IMAX(IMAX)2025-02-19 22:22Film 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 374.8 million in 2023[465]. - Net income attributable to common shareholders for 2024 was 25.3 million in 2023, reflecting a slight increase of 3%[465]. - Cash and cash equivalents increased to 76.2 million in 2023, representing a growth of 32%[469]. - Total assets rose to 814.7 million in 2023, marking an increase of 2%[463]. - Gross margin for 2024 was 214.3 million in 2023, indicating a decline of 11%[465]. - Research and development expenses decreased to 10.1 million in 2023, a reduction of 49%[465]. - Total liabilities decreased to 469.1 million in 2023, a decline of 4%[463]. - The company repurchased 26.8 million in 2023, a decrease of 33%[469]. - Net cash provided by operating activities increased to 58.6 million in 2023, an increase of 21%[469]. Currency and Foreign Exchange - The company recorded a foreign exchange net loss of 0.7 million in 2023[432]. - The impact of foreign currency valuations led to a decrease in IMAX GBO of approximately 48.4 million, an increase from 377.535 million from 21.5 million, compared to 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].