Financial Data and Key Metrics Changes - IMAX Corporation achieved nearly $300 million in global box office for Q1 2025, marking its best first quarter ever [10] - Revenue for Q1 was $87 million, up 10% year-over-year, with adjusted EBITDA margin at 42.7%, an increase of over 200 basis points year-over-year [34][40] - Adjusted EBITDA for the quarter was $37 million, reflecting a 15% increase year-over-year [39] Business Line Data and Key Metrics Changes - Content Solutions revenues grew to $34 million, with a gross margin of $24 million, up 7% year-over-year [35] - Technology products and services revenues increased to $51 million, up 17% year-over-year, with a gross margin of $29 million, up 23% [36] - The company installed 21 systems worldwide in Q1, its second-best first quarter for installations, with a total backlog of 516 systems, up 17% year-over-year [29][38] Market Data and Key Metrics Changes - IMAX Corporation's global market share reached 3.5% in Q1, with a record 5.4% in China [35] - Local language films accounted for 68% of IMAX's box office in Q1 2025, a significant increase from 21% in 2023 [20] Company Strategy and Development Direction - The company is focusing on expanding its local language film strategy, with significant growth expected in markets like China, Japan, and India [15][18] - IMAX Corporation is leveraging its relationships with studios and filmmakers to enhance its content offerings and maintain a diverse programming slate [14][46] - The company is optimistic about its future slate, with a strong pipeline of films scheduled through the end of the decade [32][46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that the recent reduction in Hollywood imports in China will not materially impact IMAX's business, as it primarily affects smaller budget films [12][55] - The company anticipates continued growth in box office performance, driven by a strong film slate and increasing consumer interest [45][46] - Management highlighted the resilience of the IMAX brand and its ability to thrive in various economic cycles [32] Other Important Information - The company reported cash flow from operations of $7 million in Q1, an improvement of $18 million year-over-year [42] - IMAX Corporation's capital position remains strong, with $97 million in cash and over $400 million in available liquidity [44] Q&A Session Summary Question: Impact of Hollywood film imports reduction in China - Management indicated that there is increased interest in films and no reduction in activity in the Chinese market, with a positive narrative surrounding IMAX [51][55] Question: Factors affecting the percentage of films shot with IMAX cameras - Management stated that the primary limiting factor is the availability of slots for films rather than the number of cameras [58] Question: Strength of IMAX's performance in China - Management noted that the strong performance was uniform across all markets, driven by effective marketing strategies and a special film release [64][66] Question: Concerns about the health of the consumer - Management expressed confidence that IMAX remains an affordable luxury, with box office performance resilient even during economic downturns [104] Question: Brand perception of IMAX in China - Management clarified that IMAX is viewed as a local prestige brand in China, with strong consumer appreciation [135]

Financial Data and Key Metrics Changes - IMAX reported nearly $300 million in global box office for Q1 2025, marking its best first quarter ever [7] - Revenue for Q1 was $87 million, up 10% year-over-year, with adjusted EBITDA of $37 million, an increase of 15% year-over-year, resulting in an adjusted EBITDA margin of 42.7% [21][25] - Cash flow from operations improved by $18 million year-over-year, totaling $7 million in Q1 [26][27] Business Line Data and Key Metrics Changes - Content solutions revenues grew to $34 million, with a gross margin of $24 million, up 7% year-over-year, driven by record box office performance [22] - Technology products and services revenues increased to $51 million, up 17% year-over-year, with a gross margin of $29 million, up 23% [22] - The company installed 21 systems in Q1, its second-best first quarter for installations, with a total of 101 new and upgraded systems signed year-to-date [17][24] Market Data and Key Metrics Changes - IMAX achieved a global market share of 3.5% and a record 5.4% in China during Q1 [22] - Local language films accounted for 68% of IMAX's box office in Q1 2025, a significant increase from 12% in 2019 and 21% in 2023 [12] Company Strategy and Development Direction - IMAX is focusing on expanding its local language film strategy, with significant box office success from films like Nezha, which grossed $182 million during Chinese New Year [10] - The company is leveraging its relationships with studios and exhibitors to enhance its programming slate and expand its global network [9][20] - IMAX plans to continue its growth trajectory by tapping into emerging film markets in regions like Saudi Arabia, Vietnam, and Indonesia [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the Hollywood slate and the potential impact of upcoming blockbusters, emphasizing a strong pipeline of films through the end of the decade [9][28] - The company remains optimistic about its performance in China, despite concerns about potential reductions in Hollywood film imports [8][34] - Management highlighted the resilience of the IMAX brand and its ability to thrive in various economic cycles, with expectations for continued growth in box office and network expansion [20][28] Other Important Information - The company has a strong liquidity position with over $400 million available, including $300 million in borrowing capacity [27] - IMAX's adjusted EPS for Q1 was $0.13, reflecting a higher year-over-year deduction for non-controlling interest associated with strong IMAX China results [26] Q&A Session Summary Question: Impact of Hollywood film reductions on IMAX - Management indicated that the expected reduction in Hollywood films would primarily affect smaller budget films, which do not significantly impact IMAX's business [34][36] Question: Local language film performance in China - Management noted that the strong performance in China was uniform across all market tiers, driven by effective marketing strategies and the success of local films [44][46] Question: Theatrical windows and their impact - Management stated that IMAX does not view PVOD windows as competitive and emphasized the importance of content diversity over windowing issues [56][58] Question: Visibility of upcoming films in China - Management confirmed strong visibility into the film slate for China, with several local language films already announced for the year [64][68] Question: Consumer behavior during recessionary periods - Management expressed confidence that IMAX remains an affordable luxury, with historical data showing resilience during economic downturns [78][80] Question: Brand perception in China - Management clarified that IMAX is viewed as a local prestige brand in China, with strong consumer value associated with it [104][105]