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IMAX Corporation (IMAX - Free Report) reported an adjusted loss of 14 cents per share in first-quarter 2022, in line with the Zacks Consensus Estimate. The figure improved from a loss of 25 cents per share in the year-ago quarter.
Total revenues of $60 million beat the Zacks Consensus Estimate by 3.4% and surged 54.9% from the year-ago quarter’s levels.
Category-wise, technology sales, Image Enhancement & Maintenance Services and technology rentals were up 45.4%, 67% and 51.5% year over year to $9 million, $36.1 million and $12.7 million, respectively. Financial income generated revenues of $2.3 million, down 11.5% from the year-ago quarter’s levels.
Segment Details
IMAX Technology Network Business
IMAX technology network business revenues amounted to $32.21 million, up from $20.3 million reported in the year-ago quarter. The upside is driven by the strong performance due to the strength of blockbuster titles, such as The Batman, Spider-Man: No Way Home and the Chinese New Year title, The Battle at Lake Changjin II.
Within the segment, IMAX DMR revenues increased from $11.94 million in the year-ago quarter to $19.56 million. The joint revenue-sharing arrangements contingent rent increased from $8.36 million in the year-ago quarter to $12.64 million.
IMAX Technology Sales & Maintenance
IMAX’s technology sales & maintenance business generated revenues of $25.22 million, up 48.5% year over year. The uptick can be attributed to the continued global reopening of the IMAX theater network and the resumption of normal operations, which led to a higher level of IMAX theater system installations.
Within this segment, IMAX systems revenues increased 46.1% from the year-ago quarter’s levels to $8.6 million. IMAX maintenance revenues increased to $14.9 million owing to the continued reopening of the IMAX network.
Joint revenue sharing arrangements-fixed fees were $1 million, down 43% year over year. Other theater revenues were $0.7 million in the reported quarter.
Film Distribution & Post-Production
Film distribution and post-production generated revenues of $1.4 million, up 48.5% year over year.
IMAX Corporation Price, Consensus and EPS Surprise
As of Mar 31, 2022, there were 1,690 IMAX Theater Systems operating in 87 countries and territories, including 1,606 commercial multiplexes, 12 commercial destinations and 72 institutional locations. This compares with 1,652 IMAX Theater Systems operating in 84 countries and territories as of Mar 31, 2021, including 1,567 commercial multiplexes, 12 commercial destinations and 73 institutional locations.
IMAX installed 14 systems and signed agreements for 7 systems in the first quarter of 2022.
As of Mar 31, 2022, the company’s backlog included 180 new IMAX with Laser systems and 104 upgrades to IMAX with Laser systems.
Operating Details
Gross margin expanded from 44.6% in the year-ago quarter to 52.9% in first-quarter 2022.
Adjusted EBITDA per credit facility was $14.8 million versus $2.8 million in the year-ago period.
Selling, general & administrative (SG&A) expenses increased 19.7% year over year to $30.2 million.
Research & development (R&D) expenses decreased 18.7% on a year-over-year basis to $1.2 million.
Operating loss reached $8 million from the year-earlier quarter’s operating loss of $10.8 million.
Balance Sheet & Cash Flow
As of Mar 31, 2022, the company had $162.3 million in cash and cash equivalents compared with $189.7 million as of Dec 31, 2021. Total debt, excluding deferred financing fees, was $233.6 million as of Mar 31, 2022, the same as the previous quarter’s levels.
Cash flow used in operating activities was $3.78 million compared with $25.65 million provided in the prior quarter.
Negative free cash flow was $14.38 million compared with a free cash flow of $18.9 million in the prior quarter.
Zacks Rank & Stocks to Consider
IMAX currently has a Zacks Rank #3 (Hold).
IMAX shares are down 16.1% in the year-to-date period, underperforming the Zacks Consumer Discretionary sector’s decline of 23.3%.
Image: Bigstock
IMAX's Q1 Earnings Meet Estimates, Revenues Increase Y/Y
IMAX Corporation (IMAX - Free Report) reported an adjusted loss of 14 cents per share in first-quarter 2022, in line with the Zacks Consensus Estimate. The figure improved from a loss of 25 cents per share in the year-ago quarter.
Total revenues of $60 million beat the Zacks Consensus Estimate by 3.4% and surged 54.9% from the year-ago quarter’s levels.
Category-wise, technology sales, Image Enhancement & Maintenance Services and technology rentals were up 45.4%, 67% and 51.5% year over year to $9 million, $36.1 million and $12.7 million, respectively. Financial income generated revenues of $2.3 million, down 11.5% from the year-ago quarter’s levels.
Segment Details
IMAX Technology Network Business
IMAX technology network business revenues amounted to $32.21 million, up from $20.3 million reported in the year-ago quarter. The upside is driven by the strong performance due to the strength of blockbuster titles, such as The Batman, Spider-Man: No Way Home and the Chinese New Year title, The Battle at Lake Changjin II.
Within the segment, IMAX DMR revenues increased from $11.94 million in the year-ago quarter to $19.56 million. The joint revenue-sharing arrangements contingent rent increased from $8.36 million in the year-ago quarter to $12.64 million.
IMAX Technology Sales & Maintenance
IMAX’s technology sales & maintenance business generated revenues of $25.22 million, up 48.5% year over year. The uptick can be attributed to the continued global reopening of the IMAX theater network and the resumption of normal operations, which led to a higher level of IMAX theater system installations.
Within this segment, IMAX systems revenues increased 46.1% from the year-ago quarter’s levels to $8.6 million. IMAX maintenance revenues increased to $14.9 million owing to the continued reopening of the IMAX network.
Joint revenue sharing arrangements-fixed fees were $1 million, down 43% year over year. Other theater revenues were $0.7 million in the reported quarter.
Film Distribution & Post-Production
Film distribution and post-production generated revenues of $1.4 million, up 48.5% year over year.
IMAX Corporation Price, Consensus and EPS Surprise
IMAX Corporation price-consensus-eps-surprise-chart | IMAX Corporation Quote
Network Growth Statistics
As of Mar 31, 2022, there were 1,690 IMAX Theater Systems operating in 87 countries and territories, including 1,606 commercial multiplexes, 12 commercial destinations and 72 institutional locations. This compares with 1,652 IMAX Theater Systems operating in 84 countries and territories as of Mar 31, 2021, including 1,567 commercial multiplexes, 12 commercial destinations and 73 institutional locations.
IMAX installed 14 systems and signed agreements for 7 systems in the first quarter of 2022.
As of Mar 31, 2022, the company’s backlog included 180 new IMAX with Laser systems and 104 upgrades to IMAX with Laser systems.
Operating Details
Gross margin expanded from 44.6% in the year-ago quarter to 52.9% in first-quarter 2022.
Adjusted EBITDA per credit facility was $14.8 million versus $2.8 million in the year-ago period.
Selling, general & administrative (SG&A) expenses increased 19.7% year over year to $30.2 million.
Research & development (R&D) expenses decreased 18.7% on a year-over-year basis to $1.2 million.
Operating loss reached $8 million from the year-earlier quarter’s operating loss of $10.8 million.
Balance Sheet & Cash Flow
As of Mar 31, 2022, the company had $162.3 million in cash and cash equivalents compared with $189.7 million as of Dec 31, 2021. Total debt, excluding deferred financing fees, was $233.6 million as of Mar 31, 2022, the same as the previous quarter’s levels.
Cash flow used in operating activities was $3.78 million compared with $25.65 million provided in the prior quarter.
Negative free cash flow was $14.38 million compared with a free cash flow of $18.9 million in the prior quarter.
Zacks Rank & Stocks to Consider
IMAX currently has a Zacks Rank #3 (Hold).
IMAX shares are down 16.1% in the year-to-date period, underperforming the Zacks Consumer Discretionary sector’s decline of 23.3%.
Some better-ranked stocks from the Zacks Consumer Discretionary sector are Funko (FNKO - Free Report) , sporting a Zacks Rank #1 (Strong Buy) and Vitru Limited and Afya (AFYA - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Funko shares have fallen 11.3% in the year -to-date period. Funko is set to announce first-quarter 2022 results on May 5.
Vitru shares have up 9.8% in the year -to-date period. Vitru Limited is set to announce first-quarter 2022 results on May 16.
Afya shares have fallen 4.2% in the year -to-date period. Afya is set to announce first-quarter 2022 results on May 23.