IMAX Corporation Reports Q2 2023 Results

IMAX 2023 Q2 Earnings Graphic

Global entertainment technology platform delivers strong Q2 year-over-year growth across all key metrics, including Revenue (+32%), Gross Margin (+31%) and Adjusted EBITDA (+29%)

New York ( July 27, 2023 ) -

IMAX Corporation (NYSE: IMAX) today reported strong top and bottom-line financial results for the second quarter of 2023, demonstrating the value of its unique global entertainment technology platform and content portfolio.

“IMAX continues to be a winner in a dynamic global marketplace for entertainment, as demonstrated by our strong results in the second quarter,” said Richard L. Gelfond, Chief Executive Officer of IMAX. “We again proved that IMAX can drive results in virtually any business environment thanks to our global scale, asset-lite model, and diversified revenue mix across technology licensing and Hollywood and local language global box office.”

“It is increasingly clear that the future of the movie business is IMAX, as moviegoers show growing preference for the premium IMAX Experience, our market share remains robust, and our network and content portfolio expand in the most promising international growth markets for global cinema.”

“This past weekend demonstrates the paradigm shift at hand in moviegoing, as IMAX drove strong double-digit market share with a trio of Hollywood and local releases — led by the stunning performance of ‘Oppenheimer’ — lifting the Company to one of its best weekends of all time at the global box office.”

“We remain confident we will continue to drive growth in 2023 across global box office, system signings, installations, and adjusted EBITDA. And the accelerated pace of system signings and installations we’re seeing globally this year are a very positive long-term growth indicator for our business.”

Content Solutions Segment
Content Solutions revenues of $31.3 million increased 6% year-over-year. Gross box office from IMAX locations in Q2 2023 of $268.3 million; was up 8% from Q2 2022. Key contributors to second quarter box office performance included:

  • Hollywood titles led by “Super Mario Bros.” with $50 million in IMAX GBO with strong contributions coming from “Guardians of the Galaxy Vol. 3,” “Fast X” and “Spider-Man: Across the Spider-Verse” ($30M+ IMAX GBO per title).
  • Local language titles “Born to Fly,” “The First Slam Dunk,” “Detective Conan: Black Iron Submarine,” and “Lost in the Stars” contributed on average $6.4 million in IMAX GBO locally.

Gross margin for Content Solutions was $20.0 million, at a 64% margin, an increase of 15% compared to the second quarter of the prior year period, driven by strong profit flow-through of box office and lower marketing expense reflecting the mix of films year-over-year.

Technology Products and Services Segment

  • Technology Products and Services revenues and gross margin increased 49% to $64.0 million and 42% to $36.4 million, respectively, which reflects growth in box office tied rental revenues as well as a higher number of sale/hybrid installations, as well as amendments and renewals.
  • During the second quarter the Company installed 20 systems compared to 9 systems in the second quarter of 2022. Of those, 13 systems were under sales and hybrid JRSA arrangements compared to 5 systems in the prior year.

Operating Cash Flow and Liquidity
Net cash provided by operating activities was $25.9 million for the first half of 2023 compared to net cash used of ($5.3) million in the prior year period.

As of June 30, 2023, the Company’s available liquidity was $420.0 million, including cash and cash equivalents of $95.3 million, $280.0 million in available borrowing capacity under the Credit Facility and $44.7 million in available borrowing capacity under IMAX China’s revolving facilities. Total debt, excluding deferred financing costs was $262.4 million as of June 30, 2023.

Share Count and Capital Return

The weighted average basic and diluted shares outstanding in the second quarter of 2023 were 54.6 million and 55.3 million, respectively, compared to 57.3 million in the second quarter of 2022, a decrease of 5% and 3%, respectively.

The Company repurchased 130,501 common shares at an average price of $15.20 per share, for a total of $2.0 million, excluding commission, year-to-date.

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.

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 million of its common shares, of which approximately $191.5 million remains available.

<strong>About IMAX Corporation</strong>
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. Streaming technology company SSIMWAVE, an IMAX subsidiary, is a leader in AI-driven video quality solutions for media and entertainment companies.

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 Dome, IMAX 3D, IMAX 3D Dome, Experience It In IMAX, The IMAX Experience, An IMAX Experience, An IMAX 3D Experience, IMAX DMR, DMR, Filmed For IMAX, IMAX LIVE, IMAX Enhanced, IMAX nXos, SSIMWAVE 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. For more information, visit You may also connect with IMAX on Instagram (<a href=”” rel=”noopener” target=”_blank”></a>), Facebook (, Twitter (<a href=”” rel=”noopener” target=”_blank”></a>), YouTube (<a href=”” rel=”noopener” target=”_blank”></a>) and LinkedIn (<a href=”” rel=”noopener” target=”_blank”></a>).