NEW YORK, April 29, 2021 /PRNewswire/ -- IMAX
Corporation (NYSE: IMAX) today reported financial results for
the first quarter 2021 including year-over-year revenue and box
office growth, margin improvement and positive EBITDA —
demonstrating strong demand for The IMAX Experience®
as theaters reopen around the world.
"The last year has brought the strong, unique market position of
IMAX into sharp focus; we are a global platform for blockbuster
entertainment with a valuable brand, flexible, asset-lite business
model and strong balance sheet," said Richard L. Gelfond, CEO of IMAX Corporation.
"The distinct attributes of our business and brand enable IMAX to
help lead the global film industry out of the pandemic — drawing
audiences back to the theaters and driving revenue across the
ecosystem, as IMAX continues to grow its global footprint, box
office, and market share."
"Through our unique global footprint, we continue to see
firsthand that where audiences feel safe and the virus is under
control they will return quickly to the theaters. Audiences across
Asia continue to rediscover the
theatrical experience in impressive numbers, driving
record-breaking box office and accelerating the continued shift to
blockbusters at the multiplex. As Hollywood tentpoles return to theaters, the
recovery is spreading to North
America and key additional markets including Russia, and Saudi
Arabia with the summer season ahead."
"As the pandemic recedes, we see clear evidence of global
consumers, who've been stuck at home with limited entertainment
options, emerging to seek out experiences that transcend the
ordinary. The IMAX Experience® is at once accessible
and affordable yet immersive and transporting. With cinema among
the most significant out-of-home entertainment experiences to come
back online, we believe IMAX is well-positioned to capitalize on
this movement."
"IMAX remains very confident in its leadership position in
out-of-home entertainment and continues to explore ways to
capitalize on the strength of its brand and technology for the
in-home and streaming market as well. Our IMAX Enhanced initiative
now encompasses more than 25 device manufacturer and streaming
partners across Asia, Europe, and North
America, and we recently announced a joint-venture with a
cutting-edge artificial intelligence firm to explore solutions for
high-speed image enhancement across consumer devices and streaming
platforms."
IMAX delivered global box office of $110
million for the quarter, marking the Company's first
year-over-year quarterly box office growth since the pandemic
began. Results were driven by the strong rebound of moviegoing in
Asia and encouraging performances
at the multiplex as other global markets reopen. For the quarter,
IMAX achieved record-breaking Chinese New Year opening weekend
results; its number-one and number-two highest grossing Japanese
local language releases of all time; and its strongest North
American opening of the pandemic period with "Godzilla vs. Kong,"
which also performed well in key markets including Mexico, Russia, Spain, and Saudi
Arabia.
IMAX reported first quarter 2021 revenues of $38.8 million, gross margin of $17.3 million, and a net loss attributable to
common shareholders of ($14.8)
million, or ($0.25) per
diluted share. IMAX achieved positive EBITDA per Credit
Facility(1) and its first quarter of year-over-year
EBITDA growth since the onset of the pandemic. In the first quarter
2021, the Company continued to strengthen its balance sheet,
amending its credit facility and raising $230 million of convertible notes. As a result of
the transactions, IMAX added more than $200
million in total available liquidity and reduced its pro
forma annual cash interest costs by $4.3
million.
IMAX first quarter 2021 net loss attributable to common
shareholders reflects the impact of COVID-19 on the Company's
network, including theater closures and capacity restrictions, in
addition to a non-cash valuation allowance to reduce the value of
deferred tax assets of $7.0
million or $0.12 per share.
However, the Company also benefited from a $5.2 million gain on the sale of its investment
in Maoyan Entertainment ($3.7 million
attributable to common shareholders) and $1.5 million of COVID-19 government relief
benefits.
Additionally, IMAX today announced that Patrick McClymont, Chief Financial Officer of
IMAX, will be leaving the Company to become Chief Financial Officer
of a private company. McClymont, who has served in the role since
2016, will step down next month. Joseph
Sparacio, who preceded McClymont as Chief Financial Officer
of IMAX and more recently served as Chief Financial Officer of
Entertainment One, will temporarily rejoin the Company to serve as
Interim Chief Financial Officer of IMAX while a search is conducted
to fill the role permanently.
"On behalf of IMAX, I want to thank Patrick for his significant
and valued contributions to the Company throughout his tenure,"
said Gelfond. "He is a strategic, thoughtful executive and we wish
him and his family all the best of luck in their new adventure.
IMAX is in a strong financial position with real momentum as we
grow our network and brand throughout the world and I am confident
that momentum will continue without interruption as we search for a
successor."
First Quarter Financial Highlights
|
|
Three Months
Ended
|
|
|
|
March 31,
|
|
In millions of
U.S. Dollars, except per share data
|
|
2021
|
|
|
2020
|
|
|
YoY
%
Change
|
|
Total
Revenue
|
|
$
|
38.8
|
|
|
$
|
34.9
|
|
|
|
11.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Margin
|
|
$
|
17.3
|
|
|
$
|
5.1
|
|
|
|
239.8
|
%
|
Gross Margin
(%)
|
|
|
44.6
|
%
|
|
|
14.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss attributable
to common shareholders
|
|
$
|
(14.8)
|
|
|
$
|
(49.4)
|
|
|
|
69.9
|
%
|
Diluted Net Loss per
share attributable to common shareholders
|
|
$
|
(0.25)
|
|
|
$
|
(0.82)
|
|
|
|
69.5
|
%
|
Adjusted Net Loss
attributable to common shareholders(1)
|
|
$
|
(14.8)
|
|
|
$
|
(28.7)
|
|
|
|
48.4
|
%
|
Adjusted Net Loss per
share attributable to common shareholders(1)
|
|
$
|
(0.25)
|
|
|
$
|
(0.48)
|
|
|
|
47.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA per
Credit Facility attributable to common
shareholders(1)
|
|
$
|
2.8
|
|
|
$
|
(4.4)
|
|
|
|
163.9
|
%
|
Adjusted EBITDA Margin
attributable to common shareholders
(%) (1)
|
|
|
9.0
|
%
|
|
|
(13.1)
|
%
|
|
|
168.5
|
%
|
____________
|
(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.
|
First Quarter Segment Results(1)
In millions of
U.S. Dollars
|
|
IMAX
Technology
Network
|
|
|
IMAX Technology
Sales and
Maintenance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
Gross
Margin
|
Gross
Margin %
|
|
|
Revenue
|
|
|
Gross
Margin
|
|
|
Gross
Margin %
|
|
1Q21
|
|
$
|
20.3
|
|
|
$
|
10.1
|
|
|
|
49.9
|
%
|
|
$
|
17.0
|
|
|
|
$
|
7.1
|
|
|
|
41.5
|
%
|
1Q20
|
|
16.6
|
|
|
|
2.8
|
|
|
|
17.0
|
%
|
|
15.1
|
|
|
|
|
4.7
|
|
|
|
31.3
|
%
|
%
change
|
|
|
22.3
|
%
|
|
|
258.7
|
%
|
|
|
|
|
|
|
12.5
|
%
|
|
|
|
49.3
|
%
|
|
|
|
|
_____________
|
(1) Please refer to the
Company's Form 10-Q for the period ended March 31, 2021 for
additional segment information
|
IMAX Technology Network
- IMAX Technology Network revenues increased 22.3% to
$20.3 million in the first quarter of
2021, compared to $16.6 million in
the prior-year period. The continued reopening of the Company's
network, particularly in Asia, and
strong performance of local-language content during the Chinese New
Year holiday period, drove the increase in gross box office and
revenue.
- Gross margin for the IMAX Technology Network of $10.1 million in the first quarter of 2021
increased by more than $7 million as
improved box office performance drove higher revenue.
IMAX Technology Sales and Maintenance
- IMAX Technology Sales and Maintenance revenues increased 12.5%
to $17.0 million in the first quarter
of 2021, compared with $15.1 million
in the prior year period. The increase in revenue was the result of
higher IMAX Maintenance sales associated with the continued
reopening of our global network
- Total gross margin for IMAX Technology Sales and Maintenance
increased 49.3% to $7.1 million
compared to $4.7 million in the prior
year period. The increase in gross margin was the result of higher
IMAX Maintenance driven revenue and modest cost reductions.
Cash Balances and Outstanding Debt
Total cash and cash equivalents as of March 31, 2021 were $267.8
million. Total debt, excluding deferred financing fees, was
$283 million as of March 31, 2021.
Share Count and Capital Return
The weighted average basic and diluted shares outstanding at the
end of the first quarter of 2021 declined 2.3% to 59.0 million,
compared to 60.4 million in the first quarter of 2020, due
primarily to share repurchase activity early in 2020. During the
first quarter of 2021, 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 an additional year through to
June 2022.
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 Company may post additional information on the Company's
corporate and Investor Relations website which may be 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, for additional information about the Company
Conference Call
The Company will host a conference call today at 8:30AM ET to discuss its first quarter 2021
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 2982656. 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 2982656.
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 March
31, 2021, there were 1,652 IMAX theater systems (1,567
commercial multiplexes, 12 commercial destinations, 73
institutional) operating in 84 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 "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. These
forward-looking 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), industry
prospects and consumer behavior, 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, the impact of COVID-19 on the
Company's business, financial conditions and results of operations
and on the businesses of our customers and exhibitor partners;
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 and broader entertainment
industry, including both the in-home and out-of-home entertainment
markets; risks related to currency fluctuations; the potential
impact of increased competition in the markets within which the
Company operates, including competitive actions by other companies;
the failure to respond to change and advancements in entertainment
technology; risks relating to consolidation among commercial
exhibitors and movie studios; risks related to new business
initiatives 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; risks related to the Company's indebtedness and
compliance with its debt agreements; 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; assumptions related to
the foregoing; other risks outlined in our periodic filings with
the SEC; 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).
|
IMAX Network and
Backlog
|
|
|
Three
Months
Ended March
31,
|
|
|
Theater System
Signings:
|
|
2021
|
|
|
|
2020
|
|
|
New IMAX Theater
Systems
|
|
|
|
|
|
|
|
|
|
|
Sales and sales-type
lease arrangements
|
|
|
6
|
|
|
|
|
2
|
|
|
Hybrid joint revenue
sharing arrangements
|
|
|
—
|
|
|
|
|
—
|
|
|
Traditional joint
revenue sharing arrangements
|
|
|
—
|
|
|
|
|
2
|
|
|
Total
new IMAX theaters Systems
|
|
|
6
|
|
|
|
|
4
|
|
|
Upgrades of IMAX
theater systems
|
|
|
—
|
|
|
|
|
11
|
|
|
Total
IMAX Theater System signings
|
|
|
6
|
|
|
|
|
15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months
Ended March
31,
|
|
|
Theater System
Installations:
|
|
2021
|
|
|
|
2020
|
|
|
New IMAX Theater
Systems
|
|
|
|
|
|
|
|
|
|
|
Sales and sales-type
lease arrangements
|
|
|
2
|
|
|
|
|
2
|
|
|
Hybrid joint revenue
sharing lease arrangements
|
|
|
2
|
|
|
|
|
1
|
|
|
Traditional joint
revenue sharing arrangements
|
|
|
5
|
|
|
|
|
2
|
|
|
Total
new IMAX Theater Systems
|
|
|
9
|
|
|
|
|
5
|
|
|
Upgrades of IMAX
theater systems
|
|
|
3
|
|
|
|
|
7
|
|
|
Total
IMAX Theater System installations
|
|
|
12
|
|
|
|
|
12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months
Ended March
31,
|
|
|
Theater Sales
Backlog:
|
|
2021
|
|
|
|
2020
|
|
|
Sales and sales-type
lease arrangements
|
|
|
189
|
|
|
|
|
180
|
|
|
Hybrid joint revenue
sharing arrangements
|
|
|
144
|
|
|
|
|
138
|
|
|
Traditional joint
revenue sharing arrangements
|
|
|
188
|
(1)
|
|
|
|
215
|
(1)
|
|
Total Theater
backlog
|
|
|
521
|
(2)
|
|
|
|
533
|
(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months
Ended March
31,
|
|
|
Theater
Network:
|
|
2021
|
|
|
|
2020
|
|
|
Commercial Multiplex
Theaters
|
|
|
|
|
|
|
|
|
|
|
Sales and sales-type
lease arrangements
|
|
|
671
|
|
|
|
|
659
|
|
|
Hybrid joint revenue
sharing lease arrangements
|
|
|
143
|
|
|
|
|
136
|
|
|
Traditional joint
revenue sharing lease arrangements
|
|
|
753
|
|
|
|
|
731
|
|
|
Total Commercial
Multiplex Theaters
|
|
|
1,567
|
|
|
|
|
1,526
|
|
|
Commercial Destination
Theaters
|
|
|
12
|
|
|
|
|
14
|
|
|
Institutional
Theaters
|
|
|
73
|
|
|
|
|
76
|
|
|
Total Theater
network(4)
|
|
|
1,652
|
|
|
|
|
1,616
|
|
|
_____________
|
(1)
|
Includes 44 IMAX
Theater Systems where the customer has the option to convert from a
joint revenue sharing arrangement to a sales arrangement (2020 —
46).
|
(2)
|
Includes 149 new IMAX
with Laser projection system configurations and 92 upgrades of
existing locations to IMAX with Laser projection system
configurations.
|
(3)
|
Includes 147 new IMAX
with Laser projection system configurations and 94 upgrades of
existing locations to IMAX with Laser projection system
configurations.
|
(4)
|
Period-to-period
changes are reported net of the effect 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
|
|
|
|
|
March
31,
|
|
|
|
|
2021
|
|
|
2020
|
|
Revenues
|
|
|
|
|
|
|
|
|
Technology
sales
|
|
$
|
6,175
|
|
|
$
|
5,662
|
|
Image enhancement and
maintenance services
|
|
|
21,615
|
|
|
|
20,721
|
|
Technology
rentals
|
|
|
8,359
|
|
|
|
5,971
|
|
Finance
income
|
|
|
2,605
|
|
|
|
2,548
|
|
|
|
|
|
38,754
|
|
|
|
34,902
|
|
Costs and expenses
applicable to revenues
|
|
|
|
|
|
|
|
|
Technology
sales
|
|
|
5,053
|
|
|
|
3,869
|
|
Image enhancement and
maintenance services
|
|
|
9,764
|
|
|
|
17,816
|
|
Technology
rentals
|
|
|
6,656
|
|
|
|
8,131
|
|
|
|
|
|
21,473
|
|
|
|
29,816
|
|
Gross
margin
|
|
|
17,281
|
|
|
|
5,086
|
|
Selling, general and
administrative expenses
|
|
|
25,209
|
|
|
|
28,636
|
|
Research and
development
|
|
|
1,471
|
|
|
|
2,200
|
|
Amortization of
intangibles
|
|
|
1,141
|
|
|
|
1,321
|
|
Credit loss
expense
|
|
|
305
|
|
|
|
10,217
|
|
Asset
impairments
|
|
|
—
|
|
|
|
1,151
|
|
Loss from
operations
|
|
|
(10,845)
|
|
|
|
(38,439)
|
|
Realized and
unrealized investment gains (losses)
|
|
|
5,248
|
|
|
|
(4,539)
|
|
Retirement benefits
non-service expense
|
|
|
(114)
|
|
|
|
(116)
|
|
Interest
income
|
|
|
583
|
|
|
|
365
|
|
Interest
expense
|
|
|
(2,304)
|
|
|
|
(648)
|
|
Loss before
taxes
|
|
|
(7,432)
|
|
|
|
(43,377)
|
|
Income tax
expense
|
|
|
(3,068)
|
|
|
|
(15,505)
|
|
Equity in losses of
investees, net of tax
|
|
—
|
|
|
|
(529)
|
|
Net
Loss
|
|
|
(10,500)
|
|
|
|
(59,411)
|
|
Less: Net (income)
loss attributable to non-controlling interests
|
|
|
(4,340)
|
|
|
|
10,057
|
|
Net loss
attributable to common shareholders
|
|
$
|
(14,840)
|
|
|
$
|
(49,354)
|
|
Net loss per share
attributable to common shareholders -
basic and
diluted:
|
|
|
|
|
|
Net loss per share —
basic and diluted
|
|
$
|
(0.25)
|
|
|
$
|
(0.82)
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding (000's):
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
59,012
|
|
|
|
60,418
|
|
|
Fully
Diluted
|
|
|
59,012
|
|
|
|
60,418
|
|
Additional
Disclosure:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization(1)
|
|
$
|
12,986
|
|
|
$
|
15,252
|
|
_____________
|
(1)
|
Includes $0.3 million
of amortization of deferred financing costs charged to interest
expense for the three months March 31, 2021 (2020 — $0.1
million).
|
IMAX
CORPORATION
CONDENSED
CONSOLIDATED BALANCE SHEETS
(In thousands of
dollars, except share amounts)
(Unaudited)
|
|
|
|
|
March 31,
|
|
|
December
31,
|
|
|
|
2021
|
|
|
2020
|
|
Assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
267,794
|
|
|
$
|
317,379
|
|
Accounts receivable,
net
|
|
|
69,582
|
|
|
|
56,300
|
|
Financing
receivables, net
|
|
|
130,836
|
|
|
|
131,810
|
|
Variable
consideration receivables, net
|
|
|
41,095
|
|
|
|
40,526
|
|
Inventories
|
|
|
39,119
|
|
|
|
39,580
|
|
Prepaid
expenses
|
|
|
12,762
|
|
|
|
10,420
|
|
Film assets,
net
|
|
|
5,793
|
|
|
|
5,777
|
|
Property, plant and
equipment, net
|
|
|
269,820
|
|
|
|
277,397
|
|
Investment in equity
securities
|
|
|
1,086
|
|
|
|
13,633
|
|
Other
assets
|
|
|
21,799
|
|
|
|
21,673
|
|
Deferred income tax
assets, net
|
|
|
18,303
|
|
|
|
17,983
|
|
Goodwill
|
|
|
39,027
|
|
|
|
39,027
|
|
Other intangible
assets, net
|
|
|
25,347
|
|
|
|
26,245
|
|
Total
assets
|
|
$
|
942,363
|
|
|
$
|
997,750
|
|
Liabilities
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
16,224
|
|
|
$
|
20,837
|
|
Accrued and other
liabilities
|
|
|
104,499
|
|
|
|
99,354
|
|
Revolving credit
facility borrowings, net
|
|
|
50,813
|
|
|
|
305,676
|
|
Convertible notes,
net
|
|
|
222,486
|
|
|
|
—
|
|
Deferred
revenue
|
|
|
93,208
|
|
|
|
87,982
|
|
Deferred income tax
liabilities
|
|
|
19,681
|
|
|
|
19,134
|
|
Total
liabilities
|
|
|
506,911
|
|
|
|
532,983
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
Non-controlling
interests
|
|
|
750
|
|
|
|
759
|
|
Shareholders'
equity
|
|
|
|
|
|
|
|
|
Capital stock common
shares — no par value. Authorized — unlimited number.
|
|
|
|
|
|
|
|
|
59,358,679 issued and
59,357,956 outstanding (December 31, 2020 — 58,921,731 issued and
58,921,008 outstanding)
|
|
|
414,993
|
|
|
|
407,031
|
|
Less: Treasury stock,
723 shares at cost (December 31, 2020 — 723)
|
|
|
(11)
|
|
|
|
(11)
|
|
Other
equity
|
|
|
155,653
|
|
|
|
180,330
|
|
Accumulated
deficit
|
|
|
(217,689)
|
|
|
|
(202,849)
|
|
Accumulated other
comprehensive (loss) income
|
|
|
(459)
|
|
|
|
988
|
|
Total
shareholders' equity attributable to common
shareholders
|
|
|
352,487
|
|
|
|
385,489
|
|
Non-controlling
interests
|
|
|
82,215
|
|
|
|
78,519
|
|
Total
shareholders' equity
|
|
|
434,702
|
|
|
|
464,008
|
|
Total liabilities
and shareholders' equity
|
|
$
|
942,363
|
|
|
$
|
997,750
|
|
IMAX
CORPORATION
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands of
dollars)
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
|
|
March 31,
|
|
|
|
|
2021
|
|
|
|
2020
|
|
Operating
Activities
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(10,500)
|
|
|
$
|
(59,411)
|
|
Adjustments to
reconcile net loss to cash (used in) provided by operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
12,986
|
|
|
|
15,252
|
|
Credit loss
expense
|
|
|
305
|
|
|
|
10,217
|
|
Write-downs
|
|
|
213
|
|
|
|
4,403
|
|
Deferred income tax
expense
|
|
|
158
|
|
|
|
5,627
|
|
Share-based and other
non-cash compensation
|
|
|
5,421
|
|
|
|
4,309
|
|
Unrealized foreign
currency exchange loss
|
|
|
113
|
|
|
|
223
|
|
Realized and
unrealized investment (gains) losses
|
|
|
(5,248)
|
|
|
|
4,539
|
|
Equity in losses of
investees
|
|
|
—
|
|
|
|
529
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
(13,744)
|
|
|
|
28,191
|
|
Inventories
|
|
|
437
|
|
|
|
(18,344)
|
|
Film assets
|
|
|
(2,213)
|
|
|
|
(3,064)
|
|
Deferred
revenue
|
|
|
5,276
|
|
|
|
8,807
|
|
Changes in other
operating assets and liabilities
|
|
|
(4,155)
|
|
|
|
4,688
|
|
Net cash (used in)
provided by operating activities
|
|
|
(10,951)
|
|
|
|
5,966
|
|
Investing
Activities
|
|
|
|
|
|
|
|
|
Purchase of property,
plant and equipment
|
|
|
(466)
|
|
|
|
(271)
|
|
Investment in
equipment for joint revenue sharing arrangements
|
|
|
(1,540)
|
|
|
|
(1,580)
|
|
Acquisition of other
intangible assets
|
|
|
(1,507)
|
|
|
|
(862)
|
|
Proceeds from sale of
equity securities
|
|
|
17,769
|
|
|
|
—
|
|
Net cash provided
by (used in) investing activities
|
|
|
14,256
|
|
|
|
(2,713)
|
|
Financing
Activities
|
|
|
|
|
|
|
|
|
Proceeds from
issuance of convertible notes, net
|
|
|
223,675
|
|
|
|
—
|
|
Purchase of capped
calls related to convertible notes
|
|
|
(19,067)
|
|
|
|
—
|
|
Revolving credit
facility borrowings
|
|
|
—
|
|
|
|
280,000
|
|
Repayments of
revolving credit facility borrowings
|
|
|
(255,000)
|
|
|
|
—
|
|
Credit facility
amendment fees paid
|
|
|
(32)
|
|
|
|
—
|
|
Settlement of
restricted share units and options
|
|
|
—
|
|
|
|
(1,667)
|
|
Treasury stock
repurchased for future settlement of restricted share
units
|
|
|
—
|
|
|
|
(1,419)
|
|
Repurchase of common
shares, IMAX China
|
|
|
—
|
|
|
|
(891)
|
|
Taxes withheld and
paid on employee stock awards vested
|
|
|
(3,045)
|
|
|
|
(236)
|
|
Common shares issued
- stock options exercised
|
|
|
824
|
|
|
|
—
|
|
Repurchase of common
shares
|
|
|
—
|
|
|
|
(36,624)
|
|
Net cash (used in)
provided by financing activities
|
|
|
(52,645)
|
|
|
|
239,163
|
|
Effects of exchange
rate changes on cash
|
|
|
(245)
|
|
|
|
377
|
|
(Decrease)
increase in cash and cash equivalents during period
|
|
|
(49,585)
|
|
|
|
242,793
|
|
Cash and cash
equivalents, beginning of period
|
|
|
317,379
|
|
|
|
109,484
|
|
Cash and cash
equivalents, end of period
|
|
$
|
267,794
|
|
|
$
|
352,277
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
March
31,
|
|
|
|
2021
|
|
|
2020
|
|
Revenue
|
|
|
|
|
|
|
|
|
IMAX Technology
Network
|
|
|
|
|
|
|
|
|
IMAX DMR
|
|
$
|
11,944
|
|
|
$
|
10,629
|
|
Joint revenue sharing
arrangements, contingent rent
|
|
|
8,359
|
|
|
|
5,971
|
|
|
|
|
20,303
|
|
|
|
16,600
|
|
IMAX Technology Sales
and Maintenance
|
|
|
|
|
|
|
|
|
IMAX
Systems
|
|
|
5,899
|
|
|
|
5,688
|
|
Joint revenue sharing
arrangements, fixed fees
|
|
|
1,738
|
|
|
|
770
|
|
IMAX
Maintenance
|
|
|
8,906
|
|
|
|
7,370
|
|
Other Theater
Business
|
|
|
437
|
|
|
|
1,263
|
|
|
|
|
16,980
|
|
|
|
15,091
|
|
New Business
Initiatives
|
|
|
668
|
|
|
|
478
|
|
Film Distribution and
Post-production
|
|
|
813
|
|
|
|
2,494
|
|
|
|
|
38,764
|
|
|
|
34,663
|
|
Other
|
|
|
(10)
|
|
|
|
239
|
|
Total
revenues
|
|
$
|
38,754
|
|
|
$
|
34,902
|
|
|
|
|
|
|
|
|
|
|
Gross Margin
(Margin Loss)
|
|
|
|
|
|
|
|
|
IMAX Technology
Network
|
|
|
|
|
|
|
|
|
IMAX
DMR(1)
|
|
$
|
8,251
|
|
|
$
|
4,443
|
|
Joint revenue sharing
arrangements, contingent rent(1)
|
|
|
1,883
|
|
|
|
(1,618)
|
|
|
|
|
10,134
|
|
|
|
2,825
|
|
IMAX Technology Sales
and Maintenance
|
|
|
|
|
|
|
|
|
IMAX Systems
(1)
|
|
|
3,012
|
|
|
|
3,176
|
|
Joint revenue sharing
arrangements, fixed fees(1)
|
|
|
156
|
|
|
|
179
|
|
IMAX
Maintenance
|
|
|
3,823
|
|
|
|
759
|
|
Other Theater
Business
|
|
|
63
|
|
|
|
610
|
|
|
|
|
7,054
|
|
|
|
4,724
|
|
New Business
Initiatives
|
|
|
458
|
|
|
|
361
|
|
Film Distribution and
Post-production (1)(2)
|
|
|
(25)
|
|
|
|
(1,935)
|
|
|
|
|
17,621
|
|
|
|
5,975
|
|
Other
|
|
|
(340)
|
|
|
|
(889)
|
|
Total Segment
Margin
|
|
$
|
17,281
|
|
|
$
|
5,086
|
|
_____________
|
(1)
|
IMAX DMR gross margin
includes marketing costs of $1.1 million for the three months ended
March 31, 2021 (2020 — $2.4 million). JRSA gross margin includes
advertising, marketing and commission expense of $0.8 million for
the three months March 31, 2021 (2020 —$0.5 million). IMAX Systems
gross margin includes marketing and commission costs of $0.2
million for the three months ended March 31, 2021 (2020 — $0.2
million). Film Distribution segment gross margin includes marketing
recovery of less than $0.1 million for the three months ended March
31, 2021, (2020 — expense of $0.2 million).
|
|
|
(2)
|
During the three
months ended March 31, 2020, Film Distribution segment results
include impairment losses of $2.3 million to write-down the
carrying value of certain documentary and alternative content film
assets due to a decrease in projected box office totals and related
revenues based on management's regular quarterly recoverability
assessments. No such charges incurred in the three months ended
March 31, 2021.
|
IMAX CORPORATION
NON-GAAP FINANCIAL
MEASURES
(in thousands of U.S. dollars)
In this release, the Company presents adjusted net loss
attributable to common shareholders and adjusted net loss
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 attributable to common shareholders and adjusted net loss
attributable to common shareholders per basic and diluted share
exclude, where applicable: (i) share-based compensation; (ii)
COVID-19 government relief benefits, (iii) realized and unrealized
investment (gains) losses, as well as the related tax impact of
these adjustments, and (iv) income taxes resulting from
management's decision to no longer indefinitely reinvest the
historical earnings of certain foreign 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
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 from net loss attributable to common
shareholders and the associated per share amounts to adjusted net
loss attributable to common shareholders and adjusted net loss
attributable to common shareholders per diluted share is presented
in the table below. Net loss attributable to common shareholders
and the associated per share amounts are the most directly
comparable GAAP measures because they reflect the earnings relevant
to the Company's shareholders, rather than the earnings
attributable to non-controlling interests.
In addition to the non-GAAP financial measures discussed above,
management also uses "EBITDA," as such term is defined in the
Company's 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. Adjusted EBITDA per Credit Facility 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 when 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 income or loss excluding (i) interest
expense, net of interest income; (ii) income tax expense or
benefit; 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) realized and unrealized investment (gains)
losses; (iii) write-downs, net of recoveries, including asset
impairments and credit loss expense; (iv) legal judgment and
arbitration awards; and (v) gain or loss from equity accounted
investments.
A reconciliation of net loss attributable to common
shareholders, which is the most directly comparable GAAP measure,
to EBITDA and Adjusted EBITDA per Credit Facility is presented in
the table below. Net loss attributable to common shareholders is
the most directly comparable GAAP measure because it reflects the
earnings relevant to the Company's shareholders, rather than the
earnings attributable to non-controlling interests.
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.
Adjusted EBITDA
per Credit Facility
|
|
|
|
For the Three
Months Ended March 31, 2021 (1)
|
|
|
For the Three
Months Ended March 31, 2020 (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
|
|
$
|
|
(10,500)
|
|
|
$
|
|
4,340
|
|
|
$
|
|
(14,840)
|
|
|
$
|
|
(59,411)
|
|
|
$
|
|
(10,057)
|
|
|
$
|
|
(49,354)
|
|
Add
(subtract):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
|
|
3,068
|
|
|
|
|
974
|
|
|
|
|
2,094
|
|
|
|
|
15,505
|
|
|
|
|
4,556
|
|
|
|
|
10,949
|
|
Interest expense, net
of interest income
|
|
|
|
1,412
|
|
|
|
|
(86)
|
|
|
|
|
1,498
|
|
|
|
|
150
|
|
|
|
|
(103)
|
|
|
|
|
253
|
|
Depreciation and
amortization, including film asset
amortization
|
|
|
|
12,986
|
|
|
|
|
1,149
|
|
|
|
|
11,837
|
|
|
|
|
15,252
|
|
|
|
|
1,240
|
|
|
|
|
14,012
|
|
EBITDA
|
|
$
|
|
6,966
|
|
|
$
|
|
6,377
|
|
|
$
|
|
589
|
|
|
$
|
|
(28,504)
|
|
|
$
|
|
(4,364)
|
|
|
$
|
|
(24,140)
|
|
Share-based and other
non-cash compensation
|
|
|
|
5,421
|
|
|
|
|
246
|
|
|
|
|
5,175
|
|
|
|
|
4,309
|
|
|
|
|
151
|
|
|
|
|
4,158
|
|
Realized and
unrealized investment (gains) losses
|
|
|
|
(5,248)
|
|
|
|
|
(1,571)
|
|
|
|
|
(3,677)
|
|
|
|
|
4,539
|
|
|
|
|
1,374
|
|
|
|
|
3,165
|
|
Write-downs, including
asset
impairments and credit
loss expense
|
|
|
|
518
|
|
|
|
|
(180)
|
|
|
|
|
698
|
|
|
|
|
14,620
|
|
|
|
|
2,692
|
|
|
|
|
11,928
|
|
Loss from equity
accounted investments
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
529
|
|
|
|
|
—
|
|
|
|
|
529
|
|
Adjusted EBITDA per
Credit Facility
|
|
$
|
|
7,657
|
|
|
$
|
|
4,872
|
|
|
$
|
|
2,785
|
|
|
$
|
|
(4,507)
|
|
|
$
|
|
(147)
|
|
|
$
|
|
(4,360)
|
|
Revenues attributable
to common
shareholders(2)
|
|
|
|
38,754
|
|
|
|
|
7,699
|
|
|
|
|
31,055
|
|
|
|
|
34,902
|
|
|
|
|
1,596
|
|
|
|
|
33,306
|
|
Adjusted EBITDA
margin attributable to common
shareholders
|
|
|
|
19.8
|
%
|
|
|
|
63.3
|
%
|
|
|
|
9.0
|
%
|
|
|
|
-12.9
|
%
|
|
|
|
-9.2
|
%
|
|
|
|
-13.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Twelve
Months Ended March 31, 2021 (1)
|
|
|
For the Twelve
Months Ended March 31, 2020 (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
|
|
$
|
|
(108,575)
|
|
|
$
|
|
686
|
|
|
$
|
|
(109,261)
|
|
|
$
|
|
(13,327)
|
|
|
$
|
|
(2,574)
|
|
|
$
|
|
(10,753)
|
|
Add
(subtract):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
|
|
14,067
|
|
|
|
|
1,826
|
|
|
|
|
12,241
|
|
|
|
|
28,624
|
|
|
|
|
7,255
|
|
|
|
|
21,369
|
|
Interest expense, net
of interest income
|
|
|
|
4,982
|
|
|
|
|
(353)
|
|
|
|
|
5,335
|
|
|
|
|
462
|
|
|
|
|
(468)
|
|
|
|
|
930
|
|
Depreciation and
amortization, including film asset
amortization
|
|
|
|
51,340
|
|
|
|
|
4,479
|
|
|
|
|
46,861
|
|
|
|
|
64,527
|
|
|
|
|
5,025
|
|
|
|
|
59,502
|
|
EBITDA
|
|
$
|
|
(38,186)
|
|
|
$
|
|
6,638
|
|
|
$
|
|
(44,824)
|
|
|
$
|
|
80,286
|
|
|
$
|
|
9,238
|
|
|
$
|
|
71,048
|
|
Share-based and other
non-cash compensation
|
|
|
|
23,150
|
|
|
|
|
1,063
|
|
|
|
|
22,087
|
|
|
|
|
23,356
|
|
|
|
|
659
|
|
|
|
|
22,697
|
|
Realized and
unrealized investment (gains) losses
|
|
|
|
(7,706)
|
|
|
|
|
(2,314)
|
|
|
|
|
(5,392)
|
|
|
|
|
7,549
|
|
|
|
|
2,331
|
|
|
|
|
5,218
|
|
Write-downs, including
asset impairments and
credit
loss expense
|
|
|
|
22,235
|
|
|
|
|
5,492
|
|
|
|
|
16,743
|
|
|
|
|
20,729
|
|
|
|
|
3,689
|
|
|
|
|
17,040
|
|
Legal judgment and
arbitration awards
|
|
|
|
4,105
|
|
|
|
|
—
|
|
|
|
|
4,105
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
Loss from equity
accounted investments
|
|
|
|
1,329
|
|
|
|
|
—
|
|
|
|
|
1,329
|
|
|
|
|
442
|
|
|
|
|
—
|
|
|
|
|
442
|
|
Adjusted EBITDA per
Credit Facility
|
|
$
|
|
4,927
|
|
|
$
|
|
10,879
|
|
|
$
|
|
(5,952)
|
|
|
$
|
|
132,362
|
|
|
$
|
|
15,917
|
|
|
$
|
|
116,445
|
|
Revenues attributable
to common
shareholders(2)
|
|
|
|
140,855
|
|
|
|
|
21,870
|
|
|
|
|
118,985
|
|
|
|
|
350,368
|
|
|
|
|
31,132
|
|
|
|
|
319,236
|
|
Adjusted EBITDA
margin attributable to common
shareholders
|
|
|
|
3.5
|
%
|
|
|
|
49.7
|
%
|
|
|
|
-5.0
|
%
|
|
|
|
37.8
|
%
|
|
|
|
51.1
|
%
|
|
|
|
36.5
|
%
|
_____________
|
(1) The Senior Secured Net
Leverage Ratio is calculated using Adjusted EBITDA per Credit
Facility determined on a trailing twelve-month basis. During the
first quarter of 2021, the Company entered into the Second
Amendment to the Credit Facility Agreement which, among other
things, suspends the Senior Secured Net Leverage Ratio financial
covenant in the Credit Agreement through the first quarter of 2022
and, once re-established, permits the Company to use EBITDA from
the third and fourth quarters of 2019 in lieu of EBITDA for the
corresponding quarters of 2021.
|
(2)
|
|
|
Three months
ended
March 31, 2021
|
|
Three months
ended
March 31, 2020
|
|
12 months
ended
March 31, 2021
|
|
12 months
ended
March 31, 2020
|
|
Total
revenues
|
|
|
|
|
|
|
$
|
|
38,754
|
|
|
|
|
|
|
$
|
|
34,902
|
|
|
|
|
|
|
$
|
|
140,855
|
|
|
|
|
|
$
|
|
350,368
|
|
Greater China
revenues
|
|
$
|
|
25,518
|
|
|
|
|
|
|
$
|
|
5,269
|
|
|
|
|
|
|
$
|
|
72,580
|
|
|
|
|
|
|
$
|
|
102,882
|
|
|
|
|
|
Non-controlling
interest ownership percentage(3)
|
|
|
|
30.17
|
%
|
|
|
|
|
|
|
|
30.29
|
%
|
|
|
|
|
|
|
|
30.13
|
%
|
|
|
|
|
|
|
|
30.26
|
%
|
|
|
|
|
Deduction for
non-controlling interest share of revenues
|
|
|
|
|
|
|
|
|
(7,699)
|
|
|
|
|
|
|
|
|
(1,596)
|
|
|
|
|
|
|
|
|
(21,870)
|
|
|
|
|
|
|
|
(31,132)
|
|
Revenues attributable
to common shareholders
|
|
|
|
|
|
|
$
|
|
31,055
|
|
|
|
|
|
|
$
|
|
33,306
|
|
|
|
|
|
|
$
|
|
118,985
|
|
|
|
|
|
$
|
|
319,236
|
|
|
(3) Weighted average
ownership percentage for change in non-controlling interest
share
|
Adjusted Net
Loss Attributable to Common Shareholders and Adjusted Diluted Per
Share Calculations
|
|
|
|
Three Months
Ended
|
|
|
|
Three Months
Ended
|
|
|
|
March 31,
2021
|
|
|
|
March 31,
2020
|
|
(In thousands of
U.S. Dollars, except per share amounts)
|
|
Net
Loss
|
|
|
|
Per
Share
|
|
|
|
Net
Loss
|
|
|
|
Per
Share
|
|
Reported net loss
attributable to common shareholders
|
|
$
|
(14,840)
|
|
|
|
$
|
(0.25)
|
|
|
|
$
|
(49,354)
|
|
|
|
$
|
(0.82)
|
|
Adjustments(1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation
|
|
|
5,348
|
|
|
|
|
0.09
|
|
|
|
|
4,075
|
|
|
|
|
0.07
|
|
COVID-19 government
relief benefits(2)
|
|
|
(1,484)
|
|
|
|
|
(0.03)
|
|
|
|
|
—
|
|
|
|
|
—
|
|
Realized and
unrealized investment (gains) losses
|
|
|
(3,677)
|
|
|
|
|
(0.06)
|
|
|
|
|
3,165
|
|
|
|
|
0.05
|
|
Tax impact on items
listed above
|
|
|
(537)
|
|
|
|
|
(0.01)
|
|
|
|
|
(338)
|
|
|
|
|
(0.01)
|
|
Income taxes resulting
from management's decision to no longer indefinitely reinvest the
historical earnings of certain foreign subsidiaries
|
|
|
381
|
|
|
|
|
0.01
|
|
|
|
|
13,726
|
|
|
|
|
0.23
|
|
Adjusted net
loss(1)
|
|
$
|
(14,809)
|
|
|
|
$
|
(0.25)
|
|
|
|
$
|
(28,726)
|
|
|
|
$
|
(0.48)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
basic shares outstanding
|
|
|
|
|
|
|
|
59,012
|
|
|
|
|
|
|
|
|
|
60,418
|
|
Weighted average
diluted shares outstanding
|
|
|
|
|
|
|
|
59,012
|
|
|
|
|
|
|
|
|
|
60,418
|
|
_____________
|
(1)
|
Reflects amounts
attributable to common shareholders.
|
(2)
|
In the three months
ended March 31, 2021, the Company recognized $1.5 million in
benefits from the CEWS program, as reductions to Selling, General
and Administrative Expenses ($1.2 million) and Costs and Expenses
Applicable to Revenues ($0.3 million) in the Condensed Consolidated
Statements of Operations. No such benefits were recognized in the
same period of 2020.
|
Free Cash
Flow
|
|
|
|
Three Months
Ended
|
|
(In thousands of
U.S. Dollars)
|
|
March 31,
2021
|
|
Net cash used in
operating activities
|
|
$
|
|
(10,951)
|
|
Net cash provided by
investing activities
|
|
|
|
14,256
|
|
Free cash
flow
|
|
$
|
|
3,305
|
|
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SOURCE IMAX Corporation