- Global entertainment platform delivers Q4 Net Income of $5
million (+112% YoY), at a 5.7% margin, EPS(1) of 10 cents (+100%
YoY), Adjusted EPS of 27 cents (+59% YoY) and Total Adjusted
EBITDA(2) of $37 million (+48% YoY) at a 40% margin.
- Full-Year Net Income of $26 million (+3% YoY) at a 7.4% margin,
Total Adjusted EBITDA of $139 million (-4% YoY) at a 39.4% margin
(in line with guidance of high 30’s) and Cash from Operations of
$71 million (+21% YoY).
- IMAX delivers 146 system installations for the full year, at
the high-end of initial installation guidance of 120 to 150.
- To start 2025, IMAX smashes box office record for Chinese New
Year slate with $130 million and counting — already up over 90%
from the previous best — led by “Ne Zha 2,” now the highest
grossing IMAX release of all time in China.
- IMAX expects in 2025 to deliver a record box office of more
than $1.2 billion along with Total Adjusted EBITDA margin(3) of
40%+ and system installations of 145 to 160.
IMAX Corporation (NYSE: IMAX) today reported solid financial
results for the fourth quarter and full-year of 2024, demonstrating
the value of its unique global entertainment platform and broad
content portfolio.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20250219198942/en/
An infographic highlighting IMAX's recent
quarter. (Graphic: Business Wire)
“IMAX’s record-breaking Chinese New Year demonstrates the unique
advantages of our model – a richly diversified content portfolio
featuring the biggest Hollywood and local language blockbusters,
and a global network that allows us to capitalize on box office
momentum anywhere in the world,” said Rich Gelfond, CEO of
IMAX.
“2025 is already living up to its significant promise and yet
the bigger opportunity is still in front of us, with more Filmed
for IMAX® releases than ever in 2025 and arguably an even stronger
slate ahead in 2026. In China, the turnaround we’re witnessing this
year has been dramatic; in less than two months, our Chinese local
language box office has already exceeded the entirety of 2024."
“In 2024, IMAX further strengthened its position at the center
of global entertainment – expanding the roster of filmmakers
working with our technology, strengthening our studio marketing,
hitting the high-end of our installation guidance, and innovating
to expand our programming – including our deal with Netflix for the
release of Greta Gerwig’s ‘Narnia’ across the IMAX global network
in advance of its debut on the service.”
“With the headwinds we faced in China in 2024 beginning to lift,
we’re poised to build on the Fourth Quarter’s significant
double-digit growth in adjusted EBITDA and earnings per share. We
look forward to capitalizing on the promising opportunity ahead to
achieve a record year at the global box office and strong returns
for our shareholders.”
_______________
(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.
(3)
IMAX has not provided a quantitative
reconciliation of its Total Adjusted EBITDA margin outlook to a
GAAP net income margin outlook because it is unable, without making
unreasonable efforts, to project certain reconciling items. These
items include, but are not limited to share-based and other
non-cash compensation, unrealized investment gains,
transaction-related expenses, restructuring and other charges, and
write-downs, including asset impairments and credit loss reversal.
These items are inherently variable and uncertain and depend on
various factors, some of which are outside of the IMAX’s control or
ability to predict. For more information regarding the Company’s
use of non-GAAP financial measures, please see the section titled
“Non-GAAP Financial Measures” below.
Fourth Quarter and Full-Year Financial Highlights
Three Months Ended December
31,
(Unaudited)
Years Ended December
31,
In millions of U.S. Dollars, except per
share data
2024
2023
YoY %
Change
2024
2023
YoY %
Change
Total Revenue
$
92.7
$
86.0
8
%
$
352.2
$
374.8
(6
%)
Gross Margin
$
48.4
$
43.7
11
%
$
190.2
$
214.3
(11
%)
Gross Margin (%)
52.2
%
50.8
%
54.0
%
57.2
%
Total Adjusted EBITDA(1)(2)
$
37.2
$
25.2
48
%
$
138.9
$
144.0
(4
%)
Total Adjusted EBITDA Margin (%)(1)(2)
40.1
%
29.3
%
39.4
%
38.4
%
Net Income(3)
$
5.3
$
2.5
112
%
$
26.1
$
25.3
3
%
Diluted Net Income Per Share(3)
$
0.10
$
0.05
100
%
$
0.48
$
0.46
4
%
Adjusted Net Income(1)(3)
$
14.5
$
9.3
56
%
$
51.0
$
52.1
(2
%)
Adjusted Earnings Per Share(1)(3)
$
0.27
$
0.17
59
%
$
0.95
$
0.94
1
%
Weighted average shares outstanding (in
millions):
Basic
52.8
54.0
(2
%)
52.6
54.3
(3
%)
Diluted
54.7
55.0
(1
%)
53.9
55.1
(2
%)
_______________
(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 $34.2 million and $124.7 million for
the three months and year ended December 31, 2024 (2023 - $23.0
million and $128.1 million). The Company’s Credit Facility covenant
is calculated on a trailing twelve month basis.
(3)
Attributable to common shareholders.
Fourth Quarter and Full-Year Segment
Results(1)
Content Solutions
Technology Products and
Services
Revenue
Gross Margin
Gross
Margin %
Revenue
Gross Margin
Gross
Margin %
4Q24
$
25.5
$
11.8
46
%
$
64.0
$
34.2
53
%
4Q23
19.1
9.7
51
%
62.5
29.9
48
%
% change
34
%
22
%
2
%
15
%
FY24
$
124.7
$
66.5
53
%
$
216.1
$
115.6
53
%
FY23
126.7
74.1
58
%
234.3
129.9
55
%
% change
(2
%)
(10
%)
(8
%)
(11
%)
_______________
(1)
Please refer to the Company’s Form 10-K
for the year ended December 31, 2024 for additional segment
information.
Content Solutions Segment
- Fourth quarter Content Solutions revenues and gross margin
increased 34% year-over-year to $26 million, and increased 22%
year-over-year to $12 million, respectively, driven by higher box
office, and highlighted by record Thanksgiving weekend box office
of $24 million.
- Fourth quarter box office of $204 million increased 20%
year-over-year and helped propel IMAX to near-record annual
domestic box office. Top grossing fourth quarter titles included
Gladiator 2 ($31 million), Venom: The Last Dance ($31 million),
Mufasa: The Lion King ($26 million) and Interstellar ($20
million)
Technology Products and Services Segment
- Fourth quarter Technology Products and Services revenues and
gross margin increased 2% to $64 million and increased 15% to $34
million year-over-year, respectively, driven by higher box office
related rental revenue that more than offset a lower level of sales
type system installations year-over-year.
- During the fourth quarter of 2024, the Company installed 58
systems, compared to 69 systems in the fourth quarter of 2023,
resulting in 146 system installations in the full year versus 128
system installations in the prior year. Of those, 28 systems in the
fourth quarter and 63 in the full year were under sales
arrangements, compared to 35 and 70 systems in the prior year,
respectively.
- Commercial network growth continues with the number of IMAX
locations increasing 2.5% year-over-year to 1,735 systems. The
Company ended 2024 with a backlog of 440 IMAX systems.
Operating Cash Flow and
Liquidity
Net cash provided by operating activities for full year 2024 was
$71 million, compared to $59 million in the prior year period,
reflecting improvements in working capital driven by higher
collections.
As of December 31, 2024, the Company’s available liquidity was
$418 million. The Company’s liquidity includes cash and cash
equivalents of $101 million, $263 million in available borrowing
capacity under the Credit Facility, and $54 million in available
borrowing capacity under IMAX China’s revolving facilities. Total
debt, excluding deferred financing costs, was $269 million as of
December 31, 2024.
In 2021, the Company issued $230.0 million of 0.500% Convertible
Senior Notes due 2026 (“Convertible Notes”). In connection with the
pricing of the Convertible Notes, the Company entered into
privately negotiated capped call transactions with an initial cap
price of $37.2750 per share of the Company’s common shares.
Share Count and Capital
Return
The weighted average basic and diluted shares outstanding in the
fourth quarter of 2024 were 52.8 million and 54.7 million,
respectively, compared to 54.0 million and 55.0 million in the
fourth quarter of 2023, a decrease of 2.2% and 0.5%,
respectively.
For the year ended December 31, 2024, the Company repurchased
1,166,370 common shares at an average price of $13.99 for a total
of $16 million, excluding commissions.
The Company is authorized under its share-repurchase program,
expiring June 30, 2026 to repurchase up to $400 million of its
common shares, of which approximately $151 million remains
available.
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 websites 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.
References to our website address and domain names throughout this
release are for informational purposes only, or to fulfill specific
disclosure requirements of the Securities and Exchange Commission’s
rules or The New York Stock Exchange Listing Standards. These
references are not intended to, and do not, incorporate the
contents of our websites by reference into this release.
Conference Call
The Company will host a conference call today at 4:30 PM ET to
discuss its fourth quarter and full-year 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/BI5416215ae6134b378b06870a2fb47726
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 New York, Toronto, and Los Angeles,
with additional offices in London, Dublin, Tokyo, and Shanghai. As
of December 31, 2024, there were 1,807 IMAX systems (1,735
commercial multiplexes, 11 commercial destinations, 61
institutional) operating in 90 countries and territories. Shares of
IMAX China Holding, Inc., a subsidiary of IMAX Corporation, trade
on the Hong Kong Stock Exchange under the stock code “1970”.
IMAX®, IMAX 3D®, Experience It In IMAX®, The IMAX Experience®,
DMR®, Filmed For IMAX®, IMAX Live®, IMAX Enhanced® and IMAX
StreamSmart™ are trademarks and trade names of the Company 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 the United States and Canada, as well as geopolitical
conflicts; risks related to the Company’s growth and operations in
China; the performance of IMAX remastered films and other films
released to the IMAX network; the signing of IMAX System
agreements; conditions, changes and developments in the commercial
exhibition industry; risks related to currency fluctuations; the
potential impact of increased competition in the markets within
which the Company operates, including competitive actions by other
companies; the failure to respond to change and advancements in
technology; risks relating to consolidation among commercial
exhibitors and studios; risks related to brand extensions and new
business initiatives; conditions in the in-home and out-of-home
entertainment industries; the opportunities (or lack thereof) that
may be presented to and pursued by the Company; risks related to
cyber-security and data privacy; risks related to the Company’s
inability to protect the Company’s intellectual property; risks
associated with the Company’s use of artificial intelligence and
exploration of additional use cases of artificial intelligence;
risks related to climate change; risks related to weather
conditions and natural disasters that may disrupt or harm the
Company’s business; risks related to the Company’s indebtedness and
compliance with its debt agreements; general economic, market or
business conditions; risks related to political, economic and
social instability; the failure to convert system backlog into
revenue; changes in laws or regulations; any statements of belief
and any statements of assumptions underlying any of the foregoing;
other factors and risks outlined in the Company’s periodic filings
with the SEC; and other factors, many of which are beyond the
control of the Company. Consequently, all of the forward-looking
statements made in this earnings release are qualified by these
cautionary statements, and actual results or anticipated
developments by the Company may not be realized, and even if
substantially realized, may not have the expected consequences to,
or effects on, the Company. These factors, other risks and
uncertainties and financial details are discussed in the Company’s
most recent Annual Report on Form 10-K. The Company undertakes no
obligation to update publicly or otherwise revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
IMAX Network and Backlog
Three Months Ended
Years Ended
December 31,
December 31,
2024
2023
2024
2023
System Signings(1):
Sales Arrangements
14
10
54
64
Traditional JRSA
5
25
76
65
Total IMAX System Signings
19
35
130
129
(1) System signings include new signings
of 15 in Q4 2024 and 32 in Q4 2023, and 57 in 2024 and 108 in
2023.
Three Months Ended
Years Ended
December 31,
December 31,
2024
2023
2024
2023
System Installations(1):
Sales Arrangements
27
35
63
70
Hybrid JRSA
—
3
—
5
Traditional JRSA
31
31
83
53
Total IMAX System Installations
58
69
146
128
(1) System installations include new
systems installations of 32 in Q4 2024, 47 in Q4 2023, 77 in 2024
and 86 in 2023.
As of December 31,
2024
2023
System Backlog:
Sales Arrangements
164
164
Hybrid JRSA
94
103
Traditional JRSA
182
183
Total System Backlog
440
450
As of December 31,
2024
2023
System Network:
Commercial Multiplex Systems
Sales Arrangements
838
769
Hybrid JRSA
126
138
Traditional JRSA
771
786
Total Commercial Multiplex Systems
1,735
1,693
Commercial Destination Systems
11
12
Institutional Systems
61
67
Total System Network
1,807
1,772
IMAX CORPORATION
CONSOLIDATED STATEMENTS OF
OPERATIONS
(In thousands of U.S. dollars,
except per share amounts)
Three Months Ended
Years Ended
December 31,
(Unaudited)
December 31,
2024
2023
2024
2023
Revenues
Technology sales
$
33,136
$
35,337
$
87,765
$
100,792
Image enhancement and maintenance
services
42,769
35,508
192,197
189,752
Technology rentals
13,794
12,954
62,560
75,566
Finance income
2,973
2,219
9,686
8,729
92,672
86,018
352,208
374,839
Costs and expenses applicable to
revenues
Technology sales
13,641
17,805
38,235
46,756
Image enhancement and maintenance
services
23,187
18,586
96,558
88,056
Technology rentals
7,479
5,939
27,215
25,686
44,307
42,330
162,008
160,498
Gross margin
48,365
43,688
190,200
214,341
Selling, general and administrative
expenses
32,414
35,070
132,701
144,406
Research and development
1,150
2,722
5,103
10,110
Amortization of intangible assets
1,550
1,250
5,758
4,578
Credit loss (reversal) expense, net
(10
)
170
(973
)
1,759
Asset impairments
—
144
—
144
Restructuring and other charges
3,749
1,593
3,749
2,946
Income from operations
9,512
2,739
43,862
50,398
Realized and unrealized investment
gains
33
29
127
465
Retirement benefits non-service
expense
(64
)
(179
)
(387
)
(411
)
Interest income
460
648
2,180
2,486
Interest expense
(1,617
)
(1,776
)
(8,084
)
(6,821
)
Income before taxes
8,324
1,461
37,698
46,117
Income tax (expense) benefit
(1,458
)
1,850
(4,996
)
(13,051
)
Net income
6,866
3,311
32,702
33,066
Net income attributable to non-controlling
interests
(1,560
)
(771
)
(6,643
)
(7,731
)
Net income attributable to common
shareholders
$
5,306
$
2,540
$
26,059
$
25,335
Net income per share attributable to
common shareholders:
Basic
$
0.10
$
0.05
$
0.49
$
0.47
Diluted
$
0.10
$
0.05
$
0.48
$
0.46
Weighted average shares outstanding (in
thousands):
Basic
52,770
53,973
52,650
54,310
Diluted
54,706
54,983
53,864
55,146
Additional Disclosure:
Depreciation and amortization
$
16,601
$
13,545
$
65,503
$
60,022
Amortization of deferred financing
costs
$
492
$
493
$
1,969
$
2,235
IMAX CORPORATION
CONSOLIDATED BALANCE
SHEETS
(In thousands of U.S. dollars,
except share amounts)
December 31,
December 31,
2024
2023
Assets
Cash and cash equivalents
$
100,592
$
76,200
Accounts receivable, net of allowance for
credit losses
107,669
136,259
Financing receivables, net of allowance
for credit losses
119,885
127,154
Variable consideration receivables, net of
allowance for credit losses
82,593
64,338
Inventories
32,840
31,584
Prepaid expenses
13,121
12,345
Film assets, net of accumulated
amortization
8,686
6,786
Property, plant and equipment, net of
accumulated depreciation
240,133
243,299
Other assets
22,441
20,879
Deferred income tax assets, net of
valuation allowance
14,499
7,988
Goodwill
52,815
52,815
Other intangible assets, net of
accumulated amortization
35,124
35,022
Total assets
$
830,398
$
814,669
Liabilities
Accounts payable
$
19,803
$
26,386
Accrued and other liabilities
100,916
111,013
Deferred revenue
52,686
67,105
Revolving credit facility borrowings, net
of unamortized debt issuance costs
36,356
22,924
Convertible notes and other borrowings,
net of unamortized discounts and debt issuance costs
229,901
229,131
Deferred income tax liabilities
12,521
12,521
Total liabilities
452,183
469,080
Commitments, contingencies and
guarantees
Non-controlling interests
680
658
Shareholders’ equity
Capital stock common shares — no par
value. Authorized — unlimited number.
52,946,200 issued and outstanding
(December 31, 2023 — 53,260,276 issued and outstanding)
401,420
389,048
Other equity
185,268
185,087
Statutory surplus reserve
4,051
3,932
Accumulated deficit
(274,675
)
(292,845
)
Accumulated other comprehensive loss
(16,598
)
(12,081
)
Total shareholders’ equity attributable
to common shareholders
299,466
273,141
Non-controlling interests
78,069
71,790
Total shareholders’ equity
377,535
344,931
Total liabilities and shareholders’
equity
$
830,398
$
814,669
IMAX CORPORATION
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(In thousands of U.S.
dollars)
Years Ended
December 31,
2024
2023
Operating Activities
Net income
$
32,702
$
33,066
Adjustments to reconcile net income to
cash provided by operating activities:
Depreciation and amortization
65,503
60,022
Amortization of deferred financing
costs
1,969
2,235
Credit loss (reversal) expense, net
(973
)
1,759
Write-downs, including asset
impairments
3,973
1,884
Deferred income tax benefit
(5,631
)
(1,447
)
Share-based and other non-cash
compensation
23,209
24,230
Unrealized foreign currency exchange
gain
(2,770
)
(212
)
Realized and unrealized investment
gain
(127
)
(465
)
Changes in assets and liabilities:
Accounts receivable
29,105
(1,907
)
Inventories
(1,501
)
(285
)
Film assets
(25,122
)
(20,394
)
Deferred revenue
(14,308
)
(3,882
)
Changes in other operating assets and
liabilities
(35,192
)
(35,989
)
Net cash provided by operating
activities
70,837
58,615
Investing Activities
Purchase of property, plant and
equipment
(8,428
)
(6,491
)
Investment in equipment for joint revenue
sharing arrangements
(24,341
)
(18,000
)
Acquisition of other intangible assets
(8,447
)
(8,344
)
Proceeds from sale of equity
securities
—
1,045
Net cash used in investing
activities
(41,216
)
(31,790
)
Financing Activities
Proceeds from revolving credit facility
borrowings
55,000
39,717
Repayments of revolving credit facility
borrowings
(42,000
)
(53,248
)
Proceeds from other borrowings
—
322
Repayments of other borrowings
(874
)
(53
)
Credit facility amendment fees paid
—
(46
)
Repurchase of common shares, IMAX
Corporation
(17,855
)
(26,823
)
Repurchase of common shares, IMAX
China
(116
)
(15
)
Taxes withheld and paid on employee stock
awards vested
(4,978
)
(6,466
)
Common shares issued - stock options
exercised
5,291
—
Principal payment under finance lease
obligations
(509
)
(480
)
Dividends paid to non-controlling
interests
—
(1,438
)
Net cash used in financing
activities
(6,041
)
(48,530
)
Effects of exchange rate changes on
cash
812
504
Increase (decrease) in cash and cash
equivalents during year
24,392
(21,201
)
Cash and cash equivalents, beginning of
year
76,200
97,401
Cash and cash equivalents, end of
year
$
100,592
$
76,200
Primary Reporting Groups
The Company’s Chief Executive Officer (“CEO”) is its Chief
Operating Decision Maker (“CODM”), as such term is defined under
U.S. GAAP. The CODM assesses segment performance based on segment
revenues and segment gross margins. Selling, general and
administrative expenses, research and development costs, the
amortization of intangible assets, provision for (reversal of)
current expected credit losses, certain write-downs, interest
income, interest expense, and income tax (expense) benefit are not
allocated to the Company’s segments.
The Company has two reportable segments:
(i)
Content Solutions, consists of services
provided to studios and other content creators, 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 exhibition customers. 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.
Segment Revenue and Gross Margin
Three Months Ended
Years Ended
December 31,
(Unaudited)
December 31,
(In thousands of U.S. dollars)
2024
2023
2024
2023
Revenue
Content Solutions
$
25,513
$
19,093
$
124,731
$
126,698
Technology Products and Services
64,043
62,490
216,062
234,303
Sub-total for reportable segments
89,556
81,583
340,793
361,001
All Other(1)
3,116
4,435
11,415
13,838
Total
$
92,672
$
86,018
$
352,208
$
374,839
Gross Margin
Content Solutions
$
11,837
$
9,709
$
66,523
$
74,106
Technology Products and Services
34,222
29,880
115,553
129,946
Sub-total for reportable segments
46,059
39,589
182,076
204,052
All Other(1)
2,306
4,099
8,124
10,289
Total
$
48,365
$
43,688
$
190,200
$
214,341
_______________
(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 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 U.S. GAAP. Adjusted net income or loss
attributable to common shareholders and adjusted net income or loss
attributable to common shareholders per basic and diluted share
exclude, where applicable: (i) share-based compensation; (ii)
realized and unrealized investment gains or losses; (iii)
transaction-related expenses; and (iv) restructuring and other
charges, as well as the related tax impact of these
adjustments.
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 other charges costs; and (v)
write- downs, net of recoveries, including asset impairments and
credit loss expense or reversal.
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 U.S. GAAP, as a supplemental measure of the
Company’s liquidity. The Company definition of free cash flow
deducts only normal recurring capital expenditures, including the
Company’s investment in joint revenue sharing arrangements, the
purchase of property, plant and equipment and the acquisition of
other intangible assets (from the Consolidated Statements of Cash
Flows), from net cash provided by or used in operating activities.
Management believes that free cash flow is a supplemental measure
of the cash flow available to reduce debt, add to cash balances,
and fund other financing activities. Free cash flow does not
represent residual cash flow available for discretionary
expenditures. A reconciliation of cash provided by operating
activities to free cash flow is presented below.
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
(Unaudited)
(In thousands of U.S. Dollars)
December 31, 2024
December 31, 2023
Revenues
$
92,672
$
86,018
Reported net income
$
6,866
$
3,311
Add (subtract):
Income tax expense
1,458
(1,850
)
Interest expense, net of interest
income
665
636
Depreciation and amortization, including
film asset amortization
16,601
13,545
Amortization of deferred financing
costs(1)
492
493
EBITDA
$
26,082
$
16,135
Share-based and other non-cash
compensation
5,948
6,400
Unrealized investment gains
(33
)
(29
)
Transaction-related expenses
—
327
Restructuring and other charges(2)
3,749
1,593
Write-downs, including asset impairments
and credit loss reversal
1,452
812
Total Adjusted EBITDA
$
37,198
$
25,238
Total Adjusted EBITDA margin
40.1
%
29.3
%
Less: Non-controlling interest
(2,990
)
(2,221
)
Adjusted EBITDA per Credit Facility -
attributable to common shareholders
$
34,208
$
23,017
_______________
(1)
The amortization of deferred financing
costs is recorded within Interest Expense in the Condensed
Consolidated Statement of Operations.
(2)
Reflects restructuring related costs in
connection with capturing efficiencies, centralizing certain
operational roles and costs incurred in connection with the
Company’s internal asset sale.
Twelve Months Ended
(In thousands of U.S. Dollars)
December 31, 2024(1)
December 31, 2023(1)
Revenues
$
352,208
$
374,839
Reported net income
$
32,702
$
33,066
Add (subtract):
Income tax expense
4,996
13,051
Interest expense, net of interest
income
3,936
2,101
Depreciation and amortization, including
film asset amortization
65,503
60,022
Amortization of deferred financing
costs(2)
1,969
2,235
EBITDA
$
109,106
$
110,475
Share-based and other non-cash
compensation
23,209
24,230
Unrealized investment gains
(127
)
(465
)
Transaction-related expenses
—
3,569
Restructuring and other charges(3)
3,749
2,946
Write-downs, including asset impairments
and credit loss reversal
2,999
3,273
Total Adjusted EBITDA
$
138,936
$
144,028
Total Adjusted EBITDA margin
39.4
%
38.4
%
Less: Non-controlling interest
$
(14,191
)
$
(15,869
)
Adjusted EBITDA per Credit Facility -
attributable to common shareholders
$
124,745
$
128,159
_______________
(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)
Reflects restructuring related costs in
connection with capturing efficiencies, centralizing certain
operational roles and costs incurred in connection with the
Company’s internal asset sale.
Adjusted Net Income Attributable to Common Shareholders and
Adjusted Net Income Per Share
Three Months Ended
December 31, 2024
(Unaudited)
Three Months Ended
December 31, 2023
(In thousands of U.S. Dollars, except per
share amounts)
Net Income
Per Diluted
Share
Net Income
Per Diluted
Share
Net income attributable to common
shareholders
$
5,306
$
0.10
$
2,540
$
0.05
Adjustments(1):
Share-based compensation
5,768
0.11
6,074
0.11
Unrealized investment gains
(33
)
—
(32
)
—
Transaction-related expenses
—
—
119
—
Restructuring and other charges(2)
3,749
0.07
1,335
0.02
Tax impact on items listed above
(322
)
(0.01
)
(747
)
(0.01
)
Adjusted net income(1)
$
14,468
$
0.27
$
9,289
$
0.17
Weighted average shares outstanding (in
thousands):
Basic
52,770
53,973
Diluted
54,706
54,983
_______________
(1)
Reflects amounts attributable to common
shareholders.
Years Ended December
31,
2024
2023
(In thousands of U.S. Dollars, except per
share amounts)
Net Income
Per Diluted
Share
Net Income
Per Diluted
Share
Net income attributable to common
shareholders
$
26,059
$
0.48
$
25,335
$
0.46
Adjustments(1):
Share-based compensation
22,454
0.42
23,184
0.42
Unrealized investment gains
(127
)
—
(558
)
(0.01
)
Transaction-related expenses
—
—
3,361
0.06
Restructuring and other charges(2)
3,749
0.07
2,688
0.05
Tax impact on items listed above
(1,125
)
(0.02
)
(1,931
)
(0.04
)
Adjusted net income(1)
$
51,010
$
0.95
$
52,079
$
0.94
Weighted average shares outstanding (in
thousands):
Basic
52,650
54,310
Diluted
53,864
55,146
_______________
(1)
Reflects amounts attributable to common
shareholders.
(2)
Reflects restructuring related costs in
connection with capturing efficiencies, centralizing certain
operational roles and costs incurred in connection with the
Company’s internal asset sale.
Free Cash Flow
Years Ended
December 31,
(In thousands of U.S. Dollars)
2024
2023
Net cash provided by operating
activities
$
70,837
$
58,615
Purchase of property, plant and
equipment
(8,428
)
(6,491
)
Acquisition of other intangible assets
(8,447
)
(8,344
)
Free cash flow before growth CAPEX(1)
53,962
43,780
Investment in equipment for joint revenue
sharing arrangements
(24,341
)
(18,000
)
Free cash flow
$
29,621
$
25,780
_______________
(1)
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/20250219198942/en/
For additional information please contact:
Investors: IMAX Corporation, New York Jennifer Horsley
212-821-0154 jhorsley@IMAX.com
Media: IMAX Corporation, New York Mark Jafar 212-821-0102
mjafar@imax.com
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