IMAX Corporation (NYSE:IMAX) Q3 2023 Earnings Conference Call October 25, 2023 8:30 AM ET Company Participants Jennifer Horsley - Senior Vice President of Investor Relations Richard Gelfond - Chief Executive Officer Natasha Fernandes - Chief Financial Officer Rob Lister - Chief Legal Officer and Senior Executive Vice President Conference Call Participants Eric Wold - B. Riley Financial Eric Handler - ROTH MKM David Karnovsky - JPMorgan Chad Beynon - Macquarie Stephen Laszczyk - Goldman Sachs Michael Hickey ...

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Unaudited financial statements for the nine months ended September 30, 2023, show significant performance improvement, with total assets at $850.9 million and net income of $29.8 million Condensed Consolidated Balance Sheet Highlights (in thousands USD) | Account | Sep 30, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | **Total Assets** | **$850,946** | **$821,154** | | Cash and cash equivalents | $109,603 | $97,401 | | **Total Liabilities** | **$493,535** | **$491,386** | | Convertible notes and other borrowings, net | $228,449 | $226,912 | | **Total Shareholders' Equity** | **$356,750** | **$329,046** | Condensed Consolidated Statements of Operations Highlights (in thousands USD) | Metric | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | | **Total Revenues** | **$288,821** | **$202,759** | | Gross Margin | $170,653 | $107,508 | | Income (Loss) from Operations | $47,659 | $(12,371) | | **Net Income (Loss)** | **$29,755** | **$(23,958)** | | Net Income (Loss) Attributable to Common Shareholders | $22,795 | $(25,413) | | Diluted EPS | $0.41 | $(0.44) | Condensed Consolidated Statements of Cash Flows Highlights (in thousands USD) | Cash Flow Activity | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | **$54,608** | **$481** | | Net cash used in investing activities | $(18,664) | $(40,407) | | Net cash used in financing activities | $(24,349) | $(64,595) | | Increase (decrease) in cash and cash equivalents | $12,202 | $(102,560) | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail basis of presentation, segment revisions, receivables, lease arrangements, borrowings, and share-based compensation - In the first quarter of 2023, the Company revised its reportable segments into two main categories: (i) **Content Solutions** and (ii) **Technology Products and Services**. Prior period comparatives have been updated to reflect this change[24](index=24&type=chunk)[189](index=189&type=chunk)[200](index=200&type=chunk) - The company successfully resolved its pre-petition claims with Cineworld following its Chapter 11 reorganization, with all amounts owed expected to be paid[43](index=43&type=chunk) - Operations in Russia and Belarus were suspended in March 2022, with provisions for credit losses recorded against Russian receivables, while operations in Ukraine resumed in Q2 2023[41](index=41&type=chunk) Borrowings Breakdown (in thousands USD) | Borrowing Type | Sep 30, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | **Revolving Credit Facility Borrowings, Net** | **$23,903** | **$36,111** | | Wells Fargo Credit Facility | $20,000 | $25,000 | | HSBC China Facility | $5,108 | $12,496 | | **Convertible Notes and Other Borrowings, Net** | **$228,449** | **$226,912** | | Convertible Notes, net | $226,258 | $225,130 | [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=45&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes strong Q3 and nine-month performance to robust global box office results, driving significant revenue and gross margin increases - The company's proposal to acquire the outstanding shares of its subsidiary IMAX China did not proceed after failing to receive the required 90% approval from disinterested shareholders at the October 9, 2023 meeting[245](index=245&type=chunk) Q3 2023 vs Q3 2022 Performance (in thousands USD) | Metric | Q3 2023 | Q3 2022 | % Change | | :--- | :--- | :--- | :--- | | **Total Revenues** | **$103,896** | **$68,755** | **51%** | | **Gross Margin** | **$62,715** | **$31,701** | **98%** | | Net Income (Loss) Attributable to Common Shareholders | $11,990 | $(8,953) | N/A | Nine Months 2023 vs 2022 Performance (in thousands USD) | Metric | Nine Months 2023 | Nine Months 2022 | % Change | | :--- | :--- | :--- | :--- | | **Total Revenues** | **$288,821** | **$202,759** | **42%** | | **Gross Margin** | **$170,653** | **$107,508** | **59%** | | Net Income (Loss) Attributable to Common Shareholders | $22,795 | $(25,413) | N/A | - Global box office from IMAX films reached **$347.1 million** in Q3 2023, a **96% increase** from Q3 2022, driven by strong titles like 'Oppenheimer', which alone generated over **$180.4 million**[325](index=325&type=chunk) [Overview](index=46&type=section&id=OVERVIEW) IMAX operates as a global entertainment technology platform, expanding its network to 1,731 systems and strategically acquiring SSIMWAVE for streaming solutions - As of September 30, 2023, the IMAX network consisted of **1,731 systems** across **87 countries and territories**, up from 1,703 systems a year prior[252](index=252&type=chunk) - The acquisition of SSIMWAVE in September 2022 is a key part of the company's strategy to expand into streaming and consumer technology, aiming to deliver high-quality images on any screen and generate new recurring revenue[257](index=257&type=chunk) [Sources of Revenue](index=48&type=section&id=SOURCES%20OF%20REVENUE) Revenue is generated from Content Solutions (film remastering and distribution) and Technology Products and Services (system sales, leases, and maintenance) - The company's two reportable segments are **Content Solutions** (film remastering and distribution) and **Technology Products and Services** (system sales, leases, and maintenance)[262](index=262&type=chunk) Film Releases by Type | Film Type | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2023 | | :--- | :--- | :--- | | Hollywood film releases | 11 | 26 | | Total local language film releases | 23 | 41 | | **Total film releases** | **34** | **67** | [IMAX Network and Backlog](index=53&type=section&id=IMAX%20NETWORK%20AND%20BACKLOG) The IMAX network expanded to 1,731 systems, with a backlog of 486 units, primarily new systems, and significant growth potential internationally IMAX Network by Region | Region | Systems as of Sep 30, 2023 | Systems as of Sep 30, 2022 | | :--- | :--- | :--- | | United States | 389 | 393 | | Canada | 48 | 48 | | Greater China | 799 | 790 | | Rest of World | 495 | 472 | | **Total** | **1,731** | **1,703** | System Backlog | Arrangement Type | Systems in Backlog (Sep 30, 2023) | Systems in Backlog (Sep 30, 2022) | | :--- | :--- | :--- | | Sale and sales-type lease | 192 | 170 | | Hybrid JRSA | 107 | 127 | | Traditional JRSA | 187 | 192 | | **Total** | **486** | **489** | [Results of Operations](index=57&type=section&id=RESULTS%20OF%20OPERATIONS) Q3 2023 revenues rose 51% to $103.9 million, with gross margin up 98%, driven by strong box office and system installations across segments Segment Performance - Q3 2023 vs Q3 2022 (in thousands USD) | Segment | Revenue Q3 2023 | Revenue Q3 2022 | Gross Margin Q3 2023 | Gross Margin Q3 2022 | | :--- | :--- | :--- | :--- | :--- | | Content Solutions | $44,214 | $21,967 | $26,407 | $9,140 | | Technology Products and Services | $56,169 | $45,542 | $33,761 | $21,752 | | **Total** | **$103,896** | **$68,755** | **$62,715** | **$31,701** | Segment Performance - Nine Months 2023 vs 2022 (in thousands USD) | Segment | Revenue 9M 2023 | Revenue 9M 2022 | Gross Margin 9M 2023 | Gross Margin 9M 2022 | | :--- | :--- | :--- | :--- | :--- | | Content Solutions | $107,605 | $72,499 | $64,397 | $39,121 | | Technology Products and Services | $171,813 | $126,262 | $100,066 | $65,875 | | **Total** | **$288,821** | **$202,759** | **$170,653** | **$107,508** | [Cash Flows](index=66&type=section&id=CASH%20FLOWS) Net cash provided by operating activities significantly improved to $54.6 million for the nine months ended September 30, 2023, driven by revenue growth Cash Flow Summary - Nine Months Ended Sep 30 (in thousands USD) | Activity | 2023 | 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $54,608 | $481 | | Net cash used in investing activities | $(18,664) | $(40,407) | | Net cash used in financing activities | $(24,349) | $(64,595) | [Liquidity and Capital Resources](index=67&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) The company maintains strong liquidity with $109.6 million in cash and significant borrowing capacity, sufficient to fund operations for the next twelve months - As of September 30, 2023, the company held **$109.6 million** in cash and cash equivalents. Total available borrowing capacity under its main credit facility was **$150.0 million** after accounting for borrowings and a temporary letter of credit[382](index=382&type=chunk)[99](index=99&type=chunk) Contractual Obligations Summary (in thousands USD) | Obligation Type | Total Obligation | Due in Less Than 1 Year | | :--- | :--- | :--- | | Convertible Notes | $233,450 | $1,150 | | Purchase obligations | $30,458 | $28,400 | | Wells Fargo Facility | $20,000 | $0 | | Pension obligations | $20,298 | $0 | | Operating lease obligations | $14,989 | $3,219 | | **Total (including others)** | **$331,022** | **$39,048** | [Quantitative and Qualitative Disclosures about Market Risk](index=72&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company faces market risks primarily from foreign currency exchange rates (USD, CAD, RMB) and interest rate changes on variable-rate borrowings - The company's primary market risks are foreign exchange rate fluctuations (USD, CAD, RMB) and interest rate changes on its variable-rate debt[410](index=410&type=chunk) - As of September 30, 2023, the company held foreign currency forward contracts with a notional value of **$41.6 million** to hedge against currency volatility[417](index=417&type=chunk) - A hypothetical **10% adverse change** in foreign currency exchange rates would result in a potential change of **$15.7 million** in the fair value of foreign currency-denominated financing receivables and working capital items[419](index=419&type=chunk) [Controls and Procedures](index=74&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of September 30, 2023, with no material changes to internal control over financial reporting - Management concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the report (September 30, 2023)[424](index=424&type=chunk) - No material changes were made to the company's internal control over financial reporting during the third quarter of 2023[426](index=426&type=chunk) [PART II. OTHER INFORMATION](index=75&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=75&type=section&id=Item%201.%20Legal%20Proceedings) The company continues to pursue enforcement of a $26.0 million arbitration award against E-City Entertainment, with other proceedings not materially impacting financials - The company is actively seeking to enforce a 2008 arbitration award against E-City Entertainment, which, with interest, is calculated to be **$26.0 million** as of September 30, 2023. The matter is pending in the Bombay High Court[124](index=124&type=chunk) [Risk Factors](index=75&type=section&id=Item%201A.%20Risk%20Factors) The company updates risk factors, emphasizing dependence on film success, potential disruptions from strikes, and significant risks associated with the Greater China market - The company's success is highly dependent on the box office performance of films from third-party studios. The recent WGA and ongoing SAG-AFTRA strikes have disrupted film production and may postpone releases, creating uncertainty for future results[432](index=432&type=chunk) - Greater China is the company's largest market, representing a significant portion of revenue, network systems, and backlog. The company faces risks related to Chinese regulations, economic conditions, and worsening U.S.-China political tensions[437](index=437&type=chunk)[438](index=438&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=76&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The Board authorized a share repurchase program of up to $400.0 million, with $191.2 million remaining available as of September 30, 2023 - The company's share repurchase program has been extended to June 30, 2026, with **$191.2 million** available for repurchases as of September 30, 2023[441](index=441&type=chunk) Share Repurchases - Q3 2023 | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | July 2023 | — | $— | | August 2023 | — | $— | | September 2023 | 13,981 | $18.00 | | **Total** | **13,981** | **$18.00** | [Other Information](index=77&type=section&id=Item%205.%20Other%20Information) The company extended the employment agreement for its Chief Legal Officer, Robert D. Lister, to December 31, 2026 - The employment agreement for Chief Legal Officer Robert D. Lister was extended to December 31, 2026[448](index=448&type=chunk) [Exhibits](index=78&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO and CFO certifications and Inline XBRL data files - Exhibits filed include Sarbanes-Oxley Act certifications from the CEO and CFO, and Inline XBRL documents[451](index=451&type=chunk)[452](index=452&type=chunk)[453](index=453&type=chunk)

IMAX Corporation (NYSE:IMAX) Q2 2023 Earnings Conference Call July 26, 2023 4:30 PM ET Company Participants Jennifer Horsley - Senior Vice President of Investor Relations Rich Gelfond - Chief Executive Officer Natasha Fernandes - Chief Financial Officer Rob Lister - Chief Legal Officer and Senior Executive Vice President Conference Call Participants Eric Handler - ROTH MKM Steven Frankel - Rosenblatt Securities Omar Mejias - Wells Fargo Michael Hickey - Benchmark Company Chad Beynon - Macquarie James Goss - ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-35066 IMAX Corporation (Exact name of registrant as specified in its charter) Indicate by check mark whether the registrant (1) h ...

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UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-35066 IMAX Corporation (Exact name of registrant as specified in its charter) Indicate by check mark whether the registrant (1) ...

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(G) 04 2022 FINANCIAL RESULTS F E B R U A R Y 2 0 2 3 1 1 e and Political S FORWARD - LOOKING STATEMENTS This earnings 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. These forward-looking statements include, but are not limited to, references to business and technol ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Form 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file Number 001-35066 IMAX Corporation (Exact name of registrant as specified in its charter) Canada 98-0140269 (State or other jurisdiction of incorporation or organization) (I.R.S. Emp ...

IMAX Corporation (NYSE:IMAX) Q3 2022 Earnings Conference Call October 31, 2022 4:30 PM ET Company Participants Jennifer Horsley - Senior Vice President of Investor Relations Rich Gelfond - Chief Executive Officer Megan Colligan - President-IMAX Entertainment Natasha Fernandes - Chief Financial Officer Rob Lister - Chief Legal Officer Conference Call Participants Eric Handler - MKM Partners Eric Wold - B. Riley Securities Steven Cahall - Wells Fargo Mike Ng - Goldman Sachs Chad Beynon - Macquarie David Karno ...