NEW YORK, Feb. 27, 2018/PRNewswire/ --

HIGHLIGHTS

Company achieved fourth-quarter global box office of $278 million, up 13% over the prior year.
IMAXdomestic box office increased 17% in the second half of 2017, compared to an industry decline of 6%.
Installed 165 new IMAX® theater systems during 2017, bringing the Company's total commercial multiplex network to 1,272 theaters, 68% of which are in international markets.
Company signed agreements for 170 new theater systems in 2017, resulting in year-end backlog of 494 new systems, plus five upgrades.
SG&A, excluding stock-based compensation, was down 5% year-over-year to $90 million, following the Company's cost-reduction initiative.
Over the four-day Presidents' Day and Chinese New Yearweekend, the Company achieved record February box office of $53 million, led by the release of Marvel Studios' Black Pantherand three local-language titles released in China.

IMAX Corporation(NYSE:IMAX)today reported fourth-quarter 2017 revenue of $125.6 millionand net income attributable to common shareholders of $4.8 million, or $0.08per diluted share, which includes a one-time tax charge of $9.3 million($0.14per diluted share) associated with the recent U.S. tax reform and a $2.5 million($0.04per diluted share) charge associated with the Company's cost reduction exercise announced in June. Full-year 2017 revenue was $380.8 millionand net income attributable to common shareholders was $2.3 million, or $0.04per diluted share, which includes the one-time tax charge of $9.3 million($0.14per diluted share) and total restructuring charge of $16.2 million($0.25per diluted share).

Adjusted net income attributable to common shareholders for the fourth quarter was $21.8 million, or $0.34per diluted share. Full-year 2017 adjusted net income attributable to common shareholders was $40.5 million, or $0.62per diluted share. 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.

"We saw tangible improvements to box office performance and operating leverage in the second half last year, largely the result of our implementing several initiatives aimed at refining our programming strategy and containing costs," said Richard L. Gelfond, IMAXCEO. "IMAXdomestic box office increased 17% in the second half, compared to an exhibitor industry decline of 6%. In international markets, we grew box office 14% over the same period. We believe this underscores the IMAXconsumer value proposition for compelling content and highlights the importance of analyzing our results separately from the overall industry's. Moreover, our growing international presence in markets such as Japan—a market that housed our single strongest-performing theater last year—continued to contribute meaningfully to our overall results."

Fourth-Quarter 2017 Results

U.S. Tax Cuts and Jobs Act (Tax Act)
In the fourth quarter of 2017, IMAXincurred a discrete tax expense of $9.3 million, related to the enactment of the U.S. Tax Cuts and Jobs Act on Dec. 22, 2017. This non-recurring charge relates to the provisional re-measurement and write-down of the Company's U.S. deferred tax assets and liabilities, given the changes enacted by the Tax Act.

Network Update
During the quarter, the Company installed 70 theaters, of which 69 were for new theater locations and one was an upgrade. The total IMAXtheater network consisted of 1,370 systems as of Dec. 31, 2017, of which 1,272 were in commercial multiplexes. There were 499 theaters in backlog as of Dec. 31, 2017, compared to the 498 in backlog as of Dec. 31, 2016.

IMAXsigned contracts for 23 new theaters across 12 countries in the fourth quarter of 2017. For a breakdown of theater system signings, installations, network and backlog by type for the fourth quarter of 2017, please see the end of this press release.

Box Office Update
Gross box office from IMAX DMR® films increased by 13% to $278.1 million in the fourth quarter of 2017 from $246.5 million in the fourth quarter of 2016, resulting in higher DMR revenues. Gross box office per-screen for the fourth quarter of 2017 averaged $227,000in comparison to $233,300in the fourth quarter of 2016. Gross box office was generated primarily by the exhibition of 45 films (20 new and 25 carryovers), as compared to 24 films (17 new and 7 carryovers) exhibited in the fourth quarter of 2016.

Please reference the chart below for a breakout of box office and per-screen averages on a regional basis:

	Box Office (M's)		Per Screen Average (000's)
	Q4 2017	Q4 2016	Q4 2017	Q4 2016
Global	$ 278.1	$ 246.5	$ 227.0	$ 233.3
Domestic	116.9	101.0	286.1	255.4
Greater China	63.3	60.0	131.1	168.4
Other Intl.	97.9	85.5	290.2	280.5

	FY 2017	FY 2016	FY 2017	FY 2016
Global	$ 976.5	$ 965.7	$ 838.4	$ 963.8
Domestic	357.8	368.5	883.4	934.9
Greater China	290.8	295.7	666.1	932.3
Other Intl.	327.9	301.5	1,014.7	1,037.2

Fourth-Quarter Segment Results

Network Business

Network business revenue was $53.8 millionin the quarter, compared with $47.6 millionin the prior-year period. Margins for the network business were 64.3% in the most recent quarter, compared to 65.8% in the prior-year period.
IMAX DMR revenues were $31.7 millionin the fourth quarter of 2017, compared to $27.6 millionin the fourth quarter of 2016. Gross margin for the IMAX DMR segment was 60.6%, compared to 60.8% in the prior-year comparative period.
Revenue from joint revenue-sharing arrangements was $20.7 millionin the quarter, compared with $18.5 millionin the prior-year comparative period. Gross margin for joint revenue-sharing arrangements was 67.8%, compared to 70.7% in the prior-year comparative period.

Theater Business

Theater business segment revenue was $55.5 millionin the quarter, compared with $53.0 millionin the prior-year comparative period.
The Company's gross margin on full, new sales and sales-type leases were 68.7% compared with 63.7% in the year-ago period, with the increase primarily a result of the deal-types for the systems recognized in the respective periods.
The Company expects to install approximately 145 new IMAXtheater systems in 2018.

Fourth-Quarter Consolidated Results
The gross margin across all segments in the fourth quarter of 2017 was $60.1 million, or 48.0% of total revenue, compared to $55.3 million, or 51.7% of total revenue in the fourth quarter of 2016. Operating expenses (which include SG&A and R&D, and exclude stock-based compensation) were $27.3 millionin the quarter, down 5% compared to $28.7 millionin the fourth quarter of 2016.

Full-Year 2017 Results
Full-year 2017 revenue was $380.8 millionas compared to 2016 revenue of $377.3 million. Reported net income attributable to common shareholders was $2.3 million, or $0.04per diluted share, as compared to $28.8 millionor $0.42per diluted share in 2016. Adjusted net income attributable to common shareholders was $40.5 millionas compared to $50.0 millionin 2016, or $0.62per diluted share as compared to $0.73per diluted share in 2016. Adjusted EBITDA per the Credit Facility, excluding the Company's investment in the television series Marvel's Inhumans, was $126.2 millionin 2017 as compared to $121.9 millionin 2016. The Company also reported a global 2017 per-screen average of $838,373, as compared to $963,800in the prior year.

The full-year systems installation total was 170 theater systems, of which 5 were upgrades, compared with 182 and 16, respectively, in the prior-year period. Continuing to build upon the Company's record signings momentum from 2016, IMAXsigned contracts for 177 theaters in 2017, across 35 countries, resulting in 499 theater systems in backlog as of Dec. 31, 2017, compared to 498 theater systems in backlog as of Dec. 31, 2016. The Company's top three markets for signings during 2017 were China, Germanyand India. For a breakdown of theater system signings, installations, network and backlog by type, please see the end of this press release.

"As we look to 2018, our primary focus is on expanding the earnings power of our core business," said Gelfond. "We believe the combination of the initiatives we implemented last year, coupled with a growing international presence and reduced spend on non-core businesses and R&D, should help facilitate operating leverage in the future. Our overarching efforts this year are aimed at growing the network, controlling costs and generating more box office across our theaters. And I am pleased to say that 2018 is off to a solid start. We recently achieved record box office in February, led by Black Panther, which did $35 millionin IMAXbox office over the four-day opening weekend. In China, we exhibited three local-language titles during the Chinese New Yearperiod and grew box office 60%, compared to the prior years' holiday."

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 4:30PM ETto discuss its fourth quarter and full-year 2017 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 (888) 394-8218 approximately 5 to 10 minutes before the call begins. Other international callers should dial (647) 484-0475. The conference ID for the call is 8365766. 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 8365766.

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 December 31, 2017, there were 1,370 IMAX theater systems (1,272 commercial multiplexes, 12 commercial destinations, 86 institutional) operating in 75 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

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

Ann Sommerlath

212-821-0155

asommerlath@imax.com

Entertainment Media:

Principal Communications Group, Los Angeles

Melissa Zuckerman/Paul Pflug

323-658-1555

melissa@pcommgroup.com

paul@pcommgroup.com

Additional Information

IMAX Theater Information
December 31, 2017

		Years Ended December 31,
		2017	2016

Theater System Signings:
Full new sales and sales-type lease arrangements		85	61
New traditional joint revenue sharing arrangements		35	246
New hybrid joint revenue sharing arrangements		50	7
	Total new theaters	170	314
Upgrades of IMAX theater systems		7	5
	Total Theater Signings	177	319

		Years Ended December 31,
		2017	2016

Theater System Installations:
Full new sales and sales-type lease arrangements		60	56
New traditional joint revenue sharing arrangements		86	76
New hybrid joint revenue sharing arrangements		19	33
Short-term operating lease arrangement		-	1
	Total new theaters	165	166
Upgrades of IMAX theater systems		5	16
	Total Theater Installations	170	182

		As of December 31,
Theater Backlog:		2017	2016
New sales and sales-type lease arrangements		161	140
New joint revenue sharing arrangements
	Hybrid arrangements	121	92
	Traditional arrangements	212	263
	Total new theaters	494	495
Upgrades of IMAX theater systems		5	3
Total Theater Backlog		499	498

		As of December 31,
Theater Network:		2017	2016
Commercial Multiplex Theaters:
Sales and sales-type lease arrangements		525	467
Joint revenue sharing arrangements		747	640
Total Commercial Multiplex Theaters		1,272	1,107

Commercial Destination		12	16
Institutional		86	92
Total Theater Network		1,370	1,215

Additional Information (continued)

2018 DMR Films:

To date, the Company has announced the following 31 DMR titles to be released in 2018 to the IMAXtheater network. The Company remains in active negotiations with all of the major Hollywoodstudios, as well as international studios, for additional films to fill out its short and long-term film slate, and anticipates that the number of IMAX DMR films to be released to the IMAXtheater network in 2018 will be similar to the 60 IMAX DMR films released to the IMAXtheater network in 2017.

(1)     The Commuter: The IMAXExperience(Lionsgate Entertainment Inc., January 2018);
(2)     12 Strong: The IMAXExperience (Warner Bros. Pictures, January 2018);
(3)     Padmaavat: The IMAXExperience (Viacom18 Motion Pictures and Paramount Pictures, January 2018, Indiaplus limited Domestic footprint and International markets);
(4)     Maze Runner: The Death Cure: TheIMAXExperience (20^thCentury Fox, January 2018);
(5)     Fifty Shades Freed: TheIMAXExperience(Universal Pictures, February 2018);
(6)     Monster Hunt 2: The IMAXExperience (Edko Films, February 2018, Chinaonly);
(7)     Detective Chinatown2: The IMAXExperience (WanDa Pictures, February 2018, Chinaonly);
(8)     Operation Red Sea: The IMAXExperience (Bona Film Group, February 2018, Chinaonly);
(9)     Marvel's Black Panther: The IMAXExperience (Walt Disney Studios, February 2018);
(10) Red Sparrow: The IMAXExperience (20^thCentury Fox, March 2018);
(11) A Wrinkle in Time: TheIMAXExperience(Walt Disney Studios, March 2018);
(12) Tomb Raider: The IMAXExperience (Warner Bros. Pictures, March 2018);
(13) Pacific Rim Uprising: The IMAXExperience (Warner Bros. Pictures, March 2018);
(14) Ready Player One: TheIMAXExperience (Warner Bros. Pictures, March 2018);
(15) Rampage: The IMAXExperience(Warner Bros. Pictures, April 2018);
(16) Avengers: Infinity War: The IMAXExperience(Walt Disney Studios, May 2018, most International markets – April 2018);
(17) Deadpool 2: The IMAXExperience (20^thCentury Fox, May 2018, select markets only);
(18) Solo: A Star Wars Story: The IMAXExperience (Walt Disney Studios, May 2018);
(19) The Incredibles 2: TheIMAXExperience(Walt Disney Studios, June 2018);
(20) Jurassic World: Fallen Kingdom: The IMAXExperience (Universal Pictures, June 2018);
(21) Ant-Man and the Wasp: The IMAXExperience (Walt Disney Studios, June 2018, US markets - July 2018);
(22) Mission Impossible: Fallout: TheIMAXExperience(Paramount Pictures, July 2018);
(23) Predator: The IMAXExperience (20^thCentury Fox, August 2018);
(24) The Darkest Minds: The IMAXExperience (20^thCentury Fox, September 2018);
(25) Robin Hood: TheIMAXExperience(Lionsgate Entertainment Inc., September 2018);
(26) Venom: TheIMAXExperience(Sony Pictures Entertainment, October 2018);
(27) X-Men: Dark Phoenix: The IMAXExperience (20^thCentury Fox, November 2018);
(28) Fantastic Beasts: The Crimes of Grindelwald: TheIMAXExperience (Warner Bros. Pictures, November 2018);
(29) Ralph Breaks the Internet: Wreck-It-Ralph 2: The IMAXExperience(Walt Disney Studios, December 2018, select markets);
(30) Alita: Battle Angel: AnIMAXExperience(20^thCentury Fox, December 2018); and
(31) Aquaman: The IMAXExperience (Warner Bros. Pictures, December 2018).

In addition, the Company in conjunction with Panda Productionswill be releasing an IMAXoriginal production, Pandas, in April 2018.

IMAX CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
In accordance with United States Generally Accepted Accounting Principles
(In thousands of U.S. dollars, except per share amounts)

		Three Months				Years Ended
		Ended December 31,				Ended December 31,
		2017		2016		2017		2016
Revenues
Equipment and product sales		$	39,700	$	41,318	$	103,294	$	122,382
Services			62,330		44,009		195,594		166,862
Rentals			21,138		18,777		72,281		77,315
Finance income			2,384		2,509		9,598		9,500
Other			-		300		-		1,275
			125,552		106,913		380,767		377,334
Costs and expenses applicable to revenues
Equipment and product sales			15,819		20,605		48,172		69,680
Services			40,951		25,263		120,629		83,780
Rentals			8,634		5,719		26,720		21,086
Other			-		-		-		110
			65,404		51,587		195,521		174,656
Gross margin			60,148		55,326		185,246		202,678
Selling, general and administrative expenses			25,329		32,039		110,400		124,745
	(including share-based compensation expense of $4.2 million and $20.4 million for the three months and year ended December 31, 2017, respectively (2016 - expense of $8.0 million and $30.5 million, respectively))
Research and development			6,217		4,712		20,855		16,315
Amortization of intangibles			837		542		3,019		2,079
Receivable provisions, net of recoveries			559		323		2,647		954
(Impairment recoveries) asset impairments			-		(1,000)		1,225		417
Exit costs, restructuring charges and associated impairments			2,479		-		16,174		-
Income from operations			24,727		18,710		30,926		58,168
Interest income			266		273		1,027		1,490
Interest expense			(524)		(480)		(1,942)		(1,805)
Income from operations before income taxes			24,469		18,503		30,011		57,853
Provision for income taxes			(15,905)		(6,577)		(16,790)		(16,212)
Gain (loss) from equity-accounted investments, net of tax			134		150		(703)		(2,321)
Net income			8,698		12,076		12,518		39,320
Less: net income attributable to non-controlling interests			(3,867)		(3,131)		(10,174)		(10,532)
Net income attributable to common shareholders		$	4,831	$	8,945	$	2,344	$	28,788

Net income per share attributable to common shareholders - basic and diluted:
Net income per share – basic		$	0.08	$	0.14	$	0.04	$	0.43
Net income per share – diluted		$	0.08	$	0.13	$	0.04	$	0.42

Weighted average number of shares outstanding (000's):
	Basic		64,658		66,152		65,380		67,575
	Fully Diluted		64,790		66,950		65,540		68,263

Additional Disclosure:
Depreciation and amortization⁽¹⁾		$	27,040	$	12,306	$	66,807	$	46,485

(1) Includes $0.2 million and $0.6 million of amortization of deferred financing costs charged to interest expense for the three months and year ended December 31, 2017 (2016 - $0.1 million and $0.5 million, respectively).

IMAX CORPORATION
CONSOLIDATED BALANCE SHEETS
In accordance with United States Generally Accepted Accounting Principles
(In thousands of U.S. dollars)



	As at December 31,
	2017		2016
Assets
Cash and cash equivalents	$	158,725	$	204,759
Accounts receivable, net of allowance for doubtful accounts of $1,613 (December 31, 2016 — $1,250)		130,546		96,349
Financing receivables		129,494		122,125
Inventories		30,788		42,121
Prepaid expenses		7,549		6,626
Film assets		5,026		16,522
Property, plant and equipment		276,781		245,415
Other assets		26,757		33,195
Deferred income taxes		30,708		20,779
Other intangible assets		31,211		30,416
Goodwill		39,027		39,027
Total assets	$	866,612	$	857,334

Liabilities
Bank indebtedness	$	25,357	$	27,316
Accounts payable		24,235		19,990
Accrued and other liabilities		100,140		93,208
Deferred revenue		113,270		90,266
Total liabilities		263,002		230,780

Commitments and contingencies

Non-controlling interests		1,353		4,980

Shareholders' equity
Capital stock common shares — no par value. Authorized — unlimited number.
64,902,201 — issued and 64,695,550 — outstanding (December 31, 2016 — 66,224,467 — issued and 66,159,902 — outstanding)		445,797		439,213
Less: Treasury stock, 206,651 shares at cost (December 31, 2016 — 64,565)		(5,133)		(1,939)
Other equity		175,300		177,304
Accumulated deficit		(87,592)		(47,366)
Accumulated other comprehensive loss		(626)		(5,200)
Total shareholders' equity attributable to common shareholders		527,746		562,012
Non-controlling interests		74,511		59,562
Total shareholders' equity		602,257		621,574
Total liabilities and shareholders' equity	$	866,612	$	857,334

IMAX CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
In accordance with United States Generally Accepted Accounting Principles
(In thousands of U.S. dollars)
		Years Ended December 31,
		2017		2016

Cash provided by (used in):
Operating Activities
Net income		$	12,518	$	39,320
Adjustments to reconcile net income to cash from operations:
	Depreciation and amortization		66,807		46,485
	Write-downs, net of recoveries		29,568		5,940
	Change in deferred income taxes		(4,017)		4,940
	Stock and other non-cash compensation		24,075		31,586
	Unrealized foreign currency exchange (gain) loss		(502)		462
	Loss from equity-accounted investments		306		2,685
	Gain on non-cash contribution to equity-accounted investees		397		(364)
Investment in film assets			(34,645)		(22,308)
Changes in other non-cash operating assets and liabilities			(9,141)		(30,874)
	Net cash provided by operating activities		85,366		77,872

Investing Activities
Purchase of property, plant and equipment			(24,143)		(15,278)
Investment in joint revenue sharing equipment			(42,634)		(42,910)
Investment in new business ventures			(1,606)		(1,911)
Acquisition of other intangible assets			(5,214)		(4,787)
	Net cash used in investing activities		(73,597)		(64,886)

Financing Activities
Repayment of bank indebtedness			(2,000)		(2,000)
Repurchase of common shares			(46,140)		(116,518)
Settlement of restricted share units and options			(20,331)		(17,889)
Exercise of stock options			16,668		13,113
Treasury stock repurchased for future settlement of restricted share units			(5,133)		(1,996)
Taxes withheld and paid on employee stock awards vested			(600)		(528)
Taxes paid on secondary sales and repatriation dividend			-		(2,443)
Issuance of subsidiary shares to non-controlling interests - private offering			-		2,479
	Net cash used in financing activities		(57,536)		(125,782)

Effects of exchange rate changes on cash			(267)		106

Decrease in cash and cash equivalents during year			(46,034)		(112,690)

Cash and cash equivalents, beginning of year			204,759		317,449

Cash and cash equivalents, end of year		$	158,725	$	204,759

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 IMAXsystems 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 IMAXtheaters that the Company owns and operates, camera rentals and other miscellaneous items.

			Three Months				Years Ended
			Ended December 31,				Ended December 31,
				2017		2016	2017		2016
Revenue⁽¹⁾
Network Business
	IMAX DMR		$	31,717	$	27,636	$	108,853	$	106,403
	Joint revenue sharing arrangements - contingent rent			20,741		18,506		70,444		73,500
	IMAX systems - contingent rent			1,317		1,466		3,890		4,644
				53,775		47,608		183,187		184,547
Theater Business
	IMAX systems
	Sales and sales-type leases			31,675		31,002		79,853		89,525
	Ongoing fees and finance income			2,650		2,551		10,494		11,359
	Joint revenue sharing arrangements – fixed fees			5,582		5,967		10,118		17,913
	Theater system maintenance			11,924		10,399		45,383		40,430
	Other theater			3,696		3,100		9,145		10,888
				55,527		53,019		154,993		170,115

New Business				13,014		25		24,522		626
Other
	Film distribution and post-production			1,803		4,346		13,172		14,127
	Other			1,433		1,915		4,893		7,919
				3,236		6,261		18,065		22,046
Total			$	125,552	$	106,913	$	380,767	$	377,334

Gross margin
Network Business
	IMAX DMR		$	19,211	$	16,798	$	71,789	$	69,196
	Joint revenue sharing arrangements – contingent rent			14,066		13,085		47,337		54,705
	IMAX systems – contingent rent			1,317		1,466		3,890		4,644
				34,594		31,349		123,016		128,545
Theater Business
	IMAX systems
	Sales and sales-type leases			19,449		17,993		47,639		44,788
	Ongoing fees and finance income			2,513		2,381		10,095		10,660
		Joint revenue sharing arrangements – fixed fees		1,462		2,036		2,349		5,132
Theater system maintenance				4,969		3,453		18,275		13,660
	Other theater			883		937		1,965		1,930
				29,276		26,800		80,323		76,170
New Business				(2,744)		(1,338)		(16,176)		(2,199)
Other
	Film distribution and post-production			(744)		(2,210)		(1,006)		(180)
	Other			(234)		725		(911)		342
				(978)		(1,485)		(1,917)		162
Total			$	60,148	$	55,326	$	185,246	$	202,678

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, adjusted net income attributable to common shareholders per diluted share, EBITDA, Adjusted EBITDA per Credit Facility and Adjusted EBITDA per Credit Facility excluding "Marvel's Inhumans" 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 stock-based compensation (net of any related tax impact) and non-recurring charges 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. Without the presentation of these adjusted presentation measures the Company believes it 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, its stock-based and non-recurring charges 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 per Credit Facility" or "Adjusted EBITDA per Credit Facility excluding Marvel's Inhumans", as the credit agreement includes additional adjustments beyond interest, taxes, depreciation and amortization). Adjusted EBITDA per Credit Facility and Adjusted EBITDA per Credit Facility excluding "Marvel's Inhumans" (each as defined below) should not be construed as substitutes for net income, operating income or other operating performance measures that are determined in accordance with U.S. GAAP. The Company believes that EBITDA, Adjusted EBITDA per Credit Facility and Adjusted EBITDA per Credit Facility excluding Marvel's Inhumansare relevant and useful information widely used by analysts, investors and other interested parties in the Company's industry.

		Quarter Ended			Year Ended			Year Ended
		December 31, 2017			December 31, 2017		⁽¹⁾	December 31, 2016
*(In thousands of U.S. Dollars)*
Net income		$	8,698		$	12,518		$	39,320
Add (subtract):
	Provision for income taxes		15,905			16,790			16,212
	Interest expense, net of interest income		258			915			315
	Depreciation and amortization, including film asset amortization		26,900			66,245			45,953
	EBITDA		51,761			96,468			101,800
	Exit costs, restructuring charges and associated impairments		2,479			16,174
	Stock and other non-cash compensation		4,802			23,718			31,586
	Write-downs, net of recoveries including asset impairments and receivable provisions		3,948			24,015			5,940
	(Gain) loss from equity accounted investments		(134)			703			2,321
	Adjusted EBITDA before non-controlling interests		62,856			161,078			141,647
	Adjusted EBITDA attributable to non-controlling interests⁽²⁾		(7,055)			(22,927)			(19,743)
	Adjusted EBITDA per Credit Facility	$	55,801		$	138,151*		$	121,904
	Adjusted EBITDA per Credit Facility, excluding impact from "Marvel's Inhumans"	$	42,361		$	126,158*		$	121,904
	Adjusted revenues attributable to common shareholders ⁽³⁾	$	113,285		$	340,460		$	339,868
	Adjusted EBITDA margin, excluding impact from "Marvel's Inhumans"		37.4	%		37.1	%		35.9	%

*	Adjusted EBITDA per Credit Facility of $138.2 million includes the impact of the Company's investment in "Marvel's Inhumans", which resulted in a $13.0 million loss. However, as permitted by the Credit Facility, this loss was offset by addbacks of $13.3 million and $11.7 million for amortization and impairment charges, respectively, relating to the investment, the net effect of which was to increase Adjusted EBITDA per Credit Facility by $12.0 million. 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 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)		Quarter Ended				Year Ended				Year Ended
		December 31, 2017				December 31, 2017				December 31, 2016
	Total revenues			$	125,552			$	380,767			$	377,334
	Greater China revenues	$	38,339			$	126,474			$	118,532
	Non-controlling interest ownership percentage⁽⁴⁾		32.00%				31.87%				31.61%
	Deduction for non-controlling interest share of revenues				(12,268)				(40,307)				(37,466)
	Adjusted revenues attributable to common shareholders			$	113,285			$	340,460			$	339,868
(4)	Weighted average ownership percentage for change in non-controlling interest share

IMAX CORPORATION
OTHER INFORMATION
(in thousands of U.S. dollars, except per share amounts)

Adjusted Net Income and Adjusted Diluted Per Share Calculations – Quarter Ended December 31, 2017vs. 2016:

The Company reported net income of $8.7 millionor $0.13 per basic and diluted share for the quarter ended December 31, 2017 as compared to net income of $12.1 million, or $0.18per basic and diluted share for the quarter ended December 31, 2016.

Net income for the quarter ended December 31, 2017 includes a $4.9 million charge or $0.08 per diluted share (2016 — $8.0 millionor $0.13 per diluted share) for stock-based compensation and a $2.5 millioncharge, or $0.04per diluted share for exit costs, restructuring charges and associated impairments (2016 - $nil). In the quarter ended December 31, 2017, the Company also recognized a $9.3 million, or $0.14per diluted share, non-recurring tax charge as the Company re-measured its deferred tax assets and liabilities as of the date of enactment of the recently passed U.S Tax Act.

Adjusted net income, which consists of net income excluding the impact of stock-based compensation, exit costs, restructuring charges and associated impairments, the related tax impact of these adjustments, and tax charge from the provisional re-measurement of U.S. deferred tax assets and liabilities given changes enacted by the Tax Act was $25.7 millionor $0.40per diluted share for the quarter ended December 31, 2017as compared to adjusted net income of $17.7 millionor $0.27per diluted share for the quarter ended December 31, 2016.

The Company reported net income attributable to common shareholders of $4.8 million, or $0.08per basic and diluted share for the quarter ended December 31, 2017(2016 — $8.9 million, or $0.14per basic and $0.13per 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, the related tax impact of these adjustments, and tax charge from the provisional re-measurement of U.S. deferred tax assets and liabilities given changes enacted by the Tax Act, was $21.8 millionor $0.34per diluted share for the quarter ended December 31, 2017as compared to adjusted net income attributable to common shareholders of $14.5 millionor $0.22per diluted share for the quarter ended December 31, 2016.

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 December 31,
		2017				2016
		Net Income		Diluted EPS		Net Income		Diluted EPS
Reported net income		$	8,698	$	0.13	$	12,076	$	0.18	⁽¹⁾
Adjustments:
	Stock-based compensation		4,857		0.08		8,038		0.13
	Exit costs, restructuring charges and associated impairments		2,479		0.04		-		-
	Tax impact on items listed above		360		0.01		(2,389)		(0.04)
	Impact of enactment of U.S. Tax Act		9,323		0.14		-		-
Adjusted net income			25,717		0.40		17,725		0.27	⁽¹⁾
	Net income attributable to non-controlling interests		(3,867)		(0.06)		(3,131)		(0.05)
	Stock-based compensation (net of tax of less than $0.1
	million and less than $0.1 million, respectively)		(76)		-		(112)		-
	Exit costs, restructuring charges and associated impairments
	(net of tax of $nil)		(2)		-		-		-
Adjusted net income attributable to common shareholders		$	21,772	$	0.34	$	14,482	$	0.22	⁽¹⁾

Weighted average diluted shares outstanding					64,790				66,950

Adjusted Net Income and Adjusted Diluted Per Share Calculations – Year Ended December 31, 2017vs. 2016:

The Company reported net income of $12.5 millionor $0.19 per basic and diluted share for the year ended December 31, 2017 as compared to net income of $39.3 million, or $0.58per basic and diluted share, for the year ended December 31, 2016.

Net income for the year ended December 31, 2017 includes a $22.7 million charge or $0.35 per diluted share (2016 — $30.5 million or $0.45 per diluted share) for stock-based compensation and a $16.2 millioncharge, or $0.25per diluted share for exit costs, restructuring charges and associated impairments (2016 - $nil). In 2017, the Company also recognized a $9.3 million, or $0.14per diluted share, non-recurring tax charge as the Company re-measured its deferred tax assets and liabilities as of the date of enactment of the recently passed Tax Act.

Adjusted net income, which consists of net income excluding the impact of stock-based compensation, exit costs, restructuring charges and associated impairments, the related tax impact of these adjustments, and tax charge from the provisional re-remeasurement of U.S. deferred tax assets and liabilities given changes enacted by the Tax Act, was $51.5 millionor $0.79per diluted share for the year ended December 31, 2017as compared to adjusted net income of $61.1 millionor $0.90per diluted share for the year ended December 31, 2016.

The Company reported net income attributable to common shareholders of $2.3 million, or $0.04per basic and diluted share for the year ended December 31, 2017(2016 — $28.8 million, or $0.43per basic share and $0.42per 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, the related tax impact of these adjustments, and tax charge from the provisional re-remeasurement of U.S. deferred tax assets and liabilities given changes enacted by the Tax Act, was $40.5 millionor $0.62per diluted share for the year ended December 31, 2017as compared to adjusted net income attributable to common shareholders of $50.0 millionor $0.73per diluted share for the year ended December 31, 2016.

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:

		Year Ended December 31,
		2017				2016
		Net Income		Diluted EPS		Net Income		Diluted EPS
Reported net income		$	12,518	$	0.19	$	39,320	$	0.58
Adjustments:
	Stock-based compensation		22,653		0.35		30,523		0.45
	Exit costs, restructuring charges and associated impairments		16,174		0.25		-		-
	Tax impact on items listed above		(9,218)		(0.14)		(8,783)		(0.13)
	Impact of enactment of U.S. Tax Act		9,323		0.14		-		-
Adjusted net income			51,450		0.79		61,060		0.90
	Net income attributable to non-controlling interests		(10,174)		(0.16)		(10,532)		(0.16)
	Stock-based compensation (net of tax of $0.2 million,
	and $0.2 million, respectively)		(620)		(0.01)		(533)		(0.01)
	Exit costs, restructuring charges and associated impairments
	(net of tax of $0.1 million)		(181)		-		-		-
Adjusted net income attributable to common shareholders		$	40,475	$	0.62	$	49,995	$	0.73

Weighted average diluted shares outstanding					65,540				68,263

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		For the
	Three months ended		Twelve months ended
	December 31, 2017		December 31, 2017

Net cash provided by operating activities	$	21,947	$	85,366
Net cash used in investing activities		(16,264)		(73,597)

Net cash flow	$	5,683	$	11,769

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SOURCE IMAX Corporation