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IMAX Q4 Earnings Meet, Rise Y/Y on Solid Box-Office Revenues
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IMAX Corporation's (IMAX - Free Report) fourth quarter of 2017 earnings per share (excluding 26 cents from non-recurring items) of 34 cents came in line with the Zacks Consensus Estimate. Moreover, the bottom line improved 54.6% year over year, on the back of higher revenues.
Total revenues of $125.6 million were better than expected in the quarter and up 17.4% year over year. The metric was positively impacted by robust box-office revenues. The top line also surpassed the Zacks Consensus Estimate of $118.8 million.
A strong top line and the year-over-year rise in earnings as well as revenues seem to have pleased investors. As a result, the stock inched up 1.9% in after-hours trading on Feb 27.
Adjusted EBITDA margin excluding Marvel’s Inhumans impact in the quarter under review was 37.4%. While global box office revenues at IMAX increased 13% to $278 million.
Category-wise, Equipment and product revenues were $39.7 million, down 3.9% from the year-ago figure. Services revenues totaled $62.33 million, up 41.6%. Rentals revenues totaled $21.14 million, up 12.6%. Finance income revenues were $2.38 million, down 5%.
Imax Corporation Price, Consensus and EPS Surprise
IMAX Theater Business generated revenues of $55.53 million, up 4.7% year over year. Within this segment, IMAX system sales and sales-type leases were $31.68 million, up 2.2%. Ongoing fees and finance income was $2.65 million, up 3.9%. Joint revenue sharing arrangements-fixed fees were $5.58 million, down 6.5%. Theatre system maintenance was $11.92 million, up 14.7% while Other Theatre revenues climbed 19.2% to $3.7 million.
Network Business logged revenues of $53.78 million, up 13% year over year. Within this space, IMAX DMR was $31.72 million, up 14.8%. Joint revenue sharing arrangements-contingent rent was $20.74 million, reflecting an increase of 12.1% while IMAX systems-contingent rent deteriorated 10.2% to $1.3 million.
Other segments grossed revenues of $3.24 million, down 48.3% year over year. Within this segment, Film distribution and post-production plunged a massive 58.5% year over year to $1.8 million while Other revenues tumbled 25.2% to $1.4 million.
Liquidity
The company exited the year with cash and cash equivalents of $158.73 million compared with $204.76 million at the end of 2016.
Network Growth Statistics
The company installed 170 theaters (including 5 upgrades) at the end of 2017 compared with 182 (including 16 upgrades) at the end of 2016. It signed 177 theatre agreements in the year, down a significant 44.5% on a year-over-year basis. As of Dec 31, 2017, the total theater count in backlog was 499 compared with 498 a year ago.
Shares of Churchill Downs, Michael Kors and The Walt Disney have gained more than 33%, 50% and 2%, respectively, in the last six months.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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IMAX Q4 Earnings Meet, Rise Y/Y on Solid Box-Office Revenues
IMAX Corporation's (IMAX - Free Report) fourth quarter of 2017 earnings per share (excluding 26 cents from non-recurring items) of 34 cents came in line with the Zacks Consensus Estimate. Moreover, the bottom line improved 54.6% year over year, on the back of higher revenues.
Total revenues of $125.6 million were better than expected in the quarter and up 17.4% year over year. The metric was positively impacted by robust box-office revenues. The top line also surpassed the Zacks Consensus Estimate of $118.8 million.
A strong top line and the year-over-year rise in earnings as well as revenues seem to have pleased investors. As a result, the stock inched up 1.9% in after-hours trading on Feb 27.
Adjusted EBITDA margin excluding Marvel’s Inhumans impact in the quarter under review was 37.4%. While global box office revenues at IMAX increased 13% to $278 million.
Category-wise, Equipment and product revenues were $39.7 million, down 3.9% from the year-ago figure. Services revenues totaled $62.33 million, up 41.6%. Rentals revenues totaled $21.14 million, up 12.6%. Finance income revenues were $2.38 million, down 5%.
Imax Corporation Price, Consensus and EPS Surprise
Imax Corporation Price, Consensus and EPS Surprise | Imax Corporation Quote
Segmental Results
IMAX Theater Business generated revenues of $55.53 million, up 4.7% year over year. Within this segment, IMAX system sales and sales-type leases were $31.68 million, up 2.2%. Ongoing fees and finance income was $2.65 million, up 3.9%. Joint revenue sharing arrangements-fixed fees were $5.58 million, down 6.5%. Theatre system maintenance was $11.92 million, up 14.7% while Other Theatre revenues climbed 19.2% to $3.7 million.
Network Business logged revenues of $53.78 million, up 13% year over year. Within this space, IMAX DMR was $31.72 million, up 14.8%. Joint revenue sharing arrangements-contingent rent was $20.74 million, reflecting an increase of 12.1% while IMAX systems-contingent rent deteriorated 10.2% to $1.3 million.
Other segments grossed revenues of $3.24 million, down 48.3% year over year. Within this segment, Film distribution and post-production plunged a massive 58.5% year over year to $1.8 million while Other revenues tumbled 25.2% to $1.4 million.
Liquidity
The company exited the year with cash and cash equivalents of $158.73 million compared with $204.76 million at the end of 2016.
Network Growth Statistics
The company installed 170 theaters (including 5 upgrades) at the end of 2017 compared with 182 (including 16 upgrades) at the end of 2016. It signed 177 theatre agreements in the year, down a significant 44.5% on a year-over-year basis. As of Dec 31, 2017, the total theater count in backlog was 499 compared with 498 a year ago.
Zacks Rank & Key Picks
IMAX carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader Consumer Discretionary sector are Churchill Downs, Incorporated (CHDN - Free Report) , Michael Kors Holdings Limited and The Walt Disney Company (DIS - Free Report) . While Churchill Downs and The Walt Disney sport a Zacks Rank #1 (Strong Buy), Michael Kors carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Churchill Downs, Michael Kors and The Walt Disney have gained more than 33%, 50% and 2%, respectively, in the last six months.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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