IMAX(US:IMAX)2025-04-23 20:15Financial 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].