SHANGHAI, March 4, 2021 /PRNewswire/ -- IMAX China
Holding, Inc. ("IMAX China" or the "Company", HKG: 1970) today
reported full-year 2020 results highlighted by second-half box
office which returned to 80% of the prior year period on an average
daily basis, and continued network growth as theatres reopened in
late July. Greater China revenue
for the full-year 2020 was approximately US$52.3 million, down 58% year-over-year, and
adjusted net loss of approximately US$4.6
million, due to COVID-related theatre closures from late
January to late July. Total revenue of approximately US$45.6 million and a profitability turnaround to
approximately US$10.9 million
adjusted earnings for the second-half of 2020 reflects a strong
rebound in box office despite the temporary delayed release of
major Hollywood tentpole films, as
well as increased installation activities. For adjustments to
profit for the period and a full detail of financial results,
please refer to the corporate filing posted with the Hong Kong
Stock Exchange or to the earnings results posted on the Investor
Relations section of the IMAX China web site
(http://www.imax.cn/investor).
"We are pleased to see an impressive resurgence in box office
upon theatre reopenings as Chinese audiences come back to IMAX –
more than ever – underscoring the growing demand for blockbusters
and the strength of our brand as the pinnacle of a premium out of
home entertainment experience," said Richard L. Gelfond, Chairman of IMAX China.
"Despite the unprecedented challenges in 2020, we hit new records
in multiple key theatrical windows, including National Holiday, New
Year's Day and Chinese New Year, highlighted by our meaningful
market share gains in local language titles as productions
increasingly lend themselves to IMAX. Our continued signings
momentum with leading exhibitors, including Wanda and Jinyi, and
our backlog of 251 theaters illustrates our partners' long-term
commitment to the IMAX Experience."
"IMAX China's premium positioning built upon our brand,
technology and network scalability has only been further
strengthened post-pandemic as theatrical entertainment increasingly
calls upon differentiated offerings in both content and
exhibition," said Mr. Gelfond. "Given the recent recovery in our
business, strong cash position and the recurring cash flow
generating ability of our network, we are happy to announce we
maintained a stable annual dividend per share in 2020 as in prior
years and will increase our future dividend payout ratio from 33%
to 50% of net income, despite the earnings impact from COVID-19 in
2020."
"Despite a six-month theatre closure and the temporary delay of
major Hollywood tentpoles, IMAX
China delivered box office share gains with local language
blockbusters, continued network growth and expansion in new theatre
signings– a strong testament to IMAX China's commercial value to
consumers, filmmakers and exhibition partners," said Edwin Tan, Chief Executive Officer of IMAX
China. "We feel very well-positioned to continue delivering
above-industry growth on our strengthening footprint in local
language films and a film slate increasingly empowered with IMAX
DNA"
IMAX China Dividend
IMAX China today announced that its Board of Directors
recommended the payment of a final dividend of US$0.02 per share or approximately US$7 million in total, based on the total number
of shares in issue as of 31/12/2020. The dividend will need to be
voted on by the shareholders at the Company's annual general
meeting. IMAX China also announced a dividend payout ratio of 50%
of net income from 2021 onwards, up from the 33% it had paid out
during the pre-COVID years of 2017 to 2019.
Recent Developments
In February 2021, to maximize
liquidity, the Company sold all of its 7,949,000 shares of Maoyan
for total gross proceeds of US$17.8
million.
Network Update
Despite COVID-19 related theatre closures through late July, the
Company delivered further network expansion with a total of 745
systems in the IMAX® theatre network in Greater China as of December 31, 2020. The Company signed agreements
for 38 theater systems in full year 2020, bringing total backlog to
251 theater systems as of December 31,
2020. Signings were headlined by a 20-theatre agreement with
Wanda, the largest exhibitor in China, and a 12-theatre deal with Jinyi, the
second-largest exhibition partner of IMAX China. Both agreements
involve upgrades of top performing theaters to IMAX with Laser®
projection systems and the addition of new IMAX locations across
the country.
The Company installed 42 new and upgraded theatre systems during
the full-year 2020, compared to 95 installations in 2019. The
year-over-year decline is due to suspended development activities
through a portion of the third quarter as a result of COVID-19.
Among the 745 systems in Greater
China as of December 31, 2020,
376 operate under full revenue sharing arrangements, 106 under
hybrid revenue sharing arrangements and 263 operate under sales
arrangements.
Box Office Update
The Company's refined local language programming strategy,
expanding network and growing consumer recognition as the 'go-to'
destination for blockbusters drove a strong rebound of IMAX China's
gross box office to approximately US$92
million since theatres reopened in mainland China late July through end of 2020. This
represents an approximately 3.6% box office market share, up from
2.8% in the prior year period. In 2020, the top five grossing
titles accounted for 47% of industry box office in mainland
China, all of which were available
in the IMAX theatre network.
Greater China Key Metrics
|
|
|
|
Twelve months
ended December 31,
|
|
|
|
|
2020
|
|
2019
|
Greater China
Signings
|
|
|
|
|
|
|
|
Sales
|
|
|
|
20
|
|
|
20
|
|
Revenue
Share
|
|
|
1
|
|
|
43
|
|
IMAX with Laser
Upgrade
|
|
|
17
|
|
|
1
|
Total
|
|
|
|
38
|
|
|
64
|
|
|
|
|
|
|
|
|
|
Greater China
Theatre Installations
|
|
|
|
|
|
Sales
|
|
|
|
15
|
|
|
27
|
|
Revenue
Share
|
|
|
21
|
|
|
56
|
|
IMAX with Laser
Upgrade
|
|
|
3
|
|
|
12
|
|
Relocation
|
|
|
3
|
|
|
0
|
Total
|
|
|
|
42
|
|
|
95
|
|
|
|
|
|
|
|
|
|
Greater China
Network
|
|
|
|
|
|
|
|
Commercial
Multiplex
|
|
|
729
|
|
|
702
|
|
Institutional
|
|
|
|
16
|
|
|
15
|
Total
|
|
|
|
745
|
|
|
717
|
|
|
|
|
|
|
|
|
|
Greater China
Backlog
|
|
|
251
|
|
|
253
|
|
|
|
|
|
|
|
|
|
IMAX Greater China
Box Office
|
|
US$99
million
|
|
|
US$366
million
|
|
|
|
|
|
|
|
|
|
Film
Count
|
|
|
|
|
|
|
|
|
Mainland
China
|
|
|
|
25
|
|
|
44
|
|
HK/ Taiwan
Only
|
|
|
8
|
|
|
7
|
Total
|
|
|
|
33
|
|
|
51
|
Conference Call
The Company will host a conference call on March 5, 2021 at 8:00
AM Hong Kong Time to discuss its full-year 2020
financial results. To access the call via telephone, interested
parties in the US and Canada
should dial (866) 548-4713 approximately 5 to 10 minutes before the
call begins. Hong Kong callers
should dial 800-961-105 or +852 3008 1527 and other international
callers should dial (647) 484-0477. The conference ID for the call
is 6603768. A replay of the call will be available via webcast at
www.imax.cn/investor/l-en or via telephone by dialing (888)
203-1112 (US and Canada), or (647)
436-0148 (international). The Conference ID for the telephone
replay is 6603768.
About IMAX China
IMAX China is a subsidiary of IMAX Corporation, and was
incorporated as a limited liability company under the laws of
Cayman Islands. IMAX China was
established by IMAX Corporation specifically to oversee the
expansion of IMAX's business throughout Greater China. IMAX China trades on the Hong
Kong Stock Exchange under the stock code "1970".
About IMAX Corporation
IMAX Corporation, 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 theatres 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 Corporation is headquartered in New York, Toronto and Los
Angeles, with additional offices in London, Dublin, Tokyo, and Shanghai. As of December 31, 2020, there were 1,650 IMAX theater
systems (1,562 commercial multiplexes, 12 commercial destinations,
76 institutional) operating in 84 countries and territories. On
Oct. 8, 2015, shares of IMAX China, a
subsidiary of IMAX Corp., began trading on the Hong Kong Stock
Exchange under the stock code "1970".
IMAX®, IMAX® 3D, IMAX DMR®, Experience It In IMAX®, An IMAX 3D
Experience®, The IMAX Experience®, IMAX Is Believing® and IMAX
nXos® are trademarks of IMAX Corporation. More information about
the Company can be found at www.imax.com. You may also connect with
IMAX on Facebook (www.facebook.com/imax), Twitter
(www.twitter.com/imax) and YouTube
(www.youtube.com/imaxmovies).
This press release contains forward looking statements that
are based on IMAX Corporation and IMAX China 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, IMAX China or any other
consolidated subsidiaries of IMAX Corporation (each, a "Group
Member", and collectively, "IMAX Group") and expectations regarding
the future operating, financial or technological results of any
Group Member. These forward-looking statements are based on certain
assumptions and analyses made by the IMAX Group 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 any Group Member 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 IMAX Group'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 any Group Member operates; competitive actions by other
companies; the failure to respond to change and advancements in
digital technology; one Group Member's largest customer accounting
for a significant portion of its revenue and backlog; 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 a Group Member;
risks related to cyber-security; risks related to any Group
Member's inability to protect its 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 Group Member's restructuring
initiative; and other factors, many of which are beyond the control
of any Group Member. These factors, other risks and
uncertainties and financial details are discussed in IMAX
Corporation's most recent Annual Report on Form 10-K and Quarterly
Reports on Form 10-Q.
For additional information please contact:
Investors:
IMAX Corporation, New
York
Brett
Harriss
+1-212-821-0187
bharriss@imax.com
IMAX China,
Shanghai
Karen Chan
+86-21-2315-7000
kchan@imax.com
|
Media:
IMAX Corporation, New
York
Mark Jafar
+1-212-821-0102
mjafar@imax.com
IMAX China,
Beijing
Frances Fu
+86-21-2315-7162
ffu@imax.com
|
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SOURCE IMAX Corporation