IMAX CORPORATION NEW YORK, July 23, 2015 /PRNewswire/ -- IMAX Corporation (NYSE: IMAX) today reported second quarter 2015 revenues of $107.2 million, adjusted EBITDA as calculated in accordance with the Company's credit facility of $50.4 million, adjusted net income after non-controlling interest of $28.7 million, or $0.40 per diluted share, and reported net income after non-controlling interest of $24.4 million, or $0.34 per diluted share. The Company also reported a very strong second quarter global per screen average of $414,600.
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"The second quarter of 2015 was one of the strongest in IMAX's history, delivering our highest revenue ever, growing adjusted EPS by 60% compared to the same period last year, record box office and quarterly per screen averages that we have not seen since Avatar in 2010," stated IMAX CEO Richard L. Gelfond. "We believe the strength of this quarter clearly demonstrates the impact that a strong slate of blockbuster films can have on IMAX and the operating leverage that results."
Network Growth Update
The total IMAX® theatre network consisted of 976 systems as of June 30, 2015, of which 852 were in commercial multiplexes. There were 391 theatres in backlog as of June 30, 2015, compared to 419 in backlog as of June 30, 2014. In the second quarter of 2015, the Company signed contracts for 30 theatres, of which 28 were for new locations and 2 were for upgrades. In the quarter, the Company also installed 35 theatres, all of which were for new theatre locations. For a breakdown of theatre system signings, installations, network and backlog by type, please see the end of this press release.
"Momentum also continued to build on the network side of our business with higher than expected installations and strong signings activity in the quarter," continued Gelfond, who is in Vienna for the world premiere of Mission Impossible: Rogue Nation at the historic Vienna Opera House, which has been transformed into an IMAX theatre for this event. "Tonight's M:I5 event is the continuation of the transformation of IMAX's brand from the smaller successes onto center stage. More agreements to use IMAX cameras as well as IMAX premieres such as Furious 7 and Jurassic World are a powerful marketer for our brand and also signal the increasingly important role IMAX plays in the entertainment ecosystem."
Second-Quarter Segment Results
-- Revenue from sales and sales-type leases was $18.7 million in the second
quarter of 2015, compared to $14.5 million in the second quarter of
2014, primarily reflecting the installation of 15 full theatre systems
(14 new, 1 used) under sales and sales-type lease arrangements in the
most recent second quarter, compared to the 11 sales-type theatres the
Company installed in the prior-year period. In addition, there were no
upgrades in existing locations in the second quarter of 2015, compared
to 4 xenon upgrades in the second quarter of 2014.
-- Revenue from joint revenue-sharing arrangements was $31.6 million in the
quarter, compared to $19.4 million in the prior-year period. During the
quarter, the Company installed 20 new theatres under joint
revenue-sharing arrangements, compared to 19 in the same period in 2014.
The Company had 477 theatres operating under joint revenue-sharing
arrangements as of June 30, 2015, as compared to 408 joint-venture
theatres one year prior.
-- Production and IMAX DMR® (Digital Re-Mastering) revenues were $36.6
million in the second quarter of 2015, compared to $24.0 million in the
second quarter of 2014. Gross box office from DMR titles was $343.0
million in the second quarter of 2014, compared to $216.0 million in the
prior-year period. The average global DMR box office per screen in the
second quarter of 2014 was $414,600 compared to $299,800 in the
prior-year period.
Conference Call
The Company will host a conference call today at 8:30 AM ET to discuss its second quarter 2015 financial results. To access the call via telephone, interested parties in the US and Canada should dial (888) 438-5519 approximately 5 to 10 minutes before the call begins. International callers should dial (719) 325-2469. The conference ID for the call is 1711636. 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 1711636.
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 theatres 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 June 30, 2015, there were 976 IMAX theatres (852 commercial multiplexes, 20 commercial destinations and 104 institutions) in 65 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, the signing of theater system agreements; conditions, changes and developments in the commercial exhibition industry; the performance of IMAX DMR films; the potential impact of increased competition in the markets within which the Company operates; competitive actions by other companies; the failure to respond to change and advancements in digital technology; 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 Company's largest customer accounting for a significant portion of the Company's revenue and backlog; risks related to new business initiatives; conditions in the in-home and out-of-home entertainment industries; the opportunities (or lack thereof) that may be presented to and pursued by the Company; risks related to the Company's inability to protect the Company's intellectual property; risks related to the Company's implementation of a new enterprise resource planning system; general economic, market or business conditions; the failure to convert theater system backlog into revenue; changes in laws or regulations; risks related to the Company's dependence on a sole supplier for its analog film; risks related to cybersecurity; 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
-------------
June 30, 2015
Three Months
Ended June 30,
--------------
Theater Signings: 2015 2014
---- ----
Full new sales and sales-type
lease arrangements 19 17
New joint revenue sharing
arrangements 9 3
Total new
theaters 28 20
Upgrades of IMAX theater systems 2 (1) 4 (1)(2)
Total Theater
Signings 30 24
=== ===
Three Months
Ended June 30,
--------------
Theater
Installations: 2015 2014
---- ----
Full new sales and sales-type
lease arrangements 15 11
New joint revenue sharing
arrangements 20 19
--- ---
Total new
theaters 35 30
Upgrades of IMAX theater systems - 4 (2)
Total Theater
Installations 35 34
=== ===
As of June 30,
--------------
Theater Backlog: 2015 2014
---- ----
New sales and sales-type lease
arrangements 162 155
New joint revenue sharing
arrangements 205 242
Total new
theaters 367 397
Upgrades of IMAX theater systems 24 22
Total Theaters in
Backlog 391 (3) 419 (3)
=== ===
As of June 30,
--------------
Theater Network: 2015 2014
---- ----
Commercial
Multiplex
Theaters:
Sales and sales-type lease
arrangements 375 327
Joint revenue sharing arrangements 477 408
Total Commercial
Multiplex
Theaters 852 735
Commercial
Destination
Theaters 20 19
Institutional
Theaters 104 114
Total IMAX
Theater Network 976 868
=== ===
(1) Includes two signings for the
installation of laser-based
digital systems in existing
theater locations (2014 - 2
signings).
(2) Includes one signing and two
installations of upgrades to a
xenon-based digital system under
short-term operating lease
arrangements.
(3) Includes 73 laser theater system
configurations (2014 - 66),
including upgrades. The Company
continues to develop and roll out
its laser projection system.
Additional Information (continued)
2015 DMR Films:
In addition to the 23 IMAX DMR films released to the IMAX theater network during the first six months of 2015, 13 additional IMAX DMR films have been announced so far to be released in the remaining six months of 2015:
-- Monk Comes Down the Mountain: An IMAX 3D Experience (China Film Group,
July 2015);
-- Monster Hunt: An IMAX 3D Experience (Edko Films, July 2015)
-- Ant-Man: An IMAX 3D Experience (Walt Disney Studios, July 2015);
-- Pixels: An IMAX 3D Experience (Sony Pictures Entertainment, July 2015);
-- Mission: Impossible - Rogue Nation: The IMAX Experience (Paramount
Pictures, July 2015);
-- The Man from U.N.C.L.E: The IMAX Experience (Warner Bros. Pictures,
August 2015);
-- Everest: An IMAX 3D Experience (Universal Studios, September 2015);
-- The Walk: The IMAX Experience (Sony Pictures Entertainment, October
2015);
-- Crimson Peak: The IMAX Experience (Universal Studios, October 2015);
-- Spectre : The IMAX Experience (Sony Pictures Entertainment, November
2015);
-- The Hunger Games: Mockingjay Part 2: An IMAX 3D Experience (Lionsgate,
November 2015);
-- In the Heart of the Sea: The IMAX Experience (Warner Bros. Pictures,
December 2015); and
-- Star Wars: The Force Awakens: An IMAX 3D Experience (Walt Disney
Studios, December 2015).
To date, the Company has announced the following 14 titles to be released to the IMAX theater network in 2016:
-- The Finest Hours: The IMAX Experience (Walt Disney Studios, January
2016);
-- Warcraft: An IMAX 3D Experience (Universal Studios, March 2016);
-- Batman v Superman: Dawn of Justice: The IMAX Experience (Warner Bros.
Pictures, March 2016);
-- The Jungle Book: The IMAX Experience (Walt Disney Studios, April 2016);
-- Captain America: Civil War: The IMAX Experience (Walt Disney Studios,
May 2016);
-- Alice in Wonderland: Through the Looking Glass: The IMAX Experience
(Walt Disney Studios, May 2016);
-- Finding Dory: The IMAX Experience (Walt Disney Studios, June 2016);
-- Tarzan: The IMAX Experience (Warner Bros. Pictures, July 2016);
-- Knights of the Roundtable: King Arthur: The IMAX Experience (Warner
Bros. Pictures, July 2016);
-- Suicide Squad: The IMAX Experience (Warner Bros. Pictures, August 2016);
-- Geostorm: The IMAX Experience (Warner Bros. Pictures, October 2016);
-- Doctor Strange: An IMAX 3D Experience (Walt Disney Studios, November
2016);
-- Fantastic Beasts and Where to Find Them: The IMAX Experience (Warner
Bros. Pictures, November 2016); and
-- Rogue One: An IMAX 3D Experience (Walt Disney Studios, December 2016).
The Company remains in active negotiations with all of the major Hollywood studios for additional films to fill out its short and long-term film slate, and anticipates that a similar number of IMAX DMR films will be released to the IMAX network in 2015 to the 40 films that were released to the IMAX network in 2014.
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 Six Months
Ended June 30, Ended June 30,
-------------- --------------
2015 2014 2015 2014
---- ---- ---- ----
Revenues
Equipment and product sales $25,305 $19,502 $39,741 $25,856
Services 50,958 39,742 82,674 68,614
Rentals 28,527 17,841 42,341 28,632
Finance income 2,229 2,060 4,474 4,240
Other 141 - 141 -
--- --- --- ---
107,160 79,145 169,371 127,342
------- ------ ------- -------
Costs and expenses applicable to revenues
Equipment and product sales 13,521 9,366 21,061 13,085
Services 19,495 17,180 34,302 31,530
Rentals 5,109 4,805 8,992 8,525
38,125 31,351 64,355 53,140
------ ------ ------ ------
Gross margin 69,035 47,794 105,016 74,202
Selling, general and administrative expenses 29,023 23,498 57,375 44,810
(including share-based compensation expense of $5.1 million and $10.7 million for the three and six months ended June 30 2015,
respectively (2014 - expense of $4.7 million and $7.9 million, respectively))
Research and development 2,347 3,309 6,889 6,908
Amortization of intangibles 443 416 873 818
Receivable provisions, net of recoveries 343 329 348 616
Impairment of investments 350 650 350 650
--- --- --- ---
Income from operations 36,529 19,592 39,181 20,400
Interest income 259 24 505 40
Interest expense (403) (268) (707) (534)
---- ---- ---- ----
Income from operations before income taxes 36,385 19,348 38,979 19,906
Provision for income taxes (9,256) (5,407) (9,931) (5,479)
Loss from equity-accounted investments, net of tax (749) (162) (1,183) (424)
---- ---- ------ ----
Income from continuing operations 26,380 13,779 27,865 14,003
Net income from discontinued operations, net of tax - - - 355
--- --- --- ---
Net income $26,380 $13,779 $27,865 $14,358
Less: Net income attributable to non-controlling interests (2,030) (472) (3,124) (472)
------ ---- ------ ----
Net income attributable to Common Shareholders $24,350 $13,307 $24,741 $13,886
======= ======= ======= =======
Net income per share - basic:
Net income per share from continuing operations $0.34 $0.19 $0.35 $0.20
Net income per share from discontinued operations - - - 0.01
$0.34 $0.19 $0.35 $0.21
===== ===== ===== =====
Net income per share - diluted:
Net income per share from continuing operations $0.34 $0.19 $0.34 $0.19
Net income per share from discontinued operations - - - 0.01
$0.34 $0.19 $0.34 $0.20
===== ===== ===== =====
Weighted average number of shares outstanding (000's):
Basic 69,843 68,228 69,526 68,068
Fully Diluted 71,688 69,452 71,349 69,448
Additional Disclosure:
Depreciation and amortization(1) $11,091 $8,390 $20,724 $15,945
(1) Includes $0.2 million and $0.4
million of amortization of
deferred financing costs charged
to interest expense for the three
and six months ended June 30,
2015, respectively (2014 -$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
June 30, December 31,
2015 2014
---- ----
(unaudited)
Assets
Cash and cash equivalents $146,383 $106,503
Accounts receivable, net of allowance for doubtful accounts of $1,222 (December 31, 2014 - $947) 91,464 76,051
Financing receivables 108,492 105,700
Inventories 34,186 17,063
Prepaid expenses 6,799 4,946
Film assets 14,842 15,163
Property, plant and equipment 207,099 183,424
Other assets 28,342 23,047
Deferred income taxes 21,673 23,058
Other intangible assets 28,811 27,551
Goodwill 39,027 39,027
------ ------
Total assets $727,118 $621,533
======== ========
Liabilities
Bank indebtedness $22,278 $4,710
Accounts payable 21,349 26,145
Accrued and other liabilities 66,614 75,425
Deferred revenue 98,062 88,566
Total liabilities 208,303 194,846
------- -------
Commitments and contingencies
Non-controlling interests 85,532 43,912
------ ------
Shareholders' equity
Capital stock, common shares - no par value. Authorized - unlimited number.
70,182,090 - issued and 70,152,426 - outstanding (December 31, 2014 - 68,988,050) 378,247 344,862
Less: Treasury stock held in trust, 29,664 shares at cost (1,214) -
Other equity 42,666 47,319
Retained earnings (accumulated deficit) 17,998 (6,259)
Accumulated other comprehensive loss (4,414) (3,147)
------ ------
Total shareholders' equity 433,283 382,775
------- -------
Total liabilities and shareholders' equity $727,118 $621,533
======== ========
IMAX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
In accordance with United States Generally Accepted Accounting Principles
(In thousands of U.S. dollars)
(Unaudited)
Six Months
Ended June 30,
--------------
2015 2014
---- ----
Cash provided by (used in):
Operating Activities
Net income $27,865 $14,358
Net income from discontinued
operations - (355)
Adjustments to reconcile net income to
cash from operations:
Depreciation and amortization 20,724 15,945
Write-downs, net of recoveries 1,457 1,579
Change in deferred income taxes 2,232 2,789
Stock and other non-cash
compensation 10,861 8,090
Unrealized foreign currency
exchange loss 851 64
Loss from equity-accounted
investments 1,923 574
Gain on non-cash contribution to
equity-accounted investees (740) -
Investment in film assets (7,404) (5,147)
Changes in other non-cash operating
assets and liabilities (39,271) (3,219)
Net cash provided by operating
activities from discontinued
operations - 572
--- ---
Net cash provided by operating
activities 18,498 35,250
Investing Activities
Purchase of property, plant and
equipment (34,920) (16,581)
Investment in joint revenue sharing
equipment (11,613) (10,801)
Acquisition of other intangible assets (2,972) (970)
------ ----
Net cash used in investing
activities (49,505) (28,352)
Financing Activities
Issuance of subsidiary shares to a non-
controlling interest 40,000 40,491
Share issuance costs from the issuance
of subsidiary shares to a non-
controlling interest (2,000) (3,556)
Common shares issued -stock options
exercised 22,850 2,657
Increase in bank indebtedness 17,568 -
Credit facility amendment fees paid (1,161) -
Treasury stock purchased for future
settlement of restricted share units (1,214) -
Settlement of restricted share units (4,988) (790)
Net cash provided by financing
activities 71,055 38,802
Effects of exchange rate changes on
cash (168) (159)
---- ----
Increase in cash and cash equivalents
during the period 39,880 45,541
Cash and cash equivalents, beginning of
period 106,503 29,546
------- ------
Cash and cash equivalents,
end of period $146,383 $75,087
======== =======
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 includes the design, manufacture, sale or lease of IMAX theater projection system equipment. The theater system maintenance segment includes the maintenance of IMAX theater projection system equipment in the IMAX theater
network. The joint revenue sharing arrangements segment includes the provision of IMAX theater projection system equipment to an exhibitor in exchange for a share of the box-office and concession revenues. The film production and IMAX DMR segment
includes the production of films and the performance of film re-mastering services. The film distribution segment includes the distribution of 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 Ended June 30, Six Months Ended June 30,
--------------------------- -------------------------
2015 2014 2015 2014
---- ---- ---- ----
Revenue
IMAX Theater Systems
IMAX Systems
Sales and sales-type leases $18,674 $14,478 $27,289 $18,985
Ongoing rent, fees, and finance income 3,691 3,518 7,190 6,771
Other 4,674 3,730 8,099 5,242
----- ----- ----- -----
27,039 21,726 42,578 30,998
------ ------ ------ ------
Theater system maintenance 9,158 8,673 18,008 16,868
Joint revenue sharing arrangements 31,594 19,363 47,462 30,219
Film
Production and IMAX DMR 36,603 24,050 54,279 39,235
Film distribution and post-production 2,766 5,333 7,044 10,022
39,369 29,383 61,323 49,257
------ ------ ------ ------
Total $107,160 $79,145 $169,371 $127,342
======== ======= ======== ========
Gross margin
IMAX Theater Systems
IMAX systems(1)
Sales and sales-type leases $10,038 $8,255 $14,945 $9,914
Ongoing rent, fees, and finance income 3,499 3,334 6,777 6,448
Other (114) 454 (154) 16
---- --- ---- ---
13,423 12,043 21,568 16,378
------ ------ ------ ------
Theater system maintenance 3,089 2,781 6,370 5,782
Joint revenue sharing arrangements(1) 24,069 13,378 34,686 20,661
Film
Production and IMAX DMR(1) 28,488 18,634 41,713 29,708
Film distribution and post-production (34) 958 679 1,673
28,454 19,592 42,392 31,381
------ ------ ------ ------
Total $69,035 $47,794 $105,016 $74,202
======= ======= ======== =======
(1) IMAX systems include marketing and
commission costs of $0.6 million
and $0.9 million for the three
and six months ended June 30,
2015, respectively (2014 -$0.7
million and $0.9 million,
respectively). Joint revenue
sharing arrangements segment
margins include advertising,
marketing and commission costs of
$1.3 million and $1.4 million for
the three and six months ended
June 30, 2015, respectively (2014
-$1.0 million and $1.2 million,
respectively). Production and DMR
segment margins include marketing
costs of $3.6 million and $4.9
million for the three and six
months ended June 30, 2015,
respectively (2014 -$2.0 million
and $3.2 million, respectively).
Distribution segment margins
include marketing costs of less
than $0.1 million and cost
recovery of $0.1 million for the
three and six months ended June
30, 2015, respectively (2014 -
$0.2 million and $0.4 million,
respectively).
IMAX CORPORATION
OTHER INFORMATION
(in thousands of U.S. dollars)
Non-GAAP Financial Measures:
In this release, the Company presents adjusted net income, adjusted net income per diluted share, 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 U.S. GAAP. The Company presents adjusted net income and adjusted net income 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. In addition, the Company presents 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 financial results and could potentially distort the analysis of trends in business performance and it wants to ensure that its investors fully understand the
impact of net income attributable to non-controlling interests and its stock-based compensation (net of any related tax impact) in determining 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 net income, adjusted net income per diluted share, 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 net income attributable to common shareholders and other measures of financial performance reported in accordance with U.S.
GAAP.
The Credit Facility provides that the Company will be required at all times to satisfy a Minimum Liquidity Test (as defined in the Credit Agreement) of at least $50 million. The Company will also be required to maintain minimum EBITDA (as defined in the Credit Agreement) of
$90.0 million until December 30, 2015, 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 2.5:1.0 until December 30, 2015, which requirement decreases to
(i) 2.25:1.0 on December 31, 2015; (ii) 2.0:1.0 on December 31, 2016; and (iii) 1.75:1.0 on December 31, 2017. The ratio of total debt to EBITDA was 0.17:1 as at June 30, 2015, 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 $22.3 million. EBITDA is calculated as follows:
For the For the
3 months ended 12 months ended
June 30, 2015 June 30, 2015(1)
------------- ---------------
(In thousands of U.S Dollars)
Net income $26,380 $55,676
Add (subtract):
Loss from equity accounted investments 749 1,830
Provision for income taxes 9,256 18,918
Interest expense, net of interest income 144 227
Depreciation and amortization, including film asset amortization 10,861 37,876
Write-downs net of recoveries including asset impairments and receivable provisions 1,329 5,172
Stock and other non-cash compensation 5,195 18,238
EBITDA attributable to non-controlling interests(2) (3,538) (8,519)
$50,376 $129,418
======= ========
(1) Ratio of funded 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 June 30, 2015 vs. 2014:
The Company reported net income of $26.4 million or $0.37 per basic share and $0.36 per diluted share for the second quarter of 2015, as compared to $13.8 million or $0.20 per basic and diluted share for the second quarter of 2014. Adjusted net income, which consists of net
income excluding the impact of stock-based compensation and the related tax impact, was $30.7 million or $0.42 per diluted share for the second quarter of 2015 as compared to adjusted net income of $17.7 million or $0.26 per diluted share for the second quarter of 2014.
Adjusted net income attributable to common shareholders, which consists of net income attributable to common shareholders excluding the impact of stock-based compensation and the related tax impact, was $28.7 million or $0.40 per diluted share for the second quarter of 2015 as
compared to adjusted net income attributable to common shareholders of $17.2 million or $0.25 per diluted share for the second quarter of 2014. A reconciliation of net income and net income attributable to common shareholders, the most directly comparable U.S. GAAP measures, to
adjusted net income, adjusted net income per diluted share, adjusted net income attributable to common shareholders and adjusted net income attributable to common shareholders per diluted share is presented in the table below:
Three Months Ended Three Months Ended
June 30, 2015 June 30, 2014
------------- -------------
Net Income Diluted EPS Net Income Diluted EPS
---------- ----------- ---------- -----------
Reported net income $26,380 $0.36 (1) $13,779 $0.20 (1)
Adjustments:
Stock-based compensation 5,103 0.07 4,715 0.07
Tax impact on items listed above (740) (0.01) (828) (0.01)
Adjusted net income 30,743 0.42 (1) 17,666 0.26 (1)
Net income attributable to non-controlling interests (2,030) (0.02) (472) (0.01)
Adjusted net income attributable to common shareholders $28,713 $0.40 (1) $17,194 $0.25 (1)
======= ===== ======= =====
Weighted average diluted shares outstanding 71,688 69,452
====== ======
(1) Includes impact of $0.3 million (2014 ? $0.1 million) of accretion charges associated with redeemable Class C
shares of IMAX China.
Adjusted Net Income and Adjusted Diluted Per Share Calculations - Six Months Ended June 30, 2015 vs. 2014:
The Company reported net income of $27.9 million or $0.39 per basic share and $0.38 per diluted share for the six months ended June 30, 2015, as compared to $14.4 million or $0.21 per basic and diluted share for the six months ended June 30, 2014. Adjusted net income, which consists of
net income excluding the impact of stock-based compensation and the related tax impact, was $36.8 million or $0.51 per diluted share for the six months ended June 30, 2015 as compared to adjusted net income of $20.9 million or $0.30 per diluted share for the six months ended June 30,
2014. 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 $33.7 million, or $0.47 per diluted share, in the six months ended June 30, 2015,
as compared to adjusted net income attributable to common shareholders of $20.4 million, or $0.29 per diluted share, for the six months ended June 30, 2014. 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:
Six Months Six Months
Ended June 30, 2015 Ended June 30, 2014
------------------- -------------------
Net Income Diluted EPS Net Income Diluted EPS
---------- ----------- ---------- -----------
Reported net income $27,865 $0.38 (1) $14,358 $0.21
(1)
Adjustments:
Stock-based compensation 10,678 0.15 7,903 0.11
Tax impact on items listed above (1,702) (0.02) (1,343) (0.02)
Adjusted net income 36,841 0.51 (1) 20,918 0.30 (1)
Net income attributable to non-controlling interests (3,124) (0.04) (472) (0.01)
Adjusted net income attributable to common shareholders $33,717 $0.47 (1) $20,446 $0.29 (1)
======= ===== ======= =====
Weighted average diluted shares outstanding 71,349 69,448
====== ======
(1) Includes impact of $0.5
million (2014 ? $0.1 million)
of accretion charges
associated with redeemable
Class C shares of IMAX China.
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
For the
6 months ended
June 30, 2015
-------------
(In thousands of U.S. Dollars)
Net cash provided by
operating activities $18,498
Net cash used in investing activities
(49,505)
-------
Free cash flow $(31,007)
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SOURCE IMAX Corporation
