--- title: IMAX Corporation Reports First Quarter 2015 Financial Results publisher: "IMAX" description: "HIGHLIGHTS -  Strong film performance along with expanded margins result in over 50% growth in adjusted net income after non-controlling interest in Q1 2015 compared to Q1 2014 -  First quarter revenues increase 29% from prior year period to $62.2 million , driven by strong box office and higher" canonical: "https://www.imax.com/pr/imax-corporation-reports-first-quarter-2015-financial-results" date: 2015-04-30 last_updated: 2015-04-30 --- IMAX Corporation Reports First Quarter 2015 Financial Results ============================================================= Thu, Apr 30, 2015 HIGHLIGHTS \-  Strong film performance along with expanded margins result in over 50% growth in adjusted net income after non-controlling interest in Q1 2015 compared to Q1 2014 \-  First quarter revenues increase 29% from prior year period to $62.2 million, driven by strong box office and higher installations \-  Q1 2015 box office of $166 million, up 20% from Q1 2014, with 64% generated from international markets \-  Strategic initiatives such as roll-out of laser system, recent long-term film deals with Disneyand Warner Brothers, new theatre signings and strong theatre openings position Company well for future growth NEW YORK, April 30, 2015/PRNewswire/ **\-- IMAX Corporation**(NYSE: IMAX) today reported first quarter 2015 revenues of $62.2 million, adjusted EBITDA as calculated in accordance with the Company's credit facility of $16.0 million, adjusted net income after non-controlling interest of $5.0 million, or $0.07per diluted share, and reported net income after non-controlling interest of $0.4 million, or $nil per diluted share. The Company also reported a first quarter global per screen average of $202,900. ![IMAX Logo.](http://photos.prnewswire.com/prnvar/20111107/MM01969LOGO "IMAX Logo.") "This is a very exciting time for IMAX," said IMAXCEO Richard L. Gelfond. "Our continued progress in expanding our theatre network globally, along with our strong film performance during the first quarter, resulted in robust financial results with almost 30% revenue growth and over 50% adjusted earnings growth compared to the same period last year.  With record results from _Furious 7_in April and a great start to the _Avenger's_sequel internationally, the momentum has continued into the second quarter."   **Network Growth Update** The total IMAX® theatre network consisted of 943 systems as of March 31, 2015, of which 820 were in commercial multiplexes. There were 403 theatres in backlog as of March 31, 2015, compared to 431 in backlog as of March 31, 2014.  In the first quarter of 2015, the Company signed contracts for 21 theatres, of which 20 were for new locations and 1 was for an upgrade.  In the quarter, the Company also installed 13 theatres, of which 11 were for new theatre locations and 2 were upgrades.  For a breakdown of theatre system signings, installations, network and backlog by type, please see the end of this press release. "The year has gotten off to a very positive start with film performance, network expansion, technology advancements and openings in new markets, all showing promise," continued Gelfond. "With the successful launch of our laser system to rave reviews, our recent long-term movie deals with Disneyand Warner Brothers, our installation pace and new signings and strong box office results so far this year – we continue to solidify our leading position in the entertainment ecosystem and set the stage for future long-term growth." **First-Quarter Segment Results** * Revenue from sales and sales-type leases was $8.6 millionin the first quarter of 2015, compared to $4.5 millionin the first quarter of 2014, primarily reflecting the installation of 5 full, new theatre systems under sales and sales-type lease arrangements in the most recent first quarter, compared to the 3 sales-type theatres the Company installed in the first quarter of 2014. In addition, there were 2 digital system upgrades (1 sale and 1 operating lease) in existing locations in the first quarter of 2015, compared to 2 upgrades (1 sale and 1 joint revenue-sharing) in the first quarter of 2014. * Revenue from joint revenue-sharing arrangements was $15.9 millionin the quarter, compared to $10.9 millionin the prior-year period.  During the quarter, the Company installed 6 new theatres under joint revenue-sharing arrangements, compared to 5 in 2014.  The Company had 457 theatres operating under joint revenue-sharing arrangements as of March 31, 2015, as compared to 388 joint-venture theatres one year prior. * Production and IMAX DMR® (Digital Re-Mastering) revenues were $17.7 millionin the first quarter of 2015, compared to $15.2 millionin the first quarter of 2014.  Gross box office from DMR titles was $165.6 millionin the first quarter of 2014, compared to $138.5 millionin the prior-year period.  The average global DMR box office per screen in the first quarter of 2014 was $202,900compared to $197,000in the prior-year period. **Conference Call **The Company will host a conference call today at 8:30 AM ETto discuss its first quarter 2015 financial results.  To access the call via telephone, interested parties in the US and Canadashould 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 **1956369****.**A replay of the call will be available via webcast on the 'Investor Relations' section of [www.imax.com](http://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 **1956369.** **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 IMAXtheatres to connect with audiences in extraordinary ways, and, as such, IMAX'snetwork is among the most important and successful theatrical distribution platforms for major event films around the globe. IMAXis headquartered in New York, Torontoand Los Angeles, with offices in London, Tokyo, Shanghaiand Beijing.  As of March 31, 2015, there were 943 IMAXtheatres (820 commercial multiplexes, 18 commercial destinations and 105 institutions) in 63 countries. IMAX®, IMAX® 3D, IMAX DMR®, Experience It In IMAX®, An IMAX 3D Experience®, The IMAX Experience®, IMAX Is Believing® and IMAXnXos® are trademarks of IMAX Corporation. More information about the Company can be found at [www.imax.com](http://www.imax.com/). You may also connect with IMAXon Facebook([www.facebook.com/imax](http://www.facebook.com/imax)), Twitter ([www.twitter.com/imax](http://www.twitter.com/imax)) and YouTube([www.youtube.com/imaxmovies](http://www.youtube.com/imaxmovies)). _This press release contains forward looking statements that are based on IMAXmanagement'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 Statesand 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 Kodakbankruptcy 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'smost recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q._ For additional information please contact: **_Investors:_** IMAX Corporation, New York Teri Loxam 212-821-0100 [tloxam@imax.com](mailto:tloxam@imax.com) **_Business Media:_** Sloane & Company, New York Whit Clay 212-446-1864 [wclay@sloanepr.com](mailto:wclay@sloanepr.com) **_Media:_** IMAX Corporation, New York Ann Sommerlath 212-821-0155 [asommerlath@imax.com](mailto:asommerlath@imax.com) **_Entertainment Media:_** Principal Communications Group, Los Angeles Melissa Zuckerman/Paul Pflug 323-658-1555 [melissa@pcommgroup.com](mailto:melissa@pcommgroup.com) [paul@pcommgroup.com](mailto:paul@pcommgroup.com) **Additional Information** **Signings and Installations** Mar. 31, 2015 **Three Months** **Ended Mar. 31,** **Theater Signings:** **2015** **2014** Full new sales and sales-type lease arrangements 12 32 (1) New joint revenue sharing arrangements 8 3 **Total new Theaters** **20** **35** Upgrades of IMAX Theater systems 1 1 **Total Theater Signings** **21** **36** **Three Months** **Ended Mar. 31,** **Theater Installations:** **2015** **2014** Full new sales and sales-type lease arrangements 5 3 New joint revenue sharing arrangements 6 5 **Total new Theaters** **11** **8** Upgrades of IMAX Theater systems 2 (2) 2 **Total Theater Installations** **13** **10** **As of Mar. 31,** **Theater Backlog:** **2015** **2014** New sales and sales-type lease arrangements 160 151 New joint revenue sharing arrangements 218 257 **Total new Theaters** **378** **408** Upgrades of IMAX Theater systems 25 23 **Total Theaters in Backlog** **403** (3)(4) **431** (3)(5) **As of Mar. 31,** **Theater Network:** **2015** **2014** Commercial Multiplex Theaters: Sales and sales-type lease arrangements 363 319 Joint revenue sharing arrangements 457 388 **Total Commercial Multiplex Theaters** **820** **707** Commercial Destination Theaters 18 18 Institutional Theaters 105 115 **Total IMAX Theater Network** **943** **840** \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ (1)     Includes three signings which replaced theaters under an existing arrangement in backlog.(2)     Includes one upgrade to a laser-based digital system in an existing IMAXtheater location.(3)     Includes 69 laser theater system configurations (2014 – 64), including upgrades. The Company continues to develop and roll out its laser projection system. (4)     Includes 25 upgrades to a digital theater system in existing IMAXtheater locations (2 xenon and 23 laser, of which 5 are under joint revenue sharing arrangements). (5)     Includes 23 upgrades to a digital theater system in existing IMAXtheater locations (3 xenon and 20 laser, of which 4 are under joint revenue sharing arrangements). **Additional Information (continued)** **_2015 DMR Films:_**  In addition to the 13 IMAX DMR films released to the IMAXtheater network during the first three months of 2015, 18 additional IMAX DMR films have been announced so far to be released in the remaining nine months of 2015: * _Furious 7: The_ IMAX_Experience_ (Universal Studios, April 2015); * _The Water Diviner: The_ IMAX_Experience_ (Warner Bros. Pictures, April 2015); * _Dragon Ball Z: Revival of 'F': An_ IMAX_3D Experience_(Toei Animation, April 2015, Japanonly);  * _The Avengers: Age of Ultron: An_ IMAX_3D Experience_ (Walt Disney Studios, May 2015); * _Tomorrowland: The_ IMAX_Experience_ (Walt Disney Studios, May 2015); * _Jurassic World: An_ IMAX_3D Experience_ (Universal Studios, June 2015); * _Ant-Man: An_ IMAX_3D Experience_ (Walt Disney Studios, July 2015); * _Terminator Genisys: The_ IMAX_Experience_ (Paramount Pictures, July 2015); * _Mission: Impossible 5: The_ IMAX_Experience_ (Paramount Pictures, July 2015); * _The Man from U.N.C.L.E: The_ IMAX_Experience_ (Warner Bros. Pictures, August 2015); * _Crouching Tiger, Hidden Dragon: The Green Legend: The_ IMAX_Experience_ (China Film Group, August 2015); * _Everest: An_ IMAX_3D Experience_ (Universal Studios, September 2015); * _The Walk: The_ IMAX_Experience_ (Sony Pictures Entertainment, October 2015); * _Crimson Peak: The_ IMAX_Experience_ (Universal Studios, October 2015); * _Spectre : The_ IMAX_Experience_ (Sony Pictures Entertainment, November 2015); * _The Hunger Games: Mockingjay Part 2: An_ IMAX_3D Experience_ (Lionsgate, November 2015);  * _In the Heart of the Sea: The_ IMAX_Experience_ (Warner Bros. Pictures, December 2015); and * _Star Wars: The Force Awakens: An_ IMAX_3D Experience_ (Walt Disney Studios, December 2015). To date, the Company has announced the following 14 titles to be released to the IMAXtheater network in 2016: * _The Finest Hours: The_ IMAX_Experience_ (Walt Disney Studios, January 2016); * _Warcraft: An_ IMAX_3D Experience_ (Universal Studios, March 2016); * _Batman v Superman: Dawn of Justice: The_ IMAX_Experience_ (Warner Bros. Pictures, March 2016); * _The Jungle Book: The_ IMAX_Experience_ (Walt Disney Studios, April 2016); * _Captain America: Civil War: The_ IMAX_Experience_ (Walt Disney Studios, May 2016); * _Alice in Wonderland: Through the Looking Glass: The_ IMAX_Experience_ (Walt Disney Studios, May 2016); * _Finding Dory: The_ IMAX_Experience_ (Walt Disney Studios, June 2016); * _Tarzan: The_ IMAX_Experience_ (Warner Bros. Pictures, July 2016); * _Knights of the Roundtable: King Arthur: The_ IMAX_Experience_ (Warner Bros. Pictures, July 2016); * _Suicide Squad: The_ IMAX_Experience_ (Warner Bros. Pictures, August 2016); * _Geostorm: The_ IMAX_Experience_ (Warner Bros. Pictures, October 2016); * _Doctor Strange: An_ IMAX_3D Experience_ (Walt Disney Studios, November 2016); * _Fantastic Beasts and Where to Find Them: The IMAX Experience_ (Warner Bros. Pictures, November 2016); and * _Rogue One: An_ IMAX_3D Experience_ (Walt Disney Studios, December 2016). The Company remains in active negotiations with all of the major Hollywoodstudios for additional films to fill out its short and long-term film slate, and anticipates that a similar number of IMAX DMR films will be released to the IMAXnetwork in 2015 to the 40 films that were released to the IMAXnetwork in 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,** **2015** **2014** **Revenues**  Equipment and product sales  $ 14,436 $ 6,354 Services  31,716 28,872 Rentals  13,814 10,791 Finance income  2,245 2,180 62,211 48,197 **Costs and expenses applicable to revenues**  Equipment and product sales 7,540 3,719 Services 14,807 14,350 Rentals  3,883 3,720 26,230 21,789 **Gross margin**  35,981 26,408 Selling, general and administrative expenses 28,352 21,312 (including share-based compensation expense of $5.6 million for the three months ended March 31, 2015 (2014 - expense of $3.2 million))  Research and development  4,542 3,599 Amortization of intangibles  430 402 Receivable provisions, net of recoveries  5 287 **Income from operations**  2,652 808 Interest income  246 16 Interest expense  (304) (266) **Income from operations before income taxes**  2,594 558 Provision for income taxes  (675) (72) Loss from equity-accounted investments, net of tax  (434) (262) **Income from continuing operations** 1,485 224 Net income from discontinued operations, net of tax  \- 355 **Net income** $ 1,485 $ 579 Less: Net income attributable to non-controlling interests  (1,094) \- **Net income attributable to Common Shareholders** $ 391 $ 579 **Net income per share - basic & diluted:**  Net income per share from continuing operations  $ \- $ \- Net income per share from discontinued operations  \- 0.01 $ \- $ 0.01 **Weighted average number of shares outstanding (000's):** Basic  69,210 67,908 Fully Diluted  70,676 69,321 **Additional Disclosure:** Depreciation and amortization(1) $ 9,633 $ 7,555 (1)     Includes $0.2 millionof amortization of deferred financing costs charged to interest expense for the three months ended March 31, 2015(2014 - $0.1 million). **IMAX CORPORATION** **CONDENSED CONSOLIDATED BALANCE SHEETS** **In accordance with United States Generally Accepted Accounting Principles** _(in thousands of U.S. dollars)_ **As at** **As at** **March 31,** **December 31,** **2015** **2014** (unaudited) **Assets** Cash and cash equivalents $ 140,342 $ 106,503 Accounts receivable, net of allowance for doubtful accounts of $946 (December 31, 2014 — $947) 66,187 76,051 Financing receivables 105,228 105,700 Inventories 25,631 17,063 Prepaid expenses 7,026 4,946 Film assets 14,921 15,163 Property, plant and equipment 201,926 183,424 Other assets 24,448 23,047 Deferred income taxes 23,799 23,058 Other intangible assets 27,305 27,551 Goodwill 39,027 39,027 **Total assets** **$** **675,840** **$** **621,533** **Liabilities** Bank indebtedness $ 16,080 $ 4,710 Accounts payable 27,039 26,145 Accrued and other liabilities 59,412 75,425 Deferred revenue 95,694 88,566 **Total liabilities** **198,225** **194,846** **Commitments and contingencies** **Non-controlling interests** **83,223** **43,912** **Shareholders' equity** Capital stock, common shares — no par value. Authorized — unlimited number. Issued and outstanding — 69,586,041 (December 31, 2014 — 68,988,050) 361,451 344,862 Other equity 43,990 47,319 Accumulated deficit (6,090) (6,259) Accumulated other comprehensive loss (4,959) (3,147) **Total shareholders' equity** **394,392** **382,775** **Total liabilities and shareholders' equity** **$** **675,840** **$** **621,533** **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,** **2015** **2014** **Cash provided by (used in):** **Operating Activities** Net income $ 1,485 $ 579 Net income from discontinued operations \- (355) Adjustments to reconcile net income to cash from operations: Depreciation and amortization 9,633 7,555 Write-downs, net of recoveries 128 518 Change in deferred income taxes 191 (75) Stock and other non-cash compensation 5,666 3,281 Unrealized foreign currency exchange loss 1,351 646 Loss from equity-accounted investments 785 346 Gain on non-cash contribution to equity-accounted investees (352) \- Investment in film assets (3,013) (1,888) Changes in other non-cash operating assets and liabilities (9,805) 2,755 Net cash provided by operating activities from discontinued operations \- 572 Net cash provided by operating activities 6,069 13,934 **Investing Activities** Purchase of property, plant and equipment (22,582) (7,927) Investment in joint revenue sharing equipment (4,815) (5,506) Acquisition of other intangible assets (665) (287) Net cash used in investing activities (28,062) (13,720) **Financing Activities** Issuance of subsidiary shares to a non-controlling interest 40,000 \- Share issuance costs from the issuance of subsidiary shares to a non-controlling interest (2,000) \- Common shares issued - stock options exercised 11,407 742 Increase in bank indebtedness 11,371 \- Settlement of restricted share units (3,905) (789) Credit facility amendment fees paid (1,003) \- Net cash provided by (used in) financing activities 55,870 (47) Effects of exchange rate changes on cash (38) (21) **Increase in cash and cash equivalents during the period** 33,839 146 **Cash and cash equivalents, beginning of period** 106,503 29,546 **Cash and cash equivalents, end of period** $ 140,342 $ 29,692 **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: IMAXsystems; theater system maintenance; joint revenue sharing arrangements; film production and IMAX DMR; film distribution; film post-production; and other. The IMAXsystems segment includes the design, manufacture, sale or lease of IMAXtheater projection system equipment. The theater system maintenance segment includes the maintenance of IMAXtheater projection system equipment in the IMAXtheater network. The joint revenue sharing arrangements segment includes the provision of IMAXtheater projection system equipment to an exhibitor in exchange for a share of the box-office and concession revenues. The film production and IMAX DMR segment includes the production of films and the performance of film re-mastering services. The film distribution segment includes the distribution of 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 IMAXtheaters that the Company owns and operates, camera rentals and other miscellaneous items. **Three Months Ended March 31,** **2015** **2014** **Revenue**  **IMAX Theater Systems** IMAX Systems  Sales and sales-type leases  $ 8,616 $ 4,507 Ongoing rent, fees, and finance income  3,498 3,253 Other  3,425 1,512 15,539 9,272 Theater system maintenance  8,850 8,195 Joint revenue sharing arrangements  15,868 10,856 **Film** Production and IMAX DMR  17,676 15,185 Film distribution and post-production  4,278 4,689 21,954 19,874 **Total** $ 62,211 $ 48,197 **Gross margin**  **IMAX Theater Systems** IMAX systems(1) Sales and sales-type leases  $ 4,907 $ 1,659 Ongoing rent, fees, and finance income  3,278 3,114 Other  (40) (438) 8,145 4,335 Theater system maintenance  3,281 3,001 Joint revenue sharing arrangements(1) 10,617 7,283 **Film** Production and IMAX DMR(1) 13,225 11,074 Film distribution and post-production  713 715 13,938 11,789 **Total** $ 35,981 $ 26,408 \_\_\_\_\_\_\_\_\_ (1)  IMAXsystems include marketing and commission costs of $0.3 million for the three months ended March 31, 2015(2014 — $0.2 million). Joint revenue sharing arrangements segment margins include advertising, marketing and commission costs of $0.1 million for the three months ended March 31, 2015 (2014 — $0.2 million). Production and DMR segment margins include marketing costs of $1.3 million for the three months ended March 31, 2015(2014 — $1.1 million). Distribution segment margins include marketing cost recovery of $0.1 million for the three months ended March 31, 2015(2014 — expense of $0.2 million). **IMAX CORPORATION ****OTHER INFORMATION **_(in thousands of U.S. dollars)_ **_Non-GAAP Financial Measures:_** In this release, the Company presents adjusted net income, adjusted net income per diluted share, adjusted net income attributable to common shareholders and adjusted net income attributable to common shareholders per diluted share as supplemental measures of performance of the Company, which are not recognized under U.S. GAAP. The Company presents 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 net income. In addition, the Company presents adjusted net income attributable to common shareholders and adjusted net income attributable to common shareholders per diluted share because it believes that they are important supplemental measures of its comparable financial results and could potentially distort the analysis of trends in business performance and it wants to ensure that its investors fully understand the impact of net income attributable to non-controlling interests and its stock-based compensation (net of any related tax impact) in determining net income attributable to common shareholders. 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 net income, adjusted net income per diluted share, adjusted net income attributable to common shareholders and adjusted net income attributable to common shareholders per diluted share should be considered in addition to, and not as a substitute for, net income and net income attributable to common shareholders and other measures of financial performance reported in accordance with U.S. GAAP. The Credit Facility provides that the Company will be required at all times to satisfy a Minimum Liquidity Test (as defined in the Credit Agreement) of at least $50 million. The Company will also be required to maintain minimum EBITDA (as defined in the Credit Agreement) of $90.0 millionuntil December 30, 2015, which requirement increases to $100.0 millionon December 31, 2015. The Company must also maintain a Maximum Total Leverage Ratio (as defined in the Credit Agreement) of 2.5:1.0 until December 30, 2015, which requirement decreases to (i) 2.25:1.0 on December 31, 2015; (ii) 2.0:1.0 on December 31, 2016; and (iii) 1.75:1.0 on December 31, 2017. The ratio of total debt to EBITDA was 0.14:1 as at March 31, 2015, 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 $16.1 million. EBITDA is calculated as follows: **For the** **For the** **3 months ended** **12 months ended** **March 31, 2015** **March 31, 2015****(1)** **_(In thousands of U.S Dollars)_** Net income  $ 1,485 $ 43,075 Add (subtract): Loss from equity accounted investments  434 1,243 Provision for income taxes  675 15,069 Interest expense, net of interest income  58 327 Depreciation and amortization, including film asset amortization  9,467 35,273 Write-downs net of recoveries including asset impairments and receivable provisions  128 4,904 Stock and other non-cash compensation  5,666 17,852 EBITDA attributable to non-controlling interests(2) (1,933) (5,870) $ 15,980 $ 111,873 (1)  Ratio of funded debt calculated using twelve months ended EBITDA. (2)  The EBITDA calculation specified for purposes of the minimum EBITDA covenant excludes the reduction in EBITDA from the Company's non-controlling interests. **IMAX CORPORATION ****OTHER INFORMATION **_(in thousands of U.S. dollars)_ **_Adjusted Net Income and Adjusted Diluted Per Share Calculations – Quarter Ended March 31, 2015vs. 2014: _**The Company reported net income of $1.5 million or $0.02 per basic and diluted share for the first quarter of 2015, as compared to $0.6 million or $0.01 per basic and diluted share for the first quarter of 2014. Adjusted net income, which consists of net income excluding the impact of stock-based compensation and the related tax impact, was $6.1 millionor $0.09per diluted share for the first quarter of 2015 as compared to adjusted net income of $3.3 millionor $0.05per diluted share for the first quarter of 2014. Adjusted net income attributable to common shareholders, which consists of net income attributable to common shareholders excluding the impact of stock-based compensation and the related tax impact, was $5.0 millionor $0.07per diluted share for the first quarter of 2015 as compared to adjusted net income attributable to common shareholders of $3.3 millionor $0.05per diluted share for the first quarter of 2014. A reconciliation of net income and net income attributable to common shareholders, the most directly comparable U.S. GAAP measures, to adjusted net income, adjusted net income per diluted share, adjusted net income attributable to common shareholders and adjusted net income attributable to common shareholders per diluted share is presented in the table below: **Three Months Ended** **Three Months Ended** **March 31, 2015** **March 31, 2014** **Net Income** **Diluted EPS** **Net Income** **Diluted EPS** Reported net income $ 1,485 $ 0.02 (1) $ 579 $ 0.01 Adjustments: Stock-based compensation 5,575 0.08 3,188 0.05 Tax impact on items listed above (962) (0.01) (515) (0.01) Adjusted net income 6,098 0.09 (1) 3,252 0.05 Net income attributable to non-controlling interests (1,094) (0.02) \- \- Adjusted net income attributable to common shareholders $ 5,004 $ 0.07 (1) $ 3,252 $ 0.05 Weighted average diluted shares outstanding 70,676 69,321 (1)     Includes impact of $0.2 millionof accretion charges associated with redeemable common stock. **_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, 2015** **_(In thousands of U.S. Dollars)_** Net cash provided by operating activities $ 6,069 Net cash used in investing activities (28,062) Free cash flow $ (21,993) Logo - [http://photos.prnewswire.com/prnh/20111107/MM01969LOGO](http://photos.prnewswire.com/prnh/20111107/MM01969LOGO) To view the original version on PR Newswire, visit:[http://www.prnewswire.com/news-releases/imax-corporation-reports-first-quarter-2015-financial-results-300074806.html](http://www.prnewswire.com/news-releases/imax-corporation-reports-first-quarter-2015-financial-results-300074806.html) SOURCE IMAX Corporation