARPU, the domestic ARPU appeared to be relatively stable sequentially with last quarter, which is a little lower than the historical trend. I think you had cited some heavier promotional activity happening then. Did that continue into the quarter? Then a related kind of question, if you can give us an update on the unit economics across linear and U.S. OTT, and whether or not the mix of direct versus retail partners impacts ARPU going forward, what the outlook is there, that'd be helpful. Thank you. On the ARPU basis for the quarter sequentially, we've said that ARPU will fluctuate around $5.75-$6.10 depending on when subs come in the quarter and some of the promotional parts of the business. Again, churn was really low in the quarter, a historic low, and so that kind of stabilized it a little bit. But we didn't have as much coming in the front door, so it was actually pretty flat sequentially. When you look at ARPU linear versus domestic, remind everybody that over the last couple of years, we've moved most of our linear deals to be à la carte deals. Over 82% of our linear deals are à la carte. Over time, that à la carte ARPU has actually started to collide with the OTT ARPU because in essence, it's a rev share deal. You actually see those numbers coming together pretty quickly. Long term, we think that will, again, like I said, somewhere between $580 and $610 for the domestic business. Great. Thank you. Thanks, Thomas. Operator, could we get the next question, please? Actually, this concludes the question- and- answer session. I'd like to turn the conference back over to Nilay Shah for any closing remarks. Thanks, everyone. Please refer to the press releases and events tab under the Investor Relations section of the company's website for a discussion of certain non-GAAP forward-looking measures discussed on this call. Thank you very much. Thank you. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.