March 3, 2016—IMAX Corporation has reported results for the fourth quarter and full year 2015, including its highest-ever quarter in revenue and among the highest-ever quarters for adjusted EBITDA and adjusted net earnings per diluted share (“EPS”) in the Company's history.
“2015 was undoubtedly a historic year for IMA—we delivered a record $1 billion in global box office, added 136 theatres to our network to bring our global total to over 1000 screens, launched our highly anticipated laser projection system, and of course, successfully listed our China business on the Hong Kong Stock Exchange,” said IMAX CEO Richard L. Gelfond. “IMAX is clearly benefiting from a global trend in the film industry to make more big-budget blockbuster movies. And with so many major movie franchises releasing important sequels in 2016 and 2017, we believe we're extremely well positioned for success in the years ahead.”
Fourth-Quarter 2015 Results
The Company reported revenues of $119.3 million, up 16.5% from the year-ago period. Adjusted EBITDA, as calculated in accordance with the Company's credit facility, grew 5.8% to $48.1 million. Adjusted net income after non-controlling interest of $27.3 million grew 12.6%. Adjusted diluted earnings per share of $0.39also grew 14.7%. Reported net income after non-controlling interest was $22.5 million, or $0.32 per diluted share. For reconciliations of adjusted net income to reported net income and for the definition of adjusted EBITDA and free cash flow, please see the tables at the end of this press release. The Company also reported a fourth-quarter global per-screen average of $318,600, up 9% over the year-ago period.
Revenue
- Sales and Sales-Type Leases (STLs) revenue of $33.0 million, compared to$33.2 million in the fourth quarter of 2014, primarily reflects the installation of 24 full, new theatre systems under sales and sales-type lease arrangements, compared to 26 installations last year. In addition there were two system upgrades in existing locations, compared to two upgrades in the year ago period.
- Revenue from joint revenue-sharing arrangements was $31.9 million in the quarter, compared to $23.0 million in the prior-year period. During the quarter, the Company installed 32 new theatres under joint revenue-sharing arrangements, compared to 29 in the year ago period. The Company had 529 theatres operating under joint revenue-sharing arrangements as ofDec. 31, 2015, as compared to 451 theatres one year prior.
- Production and IMAX DMR® (Digital Re-Mastering) revenues were $31.9 million in the fourth quarter of 2015, compared to $25.6 million in the fourth quarter of 2014. Gross box office from DMR titles was $288.4 million in the fourth quarter of 2015, up 27.1% from $226.9 million in the prior-year period. The average global DMR box office per screen in the fourth quarter of 2015 was $318,600 compared to $292,200 in the prior-year period.
Network
- Signings—52 theatre systems were signed in the fourth quarter of 2015, of which none were upgrades, bringing total signings for the year to 138, of which five were upgrades. Backlog level was replenished to 372 systems at year end.
- Installations—62 theatre systems were installed in the quarter, of which six were upgrades of existing theatre locations.
Full-Year 2015 Results
Full-year 2015 revenues of $373.8 million grew 28.7%. Adjusted EBITDA, as calculated in accordance with the Company's credit facility, rose 29.8% to $140.8 million. Adjusted net income of $73.0 million grew 39.0% and adjusted net earnings per diluted share of $1.02 grew 36.0%. Reported net income attributable to common shareholders was $55.8 million, or $0.78 per diluted share. The Company also reported a global 2015 per-screen average of $1,155,800, up 13.2% from the prior year.
The full-year installation total grew to 154 theatre systems, of which 18 were upgrades, compared with 121 and eight, respectively, in the prior-year period. The total IMAX® theatre network consisted of 1,061 systems as of Dec. 31, 2015, of which 943 were in commercial multiplexes. IMAX signed contracts for 138 theatres in 2015, across 24 countries, resulting in 372 theatre systems in backlog as of Dec. 31, 2015, compared to 397 theatre systems in backlog as of Dec. 31, 2014. The Company's top three markets for signings were China, the United States and Japan. For a breakdown of theatre system signings, installations, network and backlog by type, please see the end of this press release.
“As we look to 2016, we are very encouraged by what we see in the marketplace regarding our network expansion opportunities not only in China, but in other strategically important markets such as Japan, the Middle East and continental Europe,” said Mr. Gelfond. “With more than 1,000 theatres in our global network, $1 billion in box office running through our screens, and more than $300 million in cash and virtually no debt, we believe we have significant opportunities to take our Company to the next level.”
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 inLondon, Tokyo, Shanghai and Beijing. As of Dec. 31, 2015, there were 1,061 IMAX theatres (943 commercial multiplexes, 19 commercial destinations and 99 institutions) in 67 countries. On Oct. 8, 2015, shares of IMAX China, a subsidiary of IMAX Corp., began trading on the Hong Kong Stock Exchange under the stock code “HK.1970.”
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).
Source: IMAX Corporation
