IMAX Corporation (NYSE: IMAX) today reported strong top and bottom-line financial results for the first quarter of 2023, demonstrating the value of its unique global entertainment technology platform and content portfolio.
“IMAX is off to an extremely strong start in 2023, with extraordinary growth in system sales and global box office soaring to an all-time record in the first quarter,” said Richard L. Gelfond, Chief Executive Officer of IMAX. “IMAX has already struck more deals for new and upgraded systems around the world in 2023 than it did in all of 2022, setting the stage for accelerating network expansion. With a very strong summer slate, robust sales activity, and our busiest period of the year for installations ahead, we believe we have a substantial opportunity to drive further growth in our business and results for our shareholders this year and beyond.”
“What’s clear in our results is that IMAX is more global than ever. Many of our signings came in high-value, strong box office international markets where we see significant potential to grow our footprint and drive revenue. Furthermore, nearly a third of our record-breaking global box office in the quarter came from non-Hollywood films — a strong validation of our strategy to diversify our content portfolio and become a leading platform for local language blockbusters around the world.”
“We remain confident we will drive significant growth in 2023 across global box office, system signings, installations, and adjusted EBITDA. And the rapid acceleration of sales activity is a very positive indicator for long-term growth across our global network, box office, and financial results.”
Content Solutions Segment
Content Solutions revenues of $32.1 million increased 53% year-over-year. Gross box office from IMAX locations in Q1 2023 of $273.4 million, which was up 58% from Q1 2022. Key contributors to first quarter box office performance included:
Technology Products and Services Segment
Technology Products and Services revenues and gross margin increased 36% to $51.7 million and 63% to $29.9 million, respectively, which reflects growth in box office tied rental revenues as well as a higher number of sale/hybrid installs and renewals.
During the first quarter the Company installed 9 systems compared to 14 systems in the first quarter of 2022. Of those, 8 systems were under sales, sales-type lease and hybrid JRSA arrangements compared to 7 systems in the prior year.
Operating Cash Flow and Liquidity
Net cash provided by operating activities was $21.2 million for the first quarter of 2023 compared to net cash used of ($3.8) million in the prior year period.
As of March 31, 2023, the Company’s available liquidity was $423 million, including cash and cash equivalents of $99 million, $280 million in available borrowing capacity under the Credit Facility and $44 million in available borrowing capacity under IMAX China’s revolving facilities. Total debt, excluding deferred financing costs was $266 million as of March 31, 2023.
Share Count and Capital Return
The weighted average basic and diluted shares outstanding in the first quarter of 2023 were 54.0 million and 55.0 million, respectively, compared to 58.6 million in the first quarter of 2022.
During the first quarter of 2023, the Company repurchased 0.1 million common shares at an average price of $14.87 per share, for a total of $1.6 million.
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.
As of March 31, 2023, a total of $192 million remains available under the Company’s outstanding share repurchase authorization.
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.
For the full report, see here.
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, and, as such, IMAX’s network is among the most important and successful theatrical distribution platforms for major event films around the globe.
IMAX is headquartered in New York, Toronto, and Los Angeles, with additional offices in London, Dublin, Tokyo, and Shanghai. As of March 31, 2023, there were 1,711 IMAX systems (1,631 commercial multiplexes, 12 commercial destinations, 68 institutional) operating in 87 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 IMAXTM, IMAX LiveTM, IMAX Enhanced, and SSIMWAVE 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.