HIGHLIGHTS
- IMAX delivers $169 million in global box office in the third quarter, a 28% increase over Q3 2013

- Q3 2014 adjusted EPS of $0.11, up 83% compared to Q3 2013, leading to record quarterly operating cash flow of $36.6 million

- Company signs deals for 42 theater systems in the third quarter, bringing backlog to 439 theaters

NEW YORK, Oct. 23, 2014 /PRNewswire/ -- IMAX Corporation (NYSE: IMAX; TSX: IMX) today reported third quarter 2014 revenues of $60.7 million, adjusted EBITDA as calculated in accordance with the Company's credit facility of $17.6 million, adjusted net income, after non-controlling interest, of $7.8 million, or $0.11 per diluted share, and reported net income, after non-controlling interest, of $4.9 million, or $0.07 per diluted share.

http://photos.prnewswire.com/prnvar/20111107/MM01969LOGO

"The third quarter further validates our ongoing commitment to delivering bottom line results and advancing our corporate initiatives," stated Richard L. Gelfond, Chief Executive Officer of IMAX Corporation. "We were able to leverage the strong box office across a growing theater network, expand margins and generate our strongest quarter ever for operating cash flow."

Network Growth Update

The total IMAX® theater network consisted of 880 systems as of September 30, 2014, of which 751 were in commercial multiplexes. There were 439 theaters in backlog as of September 30, 2014, compared to 356 in backlog as of September 30, 2013. In the third quarter of 2014, the Company signed contracts for 42 theaters systems, of which 36 were for new locations and 6 were for system upgrades. In the quarter, the Company installed 20 IMAX theater systems, all of which were for new theater locations. For a breakdown of theater system signings, installations, network and backlog by type, please see the end of this press release.

"We continue to see robust worldwide signing activity, including 42 new deals this quarter, bringing our year-to-date signings total to over 100, which really demonstrates the demand for IMAX globally," continued Gelfond. "I am also extremely enthusiastic about a demonstration I saw of our new laser projection system this quarter; it is truly spectacular. Couple this with our operating leverage potential and our ongoing focus on marketing and quality, and I believe we are well positioned to take advantage of what are shaping up to be strong film years in 2015 and 2016."

Third-Quarter Segment Results


    --  Production and IMAX DMR® (Digital Re-Mastering) revenues totaled $18.4
        million in the third quarter of 2014, compared to $14.5 million in the
        third quarter of 2013.  Gross box office from DMR titles was $169.0
        million in the third quarter of 2014, compared to $132.5 million in the
        prior-year period.  The average global DMR box office per screen in the
        third quarter of 2014 was $227,900 compared to $207,500 in the
        prior-year period.
    --  Revenue from joint revenue-sharing arrangements was $15.2 million in the
        quarter, compared to $12.0 million in the prior-year period.  During the
        quarter, the Company installed 14 new theaters under joint
        revenue-sharing arrangements, compared to 13 in the year-ago period. 
        The Company had 422 theaters operating under joint revenue-sharing
        arrangements as of September 30, 2014, as compared to 351 theaters one
        year prior.
    --  Revenue from sales and sales-type leases was $6.6 million in the third
        quarter of 2014, compared to $6.4 million in the third quarter of 2013,
        resulting from the installation of 6 full, new theater systems under
        sales and sales-type lease arrangements compared to the 5 installed in
        the year-ago period.  There were no digital upgrades in the third
        quarter of 2014, as compared to the 9 digital upgrades the Company
        installed in the same period last year.

Conference Call
The Company will host a conference call today at 8:30 AM ET to discuss its third quarter 2014 financial results. To access the call via telephone, interested parties in the US and Canada should dial (800) 524-8950 approximately 5 to 10 minutes before the call begins. International callers should dial (416) 260-0113. The conference ID for the call is 2771960. A replay of the call will be available via webcast on the 'Investor Relations' section of www.imax.com or via telephone by dialing (888) 203-1112 (US and Canada), or (647) 436-0148 (international). The Conference ID for the telephone replay is 2771960.

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 theaters to connect with audiences in extraordinary ways, and, as such, IMAX's network is 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 offices in London, Tokyo, Shanghai and Beijing. As of September 30, 2014, there were 880 IMAX theaters (751 commercial multiplexes, 19 commercial destinations and 110 institutions) in 60 countries.

IMAX®, IMAX® 3D, IMAX DMR®, Experience It In IMAX®, An IMAX 3D Experience®, The IMAX Experience®, IMAX Is Believing® and IMAX nXos® are trademarks of IMAX Corporation. More information about the Company can be found at www.imax.com. You may also connect with IMAX on Facebook (www.facebook.com/imax), Twitter (www.twitter.com/imax) and YouTube (www.youtube.com/imaxmovies).

This press release contains forward looking statements that are based on IMAX management's assumptions and existing information and involve certain risks and uncertainties which could cause actual results to differ materially from future results expressed or implied by such forward looking statements. Important factors that could affect these statements include, but are not limited to, general economic, market or business conditions; the opportunities (or lack thereof) that may be presented to and pursued by the Company; the performance of IMAX DMR films; competitive actions by other companies; conditions in the in-home and out-of-home entertainment industries; the signing of theater system agreements; changes in laws or regulations; conditions, changes and developments in the commercial exhibition industry; the failure to convert theater system backlog into revenue; risks associated with investments and operations in foreign jurisdictions and any future international expansion, including those related to economic, political and regulatory policies of local governments and laws and policies of the United States and Canada; risks related to the Company's growth and operations in China; the failure to respond to change and advancements in digital technology; risks related to the acquisition of AMC Entertainment Holdings, Inc. by Dalian Wanda Group Co., Ltd.; risks related to new business initiatives; the potential impact of increased competition in the markets within which the Company operates; risks related to the Company's inability to protect the Company's intellectual property; risks related to Eastman Kodak bankruptcy and the possibility of constrained film supply; risks related to the Company's implementation of a new enterprise resource planning system; risks related to the Company's prior restatements and the related litigation; and other factors, many of which are beyond the control of the Company. These factors, other risks and uncertainties and financial details are discussed in IMAX's most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.

For additional information please contact:




    Investors:                 Media:

    IMAX Corporation, New York IMAX Corporation, New York

    Teri Loxam                 Ann Sommerlath

    212-821-0100               212-821-0155

    tloxam@imax.com            asommerlath@imax.com



    Business Media:            Entertainment Media:

    Sloane & Company, New York Principal Communications Group, Los Angeles

    Whit Clay                  Melissa Zuckerman/Paul Pflug

    212-446-1864               323-658-1555

    wclay@sloanepr.com         melissa@pcommgroup.com

                               paul@pcommgroup.com
    ---                        -------------------

Additional Information



    Signings and
     Installations
    --------------

    September 30, 2014

                                                                      Three Months

                                                                   Ended September 30,
                                                                   -------------------

                       Theater Signings:                    2014                     2013
                                                          ----

                        Full new sales and sales-type
                        lease arrangements                    22                        6    (3)

                        New joint revenue sharing
                        arrangements                          14                       82
                                                                                     ---

                         Total new
                          theaters                            36                       88


                       Upgrades of IMAX theater systems        6         (1)(2)         11 (1)(2)

                        Total Theater
                        Signings                              42                       99
                                                           ===


                                                                    Three Months

                                                                 Ended September 30,
                                                                 -------------------

                        Theater
                        Installations:                      2014                     2013
                                                          ----

                        Full new sales and sales-type
                        lease arrangements                     6                        6    (4)

                        New joint revenue sharing
                        arrangements                          14                       13
                                                             ---                      ---

                         Total new
                          theaters                            20                       19

                       Upgrades of IMAX theater systems        -                       9    (2)

                        Total Theater
                        Installations                         20                       28
                                                           ===


                                                                 As of September 30,
                                                                 -------------------

                       Theater Backlog:                     2014                     2013
                                                          ----

                        New sales and sales-type lease
                        arrangements                         169                      142

                        New joint revenue sharing
                        arrangements                         244                      191

                         Total new
                          theaters                           413                      333


                       Upgrades of IMAX theater systems       26                       23

                        Total Theaters in
                        Backlog                              439         (5)(6)        356 (5)(7)
                                                           ===                      ===


                                                                 As of September 30,
                                                                 -------------------

                       Theater Network:                     2014                     2013
                                                          ----

                        Commercial
                        Multiplex
                        Theaters:

                        Sales and sales-type lease
                        arrangements                         329                      302

                       Joint revenue sharing arrangements    422                      351

                        Total Commercial
                        Multiplex
                        Theaters                             751                      653


                        Commercial
                        Destination
                        Theaters                              19                       19

                        Institutional
                        Theaters                             110                      113

                        Total IMAX
                        Theater Network                      880                      785
                                                           ===


            (1)    Includes one signing for the
                    installation of a laser-based
                    digital system in an existing
                    theater location (2013 - six
                    signings).

            (2)    Includes one signing of an upgrade
                    to a xenon-based digital system
                    under a short-term operating lease
                    arrangement (2013 - 4 signings, 3
                    installations).

            (3)    Includes one signing which replaced
                    a theater under an existing
                    arrangement in backlog.

            (4)    Includes one full xenon-based
                    digital system under a short-term
                    operating lease arrangement.

            (5)    Includes 69 laser theater system
                     configurations (2013 - 18),
                     including upgrades.

            (6)    Includes 26 upgrades to a digital
                    theater system, in an existing IMAX
                    theater location (3 xenon and 23
                    laser, of which 4 are under joint
                    revenue sharing arrangements).

            (7)    Includes 23 upgrades to a digital
                    theater system, in an existing IMAX
                    theater location (5 xenon and 18
                    laser, of which 3 are under joint
                    revenue sharing arrangements).

Additional Information (continued)

2014 DMR Films:
To date, IMAX has announced 34 titles to be released in 2014. The Company released 38 titles in 2013. The Company remains in discussions with every major Hollywood studio regarding future titles.


    --  Jack Ryan: Shadow Recruit: The IMAX Experience (Paramount Pictures,
        January 2014);
    --  I, Frankenstein: An IMAX 3D Experience (Lionsgate, January 2014);
    --  The Monkey King: The IMAX Experience (Global Star Productions, January
        2014, China only);
    --  Robocop: The IMAX Experience (Metro-Goldwyn-Mayer Studios, Inc.,
        February 2014);
    --  300: Rise of an Empire: An IMAX 3D Experience (Warner Bros. Pictures,
        March 2014);
    --  Need for Speed: An IMAX 3D Experience  (Walt Disney Studios, March 2014,
        select international markets);
    --  Divergent: The IMAX Experience (Summit Entertainment, March 2014);
    --  Noah: The IMAX Experience (Paramount Pictures, March 2014);
    --  Captain America: The Winter Soldier: An IMAX 3D Experience (Marvel
        Entertainment, April 2014);
    --  Transcendence: The IMAX Experience (Warner Bros. Pictures, April 2014);
    --  The Amazing Spider-Man 2: An IMAX 3D Experience (Sony Pictures, May
        2014);
    --  Godzilla: An IMAX 3D Experience (Warner Bros. Pictures, May 2014);
    --  Coming Home: The IMAX Experience (Le Vision Pictures, May 2014, China
        Only);
    --  Maleficent: An IMAX 3D Experience (Walt Disney Studios, May 2014);
    --  Edge of Tomorrow: An IMAX 3D Experience (Warner Bros. Pictures, June
        2014);
    --  How to Train Your Dragon 2: An IMAX 3D Experience  (DreamWorks
        Animation, June 2014);
    --  Transformers: Age of Extinction: An IMAX 3D Experience (Paramount
        Pictures, June 2014);
    --  Hercules: An IMAX 3D Experience (Paramount Pictures, July 2014);
    --  Lucy: The IMAX Experience (Universal Pictures, August 2014, select
        international markets);
    --  The White Haired Witch of Lunar Kingdom: An IMAX 3D Experience (Bona
        Film Group, August 2014, China only);
    --  Guardians of the Galaxy: An IMAX 3D Experience (Walt Disney Studios,
        August 2014);
    --  Teenage Mutant Ninja Turtles: An IMAX 3D Experience (Paramount Pictures,
        August 2014, select international markets);
    --  The Expendables 3: The IMAX Experience (Lionsgate, September 2014, China
        only);
    --  Forrest Gump: The IMAX Experience (Paramount Pictures, September 2014);
    --  The Maze Runner: The IMAX Experience (20th Century Fox, September 2014);
    --  The Equalizer: The IMAX Experience (Sony Pictures, September 2014);
    --  Breakup Buddies: The IMAX Experience (China Film Group, September 2014,
        China only);
    --  Bang Bang: The IMAX Experience (Fox Star Studios, October 2014, India
        only);
    --  Dracula Untold: The IMAX Experience (Universal Studios, October 2014);
    --  John Wick: The IMAX Experience (Summit Entertainment, October 2014);
    --  Fury: The IMAX Experience (Sony Pictures Entertainment, October 2014,
        select international markets);
    --  Interstellar: The IMAX Experience (Paramount Pictures and Warner Bros.
        Pictures, November 2014);
    --  The Hobbit: The Battle of the Five Armies: An IMAX 3D Experience (Warner
        Bros. Pictures, December 2014); and
    --  Gone with the Bullets: An IMAX 3D Experience (Dongwang Yibudaowei Films
        Co., December 2014, China only)

2015 DMR Films:
To date, the Company has announced the following 8 titles to be released to the IMAX theater network in 2015:


    --  Seventh Son: An IMAX 3D Experience (Universal Studios, February 2015);
    --  Fast & Furious 7: The IMAX Experience (Universal Studios, April 2015);
    --  The Avengers: Age of Ultron: An IMAX 3D Experience (Walt Disney Studios,
        May 2015);
    --  Tomorrowland: The IMAX Experience (Walt Disney Studios, May 2015);
    --  Jurassic World: An IMAX 3D Experience (Universal Studios, June 2015);
    --  Everest: An IMAX 3D Experience (Universal Studios, September 2015);
    --  Crimson Peak: The IMAX Experience (Universal Studios, October 2015); and
    --  Star Wars: Episode VII: An IMAX 3D Experience (Walt Disney Studios,
        December 2015).

The Company anticipates that a similar number of IMAX DMR films will be released to the IMAX network in 2015 to the 35 slated for release in 2014 and the 38 films that were released to the IMAX network in 2013.


                                                                                                                                                                               IMAX CORPORATION

                                                                                                                                                               CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

                                                                                                                                                  In accordance with United States Generally Accepted Accounting Principles

                                                                                                                                                           (In thousands of U.S. dollars, except per share amounts)

                                                                                                                                                                                 (Unaudited)


                                                                                                                                                                                         Three Months                                   Nine Months

                                                                                                                                                                                     Ended September 30,                            Ended September 30,
                                                                                                                                                                                     -------------------                            -------------------

                                                                                                                                                                                                    2014                                  2013              2014  2013
                                                                                                                                                                                                    ----                                  ----              ----  ----

    Revenues

    Equipment and product sales                                                                                                                                                                                           $11,765                        $9,623           $37,621       $40,649

    Services                                                                                                                                                                                                              33,199                        28,826           101,813        97,001

    Rentals                                                                                                                                                                                                               13,646                        10,987            42,278        38,782

    Finance income                                                                                                                                                                                                         2,132                         2,071             6,372         6,079

    Other                                                                                                                                                                                                                      -                            -                -          375
                                                                                                                                                                                                                             ---                          ---              ---          ---

                                                                                                                                                                                                                           60,742                        51,507           188,084       182,886
                                                                                                                                                                                                                           ------                        ------           -------       -------

    Costs and expenses applicable to revenues

    Equipment and product sales                                                                                                                                                                                            6,041                         4,086            19,126        20,561

    Services                                                                                                                                                                                                              14,788                        15,910            46,318        53,361

    Rentals                                                                                                                                                                                                                4,471                         4,059            12,996        11,687

                                                                                                                                                                                                                           25,300                        24,055            78,440        85,609
                                                                                                                                                                                                                           ------                        ------            ------        ------

    Gross margin                                                                                                                                                                                                          35,442                        27,452           109,644        97,277

    Selling, general and administrative expenses                                                                                                                                                                          23,513                        19,778            68,323        61,549

                 (including share-based compensation expense of $3.4 million and $11.3 million
                 for the three and nine months ended September 30, 2014 (2013 - expense of
                                                                                                                                       $2.8 million and $8.8 million, respectively))

    Gain on curtailment of postretirement benefit plan                                                                                                                                                                         -                            -                -      (2,185)

    Research and development                                                                                                                                                                                               4,560                         3,974            11,468        11,267

    Amortization of intangibles                                                                                                                                                                                              441                           409             1,259         1,146

    Receivable provisions, net of recoveries                                                                                                                                                                                  26                           224               642           279

    Impairment of available-for-sale investment                                                                                                                                                                                -                            -              650             -
                                                                                                                                                                                                                             ---                          ---              ---           ---

    Income from operations                                                                                                                                                                                                 6,902                         3,067            27,302        25,221

    Interest income                                                                                                                                                                                                          149                            14               189            39

    Interest expense                                                                                                                                                                                                       (269)                        (315)            (803)      (1,008)
                                                                                                                                                                                                                            ----                          ----              ----        ------

    Income from operations before income taxes                                                                                                                                                                             6,782                         2,766            26,688        24,252

    Provision for income taxes                                                                                                                                                                                           (1,188)                        (685)          (6,667)      (6,701)

    Loss from equity-accounted investments, net of tax                                                                                                                                                                     (297)                        (344)            (721)        (998)
                                                                                                                                                                                                                            ----                          ----              ----          ----

    Income from continuing operations                                                                                                                                                                                      5,297                         1,737            19,300        16,553

    Net (loss) income from discontinued operations, net of tax                                                                                                                                                                 -                        (128)              355         (267)
                                                                                                                                                                                                                             ---                         ----               ---          ----

    Net income                                                                                                                                                                                                             $5,297                        $1,609           $19,655       $16,286

    Less: Net income attributable to non-controlling interests                                                                                                                                                             (439)                            -            (911)            -
                                                                                                                                                                                                                            ----                           ---             ----           ---

    Net income attributable to Common Shareholders                                                                                                                                                                         $4,858                        $1,609           $18,744       $16,286
                                                                                                                                                                                                                           ======                        ======           =======       =======


    Net income per share - basic:

                 Net income per share from continuing operations                                                                                                                                                              $0.07                         $0.02             $0.26         $0.24

                 Net income per share from discontinued operations                                                                                                                                                                -                            -             0.01             -


                                                                                                                                                                                                                            $0.07                         $0.02             $0.27         $0.24
                                                                                                                                                                                                                            =====                         =====             =====         =====

    Net income per share - diluted:

                 Net income per share from continuing operations                                                                                                                                                              $0.07                         $0.02             $0.26         $0.24

                 Net income per share from discontinued operations                                                                                                                                                                -                            -             0.01             -


                                                                                                                                                                                                                            $0.07                         $0.02             $0.27         $0.24
                                                                                                                                                                                                                            =====                         =====             =====         =====

    Weighted average number of shares outstanding (000's):

                 Basic                                                                                                                                                                                                       68,480                        67,309            68,206        66,969

                 Fully Diluted                                                                                                                                                                                               69,602                        69,116            69,597        68,853



    Additional Disclosure:

                 Depreciation and amortization(1)                                                                                                                                                                            $7,992                        $8,826           $23,937       $29,027


    - Includes $0.1 million and $0.4 million of amortization of deferred financing costs charged to interest expense for the three and nine months ended September 30, 2014, respectively (2013 - $0.1 million and $0.3 million, respectively).




                                                                                                       IMAX CORPORATION

                                                                                             CONDENSED CONSOLIDATED BALANCE SHEETS

                                                                           In accordance with United States Generally Accepted Accounting Principles

                                                                                                (in thousands of U.S. dollars)


                                                                                                                                                         As at                    As at

                                                                                                                                                     September 30,            December 31,

                                                                                                                                                              2014                     2013
                                                                                                                                                              ----                     ----

                                                                                                                                                      (unaudited)

    Assets

    Cash and cash equivalents                                                                                                                                         $93,705                   $29,546

    Accounts receivable, net of allowance for doubtful accounts of $714 (December 31, 2013 - $887)                                                                   59,734                    73,074

    Financing receivables                                                                                                                                           103,616                   107,110

    Inventories                                                                                                                                                      21,439                     9,825

    Prepaid expenses                                                                                                                                                  5,382                     3,602

    Film assets                                                                                                                                                       7,787                     7,076

    Property, plant and equipment                                                                                                                                   161,579                   132,847

    Other assets                                                                                                                                                     20,197                    27,034

    Deferred income taxes                                                                                                                                            20,917                    24,259

    Other intangible assets                                                                                                                                          27,556                    27,745

    Goodwill                                                                                                                                                         39,027                    39,027
                                                                                                                                                                     ------                    ------

    Total assets                                                                                                                                                     $560,939                  $481,145
                                                                                                                                                                     ========                  ========


    Liabilities

    Accounts payable                                                                                                                                                  $16,571                   $19,396

    Accrued and other liabilities                                                                                                                                    55,841                    65,232

    Deferred revenue                                                                                                                                                100,304                    76,932

    Total liabilities                                                                                                                                               172,716                   161,560
                                                                                                                                                                    -------                   -------


    Commitments and contingencies


    Non-controlling interest                                                                                                                                         38,187                         -
                                                                                                                                                                     ------                       ---


    Shareholders' equity

    Capital stock common shares - no par value. Authorized - unlimited number.

        Issued and outstanding - 68,520,049 (December 31, 2013 - 67,841,233)                                                                                        334,415                   327,313

    Other equity                                                                                                                                                     43,200                    36,452

    Accumulated deficit                                                                                                                                            (26,545)                 (43,051)

    Accumulated other comprehensive loss                                                                                                                            (1,034)                  (1,129)
                                                                                                                                                                     ------                    ------

    Total shareholders' equity                                                                                                                                      350,036                   319,585
                                                                                                                                                                    -------                   -------

    Total liabilities and shareholders' equity                                                                                                                       $560,939                  $481,145
                                                                                                                                                                     ========                  ========




                                                                                                                                   IMAX CORPORATION

                                                                                                                   CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

                                                                                                      In accordance with United States Generally Accepted Accounting Principles

                                                                                                                            (In thousands of U.S. dollars)

                                                                                                                                     (Unaudited)

                                                                                                                                                                                        Nine Months

                                                                                                                                                                                    Ended September 30,
                                                                                                                                                                                    -------------------

                                                                                                                                                                                    2014                   2013
                                                                                                                                                                                    ----                   ----

    Cash provided by (used in):

    Operating Activities

    Net income                                                                                                                                                                               $19,655                $16,286

                                                                    Net (income) loss from discontinued operations                                                                               (355)                   267

    Adjustments to reconcile net income to cash from operations:

                                                                    Depreciation and amortization                                                                                               23,937                 29,027

                                                                    Write-downs, net of recoveries                                                                                               1,753                    279

                                                                    Change in deferred income taxes                                                                                              3,157                  5,579

                                                                    Stock and other non-cash compensation                                                                                       11,609                  9,348

                                                                    Gain on curtailment of postretirement benefit plan                                                                               -               (2,185)

                                                                    Unrealized foreign currency exchange loss                                                                                      847                    275

                                                                    Loss from equity-accounted investments                                                                                       1,073                    998

                                                                    Gain on non-cash contribution to equity-accounted investees                                                                  (352)                     -

    Investment in film assets                                                                                                                                                               (8,398)              (16,772)

    Changes in other non-cash operating assets and liabilities                                                                                                                               18,372                (9,860)

    Net cash provided by (used in) operating activities from discontinued operations                                                                                                            572                  (267)
                                                                                                                                                                                                ---                   ----

                                                                    Net cash provided by operating activities                                                                                   71,870                 32,975



    Investing Activities

    Purchase of property, plant and equipment                                                                                                                                              (24,686)               (6,167)

    Investment in joint revenue sharing equipment                                                                                                                                          (15,908)              (16,363)

    Investment in new business ventures                                                                                                                                                     (2,500)               (2,500)

    Acquisition of other intangible assets                                                                                                                                                  (1,979)               (1,812)
                                                                                                                                                                                             ------                 ------

                                                                    Net cash used in investing activities                                                                                     (45,073)              (26,842)



    Financing Activities

    Issuance of subsidiary shares to non-controlling interests                                                                                                                               40,491                      -

    Share issuance costs from the issuance of subsidiary shares to non-controlling interests                                                                                                (3,556)                     -

    Common shares issued - stock options exercised                                                                                                                                            3,672                  6,745

    Repurchase of common shares                                                                                                                                                             (2,369)                     -

    Settlement of restricted share units                                                                                                                                                      (790)                     -

    Increase in bank indebtedness                                                                                                                                                 -                       12,000

    Repayment of bank indebtedness                                                                                                                                                -                     (18,000)

    Credit facility amendment fees paid                                                                                                                                           -                      (2,089)

    Share issuance expenses                                                                                                                                                       -                        (202)
                                                                                                                                                                                ---                         ----

                                                                    Net cash provided by (used in) financing activities                                                                         37,448                (1,546)



    Effects of exchange rate changes on cash                                                                                                                                                   (86)                    32
                                                                                                                                                                                                ---                    ---


    Increase in cash and cash equivalents during the period                                                                                                                                  64,159                  4,619


    Cash and cash equivalents, beginning of period                                                                                                                                           29,546                 21,336
                                                                                                                                                                                             ------                 ------

    Cash and cash equivalents, end of period                                                                                                                                                 $93,705                $25,955
                                                                                                                                                                                             =======                =======


                                                                                                       IMAX CORPORATION

                                                                                                    SELECTED FINANCIAL DATA

                                                                           In accordance with United States Generally Accepted Accounting Principles

                                                                                                (in thousands of U.S. dollars)


    The Company has seven reportable segments identified by category of product sold or service provided: IMAX systems; theater system maintenance; joint revenue sharing arrangements; film production and IMAX DMR; film distribution; film post-production;
     and other. The IMAX systems segment designs, manufactures, sells or leases IMAX theater projection system equipment. The theater system maintenance segment maintains IMAX theater projection system equipment in the IMAX theater network. The joint
     revenue sharing arrangements segment provides IMAX theater projection system equipment to an exhibitor in exchange for a share of box-office and concession revenues. The film production and IMAX DMR segment produces films and performs film re-
     mastering services. The film distribution segment distributes films for which the Company has distribution rights. The film post-production segment provides film post-production and film print services. The other segment includes certain IMAX
     theaters that the Company owns and operates, camera rentals and other miscellaneous items.


                                                                                                                     Three Months                                   Nine Months

                                                                                                                 Ended September 30,                            Ended September 30,
                                                                                                                 -------------------                            -------------------

                                                                                                    2014                                                        2013                      2014                                    2013
                                                                                                    ----                                                        ----                      ----                                    ----

    Revenue

    IMAX Theater Systems

                            IMAX Systems

                            Sales and sales-type leases                                           $6,644                                                      $6,419                                              $25,629                                      $33,321

                            Ongoing rent, fees, and finance income                                 3,501                                                       3,483                                               10,272                                       10,111

                            Other                                                                  3,165                                                       1,995                                                8,407                                        7,344
                                                                                                   -----                                                       -----                                                -----                                        -----

                                                                                                  13,310                                                      11,897                                               44,308                                       50,776
                                                                                                  ------                                                      ------                                               ------                                       ------

                            Theater system maintenance                                             8,516                                                       8,103                                               25,384                                       23,844


                            Joint revenue sharing arrangements                                    15,238                                                      11,960                                               45,457                                       39,672



    Film

                            Production and IMAX DMR                                               18,350                                                      14,547                                               57,585                                       54,854

                            Film distribution and post-production                                  5,328                                                       5,000                                               15,350                                       13,740


                                                                                                  23,678                                                      19,547                                               72,935                                       68,594
                                                                                                  ------                                                      ------                                               ------                                       ------

    Total                                                               $60,742                                                     $51,507                                           $188,084                                             $182,886
                                                                        =======                                                     =======                                           ========                                             ========


    Gross margins

    IMAX Theater Systems

                            IMAX systems(1)

                            Sales and sales-type leases                                           $4,246                                                      $3,928                                              $14,161                                      $16,390

                            Ongoing rent, fees, and finance income                                 3,352                                                       3,277                                                9,799                                        9,758

                            Other                                                                  (218)                                                      (108)                                               (202)                                         375
                                                                                                    ----                                                        ----                                                 ----                                          ---

                                                                                                   7,380                                                       7,097                                               23,758                                       26,523
                                                                                                   -----                                                       -----                                               ------                                       ------

                            Theater system maintenance                                             3,208                                                       3,218                                                8,990                                        9,432


                            Joint revenue sharing arrangements(1)                                  9,382                                                       7,153                                               30,043                                       26,796



    Film

                            Production and IMAX DMR(1)                                            13,469                                                       8,596                                               43,177                                       32,744

                             Film distribution(1) and post-
                             production                                                            2,003                                                       1,388                                                3,676                                        1,782


                                                                                                  15,472                                                       9,984                                               46,853                                       34,526
                                                                                                  ------                                                       -----                                               ------                                       ------

    Total                                                               $35,442                                                     $27,452                                           $109,644                                              $97,277
                                                                        =======                                                     =======                                           ========                                              =======


    (1)  IMAX systems include marketing and commission costs of $0.3 million and $1.2 million for the three and nine months ended September 30, 2014, respectively (2013 -$0.2 million and $0.9 million, respectively). Joint revenue sharing arrangements
     segment margins include advertising, marketing and commission costs of $0.9 million and $2.1 million for the three and nine months ended September 30, 2014, respectively (2013 -$0.9 million and $2.0 million, respectively). Production and DMR segment
     margins include marketing costs of $2.1 million and $5.3 million for the three and nine months ended September 30, 2014, respectively (2013 -$0.8 million and $3.1 million, respectively). Distribution segment margins include marketing costs of $0.3
     million and $0.7 million for the three and nine months ended September 30, 2014, respectively (2013 -$0.1 million and $0.2 million, respectively).




                                                                                                                                       IMAX CORPORATION

                                                                                                                                      OTHER INFORMATION

                                                                                                                                (in thousands of U.S. dollars)


    Non-GAAP Financial Measures:


    In this release, the Company presents adjusted EBITDA attributable to common shareholders, adjusted net income attributable to common shareholders and adjusted net income attributable to common shareholders per diluted share as supplemental measures of performance of the Company,
     which are not recognized under United States generally accepted accounting principles ("GAAP"). The Company presents adjusted EBITDA attributable to common shareholders, adjusted net income attributable to common shareholders and adjusted net income attributable to common
     shareholders per diluted share because it believes that they are important supplemental measures of its comparable controllable operating performance and it wants to ensure that its investors fully understand the impact of its stock-based compensation (net of any related tax
     impact) on net income attributable to common shareholders. Management uses these measures to review operating performance on a comparable basis from period to period. However, these non-GAAP measures may not be comparable to similarly titled amounts reported by other companies.
     Adjusted EBITDA attributable to common shareholders, adjusted net income attributable to common shareholders and adjusted net income attributable to common shareholders per diluted share should be considered in addition to, and not as a substitute for, net income and other
     measures of financial performance reported in accordance with GAAP.


    The Credit Facility provides that the Company will be required to maintain a Fixed Charge Coverage Ratio (as defined in the Credit Agreement) of not less than 1.1:1. The Company will also be required to maintain minimum EBITDA (as defined in the Credit Agreement) of $90.0 million
     on December 31, 2014, which requirement increases to $100.0 million on December 31, 2015. The Company must also maintain a Maximum Total Leverage Ratio (as defined in the Credit Agreement) of 2.00:1 on December 31, 2014, which requirement decreases to 1.75:1 on December 31,
     2015. The ratio of total debt to EBITDA was nil:1 as at September 30, 2014, where Total Debt (as defined in the Credit Agreement) is the sum of all obligations evidenced by notes, bonds, debentures or similar instruments and was $nil. EBITDA is calculated as follows:


                                                                                                                                                                                                          For the                                For the

                                                                                                                                                                                                      3 months ended                         12 months ended

    EBITDA per Credit Facility:                                                                                                                                                                     September 30, 2014                    September 30, 2014(1)
                                                                                                                                                                                                    ------------------                    --------------------

    (In thousands of U.S. Dollars)

    Net income                                                                                                                                                                                                                   $5,297                                                       $47,484

    Add (subtract):

                                      Loss from equity accounted investments                                                                                                                                                          297                                                         2,480

                                      Provision for income taxes                                                                                                                                                                    1,188                                                        16,790

                                      Interest expense, net of interest income                                                                                                                                                        120                                                           936

                                      Depreciation and amortization, including film asset amortization                                                                                                                              7,861                                                        31,553

                                      Write-downs net of recoveries including asset impairments and receivable

                                           provisions                                                                                                                                                                                 174                                                         2,810

                                      Stock and other non-cash compensation                                                                                                                                                         3,519                                                        14,946

                                      EBITDA attributable to non-controlling interests(2)                                                                                                                                           (887)                                                      (1,776)

                                                                                                                                                                                                                                $17,569                                                      $115,223
                                                                                                                                                                                                                                =======                                                      ========


                               (1)   Ratio of total debt calculated using twelve months ended EBITDA

                               (2)    The EBITDA calculation specified for purposes of the minimum EBITDA covenant excludes the reduction in EBITDA
                                       from the Company's non-controlling interests.


                                                                                                                                        IMAX CORPORATION

                                                                                                                                       OTHER INFORMATION

                                                                                                                                 (in thousands of U.S. dollars)


    Adjusted Net Income and Adjusted Diluted Per Share Calculations - Quarter Ended September 30, 2014 vs. 2013:


    The Company reported net income attributable to common shareholders of $4.9 million or $0.07 per basic and diluted share for the third quarter of 2014, as compared to $1.6 million or $0.02 per basic and diluted share for the third quarter of 2013. Net income attributable to common shareholders for the
     third quarter of 2014 includes a $3.4 million charge, or $0.04 per diluted share (after-tax), for stock-based compensation (2013 - $2.8 million or $0.04 per diluted share (after-tax)). Adjusted net income attributable to common shareholders, which consists of net income attributable to common
     shareholders excluding stock-based compensation expense and the related tax impact, was $7.8 million, or $0.11 per diluted share, in the third quarter of 2014, as compared to adjusted net income attributable to common shareholders of $4.4 million, or $0.06 per diluted share, for the third quarter of
     2013. A reconciliation of net income attributable to common shareholders, the most directly comparable U.S. GAAP measure, to adjusted net income attributable to common shareholders and adjusted net income attributable to common shareholders per diluted share is presented in the table below:


                                                                                                                                                                  September 30, 2014                                          September 30, 2013
                                                                                                                                                                  ------------------                                          ------------------

                                                                                                                                                           Net Income                Diluted EPS                                 Net Income                  Diluted EPS
                                                                                                                                                           ----------                -----------                                 ----------                  -----------

    Reported net income attributable to common shareholders                                                                                                                 $4,858                                      $0.07              (1)                                   $1,609                            $0.02

    Adjustments:

                                                   Stock-based compensation                                                                                                    3,425                                       0.05                                                     2,838                             0.04

                                                   Tax impact of items listed above                                                                                            (464)                                    (0.01)                                                     (85)                               -


    Adjusted net income attributable to common shareholders                                                                                                                 $7,819                                      $0.11              (1)                                   $4,362                            $0.06
                                                                                                                                                                            ======                                      =====                                                    ======                            =====


    Weighted average diluted shares outstanding                                                                                                                                             69,602                                                                                              69,116
                                                                                                                                                                                            ======                                                                                              ======



    (1) Includes impact of $0.1 million of accretion charges associated with redeemable common stock.


    Adjusted Net Income and Adjusted Diluted Per Share Calculations - Nine Months Ended September 30, 2014 vs. 2013:


    The Company reported net income attributable to common shareholders of $18.7 million or $0.27 per basic and diluted share for the nine months ended September 30, 2014, as compared to $16.3 million or $0.24 per basic and diluted share for the nine months ended September 30, 2013. Net income attributable to common
     shareholders for the nine months ended September 30, 2014 includes a $11.3 million charge, or $0.13 per diluted share (after-tax), for stock-based compensation (2013 - $8.8 million or $0.12 per diluted share (after-tax)). Adjusted net income attributable to common shareholders, which consists of net income
     attributable to common shareholders excluding stock-based compensation expense and the related tax expense, was $28.3 million, or $0.40 per diluted share, in the nine months ended September 30, 2014, as compared to adjusted net income attributable to common shareholders of $24.9 million, or $0.36 per diluted
     share, for the nine months ended September 30, 2013. A reconciliation of net income attributable to common shareholders, the most directly comparable U.S. GAAP measure, to adjusted net income attributable to common shareholders and adjusted net income attributable to common shareholders per diluted share is
     presented in the table below:


                                                                                                                                                                    September 30, 2014                                          September 30, 2013
                                                                                                                                                                    ------------------                                          ------------------

                                                                                                                                                            Net Income                 Diluted EPS                                 Net Income                  Diluted EPS
                                                                                                                                                            ----------                 -----------                                 ----------                  -----------

    Reported net income attributable to common shareholders                                                                                                                  $18,744                                      $0.27              (1)                                   $16,286                                    $0.24

    Adjustments:

                                                   Stock-based compensation                                                                                                     11,328                                       0.16                                                      8,772                                     0.12

                                                   Tax expense of items listed above                                                                                           (1,807)                                    (0.03)                                                     (159)                                       -


    Adjusted net income attributable to common shareholders                                                                                                                  $28,265                                      $0.40              (1)                                   $24,899                                    $0.36
                                                                                                                                                                             =======                                      =====                                                    =======                                    =====


    Weighted average diluted shares outstanding                                                                                                                                               69,597                                                                                               68,853
                                                                                                                                                                                              ======                                                                                               ======



    (1) Includes impact of $0.3 million of accretion charges associated with redeemable common stock.




    Free Cash Flow:


    Free cash flow is defined as cash
     provided by operating activities
     minus cash used in investing
     activities (from the consolidated
     statements of cash flows). Cash
     provided by operating activities
     consist of net income, plus
     depreciation and amortization,
     plus the change in deferred
     income taxes, plus other non-
     cash items, plus changes in
     working capital, less investment
     in film assets, plus other
     changes in operating assets and
     liabilities. Cash used in
     investing activities includes
     capital expenditures,
     acquisitions and other cash used
     in investing activities.
     Management views free cash flow,
     a non-GAAP measure, as a measure
     of the Company's after-tax cash
     flow available to reduce debt,
     add to cash balances, and fund
     other financing activities. A
     reconciliation of cash provided
     by operating activities to free
     cash flow is presented in the
     table below:



                                       For the

                                      9 months
                                        ended

                                    September 30,
                                         2014
                                   -------------

    (In thousands of U.S. Dollars)

    Net cash provided by operating
     activities                                    $71,870

    Net cash used in investing
     activities                                   (45,073)
                                                   -------

    Free cash flow                                 $26,797
                                                   =======

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SOURCE IMAX Corporation