IMAX Corporation (NYSE: IMAX) today reported financial results for the second quarter of 2024, demonstrating the value of its unique global entertainment platform and broad content portfolio.

“With the strikes — and the lingering effects of the pandemic — firmly behind us, we are in an excellent position to fully realize the benefits of our strong, asset-lite business model,” said Rich Gelfond, CEO of IMAX. “The second quarter offered strong evidence that we are at in inflection point in our business; we are on a tear with system sales activity, our system installations are up significantly, and the slate through 2026 is as strong as we’ve ever seen.”

“Several signs across our financial and operating performance in the second quarter underscore our building momentum — we beat consensus across most metrics, generated strong cash flow, delivered our most quarterly signings for IMAX systems in six years, and expect to install a higher number of IMAX systems in 2024 over the year prior.”

“We continue to grow our unique global network across key regions including India, the Middle East, and Southeast Asia, while fortifying our most important exhibition partnerships — including our deal with China’s Wanda Film, our biggest exhibition agreement in five years.”

“Our ongoing strategic network expansion will enable IMAX to fully capitalize on the tremendous film slate over the next several years — featuring new releases from some of our most successful filmmaking partners and studio franchises, as well as a record of at least 14 films shot with IMAX cameras in 2025.”

Content Solutions Segment
Content Solutions revenues of $35 million increased 12% year-over-year. The sale of the commercial and streaming rights of “The Blue Angels” documentary more than offset the Hollywood strike impacted lower IMAX gross box office in Q2 2024 of $196 million compared to $268 million in Q2 2023.

Gross margin for Content Solutions was $16 million and decreased 19% compared to the second quarter of the prior year period driven by the lower box office and the mix of revenues.

Technology Products and Services Segment
Technology Products and Services revenues and gross margin decreased 20% year-over-year to $51 million and 29% year-over-year to $26 million, respectively, which reflects the lower box office tied rental revenues as well as fewer sale/hybrid installations and a lower contribution from amendments and renewals.

During the second quarter the Company installed 24 systems compared to 20 systems in the second quarter of 2023. Of those, 10 systems were under sales and hybrid JRSA arrangements, compared to 13 systems in the prior year.

Commercial network growth accelerated with the number of IMAX locations increasing 4% year-over-year to 1,705. The Company ended Q2 2024 with a backlog of 504 IMAX systems.

Operating Cash Flow and Liquidity
Net cash provided by operating activities for the first half of 2024 was $24 million compared to $26 million in the prior year period. Second quarter 2024 net cash provided by operating activities was $35 million compared to $5 million in the prior year period with the increase reflecting timing of collections and improvements in working capital.

As of June 30, 2024, the Company’s available liquidity was $392 million. The Company’s liquidity includes cash and cash equivalents of $92 million, $246 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 $287 million as of June 30, 2024.

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 in the second quarter of 2024 were 52.6 million and 53.4 million, respectively, compared to 54.6 million and 55.3 million in the second quarter of 2023, a decrease of 3.6% and 3.4%, respectively.

During the first half of 2024 the Company repurchased 1,166,370 common shares at an average price of $13.99 for a total of $16 million, excluding commissions

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 $151 million remains available.

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.

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 March 31, 2024, there were 1,772 IMAX systems (1,697 commercial multiplexes, 12 commercial destinations, 63 institutional) operating in 89 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 LIVE™, and 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 may also connect with IMAX on Instagram (www.instagram.com/imax), Facebook (www.facebook.com/imax), LinkedIn (www.linkedin.com/company/imax), X (www.twitter.com/imax), and YouTube (www.youtube.com/imaxmovies).