HIGHLIGHTS
- IMAX delivers $169 million in global box office in the third quarter, a 28% increase over Q3 2013
- Q3 2014 adjusted EPS of $0.11, up 83% compared to Q3 2013, leading to record quarterly operating cash flow of $36.6 million
- Company signs deals for 42 theater systems in the third quarter, bringing backlog to 439 theaters
October 23, 2014—IMAX Corporation today reported third quarter 2014 revenues of $60.7 million, adjusted EBITDA as calculated in accordance with the Company's credit facility of $17.6 million, adjusted net income, after non-controlling interest, of $7.8 million, or $0.11 per diluted share, and reported net income, after non-controlling interest, of $4.9 million, or $0.07 per diluted share.
“The third quarter further validates our ongoing commitment to delivering bottom line results and advancing our corporate initiatives,” stated Richard L. Gelfond, Chief Executive Officer of IMAX Corporation. “We were able to leverage the strong box office across a growing theater network, expand margins and generate our strongest quarter ever for operating cash flow.”
Network Growth Update
The total IMAX® theater network consisted of 880 systems as of September 30, 2014, of which 751 were in commercial multiplexes. There were 439 theaters in backlog as of September 30, 2014, compared to 356 in backlog as of September 30, 2013. In the third quarter of 2014, the Company signed contracts for 42 theaters systems, of which 36 were for new locations and 6 were for system upgrades. In the quarter, the Company installed 20 IMAX theater systems, all of which were for new theater locations. For a breakdown of theater system signings, installations, network and backlog by type, please see the end of this press release.
“We continue to see robust worldwide signing activity, including 42 new deals this quarter, bringing our year-to-date signings total to over 100, which really demonstrates the demand for IMAX globally,” continued Gelfond. “I am also extremely enthusiastic about a demonstration I saw of our new laser projection system this quarter; it is truly spectacular. Couple this with our operating leverage potential and our ongoing focus on marketing and quality, and I believe we are well positioned to take advantage of what are shaping up to be strong film years in 2015 and 2016.”
Third-Quarter Segment Results
- Production and IMAX DMR® (Digital Re-Mastering) revenues totaled $18.4 million in the third quarter of 2014, compared to $14.5 million in the third quarter of 2013. Gross box office from DMR titles was $169.0 million in the third quarter of 2014, compared to $132.5 million in the prior-year period. The average global DMR box office per screen in the third quarter of 2014 was $227,900 compared to $207,500 in the prior-year period.
- Revenue from joint revenue-sharing arrangements was $15.2 million in the quarter, compared to $12.0 million in the prior-year period. During the quarter, the Company installed 14 new theaters under joint revenue-sharing arrangements, compared to 13 in the year-ago period. The Company had 422 theaters operating under joint revenue-sharing arrangements as of September 30, 2014, as compared to 351 theaters one year prior.
- Revenue from sales and sales-type leases was $6.6 million in the third quarter of 2014, compared to $6.4 million in the third quarter of 2013, resulting from the installation of 6 full, new theater systems under sales and sales-type lease arrangements compared to the 5 installed in the year-ago period. There were no digital upgrades in the third quarter of 2014, as compared to the 9 digital upgrades the Company installed in the same period last year.
2014 DMR Films
To date, IMAX has announced 34 titles to be released in 2014. The Company released 38 titles in 2013. The Company remains in discussions with every major Hollywood studio regarding future titles.
- Jack Ryan: Shadow Recruit: The IMAX Experience (Paramount Pictures, January 2014);
- I, Frankenstein: An IMAX 3D Experience (Lionsgate, January 2014);
- The Monkey King: The IMAX Experience (Global Star Productions, January 2014, China only);
- Robocop: The IMAX Experience (Metro-Goldwyn-Mayer Studios, Inc., February 2014);
- 300: Rise of an Empire: An IMAX 3D Experience (Warner Bros. Pictures, March 2014);
- Need for Speed: An IMAX 3D Experience (Walt Disney Studios, March 2014, select international markets);
- Divergent: The IMAX Experience (Summit Entertainment, March 2014);
- Noah: The IMAX Experience (Paramount Pictures, March 2014);
- Captain America: The Winter Soldier: An IMAX 3D Experience (Marvel Entertainment, April 2014);
- Transcendence: The IMAX Experience (Warner Bros. Pictures, April 2014);
- The Amazing Spider-Man 2: An IMAX 3D Experience (Sony Pictures, May 2014);
- Godzilla: An IMAX 3D Experience (Warner Bros. Pictures, May 2014);
- Coming Home: The IMAX Experience (Le Vision Pictures, May 2014, China Only);
- Maleficent: An IMAX 3D Experience (Walt Disney Studios, May 2014);
- Edge of Tomorrow: An IMAX 3D Experience (Warner Bros. Pictures, June 2014);
- How to Train Your Dragon 2: An IMAX 3D Experience (DreamWorks Animation, June 2014);
- Transformers: Age of Extinction: An IMAX 3D Experience (Paramount Pictures, June 2014);
- Hercules: An IMAX 3D Experience (Paramount Pictures, July 2014);
- Lucy: The IMAX Experience (Universal Pictures, August 2014, select international markets);
- The White Haired Witch of Lunar Kingdom: An IMAX 3D Experience (Bona Film Group, August 2014, China only);
- Guardians of the Galaxy: An IMAX 3D Experience (Walt Disney Studios, August 2014);
- Teenage Mutant Ninja Turtles: An IMAX 3D Experience (Paramount Pictures, August 2014, select international markets);
- The Expendables 3: The IMAX Experience (Lionsgate, September 2014, China only);
- Forrest Gump: The IMAX Experience (Paramount Pictures, September 2014);
- The Maze Runner: The IMAX Experience (20th Century Fox, September 2014);
- The Equalizer: The IMAX Experience (Sony Pictures, September 2014);
- Breakup Buddies: The IMAX Experience (China Film Group, September 2014, China only);
- Bang Bang: The IMAX Experience (Fox Star Studios, October 2014, India only);
- Dracula Untold: The IMAX Experience (Universal Studios, October 2014);
- John Wick: The IMAX Experience (Summit Entertainment, October 2014);
- Fury: The IMAX Experience (Sony Pictures Entertainment, October 2014, select international markets);
- Interstellar: The IMAX Experience (Paramount Pictures and Warner Bros. Pictures, November 2014);
- The Hobbit: The Battle of the Five Armies: An IMAX 3D Experience (Warner Bros. Pictures, December 2014); and
- Gone with the Bullets: An IMAX 3D Experience (Dongwang Yibudaowei Films Co., December 2014, China only)
2015 DMR Films
To date, the Company has announced the following 8 titles to be released to the IMAX theater network in 2015:
- Seventh Son: An IMAX 3D Experience (Universal Studios, February 2015);
- Fast & Furious 7: The IMAX Experience (Universal Studios, April 2015);
- The Avengers: Age of Ultron: An IMAX 3D Experience (Walt Disney Studios, May 2015);
- Tomorrowland: The IMAX Experience (Walt Disney Studios, May 2015);
- Jurassic World: An IMAX 3D Experience (Universal Studios, June 2015);
- Everest: An IMAX 3D Experience (Universal Studios, September 2015);
- Crimson Peak: The IMAX Experience (Universal Studios, October 2015); and
- Star Wars: Episode VII: An IMAX 3D Experience (Walt Disney Studios, December 2015).
The Company anticipates that a similar number of IMAX DMR films will be released to the IMAX network in 2015 to the 35 slated for release in 2014 and the 38 films that were released to the IMAX network in 2013.
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