NEW YORK, Oct. 29, 2020 /PRNewswire/ --
HIGHLIGHTS
- Global theatrical industry continues opening with IMAX network
in Asia almost fully operational
and robust local language titles driving IMAX box office grosses
near pre-pandemic levels
- IMAX ended the quarter with $305
million of cash and cash equivalents
- Company expects average monthly cash flow for fourth quarter of
2020 and first quarter of 2021 to be approximately break-even,
representing continued free cash flow improvement
- IMAX installed 23 systems and signed agreements for ten systems
in the quarter, demonstrating continued partner demand for IMAX®
theater systems despite the temporary delay of major theatrical
releases
- As a result of the global pandemic, third quarter 2020 revenue
was $37.3 million versus $86.4 million in the third quarter of 2019. Third
quarter 2020 net (loss) attributable to common shareholders was
($47.2) million versus $9.0 million in the prior-year period. Third
quarter financial results include the following non-cash items:
$23.7 million or $0.40 per share deferred tax asset valuation
allowance, $5.7 million film asset
impairment, and a $3.9 million
provision for credit losses
- Non-GAAP adjusted EBITDA (loss) was ($0.3) million in third quarter 2020 versus
$32.4 million in the prior-year
period
|
|
Three Months
Ended
|
|
|
|
September 30,
|
|
In thousands
except per share data
|
|
2020
|
|
|
2019
|
|
|
YoY
%
Change
|
|
Total
Revenue
|
|
$
|
37.3
|
|
|
$
|
86.4
|
|
|
|
(56.9)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Margin
|
|
$
|
3.8
|
|
|
$
|
47.1
|
|
|
|
(91.9)
|
%
|
Gross Margin
(%)
|
|
|
10.3
|
%
|
|
|
54.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (Loss) Income
attributable to common shareholders
|
|
$
|
(47.2)
|
|
|
$
|
9.0
|
|
|
N/A
|
|
Diluted Net (Loss)
Income per share attributable to common
shareholders
|
|
$
|
(0.80)
|
|
|
$
|
0.15
|
|
|
N/A
|
|
Adjusted Net (Loss)
Income attributable to common shareholders(1)
|
|
$
|
(44.6)
|
|
|
$
|
12.8
|
|
|
N/A
|
|
Adjusted Net (Loss)
Income per share attributable to common
shareholders(1)
|
|
$
|
(0.75)
|
|
|
$
|
0.21
|
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA per
Credit Facility attributable to common
shareholders(1)
|
|
$
|
(0.3)
|
|
|
$
|
32.4
|
|
|
N/A
|
|
Adjusted EBITDA Margin
attributable to common shareholders (%) (1)
|
|
|
(0.8)
|
%
|
|
|
41.4
|
%
|
|
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 third quarter
results as the global theatrical industry continues recovery,
highlighted by a notably resurgent box office in Asia. IMAX
reported improved cash flow and further reduced costs while
benefiting from the Company's diversified global footprint,
continued growth in its theater network as well as the robust Asian
film market - particularly in China and Japan - where audiences are
returning to theaters attracted by a strong local language
slate.
"As the only global theatrical platform for blockbuster
entertainment, our experience around the world has proven that
audiences will enthusiastically return to the movies where theaters
are open and they feel safe. As they do return, they are coming
back to IMAX — underscoring the enduring strength of our brand and
the power of The IMAX Experience®," said IMAX CEO,
Richard L. Gelfond.
"With continued box office revenues from our strong local
language slate and revenues from theater installations, the Company
estimates our average monthly cash flow will be approximately
break-even through the first quarter of 2021."
"Our multi-year strategic effort to geographically diversify our
business is paying off, as our strong local language slate
continues to partially offset the lack of Hollywood releases in the market. From
the year's number-one global box office release in China, "The Eight Hundred" — the first
commercial Asian film shot entirely with IMAX cameras — to
Japan's record-breaking "Demon
Slayer", we believe that IMAX is poised to benefit from the
impressive resurgence of the Asian film market. IMAX has no fewer
than 10 local language releases in the fourth quarter of 2020, with
the promising Chinese New Year box office period on its heels in
February."
"IMAX remains well-positioned to manage through the continued
recovery of the global film industry as cinemas await the return of
Hollywood tentpoles. We have
a significant financial runway with $305 million of cash on our balance sheet at the
end of the third quarter."
The Company reported 2020 revenues of $37.3 million, gross margin of $3.8 million, and a net (loss) attributable to
common shareholders of ($47.2)
million, or ($0.80) per
diluted share.
IMAX results reflect the COVID-19 related closure of the
majority of the Company's network through a portion of the third
quarter. Third quarter financial results also reflect the inclusion
of a number of notable non-cash items related to COVID-19 driven
uncertainty, the delay of Hollywood releases, and the reclosure of
theaters in some markets. These non-cash items include: a
$23.7 million valuation allowance to
reduce the value of deferred tax assets; a $5.7 million impairment loss related to
documentary and alternative content films assets; and a
$3.9 million provision for current
expected credit losses reflecting a reduction in the credit quality
of the theater receivable balances.
Third Quarter and
September Year-to-Date Segment Results(1)
|
|
|
|
IMAX Technology
Network
|
|
|
IMAX Technology
Sales and Maintenance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
Gross
Margin
(Margin
Loss)
|
|
|
Gross
Margin
(Margin Loss)
%
|
|
|
Revenue
|
|
|
Gross
Margin
|
|
|
Gross
Margin %
|
|
3Q20
|
|
$
|
11.4
|
|
|
$
|
0.6
|
|
|
|
5.2
|
%
|
|
$
|
23.7
|
|
|
|
$
|
9.4
|
|
|
|
39.6
|
%
|
3Q19
|
|
43.3
|
|
|
|
27.4
|
|
|
|
63.3
|
%
|
|
37.6
|
|
|
|
|
18.4
|
|
|
|
48.9
|
%
|
%
change
|
|
|
(73.7)
|
%
|
|
|
(97.9)
|
%
|
|
|
|
|
|
|
(37.1)
|
%
|
|
|
|
(49.1)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YTD
3Q20
|
|
$
|
28.4
|
|
|
$
|
(3.1)
|
|
|
|
(11.0)
|
%
|
|
$
|
43.4
|
|
|
|
$
|
14.3
|
|
|
|
33.0
|
%
|
YTD
3Q19
|
|
154.1
|
|
|
|
102.4
|
|
|
|
66.4
|
%
|
|
|
102.6
|
|
|
|
|
46.9
|
|
|
|
45.7
|
%
|
%
change
|
|
|
(81.6)
|
%
|
|
|
(103.0)
|
%
|
|
|
|
|
|
|
(57.7)
|
%
|
|
|
|
(69.4)
|
%
|
|
|
|
|
|
|
(1) Please
refer to the Company's Form 10-Q for the period ended September 30,
2020 for additional segment information
|
IMAX Technology Network
- IMAX Technology Network revenues decreased 73.7% to
$11.4 million in the third quarter of
2020, compared to $43.3 million in
the prior-year period. The closure of the Company's network through
the first half of the quarter, the partial opening of theaters in
late August and September, and the release of fewer films as
Hollywood continues to delay major
titles impacted year over year results.
- Gross margin for the IMAX Technology Network was $0.6 million in the third quarter of 2020 and was
driven by lower revenue and ongoing fixed costs associated with our
installed IMAX network.
IMAX Technology Sales and Maintenance
- IMAX Technology Sales and Maintenance revenues decreased 37.1%
to $23.7 million in the third quarter
of 2020, compared with $37.6 million
in the prior year period. Five fewer sales and sales type lease
installations resulted in lower IMAX system revenue. IMAX
maintenance revenue declined to $5.9
million as COVID-19-related closures of IMAX theater systems
through a portion of the quarter prevented the recognition of
revenue.
- Total gross margin for IMAX Technology Sales and Maintenance
was $9.4 million compared to
$18.4 million in the prior year
period.
Cash Balances and Outstanding Debt
Total cash and cash equivalents as of September 30, 2020 were $305 million. Total debt, excluding deferred
financing fees, was $300.3 million as
of September 30, 2020.
Share Count and Capital Return
The weighted average diluted shares outstanding at the end of
the third quarter of 2020 declined 4.3% to 58.9 million, compared
to 61.5 million in the third quarter of 2019, due primarily to
share repurchase activity during the twelve-month period. During
the third 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
2020 and now expires in June
2021.
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 8:30AM ET to discuss its third 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 4692103. 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 4692103.
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 September 30, 2020, there were 1,632 IMAX theater
systems (1,542 commercial multiplexes, 13 commercial destinations,
77 institutional) operating in 82 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 business and technology strategies and
measures to implement strategies, competitive strengths, goals,
expansion and growth of business, operations and technology, future
capital expenditures (including the amount and nature thereof),
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 IMAX 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 movie 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 IMAX 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. Consequently, all of the forward-looking statements
made in this earnings release are qualified by
these cautionary statements, and actual results or anticipated
developments by the Company may not be realized, and even if
substantially realized, may not have the expected consequences to,
or effects on, 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 September
30,
|
|
|
Theater System
Signings:
|
|
2020
|
|
|
|
2019
|
|
|
Full new sales and
sales-type lease arrangements
|
|
|
8
|
|
|
|
|
22
|
|
|
New hybrid joint
revenue sharing lease arrangements
|
|
|
-
|
|
|
|
|
-
|
|
|
New traditional joint
revenue sharing arrangements
|
|
|
-
|
|
|
|
|
-
|
|
|
Total new IMAX
theaters
|
|
|
8
|
|
|
|
|
22
|
|
|
Upgrades of IMAX
theater systems
|
|
|
2
|
|
|
|
|
8
|
|
|
Total theater
signings
|
|
|
10
|
|
|
|
|
30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months
Ended September
30,
|
|
|
Theater System
Installations:
|
|
2020
|
|
|
|
2019
|
|
|
Full new sales and
sales-type lease arrangements
|
|
|
9
|
|
|
|
|
14
|
|
|
New hybrid joint
revenue sharing lease arrangements
|
|
|
1
|
|
|
|
|
4
|
|
|
New traditional joint
revenue sharing arrangements
|
|
|
8
|
|
|
|
|
12
|
|
|
Total new IMAX
theaters
|
|
|
18
|
|
|
|
|
30
|
|
|
Upgrades of IMAX
theater systems
|
|
|
5
|
|
|
|
|
9
|
|
|
Total theater
installations
|
|
|
23
|
|
|
|
|
39
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months
Ended September
30,
|
|
|
Theater Sales
Backlog:
|
|
2020
|
|
|
|
2019
|
|
|
Sales and sales-type
lease arrangements
|
|
|
193
|
|
|
|
|
205
|
|
|
Hybrid
JRSA
|
|
|
146
|
|
|
|
|
149
|
|
|
Traditional
JRSA
|
|
|
206
|
|
(1)
|
|
|
253
|
|
(1)
|
Total theater
backlog
|
|
|
545
|
|
(2)
|
|
|
607
|
|
(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months
Ended September
30,
|
|
|
Theater
Network:
|
|
2020
|
|
|
|
2019
|
|
|
Commercial Multiplex
Theaters:
|
|
|
|
|
|
|
|
|
|
|
Sales and sales-type
lease arrangements
|
|
|
661
|
|
|
|
|
632
|
|
|
Hybrid joint revenue
sharing lease arrangements
|
|
|
139
|
|
|
|
|
135
|
|
|
Traditional joint
revenue sharing lease arrangements
|
|
|
742
|
|
|
|
|
706
|
|
|
Total Commercial
Multiplex Theaters(4)
|
|
|
1,542
|
|
|
|
|
1,473
|
|
|
Commercial Destination
Theaters
|
|
|
13
|
|
|
|
|
14
|
|
|
Institutional
Theaters
|
|
|
77
|
|
|
|
|
81
|
|
|
Total theater
network
|
|
|
1,632
|
|
|
|
|
1,568
|
|
|
|
(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 — 50).
|
(2) Includes
155 new IMAX with Laser projection system configurations and 92
upgrades of existing locations to IMAX with Laser projection system
configurations.
|
(3) Includes
145 new IMAX with Laser projection system configurations and 119
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
|
|
|
Nine Months
Ended
|
|
|
|
|
September
30,
|
|
|
September
30,
|
|
|
|
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2019
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Technology
sales
|
|
$
|
15,753
|
|
|
$
|
21,735
|
|
|
$
|
24,102
|
|
|
$
|
56,629
|
|
Image enhancement and
maintenance services
|
|
|
14,589
|
|
|
|
44,168
|
|
|
|
39,109
|
|
|
|
144,977
|
|
Technology
rentals
|
|
|
4,473
|
|
|
|
17,642
|
|
|
|
10,307
|
|
|
|
61,675
|
|
Finance
income
|
|
|
2,441
|
|
|
|
2,845
|
|
|
|
7,495
|
|
|
|
8,104
|
|
|
|
|
|
37,256
|
|
|
|
86,390
|
|
|
|
81,013
|
|
|
|
271,385
|
|
Costs and expenses
applicable to revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Technology
sales
|
|
|
9,222
|
|
|
|
11,740
|
|
|
|
15,637
|
|
|
|
33,114
|
|
Image enhancement and
maintenance services
|
|
|
16,989
|
|
|
|
20,181
|
|
|
|
42,049
|
|
|
|
66,205
|
|
Technology
rentals
|
|
|
7,216
|
|
|
|
7,349
|
|
|
|
22,100
|
|
|
|
20,253
|
|
|
|
|
|
33,427
|
|
|
|
39,270
|
|
|
|
79,786
|
|
|
|
119,572
|
|
Gross
margin
|
|
|
3,829
|
|
|
|
47,120
|
|
|
|
1,227
|
|
|
|
151,813
|
|
Selling, general and
administrative expenses
|
|
|
24,815
|
|
|
|
29,482
|
|
|
|
83,247
|
|
|
|
89,267
|
|
Research and
development
|
|
|
1,130
|
|
|
|
1,359
|
|
|
|
4,562
|
|
|
|
3,717
|
|
Amortization of
intangibles
|
|
|
1,349
|
|
|
|
1,271
|
|
|
|
4,014
|
|
|
|
3,564
|
|
Credit loss
expense
|
|
|
3,925
|
|
|
|
599
|
|
|
|
15,582
|
|
|
|
1,957
|
|
Asset
impairments
|
|
|
-
|
|
|
|
-
|
|
|
|
1,151
|
|
|
|
-
|
|
Exit costs,
restructuring charges and associated impairments
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
850
|
|
(Loss) income from
operations
|
|
|
(27,390)
|
|
|
|
14,409
|
|
|
|
(107,329)
|
|
|
|
52,458
|
|
Gain (loss) in fair
value of investments
|
|
|
1,575
|
|
|
|
(490)
|
|
|
|
(939)
|
|
|
|
(2,543)
|
|
Retirement benefits
non-service expense
|
|
|
(186)
|
|
|
|
(160)
|
|
|
|
(432)
|
|
|
|
(480)
|
|
Interest
income
|
|
|
586
|
|
|
|
490
|
|
|
|
1,842
|
|
|
|
1,632
|
|
Interest
expense
|
|
|
(2,391)
|
|
|
|
(489)
|
|
|
|
(4,620)
|
|
|
|
(1,806)
|
|
(Loss) income
before taxes
|
|
|
(27,806)
|
|
|
|
13,760
|
|
|
|
(111,478)
|
|
|
|
49,261
|
|
Income tax
expense
|
|
|
(19,349)
|
|
|
|
(3,030)
|
|
|
|
(24,606)
|
|
|
|
(11,986)
|
|
Equity in (losses)
gains of investees, net of tax
|
|
(1,329)
|
|
|
|
166
|
|
|
|
(1,858)
|
|
|
|
(56)
|
|
Net (loss)
income
|
|
|
(48,484)
|
|
|
|
10,896
|
|
|
|
(137,942)
|
|
|
|
37,219
|
|
Less: Net loss
(income) attributable to non-controlling interests
|
|
|
1,275
|
|
|
|
(1,863)
|
|
|
|
15,412
|
|
|
|
(8,524)
|
|
Net (loss) income
attributable to common shareholders
|
|
$
|
(47,209)
|
|
|
$
|
9,033
|
|
|
$
|
(122,530)
|
|
|
$
|
28,695
|
|
Net (loss) income
per share attributable to common shareholders -
basic and
diluted:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income per
share — basic and diluted
|
|
$
|
(0.80)
|
|
|
$
|
0.15
|
|
|
$
|
(2.06)
|
|
|
$
|
0.47
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding (000's):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
58,859
|
|
|
|
61,304
|
|
|
|
59,360
|
|
|
|
61,337
|
|
|
Fully
Diluted
|
|
|
58,859
|
|
|
|
61,479
|
|
|
|
59,360
|
|
|
|
61,509
|
|
Additional
Disclosure:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization(1)
|
|
$
|
14,112
|
|
|
$
|
15,696
|
|
|
$
|
41,294
|
|
|
$
|
45,500
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes $0.3
million and $0.6 million of amortization of deferred financing
costs charged to interest expense for the three months and nine
months ended September 30, 2020, respectively ($0.1 million and
$0.4 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)
|
|
|
|
September 30,
|
|
|
December
31,
|
|
|
|
2020
|
|
|
2019
|
|
Assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
305,197
|
|
|
$
|
109,484
|
|
Accounts receivable,
net of allowance for credit losses
|
|
|
59,674
|
|
|
|
99,513
|
|
Financing
receivables, net of allowance for credit losses
|
|
|
126,740
|
|
|
|
128,038
|
|
Variable
consideration receivable, net of allowance for credit
losses
|
|
|
39,394
|
|
|
|
40,040
|
|
Inventories
|
|
|
53,021
|
|
|
|
42,989
|
|
Prepaid
expenses
|
|
|
10,812
|
|
|
|
10,237
|
|
Film
assets
|
|
|
7,468
|
|
|
|
17,921
|
|
Property, plant and
equipment
|
|
|
282,854
|
|
|
|
306,849
|
|
Investment in equity
securities
|
|
|
14,803
|
|
|
|
15,685
|
|
Other
assets
|
|
|
23,796
|
|
|
|
25,034
|
|
Deferred income tax
assets
|
|
|
17,737
|
|
|
|
23,905
|
|
Other intangible
assets
|
|
|
27,019
|
|
|
|
30,347
|
|
Goodwill
|
|
|
39,027
|
|
|
|
39,027
|
|
Total
assets
|
|
$
|
1,007,542
|
|
|
$
|
889,069
|
|
Liabilities
|
|
|
|
|
|
|
|
|
Bank
indebtedness
|
|
$
|
297,985
|
|
|
$
|
18,229
|
|
Accounts
payable
|
|
|
12,011
|
|
|
|
20,414
|
|
Accrued and other
liabilities
|
|
|
103,970
|
|
|
|
112,779
|
|
Deferred
revenue
|
|
|
99,770
|
|
|
|
94,552
|
|
Deferred income tax
liabilities
|
|
|
18,661
|
|
|
|
—
|
|
Total
liabilities
|
|
|
532,397
|
|
|
|
245,974
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
Non-controlling
interests
|
|
|
776
|
|
|
|
5,908
|
|
Shareholders'
equity
|
|
|
|
|
|
|
|
|
Capital stock common
shares — no par value. Authorized — unlimited number.
|
|
|
|
|
|
|
|
|
58,878,749 issued and
58,861,171 outstanding (December 31, 2019 — 61,362,872 issued and
61,175,852 outstanding)
|
|
|
405,583
|
|
|
|
423,386
|
|
Less: Treasury stock,
17,578 shares at cost (December 31, 2019 — 187,020)
|
|
|
(271)
|
|
|
|
(4,038)
|
|
Other
equity
|
|
|
177,110
|
|
|
|
171,789
|
|
Accumulated
deficit
|
|
|
(181,604)
|
|
|
|
(40,253)
|
|
Accumulated other
comprehensive loss
|
|
|
(1,984)
|
|
|
|
(3,190)
|
|
Total
shareholders' equity attributable to common
shareholders
|
|
|
398,834
|
|
|
|
547,694
|
|
Non-controlling
interests
|
|
|
75,535
|
|
|
|
89,493
|
|
Total
shareholders' equity
|
|
|
474,369
|
|
|
|
637,187
|
|
Total liabilities
and shareholders' equity
|
|
$
|
1,007,542
|
|
|
$
|
889,069
|
|
IMAX
CORPORATION
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands of
dollars)
(Unaudited)
|
|
|
|
Nine Months
Ended
|
|
|
|
September 30,
|
|
|
|
2020
|
|
|
2019
|
|
Cash (used in)
provided by:
|
|
|
|
|
|
|
|
|
Operating
Activities
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
|
$
|
(137,942)
|
|
|
$
|
37,219
|
|
Adjustments to
reconcile net (loss) income to cash from operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
41,294
|
|
|
|
45,500
|
|
Credit loss
expense
|
|
|
15,582
|
|
|
|
1,957
|
|
Write-downs
|
|
|
13,339
|
|
|
|
1,027
|
|
Deferred income tax
expense
|
|
|
23,142
|
|
|
|
1,035
|
|
Share-based and other
non-cash compensation
|
|
|
16,345
|
|
|
|
17,397
|
|
Unrealized foreign
currency exchange (gain) loss
|
|
|
(394)
|
|
|
|
214
|
|
Loss in fair value of
equity securities
|
|
|
939
|
|
|
|
2,543
|
|
Equity in losses of
investees
|
|
|
1,858
|
|
|
|
56
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
30,350
|
|
|
|
9,613
|
|
Inventories
|
|
|
(10,278)
|
|
|
|
(13,422)
|
|
Film Assets
|
|
|
(6,177)
|
|
|
|
(15,405)
|
|
Deferred
revenue
|
|
|
5,233
|
|
|
|
(2,599)
|
|
Changes in other
operating assets and liabilities
|
|
|
(24,109)
|
|
|
|
(17,878)
|
|
Net cash (used in)
provided by operating activities
|
|
|
(30,818)
|
|
|
|
67,257
|
|
Investing
Activities
|
|
|
|
|
|
|
|
|
Purchase of property,
plant and equipment
|
|
|
(658)
|
|
|
|
(5,528)
|
|
Investment in
equipment for joint revenue sharing arrangements
|
|
|
(5,289)
|
|
|
|
(31,099)
|
|
Acquisition of other
intangible assets
|
|
|
(1,661)
|
|
|
|
(1,874)
|
|
Investment in equity
securities
|
|
|
—
|
|
|
|
(15,153)
|
|
Net cash used in
investing activities
|
|
|
(7,608)
|
|
|
|
(53,654)
|
|
Financing
Activities
|
|
|
|
|
|
|
|
|
Increase in revolving
credit facility borrowings
|
|
|
280,244
|
|
|
|
35,000
|
|
Repayment of
revolving credit facility borrowings
|
|
|
—
|
|
|
|
(55,000)
|
|
Credit facility
amendment fees paid
|
|
|
(1,026)
|
|
|
|
—
|
|
Settlement of
restricted share units and options
|
|
|
(2,815)
|
|
|
|
(8,589)
|
|
Treasury stock
repurchased for future settlement of restricted share
units
|
|
|
(271)
|
|
|
|
(1,572)
|
|
Repurchase of common
shares, IMAX China
|
|
|
(1,534)
|
|
|
|
(19,157)
|
|
Taxes withheld and
paid on employee stock awards vested
|
|
|
(251)
|
|
|
|
(508)
|
|
Common shares issued
- stock options exercised
|
|
|
—
|
|
|
|
2,391
|
|
Repurchase of common
shares
|
|
|
(36,624)
|
|
|
|
(2,659)
|
|
Issuance of
subsidiary shares to non-controlling interests (net of return on
capital)
|
|
|
—
|
|
|
|
1,106
|
|
Dividends paid to
non-controlling interests
|
|
|
(4,214)
|
|
|
|
(4,384)
|
|
Net cash provided
by (used in) financing activities
|
|
|
233,509
|
|
|
|
(53,372)
|
|
Effects of exchange
rate changes on cash
|
|
|
630
|
|
|
|
727
|
|
Increase
(decrease) in cash and cash equivalents during
period
|
|
|
195,713
|
|
|
|
(39,042)
|
|
Cash and cash
equivalents, beginning of period
|
|
|
109,484
|
|
|
|
141,590
|
|
Cash and cash
equivalents, end of period
|
|
$
|
305,197
|
|
|
$
|
102,548
|
|
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
|
September
30,
|
|
|
September
30,
|
|
|
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2019
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IMAX Technology
Network
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IMAX DMR
|
|
$
|
6,886
|
|
|
$
|
26,665
|
|
|
$
|
18,061
|
|
|
$
|
93,908
|
|
Joint revenue sharing
arrangements, contingent rent
|
|
|
4,473
|
|
|
|
16,605
|
|
|
|
10,307
|
|
|
|
60,189
|
|
|
|
|
11,359
|
|
|
|
43,270
|
|
|
|
28,368
|
|
|
|
154,097
|
|
IMAX Technology Sales
and Maintenance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IMAX
Systems
|
|
|
17,437
|
|
|
|
20,977
|
|
|
|
27,674
|
|
|
|
50,504
|
|
Joint revenue sharing
arrangements, fixed fees
|
|
|
57
|
|
|
|
1,438
|
|
|
|
1,196
|
|
|
|
6,525
|
|
IMAX
Maintenance
|
|
|
5,855
|
|
|
|
13,657
|
|
|
|
13,225
|
|
|
|
39,815
|
|
Other Theater
Business
|
|
|
307
|
|
|
|
1,560
|
|
|
|
1,261
|
|
|
|
5,766
|
|
|
|
|
23,656
|
|
|
|
37,632
|
|
|
|
43,356
|
|
|
|
102,610
|
|
New Business
Initiatives
|
|
|
378
|
|
|
|
596
|
|
|
|
1,488
|
|
|
|
1,908
|
|
Film Distribution and
Post-production
|
|
|
1,865
|
|
|
|
3,528
|
|
|
|
7,541
|
|
|
|
9,791
|
|
|
|
|
37,258
|
|
|
|
85,026
|
|
|
|
80,753
|
|
|
|
268,406
|
|
Other
|
|
|
(2)
|
|
|
|
1,364
|
|
|
|
260
|
|
|
|
2,979
|
|
Total
revenues
|
|
$
|
37,256
|
|
|
$
|
86,390
|
|
|
$
|
81,013
|
|
|
$
|
271,385
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Margin
(Margin Loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IMAX Technology
Network
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IMAX
DMR(1)
|
|
$
|
3,079
|
|
|
$
|
17,866
|
|
|
$
|
7,492
|
|
|
$
|
61,602
|
|
Joint revenue sharing
arrangements, contingent rent(1)
|
|
|
(2,491)
|
|
|
|
9,524
|
|
|
|
(10,610)
|
|
|
|
40,777
|
|
|
|
|
588
|
|
|
|
27,390
|
|
|
|
(3,118)
|
|
|
|
102,379
|
|
IMAX Technology Sales
and Maintenance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IMAX Systems
(1)
|
|
|
8,671
|
|
|
|
11,652
|
|
|
|
14,497
|
|
|
|
26,723
|
|
Joint revenue sharing
arrangements, fixed fees(1)
|
|
|
(117)
|
|
|
|
136
|
|
|
|
110
|
|
|
|
1,301
|
|
IMAX
Maintenance
|
|
|
794
|
|
|
|
6,125
|
|
|
|
(355)
|
|
|
|
17,046
|
|
Other Theater
Business
|
|
|
31
|
|
|
|
505
|
|
|
|
77
|
|
|
|
1,821
|
|
|
|
|
9,379
|
|
|
|
18,418
|
|
|
|
14,329
|
|
|
|
46,891
|
|
New Business
Initiatives
|
|
|
372
|
|
|
|
541
|
|
|
|
1,245
|
|
|
|
1,441
|
|
Film Distribution and
Post-production (1)(2)
|
|
|
(6,061)
|
|
|
|
50
|
|
|
|
(9,392)
|
|
|
|
483
|
|
|
|
|
4,278
|
|
|
|
46,399
|
|
|
|
3,064
|
|
|
|
151,194
|
|
Other
|
|
|
(449)
|
|
|
|
721
|
|
|
|
(1,837)
|
|
|
|
619
|
|
Total Segment
Margin
|
|
$
|
3,829
|
|
|
$
|
47,120
|
|
|
$
|
1,227
|
|
|
$
|
151,813
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) IMAX
DMR gross margin includes marketing expense of $0.4
million and $2.8 million for the three and nine months
ended September 30, 2020, respectively (2019 — $4.3
million and $17.7 million, respectively). JRSA gross margin
includes advertising, marketing and commission expense of $0.7
million and $1.3 million for the three and nine months
ended September 30, 2020, respectively (2019 —$0.8
million and $1.1 million, respectively). IMAX Systems gross
margin includes marketing and commission costs of $0.6
million and $1.0 million for the three and nine months
ended September 30, 2020, respectively, (2019 — $0.6
million and $1.5 million, respectively). Film Distribution
segment gross margin includes marketing expense of $0.2
million and $0.4 million for the three and nine months
ended September 30, 2020, respectively (2019 — $0.1
million and $0.7 million, respectively).
|
(2) Film
Distribution margins were significantly influenced by impairment
loss recorded of $5.4 million and $9.9 million for the three and
nine months ended September 30, 2020 to write-down the carrying
value of certain documentary and alternative content film assets
(2019 – $0.2 million and $0.2 million).
|
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) gain
(loss) in the fair value of 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.
A reconciliation of net (loss) income attributable to common
shareholders and the comparable per share amounts, the most
directly comparable GAAP measure to adjusted net (loss) income
attributable to common shareholders, adjusted net (loss) income
attributable to common shareholders per diluted share, EBITDA,
Adjusted EBITDA per Credit Facility and Adjusted EBITDA margin is
presented in the table below. The Company believes that net (loss)
income attributable to common shareholders is the most directly
comparable GAAP measure because it reflects the earnings relevant
to the Company's shareholders, rather than including the
non-controlling interest. As such, beginning in the first quarter
of 2020, the Company has updated the reconciliations for such
non-GAAP financial measures included herein.
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 investments; (iii) write-downs,
net of recoveries, including asset impairments and credit loss
expense; (iv) gain (loss) from equity accounted investments; (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 September 30, 2020
|
|
|
For the Three
Months Ended September 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
|
|
$
|
|
(48,484)
|
|
|
$
|
|
(1,275)
|
|
|
$
|
|
(47,209)
|
|
|
$
|
|
10,896
|
|
|
$
|
|
1,863
|
|
|
$
|
|
9,033
|
|
Add
(subtract):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit)
|
|
|
|
19,349
|
|
|
|
|
(503)
|
|
|
|
|
19,852
|
|
|
|
|
3,030
|
|
|
|
|
654
|
|
|
|
|
2,376
|
|
Interest expense, net
of interest income
|
|
|
|
1,509
|
|
|
|
|
(81)
|
|
|
|
|
1,590
|
|
|
|
|
(133)
|
|
|
|
|
(117)
|
|
|
|
|
(16)
|
|
Depreciation and
amortization, including film asset amortization
|
|
|
|
14,112
|
|
|
|
|
1,182
|
|
|
|
|
12,930
|
|
|
|
|
15,696
|
|
|
|
|
1,342
|
|
|
|
|
14,354
|
|
EBITDA
|
|
$
|
|
(13,514)
|
|
|
$
|
|
(677)
|
|
|
$
|
|
(12,837)
|
|
|
$
|
|
29,489
|
|
|
$
|
|
3,742
|
|
|
$
|
|
25,747
|
|
Share-based and other
non-cash compensation
|
|
|
|
5,495
|
|
|
|
|
292
|
|
|
|
|
5,203
|
|
|
|
|
5,687
|
|
|
|
|
137
|
|
|
|
|
5,550
|
|
(Gain) loss in fair
value of investments
|
|
|
|
(1,575)
|
|
|
|
|
(484)
|
|
|
|
|
(1,091)
|
|
|
|
|
490
|
|
|
|
|
156
|
|
|
|
|
334
|
|
Write-downs, including
asset
impairments and credit
loss expense
|
|
|
|
10,458
|
|
|
|
|
3,324
|
|
|
|
|
7,134
|
|
|
|
|
1,118
|
|
|
|
|
154
|
|
|
|
|
964
|
|
Loss (gain) from
equity accounted investments
|
|
|
|
1,329
|
|
|
|
|
—
|
|
|
|
|
1,329
|
|
|
|
|
(166)
|
|
|
|
|
—
|
|
|
|
|
(166)
|
|
Adjusted EBITDA per
Credit Facility
|
|
$
|
|
2,193
|
|
|
$
|
|
2,455
|
|
|
$
|
|
(262)
|
|
|
$
|
|
36,618
|
|
|
$
|
|
4,188
|
|
|
$
|
|
32,430
|
|
Revenues attributable
to common
shareholders(2)
|
|
|
|
37,256
|
|
|
|
|
5,825
|
|
|
|
|
31,431
|
|
|
|
|
86,390
|
|
|
|
|
8,036
|
|
|
|
|
78,354
|
|
Adjusted EBITDA
margin attributable to common
shareholders
|
|
|
|
5.9
|
%
|
|
|
|
42.1
|
%
|
|
|
|
(0.8)
|
%
|
|
|
|
42.4
|
%
|
|
|
|
52.1
|
%
|
|
|
|
41.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Twelve
Months Ended September 30, 2020 (1)
|
|
|
For the Twelve
Months Ended September 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
|
|
$
|
|
(116,590)
|
|
|
$
|
|
(12,231)
|
|
|
$
|
|
(104,359)
|
|
|
$
|
|
40,990
|
|
|
$
|
|
10,601
|
|
|
$
|
|
30,389
|
|
Add
(subtract):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
|
|
29,388
|
|
|
|
|
5,549
|
|
|
|
|
23,839
|
|
|
|
|
11,964
|
|
|
|
|
3,581
|
|
|
|
|
8,383
|
|
Interest expense, net
of interest income
|
|
|
|
2,564
|
|
|
|
|
(388)
|
|
|
|
|
2,952
|
|
|
|
|
(68)
|
|
|
|
|
(224)
|
|
|
|
|
156
|
|
Depreciation and
amortization, including film asset amortization
|
|
|
|
59,281
|
|
|
|
|
4,737
|
|
|
|
|
54,544
|
|
|
|
|
60,953
|
|
|
|
|
5,276
|
|
|
|
|
55,677
|
|
EBITDA
|
|
$
|
|
(25,357)
|
|
|
$
|
|
(2,333)
|
|
|
$
|
|
(23,024)
|
|
|
$
|
|
113,839
|
|
|
$
|
|
19,234
|
|
|
$
|
|
94,605
|
|
Share-based and other
non-cash compensation
|
|
|
|
22,518
|
|
|
|
|
885
|
|
|
|
|
21,633
|
|
|
|
|
22,880
|
|
|
|
|
573
|
|
|
|
|
22,307
|
|
(Gain) loss in fair
value of investments
|
|
|
|
(1,087)
|
|
|
|
|
(364)
|
|
|
|
|
(723)
|
|
|
|
|
2,543
|
|
|
|
|
807
|
|
|
|
|
1,736
|
|
Write-downs, including
asset impairments and credit loss expense
|
|
|
|
32,743
|
|
|
|
|
8,590
|
|
|
|
|
24,153
|
|
|
|
|
5,781
|
|
|
|
|
2,183
|
|
|
|
|
3,598
|
|
Loss from equity
accounted investments
|
|
|
|
1,799
|
|
|
|
|
—
|
|
|
|
|
1,799
|
|
|
|
|
41
|
|
|
|
|
—
|
|
|
|
|
41
|
|
Exit costs,
restructuring charges and associated impairments
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
9,234
|
|
|
|
|
—
|
|
|
|
|
4,237
|
|
Legal arbitration
award
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
4,237
|
|
|
|
|
—
|
|
|
|
|
9,234
|
|
Executive transition
costs
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
2,994
|
|
|
|
|
—
|
|
|
|
|
2,994
|
|
Adjusted EBITDA per
Credit Facility
|
|
$
|
|
30,616
|
|
|
$
|
|
6,778
|
|
|
$
|
|
23,838
|
|
|
$
|
|
161,549
|
|
|
$
|
|
22,797
|
|
|
$
|
|
138,752
|
|
Revenues attributable
to common
shareholders(2)
|
|
|
|
205,292
|
|
|
|
|
19,486
|
|
|
|
|
185,806
|
|
|
|
|
380,349
|
|
|
|
|
38,117
|
|
|
|
|
342,232
|
|
Adjusted EBITDA
margin attributable to common
shareholders
|
|
|
|
14.9
|
%
|
|
|
|
34.8
|
%
|
|
|
|
12.8
|
%
|
|
|
|
42.5
|
%
|
|
|
|
59.8
|
%
|
|
|
|
40.5
|
%
|
|
|
|
(1) Senior Secured
Net Leverage Ratio calculated using twelve months ended Adjusted
EBITDA per Credit Facility. During the second quarter of 2020, 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
September
30, 2020
|
|
|
Three months ended
September
30, 2019
|
|
|
12 months ended
September 30,
2020
|
|
|
12 months ended
September 30,
2019
|
|
Total
revenues
|
|
|
|
|
|
|
$
|
|
37,256
|
|
|
|
|
|
|
|
$
|
|
86,390
|
|
|
|
|
|
|
|
$
|
|
205,292
|
|
|
|
|
|
|
$
|
|
380,349
|
|
Greater China
revenues
|
|
$
|
|
19,346
|
|
|
|
|
|
|
|
$
|
|
26,557
|
|
|
|
|
|
|
|
$
|
|
64,489
|
|
|
|
|
|
|
|
$
|
|
121,366
|
|
|
|
|
|
Non-controlling
interest ownership percentage(3)
|
|
|
|
30.11
|
%
|
|
|
|
|
|
|
|
|
30.26
|
%
|
|
|
|
|
|
|
|
|
30.22
|
%
|
|
|
|
|
|
|
|
|
31.41
|
%
|
|
|
|
|
Deduction for
non-controlling interest share of
revenues
|
|
|
|
|
|
|
|
|
(5,825)
|
|
|
|
|
|
|
|
|
|
(8,036)
|
|
|
|
|
|
|
|
|
|
(19,486)
|
|
|
|
|
|
|
|
|
(38,117)
|
|
Revenues attributable
to common shareholders
|
|
|
|
|
|
|
$
|
|
31,431
|
|
|
|
|
|
|
|
$
|
|
78,354
|
|
|
|
|
|
|
|
$
|
|
185,806
|
|
|
|
|
|
|
$
|
|
342,232
|
|
|
(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
|
|
|
|
September 30,
2020
|
|
|
September 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
|
|
$
|
(47,209)
|
|
|
$
|
(0.80)
|
|
|
$
|
9,033
|
|
|
$
|
0.15
|
|
Adjustments(1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation
|
|
|
5,019
|
|
|
|
0.09
|
|
|
$
|
5,390
|
|
|
|
0.09
|
|
(Gain) loss in fair
value of investments
|
|
|
(1,091)
|
|
|
|
(0.02)
|
|
|
|
341
|
|
|
|
—
|
|
COVID-19 government
relief benefits
|
|
|
(2,084)
|
|
|
|
(0.03)
|
|
|
|
—
|
|
|
|
—
|
|
Tax Impact on items
listed above(2)
|
|
|
611
|
|
|
|
0.01
|
|
|
|
(1,953)
|
|
|
|
(0.03)
|
|
Income tax effects
related to the removal of the indefinitely reinvested assertion on
the historical earnings of certain subsidiaries
|
|
|
129
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Adjusted net (loss)
income(1)
|
|
$
|
(44,625)
|
|
|
$
|
(0.75)
|
|
|
$
|
12,811
|
|
|
$
|
0.21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
basic shares outstanding
|
|
|
|
|
|
|
58,859
|
|
|
|
|
|
|
|
61,304
|
|
Weighted average
diluted shares outstanding
|
|
|
|
|
|
|
58,859
|
|
|
|
|
|
|
|
61,479
|
|
|
|
|
|
(1)
|
Reflects amounts
attributable to non-controlling interests.
|
(2)
|
The tax impact on the
listed items includes a year-to-date additive adjustment in the
current year related to the valuation allowance recorded in respect
of certain deferred tax assets booked in the three months ended
September 30, 2020.
|
|
|
Nine Months
Ended
|
|
|
Nine Months
Ended
|
|
|
|
September 30,
2020
|
|
|
September 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
|
|
$
|
(122,530)
|
|
|
$
|
(2.06)
|
|
|
$
|
28,695
|
|
|
$
|
0.47
|
|
Adjustments(1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation
|
|
|
15,262
|
|
|
|
0.26
|
|
|
$
|
16,466
|
|
|
|
0.26
|
|
Exit costs,
restructuring charges and associated impairments
|
|
|
—
|
|
|
|
—
|
|
|
|
850
|
|
|
|
0.01
|
|
Loss in the fair value
of investments
|
|
|
661
|
|
|
|
0.01
|
|
|
|
1,742
|
|
|
|
0.03
|
|
COVID-19 government
relief benefits
|
|
|
(5,235)
|
|
|
|
(0.08)
|
|
|
|
—
|
|
|
|
—
|
|
Tax impact on items
listed above(2)
|
|
|
(584)
|
|
|
|
(0.01)
|
|
|
|
(4,437)
|
|
|
|
(0.07)
|
|
Income tax effects
related to the removal of the indefinitely reinvested assertion on
the historical earnings of certain subsidiaries
|
|
|
13,014
|
|
|
|
0.21
|
|
|
|
—
|
|
|
|
—
|
|
Adjusted net (loss)
income(1)
|
|
$
|
(99,412)
|
|
|
$
|
(1.67)
|
|
|
$
|
43,316
|
|
|
$
|
0.70
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average basic shares outstanding
|
|
|
|
|
|
|
59,360
|
|
|
|
|
|
|
|
61,337
|
|
Weighted average
diluted shares outstanding
|
|
|
|
|
|
|
59,360
|
|
|
|
|
|
|
|
61,509
|
|
|
|
|
|
(1)
|
Reflects amounts
attributable to non-controlling interests.
|
(2)
|
The tax impact on the
listed items includes a year-to-date additive adjustment in the
current year related to the valuation allowance recorded in respect
of certain deferred tax assets booked in the three months ended
September 30, 2020.
|
Free Cash
Flow:
|
|
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
|
September 30,
2020
|
|
|
September 30,
2020
|
|
Net cash used in
operating activities
|
|
$
|
|
(9,938)
|
|
|
$
|
|
(30,818)
|
|
Net cash used in
investing activities
|
|
|
|
(1,885)
|
|
|
|
|
(7,608)
|
|
Free cash
flow
|
|
$
|
|
(11,823)
|
|
|
$
|
|
(38,426)
|
|
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SOURCE IMAX Corporation