IMAX Corporation Reports Second Quarter Results
HIGHLIGHTS * IMAX reports second quarter net earnings of $0.09 per share versus losses of $0.37 per share in the second quarter of 2001 * Company remains on track for a return to profitability for full year 2002 * IMAX(R) DMR(TM) to premiere September 20th
IMAX Corporation (Nasdaq: IMAX; TSX: IMX) today reported net earnings of $0.09 per share for the second quarter ended June 30, 2002, versus net losses of $0.37 per share in the second quarter of 2001. For the six-months ending June 30, 2002, the Company reported net earnings of $0.41 per share versus net losses of $0.82 per share for the comparable period of 2001."We are pleased with our second quarter results which mark another step in completing the financial transformation of the Company and our return to profitability," said IMAX Co-Chief Executive Officers Richard L. Gelfond and Bradley J. Wechsler. "The trend of improving performance at IMAX(R) theatres that began in the first quarter is continuing with strong attendance to IMAX's SPACE STATION, which exceeded our expectations and has already grossed more than $21 million in just 16 weeks. A number of recent strong new theatre openings, including our first two theatres in The People's Republic of China and a number of new theatres in Europe, coupled with an increased level of interest among potential IMAX theatre customers makes us optimistic about IMAX's long term future."
IMAX will introduce its new IMAX DMR technology on September 20th with the release of Apollo 13: The IMAX Experience. The IMAX DMR technology allows the Company to convert virtually any live-action 35mm film into IMAX's 15/70 format at an approximate cost of $2 to $4 million per picture.
The Company recently announced a new relationship with Creative Artists Agency (CAA) to accelerate the availability of event Hollywood films for IMAX theatres. Because of its strong relationships with key filmmakers and studio executives, CAA should facilitate IMAX's access to important film properties for day-and-date releases using IMAX's DMR technology.
Messrs. Gelfond and Wechsler continued, "We are extremely excited about the upcoming premiere of Apollo 13: The IMAX Experience and the introduction of IMAX DMR. Building on the box office success of The Walt Disney Company's Fantasia 2000: The IMAX Experience and Beauty and the Beast, the launch of Apollo 13 is the next important step in positioning IMAX as the newest release window for Hollywood event films. Thus far, the response to both Apollo 13 and the DMR process has been extremely positive in the filmmaking community. The addition of CAA as a strategic partner in securing these event films will help to accelerate the process of bringing these key films to IMAX theatres."
In the second quarter, the Company's revenues were $38.9 million as compared to $32.8 million in the prior year. Systems revenue was $20.7 million versus $22.0 million in the prior year as the Company recognized revenues on four theatre systems in the second quarter of 2002 versus five theatre systems in the second quarter of 2001. Film revenue was $13.2 million versus $7.6 million due primarily to the strong performance of SPACE STATION. Other revenue was $4.9 million as compared to $3.1 million. The Company reported net earnings of $0.09 per share for the second quarter on a fully diluted basis compared to net losses of $0.37 per share in the second quarter of 2001. The Company signed contracts for two IMAX theatre systems in the second quarter. The Company's sales backlog was approximately $145.5 million at June 30, 2002, representing contracts for 55 theatre systems.
For the six-month period ended June 30, 2002, the Company's revenues were $70.1 million as compared to $61.5 million in the prior-year period. Systems revenue was $41.1 million versus $38.3 million in the prior-year period as the Company recognized revenues on 10 theatre systems as compared to eight theatre systems in the prior-year period. Film revenue was $19.3 million compared to $16.9 million. Other revenue was $9.8 million versus $6.3 million in part due to the strong performance of Beauty and the Beast and SPACE STATION in the Company's owned and operated theatres. For the six months ended June 30, 2002, the Company reported net earnings of $0.41 per share on a fully diluted basis. The Company's comparative results for the first six months of 2001 were losses of $0.82 per share.
Founded in 1967, IMAX Corporation is one of the world's leading entertainment technology companies. IMAX's businesses include the world's best cinematic presentations together with IMAX, IMAX 3D and the development of the highest quality digital production and presentation. IMAX has developed revolutionary technology called IMAX(R) DMR(TM) (Digital Re-mastering) that makes it possible for virtually any 35mm film to be transformed into the unparalleled image and sound quality of The IMAX Experience(R). The IMAX brand is recognized throughout the world for extraordinary and immersive family experiences. As of June 2002, there were more than 225 IMAX theatres operating in 30 countries. More than 700 million people have seen an IMAX presentation since the medium premiered in 1970. IMAX(R) is a registered trademark of IMAX Corporation. More information on the Company can be found at http://www.imax.com.
This press release contains forward-looking statements that are based on management 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 the timing of theatre system signings and installations, the mix of theatre systems shipped, the timing of the recognition of revenues and expenses on film production and distribution agreements, the viability of new businesses and technologies and fluctuations in foreign currency and in the large format and general commercial exhibition market. These factors and other risks and uncertainties are discussed in the Company's Annual Report on Form 10-K for the year ended December 31, 2001 and in the subsequent reports filed by the Company with the Securities and Exchange Commission.
IMAX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Amounts in Accordance with United States
Generally Accepted Accounting Principles
(in thousands of U.S. dollars, except per share data)
(unaudited)
Three months Six months
ended ended
June 30, June 30,
2002 2001 2002 2001
Revenue
IMAX systems $20,712 $22,048 $41,097 $38,326
Films 13,197 7,608 19,264 16,864
Other 4,942 3,129 9,765 6,274
38,851 32,785 70,126 61,464
Costs of goods and services 20,162 21,090 38,030 39,992
Gross margin 18,689 11,695 32,096 21,472
Selling, general and
administrative expenses 11,000 14,473 20,842 24,051
Research and development 597 1,395 801 2,590
Amortization of intangibles 340 758 728 1,510
Loss from equity-accounted investees 23 84 79 177
Restructuring costs -- 1,918 -- 12,860
Earnings (loss) from operations 6,729 (6,933) 9,646 (19,716)
Interest income 104 221 189 565
Interest expense (4,430) (5,539) (8,749) (10,842)
Foreign exchange gain (loss) 868 453 508 (1,462)
Earnings (loss) from continuing
operations before income taxes 3,271 (11,798) 1,594 (31,455)
Recovery of income taxes -- 2,903 3,682 9,801
Net earnings (loss) from
continuing operations 3,271 (8,895) 5,276 (21,654)
Net loss from discontinued operations -- (2,529) -- (3,541)
Net earnings (loss) before
extraordinary item 3,271 (11,424) 5,276 (25,195)
Extraordinary gain (loss) on
repurchase of convertible subordinated
notes, net of income tax expense
(recovery) of ($133) and $3,549 (236) -- 8,306 --
Net earnings (loss) $3,035 $(11,424) $13,582 $(25,195)
Earnings (loss) per share data:
Earnings (loss) per share
- basic and diluted:
Net earnings (loss) from
continuing operations $0.10 $(0.29) $0.16 $(0.70)
Net loss from discontinued
operations $ -- $(0.08) $ -- $(0.12)
Net earnings (loss) before
extraordinary item $0.10 $(0.37) $0.16 $(0.82)
Extraordinary item $(0.01) $ -- $0.25 $ --
Net earnings (loss) $0.09 $(0.37) $0.41 $(0.82)
Weighted average number of
shares outstanding (000's)
Basic 32,925 31,127 32,919 30,620
Diluted 33,728 31,127 33,414 30,620
SOURCE IMAX Corporation
CONTACT:
Media - Romi Schutzer of IMAX Corporation, New York,
+1-212-821-0144, [email protected]; or Analysts - Stephen G. Abraham of IMAX
Corporation, New York, +1-212-821-0140, [email protected]; or Financial Media
- Whit Clay of Sloane & Company, New York, +1-212-446-1864,
[email protected]; or Entertainment Media - Al Newman of Newman & Company,
Los Angeles, +1-818-784-2130, [email protected]
/Company News On-Call: http://www.prnewswire.com/comp/103201.html
URL: http://www.imax.com