NEW YORK, July 27, 2021 /PRNewswire/ -- IMAX
Corporation (NYSE: IMAX) today reported financial results for
the second quarter of 2021, including significant improvement in
operating results and year-over-year growth in total revenue and
global box office — demonstrating strong demand for The IMAX
Experience® as theaters continue to reopen around the
world.
"IMAX is helping to lead the global recovery of the film
industry and is uniquely positioned to benefit immediately as
cinemas reopen, the Hollywood
blockbuster film slate restarts, and audiences return to theaters
worldwide," said Richard L. Gelfond,
CEO of IMAX Corporation. "We continue to demonstrate that an IMAX
release is a window unto itself, proven to draw moviegoers to the
theaters, drive premium revenue, and launch event films into the
ecosystem."
"IMAX delivered continued progress in operating results,
demonstrating growing momentum for the Company. Thanks to our
asset-lite model, we capitalized on strong year-over-year growth in
revenue and global box office to achieve another quarter of
improved profitability."
"Most encouragingly, the domestic box office is showing the same
signs of pent-up demand for moviegoing we've seen throughout
Asia and other key markets — with
each successive major tentpole release delivering an incrementally
stronger debut."
"We believe the table is set for a dramatic rebound for
blockbuster moviegoing beginning this fall and throughout 2022, as
a powerful slate of Hollywood
tentpoles representing many of the biggest global franchises in
entertainment arrives in theaters worldwide."
IMAX reported second quarter 2021 revenues of $51.0 million, gross margin of $25.6 million, and a net loss attributable to
common shareholders of ($9.2)
million, or ($0.16) per
diluted share. The Company delivered its best quarterly gross
margin and Adjusted EPS(1) of the pandemic era, as well
as its third consecutive quarter of positive EBITDA(1),
as Hollywood blockbuster releases
returned and drove a significant rebound of the domestic box
office. IMAX second quarter 2021 net loss attributable to common
shareholders reflects the ongoing impact of COVID-19 on the
Company's network and includes a non-cash valuation allowance to
reduce the value of deferred tax assets of $3.0 million or $0.05 per share.
(1) Non-GAAP Financial
Measure
|
Second Quarter Financial Highlights
|
|
Three Months
Ended
|
|
|
|
June 30,
|
|
In millions of
U.S. Dollars, except per share data
|
|
2021
|
|
|
2020
|
|
|
YoY
%
Change
|
|
Total
Revenue
|
|
$
|
51.0
|
|
|
$
|
8.9
|
|
|
|
475.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Margin (margin
loss)
|
|
$
|
25.6
|
|
|
$
|
(7.7)
|
|
|
|
433.0
|
%
|
Gross Margin
(%)
|
|
|
50.2
|
%
|
|
|
(86.8)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss attributable
to common shareholders
|
|
$
|
(9.2)
|
|
|
$
|
(26.0)
|
|
|
|
64.5
|
%
|
Diluted Net Loss per
share attributable to common shareholders
|
|
$
|
(0.16)
|
|
|
$
|
(0.44)
|
|
|
|
63.6
|
%
|
Adjusted Net Loss
attributable to common shareholders(1)
|
|
$
|
(7.0)
|
|
|
$
|
(26.1)
|
|
|
|
73.2
|
%
|
Adjusted Net Loss per
share attributable to common shareholders(1)
|
|
$
|
(0.12)
|
|
|
$
|
(0.44)
|
|
|
|
72.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA per
Credit Facility attributable to common
shareholders(1)
|
|
$
|
8.7
|
|
|
$
|
(18.5)
|
|
|
|
147.3
|
%
|
Adjusted EBITDA Margin
attributable to common shareholders (%) (1)
|
|
|
20.6
|
%
|
|
|
(219.3)
|
%
|
|
|
109.4
|
%
|
_______________
|
(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.
|
Second Quarter and June Year-to-Date Segment
Results(1)
|
|
IMAX
Technology Network
|
|
|
IMAX Technology
Sales and
Maintenance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In millions of
U.S. Dollars
|
|
Revenue
|
|
|
Gross
Margin
(Margin
Loss)
|
Gross Margin
%
|
|
|
Revenue
|
|
|
Gross
Margin
|
|
|
Gross
Margin %
|
|
2Q21
|
|
$
|
19.7
|
|
|
$
|
8.7
|
|
|
|
44.0
|
%
|
|
$
|
28.7
|
|
|
|
$
|
16.1
|
|
|
|
56.1
|
%
|
2Q20
|
|
0.4
|
|
|
|
(6.5)
|
|
|
N/A
|
|
|
4.6
|
|
|
|
|
0.2
|
|
|
|
4.9
|
%
|
%
change
|
|
N/A
|
|
|
|
232.5
|
%
|
|
|
|
|
|
|
522.7
|
%
|
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YTD
2Q21
|
|
$
|
40.0
|
|
|
$
|
18.8
|
|
|
|
47.0
|
%
|
|
$
|
45.7
|
|
|
|
$
|
23.2
|
|
|
|
50.7
|
%
|
YTD
2Q20
|
|
|
17.0
|
|
|
|
(3.7)
|
|
|
|
(21.8)
|
%
|
|
|
19.7
|
|
|
|
|
5.0
|
|
|
|
25.1
|
%
|
%
change
|
|
|
134.9
|
%
|
|
|
606.9
|
%
|
|
|
|
|
|
|
131.9
|
%
|
|
|
|
368.0
|
%
|
|
|
|
|
_______________
|
(1) Please refer to the
Company's Form 10-Q for the period ended June 30, 2021 for
additional segment information.
|
IMAX Technology Network
- IMAX Technology Network revenues increased to $19.7 million in the second quarter of 2021,
compared to $0.4 million in the
prior-year period when substantially all of the theaters in the
IMAX network were closed. The continued reopening of the Company's
network, particularly in the US, and strong performance of
Hollywood releases drove the
increase in gross box office and revenue.
- Gross margin for the IMAX Technology Network of $8.7 million in the second quarter of 2021
increased by more than $15 million as
improved box office performance drove higher revenue.
IMAX Technology Sales and Maintenance
- IMAX Technology Sales and Maintenance revenues increased to
$28.7 million in the second quarter
of 2021, compared with $4.6 million
in the prior year period. The increase in revenue was the result of
a larger number of IMAX theater system installations and higher
IMAX Maintenance sales associated with the continued reopening of
the Company's global network.
- Total gross margin for IMAX Technology Sales and Maintenance
increased to $16.1 million compared
to $0.2 million in the prior year
period. The increase in gross margin was the result of a higher
level of theater system installations and maintenance revenue
partially offset by increased costs associated with an increased
level of business activity.
Cash Balances and Outstanding Debt
Total cash and cash equivalents as of June 30, 2021 were $214.1
million. Total debt, excluding deferred financing costs was
$241.0 million as of June 30, 2021.
Share Count and Capital Return
The weighted average basic and diluted shares outstanding in the
second quarter of 2021 increased 1% to 59.4 million, compared to
58.8 million in the second quarter of 2020. During the second
quarter of 2021, the Company did not repurchase any shares. 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 4:30PM ET to discuss its second 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) 437-2398
approximately 5 to 10 minutes before the call begins. Other
international callers should dial (647) 792-1240. The conference ID
for the call is 8107291. 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 8107291.
About IMAX Corporation
IMAX, an innovator in entertainment technology, combines
proprietary software, architecture and equipment to create
experiences that take you beyond the edge of your seat to a world
you've never imagined. Top filmmakers and studios are utilizing
IMAX theaters to connect with audiences in extraordinary ways, and,
as such, IMAX's network is among the most important and successful
theatrical distribution platforms for major event films around the
globe.
IMAX is headquartered in New
York, Toronto, and
Los Angeles, with additional
offices in London, Dublin, Tokyo, and Shanghai. As of June
30, 2021, there were 1,654 IMAX theater systems (1,569
commercial multiplexes, 12 commercial destinations, 73
institutional) operating in 85 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, risks related to the adverse impact
of the COVID-19 pandemic; 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, including competitive actions by other companies; the
failure to respond to change and advancements in digital
technology; risks relating to recent consolidation among commercial
exhibitors and studios; risks related to new business initiatives;
conditions in the in-home and out-of-home entertainment industries;
the opportunities (or lack thereof) that may be presented to and
pursued by the Company; risks related to cyber-security and data
privacy; risks related to the Company's inability to protect the
Company's intellectual property; 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; any statements of belief and any statements of
assumptions underlying any of the foregoing; other factors and
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 June
30,
|
|
|
Theater System
Signings:
|
|
2021
|
|
|
|
2020
|
|
|
New IMAX Theater
Systems:
|
|
|
|
|
|
|
|
|
|
|
Sales and
sales-type lease arrangements
|
|
|
3
|
|
|
|
|
12
|
|
|
Hybrid joint
revenue sharing arrangements
|
|
|
—
|
|
|
|
|
17
|
|
|
Traditional
joint revenue sharing arrangements
|
|
|
3
|
|
|
|
|
—
|
|
|
Total new IMAX theaters Systems
|
|
|
6
|
|
|
|
|
29
|
|
|
Upgrades of IMAX
theater systems
|
|
|
2
|
|
|
|
|
—
|
|
|
Total
IMAX Theater System signings
|
|
|
8
|
|
|
|
|
29
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months
Ended June
30,
|
|
|
Theater System
Installations:
|
|
2021
|
|
|
|
2020
|
|
|
New IMAX Theater
Systems:
|
|
|
|
|
|
|
|
|
|
|
Sales
and sales-type lease arrangements
|
|
|
9
|
|
|
|
|
2
|
|
|
Hybrid
joint revenue sharing lease arrangements
|
|
|
2
|
|
|
|
|
1
|
|
|
Traditional joint revenue sharing arrangements
|
|
|
4
|
|
|
|
|
—
|
|
|
Total new IMAX Theater
Systems
|
|
|
15
|
|
|
|
|
3
|
|
|
Upgrades of IMAX
theater systems
|
|
|
1
|
|
|
|
|
—
|
|
|
Total
IMAX Theater System installations
|
|
|
16
|
|
|
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
|
Theater System
Backlog:
|
|
2021
|
|
|
|
2020
|
|
|
Sales and sales-type
lease arrangements
|
|
|
185
|
|
|
|
|
190
|
|
|
Hybrid joint revenue
sharing arrangements
|
|
|
142
|
|
|
|
|
154
|
|
|
Traditional joint
revenue sharing arrangements
|
|
|
187
|
|
(1)
|
|
|
215
|
|
(1)
|
Total Theater
System backlog
|
|
|
514
|
|
(2)
|
|
|
559
|
|
(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
|
Theater
Network:
|
|
2021
|
|
|
|
2020
|
|
|
Commercial Multiplex
Theaters
|
|
|
|
|
|
|
|
|
|
|
Sales and sales-type
lease arrangements
|
|
|
672
|
|
|
|
|
659
|
|
|
Hybrid joint revenue
sharing lease arrangements
|
|
|
143
|
|
|
|
|
138
|
|
|
Traditional joint
revenue sharing lease arrangements
|
|
|
754
|
|
|
|
|
730
|
|
|
Total Commercial
Multiplex Theaters
|
|
|
1,569
|
|
|
|
|
1,527
|
|
|
Commercial Destination
Theaters
|
|
|
12
|
|
|
|
|
13
|
|
|
Institutional
Theaters
|
|
|
73
|
|
|
|
|
75
|
|
|
Total Theater
network(4)
|
|
|
1,654
|
|
|
|
|
1,615
|
|
|
_______________
|
(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 146 new IMAX
with Laser projection system configurations and 91 upgrades of
existing locations to IMAX with Laser projection system
configurations.
|
|
|
(3)
|
Includes 154 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
|
|
|
Six Months
Ended
|
|
|
|
|
June
30,
|
|
|
June
30,
|
|
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Technology
sales
|
|
$
|
15,173
|
|
|
$
|
2,687
|
|
|
$
|
21,348
|
|
|
$
|
8,349
|
|
Image enhancement and
maintenance services
|
|
|
24,711
|
|
|
|
3,799
|
|
|
|
46,326
|
|
|
|
24,520
|
|
Technology
rentals
|
|
|
8,130
|
|
|
|
(137)
|
|
|
|
16,489
|
|
|
|
5,834
|
|
Finance
income
|
|
|
2,941
|
|
|
|
2,506
|
|
|
|
5,546
|
|
|
|
5,054
|
|
|
|
|
|
50,955
|
|
|
|
8,855
|
|
|
|
89,709
|
|
|
|
43,757
|
|
Costs and expenses
applicable to revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Technology
sales
|
|
|
6,496
|
|
|
|
2,546
|
|
|
|
11,549
|
|
|
|
6,415
|
|
Image enhancement and
maintenance services
|
|
|
12,357
|
|
|
|
7,244
|
|
|
|
22,121
|
|
|
|
25,060
|
|
Technology
rentals
|
|
|
6,499
|
|
|
|
6,753
|
|
|
|
13,155
|
|
|
|
14,884
|
|
|
|
|
|
25,352
|
|
|
|
16,543
|
|
|
|
46,825
|
|
|
|
46,359
|
|
Gross margin
(margin loss)
|
|
|
25,603
|
|
|
|
(7,688)
|
|
|
|
42,884
|
|
|
|
(2,602)
|
|
Selling, general and
administrative expenses
|
|
|
28,807
|
|
|
|
29,796
|
|
|
|
54,016
|
|
|
|
58,432
|
|
Research and
development
|
|
|
2,200
|
|
|
|
1,232
|
|
|
|
3,671
|
|
|
|
3,432
|
|
Amortization of
intangibles
|
|
|
1,190
|
|
|
|
1,344
|
|
|
|
2,331
|
|
|
|
2,665
|
|
Credit loss
(reversal) expense, net
|
|
|
(1,872)
|
|
|
|
1,440
|
|
|
|
(1,567)
|
|
|
|
11,657
|
|
Asset
impairments
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,151
|
|
Legal judgment and
arbitration awards
|
|
|
(1,770)
|
|
|
|
—
|
|
|
|
(1,770)
|
|
|
|
|
|
Loss from
operations
|
|
|
(2,952)
|
|
|
|
(41,500)
|
|
|
|
(13,797)
|
|
|
|
(79,939)
|
|
Realized and
unrealized investment gains (losses)
|
|
|
33
|
|
|
|
2,025
|
|
|
|
5,281
|
|
|
|
(2,514)
|
|
Retirement benefits
non-service expense
|
|
|
(116)
|
|
|
|
(130)
|
|
|
|
(230)
|
|
|
|
(246)
|
|
Interest
income
|
|
|
559
|
|
|
|
891
|
|
|
|
1,142
|
|
|
|
1,256
|
|
Interest
expense
|
|
|
(1,690)
|
|
|
|
(1,581)
|
|
|
|
(3,994)
|
|
|
|
(2,229)
|
|
Loss before
taxes
|
|
|
(4,166)
|
|
|
|
(40,295)
|
|
|
|
(11,598)
|
|
|
|
(83,672)
|
|
Income tax (expense)
benefit
|
|
|
(1,946)
|
|
|
|
10,248
|
|
|
|
(5,014)
|
|
|
|
(5,257)
|
|
Equity in losses of
investees, net of tax
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(529)
|
|
Net
Loss
|
|
|
(6,112)
|
|
|
|
(30,047)
|
|
|
|
(16,612)
|
|
|
|
(89,458)
|
|
Less: Net (income)
loss attributable to non-controlling interests
|
|
|
(3,099)
|
|
|
|
4,080
|
|
|
|
(7,439)
|
|
|
|
14,137
|
|
Net loss
attributable to common shareholders
|
|
$
|
(9,211)
|
|
|
$
|
(25,967)
|
|
|
$
|
(24,051)
|
|
|
$
|
(75,321)
|
|
Net loss per share
attributable to common shareholders -
basic and
diluted:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share —
basic and diluted
|
|
$
|
(0.16)
|
|
|
$
|
(0.44)
|
|
|
$
|
(0.41)
|
|
|
$
|
(1.26)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding (000's):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
59,367
|
|
|
|
58,808
|
|
|
|
59,190
|
|
|
|
59,613
|
|
|
Fully
Diluted
|
|
|
59,367
|
|
|
|
58,808
|
|
|
|
59,190
|
|
|
|
59,613
|
|
Additional
Disclosure:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
$
|
12,994
|
|
|
$
|
11,764
|
|
|
$
|
25,671
|
|
|
$
|
26,883
|
|
IMAX
CORPORATION CONDENSED CONSOLIDATED BALANCE
SHEETS (In thousands of dollars, except share
amounts) (Unaudited)
|
|
|
|
|
|
June 30,
|
|
|
December
31,
|
|
|
|
2021
|
|
|
2020
|
|
Assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
214,125
|
|
|
$
|
317,379
|
|
Accounts receivable,
net
|
|
|
68,755
|
|
|
|
56,300
|
|
Financing
receivables, net
|
|
|
133,221
|
|
|
|
131,810
|
|
Variable
consideration receivables, net
|
|
|
41,596
|
|
|
|
40,526
|
|
Inventories
|
|
|
37,299
|
|
|
|
39,580
|
|
Prepaid
expenses
|
|
|
11,892
|
|
|
|
10,420
|
|
Film assets,
net
|
|
|
5,387
|
|
|
|
5,777
|
|
Property, plant and
equipment, net
|
|
|
265,517
|
|
|
|
277,397
|
|
Investment in equity
securities
|
|
|
1,089
|
|
|
|
13,633
|
|
Other
assets
|
|
|
20,330
|
|
|
|
21,673
|
|
Deferred income tax
assets, net
|
|
|
18,720
|
|
|
|
17,983
|
|
Goodwill
|
|
|
39,027
|
|
|
|
39,027
|
|
Other intangible
assets, net
|
|
|
24,932
|
|
|
|
26,245
|
|
Total
assets
|
|
$
|
881,890
|
|
|
$
|
997,750
|
|
Liabilities
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
15,206
|
|
|
$
|
20,837
|
|
Accrued and other
liabilities
|
|
|
91,557
|
|
|
|
99,354
|
|
Revolving credit
facility borrowings, net
|
|
|
9,544
|
|
|
|
305,676
|
|
Convertible notes,
net
|
|
|
222,888
|
|
|
|
—
|
|
Deferred
revenue
|
|
|
87,489
|
|
|
|
87,982
|
|
Deferred income tax
liabilities
|
|
|
19,681
|
|
|
|
19,134
|
|
Total
liabilities
|
|
|
446,365
|
|
|
|
532,983
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
Non-controlling
interests
|
|
|
766
|
|
|
|
759
|
|
Shareholders'
equity
|
|
|
|
|
|
|
|
|
Capital stock common
shares — no par value. Authorized — unlimited number.
|
|
|
|
|
|
|
|
|
59,396,411 issued and
59,395,909 outstanding (December 31, 2020 — 58,921,731 issued and
58,921,008 outstanding)
|
|
|
415,857
|
|
|
|
407,031
|
|
Less: Treasury stock,
502 shares at cost (December 31, 2020 — 723)
|
|
|
(8)
|
|
|
|
(11)
|
|
Other
equity
|
|
|
160,658
|
|
|
|
180,330
|
|
Accumulated
deficit
|
|
|
(226,900)
|
|
|
|
(202,849)
|
|
Accumulated other
comprehensive income
|
|
|
1,062
|
|
|
|
988
|
|
Total
shareholders' equity attributable to common
shareholders
|
|
|
350,669
|
|
|
|
385,489
|
|
Non-controlling
interests
|
|
|
84,090
|
|
|
|
78,519
|
|
Total
shareholders' equity
|
|
|
434,759
|
|
|
|
464,008
|
|
Total liabilities
and shareholders' equity
|
|
$
|
881,890
|
|
|
$
|
997,750
|
|
IMAX
CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS (In thousands of
dollars) (Unaudited)
|
|
|
|
|
|
Six Months
Ended
|
|
|
|
June 30,
|
|
|
|
2021
|
|
|
2020
|
|
Operating
Activities
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
|
(16,612)
|
|
|
$
|
|
(89,458)
|
|
Adjustments to
reconcile net loss to cash used in operating activities:
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
25,671
|
|
|
|
|
26,883
|
|
Amortization of
deferred financing costs
|
|
|
|
1,008
|
|
|
|
|
299
|
|
Credit loss (reversal)
expense, net
|
|
|
|
(1,567)
|
|
|
|
|
11,657
|
|
Write-downs
|
|
|
|
462
|
|
|
|
|
6,806
|
|
Deferred income tax
expense
|
|
|
|
33
|
|
|
|
|
(4,878)
|
|
Share-based and other
non-cash compensation
|
|
|
|
12,332
|
|
|
|
|
10,850
|
|
Unrealized foreign
currency exchange (gain) loss
|
|
|
|
(490)
|
|
|
|
|
312
|
|
Realized and
unrealized investment (gains) losses
|
|
|
|
(5,281)
|
|
|
|
|
2,514
|
|
Equity in losses of
investees
|
|
|
|
—
|
|
|
|
|
529
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
|
(11,049)
|
|
|
|
|
36,971
|
|
Inventories
|
|
|
|
1,867
|
|
|
|
|
(16,887)
|
|
Film assets
|
|
|
|
(5,808)
|
|
|
|
|
(4,057)
|
|
Deferred
revenue
|
|
|
|
(447)
|
|
|
|
|
9,799
|
|
Changes in other
operating assets and liabilities
|
|
|
|
(17,135)
|
|
|
|
|
(12,220)
|
|
Net cash used in
operating activities
|
|
|
|
(17,016)
|
|
|
|
|
(20,880)
|
|
Investing
Activities
|
|
|
|
|
|
|
|
|
|
|
Purchase of property,
plant and equipment
|
|
|
|
(1,365)
|
|
|
|
|
(594)
|
|
Investment in
equipment for joint revenue sharing arrangements
|
|
|
|
(2,397)
|
|
|
|
|
(3,908)
|
|
Acquisition of other
intangible assets
|
|
|
|
(2,631)
|
|
|
|
|
(1,221)
|
|
Proceeds from sale of
equity securities
|
|
|
|
17,769
|
|
|
|
|
—
|
|
Net cash provided
by (used in) investing activities
|
|
|
|
11,376
|
|
|
|
|
(5,723)
|
|
Financing
Activities
|
|
|
|
|
|
|
|
|
|
|
Proceeds from
issuance of convertible notes, net
|
|
|
|
223,675
|
|
|
|
|
—
|
|
Debt issuance costs
related to convertible notes
|
|
|
|
(242)
|
|
|
|
|
—
|
|
Purchase of capped
calls related to convertible notes
|
|
|
|
(19,067)
|
|
|
|
|
—
|
|
Revolving credit
facility borrowings
|
|
|
|
3,600
|
|
|
|
|
280,244
|
|
Repayments of
revolving credit facility borrowings
|
|
|
|
(300,243)
|
|
|
|
|
—
|
|
Credit facility
amendment fees paid
|
|
|
|
(32)
|
|
|
|
|
(959)
|
|
Repurchase of common
shares
|
|
|
|
—
|
|
|
|
|
(36,624)
|
|
Repurchase of common
shares, IMAX China
|
|
|
|
—
|
|
|
|
|
(1,532)
|
|
Treasury stock
purchased for future settlement of restricted share
units
|
|
|
|
—
|
|
|
|
|
(3,086)
|
|
Taxes withheld and
paid on employee stock awards vested
|
|
|
|
(3,045)
|
|
|
|
|
(251)
|
|
Common shares issued
- stock options exercised
|
|
|
|
883
|
|
|
|
|
—
|
|
Dividends paid to
non-controlling interests
|
|
|
|
(2,099)
|
|
|
|
|
(2,118)
|
|
Net cash (used in)
provided by financing activities
|
|
|
|
(96,570)
|
|
|
|
|
235,674
|
|
Effects of exchange
rate changes on cash
|
|
|
|
(1,044)
|
|
|
|
|
431
|
|
(Decrease)
increase in cash and cash equivalents during period
|
|
|
|
(103,254)
|
|
|
|
|
209,502
|
|
Cash and cash
equivalents, beginning of period
|
|
|
|
317,379
|
|
|
|
|
109,484
|
|
Cash and cash
equivalents, end of period
|
|
$
|
|
214,125
|
|
|
$
|
|
318,986
|
|
|
|
Three Months
Ended
|
|
|
Six Months
Ended
|
|
|
|
June
30,
|
|
|
|
June
30,
|
|
In millions of
U.S. Dollars
|
|
2021
|
|
|
2020
|
|
|
|
2021
|
|
|
|
2020
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IMAX Technology
Network:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IMAX DMR
|
|
$
|
11,793
|
|
|
$
|
546
|
|
|
|
$
|
23,737
|
|
|
|
$
|
11,175
|
|
Joint revenue sharing
arrangements, contingent rent(1)
|
|
|
7,862
|
|
|
|
(137)
|
|
|
|
|
16,221
|
|
|
|
|
5,834
|
|
|
|
|
19,655
|
|
|
|
409
|
|
|
|
|
39,958
|
|
|
|
|
17,009
|
|
IMAX Technology Sales
and Maintenance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IMAX
Systems
|
|
|
15,982
|
|
|
|
4,549
|
|
|
|
|
21,881
|
|
|
|
|
10,237
|
|
Joint revenue sharing
arrangements, fixed fees
|
|
|
1,002
|
|
|
|
369
|
|
|
|
|
2,740
|
|
|
|
|
1,139
|
|
IMAX
Maintenance
|
|
|
11,235
|
|
|
|
—
|
|
|
|
|
20,141
|
|
|
|
|
7,370
|
|
Other Theater
Business(2)
|
|
|
483
|
|
|
|
(309)
|
|
|
|
|
920
|
|
|
|
|
954
|
|
|
|
|
28,702
|
|
|
|
4,609
|
|
|
|
|
45,682
|
|
|
|
|
19,700
|
|
New Business
Initiatives
|
|
|
648
|
|
|
|
632
|
|
|
|
|
1,316
|
|
|
|
|
1,110
|
|
Film Distribution
and Post-Production
|
|
|
1,590
|
|
|
|
3,182
|
|
|
|
|
2,403
|
|
|
|
|
5,676
|
|
|
|
|
50,595
|
|
|
|
8,832
|
|
|
|
|
89,359
|
|
|
|
|
43,495
|
|
Other
|
|
|
360
|
|
|
|
23
|
|
|
|
|
350
|
|
|
|
|
262
|
|
Total
revenues
|
|
$
|
50,955
|
|
|
$
|
8,855
|
|
|
|
$
|
89,709
|
|
|
|
$
|
43,757
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Margin
(Margin Loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IMAX Technology
Network:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IMAX
DMR(3)
|
|
$
|
6,861
|
|
|
$
|
(30)
|
|
|
|
$
|
15,112
|
|
|
|
$
|
4,413
|
|
Joint revenue sharing
arrangements, contingent rent(3)
|
|
|
1,790
|
|
|
|
(6,501)
|
|
|
|
|
3,673
|
|
|
|
|
(8,119)
|
|
|
|
|
8,651
|
|
|
|
(6,531)
|
|
|
|
|
18,785
|
|
|
|
|
(3,706)
|
|
IMAX Technology Sales
and Maintenance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IMAX Systems
(3)
|
|
|
10,548
|
|
|
|
2,650
|
|
|
|
|
13,560
|
|
|
|
|
5,826
|
|
Joint revenue sharing
arrangements, fixed fees(3)
|
|
|
347
|
|
|
|
48
|
|
|
|
|
503
|
|
|
|
|
227
|
|
IMAX
Maintenance
|
|
|
5,075
|
|
|
|
(1,908)
|
|
|
|
|
8,898
|
|
|
|
|
(1,149)
|
|
Other Theater
Business
|
|
|
142
|
|
|
|
(564)
|
|
|
|
|
205
|
|
|
|
|
46
|
|
|
|
|
16,112
|
|
|
|
226
|
|
|
|
|
23,166
|
|
|
|
|
4,950
|
|
New Business
Initiatives
|
|
|
634
|
|
|
|
512
|
|
|
|
|
1,092
|
|
|
|
|
873
|
|
Film Distribution
and Post-Production (3)(4)
|
|
|
606
|
|
|
|
(1,396)
|
|
|
|
|
581
|
|
|
|
|
(3,331)
|
|
|
|
|
26,003
|
|
|
|
(7,189)
|
|
|
|
|
43,624
|
|
|
|
|
(1,214)
|
|
Other
|
|
|
(400)
|
|
|
|
(499)
|
|
|
|
|
(740)
|
|
|
|
|
(1,388)
|
|
Total Segment Margin
(Margin Loss)
|
|
$
|
25,603
|
|
|
$
|
(7,688)
|
|
|
|
$
|
42,884
|
|
|
|
$
|
(2,602)
|
|
_______________
|
(1)
|
For the three months
ended June 30, 2020, the Company reported negative revenue due to
the continued amortization of lessee incentives that are typically
netted against lease revenues, which were abnormally low in the
period due to the COVID-19 global pandemic.
|
|
|
(2)
|
Principally includes
after-market sales of IMAX projection system parts and 3D glasses.
The Company is reporting negative revenue for the three months
ended June 30, 2020 due to an adjustment to prior period
revenue.
|
|
|
(3)
|
IMAX DMR gross margin
includes marketing costs of $1.5 million and 2.6 million,
respectively, for the three and six months ended June 30, 2021
(2020 — $nil and $2.4 million, respectively). JRSA gross margin
includes advertising, marketing and commission expense of $0.3
million and $1.1 million, respectively, for the three and six
months ended June 30, 2021 (2020 — less than $0.1 million and $0.6
million, respectively). IMAX Systems gross margin includes
marketing and commission costs of $0.4 million and $0.6 million,
respectively, for the three and six months ended June 30, 2021
(2020 —$0.2 million and $0.4 million, respectively). Film
Distribution segment gross margin includes marketing expense of
$nil and less than $0.1 million, respectively, for the three and
six months ended June 30, 2021, (2020 — less than $0.1 million and
$0.2 million, respectively).
|
|
|
(4)
|
During the three and
six months ended June 30, 2020, Film Distribution segment results
include impairment losses of $2.2 million and $4.5 million,
respectively, 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 and six months ended June 30,
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 basic and 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) legal judgment and
arbitration awards; (iv) realized and unrealized investment gains,
as well as the related tax impact of these adjustments, and (v)
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) income tax
expense or benefit; (ii) interest expense, net of interest income;
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 or losses; (iii)
write-downs, net of recoveries, including asset impairments and
credit loss expense; (iv) legal judgment and arbitration awards;
and (v) the 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 June 30, 2021 (1)
|
|
|
For the Three
Months Ended June 30, 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
|
|
$
|
|
(6,112)
|
|
|
$
|
|
3,099
|
|
|
$
|
|
(9,211)
|
|
|
$
|
|
(30,047)
|
|
|
$
|
|
(4,080)
|
|
|
$
|
|
(25,967)
|
|
Add
(subtract):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit)
|
|
|
|
1,946
|
|
|
|
|
884
|
|
|
|
|
1,062
|
|
|
|
|
(10,248)
|
|
|
|
|
638
|
|
|
|
|
(10,886)
|
|
Interest expense, net
of interest income
|
|
|
|
432
|
|
|
|
|
(89)
|
|
|
|
|
521
|
|
|
|
|
524
|
|
|
|
|
(96)
|
|
|
|
|
620
|
|
Depreciation and
amortization, including film asset amortization
|
|
|
|
12,994
|
|
|
|
|
1,038
|
|
|
|
|
11,956
|
|
|
|
|
11,764
|
|
|
|
|
1,049
|
|
|
|
|
10,715
|
|
Amortization of
deferred financing costs(2)
|
|
|
|
699
|
|
|
|
|
—
|
|
|
|
|
699
|
|
|
|
|
166
|
|
|
|
|
—
|
|
|
|
|
166
|
|
EBITDA
|
|
$
|
|
9,959
|
|
|
$
|
|
4,932
|
|
|
$
|
|
5,027
|
|
|
$
|
|
(27,841)
|
|
|
$
|
|
(2,489)
|
|
|
$
|
|
(25,352)
|
|
Share-based and other
non-cash compensation
|
|
|
|
6,911
|
|
|
|
|
345
|
|
|
|
|
6,566
|
|
|
|
|
6,541
|
|
|
|
|
299
|
|
|
|
|
6,242
|
|
Unrealized investment
gains
|
|
|
|
(33)
|
|
|
|
|
—
|
|
|
|
|
(33)
|
|
|
|
|
(2,025)
|
|
|
|
|
(612)
|
|
|
|
|
(1,413)
|
|
(Recoveries)
write-downs, including asset impairments and credit loss expense
|
|
|
|
(1,623)
|
|
|
|
|
(575)
|
|
|
|
|
(1,048)
|
|
|
|
|
3,843
|
|
|
|
|
1,815
|
|
|
|
|
2,028
|
|
Legal judgment and
arbitration awards
|
|
|
|
(1,770)
|
|
|
|
|
—
|
|
|
|
|
(1,770)
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
Adjusted EBITDA per
Credit Facility
|
|
$
|
|
13,444
|
|
|
$
|
|
4,702
|
|
|
$
|
|
8,742
|
|
|
$
|
|
(19,482)
|
|
|
$
|
|
(987)
|
|
|
$
|
|
(18,495)
|
|
Revenues attributable
to common shareholders(3)
|
|
|
|
50,955
|
|
|
|
|
8,421
|
|
|
|
|
42,534
|
|
|
|
|
8,855
|
|
|
|
|
421
|
|
|
|
|
8,434
|
|
Adjusted EBITDA
margin attributable to common shareholders
|
|
|
|
26.4
|
%
|
|
|
|
55.8
|
%
|
|
|
|
20.6
|
%
|
|
|
|
-220.0
|
%
|
|
|
|
-234.4
|
%
|
|
|
|
-219.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Twelve
Months Ended June 30, 2021 (1)
|
|
|
For the Twelve
Months Ended June 30, 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
|
|
$
|
|
(84,640)
|
|
|
$
|
|
7,865
|
|
|
$
|
|
(92,505)
|
|
|
$
|
|
(57,210)
|
|
|
$
|
|
(9,093)
|
|
|
$
|
|
(48,117)
|
|
Add
(subtract):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
|
|
26,261
|
|
|
|
|
2,072
|
|
|
|
|
24,189
|
|
|
|
|
13,069
|
|
|
|
|
6,707
|
|
|
|
|
6,362
|
|
Interest expense, net
of interest income
|
|
|
|
4,890
|
|
|
|
|
(346)
|
|
|
|
|
5,236
|
|
|
|
|
922
|
|
|
|
|
(424)
|
|
|
|
|
1,346
|
|
Depreciation and
amortization, including film asset amortization
|
|
|
|
51,492
|
|
|
|
|
4,468
|
|
|
|
|
47,024
|
|
|
|
|
60,300
|
|
|
|
|
4,897
|
|
|
|
|
55,403
|
|
Amortization of
deferred financing costs(2)
|
|
|
|
1,611
|
|
|
|
|
—
|
|
|
|
|
1,611
|
|
|
|
|
565
|
|
|
|
|
—
|
|
|
|
|
565
|
|
EBITDA
|
|
$
|
|
(386)
|
|
|
$
|
|
14,059
|
|
|
$
|
|
(14,445)
|
|
|
$
|
|
17,646
|
|
|
$
|
|
2,087
|
|
|
$
|
|
15,559
|
|
Share-based and other
non-cash compensation
|
|
|
|
23,520
|
|
|
|
|
1,109
|
|
|
|
|
22,411
|
|
|
|
|
22,710
|
|
|
|
|
730
|
|
|
|
|
21,980
|
|
Realized and
unrealized investment (gains) losses
|
|
|
|
(5,714)
|
|
|
|
|
(1,702)
|
|
|
|
|
(4,012)
|
|
|
|
|
978
|
|
|
|
|
274
|
|
|
|
|
704
|
|
Write-downs, including
asset impairments and credit loss
expense
|
|
|
|
16,769
|
|
|
|
|
3,102
|
|
|
|
|
13,667
|
|
|
|
|
23,404
|
|
|
|
|
5,420
|
|
|
|
|
17,984
|
|
Legal judgment and
arbitration awards
|
|
|
|
2,335
|
|
|
|
|
—
|
|
|
|
|
2,335
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
Loss from equity
accounted investments
|
|
|
|
1,329
|
|
|
|
|
—
|
|
|
|
|
1,329
|
|
|
|
|
304
|
|
|
|
|
—
|
|
|
|
|
304
|
|
Adjusted EBITDA per
Credit Facility
|
|
$
|
|
37,853
|
|
|
$
|
|
16,568
|
|
|
$
|
|
21,285
|
|
|
$
|
|
65,042
|
|
|
$
|
|
8,511
|
|
|
$
|
|
56,531
|
|
Revenues attributable
to common shareholders(3)
|
|
|
|
182,955
|
|
|
|
|
29,870
|
|
|
|
|
153,085
|
|
|
|
|
254,426
|
|
|
|
|
21,697
|
|
|
|
|
232,729
|
|
Adjusted EBITDA
margin attributable to common shareholders
|
|
|
|
20.7
|
%
|
|
|
|
55.5
|
%
|
|
|
|
13.9
|
%
|
|
|
|
25.6
|
%
|
|
|
|
39.2
|
%
|
|
|
|
24.3
|
%
|
_______________
|
(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)
|
The amortization of
deferred financing costs is recorded within Interest Expense in the
Condensed Consolidated Statements of Operations.
|
|
|
(3)
|
|
|
|
|
|
Three months ended
June 30, 2021
|
|
|
Three months ended
June 30, 2020
|
|
|
12 months ended
June 30, 2021
|
|
|
12 months ended
June 30, 2020
|
|
Total
revenues
|
|
|
|
|
|
|
$
|
|
50,955
|
|
|
|
|
|
|
|
$
|
|
8,855
|
|
|
|
|
|
|
|
$
|
|
182,955
|
|
|
|
|
|
|
$
|
|
254,426
|
|
Greater China
revenues
|
|
$
|
|
27,913
|
|
|
|
|
|
|
|
$
|
|
1,393
|
|
|
|
|
|
|
|
$
|
|
99,100
|
|
|
|
|
|
|
|
$
|
|
71,700
|
|
|
|
|
|
Non-controlling
interest ownership percentage(4)
|
|
|
|
30.17
|
%
|
|
|
|
|
|
|
|
|
30.19
|
%
|
|
|
|
|
|
|
|
|
30.14
|
%
|
|
|
|
|
|
|
|
|
30.26
|
%
|
|
|
|
|
Deduction for
non-controlling interest share of revenues
|
|
|
|
|
|
|
|
|
(8,421)
|
|
|
|
|
|
|
|
|
|
(421)
|
|
|
|
|
|
|
|
|
|
(29,870)
|
|
|
|
|
|
|
|
|
(21,697)
|
|
Revenues attributable
to common shareholders
|
|
|
|
|
|
|
$
|
|
42,534
|
|
|
|
|
|
|
|
$
|
|
8,434
|
|
|
|
|
|
|
|
$
|
|
153,085
|
|
|
|
|
|
|
$
|
|
232,729
|
|
|
(4)
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
|
|
|
|
June 30,
2021
|
|
|
|
June 30,
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
|
|
$
|
(9,211)
|
|
|
|
$
|
(0.16)
|
|
|
|
$
|
(25,967)
|
|
|
|
$
|
(0.44)
|
|
Adjustments(1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation
|
|
|
6,451
|
|
|
|
|
0.11
|
|
|
|
|
6,168
|
|
|
|
|
0.10
|
|
COVID-19 government
relief benefits(2)
|
|
|
(1,981)
|
|
|
|
|
(0.03)
|
|
|
|
|
(3,151)
|
|
|
|
|
(0.05)
|
|
Legal judgment and
arbitration awards
|
|
|
(1,770)
|
|
|
|
|
(0.03)
|
|
|
|
|
—
|
|
|
|
|
—
|
|
Unrealized investment
gains
|
|
|
(33)
|
|
|
|
|
—
|
|
|
|
|
(1,413)
|
|
|
|
|
(0.02)
|
|
Tax impact on items
listed above
|
|
|
(428)
|
|
|
|
|
(0.01)
|
|
|
|
|
(857)
|
|
|
|
|
(0.01)
|
|
Income taxes resulting
from management's decision to no longer indefinitely reinvest the
historical earnings of certain foreign subsidiaries
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(841)
|
|
|
|
|
(0.02)
|
|
Adjusted net
loss(1)
|
|
$
|
(6,972)
|
|
|
|
$
|
(0.12)
|
|
|
|
$
|
(26,061)
|
|
|
|
$
|
(0.44)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
basic shares outstanding
|
|
|
|
|
|
|
|
59,367
|
|
|
|
|
|
|
|
|
|
58,808
|
|
Weighted average
diluted shares outstanding
|
|
|
|
|
|
|
|
59,367
|
|
|
|
|
|
|
|
|
|
58,808
|
|
|
Six Months
Ended
|
|
|
Six Months
Ended
|
|
|
|
June 30,
2021
|
|
|
|
June 30,
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
|
|
$
|
(24,051)
|
|
|
|
$
|
(0.41)
|
|
|
|
$
|
(75,321)
|
|
|
|
$
|
(1.26)
|
|
Adjustments(1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation
|
|
|
11,799
|
|
|
|
|
0.20
|
|
|
|
|
10,243
|
|
|
|
|
0.17
|
|
COVID-19 government
relief benefits(3)
|
|
|
(3,465)
|
|
|
|
|
(0.06)
|
|
|
|
|
(3,151)
|
|
|
|
|
(0.05)
|
|
Legal judgment and
arbitration awards
|
|
|
(1,770)
|
|
|
|
|
(0.03)
|
|
|
|
|
—
|
|
|
|
|
—
|
|
Realized and
unrealized investment (gains) losses
|
|
|
(3,710)
|
|
|
|
|
(0.06)
|
|
|
|
|
1,752
|
|
|
|
|
0.03
|
|
Tax impact on items
listed above
|
|
|
(965)
|
|
|
|
|
(0.02)
|
|
|
|
|
(1,195)
|
|
|
|
|
(0.02)
|
|
Income taxes resulting
from management's decision to no longer indefinitely reinvest the
historical earnings of certain foreign subsidiaries
|
|
|
381
|
|
|
|
|
0.01
|
|
|
|
|
12,885
|
|
|
|
|
0.21
|
|
Adjusted net
loss(1)
|
|
$
|
(21,781)
|
|
|
|
$
|
(0.37)
|
|
|
|
$
|
(54,787)
|
|
|
|
$
|
(0.92)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
basic shares outstanding
|
|
|
|
|
|
|
|
59,190
|
|
|
|
|
|
|
|
|
|
59,613
|
|
Weighted average
diluted shares outstanding
|
|
|
|
|
|
|
|
59,190
|
|
|
|
|
|
|
|
|
|
59,613
|
|
_______________
|
(1)
|
Reflects amounts
attributable to common shareholders.
|
|
|
(2)
|
For the three months
ended June 30, 2021, the Company recognized $2.0 million in
COVID-19 government relief benefits (2020 — $3.2 million), as
reductions to Selling, General and Administrative Expenses ($1.4
million) (2020 — $2.9 million) and Costs and Expenses
Applicable to Revenues ($0.6 million) (2020 — $0.3 million) in
the Condensed Consolidated Statements of Operations.
|
|
|
(3)
|
For the six months
ended June 30, 2021, the Company recognized $3.5 million
in COVID-19 government relief benefits (2020 — $3.2 million),
as reductions to Selling, General and Administrative Expenses ($2.6
million) (2020 — $2.9 million) and Costs and Expenses
Applicable to Revenues ($0.9 million) (2020 — $0.3 million) in
the Condensed Consolidated Statements of Operations.
|
|
|
Free Cash
Flow
|
|
|
|
Three Months
Ended
|
|
|
Six Months
Ended
|
|
(In thousands of
U.S. Dollars)
|
|
June 30,
2021
|
|
|
June 30,
2021
|
|
Net cash used in
operating activities
|
|
$
|
|
(6,065)
|
|
|
$
|
|
(17,016)
|
|
Net cash (used in)
provided by investing activities
|
|
|
|
(2,880)
|
|
|
|
|
11,376
|
|
Free cash
flow
|
|
$
|
|
(8,945)
|
|
|
$
|
|
(5,640)
|
|
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SOURCE IMAX Corporation