We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
IMAX's Q3 Loss Narrows Y/Y, Box Office Growth Aids Revenues
Read MoreHide Full Article
IMAX Corporation (IMAX - Free Report) reported an adjusted loss of 5 cents per share for third-quarter 2022. The Zacks Consensus Estimate was pegged at earnings of 3 cents per share. The figure improved from a loss of 8 cents per share in the year-ago quarter.
Total revenues of $68.7 million missed the Zacks Consensus Estimate by 2.54%. The figure however increased 21.5% from the year-ago quarter’s levels.
Revenues in the quarter were negatively impacted by $700,000 as the theaters in Russia, Ukraine and Belarus continued to be on non-accrual status. As of Sep 30, 2022, the IMAX network includes 54 theaters in Russia, nine theaters in Ukraine, and one theater in Belarus. The company's backlog includes 14 theaters in Russia, one theater in Ukraine, and five theaters in Belarus, with a total fixed contracted value of $22.9 million.
At the end of September, IMAX closed the acquisition of SSIMWAVE for $21 million in cash and IMAX shares and a potential $4 million in future earnouts.
Category-wise, Image Enhancement & Maintenance Services, technology rentals and technology sales were up 18.5%, 22.7% and 37.3% year over year to $36.2 million, $12.5 million, and $18 million, respectively. Financial income generated revenues of $1.9 million, down 27.2% from the year-ago quarter’s levels.
IMAX Corporation Price, Consensus and EPS Surprise
IMAX Technology Network revenues increased 27% year over year to $32.5 million in the third quarter of 2022.
Within the segment, IMAX DMR revenues increased 26.9% year over year to $19.9 million. Total IMAX Gross Box Office (GBO) increased 25% year over year to $177.1 million, with 30% of box office coming from local language blockbusters.
In the third quarter of 2022, GBO was generated by the exhibition of 36 films (27 new films, four carryovers, and five re-releases), including Thor: Love and Thunder, which generated GBO of $39.8 million in the period, and Top Gun: Maverick, which generated GBO of $20.4 million in the period.
Local language films released to the company's global theater network generated $53 million in GBO, representing 30% of the company's total GBO in third-quarter 2022.
In China alone, the company generated $24 million in box office on 14 screens. The company partnered with 84 Chinese exhibitors in 207 cities across 31 provinces in Mainland China.
IMAX has nearly 800 theaters open in China and another 200 in backlog. During the third quarter of 2022, approximately 82% of the IMAX theaters in Greater China were open at various capacities, on average.
The joint revenue-sharing arrangements contingent rent increased 26.8% to $12.5 million.
IMAX Technology Sales & Maintenance
IMAX Technology Sales and Maintenance revenues increased 19% year over year to $33 million in the third quarter of 2022. The increase in revenues was driven by one additional system installation, the impact of amendments to existing theater arrangements and higher revenues from aftermarket sales.
Within this segment, IMAX systems revenues increased 20.6% from the year-ago quarter’s levels to $15.9 million. IMAX maintenance revenues increased 6.8% year over year to $13.9 million.
Joint revenue-sharing arrangements-fixed fees were 998K, down 3.7% year over year. Other theater revenues were $2.1 million in the reported quarter.
Film Distribution & Post-Production
Film distribution and post-production generated revenues of $2.04 million, up 28.2% year over year.
Network Growth Statistics
As of Sep 30, 2022, there were 1,703 IMAX Theater Systems in 87 countries and territories, including 1,622 commercial multiplexes, 12 commercial destinations, and 69 institutional locations in the company's global theater network. This compares to 1,664 IMAX Theater Systems in 85 countries and territories as of Sep 30, 2021, including 1,580 commercial multiplexes, 12 commercial destinations, and 72 institutional locations in the Company's global theater network.
As of Sep 30, 2022, the company’s backlog included 157 new IMAX with Laser systems and 95 upgrades to IMAX with Laser systems.
Operating Details
Gross margin contracted 250 basis points (bps) to 46.1% in the third-quarter 2022.
Adjusted EBITDA per credit facility was $16.5 million compared with $13.1 million in the year-ago period.
Selling, general & administrative (SG&A) expenses increased 16% year over year to $32.9 million.
Research & development (R&D) expenses decreased 44.9% on a year-over-year basis to $1.11 million.
The company reported an operating income of $4.2 million compared to the year-earlier quarter’s operating loss of $853K.
Balance Sheet & Cash Flow
As of Sep 30, 2022, the company had $87.2 million in cash and cash equivalents compared with $110.1 million as of Jun 30, 2022. As of Sep 30, 2022, total debt, excluding deferred financing fees, was $237.6 compared with $224.37 million as of Jun 30, 2022.
As of Sep 30, 2022, the company's available liquidity was $437.4 million, including its balance of cash and cash equivalents of $87.2 million, $300 million in available borrowing capacity under its credit facility and $50.2 million in available borrowing capacity under IMAX China's revolving facilities.
Cash flow used in operating activities was $481K compared with $5.29 million used in the prior quarter.
Negative free cash flow was $3.9 million compared with a negative free cash flow of $8.9 million in the prior quarter.
Zacks Rank & Stocks to Consider
IMAX currently has a Zacks Rank #3 (Hold).
IMAX shares are down 28.6% in the year-to-date period, outperforming the Zacks Consumer Discretionary sector’s decline of 36.7%.
AMC Entertainment, Reservoir Media and American Public Education are each scheduled to report quarterly results on Nov 8.
The Zacks Consensus Estimate for AMC Entertainment’s third-quarter 2022 loss is pegged at 27 cents per share, down from loss of 25 cents over the past 30 days.
The Zacks Consensus Estimate for Reservoir Media’s third-quarter 2022 earnings is pegged at 5 cents per share, unchanged over the past 30 days.
The consensus mark for American Public Education’s third-quarter 2022 earnings is pegged at 25 cents per share, unchanged in the past 30 days.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
IMAX's Q3 Loss Narrows Y/Y, Box Office Growth Aids Revenues
IMAX Corporation (IMAX - Free Report) reported an adjusted loss of 5 cents per share for third-quarter 2022. The Zacks Consensus Estimate was pegged at earnings of 3 cents per share. The figure improved from a loss of 8 cents per share in the year-ago quarter.
Total revenues of $68.7 million missed the Zacks Consensus Estimate by 2.54%. The figure however increased 21.5% from the year-ago quarter’s levels.
Revenues in the quarter were negatively impacted by $700,000 as the theaters in Russia, Ukraine and Belarus continued to be on non-accrual status. As of Sep 30, 2022, the IMAX network includes 54 theaters in Russia, nine theaters in Ukraine, and one theater in Belarus. The company's backlog includes 14 theaters in Russia, one theater in Ukraine, and five theaters in Belarus, with a total fixed contracted value of $22.9 million.
At the end of September, IMAX closed the acquisition of SSIMWAVE for $21 million in cash and IMAX shares and a potential $4 million in future earnouts.
Category-wise, Image Enhancement & Maintenance Services, technology rentals and technology sales were up 18.5%, 22.7% and 37.3% year over year to $36.2 million, $12.5 million, and $18 million, respectively. Financial income generated revenues of $1.9 million, down 27.2% from the year-ago quarter’s levels.
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 27% year over year to $32.5 million in the third quarter of 2022.
Within the segment, IMAX DMR revenues increased 26.9% year over year to $19.9 million. Total IMAX Gross Box Office (GBO) increased 25% year over year to $177.1 million, with 30% of box office coming from local language blockbusters.
In the third quarter of 2022, GBO was generated by the exhibition of 36 films (27 new films, four carryovers, and five re-releases), including Thor: Love and Thunder, which generated GBO of $39.8 million in the period, and Top Gun: Maverick, which generated GBO of $20.4 million in the period.
Local language films released to the company's global theater network generated $53 million in GBO, representing 30% of the company's total GBO in third-quarter 2022.
In China alone, the company generated $24 million in box office on 14 screens. The company partnered with 84 Chinese exhibitors in 207 cities across 31 provinces in Mainland China.
IMAX has nearly 800 theaters open in China and another 200 in backlog. During the third quarter of 2022, approximately 82% of the IMAX theaters in Greater China were open at various capacities, on average.
The joint revenue-sharing arrangements contingent rent increased 26.8% to $12.5 million.
IMAX Technology Sales & Maintenance
IMAX Technology Sales and Maintenance revenues increased 19% year over year to $33 million in the third quarter of 2022. The increase in revenues was driven by one additional system installation, the impact of amendments to existing theater arrangements and higher revenues from aftermarket sales.
Within this segment, IMAX systems revenues increased 20.6% from the year-ago quarter’s levels to $15.9 million. IMAX maintenance revenues increased 6.8% year over year to $13.9 million.
Joint revenue-sharing arrangements-fixed fees were 998K, down 3.7% year over year. Other theater revenues were $2.1 million in the reported quarter.
Film Distribution & Post-Production
Film distribution and post-production generated revenues of $2.04 million, up 28.2% year over year.
Network Growth Statistics
As of Sep 30, 2022, there were 1,703 IMAX Theater Systems in 87 countries and territories, including 1,622 commercial multiplexes, 12 commercial destinations, and 69 institutional locations in the company's global theater network. This compares to 1,664 IMAX Theater Systems in 85 countries and territories as of Sep 30, 2021, including 1,580 commercial multiplexes, 12 commercial destinations, and 72 institutional locations in the Company's global theater network.
As of Sep 30, 2022, the company’s backlog included 157 new IMAX with Laser systems and 95 upgrades to IMAX with Laser systems.
Operating Details
Gross margin contracted 250 basis points (bps) to 46.1% in the third-quarter 2022.
Adjusted EBITDA per credit facility was $16.5 million compared with $13.1 million in the year-ago period.
Selling, general & administrative (SG&A) expenses increased 16% year over year to $32.9 million.
Research & development (R&D) expenses decreased 44.9% on a year-over-year basis to $1.11 million.
The company reported an operating income of $4.2 million compared to the year-earlier quarter’s operating loss of $853K.
Balance Sheet & Cash Flow
As of Sep 30, 2022, the company had $87.2 million in cash and cash equivalents compared with $110.1 million as of Jun 30, 2022. As of Sep 30, 2022, total debt, excluding deferred financing fees, was $237.6 compared with $224.37 million as of Jun 30, 2022.
As of Sep 30, 2022, the company's available liquidity was $437.4 million, including its balance of cash and cash equivalents of $87.2 million, $300 million in available borrowing capacity under its credit facility and $50.2 million in available borrowing capacity under IMAX China's revolving facilities.
Cash flow used in operating activities was $481K compared with $5.29 million used in the prior quarter.
Negative free cash flow was $3.9 million compared with a negative free cash flow of $8.9 million in the prior quarter.
Zacks Rank & Stocks to Consider
IMAX currently has a Zacks Rank #3 (Hold).
IMAX shares are down 28.6% in the year-to-date period, outperforming the Zacks Consumer Discretionary sector’s decline of 36.7%.
Some better-ranked stocks in the Consumer Discretionary sector include AMC Entertainment (AMC - Free Report) , Reservoir Media (RSVR - Free Report) and American Public Education (APEI - 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.
AMC Entertainment, Reservoir Media and American Public Education are each scheduled to report quarterly results on Nov 8.
The Zacks Consensus Estimate for AMC Entertainment’s third-quarter 2022 loss is pegged at 27 cents per share, down from loss of 25 cents over the past 30 days.
The Zacks Consensus Estimate for Reservoir Media’s third-quarter 2022 earnings is pegged at 5 cents per share, unchanged over the past 30 days.
The consensus mark for American Public Education’s third-quarter 2022 earnings is pegged at 25 cents per share, unchanged in the past 30 days.