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.
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.
TORONTO AND LOS ANGELES – JULY 7, 2010 – IMAX Corporation today announced that for the second quarter ended June 30, 2010, IMAX DMR® gross box office worldwide was approximately $115.0 million, an approximate 37% increase over last year’s second quarter box office of approximately $84.2 million. For the six months ended June 30, 2010, gross box office