- Achieved record adjusted profit of $46 million, a 22% increase compared to 2016.
- Announced the Board of Directors’ recommendation to pay a final dividend for year 2017 of roughly $14 million, or $0.04 per share.
- Gross and adjusted profit margins up 270 basis points and 460 basis points, respectively, compared to prior year.
- Generated operating cash flow of $35 million and free cash flow of $11 million.
- Installed a record 120 new theatre systems in 2017 and signed agreements for an additional 95 systems.
- Reported Chinese New Year box office of ¥170 million over seven-day holiday period, a 74% increase compared to the prior year’s holiday.
IMAX China Holding, Inc. (“IMAX China”) (HKG: 1970) today reported full-year 2017 Greater China revenue of $126.5 million and gross profit of $77.4 million, or 61.2% of revenues. Adjusted profit for the year came in at a record $45.9 million, up 22% from the prior year, driven by the installation of eight additional sales-type theatres versus 2016 and a 19% reduction in SG&A, excluding stock-based compensation, primarily as a result of the Company’s cost-reduction initiatives. For adjustments to profit for the year and a full detail of financial results, please refer to the corporate filing posted with the Hong Kong Stock Exchange, or to the earnings results posted on the Investor Relations section of the IMAX China web site (http://www.imax.cn/investor).
“Last year, we implemented initiatives aimed at refining our programming strategy to focus on capturing more local language box office, reducing costs and facilitating more operating leverage throughout our business. Record installations in 2017, combined with early positive results from our revenue and cost-savings initiatives, resulted in adjusted profit growth of 22%, to an all-time high of $46 million,” stated Richard L. Gelfond, Chairman of IMAX China. “As a result of our continued free cash flow generation, strong balance sheet and confidence in the Company’s long-term growth prospects, I am pleased to announce that our Board of Directors recommended the payment of a final dividend in the amount of $0.04 per share, equivalent to HK$0.31 per share, or roughly $14 million for the 2017 year. We think this decision is a key component to creating long-term value for shareholders. Overall, we believe our asset-light approach to the cinema business, continued signings and installation momentum, and refined programming strategy strategically position IMAX China for the years ahead.”
IMAX China Dividend
IMAX China today announced that its Board of Directors recommended the payment of a final cash dividend of $14 million or $0.04 per share. The dividend will need to be voted on by the shareholders at the Company’s annual meeting. The Company intends to consider increasing the dividend over time if and as the Company earnings grow.
There were 544 systems in the IMAX theatre network in Greater China as of Dec. 31, 2017, of which 527 were in commercial multiplexes. Currently, 340 of these theatres operate under revenue-sharing arrangements and 187 operate under sales and sales-type lease arrangements. There are also 309 theatres in backlog as of Dec. 31, 2017, of which 236 are for revenue-sharing arrangements. The Company also installed 120 new theatre systems in 2017, which is up from the 117 new installations recognized during 2016.
Box Office Update
Gross box office from IMAX DMR® titles in Greater China was $290.8 million in 2017, compared with $295.7 million in the prior-year period.
Confirmed Film Slate for 2018
To date, the Company’s parent, IMAX Corporation has announced the following 31 titles for release in 2018. While not all of these titles are guaranteed to be released in China, IMAX China has access to them in the event they secure official Chinese release dates. The Company intends to announce and exhibit additional titles upon confirmation of film release dates in China. All release dates below relate to their US release date unless otherwise noted.
- The Commuter: The IMAX Experience (Lionsgate Entertainment Inc., January 2018);
- 12 Strong: The IMAX Experience (Warner Bros. Pictures, January 2018);
- Padmaavat: The IMAX Experience (Viacom 18 Motion Pictures and Paramount Pictures, January 2018, India only);
- Maze Runner: The Death Cure: The IMAX Experience (20th Century Fox, January 2018);
- Fifty Shades Freed: The IMAX Experience (Universal Pictures, February 2018);
- Monster Hunt 2: The IMAX Experience (Edko Films, February 2018, China only);
- Detective Chinatown 2: The IMAX Experience (WanDa Pictures, February 2018, China only);
- Operation Red Sea: The IMAX Experience (Bona Film Group, February 2018, China only);
- Marvel’s Black Panther: The IMAX Experience (Walt Disney Studios, China March 2018);
- Red Sparrow: The IMAX Experience (20th Century Fox, March 2018);
- A Wrinkle in Time: The IMAX Experience (Walt Disney Studios, China March 2018);
- Tomb Raider: The IMAX Experience (Warner Bros. Pictures, China March 2018);
- Pacific Rim Uprising: The IMAX Experience (Warner Bros. Pictures, China March 2018);
- Ready Player One: The IMAX Experience (Warner Bros. Pictures, March 2018);
- Rampage: The IMAX Experience (Warner Bros. Pictures, April 2018);
- Avengers: Infinity War: The IMAX Experience (Walt Disney Studios, May 2018, most International markets – April 2018);
- Deadpool 2: The IMAX Experience (20th Century Fox, May 2018, select markets only);
- Solo: A Star Wars Story: The IMAX Experience (Walt Disney Studios, May 2018);
- The Incredibles 2: The IMAX Experience (Walt Disney Studios, June 2018);
- Jurassic World: Fallen Kingdom: The IMAX Experience (Universal Pictures, June 2018);
- Ant-Man and the Wasp: The IMAX Experience (Walt Disney Studios, June 2018, US markets – July 2018);
- Mission Impossible: Fallout: The IMAX Experience (Paramount Pictures, July 2018);
- Predator: The IMAX Experience (20th Century Fox, August 2018);
- The Darkest Minds: The IMAX Experience (20th Century Fox, September 2018);
- Robin Hood: The IMAX Experience (Lionsgate Entertainment Inc., September 2018);
- Venom: The IMAX Experience (Sony Pictures Entertainment, October 2018);
- X-Men: Dark Phoenix: The IMAX Experience (20th Century Fox, November 2018);
- Fantastic Beasts: The Crimes of Grindelwald: The IMAX Experience (Warner Bros. Pictures, November 2018);
- Ralph Breaks the Internet: Wreck-It-Ralph 2: The IMAX Experience (Walt Disney Studios, December 2018, select markets); and
- Alita: Battle Angel: An IMAX Experience (20th Century Fox, December 2018);
- Aquaman: The IMAX Experience (Warner Bros. Pictures, December 2018).
The Company will host a conference call today at 8:00 AM Hong Kong Time to discuss its full-year 2017 financial results. To access the call via telephone, interested parties in the US and Canada should dial (866) 548-4713 approximately 5 to 10 minutes before the call begins. Hong Kong callers should dial 800-961-105 and other international callers should dial (647) 484-0477. The conference ID for the call is 5789689. A replay of the call will be available via webcast at www.imax.cn/investor/l-en or via telephone by dialing (888) 203-1112 (US and Canada), or (647) 436-0148 (international). The Conference ID for the telephone replay is 5789689.
About IMAX China
IMAX China is a subsidiary of IMAX Corporation, and is incorporated under the laws of Cayman Islands. IMAX China was established by IMAX Corporation specifically to oversee the expansion of IMAX’s business throughout Greater China. IMAX China trades on the Hong Kong Stock Exchange under the stock code “HK.1970.”
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 theatres to connect with audiences in extraordinary ways, and, as such, IMAX’s network is among the most important and successful theatrical distribution platforms for major event films around the globe.
IMAX is headquartered in New York, Toronto and Los Angeles, with additional offices in London, Dublin, Tokyo, and Shanghai. As of December 31, 2017, there were 1,370 IMAX theater systems (1,272 commercial multiplexes, 12 commercial destinations, 86 institutional) operating in 75 countries. On Oct. 8, 2015, shares of IMAX China, a subsidiary of IMAX Corp., began trading on the Hong Kong Stock Exchange under the stock code “HK.1970.”
IMAX®, IMAX® 3D, IMAX DMR®, Experience It In IMAX®, An IMAX 3D Experience®, The IMAX Experience®, IMAX Is Believing® and IMAX nXos® are trademarks of IMAX Corporation. More information about the Company can be found at www.imax.com. You may also connect with IMAX on Facebook (www.facebook.com/imax), Twitter (www.twitter.com/imax) and YouTube (www.youtube.com/imaxmovies).
This press release contains forward looking statements that are based on IMAX management’s assumptions and existing information and involve certain risks and uncertainties which could cause actual results to differ materially from future results expressed or implied by such forward looking statements. Important factors that could affect these statements include, but are not limited to, references to future capital expenditures (including the amount and nature thereof), business and technology strategies and measures to implement strategies, competitive strengths, goals, expansion and growth of business, operations and technology, plans and references to the future success of IMAX Corporation together with its consolidated subsidiaries (the “Company”) and expectations regarding the Company’s future operating, financial and technological results. These forward-looking statements are based on certain assumptions and analyses made by the Company in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate in the circumstances. However, whether actual results and developments will conform with the expectations and predictions of the Company is subject to a number of risks and uncertainties, including, but not limited to, risks associated with investments and operations in foreign jurisdictions and any future international expansion, including those related to economic, political and regulatory policies of local governments and laws and policies of the United States and Canada; risks related to the Company’s growth and operations in China; the performance of IMAX DMR films; the signing of theater system agreements; conditions, changes and developments in the commercial exhibition industry; risks related to currency fluctuations; the potential impact of increased competition in the markets within which the Company operates; competitive actions by other companies; the failure to respond to change and advancements in digital technology; the Company’s largest customer accounting for a significant portion of the Company’s revenue and backlog; risks related to new business initiatives; conditions in the in-home and out-of-home entertainment industries; the opportunities (or lack thereof) that may be presented to and pursued by the Company; risks related to cyber-security; risks related to the Company’s inability to protect the Company’s intellectual property; general economic, market or business conditions; the failure to convert theater system backlog into revenue; changes in laws or regulations; the failure to fully realize the projected cost savings and benefits from the Company’s restructuring initiative; and other factors, many of which are beyond the control of 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.
For additional information please contact:
Michael Mougias, New York
Xu Han, Shanghai
Sloane & Company, New York
IMAX Corporation, New York
IMAX China, Shanghai
Principal Communications Group, Los Angeles
Melissa Zuckerman/Paul Pflug
SOURCE IMAX China Holding, Inc.