NEW YORK, July 26, 2012 /PRNewswire/ –
- Q2 2012 Revenues Increased 23% to $70.2 million
- Q2 2012 Adjusted Net Income Increased 206% to $14.1 million
- New Theatre Signings Momentum Leads to Increase in 2012 Scheduled Installations
IMAX Corporation (NYSE: IMAX; TSX: IMX) today reported second quarter 2012 revenues of $70.2 million, adjusted EBITDA as calculated in accordance with the Company’s Credit Facility of $29.0 million, adjusted net income of $14.1 million, or $0.21 per diluted share, and reported net income of $11.1 million, or $0.16 per diluted share. For reconciliations of adjusted net income to reported net income and for the definition of adjusted EBITDA, please see the tables at the end of this press release.
Network Growth Update
In the second quarter of 2012, the Company signed contracts for 40 theatre systems and installed 20 theatre systems. Based on the number of recent theatre signings, the Company has increased its 2012 installations scheduled only from current backlog to approximately 110 new theatres, from its previous outlook of 95 to 100 new theatres from backlog. In addition, the Company may sign agreements for new theatres that install within that same year. The Company cautions that installations can slip from period to period, usually for reasons beyond its control.
There were 280 theatre systems in backlog as of June 30, 2012, compared to 261 systems in backlog as of March 31, 2012 and 294 systems in backlog as of June 30, 2011. For a breakdown of system signings, installations and backlog by type, please see the end of this press release.
Second Quarter Segment Results
Second quarter 2012 total film revenue was $26.5 million, compared to $18.7 million in the second quarter of 2011. Production and IMAX DMR® revenues were $19.7 million in the second quarter of 2012, versus $12.4 million in the year-ago period. Gross box office from DMR titles was $173.5 million in the second quarter of 2012, compared to $107.7 million in the second quarter of 2011. The average DMR box office per screen in the second quarter of 2012 was $341,900, compared to $315,700 in the second quarter of 2011.
“Differentiation continues to be a key focus of our film strategy in 2012 and beyond,” added Mr. Gelfond. “Several recent titles have featured various elements of IMAX differentiation, including Prometheus and The Amazing Spider-Man. The highlight of our third quarter, Christopher Nolan’s The Dark Knight Rises, includes a record of over 70-plus minutes of IMAX footage. We believe that the success of this film will drive longer term benefits to our business like continued theatre signings momentum and interest in IMAX differentiation among filmmakers. In 2013, we will achieve an exciting milestone with the release of two movies featuring sequences filmed with IMAX cameras, Paramount Pictures’ sequel to Star Trek and Lionsgate’s Catching Fire, the second installment of The Hunger Games series.”
In the second quarter of 2012, revenue from joint revenue sharing arrangements was $15.6 million, compared to $8.3 million in the prior-year period. During the quarter, the Company installed 9 new theatres under joint revenue sharing arrangements, compared to 23 in the year-ago period. As of June 30, 2012, there were 274 IMAX theatres operating under joint revenue sharing arrangements, compared to 204 joint revenue sharing theatres open as of June 30, 2011.
In the second quarter of 2012, IMAX systems revenue was $18.0 million, compared to $20.5 million in the second quarter of 2011, primarily reflecting the installation of 11 full, new theatre systems in the most recent second quarter, compared to a total of 18 systems installed in the second quarter of 2011, which included 11 full, new systems, one used system and six digital system upgrades.
Mr. Gelfond concluded, “Global demand for The IMAX Experience® is as strong as ever, as evidenced by our box office performance, our upcoming lineup of films and a robust pipeline of theatre deals. We are still in the early stages of our network expansion, having recently increased the estimated number of worldwide IMAX zones by 10% to 1,700 theatres. While we continue to grow at a rapid pace, we are also reinvesting in our brand and technology to even further differentiate the IMAX platform, solidifying our position as the premier global blockbuster entertainment platform.”
Second quarter 2012 total revenues were $70.2 million, adjusted EBITDA was $29.0 million, adjusted net income was $14.1 million, or $0.21 per diluted share, and reported net income was $11.1 million, or $0.16 per diluted share. For the second quarter of 2011, total revenues were $57.2 million, adjusted net income was $4.6 million, or $0.07 per diluted share, reported net income was $1.8 million, or $0.03 per diluted share, and adjusted EBITDA was $16.2 million.
For the six months ended June 30, 2012, total revenues were $125.8 million, adjusted EBITDA was $45.5 million, adjusted net income was $18.1 million, or $0.27 per diluted share, and reported net income was $13.7 million, or $0.20 per diluted share. For the six months ended June 30, 2011, total revenues were $102.4 million, adjusted EBITDA was $25.2 million, adjusted net income was $7.1 million, or $0.10 per diluted share, and reported net income was $0.8 million, or $0.01 per diluted share.
Adjusted Net Income and Adjusted Earnings Per Diluted Share Calculation – Beginning Quarter Ended September 30, 2012:
Beginning in the third quarter of 2012, the Company intends to adopt a revised definition of “Adjusted Net Income” and “Adjusted Earnings Per Diluted Share” to exclude all stock-based compensation and one-time items. In addition, Adjusted Net Income and Adjusted Earnings Per Diluted Share will be fully tax-affected. The Company believes that this revised definition should provide for a more straightforward and conventional calculation of adjusted earnings.
The Company will host a conference call today at 8:30 AM ET to discuss its second quarter 2012 financial results. To access the call via telephone, interested parties should dial (866) 321-6651 approximately 5 to 10 minutes before it begins. International callers should dial (416) 642-5212. The participant passcode for the call is 5745205. This call is also being webcast by Thomson Financial and can be accessed on the ‘Investor Relations’ section of www.imax.com. 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, or (647) 436-0148 for international callers. The participant passcode for the telephone replay is 5745205.
About IMAX Corporation
IMAX Corporation is one of the world’s leading entertainment and technology companies, specializing in the creation and delivery of premium, awe-inspiring entertainment experiences. With a growing suite of cutting-edge motion picture and sound technologies, and a globally recognized entertainment brand, IMAX is singularly situated at the convergence of the entertainment industry, innovation and the digital media world. The industry’s top filmmakers and studios are utilizing IMAX theatres to connect with audiences in extraordinary ways, and as such, the IMAX network is among the most important and successful theatrical distribution platforms for major event films around the globe. The Company’s new digital projection and sound systems – combined with a growing blockbuster film slate – are fueling the rapid expansion of the IMAX network in established markets such as North America, Western Europe, and Japan, as well as emerging markets such as China and Russia. IMAX deliver the world’s best cinematic presentations using proprietary IMAX®, IMAX 3D®, and IMAX DMR® (Digital Re-Mastering) technologies. IMAX DMR enables virtually any motion picture to be transformed into the unparalleled image and sound quality of The IMAX Experience®.
IMAX is headquartered in New York, Toronto and Los Angeles, with offices in London, Tokyo, Shanghai and Beijing. As of June 30, 2012, there were 663 IMAX theatres (529 commercial multiplex, 20 commercial destination and 114 institutional) in 52 countries.
IMAX®, IMAX® 3D, IMAX DMR®, Experience It In IMAX®, An IMAX 3D Experience®, The IMAX Experience® and IMAX Is Believing® 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).
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, including the length and severity of the current economic downturn, the performance of IMAX DMR films, the opportunities that may be presented to and pursued by IMAX, competitive actions by other companies, conditions in the in-home and out-of home entertainment industries, the signing of theatre system agreements, changes in law or regulations, conditions, changes and developments in the commercial exhibition industry, the failure to respond to changes and advancements in digital technology, the failure to convert theatre system backlog into revenue, new business initiatives, investments and operations in foreign jurisdictions and any future international expansion, the inability to protect IMAX’s intellectual property foreign currency fluctuations and IMAX’s prior restatements and the related litigation. These factors and other risks and uncertainties are discussed in IMAX’s most recent Annual Report on Form 10-K and most recent Quarterly Reports on Form 10-Q.