- Global entertainment technology platform delivers strong Q3
year-over-year growth across all key financial metrics, including
Revenue (+51%), Gross Margin (+98%) and Adjusted EBITDA
(+174%)(1)
- Network growth accelerates while system signings climb to 120
to-date — more than double what the Company delivered in all of
2022 (47)
- Q3 marks the Company's second highest grossing quarter of all
time at the global IMAX box office
- Box office strength drives significant operating leverage,
delivering in the third quarter $12
million in Net Income, Adjusted EPS(1) of
$0.35, record Adjusted
EBITDA(1) of $45 million
and Adjusted EBITDA Margin(1) of 47%
- Robust cash flow generation continues, with cash from
operations of $55 million through
nine months, compared with $0.5
million for the same period in 2022
NEW
YORK, Oct. 25, 2023 /PRNewswire/ -- IMAX
Corporation (NYSE: IMAX) today reported strong top and bottom-line
financial results for the third quarter of 2023, demonstrating the
value of its unique global entertainment technology platform and
diversified content portfolio.
"IMAX financial results for the third quarter are spectacular by
any measure — versus budget, versus our historical performance and
in the context of a highly dynamic business environment for media
and entertainment," said Richard L.
Gelfond, Chief Executive Officer of IMAX. "We are
programming by far the strongest and most diverse content portfolio
in our history — Hollywood
blockbusters, local language films, marquee theatrical releases by
streamers, concert films, docs, Live events – and we couldn't be
more pleased with the results across our global network."
"Our outsized performance with Hollywood blockbusters coupled with the
expansion of our successful local language strategy is fueling
strong network growth around the world, with robust sales activity
in China and North America as well as key growth markets
across Europe and Southeast Asia."
"It is clear that IMAX is the preferred way to experience
blockbuster entertainment globally, and our global footprint,
differentiated technology, and asset-lite model have made us a
consistent winner. As we enter the fourth quarter, we remain on
track to deliver significant growth in system signings,
installations, and Adjusted EBITDA for the full year and one of the
best years in our history at the global box office."
|
|
|
|
|
|
(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.
|
Third Quarter
Financial Highlights
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
In millions of U.S.
Dollars, except per share data
|
2023
|
|
|
2022
|
|
|
YoY
% Change
|
|
2023
|
|
|
2022
|
|
|
YoY %
Change
|
Total
Revenue
|
$
|
103.9
|
|
|
$
|
68.8
|
|
|
51 %
|
|
$
|
288.8
|
|
|
$
|
202.8
|
|
|
42 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Margin
|
$
|
62.7
|
|
|
$
|
31.7
|
|
|
98 %
|
|
$
|
170.7
|
|
|
$
|
107.5
|
|
|
59 %
|
Gross Margin
(%)
|
60 %
|
|
|
46 %
|
|
|
|
|
59 %
|
|
|
53 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
(Loss)(2)
|
$
|
12.0
|
|
|
$
|
(9.0)
|
|
|
N/A
|
|
$
|
22.8
|
|
|
$
|
(25.4)
|
|
|
N/A
|
Diluted Net Income
(Loss) per share(2)
|
$
|
0.22
|
|
|
$
|
(0.16)
|
|
|
N/A
|
|
$
|
0.41
|
|
|
$
|
(0.44)
|
|
|
N/A
|
Adjusted Net Income
(Loss)(1)(2)
|
$
|
19.4
|
|
|
$
|
(3.0)
|
|
|
N/A
|
|
$
|
42.8
|
|
|
$
|
(7.3)
|
|
|
N/A
|
Adjusted Net Income
(Loss) per share(1)(2)
|
$
|
0.35
|
|
|
$
|
(0.05)
|
|
|
N/A
|
|
$
|
0.77
|
|
|
$
|
(0.13)
|
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA per
Credit Facility(1)(3)
|
$
|
45.1
|
|
|
$
|
16.5
|
|
|
174 %
|
|
$
|
105.1
|
|
|
$
|
56.7
|
|
|
85 %
|
Adjusted EBITDA Margin
(%)(1)(2)
|
47 %
|
|
|
26 %
|
|
|
81 %
|
|
39 %
|
|
|
30 %
|
|
|
30 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding (in millions):
|
Basic
|
|
54.6
|
|
|
|
56.0
|
|
|
(3 %)
|
|
|
54.4
|
|
|
|
57.3
|
|
|
(5 %)
|
Diluted
|
|
55.5
|
|
|
|
56.0
|
|
|
(1 %)
|
|
|
55.3
|
|
|
|
57.3
|
|
|
(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)
|
Adjusted EBITDA per
Credit facility attributable to common shareholders.
|
Third Quarter and
September YTD Segment Results(1)
|
|
|
|
Content
Solutions
|
|
Technology Products
and Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In millions of U.S.
Dollars
|
|
Revenue
|
|
|
Gross
Margin
|
|
|
Gross
Margin %
|
|
Revenue
|
|
|
Gross
Margin
|
|
|
Gross
Margin %
|
3Q23
|
|
$
|
44.2
|
|
|
$
|
26.4
|
|
|
60 %
|
|
$
|
56.2
|
|
|
|
$
|
33.8
|
|
|
60 %
|
3Q22
|
|
|
22.0
|
|
|
|
9.1
|
|
|
42 %
|
|
|
45.5
|
|
|
|
|
21.8
|
|
|
48 %
|
%
change
|
|
101 %
|
|
|
189 %
|
|
|
|
|
23 %
|
|
|
|
55 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YTD
3Q23
|
|
$
|
107.6
|
|
|
$
|
64.4
|
|
|
60 %
|
|
$
|
171.8
|
|
|
|
$
|
100.1
|
|
|
58 %
|
YTD
3Q22
|
|
|
72.5
|
|
|
|
39.1
|
|
|
54 %
|
|
$
|
126.3
|
|
|
|
|
65.9
|
|
|
52 %
|
%
change
|
|
48 %
|
|
|
65 %
|
|
|
|
|
36 %
|
|
|
|
52 %
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Please refer to the
Company's Form 10-Q for the period ended September 30, 2023, for
additional segment information.
|
Content Solutions Segment
- Content Solutions revenues of $44.2
million increased 101% year-over-year. Gross box office from
IMAX locations in Q3 2023 of $347.1
million was up 96% from Q3 2022. Key contributors to third
quarter box office performance included:
- Hollywood titles led by
Oppenheimer with $180 million
in IMAX GBO with significant contributions coming from Mission
Impossible: Dead Reckoning Part 1 and Indiana Jones and the
Dial of Destiny.
- Local language titles led by the record setting Chinese title
Creation of the Gods: Kingdom of Storms ($32.3 million in IMAX GBO), with strong
contributions coming from No More Bets, Lost in the
Stars, and Jawan.
- Gross margin for Content Solutions was $26.4 million (at a 60% margin) and increased
189% compared to the third quarter of the prior year period. This
outsized growth was driven by the operating leverage in our
business that resulted in very pronounced profit flow-through from
box office.
Technology Products and Services Segment
- Technology Products and Services revenues and gross margin
increased 23% year-over-year to $56.2
million and 55% year-over-year to $33.8 million, respectively, which reflects
growth in box office tied to rental revenues as well as a higher
number of sale/hybrid installations.
- During the third quarter the Company installed 30 systems
compared to 17 systems in the third quarter of 2022. Of those, 16
systems were under sales and hybrid JRSA arrangements, compared to
9 systems in the prior year.
Operating Cash Flow and Liquidity
Net cash provided by operating activities for the nine months
through September was $54.6 million
compared to net cash provided by operating activities of
$0.5 million in the prior year
period.
As of September 30, 2023, the
Company's available liquidity was $308.9
million or $438.9 million
excluding the letter of credit associated with the IMAX China
privatization transaction. Our liquidity includes cash and cash
equivalents of $109.6 million,
$150.0 million in available borrowing
capacity under the Credit Facility, $130.0
million for the standby letter of credit and $49.2 million in available borrowing capacity
under IMAX China's revolving facilities. Total debt, excluding
deferred financing costs, was $258.2
million as of September 30,
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 in the
third quarter of 2023 were 54.6 million and 55.5 million,
respectively, compared to 56.0 million for both in the third
quarter of 2022, a decrease of 3% and 1%, respectively.
The Company repurchased 362,784 common shares at an average
price of $16.90 per share, for a
total of $6.1 million, excluding
commission, year-to-date through October 24,
2023.
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 million of its common shares, of
which approximately $187.3 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 weekly 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 on
Tuesday of each week, although the Company may change this timing
without notice. Results will be displayed with a few days lag.
The Company may post additional information on the Company's
corporate and Investor Relations website which may be material to
investors. Accordingly, investors, media and others interested in
the Company should monitor the Company's website in addition to the
Company's press releases, SEC filings and public conference calls
and webcasts, for additional information about the Company.
Conference Call
The Company will host a conference call today at 8:30 AM ET to discuss its third 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/BI507a09f12d7e4417a07562a7285253bd 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, and,
as such, IMAX's network is among the most important and successful
theatrical distribution platforms for major event films around the
globe. Streaming technology company SSIMWAVE, an IMAX subsidiary,
is a leader in AI-driven video quality solutions for media and
entertainment companies.
IMAX is headquartered in New
York, Toronto, and
Los Angeles, with additional
offices in London, Dublin, Tokyo, and Shanghai. As of September 30, 2023, there were 1,731 IMAX systems
(1,651 commercial multiplexes, 12 commercial destinations, 68
institutional) operating in 87 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 IMAXTM, IMAX
LiveTM, IMAX Enhanced®, and SSIMWAVE® are
trademarks and trade names of the Company or its subsidiaries that
are registered or otherwise protected under laws of various
jurisdictions. More information about the Company can be found at
www.imax.com. You may also connect with IMAX on Instagram
(https://www.instagram.com/imax), Facebook (www.facebook.com/imax),
Twitter (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, statements regarding the emergence of Cineworld
from bankruptcy, as well as 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 related to the adverse impact
of the COVID-19 pandemic; 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
DMR® 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, as supplemented
by those discussed in the Company's Quarterly Report on Form 10-Q.
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 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.
In the first quarter of 2023, the Company revised its internal
segment reporting, including the information provided to the CODM
to assess segment performance and allocate resources. Accordingly,
the Company has two reportable segments: (i) Content Solutions,
which principally includes content enhancement and distribution
services, previously included within the IMAX DMR, Film
Distribution and Film Post-Production segments, and (ii) Technology
Products and Services, which principally includes the sale, lease,
and maintenance of IMAX Systems, previously included within the
JRSA, IMAX Systems, IMAX Maintenance, and Other Theater Business
segments. The Company's activities that do not meet the criteria to
be considered a reportable segment are reported within All Other.
Prior period comparatives have been revised to conform with the
current period presentation.
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
September 30,
|
|
|
Nine Months
Ended
September 30,
|
|
|
System
Signings:
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
|
New IMAX
Systems
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and sales-type
lease arrangements
|
|
|
7
|
|
|
|
3
|
|
|
|
44
|
|
|
|
9
|
|
|
Hybrid JRSA
|
|
|
—
|
|
|
|
1
|
|
|
|
—
|
|
|
|
3
|
|
|
Traditional
JRSA
|
|
|
7
|
|
|
|
7
|
|
|
|
32
|
|
|
|
9
|
|
|
Total new IMAX
Systems
|
|
|
14
|
|
|
|
11
|
|
|
|
76
|
|
|
|
21
|
|
|
Upgrades of IMAX
systems
|
|
|
6
|
|
|
|
4
|
|
|
|
18
|
|
|
|
14
|
|
|
Total IMAX System
signings
|
|
|
20
|
|
|
|
15
|
|
|
|
94
|
|
|
|
35
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September 30,
|
|
|
Nine Months
Ended
September 30,
|
|
|
System
Installations:
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
|
New IMAX
Systems
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and sales-type
lease arrangements
|
|
|
14
|
|
|
|
7
|
|
|
|
30
|
|
|
|
14
|
|
|
Hybrid JRSA
|
|
|
—
|
|
|
|
2
|
|
|
|
2
|
|
|
|
5
|
|
|
Traditional
JRSA
|
|
|
4
|
|
|
|
7
|
|
|
|
7
|
|
|
|
16
|
|
|
Total new IMAX
Systems
|
|
|
18
|
|
|
|
16
|
|
|
|
39
|
|
|
|
35
|
|
|
Upgrades of IMAX
Systems
|
|
|
12
|
|
|
|
1
|
|
|
|
20
|
|
|
|
5
|
|
|
Total IMAX System
installations
|
|
|
30
|
|
|
|
17
|
|
|
|
59
|
|
|
|
40
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
|
IMAX System
Backlog:
|
|
|
|
|
|
|
|
|
|
2023
|
|
|
2022
|
|
|
Sales and sales-type
lease arrangements
|
|
|
|
|
|
|
|
|
|
|
192
|
|
|
|
170
|
|
|
Hybrid JRSA
|
|
|
|
|
|
|
|
|
|
|
107
|
|
|
|
127
|
|
|
Traditional
JRSA
|
|
|
|
|
|
|
|
|
|
|
187
|
|
|
|
192
|
|
|
Total IMAX System
backlog
|
|
|
|
|
|
|
|
|
|
|
486
|
|
|
|
489
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
|
IMAX
Network:
|
|
|
|
|
|
|
|
|
|
2023
|
|
|
2022
|
|
|
Commercial Multiplex
Theaters
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and sales-type
lease arrangements
|
|
|
|
|
|
|
|
|
|
|
743
|
|
|
|
696
|
|
|
Hybrid JRSA
|
|
|
|
|
|
|
|
|
|
|
137
|
|
|
|
150
|
|
|
Traditional
JRSA
|
|
|
|
|
|
|
|
|
|
|
771
|
|
|
|
776
|
|
|
Total Commercial
Multiplex Theaters
|
|
|
|
|
|
|
|
|
|
|
1,651
|
|
|
|
1,622
|
|
|
Commercial Destination
Theaters
|
|
|
|
|
|
|
|
|
|
|
12
|
|
|
|
12
|
|
|
Institutional
Theaters
|
|
|
|
|
|
|
|
|
|
|
68
|
|
|
|
69
|
|
|
Total IMAX
network
|
|
|
|
|
|
|
|
|
|
|
1,731
|
|
|
|
1,703
|
|
|
IMAX
CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands of
U.S. dollars, except per share amounts)
|
(Unaudited)
|
|
|
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
|
|
September
30,
|
|
|
September
30,
|
|
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
Technology
sales
|
|
$
|
18,273
|
|
|
$
|
18,065
|
|
|
$
|
65,455
|
|
|
$
|
35,270
|
|
Image enhancement and
maintenance services
|
|
|
60,250
|
|
|
|
36,233
|
|
|
|
154,244
|
|
|
|
117,285
|
|
Technology
rentals
|
|
|
23,008
|
|
|
|
12,540
|
|
|
|
62,612
|
|
|
|
43,726
|
|
Finance
income
|
|
|
2,365
|
|
|
|
1,917
|
|
|
|
6,510
|
|
|
|
6,478
|
|
|
|
|
|
103,896
|
|
|
|
68,755
|
|
|
|
288,821
|
|
|
|
202,759
|
|
Costs and expenses
applicable to revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
Technology
sales
|
|
|
7,948
|
|
|
|
10,061
|
|
|
|
28,951
|
|
|
|
20,264
|
|
Image enhancement and
maintenance services
|
|
|
26,646
|
|
|
|
20,563
|
|
|
|
69,470
|
|
|
|
56,259
|
|
Technology
rentals
|
|
|
6,587
|
|
|
|
6,430
|
|
|
|
19,747
|
|
|
|
18,728
|
|
|
|
|
|
41,181
|
|
|
|
37,054
|
|
|
|
118,168
|
|
|
|
95,251
|
|
Gross
margin
|
|
|
62,715
|
|
|
|
31,701
|
|
|
|
170,653
|
|
|
|
107,508
|
|
Selling, general and
administrative expenses
|
|
|
36,282
|
|
|
|
32,905
|
|
|
|
109,336
|
|
|
|
100,181
|
|
Research and
development
|
|
|
2,771
|
|
|
|
1,115
|
|
|
|
7,388
|
|
|
|
3,667
|
|
Amortization of
intangible assets
|
|
|
1,107
|
|
|
|
1,111
|
|
|
|
3,328
|
|
|
|
3,412
|
|
Credit loss expense,
net
|
|
|
523
|
|
|
|
808
|
|
|
|
1,589
|
|
|
|
8,149
|
|
Asset
impairments
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
4,470
|
|
Executive transition
costs
|
|
|
—
|
|
|
|
—
|
|
|
|
1,353
|
|
|
|
—
|
|
Income (loss) from
operations
|
|
|
22,032
|
|
|
|
(4,238)
|
|
|
|
47,659
|
|
|
|
(12,371)
|
|
Unrealized investment
gains
|
|
|
364
|
|
|
|
35
|
|
|
|
436
|
|
|
|
99
|
|
Retirement benefits
non-service expense
|
|
|
(77)
|
|
|
|
(140)
|
|
|
|
(232)
|
|
|
|
(417)
|
|
Interest
income
|
|
|
738
|
|
|
|
257
|
|
|
|
1,838
|
|
|
|
1,176
|
|
Interest
expense
|
|
|
(1,483)
|
|
|
|
(1,323)
|
|
|
|
(5,045)
|
|
|
|
(4,354)
|
|
Income (loss) before
taxes
|
|
|
21,574
|
|
|
|
(5,409)
|
|
|
|
44,656
|
|
|
|
(15,867)
|
|
Income tax
expense
|
|
|
(6,555)
|
|
|
|
(2,348)
|
|
|
|
(14,901)
|
|
|
|
(8,091)
|
|
Net income
(loss)
|
|
|
15,019
|
|
|
|
(7,757)
|
|
|
|
29,755
|
|
|
|
(23,958)
|
|
Less: net (income) loss
attributable to non-controlling interests
|
|
|
(3,029)
|
|
|
|
(1,196)
|
|
|
|
(6,960)
|
|
|
|
(1,455)
|
|
Net income (loss)
attributable to common shareholders
|
|
$
|
11,990
|
|
|
$
|
(8,953)
|
|
|
$
|
22,795
|
|
|
$
|
(25,413)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
per share attributable to common shareholders:
|
|
Basic
|
|
$
|
0.22
|
|
|
$
|
(0.16)
|
|
|
$
|
0.42
|
|
|
$
|
(0.44)
|
|
Diluted
|
|
$
|
0.22
|
|
|
$
|
(0.16)
|
|
|
$
|
0.41
|
|
|
$
|
(0.44)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding (in thousands):
|
|
Basic
|
|
|
54,618
|
|
|
|
56,039
|
|
|
|
54,424
|
|
|
|
57,301
|
|
Diluted
|
|
|
55,535
|
|
|
|
56,039
|
|
|
|
55,261
|
|
|
|
57,301
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional
Disclosure:
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
$
|
19,279
|
|
|
$
|
15,640
|
|
|
$
|
46,477
|
|
|
$
|
42,663
|
|
Amortization of
deferred financing costs
|
|
$
|
492
|
|
|
$
|
712
|
|
|
$
|
1,742
|
|
|
$
|
2,465
|
|
IMAX
CORPORATION
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In thousands of
U.S. dollars, except share amounts)
|
(Unaudited)
|
|
|
|
September 30,
|
|
|
December
31,
|
|
|
|
2023
|
|
|
2022
|
|
Assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
109,603
|
|
|
$
|
97,401
|
|
Accounts receivable,
net of allowance for credit losses
|
|
|
135,962
|
|
|
|
136,142
|
|
Financing receivables,
net of allowance for credit losses
|
|
|
125,322
|
|
|
|
129,384
|
|
Variable consideration
receivables, net of allowance for credit losses
|
|
|
59,042
|
|
|
|
44,024
|
|
Inventories
|
|
|
45,365
|
|
|
|
31,534
|
|
Prepaid
expenses
|
|
|
13,042
|
|
|
|
12,343
|
|
Film assets, net of
accumulated amortization
|
|
|
5,232
|
|
|
|
5,277
|
|
Property, plant and
equipment, net of accumulated depreciation
|
|
|
238,140
|
|
|
|
252,896
|
|
Investment in equity
securities
|
|
|
—
|
|
|
|
1,035
|
|
Other assets
|
|
|
20,119
|
|
|
|
15,665
|
|
Deferred income tax
assets, net of valuation allowance
|
|
|
11,961
|
|
|
|
9,900
|
|
Goodwill
|
|
|
52,815
|
|
|
|
52,815
|
|
Other intangible
assets, net of accumulated amortization
|
|
|
34,343
|
|
|
|
32,738
|
|
Total
assets
|
|
$
|
850,946
|
|
|
$
|
821,154
|
|
Liabilities
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
37,699
|
|
|
$
|
25,237
|
|
Accrued and other
liabilities
|
|
|
123,863
|
|
|
|
117,286
|
|
Deferred
revenue
|
|
|
66,272
|
|
|
|
70,940
|
|
Revolving credit
facility borrowings, net of unamortized debt issuance
costs
|
|
|
23,903
|
|
|
|
36,111
|
|
Convertible notes and
other borrowings, net of unamortized discounts and debt issuance
costs
|
|
|
228,449
|
|
|
|
226,912
|
|
Deferred income tax
liabilities
|
|
|
13,349
|
|
|
|
14,900
|
|
Total
liabilities
|
|
|
493,535
|
|
|
|
491,386
|
|
Commitments,
contingencies and guarantees
|
|
|
|
|
|
|
Non-controlling
interests
|
|
|
661
|
|
|
|
722
|
|
Shareholders'
equity
|
|
|
|
|
|
|
Capital stock common
shares — no par value. Authorized — unlimited number.
|
|
|
|
|
|
|
54,607,095 issued and
outstanding (December 31, 2022 — 54,148,614 issued and
outstanding)
|
|
|
390,097
|
|
|
|
376,715
|
|
Other equity
|
|
|
179,970
|
|
|
|
185,678
|
|
Statutory surplus
reserve
|
|
|
3,932
|
|
|
|
3,932
|
|
Accumulated
deficit
|
|
|
(272,318)
|
|
|
|
(293,124)
|
|
Accumulated other
comprehensive loss
|
|
|
(14,637)
|
|
|
|
(9,846)
|
|
Total shareholders'
equity attributable to common shareholders
|
|
|
287,044
|
|
|
|
263,355
|
|
Non-controlling
interests
|
|
|
69,706
|
|
|
|
65,691
|
|
Total shareholders'
equity
|
|
|
356,750
|
|
|
|
329,046
|
|
Total liabilities
and shareholders' equity
|
|
$
|
850,946
|
|
|
$
|
821,154
|
|
IMAX
CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In thousands of
U.S. dollars)
|
(Unaudited)
|
|
|
|
Nine Months
Ended
|
|
|
|
September
30,
|
|
|
|
2023
|
|
|
2022
|
|
Operating
Activities
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
|
29,755
|
|
|
$
|
(23,958)
|
|
Adjustments to
reconcile net income (loss) to cash provided by operating
activities:
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
46,477
|
|
|
|
42,663
|
|
Amortization of
deferred financing costs
|
|
|
1,742
|
|
|
|
2,465
|
|
Credit loss expense,
net
|
|
|
1,589
|
|
|
|
8,149
|
|
Write-downs
|
|
|
872
|
|
|
|
5,707
|
|
Deferred income tax
benefit
|
|
|
(3,724)
|
|
|
|
(3,374)
|
|
Share-based and other
non-cash compensation
|
|
|
17,830
|
|
|
|
19,510
|
|
Unrealized foreign
currency exchange loss
|
|
|
52
|
|
|
|
1,310
|
|
Unrealized investment
gains
|
|
|
(436)
|
|
|
|
(99)
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
(2,392)
|
|
|
|
(18,050)
|
|
Inventories
|
|
|
(13,771)
|
|
|
|
(10,131)
|
|
Film assets
|
|
|
(14,575)
|
|
|
|
(14,174)
|
|
Deferred
revenue
|
|
|
(4,670)
|
|
|
|
(5,989)
|
|
Changes in other
operating assets and liabilities
|
|
|
(4,141)
|
|
|
|
(3,548)
|
|
Net cash provided
by operating activities
|
|
|
54,608
|
|
|
|
481
|
|
Investing
Activities
|
|
|
|
|
|
|
Purchase of property,
plant and equipment
|
|
|
(2,541)
|
|
|
|
(5,248)
|
|
Investment in equipment
for joint revenue sharing arrangements
|
|
|
(10,705)
|
|
|
|
(14,543)
|
|
Interest in film
classified as a financial instrument
|
|
|
—
|
|
|
|
(4,731)
|
|
Acquisition of other
intangible assets
|
|
|
(5,418)
|
|
|
|
(3,246)
|
|
Acquisition of
SSIMWAVE, net of cash and cash equivalents acquired
|
|
|
—
|
|
|
|
(12,639)
|
|
Net cash used in
investing activities
|
|
|
(18,664)
|
|
|
|
(40,407)
|
|
Financing
Activities
|
|
|
|
|
|
|
Revolving credit
facility borrowings
|
|
|
31,032
|
|
|
|
4,890
|
|
Repayments of revolving
credit facility borrowings
|
|
|
(43,057)
|
|
|
|
(3,600)
|
|
Credit facility
amendment fees paid
|
|
|
—
|
|
|
|
(2,277)
|
|
Other
borrowings
|
|
|
315
|
|
|
|
—
|
|
Repurchase of common
shares
|
|
|
(4,263)
|
|
|
|
(53,581)
|
|
Repurchase of common
shares, IMAX China
|
|
|
—
|
|
|
|
(3,043)
|
|
Taxes withheld and paid
on employee stock awards vested
|
|
|
(6,458)
|
|
|
|
(3,393)
|
|
Principal payment under
finance lease obligations
|
|
|
(480)
|
|
|
|
(890)
|
|
Dividends paid to
non-controlling interests
|
|
|
(1,438)
|
|
|
|
(2,701)
|
|
Net cash used in
financing activities
|
|
|
(24,349)
|
|
|
|
(64,595)
|
|
Effects of exchange
rate changes on cash
|
|
|
607
|
|
|
|
1,961
|
|
Increase (decrease)
in cash and cash equivalents during period
|
|
|
12,202
|
|
|
|
(102,560)
|
|
Cash and cash
equivalents, beginning of period
|
|
|
97,401
|
|
|
|
189,711
|
|
Cash and cash
equivalents, end of period
|
|
$
|
109,603
|
|
|
$
|
87,151
|
|
Segment Revenue
and Gross Margin
|
|
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
|
September
30,
|
|
|
|
September
30,
|
|
(In thousands of
U.S. Dollars)
|
|
2023
|
|
|
2022
|
|
|
|
2023
|
|
|
2022
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Content
Solutions
|
|
$
|
44,214
|
|
|
$
|
21,967
|
|
|
|
$
|
107,605
|
|
|
$
|
72,499
|
|
Technology Products and
Services
|
|
|
56,169
|
|
|
|
45,542
|
|
|
|
|
171,813
|
|
|
|
126,262
|
|
Sub-total for
reportable segments
|
|
|
100,383
|
|
|
|
67,509
|
|
|
|
|
279,418
|
|
|
|
198,761
|
|
All
Other(1)
|
|
|
3,513
|
|
|
|
1,246
|
|
|
|
|
9,403
|
|
|
|
3,998
|
|
Total
|
|
$
|
103,896
|
|
|
$
|
68,755
|
|
|
|
$
|
288,821
|
|
|
$
|
202,759
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Content
Solutions
|
|
$
|
26,407
|
|
|
$
|
9,140
|
|
|
|
$
|
64,397
|
|
|
$
|
39,121
|
|
Technology Products and
Services
|
|
|
33,761
|
|
|
|
21,752
|
|
|
|
|
100,066
|
|
|
|
65,875
|
|
Sub-total for
reportable segments
|
|
|
60,168
|
|
|
|
30,892
|
|
|
|
|
164,463
|
|
|
|
104,996
|
|
All
Other(1)
|
|
|
2,547
|
|
|
|
809
|
|
|
|
|
6,190
|
|
|
|
2,512
|
|
Total
|
|
$
|
62,715
|
|
|
$
|
31,701
|
|
|
|
$
|
170,653
|
|
|
$
|
107,508
|
|
|
|
|
|
|
|
|
(1)
|
All Other includes the
results from the Company's streaming and consumer technology
business, as well as other ancillary activities.
|
IMAX CORPORATION
NON-GAAP FINANCIAL
MEASURES
(in thousands of U.S. dollars)
In this release, the Company presents adjusted net income (loss)
attributable to common shareholders and adjusted net income (loss)
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 (loss)
attributable to common shareholders and adjusted net income (loss)
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) 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 (loss) attributable to common shareholders and adjusted net
income (loss) attributable to common shareholders per basic and
diluted share are 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 well as "Adjusted EBITDA per
Credit Facility," as defined in the Company's Credit Agreement. 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 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) 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's definition of free cash flow
deducts only normal recurring capital expenditures, including its
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 September 30,
2023
|
|
For the Three Months
Ended September 30,
2022
|
|
|
Attributable
to
|
|
|
|
|
|
Attributable
to
|
|
|
|
|
|
|
Non-controlling
|
|
Less:
|
|
|
|
Non-controlling
|
|
Less:
|
|
|
|
|
Interests
and
|
|
Attributable
to
|
|
Attributable
to
|
|
Interests
and
|
|
Attributable
to
|
|
Attributable
to
|
|
|
Common
|
|
Non-controlling
|
|
Common
|
|
Common
|
|
Non-controlling
|
|
Common
|
|
(In thousands of
U.S. Dollars)
|
Shareholders
|
|
Interests
|
|
Shareholders
|
|
Shareholders
|
|
Interests
|
|
Shareholders
|
|
Reported net income
(loss)
|
$
|
|
15,019
|
|
$
|
|
3,029
|
|
$
|
|
11,990
|
|
$
|
|
(7,757)
|
|
$
|
|
1,196
|
|
$
|
|
(8,953)
|
|
Add
(subtract):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
|
6,555
|
|
|
|
1,041
|
|
|
|
5,514
|
|
|
|
2,348
|
|
|
|
(22)
|
|
|
|
2,370
|
|
Interest expense, net
of interest income
|
|
|
253
|
|
|
|
(145)
|
|
|
|
398
|
|
|
|
354
|
|
|
|
(39)
|
|
|
|
393
|
|
Depreciation and
amortization, including film asset
amortization
|
|
|
19,279
|
|
|
|
1,304
|
|
|
|
17,975
|
|
|
|
15,640
|
|
|
|
1,214
|
|
|
|
14,426
|
|
Amortization of
deferred financing costs(1)
|
|
|
492
|
|
|
|
—
|
|
|
|
492
|
|
|
|
712
|
|
|
|
—
|
|
|
|
712
|
|
EBITDA
|
$
|
|
41,598
|
|
$
|
|
5,229
|
|
$
|
|
36,369
|
|
$
|
|
11,297
|
|
$
|
|
2,349
|
|
$
|
|
8,948
|
|
Share-based and other
non-cash compensation
|
|
|
5,297
|
|
|
|
155
|
|
|
|
5,142
|
|
|
|
5,544
|
|
|
|
(27)
|
|
|
|
5,571
|
|
Unrealized investment
gains
|
|
|
(364)
|
|
|
|
(93)
|
|
|
|
(271)
|
|
|
|
(35)
|
|
|
|
—
|
|
|
|
(35)
|
|
Transaction-related
expenses
|
|
|
3,086
|
|
|
|
—
|
|
|
|
3,086
|
|
|
|
955
|
|
|
|
—
|
|
|
|
955
|
|
Write-downs, including
asset impairments and credit
loss expense
|
|
|
921
|
|
|
|
164
|
|
|
|
757
|
|
|
|
1,083
|
|
|
|
66
|
|
|
|
1,017
|
|
Adjusted EBITDA per
Credit Facility
|
$
|
|
50,538
|
|
$
|
|
5,455
|
|
$
|
|
45,083
|
|
$
|
|
18,844
|
|
$
|
|
2,388
|
|
$
|
|
16,456
|
|
Revenues attributable
to common shareholders(2)
|
$
|
|
103,896
|
|
$
|
|
8,028
|
|
$
|
|
95,868
|
|
$
|
|
68,755
|
|
$
|
|
4,257
|
|
$
|
|
64,498
|
|
Adjusted EBITDA margin
attributable to common
shareholders
|
49 %
|
|
68 %
|
|
47 %
|
|
27 %
|
|
56 %
|
|
26 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Twelve
Months Ended September 30,
2023
|
|
For the Twelve
Months Ended September 30,
2022
|
|
|
Attributable
to
|
|
|
|
|
|
Attributable
to
|
|
|
|
|
|
|
Non-controlling
|
|
Less:
|
|
|
|
Non-controlling
|
|
Less:
|
|
|
|
|
Interests
and
|
|
Attributable
to
|
|
Attributable
to
|
|
Interests
and
|
|
Attributable
to
|
|
Attributable
to
|
|
|
Common
|
|
Non-controlling
|
|
Common
|
|
Common
|
|
Non-controlling
|
|
Common
|
|
(In thousands of
U.S. Dollars)
|
Shareholders
|
|
Interests
|
|
Shareholders
|
|
Shareholders
|
|
Interests
|
|
Shareholders
|
|
Reported net income
(loss)
|
$
|
|
33,836
|
|
$
|
|
8,428
|
|
$
|
|
25,408
|
|
$
|
|
(10,579)
|
|
$
|
|
4,734
|
|
$
|
|
(15,313)
|
|
Add
(subtract):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
|
16,917
|
|
|
|
2,658
|
|
|
|
14,259
|
|
|
|
19,239
|
|
|
|
2,027
|
|
|
|
17,212
|
|
Interest expense, net
of interest income
|
|
|
2,024
|
|
|
|
(286)
|
|
|
|
2,310
|
|
|
|
970
|
|
|
|
(327)
|
|
|
|
1,297
|
|
Depreciation and
amortization, including film asset
amortization
|
|
|
60,475
|
|
|
|
5,260
|
|
|
|
55,215
|
|
|
|
58,175
|
|
|
|
5,056
|
|
|
|
53,119
|
|
Amortization of
deferred financing costs(1)
|
|
|
2,454
|
|
|
|
—
|
|
|
|
2,454
|
|
|
|
3,229
|
|
|
|
—
|
|
|
|
3,229
|
|
EBITDA
|
$
|
|
115,706
|
|
$
|
|
16,060
|
|
$
|
|
99,646
|
|
$
|
|
71,034
|
|
$
|
|
11,490
|
|
$
|
|
59,544
|
|
Share-based and other
non-cash compensation
|
|
|
25,893
|
|
|
|
835
|
|
|
|
25,058
|
|
|
|
27,031
|
|
|
|
845
|
|
|
|
26,186
|
|
Unrealized investment
gains
|
|
|
(407)
|
|
|
|
(93)
|
|
|
|
(314)
|
|
|
|
(128)
|
|
|
|
—
|
|
|
|
(128)
|
|
Transaction-related
expenses
|
|
|
3,408
|
|
|
|
—
|
|
|
|
3,408
|
|
|
|
955
|
|
|
|
—
|
|
|
|
955
|
|
Write-downs, including
asset impairments and credit
loss expense
|
|
|
4,328
|
|
|
|
561
|
|
|
|
3,767
|
|
|
|
15,675
|
|
|
|
1,538
|
|
|
|
14,137
|
|
Executive transition
costs
|
|
|
1,353
|
|
|
|
—
|
|
|
|
1,353
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Adjusted EBITDA per
Credit Facility
|
$
|
|
150,281
|
|
$
|
|
17,363
|
|
$
|
|
132,918
|
|
$
|
|
114,567
|
|
$
|
|
13,873
|
|
$
|
|
100,694
|
|
Revenues attributable
to common shareholders(2)
|
$
|
|
386,867
|
|
$
|
|
28,260
|
|
$
|
|
358,607
|
|
$
|
|
311,331
|
|
$
|
|
24,347
|
|
$
|
|
286,984
|
|
Adjusted EBITDA margin
attributable to common
shareholders
|
39 %
|
|
61 %
|
|
37 %
|
|
37 %
|
|
57 %
|
|
35 %
|
|
|
|
|
|
|
|
|
(1)
|
The amortization of
deferred financing costs is recorded within Interest Expense in the
Condensed Consolidated Statement of Operations.
|
|
|
(2)
|
Revenues attributable
to common shareholders calculated as follows:
|
|
|
|
Three months
ended
|
|
|
Three months
ended
|
|
|
Twelve months
ended
|
|
|
Twelve months
ended
|
|
(In thousands of
U.S. Dollars)
|
September 30,
2023
|
|
|
September 30,
2022
|
|
|
September 30,
2023
|
|
|
September 30,
2022
|
|
Total
revenues
|
|
|
|
|
$
|
|
103,896
|
|
|
|
|
|
|
$
|
|
68,755
|
|
|
|
|
|
|
$
|
|
386,867
|
|
|
|
|
|
$
|
|
311,331
|
|
Greater China
revenues
|
$
|
|
28,297
|
|
|
|
|
|
|
$
|
|
14,889
|
|
|
|
|
|
|
$
|
|
99,703
|
|
|
|
|
|
|
$
|
|
84,769
|
|
|
|
|
Non-controlling
interest ownership percentage(3)
|
|
28.37 %
|
|
|
|
|
|
|
|
28.59 %
|
|
|
|
|
|
|
|
28.34 %
|
|
|
|
|
|
|
|
28.72 %
|
|
|
|
|
Deduction for
non-controlling interest share of
revenues
|
|
|
|
|
|
|
(8,028)
|
|
|
|
|
|
|
|
|
(4,257)
|
|
|
|
|
|
|
|
|
(28,260)
|
|
|
|
|
|
|
|
(24,347)
|
|
Revenues attributable
to common shareholders
|
|
|
|
|
$
|
|
95,868
|
|
|
|
|
|
|
$
|
|
64,498
|
|
|
|
|
|
|
$
|
|
358,607
|
|
|
|
|
|
$
|
|
286,984
|
|
|
|
(3)
|
Weighted average
ownership percentage for change in non-controlling interest
share.
|
Adjusted Net
Income (Loss) Attributable to Common Shareholders and Adjusted Net
Income (Loss) Per Share
|
|
|
|
Three Months Ended
September 30,
|
|
|
|
2023
|
|
|
2022
|
|
(In thousands of
U.S. Dollars, except per share amounts)
|
|
Net
Income
|
|
|
Per
Share
|
|
|
Net
Loss
|
|
|
Per
Share
|
|
Net income (loss)
attributable to common shareholders
|
|
$
|
11,990
|
|
|
$
|
0.22
|
|
|
$
|
(8,953)
|
|
|
$
|
(0.16)
|
|
Adjustments(1):
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation
|
|
|
5,063
|
|
|
|
0.09
|
|
|
|
5,431
|
|
|
|
0.10
|
|
COVID-19 government
relief benefits, net
|
|
|
—
|
|
|
|
—
|
|
|
|
(212)
|
|
|
|
—
|
|
Unrealized investment
gains
|
|
|
(454)
|
|
|
|
(0.01)
|
|
|
|
(34)
|
|
|
|
—
|
|
Transaction-related
expenses
|
|
|
3,086
|
|
|
|
0.06
|
|
|
|
955
|
|
|
|
0.02
|
|
Tax impact on items
listed above
|
|
|
(275)
|
|
|
|
—
|
|
|
|
(214)
|
|
|
|
—
|
|
Adjusted net income
(loss)(1)
|
|
$
|
19,410
|
|
|
$
|
0.35
|
|
|
$
|
(3,027)
|
|
|
$
|
(0.05)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding — basic
|
|
|
|
|
|
54,618
|
|
|
|
|
|
|
56,039
|
|
Weighted average shares
outstanding — diluted
|
|
|
|
|
|
55,535
|
|
|
|
|
|
|
56,039
|
|
|
|
|
Nine Months Ended
September 30,
|
|
|
|
2023
|
|
|
2022
|
|
(In thousands of
U.S. dollars, except per share amounts)
|
|
Net
Income
|
|
|
Per
Share
|
|
|
Net
Loss
|
|
|
Per
Share
|
|
Net income (loss)
attributable to common shareholders
|
|
$
|
22,795
|
|
|
$
|
0.41
|
|
|
$
|
(25,413)
|
|
|
$
|
(0.44)
|
|
Adjustments(1):
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation
|
|
|
17,110
|
|
|
|
0.31
|
|
|
|
18,651
|
|
|
|
0.33
|
|
COVID-19 government
relief benefits, net
|
|
|
—
|
|
|
|
—
|
|
|
|
(373)
|
|
|
|
(0.01)
|
|
Unrealized investment
gains
|
|
|
(526)
|
|
|
|
(0.01)
|
|
|
|
(98)
|
|
|
|
—
|
|
Transaction-related
expenses
|
|
|
3,242
|
|
|
|
0.06
|
|
|
|
955
|
|
|
|
0.02
|
|
Executive transition
costs
|
|
|
1,353
|
|
|
|
0.02
|
|
|
|
—
|
|
|
|
—
|
|
Tax impact on items
listed above
|
|
|
(1,184)
|
|
|
|
(0.02)
|
|
|
|
(1,071)
|
|
|
|
(0.02)
|
|
Adjusted net income
(loss)(1)
|
|
$
|
42,790
|
|
|
$
|
0.77
|
|
|
$
|
(7,349)
|
|
|
$
|
(0.13)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding — basic
|
|
|
|
|
|
54,424
|
|
|
|
|
|
|
57,301
|
|
Weighted average shares
outstanding — diluted
|
|
|
|
|
|
55,261
|
|
|
|
|
|
|
57,301
|
|
|
|
|
|
|
|
|
(1)
|
Reflects amounts
attributable to common shareholders.
|
Free Cash
Flow
|
|
|
|
Nine Months
Ended
|
|
|
Nine Months
Ended
|
|
(In thousands of
U.S. Dollars)
|
|
September 30,
2023
|
|
|
September 30,
2022
|
|
Net cash provided by
operating activities
|
|
$
|
|
54,608
|
|
|
$
|
481
|
|
Net cash used in
capital expenditures
|
|
|
|
(18,664)
|
|
|
|
(23,037)
|
|
Free cash
flow
|
|
$
|
|
35,944
|
|
|
$
|
(22,556)
|
|
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SOURCE IMAX Corporation