--- title: IMAX Corporation Reports Second Quarter 2024 Earnings Results publisher: "IMAX" description: "Global entertainment platform delivers solid results, including Revenue of $89 million , Net Income of $3.6 million , EPS (1) of 7 cents , Total Adjusted EBITDA (2) of $31 million and Adjusted EPS (1) of 18 cents . Signings for new and upgraded IMAX systems grow to 87 (+89%) in the quarter; system" canonical: "https://www.imax.com/pr/imax-corporation-reports-second-quarter-2024-earnings-results" date: 2024-07-25 last_updated: 2024-07-25 --- IMAX Corporation Reports Second Quarter 2024 Earnings Results ============================================================= Thu, Jul 25, 2024 * Global entertainment platform delivers solid results, including Revenue of $89 million, Net Income of $3.6 million, EPS(1)of 7 cents, Total Adjusted EBITDA(2)of $31 millionand Adjusted EPS(1)of 18 cents. * Signings for new and upgraded IMAX systems grow to 87 (+89%) in the quarter; system installations climb to 24 (+20%) as Company raises installation guidance to 130 to 150 systems for full-year 2024 vs. 128 in full-year 2023. * June surge of film hits pushes quarterly Global Box Office to $196 million; third quarter off to strong start with "Twisters" and this weekend's "Deadpool & Wolverine." * Quarterly revenue bolstered by sale of IMAX original documentary "The Blue Angels" as Company further diversifies content portfolio and revenue mix. * Cash from Operations climbs to $35 millionin the quarter, up significantly year-over-year from $5 millionin the prior-year quarter. NEW YORK, July 25, 2024/PRNewswire/ -- IMAX Corporation(NYSE: IMAX) today reported financial results for the second quarter of 2024, demonstrating the value of its unique global entertainment platform and broad content portfolio.   [![An infographic highlighting IMAX's recent quarter.](https://mma.prnewswire.com/media/2468751/IMAX_2Q_2024_Earnings.jpg "An infographic highlighting IMAX's recent quarter.")](https://mma.prnewswire.com/media/2468751/IMAX_2Q_2024_Earnings.html) "With the strikes — and the lingering effects of the pandemic — firmly behind us, we are in an excellent position to fully realize the benefits of our strong, asset-lite business model," said Rich Gelfond, CEO of IMAX. "The second quarter offered strong evidence that we are at in inflection point in our business; we are on a tear with system sales activity, our system installations are up significantly, and the slate through 2026 is as strong as we've ever seen." "Several signs across our financial and operating performance in the second quarter underscore our building momentum — we beat consensus across most metrics, generated strong cash flow, delivered our most quarterly signings for IMAX systems in six years, and expect to install a higher number of IMAX systems in 2024 over the year prior." "We continue to grow our unique global network across key regions including India, the Middle East, and Southeast Asia, while fortifying our most important exhibition partnerships — including our deal with China'sWanda Film, our biggest exhibition agreement in five years."  "Our ongoing strategic network expansion will enable IMAX to fully capitalize on the tremendous film slate over the next several years — featuring new releases from some of our most successful filmmaking partners and studio franchises, as well as a record of at least 14 films shot with IMAX cameras in 2025."  _\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\__ _(1)_ _Diluted Net Income Per Share_ _(2)_ _Non-GAAP Financial Measure. See the discussion at the end of this earnings release for a description of the non-GAAP financial measures used herein, as well as reconciliations to the most comparable GAAP amounts._ **Second Quarter Financial Highlights** **Three Months Ended** **Six Months****Ended** **June 30,** **June 30,** _In millions of U.S.Dollars, except per share data_ **2024** **2023** **YoY %** **Change** **2024** **2023** **YoY %** **Change** Total Revenue $       89.0 $       98.0 (9 %) $     168.1 $     184.9 (9 %) Gross Margin $       43.9 $       57.9 (24 %) $       90.8 $     107.9 (16 %) Gross Margin (%) 49.4 % 59.1 % 54.0 % 58.4 % Total Adjusted EBITDA(1)(2) $       31.0 $       35.9 (14 %) $       63.1 $       68.3 (8 %) Total Adjusted EBITDA Margin (%)(1)(2) 34.8 % 36.7 % 37.5 % 36.9 % Net Income(3) $         3.6 $         8.4 (57 %) $         6.9 $       10.8 (37 %) Diluted Net Income Per Share(3) $       0.07 $       0.15 (53 %) $       0.13 $       0.20 (35 %) Adjusted Net Income(1)(3) $         9.7 $       14.4 (33 %) $       17.7 $       23.4 (24 %) Adjusted Earnings Per Share(1)(3) $       0.18 $       0.26 (31 %) $       0.33 $       0.42 (21 %) Weighted average shares outstanding (in millions): Basic 52.6 54.6 (4 %) 52.6 54.3 (3 %) Diluted 53.4 55.3 (3 %) 53.4 55.1 (3 %) _\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\__ _(1)_ _Non-GAAP Financial Measure. See the discussion at the end of this earnings release for a description of the non-GAAP financial measures used herein, as well as reconciliations to the most comparable GAAP amounts._ _(2)_ _Total Adjusted EBITDA is before adjustments for non-controlling interests. Total Adjusted EBITDA per Credit Facility attributable to common shareholders, excluding non-controlling interests, was $26.9 millionand $55.0 millionfor each of the three and six months ended June 30, 2024(2023 - $32.8 millionand $60.1 million)._ _(3)_ _Attributable to common shareholders._ **Second Quarter Segment Results****(1)** **Content Solutions** **Technology Products and Services** **Revenue**          **Gross Margin** **Gross** **Margin %** **Revenue**        **Gross Margin** **Gross** **Margin %** **2Q24** $                35.1 $                16.1 46 % $                50.9 $                25.8 51 % **2Q23** 31.3 20.0 64 % 64.0 36.4 57 % **% change** 12 % (19 %) (20 %) (29 %) **YTD24** $                69.1 $                38.2 55 % $                94.0 $                49.4 52 % **YTD23** 63.4 38.0 60 % 115.6 66.3 57 % **% change** 9 % 1 % (19 %) (26 %) _\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\__ _(1)_     _Please refer to the Company's Form 10-Q for the period ended June 30, 2024for additional segment information._ **Content Solutions Segment** * Content Solutions revenues of $35 millionincreased 12% year-over-year. The sale of the commercial and streaming rights of "The Blue Angels" documentary more than offset the Hollywoodstrike impacted lower IMAX gross box office in Q2 2024 of $196 millioncompared to $268 millionin Q2 2023. * Gross margin for Content Solutions was $16 millionand decreased 19% compared to the second quarter of the prior year period driven by the lower box office and the mix of revenues. **Technology Products and Services Segment** * Technology Products and Services revenues and gross margin decreased 20% year-over-year to $51 millionand 29% year-over-year to $26 million, respectively, which reflects the lower box office tied rental revenues as well as fewer sale/hybrid installations and a lower contribution from amendments and renewals. * During the second quarter the Company installed 24 systems compared to 20 systems in the second quarter of 2023. Of those, 10 systems were under sales and hybrid JRSA arrangements, compared to 13 systems in the prior year. * Commercial network growth accelerated with the number of IMAX locations increasing 4% year-over-year to 1,705. The Company ended Q2 2024 with a backlog of 504 IMAX systems. **Operating Cash Flow and Liquidity** Net cash provided by operating activities for the first half of 2024 was $24 millioncompared to $26 millionin the prior year period. Second quarter 2024 net cash provided by operating activities was $35 millioncompared to $5 millionin the prior year period with the increase reflecting timing of collections and improvements in working capital. As of June 30, 2024, the Company's available liquidity was $392 million. The Company's liquidity includes cash and cash equivalents of $92 million, $246 millionin available borrowing capacity under the Credit Facility, and $55 millionin available borrowing capacity under IMAX China's revolving facilities. Total debt, excluding deferred financing costs, was $287 millionas of June 30, 2024. In 2021, the Company issued $230.0 millionof 0.500% Convertible Senior Notes due 2026 ("Convertible Notes"). In connection with the pricing of the Convertible Notes, the Company entered into privately negotiated capped call transactions with an initial cap price of $37.2750per share of the Company's common shares.  **Share Count and Capital Return** The weighted average basic and diluted shares outstanding in the second quarter of 2024 were 52.6 million and 53.4 million, respectively, compared to 54.6 million and 55.3 million in the second quarter of 2023, a decrease of 3.6% and 3.4%, respectively. During the first half of 2024 the Company repurchased 1,166,370 common shares at an average price of $13.99for a total of $16 million, excluding commissions On June 14, 2023, the Company announced a 3-year extension to its share-repurchase program through June 30, 2026. The current share-repurchase program authorizes the Company to repurchase up to $400 millionof its common shares, of which approximately $151 millionremains available. **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=4219124-1&h=2065639571&u=https%3A%2F%2Fwww.imax.com%2Fcontent%2Finvestor-relations%2F&a=investors.imax.com). **Investor Relations Website and Social Media** On a monthly 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=4219124-1&h=2065639571&u=https%3A%2F%2Fwww.imax.com%2Fcontent%2Finvestor-relations%2F&a=investors.imax.com). The Company expects to provide such updates within five business days of month-end, although the Company may change this timing without notice. 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 8:30 AM ETto discuss its second quarter 2024 financial results. This call is being webcast and can be accessed at [investors.imax.com](https://c212.net/c/link/?t=0&l=en&o=4219124-1&h=579403910&u=https%3A%2F%2Fwww.imax.com%2Fcontent%2Finvestor-relations&a=investors.imax.com). To access the call via telephone, interested parties please pre-register here: [https://register.vevent.com/register/BIaceefcc683494a839687115352a98934](https://c212.net/c/link/?t=0&l=en&o=4219124-1&h=3316924110&u=https%3A%2F%2Fcan01.safelinks.protection.outlook.com%2F%3Furl%3Dhttps%253A%252F%252Fregister.vevent.com%252Fregister%252FBIaceefcc683494a839687115352a98934%26data%3D05%257C02%257CVMaksimowicz%2540imax.com%257Ca538704e01f64a01274108dcac11e5fc%257C690377a2597f481ca498b51532ed1e7d%257C0%257C0%257C638574440078241277%257CUnknown%257CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%253D%257C0%257C%257C%257C%26sdata%3D55W2ufL9kDZe4T6%252FPTGblKJ3fWNRUCKsw6DMqjO3Of8%253D%26reserved%3D0&a=https%3A%2F%2Fregister.vevent.com%2Fregister%2FBIaceefcc683494a839687115352a98934)and you will be provided with a dial-in number and unique pin. To avoid delays, we encourage participants to dial into the conference call ten minutes ahead of the scheduled start time. A replay of the call will be available via webcast at [investors.imax.com](https://c212.net/c/link/?t=0&l=en&o=4219124-1&h=2065639571&u=https%3A%2F%2Fwww.imax.com%2Fcontent%2Finvestor-relations%2F&a=investors.imax.com). **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 systems to connect with audiences in extraordinary ways, making IMAX's network 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 additional offices in London, Dublin, Tokyo, and Shanghai. As of June 30, 2024, there were 1,780 IMAX systems (1,705 commercial multiplexes, 12 commercial destinations, 63 institutional) operating in 89 countries and territories. Shares of IMAX China Holding, Inc., a subsidiary of IMAX Corporation, trade on the Hong Kong Stock Exchangeunder the stock code "1970". IMAX®, IMAX® 3D, Experience It In IMAX®, The IMAX Experience®, DMR®, Filmed For IMAX®, IMAX LIVETM, IMAX Enhanced®, IMAX StreamSmartTM, and SSIMWAVE® are trademarks and trade names of IMAX Corporationor its subsidiaries that are registered or otherwise protected under laws of various jurisdictions. For more information, visit [www.imax.com](https://c212.net/c/link/?t=0&l=en&o=4219124-1&h=76629746&u=http%3A%2F%2Fwww.imax.com%2F&a=www.imax.com). You can also connect with IMAX on Instagram ([www.instagram.com/company/imax](https://c212.net/c/link/?t=0&l=en&o=4219124-1&h=2020176352&u=http%3A%2F%2Fwww.instagram.com%2Fcompany%2Fimax&a=www.instagram.com%2Fcompany%2Fimax)), Facebook ([www.facebook.com/imax](https://c212.net/c/link/?t=0&l=en&o=4219124-1&h=1611419571&u=http%3A%2F%2Fwww.facebook.com%2Fimax&a=www.facebook.com%2Fimax)), LinkedIn ([www.linkedin.com/company/imax](https://c212.net/c/link/?t=0&l=en&o=4219124-1&h=1852855541&u=http%3A%2F%2Fwww.linkedin.com%2Fcompany%2Fimax&a=www.linkedin.com%2Fcompany%2Fimax)), X ([www.twitter.com/imax](https://c212.net/c/link/?t=0&l=en&o=4219124-1&h=575586256&u=http%3A%2F%2Fwww.twitter.com%2Fimax&a=www.twitter.com%2Fimax)), and YouTube ([www.youtube.com/imaxmovies](https://c212.net/c/link/?t=0&l=en&o=4219124-1&h=1710235699&u=http%3A%2F%2Fwww.youtube.com%2Fimaxmovies&a=www.youtube.com%2Fimaxmovies)). For additional information please contact: **_Investors:_** IMAX Corporation, New York Jennifer Horsley 212-821-0154 [jhorsley@imax.com](mailto:jhorsley@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 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, as well as geopolitical conflicts; risks related to the Company's growth and operations in China; the performance of IMAX remastered films and other films released to the IMAX network; the signing of IMAX 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 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 associated with the Company's use of artificial intelligence and exploration of additional use cases of artificial intelligence; 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; risks related to political, economic and social instability; the failure to convert 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 the Company's 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 the Company'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's Chief Executive Officer ("CEO") is its Chief Operating Decision Maker ("CODM"), as such term is defined under U.S.GAAP. The CODM assesses segment performance based on segment revenues and segment gross margins. Selling, general and administrative expenses, research and development costs, the amortization of intangible assets, provision for (reversal of) current expected credit losses, certain write-downs, interest income, interest expense, and income tax (expense) benefit are not allocated to the Company's segments. In the first quarter of 2023, the Company revised its internal segment reporting, including the information provided to the CODM to assess segment performance and allocate resources. Accordingly, the Company has two reportable segments: (i)    Content Solutions, which principally includes the digital remastering of films and other content into IMAX formats for distribution to the IMAX network. To a lesser extent, the Content Solutions segment also earns revenue from the distribution of large-format documentary films and exclusive experiences ranging from live performances to interactive events with leading artists and creators, as well as film post-production services. (ii)    Technology Products and Services, which includes results from the sale or lease of IMAX Systems, as well as from the maintenance of IMAX Systems. To a lesser extent, the Technology Product and Services segment also earns revenue from certain ancillary theater business activities, including after-market sales of IMAX System parts and 3D glasses. Transactions between segments are valued at exchange value. Inter-segment profits are eliminated upon consolidation, as well as for the disclosures below. **IMAX Network and Backlog** **Three Months Ended** **Six Months Ended** **June 30,** **June 30,** **2024** **2023** **2024** **2023** System Signings(1): Sales Arrangements 25 26 30 41 Traditional JRSA 62 20 65 33 Total IMAX System Signings 87 46 95 74 _\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\__ _(1) System signings include new signings of 19 in Q2 2024, 35 in Q2 2023, 27 in the first half of 2024 and 62 in the first half of 2023._ **Three Months Ended** **Six Months Ended** **June 30,** **June 30,** **2024** **2023** **2024** **2023** System Installations(1): Sales Arrangements 10 11 15 19 Hybrid JRSA — 2 1 2 Traditional JRSA 14 7 23 8 Total IMAX System Installations 24 20 39 29 _\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\__ _(1) System installations include new systems installations of 16 in Q2 2024, 14 in Q2 2023, 28 in the first half of 2024 and 21 in the first half of 2023._ **As of June 30,** **2024** **2023** System Backlog: Sales Arrangements 177 193 Hybrid JRSA 101 109 Traditional JRSA 226 194 Total System Backlog 504 496 **As of June 30,** **2024** **2023** System Network: Commercial Multiplex Systems Sales Arrangements 807 731 Hybrid JRSA 138 138 Traditional JRSA 760 769 Total Commercial Multiplex Systems 1,705 1,638 Commercial Destination Systems 12 12 Institutional Systems 63 68 Total System Network 1,780 1,718 **IMAX CORPORATION** **CONSOLIDATED STATEMENTS OF OPERATIONS** _(In thousands of U.S.dollars, except per share amounts)_ **Three Months Ended** **Six Months Ended** **June 30,**   **June 30,** **2024** **2023** **2024** **2023** **Revenues** Technology sales $       20,420 $       29,360 $       28,324 $       47,182 Image enhancement and maintenance services 52,189 46,867 102,537 93,994 Technology rentals 14,043 19,546 32,644 39,604 Finance income 2,309 2,206 4,579 4,145 **88,961** **97,979** **168,084** **184,925** **Costs and expenses applicable to revenues** Technology sales 9,222 13,771 13,989 21,003 Image enhancement and maintenance services 29,089 19,739 50,284 42,824 Technology rentals 6,723 6,582 12,995 13,160 **45,034** **40,092** **77,268** **76,987** **Gross margin** **43,927** **57,887** **90,816** **107,938** Selling, general and administrative expenses 37,564 38,906 68,821 73,054 Research and development 2,031 2,762 4,218 4,617 Amortization of intangible assets 1,321 1,147 2,664 2,221 Credit loss expense, net 139 846 174 1,066 Restructuring and executive transition costs — — — 1,353 **Income from operations** **2,872** **14,226** **14,939** **25,627** Realized and unrealized investment gains 32 28 62 72 Retirement benefits non-service expense (107) (78) (214) (155) Interest income 561 693 1,095 1,100 Interest expense (2,282) (1,795) (4,227) (3,562) **Income before taxes** **1,076** **13,074** **11,655** **23,082** Income tax benefit (expense) 3,997 (3,461) (1,162) (8,346) **Net income** **5,073** **9,613** **10,493** **14,736** Net income attributable to non-controlling interests (1,490) (1,262) (3,636) (3,931) **Net income attributable to common shareholders** **$         3,583** **$         8,351** **$         6,857** **$       10,805** **Net income per share attributable to common shareholders:** Basic and diluted $           0.07 $           0.15 $           0.13 $           0.20 **Weighted average shares outstanding (in thousands):** Basic 52,633 54,591 52,568 54,328 Diluted 53,428 55,320 53,386 55,145 Additional Disclosure: Depreciation and amortization $       18,838 $       13,878 $       34,002 $       27,198 Amortization of deferred financing costs $            493 $            625 $            985 $         1,250 **IMAX CORPORATION** **CONSOLIDATED BALANCE SHEETS** _(In thousands of dollars, except share amounts)_ **June 30,** **December 31,** **2024** **2023** **Assets** Cash and cash equivalents $                91,552 $                76,200 Accounts receivable, net of allowance for credit losses 121,513 136,259 Financing receivables, net of allowance for credit losses 123,496 127,154 Variable consideration receivables, net of allowance for credit losses 69,927 64,338 Inventories 37,798 31,584 Prepaid expenses 11,786 12,345 Film assets, net of accumulated amortization 8,532 6,786 Property, plant and equipment, net of accumulated depreciation 237,781 243,299 Other assets 21,244 20,879 Deferred income tax assets, net of valuation allowance 16,099 7,988 Goodwill 52,815 52,815 Other intangible assets, net of accumulated amortization 34,856 35,022 **Total assets** **$              827,399** **$              814,669** **Liabilities** Accounts payable $                20,055 $                26,386 Accrued and other liabilities 106,336 111,013 Deferred revenue 62,655 67,105 Revolving credit facility borrowings, net of unamortized debt issuance costs 53,132 22,924 Convertible notes and other borrowings, net of unamortized discounts and debt issuance costs 229,738 229,131 Deferred income tax liabilities 12,521 12,521 **Total liabilities** **484,437** **469,080** **Commitments, contingencies and guarantees** **Non-controlling interests** **657** **658** **Shareholders' equity** Capital stock common shares — no par value. Authorized — unlimited number. 52,676,567 issued and outstanding (December 31, 2023— 53,260,276 issued and outstanding) 394,493 389,048 Other equity 176,632 185,087 Statutory surplus reserve 3,932 3,932 Accumulated deficit (293,889) (292,845) Accumulated other comprehensive loss (13,974) (12,081) **Total shareholders' equity attributable to common shareholders** **267,194** **273,141** Non-controlling interests 75,111 71,790 **Total shareholders' equity** **342,305** **344,931** **Total liabilities and shareholders' equity** **$              827,399** **$              814,669** **IMAX CORPORATION**  **CONSOLIDATED STATEMENTS OF CASH FLOWS** _(In thousands of dollars)_ **Six Months Ended** **June 30,** **2024** **2023** **Operating Activities** Net income $                  10,493 $                  14,736 Adjustments to reconcile net income to cash provided by operating activities: Depreciation and amortization 34,002 27,198 Amortization of deferred financing costs 985 1,250 Credit loss expense, net 174 1,066 Write-downs, including asset impairments 2,399 474 Deferred income tax benefit (7,722) (3,279) Share-based and other non-cash compensation 11,753 12,533 Unrealized foreign currency exchange loss 51 175 Realized and unrealized investment gain (62) (72) Changes in assets and liabilities: Accounts receivable 14,492 9,531 Inventories (6,271) (6,118) Film assets (12,741) (9,241) Deferred revenue (4,397) (3,255) Changes in other operating assets and liabilities (19,086) (19,143) **Net cash provided by operating activities** **24,070** **25,855** **Investing Activities** Purchase of property, plant and equipment (2,690) (1,009) Investment in equipment for joint revenue sharing arrangements (9,757) (4,033) Acquisition of other intangible assets (3,191) (3,478) **Net cash used in investing activities** **(15,638)** **(8,520)** **Financing Activities** Revolving credit facility borrowings 51,000 30,717 Repayments of revolving credit facility borrowings (21,000) (38,886) Repayments of other borrowings (311) — Proceeds from other borrowings — 315 Repurchase of common shares (18,102) (4,011) Taxes withheld and paid on employee stock awards vested (4,978) (6,458) Dividends paid to non-controlling interests — (1,438) **Net cash provided by (used in) financing activities** **6,609** **(19,761)** Effects of exchange rate changes on cash 311 291 **Increase (decrease) in cash and cash equivalents during period** **15,352** **(2,135)** **Cash and cash equivalents, beginning of period** **76,200** **97,401** **Cash and cash equivalents, end of period** **$                  91,552** **$                  95,266** **_Segment Revenue and Gross Margin_** **Three Months Ended** **Six Months Ended** **June 30,** **June 30,** _(In thousands of dollars)_ **2024** **2023** **2024** **2023** Revenue Content Solutions $                35,076 $                31,290 $                69,089 $                63,391 Technology Products and Services 50,898 63,976 94,048 115,643 Sub-total for reportable segments 85,974 95,266 163,137 179,034 All Other(1) 2,987 2,713 4,947 5,891 Total $                88,961 $                97,979 $              168,084 $              184,925 Gross Margin Content Solutions $                16,138 $                19,996 $                38,237 $                37,991 Technology Products and Services 25,783 36,411 49,367 66,302 Sub-total for reportable segments 41,921 56,407 87,604 104,293 All Other(1) 2,006 1,480 3,212 3,645 Total $                43,927 $                57,887 $                90,816 $              107,938 _\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\__ _(1)_     _All Other includes the results from the Company's streaming and consumer technology business, as well as other ancillary activities._ **IMAX CORPORATION ****NON-GAAP FINANCIAL MEASURES **_(In thousands of U.S.dollars)_ In this release, the Company presents adjusted net income attributable to common shareholders and adjusted net income attributable to common shareholders per basic and diluted share, EBITDA, Adjusted EBITDA per Credit Facility, Adjusted EBITDA margin as supplemental measures of the Company's performance, which are not recognized under U.S.GAAP. Adjusted net income or loss attributable to common shareholders and adjusted net income or loss attributable to common shareholders per basic and diluted share exclude, where applicable: (i) share-based compensation; (ii) realized and unrealized investment gains or losses; (iii) transaction-related expenses; and (iv) restructuring and executive transition costs, as well as the related tax impact of these adjustments. 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 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 attributable to common shareholders and adjusted net income 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 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. Accordingly, this non-GAAP financial 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 with 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) transaction-related expenses; (iv) restructuring and executive transition costs; and (v) write- downs, net of recoveries, including asset impairments and credit loss expense. 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. In this release, the Company also presents free cash flow, which is not recognized under U.S.GAAP, as a supplemental measure of the Company's liquidity. The Company definition of free cash flow deducts only normal recurring capital expenditures, including the Company's investment in joint revenue sharing arrangements, the purchase of property, plant and equipment and the acquisition of other intangible assets (from the Consolidated Statements of Cash Flows), from net cash provided by or used in operating activities. Management believes that free cash flow is a supplemental measure of the 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_** **Three Months Ended** _(In thousands of U.S.Dollars)_ **June 30, 2024** **June 30, 2023** Revenues $                88,961 $                97,979 Reported net income $                  5,073 $                  9,613 Add (subtract): Income tax expense (3,997) 3,461 Interest expense, net of interest income 1,229 477 Depreciation and amortization, including film asset amortization 18,838 13,878 Amortization of deferred financing costs(1) 492 625 EBITDA $                21,635 $                28,054 Share-based and other non-cash compensation 6,970 6,900 Unrealized investment gains (32) (28) Write-downs, including asset impairments and credit loss expense 2,428 1,016 Total Adjusted EBITDA $                31,001 $                35,942 Total Adjusted EBITDA margin 34.8 % 36.7 % Less: Non-controlling interest (4,151) (3,165) Adjusted EBITDA per Credit Facility - attributable to common shareholders $                26,850 $                32,777 _\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\__ _(1)_     _The amortization of deferred financing costs is recorded within Interest Expense in the Condensed Consolidated Statement of Operations._ **Twelve Months Ended** _(In thousands of U.S.Dollars)_ **June 30, 2024(1)** **June 30, 2023(1)** Revenues $              357,998 $              351,726 Reported net income $                28,823 $                11,060 Add (subtract): Income tax expense 5,867 12,710 Interest expense, net of interest income 3,037 2,125 Depreciation and amortization, including film asset amortization 66,826 56,836 Amortization of deferred financing costs(2) 1,969 2,674 EBITDA $              106,522 $                85,405 Share-based and other non-cash compensation 23,450 26,140 Unrealized investment gains (455) (78) Transaction-related expenses 3,413 1,278 Write-downs, including asset impairments and credit loss expense 4,305 4,490 Restructuring and executive transition costs 1,593 1,353 Total Adjusted EBITDA $              138,828 $              118,588 Total Adjusted EBITDA margin 38.8 % 33.7 % Less: Non-controlling interest $               (15,761) $               (14,296) Adjusted EBITDA per Credit Facility - attributable to common shareholders $              123,067 $              104,292 _\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\__ _(1)_     _The Senior Secured Net Leverage Ratio is calculated using Adjusted EBITDA per Credit Facility determined on a trailing twelve-month basis._ _(2)_     _The amortization of deferred financing costs is recorded within Interest Expense in the Condensed Consolidated Statement of Operations._ **_Adjusted Net Income Attributable to Common Shareholders and Adjusted Net Income Per Share_** **Three Months Ended** **June 30, 2024** **Three Months Ended** **June 30, 2023** _(In thousands of U.S.Dollars, except per share amounts)_ **Net Income** **Per Diluted** **Share** **Net Income** **Per Diluted** **Share** Net income attributable to common shareholders $                  3,583 $                    0.07 $                  8,351 $                    0.15 Adjustments(1): Share-based compensation 6,647 0.12 6,511 0.12 Unrealized investment gains (32) — (27) — Tax impact on items listed above (452) (0.01) (480) (0.01) Adjusted net income(1) $                  9,746 $                    0.18 $                14,355 $                    0.26 Weighted average shares outstanding — basic 52,633 54,591 Weighted average shares outstanding — diluted 53,428 55,320 **Six Months Ended June 30,** **2024** **2023** _(In thousands of U.S.Dollars, except per share amounts)_ **Net Income** **Per Share** **Net Income** **Per Share** Net income attributable to common shareholders $                  6,857 $                    0.13 $                10,805 $                    0.20 Adjustments(1): Share-based compensation 11,354 0.21 12,047 0.22 Unrealized investment gains (62) — (72) — Transaction-related expenses — — 156 — Restructuring and executive transition costs — — 1,353 0.02 Tax impact on items listed above (462) (0.01) (909) (0.02) Adjusted net income(1) $                17,688 $                    0.33 $                23,380 $                    0.42 Weighted average shares outstanding — basic 52,568 54,328 Weighted average shares outstanding — diluted 53,386 55,145 _\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\__ _(1)_     _Reflects amounts attributable to common shareholders._ **_Free Cash Flow_** **Six Months Ended** **June 30,** _(In thousands of U.S.Dollars)_ **2024** **2023** Net cash provided by operating activities $                24,070 $                25,855 Purchase of property, plant and equipment (2,690) (1,009) Acquisition of other intangible assets (3,191) (3,478) Free cash flow before growth CAPEX 18,189 21,368 Investment in equipment for joint revenue sharing arrangements (9,757) (4,033) Free cash flow $                  8,432 $                17,335   [![IMAX Logo. (PRNewsFoto/IMAX Corporation)](https://mma.prnewswire.com/media/74988/imax_corporation_logo.jpg "IMAX Logo. (PRNewsFoto/IMAX Corporation)")](https://mma.prnewswire.com/media/74988/imax_corporation_logo.html) ![Cision](https://c212.net/c/img/favicon.png?sn=NY69344&sd=2024-07-25 "Cision")View original content to download multimedia:[https://www.prnewswire.com/news-releases/imax-corporation-reports-second-quarter-2024-earnings-results-302206049.html](https://www.prnewswire.com/news-releases/imax-corporation-reports-second-quarter-2024-earnings-results-302206049.html) SOURCE IMAX Corporation