NEW YORK, Oct. 24, 2013 /PRNewswire/ -- IMAX Corporation (NYSE: IMAX; TSX:IMX) today reported third quarter 2013 revenues of $51.7 million, adjusted EBITDA as calculated in accordance with the Company's credit facility of $14.8 million, adjusted net income of $4.4 million, or $0.06 per diluted share, and reported net income of $1.6 million, or $0.02 per diluted share.
"We continued to make significant progress this quarter toward our key strategic initiatives, including strong signings, controlling SG&A and continued advancements on differentiation," stated Richard L. Gelfond, IMAX Chief Executive Officer. "Looking ahead, our great start to Q4, including IMAX's strong performance on Gravity and Stalingrad, reminds us of the importance of assessing our portfolio of films on an annual basis, which we believe is a relatively predictable driver of box office performance over the long-term."
Network Growth Update
The total IMAX® theatre network consisted of 785 systems as of September 30, 2013, of which 653 were in commercial multiplexes. There were 356 theatre systems in backlog as of September 30, 2013, compared to 285 theatre systems in backlog as of September 30, 2012. IMAX has signed contracts for 158 theatres year-to-date, already surpassing the 142 signings for all of 2012. Neither the backlog number, nor the YTD signings, include the 80 additional theatres still optional under the Wanda contract. For a breakdown of theatre system signings, installations, network and backlog by type, please see the end of this press release.
In the third quarter of 2013, the Company signed contracts for 99 theatre systems, of which 88 were in new theatre locations and 11 were a combination of signings for laser systems and upgrades of certain of the Company's film theatres to digital systems in existing theatre locations. In the quarter, the Company installed 28 theatre systems, of which 19 were in new theatre locations.
"Strong third quarter signings, historic high backlog and many fourth quarter deals either signed or in discussions, provide increased visibility into strong network growth over the long-term," Gelfond continued, "This unit growth, along with our ongoing focus on controlling costs and optimizing our film portfolio, give us confidence in our operating leverage and cash flow potential for the long-term."
Third-Quarter Segment Results
-Revenue from sales and sales-type leases was $6.4 million in the third quarter of 2013, compared to $21.9 million in the third quarter of 2012, primarily reflecting the installation of 5 full, new theatre systems under sales and sales-type lease arrangements in the most recent third quarter, compared to the 14 sales and sales-type theatres the Company installed in the third quarter of 2012. The Company also installed 1 operating lease in a new location. In addition there were 9 digital system upgrades in existing locations in the third quarter of 2013, compared to 5 upgrades in the third quarter of 2012.
-Revenue from joint revenue-sharing arrangements was $12.0 million in the quarter, compared to $13.2 million in the prior-year period. During the quarter, the Company installed 13 new theatres under joint revenue-sharing arrangements, compared to 14 in the year-ago period. The Company had 351 theatres operating under joint revenue-sharing arrangements as of September 30, 2013, as compared to 287 theatres one year prior.
-Production and IMAX DMR® (Digital Re-Mastering) revenues were $14.5 millionin the third quarter of 2013, compared to $25.2 million in the third quarter of 2012. Gross box office from DMR titles was $132.5 million in the third quarter of 2013, compared to $173.2 million in the prior-year period. The average global DMR box office per screen in the third quarter of 2013 was $207,500 compared to $312,000 in the prior-year period.
The Company will host a conference call today at 8:30 AM ET to discuss its third quarter 2013 financial results. To access the call via telephone, interested parties should dial (800) 711-9538 approximately 5 to 10 minutes before it begins. International callers should dial (416) 640-5925. The participant passcode for the call is 1695965. 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 1695965.
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 inLondon, Tokyo, Shanghai and Beijing. As of September 30, 2013, there were 785 IMAX theatres (653 commercial multiplexes, 19 commercial destinations and 113 institutions) in 55 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 andCanada; 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.