Everyone expected a soft performance in the quarter and that’s just what they got. Net income at $1.6M was -89.2% from last year’s Q3 on revenues of $51.7M, -35.9%. The revenue number was slightly ahead of the $50.64 that analysts expected. Profits at 2 cents a share fell short of the 4 cents the Street anticipated — although the number would have come in at 6 cents without a $2.8M charge for stock based compensation. Box office was a problem as releases including Sony’s Elysium, Warner Bros’ Pacific Rim, and Universal’s Riddick were no match for last year which included Warner Bros’ The Dark Knight Rises. IMAX saw gross box office results of $132.5M, -23.5%, while the average box office per screen fell 33.5% to $207,500. Investors may look past those numbers as CEO Richard Gelfond says that Q4 is off to a “great start” with releases including Warner Bros’ Gravity and the Russian made film Stalingrad. That “reminds us of the importance of assessing our portfolio of films on an annual basis.” In addition, IMAX says it recently signed contracts for 99 theater systems, with 88 in new locations. The new signings and “historic high backlog” with “many fourth quarter deals either signed or in discussions provide increased visibility into strong network growth over the long term,” Gelfond says.
The Q2 earnings report out this morning is actually pretty good, even though the earnings fell short of projections. Notably, the $219.7M gross box office for IMAX films in the quarter beat some analysts’ expectations. But the 9.6% jump in the share price this morning probably reflects the Street’s enthusiasm over last night’s announcement of a major expansion in IMAX’s building plans for AMC Theaters and its parent, China’s Wanda Group. As for IMAX’s Q2 financials: The company generated $11.8M in net income, +7.1% vs the quarter last year, on revenues of $82.3M, +17.2%. The revenue figure topped the consensus forecast for $76.4M. But adjusted earnings at 22 cents a share missed expectations for 26 cents. “Strategic investments — including our innovative laser projection system — along with some non-recurring items, contributed to higher operating expenses in the quarter,” CEO Richard Gelfond says. With help from releases including Disney/Marvel’s Iron Man 3, Paramount’s Star Trek: Into Darkness, and Warner Bros’ Man Of Steel, the gross box office number was +26.6%, while the average global box office per screen was +3.3% to $353,300. The company had 767 theaters in its network at the end of June, including 634 in commercial multiplexes, It installed 30 theater systems in the quarter, with 29 in new locations. It had a backlog of 284 theater systems at the end of June, up from 280 at the same time last year. With that backlog and the …
It’s been a year since IMAX shares tumbled following a big earnings miss. That shouldn’t happen this time. The company has a better story to tell and has already previewed much of the news for Q2, including the improvement in box office sales. This morning it reports Q2 net earnings of $11.1M, up from $1.8M in the period last year, on revenues of $70.2M, +23%. The revenue figure was slightly shy of the $71.6M that analysts expected. And earnings, at 21 cents a share, are just a penny short of the consensus forecast. The large screen theater company said that gross ticket sales for its movies — which it shares with exhibition companies — came to $173.5M, up from $107.7M last year. Average box office per screen was $341,900, +8.3%. IMAX reported film revenues of $26.5M, +42.7%. The company says that 25 films will be released in its theaters this year, about the same as in 2011. But IMAX is primarily in the business of building and operating large screen venues. On that score, the company says it has new deals that will keep it busy: IMAX increased the number of scheduled installations this year to 110 from its previous forecast of anywhere from 95 to 100. Investors have been concerned that IMAX’s growth might be stunted as several major theater chains build their own large-screen venues. But CEO Richard Gelfond says: “We are still in the early stages of …
Not much to crow about in Q4 aside from the nice business Imax did with Paramount’s Mission:Impossible — Ghost Protocol. The large screen exhibition company generated net income of $6.3M in Q4, down 88.3% vs the period in 2010, on revenues of $66.7M, down 3.6%.The revenue figure exceeded the $63.4M that analysts projected. Imax’s adjusted earnings came in at 14 cents a share, which hits the Street’s target. The company says that it installed 17 new Imax systems in the quarter, down from 20 at the end of 2010. Gross box office for Imax films also fell 4.2% to $97.6M. “While we are disappointed that 2011 did not meet our financial objectives, in 2012 we believe we are positioning ourselves for both financial and strategic success through our continued focus on differentiation, executing on network growth, and creating a compelling film slate,” CEO Richard Gelfond says.
The large-screen theater company says it generated $8.39M in net income for 3Q, up 24.6% vs the period last year, on revenues of $67.5M, up 32.2%. That translated into adjusted earnings of 16 cents a share, light of the 20 cents that the Street expected. But IMAX says it took a 6 cent hit due to “a sudden decrease of the Canadian Dollar against the U.S. Dollar at the end of the third quarter.” Most of IMAX’s revenues are in U.S. dollars, but most of its expenses are in Canadian dollars. Since the end of September the Canadian dollar has strengthened, leading IMAX to project a $3.4M gain in 4Q. CEO Rich Gelfond says he’s optimistic about upcoming films led by Paramount’s Mission: Impossible — Ghost Protocol: The IMAX Experience as well as revenues from new theaters being built overseas. Gelfond says that 3Q was the first time that IMAX saw more gross revenues from overseas theaters than from domestic. The company increased its international growth plans by 25% and says those markets will account for about 75% of the new IMAX venues planned for the next 15 months.
IMAX made news over the holidays when its stock jumped on speculative reports that Sony was angling to buy the company, though IMAX officially claimed not to know anything about it. Today, IMAX issued glowing year-end results.
TORONTO AND LOS ANGELES – JANUARY 3, 2011 – IMAX CORPORATION today announced that for the fifty-two weeks ended December 31, 2010, IMAX DMR® global gross box office reached a record $546 million, more than doubling the Company’s previous global box office record of $270 million achieved in 2009. The Company’s DMR gross box office for the fourth quarter of 2010 reached $102 million compared to $101 million in the fourth quarter of last year.
Gross box office generated from the Company’s original documentaries including Hubble 3D, Under the Sea 3D and Deep Sea 3D totaled $41 million.
“Our 2010 box office results reflect our model of showcasing the biggest blockbuster titles, whether they are 2D or 3D, our network expansion and the significant increase in box office generated from our existing theatres,” said Richard L. Gelfond, CEO of IMAX Corporation. “In fact, our box office per theatre average grew by 50 percent year-over-year. Looking ahead to 2011, we have more visibility into our future film slate than we have ever had, we will grow the size of our global network and we believe that this year’s strong box office performance will further fuel the theatre signing momentum we enjoyed in 2010 into 2011.”
“IMAX proves time and again to be the magic formula that
The company’s solid third quarter was driven mainly by aggressive expansion as the large-screen format chain signed up 100 new theaters. Revenue jumped to $51.1 million from $43.5 million in the same quarter last year, and earnings rose to $6.7 million from $1.1 million. With no Avatar, Inception was the big draw; the film grossed $50 million, making it the fourth highest grossing title in the company’s history. The 4th quarter should be strong as releases include Warner Bros’ Harry Potter and the Deathly Hallows, Disney’s Tron: Legacy and Megamind from DreamWorks Animation. In its report, the company stressed three future initiatives: brand marketing, differentiation through technology and reinvestment.