IMAX Corporation reports first quarter 2009 financial results
HIGHLIGHTS
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- Operating income increased to
$2.0 million versus operating loss of$5.6 million last year - Loss per share of
$0.06 compares favorably to last year's loss per share of$0.25 - Commercial theater network grows by 40% versus last year
- Continued system installations, joint revenue sharing model and film slate are strategic drivers for 2009
IMAX Chief Executive Officer
For the first quarter of 2009, film revenue increased 6% to
Mr. Gelfond continued, "On the film side, Watchmen: The IMAX Experience
delivered a domestic per screen average of approximately
First quarter gross box office from DMR titles increased to
First quarter gross margin increased 39% to
Selling, general and administrative expenses decreased to
The Company ended the quarter with a total of 371
As of
At the end of the first quarter, the Company's cash position was
approximately
Looking ahead to the remainder of the 2009 film slate, Star Trek: The IMAX
Experience (
Mr. Gelfond concluded, "We are encouraged by our first quarter results,
our success in the second quarter with Monsters vs. Aliens and pre-sales for
Star Trek. We believe our 2009 slate includes some of the most popular
franchises and highly anticipated films of the year. The record number of
films coming through the
The Company's 2010 film slate currently includes Avatar: An IMAX 3D
Experience, which should carry over from its
The Company will host a conference call today at
About
IMAX(R), IMAX(R) 3D, IMAX(R) DMR, The
This press release contains forward looking statements that are based on management's assumptions and existing information and involve certain risks and uncertainties which could cause actual results to differ materially from future results expressed or implied by such forward looking statements. Important factors that could affect these statements include, but are not limited to, general economic, market or business conditions, including the length and severity of the current economic downturn, the opportunities that may be presented to and pursued by the Company, the performance of IMAX DMR films, conditions in the in-home and out-of home entertainment industries, the signing of theatre system agreements, changes and developments in the commercial exhibition industry, the failure to convert theatre system backlog into revenue, investments and operations in foreign jurisdictions, foreign currency fluctuations and the Company's prior restatements and the related litigation and ongoing inquiries by the SEC and the OSC. These factors and other risks and uncertainties are discussed in the Company's most recent Annual Report on Form 10-K and most recent Quarterly Reports on Form 10-Q.
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,
--------------------------
2009 2008
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Revenues
Equipment and product sales.................... $ 13,360 $ 6,698
Services....................................... 14,887 14,207
Rentals........................................ 3,247 1,544
Finance income................................. 1,012 1,071
Other.......................................... 1,216 -
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33,722 23,520
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Costs and expenses applicable to revenues
Equipment and product sales.................... 7,241 2,965
Services....................................... 9,940 9,689
Rentals........................................ 2,166 730
Other.......................................... 245 -
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19,592 13,384
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Gross margin................................... 14,130 10,136
Selling, general and administrative expenses... 10,904 12,387
Research and development....................... 547 2,488
Amortization of intangibles.................... 145 133
Receivable provisions net of recoveries........ 510 748
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Income (loss) from operations.................. 2,024 (5,620)
Interest income................................ 21 126
Interest expense............................... (4,427) (4,496)
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Loss from continuing operations
before income taxes........................... (2,382) (9,990)
Provision for income taxes..................... (260) (269)
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Net loss....................................... $ (2,642) $ (10,259)
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Loss per share - basic & diluted:
Net loss..................................... $ (0.06) $ (0.25)
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Weighted average number of shares
outstanding (000's):
Basic 43,681 40,444
Fully diluted 43,681 40,444
Additional disclosure:
Depreciation and amortization(1) $ 3,993 $ 4,203
(1) Includes $0.3 million of amortization of deferred financing costs
charged to interest expense for the quarter ended March 31, 2009
(March 31, 2008 - $0.3 million )
IMAX CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
In accordance with United States Generally Accepted Accounting Principles
(in thousands of U.S. dollars)
March 31, December 31,
2009 2008
------------ ------------
(unaudited)
Assets
Cash and cash equivalents...................... $ 18,721 $ 27,017
Accounts receivable, net of allowance for
doubtful accounts of $2,808 (December 31,
2008 - $2,901) 24,822 22,982
Financing receivables.......................... 57,452 56,138
Inventories.................................... 15,863 19,822
Prepaid expenses............................... 3,071 1,998
Film assets.................................... 3,629 3,923
Property, plant and equipment.................. 45,237 39,405
Other assets................................... 16,945 16,074
Goodwill....................................... 39,027 39,027
Other intangible assets........................ 2,214 2,281
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Total assets................................. $ 226,981 $ 228,667
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Liabilities
Bank indebtedness.............................. $ 20,000 $ 20,000
Accounts payable............................... 16,205 15,790
Accrued liabilities............................ 64,108 58,199
Deferred revenue............................... 65,187 71,452
Senior Notes due 2010.......................... 160,000 160,000
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Total liabilities............................ 325,500 325,441
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Shareholders' deficiency
Capital stock common shares - no par value.
Authorized - unlimited number.
Issued and outstanding - 43,730,631
(December 31, 2008 - 43,490,631)............ 142,430 141,584
Other equity................................... 5,728 5,183
Deficit........................................ (249,651) (247,009)
Accumulated other comprehensive income......... 2,974 3,468
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Total shareholders' deficiency............... (98,519) (96,774)
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Total liabilities and shareholders'
deficiency.................................. $ 226,981 $ 228,667
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IMAX CORPORATION
SELECTED FINANCIAL DATA
In accordance with United States Generally Accepted Accounting Principles
(in thousands of U.S. dollars)
The Company has eight reportable segments identified by category of
product sold or service provided:
Three Months
Ended March 31,
--------------------------
2009 2008
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Revenue
IMAX systems................................... $ 16,452 $ 8,158
Theater system maintenance..................... 4,360 3,983
Joint revenue sharing arrangements............. 1,908 348
Films
Production and IMAX DMR...................... 3,700 2,916
Distribution................................. 3,242 2,753
Post-production.............................. 872 1,724
Theater operations............................. 2,714 2,831
Other.......................................... 474 807
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Total.......................................... $ 33,722 $ 23,520
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Gross margins
IMAX systems................................... $ 8,895 $ 5,559
Theater system maintenance..................... 2,312 1,588
Joint revenue sharing arrangements(1).......... 344 40
Films
Production and IMAX DMR...................... 1,770 306
Distribution................................. 336 1,374
Post-production.............................. 640 1,551
Theater operations............................. (110) (302)
Other.......................................... (57) 20
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Total.......................................... $ 14,130 $ 10,136
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(1) Offsetting the gross margin of the Company's joint revenue sharing
arrangement segment in the first three months of 2009 were certain
advertising, marketing and selling expenses of $0.7 million
associated with the initial launch of 17 new theaters opened during
the quarter. Excluding these launch expenses, gross margin would have
been $1.0 million for the first quarter of 2009 compared to less than
$0.1 million in the first quarter of 2008.
SOURCE:
CONTACT: Media:
[email protected];
Elliot Fischoff/Jason Magner, (310) 854-8128,
[email protected];
Investors:
Business Media:
Whit Clay, (212) 446-1864, [email protected]
(IMAX IMX.)