Press

IMAX China Reports Full-Year 2016 Results
Feb 23, 2017

SHANGHAI, Feb. 23, 2017/PRNewswire/ -- 

 

GREATER CHINA HIGHLIGHTS

- Signed agreements for a record 238 new theatres in 2016, more than the previous two years combined, resulting in a year-end backlog of 334 theatres

- Installed a record 117 new theatre systems, a 56% increase over 2015, which brings the commercial China network to 407 screens across 149 cities

- IMAX China together with IMAX Corporation completed the first phase of a $50 million Virtual Reality ("VR") fund alongside several strategic investors to help finance the creation of at least 25 interactive VR content experiences for use across all VR platforms, including IMAX VR centres

- Heightened pace of installation activity is expected to continue as IMAX China sets current-year install guidance at levels similar to 2016

 

IMAX China Holding, Inc. ("IMAX China," HKG: 1970) today reported full-year 2016 revenue of $118.5 million and gross profit of $69.3 million, or 58.5% of revenues. Adjusted profit for the year came in at $37.6 million, down 13% from the prior year, primarily reflecting weaker box office and the installation of 34 additional revenue-sharing theatres in 2016 versus 2015, which carry one-time upfront marketing and launch costs.  For adjustments to net profit and a full detail of our financial results, please refer to our corporate filing posted with the Hong Kong Stock Exchange or to our earnings results posted on the Investor Relations section of the IMAX China website (http://www.imax.cn/investor).   

"We achieved a number of exciting accomplishments in 2016 that we believe will continue to facilitate meaningful growth in IMAX China for years to come," said Richard L. Gelfond, Chairman of IMAX China. "The IMAX network reached an astounding 407 commercial screens across 149 cities – with another 334 theatres in backlog. In 2016 alone, we expanded the network by more than 40% and saw record-level signings activity, most of which came from existing partners looking to further expand their existing IMAX footprint. This is particularly encouraging as these metrics not only serve as a key barometer for future growth, they also come ahead of what has already been a strong start to the robust 2017 film slate, with hit titles such as Journey to the West: The Demons Strike Back and xXx: Return of Xander Cage." 

Network Update

The IMAX® theatre network in Greater China has reached 424 systems as of Dec. 31, 2016, of which 407 were in commercial multiplexes. Currently, 261 of these theatres are operating under revenue-sharing arrangements and 163 are operating under sales and sales-type lease arrangements.  There were also 334 theatres in backlog as of Dec. 31, 2016, of which 275 are for revenue sharing arrangements.  The Company also installed 117 new theatres systems and two laser GT upgrades in 2016, which is up from the 75 installations and two upgrades recognized in 2015.

"In terms of new business opportunities in China, we've already taken significant first steps towards our premium, location-based VR initiative – we completed the first phase of a $50 million virtual reality fund with several leading strategic partners, including China Media Capital and Enlight Media. IMAX Corporation also announced the first pilot IMAX VR Centre in China with JinYi, which should be open in the coming months. While the company's VR venture is still in its pilot phase, we are extremely encouraged by the initial results and we will continue pursuing efforts like VR and original content to further establish IMAX as a leader in the entertainment industry."

Greater China Key Metrics

   

Twelve Months ended December 31

   

FY2016

 

FY2015

        

Greater China Signings

      
 

Sales

  

37

  

29

 

Revenue Share

  

201

  

45

Total

  

238

  

74

        

Greater China Theatre Installations

     
 

Sales

  

33

  

25

 

Revenue Share

  

84

  

50

 

Laser Upgrade

  

2

  

2

Total

  

119

  

77

        

Greater China Network

      
 

Commercial Multiplex

  

407

  

290

 

Institutional

  

17

  

17

Total

  

424

  

307

        

Greater China Backlog

  

334

  

215

        

IMAX Greater China Box Office

  

$295.7 million

  

$312.4 million

IMAX Greater China Per Screen Average

 

$932.4 thousand

  

$1344.5 thousand

        

Film Count

      
 

PRC

  

37

  

31

 

HK/Taiwan Only

  

9

  

10

Total

  

46

  

41

 

 

Conference Call

The Company will host a conference call today at 8:00 AM Hong Kong Time to discuss its full-year 2016 financial results. To access the call via telephone, interested parties in the US and Canada should dial (800) 263-0877 approximately 5 to 10 minutes before the call begins.  Parties in Hong Kong should dial 800-961-105 and China callers should dial 40-0120-9101. Other International callers should dial +1 (647) 749-1827. The conference ID for the call is 7468074. A replay of the call will be available via webcast on the 'Investor Relations' section of www.imax.com or via telephone by dialing (888) 203-1112 (US and Canada), or (647) 436-0148 (international). The Conference ID for the telephone replay is 7468074.

About IMAX China

IMAX China is a subsidiary of IMAX Corporation, and is incorporated under the laws of Cayman Islands. IMAX China was established by IMAX Corporation specifically to oversee the expansion of IMAX's business throughout Greater China. IMAX China trades on the Hong Kong Stock Exchange under the stock code "HK.1970."

About IMAX Corporation

IMAX, an innovator in entertainment technology, combines proprietary software, architecture and equipment to create experiences that take you beyond the edge of your seat to a world you've never imagined. Top filmmakers and studios are utilizing IMAX theatres to connect with audiences in extraordinary ways, and, as such, IMAX's network is among the most important and successful theatrical distribution platforms for major event films around the globe.

IMAX is headquartered in New York, Toronto and Los Angeles, with offices in London, Tokyo, Shanghai and Beijing. As of Dec. 31, 2016, there were 1,215 IMAX theatres (1,107 commercial multiplexes, 16 commercial destinations and 92 institutions) in 75 countries. On Oct. 8, 2015, shares of IMAX China, a subsidiary of IMAX Corp., began trading on the Hong Kong Stock Exchange under the stock code "HK.1970."

IMAX®, IMAX® 3D, IMAX DMR®, Experience It In IMAX®, An IMAX 3D Experience®, The IMAX Experience®, IMAX Is Believing® and IMAX nXos® are trademarks of IMAX Corporation. More information about the Company can be found at www.imax.com. You may also connect with IMAX on Facebook (www.facebook.com/imax), Twitter (www.twitter.com/imax) and YouTube (www.youtube.com/imaxmovies).

This press release contains forward looking statements that are based on IMAX management's assumptions and existing information and involve certain risks and uncertainties which could cause actual results to differ materially from future results expressed or implied by such forward looking statements. Important factors that could affect these statements include, but are not limited to, general economic, market or business conditions; the opportunities (or lack thereof) that may be presented to and pursued by the Company; the performance of IMAX DMR films; competitive actions by other companies; conditions in the in-home and out-of-home entertainment industries; the signing of theater system agreements; changes in laws or regulations; conditions, changes and developments in the commercial exhibition industry; the failure to convert theater system backlog into revenue; risks associated with investments and operations in foreign jurisdictions and any future international expansion, including those related to economic, political and regulatory policies of local governments and laws and policies of the United States and Canada; risks related to the Company's growth and operations in China; the failure to respond to change and advancements in digital technology; risks related to the acquisition of AMC Entertainment Holdings, Inc. by Dalian Wanda Group Co., Ltd.; risks related to new business initiatives; the potential impact of increased competition in the markets within which the Company operates; risks related to the Company's inability to protect the Company's intellectual property; risks related to Eastman Kodak bankruptcy and the possibility of constrained film supply; risks related to the Company's implementation of a new enterprise resource planning system; risks related to the Company's prior restatements and the related litigation; and other factors, many of which are beyond the control of the Company. These factors, other risks and uncertainties and financial details are discussed in IMAX's most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.

For additional information please contact:

Investors:

IMAX Corporation, New York

Jessica Kourakos

212-821-0100

jkourakos@imax.com

 

Michael Mougias, New York

212-821-0187

mmougias@imax.com

 

IMAX China Holding, Inc., Shanghai

Kenneth Ke

+86-021-2315-7000

kke@imax.com

 

Business Media:

Sloane & Company, New York

Whit Clay

212-446-1864

wclay@sloanepr.com

Media:

IMAX Corporation, New York

Ann Sommerlath

212-821-0155

asommerlath@imax.com

 

Entertainment Media:

Principal Communications Group, Los Angeles

Melissa Zuckerman/Paul Pflug

323-658-1555

melissa@pcommgroup.com

paul@pcommgroup.com