IMAX Corporation Reports First-quarter 2016 Financial Results
IMAX Corporation Reports First-quarter 2016 Financial Results
IMAX China Business Metrics Summary
GREATER CHINA HIGHLIGHTS
- Greater China box office of $83.4 million in the first quarter was up 33% over the first quarter of 2015; Mainland China box office increased 39% on a local currency basis
- Revenues increased 40% from prior-year period to $24.9 million, resulting from strong box office and 34% growth in our commercial network
- Per Screen Average of $290,000 relatively consistent with prior year period and a significant accomplishment given strong network growth
SHANGHAI, April 21, 2016 /PRNewswire/ -- IMAX China Holding Inc. (HKSE: 1970) today announced its controlling shareholder, IMAX Corporation (NYSE: IMAX), reportted first-quarter 2016 Greater China revenues of $24.9 million, up from $17.8 million in the year ago period. IMAX Corporation also reported a first-quarter Greater China per-screen average of $290,000, which is relatively consistent with the $295,400 the Company achieved in Q1 2015, despite significant network growth over the same period.
"Momentum from last year has definitely carried into the first quarter of 2016," stated Rich Gelfond, Chairman of IMAX China. "We grew box office 33% and saw a per screen average in-line with the first quarter last year, despite having grown the commercial network over 34% over the same period." Mr. Gelfond continued, "Our growing network, consistent per screen averages and robust signings in the quarter, are a testament to the demand for IMAX in China. With such an exciting film slate still to come, we believe we are well positioned to take advantage of what should be another exciting year for IMAX in China."
Network Growth Update
The IMAX theatre network in Greater China consisted of 312 systems as of March 31, 2016, of which 295 were in commercial multiplexes. Of this, the Company currently has 180 theatres operating under joint revenue sharing arrangements and 115 under sales type arrangements. Theatre signings grew 171% in the quarter and contributed to the 227 theatres in backlog as of March 31, 2016, of which 155 were for revenue sharing arrangements. Current quarter backlog grew both on an annual as well as sequential basis from December 31, 2015 as a result of new signings activity exceeding installations in the quarter. The Company also installed 5 theatres in new locations in the first quarter of 2016, which is consistent with the installations recognized in the first quarter of 2015.
Greater China Key Metrics
Three Months ended March 31,
IMAX Greater China Box Office $83.4 million $62.9 million
IMAX Greater China Per Screen Avg. $290,000 $295,400
Greater China Theatre Installations 7 (1) 5
Greater China Backlog 227 219
Greater China Network:
Commercial Multiplex 295 220
Institution 17 19
Total 312 239
(1) Includes two upgrades to laser-based digital technology.
Our controlling shareholder, IMAX Corporation, will host a conference call today at 8:30 AM ET to discuss its first-quarter 2016 financial results. To access the call via telephone, interested parties in the US and Canada should dial (800) 505-9568 approximately 5 to 10 minutes before the call begins. International callers should dial (416) 204-9271. The conference ID for the call is 1374767. 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 1374767.
About IMAX China
IMAX China is a subsidiary of IMAX Corporation, and is incorporated under the laws of Cayman Islands. IMAX China was established by IMAX Corporation specifically to oversee the expansion of IMAX's business throughout Greater China. IMAX China trades on the Hong Kong Stock Exchange under the stock code "HK.1970."
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 Mar. 31, 2016, there were 1,066 IMAX theatres (952 commercial multiplexes, 17 commercial destinations and 97 institutions) in 68 countries. On Oct. 8, 2015, shares of IMAX China, a subsidiary of IMAX Corp., began trading on the Hong Kong Stock Exchange under the stock code "HK.1970."
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, references to future capital expenditures (including the amount and nature thereof), business and technology strategies and measures to implement strategies, competitive strengths, goals, expansion and growth of business, operations and technology, plans and references to the future success of IMAX Corporation together with its consolidated subsidiaries (the "Company") and expectations regarding the Company's future operating, financial and technological results. These forward-looking statements are based on certain assumptions and analyses made by the Company in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate in the circumstances. However, whether actual results and developments will conform with the expectations and predictions of the Company is subject to a number of risks and uncertainties, including, but 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 cyber-security; risks related to the Company's inability to protect its 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; 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.
SOURCE IMAX China
CONTACT: IMAX Corporation, 2525 Speakman Drive, Mississauga, Ontario, Canada L5K 1B1, +1-905- 403-6500, fax +1-905-403-6450, Investors: Jessica Kourakos, +1-212-821-0100, email@example.com and Michael Mougias, +86-139-1802-2074, firstname.lastname@example.org or Media: Ann Sommerlath, +1-212-821-0155, email@example.com or Business Media: Sloane & Company, New York, Whit Clay, +1-212-446-1864, firstname.lastname@example.org or Entertainment Media: Principal Communications Group, Los Angeles, Melissa Zuckerman and Paul Pflug, +1-323-658-1555, email@example.com, firstname.lastname@example.org
Web Site: http://www.imax.com