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IMAX CORPORATION REPORTS Q4 AND FULL-YEAR 2023 RESULTS

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2 years ago

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Global entertainment technology platform delivers over 25% YoY growth in FY23 across Revenue, Net Income, Adjusted EBITDA(1) and Adjusted EPS(1)(2)Full-Year GAAP EPS of $0.46, up from a loss of ($0.40) in FY22; Full-Year Adjusted EPS of $0.94, up from $0.06 in FY22Net Income of $25 million in FY23 increased from a loss of $(23) million in 2022 while Adjusted EBITDA(2) increases to $128 million in FY23, up 52% from $84 million in FY22System sales activity increases 174% YoY to 129 signings worldwide in FY23Company delivers on high end of guidance with 128 system installations in FY23, up from 92 in FY22IMAX achieves global box office of approximately $1.1 billion, approaching previous recordFull-Year cash from operations more than triples to $59 million in FY23, up from $17 million FY22

NEW YORK, Feb. 27, 2024 /PRNewswire/ — IMAX Corporation (NYSE: IMAX) today reported financial results for the Fourth Quarter and Full-Year 2023, highlighted by strong top and bottom-line growth for the full-year.

“IMAX delivered excellent results in 2023 — we grew Net Income by $48 million, Adjusted EPS by 88 cents, Adjusted EBITDA by 52%, and system installations by nearly 40%  — on the strength of demand for our technology, our unique premium model, and a clear preference among consumers worldwide for awe-inspiring IMAX experiences,” said Rich Gelfond, CEO of IMAX.

“As the entertainment landscape transforms, it is clear that IMAX is among its premier, in-demand destinations. We drove significant expansion and diversification of our global footprint, with a record 61 of our system installations coming from strategic Rest of World markets such as Japan, South Korea and Europe. Even as we deliver an outsized share of the global box office, we estimate the current IMAX network is only at 47% penetration — with the opportunity to open nearly 2,000 additional locations worldwide.”

“Our strong network growth is a direct result of our global content strategy, which has yielded the biggest and most diverse portfolio of IMAX Experiences ever. 2023 saw IMAX deliver a record at the North American box office, highest grossing year ever for local language films and overall box office approaching our best year ever. We are strategically managing our content portfolio to drive greater share of Hollywood releases, grow local language, accelerate our pipeline of IMAX Documentaries, and push further into emerging verticals including music and gaming, live experiences and recurring programming.”

“Through our global technology platform, IMAX powers awe-inspiring experiences for audiences around the world — capitalizing on the limitlessness of human imagination and need for shared experiences. We look forward to further capturing this opportunity, growing our network and content portfolio, to deliver results for our shareholders.”

_______________

(1)

Non-GAAP Financial Measure. See the discussion at the end of this earnings release for a description of the non-GAAP financial measures used herein, as well as reconciliations to the most comparable GAAP amounts.

(2)

Attributable to common shareholders.

 

Fourth Quarter and December Full-Year Financial Highlights

Three Months Ended

Year Ended

December 31,

December 31,

In millions of U.S. Dollars, except per share data

2023

2022

YoY %
Change

2023

2022

YoY %
Change

Total Revenue

$

86.0

$

98.0

(12 %)

$

374.8

$

300.8

25 %

Gross Margin

$

43.7

$

48.8

(11 %)

$

214.3

$

156.4

37 %

Gross Margin (%)

51

%

50

%

57

%

52

%

Adjusted EBITDA – attributable to common shareholders(1)(3)

$

23.0

$

27.8

(17 %)

$

128.2

$

84.5

52 %

Adjusted EBITDA Margin (%) – attributable to common shareholders(1)(3)

28

%

31

%

(8 %)

37

%

30

%

22 %

Total Adjusted EBITDA(1)(3)(4)

$

25.2

$

31.5

(20 %)

$

144.0

$

95.7

51 %

Total Adjusted EBITDA Margin (%)(1)(3)(4)

29

%

32

%

(9 %)

38

%

32

%

21 %

Net Income (Loss)(2)

$

2.5

$

2.6

(3 %)

$

25.3

$

(22.8)

N/A

Net Income (Loss) per share(2) – basic and diluted

$

0.05

$

0.05

—

$

0.46

$

(0.40)

N/A

Adjusted Net Income(1)(2)

$

9.3

$

10.6

(12 %)

$

52.1

$

3.2

N/A

Adjusted Earnings Per Share(1)(2)

$

0.17

$

0.19

(11 %)

$

0.94

$

0.06

N/A

Weighted average shares outstanding (in millions)(5):

Basic

54.0

54.8

(2 %)

54.3

56.7

(4 %)

Diluted

55.0

55.7

(1 %)

55.1

57.4

(4 %)

_______________

(1)

Non-GAAP Financial Measure. See the discussion at the end of this earnings release for a description of the non-GAAP financial measures used herein, as well as reconciliations to the most comparable GAAP amounts.

(2)

Attributable to common shareholders.

(3)

Per Credit Facility.

(4)

Total Adjusted EBITDA is equivalent to Total Adjusted EBITDA Attributable to Non-controlling Interests and Common Shareholders.

(5)

Reflects weighted average shares outstanding used in Adjusted Earnings Per Share calculation.

 

Fourth Quarter and Full Year Segment Results(1)

Content Solutions

Technology Products and Services

Revenue

Gross Margin

Gross
Margin %

Revenue

Gross Margin

Gross
Margin %

4Q23

$

19.1

$

9.7

51

%

$

62.5

$

29.9

48

%

4Q22

29.3

12.1

41

%

66.1

35.2

53

%

% change

(35)

%

(20)

%

(5)

%

(15)

%

FY23

$

126.7

$

74.1

58

%

$

234.3

$

129.9

55

%

FY22

101.8

51.2

50

%

192.4

101.1

53

%

% change

24

%

45

%

22

%

28

%

_______________

(1)

Please refer to the Company’s Form 10-K for the year ended December 31, 2023 for additional segment information.

Content Solutions Segment

Content Solutions revenue of $126.7 million increased 24% year-over-year for the full year 2023 while Q4 revenue of $19.1 million decreased 35% year-over-year. Gross box office from IMAX locations for full year 2023 of approximately $1.1 billion was up 25% while Q4 2023 of $170 million was down 32% year-over-year. IMAX set numerous records for box office during 2023 including:Highest full year local language box office of $227 millionHighest full year domestic box office of $393 millionHighest Q3 box office of $347 millionGross margin for Content Solutions of $74.1 million for the full year 2023 increased 45% year-over-year while Q4 gross margin of $9.7 million decreased 20% year-over-year. The Company saw significant margin expansion for the full year 2023 (up 800 basis points) and Q4 2023 (up 1000 basis points) driven by the operating leverage in our business along with our disciplined cost management.

Technology Products and Services Segment

Technology Products and Services revenues and gross margin for full year 2023 increased 22% year-over-year to $234.3 million and 28% year-over-year to $129.9 million, respectively. Q4 revenue and gross margin decreased 5% year-over-year to $62.5 million and 15% year-over-year to $29.9 million, respectively.For the full year 2023 the Company installed 128 systems compared to 92 systems in full year 2022. Of those, 75 systems were under sales and hybrid JRSA arrangements, compared to 46 systems in the prior year.During the fourth quarter the Company installed 69 systems compared to 52 systems in the fourth quarter of 2022. Of those, 38 systems were under sales and hybrid JRSA arrangements, compared to 24 systems in the prior year.Commercial network growth accelerated with the number of IMAX locations increasing 4% year-over-year to 1,693. The Company ended 2023 with a backlog of 450 IMAX systems.

Operating Cash Flow and Liquidity

Net cash provided by operating activities for full year 2023 was $58.6 million compared to $17.3 million in the prior period with the increase reflecting the higher profits year-over-year and improvements in working capital.

As of December 31, 2023, the Company’s available liquidity was $407 million. The Company’s liquidity includes cash and cash equivalents of $76 million, $276 million in available borrowing capacity under the Credit Facility, and $55 million in available borrowing capacity under IMAX China’s revolving facilities. Total debt, excluding deferred financing costs, was $257 million as of December 31, 2023.

In 2021, the Company issued $230.0 million of 0.500% Convertible Senior Notes due 2026 (“Convertible Notes”). In connection with the pricing of the Convertible Notes, the Company entered into privately negotiated capped call transactions with an initial cap price of $37.2750 per share of the Company’s common shares. 

Share Count and Capital Return

The weighted average basic and diluted shares outstanding used in the calculation of adjusted EPS for the full year of 2023 were 54.3 million and 55.1 million, respectively, compared to 56.7 million and 57.4 million, respectively for the full year 2022, a decrease year-over-year of 4% for both basic and diluted shares outstanding.

For the full year 2023, the Company repurchased 1.6 million common shares at an average price of $16.45 per share, for a total of $26.4 million, excluding commission, with $24.2 million of repurchases coming in the fourth quarter of 2023. Subsequent to year-end, the Company repurchased 1.2 million common shares at an average price of $13.99 per share, for a total of $16.2 million, excluding commission, year-to-date through February 26, 2024.

On June 14, 2023, the Company announced a 3-year extension to its share-repurchase program through June 30, 2026. The current share-repurchase program authorizes the Company to repurchase up to $400.0 million of its common shares, of which approximately $151.0 million remains available.

2024 Guidance

The Company expects the following for the full year 2024:

IMAX Gross Box Office: Similar to 2023System Installations: 120 to 150 SystemsTotal Consolidated Adjusted EBITDA Margin: High 30’s percent

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 monthly 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 within five business days of month-end, although the Company may change this timing without notice.

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 4:30 PM ET to discuss its full year and fourth quarter 2023 financial results. This call is being webcast and can be accessed at investors.imax.com. To access the call via telephone, interested parties please pre-register here: https://register.vevent.com/register/BI5eba9aa253da46dfb62bb6d573394a9d and you will be provided with a dial-in number and unique pin. To avoid delays, we encourage participants to dial into the conference call ten minutes ahead of the scheduled start time. A replay of the call will be available via webcast at investors.imax.com.

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 systems to connect with audiences in extraordinary ways, making IMAX’s network 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 December 31, 2023, there were 1,772 IMAX systems (1,693 commercial multiplexes, 12 commercial destinations, 67 institutional) operating in 90 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® 3D, Experience It In IMAX®, The IMAX Experience®, DMR®, Filmed For IMAX®, IMAX LIVETM, IMAX Enhanced® are trademarks and trade names of IMAX Corporation or its subsidiaries that are registered or otherwise protected under laws of various jurisdictions. For more information, visit www.imax.com. You can also connect with IMAX on Instagram (www.instagram.com/company/imax), Facebook (www.facebook.com/imax), LinkedIn (www.linkedin.com/company/imax), X (www.twitter.com/imax), and YouTube (www.youtube.com/imaxmovies).

For additional information please contact:

Investors:

IMAX Corporation, New York

Jennifer Horsley

212-821-0154

jhorsley@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, 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 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, as well as geopolitical conflicts; risks related to the Company’s growth and operations in China; the performance of IMAX remastered films and other films released to the IMAX network; the signing of IMAX 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 consolidation among commercial exhibitors and studios; risks related to brand extensions and 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 climate change; risks related to weather conditions and natural disasters that may disrupt or harm the Company’s business; risks related to the Company’s indebtedness and compliance with its debt agreements; general economic, market or business conditions; risks related to political, economic and social instability; the failure to convert system backlog into revenue; changes in laws or regulations; any statements of belief and any statements of assumptions underlying any of the foregoing; other factors and risks outlined in the Company’s 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 the Company’s most recent Annual Report on Form 10-K. 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’s Chief Executive Officer (“CEO”) is its Chief Operating Decision Maker (“CODM”), as such term is defined under U.S. GAAP. The CODM, along with other members of management, assesses segment performance based on segment revenues and gross margins. Selling, general and administrative expenses, research and development costs, the amortization of intangible assets, provision for (reversal of) current expected credit losses, certain write-downs, interest income, interest expense, and income tax (expense) benefit are not allocated to the Company’s segments.

In the first quarter of 2023, the Company revised its internal segment reporting, including the information provided to the CODM to assess segment performance and allocate resources.

The Company has the following reportable segments:

(i)                 

Content Solutions, which principally includes the digital remastering of films and other content into IMAX formats for distribution to the IMAX network. To a lesser extent, the Content Solutions segment also earns revenue from the distribution of large-format documentary films and exclusive experiences ranging from live performances to interactive events with leading artists and creators, as well as film post-production services.

(ii)                 

Technology Products and Services, which includes results from the sale or lease of IMAX Systems, as well as from the maintenance of IMAX Systems. To a lesser extent, the Technology Product and Services segment also earns revenue from certain ancillary theater business activities, including after-market sales of IMAX System parts and 3D glasses.

Transactions between segments are valued at exchange value. Inter-segment profits are eliminated upon consolidation, as well as for the disclosures below.

 

IMAX Network and Backlog

Three Months
Ended December 31,

Year
Ended December 31,

System Signings(1):

2023

2022

2023

2022

Sales Arrangements

10

11

64

21

Hybrid JRSA

—

—

—

3

Traditional JRSA

25

1

65

23

   Total IMAX System signings

35

12

129

47

Three Months
Ended December 31,

Year
Ended December 31,

System Installations(2):

2023

2022

2023

2022

Sales Arrangements

35

21

70

38

Hybrid JRSA

3

3

5

8

Traditional JRSA

31

28

53

46

   Total IMAX System installations

69

52

128

92

 

Year
Ended December 31,

System Backlog:

2023

2022

Sales Arrangements

164

162

Hybrid JRSA

103

120

Traditional JRSA

183

168

Total System backlog

450

450

Year
Ended December 31,

System Network:

2023

2022

Commercial Multiplex Systems

Sales Arrangements

769

702

Hybrid JRSA

138

151

Traditional JRSA

786

780

Total Commercial Multiplex Systems

1,693

1,633

Commercial Destination Systems

12

12

Institutional Systems

67

71

Total System network

1,772

1,716

______________

(1)

System signings include new signings of 32 in Q4 2023, 9 in Q4 2022, 108 in the full year 2023 and 30 in the full year 2022.

(2)

System installations include new systems installations of 47 in Q4 2023, 21 in Q4 2022, 86 in the full year 2023 and 56 in the full year 2022.

 

IMAX CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands of U.S. dollars, except per share amounts)

Three Months Ended

December 31,

Year Ended

(Unaudited)

December 31,

2023

2022

2023

2022

Revenues

Technology sales

$

35,337

$

33,888

$

100,792

$

69,158

Image enhancement and maintenance services

35,508

44,094

189,752

161,379

Technology rentals

12,954

18,060

75,566

61,786

Finance income

2,219

2,004

8,729

8,482

86,018

98,046

374,839

300,805

Costs and expenses applicable to revenues

Technology sales

17,805

17,346

46,756

37,610

Image enhancement and maintenance services

18,586

25,575

88,056

81,834

Technology rentals

5,939

6,278

25,686

25,006

42,330

49,199

160,498

144,450

Gross margin

43,688

48,847

214,341

156,355

Selling, general and administrative expenses

35,070

37,862

144,406

138,043

Research and development

2,722

1,633

10,110

5,300

Amortization of intangible assets

1,250

1,417

4,578

4,829

Credit loss expense (reversal), net

170

398

1,759

8,547

Asset impairments

144

—

144

4,470

Restructuring and executive transition costs

1,593

—

2,946

—

Income (loss) from operations

2,739

7,537

50,398

(4,834)

Realized and unrealized investment gains (losses)

29

(29)

465

70

Retirement benefits non-service expense

(179)

(139)

(411)

(556)

Interest income

648

252

2,486

1,428

Interest expense

(1,776)

(1,523)

(6,821)

(5,877)

Income (loss) before taxes

1,461

6,098

46,117

(9,769)

Income tax recovery (expense)

1,850

(2,017)

(13,051)

(10,108)

Net income (loss)

3,311

4,081

33,066

(19,877)

Net income attributable to non-controlling interests

(771)

(1,468)

(7,731)

(2,923)

Net income (loss) attributable to common shareholders

$

2,540

$

2,613

$

25,335

$

(22,800)

Net income (loss) per share attributable to common shareholders

Basic

$

0.05

$

0.05

$

0.47

$

(0.40)

Diluted

$

0.05

$

0.05

$

0.46

$

(0.40)

Weighted average shares outstanding (in thousands):

Basic

53,973

54,816

54,310

56,674

Diluted

54,983

55,659

55,146

56,674

Additional Disclosure:

Depreciation and amortization

$

13,545

$

13,998

$

60,022

$

56,661

Amortization of deferred financing costs

$

493

$

712

$

2,235

$

3,177

 

IMAX CORPORATION

CONSOLIDATED BALANCE SHEETS

(In thousands of dollars, except share amounts)

As of December 31,

2023

2022

Assets

Cash and cash equivalents

$

76,200

$

97,401

Accounts receivable, net of allowance for credit losses

136,259

136,142

Financing receivables, net of allowance for credit losses

127,154

129,384

Variable consideration receivable, net of allowance for credit losses

64,338

44,024

Inventories

31,584

31,534

Prepaid expenses

12,345

12,343

Film assets, net of accumulated amortization

6,786

5,277

Property, plant and equipment, net of accumulated depreciation

243,299

252,896

Investment in equity securities

—

1,035

Other assets

20,879

15,665

Deferred income tax assets, net of valuation allowance

7,988

9,900

Goodwill

52,815

52,815

Other intangible assets, net of accumulated amortization

35,022

32,738

Total assets

$

814,669

$

821,154

Liabilities

Accounts payable

$

26,386

$

25,237

Accrued and other liabilities

111,013

117,286

Deferred revenue

67,105

70,940

Revolving credit facility borrowings, net of unamortized debt issuance costs

22,924

36,111

Convertible notes and other borrowings, net of unamortized discounts and debt issuance costs

229,131

226,912

Deferred income tax liabilities

12,521

14,900

Total liabilities

469,080

491,386

Commitments, contingencies and guarantees

Non-controlling interests

658

722

Shareholders’ equity

Capital stock common shares — no par value. Authorized — unlimited number.

53,260,276 issued and outstanding (December 31, 2022 — 54,148,614 issued and outstanding)

389,048

376,715

Other equity

185,087

185,678

Statutory surplus reserve

3,932

3,932

Accumulated deficit

(292,845)

(293,124)

Accumulated other comprehensive loss

(12,081)

(9,846)

Total shareholders’ equity attributable to common shareholders

273,141

263,355

Non-controlling interests

71,790

65,691

Total shareholders’ equity

344,931

329,046

Total liabilities and shareholders’ equity

$

814,669

$

821,154

 

IMAX CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands of dollars)

Years Ended December 31,

2023

2022

Operating Activities

Net income (loss)

$

33,066

$

(19,877)

Adjustments to reconcile net income (loss) to cash provided by operating activities:

Depreciation and amortization

60,022

56,661

Amortization of deferred financing costs

2,235

3,177

Credit loss expense, net

1,759

8,547

Write-downs, including asset impairments

1,884

7,176

Deferred income tax benefit

(1,447)

(2,073)

Share-based and other non-cash compensation

24,230

27,573

Unrealized foreign currency exchange (gain) loss

(212)

1,108

Realized and unrealized investment gain

(465)

(70)

Changes in assets and liabilities:

Accounts receivable

(1,907)

(29,003)

Inventories

(285)

(5,529)

Film assets

(20,394)

(19,598)

Deferred revenue

(3,882)

(11,572)

Changes in other operating assets and liabilities

(35,989)

801

Net cash provided by operating activities

58,615

17,321

Investing Activities

Purchase of property, plant and equipment

(6,491)

(8,424)

Investment in equipment for joint revenue sharing arrangements

(18,000)

(19,803)

Interest in film classified as a financial instrument

—

(4,731)

Acquisition of other intangible assets

(8,344)

(4,394)

Proceeds from sale of equity securities

1,045

—

Acquisition of SSIMWAVE Inc., net of cash and cash equivalents acquired

—

(15,939)

Net cash used in investing activities

(31,790)

(53,291)

Financing Activities

Proceeds from revolving credit facility borrowings

39,717

37,871

Repayments of revolving credit facility borrowings

(53,248)

(3,600)

Proceeds from other borrowings

322

—

Repayment of other borrowings

(53)

—

Credit facility amendment fees paid

(46)

(2,279)

Repurchase of common shares, IMAX Corporation

(26,823)

(80,124)

Repurchase of common shares, IMAX China

(15)

(3,043)

Taxes withheld and paid on employee stock awards vested

(6,466)

(3,687)

Principal payment under finance lease obligations

(480)

(948)

Dividends paid to non-controlling interests

(1,438)

(2,704)

Net cash used in financing activities

(48,530)

(58,514)

Effects of exchange rate changes on cash

504

2,174

Decrease in cash and cash equivalents during year

(21,201)

(92,310)

Cash and cash equivalents, beginning of year

97,401

189,711

Cash and cash equivalents, end of year

$

76,200

$

97,401

 

Segment Revenue and Gross Margin

(In thousands of dollars)

Three Months Ended

Years Ended

December 31,

December 31,

2023

2022

2023

2022

Revenue

Content Solutions

19,093

29,320

126,698

101,820

Technology Products and Services

62,490

66,107

234,303

192,368

Sub-total for reportable segments

81,583

95,427

361,001

294,188

All Other(1)

4,435

2,619

13,838

6,617

Total

$

86,018

$

98,046

$

374,839

$

300,805

Gross Margin

Content Solutions

9,709

12,122

74,106

51,240

Technology Products and Services

29,880

35,179

129,946

101,055

Sub-total for reportable segments

39,589

47,301

204,052

152,295

All Other(1)

4,099

1,546

10,289

4,060

Total

$

43,688

$

48,847

$

214,341

$

156,355

______________

(1)     All Other includes the results from Streaming and Consumer Technology and other ancillary activities.

IMAX CORPORATION
NON-GAAP FINANCIAL MEASURES
(in thousands of U.S. dollars)

In this release, the Company presents adjusted net income attributable to common shareholders and adjusted net income attributable to common shareholders per basic and diluted share, EBITDA, Adjusted EBITDA per Credit Facility, Adjusted EBITDA margin as supplemental measures of the Company’s performance, which are not recognized under U.S. GAAP. Adjusted net income attributable to common shareholders and adjusted net income attributable to common shareholders per basic and diluted share exclude, where applicable: (i) share-based compensation; (ii) COVID-19 government relief benefits, net; (iii) realized and unrealized investment gains or losses; (iv) transaction-related expenses; and (v) restructuring and executive transition costs, as well as the related tax impact of these adjustments.

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 income (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 income (loss) attributable to common shareholders and the associated per share amounts to adjusted net income attributable to common shareholders and adjusted net income attributable to common shareholders per diluted share is presented in the table below. Net income (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; (iii) depreciation and amortization, including film asset amortization; and (iv) amortization of deferred financing costs. 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) transaction-related expenses; (iv) restructuring and executive transition costs; and (v) write-downs, net of recoveries, including asset impairments and credit loss expense.

A reconciliation of net income (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 income (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.

In this release, the Company also presents free cash flow, which is not recognized under U.S. GAAP, as a supplemental measure of the Company’s liquidity. The Company definition of free cash flow deducts only normal recurring capital expenditures, including the Company’s investment in joint revenue sharing arrangements, the purchase of property, plant and equipment and the acquisition of other intangible assets (from the Consolidated Statements of Cash Flows), from net cash provided by or used in operating activities. Management believes that free cash flow is a supplemental measure of the 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 December 31, 2023 (1)

For the Three Months Ended December 31, 2022 (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 income

$

3,311

$

771

$

2,540

$

4,081

$

1,468

$

2,613

Add (subtract):

Income tax expense

(1,850)

(147)

(1,703)

2,016

786

1,230

Interest expense, net of interest income

636

(137)

773

559

(15)

574

Depreciation and amortization, including film asset
amortization

13,545

1,161

12,384

13,998

1,109

12,889

Amortization of deferred financing costs(2)

493

—

493

712

—

712

EBITDA

$

16,135

$

1,648

$

14,487

$

21,366

$

3,348

$

18,018

Stock and other non-cash compensation

6,400

144

6,256

8,063

205

7,858

Unrealized investment (gains) losses

(29)

—

(29)

29

—

29

Transaction-related expenses(3)

327

208

119

166

—

166

Write-downs, including asset impairments and
credit loss expense

812

(37)

849

1,867

162

1,705

Restructuring and executive transition costs(4)

1,593

258

1,335

—

—

—

Adjusted EBITDA per Credit Facility

$

25,238

$

2,221

$

23,017

$

31,491

$

3,715

$

27,776

Revenues attributable to common shareholders(5)

86,018

4,687

81,331

98,046

7,273

90,773

Adjusted EBITDA margin attributable to common
shareholders

29.3

%

47.4

%

28.3

%

32.1

%

51.1

%

30.6

%

For the Twelve Months Ended December 31, 2023 (1)

For the Twelve Months Ended December 31, 2022 (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 income (loss)

$

33,066

$

7,731

$

25,335

$

(19,877)

$

2,923

$

(22,800)

Add (subtract):

Income tax expense

13,051

1,725

11,326

10,108

1,256

8,852

Interest expense, net of interest income

2,101

(408)

2,509

1,272

(251)

1,523

Depreciation and amortization, including film asset
   amortization

60,022

5,312

54,710

56,661

4,820

51,841

Amortization of deferred financing costs(2)

2,235

—

2,235

3,177

—

3,177

EBITDA

$

110,475

$

14,360

$

96,115

$

51,341

$

8,748

$

42,593

Stock and other non-cash compensation

24,230

774

23,456

27,573

760

26,813

Unrealized investment gains

(465)

(93)

(372)

(70)

—

(70)

Transaction-related expenses(3)

3,569

208

3,361

1,122

—

1,122

Write-downs, including asset impairments and
credit loss expense

3,273

362

2,911

15,723

1,723

14,000

Restructuring and executive transition costs(4)

2,946

258

2,688

—

—

—

Adjusted EBITDA per Credit Facility

$

144,028

$

15,869

$

128,159

$

95,689

$

11,231

$

84,458

Revenues attributable to common shareholders(5)

374,839

25,674

349,165

300,805

20,883

279,922

Adjusted EBITDA margin attributable to common
shareholders

38.4

%

61.8

%

36.7

%

31.8

%

53.8

%

30.2

%

______________

(1)

The Senior Secured Net Leverage Ratio is calculated using Adjusted EBITDA per Credit Facility determined on a trailing twelve-month basis.

(2)

The amortization of deferred financing costs is recorded within Interest Expense in the Condensed Consolidated Statement of Operations.

(3)

Reflects costs incurred resulting from the Company’s proposal to acquire the outstanding 96.3 million shares in IMAX China.

(4)

Reflects costs in connection with the departure of the President, IMAX Entertainment and Executive Vice President of the Company and other employees to capture efficiencies and centralize certain operational roles.

(5)

(In thousands of U.S. Dollars)

Three months ended
December 31, 2023

Three months ended
December 31, 2022

Year ended
December 31, 2023

Year ended
December 31, 2022

Total revenues

$

86,018

$

98,046

$

374,839

$

300,805

Greater China revenues

$

16,521

$

25,728

$

90,496

$

73,330

Non-controlling interest ownership
percentage(6)

28.37

%

28.27

%

28.37

%

28.48

%

Deduction for non-controlling interest
share of revenues

(4,687)

(7,273)

(25,674)

(20,883)

Revenues attributable to common
shareholders

$

81,331

$

90,773

$

349,165

$

279,922

(6)

Weighted average ownership percentage for change in non-controlling interest share

 

Adjusted Net Income Attributable to Common Shareholders and Adjusted Net Income Per Share

Three Months Ended

Three Months Ended

December 31, 2023

December 31, 2022

(In thousands of U.S. dollars, except per share amounts)

Net Income

Per Diluted
Share

Net Income

Per Diluted
Share

Net income attributable to common shareholders

$

2,540

$

0.05

$

2,613

$

0.05

Adjustments(1):

Share-based compensation

6,074

0.11

7,730

0.14

Unrealized investment gains

(32)

—

29

—

Transaction-related expenses(2)

119

—

166

—

Restructuring and executive transition costs(3)

1,335

0.02

—

—

Tax impact on items listed above

(747)

(0.01)

17

—

Adjusted net income(1)

$

9,289

$

0.17

$

10,555

$

0.19

Weighted average basic shares outstanding

53,973

54,816

Weighted average diluted shares outstanding

54,983

55,659

Year Ended

Year Ended

December 31, 2023

December 31, 2022

(In thousands of U.S. dollars, except per share amounts)

Net Income

Per Diluted
Share

Net (Loss)
Income

Per Diluted
Share

Net income (loss) attributable to common shareholders

$

25,335

$

0.46

$

(22,800)

$

(0.40)

Adjustments(1):

Share-based compensation

23,184

0.42

26,382

0.46

COVID-19 government relief benefits, net

—

—

(373)

(0.01)

Unrealized investment gains

(558)

(0.01)

(70)

—

Transaction-related expenses(2)

3,361

0.06

1,122

0.02

Restructuring and executive transition costs(3)

2,688

0.05

—

—

Tax impact on items listed above

(1,931)

(0.04)

(1,054)

(0.02)

Adjusted net income(1)

$

52,079

$

0.94

$

3,207

$

0.06

 Weighted average shares outstanding – basic

54,310

56,674

 Weighted average shares outstanding – diluted

55,146

57,371

 _______________

(1)

Reflects amounts attributable to common shareholders.

(2)

Reflects costs in connection with the Company’s proposal to acquire the outstanding 96.3 million shares in IMAX China in 2023 and costs incurred associated with the acquisition of SSIMWAVE in 2022.

(3)

Reflects costs in connection with the departure of the President, IMAX Entertainment and Executive Vice President of the Company and other employees to capture efficiencies and centralize certain operational roles.

 

Free Cash Flow

Year Ended

Year Ended

(In thousands of U.S. Dollars)

December 31, 2023

December 31, 2022

Net cash provided by operating activities

$

58,615

$

17,321

Purchase of property, plant and equipment

(6,491)

(8,424)

Acquisition of other intangible assets

(8,344)

(4,394)

Free cash flow before growth CAPEX

43,780

4,503

Investment in equipment for joint revenue sharing arrangements

(18,000)

(19,803)

Free cash flow

$

25,780

$

(15,300)

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SOURCE IMAX Corporation

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HFS Research Launches Data Intelligence Suite, Delivering Proprietary Enterprise Intelligence Across AI, GCCs, Buyer Sentiment, and Pricing

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2 hours ago

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April 28, 2026

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New suite transforms proprietary datasets on AI, global operations, and enterprise investment into actionable intelligence for business leaders

NEW YORK, April 28, 2026 /PRNewswire/ — HFS Research, a leading global research and advisory firm, today announced the upcoming launch of its HFS Data Intelligence Suite, a new set of proprietary intelligence assets designed to help enterprise leaders move beyond fragmented insights and make decisions grounded in real-world data. The suite will be formally launched on May 5, 2026.

As enterprises face increasing pressure to make faster, higher-stakes decisions, many continue to rely on incomplete or inconsistent data, often spread across internal sources, vendor narratives, and static research. While access to information has increased, confidence in that information has not kept pace.

The HFS Data Intelligence Suite addresses this gap by bringing together HFS’s proprietary datasets into a unified, accessible platform that reflects what is actually happening across enterprise technology and operations.

The suite includes:

A library of more than 1,800 real-world AI deployments, enabling leaders to identify what is delivering measurable outcomes across industries and functionsIntelligence on over 1,500 Global Capability Centers (GCCs), providing visibility into how enterprises are structuring and evolving their global operationsThe Enterprise Mandate Index, built on more than 500,000 data points, offering a data-driven view of enterprise priorities and investment trendsThe HFS / HEX Benchmark Suite, delivering independent benchmarks for pricing and performance across services and technology engagements

Together, these assets provide enterprise leaders with a clearer, more comprehensive view of market activity, supporting decisions across AI investment, global operating models, sourcing strategy, and commercial performance.

According to Ashish Chaturvedi, Executive Research Leader at HFS Research and lead for the initiative, “Enterprises are not lacking in data, they’re lacking in usable, connected intelligence. With the Data Intelligence Suite, we are bringing together our proprietary datasets in a way that allows leaders to move beyond isolated insights and see the full picture. This is about enabling faster, more confident decision-making based on what is actually happening in the market.”

The launch of the Data Intelligence Suite reflects a broader evolution in the HFS model—from delivering research and analysis to providing structured, interactive intelligence that can be directly applied to enterprise decisions.

“The analyst model is being overtaken by a simple reality: if your insights aren’t grounded in real data, they won’t survive AI scrutiny,” said Phil Fersht, CEO and Chief Analyst at HFS Research. “This is our move to put proprietary intelligence at the core of how HFS delivers value. The future isn’t more reports, it’s decision-grade intelligence leaders can actually act on.”

Saurabh Gupta, President at HFS Research, added, “The traditional analyst business model is under pressure. Seventy to eighty percent of what analysts produce can now be found through AI tools. The Data Intelligence Suite represents the other twenty percent: proprietary, structured, verified data that enterprises cannot get anywhere else.”

The HFS Data Intelligence Suite will formally launch on May 5, 2026, with demonstrations and previews already being offered to select enterprise leaders and early access provided to a subset of clients. The suite will be available to subscribers, with premium tiers and advisory add-ons for deeper engagement.

About HFS Research
HFS Research is a leading global research and advisory firm helping Fortune 500 companies navigate IT and business transformation. With a focus on bold insights and practical strategies, HFS empowers enterprises to make confident decisions through deep research, demand-side data, and direct engagement with industry leaders. For more information, visit www.hfsresearch.com.

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SOURCE HFS Research

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ContractorHUB Announces Strategic Investment from Webrunner Media to Deliver End-to-End Growth Infrastructure for Contractors

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April 28, 2026

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Strategic partnership aligns marketing and operations to help contractors attract, convert, and operate more effectively, supported by strategic investment from Webrunner Media.

NASHVILLE, Tenn., April 28, 2026 /PRNewswire/ — ContractorHUB, an AI-native operating system built to help contracting businesses scale, announced a strategic partnership with Webrunner Media, a leading full-stack marketing agency for contracting businesses. The partnership will improve access to quality growth solutions for contractors by connecting expertise in customer acquisition to advanced business operations technology.

As part of the partnership, Webrunner Media‘s founding team has also made a strategic investment in ContractorHUB, reinforcing a shared commitment to building long-term infrastructure that supports sustainable growth for contractors.

Together, the companies aim to create a new category of end-to-end growth infrastructure for contractors—an integrated foundation that helps contractors not only generate stronger demand, but effectively convert that demand into revenue while improving profitability.

Delivering a Better Growth Solution for Contractors

Contractors today often rely on disconnected tools and service providers to manage different parts of their business. Marketing platforms generate leads, while operational systems manage execution, creating gaps between demand generation, delivery and attribution.

This fragmentation can lead to inefficiencies, missed opportunities, and the inability to truly measure performance. The partnership between ContractorHUB and Webrunner Media is built to close that gap.

By aligning Webrunner’s performance-driven marketing expertise with ContractorHUB’s intelligent operational platform, contractors gain a more integrated approach to growth.

“Contractors don’t just need more leads, they need a complete system to turn demand into growth,” said Sarah Parks, Co-Founder & CEO of ContractorHUB. “This partnership allows us to better connect marketing and operations for our customers, while also bringing Webrunner’s expertise directly into our product strategy, so we can build smarter, more impactful tools for contractors.”

Setting a New Standard for the Contracting Industry

The collaboration between ContractorHUB and Webrunner Media represents a shift in the home services technology landscape toward more connected, ecosystem-driven solutions.

By combining marketing execution with operational infrastructure, the partnership enables:

improved visibility across the customer lifecyclestreamlined access to customer acquisition solutionsmore efficient conversion of leads into revenuedirect input from a leading contractor marketing firm into ContractorHUB’s product strategy

This integrated approach provides contractors with stronger tools while reducing friction across their workflows.

Matt Parks, ContractorHUB Founder and Chief Product and Innovation Officer said, “Not only does this alignment solve fragmentation problems for customers, but it breeds innovative new solutions as we collaborate with Webrunner to drive product advances, too. It’s rare to have experts in both operational excellence and customer acquisition at the same product development table, and we’re excited to put that expertise to work for our customers.”

Strategic Investment Signals Continued Momentum

Webrunner Media’s investment follows ContractorHUB’s latest round of funding, which included an earlier operator-led investment from contracting business owners actively using the platform, as part of a rolling close.

“We work closely with contractors across North America and see firsthand where technology falls short,” said Marc Levesque, Co-Founder and CEO of Webrunner Media. “What stood out about ContractorHUB was how clearly Matt and Sarah understand those challenges, and how effectively the product is already solving them in the field. That gave us immediate confidence in both the solution and the team, and we’re excited to support what we believe is a meaningful step forward for the industry.”

This combination of operator investment by customers and ecosystem investment from an industry partner reflects a deliberate approach to building alongside the end user and key service providers in contracting.

Building a Foundation for Long-Term Growth

ContractorHUB believes the future of the industry will be defined by platforms that unify how contractors operate their businesses.

The company expects its partnership with Webrunner Media to serve as a foundation for deeper collaboration across marketing, operations, and performance management, while continuing to expand its strategic partnerships across the contracting and home service ecosystem.

About ContractorHUB

ContractorHUB was built from firsthand experience to help small businesses run smarter, more human-centered organizations that give people back their most valuable asset—time. It is an AI-native software platform that enables home service businesses to scale with confidence by centralizing everything they need in one place.

About Webrunner Media

Webrunner Media is a full-service digital marketing agency helping contractors scale with confidence. Specializing in SEO, PPC, Web Design, and Marketing Automation, Webrunner delivers the strategy and execution contractors need to grow — and has become the trusted marketing partner for 100+ contractors pursuing long-term, sustainable growth.

Media Contact:

Sarah Parks
Co-Founder, CEO
sjp@contractorhub.app

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SOURCE ContractorHUB

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Brooklyn Steel Co. Expands into Home Electrics with Launch of All-in-One Espresso Machine

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2 hours ago

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April 28, 2026

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NEW YORK, Apr. 28, 2026 /PRNewswire/ — Responding to the growing demand for elevated, café-quality experiences within the home, Brooklyn Steel Co. is expanding its presence in home electrics with today’s launch of its first at-home espresso machine. This introduction marks a new chapter for the brand, moving beyond cookware and kitchen essentials to offer thoughtfully designed home coffee solutions.

Combines professional-grade features with accessible pricing, alongside the launch of a newly redesigned website

In tandem with the product launch, Brooklyn Steel Co. has also unveiled a newly redesigned website, created to reflect the brand’s expanded focus on at-home coffee and provide a more immersive, streamlined shopping experience. To explore the new espresso machine and complementary accessories, visit www.brooklynsteelco.com.

“This launch marks a new chapter for Brooklyn Steel Co. as we expand into home coffee,” said Allison Picard, Product Development Manager at Core Home. “We designed this machine to deliver consistent, café-style performance at home in a way that is straightforward and easy to use.”

Redefining the At-Home Coffee Experience

The Brooklyn Steel Co. Talos 20 is designed to transform daily coffee rituals, making them more intentional, personal, and accessible. Built for both beginners and aspiring home baristas, the machine combines precision engineering with an intuitive, all-in-one design, eliminating the need for multiple devices.

Positioned to compete with higher-end machines at a more accessible price point, the Talos 20 espresso machine delivers a balance of performance, design, and value, allowing customers to build a complete at-home café experience complemented by a growing collection of accessories.

Precision Engineering for Professional Results

The Talos 20 sets itself apart by integrating professional-grade performance into a streamlined design. 

Key Features at a Glance

Integrated Conical Burr Grinder (27 settings) for precise, fresh grindingProgrammable Grind, Extraction & Temperature to save your preferred settings and deliver consistent espresso automatically with every use20-Bar Italian Pump for rich, café-quality espressoPID Temperature Control + Dual Thermoblock System for consistent heat and faster transitions360° Steam Wand for microfoam milk and latte artReal-Time Pressure Gauge for dialing in espresso extraction

Together, these features create a streamlined system that supports consistent espresso extraction, stable temperature control, and precise milk texturing—all within a single, integrated machine.

Unlike many entry-level options, the Talos 20 includes a commercial-size 58mm portafilter and a full suite of barista tools—including a bean hopper, hopper extender, milk pitcher, dosing ring, tamper, tamping mat, single and double filter baskets, and cleaning tools—providing a complete setup out of the box and bridging the gap between accessibility and professional performance.

The Brooklyn Steel Co. Talos 20 is available for purchase directly through the company’s website and on Amazon, retailing for $499 with free shipping. For more information, visit www.brooklynsteelco.com.

Brooklyn Steel Co. is a New York-based brand known for thoughtfully designed cookware and kitchen essentials. With a focus on elevating everyday rituals, the brand creates products that bring intention and style into daily routines.

With its first espresso machine and newly launched website experience, Brooklyn Steel Co. brings its focus on design and performance into the at-home coffee category, offering customers a more seamless and elevated way to shop and brew.

Brooklyn Steel Co. is part of Core Home, a global housewares company known for developing innovative products across kitchen, hydration, and home categories. Learn more at www.brooklynsteelco.com.

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SOURCE Core Home

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