- Global entertainment technology platform delivers over 25% YoY
growth in FY23 across Revenue, Net Income, Adjusted
EBITDA(1) and Adjusted EPS(1)(2)
- Full-Year GAAP EPS of $0.46, up
from a loss of ($0.40) in FY22;
Full-Year Adjusted EPS of $0.94, up
from $0.06 in FY22
- Net Income of $25 million in FY23
increased from a loss of $(23)
million in 2022 while Adjusted EBITDA(2)
increases to $128 million in FY23, up
52% from $84 million in FY22
- System sales activity increases 174% YoY to 129 signings
worldwide in FY23
- Company delivers on high end of guidance with 128 system
installations in FY23, up from 92 in FY22
- IMAX achieves global box office of approximately $1.1 billion, approaching previous record
- Full-Year cash from operations more than triples to
$59 million in FY23, up from
$17 million FY22
NEW
YORK, Feb. 27, 2024 /PRNewswire/ -- IMAX
Corporation (NYSE: IMAX) today reported financial results for the
Fourth Quarter and Full-Year 2023, highlighted by strong top and
bottom-line growth for the full-year.
"IMAX delivered excellent results in 2023 — we grew Net Income
by $48 million, Adjusted EPS by
88 cents, Adjusted EBITDA by 52%, and
system installations by nearly 40% — on the strength of
demand for our technology, our unique premium model, and a clear
preference among consumers worldwide for awe-inspiring IMAX
experiences," said Rich Gelfond, CEO
of IMAX.
"As the entertainment landscape transforms, it is clear that
IMAX is among its premier, in-demand destinations. We drove
significant expansion and diversification of our global footprint,
with a record 61 of our system installations coming from strategic
Rest of World markets such as Japan, South
Korea and Europe. Even as
we deliver an outsized share of the global box office, we estimate
the current IMAX network is only at 47% penetration — with the
opportunity to open nearly 2,000 additional locations
worldwide."
"Our strong network growth is a direct result of our global
content strategy, which has yielded the biggest and most diverse
portfolio of IMAX Experiences ever. 2023 saw IMAX deliver a record
at the North American box office, highest grossing year ever for
local language films and overall box office approaching our best
year ever. We are strategically managing our content portfolio to
drive greater share of Hollywood
releases, grow local language, accelerate our pipeline of IMAX
Documentaries, and push further into emerging verticals including
music and gaming, live experiences and recurring programming."
"Through our global technology platform, IMAX powers
awe-inspiring experiences for audiences around the world —
capitalizing on the limitlessness of human imagination and need for
shared experiences. We look forward to further capturing this
opportunity, growing our network and content portfolio, to deliver
results for our shareholders."
_______________
|
(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)
|
Attributable to common
shareholders.
|
Fourth Quarter and
December Full-Year Financial Highlights
|
|
|
|
Three Months
Ended
|
|
|
Year
Ended
|
|
|
December
31,
|
|
|
December
31,
|
In millions of U.S.
Dollars, except per share data
|
|
2023
|
|
|
2022
|
|
|
YoY %
Change
|
|
|
2023
|
|
|
2022
|
|
|
YoY %
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Revenue
|
|
$
|
86.0
|
|
|
$
|
98.0
|
|
|
(12 %)
|
|
|
$
|
374.8
|
|
|
$
|
300.8
|
|
|
25 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Margin
|
|
$
|
43.7
|
|
|
$
|
48.8
|
|
|
(11 %)
|
|
|
$
|
214.3
|
|
|
$
|
156.4
|
|
|
37 %
|
Gross Margin
(%)
|
|
|
51
|
%
|
|
|
50
|
%
|
|
|
|
|
|
57
|
%
|
|
|
52
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA -
attributable to common shareholders(1)(3)
|
|
$
|
23.0
|
|
|
$
|
27.8
|
|
|
(17 %)
|
|
|
$
|
128.2
|
|
|
$
|
84.5
|
|
|
52 %
|
Adjusted EBITDA Margin
(%) - attributable to common
shareholders(1)(3)
|
|
|
28
|
%
|
|
|
31
|
%
|
|
(8 %)
|
|
|
|
37
|
%
|
|
|
30
|
%
|
|
22 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Adjusted
EBITDA(1)(3)(4)
|
|
$
|
25.2
|
|
|
$
|
31.5
|
|
|
(20 %)
|
|
|
$
|
144.0
|
|
|
$
|
95.7
|
|
|
51 %
|
Total Adjusted EBITDA
Margin (%)(1)(3)(4)
|
|
|
29
|
%
|
|
|
32
|
%
|
|
(9 %)
|
|
|
|
38
|
%
|
|
|
32
|
%
|
|
21 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
(Loss)(2)
|
|
$
|
2.5
|
|
|
$
|
2.6
|
|
|
(3 %)
|
|
|
$
|
25.3
|
|
|
$
|
(22.8)
|
|
|
N/A
|
Net Income (Loss) per
share(2) - basic and diluted
|
|
$
|
0.05
|
|
|
$
|
0.05
|
|
|
|
—
|
|
|
$
|
0.46
|
|
|
$
|
(0.40)
|
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net
Income(1)(2)
|
|
$
|
9.3
|
|
|
$
|
10.6
|
|
|
(12 %)
|
|
|
$
|
52.1
|
|
|
$
|
3.2
|
|
|
N/A
|
Adjusted Earnings Per
Share(1)(2)
|
|
$
|
0.17
|
|
|
$
|
0.19
|
|
|
(11 %)
|
|
|
$
|
0.94
|
|
|
$
|
0.06
|
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding (in millions)(5):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
54.0
|
|
|
|
54.8
|
|
|
(2 %)
|
|
|
|
54.3
|
|
|
|
56.7
|
|
|
(4 %)
|
Diluted
|
|
|
55.0
|
|
|
|
55.7
|
|
|
(1 %)
|
|
|
|
55.1
|
|
|
|
57.4
|
|
|
(4 %)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
_______________
|
(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)
|
Attributable to common
shareholders.
|
|
|
(3)
|
Per Credit
Facility.
|
|
|
(4)
|
Total Adjusted EBITDA
is equivalent to Total Adjusted EBITDA Attributable to
Non-controlling Interests and Common Shareholders.
|
|
|
(5)
|
Reflects weighted
average shares outstanding used in Adjusted Earnings Per Share
calculation.
|
Fourth Quarter and
Full Year Segment Results(1)
|
|
|
|
Content
Solutions
|
|
|
Technology Products
and Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
Gross
Margin
|
|
|
Gross
Margin %
|
|
|
Revenue
|
|
|
Gross
Margin
|
|
|
Gross
Margin %
|
|
4Q23
|
|
$
|
19.1
|
|
|
$
|
9.7
|
|
|
|
51
|
%
|
|
$
|
62.5
|
|
|
|
$
|
29.9
|
|
|
|
48
|
%
|
4Q22
|
|
|
29.3
|
|
|
|
12.1
|
|
|
|
41
|
%
|
|
|
66.1
|
|
|
|
|
35.2
|
|
|
|
53
|
%
|
%
change
|
|
|
(35)
|
%
|
|
|
(20)
|
%
|
|
|
|
|
|
(5)
|
%
|
|
|
|
(15)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FY23
|
|
$
|
126.7
|
|
|
$
|
74.1
|
|
|
|
58
|
%
|
|
$
|
234.3
|
|
|
|
$
|
129.9
|
|
|
|
55
|
%
|
FY22
|
|
|
101.8
|
|
|
|
51.2
|
|
|
|
50
|
%
|
|
|
192.4
|
|
|
|
|
101.1
|
|
|
|
53
|
%
|
%
change
|
|
|
24
|
%
|
|
|
45
|
%
|
|
|
|
|
|
22
|
%
|
|
|
|
28
|
%
|
|
|
|
_______________
|
(1)
|
Please refer to the
Company's Form 10-K for the year ended December 31, 2023 for
additional segment information.
|
Content Solutions Segment
- Content Solutions revenue of $126.7
million increased 24% year-over-year for the full year 2023
while Q4 revenue of $19.1 million
decreased 35% year-over-year. Gross box office from IMAX locations
for full year 2023 of approximately $1.1
billion was up 25% while Q4 2023 of $170 million was down 32% year-over-year. IMAX
set numerous records for box office during 2023 including:
- Highest full year local language box office of $227 million
- Highest full year domestic box office of $393 million
- Highest Q3 box office of $347
million
- Gross margin for Content Solutions of $74.1 million for the full year 2023 increased
45% year-over-year while Q4 gross margin of $9.7 million decreased 20% year-over-year. The
Company saw significant margin expansion for the full year 2023 (up
800 basis points) and Q4 2023 (up 1000 basis points) driven by the
operating leverage in our business along with our disciplined cost
management.
Technology Products and Services Segment
- Technology Products and Services revenues and gross margin for
full year 2023 increased 22% year-over-year to $234.3 million and 28% year-over-year to
$129.9 million, respectively. Q4
revenue and gross margin decreased 5% year-over-year to
$62.5 million and 15% year-over-year
to $29.9 million, respectively.
- For the full year 2023 the Company installed 128 systems
compared to 92 systems in full year 2022. Of those, 75 systems were
under sales and hybrid JRSA arrangements, compared to 46 systems in
the prior year.
- During the fourth quarter the Company installed 69 systems
compared to 52 systems in the fourth quarter of 2022. Of those, 38
systems were under sales and hybrid JRSA arrangements, compared to
24 systems in the prior year.
- Commercial network growth accelerated with the number of IMAX
locations increasing 4% year-over-year to 1,693. The Company ended
2023 with a backlog of 450 IMAX systems.
Operating Cash Flow and Liquidity
Net cash provided by operating activities for full year 2023 was
$58.6 million compared to
$17.3 million in the prior period
with the increase reflecting the higher profits year-over-year and
improvements in working capital.
As of December 31, 2023, the
Company's available liquidity was $407
million. The Company's liquidity includes cash and cash
equivalents of $76 million,
$276 million in available borrowing
capacity under the Credit Facility, and $55
million in available borrowing capacity under IMAX China's
revolving facilities. Total debt, excluding deferred financing
costs, was $257 million as of
December 31, 2023.
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 used
in the calculation of adjusted EPS for the full year of 2023 were
54.3 million and 55.1 million, respectively, compared to 56.7
million and 57.4 million, respectively for the full year 2022, a
decrease year-over-year of 4% for both basic and diluted shares
outstanding.
For the full year 2023, the Company repurchased 1.6 million
common shares at an average price of $16.45 per share, for a total of $26.4 million, excluding commission, with
$24.2 million of repurchases coming
in the fourth quarter of 2023. Subsequent to year-end, the Company
repurchased 1.2 million common shares at an average price of
$13.99 per share, for a total of
$16.2 million, excluding commission,
year-to-date through February 26,
2024.
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
$400.0 million of its common shares,
of which approximately $151.0 million
remains available.
2024 Guidance
The Company expects the following for the full year 2024:
- IMAX Gross Box Office: Similar to 2023
- System Installations: 120 to 150 Systems
- Total Consolidated Adjusted EBITDA Margin: High 30's
percent
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 full year and fourth
quarter 2023 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/BI5eba9aa253da46dfb62bb6d573394a9d 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, 2023, there were 1,772 IMAX systems
(1,693 commercial multiplexes, 12 commercial destinations, 67
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 LIVETM, IMAX
Enhanced® 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, New
York
Jennifer
Horsley
212-821-0154
jhorsley@imax.com
|
Media:
IMAX Corporation, New
York Mark Jafar
212-821-0102 mjafar@imax.com
|
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,
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 digital 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 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.
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, along with other members of management,
assesses segment performance based on segment revenues and 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.
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.
The Company has the following reportable segments:
(i)
|
Content Solutions,
which principally includes the digital remastering of films and
other content into IMAX formats for distribution to the IMAX
network. To a lesser extent, the Content Solutions segment also
earns revenue from the distribution of large-format documentary
films and exclusive experiences ranging from live performances to
interactive events with leading artists and creators, as well as
film post-production services.
|
|
|
(ii)
|
Technology Products and
Services, which includes results from the sale or lease of IMAX
Systems, as well as from the maintenance of IMAX Systems. To a
lesser extent, the Technology Product and Services segment also
earns revenue from certain ancillary theater business activities,
including after-market sales of IMAX System parts and 3D
glasses.
|
Transactions between segments are valued at exchange value.
Inter-segment profits are eliminated upon consolidation, as well as
for the disclosures below.
IMAX Network and
Backlog
|
|
|
|
|
|
Three Months
Ended December 31,
|
|
|
Year
Ended December 31,
|
|
System
Signings(1):
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
Sales
Arrangements
|
|
|
10
|
|
|
|
11
|
|
|
|
64
|
|
|
|
21
|
|
Hybrid JRSA
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
3
|
|
Traditional
JRSA
|
|
|
25
|
|
|
|
1
|
|
|
|
65
|
|
|
|
23
|
|
Total
IMAX System signings
|
|
|
35
|
|
|
|
12
|
|
|
|
129
|
|
|
|
47
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended December 31,
|
|
|
Year
Ended December 31,
|
|
System
Installations(2):
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
Sales
Arrangements
|
|
|
35
|
|
|
|
21
|
|
|
|
70
|
|
|
|
38
|
|
Hybrid JRSA
|
|
|
3
|
|
|
|
3
|
|
|
|
5
|
|
|
|
8
|
|
Traditional
JRSA
|
|
|
31
|
|
|
|
28
|
|
|
|
53
|
|
|
|
46
|
|
Total
IMAX System installations
|
|
|
69
|
|
|
|
52
|
|
|
|
128
|
|
|
|
92
|
|
|
|
Year
Ended December 31,
|
|
|
System
Backlog:
|
|
2023
|
|
|
|
2022
|
|
|
Sales
Arrangements
|
|
|
164
|
|
|
|
|
162
|
|
|
Hybrid JRSA
|
|
|
103
|
|
|
|
|
120
|
|
|
Traditional
JRSA
|
|
|
183
|
|
|
|
|
168
|
|
|
Total System
backlog
|
|
|
450
|
|
|
|
|
450
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
Ended December 31,
|
|
|
System
Network:
|
|
2023
|
|
|
|
2022
|
|
|
Commercial Multiplex
Systems
|
|
|
|
|
|
|
|
|
Sales
Arrangements
|
|
|
769
|
|
|
|
|
702
|
|
|
Hybrid JRSA
|
|
|
138
|
|
|
|
|
151
|
|
|
Traditional
JRSA
|
|
|
786
|
|
|
|
|
780
|
|
|
Total Commercial
Multiplex Systems
|
|
|
1,693
|
|
|
|
|
1,633
|
|
|
Commercial Destination
Systems
|
|
|
12
|
|
|
|
|
12
|
|
|
Institutional
Systems
|
|
|
67
|
|
|
|
|
71
|
|
|
Total System
network
|
|
|
1,772
|
|
|
|
|
1,716
|
|
|
______________
|
(1)
|
System signings include
new signings of 32 in Q4 2023, 9 in Q4 2022, 108 in the full year
2023 and 30 in the full year 2022.
|
|
|
(2)
|
System installations
include new systems installations of 47 in Q4 2023, 21 in Q4 2022,
86 in the full year 2023 and 56 in the full year 2022.
|
IMAX
CORPORATION
CONSOLIDATED
STATEMENTS OF OPERATIONS
(In thousands of
U.S. dollars, except per share amounts)
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
|
Year
Ended
|
|
|
|
|
(Unaudited)
|
|
|
December
31,
|
|
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
Technology
sales
|
|
$
|
35,337
|
|
|
$
|
33,888
|
|
|
$
|
100,792
|
|
|
$
|
69,158
|
|
Image enhancement and
maintenance services
|
|
|
35,508
|
|
|
|
44,094
|
|
|
|
189,752
|
|
|
|
161,379
|
|
Technology
rentals
|
|
|
12,954
|
|
|
|
18,060
|
|
|
|
75,566
|
|
|
|
61,786
|
|
Finance
income
|
|
|
2,219
|
|
|
|
2,004
|
|
|
|
8,729
|
|
|
|
8,482
|
|
|
|
|
|
86,018
|
|
|
|
98,046
|
|
|
|
374,839
|
|
|
|
300,805
|
|
Costs and expenses
applicable to revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
Technology
sales
|
|
|
17,805
|
|
|
|
17,346
|
|
|
|
46,756
|
|
|
|
37,610
|
|
Image enhancement and
maintenance services
|
|
|
18,586
|
|
|
|
25,575
|
|
|
|
88,056
|
|
|
|
81,834
|
|
Technology
rentals
|
|
|
5,939
|
|
|
|
6,278
|
|
|
|
25,686
|
|
|
|
25,006
|
|
|
|
|
|
42,330
|
|
|
|
49,199
|
|
|
|
160,498
|
|
|
|
144,450
|
|
Gross
margin
|
|
|
43,688
|
|
|
|
48,847
|
|
|
|
214,341
|
|
|
|
156,355
|
|
Selling, general and
administrative expenses
|
|
|
35,070
|
|
|
|
37,862
|
|
|
|
144,406
|
|
|
|
138,043
|
|
Research and
development
|
|
|
2,722
|
|
|
|
1,633
|
|
|
|
10,110
|
|
|
|
5,300
|
|
Amortization of
intangible assets
|
|
|
1,250
|
|
|
|
1,417
|
|
|
|
4,578
|
|
|
|
4,829
|
|
Credit loss expense
(reversal), net
|
|
|
170
|
|
|
|
398
|
|
|
|
1,759
|
|
|
|
8,547
|
|
Asset
impairments
|
|
|
144
|
|
|
|
—
|
|
|
|
144
|
|
|
|
4,470
|
|
Restructuring and
executive transition costs
|
|
|
1,593
|
|
|
|
—
|
|
|
|
2,946
|
|
|
|
—
|
|
Income (loss) from
operations
|
|
|
2,739
|
|
|
|
7,537
|
|
|
|
50,398
|
|
|
|
(4,834)
|
|
Realized and unrealized
investment gains (losses)
|
|
|
29
|
|
|
|
(29)
|
|
|
|
465
|
|
|
|
70
|
|
Retirement benefits
non-service expense
|
|
|
(179)
|
|
|
|
(139)
|
|
|
|
(411)
|
|
|
|
(556)
|
|
Interest
income
|
|
|
648
|
|
|
|
252
|
|
|
|
2,486
|
|
|
|
1,428
|
|
Interest
expense
|
|
|
(1,776)
|
|
|
|
(1,523)
|
|
|
|
(6,821)
|
|
|
|
(5,877)
|
|
Income (loss) before
taxes
|
|
|
1,461
|
|
|
|
6,098
|
|
|
|
46,117
|
|
|
|
(9,769)
|
|
Income tax recovery
(expense)
|
|
|
1,850
|
|
|
|
(2,017)
|
|
|
|
(13,051)
|
|
|
|
(10,108)
|
|
Net income
(loss)
|
|
|
3,311
|
|
|
|
4,081
|
|
|
|
33,066
|
|
|
|
(19,877)
|
|
Net income attributable
to non-controlling interests
|
|
|
(771)
|
|
|
|
(1,468)
|
|
|
|
(7,731)
|
|
|
|
(2,923)
|
|
Net income (loss)
attributable to common shareholders
|
|
$
|
2,540
|
|
|
$
|
2,613
|
|
|
$
|
25,335
|
|
|
$
|
(22,800)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
per share attributable to common shareholders
|
|
|
Basic
|
|
$
|
0.05
|
|
|
$
|
0.05
|
|
|
$
|
0.47
|
|
|
$
|
(0.40)
|
|
|
Diluted
|
|
$
|
0.05
|
|
|
$
|
0.05
|
|
|
$
|
0.46
|
|
|
$
|
(0.40)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding (in thousands):
|
|
|
Basic
|
|
|
53,973
|
|
|
|
54,816
|
|
|
|
54,310
|
|
|
|
56,674
|
|
|
Diluted
|
|
|
54,983
|
|
|
|
55,659
|
|
|
|
55,146
|
|
|
|
56,674
|
|
Additional
Disclosure:
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
$
|
13,545
|
|
|
$
|
13,998
|
|
|
$
|
60,022
|
|
|
$
|
56,661
|
|
Amortization of
deferred financing costs
|
|
$
|
493
|
|
|
$
|
712
|
|
|
$
|
2,235
|
|
|
$
|
3,177
|
|
IMAX
CORPORATION
CONSOLIDATED BALANCE
SHEETS
(In thousands of
dollars, except share amounts)
|
|
|
|
As of December
31,
|
|
|
|
2023
|
|
|
2022
|
|
Assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
76,200
|
|
|
$
|
97,401
|
|
Accounts receivable,
net of allowance for credit losses
|
|
|
136,259
|
|
|
|
136,142
|
|
Financing receivables,
net of allowance for credit losses
|
|
|
127,154
|
|
|
|
129,384
|
|
Variable consideration
receivable, net of allowance for credit losses
|
|
|
64,338
|
|
|
|
44,024
|
|
Inventories
|
|
|
31,584
|
|
|
|
31,534
|
|
Prepaid
expenses
|
|
|
12,345
|
|
|
|
12,343
|
|
Film assets, net of
accumulated amortization
|
|
|
6,786
|
|
|
|
5,277
|
|
Property, plant and
equipment, net of accumulated depreciation
|
|
|
243,299
|
|
|
|
252,896
|
|
Investment in equity
securities
|
|
|
—
|
|
|
|
1,035
|
|
Other assets
|
|
|
20,879
|
|
|
|
15,665
|
|
Deferred income tax
assets, net of valuation allowance
|
|
|
7,988
|
|
|
|
9,900
|
|
Goodwill
|
|
|
52,815
|
|
|
|
52,815
|
|
Other intangible
assets, net of accumulated amortization
|
|
|
35,022
|
|
|
|
32,738
|
|
Total
assets
|
|
$
|
814,669
|
|
|
$
|
821,154
|
|
Liabilities
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
26,386
|
|
|
$
|
25,237
|
|
Accrued and other
liabilities
|
|
|
111,013
|
|
|
|
117,286
|
|
Deferred
revenue
|
|
|
67,105
|
|
|
|
70,940
|
|
Revolving credit
facility borrowings, net of unamortized debt issuance
costs
|
|
|
22,924
|
|
|
|
36,111
|
|
Convertible notes and
other borrowings, net of unamortized discounts and debt issuance
costs
|
|
229,131
|
|
|
|
226,912
|
|
Deferred income tax
liabilities
|
|
|
12,521
|
|
|
|
14,900
|
|
Total
liabilities
|
|
|
469,080
|
|
|
|
491,386
|
|
Commitments,
contingencies and guarantees
|
|
|
|
|
|
|
Non-controlling
interests
|
|
|
658
|
|
|
|
722
|
|
Shareholders'
equity
|
|
|
|
|
|
|
Capital stock common
shares — no par value. Authorized — unlimited number.
|
|
|
|
|
|
|
53,260,276 issued and
outstanding (December 31, 2022 — 54,148,614 issued and
outstanding)
|
|
|
389,048
|
|
|
|
376,715
|
|
Other equity
|
|
|
185,087
|
|
|
|
185,678
|
|
Statutory surplus
reserve
|
|
|
3,932
|
|
|
|
3,932
|
|
Accumulated
deficit
|
|
|
(292,845)
|
|
|
|
(293,124)
|
|
Accumulated other
comprehensive loss
|
|
|
(12,081)
|
|
|
|
(9,846)
|
|
Total shareholders'
equity attributable to common shareholders
|
|
|
273,141
|
|
|
|
263,355
|
|
Non-controlling
interests
|
|
|
71,790
|
|
|
|
65,691
|
|
Total shareholders'
equity
|
|
|
344,931
|
|
|
|
329,046
|
|
Total liabilities
and shareholders' equity
|
|
$
|
814,669
|
|
|
$
|
821,154
|
|
IMAX
CORPORATION
CONSOLIDATED
STATEMENTS OF CASH FLOWS
(In thousands of
dollars)
|
|
|
|
Years Ended December
31,
|
|
|
|
2023
|
|
|
2022
|
|
Operating
Activities
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
|
|
33,066
|
|
|
$
|
|
(19,877)
|
|
Adjustments to
reconcile net income (loss) to cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
60,022
|
|
|
|
|
56,661
|
|
Amortization of
deferred financing costs
|
|
|
|
2,235
|
|
|
|
|
3,177
|
|
Credit loss expense,
net
|
|
|
|
1,759
|
|
|
|
|
8,547
|
|
Write-downs, including
asset impairments
|
|
|
|
1,884
|
|
|
|
|
7,176
|
|
Deferred income tax
benefit
|
|
|
|
(1,447)
|
|
|
|
|
(2,073)
|
|
Share-based and other
non-cash compensation
|
|
|
|
24,230
|
|
|
|
|
27,573
|
|
Unrealized foreign
currency exchange (gain) loss
|
|
|
|
(212)
|
|
|
|
|
1,108
|
|
Realized and
unrealized investment gain
|
|
|
|
(465)
|
|
|
|
|
(70)
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
|
(1,907)
|
|
|
|
|
(29,003)
|
|
Inventories
|
|
|
|
(285)
|
|
|
|
|
(5,529)
|
|
Film assets
|
|
|
|
(20,394)
|
|
|
|
|
(19,598)
|
|
Deferred
revenue
|
|
|
|
(3,882)
|
|
|
|
|
(11,572)
|
|
Changes in other
operating assets and liabilities
|
|
|
|
(35,989)
|
|
|
|
|
801
|
|
Net cash provided
by operating activities
|
|
|
|
58,615
|
|
|
|
|
17,321
|
|
Investing
Activities
|
|
|
|
|
|
|
|
|
Purchase of property,
plant and equipment
|
|
|
|
(6,491)
|
|
|
|
|
(8,424)
|
|
Investment in equipment
for joint revenue sharing arrangements
|
|
|
|
(18,000)
|
|
|
|
|
(19,803)
|
|
Interest in film
classified as a financial instrument
|
|
|
|
—
|
|
|
|
|
(4,731)
|
|
Acquisition of other
intangible assets
|
|
|
|
(8,344)
|
|
|
|
|
(4,394)
|
|
Proceeds from sale of
equity securities
|
|
|
|
1,045
|
|
|
|
|
—
|
|
Acquisition of SSIMWAVE
Inc., net of cash and cash equivalents acquired
|
|
|
|
—
|
|
|
|
|
(15,939)
|
|
Net cash used in
investing activities
|
|
|
|
(31,790)
|
|
|
|
|
(53,291)
|
|
Financing
Activities
|
|
|
|
|
|
|
|
|
Proceeds from revolving
credit facility borrowings
|
|
|
|
39,717
|
|
|
|
|
37,871
|
|
Repayments of revolving
credit facility borrowings
|
|
|
|
(53,248)
|
|
|
|
|
(3,600)
|
|
Proceeds from other
borrowings
|
|
|
|
322
|
|
|
|
|
—
|
|
Repayment of other
borrowings
|
|
|
|
(53)
|
|
|
|
|
—
|
|
Credit facility
amendment fees paid
|
|
|
|
(46)
|
|
|
|
|
(2,279)
|
|
Repurchase of common
shares, IMAX Corporation
|
|
|
|
(26,823)
|
|
|
|
|
(80,124)
|
|
Repurchase of common
shares, IMAX China
|
|
|
|
(15)
|
|
|
|
|
(3,043)
|
|
Taxes withheld and paid
on employee stock awards vested
|
|
|
|
(6,466)
|
|
|
|
|
(3,687)
|
|
Principal payment under
finance lease obligations
|
|
|
|
(480)
|
|
|
|
|
(948)
|
|
Dividends paid to
non-controlling interests
|
|
|
|
(1,438)
|
|
|
|
|
(2,704)
|
|
Net cash used in
financing activities
|
|
|
|
(48,530)
|
|
|
|
|
(58,514)
|
|
Effects of exchange
rate changes on cash
|
|
|
|
504
|
|
|
|
|
2,174
|
|
Decrease in cash and
cash equivalents during year
|
|
|
|
(21,201)
|
|
|
|
|
(92,310)
|
|
Cash and cash
equivalents, beginning of year
|
|
|
|
97,401
|
|
|
|
|
189,711
|
|
Cash and cash
equivalents, end of year
|
|
$
|
|
76,200
|
|
|
$
|
|
97,401
|
|
Segment Revenue
and Gross Margin
|
|
(In thousands of
dollars)
|
|
Three Months
Ended
|
|
|
Years
Ended
|
|
|
|
December
31,
|
|
|
December
31,
|
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
Content
Solutions
|
|
|
19,093
|
|
|
|
29,320
|
|
|
|
126,698
|
|
|
|
101,820
|
|
Technology Products and
Services
|
|
|
62,490
|
|
|
|
66,107
|
|
|
|
234,303
|
|
|
|
192,368
|
|
Sub-total for
reportable segments
|
|
|
81,583
|
|
|
|
95,427
|
|
|
|
361,001
|
|
|
|
294,188
|
|
All
Other(1)
|
|
|
4,435
|
|
|
|
2,619
|
|
|
|
13,838
|
|
|
|
6,617
|
|
Total
|
|
$
|
86,018
|
|
|
$
|
98,046
|
|
|
$
|
374,839
|
|
|
$
|
300,805
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Margin
|
|
|
|
|
|
|
|
|
|
|
|
|
Content
Solutions
|
|
|
9,709
|
|
|
|
12,122
|
|
|
|
74,106
|
|
|
|
51,240
|
|
Technology Products and
Services
|
|
|
29,880
|
|
|
|
35,179
|
|
|
|
129,946
|
|
|
|
101,055
|
|
Sub-total for
reportable segments
|
|
|
39,589
|
|
|
|
47,301
|
|
|
|
204,052
|
|
|
|
152,295
|
|
All
Other(1)
|
|
|
4,099
|
|
|
|
1,546
|
|
|
|
10,289
|
|
|
|
4,060
|
|
Total
|
|
$
|
43,688
|
|
|
$
|
48,847
|
|
|
$
|
214,341
|
|
|
$
|
156,355
|
|
______________
|
(1) All Other includes the
results from Streaming and Consumer Technology and other ancillary
activities.
|
IMAX CORPORATION
NON-GAAP FINANCIAL
MEASURES
(in thousands of U.S. dollars)
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 attributable to
common shareholders and adjusted net income attributable to common
shareholders per basic and diluted share exclude, where applicable:
(i) share-based compensation; (ii) COVID-19 government relief
benefits, net; (iii) realized and unrealized investment gains or
losses; (iv) transaction-related expenses; and (v)
restructuring and executive transition costs, 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
(loss) attributable to common shareholders. Although share-based
compensation is an important aspect of the Company's employee and
executive compensation packages, it is a non-cash expense and is
excluded from certain internal business performance measures.
A reconciliation from net income (loss) attributable to common
shareholders and the associated per share amounts to adjusted net
income attributable to common shareholders and adjusted net income
attributable to common shareholders per diluted share is presented
in the table below. Net income (loss) attributable to common
shareholders and the associated per share amounts are the most
directly comparable GAAP measures because they reflect the earnings
relevant to the Company's shareholders, rather than the earnings
attributable to non-controlling interests.
In addition to the non-GAAP financial measures discussed above,
management also uses "EBITDA," as such term is defined in the
Company's Credit Agreement, and which is referred to herein as
"Adjusted EBITDA per Credit Facility." As allowed by the Credit
Agreement, Adjusted EBITDA per Credit Facility includes adjustments
in addition to the exclusion of interest, taxes, depreciation and
amortization. Adjusted EBITDA per Credit Facility measure is
presented to allow a more comprehensive analysis of the Company's
operating performance and to provide additional information with
respect to the Company's compliance against its Credit Agreement
requirements when applicable. In addition, the Company believes
that Adjusted EBITDA per Credit Facility presents relevant and
useful information widely used by analysts, investors and other
interested parties in the Company's industry to evaluate, assess
and benchmark the Company's results.
EBITDA is defined as net income or loss excluding (i) income tax
expense or benefit; (ii) interest expense, net of interest income;
(iii) depreciation and amortization, including film asset
amortization; and (iv) amortization of deferred financing costs.
Adjusted EBITDA per Credit Facility is defined as EBITDA excluding:
(i) share-based and other non-cash compensation; (ii) realized and
unrealized investment gains or losses; (iii) transaction-related
expenses; (iv) restructuring and executive transition costs; and
(v) write-downs, net of recoveries, including asset impairments and
credit loss expense.
A reconciliation of net income (loss) attributable to common
shareholders, which is the most directly comparable GAAP measure,
to EBITDA and Adjusted EBITDA per Credit Facility is presented in
the table below. Net income (loss) attributable to common
shareholders is the most directly comparable GAAP measure because
it reflects the earnings relevant to the Company's shareholders,
rather than the earnings attributable to non-controlling
interests.
In this release, the Company also presents free cash flow, which
is not recognized under 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
|
|
|
|
For the Three Months
Ended December 31, 2023 (1)
|
|
|
For the Three Months
Ended December 31, 2022 (1)
|
|
|
|
Attributable to
Non-controlling
|
|
|
Less:
|
|
|
|
|
|
Attributable to
Non-controlling
|
|
|
Less:
|
|
|
|
|
|
|
Interests
and
|
|
|
Attributable
to
|
|
|
Attributable
to
|
|
|
Interests
and
|
|
|
Attributable
to
|
|
|
Attributable to
|
|
|
|
Common
|
|
|
Non-controlling
|
|
|
Common
|
|
|
Common
|
|
|
Non-controlling
|
|
|
Common
|
|
|
|
Shareholders
|
|
|
Interests
|
|
|
Shareholders
|
|
|
Shareholders
|
|
|
Interests
|
|
|
Shareholders
|
|
(In thousands of
U.S. Dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported net
income
|
|
$
|
|
3,311
|
|
|
$
|
|
771
|
|
|
$
|
|
2,540
|
|
|
$
|
|
4,081
|
|
|
$
|
|
1,468
|
|
|
$
|
|
2,613
|
|
Add
(subtract):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
|
|
(1,850)
|
|
|
|
|
(147)
|
|
|
|
|
(1,703)
|
|
|
|
|
2,016
|
|
|
|
|
786
|
|
|
|
|
1,230
|
|
Interest expense, net
of interest income
|
|
|
|
636
|
|
|
|
|
(137)
|
|
|
|
|
773
|
|
|
|
|
559
|
|
|
|
|
(15)
|
|
|
|
|
574
|
|
Depreciation and
amortization, including film asset
amortization
|
|
|
|
13,545
|
|
|
|
|
1,161
|
|
|
|
|
12,384
|
|
|
|
|
13,998
|
|
|
|
|
1,109
|
|
|
|
|
12,889
|
|
Amortization of
deferred financing costs(2)
|
|
|
|
493
|
|
|
|
|
—
|
|
|
|
|
493
|
|
|
|
|
712
|
|
|
|
|
—
|
|
|
|
|
712
|
|
EBITDA
|
|
$
|
|
16,135
|
|
|
$
|
|
1,648
|
|
|
$
|
|
14,487
|
|
|
$
|
|
21,366
|
|
|
$
|
|
3,348
|
|
|
$
|
|
18,018
|
|
Stock and other
non-cash compensation
|
|
|
|
6,400
|
|
|
|
|
144
|
|
|
|
|
6,256
|
|
|
|
|
8,063
|
|
|
|
|
205
|
|
|
|
|
7,858
|
|
Unrealized investment
(gains) losses
|
|
|
|
(29)
|
|
|
|
|
—
|
|
|
|
|
(29)
|
|
|
|
|
29
|
|
|
|
|
—
|
|
|
|
|
29
|
|
Transaction-related
expenses(3)
|
|
|
|
327
|
|
|
|
|
208
|
|
|
|
|
119
|
|
|
|
|
166
|
|
|
|
|
—
|
|
|
|
|
166
|
|
Write-downs, including
asset impairments and
credit loss expense
|
|
|
|
812
|
|
|
|
|
(37)
|
|
|
|
|
849
|
|
|
|
|
1,867
|
|
|
|
|
162
|
|
|
|
|
1,705
|
|
Restructuring and
executive transition costs(4)
|
|
|
|
1,593
|
|
|
|
|
258
|
|
|
|
|
1,335
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
Adjusted EBITDA per
Credit Facility
|
|
$
|
|
25,238
|
|
|
$
|
|
2,221
|
|
|
$
|
|
23,017
|
|
|
$
|
|
31,491
|
|
|
$
|
|
3,715
|
|
|
$
|
|
27,776
|
|
Revenues attributable
to common shareholders(5)
|
|
|
|
86,018
|
|
|
|
|
4,687
|
|
|
|
|
81,331
|
|
|
|
|
98,046
|
|
|
|
|
7,273
|
|
|
|
|
90,773
|
|
Adjusted EBITDA margin
attributable to common
shareholders
|
|
|
|
29.3
|
%
|
|
|
|
47.4
|
%
|
|
|
|
28.3
|
%
|
|
|
|
32.1
|
%
|
|
|
|
51.1
|
%
|
|
|
|
30.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Twelve
Months Ended December 31, 2023 (1)
|
|
|
For the Twelve
Months Ended December 31, 2022 (1)
|
|
|
|
Attributable to
Non-controlling
|
|
|
Less:
|
|
|
|
|
|
Attributable to
Non-controlling
|
|
|
Less:
|
|
|
|
|
|
|
Interests
and
|
|
|
Attributable
to
|
|
|
Attributable
to
|
|
|
Interests
and
|
|
|
Attributable
to
|
|
|
Attributable to
|
|
|
|
Common
|
|
|
Non-controlling
|
|
|
Common
|
|
|
Common
|
|
|
Non-controlling
|
|
|
Common
|
|
|
|
Shareholders
|
|
|
Interests
|
|
|
Shareholders
|
|
|
Shareholders
|
|
|
Interests
|
|
|
Shareholders
|
|
(In thousands of
U.S. Dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported net income
(loss)
|
|
$
|
|
33,066
|
|
|
$
|
|
7,731
|
|
|
$
|
|
25,335
|
|
|
$
|
|
(19,877)
|
|
|
$
|
|
2,923
|
|
|
$
|
|
(22,800)
|
|
Add
(subtract):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
|
|
13,051
|
|
|
|
|
1,725
|
|
|
|
|
11,326
|
|
|
|
|
10,108
|
|
|
|
|
1,256
|
|
|
|
|
8,852
|
|
Interest expense, net
of interest income
|
|
|
|
2,101
|
|
|
|
|
(408)
|
|
|
|
|
2,509
|
|
|
|
|
1,272
|
|
|
|
|
(251)
|
|
|
|
|
1,523
|
|
Depreciation and
amortization, including film asset
amortization
|
|
|
|
60,022
|
|
|
|
|
5,312
|
|
|
|
|
54,710
|
|
|
|
|
56,661
|
|
|
|
|
4,820
|
|
|
|
|
51,841
|
|
Amortization of
deferred financing costs(2)
|
|
|
|
2,235
|
|
|
|
|
—
|
|
|
|
|
2,235
|
|
|
|
|
3,177
|
|
|
|
|
—
|
|
|
|
|
3,177
|
|
EBITDA
|
|
$
|
|
110,475
|
|
|
$
|
|
14,360
|
|
|
$
|
|
96,115
|
|
|
$
|
|
51,341
|
|
|
$
|
|
8,748
|
|
|
$
|
|
42,593
|
|
Stock and other
non-cash compensation
|
|
|
|
24,230
|
|
|
|
|
774
|
|
|
|
|
23,456
|
|
|
|
|
27,573
|
|
|
|
|
760
|
|
|
|
|
26,813
|
|
Unrealized investment
gains
|
|
|
|
(465)
|
|
|
|
|
(93)
|
|
|
|
|
(372)
|
|
|
|
|
(70)
|
|
|
|
|
—
|
|
|
|
|
(70)
|
|
Transaction-related
expenses(3)
|
|
|
|
3,569
|
|
|
|
|
208
|
|
|
|
|
3,361
|
|
|
|
|
1,122
|
|
|
|
|
—
|
|
|
|
|
1,122
|
|
Write-downs, including
asset impairments and
credit loss expense
|
|
|
|
3,273
|
|
|
|
|
362
|
|
|
|
|
2,911
|
|
|
|
|
15,723
|
|
|
|
|
1,723
|
|
|
|
|
14,000
|
|
Restructuring and
executive transition costs(4)
|
|
|
|
2,946
|
|
|
|
|
258
|
|
|
|
|
2,688
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
Adjusted EBITDA per
Credit Facility
|
|
$
|
|
144,028
|
|
|
$
|
|
15,869
|
|
|
$
|
|
128,159
|
|
|
$
|
|
95,689
|
|
|
$
|
|
11,231
|
|
|
$
|
|
84,458
|
|
Revenues attributable
to common shareholders(5)
|
|
|
|
374,839
|
|
|
|
|
25,674
|
|
|
|
|
349,165
|
|
|
|
|
300,805
|
|
|
|
|
20,883
|
|
|
|
|
279,922
|
|
Adjusted EBITDA margin
attributable to common
shareholders
|
|
|
|
38.4
|
%
|
|
|
|
61.8
|
%
|
|
|
|
36.7
|
%
|
|
|
|
31.8
|
%
|
|
|
|
53.8
|
%
|
|
|
|
30.2
|
%
|
______________
|
(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 costs incurred
resulting from the Company's proposal to acquire the outstanding
96.3 million shares in IMAX China.
|
|
|
(4)
|
Reflects costs in
connection with the departure of the President, IMAX Entertainment
and Executive Vice President of the Company and other employees to
capture efficiencies and centralize certain operational
roles.
|
|
|
(5)
|
|
(In thousands of
U.S. Dollars)
|
|
Three months
ended
December 31, 2023
|
|
|
Three months
ended
December 31, 2022
|
|
|
Year ended
December 31, 2023
|
|
|
Year ended
December 31, 2022
|
|
Total
revenues
|
|
|
|
|
|
$
|
|
86,018
|
|
|
|
|
|
|
$
|
|
98,046
|
|
|
|
|
|
|
$
|
|
374,839
|
|
|
|
|
|
$
|
|
300,805
|
|
Greater China
revenues
|
|
$
|
|
16,521
|
|
|
|
|
|
|
$
|
|
25,728
|
|
|
|
|
|
|
$
|
|
90,496
|
|
|
|
|
|
|
$
|
|
73,330
|
|
|
|
|
Non-controlling
interest ownership
percentage(6)
|
|
|
|
28.37
|
%
|
|
|
|
|
|
|
|
28.27
|
%
|
|
|
|
|
|
|
|
28.37
|
%
|
|
|
|
|
|
|
|
28.48
|
%
|
|
|
|
Deduction for
non-controlling interest
share of revenues
|
|
|
|
|
|
|
|
(4,687)
|
|
|
|
|
|
|
|
|
(7,273)
|
|
|
|
|
|
|
|
|
(25,674)
|
|
|
|
|
|
|
|
(20,883)
|
|
Revenues attributable
to common
shareholders
|
|
|
|
|
|
$
|
|
81,331
|
|
|
|
|
|
|
$
|
|
90,773
|
|
|
|
|
|
|
$
|
|
349,165
|
|
|
|
|
|
$
|
|
279,922
|
|
|
|
(6)
|
Weighted average
ownership percentage for change in non-controlling interest
share
|
Adjusted Net
Income Attributable to Common Shareholders and Adjusted Net Income
Per Share
|
|
|
|
Three Months
Ended
|
|
|
Three Months
Ended
|
|
|
|
December 31,
2023
|
|
|
December 31,
2022
|
|
(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
|
|
$
|
2,540
|
|
|
$
|
0.05
|
|
|
$
|
2,613
|
|
|
$
|
0.05
|
|
Adjustments(1):
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation
|
|
|
6,074
|
|
|
|
0.11
|
|
|
|
7,730
|
|
|
|
0.14
|
|
Unrealized investment
gains
|
|
|
(32)
|
|
|
|
—
|
|
|
|
29
|
|
|
|
—
|
|
Transaction-related
expenses(2)
|
|
|
119
|
|
|
|
—
|
|
|
|
166
|
|
|
|
—
|
|
Restructuring and
executive transition costs(3)
|
|
|
1,335
|
|
|
|
0.02
|
|
|
|
—
|
|
|
|
—
|
|
Tax impact on items
listed above
|
|
|
(747)
|
|
|
|
(0.01)
|
|
|
|
17
|
|
|
|
—
|
|
Adjusted net
income(1)
|
|
$
|
9,289
|
|
|
$
|
0.17
|
|
|
$
|
10,555
|
|
|
$
|
0.19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average basic
shares outstanding
|
|
|
|
|
|
53,973
|
|
|
|
|
|
|
54,816
|
|
Weighted average
diluted shares outstanding
|
|
|
|
|
|
54,983
|
|
|
|
|
|
|
55,659
|
|
|
|
|
|
|
|
|
|
|
Year
Ended
|
|
|
Year
Ended
|
|
|
|
December 31,
2023
|
|
|
December 31,
2022
|
|
(In thousands of
U.S. dollars, except per share amounts)
|
|
Net
Income
|
|
|
Per Diluted
Share
|
|
|
Net (Loss)
Income
|
|
|
Per Diluted
Share
|
|
Net income (loss)
attributable to common shareholders
|
|
$
|
25,335
|
|
|
$
|
0.46
|
|
|
$
|
(22,800)
|
|
|
$
|
(0.40)
|
|
Adjustments(1):
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation
|
|
|
23,184
|
|
|
|
0.42
|
|
|
|
26,382
|
|
|
|
0.46
|
|
COVID-19 government
relief benefits, net
|
|
|
—
|
|
|
|
—
|
|
|
|
(373)
|
|
|
|
(0.01)
|
|
Unrealized investment
gains
|
|
|
(558)
|
|
|
|
(0.01)
|
|
|
|
(70)
|
|
|
|
—
|
|
Transaction-related
expenses(2)
|
|
|
3,361
|
|
|
|
0.06
|
|
|
|
1,122
|
|
|
|
0.02
|
|
Restructuring and
executive transition costs(3)
|
|
|
2,688
|
|
|
|
0.05
|
|
|
|
—
|
|
|
|
—
|
|
Tax impact on items
listed above
|
|
|
(1,931)
|
|
|
|
(0.04)
|
|
|
|
(1,054)
|
|
|
|
(0.02)
|
|
Adjusted net
income(1)
|
|
$
|
52,079
|
|
|
$
|
0.94
|
|
|
$
|
3,207
|
|
|
$
|
0.06
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding - basic
|
|
|
|
|
|
54,310
|
|
|
|
|
|
|
56,674
|
|
Weighted average
shares outstanding - diluted
|
|
|
|
|
|
55,146
|
|
|
|
|
|
|
57,371
|
|
_______________
|
(1)
|
Reflects amounts
attributable to common shareholders.
|
|
|
(2)
|
Reflects costs in
connection with the Company's proposal to acquire the outstanding
96.3 million shares in IMAX China in 2023 and costs incurred
associated with the acquisition of SSIMWAVE in 2022.
|
|
|
(3)
|
Reflects costs in
connection with the departure of the President, IMAX Entertainment
and Executive Vice President of the Company and other employees to
capture efficiencies and centralize certain operational
roles.
|
Free Cash
Flow
|
|
|
|
Year
Ended
|
|
|
Year
Ended
|
|
(In thousands of
U.S. Dollars)
|
|
December 31,
2023
|
|
|
December 31,
2022
|
|
Net cash provided by
operating activities
|
|
$
|
|
58,615
|
|
|
$
|
|
17,321
|
|
Purchase of property,
plant and equipment
|
|
|
|
(6,491)
|
|
|
|
|
(8,424)
|
|
Acquisition of other
intangible assets
|
|
|
|
(8,344)
|
|
|
|
|
(4,394)
|
|
Free cash flow before
growth CAPEX
|
|
|
|
43,780
|
|
|
|
|
4,503
|
|
Investment in equipment
for joint revenue sharing arrangements
|
|
|
|
(18,000)
|
|
|
|
|
(19,803)
|
|
Free cash
flow
|
|
$
|
|
25,780
|
|
|
$
|
|
(15,300)
|
|
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SOURCE IMAX Corporation