HIGHLIGHTS
- IMAX signs contracts for 99 theatres in the third quarter, bringing year-to-date signings to 158
- IMAX expands backlog to historical high of 356 theatres, a 25% increase year-over-year
- Third quarter box office of $133 million brings year-to-date box office to $482 million, a 3% increase year-over-year

NEW YORK, Oct. 24, 2013/PRNewswire/ --IMAX Corporation(NYSE:IMAX; TSX:IMX)today reported third quarter 2013 revenues of $51.7 million, adjusted EBITDA as calculated in accordance with the Company's credit facility of $14.8 million, adjusted net income of $4.4 million, or $0.06per diluted share, and reported net income of $1.6 million, or $0.02per diluted share.

(Logo: http://photos.prnewswire.com/prnh/20111107/MM01969LOGO)

"We continued to make significant progress this quarter toward our key strategic initiatives, including strong signings, controlling SG&A and continued advancements on differentiation," stated Richard L. Gelfond, IMAXChief Executive Officer. "Looking ahead, our great start to Q4, including IMAX'sstrong performance on Gravity and Stalingrad, reminds us of the importance of assessing our portfolio of films on an annual basis, which we believe is a relatively predictable driver of box office performance over the long-term."

Network Growth Update

The total IMAX® theatre network consisted of 785 systems as of September 30, 2013, of which 653 were in commercial multiplexes. There were 356 theatre systems in backlog as of September 30, 2013, compared to 285 theatre systems in backlog as of September 30, 2012. IMAXhas signed contracts for 158 theatres year-to-date, already surpassing the 142 signings for all of 2012. Neither the backlog number, nor the YTD signings, include the 80 additional theatres still optional under the Wanda contract. For a breakdown of theatre system signings, installations, network and backlog by type, please see the end of this press release.

In the third quarter of 2013, the Company signed contracts for 99 theatre systems, of which 88 were in new theatre locations and 11 were a combination of signings for laser systems and upgrades of certain of the Company's film theatres to digital systems in existing theatre locations. In the quarter, the Company installed 28 theatre systems, of which 19 were in new theatre locations.

"Strong third quarter signings, historic high backlog and many fourth quarter deals either signed or in discussions, provide increased visibility into strong network growth over the long-term," Gelfond continued, "This unit growth, along with our ongoing focus on controlling costs and optimizing our film portfolio, give us confidence in our operating leverage and cash flow potential for the long-term."

Third-Quarter Segment Results

Revenue from sales and sales-type leases was $6.4 millionin the third quarter of 2013, compared to $21.9 millionin the third quarter of 2012, primarily reflecting the installation of 5 full, new theatre systems under sales and sales-type lease arrangements in the most recent third quarter, compared to the 14 sales and sales-type theatres the Company installed in the third quarter of 2012. The Company also installed 1 operating lease in a new location. In addition there were 9 digital system upgrades in existing locations in the third quarter of 2013, compared to 5 upgrades in the third quarter of 2012.
Revenue from joint revenue-sharing arrangements was $12.0 millionin the quarter, compared to $13.2 millionin the prior-year period. During the quarter, the Company installed 13 new theatres under joint revenue-sharing arrangements, compared to 14 in the year-ago period. The Company had 351 theatres operating under joint revenue-sharing arrangements as of September 30, 2013, as compared to 287 theatres one year prior.
Production and IMAX DMR® (Digital Re-Mastering) revenues were $14.5 millionin the third quarter of 2013, compared to $25.2 millionin the third quarter of 2012. Gross box office from DMR titles was $132.5 millionin the third quarter of 2013, compared to $173.2 millionin the prior-year period. The average global DMR box office per screen in the third quarter of 2013 was $207,500compared to $312,000in the prior-year period.

Conference Call

The Company will host a conference call today at 8:30 AM ETto discuss its third quarter 2013 financial results. To access the call via telephone, interested parties should dial (800) 711-9538 approximately 5 to 10 minutes before it begins. International callers should dial (416) 640-5925. The participant passcode for the call is 1695965. This call is also being webcast by Thomson Financialand can be accessed on the 'Investor Relations' section of www.imax.com. A replay of the call will be available via webcast on the 'Investor Relations' section of www.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 1695965.

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 IMAXtheatres 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 offices in London, Tokyo, Shanghaiand Beijing. As of September 30, 2013, there were 785 IMAXtheatres (653 commercial multiplexes, 19 commercial destinations and 113 institutions) in 55 countries.

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, general economic, market or business conditions; the opportunities (or lack thereof) that may be presented to and pursued by the Company; the performance of IMAX DMR films; competitive actions by other companies; conditions in the in-home and out-of-home entertainment industries; the signing of theater system agreements; changes in laws or regulations; conditions, changes and developments in the commercial exhibition industry; the failure to convert theater system backlog into revenue; 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 failure to respond to change and advancements in digital technology; risks related to the acquisition of AMC Entertainment Holdings, Inc.by Dalian Wanda Group Co., Ltd.; risks related to new business initiatives; the potential impact of increased competition in the markets within which the Company operates; risks related to the Company's inability to protect the Company's intellectual property; risks related to Eastman Kodakbankruptcy and the possibility of constrained film supply; risks related to the Company's implementation of a new enterprise resource planning system; risks related to the Company's prior restatements and the related litigation; 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:

IMAX Corporation, New York

Teri Loxam

212-821-0100

tloxam@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

Signings and Installations
Sep. 30, 2013
			Three Months
			Ended Sep. 30,
	Theatre Signings:		2013		2012
		Full new sales and sales-type lease arrangements	6		4
		New joint revenue sharing arrangements	82		28
	Total new theatres		88		32

		Upgrades of IMAX theatre systems	11	⁽¹⁾	9	⁽²⁾
	Total Theatre Signings		99		41

			Three Months
			Ended Sep. 30,
	Theatre Installations:		2013		2012
		Full new sales and sales-type lease arrangements	6	⁽³⁾	14
		New joint revenue sharing arrangements	13		14
	Total new theatres		19		28

		Upgrades of IMAX theatre systems	9	⁽¹⁾	5
	Total Theatre Installations		28		33

			As of Sep. 30,
	Theatre Backlog:		2013		2012
		New sales and sales-type lease arrangements	142		133
		New joint revenue sharing arrangements	191		149
	Total new theatres		333		282

		Upgrades of IMAX theatre systems	23		3
	Total Theatres in Backlog		356	⁽⁴⁾	285	⁽⁵⁾

			As of Sep. 30,
	Theatre Network:		2013		2012
	Commercial Multiplex Theatres:
		Sales and sales-type lease arrangements	302		269
		Joint revenue sharing arrangements	351		287
	Total Commercial Multiplex Theatres		653		556

	Commercial Destination Theatres		19		20
	Institutional Theatres		113		113
	Total IMAX Theatre Network		785		689

(1) Includes upgrades to xenon-based digital systems under short-term operating lease arrangements (4 signings, 3 installations). (2) Includes 3 IMAX theaters acquired from another existing customer that has been operating under a joint revenue sharing arrangement. These theaters were purchased from the Company under a sales arrangement. (3) Includes one full xenon-based digital system under a short-term operating lease arrangement. (4) Includes 23 upgrades to a digital theater system, in an existing IMAX theater location (5 xenon, 18 laser of which 3 are under joint revenue sharing arrangements). (5) Includes 3 upgrades to a digital theater system, in an existing IMAX theater location (2 xenon, 1 laser).

Additional Information (continued)

2013 DMR Films Announced to Date:

To date, IMAXhas announced 37 titles to be released in 2013. The Company released 35 titles in 2012. The Company remains in discussions with virtually every major studio regarding future titles and expects the total number of titles in 2013 to be similar to that in 2012.

The Grandmaster: The IMAXExperience (Jet Tone Films and Sil-Metropole Organization, January 2013, Chinaonly);
Hansel & Gretel: Witch Hunters: An IMAX3D Experience (Paramount Pictures, January 2013);
Journey to the West: Conquering the Demons: An IMAX3DExperience (Bingo Movie Development Ltd, February 2013, Chinaonly);
Top Gun: An IMAX3DExperience (Paramount Pictures, February 2013);
A Good Day to Die Hard: The IMAXExperience (Twentieth Century Fox, February 2013);
Jack the Giant Slayer: An IMAX3DExperience (Warner Bros., March 2013);
Oz: The Great and Powerful: An IMAX3DExperience (Walt Disney Pictures, March 2013);
G.I. Joe: Retaliation: An IMAX3D Experience (Paramount Pictures, March 2013);
Dragon Ball Z: Battle of the Gods: An IMAX3DExperience (Toei Animation Company, March 2013, Japanonly);
Jurassic Park: An IMAX3DExperience(Universal Pictures, April 2013);
Oblivion: The IMAXExperience (Universal Pictures, April 2013);
Iron Man 3: An IMAX3D Experience (Walt Disney Pictures, May 2013);
Star Trek: Into Darkness: An IMAX3DExperience (Paramount Pictures, May 2013);
Fast & Furious 6: The IMAXExperience(Universal, May 2013, international only);
After Earth: The IMAXExperience(Sony, May 2013);
Man of Steel: The IMAXExperience (Warner Bros., June 2013);
World War Z: An IMAX3D Experience (Paramount Pictures, June 2013, international only);
Despicable Me 2: An IMAX3D Experience (Universal Pictures, July 2013, international only);
White House Down: The IMAX Experience (Colombia Pictures and Sony Pictures, July 2013; international only);
Man of Tai Chi: The IMAX Experience (China Film Group, Wanda Groupand Village Roadshow Pictures, July 2013; Chinaonly);
Pacific Rim: An IMAX3DExperience (Warner Bros., July 2013);
The Lone Ranger : The IMAXExperience(Walt Disney Pictures, August 2013; international only);
Elysium: The IMAXExperience(Sony, August 2013);
Riddick Sequel: The IMAXExperience (Universal Pictures, September 2013);
Mortal Instruments: City of Bones: The IMAXExperience(Sony, August 2013; domestic only);
The Wizard of Oz: An IMAX3DExperience (Warner Bros., September 2013; domestic only);
Metallica Through the Never: AnIMAX3D Experience(Picturehouse, September 2013);
Young Detective Dee: The IMAXExperience (Huayi Brothers, September 2013; Chinaonly);
Stalingrad: An IMAX3DExperience (AR Films, October 2013; Russiaand the CIS only );
Gravity: An IMAX3DExperience (Warner Bros., October 2013);
Captain Phillips: The IMAXExperience (Colombia Pictures and Sony Pictures, October 2013);
The Young and Prodigious: T.S. Spivet: An IMAX3DExperience (Gaumont, October 2013; Franceonly);
Ender's Game: The IMAXExperience (Lionsgate, November 2013);
Thor: The Dark World: An IMAX3D Experience (Walt Disney Pictures, November 2013; international only);
The Hunger Games: Catching Fire: The IMAXExperience (Lionsgate, November 2013);
The Hobbit: The Desolation of Smaug: An IMAX3DExperience (Warner Bros., December 2013); and
Dhoom 3: The IMAXExperience(Yash Raj Films, 2013, Indiaonly).

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				Nine Months
		Ended September 30,				Ended September 30,
		2013		2012*		2013		2012*
Revenues
Equipment and product sales		$	9,623	$	24,327	$	40,649	$	55,756
Services			29,061		40,316		98,019		102,312
Rentals			10,987		14,013		38,782		42,912
Finance income			2,071		2,055		6,079		5,537
Other			-		-		375		-
			51,742		80,711		183,904		206,517
Costs and expenses applicable to revenues
Equipment and product sales			4,086		10,652		20,561		27,727
Services			16,339		21,107		54,783		55,378
Rentals			4,059		4,202		11,687		12,968
Other			-		-		-		-
			24,484		35,961		87,031		96,073
Gross margin			27,258		44,750		96,873		110,444
Selling, general and administrative expenses			19,778		19,432		59,364		59,032
	(including share-based compensation expense of $2.8 million and $8.8 million for the three and nine months ended September 30, 2013, respectively (2012 - expense of $2.8 million and $10.3 million, respectively))
Research and development			3,974		2,528		11,267		7,623
Amortization of intangibles			409		166		1,146		532
Receivable provision, net of recoveries			224		241		279		829
Impairment of available-for-sale investment			-		-		-		150
Income from operations			2,873		22,383		24,817		42,278
Interest income			14		22		39		73
Interest expense			(315)		(373)		(1,008)		(1,375)
Income from operations before income taxes			2,572		22,032		23,848		40,976
Provision for income taxes			(619)		(6,787)		(6,564)		(11,484)
Loss from equity-accounted investments			(344)		(334)		(998)		(1,038)
Net income		$	1,609	$	14,911	$	16,286	$	28,454

Net income per share - basic & diluted:
	Net income per share - basic	$	0.02	$	0.23	$	0.24	$	0.43
	Net income per share - diluted	$	0.02	$	0.22	$	0.24	$	0.42

Weighted average number of shares outstanding (000's):
	Basic		67,309		65,930		66,969		65,718
	Fully Diluted		69,116		68,301		68,853		68,187

Additional Disclosure:

Depreciation and amortization⁽¹⁾		$	8,826	$	8,038	$	29,027	$	24,704

(1) Includes $0.1 million and $0.3 million of amortization of deferred financing costs charged to interest expense for the three and nine months ended September 30, 2013, respectively (2012 - less than $0.1 million and $0.1 million, respectively).

* Reflects a revision resulting from an adjustment to reflect an unfunded postretirement obligation of the Company.

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

	As at		As at
	September 31,		December 31,
	2013		2012
	(unaudited)
Assets
Cash and cash equivalents	$	25,955	$	21,336
Accounts receivable, net of allowance for doubtful accounts of $1,513 (December 31, 2012 — $1,564)		44,321		42,007
Financing receivables		99,591		94,193
Inventories		14,306		15,794
Prepaid expenses		4,576		3,833
Film assets		6,305		3,737
Property, plant and equipment		126,930		113,610
Other assets		27,739		23,963
Deferred income taxes		31,052		36,461
Goodwill		39,027		39,027
Other intangible assets		27,688		27,911
Total assets	$	447,490	$	421,872

Liabilities
Bank indebtedness	$	5,000	$	11,000
Accounts payable		17,051		15,144
Accrued and other liabilities		67,181		68,695
Deferred revenue		73,789		73,954
Total liabilities		163,021		168,793



Shareholders' equity
Capital stock, common shares — no par value. Authorized — unlimited number.
Issued and outstanding — 67,518,740 (December 31, 2012 — 66,482,425)		323,744		313,744
Other equity		33,642		28,892
Deficit		(70,880)		(87,166)
Accumulated other comprehensive loss		(2,037)		(2,391)
Total shareholders' equity		284,469		253,079
Total liabilities and shareholders' equity	$	447,490	$	421,872

IMAX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
In accordance with United States Generally Accepted Accounting Principles
(In thousands of U.S. dollars)
*(Unaudited)*
		Nine Months
		Ended September 30,
		2013		2012*
Cash provided by (used in):
Operating Activities
Net income		$	16,286	$	28,454
Adjustments to reconcile net income to cash from operations:
	Depreciation and amortization		29,027		24,704
	Write-downs, net of recoveries		279		1,516
	Change in deferred income taxes		5,579		9,431
	Stock and other non-cash compensation		9,348		11,099
	Gain on curtailment of postretirement benefits		(2,185)		-
	Unrealized foreign currency exchange loss (gain)		275		(152)
	Loss from equity-accounted investments		998		1,038
Investment in film assets			(16,772)		(13,508)
Changes in other non-cash operating assets and liabilities			(9,860)		(8,672)
	Net cash provided by operating activities		32,975		53,910

Investing Activities
Purchase of property, plant and equipment			(6,167)		(2,599)
Investment in joint revenue sharing equipment			(16,363)		(15,174)
Investment in new business ventures			(2,500)		(381)
Acquisition of other intangible assets			(1,812)		(5,046)
	Net cash used in investing activities		(26,842)		(23,200)

Financing Activities
Increase in bank indebtedness			12,000		9,917
Repayment of bank indebtedness			(18,000)		(35,000)
Common shares issued - stock options exercised			6,745		5,831
Credit facility amendment fees paid			(2,089)		-
Share issuance expenses			(202)		-
	Net cash used in financing activities		(1,546)		(19,252)

Effects of exchange rate changes on cash			32		(146)

Increase in cash and cash equivalents during the period			4,619		11,312

Cash and cash equivalents, beginning of period			21,336		18,138
Cash and cash equivalents, end of period		$	25,955	$	29,450

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

The Company has seven reportable segments identified by category of product sold or service provided: IMAX systems; theater system maintenance; joint revenue sharing arrangements; film production and IMAX DMR; film distribution; film post-production; and other. The IMAX systems segment is comprised of the design, manufacture, sale or lease IMAX theater projection system equipment. The theater system maintenance segment consists of the maintenance of IMAX theater projection system equipment in the IMAX theater network. The joint revenue sharing arrangements segment is comprised of the installation IMAX theater projection system equipment to an exhibitor in exchange for a certain percentage of box-office receipts, concession revenue and in some cases a small upfront or initial payment. The film production and IMAX DMR segment is comprised of the production of films and performance of film re-mastering services. The film distribution segment includes the distribution of films for which the Company has distribution rights. The film post-production segment includes the provision of film post-production and film print services. The other segment includes certain IMAX theaters that the Company owns and operates, camera rentals and other miscellaneous items.

			Three Months				Nine Months
			Ended September 30,				Ended September 30,
				2013		2012	2013		2012
Revenue
IMAX Theater Systems
	IMAX Systems
		Sales and sales-type leases	$	6,419	$	21,937	$	33,321	$	49,751
		Ongoing rent, fees, and finance income		3,483		3,421		10,111		9,312
		Other		2,230		4,997		8,362		10,394
				12,132		30,355		51,794		69,457
	Theater system maintenance			8,103		7,042		23,844		20,878
	Joint revenue sharing arrangements			11,960		13,186		39,672		40,477
Film
	Production and IMAX DMR			14,547		25,223		54,854		58,805
	Film distribution and post-production			5,000		4,905		13,740		16,900
				19,547		30,128		68,594		75,705
Total			$	51,742	$	80,711	$	183,904	$	206,517

Gross margins
IMAX Theater Systems
	IMAX systems⁽¹⁾
		Sales and sales-type leases	$	3,928	$	12,575	$	16,390	$	25,259
		Ongoing rent, fees, and finance income		3,277		3,381		9,758		9,216
		Other		(302)		564		(29)		287
				6,903		16,520		26,119		34,762
	Theater system maintenance			3,218		2,828		9,432		8,122
	Joint revenue sharing arrangements⁽¹⁾			7,153		9,286		26,796		28,340
Film
	Production and IMAX DMR⁽¹⁾			8,596		15,426		30,372		35,714
	Film distribution and post-production			1,388		690		4,154		3,506
				9,984		16,116		34,526		39,220
Total			$	27,258	$	44,750	$	96,873	$	110,444

(1) IMAX systems include commission costs of $0.2 million and $0.9 million for the three and nine months ended September 30, 2013, respectively (2012 — $0.9 million and $2.1 million, respectively). Joint revenue sharing arrangements segment margins include advertising, marketing and commission costs of $0.9 million and $2.0 million for the three and nine months ended September 30, 2013, respectively (2012 — $1.1 million and $2.1 million, respectively). Production and IMAX DMR segment margins include marketing costs of $0.8 million and $3.1 million for the three and nine months ended September 30, 2013, respectively (2012 — $0.5 million and $2.2 million, respectively). Distribution segment margins include a marketing cost of $0.1 million and $0.2 million for the three and nine months ended September 30, 2013, respectively (2012 — recovery of less than $0.1 million and an expense of $1.2 million, respectively).

IMAX CORPORATION OTHER INFORMATION (in thousands of U.S. dollars)
*Non-GAAP Financial Measures:*

In this release, the Company presents adjusted EBITDA, adjusted net income and adjusted net income per diluted share as supplemental measures of performance of the Company, which are not recognized under United States generally accepted accounting principles ("GAAP"). The Company presents adjusted EBITDA, 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 variable share-based compensation, provision for arbitration award and deferred taxes on its net income. 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 EBITDA, adjusted net income and adjusted net income per diluted share should be considered in addition to, and not as a substitute for, net income and other measures of financial performance reported in accordance with GAAP.

Adjusted EBITDA is calculated on a basis consistent with the Company's Credit Facility, which refers to Adjusted EBITDA as EBITDA. The Credit Facility provides that the Company will be required to maintain a Fixed Charge Coverage Ratio (as defined in the Credit Agreement) of not less than 1.1:1. The Company will also be required to maintain minimum EBITDA (as defined in the Credit Agreement) of $70.0 million between closing and September 30, 2013, which requirement increases to $80.0 million on December 31, 2013, $90.0 million on December 31, 2014, and $100.0 million on December 31, 2015. The Company must also maintain a Maximum Total Leverage Ratio (as defined in the Credit Agreement) of 2.5:1 between closing and September 30, 2013, which requirement decreases to (i) 2.25:1 on December 31, 2013; (ii) 2.00:1 on December 31, 2014; and (iii) 1.75:1on December 31, 2015. The ratio of total debt to EBITDA was 0.06:1 as at September 30, 2013, where Total Debt (as defined in the Credit Agreement) is the sum of all obligations evidenced by notes, bonds, debentures or similar instruments and was $5.0 million. EBITDA is calculated as follows:

		3 months ended		12 months ended
		September 30, 2013		September 30, 2013⁽¹⁾
*(In thousands of U.S Dollars)*
Net income		$	1,609	$	29,169
Add:
	Loss from equity accounted investments		344		1,322
	Provision for income taxes		619		10,159
	Interest expense, net of interest income		301		271
	Depreciation and amortization, including film asset amortization		8,699		36,716
	Write-downs net of recoveries including asset impairments and receivable provisions		224		370
	Stock and other non-cash compensation		3,031		12,469
	Gain on curtailment of postretirement benefits		-		(2,185)
		$	14,827	$	88,291

(1) Ratio of funded debt calculated using twelve months ended EBITDA.

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

*Adjusted Net Income and Adjusted Diluted Per Share Calculations – Quarter Ended September 30, 2013 vs. 2012:*
The Company reported net income of $1.6 million or $0.02 per basic and diluted share for the third quarter of 2013, as compared to net income of $14.9 million or $0.23 per basic share and $0.22 per diluted share for the third quarter of 2012. The quarter ended September 30, 2012 included the exceptional performance of The Dark Knight Rises: The IMAX Experience. Net income for the third quarter of 2013 includes a $2.8 million charge, or $0.04 per diluted share, for stock-based compensation (2012 - $2.8 million or $0.04 per diluted share). Adjusted net income, which consists of net income excluding stock-based compensation expense and the related tax impact, was $4.4 million, or $0.06 per diluted share, in the third quarter of 2013, as compared to adjusted net income of $17.8 million, or $0.26 per diluted share, for the third quarter of 2012. A reconciliation of net income, the most directly comparable U.S. GAAP measure, to adjusted net income and adjusted net income per diluted share is presented in the table below:

		Three Months Ended				Three Months Ended
		September 30, 2013				September 30, 2012
		Net Income		Diluted EPS		Net Income		Diluted EPS
Reported		$	1,609	$	0.02	$	14,911	$	0.22
Adjustments:
	Stock-based compensation		2,838		0.04		2,756		0.04
	Tax benefit on item listed above		(85)		-		114		-
Adjusted		$	4,362	$	0.06	$	17,781	$	0.26

Weighted average diluted shares outstanding					69,116				68,301

*Adjusted Net Income and Adjusted Diluted Per Share Calculations – Nine Months Ended September 30, 2013 vs. 2012:*
The Company reported net income of $16.3 million or $0.24 per basic and diluted share for the nine months ended September 30, 2013, as compared to net income of $28.5 million or $0.43 per basic and $0.42 per diluted share for the nine months ended September 30, 2012. Net income for the nine months ended September 30, 2013 includes a $8.8 million charge, or $0.12 per diluted share, for stock-based compensation (2012 – $10.3 million or $0.15 per diluted share). Adjusted net income, which consists of net income excluding stock-based compensation expense and the related tax expense, was $24.9 million, or $0.36 per diluted share, in the nine months ended September 30, 2013, as compared to adjusted net income of $38.6 million, or $0.57 per diluted share, for the nine months ended September 30, 2012. A reconciliation of net income, the most directly comparable U.S. GAAP measure, to adjusted net income and adjusted net income per diluted share is presented in the table below:

		Nine Months				Nine Months
		Ended September 30, 2013				Ended September 30, 2012
		Net Income		Diluted EPS		Net Income		Diluted EPS
Net income		$	16,286	$	0.24	$	28,454	$	0.42
Add:
	Stock-based compensation		8,772		0.12		10,252		0.15
	Tax expense on items listed above		(159)		-		(86)		-
Adjusted net income		$	24,899	$	0.36	$	38,620	$	0.57

Weighted average diluted shares outstanding					68,853				68,187

*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. A reconciliation of cash provided by operating activities to free cash flow is presented in the table below:


	Nine Months Ended
*(In thousands of U.S. Dollars)*	September 30, 2013

Net cash provided by operating activities	$	32,975
Net cash (used in) investing activities		(26,842)
Free cash flow	$	6,133

SOURCE IMAX Corporation