NEW YORK, July 28, 2020 /PRNewswire/ --
HIGHLIGHTS
- 409 IMAX® theaters reopened in China over the July
24th weekend. The Company now has 624 theaters or
approximately 40% of its global network generating revenue and is
ready to benefit from an IMAX-friendly slate
- A strong balance sheet, with $319
million in consolidated cash as of June 30, 2020, and an amended credit agreement,
with covenant flexibilty through Q3 2021, positions the Company
well to manage through the ongoing COVID-19 related challenges
- Cost reduction measures taken at the outset of the pandemic
reduced the Company's average monthly cash burn to approximately
$10 million, as demonstrated by the
second quarter and in line with previous guidance
- IMAX signed agreements to add 29 theater systems, headlined by
the international 17-theater CGV and 10-theater Wanda deals,
demonstrating continued global demand for The IMAX
Experience® from existing partners in established
markets
- As a result of the global pandemic, second quarter 2020 revenue
decreased 92% versus 2019 to $8.9
million. Second quarter 2020 net (loss) attributable to
common shareholders was ($26)
million. Non-GAAP adjusted EBITDA (loss) was ($18.5) million versus $41.4 million in the prior-year period
|
Three Months
Ended
|
|
|
June 30,
|
|
In thousands
except per share data
|
2020
|
|
|
2019
|
|
|
YoY
% Change
|
|
Total
Revenue
|
$
|
8.9
|
|
|
$
|
104.8
|
|
|
|
(91.6)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
(Margin Loss) Gross
Margin
|
$
|
(7.7)
|
|
|
$
|
59.6
|
|
|
|
(112.9)
|
%
|
(Margin Loss) Gross
Margin (%)
|
|
(86.8)
|
%
|
|
|
56.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (Loss) income
attributable to common shareholders
|
$
|
(26.0)
|
|
|
$
|
11.4
|
|
|
N/A
|
|
Diluted Net (Loss)
income per share attributable to common
shareholders
|
$
|
(0.44)
|
|
|
$
|
0.19
|
|
|
N/A
|
|
Adjusted Net (Loss)
Income(1)
|
$
|
(26.1)
|
|
|
$
|
19.7
|
|
|
N/A
|
|
Adj. Net (Loss)
Income Per Share(1)
|
$
|
(0.44)
|
|
|
$
|
0.32
|
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA per
Credit Facility attributable to common
shareholders(1)
|
$
|
(18.5)
|
|
|
$
|
41.4
|
|
|
N/A
|
|
Adj. EBITDA Margin
attributable to common shareholders (%) (1)
|
|
(219.3)
|
%
|
|
|
43.8
|
%
|
|
N/A
|
|
_____________
|
(1) Non-GAAP
Financial Measure
|
|
Note: For the
definition and reconciliations of reported results
to non-GAAP financial results, please refer to the
discussion of non-GAAP financial measures at the end of
this earnings release.
|
IMAX Corporation (NYSE:IMAX) today reported second quarter 2020
revenues of $8.9 million, gross
margin (loss) of ($7.7) million, and
a net (loss) attributable to common shareholders of ($26.0) million, or ($0.44) per diluted share. For reconciliations of
reported results to non-GAAP financial results, please see the end
of this press release.
Results in the second quarter reflect the closure of
substantially all of the theaters in the Company's global network
driven by the Coronavirus pandemic. These closures reduced IMAX
Technology Network and IMAX Maintenance revenue to essentially zero
and caused a margin loss for the quarter. During the second
quarter, the Company accrued $3.2
million in payroll subsidies and tax credits from the
Canadian and US governments as part of their COVID-19 relief
programs which benefitted SG&A expense, cost of sales, and
R&D expense.
"As the only global theatrical platform for blockbuster
entertainment, IMAX is uniquely advantaged as theaters begin to
reopen on a rolling basis throughout the world. Our model gives us
the flexibility to reopen where safe, program locally relevant
content to maximize revenues, and play a leadership role as the
industry returns," said IMAX CEO Richard L.
Gelfond.
"We are seeing early signs of progress, with approximately 40%
of our global network currently generating revenue. This includes
409 IMAX® theaters in China, which
are scheduled to debut Hollywood
and local language films over the coming weeks. Additionally, the
South Korean blockbuster "Peninsula" continues to perform well
across markets in Asia and
Europe, drawing $26.5 million in global box office despite
capacity limitations and highlighting solid demand among moviegoers
in lower-risk markets worldwide."
"We believe that our solid financial position gives IMAX the
strength to be ready as the rest of our network comes back online.
At the end of the second quarter, the Company had $319 million in consolidated cash and recently
amended its credit agreement for increased financial flexibility
through September 2021."
"We continue to look ahead to an exceptionally strong slate
through 2021, as studios affirm their commitment to the theatrical
release by rescheduling their key blockbuster titles. Additionally,
major global exhibitors continue to underscore the value of
The IMAX Experience, with new agreements including a
10-theatre deal with Wanda Film in China and a multinational 17-theatre deal with
CGV."
"We remain unwavering in our stance that the health and safety
of audiences must be the priority as theaters reopen and we support
by the work of local governments and our partners to put public
health first."
Second Quarter and June Year-to-Date Segment
Results(1)
|
IMAX Technology
Network
|
|
|
IMAX Technology
Sales and Maintenance
|
|
|
Revenue
|
|
|
(Margin
Loss) Gross
Margin
|
|
|
(Margin
Loss) Gross
Margin %
|
|
|
Revenue
|
|
|
Gross
Margin
|
|
|
Gross
Margin %
|
|
2Q20
|
$
|
0.4
|
|
|
$
|
(6.5)
|
|
|
N/A
|
|
|
$
|
4.6
|
|
|
|
$
|
0.2
|
|
|
|
4.9
|
%
|
2Q19
|
64.8
|
|
|
|
43.3
|
|
|
|
66.8
|
%
|
|
34.8
|
|
|
|
|
15.4
|
|
|
|
44.1
|
%
|
%
change
|
|
(99.4)
|
%
|
|
|
(115.1)
|
%
|
|
|
|
|
|
|
(86.8)
|
%
|
|
|
|
(98.5)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YTD
2Q20
|
$
|
17.0
|
|
|
$
|
(3.7)
|
|
|
|
(21.8)
|
%
|
|
$
|
19.7
|
|
|
|
$
|
5.0
|
|
|
|
25.1
|
%
|
YTD
2Q19
|
110.8
|
|
|
|
75.0
|
|
|
|
67.7
|
%
|
|
|
65.0
|
|
|
|
|
28.5
|
|
|
|
43.8
|
%
|
%
change
|
|
(84.7)
|
%
|
|
|
(104.9)
|
%
|
|
|
|
|
|
|
(69.7)
|
%
|
|
|
|
(82.6)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Please
refer to the Company's Form 10-Q for the period ended June 30, 2020
for additional segment information
|
IMAX Technology Network
- IMAX Technology Network revenues decreased 99% to $0.4 million in the second quarter of 2020,
compared to $64.8 million in the
prior-year period. The closure of the Company's network due to the
COVID-19 pandemic impacted results.
- Margin (loss) for the IMAX Technology Network was ($6.5) million in the second quarter of 2020 and
was driven by the lack of revenue and ongoing fixed costs
associated with our installed IMAX network.
IMAX Technology Sales and Maintenance
- IMAX Technology Sales and Maintenance revenues decreased 87% to
$4.6 million in the second quarter of
2020, compared with $34.8 million in
the prior year period. Seven fewer sales type lease installations
principally resulted in lower IMAX system revenue. IMAX maintenance
revenue declined to nil as regular maintenance services were
suspended due to the COVID-19 theater closures.
- Total gross margin for IMAX Technology Sales and Maintenance
was $0.2 million compared to
$15.4 million in the prior year
period. Lower revenue was partially offset by the shift in certain
overhead costs from cost of sales to SG&A.
Cash Balances and Outstanding Debt
Total cash and cash equivalents as of June 30, 2020 were $319
million. Total debt was $300.2
million as of June 30,
2020.
Share Count and Capital Return
- The weighted average diluted shares outstanding at the end of
the second quarter of 2020 declined 4.4% to 58.8 million, compared
to 61.5 million in the second quarter of 2019, due primarily to
share repurchase activity during the twelve-month period. During
the second quarter of 2020, the Company did not repurchase any
stock. A total of $89.4 million
remains available under the Company's outstanding share repurchase
authorization, which was extended in June and now expires in
June 2021.
- During the second quarter of 2020, IMAX China repurchased a
total of 423 thousand shares at an average price of $1.50 for a total value of approximately
$640 thousand.
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
investors.imax.com. 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.
The information posted on the Company's corporate and Investor
Relations website may be deemed material to investors. Accordingly,
investors, media and others interested in the Company should
monitor the Company's website in addition to the Company's press
releases, SEC filings and public conference calls and webcasts.
Conference Call
The Company will host a conference call today at 4:30PM ET to discuss its second quarter 2020
financial results. This call is being webcast by PGI and can be
accessed at investors.imax.com. To access the call via telephone,
interested parties in the US and Canada should dial (800) 367-2403
approximately 5 to 10 minutes before the call begins. Other
international callers should dial (647) 490-5367. The conference ID
for the call is 9071085. A replay of the call will be available via
webcast at investors.imax.com or via telephone by dialing
(888) 203-1112 (US and Canada), or
(647) 436-0148 (international). The Conference ID for the telephone
replay is 9071085.
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
IMAX theaters to connect with audiences in extraordinary ways, and,
as such, IMAX's network is among the most important and successful
theatrical distribution platforms for major event films around the
globe.
IMAX is headquartered in New
York, Toronto, and
Los Angeles, with additional
offices in London, Dublin, Tokyo, and Shanghai. As of June
30, 2020, there were 1,615 IMAX theater systems (1,527
commercial multiplexes, 13 commercial destinations, 75
institutional) operating in 81 countries and territories. Shares of
IMAX China Holding, Inc., a subsidiary of IMAX Corporation, trade
on the Hong Kong Stock Exchange under the stock code "HK.1970."
IMAX®, IMAX® Dome, IMAX® 3D, IMAX® 3D Dome, Experience It In
IMAX®, The IMAX Experience®, An IMAX Experience®, An IMAX 3D
Experience®, IMAX DMR®, DMR®, IMAX nXos® and Films to the
Fullest®, are trademarks and trade names of the Company
or its subsidiaries that are registered or otherwise protected
under laws of various jurisdictions. More information about
the Company can be found at www.imax.com. You may also connect with
IMAX on Instagram (https://www.instagram.com/imax), Facebook
(www.facebook.com/imax), Twitter (www.twitter.com/imax) and YouTube
(www.youtube.com/imaxmovies).
For additional information please contact:
Investors: IMAX Corporation, New York Brett Harriss 212-821-0187 bharriss@IMAX.com
|
Media: IMAX Corporation, New York Mark Jafar 212-821-0102 mjafar@imax.com
|
Forward-Looking Statements
This earnings release contains forward looking statements
that are based on IMAX management'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 Corporation together
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
States and 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 and data privacy; 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 any of the Company's restructuring
initiatives; the impact of COVID-19 on our financial condition and
results of operations and on the businesses of our customers and
exhibitor partners; 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's most recent Annual Report on Form 10-K and Quarterly Reports
on Form 10-Q. The Company undertakes no obligation to update
publicly or otherwise revise any forward-looking statements,
whether as a result of new information, future events or
otherwise.
Primary Reporting Groups
The Company has the following reportable segments: (i) IMAX DMR;
(ii) Joint Revenue Sharing Arrangements; (iii) IMAX Systems, (iv)
IMAX Maintenance; (v) Other Theater Business; (vi) New Business
Initiatives; (vii) Film Distribution; and (viii) Film
Post-production. The Company organizes its reportable segments into
the following four categories, identified by the nature of the
product sold or service provided:
(i)
|
IMAX Technology
Network, which earns revenue based on contingent box office
receipts and includes the IMAX DMR segment and contingent rent from
the Joint Revenue Sharing Arrangement ("JRSA") segment;
|
|
|
(ii)
|
IMAX Technology Sales
and Maintenance, which includes results from the IMAX Systems, IMAX
Maintenance and Other Theater Business segments, as well as fixed
revenues from the JRSA segment;
|
|
|
(iii)
|
New Business
Initiatives, which is a segment that includes activities related to
the exploration of new lines of business and new initiatives
outside of the Company's core business; and
|
|
|
(iv)
|
Film Distribution and
Post-production, which includes activities related to the licensing
of film content, the distribution of films primarily for the
Company's institutional theater partners (through the Film
Distribution segment) and the provision of film post-production and
quality control services (through the Film Post-production
segment).
|
Signings and
Installations
|
|
|
Three
Months
Ended June
30,
|
|
|
Theater System
Signings:
|
2020
|
|
|
|
2019
|
|
|
Full new sales and
sales-type lease arrangements
|
|
12
|
|
|
|
|
7
|
|
|
New hybrid joint
revenue sharing lease arrangements
|
|
17
|
|
|
|
|
45
|
|
|
New traditional joint
revenue sharing arrangements
|
|
-
|
|
|
|
|
2
|
|
|
Total new IMAX
theaters
|
|
29
|
|
|
|
|
54
|
|
|
Upgrades of IMAX
theater systems
|
|
-
|
|
|
|
|
19
|
|
|
Total
theater signings
|
|
29
|
|
|
|
|
73
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months
Ended June
30,
|
|
|
Theater System
Installations:
|
2020
|
|
|
|
2019
|
|
|
Full new sales and
sales-type lease arrangements
|
|
2
|
|
|
|
|
9
|
|
|
New hybrid joint
revenue sharing lease arrangements
|
|
1
|
|
|
|
|
5
|
|
|
New traditional joint
revenue sharing arrangements
|
|
-
|
|
|
|
|
13
|
|
|
Total new IMAX
theaters
|
|
3
|
|
|
|
|
27
|
|
|
Upgrades of IMAX
theater systems
|
|
—
|
|
|
|
|
8
|
|
|
Total theater
installations
|
|
3
|
|
|
|
|
35
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months
Ended June
30,
|
|
|
Theater Sales
Backlog:
|
2020
|
|
|
|
2019
|
|
|
Sales and sales-type
lease arrangements
|
|
190
|
|
|
|
|
182
|
|
|
Hybrid
JRSA
|
|
154
|
|
|
|
|
154
|
|
|
Traditional
JRSA
|
|
215
|
|
(1)
|
|
|
276
|
|
(1)
|
Total theater
backlog
|
|
559
|
|
(2)
|
|
|
612
|
|
(3)
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months
Ended June
30,
|
|
|
Theater
Network:
|
2020
|
|
|
|
2019
|
|
|
Commercial Multiplex
Theaters:
|
|
|
|
|
|
|
|
|
|
Sales and
sales-type lease arrangements
|
|
659
|
|
|
|
|
619
|
|
|
Hybrid joint
revenue sharing lease arrangements
|
|
138
|
|
|
|
|
133
|
|
|
Traditional
joint revenue sharing lease arrangements
|
|
730
|
|
|
|
|
693
|
|
|
Total Commercial
Multiplex Theaters(4)
|
|
1,527
|
|
|
|
|
1,445
|
|
|
Commercial
Destination Theaters
|
|
13
|
|
|
|
|
15
|
|
|
Institutional
Theaters
|
|
75
|
|
|
|
|
81
|
|
|
Total theater
network
|
|
1,615
|
|
|
|
|
1,541
|
|
|
|
(1)
Includes 46 IMAX Theater Systems where the customer has the
option to convert from a joint revenue sharing arrangement to a
sales arrangement (2019 — 60).
|
(2) Includes
154 new IMAX with Laser projection system configurations and 94
upgrades of existing locations to IMAX with Laser projection system
configurations.
|
(3) Includes
139 new IMAX with Laser projection system configurations and 118
upgrades of existing locations to IMAX with Laser projection system
configurations.
|
(4)
Period to period changes are net of the effects of
permanently closed theaters.
|
IMAX
CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands of
U.S. dollars, except per share amounts)
|
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
|
Six Months
Ended
|
|
|
|
June
30,
|
|
|
June
30,
|
|
|
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2019
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Technology
sales
|
$
|
2,687
|
|
|
$
|
19,694
|
|
|
$
|
8,349
|
|
|
$
|
34,894
|
|
Image enhancement and
maintenance services
|
|
3,799
|
|
|
|
56,662
|
|
|
|
24,520
|
|
|
|
100,809
|
|
Technology
rentals
|
|
(137)
|
|
|
|
25,863
|
|
|
|
5,834
|
|
|
|
44,033
|
|
Finance
income
|
|
2,506
|
|
|
|
2,578
|
|
|
|
5,054
|
|
|
|
5,259
|
|
|
|
|
8,855
|
|
|
|
104,797
|
|
|
|
43,757
|
|
|
|
184,995
|
|
Costs and expenses
applicable to revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Technology
sales
|
|
2,546
|
|
|
|
11,939
|
|
|
|
6,415
|
|
|
|
21,374
|
|
Image enhancement and
maintenance services
|
|
7,244
|
|
|
|
26,781
|
|
|
|
25,060
|
|
|
|
46,024
|
|
Technology
rentals
|
|
6,753
|
|
|
|
6,524
|
|
|
|
14,884
|
|
|
|
12,904
|
|
|
|
|
16,543
|
|
|
|
45,244
|
|
|
|
46,359
|
|
|
|
80,302
|
|
(Margin loss)
gross margin
|
|
(7,688)
|
|
|
|
59,553
|
|
|
|
(2,602)
|
|
|
|
104,693
|
|
Selling, general and
administrative expenses
|
|
29,796
|
|
|
|
32,136
|
|
|
|
58,432
|
|
|
|
59,785
|
|
Research and
development
|
|
1,232
|
|
|
|
1,222
|
|
|
|
3,432
|
|
|
|
2,358
|
|
Amortization of
intangibles
|
|
1,344
|
|
|
|
1,218
|
|
|
|
2,665
|
|
|
|
2,293
|
|
Credit loss
expense
|
|
1,440
|
|
|
|
927
|
|
|
|
11,657
|
|
|
|
1,358
|
|
Asset
impairments
|
|
-
|
|
|
|
-
|
|
|
|
1,151
|
|
|
|
-
|
|
Exit costs,
restructuring charges and associated impairments
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
850
|
|
(Loss) income from
operations
|
|
(41,500)
|
|
|
|
24,050
|
|
|
|
(79,939)
|
|
|
|
38,049
|
|
Gain (loss) in fair
value of equity investment
|
|
2,025
|
|
|
|
(4,544)
|
|
|
|
(2,514)
|
|
|
|
(2,053)
|
|
Retirement benefits
non-service expense
|
|
(130)
|
|
|
|
(160)
|
|
|
|
(246)
|
|
|
|
(320)
|
|
Interest
income
|
|
891
|
|
|
|
572
|
|
|
|
1,256
|
|
|
|
1,142
|
|
Interest
expense
|
|
(1,581)
|
|
|
|
(636)
|
|
|
|
(2,229)
|
|
|
|
(1,317)
|
|
(Loss) income
before taxes
|
|
(40,295)
|
|
|
|
19,282
|
|
|
|
(83,672)
|
|
|
|
35,501
|
|
Income tax benefit
(expense)
|
|
10,248
|
|
|
|
(5,308)
|
|
|
|
(5,257)
|
|
|
|
(8,956)
|
|
Equity in losses of
investees, net of tax
|
|
-
|
|
|
|
(138)
|
|
|
|
(529)
|
|
|
|
(222)
|
|
Net (loss)
income
|
|
(30,047)
|
|
|
|
13,836
|
|
|
|
(89,458)
|
|
|
|
26,323
|
|
Less: Net loss
(income) attributable to non-controlling interests
|
|
4,080
|
|
|
|
(2,439)
|
|
|
|
14,137
|
|
|
|
(6,661)
|
|
Net (loss) income
attributable to common shareholders
|
$
|
(25,967)
|
|
|
$
|
11,397
|
|
|
$
|
(75,321)
|
|
|
$
|
19,662
|
|
Net (loss) income
per share attributable to common shareholders -
basic and diluted:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income per
share — basic and diluted
|
$
|
(0.44)
|
|
|
$
|
0.19
|
|
|
$
|
(1.26)
|
|
|
$
|
0.32
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding (000's):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
58,808
|
|
|
|
61,331
|
|
|
|
59,613
|
|
|
|
61,354
|
|
|
Fully
Diluted
|
|
58,808
|
|
|
|
61,507
|
|
|
|
59,613
|
|
|
|
61,525
|
|
Additional
Disclosure:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization(1)
|
$
|
11,930
|
|
|
$
|
15,593
|
|
|
$
|
27,182
|
|
|
$
|
29,804
|
|
|
(1)
Includes $0.2 million and $0.3 million of amortization of deferred
financing costs charged to interest expense for the three months
and six months ended June 30, 2020, respectively ($0.1 million and
$0.2 million, respectively).
|
IMAX
CORPORATION
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
In accordance with
United States Generally Accepted Accounting
Principles
|
(In thousands of
dollars, except share amounts)
|
(Unaudited)
|
|
|
June 30,
|
|
|
December
31,
|
|
|
2020
|
|
|
2019
|
|
Assets
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
318,986
|
|
|
$
|
109,484
|
|
Accounts receivable,
net of allowance for credit losses
|
|
54,839
|
|
|
|
99,513
|
|
Financing
receivables, net of allowance for credit losses
|
|
123,865
|
|
|
|
128,038
|
|
Variable
consideration receivable, net of allowance for credit
losses
|
|
39,397
|
|
|
|
40,040
|
|
Inventories
|
|
60,179
|
|
|
|
42,989
|
|
Prepaid
expenses
|
|
12,008
|
|
|
|
10,237
|
|
Film
assets
|
|
13,147
|
|
|
|
17,921
|
|
Property, plant and
equipment
|
|
287,220
|
|
|
|
306,849
|
|
Investment in equity
securities
|
|
13,192
|
|
|
|
15,685
|
|
Other
assets
|
|
24,575
|
|
|
|
25,034
|
|
Deferred income tax
assets
|
|
46,826
|
|
|
|
23,905
|
|
Other intangible
assets
|
|
28,204
|
|
|
|
30,347
|
|
Goodwill
|
|
39,027
|
|
|
|
39,027
|
|
Total
assets
|
$
|
1,061,465
|
|
|
$
|
889,069
|
|
Liabilities
|
|
|
|
|
|
|
|
Bank
indebtedness
|
$
|
297,765
|
|
|
$
|
18,229
|
|
Accounts
payable
|
|
13,668
|
|
|
|
20,414
|
|
Accrued and other
liabilities
|
|
108,917
|
|
|
|
112,779
|
|
Deferred
revenue
|
|
104,311
|
|
|
|
94,552
|
|
Deferred income tax
liabilities
|
|
18,475
|
|
|
|
—
|
|
Total
liabilities
|
|
543,136
|
|
|
|
245,974
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
Non-controlling
interests
|
|
4,237
|
|
|
|
5,908
|
|
Shareholders'
equity
|
|
|
|
|
|
|
|
Capital stock common
shares — no par value. Authorized — unlimited number.
|
|
|
|
|
|
|
|
58,878,749 issued and
58,857,436 outstanding (December 31, 2019 — 61,362,872 issued and
61,175,852 outstanding)
|
|
405,583
|
|
|
|
423,386
|
|
Less: Treasury stock,
21,313 shares at cost (December 31, 2019 — 187,020)
|
|
(329)
|
|
|
|
(4,038)
|
|
Other
equity
|
|
172,690
|
|
|
|
171,789
|
|
Accumulated
deficit
|
|
(134,395)
|
|
|
|
(40,253)
|
|
Accumulated other
comprehensive loss
|
|
(4,180)
|
|
|
|
(3,190)
|
|
Total
shareholders' equity attributable to common
shareholders
|
|
439,369
|
|
|
|
547,694
|
|
Non-controlling
interests
|
|
74,723
|
|
|
|
89,493
|
|
Total
shareholders' equity
|
|
514,092
|
|
|
|
637,187
|
|
Total liabilities
and shareholders' equity
|
$
|
1,061,465
|
|
|
$
|
889,069
|
|
IMAX
CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In thousands of
dollars)
|
(Unaudited)
|
|
|
Six Months
Ended
|
|
|
June 30,
|
|
|
2020
|
|
|
2019
|
|
Cash (used in)
provided by:
|
|
|
|
|
|
|
|
Operating
Activities
|
|
|
|
|
|
|
|
Net (loss)
income
|
$
|
(89,458)
|
|
|
$
|
26,323
|
|
Adjustments to
reconcile net (loss) income to cash from operating
activities:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
27,182
|
|
|
|
29,804
|
|
Credit loss
expense
|
|
11,657
|
|
|
|
1,358
|
|
Write-downs
|
|
6,806
|
|
|
|
508
|
|
Deferred income tax
(benefit) expense
|
|
(4,878)
|
|
|
|
1,296
|
|
Share-based and other
non-cash compensation
|
|
10,850
|
|
|
|
11,710
|
|
Unrealized foreign
currency exchange loss (gain)
|
|
312
|
|
|
|
(14)
|
|
Loss in fair value of
equity securities
|
|
2,514
|
|
|
|
2,053
|
|
Equity in losses of
investees
|
|
529
|
|
|
|
222
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
36,971
|
|
|
|
489
|
|
Inventories
|
|
(16,887)
|
|
|
|
(3,226)
|
|
Film Assets
|
|
(4,057)
|
|
|
|
(8,214)
|
|
Deferred
revenue
|
|
9,799
|
|
|
|
(1,355)
|
|
Changes in other
operating assets and liabilities
|
|
(12,220)
|
|
|
|
(12,437)
|
|
Net cash (used in)
provided by operating activities
|
|
(20,880)
|
|
|
|
48,517
|
|
Investing
Activities
|
|
|
|
|
|
|
|
Purchase of property,
plant and equipment
|
|
(594)
|
|
|
|
(4,175)
|
|
Purchase of equipment
for joint revenue sharing arrangements
|
|
(3,908)
|
|
|
|
(22,235)
|
|
Acquisition of other
intangible assets
|
|
(1,221)
|
|
|
|
(1,121)
|
|
Investment in equity
securities
|
|
—
|
|
|
|
(15,153)
|
|
Net cash used in
investing activities
|
|
(5,723)
|
|
|
|
(42,684)
|
|
Financing
Activities
|
|
|
|
|
|
|
|
Increase in credit
facility borrowings
|
|
280,244
|
|
|
|
35,000
|
|
Repayment of credit
facility borrowings
|
|
—
|
|
|
|
(50,000)
|
|
Credit facility
amendment fees paid
|
|
(959)
|
|
|
|
—
|
|
Settlement of
restricted share units and options
|
|
(2,757)
|
|
|
|
(7,619)
|
|
Treasury stock
repurchased for future settlement of restricted share
units
|
|
(329)
|
|
|
|
(1,575)
|
|
Repurchase of common
shares, IMAX China
|
|
(1,532)
|
|
|
|
(16,813)
|
|
Taxes withheld and
paid on employee stock awards vested
|
|
(251)
|
|
|
|
(219)
|
|
Common shares issued
- stock options exercised
|
|
—
|
|
|
|
2,379
|
|
Repurchase of common
shares
|
|
(36,624)
|
|
|
|
(1,258)
|
|
Issuance of
subsidiary shares to non-controlling interests (net of return on
capital)
|
|
—
|
|
|
|
1,106
|
|
Dividends paid to
non-controlling interests
|
|
(2,118)
|
|
|
|
(2,266)
|
|
Net cash provided
by (used in) financing activities
|
|
235,674
|
|
|
|
(41,265)
|
|
Effects of exchange
rate changes on cash
|
|
431
|
|
|
|
293
|
|
Increase
(decrease) in cash and cash equivalents during
period
|
|
209,502
|
|
|
|
(35,139)
|
|
Cash and cash
equivalents, beginning of period
|
|
109,484
|
|
|
|
141,590
|
|
Cash and cash
equivalents, end of period
|
$
|
318,986
|
|
|
$
|
106,451
|
|
|
Three Months
Ended
|
|
|
Six Months
Ended
|
|
|
June
30,
|
|
|
June
30,
|
|
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2019
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IMAX Technology
Network
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IMAX DMR
|
$
|
546
|
|
|
$
|
39,293
|
|
|
$
|
11,175
|
|
|
$
|
67,243
|
|
Joint revenue sharing
arrangements, contingent rent(2)
|
|
(137)
|
|
|
|
25,540
|
|
|
|
5,834
|
|
|
|
43,584
|
|
|
|
409
|
|
|
|
64,833
|
|
|
|
17,009
|
|
|
|
110,827
|
|
IMAX Technology Sales
and Maintenance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IMAX
Systems
|
|
4,549
|
|
|
|
16,501
|
|
|
|
10,237
|
|
|
|
29,527
|
|
Joint revenue sharing
arrangements, fixed fees
|
|
369
|
|
|
|
2,548
|
|
|
|
1,139
|
|
|
|
5,087
|
|
IMAX
Maintenance
|
|
—
|
|
|
|
13,207
|
|
|
|
7,370
|
|
|
|
26,158
|
|
Other Theater
Business(3)
|
|
(309)
|
|
|
|
2,580
|
|
|
|
954
|
|
|
|
4,206
|
|
|
|
4,609
|
|
|
|
34,836
|
|
|
|
19,700
|
|
|
|
64,978
|
|
New Business
Initiatives
|
|
632
|
|
|
|
478
|
|
|
|
1,110
|
|
|
|
1,312
|
|
Film Distribution and
Post-production
|
|
3,182
|
|
|
|
3,601
|
|
|
|
5,676
|
|
|
|
6,263
|
|
|
|
8,832
|
|
|
|
103,748
|
|
|
|
43,495
|
|
|
|
183,380
|
|
Other
|
|
23
|
|
|
|
1,049
|
|
|
|
262
|
|
|
|
1,615
|
|
Total
revenues
|
$
|
8,855
|
|
|
$
|
104,797
|
|
|
$
|
43,757
|
|
|
$
|
184,995
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Margin Loss)
Gross Margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IMAX Technology
Network
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IMAX
DMR(1)
|
$
|
(30)
|
|
|
$
|
23,961
|
|
|
$
|
4,413
|
|
|
$
|
43,736
|
|
Joint revenue sharing
arrangements, contingent rent(1)
|
|
(6,501)
|
|
|
|
19,318
|
|
|
|
(8,119)
|
|
|
|
31,253
|
|
|
|
(6,531)
|
|
|
|
43,279
|
|
|
|
(3,706)
|
|
|
|
74,989
|
|
IMAX Technology Sales
and Maintenance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IMAX Systems
(1)
|
|
2,650
|
|
|
|
8,019
|
|
|
|
5,826
|
|
|
|
15,071
|
|
Joint revenue sharing
arrangements, fixed fees(1)
|
|
48
|
|
|
|
870
|
|
|
|
227
|
|
|
|
1,165
|
|
IMAX
Maintenance
|
|
(1,908)
|
|
|
|
5,640
|
|
|
|
(1,149)
|
|
|
|
10,921
|
|
Other Theater
Business
|
|
(564)
|
|
|
|
841
|
|
|
|
46
|
|
|
|
1,316
|
|
|
|
226
|
|
|
|
15,370
|
|
|
|
4,950
|
|
|
|
28,473
|
|
New Business
Initiatives
|
|
512
|
|
|
|
281
|
|
|
|
873
|
|
|
|
900
|
|
Film Distribution and
Post-production (1)
|
|
(1,396)
|
|
|
|
458
|
|
|
|
(3,331)
|
|
|
|
433
|
|
|
|
(7,189)
|
|
|
|
59,388
|
|
|
|
(1,214)
|
|
|
|
104,795
|
|
Other
|
|
(499)
|
|
|
|
165
|
|
|
|
(1,388)
|
|
|
|
(102)
|
|
Total Segment
Margin
|
$
|
(7,688)
|
|
|
$
|
59,553
|
|
|
$
|
(2,602)
|
|
|
$
|
104,693
|
|
__________________
|
(1) IMAX
DMR gross margin includes marketing expense of $nil and $2.4
million for the three and six months ended June 30, 2020,
respectively (2019 — $9.5 million and $13.4 million,
respectively). JRSA gross margin includes advertising, marketing
and commission expense of less than $0.1 million and $0.6
million for the three and six months ended June 30, 2020,
respectively (2019 —$0.2 million and $0.3 million,
respectively). IMAX Systems gross margin includes marketing and
commission costs of $0.2 million and $0.4 million for the
three and six months ended June 30, 2020, respectively,
(2019 — $0.4 million and $0.9 million, respectively).
Film Distribution segment gross margin includes marketing expense
of $nil and $0.2 million for the three and six months ended
June 30, 2020, respectively (2019 — less than $0.1
million and $0.6 million, respectively).
|
(2) The
Company is reporting negative revenue due to the continued
amortization of lessee incentives that are typically netted against
lease revenues, which are abnormally low during the period due to
the COVID-19 global pandemic.
|
(3) The
Company is reporting negative revenue due to an adjustment to prior
period revenue.
|
IMAX CORPORATION
OTHER
INFORMATION
(in thousands of U.S. dollars)
Non-GAAP Financial Measures:
In this release, the Company presents adjusted net (loss) income
attributable to common shareholders and adjusted net (loss) income
attributable to common shareholders per diluted share, EBITDA,
Adjusted EBITDA per Credit Facility, Adjusted EBITDA margin, and
free cash flow as supplemental measures of the Company's
performance, which are not recognized under U.S. GAAP. Adjusted net
(loss) income attributable to common shareholders and adjusted net
(loss) income attributable to common shareholders per diluted share
exclude, where applicable: (i) share-based compensation; (ii) exit
costs, restructuring charges and associated impairments, (iii)
changes in the fair value of equity investments, (iv) COVID-19
government relief benefits, as well as the related tax impact of
these adjustments, and (v) the income tax effects related to the
removal of the indefinitely reinvested assertion on the historical
earnings of certain subsidiaries.
The Company believes that these non-GAAP financial measures are
important supplemental measures that allow management and users of
the Company's financial statements to view operating trends and
analyze controllable operating performance on a comparable basis
between periods without the after-tax impact of share-based
compensation and certain unusual items included in net (loss)
income attributable to common shareholders. Although share-based
compensation is an important aspect of the Company's employee and
executive compensation packages, it is a non-cash expense and is
excluded from certain internal business performance measures.
In addition to the non-GAAP financial measures discussed above,
management also uses "EBITDA," as such term is defined in the
Credit Agreement, and which is referred to herein as "Adjusted
EBITDA per Credit Facility." As allowed by the Credit Agreement,
Adjusted EBITDA per Credit Facility includes adjustments in
addition to the exclusion of interest, taxes, depreciation and
amortization. Accordingly, this non-GAAP financial measure is
presented to allow a more comprehensive analysis of the Company's
operating performance and to provide additional information with
respect to the Company's compliance against its Credit Agreement
requirements in the current period, if applicable. In addition, the
Company believes that Adjusted EBITDA per Credit Facility presents
relevant and useful information widely used by analysts, investors
and other interested parties in the Company's industry to evaluate,
assess and benchmark the Company's results.
EBITDA is defined as net (loss) income excluding (i) interest
expense, net of interest income; (ii) income tax (benefit) expense;
and (iii) depreciation and amortization, including film asset
amortization. Adjusted EBITDA per Credit Facility is defined as
EBITDA excluding: (i) share-based and other non-cash compensation;
(ii) gain (loss) in fair value of equity investment; (iii)
write-downs, net of recoveries, including asset impairments and
credit loss expense; (iv) gain (loss) from equity accounted
investment; (v) exit costs, restructuring charges and associated
impairments; (vi) legal arbitration award; and (vii) executive
transition costs.
Free cash flow is defined as cash provided by operating
activities minus cash used in investing activities (from the
condensed consolidated statements of cash flows). Cash provided by
operating activities consist of net (loss) 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 below.
These non-GAAP measures may not be comparable to similarly
titled amounts reported by other companies. Additionally, the
non-GAAP financial measures used by the Company should not be
considered as a substitute for, or superior to, the comparable GAAP
amounts. A reconciliation of each of these non-GAAP measures to the
most directly comparable GAAP measures is presented below.
|
For the Three
Months Ended June 30, 2020
|
|
|
For the Three
Months Ended June 30, 2019
|
|
|
Attributable
to
Non-controlling
|
|
|
Less:
|
|
|
|
|
|
Attributable
to
Non-controlling
|
|
|
Less:
|
|
|
|
|
|
Interests
and
|
|
|
Attributable
to
|
|
|
Attributable
to
|
|
|
Interests
and
|
|
|
Attributable
to
|
|
|
Attributable to
|
|
|
Common
|
|
|
Non-controlling
|
|
|
Common
|
|
|
Common
|
|
|
Non-controlling
|
|
|
Common
|
|
|
Shareholders
|
|
|
Interests
|
|
|
Shareholders
|
|
|
Shareholders
|
|
|
Interests
|
|
|
Shareholders
|
|
(In thousands
of U.S. Dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported net
loss
|
$
|
|
(30,047)
|
|
|
$
|
|
(4,080)
|
|
|
$
|
|
(25,967)
|
|
|
$
|
|
13,836
|
|
|
$
|
|
2,439
|
|
|
$
|
|
11,397
|
|
Add
(subtract):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax (benefit)
expense
|
|
|
(10,248)
|
|
|
|
|
638
|
|
|
|
|
(10,886)
|
|
|
|
|
5,308
|
|
|
|
|
1,187
|
|
|
|
|
4,121
|
|
Interest expense, net
of interest income
|
|
|
524
|
|
|
|
|
(96)
|
|
|
|
|
620
|
|
|
|
|
64
|
|
|
|
|
(140)
|
|
|
|
|
204
|
|
Depreciation and
amortization, including film asset amortization
|
|
|
11,930
|
|
|
|
|
1,049
|
|
|
|
|
10,881
|
|
|
|
|
15,593
|
|
|
|
|
1,177
|
|
|
|
|
14,416
|
|
EBITDA
|
$
|
|
(27,841)
|
|
|
$
|
|
(2,489)
|
|
|
$
|
|
(25,352)
|
|
|
$
|
|
34,801
|
|
|
$
|
|
4,663
|
|
|
$
|
|
30,138
|
|
Share-based and other
non-cash compensation
|
|
|
6,541
|
|
|
|
|
299
|
|
|
|
|
6,242
|
|
|
|
|
7,186
|
|
|
|
|
228
|
|
|
|
|
6,958
|
|
(Gain) Loss in fair
value of equity investment
|
|
|
(2,025)
|
|
|
|
|
(612)
|
|
|
|
|
(1,413)
|
|
|
|
|
4,544
|
|
|
|
|
1,443
|
|
|
|
|
3,101
|
|
Write-downs, including
asset impairments and credit loss
expense
|
|
|
3,843
|
|
|
|
|
1,815
|
|
|
|
|
2,028
|
|
|
|
|
1,169
|
|
|
|
|
84
|
|
|
|
|
1,085
|
|
Loss from equity
accounted investments
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
138
|
|
|
|
|
—
|
|
|
|
|
138
|
|
Adjusted EBITDA per
Credit Facility
|
$
|
|
(19,482)
|
|
|
$
|
|
(987)
|
|
|
$
|
|
(18,495)
|
|
|
$
|
|
47,838
|
|
|
$
|
|
6,418
|
|
|
$
|
|
41,420
|
|
Revenues attributable
to common shareholders(2)
|
|
|
8,855
|
|
|
|
|
421
|
|
|
|
|
8,434
|
|
|
|
|
104,797
|
|
|
|
|
10,216
|
|
|
|
|
94,581
|
|
Adjusted EBITDA
margin attributable to common shareholders
|
|
|
(220.0)
|
%
|
|
|
|
(234.7)
|
%
|
|
|
|
(219.3)
|
%
|
|
|
|
45.6
|
%
|
|
|
|
62.8
|
%
|
|
|
|
43.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Twelve
Months Ended June 30, 2020 (1)
|
|
|
For the Twelve
Months Ended June 30, 2019 (1)
|
|
|
Attributable
to
Non-controlling
|
|
|
Less:
|
|
|
|
|
|
Attributable
to
Non-controlling
|
|
|
Less:
|
|
|
|
|
|
Interests
and
|
|
|
Attributable
to
|
|
|
Attributable
to
|
|
|
Interests
and
|
|
|
Attributable
to
|
|
|
Attributable to
|
|
|
Common
|
|
|
Non-controlling
|
|
|
Common
|
|
|
Common
|
|
|
Non-controlling
|
|
|
Common
|
|
|
Shareholders
|
|
|
Interests
|
|
|
Shareholders
|
|
|
Shareholders
|
|
|
Interests
|
|
|
Shareholders
|
|
(In thousands
of U.S. Dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported net
loss
|
$
|
|
(57,210)
|
|
|
$
|
|
(9,093)
|
|
|
$
|
|
(48,117)
|
|
|
$
|
|
37,596
|
|
|
$
|
|
11,220
|
|
|
$
|
|
26,376
|
|
Add
(subtract):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
|
13,069
|
|
|
|
|
6,707
|
|
|
|
|
6,362
|
|
|
|
|
10,386
|
|
|
|
|
3,737
|
|
|
|
|
6,649
|
|
Interest expense, net
of interest income
|
|
|
922
|
|
|
|
|
(424)
|
|
|
|
|
1,346
|
|
|
|
|
392
|
|
|
|
|
63
|
|
|
|
|
329
|
|
Depreciation and
amortization, including film asset amortization
|
|
|
60,865
|
|
|
|
|
4,897
|
|
|
|
|
55,968
|
|
|
|
|
59,207
|
|
|
|
|
5,372
|
|
|
|
|
53,835
|
|
EBITDA
|
$
|
|
17,646
|
|
|
$
|
|
2,087
|
|
|
$
|
|
15,559
|
|
|
$
|
|
107,581
|
|
|
$
|
|
20,392
|
|
|
$
|
|
87,189
|
|
Share-based and other
non-cash compensation
|
|
|
22,710
|
|
|
|
|
730
|
|
|
|
|
21,980
|
|
|
|
|
23,513
|
|
|
|
|
527
|
|
|
|
|
22,986
|
|
Loss in fair value of
equity investment
|
|
|
978
|
|
|
|
|
274
|
|
|
|
|
704
|
|
|
|
|
2,053
|
|
|
|
|
652
|
|
|
|
|
1,401
|
|
Write-downs, including
asset impairments and credit loss
expense
|
|
|
23,404
|
|
|
|
|
5,420
|
|
|
|
|
17,984
|
|
|
|
|
5,518
|
|
|
|
|
1,827
|
|
|
|
|
3,691
|
|
Loss from equity
accounted investments
|
|
|
304
|
|
|
|
|
—
|
|
|
|
|
304
|
|
|
|
|
409
|
|
|
|
|
—
|
|
|
|
|
409
|
|
Exit costs,
restructuring charges and associated impairments
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
9,234
|
|
|
|
|
—
|
|
|
|
|
9,234
|
|
Legal arbitration
award
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
4,237
|
|
|
|
|
—
|
|
|
|
|
4,237
|
|
Executive transition
costs
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
2,994
|
|
|
|
|
—
|
|
|
|
|
2,994
|
|
Adjusted EBITDA per
Credit Facility
|
$
|
|
65,042
|
|
|
$
|
|
8,511
|
|
|
$
|
|
56,531
|
|
|
$
|
|
155,539
|
|
|
$
|
|
23,398
|
|
|
$
|
|
132,141
|
|
Revenues attributable
to common shareholders(2)
|
|
|
254,426
|
|
|
|
|
21,697
|
|
|
|
|
232,729
|
|
|
|
|
376,067
|
|
|
|
|
39,905
|
|
|
|
|
336,162
|
|
Adjusted EBITDA
margin attributable to common shareholders
|
|
|
25.6
|
%
|
|
|
|
39.2
|
%
|
|
|
|
24.3
|
%
|
|
|
|
41.4
|
%
|
|
|
|
58.6
|
%
|
|
|
|
39.3
|
%
|
_____________
|
|
(1) Senior Secured
Net Leverage Ratio calculated using twelve months ended Adjusted
EBITDA per Credit Facility. During the second quarter, the Company
entered into the Amendment to the Credit Facility Agreement which
provides for, among other things, the suspension of the Senior
Secured Net Leverage Ratio financial covenant through the first
quarter of 2021.
|
(2)
|
|
|
Three months ended
June 30, 2020
|
|
|
Three months ended
June 30, 2019
|
|
|
12 months ended
June 30, 2020
|
|
|
12 months ended
June 30, 2019
|
|
Total
revenues
|
|
|
|
|
|
$
|
|
8,855
|
|
|
|
|
|
|
|
$
|
|
104,797
|
|
|
|
|
|
|
|
$
|
|
254,426
|
|
|
|
|
|
|
$
|
|
376,067
|
|
Greater China
revenues
|
$
|
|
1,393
|
|
|
|
|
|
|
|
$
|
|
32,575
|
|
|
|
|
|
|
|
$
|
|
71,700
|
|
|
|
|
|
|
|
$
|
|
125,289
|
|
|
|
|
|
Non-controlling
interest ownership percentage(3)
|
|
|
30.19
|
%
|
|
|
|
|
|
|
|
|
31.36
|
%
|
|
|
|
|
|
|
|
|
30.26
|
%
|
|
|
|
|
|
|
|
|
31.85
|
%
|
|
|
|
|
Deduction for
non-controlling interest share of revenues
|
|
|
|
|
|
|
|
(421)
|
|
|
|
|
|
|
|
|
|
(10,216)
|
|
|
|
|
|
|
|
|
|
(21,697)
|
|
|
|
|
|
|
|
|
(39,905)
|
|
Revenues attributable
to common shareholders
|
|
|
|
|
|
$
|
|
8,434
|
|
|
|
|
|
|
|
$
|
|
94,581
|
|
|
|
|
|
|
|
$
|
|
232,729
|
|
|
|
|
|
|
$
|
|
336,162
|
|
|
(3) Weighted average
ownership percentage for change in non-controlling interest
share
|
IMAX
CORPORATION
|
Adjusted Net
(Loss) Income Attributable to Common Shareholders and Adjusted
Diluted Per Share Calculations
|
(In thousands of
U.S. dollars)
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
|
Three Months
Ended
|
|
|
June 30,
2020
|
|
|
June 30,
2019
|
|
(In thousands
of U.S. dollars, except per share amounts)
|
Net
Loss
|
|
|
Diluted
EPS
|
|
|
Net
Income
|
|
|
Diluted
EPS
|
|
Reported net (loss)
income attributable to common shareholders
|
$
|
(25,967)
|
|
|
$
|
(0.44)
|
|
|
$
|
11,397
|
|
|
$
|
0.19
|
|
Adjustments(1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation
|
|
6,168
|
|
|
|
0.10
|
|
|
$
|
6,799
|
|
|
|
0.11
|
|
Change in the fair
value of equity securities
|
|
(1,413)
|
|
|
|
(0.02)
|
|
|
|
3,101
|
|
|
|
0.05
|
|
COVID-19 government
relief benefits
|
|
(3,151)
|
|
|
|
(0.05)
|
|
|
|
—
|
|
|
|
—
|
|
Tax Impact on items
listed above
|
|
(857)
|
|
|
|
(0.01)
|
|
|
|
(1,604)
|
|
|
|
(0.03)
|
|
Income tax effects
related to the removal of the indefinitely reinvested assertion on
the historical earnings of certain subsidiaries
|
|
(841)
|
|
|
|
(0.02)
|
|
|
|
—
|
|
|
|
—
|
|
Adjusted net (loss)
income(1)
|
$
|
(26,061)
|
|
|
$
|
(0.44)
|
|
|
$
|
19,693
|
|
|
$
|
0.32
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
basic shares outstanding
|
|
|
|
|
|
58,808
|
|
|
|
|
|
|
|
61,331
|
|
Weighted average
diluted shares outstanding
|
|
|
|
|
|
58,808
|
|
|
|
|
|
|
|
61,507
|
|
|
|
(1)
|
Reflects amounts
attributable to non-controlling interests.
|
|
Six Months
Ended
|
|
|
Six Months
Ended
|
|
|
June 30,
2020
|
|
|
June 30,
2019
|
|
(In thousands
of U.S. dollars, except per share amounts)
|
Net
Income
|
|
|
Diluted
EPS
|
|
|
Net
Income
|
|
|
Diluted
EPS
|
|
Reported net (loss)
income attributable to common shareholders
|
$
|
(75,321)
|
|
|
$
|
(1.26)
|
|
|
$
|
19,662
|
|
|
$
|
0.32
|
|
Adjustments(1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation
|
|
10,243
|
|
|
|
0.17
|
|
|
$
|
11,076
|
|
|
|
0.18
|
|
Exit costs,
restructuring charges and associated impairments
|
|
—
|
|
|
|
—
|
|
|
|
850
|
|
|
|
0.01
|
|
Change in the fair
value of equity securities
|
|
1,752
|
|
|
|
0.03
|
|
|
|
1,401
|
|
|
|
0.03
|
|
COVID-19 government
relief benefits
|
|
(3,151)
|
|
|
|
(0.05)
|
|
|
|
—
|
|
|
|
—
|
|
Tax impact on items
listed above
|
|
(1,195)
|
|
|
|
(0.02)
|
|
|
|
(2,484)
|
|
|
|
(0.04)
|
|
Income tax effects
related to the removal of the indefinitely reinvested assertion on
the historical earnings of certain subsidiaries
|
|
12,885
|
|
|
|
0.21
|
|
|
|
—
|
|
|
|
—
|
|
Adjusted net (loss)
income(1)
|
$
|
(54,787)
|
|
|
$
|
(0.92)
|
|
|
$
|
30,505
|
|
|
$
|
0.50
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average basic shares outstanding
|
|
|
|
|
|
59,613
|
|
|
|
|
|
|
|
61,354
|
|
Weighted average
diluted shares outstanding
|
|
|
|
|
|
59,613
|
|
|
|
|
|
|
|
61,525
|
|
|
|
(1)
|
Reflects amounts
attributable to non-controlling interests.
|
Free Cash
Flow:
|
|
|
Three Months
Ended
|
|
|
Six Months
Ended
|
|
|
June 30,
2020
|
|
|
June 30,
2020
|
|
Net cash used in
operating activities
|
$
|
|
(26,846)
|
|
|
$
|
|
(20,880)
|
|
Net cash used in
investing activities
|
|
|
(3,010)
|
|
|
|
|
(5,723)
|
|
Free cash
flow
|
$
|
|
(29,856)
|
|
|
$
|
|
(26,603)
|
|
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SOURCE IMAX Corporation