--- title: IMAX CORPORATION REPORTS Q4 AND FULL-YEAR 2021 RESULTS publisher: "IMAX" description: "- Strongest Quarterly Revenue, Operating Income, and Earnings Per Share since 2019 Underscore Company's Position as a Premier Global Technology Platform for Entertainment and Events - Full-Year 2021 Results Demonstrate Strong Momentum, with 146% Growth in Global Box Office, as IMAX Captures its" canonical: "https://www.imax.com/pr/imax-corporation-reports-q4-and-full-year-2021-results" date: 2022-02-23 last_updated: 2022-02-23 --- IMAX CORPORATION REPORTS Q4 AND FULL-YEAR 2021 RESULTS ====================================================== Wed, Feb 23, 2022 **\- Strongest Quarterly Revenue, Operating Income, and Earnings Per Share since 2019 Underscore Company's Position as a Premier Global Technology Platform for Entertainment and Events** **\- Full-Year 2021 Results Demonstrate Strong Momentum, with 146% Growth in Global Box Office, as IMAX Captures its Highest Share Ever of Yearly Global Box Office** **\- IMAX Continues to Evolve Core Business and Expand Ability to 'Eventize' Content with Live and Interactive Events, Highlighted by Partnerships with Amazon Music, Apple, Disney, and Warner Bros. and the Company's First-Ever Live Concert featuring Kanye West and Drake** **\- Landmark IMAX Enhanced™ on Disney+ Agreement Dramatically Expands Company's In-Home Entertainment Footprint to more than 80 Million subscribers** **\- Growth in IMAX DNA, Local Language, and Blockbusters Drive IMAX Global Market Share to Record 3.0% in 2021 -- Up from 2.6% in 2019 -- Peaking at 3.5% Globally and 5.6% Domestically in Q4** NEW YORK, Feb. 23, 2022/PRNewswire/ -- IMAX Corporation (NYSE: IMAX) today reported financial results for the fourth quarter and full-year 2021 demonstrating its superiority at the global box office and the increasing diversification of its business — across platforms and around the world.   [![An infographic highlighting IMAX's recent quarter.](https://mma.prnewswire.com/media/1753069/IMAX_Q4_FY21_One_Sheet_Infographic.jpg "An infographic highlighting IMAX's recent quarter.")](https://mma.prnewswire.com/media/1753069/IMAX_Q4_FY21_One_Sheet_Infographic.html) For the full-year 2021, IMAX drove solid improvement in results over the prior year, with net loss attributable to common shareholders improving from ($143.8) millionto ($22.3) millionand Adjusted EBITDA(1)increasing to $68.6 millionfrom ($13.1) millionin the prior year. The Company's fourth quarter was highlighted by its strongest quarterly results since 2019 across key financial metrics, including: revenue growth of 94% to $108.6 million; improvement in net income attributable to common shareholders to $10.1 million, or $0.17per share, versus a loss of ($21.2) million, or ($0.36) per share, in the prior-year period; improvement in adjusted net income attributable to common shareholders(1)to $18.4 million, or $0.31per share, versus an adjusted loss(1)of ($12.7) million, or ($0.21) per share, in the prior-year period; improvement in Adjusted EBITDA(1)to $44.0 millionversus $10.0 millionin the prior-year period. Notably, the Company's quarterly results met or exceeded pre-pandemic levels across key metrics. IMAX delivered Operating Income, Global Box Office, and Gross Margin in the fourth quarter of 2021 that exceeded the fourth quarter of 2019; as well as quarterly Adjusted EPS(1)and Adjusted EBITDA(1)substantially in-line with the fourth quarter of 2019. (1)    Non-GAAP Financial Measure. See the discussion at the end of this earnings release for a description of these non-GAAP financial measures and reconciliations to the most comparable GAAP amounts. "In the fourth quarter alone, IMAX turned in a dominating performance at the global box office, launched a major streaming partnership with Disney+, and created a series of exclusive events connecting theatrical and streaming in a way that few brands can," said Richard L. Gelfond, CEO of IMAX Corporation. "World-class creators of all types are choosing our technology and platform to connect with fans around the globe — opening a world of opportunity to reimagine and grow _The__IMAX Experience_®." "Our results for the fourth quarter underscore that IMAX is a premier, global technology platform for entertainment and events. The fact that IMAX is driving results at or above what we achieved in 2019 — which was by many measures, our best year ever — reaffirms that we are not an exhibitor and have moved beyond recovery mode. With strong a balance sheet that affords us security and capital allocation flexibility, we are well-positioned to capitalize on our momentum and continue to evolve and grow our business." "Our full-year results are highlighted by a dramatic, positive swing in profitability of more than $80 millionin Adjusted EBITDA(1). Furthermore, IMAX captured a greater share of the global box office than ever in 2021. These achievements demonstrate our ability to quickly capitalize on improving market trends, and underscore how well-positioned IMAX remains for the highly- anticipated 2022 film slate, which boasts more expected IMAX DNA than ever." "Global audiences are choosing IMAX, and we're meeting that demand with our most dynamic, diverse content portfolio ever. We're delivering more 'IMAX DNA' in the biggest Hollywoodblockbusters; a rapidly expanding slate of local language films from studios and filmmakers across China, Japan, India, Russia, and France; exclusive events and experiences with creators and artists ranging from Kanye Westto The Beatles; and a growing library of IMAX Enhanced™ content to streaming platforms and consumer devices." **Fourth Quarter and December Year-to-Date Financial Highlights** **Three Months Ended** **Year Ended** **December 31,** **December 31,** _In thousands except per share data_ **2021** **2020** **YoY %** **Change** **2021** **2020** **YoY %** **Change** Total Revenue $ 108.6 $ 56.0 94 % $ 254.9 $ 137.0 86 % Gross Margin $ 64.0 $ 20.3 215 % $ 134.4 $ 21.5 524 % Gross Margin (%) 59 % 36 % 53 % 16 % Net Income (Loss) attributable to common shareholders $ 10.1 $ (21.2) N/A $ (22.3) $ (143.8) N/A Diluted Net Income (Loss) per share attributable to common shareholders $ 0.17 $ (0.36) N/A $ (0.38) $ (2.43) N/A Adjusted Net Income (Loss) attributable to common shareholders(1) $ 18.4 $ (12.7) N/A $ (8.4) $ (112.1) N/A Adjusted Net Income (Loss) per share attributable to common shareholders(1) $ 0.31 $ (0.21) N/A $ (0.14) $ (1.89) N/A Adjusted EBITDA per Credit Facility attributable to common shareholders(1) $ 44.0 $ 10.0 340 % $ 68.6 $ (13.1) N/A Adjusted EBITDA Margin attributable to common shareholders (%) (1) 45.0 % 20.8 % 116 % 31.0 % (10.8) % N/A \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ (1)    Non-GAAP Financial Measure. See the discussion at the end of this earnings release for a description of these non-GAAP financial measures and reconciliations to the most comparable GAAP amounts. **Fourth Quarter and December Year-to-Date Segment Results**(1) **IMAX Technology Network** **IMAX Technology Sales and Maintenance** **Revenue** **Gross Margin** **Gross Margin %** **Revenue** **Gross Margin** **Gross Margin %** **4Q21** $ 51.3 $ 36.8 72 % $ 53.4 $ 26.2 49 % **4Q20** 17.7 7.3 41 % 36.4 13.6 37 % **% change** 190 % 404 % 47 % 93 % **YTD 4Q21** $ 116.8 $ 66.5 57 % $ 126.8 $ 64.3 51 % **YTD 4Q20** 46.1 4.2 9 % 79.8 28.0 35 % **% change** 153 % 1,483 % 59 % 130 % \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ (1)    Please refer to the Company's Form 10-K for the year ended December 31, 2021for additional segment information. **IMAX Technology Network** * IMAX Technology Network revenues increased to $51.3 millionin the fourth quarter of 2021, compared to $17.7 millionin the prior-year period. The strong performance of Hollywoodreleases drove the increase in gross box office and revenue. * Gross margin for the IMAX Technology Network of $36.8 millionin the fourth quarter of 2021, compared to $7.3 millionin the prior-year period as improved box office performance drove higher revenue and margin expansion. **IMAX Technology Sales and Maintenance** * IMAX Technology Sales and Maintenance revenues increased to $53.4 millionin the fourth quarter of 2021, compared with $36.4 millionin the prior year period due to the continued global reopening of the IMAX® theater network and the resumption of normal operations, which led to a higher level of IMAX Theater System installations. Also, due to the recovery of the theatrical exhibition industry and the strength of the fourth quarter IMAX Network GBO, which exceeded pre-COVID fourth quarter of 2019 levels, the Company ended the temporary relief program for its exhibitor customers and, as a result, recognized maintenance revenue of $6.3 millionthat had been deferred due to uncertainties associated with the COVID-19 global pandemic, including $2.5 millionthat had been deferred from 2020 with the remainder from the first nine months of 2021. * Gross margin for IMAX Technology Sales and Maintenance increased to $26.2 millioncompared to $13.6 millionin the prior-year period. The increase in gross margin was the result of higher maintenance and IMAX System installation revenue. **Cash Balances and Outstanding Debt** Total cash and cash equivalents as of December 31, 2021were $189.7 million. Total debt, excluding deferred financing costs was $233.6 millionas of December 31, 2021. **Share Count and Capital Return** Weighted average basic and diluted shares outstanding in the fourth quarter of 2021 were 58.9 million and 59.8 million, respectively, compared to 58.9 million of basic and diluted shares outstanding in the fourth quarter of 2020. During the fourth quarter of 2021, the Company repurchased 524,519 of its shares at an average price of $17.70for a total of $9.3 million. IMAX China repurchased 3.1 million shares at an average price of $1.61per share for a total of $5.0 million. A total of $75.5 millionremains available under the Company's outstanding share repurchase authorization, which was extended an additional year through to June 2022. **Supplemental Materials** For more information about the Company's results, please refer to the IMAX Investor Relations website located at [investors.imax.com](https://c212.net/c/link/?t=0&l=en&o=3453537-1&h=3409963561&u=https%3A%2F%2Fwww.imax.com%2Fcontent%2Finvestor-relations&a=investors.imax.com). **Investor Relations Website and Social Media** On a weekly basis, the Company posts quarter-to-date box office results on the IMAX Investor Relations website located at [investors.imax.com](https://c212.net/c/link/?t=0&l=en&o=3453537-1&h=3409963561&u=https%3A%2F%2Fwww.imax.com%2Fcontent%2Finvestor-relations&a=investors.imax.com). The Company expects to provide such updates on Friday of each week, although the Company may change this timing without notice. Results will be displayed with a one-week lag. The Company may post additional information on the Company's corporate and Investor Relations website which may be material to investors. Accordingly, investors, media and others interested in the Company should monitor the Company's website in addition to the Company's press releases, SECfilings and public conference calls and webcasts, for additional information about the Company **Conference Call** The Company will host a conference call today at 5:00 PM ETto discuss its fourth quarter 2021 financial results. This call is being webcast by PGI and can be accessed at [investors.imax.com](https://c212.net/c/link/?t=0&l=en&o=3453537-1&h=3409963561&u=https%3A%2F%2Fwww.imax.com%2Fcontent%2Finvestor-relations&a=investors.imax.com). To access the call via telephone, interested parties in the US and Canadashould dial (800) 220-8474 approximately 5 to 10 minutes before the call begins. Other international callers should dial (647) 484-0475. The conference ID for the call is 6273867. A replay of the call will be available via webcast at [investors.imax.com](https://c212.net/c/link/?t=0&l=en&o=3453537-1&h=3409963561&u=https%3A%2F%2Fwww.imax.com%2Fcontent%2Finvestor-relations&a=investors.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 6273867. **About IMAX Corporation**  IMAX is a premier global technology platform for entertainment and events. Through its proprietary software, theater architecture, patented intellectual property, and specialized equipment, IMAX offers a unique end-to-end solution to create superior, immersive content experiences for which the IMAX® brand is globally renown. Top filmmakers, movie studios, artists, and creators utilize the cutting-edge visual and sound technology of IMAX to connect with audiences in innovative ways. As a result, IMAX is among the most important and successful global distribution platforms for domestic and international tentpole films and, increasingly, exclusive experiences ranging from live performances to interactive events with leading artists and creators. IMAX is headquartered in New York, Toronto, and Los Angeles, with additional offices in London, Dublin, Tokyo, and Shanghai. As of December 31, 2021, there were 1,683 IMAX theater systems (1,599 commercial multiplexes, 12 commercial destinations, 72 institutional) operating in 87 countries and territories. Shares of IMAX China Holding, Inc., a subsidiary of IMAX Corporation, trade on the Hong Kong Stock Exchangeunder the stock code "HK.1970." IMAX®, IMAX® Dome, IMAX® 3D, IMAX® 3D Dome, Experience It In IMAX®, The IMAX Experience®, An IMAX Experience®, An IMAX 3D Experience®, IMAX DMR®, DMR®, IMAX Enhanced™, IMAX nXos® and Films to the Fullest®, are trademarks and trade names of the Company or its subsidiaries that are registered or otherwise protected under laws of various jurisdictions. More information about the Company can be found at [www.imax.com](http://www.imax.com). You may also connect with IMAX on Instagram ([https://www.instagram.com/imax](https://c212.net/c/link/?t=0&l=en&o=3453537-1&h=2821601805&u=https%3A%2F%2Fwww.instagram.com%2Fimax&a=https%3A%2F%2Fwww.instagram.com%2Fimax)), 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](https://c212.net/c/link/?t=0&l=en&o=3453537-1&h=2353449628&u=http%3A%2F%2Fwww.youtube.com%2Fimaxmovies&a=www.youtube.com%2Fimaxmovies)). For additional information please contact: **_Investors: _**IMAX Corporation, New York Brett Harriss 212-821-0187 [bharriss@IMAX.com](mailto:bharriss@IMAX.com) **_Media: _****IMAX Corporation, New York ****Mark Jafar ****212-821-0102 **[mjafar@imax.com](mailto:mjafar@imax.com)  **Forward****\-Looking Statements** _This earnings 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. These forward-looking statements include, but are not limited to, references to business and technology strategies and measures to implement strategies, competitive strengths, goals, expansion and growth of business, operations and technology, future capital expenditures (including the amount and nature thereof), industry prospects and consumer behavior,  plans and references to the future success of IMAX Corporationtogether with its consolidated 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, risks related to the adverse impact of the COVID-19 pandemic;_ _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 performance of IMAX DMR®films; the signing of IMAX Theater System agreements; conditions, changes and developments in the commercial exhibition industry; risks related to currency fluctuations; the potential impact of increased competition in the markets within which the Company operates, including competitive actions by other companies; the failure to respond to change and advancements in digital technology; risks relating to consolidation among commercial exhibitors and studios; risks related to brand extensions and 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 cyber-security and data privacy; risks related to the Company's inability to protect the Company's intellectual property;_ _risks related to climate change; risks related to weather conditions and natural disasters that may disrupt or harm the Company's business; risks related to the Company's indebtedness and compliance with its debt agreements; general economic, market or business conditions; the failure to convert IMAX Theater System backlog into revenue; changes in laws or regulations; any statements of belief and any statements of assumptions underlying any of the foregoing; other factors and risks outlined in our periodic filings with the SEC; and other factors, many of which are beyond the control of the Company._ _Consequently, all of the forward-looking statements made in this earnings release are qualified by these cautionary statements, and actual results or anticipated developments by the Company may not be realized, and even if substantially realized, may not have the expected consequences to, or effects on, the Company_. _These factors, other risks and uncertainties and financial details are discussed in IMAX's most recent Annual Report on Form 10-K._ _The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements, whether as a result of new information, future events or otherwise._ **Primary****Reporting Groups** The Company has the following reportable segments: (i) IMAX DMR; (ii) Joint Revenue Sharing Arrangements; (iii) IMAX Systems, (iv) IMAX Maintenance; (v) Other Theater Business; (vi) Film Distribution; and (vii) Film Post-Production; and (viii) New Business Initiatives. The Company organizes its reportable segments into the following four categories, identified by the nature of the product sold or service provided: (i)      IMAX Technology Network, which earns revenue based on contingent box office receipts and includes the IMAX DMR segment and contingent rent from the Joint Revenue Sharing Arrangements ("JRSA") segment; (ii)    IMAX Technology Sales and Maintenance, which includes results from the IMAX Systems, IMAX Maintenance and Other Theater Business segments, as well as fixed revenues from the JRSA segment; (iii)  Film Distribution and Post-Production, which includes activities related to the distribution of large-format documentary films, primarily to institutional theaters, and the distribution of exclusive experiences ranging from live performances to interactive events with leading artists and creators (through the Film Distribution segment) and the provision of film post-production and quality control services (through the Film Post-Production segment); and (iv)   New Business Initiatives, which is a segment that includes activities related to the expansion of the IMAX brand across new lines of business and new initiatives. **IMAX Network and Backlog** **Year** **Ended December 31,** **Theater System Signings:** **2021** **2020** New IMAX Theater Systems Sales and sales-type lease arrangements 20 28 Hybrid joint revenue sharing lease arrangements — 18 Traditional joint revenue sharing arrangements 9 2 Total new IMAX Theater Systems **29** **48** Upgrades of IMAX Theater Systems 7 17 **Total IMAX Theater System signings** **36** **65** **Year** **Ended December 31,** **Theater System Installations:** **2021** **2020** New IMAX Theater Systems(1) Sales and sales-type lease arrangements 35 27 Hybrid joint revenue sharing lease arrangements 9 5 Traditional joint revenue sharing arrangements 18 23 Total new IMAX Theater Systems **62** **55** Upgrades of IMAX Theater Systems 13 16 **Total IMAX Theater System installations** **75** **71** **Year** **Ended December 31,** **Theater Sales Backlog:** **2021** **2020** Sales and sales-type lease arrangements 173 185 Hybrid joint revenue sharing lease arrangements 132 147 Traditional joint revenue sharing lease arrangements 184 (2) 195 (2) **Total Theaterbacklog** **489** (3) **527** (4) **Year** **Ended December 31,** **Theater Network:** **2021** **2020** Commercial Multiplex Theaters Sales and sales-type lease arrangements 690 672 Hybrid joint revenue sharing lease arrangements 146 140 Traditional joint revenue sharing lease arrangements 763 750 **Total Commercial Multiplex Theaters** **1,599** **1,562** Commercial Destination Theaters 12 12 Institutional Theaters 72 76 **Total Theaternetwork(5)** **1,683** **1,650** \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ (1)    Includes nine IMAX Xenon Theater Systems that were relocated from their original location (2020 ― three). When a theater system under a sales or sales-type lease arrangement is relocated, the amount of revenue earned by the Company may vary from transaction-to-transaction and is usually less than the amount earned for a new sale. In certain situations when a theater system is relocated, the original location is upgraded to an IMAX Laser Theater System. (2)    Includes 44 IMAX Theater Systems where the customer has the option to convert from a joint revenue sharing arrangement to a sales arrangement (2020 — 46). (3)    Includes 158 new IMAX with Laser projection system configurations and 92 upgrades of existing locations to IMAX Laser Theater Systems configurations. (4)    Includes 157 new IMAX with Laser projection system configurations and 97 upgrades of existing locations to IMAX Laser Theater Systems configurations. (5)    Period-to-period changes are reported net of the effect of permanently closed theaters. **IMAX CORPORATION** **CONSOLIDATED STATEMENTS OF OPERATIONS** _(In thousands of U.S.dollars, except per share amounts)_ **Three Months Ended** **December 31,** **Year Ended** **_(Unaudited)_** **December 31,** **2021** **2020** **2021** **2020** **Revenues** Technology sales $ 31,645 $ 25,626 $ 66,153 $ 49,728 Image enhancement and maintenance services 54,234 20,209 131,148 59,318 Technology rentals 20,082 7,534 46,790 17,841 Finance income 2,611 2,621 10,792 10,116 **108,572** **55,990** **254,883** **137,003** **Costs and expenses applicable to revenues** Technology sales 19,260 17,533 37,039 33,170 Image enhancement and maintenance services 19,480 11,549 58,062 53,598 Technology rentals 5,797 6,595 25,376 28,695 **44,537** **35,677** **120,477** **115,463** **Gross margin** **64,035** **20,313** **134,406** **21,540** Selling, general and administrative expenses 34,929 25,238 117,322 108,485 Research and development 1,248 1,056 6,944 5,618 Amortization of intangibles 1,291 1,380 4,877 5,394 Credit loss expense (reversal), net 933 3,026 (3,951) 18,608 Asset impairments — — — 1,151 Legal judgment and arbitration awards — 4,105 (1,770) 4,105 **Income (loss) from operations** **25,634** **(14,492)** **10,984** **(121,821)** Realized and unrealized investment gains (losses) 29 (1,142) 5,340 (2,081) Retirement benefits non-service expense (116) (168) (463) (600) Interest income 538 546 2,218 2,388 Interest expense (1,558) (2,390) (7,092) (7,010) **Income (loss) before taxes** **24,527** **(17,646)** **10,987** **(129,124)** Income tax expense (11,148) (1,898) (20,564) (26,504) Equity in losses of investees, net of tax — — — (1,858) **Net income (loss)** **13,379** **(19,544)** **(9,577)** **(157,486)** Net (income) loss attributable to non-controlling interests (3,279) (1,701) (12,752) 13,711 **Net income (loss) attributable to common shareholders** **$** **10,100** **$** **(21,245)** **$** **(22,329)** **$** **(143,775)** **Net income (loss) per share attributable to common shareholders -** **basic and diluted:** Net income (loss) per share — basic and diluted **$** **0.17** **$** **(0.36)** **$** **(0.38)** **$** **(2.43)** Weighted average number of shares outstanding (000's): Basic 58,886 58,872 59,126 59,237 Diluted 59,805 58,872 59,126 59,237 Additional Disclosure: Depreciation and amortization $ 15,512 $ 12,005 $ 56,082 $ 52,704 Amortization of deferred financing costs $ 764 $ 307 $ 2,513 $ 902 **IMAX CORPORATION** **CONSOLIDATED BALANCE SHEETS** _(In thousands of dollars, except share amounts)_ **As of December 31,** **2021** **2020** **Assets** Cash and cash equivalents $ 189,711 $ 317,379 Accounts receivable, net of allowance for credit losses 110,050 56,300 Financing receivables, net of allowance for credit losses 141,049 131,810 Variable consideration receivable, net of allowance for credit losses 44,218 40,526 Inventories 26,924 39,580 Prepaid expenses 11,802 10,420 Film assets, net of accumulated amortization 4,241 5,777 Property, plant and equipment, net of accumulated depreciation 260,353 277,397 Investment in equity securities 1,087 13,633 Other assets 17,799 21,673 Deferred income tax assets, net of valuation allowance 13,906 17,983 Other intangible assets, net of accumulated amortization 23,080 26,245 Goodwill 39,027 39,027 **Total assets** **$** **883,247** **$** **997,750** **Liabilities** Accounts payable $ 15,943 $ 20,837 Accrued and other liabilities 111,896 99,354 Revolving credit facility borrowings, net of unamortized debt issuance costs 2,472 305,676 Convertible notes, net of unamortized discounts and debt issuance costs 223,641 — Deferred revenue 81,281 87,982 Deferred income tax liabilities 17,642 19,134 **Total liabilities** **452,875** **532,983** **Commitments and contingencies** **Non-controlling interests** **758** **759** **Shareholders' equity** Capital stock common shares — no par value. Authorized — unlimited number. 58,653,642 issued and outstanding (December 31, 2020— 58,921,731 issued and 58,921,008 outstanding) 409,979 407,031 Less: Treasurystock, nil shares at cost (December 31, 2020— 723) — (11) Other equity 174,620 188,845 Statutory surplus reserve 3,932 — Accumulated deficit (234,975) (202,849) Accumulated other comprehensive income 2,527 988 **Total shareholders' equity attributable to common shareholders** **356,083** **394,004** Non-controlling interests 73,531 70,004 **Total shareholders' equity** **429,614** **464,008** **Total liabilities and shareholders' equity** **$** **883,247** **$** **997,750** **IMAX CORPORATION**  **CONSOLIDATED STATEMENTS OF CASH FLOWS** _(In thousands of dollars)_ **Years Ended December 31,** **2021** **2020** **Operating Activities** Net (loss) income $ (9,577) $ (157,486) Adjustments to reconcile net (loss) income to cash provided by (used in) operating activities: Depreciation and amortization 56,082 52,704 Amortization of deferred financing costs 2,513 902 Credit loss (reversal) expense, net (3,951) 18,608 Write-downs 1,764 17,729 Deferred income tax expense 2,996 23,618 Share-based and other non-cash compensation 26,079 22,038 Unrealized foreign currency exchange loss (gain) 256 (1,355) Realized and unrealized investment (gains) losses (5,340) 2,081 Equity in losses of investees — 1,858 Changes in assets and liabilities: Accounts receivable (52,453) 33,597 Inventories 11,451 1,637 Film assets (14,810) (7,665) Deferred revenue (6,591) (6,637) Changes in other operating assets and liabilities (2,354) (24,640) **Net cash provided by (used in) operating activities** **6,065** **(23,011)** **Investing Activities** Purchase of property, plant and equipment (3,590) (697) Investment in equipment for joint revenue sharing arrangements (10,094) (6,654) Acquisition of other intangible assets (4,092) (1,904) Proceeds from sale of equity securities 17,769 — **Net cash used in investing activities** **(7)** **(9,255)** **Financing Activities** Proceeds from issuance of convertible notes, net 223,675 — Debt issuance costs related to convertible notes (1,161) — Purchase of capped calls related to convertible notes (19,067) — Revolving credit facility borrowings 3,600 287,610 Repayment of revolving credit facility borrowings (307,609) — Credit facility amendment fees paid (527) (1,073) Repurchase of common shares, IMAX Corporation (13,905) (36,624) Repurchase of common shares, IMAX China (10,060) (1,534) Treasurystock purchased for future settlement of restricted share units — (3,086) Taxes withheld and paid on employee stock awards vested (3,660) (512) Common shares issued - stock options exercised 883 — Dividends paid to IMAX China non-controlling interests (4,889) (4,214) **Net cash (used in) provided by financing activities** **(132,720)** **240,567** Effects of exchange rate changes on cash (1,006) (406) **(Decrease) increase in cash and cash equivalents during year** **(127,668)** **207,895** **Cash and cash equivalents, beginning of year** **317,379** **109,484** **Cash and cash equivalents, end of year** $ **189,711** $ **317,379** **Three Months Ended** **Year Ended** **December 31,** **December 31,** **2021** **2020** **2021** **2020** **Revenue** IMAX Technology Network IMAX DMR $ 31,221 $ 10,204 $ 70,659 $ 28,265 Joint revenue sharing arrangements, contingent rent 20,076 7,534 46,184 17,841 51,297 17,738 116,843 46,106 IMAX Technology Sales and Maintenance IMAX Systems 30,543 26,381 65,660 54,055 Joint revenue sharing arrangements, fixed fees 1,630 860 5,406 2,056 IMAX Maintenance 20,143 8,774 53,339 21,999 Other Theater Business(1) 1,080 405 2,363 1,666 53,396 36,420 126,768 79,776 Film Distribution and Post-Production 1,723 1,178 5,724 8,719 New Business Initiatives 1,150 738 3,704 2,226 Sub-total for reportable segments 107,566 56,074 253,039 136,827 Other 1,006 (84) 1,844 176 Total $ 108,572 $ 55,990 $ 254,883 $ 137,003 **Gross Margin (Margin Loss)** IMAX Technology Network IMAX DMR $ 22,377 $ 6,239 $ 44,782 $ 13,731 Joint revenue sharing arrangements, contingent rent 14,462 1,110 21,761 (9,500) 36,839 7,349 66,543 4,231 IMAX Technology Sales and Maintenance IMAX Systems 13,335 10,319 34,981 24,816 Joint revenue sharing arrangements, fixed fees 560 419 1,343 529 IMAX Maintenance 12,212 3,423 27,572 3,068 Other Theater Business 129 (515) 398 (438) 26,236 13,646 64,294 27,975 Film Distribution and Post-Production(2) (149) (806) 848 (10,198) New Business Initiatives 1,118 633 3,399 1,878 Sub-total for reportable segments 64,044 20,822 135,084 23,886 Other (9) (509) (678) (2,346) Total $ 64,035 $ 20,313 $ 134,406 $ 21,540 \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ (1)    The revenue from this segment principally includes after-market sales of IMAX projection system parts and 3D glasses.   (2)    During the three months and year ended December 31, 2020, Film Distribution segment results include impairment losses of $0.1 millionand $10.0 million, respectively, to write-down the carrying value of certain documentary and alternative content film assets due to a decrease in projected box office totals and related revenues based on management's regular quarterly recoverability assessments. No such charges incurred in the three months and year ended December 31, 2021. **IMAX CORPORATION ****NON-GAAP FINANCIAL MEASURES **_(in thousands of U.S.dollars)_ In this release, the Company presents adjusted net income (loss) attributable to common shareholders and adjusted net income (loss) attributable to common shareholders per basic and diluted share, EBITDA, Adjusted EBITDA per Credit Facility, Adjusted EBITDA margin, and free cash flow as supplemental measures of the Company's performance, which are not recognized under U.S.GAAP. Adjusted net income (loss) attributable to common shareholders and adjusted net income (loss) attributable to common shareholders per basic and diluted share exclude, where applicable: (i) share-based compensation; (ii) COVID-19 government relief benefits, net, (iii) legal judgment and arbitration awards; (iv) realized and unrealized investment gains or losses, as well as the related tax impact of these adjustments, and (v) income taxes resulting from management's decision to no longer indefinitely reinvest the historical earnings of certain foreign subsidiaries. The Company believes that these non-GAAP financial measures are important supplemental measures that allow management and users of the Company's financial statements to view operating trends and analyze controllable operating performance on a comparable basis between periods without the after-tax impact of share-based compensation and certain unusual items included in net income (loss) attributable to common shareholders. Although share-based compensation is an important aspect of the Company's employee and executive compensation packages, it is a non-cash expense and is excluded from certain internal business performance measures. A reconciliation from net income (loss) attributable to common shareholders and the associated per share amounts to adjusted net income (loss) attributable to common shareholders and adjusted net income (loss) attributable to common shareholders per diluted share is presented in the table below. Net income (loss) attributable to common shareholders and the associated per share amounts are the most directly comparable GAAP measures because they reflect the earnings relevant to the Company's shareholders, rather than the earnings attributable to non-controlling interests. In addition to the non-GAAP financial measures discussed above, management also uses "EBITDA," as such term is defined in the Company's Credit Agreement, and which is referred to herein as "Adjusted EBITDA per Credit Facility." As allowed by the Credit Agreement, Adjusted EBITDA per Credit Facility includes adjustments in addition to the exclusion of interest, taxes, depreciation and amortization. Adjusted EBITDA per Credit Facility measure is presented to allow a more comprehensive analysis of the Company's operating performance and to provide additional information with respect to the Company's compliance against its Credit Agreement requirements when applicable. In addition, the Company believes that Adjusted EBITDA per Credit Facility presents relevant and useful information widely used by analysts, investors and other interested parties in the Company's industry to evaluate, assess and benchmark the Company's results. EBITDA is defined as net income or loss excluding (i) income tax expense or benefit; (ii) interest expense, net of interest income; (iii) depreciation and amortization, including film asset amortization; and (iv) amortization of deferred financing costs. Adjusted EBITDA per Credit Facility is defined as EBITDA excluding: (i) share-based and other non-cash compensation; (ii) realized and unrealized investment gains or losses; (iii) write-downs, net of recoveries, including asset impairments and credit loss expense; (iv) legal judgment and arbitration awards; and (v) the gain or loss from equity accounted investments. A reconciliation of net income (loss) attributable to common shareholders, which is the most directly comparable GAAP measure, to EBITDA and Adjusted EBITDA per Credit Facility is presented in the table below. Net income (loss) attributable to common shareholders is the most directly comparable GAAP measure because it reflects the earnings relevant to the Company's shareholders, rather than the earnings attributable to non-controlling interests. Free cash flow is defined as net cash provided by or used in operating activities minus cash used in investing activities (from the Consolidated Statements of Cash Flows). 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. Free cash flow does not represent residual cash flow available for discretionary expenditures. A reconciliation of cash provided by operating activities to free cash flow is presented below. These non-GAAP measures may not be comparable to similarly titled amounts reported by other companies. Additionally, the non-GAAP financial measures used by the Company should not be considered as a substitute for, or superior to, the comparable GAAP amounts. **_Adjusted EBITDA per Credit Facility_** **For the Three Months Ended December 31, 2021 (1)** **For the Three Months Ended December 31, 2020 (1)** **Attributable to** **Non-controlling** **Less:** **Attributable to** **Non-controlling** **Less:** **Interests and** **Attributable to** **Attributable to** **Interests and** **Attributable to** **Attributable to** **Common** **Non-controlling** **Common** **Common** **Non-controlling** **Common** **Shareholders** **Interests** **Shareholders** **Shareholders** **Interests** **Shareholders** **_(In thousands of U.S.Dollars)_** Reported net income (loss) $ 13,379 $ 3,279 $ 10,100 $ (19,544) $ 1,701 $ (21,245) Add (subtract): Income tax expense 11,148 1,557 9,591 1,898 717 1,181 Interest expense, net of interest income 257 (91) 348 1,537 (90) 1,627 Depreciation and amortization, including film asset amortization 15,512 1,345 14,167 12,005 1,099 10,906 Amortization of deferred financing costs(2) 764 — 764 307 — 307 EBITDA $ 41,060 $ 6,090 $ 34,970 $ (3,797) $ 3,427 $ (7,224) Stock and other non-cash compensation 7,521 290 7,231 5,693 226 5,467 Realized and unrealized investment (gains) losses (29) — (29) 1,142 353 789 Write-downs, including asset impairments and credit loss expense 1,819 (23) 1,842 7,416 533 6,883 Legal judgment and arbitration awards — — — 4,105 — 4,105 Adjusted EBITDA per Credit Facility $ 50,371 $ 6,357 $ 44,014 $ 14,559 $ 4,539 $ 10,020 Revenues attributable to common shareholders(3) 108,572 10,738 97,834 55,990 7,926 48,064 Adjusted EBITDA margin attributable to common shareholders 46.4 % 59.2 % 45.0 % 26.0 % 57.3 % 20.8 % **For the Twelve Months Ended December 31, 2021 (1)** **For the Twelve Months Ended December 31, 2020 (1)** **Attributable to** **Non-controlling** **Less:** **Attributable to** **Non-controlling** **Less:** **Interests and** **Attributable to** **Attributable to** **Interests and** **Attributable to** **Attributable to** **Common** **Non-controlling** **Common** **Common** **Non-controlling** **Common** **Shareholders** **Interests** **Shareholders** **Shareholders** **Interests** **Shareholders** **_(In thousands of U.S.Dollars)_** Reported net loss $ (9,577) $ 12,752 $ (22,329) $ (157,486) $ (13,711) $ (143,775) Add (subtract): Income tax expense 20,564 4,049 16,515 26,504 5,408 21,096 Interest expense, net of interest income 2,362 (356) 2,718 3,720 (370) 4,090 Depreciation and amortization, including film asset amortization 56,082 5,255 50,827 52,704 4,570 48,134 Amortization of deferred financing costs(2) 2,513 — 2,513 902 — 902 EBITDA $ 71,944 $ 21,700 $ 50,244 $ (73,656) $ (4,103) $ (69,553) Stock and other non-cash compensation 26,079 1,114 24,965 22,038 968 21,070 Realized and unrealized investment (gains) losses (5,340) (1,571) (3,769) 2,081 631 1,450 (Recoveries) write-downs, including asset impairments and credit loss expense (2,187) (1,159) (1,028) 36,337 8,364 27,973 Legal arbitration award (1,770) — (1,770) 4,105 — 4,105 Loss from equity accounted investments — — — 1,858 — 1,858 Adjusted EBITDA per Credit Facility $ 88,726 $ 20,084 $ 68,642 $ (7,237) $ 5,860 $ (13,097) Revenues attributable to common shareholders(3) 254,883 33,556 221,327 137,003 15,767 121,236 Adjusted EBITDA margin attributable to common shareholders 34.8 % 59.9 % 31.0 % (5.3) % 37.2 % (10.8) % \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ (1)   The Senior Secured Net Leverage Ratio in the Company's Credit Agreement is calculated using Adjusted EBITDA per Credit Facility determined on a trailing twelve-month basis. During the first quarter of 2021, the Company entered into the Second Amendment to the Credit Facility Agreement which, among other things, suspends the Senior Secured Net Leverage Ratio financial covenant in the Credit Agreement through the first quarter of 2022 and, once re-established, permits the Company to use EBITDA from the third and fourth quarters of 2019 in lieu of EBITDA for the corresponding quarters of 2021. (2)   The amortization of deferred financing costs is recorded within Interest Expense in the Consolidated Statements of Operations. (3)           **Three months ended** **December 31, 2021** **Three months ended** **December 31, 2020** **Twelve months ended** **December 31, 2021** **Twelve months ended** **December 31, 2020** Total revenues $ 108,572 $ 55,990 $ 254,883 $ 137,003 Greater Chinarevenues $ 37,167 $ 26,323 $ 112,801 $ 52,331 Non-controlling interest ownership percentage(4) 28.89 % 30.11 % 29.75 % 30.13 % Deduction for non-controlling interest share of revenues (10,738) (7,926) (33,556) (15,767) Revenues attributable to common shareholders $ 97,834 $ 48,064 $ 221,327 $ 121,236 (4)   Weighted average ownership percentage for change in non-controlling interest share **_Adjusted Net Income (Loss) Attributable to Common Shareholders and Adjusted Diluted Per Share Calcula_****_tions_** **Three Months Ended** **Three Months Ended** **December 31, 2021** **December 31, 2020** **_(In thousands of U.S.dollars, except per share amounts)_** **Net Income** **Diluted EPS** **Net Loss** **Diluted EPS** Net income (loss) attributable to common shareholders $ 10,100 $ 0.17 $ (21,245) $ (0.36) Adjustments(1): Share-based compensation 7,140 0.12 5,296 0.09 COVID-19 government relief benefits, net 1,674 0.03 (1,880) (0.03) Legal judgment and arbitration awards — — 4,105 0.07 Realized and unrealized investment (gains) losses (29) — 789 0.01 Tax impact on items listed above (492) (0.01) (46) — Income taxes resulting from management's decision to no longer indefinitely reinvest the historical earnings of certain foreign subsidiaries — — 330 0.01 Adjusted net income (loss)(1) $ 18,393 $ 0.31 $ (12,651) $ (0.21) Weighted average basic shares outstanding 58,886 58,872 Weighted average diluted shares outstanding 59,805 58,872 **Year Ended** **Year Ended** **December 31, 2021** **December 31, 2020** **_(In thousands of U.S.dollars, except per share amounts)_** **Net Loss** **Diluted EPS** **Net Loss** **Diluted EPS** Net loss attributable to common shareholders $ (22,329) $ (0.38) $ (143,775) $ (2.43) Adjustments(1): Share-based compensation 24,815 0.42 20,558 0.35 COVID-19 government relief benefits, net (3,839) (0.06) (7,115) (0.12) Legal judgment and arbitration awards (1,770) (0.03) 4,105 0.07 Realized and unrealized investment (gains) losses (3,769) (0.06) 1,450 0.02 Tax impact on items listed above (1,909) (0.03) (630) (0.01) Income taxes resulting from management's decision to no longer indefinitely reinvest the historical earnings of certain foreign subsidiaries 381 0.01 13,344 0.23 Adjusted net loss (1) $ (8,420) $ (0.14) $ (112,063) $ (1.89) Weighted average shares outstanding - basic and diluted 59,126 59,237 \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ (1)    Reflects amounts attributable to common shareholders. **_Free Cash Flow_** **Three Months Ended** **Year Ended** **December 31, 2021** **December 31, 2021** Net cash provided by operating activities $ 25,647 $ 6,065 Net cash used in investing activities (6,663) (7) Free cash flow $ 18,984 $ 6,058   [![IMAX Logo. 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