Financial Performance - IMAX reported Q1 2025 revenues of $87 million, a 10% increase year-over-year, with net income of $8 million, up 52% YoY, and total adjusted EBITDA of $37 million, reflecting a 15% increase YoY[4]. - The net income attributable to common shareholders for Q1 2025 was $2.33 million, a decrease of 29% from $3.27 million in Q1 2024[28]. - Total revenue for the three months ended March 31, 2025, was $86,667,000, an increase of 9.8% from $79,123,000 in the same period of 2024[35]. - Reported net income attributable to common shareholders for Q1 2025 was $8,150,000, up from $5,420,000 in Q1 2024[47]. - Adjusted net income attributable to common shareholders for Q1 2025 was $7,178,000, or $0.13 per diluted share, compared to $7,941,000, or $0.15 per diluted share in Q1 2024[50]. - Free cash flow for the three months ended March 31, 2025, was $(7,673,000), an improvement from $(18,108,000) in the same period of 2024[51]. Revenue Breakdown - First quarter Content Solutions revenues increased 1% YoY to $34 million, while gross margin improved by 7% YoY to $24 million[14]. - Technology Products and Services revenues rose 17% YoY to $51 million, with gross margin increasing 23% YoY to $29 million[14]. - Content Solutions segment revenue was $34,249,000, slightly up from $34,013,000, while Technology Products and Services segment revenue increased to $50,593,000 from $43,150,000, reflecting growth of 17.2%[35]. System Growth and Backlog - IMAX experienced significant system growth with 95 system signings (+87 systems YoY) and 21 system installations (+40% YoY) in Q1 2025[4]. - The company ended Q1 2025 with a backlog of 516 IMAX systems, contributing to its market expansion strategy[14]. - Total system backlog increased to 516 units as of March 31, 2025, up from 442 units a year earlier, representing a growth of 16.7%[26]. - IMAX signed a total of 95 new systems in Q1 2025, significantly higher than the 8 signings in Q1 2024[24]. - The company installed 21 new systems in Q1 2025, compared to 15 installations in Q1 2024, marking a 40% increase[25]. - The company reported a total of 1,810 systems in its network as of March 31, 2025, an increase from 1,772 systems a year earlier[26]. Cash and Liquidity - The company's liquidity as of March 31, 2025, was $401 million, including $97 million in cash and cash equivalents and $250 million in available borrowing capacity[12]. - Cash and cash equivalents decreased to $97.07 million as of March 31, 2025, down from $100.59 million at the end of 2024[30]. - IMAX's net cash provided by operating activities was $7 million in Q1 2025, compared to a net cash used of $11 million in the prior year[11]. - Operating cash flow for Q1 2025 was $6.95 million, a recovery from a cash outflow of $10.97 million in Q1 2024[32]. - The company reported a net cash provided by operating activities of $6,951,000 for Q1 2025, compared to $(10,968,000) in Q1 2024[51]. Shareholder Returns - IMAX is authorized to repurchase up to $400 million of its common shares, with approximately $151 million remaining available as of March 31, 2025[15]. - The weighted average diluted shares outstanding increased to 55 million in Q1 2025 from 53.4 million in Q1 2024[15]. - The weighted average shares outstanding for Q1 2025 were 53,145,000, compared to 52,501,000 in Q1 2024[50]. Cost Management - IMAX's gross margin improved to $53.18 million in Q1 2025, compared to $46.89 million in Q1 2024, reflecting better cost management[28]. - Research and development expenses decreased to $1.32 million in Q1 2025 from $2.19 million in Q1 2024, indicating a focus on cost efficiency[28]. - The total adjusted EBITDA margin for the twelve months ended March 31, 2025, was 40.0%, down from 44.9% in the previous year[48]. - Adjusted EBITDA for the three months ended March 31, 2025, was $36,975,000, representing a margin of 42.7%, compared to $32,051,000 and a margin of 40.5% in the same period of 2024[47].

Core Insights - AMC Entertainment is expanding its partnership with IMAX Corporation to introduce IMAX with Laser technology to over 180 locations in the U.S., including 12 new and 68 upgraded IMAX theaters, marking the largest IMAX systems agreement since 2018 [1][2][5] Group 1: Strategic Initiatives - The AMC Go Plan emphasizes investment in advanced technology to attract audiences seeking immersive experiences, with IMAX with Laser technology being a crucial part of this strategy [2][4] - AMC's commitment to premium formats has historically driven higher per-screen revenues compared to standard formats, focusing on high-performing locations to enhance profitability [4][6] Group 2: Competitive Positioning - AMC holds a dominant position in the IMAX ecosystem, with eight of the top ten highest-grossing IMAX locations in the U.S., reinforcing its leadership in the premium theatrical segment [5][6] - The expansion of premium formats aligns with a broader industry trend of providing experiences that cannot be replicated at home, positioning AMC favorably in a changing market [7][9] Group 3: Market Performance - Despite the expansion and focus on premium offerings, AMC's stock has declined by 7.6% over the past year, compared to a 2.6% decline in the industry, indicating potential challenges ahead [8][10] - The company is well-positioned to benefit from increased ticket prices and concession sales due to strong IMAX attendance for blockbuster films [6][9]

Core Insights - IMAX's total revenue for the quarter ending December 2024 was $92.67 million, reflecting a 7.7% increase year-over-year [4] International Revenue Trends - Latin America contributed $2.32 million, accounting for 2.51% of total revenue, which was a significant decline of 43.37% from the expected $4.1 million [5] - Asia excluding Greater China generated $22.05 million, representing 23.79% of total revenue, exceeding expectations by 34.85% compared to the forecast of $16.35 million [6] - Western Europe accounted for $12.37 million, or 13.35% of total revenue, falling short of the $13.1 million expected by 5.56% [7] - The Rest of the World brought in $3.87 million, constituting 4.18% of total revenue, which was 37.75% below the anticipated $6.22 million [8] - Greater China generated $15.47 million, making up 16.69% of total revenue, which was a 43.04% shortfall from the expected $27.16 million [9] - Canada contributed $2.09 million, accounting for 2.26% of total revenue, which was 44.71% lower than the forecast of $3.78 million [10] Revenue Forecasts - Analysts project IMAX will achieve revenues of $82.35 million for the ongoing fiscal quarter, a 4.1% increase year-over-year, with contributions from various regions detailed [11][12] - For the full year, total revenue is expected to reach $406.79 million, up 15.5% from the previous year, with specific contributions from different regions outlined [13] Closing Remarks - The reliance on global markets for revenue presents both opportunities and challenges for IMAX, making the analysis of international revenue trends crucial for future forecasts [14] - Wall Street analysts are closely monitoring these trends, especially in light of increasing global interconnections and geopolitical tensions [15]

Core Insights - IMAX is projected to achieve a record box office revenue of $1.2 billion in the current year, according to CEO Rich Gelfond [1][2] - The anticipated strong performance is attributed to a robust slate of upcoming blockbuster films [2] Group 1: Financial Performance - The expected $1.2 billion box office haul would represent the best performance in IMAX's history [1] - This projection indicates a significant growth opportunity for the company in the film exhibition market [1] Group 2: Upcoming Film Releases - Key titles contributing to the strong outlook include a new "Mission Impossible," a live-action "How to Train Your Dragon," another "Jurassic Park" installment, a sequel to "Zootopia," and a third "Avatar" release [2] - The diverse range of blockbuster films set for release over the next 10 months is expected to drive audience attendance and revenue [2]

Core Insights - IMAX Corporation reported fourth-quarter 2024 adjusted earnings of 27 cents per share, missing the Zacks Consensus Estimate by 6.9% but showing a year-over-year increase of 58.8% [1] - Total revenues for the quarter were $92.6 million, which missed the Zacks Consensus Estimate by 11.56% but increased by 7.7% year over year [1] Revenue Breakdown - Category-wise, revenues from Image Enhancement & Maintenance Services, technology rentals, and finance income increased by 20.4%, 6.5%, and 34% year over year, reaching $42.7 million, $13.7 million, and $2.9 million, respectively [2] - Technology sales revenues decreased by 6.2% year over year to $33.1 million [2] Segment Performance - Content Solutions revenues rose by 33.6% year over year to $25.5 million, driven by higher box office performance, including a record Thanksgiving weekend box office of $24 million [3] - Technology Products and Services revenues increased by 2.5% year over year to $64.04 million, supported by higher box office-related rental revenues [4] - All Other revenues declined by 29.7% year over year to $3.11 million [4] Box Office Performance - The fourth-quarter box office reached $204 million, a 20% increase year over year, contributing to near-record annual domestic box office figures [6] - Top-grossing titles included Gladiator 2 and Venom: The Last Dance, each earning $31 million [6] System Installations and Network Growth - IMAX installed 58 systems in the fourth quarter of 2024, compared to 69 systems in the same quarter of 2023, totaling 146 installations for the year [8] - As of December 31, 2024, IMAX operated 1,807 systems across 90 countries, with a market penetration of 48% in the addressable market of 3,619 locations [9] Financial Metrics - Gross margin expanded by 140 basis points to 52.2% in the fourth quarter, with Content Solutions gross margin contracting to 46.4% and Technology Products and Services gross margin expanding to 53.4% [12] - Adjusted EBITDA increased by 48.6% year over year to $34.2 million [12] - Operating income surged by 247.3% year over year to $9.51 million [13] Cash Flow and Liquidity - Net cash provided by operating activities for 2024 was $71 million, up from $59 million in the prior year [14] - As of December 31, 2024, IMAX had available liquidity of $418 million, including cash and cash equivalents of $101 million [15] Share Repurchase Program - IMAX repurchased 1,166,370 common shares at an average price of $13.99, totaling $16 million for the year [17] - The company is authorized to repurchase up to $400 million of its common shares, with approximately $151 million remaining [18] Future Guidance - IMAX anticipates a record box office of over $1.2 billion in 2025, with an adjusted EBITDA margin of over 40% and system installations projected between 145 to 160 [19]

Financial Data and Key Metrics Changes - For Q4 2024, adjusted EBITDA increased by 48% to $37 million, and adjusted EPS rose by 59% to $0.27 per share [14][44] - Full year revenues for 2024 reached $352 million, with adjusted EBITDA of $139 million, resulting in an adjusted EBITDA margin of 39% [38] - Operating cash flows improved by 21% year-over-year to $71 million [45] Business Line Data and Key Metrics Changes - Content Solutions revenues for Q4 2024 grew by 34% year-over-year to $26 million, driven by strong box office performance [40] - Technology Products and Services revenues for Q4 2024 were $64 million, up 2% year-over-year [41] - System installations totaled 146 systems in 2024, with 57% under joint revenue sharing arrangements [39] Market Data and Key Metrics Changes - The Chinese New Year slate in 2025 has already surpassed $120 million, significantly exceeding the previous record of $66 million in 2023 [24] - IMAX's global market share increased from approximately 2.5% pre-pandemic to 3.1% globally and from 3% to 4.5% domestically [18] - The average indexing on Hollywood titles in China increased to 15%, up from 9% five years ago [27] Company Strategy and Development Direction - The company aims for 2025 to be its best year ever at the global box office, projecting over $1.2 billion in IMAX grosses [16] - IMAX is focusing on expanding its global network and diversifying its content portfolio, including partnerships with Netflix and Apple [19][20] - The company is optimistic about the growth potential in China, with a strong slate of local language films and increased production budgets [29][50] Management's Comments on Operating Environment and Future Outlook - Management noted a significant turnaround in the Chinese box office, with a strong start to 2025 and expectations for continued growth [14][50] - The company highlighted the importance of strong relationships with studios and filmmakers, which are driving demand for IMAX releases [12][58] - Management expressed confidence in the long-term growth trajectory, supported by a robust film slate and expanding market presence [56][57] Other Important Information - The company has renewed its partnership with Wanda and is expanding its IMAX with laser technology in AMC locations [30] - IMAX's cash position improved to $101 million, up from $76 million at the end of 2023, while debt increased to $269 million [46][47] - The company is focused on operational efficiencies and cost management to enhance profitability [55] Q&A Session Summary Question: Insights on screen count growth in North America versus China - Management indicated that while they guided for 145 to 160 installs, the impact on box office in any one region would not be material [62] Question: Most opportunistic markets for growth - Japan was highlighted as a strong market with ongoing signings, along with activity in Western Europe [64] Question: Thoughts on convertible notes maturing - Management is evaluating options for the convertible notes, which have a favorable interest rate and conversion price [68] Question: Details on the Netflix partnership for Narnia - The deal was complex, requiring alignment among various stakeholders, and is seen as a potential template for future collaborations [72][74] Question: Impact of Chinese New Year performance on market recovery - Management attributed the strong performance to a favorable mix of movies and pent-up demand, with expectations for continued growth [80][84] Question: Live event strategy amidst a strong film slate - The live event strategy is seen as complementary, bringing new audiences to IMAX and enhancing overall market share [98][101] Question: Adjusted EBITDA margin guidance sources - The margin growth is expected to come from a mix of operational efficiencies and revenue growth, with significant operating leverage anticipated [104][106] Question: Renewal of screen relationships and pricing opportunities - Management indicated that renewals are ongoing, with a focus on upgrading technology to enhance box office performance [110][112] Question: Demand for IMAX and negotiating leverage with studios - The company is leveraging its strong market position to enhance marketing visibility and negotiate better terms with studios [114][116]

Core Insights - Imax reported revenue of $92.67 million for Q4 2024, a year-over-year increase of 7.7%, with EPS of $0.27 compared to $0.17 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate by 11.56%, while the EPS also missed the consensus estimate by 6.90% [1] Financial Performance - Total IMAX System installations were 58, below the average estimate of 62 [4] - Total System Network reached 1,807, slightly above the estimated 1,776 [4] - Revenue from Content Solutions was $25.51 million, compared to the average estimate of $28.72 million, reflecting a year-over-year increase of 33.6% [4] - Revenue from All Other segments was $3.12 million, significantly below the estimate of $4.66 million, showing a year-over-year decline of 29.7% [4] - Revenue from Technology Products and Services was $64.04 million, below the average estimate of $71.40 million, with a year-over-year increase of 2.5% [4] Gross Margin Analysis - Gross Margin for Content Solutions was $11.84 million, compared to the average estimate of $15.82 million [4] - Gross Margin for All Other segments was $2.31 million, below the average estimate of $5.61 million [4] - Gross Margin for Technology Products and Services was $34.22 million, compared to the average estimate of $38.01 million [4] Stock Performance - Imax shares returned +16.2% over the past month, outperforming the Zacks S&P 500 composite's +2.4% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market [3]

分组1 - Imax reported quarterly earnings of $0.27 per share, missing the Zacks Consensus Estimate of $0.29 per share, but showing an increase from $0.17 per share a year ago, resulting in an earnings surprise of -6.90% [1] - The company posted revenues of $92.67 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 11.56%, compared to year-ago revenues of $86.02 million [2] - Imax shares have increased approximately 5.6% since the beginning of the year, outperforming the S&P 500's gain of 4.2% [3] 分组2 - The current consensus EPS estimate for the coming quarter is $0.19 on revenues of $83.29 million, and for the current fiscal year, it is $1.24 on revenues of $417.5 million [7] - The Zacks Industry Rank for Film and Television Production and Distribution is currently in the top 13% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

I N V E S T O R P R E S E N T A T I O N F E B R U A R Y 2 0 2 5 F O R W A R D - L O O K I N G S T A T E M E N T S This presentation contains "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 or "forward-looking information" within the meaning of Canadian securities laws 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 ...

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].