IMAX(IMAX) - 2024 Q4 - Annual Results

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]