929351--6/1/2010--LIONS_GATE_ENTERTAINMENT_CORP

related topics

{capital, credit, financial}

{debt, indebtedness, cash}

{investment, property, distribution}

{stock, price, operating}

{stock, price, share}

{personnel, key, retain}

{system, service, information}

{property, intellectual, protect}

{regulation, change, law}

{product, market, service}

{control, financial, internal}

{tax, income, asset}

{financial, litigation, operation}

{operation, international, foreign}

{acquisition, growth, future}

{competitive, industry, competition}

We may not be able to generate sufficient cash to service all of our indebtedness, and be forced to take other actions to satisfy our obligations under our indebtedness, which may not be successful. Our level of indebtedness could adversely affect our ability to raise additional capital to fund our operations, limit our ability to react to changes in the economy or our industry and prevent us from meeting our obligations under our indebtedness. Substantial leverage could adversely affect our financial condition. An increase in the ownership of our common shares by certain shareholders could trigger a change in control under the agreements governing our long-term indebtedness Restrictive covenants may adversely affect our operations. Variable rate indebtedness subjects us to interest rate risk, which could cause our debt service obligations to increase significantly. Our revenues and results of operations may fluctuate significantly. Failure to manage future growth may adversely affect our business. A significant portion of our filmed and television content library revenues comes from a small number of titles. We are limited in our ability to exploit a portion of our filmed and television content library. Our success depends on external factors in the motion picture and television industry. We face substantial competition in all aspects of our business. We must successfully respond to rapid technological changes and alternative forms of delivery or storage to remain competitive. If we are unable to increase our advertising revenue for our TV Guide Network business, we may be unable to achieve improved results Non-renewals of our affiliation agreements, or renewals with less advantageous terms could cause our revenue to decline. If third-party suppliers of TV Guide Network fail to provide it with network infrastructure services on a timely basis, its costs could increase and its growth could be hindered. Digital recapture may adversely affect TV Guide Network business and operating results. Certain terms of TV Guide Network s distribution agreements could be interpreted in a manner that could adversely affect affiliate revenue payable under those agreements. Government regulations may adversely affect TV Guide Network business. Interruption or failure of communications and transmission systems and mechanisms could impair TV Guide Network s ability to effectively provide its services, which could affect its revenues. Continued consolidation of the cable and satellite broadcasting industry could adversely affect existing agreements; the impact of these changes is not clear. Limitations on control of joint ventures may adversely impact our operations. We face risks from doing business internationally. Protecting and defending against intellectual property claims may have a material adverse effect on our business. Others may assert intellectual property infringement claims against us. Our business involves risks of liability claims for media content, which could adversely affect our business, results of operations and financial condition. Piracy of motion pictures, including digital and internet piracy, may reduce the gross receipts from the exploitation of our films. An investment by non-Canadians in our business is potentially reviewable under the ICA, which could adversely affect our results. We believe that we may be a controlled foreign corporation or CFC for U.S. federal income tax purposes. U.S. persons owning or deemed to own 10 percent or more of the shares of a CFC (by vote) ( U.S. Shareholders ) are subject to certain U.S. income tax risks associated with the CFC rules under the U.S. Internal Revenue Code of 1986, as amended. Our success depends on certain key employees. To be successful, we need to attract and retain qualified personnel. If our stock price fluctuates, you could lose a significant part of your investment. While we believe we currently have adequate internal control over financial reporting, we are required to assess our internal control over financial reporting on an annual basis and any future adverse results from such assessment could result in a loss of investor confidence in our financial reports and have an adverse effect on our securities. Changes in, or interpretations of, tax rules and regulations, and changes in geographic operating results, may adversely affect our effective tax rates. We will incur costs and demands upon management as a result of complying with the laws and regulations affecting public companies, which could affect our operating results. Certain shareholders own a majority of our outstanding common shares. Sales of a substantial number of shares of our common shares, or the perception that such sales might occur, could have an adverse effect on the price of our common shares, and therefore our ability to raise additional capital to fund our operations. An unsolicited offer for our shares could create volatility in our stock price.

Full 10-K form ▸

929351--6/1/2010--LIONS_GATE_ENTERTAINMENT_CORP_/CN/