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IMAX's Q2 Earnings Rise Y/Y, Box Office Growth Aids Revenues
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IMAX Corporation (IMAX - Free Report) reported adjusted earnings of 7 cents per share for second-quarter 2022. The Zacks Consensus Estimate was pegged at earnings of 2 cents per share. The figure improved from a loss of 12 cents per share in the year-ago quarter.
Total revenues of $73.9 million missed the Zacks Consensus Estimate by 1.3%. The figure however surged 45.2% from the year-ago quarter’s levels.
Category-wise, Image Enhancement & Maintenance Services and technology rentals were up 81.9% and 127.9% year over year to $44.9 million and $18.5 million, respectively. Technology sales and financial income generated revenues of $8.2 million and $2.2 million, down 45.8% and 23.3% from the year-ago quarter’s levels, respectively.
IMAX Corporation Price, Consensus and EPS Surprise
IMAX Technology Network revenues increased 134% year over year to $46.1 million in the second quarter of 2022. The upside was driven by the strength of blockbuster titles, such as Doctor Strange in the Multiverse of Madness, Top Gun: Maverick and Jurassic World Dominion.
Within the segment, IMAX DMR revenues increased 133.9% year over year to $27.5 million. The joint revenue-sharing arrangements contingent rent increased 135.6% to $18.5 million.
IMAX Technology Sales & Maintenance
IMAX Technology Sales and Maintenance revenues decreased 15% year over year to $24.3 million in the second quarter of 2022. The decrease in revenues was due to seven fewer installations, including upgrades, compared to second-quarter 2021, partially offset by increased maintenance revenues.
Within this segment, IMAX systems revenues decreased 48.5% from the year-ago quarter’s levels to $8.2 million. IMAX maintenance revenues increased 30.7% year over year to $14.6 million owing to the continued reopening of the IMAX network.
Joint revenue sharing arrangements-fixed fees were 498K, down 50.3% year over year. Other theater revenues were 920K in the reported quarter.
Film Distribution & Post-Production
Film distribution and post-production generated revenues of $1.96 million, up 23.5% year over year.
Network Growth Statistics
As of Jun 30, 2022, there were 1,694 IMAX Theater Systems in 87 countries and territories, including 1,610 commercial multiplexes, 12 commercial destinations, and 72 institutional locations in the company's global theater network. This compares to 1,654 IMAX Theater Systems in 85 countries and territories as of Jun 30, 2021, including 1,569 commercial multiplexes, 12 commercial destinations, and 73 institutional locations in the company's global theater network.
As of Jun 30, 2022, the company signed traditional and hybrid joint revenue sharing arrangements with 44 exhibitors for a total of 1,245 IMAX Theater Systems, of which 923 theaters were operational and included in the network as of that date.
As of Jun 30, 2022, the company had 923 theaters under joint revenue-sharing arrangements in its global commercial multiplex theater network, a 3% increase from 897 theaters as of Jun 30, 2021. The company also had contracts in the backlog for 322 theaters under joint revenue-sharing arrangements as of Jun 30, 2022, including 101 upgrades to existing theater locations and 221 new theater locations.
As of Jun 30, 2022, the company had 788 theaters operating in Greater China, with an additional 208 theaters in the backlog. The company’s backlog in Greater China represents 42% of its total current backlog, including upgrades in system type.
As of Jun 30, 2022, the company’s backlog included 381 new IMAX with Laser systems and 111 upgrades to IMAX with Laser systems.
Operating Details
Gross margin expanded from 50.2% in the year-ago quarter to 59.5% in second-quarter 2022.
Adjusted EBITDA per credit facility was $25.4 million compared with $8.7 million in the year-ago period.
Selling, general & administrative (SG&A) expenses increased 28.8% year over year to $37.09 million.
Research & development (R&D) expenses decreased 38.4% on a year-over-year basis to $1.35 million.
Operating loss reached 101K from the year-earlier quarter’s operating loss of $2.9 million.
Balance Sheet & Cash Flow
As of Jun 30, 2022, the company had $110.1 million in cash and cash equivalents compared with $162.3 million as of Mar 31, 2022. As of Jun 30, 2022, total debt, excluding deferred financing fees, was $224.37 compared with $233.6 million as of Mar 31, 2022.
Cash flow used in operating activities was $5.29 million compared with $3.78 million provided in the prior quarter.
Negative free cash flow was $8.9 million compared with a negative free cash flow of $14.38 million in the prior quarter.
Zacks Rank & Stocks to Consider
IMAX currently has a Zacks Rank #5 (Strong Sell).
IMAX shares are down 2.4% in the year-to-date period, outperforming the Zacks Consumer Discretionary sector’s decline of 37.07%.
Image: Bigstock
IMAX's Q2 Earnings Rise Y/Y, Box Office Growth Aids Revenues
IMAX Corporation (IMAX - Free Report) reported adjusted earnings of 7 cents per share for second-quarter 2022. The Zacks Consensus Estimate was pegged at earnings of 2 cents per share. The figure improved from a loss of 12 cents per share in the year-ago quarter.
Total revenues of $73.9 million missed the Zacks Consensus Estimate by 1.3%. The figure however surged 45.2% from the year-ago quarter’s levels.
Category-wise, Image Enhancement & Maintenance Services and technology rentals were up 81.9% and 127.9% year over year to $44.9 million and $18.5 million, respectively. Technology sales and financial income generated revenues of $8.2 million and $2.2 million, down 45.8% and 23.3% from the year-ago quarter’s levels, respectively.
IMAX Corporation Price, Consensus and EPS Surprise
IMAX Corporation price-consensus-eps-surprise-chart | IMAX Corporation Quote
Segment Details
IMAX Technology Network Business
IMAX Technology Network revenues increased 134% year over year to $46.1 million in the second quarter of 2022. The upside was driven by the strength of blockbuster titles, such as Doctor Strange in the Multiverse of Madness, Top Gun: Maverick and Jurassic World Dominion.
Within the segment, IMAX DMR revenues increased 133.9% year over year to $27.5 million. The joint revenue-sharing arrangements contingent rent increased 135.6% to $18.5 million.
IMAX Technology Sales & Maintenance
IMAX Technology Sales and Maintenance revenues decreased 15% year over year to $24.3 million in the second quarter of 2022. The decrease in revenues was due to seven fewer installations, including upgrades, compared to second-quarter 2021, partially offset by increased maintenance revenues.
Within this segment, IMAX systems revenues decreased 48.5% from the year-ago quarter’s levels to $8.2 million. IMAX maintenance revenues increased 30.7% year over year to $14.6 million owing to the continued reopening of the IMAX network.
Joint revenue sharing arrangements-fixed fees were 498K, down 50.3% year over year. Other theater revenues were 920K in the reported quarter.
Film Distribution & Post-Production
Film distribution and post-production generated revenues of $1.96 million, up 23.5% year over year.
Network Growth Statistics
As of Jun 30, 2022, there were 1,694 IMAX Theater Systems in 87 countries and territories, including 1,610 commercial multiplexes, 12 commercial destinations, and 72 institutional locations in the company's global theater network. This compares to 1,654 IMAX Theater Systems in 85 countries and territories as of Jun 30, 2021, including 1,569 commercial multiplexes, 12 commercial destinations, and 73 institutional locations in the company's global theater network.
As of Jun 30, 2022, the company signed traditional and hybrid joint revenue sharing arrangements with 44 exhibitors for a total of 1,245 IMAX Theater Systems, of which 923 theaters were operational and included in the network as of that date.
As of Jun 30, 2022, the company had 923 theaters under joint revenue-sharing arrangements in its global commercial multiplex theater network, a 3% increase from 897 theaters as of Jun 30, 2021. The company also had contracts in the backlog for 322 theaters under joint revenue-sharing arrangements as of Jun 30, 2022, including 101 upgrades to existing theater locations and 221 new theater locations.
As of Jun 30, 2022, the company had 788 theaters operating in Greater China, with an additional 208 theaters in the backlog. The company’s backlog in Greater China represents 42% of its total current backlog, including upgrades in system type.
As of Jun 30, 2022, the company’s backlog included 381 new IMAX with Laser systems and 111 upgrades to IMAX with Laser systems.
Operating Details
Gross margin expanded from 50.2% in the year-ago quarter to 59.5% in second-quarter 2022.
Adjusted EBITDA per credit facility was $25.4 million compared with $8.7 million in the year-ago period.
Selling, general & administrative (SG&A) expenses increased 28.8% year over year to $37.09 million.
Research & development (R&D) expenses decreased 38.4% on a year-over-year basis to $1.35 million.
Operating loss reached 101K from the year-earlier quarter’s operating loss of $2.9 million.
Balance Sheet & Cash Flow
As of Jun 30, 2022, the company had $110.1 million in cash and cash equivalents compared with $162.3 million as of Mar 31, 2022. As of Jun 30, 2022, total debt, excluding deferred financing fees, was $224.37 compared with $233.6 million as of Mar 31, 2022.
Cash flow used in operating activities was $5.29 million compared with $3.78 million provided in the prior quarter.
Negative free cash flow was $8.9 million compared with a negative free cash flow of $14.38 million in the prior quarter.
Zacks Rank & Stocks to Consider
IMAX currently has a Zacks Rank #5 (Strong Sell).
IMAX shares are down 2.4% in the year-to-date period, outperforming the Zacks Consumer Discretionary sector’s decline of 37.07%.
Some better-ranked stocks in the Consumer Discretionary sector include Sinclair Broadcast Group (SBGI - Free Report) , Nexstar Media Group (NXST - Free Report) and Gray Television (GTN - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Sinclair Broadcast, Nexstar Media Group and Gray Television are scheduled to report their quarterly results on Aug 3, Aug 4, and Aug 5, respectively.
The Zacks Consensus Estimate for Sinclair Broadcast Group’s second-quarter 2022 loss is pegged at $3.35 per share, unchanged over the past 30 days.
The Zacks Consensus Estimate for Nexstar Media Group’s second-quarter 2022 earnings is pegged at $5.46 per share, unchanged over the past 30 days.
The consensus mark for Gray Television’s second-quarter 2022 earnings is pegged at 97 cents per share, unchanged in the past 30 days.