* Lions Gate Q3 most profitable ever

the third quarter of fiscal 2000 (ended Dec. 31, 1999) was the most profitable quarter ever for Vancouver’s Lions Gate Entertainment.

Consolidated earnings were $3 million ($0.10 per share) on revenue of $104.2 million. In the same quarter last year, losses totaled $600,000 ($0.03 per share) on revenues of only $40 million.

Lions Gate’s obligation to carry the operating loss of Mandalay Pictures again proved costly, decreasing the robust Q3 performance by $1.3 million ($0.04 per share).

In the company’s motion picture division, third-quarter revenues increased 158% from the same quarter in fiscal 1999 to $55.3 million. The theatrical release of Dogma, in particular, drove sales, and video releases such as The Red Violin have met or exceeded projections, says the company.

Television revenue for the quarter was $35 million, quadrupling the performance of last year. Delivered episodes of series Higher Ground (Fox, wic) and Hope Island (Pax, Paramount) and television movies spurred growth along with 15.5 hours of reality programming from Los Angeles division Termite Art Productions.

Animation revenue was also up quarter over quarter – 44% to $12.2 million – driven by Canadian-made series MegaBabies (Fox, Teletoon), Kids from Room 402 (Fox) and Bad Dog ii (Fox).

And revenue at Lions Gate Studios in North Vancouver was up 20% to $1.8 million, an increase attributed to the newly opened Studio 7. Occupancy was 99% over the period with tenants such as Arnold Schwarzenegger’s The Sixth Day.

In January, Lions Gate completed a us$33 million financing that brought SBS Broadcasting, Tele-Munchen and Paul Allen’s Vulcan Ventures into the stable of shareholders.

Shares on the Toronto Stock Exchange closed up $0.10 March 1 at $4 per share. Its year high is $6 per share and low is $2.20 per share.

* AAC results, stock up

Alliance Atlantis Communications (aac.a) stock jumped $5 on the tse Feb. 28, while aac.b shares were up to $21.30 following increases of $3.10 on Feb. 28 and $0.40 on Feb. 29. aac.b’s 52-week high and low is $25.70 and $11.35.

Directly helping its own cause, the Toronto-based company has announced significantly improved results – including reduced operating costs and higher margins – for the third quarter ending Dec. 31, 1999.

Revenue at aac is up 10.3% to $209.6 million, compared to $190 million last year, due primarily to good theatrical results, up 54%, and increases in subscribers and in advertising in the broadcast sector, up 24%.

Gross profit for the quarter increased 35% to $51.7 million, compared to $38.3 million in ’99, with gross margins at 24.7%.

With the merger price largely in the past, aac cut operating expenses by $5 million to $18.3 million from last year’s $23.3 million. ebitda for the third quarter is up a whopping 123% to $33.4 million while net earnings are $14.3 million, or $0.46 per share.

‘Our growth continues to be very profitable as a direct result of improved margins in our television,’ says chairman and ceo Michael MacMillan.

aac’s nine-month tally includes a 40% hike in revenues to $563.2 million while ebitda has increased 103% to $78.5 million. Net profits stand at $28.6 million, or $1.06 a share based on outstanding common shares.

In the first nine months of fiscal 2000, aac delivered 222 hours of tv and five motion pictures.