Press

IMAX CORPORATION REPORTS FIRST QUARTER 2014 FINANCIAL RESULTS
Apr 24, 2014

HIGHLIGHTS 
- IMAX signs contracts for 36 theatres, including 23 across Europe, in the first quarter
- Company expands backlog to historic high of 431 theatres, a 52% increase year-over-year
- First quarter box office comes in at $139 million, with two-thirds generated from international markets

NEW YORK, April 24, 2014 /PRNewswire/ -- IMAX Corporation (NYSE: IMAX; TSX: IMX) today reported first quarter 2014 revenues of $48.2 million, adjusted EBITDA as calculated in accordance with the Company's credit facility of $12.6 million, adjusted net income of $3.3 million, or $0.05 per diluted share, and reported net income of $0.6 million, or $0.01 per diluted share.

"We made significant progress towards our long-term goals this quarter through our multi-picture agreement with Disney and our recently announced transaction with investors in IMAX China. We also had a very strong signings quarter, with 36 new theatres signed, driven by a robust 23 signings in strategically-important Europe," said Richard L. Gelfond, IMAX CEO. "While first-quarter box office is traditionally the softest of the year, just a few weeks into the second quarter, we are encouraged by the strong international opening of The Amazing Spider-Man 2 – just one of the many highly anticipated movies in our portfolio of films for the remainder of year."

Network Growth Update

The total IMAX® theatre network consisted of 840 systems as of March 31, 2014, of which 707 were in commercial multiplexes. There were 431 theatres in backlog as of March 31, 2014, compared to 283 in backlog as of March 31, 2013. In the first quarter of 2014, the Company signed contracts for 36 theatres, of which 35 were for new locations and 1 was for an upgrade. In the quarter, the Company installed 10 theatres, of which 8 were for new theatre locations. For a breakdown of theatre system signings, installations, network and backlog by type, please see the end of this press release.

"The significant level of interest in our business worldwide is promising and underscores how the IMAX brand has become synonymous with the ultimate way to experience blockbuster films," stated Mr. Gelfond. "We are excited for what the future holds for IMAX. We believe that our network growth, the continued commitment from our partners and our consumers' enthusiasm globally, combined with our portfolio of films in 2014 and beyond, will continue to solidify our position as a unique and dominant player in the global entertainment industry."

First-Quarter Segment Results

-Revenue from sales and sales-type leases was $4.5 million in the first quarter of 2014, compared to $9.8 million in the first quarter of 2013, primarily reflecting the installation of 3 full, new theatre systems under sales and sales-type lease arrangements in the most recent first quarter, compared to the 6 sales and sales-type theatres the Company installed in the first quarter of 2013. In addition, there were 2 digital system upgrades (1 sales-type and 1 joint revenue-sharing) in existing locations in the first quarter of 2014, compared to 7 upgrades (all sales-type) in the first quarter of 2013.
-Revenue from joint revenue-sharing arrangements was $10.9 million in the quarter, compared to $9.4 million in the prior-year period. During the quarter, the Company installed 5 new theatres under joint revenue-sharing arrangements, compared to 4 in the year-ago period. The Company had 388 theatres operating under joint revenue-sharing arrangements as of March 31, 2014, as compared to 319 theatres one year prior.
-Production and IMAX DMR® (Digital Re-Mastering) revenues were $15.2 million in the first quarter of 2014, compared to $14.4 million in the first quarter of 2013. Gross box office from DMR titles was $138.5 million in the first quarter of 2014, compared to $128.7 million in the prior-year period. The average global DMR box office per screen in the first quarter of 2014 was $197,000 compared to $212,900 in the prior-year period.

Conference Call

The Company will host a conference call today at 8:30 AM ET to discuss its first quarter 2014 financial results. To access the call via telephone, interested parties in the US and Canada should dial (800) 820-0231 approximately 5 to 10 minutes before it begins. International callers should dial (416) 640-5926. The participant passcode for the call is 2860379. This call is also being webcast by Thomson Financial and can be accessed on the 'Investor Relations' section of www.imax.com. 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 2860379.

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 March 31, 2014, there were 840 IMAX theatres (707 commercial multiplexes, 18 commercial destinations and 115 institutions) in 57 countries.

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.

 

Additional Information

     

Signings and Installations

    

Mar. 31, 2014

    
   

Three Months

 
   

Ended Mar. 31,

 
 

Theatre Signings:

2014

 

2013

 
  

Full new sales and sales-type lease arrangements        

32

(1)

14

(1)

  

New joint revenue sharing arrangements

3

 

3

 
 

Total new theatres

35

 

17

 
       
  

Upgrades of IMAX theatre systems

1

 

8

(2)(3)

 

Total Theatre Signings

36

 

25

 
       
   

Three Months

 
   

Ended Mar. 31,

 
 

Theatre Installations:

2014

 

2013

 
  

Full new sales and sales-type lease arrangements

3

 

6

 
  

New joint revenue sharing arrangements

5

 

4

 
 

Total new theatres

8

 

10

 
       
  

Upgrades of IMAX theatre systems

2

 

7

(2)

 

Total Theatre Installations

10

 

17

 
       
   

As of Mar. 31,

 
 

Theatre Backlog:

2014

 

2013

 
  

New sales and sales-type lease arrangements

151

 

135

 
  

New joint revenue sharing arrangements

257

 

136

 
 

Total new theatres

408

 

271

 
       
  

Upgrades of IMAX theatre systems

23

 

12

 
 

Total Theatres in Backlog

431

(4)

283

(5)

       
   

As of Mar. 31,

 
 

Theatre Network:

2014

 

2013

 
 

Commercial Multiplex Theatres:

    
  

Sales and sales-type lease arrangements

319

 

287

 
  

Joint revenue sharing arrangements

388

 

319

 
 

Total Commercial Multiplex Theatres

707

 

606

 
       
 

Commercial Destination Theatres

18

 

19

 
 

Institutional Theatres

115

 

113

 
 

Total IMAX Theatre Network

840

 

738

 
       

______________________

(1)

Includes three signings which replaced theaters under an existing arrangement in backlog (2013 – one).

(2)

Includes upgrades to xenon-based digital systems under short-term operating lease arrangements (2 signings, 2 installations).

(3)

Includes installation of laser-based digital systems in existing theater (2 signings).

(4)

Includes 23 upgrades to a digital theater system, in an existing IMAX theater location (3 xenon and 20 laser, of which 4 are under joint revenue sharing arrangements).

(5)

Includes 12 upgrades to a digital theater system, in an existing IMAX theater location (5 xenon and 7 laser).

 

Additional Information (continued)

2014 DMR Films:  

To date, IMAX has announced 19 titles so far to be released in 2014.  The Company released 38 titles in 2013.  The Company remains in discussions with virtually every major studio regarding future titles and expects the total number of titles in 2014 to be similar to that in 2013. 

- Jack Ryan: Shadow Recruit: The IMAX Experience (Paramount PicturesJanuary 2014);
I, Frankenstein: An IMAX 3D Experience (Lionsgate, January 2014);
The Monkey King: The IMAX Experience (Global Star ProductionsJanuary 2014,China only);
Robocop: The IMAX Experience (Metro-Goldwyn-Mayer Studios, Inc.February 2014);
300: Rise of an Empire: An IMAX 3D Experience (Warner Bros. Pictures, March 2014);
Need for Speed: An IMAX 3D Experience  (Walt Disney Studios, March 2014, select international markets);
Divergent: The IMAX Experience (Summit EntertainmentMarch 2014);
Noah: The IMAX Experience (Paramount PicturesMarch 2014);
Captain America: The Winter Soldier: An IMAX 3D Experience (Marvel Entertainment,April 2014);
Transcendence: The IMAX Experience (Warner Bros. Pictures, April 2014);
The Amazing Spider-Man 2: An IMAX 3D Experience (Sony PicturesMay 2014);
Godzilla: An IMAX 3D Experience (Warner Bros. Pictures, May 2014);
Maleficent: An IMAX 3D Experience (Walt Disney Studios, May 2014);
Edge of Tomorrow: An IMAX 3D Experience (Warner Bros. Pictures, June 2014);
How to Train Your Dragon 2: An IMAX 3D Experience  (DreamWorks Animation,June 2014, select international markets);
Transformers: Age of Extinction: An IMAX 3D Experience (Paramount PicturesJune 2014);
Guardians of the Galaxy: An IMAX 3D Experience (Walt Disney Studios, August 2014);
Interstellar: The IMAX Experience (Paramount Pictures and Warner Bros. Pictures,November 2014); and
The Hobbit: There and Back Again: An IMAX 3D Experience (Warner Bros. Pictures,December 2014).

 

 

IMAX CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

In accordance with United States Generally Accepted Accounting Principles

(In thousands of U.S. dollars, except per share amounts)

(Unaudited)

   
  

Three Months

  

Ended March 31,

  

2014

 

2013

Revenues

     

Equipment and product sales

$

6,354

 

$

10,679

Services

 

28,872

  

26,656

Rentals

 

10,791

  

9,972

Finance income

 

2,180

  

1,984

Other

 

-

  

375

   

48,197

  

49,666

Costs and expenses applicable to revenues

     

Equipment and product sales

 

3,719

  

5,059

Services

 

14,350

  

14,964

Rentals

 

3,720

  

3,453

Other

 

-

  

-

   

21,789

  

23,476

Gross margin

 

26,408

  

26,190

Selling, general and administrative expenses

 

21,312

  

19,661

 

(including share-based compensation expense of $3.2 million for the three months

ended March 31, 2014 (2013 - expense of $2.8 million))

     

Gain on curtailment of postretirement benefit plan

 

-

  

(2,185)

Research and development

 

3,599

  

3,634

Amortization of intangibles

 

402

  

364

Receivable provisions, net of recoveries

 

287

  

-

Income from operations

 

808

  

4,716

Interest income

 

16

  

13

Interest expense

 

(266)

  

(345)

Income from operations before income taxes

 

558

  

4,384

Provision for income taxes

 

(72)

  

(1,203)

Loss from equity-accounted investments, net of tax

 

(262)

  

(220)

Income from continuing operations

 

224

  

2,961

Net income (loss) from discontinued operations, net of tax

 

355

  

(100)

Net income

$

579

 

$

2,861

       

Net income per share - basic & diluted:

     
 

Net income per share from continuing operations

$

-

 

$

0.04

 

Net income per share from discontinued operations

 

0.01

  

-

  

$

0.01

 

$

0.04

       
       

Weighted average number of shares outstanding (000's):

     
 

Basic

 

67,908

  

66,646

 

Fully Diluted

 

69,321

  

68,690

       

Additional Disclosure:

     
       

Depreciation and amortization(1)

$

7,555

 

$

8,591

       

                                                                               

 

(1)

Includes $0.1 million of amortization of deferred financing costs charged to interest expense for the three months ended March 31, 2014, respectively (2013 - $0.1 million).

 

 

IMAX CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

In accordance with United States Generally Accepted Accounting Principles

(in thousands of U.S. dollars)

(Unaudited)

 

As at

 

As at

 

March 31,

 

December 31,

 

2014

 

2013

Assets

     

Cash and cash equivalents

$

29,692

 

$

29,546

Accounts receivable, net of allowance for doubtful accounts of $838 (December 31, 2013 — $887)

 

59,942

  

73,074

Financing receivables

 

103,752

  

107,110

Inventories

 

13,798

  

9,825

Prepaid expenses

 

4,641

  

3,602

Film assets

 

6,714

  

7,076

Property, plant and equipment

 

141,875

  

132,847

Other assets

 

27,173

  

27,034

Deferred income taxes

 

24,402

  

24,259

Other intangible assets

 

27,230

  

27,745

Goodwill

 

39,027

  

39,027

Total assets

$

478,246

 

$

481,145

      

Liabilities

     

Accounts payable

$

14,319

 

$

19,396

Accrued and other liabilities

 

57,745

  

65,232

Deferred revenue

 

83,409

  

76,932

Total liabilities

 

155,473

  

161,560

      

Commitments and contingencies

     
      

Shareholders' equity

     

Capital stock, common shares — no par value. Authorized — unlimited number.

     

    Issued and outstanding — 67,957,167 (December 31, 2013 — 67,841,233)

 

328,685

  

327,313

Other equity

 

38,216

  

36,452

Accumulated deficit

 

(42,472)

  

(43,051)

Accumulated other comprehensive loss

 

(1,656)

  

(1,129)

Total shareholders' equity

 

322,773

  

319,585

Total liabilities and shareholders' equity

$

478,246

 

$

481,145

      
      
 

 

IMAX CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

In accordance with United States Generally Accepted Accounting Principles

(In thousands of U.S. dollars)

(Unaudited)

  

Three Months

  

Ended March 31,

  

2014

 

2013

Cash provided by (used in):

    

Operating Activities

     

Net income

$

579

 

$

2,861

 

Net (income) loss from discontinued operations

 

(355)

  

100

Adjustments to reconcile net income to cash from operations:

     
 

Depreciation and amortization

 

7,555

  

8,591

 

Write-downs, net of recoveries

 

518

  

-

 

Change in deferred income taxes

 

(75)

  

904

 

Stock and other non-cash compensation

 

3,281

  

3,000

 

Gain on curtailment of postretirement benefit plan

 

-

  

(2,185)

 

Unrealized foreign currency exchange loss

 

646

  

189

 

Loss from equity-accounted investments

 

346

  

220

Investment in film assets

 

(1,888)

  

(3,866)

Changes in other non-cash operating assets and liabilities

 

2,755

  

(10,703)

Net cash provided by (used in) operating activities from discontinued operations

 

572

  

(100)

 

Net cash provided by (used in) operating activities

 

13,934

  

(989)

       

Investing Activities

     

Purchase of property, plant and equipment

 

(7,927)

  

(3,315)

Investment in joint revenue sharing equipment

 

(5,506)

  

(8,717)

Acquisition of other intangible assets

 

(287)

  

(778)

 

Net cash used in investing activities

 

(13,720)

  

(12,810)

       

Financing Activities

     

Common shares issued - stock options exercised

 

742

  

2,485

Settlement of restricted share units

 

(789)

  

-

Increase in bank indebtedness

 

-

  

12,000

Repayment of bank indebtedness

 

-

  

(5,000)

Credit facility amendment fees paid

 

-

  

(1,881)

 

Net cash (used in) provided by financing activities

 

(47)

  

7,604

       

Effects of exchange rate changes on cash

 

(21)

  

17

       

Increase (decrease) in cash and cash equivalents during the period

 

146

  

(6,178)

       

Cash and cash equivalents, beginning of period

 

29,546

  

21,336

Cash and cash equivalents, end of period

$

29,692

 

$

15,158

       
 

 

IMAX CORPORATION

SELECTED FINANCIAL DATA

In accordance with United States Generally Accepted Accounting Principles

(in thousands of U.S. dollars)

 

The Company has seven reportable segments identified by category of product sold or service provided: IMAX systems; theater system maintenance; joint revenue sharing arrangements; film production and IMAX DMR; film distribution; film post-production; and other. The IMAX systems segment designs, manufactures, sells or leases IMAX theater projection system equipment. The theater system maintenance segment maintains IMAX theater projection system equipment in the IMAX theater network. The joint revenue sharing arrangements segment provides IMAX theater projection system equipment to an exhibitor in exchange for a share of box-office and concession revenues. The film production and IMAX DMR segment produces films and performs film re-mastering services. The film distribution segment distributes films for which the Company has distribution rights. The film post-production segment provides film post-production and film print services. The other segment includes certain IMAX theaters that the Company owns and operates, camera rentals and other miscellaneous items.

 

 

   

Three Months

   

Ended March 31,

   

 

2014

 

2013

Revenue

     

IMAX Theater Systems

     
 

IMAX Systems

     
  

Sales and sales-type leases

$

4,507

 

$

9,796

  

Ongoing rent, fees, and finance income

 

3,253

  

2,942

  

Other

 

1,512

  

1,780

    

9,272

  

14,518

 

Theater system maintenance

 

8,195

  

7,789

 

Joint revenue sharing arrangements

 

10,856

  

9,376

        

Film

     
 

Production and IMAX DMR

 

15,185

  

14,355

 

Film distribution and post-production

 

4,689

  

3,628

    

19,874

  

17,983

Total

$

48,197

 

$

49,666

        

Gross margins

     

IMAX Theater Systems

     
 

IMAX systems(1)

     
  

Sales and sales-type leases

$

1,659

 

$

5,284

  

Ongoing rent, fees, and finance income

 

3,114

  

2,907

  

Other

 

(438)

  

(198)

    

4,335

  

7,993

 

Theater system maintenance

 

3,001

  

3,054

 

Joint revenue sharing arrangements(1)

 

7,283

  

6,159

        

Film

     
 

Production and IMAX DMR(1)

 

11,074

  

9,213

 

Film distribution and post-production

 

715

  

(229)

    

11,789

  

8,984

Total

$

26,408

 

$

26,190

_________

(1)

  IMAX systems include marketing and commission costs of $0.2 million for the three months ended March 31, 2014 (2013 — $0.3 million). Joint revenue sharing arrangements segment margins include advertising, marketing and commission costs of $0.2 million for the three months ended March 31, 2014 (2013 — $0.2 million). Production and DMR segment margins include marketing costs of $1.1 million for the three months ended March 31, 2014 (2013 — $0.9 million). Distribution segment margins include marketing costs of $0.2 million for the three months ended March 31, 2014 (2013 — $0.1 million).

 

IMAX CORPORATION

OTHER INFORMATION

 (in thousands of U.S. dollars)

 

Non-GAAP Financial Measures:

 

In this release, the Company presents adjusted EBITDA, adjusted net income and adjusted net income per diluted share as supplemental measures of performance of the Company, which are not recognized under United States generally accepted accounting principles ("GAAP"). The Company presents adjusted EBITDA, adjusted net income and adjusted net income per diluted share because it believes that they are important supplemental measures of its comparable controllable operating performance and it wants to ensure that its investors fully understand the impact of its stock-based compensation (net of any related tax impact) on its net income. Management uses these measures to review operating performance on a comparable basis from period to period. However, these non-GAAP measures may not be comparable to similarly titled amounts reported by other companies. Adjusted EBITDA, adjusted net income and adjusted net income per diluted share should be considered in addition to, and not as a substitute for, net income and other measures of financial performance reported in accordance with GAAP.

 

Adjusted EBITDA is calculated on a basis consistent with the Company's Credit Facility, which refers to Adjusted EBITDA as EBITDA. The Credit Facility provides that the Company will be required to maintain a Fixed Charge Coverage Ratio (as defined in the Credit Agreement) of not less than 1.1:1. The Company will also be required to maintain minimum EBITDA (as defined in the Credit Agreement) of $90.0 million on December 31, 2014, which requirement increases to $100.0 million on December 31, 2015. The Company must also maintain a Maximum Total Leverage Ratio (as defined in the Credit Agreement) of 2.00:1 on December 31, 2014, which requirement decreases to 1.75:1 on December 31, 2015. The ratio of total debt to EBITDA was nil:1 as at March 31, 2014, where Total Debt (as defined in the Credit Agreement) is the sum of all obligations evidenced by notes, bonds, debentures or similar instruments and was $nil. EBITDA is calculated as follows:

 

  

3 months ended

 

12 months ended

 

March 31, 2014

 

March 31, 2014

(In thousands of U.S Dollars)

     

Net income

$

579

 

$

41,833

Add:

     
 

Loss from equity accounted investments

 

262

  

2,799

 

Provision for income taxes(1)

 

289

  

15,607

 

Interest expense, net of interest income

 

250

  

1,209

 

Depreciation and amortization, including film asset amortization

 

7,424

  

35,616

 

Write-downs net of recoveries including asset impairments and receivable provisions

 

518

  

1,854

 

Stock and other non-cash compensation

 

3,281

  

12,966

  

$

12,603

 

$

111,884

______

(1)

Includes a tax provision in discontinued operations of $0.2 million and $0.1 million for the three and twelve months ended March 31, 2014, respectively.

 

IMAX CORPORATION

OTHER INFORMATION

 (in thousands of U.S. dollars)

 
 

Adjusted Net Income and Adjusted Diluted Per Share Calculations – Quarter Ended March 31, 2014 vs. 2013:

 

The Company reported net income of $0.6 million or $0.01 per basic and diluted share for the first quarter of 2014, as compared to net income of $2.9 million or $0.04 per basic share and diluted share for the first quarter of 2013. Net income for the first quarter of 2014 includes a $3.2 million charge, or $0.05 per diluted share, for stock-based compensation (2013 - $2.8 million or $0.04 per diluted share). Adjusted net income, which consists of net income excluding stock-based compensation expense and the related tax impact, was $3.3 million, or $0.05 per diluted share, in the first quarter of 2014, as compared to adjusted net income of $5.6 million, or $0.08 per diluted share, for the first quarter of 2013. A reconciliation of net income, the most directly comparable U.S. GAAP measure, to adjusted net income and adjusted net income per diluted share is presented in the table below:

 

  

Three Months Ended

 

Three Months Ended

  

March 31, 2014

 

March 31, 2013

  

Net Income

 

Diluted EPS

 

Net Income

 

Diluted EPS

Reported net income

$

579

 

$

0.01

 

$

2,861

 

$

0.04

Adjustments:

           
 

Stock-based compensation

 

3,188

  

0.05

  

2,808

  

0.04

 

Tax expense on items listed above

 

(515)

  

(0.01)

  

(105)

  

-

Adjusted net income

$

3,252

 

$

0.05

 

$

5,564

 

$

0.08

             

Weighted average diluted shares outstanding

    

69,321

     

68,690

             

 

Free Cash Flow:

 

Free cash flow is defined as cash provided by operating activities minus cash used in investing activities (from the consolidated statements of cash flows). Cash provided by operating activities consist of net income, plus depreciation and amortization, plus the change in deferred income taxes, plus other non-cash items, plus changes in working capital, less investment in film assets, plus other changes in operating assets and liabilities. Cash used in investing activities includes capital expenditures, acquisitions and other cash used in investing activities. Management views free cash flow, a non-GAAP measure, as a measure of the Company's after-tax cash flow available to reduce debt, add to cash balances, and fund other financing activities. A reconciliation of cash provided by operating activities to free cash flow is presented in the table below:

 

  

For the

  

3 months ended

 

March 31, 2014

(In thousands of U.S. Dollars)

  

Net cash provided by operating activities        

$

13,934

Net cash (used in) investing activities

 

(13,720)

Free cash flow

$

214