Film Production and Distribution - The Company released a total of 118 films in 2024, an increase of 20% from 98 films in 2023, including 40 Hollywood films and 61 local language films[48]. - The Company had distribution rights for approximately 62 films covering various subjects as of December 31, 2024[54]. - The Company expects to release at least 12 Filmed for IMAX titles in 2025, with 31 additional titles already announced for the year[52]. - The Company expanded its international film strategy by supplementing Hollywood films with local language films in markets like China, Japan, and India[46]. IMAX Systems and Technology - The IMAX network had 607 IMAX Laser Systems and 1,178 IMAX Xenon Systems as of December 31, 2024, with a backlog of 250 new Laser Systems and 105 new Xenon Systems[64]. - The Company had a footprint of 265 connected locations in the IMAX network, capable of delivering live and interactive events[55]. - The number of commercial multiplex IMAX Systems increased to 1,735 as of December 31, 2024, compared to 1,693 in 2023, indicating a growth of about 2.5%[86]. - The company estimates a worldwide commercial multiplex addressable market of 3,619 locations, with a current market penetration of only 48%[82]. - The Company continues to evolve its platform for innovative IMAX events, including live coverage of the 2024 Paris Olympics Opening Ceremony[60]. - The IMAX Film Remastering process enhances films for IMAX formats, providing up to 26% more image on standard IMAX screens[46]. - More than 300 IMAX Enhanced titles have been released across five major streaming platforms, with over 15 million certified devices estimated to be in use as of December 31, 2024[79]. - The company has focused significant R&D efforts on IMAX Laser Systems, which provide greater brightness and clarity while consuming less power compared to existing digital technology[102]. Financial Performance - Total revenues for 2024 were $352.2 million, a decrease of 6% from $374.8 million in 2023[465]. - Net income attributable to common shareholders for 2024 was $26.1 million, compared to $25.3 million in 2023, reflecting a slight increase of 3%[465]. - Cash and cash equivalents increased to $100.6 million in 2024, up from $76.2 million in 2023, representing a growth of 32%[469]. - Total assets rose to $830.4 million in 2024, compared to $814.7 million in 2023, marking an increase of 2%[463]. - Gross margin for 2024 was $190.2 million, down from $214.3 million in 2023, indicating a decline of 11%[465]. - Research and development expenses decreased to $5.1 million in 2024 from $10.1 million in 2023, a reduction of 49%[465]. - Total liabilities decreased to $452.2 million in 2024, down from $469.1 million in 2023, a decline of 4%[463]. - The company repurchased $17.9 million worth of common shares in 2024, compared to $26.8 million in 2023, a decrease of 33%[469]. - Net cash provided by operating activities increased to $70.8 million in 2024, up from $58.6 million in 2023, an increase of 21%[469]. Currency and Foreign Exchange - The company recorded a foreign exchange net loss of $1.2 million for the year ended December 31, 2024, compared to a loss of $0.7 million in 2023[432]. - The impact of foreign currency valuations led to a decrease in IMAX GBO of approximately $14 million in 2024 compared to the prior year's currency rates[429]. - The company has entered into foreign currency forward contracts to manage risks associated with currency volatility, meeting hedge accounting criteria[433]. - The notional value of foreign currency cash flow hedging instruments qualifying for hedge accounting was $48.4 million, an increase from $40.6 million in 2023[434]. Shareholder Equity and Comprehensive Income - As of December 31, 2024, IMAX Corporation's total shareholders' equity increased to $377.535 million from $344.931 million in 2023, representing a growth of approximately 9.5%[471]. - Comprehensive income attributable to common shareholders for 2024 was $21.5 million, compared to $23.1 million in 2023, a decrease of 7%[467]. - The balance of common shares repurchased and retired in 2024 was $7.770 million, a significant decrease from $25.056 million in 2023, indicating a reduction of approximately 69%[471]. Asset Management and Depreciation - Property, Plant and Equipment is depreciated over useful lives ranging from 3 to 25 years, depending on the asset type, with theater system components having a useful life of 7 to 20 years[498]. - Goodwill is tested annually for impairment, with indicators including stock price declines and changes in business outlook, and impairment losses are recognized when carrying values exceed fair values[505]. - Other intangible assets are amortized over useful lives of 3 to 20 years, with research and development costs capitalized until completion or abandonment[506]. Revenue Recognition and Accounting Policies - Revenue from sales arrangements is recognized upon transfer of control, which includes installation and training completion[525]. - The transaction price in IMAX System arrangements is allocated to distinct performance obligations based on estimated standalone selling prices, with maintenance services recognized on a straight-line basis[522]. - Deferred Revenue primarily consists of payments received for IMAX Systems where control has not yet transferred, and is recognized as revenue when performance obligations are satisfied[512].

Financial Performance - IMAX reported Q4 2024 Net Income of $5 million (+112% YoY) with a margin of 5.7% and EPS of 10 cents (+100% YoY) [6] - Full-Year 2024 Net Income reached $26 million (+3% YoY) at a margin of 7.4%, while Total Adjusted EBITDA was $139 million (-4% YoY) at a margin of 39.4% [6] - Q4 2024 Total Revenue was $92.7 million (+8% YoY), while Full-Year Revenue was $352.2 million (-6% YoY) [7] - Net income for Q4 2024 was $6.87 million, compared to $3.31 million in Q4 2023, with net income attributable to common shareholders increasing to $5.31 million from $2.54 million [31] - Basic net income per share for Q4 2024 was $0.10, up from $0.05 in Q4 2023, while diluted net income per share also increased to $0.10 from $0.05 [31] - Net income for the year ended December 31, 2024, was $32,702, a decrease of 1.1% from $33,066 in 2023 [35] - Total revenue for the year ended December 31, 2024, was $352,208, down 6.1% from $374,839 in 2023 [50] - Adjusted net income for the full year 2024 was $51,010,000, slightly down from $52,079,000 in 2023, reflecting a decrease of 2.1% [53] Cash Flow and Liquidity - Operating cash flow for the full year 2024 was $71 million (+21% YoY), reflecting improvements in working capital [13] - As of December 31, 2024, IMAX had available liquidity of $418 million, including cash and cash equivalents of $101 million [14] - Cash and cash equivalents as of December 31, 2024, were $100.59 million, an increase from $76.20 million in 2023 [33] - Net cash provided by operating activities increased to $70,837,000 in 2024 from $58,615,000 in 2023, marking a rise of 20.8% [54] - Free cash flow for 2024 was $29,621,000, compared to $25,780,000 in 2023, indicating a growth of 14.3% [54] System Installations and Backlog - IMAX achieved 146 system installations in 2024, at the high end of its guidance of 120 to 150 installations [6] - Total IMAX System Signings for Q4 2024 were 19, a decrease of 45.7% from 35 in Q4 2023, while total signings for the year were 130, slightly up from 129 in 2023 [27] - Total IMAX System Installations for Q4 2024 were 58, down from 69 in Q4 2023, with annual installations at 146, an increase from 128 in 2023 [28] - Total System Backlog as of December 31, 2024, was 440, a decrease from 450 in 2023, with Traditional JRSA backlog remaining stable at 182 [29] - The number of IMAX locations increased by 2.5% YoY to 1,735 systems, with a backlog of 440 IMAX systems as of the end of 2024 [15] Revenue Segments - Revenue from the Content Solutions segment for the year was $124,731, slightly down from $126,698 in 2023 [38] - Revenue from the Technology Products and Services segment decreased to $216,062 from $234,303, a decline of 7.8% [38] Shareholder Returns and Investments - The company repurchased 1,166,370 common shares in 2024 at an average price of $13.99, totaling $16 million [16] - The company reported share-based compensation of $22,454,000 for the full year 2024, consistent with $23,184,000 in 2023 [53] - The company repurchased common shares worth $17,855 during the year, compared to $26,823 in 2023 [35] - The company invested $24,341,000 in equipment for joint revenue sharing arrangements in 2024, compared to $18,000,000 in 2023, representing a 35.5% increase [54] Operational Efficiency - The company reported a gross margin of $48.37 million for Q4 2024, compared to $43.69 million in Q4 2023, reflecting improved operational efficiency [31] - The company reported a gross margin of $190,200 for the year, down from $214,341 in 2023 [50] - Total Adjusted EBITDA margin improved to 39.4% in 2024 from 38.4% in 2023 [50] - Research and development expenses for Q4 2024 were $1.15 million, down from $2.72 million in Q4 2023, indicating a focus on cost management [31] Other Financial Metrics - Total assets increased to $830.40 million in 2024 from $814.67 million in 2023, while total liabilities decreased to $452.18 million from $469.08 million [33] - Unrealized investment gains for 2024 were $(127,000), compared to $(558,000) in 2023, showing an improvement of 77.2% [53] - The company incurred restructuring and other charges of $3,749,000 in 2024, up from $2,688,000 in 2023, reflecting a 39.5% increase [53] - Weighted average diluted shares outstanding decreased to 53,864,000 in 2024 from 55,146,000 in 2023, a reduction of 2.3% [53]

Core Viewpoint - Imax is expected to report significant growth in earnings and revenues for the upcoming quarter, with analysts predicting a 70.6% increase in earnings per share and a 21.8% rise in revenues compared to the previous year [1]. Earnings Estimates - The consensus EPS estimate for Imax has been revised 7.1% higher in the last 30 days, indicating a collective reevaluation by analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate revisions and short-term stock performance [3]. Revenue Projections - Analysts forecast total revenues of $104.78 million for Imax, reflecting a year-over-year increase of 21.8% [1]. - Specific revenue estimates include: - 'Revenues- All other' at $4.66 million, a change of +5.1% from the previous year [4]. - 'Revenues- Technology Products and Services' at $71.40 million, indicating a +14.3% change [5]. - 'Revenues- Content Solutions' expected to reach $28.72 million, a +50.4% increase [5]. - 'Revenues- Technology Products and Services Revenue- Maintenance' at $15.56 million, +8.5% change [6]. - 'Revenues- Technology Products and Services Revenue- System Rentals' at $14.03 million, +8.3% change [6]. - 'Revenues- Content Solutions Revenue- Film Remastering and Distribution' at $22.95 million, +36.1% change [7]. - 'Revenues- Technology Products and Services Revenue- System Sales' at $40.13 million, +21.7% change [7]. System Installations and Margins - Analysts estimate 'Total IMAX System installations' to be 62, down from 69 a year ago [8]. - The 'Total System Network (IMAX systems)' is projected to reach 1,776, slightly up from 1,772 last year [8]. - Gross margin estimates include: - 'Gross Margin- Content solutions' at $15.82 million, compared to $9.71 million last year [8]. - 'Gross Margin- All Other' at $5.61 million, up from $4.10 million [9]. - 'Gross Margin- Technology Products and Services' at $38.01 million, compared to $29.88 million last year [9]. Stock Performance - Imax shares have shown a return of +16.3% over the past month, outperforming the Zacks S&P 500 composite's +4.7% change [9].

Core Viewpoint - Imax (IMAX) is anticipated to report a year-over-year increase in earnings driven by higher revenues, with the actual results being a significant factor influencing its near-term stock price [1][2]. Earnings Expectations - The upcoming earnings report is expected to be released on February 19, 2025, with a consensus estimate of $0.31 per share, reflecting an 82.4% increase year-over-year. Revenues are projected to reach $108.13 million, a 25.7% increase from the previous year [3][2]. Estimate Revisions - The consensus EPS estimate has been revised 7.14% higher in the last 30 days, indicating a reassessment by analysts regarding the company's earnings prospects [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate for Imax is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -37.77%, suggesting a bearish outlook from analysts [10][11]. Historical Performance - Imax has a history of beating consensus EPS estimates, having done so in the last four quarters, including a surprise of +59.09% in the most recent quarter where it reported earnings of $0.35 per share against an expectation of $0.22 [12][13]. Conclusion - Despite the historical performance of beating estimates, Imax does not currently appear to be a strong candidate for an earnings beat, and investors should consider other factors before making investment decisions [16].

Group 1: Company Performance - Imax has returned 68.2% year-to-date, significantly outperforming the average return of 13.9% for Consumer Discretionary companies [6] - The Zacks Consensus Estimate for Imax's full-year earnings has increased by 11.9% in the past quarter, indicating improved analyst sentiment and a more positive earnings outlook [6] - Imax holds a Zacks Rank of 2 (Buy), suggesting it has characteristics favorable for outperforming the market [5] Group 2: Industry Context - Imax is part of the Film and Television Production and Distribution industry, which consists of 7 companies and currently ranks 64 in the Zacks Industry Rank [7] - The average return for stocks in the Film and Television Production and Distribution industry is 22.1% this year, indicating that Imax is performing better than its industry peers [7] - In contrast, Kontoor Brands, another Consumer Discretionary stock, has returned 38.1% year-to-date, with a Zacks Rank of 2 (Buy) [3][5]

Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2][3] - The news team covers key finance and investing hubs, including London, New York, Toronto, Vancouver, Sydney, and Perth [2] - Proactive focuses on medium and small-cap markets while also covering blue-chip companies, commodities, and broader investment stories [2][3] Group 2 - The team delivers news and insights across various sectors, including biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto, and emerging digital and EV technologies [3] - Proactive adopts technology to enhance workflows, utilizing decades of expertise and experience among its content creators [4] - Automation and software tools, including generative AI, are occasionally used, but all content is edited and authored by humans to ensure quality [5]

Core Viewpoint - The content emphasizes the importance of conducting personal due diligence and consulting competent advisors before making any financial decisions, particularly in the context of investments and trading activities [1]. Group 1 - The website provides general news, personal analysis, and third-party content intended for educational and research purposes [1]. - It explicitly states that the information should not be interpreted as recommendations or advice for any financial actions [1]. - The content is not tailored to individual financial situations or needs, highlighting the necessity for users to perform their own research [1]. Group 2 - The website includes information about complex financial instruments such as cryptocurrencies and contracts for difference (CFDs), which carry a high risk of losing money [1]. - Users are encouraged to understand these instruments fully before engaging in any trading activities [1]. - The website disclaims any responsibility for trading losses incurred as a result of using the information provided [1].

The Zacks Film and Television Production and Distribution industry is witnessing a surge in demand for digital entertainment due to operational constraints faced by movie theaters, theme parks and cruise lines. This increased consumption of online media, music and news, driven by the work-and-learn-from-home trend, has been a boon for industry players like Warner Music Group (WMG) , News Corporation (NWSA) , Lions Gate Entertainment (LGF.A) and IMAX Corporation (IMAX) . However, as more players enter the fi ...

Core Viewpoint - IMAX Corporation reported mixed financial results for Q3 2024, with adjusted earnings beating estimates but revenues declining due to a box office slump, raising questions about future performance leading up to the next earnings release [2][21]. Financial Performance - Adjusted earnings for Q3 2024 were 35 cents per share, exceeding the Zacks Consensus Estimate by 59% and remaining flat year over year [2]. - Total revenues amounted to $91.4 million, missing estimates by 2.88% and decreasing 12% year over year [2]. Market Performance - Greater China remains the largest market for IMAX, contributing approximately 25% of overall revenues, but revenues from this region fell 24.6% year over year to $21.3 million [3]. - IMAX's box office generated $239.5 million in Q3 2024, a decrease of 31% from $347.1 million in the same period last year, attributed to a less favorable content mix [7]. Revenue Breakdown - Category-wise, revenues from image enhancement and maintenance services, technology rentals, and finance income decreased by 22.2%, 29.9%, and 9.8% year over year, while technology sales revenues increased by 44% to $26.3 million [4]. - Segment-wise, Content Solutions revenues fell 31.9% to $30.12 million, while Technology Products and Services revenues rose 3.2% to $57.9 million [5]. Operating Metrics - Gross margin contracted by 460 basis points to 55.8%, with specific declines in Content Solutions and Technology Products and Services gross margins [13]. - Adjusted EBITDA was $35.5 million, reflecting a year-over-year increase of 21.1% [14]. Cash Flow and Liquidity - Net cash provided by operating activities for the year-to-date September 2024 was $59 million, up from $55 million in the prior year [16]. - As of September 30, 2024, available liquidity was $413 million, including cash and cash equivalents of $105 million [17]. Future Guidance - IMAX expects full-year 2024 global box office to be similar to 2023, with plans to install 130-150 systems and anticipates high-single-digit revenue growth for 2025 [21].

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