IMAX Corporation Reports Third Quarter 2024 Earnings Results
IMAX reported solid Q3 2024 results with Net Income of $14 million (+16% YoY) and EPS of 26 cents (+18% YoY). The company installed 49 new systems (+63% YoY) and achieved Cash from Operations of $35 million (+23% YoY). Total revenue was $91.5 million, with Total Adjusted EBITDA of $39 million at a 42% margin. System signings reached 119 year-to-date, surpassing 2023's full-year total. IMAX projects record global box office exceeding $1.2 billion in 2025, supported by a strong content pipeline including 14 Filmed for IMAX releases.
IMAX ha riportato risultati solidi per il terzo trimestre del 2024, con un utile netto di 14 milioni di dollari (+16% rispetto all'anno precedente) e un utile per azione di 26 centesimi (+18% rispetto all'anno precedente). L'azienda ha installato 49 nuovi sistemi (+63% rispetto all'anno precedente) e ha registrato un flusso di cassa dalle operazioni di 35 milioni di dollari (+23% rispetto all'anno precedente). Il fatturato totale è stato di 91,5 milioni di dollari, con un EBITDA rettificato totale di 39 milioni di dollari, con un margine del 42%. Le firme dei sistemi hanno raggiunto 119 da inizio anno, superando il totale dell'intero anno 2023. IMAX prevede un record globale al botteghino che supera i 1,2 miliardi di dollari nel 2025, sostenuto da una forte pipeline di contenuti che include 14 uscite girate per IMAX.
IMAX informó sobre resultados sólidos para el tercer trimestre de 2024, con un ingreso neto de 14 millones de dólares (+16% en comparación con el año anterior) y beneficio por acción de 26 centavos (+18% en comparación con el año anterior). La compañía instaló 49 nuevos sistemas (+63% en comparación con el año anterior) y logró un flujo de efectivo de las operaciones de 35 millones de dólares (+23% en comparación con el año anterior). Los ingresos totales fueron de 91,5 millones de dólares, con un EBITDA ajustado total de 39 millones de dólares, con un margen del 42%. Las firmas de sistemas alcanzaron 119 en lo que va del año, superando el total del año completo 2023. IMAX proyecta un récord de taquilla global que supere los 1.2 mil millones de dólares en 2025, respaldado por una sólida oferta de contenido que incluye 14 estrenos filmados para IMAX.
IMAX는 2024년 3분기 실적을 발표하며 순이익 1,400만 달러 (+16% 전년 대비) 및 주당순이익 26센트 (+18% 전년 대비)를 기록했습니다. 이 회사는 49개의 새로운 시스템을 설치했으며 (+63% 전년 대비), 운영에서의 현금흐름 3,500만 달러 (+23% 전년 대비)를 달성했습니다. 총 수익은 9,150만 달러였으며, 조정 EBITDA는 3,900만 달러로 42%의 마진을 기록했습니다. 시스템 계약 수는 올해 들어 119건에 이르렀으며, 이는 2023년 전체 연도 총계를 초과한 수치입니다. IMAX는 2025년에 12억 달러를 초과하는 세계 박스 오피스 신기록을 예상하며, 14개의 IMAX 촬영 작품을 포함한 강력한 콘텐츠 파이프라인에 힘입어 이러한 성과를 이루어낼 것으로 보입니다.
IMAX a annoncé des résultats solides pour le troisième trimestre 2024, avec un revenu net de 14 millions de dollars (+16% par rapport à l'année précédente) et un bénéfice par action de 26 cents (+18% par rapport à l'année précédente). L'entreprise a installé 49 nouveaux systèmes (+63% par rapport à l'année précédente) et a enregistré un flux de trésorerie d'exploitation de 35 millions de dollars (+23% par rapport à l'année précédente). Le chiffre d'affaires total a atteint 91,5 millions de dollars, avec un EBITDA ajusté total de 39 millions de dollars, représentant une marge de 42%. Les signatures de systèmes ont atteint 119 depuis le début de l'année, dépassant ainsi le total de l'année 2023. IMAX projette un record de recettes mondiales dépassant 1,2 milliard de dollars en 2025, soutenu par une solide gamme de contenus comprenant 14 sorties réalisées pour IMAX.
IMAX berichtete über solide Ergebnisse für das dritte Quartal 2024 mit einem Nettoeinkommen von 14 Millionen Dollar (+16% im Jahresvergleich) und EPS von 26 Cent (+18% im Jahresvergleich). Das Unternehmen hat 49 neue Systeme installiert (+63% im Jahresvergleich) und einen Betriebs-Cashflow von 35 Millionen Dollar erzielt (+23% im Jahresvergleich). Der Gesamtumsatz betrug 91,5 Millionen Dollar, mit einem bereinigten EBITDA von 39 Millionen Dollar und einer Marge von 42%. Die Systembeauftragungen erreichten bis zum bisherigen Jahresverlauf 119 und übertrafen damit die Gesamtzahl für das Jahr 2023. IMAX prognostiziert einen weltweiten Kinoumsatz von über 1,2 Milliarden Dollar im Jahr 2025, unterstützt durch eine starke Inhaltspipeline, die 14 für IMAX produzierte Filme umfasst.
- Net Income increased 16% YoY to $14 million
- EPS grew 18% YoY to 26 cents
- System installations up 63% YoY to 49 systems
- Operating cash flow improved 23% YoY to $35 million
- Strong liquidity position of $413 million
- System signings at 119 YTD, exceeding 2023's full-year total
- Total Revenue declined 12% YoY to $91.5 million
- Gross Margin decreased from 60.4% to 55.8%
- Content Solutions revenue dropped 32% YoY
- Total Adjusted EBITDA fell 23% YoY to $38.7 million
Insights
IMAX delivered a mixed Q3 2024 with some notable positives despite revenue headwinds. Net income grew +16% YoY to
Network expansion is accelerating impressively with 49 system installations in Q3 (+63% YoY) and 119 new system signings year-to-date already approaching 2023's full-year total. The company maintains strong liquidity of
The strategic positioning of IMAX remains compelling despite near-term revenue softness. The company's 42% Total Adjusted EBITDA margin demonstrates strong operational efficiency. The accelerating network growth with 1,714 commercial systems (+4% YoY) and robust backlog of 472 systems indicates sustained demand for premium theatrical experiences.
Key growth catalysts include expansion in strategic markets like Australia, France, Japan and Saudi Arabia, plus an unprecedented slate of 14 Filmed for IMAX releases in 2025. The asset-lite business model and diversified content strategy provide resilience, while the strong installation momentum suggests theater partners remain confident in the IMAX value proposition despite industry challenges.
-
Global entertainment platform delivers Net Income of
(+$14 million 16% YoY), EPS(1) of26 cents (+18% YoY), and Cash from Operations of (+$35 million 23% YoY)
-
Strong profitability highlighted by Total Adjusted EBITDA(2) of
at a$39 million 42% margin; and Adjusted EPS(1)(2) of35 cents , matching a third quarter record
-
Network growth accelerates as IMAX expects to deliver on high-end of full-year installation guidance, with 49 system installs (+
63% YoY) worldwide in Q3
- Sales activity robust as system signings climb to 119 to-date — outpacing 129 signings for full-year 2023
- Strong, diverse year-end slate including “Gladiator II,” “Wicked,” “Moana 2,” and “Mufasa: The Lion King” poised to drive momentum heading into 2025
-
IMAX expects to deliver record of more than
in global box office in 2025 as promising slate solidifies$1.2 billion
An infographic highlighting IMAX's recent quarter. (Graphic: Business Wire)
“IMAX continues to set the table for a new, sustained era of growth with a 2025 and 2026 slate that is as promising as we’ve ever seen,” said Rich Gelfond, CEO of IMAX. “With an exceptional content pipeline, accelerating system installations, and robust sales activity worldwide, we are very well-positioned to execute and capitalize on the opportunity ahead over the next several years.”
“As we look forward, we expect 2025 to be our best year ever at the global box office, with more than
“Demand for the IMAX platform is strong among our global exhibition partners. We installed nearly 50 new and upgraded systems worldwide in the third quarter — one of our best third quarters for installs ever — and continue to strike agreements in key growth markets, including
“Our third quarter performance further demonstrates our ability to deliver results in any environment, reflecting our flexible, asset-lite business model and diversified content portfolio. With a strong slate ahead, we look forward to fully capitalizing on our model, our strong brand and technology, and our unique global scale to deliver for our shareholders.”
- Diluted Net Income Per Share
- 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.
Third Quarter Financial Highlights
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||||
|
September 30, |
|
September 30, |
||||||||||||||||||
In millions of |
|
2024 |
|
|
|
2023 |
|
|
YoY % Change |
|
|
2024 |
|
|
|
2023 |
|
|
YoY % Change |
||
Total Revenue |
$ |
91.5 |
|
|
$ |
103.9 |
|
|
(12 |
%) |
|
$ |
259.5 |
|
|
$ |
288.8 |
|
|
(10 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Gross Margin |
$ |
51.0 |
|
|
$ |
62.7 |
|
|
(19 |
%) |
|
$ |
141.8 |
|
|
$ |
170.7 |
|
|
(17 |
%) |
Gross Margin (%) |
|
55.8 |
% |
|
|
60.4 |
% |
|
|
|
|
54.6 |
% |
|
|
59.1 |
% |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total Adjusted EBITDA(1)(2) |
$ |
38.7 |
|
|
$ |
50.5 |
|
|
(23 |
%) |
|
$ |
101.7 |
|
|
$ |
118.8 |
|
|
(14 |
%) |
Total Adjusted EBITDA Margin (%)(1)(2) |
|
42.3 |
% |
|
|
48.6 |
% |
|
|
|
|
39.2 |
% |
|
|
41.1 |
% |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net Income(3) |
$ |
13.9 |
|
|
$ |
12.0 |
|
|
16 |
% |
|
$ |
20.8 |
|
|
$ |
22.8 |
|
|
(9 |
%) |
Diluted Net Income Per Share(3) |
$ |
0.26 |
|
|
$ |
0.22 |
|
|
18 |
% |
|
$ |
0.39 |
|
|
$ |
0.41 |
|
|
(5 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted Net Income(1)(3) |
$ |
18.9 |
|
|
$ |
19.4 |
|
|
(3 |
%) |
|
$ |
36.5 |
|
|
$ |
42.8 |
|
|
(15 |
%) |
Adjusted Earnings Per Share(1)(3) |
$ |
0.35 |
|
|
$ |
0.35 |
|
|
— |
% |
|
$ |
0.68 |
|
|
$ |
0.77 |
|
|
(12 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted average shares outstanding (in millions): |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic |
|
52.7 |
|
|
|
54.6 |
|
|
(4 |
%) |
|
|
52.6 |
|
|
|
54.4 |
|
|
(3 |
%) |
Diluted |
|
54.1 |
|
|
|
55.5 |
|
|
(3 |
%) |
|
|
53.6 |
|
|
|
55.3 |
|
|
(3 |
%) |
|
Third Quarter Segment Results(1)
|
Content Solutions |
|
Technology Products and Services |
||||||||||||||||||
|
Revenue |
|
Gross Margin |
|
Gross Margin % |
|
Revenue |
|
Gross Margin |
|
Gross Margin % |
||||||||||
3Q24 |
$ |
30.1 |
|
|
$ |
16.4 |
|
|
55 |
% |
|
$ |
58.0 |
|
|
$ |
32.0 |
|
|
55 |
% |
3Q23 |
|
44.2 |
|
|
|
26.4 |
|
|
60 |
% |
|
|
56.2 |
|
|
|
33.8 |
|
|
60 |
% |
% change |
|
(32 |
%) |
|
|
(38 |
%) |
|
|
|
|
3 |
% |
|
|
(5 |
%) |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
YTD24 |
$ |
99.2 |
|
|
$ |
54.7 |
|
|
55 |
% |
|
$ |
152.0 |
|
|
$ |
81.3 |
|
|
54 |
% |
YTD23 |
|
107.6 |
|
|
|
64.4 |
|
|
60 |
% |
|
|
171.8 |
|
|
|
100.1 |
|
|
58 |
% |
% change |
|
(8 |
%) |
|
|
(15 |
%) |
|
|
|
|
(12 |
%) |
|
|
(19 |
%) |
|
|
||
|
Content Solutions Segment
-
Content Solutions revenues of
decreased$30 million 32% year-over-year driven by the mix of content, which included “Oppenheimer” — the Company’s fifth highest grossing title of all time — in the year prior. Despite the decline, the third quarter 2024 was the third highest grossing third quarter in IMAX history
-
Gross margin for Content Solutions of
decreased$16 million 38% compared to the third quarter of the prior year period.
Technology Products and Services Segment
-
Technology Products and Services revenues and gross margin increased
3% year-over-year to and decreased$58 million 5% year-over-year to , respectively, driven by system installation growth that is outpacing the prior year and offset the lower box office related rental revenue.$32 million
-
During the third quarter the Company installed 49 systems compared to 30 systems in the third quarter of 2023, an increase of
63% year-over-year. Of those, 20 systems were under sales arrangements, compared to 16 systems in the prior year.
-
Commercial network growth continues with the number of IMAX locations increasing
4% year-over-year to 1,714 systems. The Company ended Q3 2024 with a backlog of 472 IMAX systems.
Operating Cash Flow and Liquidity
Net cash provided by operating activities for year-to-date September 2024 was
As of September 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 third quarter of 2024 were 52.7 million and 54.1 million, respectively, compared to 54.6 million and 55.5 million in the third quarter of 2023, a decrease of
For the nine months ended September 30, 2024, the Company repurchased 1,166,370 common shares at an average price of
The Company is authorized under its share-repurchase program, expiring June 30, 2026 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 4:30 PM ET to discuss its third 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/BId903a31ed4674fefba1f8b3fdf34072c 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).
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 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:
- 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.
- 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 |
|
Nine Months Ended |
||||
|
September 30, |
|
September 30, |
||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
System Signings(1): |
|
|
|
|
|
|
|
Sales Arrangements |
10 |
|
13 |
|
40 |
|
54 |
Traditional JRSA |
6 |
|
7 |
|
71 |
|
40 |
Total IMAX System Signings |
16 |
|
20 |
|
111 |
|
94 |
|
|
Three Months Ended |
|
Nine Months Ended |
||||
|
September 30, |
|
September 30, |
||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
System Installations(1): |
|
|
|
|
|
|
|
Sales Arrangements |
20 |
|
16 |
|
35 |
|
35 |
Hybrid JRSA |
— |
|
— |
|
1 |
|
2 |
Traditional JRSA |
29 |
|
14 |
|
52 |
|
22 |
Total IMAX System Installations |
49 |
|
30 |
|
88 |
|
59 |
|
|
As of September 30, |
||
|
2024 |
|
2023 |
System Backlog: |
|
|
|
Sales Arrangements |
170 |
|
192 |
Hybrid JRSA |
95 |
|
107 |
Traditional JRSA |
207 |
|
187 |
Total System Backlog |
472 |
|
486 |
|
|
|
|
|
As of September 30, |
||
|
2024 |
|
2023 |
System Network: |
|
|
|
Commercial Multiplex Systems |
|
|
|
Sales Arrangements |
820 |
|
743 |
Hybrid JRSA |
129 |
|
137 |
Traditional JRSA |
765 |
|
771 |
Total Commercial Multiplex Systems |
1,714 |
|
1,651 |
Commercial Destination Systems |
12 |
|
12 |
Institutional Systems |
62 |
|
68 |
Total System Network |
1,788 |
|
1,731 |
IMAX CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands of
(Unaudited)
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
September 30, |
|
September 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Revenues |
|
|
|
|
|
|
|
||||||||
Technology sales |
$ |
26,305 |
|
|
$ |
18,273 |
|
|
$ |
54,629 |
|
|
$ |
65,455 |
|
Image enhancement and maintenance services |
|
46,891 |
|
|
|
60,250 |
|
|
|
149,428 |
|
|
|
154,244 |
|
Technology rentals |
|
16,122 |
|
|
|
23,008 |
|
|
|
48,766 |
|
|
|
62,612 |
|
Finance income |
|
2,134 |
|
|
|
2,365 |
|
|
|
6,713 |
|
|
|
6,510 |
|
|
|
91,452 |
|
|
|
103,896 |
|
|
|
259,536 |
|
|
|
288,821 |
|
Costs and expenses applicable to revenues |
|
|
|
|
|
|
|
||||||||
Technology sales |
|
10,605 |
|
|
|
7,948 |
|
|
|
24,594 |
|
|
|
28,951 |
|
Image enhancement and maintenance services |
|
23,087 |
|
|
|
26,646 |
|
|
|
73,371 |
|
|
|
69,470 |
|
Technology rentals |
|
6,741 |
|
|
|
6,587 |
|
|
|
19,736 |
|
|
|
19,747 |
|
|
|
40,433 |
|
|
|
41,181 |
|
|
|
117,701 |
|
|
|
118,168 |
|
Gross margin |
|
51,019 |
|
|
|
62,715 |
|
|
|
141,835 |
|
|
|
170,653 |
|
Selling, general and administrative expenses |
|
31,466 |
|
|
|
36,282 |
|
|
|
100,287 |
|
|
|
109,336 |
|
Research and development |
|
(265 |
) |
|
|
2,771 |
|
|
|
3,953 |
|
|
|
7,388 |
|
Amortization of intangible assets |
|
1,544 |
|
|
|
1,107 |
|
|
|
4,208 |
|
|
|
3,328 |
|
Credit loss (reversal) expense, net |
|
(1,137 |
) |
|
|
523 |
|
|
|
(963 |
) |
|
|
1,589 |
|
Restructuring and executive transition costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,353 |
|
Income from operations |
|
19,411 |
|
|
|
22,032 |
|
|
|
34,350 |
|
|
|
47,659 |
|
Realized and unrealized investment gains |
|
32 |
|
|
|
364 |
|
|
|
94 |
|
|
|
436 |
|
Retirement benefits non-service expense |
|
(109 |
) |
|
|
(77 |
) |
|
|
(323 |
) |
|
|
(232 |
) |
Interest income |
|
625 |
|
|
|
738 |
|
|
|
1,720 |
|
|
|
1,838 |
|
Interest expense |
|
(2,240 |
) |
|
|
(1,483 |
) |
|
|
(6,467 |
) |
|
|
(5,045 |
) |
Income before taxes |
|
17,719 |
|
|
|
21,574 |
|
|
|
29,374 |
|
|
|
44,656 |
|
Income tax expense |
|
(2,376 |
) |
|
|
(6,555 |
) |
|
|
(3,538 |
) |
|
|
(14,901 |
) |
Net income |
|
15,343 |
|
|
|
15,019 |
|
|
|
25,836 |
|
|
|
29,755 |
|
Net income attributable to non-controlling interests |
|
(1,447 |
) |
|
|
(3,029 |
) |
|
|
(5,083 |
) |
|
|
(6,960 |
) |
Net income attributable to common shareholders |
$ |
13,896 |
|
|
$ |
11,990 |
|
|
$ |
20,753 |
|
|
$ |
22,795 |
|
|
|
|
|
|
|
|
|
||||||||
Net income per share attributable to common shareholders: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
0.26 |
|
|
$ |
0.22 |
|
|
$ |
0.39 |
|
|
$ |
0.42 |
|
Diluted |
$ |
0.26 |
|
|
$ |
0.22 |
|
|
$ |
0.39 |
|
|
$ |
0.41 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding (in thousands): |
|
|
|
|
|
|
|
||||||||
Basic |
|
52,682 |
|
|
|
54,618 |
|
|
|
52,605 |
|
|
|
54,424 |
|
Diluted |
|
54,089 |
|
|
|
55,535 |
|
|
|
53,628 |
|
|
|
55,261 |
|
|
|
|
|
|
|
|
|
||||||||
Additional Disclosure: |
|
|
|
|
|
|
|
||||||||
Depreciation and amortization |
$ |
14,900 |
|
|
$ |
19,279 |
|
|
$ |
48,902 |
|
|
$ |
46,477 |
|
Amortization of deferred financing costs |
$ |
493 |
|
|
$ |
492 |
|
|
$ |
1,478 |
|
|
$ |
1,742 |
|
IMAX CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands of dollars, except share amounts)
(Unaudited)
|
September 30, |
|
December 31, |
||||
|
|
2024 |
|
|
|
2023 |
|
Assets |
|
|
|
||||
Cash and cash equivalents |
$ |
104,504 |
|
|
$ |
76,200 |
|
Accounts receivable, net of allowance for credit losses |
|
114,193 |
|
|
|
136,259 |
|
Financing receivables, net of allowance for credit losses |
|
123,459 |
|
|
|
127,154 |
|
Variable consideration receivables, net of allowance for credit losses |
|
74,487 |
|
|
|
64,338 |
|
Inventories |
|
37,612 |
|
|
|
31,584 |
|
Prepaid expenses |
|
13,310 |
|
|
|
12,345 |
|
Film assets, net of accumulated amortization |
|
9,127 |
|
|
|
6,786 |
|
Property, plant and equipment, net of accumulated depreciation |
|
245,106 |
|
|
|
243,299 |
|
Other assets |
|
22,981 |
|
|
|
20,879 |
|
Deferred income tax assets, net of valuation allowance |
|
15,687 |
|
|
|
7,988 |
|
Goodwill |
|
52,815 |
|
|
|
52,815 |
|
Other intangible assets, net of accumulated amortization |
|
34,279 |
|
|
|
35,022 |
|
Total assets |
$ |
847,560 |
|
|
$ |
814,669 |
|
Liabilities |
|
|
|
||||
Accounts payable |
$ |
26,018 |
|
|
$ |
26,386 |
|
Accrued and other liabilities |
|
111,283 |
|
|
|
111,013 |
|
Deferred revenue |
|
53,676 |
|
|
|
67,105 |
|
Revolving credit facility borrowings, net of unamortized debt issuance costs |
|
46,239 |
|
|
|
22,924 |
|
Convertible notes and other borrowings, net of unamortized discounts and debt issuance costs |
|
230,038 |
|
|
|
229,131 |
|
Deferred income tax liabilities |
|
12,521 |
|
|
|
12,521 |
|
Total liabilities |
|
479,775 |
|
|
|
469,080 |
|
Commitments, contingencies and guarantees |
|
|
|
||||
Non-controlling interests |
|
674 |
|
|
|
658 |
|
Shareholders’ equity |
|
|
|
||||
Capital stock common shares — no par value. Authorized — unlimited number. 52,682,641 issued and outstanding (December 31, 2023 — 53,260,276 issued and outstanding) |
|
394,603 |
|
|
|
389,048 |
|
Other equity |
|
181,911 |
|
|
|
185,087 |
|
Statutory surplus reserve |
|
3,932 |
|
|
|
3,932 |
|
Accumulated deficit |
|
(279,993 |
) |
|
|
(292,845 |
) |
Accumulated other comprehensive loss |
|
(11,015 |
) |
|
|
(12,081 |
) |
Total shareholders’ equity attributable to common shareholders |
|
289,438 |
|
|
|
273,141 |
|
Non-controlling interests |
|
77,673 |
|
|
|
71,790 |
|
Total shareholders’ equity |
|
367,111 |
|
|
|
344,931 |
|
Total liabilities and shareholders’ equity |
$ |
847,560 |
|
|
$ |
814,669 |
|
IMAX CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands of dollars)
(Unaudited)
|
Nine Months Ended |
||||||
|
September 30, |
||||||
|
|
2024 |
|
|
|
2023 |
|
Operating Activities |
|
|
|
||||
Net income |
$ |
25,836 |
|
|
$ |
29,755 |
|
Adjustments to reconcile net income to cash provided by operating activities: |
|
|
|
||||
Depreciation and amortization |
|
48,902 |
|
|
|
46,477 |
|
Amortization of deferred financing costs |
|
1,478 |
|
|
|
1,742 |
|
Credit loss (reversal) expense, net |
|
(963 |
) |
|
|
1,589 |
|
Write-downs, including asset impairments |
|
3,034 |
|
|
|
872 |
|
Deferred income tax benefit |
|
(7,339 |
) |
|
|
(3,724 |
) |
Share-based and other non-cash compensation |
|
17,261 |
|
|
|
17,830 |
|
Unrealized foreign currency exchange (gain) loss |
|
(527 |
) |
|
|
52 |
|
Realized and unrealized investment gain |
|
(94 |
) |
|
|
(436 |
) |
Changes in assets and liabilities: |
|
|
|
||||
Accounts receivable |
|
23,001 |
|
|
|
(2,392 |
) |
Inventories |
|
(6,181 |
) |
|
|
(13,771 |
) |
Film assets |
|
(17,892 |
) |
|
|
(14,575 |
) |
Deferred revenue |
|
(13,393 |
) |
|
|
(4,670 |
) |
Changes in other operating assets and liabilities |
|
(13,771 |
) |
|
|
(4,141 |
) |
Net cash provided by operating activities |
|
59,352 |
|
|
|
54,608 |
|
Investing Activities |
|
|
|
||||
Purchase of property, plant and equipment |
|
(3,816 |
) |
|
|
(2,541 |
) |
Investment in equipment for joint revenue sharing arrangements |
|
(21,728 |
) |
|
|
(10,705 |
) |
Acquisition of other intangible assets |
|
(4,802 |
) |
|
|
(5,418 |
) |
Net cash used in investing activities |
|
(30,346 |
) |
|
|
(18,664 |
) |
Financing Activities |
|
|
|
||||
Revolving credit facility borrowings |
|
55,000 |
|
|
|
31,032 |
|
Repayments of revolving credit facility borrowings |
|
(32,000 |
) |
|
|
(43,057 |
) |
Repayments of other borrowings |
|
(489 |
) |
|
|
— |
|
Proceeds from other borrowings |
|
— |
|
|
|
315 |
|
Repurchase of common shares |
|
(18,102 |
) |
|
|
(4,263 |
) |
Taxes withheld and paid on employee stock awards vested |
|
(4,978 |
) |
|
|
(6,458 |
) |
Common shares issued - stock options exercised |
|
98 |
|
|
|
— |
|
Principal payment under finance lease obligations |
|
(480 |
) |
|
|
(480 |
) |
Dividends paid to non-controlling interests |
|
— |
|
|
|
(1,438 |
) |
Net cash used in financing activities |
|
(951 |
) |
|
|
(24,349 |
) |
Effects of exchange rate changes on cash |
|
249 |
|
|
|
607 |
|
Increase in cash and cash equivalents during period |
|
28,304 |
|
|
|
12,202 |
|
Cash and cash equivalents, beginning of period |
|
76,200 |
|
|
|
97,401 |
|
Cash and cash equivalents, end of period |
$ |
104,504 |
|
|
$ |
109,603 |
|
Segment Revenue and Gross Margin
|
Three Months Ended |
|
Nine Months Ended |
||||||||
|
September 30, |
|
September 30, |
||||||||
(In thousands of dollars) |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
Revenue |
|
|
|
|
|
|
|
||||
Content Solutions |
$ |
30,129 |
|
$ |
44,214 |
|
$ |
99,218 |
|
$ |
107,605 |
Technology Products and Services |
|
57,971 |
|
|
56,169 |
|
|
152,019 |
|
|
171,813 |
Sub-total for reportable segments |
|
88,100 |
|
|
100,383 |
|
|
251,237 |
|
|
279,418 |
All Other(1) |
|
3,352 |
|
|
3,513 |
|
|
8,299 |
|
|
9,403 |
Total |
$ |
91,452 |
|
$ |
103,896 |
|
$ |
259,536 |
|
$ |
288,821 |
|
|
|
|
|
|
|
|
||||
Gross Margin |
|
|
|
|
|
|
|
||||
Content Solutions |
$ |
16,449 |
|
$ |
26,407 |
|
$ |
54,686 |
|
$ |
64,397 |
Technology Products and Services |
|
31,964 |
|
|
33,761 |
|
|
81,331 |
|
|
100,066 |
Sub-total for reportable segments |
|
48,413 |
|
|
60,168 |
|
|
136,017 |
|
|
164,463 |
All Other(1) |
|
2,606 |
|
|
2,547 |
|
|
5,818 |
|
|
6,190 |
Total |
$ |
51,019 |
|
$ |
62,715 |
|
$ |
141,835 |
|
$ |
170,653 |
|
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 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 |
September 30, 2024 |
|
September 30, 2023 |
||||
Revenues |
$ |
91,452 |
|
|
$ |
103,896 |
|
Reported net income |
$ |
15,343 |
|
|
$ |
15,019 |
|
Add (subtract): |
|
|
|
||||
Income tax expense |
|
2,376 |
|
|
|
6,555 |
|
Interest expense, net of interest income |
|
1,123 |
|
|
|
253 |
|
Depreciation and amortization, including film asset amortization |
|
14,900 |
|
|
|
19,279 |
|
Amortization of deferred financing costs(1) |
|
493 |
|
|
|
492 |
|
EBITDA |
$ |
34,235 |
|
|
$ |
41,598 |
|
Share-based and other non-cash compensation |
|
5,508 |
|
|
|
5,297 |
|
Unrealized investment gains |
|
(32 |
) |
|
|
(364 |
) |
Transaction-related expenses |
|
— |
|
|
|
3,086 |
|
Write-downs, including asset impairments and credit loss expense |
|
(1,025 |
) |
|
|
921 |
|
Total Adjusted EBITDA |
$ |
38,686 |
|
|
$ |
50,538 |
|
Total Adjusted EBITDA margin |
|
42.3 |
% |
|
|
48.6 |
% |
Less: Non-controlling interest |
|
(3,116 |
) |
|
|
(5,455 |
) |
Adjusted EBITDA per Credit Facility - attributable to common shareholders |
$ |
35,570 |
|
|
$ |
45,083 |
|
|
|
Twelve Months Ended |
||||||
(In thousands of |
September 30, 2024(1) |
|
September 30, 2023(1) |
||||
Revenues |
$ |
345,554 |
|
|
$ |
386,867 |
|
Reported net income |
$ |
29,147 |
|
|
$ |
33,836 |
|
Add (subtract): |
|
|
|
||||
Income tax expense |
|
1,688 |
|
|
|
16,917 |
|
Interest expense, net of interest income |
|
3,907 |
|
|
|
2,024 |
|
Depreciation and amortization, including film asset amortization |
|
62,447 |
|
|
|
60,475 |
|
Amortization of deferred financing costs(2) |
|
1,970 |
|
|
|
2,454 |
|
EBITDA |
$ |
99,159 |
|
|
$ |
115,706 |
|
Share-based and other non-cash compensation |
|
23,661 |
|
|
|
25,893 |
|
Unrealized investment gains |
|
(123 |
) |
|
|
(407 |
) |
Transaction-related expenses |
|
327 |
|
|
|
3,408 |
|
Restructuring and executive transition costs |
|
1,593 |
|
|
|
1,353 |
|
Write-downs, including asset impairments and credit loss expense |
|
2,359 |
|
|
|
4,328 |
|
Total Adjusted EBITDA |
$ |
126,976 |
|
|
$ |
150,281 |
|
Total Adjusted EBITDA margin |
|
36.7 |
% |
|
|
38.8 |
% |
Less: Non-controlling interest |
$ |
(13,422 |
) |
|
$ |
(17,363 |
) |
Adjusted EBITDA per Credit Facility - attributable to common shareholders |
$ |
113,554 |
|
|
$ |
132,918 |
|
|
Adjusted Net Income Attributable to Common Shareholders and Adjusted Net Income Per Share
|
Three Months Ended September 30, 2024 |
|
Three Months Ended September 30, 2023 |
||||||||||||
(In thousands of |
Net Income |
|
Per Diluted Share |
|
Net Income |
|
Per Diluted Share |
||||||||
Net income attributable to common shareholders |
$ |
13,896 |
|
|
$ |
0.26 |
|
|
$ |
11,990 |
|
|
$ |
0.22 |
|
Adjustments(1): |
|
|
|
|
|
|
|
||||||||
Share-based compensation |
|
5,332 |
|
|
|
0.10 |
|
|
|
5,063 |
|
|
|
0.09 |
|
Unrealized investment gains |
|
(32 |
) |
|
|
— |
|
|
|
(454 |
) |
|
|
(0.01 |
) |
Transaction-related expenses |
|
— |
|
|
|
— |
|
|
|
3,086 |
|
|
|
0.06 |
|
Tax impact on items listed above |
|
(341 |
) |
|
|
(0.01 |
) |
|
|
(275 |
) |
|
|
— |
|
Adjusted net income(1) |
$ |
18,855 |
|
|
$ |
0.35 |
|
|
$ |
19,410 |
|
|
$ |
0.35 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding — basic |
|
|
|
52,682 |
|
|
|
|
|
54,618 |
|
||||
Weighted average shares outstanding — diluted |
|
|
|
54,089 |
|
|
|
|
|
55,535 |
|
-
Reflects amounts attributable to common shareholders.
|
Nine Months Ended September 30, |
||||||||||||||
|
2024 |
|
|
2023 |
|
||||||||||
(In thousands of |
Net Income |
|
Per Share |
|
Net Income |
|
Per Share |
||||||||
Net income attributable to common shareholders |
$ |
20,753 |
|
|
$ |
0.39 |
|
|
$ |
22,795 |
|
|
$ |
0.41 |
|
Adjustments(1): |
|
|
|
|
|
|
|
||||||||
Share-based compensation |
|
16,686 |
|
|
|
0.30 |
|
|
|
17,110 |
|
|
|
0.31 |
|
Unrealized investment gains |
|
(94 |
) |
|
|
— |
|
|
|
(526 |
) |
|
|
(0.01 |
) |
Transaction-related expenses |
|
— |
|
|
|
— |
|
|
|
3,242 |
|
|
|
0.06 |
|
Restructuring and executive transition costs |
|
— |
|
|
|
— |
|
|
|
1,353 |
|
|
|
0.02 |
|
Tax impact on items listed above |
|
(803 |
) |
|
|
(0.01 |
) |
|
|
(1,184 |
) |
|
|
(0.02 |
) |
Adjusted net income(1) |
$ |
36,542 |
|
|
$ |
0.68 |
|
|
$ |
42,790 |
|
|
$ |
0.77 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding — basic |
|
|
|
52,605 |
|
|
|
|
|
54,424 |
|
||||
Weighted average shares outstanding — diluted |
|
|
|
53,628 |
|
|
|
|
|
55,261 |
|
||||
|
Free Cash Flow
|
Nine Months Ended |
||||||
|
September 30, |
||||||
(In thousands of |
|
2024 |
|
|
|
2023 |
|
Net cash provided by operating activities |
$ |
59,352 |
|
|
$ |
54,608 |
|
Purchase of property, plant and equipment |
|
(3,816 |
) |
|
|
(2,541 |
) |
Acquisition of other intangible assets |
|
(4,802 |
) |
|
|
(5,418 |
) |
Free cash flow before growth CAPEX(1) |
|
50,734 |
|
|
|
46,649 |
|
Investment in equipment for joint revenue sharing arrangements |
|
(21,728 |
) |
|
|
(10,705 |
) |
Free cash flow |
$ |
29,006 |
|
|
$ |
35,944 |
|
- Growth CAPEX is defined as capital expenditures associated with investments in equipment for joint revenue sharing arrangements.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241030263871/en/
Investors:
IMAX Corporation,
Jennifer Horsley
212-821-0154
jhorsley@imax.com
Media:
IMAX Corporation,
Mark Jafar
212-821-0102
mjafar@imax.com
Source: IMAX Corporation
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