IMAX Corporation Reports First Quarter 2024 Earnings Results
- Revenue of $79 million and net income of $3.3 million, up 33% year-over-year.
- IMAX system installations increased by 67% to 15 in Q1.
- Global box office reached $261 million, with successful films like 'Dune: Part Two' and 'Godzilla x Kong: New Empire'.
- IMAX captured 5.9% of the domestic box office in Q1, its highest quarterly market share ever in North America.
- Technology Products and Services segment saw a decrease in revenue and gross margin.
- Operating cash flow for Q1 2024 was negative compared to positive in Q1 2023.
- Lower levels of box office in Q4 2023 and early 2024 impacted operating cash flows.
Insights
IMAX Corporation's Q1 earnings indicate a complex financial landscape. Despite a decline in total revenue and gross margin, which fell by
The significant
Share repurchases can be a sign of management's confidence in the company's intrinsic value, as demonstrated by the
IMAX's growth in installations and the robust
However, changes in the broader economic landscape, such as consumer spending habits and the potential impact of industry-wide events like the Hollywood Actors and Writers strikes on content production and release schedules, must be factored into the company's ability to sustain momentum. The potential future network growth of approximately
For retail investors, IMAX's diversification strategy in content could mitigate risks associated with any single type of offering and present a unique investment angle in the entertainment sector. Key factors such as the performance of their 'Filmed for IMAX' titles and the reception of their alternative content streams will be critical to observe in the coming quarters.
- Global entertainment platform delivers Revenue of
$79 million $3.3 million 33% YoY and Total Adjusted EBITDA Margin(1) of40.5% up more than 300 basis points YoY. - IMAX system installations climb +
67% YoY to 15 in Q1; sales activity gaining momentum with 17 signings for new and upgraded IMAX systems worldwide year-to-date. - IMAX Global Box Office (GBO) of
$261 million 21% of quarterly GBO. - IMAX delivers
5.9% of Domestic Box Office in Q1 — Company's highest quarterly market share ever inNorth America — and strong3.4% of Global Box Office.
"IMAX powers awe-inspiring experiences for audiences around the world; our technology, deep relationships with creators, and global scale combine to make us a wholly differentiated platform, and as a result, one of the most consistent winners in global media and entertainment," said Rich Gelfond, CEO of IMAX.
"Our industry leading momentum is fueled in part by our strategic expansion of the IMAX value proposition; increasingly, our technology is driving content creation as much as it is content delivery. "Oppenheimer", "Dune — Part Two", and "Godzilla x Kong" demonstrate that more and more of today's commercially and critically successful blockbusters are shot with IMAX cameras for the IMAX platform — which drives our global box office and makes our systems even more of a 'must have' for global exhibitors."
"We currently have more films in production shooting with IMAX cameras than at any time in our history, and an unprecedented run of Filmed for IMAX® titles scheduled for 2025 — including every one of our releases slated for the critical summer blockbuster season. We are also opening the aperture of The IMAX Experience® by working with a wider variety of creators than ever across local language, documentaries, and music, gaming, sports, and live events."
"IMAX is very well-positioned to accelerate growth and margin expansion with a promising slate for the duration of the year, 2025, and 2026, and strong sales activity across key global markets we're targeting for expansion."
_______________
(1) | Non-GAAP Financial Measure. See the discussion at the end of this earnings release for a description of the non-GAAP financial measures used herein, as well as reconciliations to the most comparable GAAP amounts. |
First Quarter Financial Highlights
Three Months Ended March 31, | |||||||||||
In millions of | 2024 | 2023 | YoY % | ||||||||
Total Revenue | $ | 79.1 | $ | 86.9 | (9) | % | |||||
Gross Margin | $ | 46.9 | $ | 50.1 | (6) | % | |||||
Gross Margin (%) | 59.3 | % | 57.7 | % | |||||||
Total Adjusted EBITDA(1)(2) | $ | 32.1 | $ | 32.3 | (1) | % | |||||
Total Adjusted EBITDA Margin (%)(1)(2) | 40.5 | % | 37.2 | % | |||||||
Net Income(3) | $ | 3.3 | $ | 2.5 | 33 | % | |||||
Diluted Net Income per share(3) | $ | 0.06 | $ | 0.04 | 50 | % | |||||
Adjusted Net Income(1)(3) | $ | 7.9 | $ | 9.0 | (12) | % | |||||
Adjusted Net Income Per Share(1)(3) | $ | 0.15 | $ | 0.16 | (6) | % | |||||
Weighted average shares outstanding (in millions): | |||||||||||
Basic | 52.5 | 54.1 | (3) | % | |||||||
Diluted | 53.4 | 55.0 | (3) | % | |||||||
_______________
(1) | Non-GAAP Financial Measure. See the discussion at the end of this earnings release for a description of the non-GAAP financial measures used herein, as well as reconciliations to the most comparable GAAP amounts. |
(2) | Total Adjusted EBITDA is before adjustments for non-controlling interests. Total Adjusted EBITDA per Credit Facility attributable to common shareholders, excluding non-controlling interests, was |
(3) | Attributable to common shareholders. |
First Quarter Segment Results(1)
Content Solutions | Technology Products and Services | ||||||||||||||||||||
In millions of | Revenue | Gross | Gross | Revenue | Gross | Gross | |||||||||||||||
1Q24 | $ | 34.0 | $ | 22.1 | 65 % | $ | 43.2 | $ | 23.6 | 55 % | |||||||||||
1Q23 | 32.1 | 18.0 | 56 % | 51.7 | 29.9 | 58 % | |||||||||||||||
% change | 6 % | 23 % | (16 %) | (21 %) | |||||||||||||||||
_______________
Please refer to the Company's Form 10-Q for the period ended March 31, 2024 for additional segment information.
Content Solutions Segment
- Content Solutions revenue of
$34 million increased6% year-over-year driven by incremental revenue from alternative content including the Queen Rock Montreal concert film coupled with the strong March box office from "Dune: Part 2" and "Godzilla x Kong: New Empire". Gross box office from IMAX locations of$261 $273 million - Gross margin for Content Solutions of
$22 million increased23% year-over-year. Gross margin percent of65% increased 900 basis points year-over-year driven by lower marketing expenses and the performance of alternative content.
Technology Products and Services Segment
- Technology Products and Services revenues and gross margin decreased
16% to$43 million and21% to$24 million , respectively, reflecting lower system renewals and mix of fewer sale/hybrid installations. - During the first quarter the Company installed 15 systems compared to 9 systems in the first quarter of 2023. Of those, 5 systems were under sales arrangements compared to 8 systems in the prior year.
- The Commercial network grew
4% year-over-year with the number of IMAX locations increasing to 1,697. - IMAX system backlog stands at 442 systems at the end of March including 377 new systems representing potential future network growth of approximately
21% .
Operating Cash Flow and Liquidity
Net cash used in operating activities for the first quarter of 2024 was
As of March 31, 2024, the Company's available liquidity was
In 2021, the Company issued
Share Count and Capital Return
The weighted average basic and diluted shares outstanding used in the calculation of adjusted EPS for the first quarter of 2024 were 52.5 million and 53.4 million, respectively, compared to 54.1 million and 55.0 million, respectively for the first quarter of 2023, a decrease year-over-year of
During the first quarter of 2024, the Company repurchased 1.2 million common shares at an average price of
On June 14, 2023, the Company announced a 3-year extension to its share-repurchase program through June 30, 2026. The current share-repurchase program authorizes the Company to repurchase up to
Supplemental Materials
For more information about the Company's results, please refer to the IMAX Investor Relations website located at investors.imax.com.
Investor Relations Website and Social Media
On a monthly basis, the Company posts quarter-to-date box office results on the IMAX Investor Relations website located at investors.imax.com. The Company expects to provide such updates within five business days of month-end, although the Company may change this timing without notice.
The Company may post additional information on the Company's corporate and Investor Relations website which may be material to investors. Accordingly, investors, media and others interested in the Company should monitor the Company's website in addition to the Company's press releases, SEC filings and public conference calls and webcasts, for additional information about the Company.
Conference Call
The Company will host a conference call today at 8:30 AM ET to discuss its first quarter 2024 financial results. This call is being webcast and can be accessed at investors.imax.com. To access the call via telephone, interested parties please pre-register here: https://register.vevent.com/register/BI46ca10609420421dbc164d6f147fe1ff and you will be provided with a dial-in number and unique pin. To avoid delays, we encourage participants to dial into the conference call ten minutes ahead of the scheduled start time. A replay of the call will be available via webcast at investors.imax.com.
About IMAX Corporation
IMAX, an innovator in entertainment technology, combines proprietary software, architecture, and equipment to create experiences that take you beyond the edge of your seat to a world you've never imagined. Top filmmakers and studios are utilizing IMAX systems to connect with audiences in extraordinary ways, making IMAX's network among the most important and successful theatrical distribution platforms for major event films around the globe.
IMAX is headquartered in
IMAX®, IMAX® 3D, Experience It In IMAX®, The IMAX Experience®, DMR®, Filmed For IMAX®, IMAX LIVETM, IMAX Enhanced®, IMAX StreamSmartTM, and SSIMWAVE® are trademarks and trade names of IMAX Corporation or its subsidiaries that are registered or otherwise protected under laws of various jurisdictions. For more information, visit www.imax.com. You can also connect with IMAX on Instagram (www.instagram.com/company/imax), Facebook (www.facebook.com/imax), LinkedIn (www.linkedin.com/company/imax), X (www.twitter.com/imax), and YouTube (www.youtube.com/imaxmovies).
For additional information please contact:
Investors: IMAX Corporation, Jennifer Horsley 212-821-0154 | Media: IMAX Corporation, Mark Jafar 212-821-0102 |
Forward-Looking Statements
This earnings release contains forward looking statements that are based on IMAX management's assumptions and existing information and involve certain risks and uncertainties which could cause actual results to differ materially from future results expressed or implied by such forward looking statements. These forward-looking statements include, but are not limited to, references to business and technology strategies and measures to implement strategies, competitive strengths, goals, expansion and growth of business, operations and technology, future capital expenditures (including the amount and nature thereof), industry prospects and consumer behavior, plans and references to the future success of IMAX Corporation together with its consolidated subsidiaries (the "Company") and expectations regarding the Company's future operating, financial and technological results. These forward-looking statements are based on certain assumptions and analyses made by the Company in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate in the circumstances. However, whether actual results and developments will conform with the expectations and predictions of the Company is subject to a number of risks and uncertainties, including, but not limited to, risks associated with investments and operations in foreign jurisdictions and any future international expansion, including those related to economic, political and regulatory policies of local governments and laws and policies of
Primary Reporting Groups
The Company's Chief Executive Officer ("CEO") is its Chief Operating Decision Maker ("CODM"), as such term is defined under
The Company has the following reportable segments:
(i) | Content Solutions, which principally includes the digital remastering of films and other content into IMAX formats for distribution to the IMAX network. To a lesser extent, the Content Solutions segment also earns revenue from the distribution of large-format documentary films and exclusive experiences ranging from live performances to interactive events with leading artists and creators, as well as film post-production services. | ||||||||
(ii) | Technology Products and Services, which includes results from the sale or lease of IMAX Systems, as well as from the maintenance of IMAX Systems. To a lesser extent, the Technology Product and Services segment also earns revenue from certain ancillary theater business activities, including after-market sales of IMAX System parts and 3D glasses. |
Transactions between segments are valued at exchange value. Inter-segment profits are eliminated upon consolidation, as well as for the disclosures below.
IMAX Network and Backlog | ||||||||
Three Months Ended | ||||||||
System Signings(1): | 2024 | 2023 | ||||||
Sales Arrangements | 5 | 15 | ||||||
Hybrid JRSA | — | — | ||||||
Traditional JRSA | 3 | 13 | ||||||
Total IMAX System Signings | 8 | 28 | ||||||
Three Months Ended | ||||||||
System Installations(2): | 2024 | 2023 | ||||||
Sales Arrangements | 5 | 8 | ||||||
Hybrid JRSA | 1 | — | ||||||
Traditional JRSA | 9 | 1 | ||||||
Total IMAX System Installations | 15 | 9 | ||||||
March 31, | ||||||||
System Backlog: | 2024 | 2023 | ||||||
Sales Arrangements | 164 | 170 | ||||||
Hybrid JRSA | 101 | 118 | ||||||
Traditional JRSA | 177 | 180 | ||||||
Total IMAX System Backlog | 442 | 468 | ||||||
March 31, | ||||||||
System Network: | 2024 | 2023 | ||||||
Commercial Multiplex Theaters | ||||||||
Sales Arrangements | 768 | 704 | ||||||
Hybrid JRSA | 138 | 149 | ||||||
Traditional JRSA | 791 | 778 | ||||||
Total Commercial Multiplex Theaters | 1,697 | 1,631 | ||||||
Commercial Destination Theaters | 12 | 12 | ||||||
Institutional Theaters | 63 | 68 | ||||||
Total System Network | 1,772 | 1,711 | ||||||
______________
(1) | System signings include new signings of 8 in Q1 2024 and 27 in Q1 2023. |
(2) | System installations include new systems installations of 12 in Q1 2024 and 7 in Q1 2023. |
IMAX CORPORATION | |||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||
(In thousands of | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2024 | 2023 | ||||||||
Revenues | |||||||||
Technology sales | $ | 7,904 | $ | 17,822 | |||||
Image enhancement and maintenance services | 50,348 | 47,127 | |||||||
Technology rentals | 18,601 | 20,058 | |||||||
Finance income | 2,270 | 1,939 | |||||||
79,123 | 86,946 | ||||||||
Costs and expenses applicable to revenues | |||||||||
Technology sales | 4,767 | 7,232 | |||||||
Image enhancement and maintenance services | 21,195 | 23,085 | |||||||
Technology rentals | 6,272 | 6,578 | |||||||
32,234 | 36,895 | ||||||||
Gross margin | 46,889 | 50,051 | |||||||
Selling, general and administrative expenses | 31,257 | 34,148 | |||||||
Research and development | 2,187 | 1,855 | |||||||
Amortization of intangible assets | 1,343 | 1,074 | |||||||
Credit loss expense, net | 35 | 220 | |||||||
Restructuring and executive transition costs | — | 1,353 | |||||||
Income from operations | 12,067 | 11,401 | |||||||
Realized and unrealized investment gains | 30 | 44 | |||||||
Retirement benefits non-service expense | (107) | (77) | |||||||
Interest income | 534 | 407 | |||||||
Interest expense | (1,945) | (1,767) | |||||||
Income before taxes | 10,579 | 10,008 | |||||||
Income tax expense | (5,159) | (4,885) | |||||||
Net income | 5,420 | 5,123 | |||||||
Less: net income attributable to non-controlling interests | (2,146) | (2,669) | |||||||
Net income attributable to common shareholders | $ | 3,274 | $ | 2,454 | |||||
Net income per share attributable to common shareholders: | |||||||||
Basic | $ | 0.06 | $ | 0.05 | |||||
Diluted | $ | 0.06 | $ | 0.04 | |||||
Weighted average shares outstanding (in thousands): | |||||||||
Basic | 52,501 | 54,064 | |||||||
Diluted | 53,406 | 54,991 | |||||||
Additional Disclosure: | |||||||||
Depreciation and amortization | $ | 15,164 | $ | 13,320 | |||||
Amortization of deferred financing costs | $ | 492 | $ | 625 | |||||
IMAX CORPORATION | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(In thousands of dollars, except share amounts) | ||||||||
March 31, | December 31, | |||||||
2024 | 2023 | |||||||
Assets | ||||||||
Cash and cash equivalents | $ | 81,017 | $ | 76,200 | ||||
Accounts receivable, net of allowance for credit losses | 140,579 | 136,259 | ||||||
Financing receivables, net of allowance for credit losses | 125,614 | 127,154 | ||||||
Variable consideration receivables, net of allowance for credit losses | 64,503 | 64,338 | ||||||
Inventories | 36,153 | 31,584 | ||||||
Prepaid expenses | 12,711 | 12,345 | ||||||
Film assets, net of accumulated amortization | 8,050 | 6,786 | ||||||
Property, plant and equipment, net of accumulated depreciation | 240,450 | 243,299 | ||||||
Other assets | 19,634 | 20,879 | ||||||
Deferred income tax assets, net of valuation allowance | 7,712 | 7,988 | ||||||
Goodwill | 52,815 | 52,815 | ||||||
Other intangible assets, net of accumulated amortization | 34,902 | 35,022 | ||||||
Total assets | $ | 824,140 | $ | 814,669 | ||||
Liabilities | ||||||||
Accounts payable | $ | 18,734 | $ | 26,386 | ||||
Accrued and other liabilities | 101,038 | 111,013 | ||||||
Deferred revenue | 60,999 | 67,105 | ||||||
Revolving credit facility borrowings, net of unamortized debt issuance costs | 68,034 | 22,924 | ||||||
Convertible notes and other borrowings, net of unamortized discounts and debt issuance costs | 229,435 | 229,131 | ||||||
Deferred income tax liabilities | 12,521 | 12,521 | ||||||
Total liabilities | 490,761 | 469,080 | ||||||
Commitments, contingencies and guarantees | ||||||||
Non-controlling interests | 649 | 658 | ||||||
Shareholders' equity | ||||||||
Capital stock common shares — no par value. Authorized — unlimited number. | ||||||||
52,622,200 issued and outstanding (December 31, 2023 — 53,260,276 issued and outstanding) | 393,597 | 389,048 | ||||||
Other equity | 171,877 | 185,087 | ||||||
Statutory surplus reserve | 3,932 | 3,932 | ||||||
Accumulated deficit | (297,284) | (292,845) | ||||||
Accumulated other comprehensive loss | (13,320) | (12,081) | ||||||
Total shareholders' equity attributable to common shareholders | 258,802 | 273,141 | ||||||
Non-controlling interests | 73,928 | 71,790 | ||||||
Total shareholders' equity | 332,730 | 344,931 | ||||||
Total liabilities and shareholders' equity | $ | 824,140 | $ | 814,669 | ||||
IMAX CORPORATION | ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(In thousands of dollars) | ||||||||
Three months ended | ||||||||
March 31, | ||||||||
2024 | 2023 | |||||||
Operating Activities | ||||||||
Net income | $ | 5,420 | $ | 5,123 | ||||
Adjustments to reconcile net income to cash (used in) provided by operating activities: | ||||||||
Depreciation and amortization | 15,164 | 13,320 | ||||||
Amortization of deferred financing costs | 492 | 625 | ||||||
Credit loss expense, net | 35 | 220 | ||||||
Write-downs, including asset impairments | 109 | 304 | ||||||
Deferred income tax expense (benefit) | 571 | (193) | ||||||
Share-based and other non-cash compensation | 4,783 | 5,135 | ||||||
Unrealized foreign currency exchange loss (gain) | 33 | (78) | ||||||
Realized and unrealized investment gains | (30) | (44) | ||||||
Changes in assets and liabilities: | ||||||||
Accounts receivable | (4,502) | 12,374 | ||||||
Inventories | (4,672) | (5,946) | ||||||
Film assets | (4,912) | (3,884) | ||||||
Deferred revenue | (6,075) | 2,606 | ||||||
Changes in other operating assets and liabilities | (17,384) | (8,344) | ||||||
Net cash (used in) provided by operating activities | (10,968) | 21,218 | ||||||
Investing Activities | ||||||||
Purchase of property, plant and equipment | (1,104) | (364) | ||||||
Investment in equipment for joint revenue sharing arrangements | (4,442) | (2,157) | ||||||
Acquisition of other intangible assets | (1,594) | (1,760) | ||||||
Net cash used in investing activities | (7,140) | (4,281) | ||||||
Financing Activities | ||||||||
Revolving credit facility borrowings | 45,000 | 25,717 | ||||||
Repayments of revolving credit facility borrowings | — | (31,180) | ||||||
Other borrowings | — | 315 | ||||||
Repayment of other borrowings | (156) | — | ||||||
Repurchase of common shares | (17,856) | (3,656) | ||||||
Taxes withheld and paid on employee stock awards vested | (4,194) | (6,233) | ||||||
Net cash provided by (used in) financing activities | 22,794 | (15,037) | ||||||
Effects of exchange rate changes on cash | 131 | (55) | ||||||
Increase in cash and cash equivalents during period | 4,817 | 1,845 | ||||||
Cash and cash equivalents, beginning of period | 76,200 | 97,401 | ||||||
Cash and cash equivalents, end of period | $ | 81,017 | $ | 99,246 | ||||
Segment Revenue and Gross Margin | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
(In thousands of | 2024 | 2023 | ||||||
Revenue | ||||||||
Content Solutions | $ | 34,013 | $ | 32,101 | ||||
Technology Products and Services | 43,150 | 51,667 | ||||||
Sub-total for reportable segments | 77,163 | 83,768 | ||||||
All Other(1) | 1,960 | 3,178 | ||||||
Total | $ | 79,123 | $ | 86,946 | ||||
Gross Margin | ||||||||
Content Solutions | $ | 22,099 | $ | 17,995 | ||||
Technology Products and Services | 23,584 | 29,891 | ||||||
Sub-total for reportable segments | 45,683 | 47,886 | ||||||
All Other(1) | 1,206 | 2,165 | ||||||
Total | $ | 46,889 | $ | 50,051 | ||||
_____________
(1) | All Other includes the results from Streaming and Consumer Technology and other ancillary activities. |
IMAX CORPORATION
NON-GAAP FINANCIAL MEASURES
(in thousands of
In this release, the Company presents adjusted net income attributable to common shareholders and adjusted net income attributable to common shareholders per basic and diluted share, EBITDA, Adjusted EBITDA per Credit Facility, Adjusted EBITDA margin as supplemental measures of the Company's performance, which are not recognized under
The Company believes that these non-GAAP financial measures are important supplemental measures that allow management and users of the Company's financial statements to view operating trends and analyze controllable operating performance on a comparable basis between periods without the after-tax impact of share-based compensation and certain unusual items included in net income (loss) attributable to common shareholders. Although share-based compensation is an important aspect of the Company's employee and executive compensation packages, it is a non-cash expense and is excluded from certain internal business performance measures.
A reconciliation from net income (loss) attributable to common shareholders and the associated per share amounts to adjusted net income attributable to common shareholders and adjusted net income attributable to common shareholders per diluted share is presented in the table below. Net income (loss) attributable to common shareholders and the associated per share amounts are the most directly comparable GAAP measures because they reflect the earnings relevant to the Company's shareholders, rather than the earnings attributable to non-controlling interests.
In addition to the non-GAAP financial measures discussed above, management also uses "EBITDA," as such term is defined in the Company's Credit Agreement, and which is referred to herein as "Adjusted EBITDA per Credit Facility." As allowed by the Credit Agreement, Adjusted EBITDA per Credit Facility includes adjustments in addition to the exclusion of interest, taxes, depreciation and amortization. Adjusted EBITDA per Credit Facility measure is presented to allow a more comprehensive analysis of the Company's operating performance and to provide additional information with respect to the Company's compliance against its Credit Agreement requirements when applicable. In addition, the Company believes that Adjusted EBITDA per Credit Facility presents relevant and useful information widely used by analysts, investors and other interested parties in the Company's industry to evaluate, assess and benchmark the Company's results.
EBITDA is defined as net income or loss excluding (i) income tax expense or benefit; (ii) interest expense, net of interest income; (iii) depreciation and amortization, including film asset amortization; and (iv) amortization of deferred financing costs. Adjusted EBITDA per Credit Facility is defined as EBITDA excluding: (i) share-based and other non-cash compensation; (ii) realized and unrealized investment gains or losses; (iii) transaction-related expenses; (iv) restructuring and executive transition costs; and (v) write-downs, net of recoveries, including asset impairments and credit loss expense.
A reconciliation of net income (loss) attributable to common shareholders, which is the most directly comparable GAAP measure, to EBITDA and Adjusted EBITDA per Credit Facility is presented in the table below. Net income (loss) attributable to common shareholders is the most directly comparable GAAP measure because it reflects the earnings relevant to the Company's shareholders, rather than the earnings attributable to non-controlling interests.
In this release, the Company also presents free cash flow, which is not recognized under
These non-GAAP measures may not be comparable to similarly titled amounts reported by other companies. Additionally, the non-GAAP financial measures used by the Company should not be considered as a substitute for, or superior to, the comparable GAAP amounts.
Adjusted EBITDA per Credit Facility | |||||||||
(In thousands of | For the Three Months Ended | For the Three Months Ended | |||||||
Revenues | $ | 79,123 | $ | 86,946 | |||||
Reported net income | $ | 5,420 | $ | 5,123 | |||||
Add (subtract): | |||||||||
Income tax expense | 5,159 | 4,885 | |||||||
Interest expense, net of interest income | 919 | 735 | |||||||
Depreciation and amortization, including film asset amortization | 15,164 | 13,320 | |||||||
Amortization of deferred financing costs(2) | 492 | 625 | |||||||
EBITDA | $ | 27,154 | $ | 24,688 | |||||
Share-based and other non-cash compensation | 4,783 | 5,633 | |||||||
Unrealized investment gains | (30) | (44) | |||||||
Transaction-related expenses | — | 156 | |||||||
Write-downs, including asset impairments and credit loss expense | 144 | 524 | |||||||
Restructuring and executive transition costs(4) | — | 1,353 | |||||||
Total Adjusted EBITDA | $ | 32,051 | $ | 32,310 | |||||
Total Adjusted EBITDA margin | 40.5 % | 37.2 % | |||||||
Less: Non-controlling interest | $ | (3,934) | $ | (5,028) | |||||
Adjusted EBITDA per Credit Facility - attributable to common shareholders | $ | 28,117 | $ | 27,282 | |||||
(In thousands of | For the Twelve Months Ended | For the Twelve Months Ended | |||||||
Revenues | $ | 319,892 | $ | 327,715 | |||||
Reported net income (loss) | $ | 33,363 | $ | (2,804) | |||||
Add (subtract): | |||||||||
Income tax expense | 13,325 | 12,382 | |||||||
Interest expense, net of interest income | 2,285 | 1,827 | |||||||
Depreciation and amortization, including film asset amortization | 61,866 | 57,240 | |||||||
Amortization of deferred financing costs(2) | 2,102 | 2,779 | |||||||
EBITDA | $ | 112,941 | $ | 71,424 | |||||
Share-based and other non-cash compensation | 23,380 | 27,017 | |||||||
Unrealized investment gains | (451) | (81) | |||||||
Transaction-related expenses(3) | 3,413 | 1,278 | |||||||
Write-downs, including asset impairments and credit loss expense | 2,893 | 8,638 | |||||||
Restructuring and executive transition costs(4) | 1,593 | 1,353 | |||||||
Total Adjusted EBITDA | $ | 143,769 | $ | 109,629 | |||||
Total Adjusted EBITDA margin | 44.9 % | 33.5 % | |||||||
Less: Non-controlling interest | $ | (14,775) | $ | (12,697) | |||||
Adjusted EBITDA per Credit Facility - attributable to common shareholders | $ | 128,994 | $ | 96,932 | |||||
______________
(1) | The Senior Secured Net Leverage Ratio is calculated using Adjusted EBITDA per Credit Facility determined on a trailing twelve-month basis. |
(2) | The amortization of deferred financing costs is recorded within Interest Expense in the Condensed Consolidated Statement of Operations. |
(3) | For the twelve months ended March 31, 2024 and 2023 reflects costs incurred resulting from the Company's proposal to acquire the outstanding 96.3 million shares in IMAX China. |
(4) | For the twelve months ended March 31, 2024 and 2023, reflects costs in connection with the departure of the President, IMAX Entertainment and Executive Vice President of the Company and other employees to capture efficiencies and centralize certain operational roles. |
Adjusted Net Income Attributable to Common Shareholders and Adjusted Net Income Per Share | ||||||||||||||||
_____________ | Three Months Ended March 31, | |||||||||||||||
2024 | 2023 | |||||||||||||||
(In thousands of | Net Income | Per Share | Net Income | Per Share | ||||||||||||
Net income attributable to common shareholders | $ | 3,274 | $ | 0.06 | $ | 2,454 | $ | 0.04 | ||||||||
Adjustments(1): | ||||||||||||||||
Share-based compensation | 4,707 | 0.09 | 5,536 | 0.10 | ||||||||||||
Unrealized investment gains | (30) | — | (45) | — | ||||||||||||
Transaction-related expenses | — | — | 156 | — | ||||||||||||
Restructuring and executive transition costs(2) | — | — | 1,353 | 0.02 | ||||||||||||
Tax impact on items listed above | (10) | — | (429) | (0.01) | ||||||||||||
Adjusted net income(1) | $ | 7,941 | $ | 0.15 | $ | 9,025 | $ | 0.16 | ||||||||
Weighted average shares outstanding — basic | 52,501 | 54,064 | ||||||||||||||
Weighted average shares outstanding — diluted | 53,406 | 54,991 | ||||||||||||||
(1) | Reflects amounts attributable to common shareholders. |
(2) | For the three months ended March 31, 2023, reflects costs in connection with the departure of the President, IMAX Entertainment and Executive Vice President of the Company. |
Free Cash Flow | ||||||||||
Three Months | Three Months | |||||||||
(In thousands of | March 31, 2024 | March 31, 2023 | ||||||||
Net cash provided by operating activities | $ | (10,968) | $ | 21,218 | ||||||
Purchase of property, plant and equipment | (1,104) | (364) | ||||||||
Acquisition of other intangible assets | (1,594) | (1,760) | ||||||||
Free cash flow before growth CAPEX | (13,666) | 19,094 | ||||||||
Investment in equipment for joint revenue sharing arrangements | (4,442) | (2,157) | ||||||||
Free cash flow | $ | (18,108) | $ | 16,937 | ||||||
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SOURCE IMAX Corporation
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