NEW YORK, May 1, 2018/PRNewswire/ --

IMAX Logo. (PRNewsFoto/IMAX Corporation)

HIGHLIGHTS

Delivered Q1 2018 net income and adjusted net income of $8.5 millionand $13.4 million, respectively, compared to Q1 2017 net income and adjusted net income of $0.1 millionand $3.9 million, respectively.
Achieved Q1 2018 earnings per share and adjusted earnings per share of $0.13and $0.21, respectively compared to $nil and $0.06, respectively in Q1 2017.
Adjusted EBITDA per Credit Facility was $31.4 million, up 70% compared to the same period last year.
Gross Profit of $50.7 million, resulted in gross margins of 60%, a 750-basis point increase versus Q1 2017.
Global IMAXbox office of $246.9 millionhelped drive total revenues to $85.0 million, up 24% from the prior year period.
Repurchased $13.4 millionof shares at an average price of $20.46per share.
Successfully launched IMAXwith Laser, the Company's next-generation laser experience, bolstered by over 150 signings to date.
Avengers: Infinity War, the first commercial film shot entirely with IMAXcameras, kicked off the summer blockbuster season, delivering a record $41.5 millionin opening weekend IMAXbox office.

IMAX Corporation(NYSE: IMAX)today reported first-quarter 2018 revenues of $85.0 million, gross profit of $50.7 millionand net income attributable to common shareholders of $8.5 million, which calculates to $0.13per diluted share. Adjusted net income attributable to common shareholders for the first quarter was $13.4 million, which calculates to $0.21per diluted share. Adjusted EBITDA per Credit Facility was $31.4 million. For reconciliations of reported results to non-GAAP financial results, and for the definition and reconciliation of Adjusted EBITDA per Credit Facility, please see the end of this press release.

"Our first quarter results were strong from both a financial and strategic standpoint. We modifiedour programming strategy, demonstrated operating leverage and set the table for the successful launch of IMAXwith Laser, which was bolstered by over 150 signings to date," said Richard L. Gelfond, IMAXCEO. "In addition to benefitting from the revenue and cost initiatives we implemented last year—which helped drive Adjusted EBITDA growth of 70%, compared to Q1 last year—our recent performance also reflects IMAX'sgrowing value proposition to content-creators and moviegoers alike. As content-creators emphasize blockbuster-type content and as consumers seek differentiated moviegoing experiences, The IMAX Experience® is becoming an increasingly important platform to launch and experience global franchise content." Gelfond concluded, "We believe our global footprint, coupled with our focus on creating differentiated experiences for the biggest cinematic releases, uniquely positions IMAXto benefit from these trends."

First-Quarter 2018 Results

Network Update
During the quarter, the Company installed 16 theater systems, all of which were for new theater locations. The total IMAX® theater network consisted of 1,382 systems as of March 31, 2018, of which 1,286 were in commercial multiplexes. There were 529 theaters in backlog as of March 31, 2018, compared to the 524 in backlog as of March 31, 2017.

IMAXsigned contracts for 45 new theaters across 8 countries in the first quarter of 2018. For a breakdown of theater system signings, installations, network and backlog by type for the first quarter of 2018, please see the end of this press release.

Box Office Update
Gross box office from IMAX DMR® films increased 16.4% to $246.9 millionin the first quarter of 2018 from $212.1 millionin the first quarter of 2017. Gross box office was generated primarily by the exhibition of 22 films (14 new and 8 carryovers), as compared to 18 films (12 new and 6 carryovers) exhibited in the first quarter of 2017.

First-Quarter Consolidated Results
The gross margin across all segments in the first quarter of 2018 was $50.7 million, or 59.6% of total revenues, compared to $35.8 million, or 52.1% of total revenues, in the first quarter of 2017. Operating expenses (which includes SG&A, excluding stock-based compensation, plus R&D) were $27.3 millionin the quarter, down 9% compared to $30.0 millionin the first quarter of 2017.

"Looking ahead, our objectives this year are focused on improving the earnings power of our core business, increasing the differentiation of The IMAX Experience relative to other moviegoing options, and reinforcing the strength of our brand amongst worldwide consumers." Gelfond continued, "We believe these initiatives, coupled with our continued signings and installation momentum, should create meaningful value across the IMAXecosystem. Moreover, we're encouraged by the exciting upcoming film slate, the successful launch of IMAXwith Laser and our continued focus on controlling costs."

FASB ASC Topic 606 Revenue Recognition
As a result of adopting ASC Topic 606 regarding changes to revenue recognition, the Company recognized an additional $0.7 millionof net incremental revenue in the first quarter of 2018. Additional details related to these revenue recognition changes can be found in our 10-Q document.

First-Quarter Segment Results

Network Business

Network business revenues were $44.9 millionin the quarter, compared with $39.3 millionin the prior-year period. Gross margin for the network business were 70.2% in the most recent quarter, compared to 72.2% in the prior-year period.
IMAX DMR revenues were $27.1 millionin the first quarter of 2018, compared to $23.4 millionin the first quarter of 2017. Gross margin for the IMAX DMR segment was 69.4%, compared to 74.6% in the prior-year comparative period. The lower margins in the recent quarter reflect increased marketing costs versus last year.
Revenue from joint revenue-sharing arrangements were $17.9 millionin the quarter, compared with $15.2 millionin the prior-year period. Gross margin for joint revenue-sharing arrangements was 71.3%, compared to 67.3% in the prior-year comparative period.

Theater Business

Theater business segment revenues were $35.0 millionin the quarter, compared with $23.2 millionin the prior-year comparative period, primarily reflecting the installation of 7 additional sales-type theaters.
Gross margin on sales and sales-type leases was 64.0% compared with 46.4% in the year-ago period. The increase in the recent period is primarily the result of higher average margin per new system and no upgraded systems in the first quarter of 2018 versus 1 upgrade in 2017.

Supplemental Materials
For more information about the Company's results, please refer to the IMAX Investor Relations website located at 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 www.imax.com/content/investor-relations. 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. In addition, the Company maintains a Twitter account: @IMAX_Investors. The Company intends to use Twitter to disclose the box office information, as well as other information that may be of interest to the Company's investor community.

The information posted on the Company's website and/or via its Twitter account may be deemed material to investors. Accordingly, investors, media and others interested in the Company should monitor the Company's website and its Twitter account in addition to the Company's press releases, SECfilings and public conference calls and webcasts.

Conference Call
The Company will host a conference call today at 8:30AM ETto discuss its first quarter and 2018 financial results. This call is being webcast by Nasdaq and can be accessed at investors.imax.com. To access the call via telephone, interested parties in the US and Canadashould dial (800) 289-0438 approximately 5 to 10 minutes before the call begins. Other international callers should dial (647) 484-0478. The conference ID for the call is 9118022. A replay of the call will be available via webcast at investors.imax.comor via telephone by dialing (888) 203-1112 (US and Canada), or (647) 436-0148 (international). The Conference ID for the telephone replay is 9118022.

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 IMAXtheaters to connect with audiences in extraordinary ways, and, as such, IMAX'snetwork is among the most important and successful theatrical distribution platforms for major event films around the globe.

IMAXis headquartered in New York, Torontoand Los Angeles, with additional offices in London, Dublin, Tokyo, and Shanghai. As of March 31, 2018, there were 1,382 IMAX theater systems (1,286 commercial multiplexes, 12 commercial destinations, 84 institutional) operating in 77 countries. On Oct. 8, 2015, shares of IMAX China, a subsidiary of IMAX Corp., began trading on the Hong Kong Stock Exchangeunder the stock code "HK.1970."

IMAX®, IMAX® 3D, IMAX DMR®, Experience It In IMAX®, An IMAX 3D Experience®, The IMAX Experience®, IMAX Is Believing® and IMAXnXos® are trademarks of IMAX Corporation. More information about the Company can be found at www.imax.com. You may also connect with IMAXon Facebook(www.facebook.com/imax), Twitter (www.twitter.com/imax) and YouTube(www.youtube.com/imaxmovies).

This press release contains forward looking statements that are based on IMAXmanagement's assumptions and existing information and involve certain risks and uncertainties which could cause actual results to differ materially from future results expressed or implied by such forward looking statements. Important factors that could affect these statements include, but are not limited to, references to future capital expenditures (including the amount and nature thereof), business and technology strategies and measures to implement strategies, competitive strengths, goals, expansion and growth of business, operations and technology, 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; risks related to the Company's growth and operations in China; the performance of IMAX DMR films; the signing of 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; competitive actions by other companies; the failure to respond to change and advancements in digital technology; risks relating to recent consolidation among commercial exhibitors and studios; risks related to 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; risks related to the Company's inability to protect the Company's intellectual property; general economic, market or business conditions; the failure to convert theater system backlog into revenue; changes in laws or regulations; the failure to fully realize the projected cost savings and benefits from the Company's restructuring initiative; and other factors, many of which are beyond the control of the Company.These factors, other risks and uncertainties and financial details are discussed in IMAX'smost recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.

For additional information please contact:

Investors:

Michael K. Mougias, New York

212-821-0187

mmougias@imax.com

Business Media:

Sloane & Company, New York

Whit Clay

212-446-1864

wclay@sloanepr.com

Media:

IMAX Corporation, New York

Adam Davis

212-821-0116

adavis@imax.com

Entertainment Media:

Principal Communications Group, Los Angeles

Melissa Zuckerman/Paul Pflug

323-658-1555

melissa@pcommgroup.com

paul@pcommgroup.com

Additional Information

Signings and Installations
March 31, 2018
		Three Months Ended March 31,
	Theater Signings:	2018		2017
	Full new sales and sales-type lease arrangements	15		36
	New traditional joint revenue sharing arrangements	22		-
	New hybrid joint revenue sharing lease arrangements	8		2
	Total new theaters	45		38
	Upgrades of IMAX theater systems	-		1
	Total Theater Signings	45		39


		Three Months Ended March 31,
	Theater Installations:	2018		2017
	Full new sales and sales-type lease arrangements	13		5
	New traditional joint revenue sharing arrangements	3		8
	New hybrid joint revenue sharing lease arrangements	-		1
	Total new theaters	16		14
	Upgrades of IMAX theater systems	-		1	⁽¹⁾
	Total Theater Installations	16		15

		Three Months Ended March 31,
		Three Months Ended March 31,
	Theater Backlogs:	2018		2017
	New sales and sales-type lease arrangements	178	⁽²⁾	176
	New joint revenue sharing arrangements
	Hybrid lease arrangements	116		93
	Traditional arrangements	235		255
	Total Theater Backlog	529	⁽³⁾	524	⁽⁴⁾

		Three Months Ended March 31,
		Three Months Ended March 31,
	Theater Network:	2018		2017
	Commercial Multiplex Theaters:
	Sales and sales-type lease arrangements	568		472
	Traditional joint revenue sharing arrangements	610		533
	Hybrid joint revenue sharing lease arrangements	108		116
	Total Commercial Multiplex Theaters	1,286		1,121

	Commercial Destination Theaters	12		14
	Institutional Theaters	84		91
	Total Theater Network	1,382		1,226
____________________

(1)	Includes one installation of an upgrade to a laser-based digital system under a sales arrangement.
(2)	Includes 14 theater systems which were previously classified under joint revenue sharing arrangements – hybrid sales arrangements.
(3)	Includes 33 laser-based digital theater system configurations, including five upgrades.
(4)	Includes 21 laser-based digital theater system configurations, including three upgrades.

IMAX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands of U.S. dollars, except per share amounts)
*(Unaudited)*

		Three Months Ended
		March 31,
		2018		2017
Revenues
Equipment and product sales		$	19,513	$	11,544
Services			44,746		38,844
Rentals			18,202		15,857
Finance income			2,523		2,412
			84,984		68,657
Costs and expenses applicable to revenues
Equipment and product sales			7,972		7,464
Services			20,351		19,814
Rentals			5,969		5,608
			34,292		32,886
Gross margin			50,692		35,771
Selling, general and administrative expenses			28,083		30,941
	(including share-based compensation expense of $4.4 million for the three months ended March 31, 2018 (2017 — $5.3 million))
Research and development			3,592		4,334
Amortization of intangibles			892		602
Receivable provisions, net of recoveries			451		185
Exit costs, restructuring charges and associated impairments			702		-
Income (loss) from operations			16,972		(291)
Interest income			247		228
Interest expense			(494)		(455)
Income (loss) from operations before income taxes			16,725		(518)
Provision for income taxes			(4,453)		(114)
Loss from equity-accounted investments, net of tax			(205)		(255)
Net income (loss)			12,067		(887)
Less: net (income) loss attributable to non-controlling interests			(3,562)		962
Net income attributable to common shareholders		$	8,505	$	75

Net income per share attributable to common shareholders - basic and diluted:
Net income per share — basic and diluted		$	0.13	$	-

Weighted average number of shares outstanding (000's):
	Basic		64,555		66,363
	Fully Diluted		64,619		67,180

Additional Disclosure:
Depreciation and amortization⁽¹⁾		$	13,521	$	12,088

(1) Includes $0.1 million of amortization of deferred financing costs charged to interest expense for the three months ended March 31, 2018 (2017 - $0.1 million).

IMAX CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands of U.S. dollars)
*(Unaudited)*



	March 31,		December 31,
	2018		2017

Assets
Cash and cash equivalents	$	145,579	$	158,725
Accounts receivable, net of allowance for doubtful accounts of $2,075 (December 31, 2017 — $1,613)		119,754		130,546
Financing receivables		129,774		129,494
Inventories		29,096		30,788
Prepaid expenses		10,165		7,549
Film assets		7,714		5,026
Property, plant and equipment		278,978		276,781
Other assets		62,569		26,757
Deferred income taxes		25,145		30,708
Other intangible assets		30,533		31,211
Goodwill		39,027		39,027
Total assets	$	878,334	$	866,612

Liabilities
Bank indebtedness	$	24,867	$	25,357
Accounts payable		13,782		24,235
Accrued and other liabilities		94,023		100,140
Deferred revenue		112,131		113,270
Total liabilities		244,803		263,002

Commitments and contingencies

Non-controlling interests		5,471		1,353

Shareholders' equity
Capital stock common shares — no par value. Authorized — unlimited number.
64,287,977 issued and 63,996,413 outstanding (December 31, 2017 — 64,902,201 issued and 64,695,550 outstanding)		441,303		445,797
Less: Treasury stock, 291,564 shares at cost (December 31, 2017 — 206,651)		(5,992)		(5,133)
Other equity		173,866		175,300
Accumulated deficit		(60,418)		(87,592)
Accumulated other comprehensive loss		(138)		(626)
Total shareholders' equity attributable to common shareholders		548,621		527,746
Non-controlling interests		79,439		74,511
Total shareholders' equity		628,060		602,257
Total liabilities and shareholders' equity	$	878,334	$	866,612

IMAX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands of U.S. dollars)
*(Unaudited)*
	Three Months Ended March 31,
	2018		2017

Cash provided by (used in):
Operating Activities
Net income (loss)	$	12,067	$	(887)
Adjustments to reconcile net income to cash from operations:
Depreciation and amortization		13,521		12,088
Write-downs, net of recoveries		1,036		4,010
Change in deferred income taxes		(465)		(958)
Stock and other non-cash compensation		5,141		5,660
Unrealized foreign currency exchange loss (gain)		35		(171)
Loss from equity-accounted investments		106		156
Loss on non-cash contribution to equity-accounted investees		99		99
Investment in film assets		(6,259)		(3,334)
Changes in other non-cash operating assets and liabilities		(9,818)		(17,280)
Net cash provided by (used in) operating activities		15,463		(617)

Investing Activities
Purchase of property, plant and equipment		(6,588)		(4,068)
Investment in joint revenue sharing equipment		(4,810)		(7,547)
Acquisition of other intangible assets		(555)		(1,591)
Investment in new business ventures		-		(1,000)
Net cash used in investing activities		(11,953)		(14,206)

Financing Activities
Increase in bank indebtedness		-		-
Repayment of bank indebtedness		(500)		(500)
Repurchase of common shares		(13,396)		-
Treasury stock purchased for future settlement of restricted share units		(5,992)		(779)
Taxes withheld and paid on employee stock awards vested		(1,028)		(146)
Settlement of restricted share units and options		(173)		(11,158)
Issuance of subsidiary shares to a non-controlling interest		4,449		-
Common shares issued - stock options exercised		-		13,082
Net cash (used in) provided by financing activities		(16,640)		499

Effects of exchange rate changes on cash		(16)		46

Decrease in cash and cash equivalents during period		(13,146)		(14,278)

Cash and cash equivalents, beginning of period		158,725		204,759

Cash and cash equivalents, end of period	$	145,579	$	190,481

IMAX CORPORATION SELECTED FINANCIAL DATA In accordance with United States Generally Accepted Accounting Principles (in thousands of U.S. dollars)

The Company has four primary reporting groups identified by nature of product sold or service provided: (1) Network Business, representing variable revenue generated by box-office results and which includes the reportable segments of IMAX DMR and contingent rent from the JRSAs and IMAX systems segments; (2) Theater Business, representing revenue generated by the sale and installation of theater systems and maintenance services, primarily related to the IMAX Systems and Theater System Maintenance reportable segments, and also includes fixed hybrid revenues and upfront installation costs from the JRSA segment; (3) New Business, which includes content licensing and distribution fees associated with our original content investments, virtual reality initiatives, IMAX Home Entertainment, and other business initiatives that are in the development and/or start-up phase, and (4) Other; which includes the film post-production and distribution segments and certain IMAX theaters that the Company owns and operates, camera rentals and other miscellaneous items.

			Three Months
			Ended March 31,
			2018		2017
Revenue
Network Business
	IMAX DMR		$	27,051	$	23,408
	Joint revenue sharing arrangements – contingent rent			17,861		15,233
	IMAX systems – contingent rent			-		688
				44,912		39,329
Theater Business
	IMAX systems
		Sales and sales-type leases		18,138		6,942
		Ongoing fees and finance income		2,730		2,585
	Joint revenue sharing arrangements – fixed fees			-		470
	Theater system maintenance			12,712		11,045
	Other theater			1,377		2,165
				34,957		23,207
New Business				608		1,280

Other
	Film distribution and post-production			3,734		3,584
	Other			773		1,257
				4,507		4,841
Total			$	84,984	$	68,657

Gross margin
Network Business
	IMAX DMR⁽¹⁾		$	18,782	$	17,467
	Joint revenue sharing arrangements – contingent rent⁽¹⁾			12,740		10,250
	IMAX systems – contingent rent			-		688
				31,522		28,405
Theater Business
	IMAX systems
		Sales and sales-type leases		11,609		3,220
		Ongoing fees and finance income		2,683		2,521
	Joint revenue sharing arrangements – fixed fees⁽¹⁾			-		88
	Theater system maintenance			6,205		4,249
	Other theater			(45)		430
				20,452		10,508
New Business				(1,469)		(337)

Other
	Film distribution and post-production⁽¹⁾			446		(2,663)
	Other			(259)		(142)
				187		(2,805)
Total			$	50,692	$	35,771

IMAX CORPORATION OTHER INFORMATION (in thousands of U.S. dollars)

*Non-GAAP Financial Measures:*

In this release, the Company presents adjusted net income, adjusted net income per diluted share, adjusted net income attributable to common shareholders and adjusted net income attributable to common shareholders per diluted share, EBITDA and adjusted EBITDA as supplemental measures of performance of the Company, which are not recognized under U.S. GAAP. The Company presents adjusted net income and adjusted net income per diluted share because it believes that they are important supplemental measures of its comparable controllable operating performance and it wants to ensure that its investors fully understand the impact of its stock-based compensation (net of any related tax impact) on net income. In addition, the Company presents adjusted net income attributable to common shareholders and adjusted net income attributable to common shareholders per diluted share because it believes that they are important supplemental measures of its comparable financial results and could potentially distort the analysis of trends in business performance and it wants to ensure that its investors fully understand the impact of net income attributable to non-controlling interests and its stock-based compensation (net of any related tax impact) in determining net income attributable to common shareholders. Management uses these measures to review operating performance on a comparable basis from period to period. However, these non-GAAP measures may not be comparable to similarly titled amounts reported by other companies. Adjusted net income, adjusted net income per diluted share, adjusted net income attributable to common shareholders and adjusted net income attributable to common shareholders per diluted share should be considered in addition to, and not as a substitute for, net income and net income attributable to common shareholders and other measures of financial performance reported in accordance with U.S. GAAP.

The Company is required to maintain a minimum level of "EBITDA", as such term is defined in the Company's credit agreement (and which is referred to herein as "Adjusted EBITDA", as the credit agreement includes additional adjustments beyond interest, taxes, depreciation and amortization). EBITDA and Adjusted EBITDA (each as defined below) should not be construed as substitutes for net income or as better measures of liquidity as determined in accordance with U.S. GAAP. The Company believes that EBITDA and Adjusted EBITDA are relevant and useful information widely used by analysts, investors and other interested parties in the Company's industry.

		For the			For the
		3 months ended			12 months ended
		March 31, 2018			March 31, 2018		⁽¹⁾
*(In thousands of U.S. Dollars)*
Net income		$	12,067		$	25,472
Add (subtract):
	Provision for income taxes		4,453			21,129
	Interest expense, net of interest income		247			935
	Depreciation and amortization, including film asset amortization		13,380			67,668
	EBITDA	$	30,147		$	115,204
	Stock and other non-cash compensation		5,141			23,199
	Write-downs, net of recoveries including asset impairments and
	receivable provisions		1,036			21,041
	Exit costs, restructuring charges and associated impairments		702			16,876
	Loss from equity accounted investments		205			653
	Adjusted EBITDA before non-controlling interests⁽²⁾	$	37,231		$	176,973
	Adjusted EBITDA attributable to non-controlling interests		(5,824)			(25,906)
	Adjusted EBITDA per Credit Facility	$	31,407	*	$	151,067	*
	Adjusted EBITDA per Credit Facility, excluding impact from "Marvel's Inhumans"	$	31,463	*	$	139,047	*
	Adjusted revenues attributable to common shareholders	$	75,958		$	353,698
	Adjusted EBITDA margin, excluding impact from "Marvel's Inhumans"		41.3	%		42.7	%

Adjusted EBITDA per Credit Facility of $31.4 million and $151.1 million for the three and twelve months ended March 31, 2018 respectively, include the impact of the Company's investment in "Marvel's Inhumans", which resulted in a $0.1 million and $13.0 million loss, respectively. However, as permitted by the Credit Facility, this loss was offset by addbacks of $nil and $13.3 million for amortization and by addbacks of, $nil and $11.7 million for impairment charges relating to the investment, in each case for the three and twelve months ended March 31, 2018, respectively. The net effect of these addbacks was to increase Adjusted EBITDA per Credit Facility by $0.1 million and $12.0 million for the three and twelve months ended March 31, 2018, respectively. This investment represents the Company's first foray into a commercial television property, and therefore the Adjusted EBITDA per Credit Facility metric presented above may not be reflective of the Company's typical operational activity. Further, the Company does not yet know whether it will make similar investments in the future. As a result, the Company is also presenting Adjusted EBITDA per Credit Facility excluding the impact of "Marvel's Inhumans" to better facilitate comparisons to prior and future periods.

(1)	Ratio of funded debt calculated using twelve months ended Adjusted EBITDA.
(2)	The Adjusted EBITDA calculation specified for purpose of the minimum Adjusted EBITDA covenant excludes the reduction in Adjusted EBITDA from the Company's non-controlling interests.
(3)		3 months ended March 31, 2018				12 months ended March 31, 2018
	Total revenues			$	84,984			$	397,094
	Greater China revenues	$	28,146			$	136,030
	Non-controlling interest ownership percentage⁽⁴⁾	32.07%				31.90%
	Deduction for non-controlling interest share of revenues				(9,026)				(43,396)
	Adjusted revenues attributable to common shareholders			$	75,958			$	353,698

(4)	Weighted average ownership percentage for change in non-controlling interest share

IMAX CORPORATION OTHER INFORMATION (in thousands of U.S. dollars)

*Adjusted Net Income and Adjusted Diluted Per Share Calculations – Quarter Ended March 31, 2018 vs. 2017:*

The Company reported net income of $12.1 million, which calculates to $0.19 per basic and diluted share, for the first quarter of 2018 as compared to a net loss of $0.9 million, or $0.01 per basic and diluted share for the first quarter of 2017. Net income for the first quarter of 2018 includes a $4.8 million charge, or $0.08 per diluted share (2017 — $5.3 million or $0.08 per diluted share), for stock-based compensation and a $0.7 million charge, or $0.01 per diluted share (2017 - $nil), for exit costs, restructuring charges and associated impairments. Adjusted net income, which consists of net income excluding the impact of stock-based compensation, exit costs, restructuring charges and associated impairments and the related tax impact, was $17.1 million, or $0.27 per diluted share, for the first quarter of 2018 as compared to adjusted net income of $3.0 million, or $0.05 per diluted share, for the first quarter of 2017. The Company reported net income attributable to common shareholders of $8.5 million, or $0.13 per basic and diluted share for the first quarter of 2018 (2017 — $0.1 million or $nil per basic and diluted share). Adjusted net income attributable to common shareholders, which consists of net income attributable to common shareholders excluding the impact of stock-based compensation, exit costs, restructuring charges and associated impairments and the related tax impact, was $13.4 million, or $0.21 per diluted share, for the first quarter of 2018 as compared to adjusted net income attributable to common shareholders of $3.9 million, or $0.06 per diluted share, for the first quarter of 2017. A reconciliation of net income and net income attributable to common shareholders, the most directly comparable U.S. GAAP measure, to adjusted net income, adjusted net income per diluted share, adjusted net income attributable to common shareholders and adjusted net income attributable to common shareholders per diluted share is presented in the table below:

		Quarter Ended March 31,
*(In thousands of U.S. dollars, except per share amounts)*		2018				2017
		Net Income		Diluted EPS		Net Income		Diluted EPS
Reported net income		$	12,067	$	0.19	$	(887)	$	(0.01)
Adjustments:
	Stock-based compensation		4,847		0.08		5,264		0.08
	Exit costs, restructuring charges and associated impairments		702		0.01		-		-
	Tax impact on items listed above		(559)		(0.01)		(1,341)		(0.02)
Adjusted net income			17,057		0.27		3,036		0.05
	Net (income) loss attributable to non-controlling interests		(3,562)		(0.06)		962		0.01
Stock-based compensation (net of tax of less than
	$0.1 million and less than $0.1 million, respectively)		(57)		-		(128)		-
Adjusted net income attributable to common shareholders		$	13,438	$	0.21	$	3,870	$	0.06

Weighted average diluted shares outstanding					64,619				67,180

*Free Cash Flow:*

Free cash flow is defined as cash provided by operating activities minus cash used in investing activities (from the consolidated statements of cash flows). Cash provided by operating activities consist of net income, plus depreciation and amortization, plus the change in deferred income taxes, plus other non-cash items, plus changes in working capital, less investment in film assets, plus other changes in operating assets and liabilities. Cash used in investing activities includes capital expenditures, acquisitions and other cash used in investing activities. Management views free cash flow, a non-GAAP measure, as a measure of the Company's after-tax cash flow available to reduce debt, add to cash balances, and fund other financing activities. 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 in the table below:

		For the
		Three months ended
		March 31, 2018
*(In thousands of U.S. Dollars)*
Net cash provided by operating activities		$	15,463
Net cash used in investing activities			(11,953)
	Net cash flow	$	3,510

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SOURCE IMAX Corporation