IMAX Corporation Reports Second Quarter 2024 Earnings Results
IMAX reported solid Q2 2024 results, with revenue of $89 million, net income of $3.6 million, and EPS of 7 cents. The company saw significant growth in new system signings, up 89% to 87, and increased system installations by 20% to 24. IMAX raised its full-year 2024 installation guidance to 130-150 systems, up from 128 in 2023. Global box office reached $196 million for the quarter, boosted by a strong June. The company's cash from operations climbed to $35 million, a substantial increase from $5 million in Q2 2023. IMAX highlighted its strong position post-strikes and pandemic, with a robust film slate through 2026 and continued expansion in key markets like India, the Middle East, and Southeast Asia.
IMAX ha riportato risultati solidi per il secondo trimestre del 2024, con un fatturato di 89 milioni di dollari, un reddito netto di 3,6 milioni di dollari e un utile per azione di 7 centesimi. L'azienda ha registrato una crescita significativa nelle nuove firme di sistemi, in aumento dell'89% con un totale di 87, e un incremento delle installazioni di sistemi del 20%, arrivando a 24. IMAX ha alzato le sue previsioni per le installazioni dell'intero anno 2024 a un intervallo di 130-150 sistemi, rispetto ai 128 del 2023. Il box office globale ha raggiunto 196 milioni di dollari nel trimestre, sostenuto da un forte mese di giugno. Il flusso di cassa dalle operazioni è salito a 35 milioni di dollari, un incremento sostanziale rispetto ai 5 milioni del secondo trimestre del 2023. IMAX ha messo in evidenza la sua forte posizione dopo gli scioperi e la pandemia, con un solido programma di film fino al 2026 e un'espansione continua in mercati chiave come India, Medio Oriente e Sud-est asiatico.
IMAX reportó resultados sólidos para el segundo trimestre de 2024, con ingresos de 89 millones de dólares, una ganancia neta de 3,6 millones de dólares y un EPS de 7 centavos. La empresa vio un crecimiento significativo en la firma de nuevos sistemas, aumentando un 89% hasta 87, y las instalaciones de sistemas crecieron un 20% hasta 24. IMAX elevó su guía de instalaciones para todo el año 2024 a un rango de 130-150 sistemas, frente a 128 en 2023. La taquilla global alcanzó 196 millones de dólares en el trimestre, impulsada por un fuerte junio. El flujo de caja de las operaciones aumentó a 35 millones de dólares, un aumento considerable desde los 5 millones en el segundo trimestre de 2023. IMAX destacó su sólida posición tras huelgas y la pandemia, con una robusta programación de películas hasta 2026 y una continua expansión en mercados clave como la India, Oriente Medio y el sudeste asiático.
IMAX는 2024년 2분기 실적이 탄탄하다고 보고했으며, 수익은 8,900만 달러, 순이익은 360만 달러, 주당순이익(EPS)은 7센트입니다. 회사는 새 시스템 계약에서 상당한 성장을 경험했으며, 89% 증가하여 총 87개에 도달했고 시스템 설치도 20% 증가하여 24개로 늘어났습니다. IMAX는 2024년 연간 설치 안내를 130-150 시스템으로 상향 조정했으며, 이는 2023년 128개에서 증가한 수치입니다. 전 세계 박스오피스는 1억 9,600만 달러에 달했으며, 강력한 6월에 힘입어 증가했습니다. 운영으로 인한 현금 흐름은 3,500만 달러로 상승했으며, 이는 2023년 2분기의 500만 달러에서 상당히 증가한 수치입니다. IMAX는 파업과 팬데믹 후 강력한 입지를 강조하며, 2026년까지의 풍부한 필름 라인업과 인도, 중동 및 동남아시아와 같은 주요 시장에서의 지속적인 확장을 언급했습니다.
IMAX a annoncé des résultats solides pour le deuxième trimestre 2024, avec un chiffre d'affaires de 89 millions de dollars, un bénéfice net de 3,6 millions de dollars et un BPA de 7 cents. L'entreprise a connu une croissance significative des nouvelles signatures de systèmes, avec une augmentation de 89% pour atteindre 87, et a augmenté les installations de systèmes de 20% pour atteindre 24. IMAX a relevé ses prévisions d'installations pour l'année 2024 à 130-150 systèmes, contre 128 en 2023. Le box-office mondial a atteint 196 millions de dollars pour le trimestre, soutenu par un mois de juin solide. Le flux de trésorerie d'exploitation a grimpé à 35 millions de dollars, une augmentation substantielle par rapport à 5 millions de dollars au deuxième trimestre 2023. IMAX a souligné sa position solide après les grèves et la pandémie, avec un vaste catalogue de films jusqu'en 2026 et une expansion continue sur des marchés clés comme l'Inde, le Moyen-Orient et l'Asie du Sud-Est.
IMAX hat starke Ergebnisse für das zweite Quartal 2024 berichtet, mit einem Umsatz von 89 Millionen Dollar, einem Nettogewinn von 3,6 Millionen Dollar und einem Gewinn pro Aktie (EPS) von 7 Cent. Das Unternehmen verzeichnete ein deutliche Wachstum bei den neuen Systemanmeldungen, das um 89% auf 87 anstieg, und erhöhte die Systeminstallationen um 20% auf 24. IMAX hat die Prognose für die Installationen für das gesamte Jahr 2024 auf 130-150 Systeme angehoben, von 128 im Jahr 2023. Das weltweite Box-Office erreichte 196 Millionen Dollar im Quartal, angetrieben von einem starken Juni. Der Cashflow aus der Betriebstätigkeit stieg auf 35 Millionen Dollar, ein erheblicher Anstieg von 5 Millionen Dollar im 2. Quartal 2023. IMAX hob seine starke Position nach den Streiks und der Pandemie hervor, mit einem soliden Filmangebot bis 2026 und einer kontinuierlichen Expansion in wichtigen Märkten wie Indien, dem Nahen Osten und Südostasien.
- New system signings increased by 89% to 87 in Q2 2024
- System installations grew by 20% to 24 in Q2 2024
- Full-year 2024 installation guidance raised to 130-150 systems
- Cash from operations increased to $35 million from $5 million year-over-year
- Global box office reached $196 million for the quarter
- Strong film slate through 2026 with at least 14 films shot with IMAX cameras in 2025
- Revenue decreased by 9% year-over-year to $89 million
- Net income declined by 57% to $3.6 million compared to Q2 2023
- Diluted EPS decreased by 53% to $0.07 compared to Q2 2023
- Gross margin percentage dropped to 49.4% from 59.1% in Q2 2023
- Total Adjusted EBITDA decreased by 14% to $31 million
Insights
IMAX 's Q2 2024 results present a mixed picture with some positive developments amidst ongoing challenges. The company reported
- System signings grew
89% to 87, indicating strong future growth potential. - System installations increased
20% to 24, prompting raised guidance for full-year 2024. - Cash from operations surged to
$35 million , up from$5 million in the prior-year quarter.
The company's strategic focus on network expansion, particularly in key regions like India, the Middle East and Southeast Asia, positions it well to capitalize on the robust film slate through 2026. However, the
The sale of IMAX original documentary "The Blue Angels" highlights the company's efforts to diversify its content portfolio and revenue mix, which could help mitigate future volatility. With a strong liquidity position of
Investors should closely monitor the company's ability to translate increased system signings and installations into revenue growth and margin expansion in the coming quarters.
IMAX's Q2 results reflect the ongoing recovery and transformation of the cinema industry post-pandemic. The surge in new and upgraded IMAX system signings is particularly noteworthy, signaling strong confidence from exhibitors in the IMAX format. This trend aligns with the broader industry shift towards premium experiences to attract audiences back to theaters.
The company's emphasis on its "asset-lite" business model is strategic, allowing for scalability and reduced capital intensity. However, the
IMAX's content diversification efforts, exemplified by the sale of "The Blue Angels" documentary, represent a smart hedge against Hollywood production fluctuations. This strategy could prove valuable in maintaining steady revenue streams and expanding the company's appeal beyond traditional blockbuster audiences.
The anticipated slate of at least 14 films shot with IMAX cameras in 2025 is a significant positive, potentially driving both box office performance and system demand. However, the company must navigate the rapidly evolving distribution landscape, including shortened theatrical windows and the rise of streaming platforms.
Overall, IMAX's position as a premium, differentiated player in the exhibition space appears strong, but execution in translating network growth into financial performance will be important in the coming years.
- Global entertainment platform delivers solid results, including Revenue of
$89 million $3.6 million 7 cents , Total Adjusted EBITDA(2) of$31 million 18 cents . - Signings for new and upgraded IMAX systems grow to 87 (+
89% ) in the quarter; system installations climb to 24 (+20% ) as Company raises installation guidance to 130 to 150 systems for full-year 2024 vs. 128 in full-year 2023. - June surge of film hits pushes quarterly Global Box Office to
$196 million - Quarterly revenue bolstered by sale of IMAX original documentary "The Blue Angels" as Company further diversifies content portfolio and revenue mix.
- Cash from Operations climbs to
$35 million $5 million
"With the strikes — and the lingering effects of the pandemic — firmly behind us, we are in an excellent position to fully realize the benefits of our strong, asset-lite business model," said Rich Gelfond, CEO of IMAX. "The second quarter offered strong evidence that we are at in inflection point in our business; we are on a tear with system sales activity, our system installations are up significantly, and the slate through 2026 is as strong as we've ever seen."
"Several signs across our financial and operating performance in the second quarter underscore our building momentum — we beat consensus across most metrics, generated strong cash flow, delivered our most quarterly signings for IMAX systems in six years, and expect to install a higher number of IMAX systems in 2024 over the year prior."
"We continue to grow our unique global network across key regions including
"Our ongoing strategic network expansion will enable IMAX to fully capitalize on the tremendous film slate over the next several years — featuring new releases from some of our most successful filmmaking partners and studio franchises, as well as a record of at least 14 films shot with IMAX cameras in 2025."
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(1) | Diluted Net Income Per Share |
(2) | 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. |
Second Quarter Financial Highlights | |||||||||||
Three Months Ended | Six Months Ended | ||||||||||
June 30, | June 30, | ||||||||||
In millions of | 2024 | 2023 | YoY % Change | 2024 | 2023 | YoY % Change | |||||
Total Revenue | $ 89.0 | $ 98.0 | (9 %) | $ 168.1 | $ 184.9 | (9 %) | |||||
Gross Margin | $ 43.9 | $ 57.9 | (24 %) | $ 90.8 | $ 107.9 | (16 %) | |||||
Gross Margin (%) | 49.4 % | 59.1 % | 54.0 % | 58.4 % | |||||||
Total Adjusted EBITDA(1)(2) | $ 31.0 | $ 35.9 | (14 %) | $ 63.1 | $ 68.3 | (8 %) | |||||
Total Adjusted EBITDA Margin (%)(1)(2) | 34.8 % | 36.7 % | 37.5 % | 36.9 % | |||||||
Net Income(3) | $ 3.6 | $ 8.4 | (57 %) | $ 6.9 | $ 10.8 | (37 %) | |||||
Diluted Net Income Per Share(3) | $ 0.07 | $ 0.15 | (53 %) | $ 0.13 | $ 0.20 | (35 %) | |||||
Adjusted Net Income(1)(3) | $ 9.7 | $ 14.4 | (33 %) | $ 17.7 | $ 23.4 | (24 %) | |||||
Adjusted Earnings Per Share(1)(3) | $ 0.18 | $ 0.26 | (31 %) | $ 0.33 | $ 0.42 | (21 %) | |||||
Weighted average shares outstanding (in millions): | |||||||||||
Basic | 52.6 | 54.6 | (4 %) | 52.6 | 54.3 | (3 %) | |||||
Diluted | 53.4 | 55.3 | (3 %) | 53.4 | 55.1 | (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. |
Second Quarter Segment Results(1) | |||||||||||
Content Solutions | Technology Products and Services | ||||||||||
Revenue | Gross Margin | Gross Margin % | Revenue | Gross Margin | Gross Margin % | ||||||
2Q24 | $ 35.1 | $ 16.1 | 46 % | $ 50.9 | $ 25.8 | 51 % | |||||
2Q23 | 31.3 | 20.0 | 64 % | 64.0 | 36.4 | 57 % | |||||
% change | 12 % | (19 %) | (20 %) | (29 %) | |||||||
YTD24 | $ 69.1 | $ 38.2 | 55 % | $ 94.0 | $ 49.4 | 52 % | |||||
YTD23 | 63.4 | 38.0 | 60 % | 115.6 | 66.3 | 57 % | |||||
% change | 9 % | 1 % | (19 %) | (26 %) | |||||||
_________________ | |||||||||||
(1) Please refer to the Company's Form 10-Q for the period ended June 30, 2024 for additional segment information. | |||||||||||
Content Solutions Segment
- Content Solutions revenues of
$35 million 12% year-over-year. The sale of the commercial and streaming rights of "The Blue Angels" documentary more than offset theHollywood strike impacted lower IMAX gross box office in Q2 2024 of$196 million $268 million
- Gross margin for Content Solutions was
$16 million 19% compared to the second quarter of the prior year period driven by the lower box office and the mix of revenues.
Technology Products and Services Segment
- Technology Products and Services revenues and gross margin decreased
20% year-over-year to$51 million 29% year-over-year to$26 million
- During the second quarter the Company installed 24 systems compared to 20 systems in the second quarter of 2023. Of those, 10 systems were under sales and hybrid JRSA arrangements, compared to 13 systems in the prior year.
- Commercial network growth accelerated with the number of IMAX locations increasing
4% year-over-year to 1,705. The Company ended Q2 2024 with a backlog of 504 IMAX systems.
Operating Cash Flow and Liquidity
Net cash provided by operating activities for the first half of 2024 was
As of June 30, 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 in the second quarter of 2024 were 52.6 million and 53.4 million, respectively, compared to 54.6 million and 55.3 million in the second quarter of 2023, a decrease of
During the first half of 2024 the Company repurchased 1,166,370 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 second 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/BIaceefcc683494a839687115352a98934 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
In the first quarter of 2023, the Company revised its internal segment reporting, including the information provided to the CODM to assess segment performance and allocate resources. Accordingly, the Company has two 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 | Six Months Ended | ||||||
June 30, | June 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
System Signings(1): | |||||||
Sales Arrangements | 25 | 26 | 30 | 41 | |||
Traditional JRSA | 62 | 20 | 65 | 33 | |||
Total IMAX System Signings | 87 | 46 | 95 | 74 | |||
_________________ | |||||||
(1) System signings include new signings of 19 in Q2 2024, 35 in Q2 2023, 27 in the first half of 2024 and 62 in the first half of 2023. | |||||||
Three Months Ended | Six Months Ended | ||||||
June 30, | June 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
System Installations(1): | |||||||
Sales Arrangements | 10 | 11 | 15 | 19 | |||
Hybrid JRSA | — | 2 | 1 | 2 | |||
Traditional JRSA | 14 | 7 | 23 | 8 | |||
Total IMAX System Installations | 24 | 20 | 39 | 29 | |||
_________________ | |||||||
(1) System installations include new systems installations of 16 in Q2 2024, 14 in Q2 2023, 28 in the first half of 2024 and 21 in the first half of 2023. | |||||||
As of June 30, | |||
2024 | 2023 | ||
System Backlog: | |||
Sales Arrangements | 177 | 193 | |
Hybrid JRSA | 101 | 109 | |
Traditional JRSA | 226 | 194 | |
Total System Backlog | 504 | 496 | |
As of June 30, | |||
2024 | 2023 | ||
System Network: | |||
Commercial Multiplex Systems | |||
Sales Arrangements | 807 | 731 | |
Hybrid JRSA | 138 | 138 | |
Traditional JRSA | 760 | 769 | |
Total Commercial Multiplex Systems | 1,705 | 1,638 | |
Commercial Destination Systems | 12 | 12 | |
Institutional Systems | 63 | 68 | |
Total System Network | 1,780 | 1,718 | |
IMAX CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands of | |||||||
Three Months Ended | Six Months Ended | ||||||
June 30, | June 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Revenues | |||||||
Technology sales | $ 20,420 | $ 29,360 | $ 28,324 | $ 47,182 | |||
Image enhancement and maintenance services | 52,189 | 46,867 | 102,537 | 93,994 | |||
Technology rentals | 14,043 | 19,546 | 32,644 | 39,604 | |||
Finance income | 2,309 | 2,206 | 4,579 | 4,145 | |||
88,961 | 97,979 | 168,084 | 184,925 | ||||
Costs and expenses applicable to revenues | |||||||
Technology sales | 9,222 | 13,771 | 13,989 | 21,003 | |||
Image enhancement and maintenance services | 29,089 | 19,739 | 50,284 | 42,824 | |||
Technology rentals | 6,723 | 6,582 | 12,995 | 13,160 | |||
45,034 | 40,092 | 77,268 | 76,987 | ||||
Gross margin | 43,927 | 57,887 | 90,816 | 107,938 | |||
Selling, general and administrative expenses | 37,564 | 38,906 | 68,821 | 73,054 | |||
Research and development | 2,031 | 2,762 | 4,218 | 4,617 | |||
Amortization of intangible assets | 1,321 | 1,147 | 2,664 | 2,221 | |||
Credit loss expense, net | 139 | 846 | 174 | 1,066 | |||
Restructuring and executive transition costs | — | — | — | 1,353 | |||
Income from operations | 2,872 | 14,226 | 14,939 | 25,627 | |||
Realized and unrealized investment gains | 32 | 28 | 62 | 72 | |||
Retirement benefits non-service expense | (107) | (78) | (214) | (155) | |||
Interest income | 561 | 693 | 1,095 | 1,100 | |||
Interest expense | (2,282) | (1,795) | (4,227) | (3,562) | |||
Income before taxes | 1,076 | 13,074 | 11,655 | 23,082 | |||
Income tax benefit (expense) | 3,997 | (3,461) | (1,162) | (8,346) | |||
Net income | 5,073 | 9,613 | 10,493 | 14,736 | |||
Net income attributable to non-controlling interests | (1,490) | (1,262) | (3,636) | (3,931) | |||
Net income attributable to common shareholders | $ 3,583 | $ 8,351 | $ 6,857 | $ 10,805 | |||
Net income per share attributable to common shareholders: | |||||||
Basic and diluted | $ 0.07 | $ 0.15 | $ 0.13 | $ 0.20 | |||
Weighted average shares outstanding (in thousands): | |||||||
Basic | 52,633 | 54,591 | 52,568 | 54,328 | |||
Diluted | 53,428 | 55,320 | 53,386 | 55,145 | |||
Additional Disclosure: | |||||||
Depreciation and amortization | $ 18,838 | $ 13,878 | $ 34,002 | $ 27,198 | |||
Amortization of deferred financing costs | $ 493 | $ 625 | $ 985 | $ 1,250 | |||
IMAX CORPORATION CONSOLIDATED BALANCE SHEETS (In thousands of dollars, except share amounts) | |||
June 30, | December 31, | ||
2024 | 2023 | ||
Assets | |||
Cash and cash equivalents | $ 91,552 | $ 76,200 | |
Accounts receivable, net of allowance for credit losses | 121,513 | 136,259 | |
Financing receivables, net of allowance for credit losses | 123,496 | 127,154 | |
Variable consideration receivables, net of allowance for credit losses | 69,927 | 64,338 | |
Inventories | 37,798 | 31,584 | |
Prepaid expenses | 11,786 | 12,345 | |
Film assets, net of accumulated amortization | 8,532 | 6,786 | |
Property, plant and equipment, net of accumulated depreciation | 237,781 | 243,299 | |
Other assets | 21,244 | 20,879 | |
Deferred income tax assets, net of valuation allowance | 16,099 | 7,988 | |
Goodwill | 52,815 | 52,815 | |
Other intangible assets, net of accumulated amortization | 34,856 | 35,022 | |
Total assets | $ 827,399 | $ 814,669 | |
Liabilities | |||
Accounts payable | $ 20,055 | $ 26,386 | |
Accrued and other liabilities | 106,336 | 111,013 | |
Deferred revenue | 62,655 | 67,105 | |
Revolving credit facility borrowings, net of unamortized debt issuance costs | 53,132 | 22,924 | |
Convertible notes and other borrowings, net of unamortized discounts and debt issuance costs | 229,738 | 229,131 | |
Deferred income tax liabilities | 12,521 | 12,521 | |
Total liabilities | 484,437 | 469,080 | |
Commitments, contingencies and guarantees | |||
Non-controlling interests | 657 | 658 | |
Shareholders' equity | |||
Capital stock common shares — no par value. Authorized — unlimited number. 52,676,567 issued and outstanding (December 31, 2023 — 53,260,276 issued and | 394,493 | 389,048 | |
Other equity | 176,632 | 185,087 | |
Statutory surplus reserve | 3,932 | 3,932 | |
Accumulated deficit | (293,889) | (292,845) | |
Accumulated other comprehensive loss | (13,974) | (12,081) | |
Total shareholders' equity attributable to common shareholders | 267,194 | 273,141 | |
Non-controlling interests | 75,111 | 71,790 | |
Total shareholders' equity | 342,305 | 344,931 | |
Total liabilities and shareholders' equity | $ 827,399 | $ 814,669 | |
IMAX CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands of dollars) | |||
Six Months Ended | |||
June 30, | |||
2024 | 2023 | ||
Operating Activities | |||
Net income | $ 10,493 | $ 14,736 | |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Depreciation and amortization | 34,002 | 27,198 | |
Amortization of deferred financing costs | 985 | 1,250 | |
Credit loss expense, net | 174 | 1,066 | |
Write-downs, including asset impairments | 2,399 | 474 | |
Deferred income tax benefit | (7,722) | (3,279) | |
Share-based and other non-cash compensation | 11,753 | 12,533 | |
Unrealized foreign currency exchange loss | 51 | 175 | |
Realized and unrealized investment gain | (62) | (72) | |
Changes in assets and liabilities: | |||
Accounts receivable | 14,492 | 9,531 | |
Inventories | (6,271) | (6,118) | |
Film assets | (12,741) | (9,241) | |
Deferred revenue | (4,397) | (3,255) | |
Changes in other operating assets and liabilities | (19,086) | (19,143) | |
Net cash provided by operating activities | 24,070 | 25,855 | |
Investing Activities | |||
Purchase of property, plant and equipment | (2,690) | (1,009) | |
Investment in equipment for joint revenue sharing arrangements | (9,757) | (4,033) | |
Acquisition of other intangible assets | (3,191) | (3,478) | |
Net cash used in investing activities | (15,638) | (8,520) | |
Financing Activities | |||
Revolving credit facility borrowings | 51,000 | 30,717 | |
Repayments of revolving credit facility borrowings | (21,000) | (38,886) | |
Repayments of other borrowings | (311) | — | |
Proceeds from other borrowings | — | 315 | |
Repurchase of common shares | (18,102) | (4,011) | |
Taxes withheld and paid on employee stock awards vested | (4,978) | (6,458) | |
Dividends paid to non-controlling interests | — | (1,438) | |
Net cash provided by (used in) financing activities | 6,609 | (19,761) | |
Effects of exchange rate changes on cash | 311 | 291 | |
Increase (decrease) in cash and cash equivalents during period | 15,352 | (2,135) | |
Cash and cash equivalents, beginning of period | 76,200 | 97,401 | |
Cash and cash equivalents, end of period | $ 91,552 | $ 95,266 | |
Segment Revenue and Gross Margin | |||||||
Three Months Ended | Six Months Ended | ||||||
June 30, | June 30, | ||||||
(In thousands of dollars) | 2024 | 2023 | 2024 | 2023 | |||
Revenue | |||||||
Content Solutions | $ 35,076 | $ 31,290 | $ 69,089 | $ 63,391 | |||
Technology Products and Services | 50,898 | 63,976 | 94,048 | 115,643 | |||
Sub-total for reportable segments | 85,974 | 95,266 | 163,137 | 179,034 | |||
All Other(1) | 2,987 | 2,713 | 4,947 | 5,891 | |||
Total | $ 88,961 | $ 97,979 | $ 168,084 | $ 184,925 | |||
Gross Margin | |||||||
Content Solutions | $ 16,138 | $ 19,996 | $ 38,237 | $ 37,991 | |||
Technology Products and Services | 25,783 | 36,411 | 49,367 | 66,302 | |||
Sub-total for reportable segments | 41,921 | 56,407 | 87,604 | 104,293 | |||
All Other(1) | 2,006 | 1,480 | 3,212 | 3,645 | |||
Total | $ 43,927 | $ 57,887 | $ 90,816 | $ 107,938 | |||
_________________ | |||||||
(1) All Other includes the results from the Company's streaming and consumer technology business, as well as 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 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 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. Accordingly, this non-GAAP financial 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 with 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 | |||
Three Months Ended | |||
(In thousands of | June 30, 2024 | June 30, 2023 | |
Revenues | $ 88,961 | $ 97,979 | |
Reported net income | $ 5,073 | $ 9,613 | |
Add (subtract): | |||
Income tax expense | (3,997) | 3,461 | |
Interest expense, net of interest income | 1,229 | 477 | |
Depreciation and amortization, including film asset amortization | 18,838 | 13,878 | |
Amortization of deferred financing costs(1) | 492 | 625 | |
EBITDA | $ 21,635 | $ 28,054 | |
Share-based and other non-cash compensation | 6,970 | 6,900 | |
Unrealized investment gains | (32) | (28) | |
Write-downs, including asset impairments and credit loss expense | 2,428 | 1,016 | |
Total Adjusted EBITDA | $ 31,001 | $ 35,942 | |
Total Adjusted EBITDA margin | 34.8 % | 36.7 % | |
Less: Non-controlling interest | (4,151) | (3,165) | |
Adjusted EBITDA per Credit Facility - attributable to common shareholders | $ 26,850 | $ 32,777 | |
_________________ | |||
(1) The amortization of deferred financing costs is recorded within Interest Expense in the Condensed Consolidated Statement of Operations. | |||
Twelve Months Ended | |||
(In thousands of | June 30, 2024(1) | June 30, 2023(1) | |
Revenues | $ 357,998 | $ 351,726 | |
Reported net income | $ 28,823 | $ 11,060 | |
Add (subtract): | |||
Income tax expense | 5,867 | 12,710 | |
Interest expense, net of interest income | 3,037 | 2,125 | |
Depreciation and amortization, including film asset amortization | 66,826 | 56,836 | |
Amortization of deferred financing costs(2) | 1,969 | 2,674 | |
EBITDA | $ 106,522 | $ 85,405 | |
Share-based and other non-cash compensation | 23,450 | 26,140 | |
Unrealized investment gains | (455) | (78) | |
Transaction-related expenses | 3,413 | 1,278 | |
Write-downs, including asset impairments and credit loss expense | 4,305 | 4,490 | |
Restructuring and executive transition costs | 1,593 | 1,353 | |
Total Adjusted EBITDA | $ 138,828 | $ 118,588 | |
Total Adjusted EBITDA margin | 38.8 % | 33.7 % | |
Less: Non-controlling interest | $ (15,761) | $ (14,296) | |
Adjusted EBITDA per Credit Facility - attributable to common shareholders | $ 123,067 | $ 104,292 | |
_________________ | |||
(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. | |||
Adjusted Net Income Attributable to Common Shareholders and Adjusted Net Income Per Share | |||||||
Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | ||||||
(In thousands of | Net Income | Per Diluted Share | Net Income | Per Diluted Share | |||
Net income attributable to common shareholders | $ 3,583 | $ 0.07 | $ 8,351 | $ 0.15 | |||
Adjustments(1): | |||||||
Share-based compensation | 6,647 | 0.12 | 6,511 | 0.12 | |||
Unrealized investment gains | (32) | — | (27) | — | |||
Tax impact on items listed above | (452) | (0.01) | (480) | (0.01) | |||
Adjusted net income(1) | $ 9,746 | $ 0.18 | $ 14,355 | $ 0.26 | |||
Weighted average shares outstanding — basic | 52,633 | 54,591 | |||||
Weighted average shares outstanding — diluted | 53,428 | 55,320 | |||||
Six Months Ended June 30, | |||||||
2024 | 2023 | ||||||
(In thousands of | Net Income | Per Share | Net Income | Per Share | |||
Net income attributable to common shareholders | $ 6,857 | $ 0.13 | $ 10,805 | $ 0.20 | |||
Adjustments(1): | |||||||
Share-based compensation | 11,354 | 0.21 | 12,047 | 0.22 | |||
Unrealized investment gains | (62) | — | (72) | — | |||
Transaction-related expenses | — | — | 156 | — | |||
Restructuring and executive transition costs | — | — | 1,353 | 0.02 | |||
Tax impact on items listed above | (462) | (0.01) | (909) | (0.02) | |||
Adjusted net income(1) | $ 17,688 | $ 0.33 | $ 23,380 | $ 0.42 | |||
Weighted average shares outstanding — basic | 52,568 | 54,328 | |||||
Weighted average shares outstanding — diluted | 53,386 | 55,145 | |||||
_________________ | |||||||
(1) Reflects amounts attributable to common shareholders. | |||||||
Free Cash Flow | |||
Six Months Ended | |||
June 30, | |||
(In thousands of | 2024 | 2023 | |
Net cash provided by operating activities | $ 24,070 | $ 25,855 | |
Purchase of property, plant and equipment | (2,690) | (1,009) | |
Acquisition of other intangible assets | (3,191) | (3,478) | |
Free cash flow before growth CAPEX | 18,189 | 21,368 | |
Investment in equipment for joint revenue sharing arrangements | (9,757) | (4,033) | |
Free cash flow | $ 8,432 | $ 17,335 | |
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SOURCE IMAX Corporation
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