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

“IMAX continues to set the table for a new, sustained era of growth with a 2025 and 2026 slate that is as promising as we’ve ever seen,” said Rich Gelfond, CEO of IMAX. “With an exceptional content pipeline, accelerating system installations, and robust sales activity worldwide, we are very well-positioned to execute and capitalize on the opportunity ahead over the next several years.”

“As we look forward, we expect 2025 to be our best year ever at the global box office, with more than $1.2 billion in IMAX grosses worldwide. Our slate next year is highlighted by at least 14 Filmed for IMAX releases worldwide shot with our cameras, for our screens — a historical indicator of higher indexing for our platform and further proof that filmmakers and audiences prefer the awe-inspiring IMAX Experience.”

“Demand for the IMAX platform is strong among our global exhibition partners. We installed nearly 50 new and upgraded systems worldwide in the third quarter — one of our best third quarters for installs ever — and continue to strike agreements in key growth markets, including Australia, France, Japan, and Saudi Arabia.”

“Our third quarter performance further demonstrates our ability to deliver results in any environment, reflecting our flexible, asset-lite business model and diversified content portfolio. With a strong slate ahead, we look forward to fully capitalizing on our model, our strong brand and technology, and our unique global scale to deliver for our shareholders.”

Diluted Net Income Per Share
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.

Content Solutions Segment

• Content Solutions revenues of $30 million decreased 32% year-over-year driven by the mix of content, which included “Oppenheimer” — the Company’s fifth highest grossing title of all time — in the year prior. Despite the decline, the third quarter 2024 was the third highest grossing third quarter in IMAX history
• Gross margin for Content Solutions of $16 million decreased 38% compared to the third quarter of the prior year period.

Technology Products and Services Segment

• Technology Products and Services revenues and gross margin increased 3% year-over-year to $58 million and decreased 5% year-over-year to $32 million, respectively, driven by system installation growth that is outpacing the prior year and offset the lower box office related rental revenue.
• During the third quarter the Company installed 49 systems compared to 30 systems in the third quarter of 2023, an increase of 63% year-over-year. Of those, 20 systems were under sales arrangements, compared to 16 systems in the prior year.
• Commercial network growth continues with the number of IMAX locations increasing 4% year-over-year to 1,714 systems. The Company ended Q3 2024 with a backlog of 472 IMAX systems.

Operating Cash Flow and Liquidity
Net cash provided by operating activities for year-to-date September 2024 was $59 million compared to $55 million in the prior year period. Third quarter 2024 net cash provided by operating activities was $35 million compared to $29 million in the prior year period with the increase reflecting improvements in working capital.

As of September 30, 2024, the Company’s available liquidity was $413 million. The Company’s liquidity includes cash and cash equivalents of $105 million, $253 million in available borrowing capacity under the Credit Facility, and $56 million in available borrowing capacity under IMAX China’s revolving facilities. Total debt, excluding deferred financing costs, was $280 million as of September 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 third quarter of 2024 were 52.7 million and 54.1 million, respectively, compared to 54.6 million and 55.5 million in the third quarter of 2023, a decrease of 3.5% and 2.6%, respectively.

For the nine months ended September 30, 2024, the Company repurchased 1,166,370 common shares at an average price of $13.99 for a total of $16 million, excluding commissions.

The Company is authorized under its share-repurchase program, expiring June 30, 2026 to repurchase up to $400 million of its common shares, of which approximately $151 million remains available.

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 September 30, 2024, there were 1,788 IMAX systems (1,714 commercial multiplexes, 12 commercial destinations, 62 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 LIVETM, IMAX Enhanced, IMAX StreamSmartTM, and SSIMWAVE 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).