- Strong film performance along with expanded margins result in over 50% growth in adjusted net income after non-controlling interest in Q1 2015 compared to Q1 2014
- First quarter revenues increase 29% from prior year period to $62.2 million, driven by strong box office and higher installations
- Q1 2015 box office of $166 million, up 20% from Q1 2014, with 64% generated from international markets
- Strategic initiatives such as roll-out of laser system, recent long-term film deals with Disney and Warner Brothers, new theatre signings and strong theatre openings position Company well for future growth
NEW YORK, April 30, 2015 /PRNewswire/ -- IMAX Corporation (NYSE: IMAX) today reported first quarter 2015 revenues of $62.2 million, adjusted EBITDA as calculated in accordance with the Company's credit facility of $16.0 million, adjusted net income after non-controlling interest of $5.0 million, or $0.07 per diluted share, and reported net income after non-controlling interest of $0.4 million, or $nil per diluted share. The Company also reported a first quarter global per screen average of $202,900.
"This is a very exciting time for IMAX," said IMAX CEO Richard L. Gelfond. "Our continued progress in expanding our theatre network globally, along with our strong film performance during the first quarter, resulted in robust financial results with almost 30% revenue growth and over 50% adjusted earnings growth compared to the same period last year. With record results from Furious 7 in April and a great start to the Avenger's sequel internationally, the momentum has continued into the second quarter."
Network Growth Update
The total IMAX® theatre network consisted of 943 systems as of March 31, 2015, of which 820 were in commercial multiplexes. There were 403 theatres in backlog as of March 31, 2015, compared to 431 in backlog as of March 31, 2014. In the first quarter of 2015, the Company signed contracts for 21 theatres, of which 20 were for new locations and 1 was for an upgrade. In the quarter, the Company also installed 13 theatres, of which 11 were for new theatre locations and 2 were upgrades. For a breakdown of theatre system signings, installations, network and backlog by type, please see the end of this press release.
"The year has gotten off to a very positive start with film performance, network expansion, technology advancements and openings in new markets, all showing promise," continued Gelfond. "With the successful launch of our laser system to rave reviews, our recent long-term movie deals with Disney and Warner Brothers, our installation pace and new signings and strong box office results so far this year – we continue to solidify our leading position in the entertainment ecosystem and set the stage for future long-term growth."
First-Quarter Segment Results
Revenue from sales and sales-type leases was $8.6 million in the first quarter of 2015, compared to $4.5 million in the first quarter of 2014, primarily reflecting the installation of 5 full, new theatre systems under sales and sales-type lease arrangements in the most recent first quarter, compared to the 3 sales-type theatres the Company installed in the first quarter of 2014. In addition, there were 2 digital system upgrades (1 sale and 1 operating lease) in existing locations in the first quarter of 2015, compared to 2 upgrades (1 sale and 1 joint revenue-sharing) in the first quarter of 2014.
Revenue from joint revenue-sharing arrangements was $15.9 million in the quarter, compared to $10.9 million in the prior-year period. During the quarter, the Company installed 6 new theatres under joint revenue-sharing arrangements, compared to 5 in 2014. The Company had 457 theatres operating under joint revenue-sharing arrangements as of March 31, 2015, as compared to 388 joint-venture theatres one year prior.
Production and IMAX DMR® (Digital Re-Mastering) revenues were $17.7 million in the first quarter of 2015, compared to $15.2 million in the first quarter of 2014. Gross box office from DMR titles was $165.6 million in the first quarter of 2014, compared to $138.5 million in the prior-year period. The average global DMR box office per screen in the first quarter of 2014 was $202,900 compared to $197,000 in the prior-year period.
The Company will host a conference call today at 8:30 AM ET to discuss its first quarter 2015 financial results. To access the call via telephone, interested parties in the US and Canada should dial (800) 524-8950 approximately 5 to 10 minutes before the call begins. International callers should dial (416) 260-0113. The conference ID for the call is 1956369. A replay of the call will be available via webcast on the 'Investor Relations' section of www.imax.com or via telephone by dialing (888) 203-1112 (US and Canada), or (647) 436-0148 (international). The Conference ID for the telephone replay is 1956369.
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 theatres 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.
IMAX is headquartered in New York, Toronto and Los Angeles, with offices in London, Tokyo, Shanghai and Beijing. As of March 31, 2015, there were 943 IMAX theatres (820 commercial multiplexes, 18 commercial destinations and 105 institutions) in 63 countries.
IMAX®, IMAX® 3D, IMAX DMR®, Experience It In IMAX®, An IMAX 3D Experience®, The IMAX Experience®, IMAX Is Believing® and IMAX nXos® are trademarks of IMAX Corporation. More information about the Company can be found at www.imax.com. You may also connect with IMAX on Facebook (www.facebook.com/imax), Twitter (www.twitter.com/imax) and YouTube (www.youtube.com/imaxmovies).
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This press 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. Important factors that could affect these statements include, but are not limited to, general economic, market or business conditions; the opportunities (or lack thereof) that may be presented to and pursued by the Company; the performance of IMAX DMR films; competitive actions by other companies; conditions in the in-home and out-of-home entertainment industries; the signing of theater system agreements; changes in laws or regulations; conditions, changes and developments in the commercial exhibition industry; the failure to convert theater system backlog into revenue; 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; risks related to the Company's growth and operations in China; the failure to respond to change and advancements in digital technology; risks related to the acquisition of AMC Entertainment Holdings, Inc. by Dalian Wanda Group Co., Ltd.; risks related to new business initiatives; the potential impact of increased competition in the markets within which the Company operates; risks related to the Company's inability to protect the Company's intellectual property; risks related to Eastman Kodak bankruptcy and the possibility of constrained film supply; risks related to the Company's implementation of a new enterprise resource planning system; risks related to the Company's prior restatements and the related litigation; and other factors, many of which are beyond the control of the Company. These factors, other risks and uncertainties and financial details are discussed in IMAX's most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.