Core Insights - D-BOX Technologies Inc. is expanding its partnership with Cinemark Holdings, adding over 70 haptic-enabled screens across 25 theaters in the U.S. over the next 18 months, representing a nearly 25% increase in their market presence [1][2]. Company Overview - D-BOX has over 25 years of experience in creating haptic and immersive experiences, focusing on redefining theatrical entertainment through innovative technology [1][5]. - Cinemark Holdings, one of the largest theatrical exhibition companies globally, operates nearly 500 theaters and over 5,500 screens across the U.S. and South America, emphasizing superior sight and sound technology [4]. Expansion Details - The expansion will increase Cinemark's D-BOX presence to more than 500 auditoriums, solidifying its position as the exhibitor with the highest D-BOX penetration [2][3]. - This rollout is one of the largest multi-site expansions of D-BOX screens in recent years, indicating a significant investment in immersive entertainment [2]. Strategic Collaboration - The collaboration between D-BOX and Cinemark reflects a shared commitment to innovation and enhancing audience experiences, with a focus on delivering differentiated entertainment that drives engagement [3].

Core Insights - The CEO of Cinemark, Sean Gamble, expressed optimism about a box office recovery that began in April, highlighting Amazon MGM's commitment to theatrical releases [1][3] - The ongoing debate regarding theatrical windows was addressed, with Gamble supporting a 45-day window for most films [2][5] - Despite a widening loss of $39 million in Q1, revenue increased by 7% to $541 million, indicating a potential recovery in the industry [2][3] Industry Performance - The industry has historically performed well during economic uncertainty, with the North American box office growing in six of the last eight recessions [7] - The current box office recovery is attributed to strong content and a positive outlook from studios, including plans from Amazon MGM to release 14 to 16 films by 2027 [3][4] - The debate on theatrical windows is ongoing, with a consensus that a 45-day window may be beneficial for most films to build cultural relevance [5][6] Market Dynamics - M&A activity in the exhibition sector may increase as surviving theaters look for buyers, with the box office showing signs of recovery [3] - The industry remains resilient in the face of economic challenges, as consumers continue to seek affordable out-of-home entertainment options [8] - The impact of external factors, such as trade tariffs and economic growth, is acknowledged, but the industry is optimistic about navigating these challenges [6]

Core Viewpoint - AMC Entertainment is expected to report a quarterly loss of $0.56 per share, reflecting a year-over-year increase of 28.2%, with revenues projected at $874.53 million, down 8.1% from the previous year [1]. Group 1: Earnings Projections - Over the last 30 days, the consensus EPS estimate for AMC has been revised upward by 15.7%, indicating a collective reassessment by analysts [2]. - Changes in earnings projections are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate trends and short-term stock price movements [3]. Group 2: Revenue Estimates - Analysts estimate 'Revenues- Food and beverage' to reach $294.23 million, representing a decline of 8.4% year-over-year [5]. - The 'Revenues- Other theatre' is projected at $91.87 million, indicating a year-over-year decrease of 7.9% [5]. - 'Revenues- Admissions' are expected to be $488.40 million, also suggesting a year-over-year change of -7.9% [5]. Group 3: Stock Performance - AMC Entertainment shares have increased by 0.4% over the past month, contrasting with a -0.5% change in the Zacks S&P 500 composite [6]. - With a Zacks Rank of 3 (Hold), AMC is anticipated to closely follow overall market performance in the near term [6].

Financial Data and Key Metrics Changes - Cinemark's worldwide first quarter revenue was $541 million, with adjusted EBITDA of $36 million and an adjusted EBITDA margin of 6.7% [7][17] - Compared to the first quarter of 2022, adjusted EBITDA grew almost 45% despite inflationary cost pressures [7][17] - The company reported a net loss of $38.9 million, resulting in a loss per share of $0.32 [23] Business Line Data and Key Metrics Changes - U.S. operations hosted 20.6 million guests, generating $207.6 million in domestic admissions revenue [18] - Average ticket price increased by 3% year over year to $10.8, while domestic concession revenue was $164.4 million, achieving a new all-time high per cap of $7.98, up 5% year over year [19][19] - International operations welcomed 16 million guests, with revenue growing 1% year over year to $123.6 million [20] Market Data and Key Metrics Changes - North American industry box office totaled approximately $1.5 billion, declining 12% compared to the same period in 2024 [5] - Cinemark exceeded year-over-year North American box office performance by 160 basis points and surpassed Latin American benchmarks by nearly 60 basis points [6] Company Strategy and Development Direction - The company aims to capitalize on the ongoing resurgence of content in the theatrical market while maintaining operational discipline [16] - Investments are focused on enhancing the entertainment experience, strengthening theaters, and developing operating capabilities [15][16] - The company plans to repay $460 million of convertible notes using cash on hand upon maturity in August [24] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the industry's recovery trajectory, despite lingering headwinds from Hollywood strikes [5] - The second quarter has shown record-breaking results with the release of the Minecraft movie, indicating strong consumer enthusiasm for theatrical experiences [8][9] - The company has not seen any adverse effects from the macroeconomic environment on moviegoing, with continued strong performance in attendance and concession sales [78] Other Important Information - The company executed a $200 million share repurchase program, representing the first stock buyback in its history [16][26] - The company paid its first quarterly dividend since the pandemic, reflecting confidence in its financial position [15][28] Q&A Session Summary Question: Share buyback program and future plans - Management expressed satisfaction with the execution of the $200 million share buyback and indicated that future repurchase decisions will depend on various factors, including cash liquidity and market conditions [31][33][34] Question: Insights on Amazon and Apple Studios - Management is encouraged by Amazon's commitment to theatrical releases and is optimistic about Apple's upcoming projects, although Apple is still in the early phases of its long-term plans [42][45] Question: Market share and operating hours - Management discussed the potential to adjust operating hours to capture more attendance during high-demand periods, while also noting that capacity constraints could impact market share [68][70] Question: Consumer behavior and macroeconomic impact - Management has not observed any negative impact on moviegoing due to the macroeconomic environment, with strong attendance and concession sales continuing [78][80] Question: Concession costs and future expectations - Management indicated that higher concession costs were driven by a mix of merchandise and inflationary pressures, but does not expect this to be the new run rate going forward [82][84]

Financial Data and Key Metrics Changes - Cinemark's worldwide first quarter revenue was $541 million with adjusted EBITDA of $36 million and an adjusted EBITDA margin of 6.7% [6][16] - Compared to the first quarter of 2022, adjusted EBITDA grew almost 45% despite inflationary cost pressures [6][16] - The company reported a net loss of $38.9 million, resulting in a loss per share of $0.32 [23] Business Line Data and Key Metrics Changes - U.S. operations generated $417.1 million in revenue with adjusted EBITDA of $20 million, yielding a 4.8% adjusted EBITDA margin [18] - International operations grew revenue by 1% year over year to $123.6 million, with adjusted EBITDA of $16.4 million and an adjusted EBITDA margin of 13.3% [20][21] - Domestic average ticket price increased by 3% year over year to $10.8, while domestic concession revenue was $164.4 million, achieving a new all-time high per cap of $7.98, up 5% year over year [18][19] Market Data and Key Metrics Changes - North American industry box office totaled approximately $1.5 billion, declining 12% compared to the same period in 2024 [4] - Cinemark's market share in the U.S. grew by 30 basis points year over year, maintaining gains in excess of 100 basis points compared to pre-pandemic levels [17] - International market share also saw strong gains, delivering over 200 basis points of growth versus Q1 of 2019 [19] Company Strategy and Development Direction - Cinemark aims to capitalize on the ongoing resurgence of content in the theatrical market while maintaining operational discipline [15] - The company plans to invest in enhancing the entertainment experience, strengthening theater quality, and developing loyalty programs [14] - A $200 million share buyback program was executed to manage potential dilution related to convertible note settlements [15][25] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the industry's recovery trajectory, citing strong upcoming film releases and sustained consumer enthusiasm for theatrical experiences [4][8] - The company has not seen any adverse effects from the macroeconomic environment on moviegoing, with continued strong performance in attendance and concession sales [77][78] - Management expects to maintain a balanced approach to capital allocation while focusing on long-term growth opportunities [27] Other Important Information - The company paid its first quarterly dividend since the pandemic, reflecting confidence in its financial position [14] - Capital expenditures for 2025 are anticipated to be $225 million, focusing on maintaining and enhancing the global circuit [26] Q&A Session Summary Question: Share buyback program and future plans - Management expressed satisfaction with the execution of the $200 million share buyback and indicated that future repurchase decisions will depend on various factors including cash liquidity and market conditions [30][32] Question: Expectations from Amazon and Apple studios - Management is encouraged by Amazon's commitment to theatrical releases and optimistic about Apple's upcoming projects, noting that both studios are investing in their theatrical strategies [42][46] Question: Impact of flexible windows on box office - Management acknowledged ongoing discussions about theatrical windows and their impact on consumer behavior, emphasizing the need for a balance that maximizes revenue without harming attendance [58][60] Question: Concession costs and future expectations - Management noted that higher concession costs were driven by a mix of merchandise and inflationary pressures but do not expect this to be the new run rate going forward [81][82] Question: Market share and operating hours - Management discussed the potential to adjust operating hours to capture more attendance during peak demand periods, while also noting the challenges posed by capacity constraints [68][70]

Financial Performance & Guidance - IMAX reported Q1 2025 global box office (excluding China booking fee) of $281 million, and $298 million including it[97] - Q1 2025 total adjusted EBITDA margin was 42.7%[97] - The company's full-year 2025 guidance includes IMAX box office of $1.2 billion+, and 145-160 system installations[36] - IMAX has repurchased 19% of shares outstanding since 2020, amounting to $175 million[114, 124] Network Growth & Market Share - The IMAX network has a footprint of 1,738 systems[11] - The company has a contracted IMAX system backlog of 516 systems[11] - IMAX accounts for >50% of total global premium locations[38] - IMAX global box office market share has grown +40% since 2018 through Q1 2025[11, 13] Content & Strategy - There are a record 14+ Filmed For IMAX Hollywood titles expected in 2025[11, 13] - Q1 2025 IMAX Local Language box office is already 40% higher than FY 2024[83]

Core Insights - Dolby Laboratories, Inc. (DLB) is expanding its collaboration with AMC Entertainment (AMC) by adding 40 more Dolby Cinema locations across the United States by the end of 2027, resulting in a total of over 200 locations, marking a 25% increase [1] - Dolby Cinema offers an immersive movie experience with Dolby Vision's picture quality and Dolby Atmos' sound, reinforcing both companies' commitment to enhancing the existing network [2][3] - The expansion aligns with AMC's strategy to enhance premium offerings, ensuring audiences receive the best visual experience [3] Industry Trends - The industry is shifting towards premium formats, with audiences increasingly preferring higher-quality viewing experiences [4] - In 2024, Dolby Cinema achieved its strongest box office performance, surpassing revenues from 2023, with 49 out of the top 50 films presented in Dolby Cinema over the past five years [4] - The robust content pipeline, with over 725 theatrical features confirmed in Dolby Vision and Dolby Atmos, is a key driver of Dolby Cinema's success [5] Technological Advancements - Advancements in visual and audio technology are expected to enhance the Dolby Cinema experience as the collaboration between Dolby and AMC continues [6] - The adoption of Dolby Atmos in various sectors, including music production, is driving top-line momentum for DLB, with 93% of Billboard's 2024 Top 100 Artists releasing music in Dolby Atmos [7] - In 2024, nearly 80% of the domestic box office and almost 70% of global box office titles were released in Dolby Atmos and Dolby Vision formats [8] Financial Outlook - For fiscal 2025, DLB expects growth of around 15% from Dolby Atmos and Dolby Vision, along with imaging patents [9] - DLB currently holds a Zacks Rank 2 (Buy), with shares having lost 3.7% in the past year compared to a 15.7% decline in the Zacks Audio Video Production industry [10]

Core Insights - AMC and Dolby are expanding their partnership by adding 40 new Dolby Cinema locations in the US by the end of 2027, representing a nearly 25% increase in Dolby Cinema auditoriums, bringing the total to over 200 [2][4] - Dolby Cinema offers a premium moviegoing experience with Dolby Vision ultra-vivid picture quality and Dolby Atmos immersive sound, enhancing the overall cinematic experience for audiences [3][4] - The partnership reflects AMC's commitment to innovative technology and premium experiences, which are increasingly defining the modern box office [4][5] Company Overview - Dolby Laboratories is a leader in immersive entertainment experiences, with a strong content pipeline of over 725 theatrical features released or confirmed in Dolby Vision and Dolby Atmos [6][7] - AMC Entertainment is the largest theatrical exhibitor globally, with approximately 900 theatres and 10,000 screens, and has been a pioneer in the exhibition industry through various innovations [8][9]