- Strong margins in 2014 lead to record $86.6 million of operating cash flow, resulting in $106.5 million of cash at the end of the year
- IMAX recognizes 57 installations in the fourth quarter, bringing full year to 121 installations across 24 countries
- IMAX signs contracts for 16 theatres in Q4, bringing the full year signings total 118 theater systems, replenishing backlog to 397 theater systems
- 2014 strategic accomplishments, including the launch of its world-class laser projection system, positions the Company well for strong film slates in 2015 and beyond
NEW YORK, Feb. 19, 2015 /PRNewswire/ -- IMAX Corporation (NYSE: IMAX) today reported fourth quarter 2014 revenues of $102.4 million, adjusted EBITDA as calculated in accordance with the Company's credit facility of $45.5 million, adjusted net income after non-controlling interest of $24.2 million, or $0.34 per diluted share, and reported net income after non-controlling interest of $21.0 million, or $0.30 per diluted share. The Company also reported a fourth quarter global per screen average of $292,000.
Full year 2014 revenues were $290.5 million, adjusted EBITDA as calculated in accordance with the Company's credit facility was $108.5 million, adjusted net income was $52.5 million, or $0.75 per diluted share, and reported net income attributable to common shareholders was $39.7 million, or $0.56 per diluted share. For reconciliations of adjusted net income to reported net income and for the definition of adjusted EBITDA and free cash flow, please see the tables at the end of this press release. The Company also reported a global 2014 per screen average of $1,020,600.
"We achieved a great deal over the course of 2014, including the completion of our world-class laser projection system, the sale of a 20% stake in our China business, the signing of long term film deals with most major studios and continued network growth," said IMAX CEO Richard L. Gelfond. "We believe these accomplishments position us well, not only to take advantage of the 2015 film slate, which is already off to a great start, but also to help drive long-term growth."
Network Growth Update
In the fourth quarter of 2014, the Company signed contracts for 16 theater systems, of which 3 were upgrades, bringing total singings for 2014 to 118, of which 14 were upgrades. The Company also installed 57 theater systems in the quarter, of which 2 were upgrades of existing theater locations, bringing the full year installation total to 121 theater systems, of which 8 were upgrades.
"We are extremely pleased with how much the IMAX network has grown over the past 5 years. We had just 288 commercial theaters in 2009, compared to the 809 we have today," continued Gelfond. "More impressive is that much of that growth has been fueled by China, where we have doubled our network over the past few years while still maintaining the same strong per screen averages. That being said, our growth has truly been global. We installed 121 theaters across 24 countries in 2014 and our global footprint now spans 62 countries. We will continue our efforts to both expand into new markets and strengthen our presence in existing ones, and to solidify our position as the world's most immersive entertainment experience."
The total IMAX® theater network consisted of 934 systems as of December 31, 2014, of which 809 were in commercial multiplexes. IMAX signed contracts for 118 theaters in 2014, across 28 countries, resulting in 397 theater systems in backlog as of December 31, 2014, compared to 407 theater systems in backlog as of December 31, 2013. For a breakdown of theater system signings, installations, network and backlog by type, please see the end of this press release.
Fourth-Quarter Segment Results
Revenue from sales and sales-type leases was $33.2 million in the fourth quarter of 2014, compared to $32.6 million in the fourth quarter of 2013, primarily reflecting the installation of 26 full, new theater systems under sales and sales-type lease arrangements in the most recent fourth quarter, compared to 24 installations in the fourth quarter of 2013. In addition there were 2 digital system upgrades in existing locations in the fourth quarter of 2014, compared to 4 upgrades in the fourth quarter of 2013.
Revenue from joint revenue-sharing arrangements was $23.0 million in the quarter, compared to $24.5 million in the prior-year period. During the quarter, the Company installed 29 new theaters under joint revenue-sharing arrangements, compared to 30 in the year ago period. The Company had 451 theaters operating under joint revenue-sharing arrangements as of December 31, 2014, as compared to 382 theaters one year prior.
Production and IMAX DMR® (Digital Re-Mastering) revenues were $25.6 million in the fourth quarter of 2014, compared to $28.6 million in the fourth quarter of 2013. Gross box office from DMR titles was $226.9 million in the fourth quarter of 2014, compared to $244.5 million in the prior-year period. The average global DMR box office per screen in the fourth quarter of 2014 was $292,200 compared to $366,300 in the prior-year period.
The Company will host a conference call today at 8:30 AM ET to discuss its fourth quarter and full year 2014 financial results. To access the call via telephone, interested parties in the US and Canada should dial (800) 524-8950 approximately 5 to 10 minutes before the call begins. International callers should dial (416) 260-0113. The conference ID for the call is 7208716. 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 7208716.
Shares Subject To Purchase Under Equity Compensation Plans
IMAX announced that the Computershare Trust Company of Canada, previously appointed trustee of IMAX equity compensation plans, has been authorized to purchase common shares up to $10 million USD starting February 25, 2015 through December 31, 2015 to satisfy obligations under our equity compensation plans. The Company has no obligation to purchase shares and the Company is committed to retaining the financial strength and flexibility it needs to invest in its core business and ensuring its ability to pursue other opportunities that might arise.
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 theaters 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, 2014, there were 934 IMAX theaters (809 commercial multiplexes, 19 commercial destinations and 106 institutions) in 62 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).
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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, references to future capital expenditures (including the amount and nature thereof), business and technology strategies and measures to implement strategies, competitive strengths, goals, expansion and growth of business, operations and technology, plans and references to the future success of IMAX Corporation together with its wholly-owned subsidiaries (the "Company") and expectations regarding the Company's future operating, financial and technological results. These forward-looking statements are based on certain assumptions and analyses made by the Company in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate in the circumstances. However, whether actual results and developments will conform with the expectations and predictions of the Company is subject to a number of risks and uncertainties, including, but not limited to , the signing of theater system agreements; conditions, changes and developments in the commercial exhibition industry; the performance of IMAX DMR films; the potential impact of increased competition in the markets within which the Company operates; competitive actions by other companies; the failure to respond to change and advancements in digital technology; 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 Company's largest customer accounting for a significant portion of the Company's revenue and backlog; risks related to new business initiatives; conditions in the in-home and out-of-home entertainment industries; the opportunities (or lack thereof) that may be presented to and pursued by the Company; risks related to the Company's inability to protect the Company's intellectual property; risks related to the Company's implementation of a new enterprise resource planning system; general economic, market or business conditions; the failure to convert theater system backlog into revenue; changes in laws or regulations; risks related to the Company's dependence on a sole supplier for its analog film; risks related to cybersecurity; 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.