Financial Data and Key Metrics Changes - For Q4 2024, adjusted EBITDA increased by 48% to $37 million, and adjusted EPS rose by 59% to $0.27 per share [14][44] - Full year revenues for 2024 reached $352 million, with adjusted EBITDA of $139 million, resulting in an adjusted EBITDA margin of 39% [38] - Operating cash flows improved by 21% year-over-year to $71 million [45] Business Line Data and Key Metrics Changes - Content Solutions revenues for Q4 2024 grew by 34% year-over-year to $26 million, driven by strong box office performance [40] - Technology Products and Services revenues for Q4 2024 were $64 million, up 2% year-over-year [41] - System installations totaled 146 systems in 2024, with 57% under joint revenue sharing arrangements [39] Market Data and Key Metrics Changes - The Chinese New Year slate in 2025 has already surpassed $120 million, significantly exceeding the previous record of $66 million in 2023 [24] - IMAX's global market share increased from approximately 2.5% pre-pandemic to 3.1% globally and from 3% to 4.5% domestically [18] - The average indexing on Hollywood titles in China increased to 15%, up from 9% five years ago [27] Company Strategy and Development Direction - The company aims for 2025 to be its best year ever at the global box office, projecting over $1.2 billion in IMAX grosses [16] - IMAX is focusing on expanding its global network and diversifying its content portfolio, including partnerships with Netflix and Apple [19][20] - The company is optimistic about the growth potential in China, with a strong slate of local language films and increased production budgets [29][50] Management's Comments on Operating Environment and Future Outlook - Management noted a significant turnaround in the Chinese box office, with a strong start to 2025 and expectations for continued growth [14][50] - The company highlighted the importance of strong relationships with studios and filmmakers, which are driving demand for IMAX releases [12][58] - Management expressed confidence in the long-term growth trajectory, supported by a robust film slate and expanding market presence [56][57] Other Important Information - The company has renewed its partnership with Wanda and is expanding its IMAX with laser technology in AMC locations [30] - IMAX's cash position improved to $101 million, up from $76 million at the end of 2023, while debt increased to $269 million [46][47] - The company is focused on operational efficiencies and cost management to enhance profitability [55] Q&A Session Summary Question: Insights on screen count growth in North America versus China - Management indicated that while they guided for 145 to 160 installs, the impact on box office in any one region would not be material [62] Question: Most opportunistic markets for growth - Japan was highlighted as a strong market with ongoing signings, along with activity in Western Europe [64] Question: Thoughts on convertible notes maturing - Management is evaluating options for the convertible notes, which have a favorable interest rate and conversion price [68] Question: Details on the Netflix partnership for Narnia - The deal was complex, requiring alignment among various stakeholders, and is seen as a potential template for future collaborations [72][74] Question: Impact of Chinese New Year performance on market recovery - Management attributed the strong performance to a favorable mix of movies and pent-up demand, with expectations for continued growth [80][84] Question: Live event strategy amidst a strong film slate - The live event strategy is seen as complementary, bringing new audiences to IMAX and enhancing overall market share [98][101] Question: Adjusted EBITDA margin guidance sources - The margin growth is expected to come from a mix of operational efficiencies and revenue growth, with significant operating leverage anticipated [104][106] Question: Renewal of screen relationships and pricing opportunities - Management indicated that renewals are ongoing, with a focus on upgrading technology to enhance box office performance [110][112] Question: Demand for IMAX and negotiating leverage with studios - The company is leveraging its strong market position to enhance marketing visibility and negotiate better terms with studios [114][116]

Core Insights - Imax reported revenue of $92.67 million for Q4 2024, a year-over-year increase of 7.7%, with EPS of $0.27 compared to $0.17 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate by 11.56%, while the EPS also missed the consensus estimate by 6.90% [1] Financial Performance - Total IMAX System installations were 58, below the average estimate of 62 [4] - Total System Network reached 1,807, slightly above the estimated 1,776 [4] - Revenue from Content Solutions was $25.51 million, compared to the average estimate of $28.72 million, reflecting a year-over-year increase of 33.6% [4] - Revenue from All Other segments was $3.12 million, significantly below the estimate of $4.66 million, showing a year-over-year decline of 29.7% [4] - Revenue from Technology Products and Services was $64.04 million, below the average estimate of $71.40 million, with a year-over-year increase of 2.5% [4] Gross Margin Analysis - Gross Margin for Content Solutions was $11.84 million, compared to the average estimate of $15.82 million [4] - Gross Margin for All Other segments was $2.31 million, below the average estimate of $5.61 million [4] - Gross Margin for Technology Products and Services was $34.22 million, compared to the average estimate of $38.01 million [4] Stock Performance - Imax shares returned +16.2% over the past month, outperforming the Zacks S&P 500 composite's +2.4% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market [3]

分组1 - Imax reported quarterly earnings of $0.27 per share, missing the Zacks Consensus Estimate of $0.29 per share, but showing an increase from $0.17 per share a year ago, resulting in an earnings surprise of -6.90% [1] - The company posted revenues of $92.67 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 11.56%, compared to year-ago revenues of $86.02 million [2] - Imax shares have increased approximately 5.6% since the beginning of the year, outperforming the S&P 500's gain of 4.2% [3] 分组2 - The current consensus EPS estimate for the coming quarter is $0.19 on revenues of $83.29 million, and for the current fiscal year, it is $1.24 on revenues of $417.5 million [7] - The Zacks Industry Rank for Film and Television Production and Distribution is currently in the top 13% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

I N V E S T O R P R E S E N T A T I O N F E B R U A R Y 2 0 2 5 F O R W A R D - L O O K I N G S T A T E M E N T S This presentation contains "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 or "forward-looking information" within the meaning of Canadian securities laws 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 ...

Film Production and Distribution - The Company released a total of 118 films in 2024, an increase of 20% from 98 films in 2023, including 40 Hollywood films and 61 local language films[48]. - The Company had distribution rights for approximately 62 films covering various subjects as of December 31, 2024[54]. - The Company expects to release at least 12 Filmed for IMAX titles in 2025, with 31 additional titles already announced for the year[52]. - The Company expanded its international film strategy by supplementing Hollywood films with local language films in markets like China, Japan, and India[46]. IMAX Systems and Technology - The IMAX network had 607 IMAX Laser Systems and 1,178 IMAX Xenon Systems as of December 31, 2024, with a backlog of 250 new Laser Systems and 105 new Xenon Systems[64]. - The Company had a footprint of 265 connected locations in the IMAX network, capable of delivering live and interactive events[55]. - The number of commercial multiplex IMAX Systems increased to 1,735 as of December 31, 2024, compared to 1,693 in 2023, indicating a growth of about 2.5%[86]. - The company estimates a worldwide commercial multiplex addressable market of 3,619 locations, with a current market penetration of only 48%[82]. - The Company continues to evolve its platform for innovative IMAX events, including live coverage of the 2024 Paris Olympics Opening Ceremony[60]. - The IMAX Film Remastering process enhances films for IMAX formats, providing up to 26% more image on standard IMAX screens[46]. - More than 300 IMAX Enhanced titles have been released across five major streaming platforms, with over 15 million certified devices estimated to be in use as of December 31, 2024[79]. - The company has focused significant R&D efforts on IMAX Laser Systems, which provide greater brightness and clarity while consuming less power compared to existing digital technology[102]. Financial Performance - Total revenues for 2024 were $352.2 million, a decrease of 6% from $374.8 million in 2023[465]. - Net income attributable to common shareholders for 2024 was $26.1 million, compared to $25.3 million in 2023, reflecting a slight increase of 3%[465]. - Cash and cash equivalents increased to $100.6 million in 2024, up from $76.2 million in 2023, representing a growth of 32%[469]. - Total assets rose to $830.4 million in 2024, compared to $814.7 million in 2023, marking an increase of 2%[463]. - Gross margin for 2024 was $190.2 million, down from $214.3 million in 2023, indicating a decline of 11%[465]. - Research and development expenses decreased to $5.1 million in 2024 from $10.1 million in 2023, a reduction of 49%[465]. - Total liabilities decreased to $452.2 million in 2024, down from $469.1 million in 2023, a decline of 4%[463]. - The company repurchased $17.9 million worth of common shares in 2024, compared to $26.8 million in 2023, a decrease of 33%[469]. - Net cash provided by operating activities increased to $70.8 million in 2024, up from $58.6 million in 2023, an increase of 21%[469]. Currency and Foreign Exchange - The company recorded a foreign exchange net loss of $1.2 million for the year ended December 31, 2024, compared to a loss of $0.7 million in 2023[432]. - The impact of foreign currency valuations led to a decrease in IMAX GBO of approximately $14 million in 2024 compared to the prior year's currency rates[429]. - The company has entered into foreign currency forward contracts to manage risks associated with currency volatility, meeting hedge accounting criteria[433]. - The notional value of foreign currency cash flow hedging instruments qualifying for hedge accounting was $48.4 million, an increase from $40.6 million in 2023[434]. Shareholder Equity and Comprehensive Income - As of December 31, 2024, IMAX Corporation's total shareholders' equity increased to $377.535 million from $344.931 million in 2023, representing a growth of approximately 9.5%[471]. - Comprehensive income attributable to common shareholders for 2024 was $21.5 million, compared to $23.1 million in 2023, a decrease of 7%[467]. - The balance of common shares repurchased and retired in 2024 was $7.770 million, a significant decrease from $25.056 million in 2023, indicating a reduction of approximately 69%[471]. Asset Management and Depreciation - Property, Plant and Equipment is depreciated over useful lives ranging from 3 to 25 years, depending on the asset type, with theater system components having a useful life of 7 to 20 years[498]. - Goodwill is tested annually for impairment, with indicators including stock price declines and changes in business outlook, and impairment losses are recognized when carrying values exceed fair values[505]. - Other intangible assets are amortized over useful lives of 3 to 20 years, with research and development costs capitalized until completion or abandonment[506]. Revenue Recognition and Accounting Policies - Revenue from sales arrangements is recognized upon transfer of control, which includes installation and training completion[525]. - The transaction price in IMAX System arrangements is allocated to distinct performance obligations based on estimated standalone selling prices, with maintenance services recognized on a straight-line basis[522]. - Deferred Revenue primarily consists of payments received for IMAX Systems where control has not yet transferred, and is recognized as revenue when performance obligations are satisfied[512].

Financial Performance - IMAX reported Q4 2024 Net Income of $5 million (+112% YoY) with a margin of 5.7% and EPS of 10 cents (+100% YoY) [6] - Full-Year 2024 Net Income reached $26 million (+3% YoY) at a margin of 7.4%, while Total Adjusted EBITDA was $139 million (-4% YoY) at a margin of 39.4% [6] - Q4 2024 Total Revenue was $92.7 million (+8% YoY), while Full-Year Revenue was $352.2 million (-6% YoY) [7] - Net income for Q4 2024 was $6.87 million, compared to $3.31 million in Q4 2023, with net income attributable to common shareholders increasing to $5.31 million from $2.54 million [31] - Basic net income per share for Q4 2024 was $0.10, up from $0.05 in Q4 2023, while diluted net income per share also increased to $0.10 from $0.05 [31] - Net income for the year ended December 31, 2024, was $32,702, a decrease of 1.1% from $33,066 in 2023 [35] - Total revenue for the year ended December 31, 2024, was $352,208, down 6.1% from $374,839 in 2023 [50] - Adjusted net income for the full year 2024 was $51,010,000, slightly down from $52,079,000 in 2023, reflecting a decrease of 2.1% [53] Cash Flow and Liquidity - Operating cash flow for the full year 2024 was $71 million (+21% YoY), reflecting improvements in working capital [13] - As of December 31, 2024, IMAX had available liquidity of $418 million, including cash and cash equivalents of $101 million [14] - Cash and cash equivalents as of December 31, 2024, were $100.59 million, an increase from $76.20 million in 2023 [33] - Net cash provided by operating activities increased to $70,837,000 in 2024 from $58,615,000 in 2023, marking a rise of 20.8% [54] - Free cash flow for 2024 was $29,621,000, compared to $25,780,000 in 2023, indicating a growth of 14.3% [54] System Installations and Backlog - IMAX achieved 146 system installations in 2024, at the high end of its guidance of 120 to 150 installations [6] - Total IMAX System Signings for Q4 2024 were 19, a decrease of 45.7% from 35 in Q4 2023, while total signings for the year were 130, slightly up from 129 in 2023 [27] - Total IMAX System Installations for Q4 2024 were 58, down from 69 in Q4 2023, with annual installations at 146, an increase from 128 in 2023 [28] - Total System Backlog as of December 31, 2024, was 440, a decrease from 450 in 2023, with Traditional JRSA backlog remaining stable at 182 [29] - The number of IMAX locations increased by 2.5% YoY to 1,735 systems, with a backlog of 440 IMAX systems as of the end of 2024 [15] Revenue Segments - Revenue from the Content Solutions segment for the year was $124,731, slightly down from $126,698 in 2023 [38] - Revenue from the Technology Products and Services segment decreased to $216,062 from $234,303, a decline of 7.8% [38] Shareholder Returns and Investments - The company repurchased 1,166,370 common shares in 2024 at an average price of $13.99, totaling $16 million [16] - The company reported share-based compensation of $22,454,000 for the full year 2024, consistent with $23,184,000 in 2023 [53] - The company repurchased common shares worth $17,855 during the year, compared to $26,823 in 2023 [35] - The company invested $24,341,000 in equipment for joint revenue sharing arrangements in 2024, compared to $18,000,000 in 2023, representing a 35.5% increase [54] Operational Efficiency - The company reported a gross margin of $48.37 million for Q4 2024, compared to $43.69 million in Q4 2023, reflecting improved operational efficiency [31] - The company reported a gross margin of $190,200 for the year, down from $214,341 in 2023 [50] - Total Adjusted EBITDA margin improved to 39.4% in 2024 from 38.4% in 2023 [50] - Research and development expenses for Q4 2024 were $1.15 million, down from $2.72 million in Q4 2023, indicating a focus on cost management [31] Other Financial Metrics - Total assets increased to $830.40 million in 2024 from $814.67 million in 2023, while total liabilities decreased to $452.18 million from $469.08 million [33] - Unrealized investment gains for 2024 were $(127,000), compared to $(558,000) in 2023, showing an improvement of 77.2% [53] - The company incurred restructuring and other charges of $3,749,000 in 2024, up from $2,688,000 in 2023, reflecting a 39.5% increase [53] - Weighted average diluted shares outstanding decreased to 53,864,000 in 2024 from 55,146,000 in 2023, a reduction of 2.3% [53]

Core Viewpoint - Imax is expected to report significant growth in earnings and revenues for the upcoming quarter, with analysts predicting a 70.6% increase in earnings per share and a 21.8% rise in revenues compared to the previous year [1]. Earnings Estimates - The consensus EPS estimate for Imax has been revised 7.1% higher in the last 30 days, indicating a collective reevaluation by analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate revisions and short-term stock performance [3]. Revenue Projections - Analysts forecast total revenues of $104.78 million for Imax, reflecting a year-over-year increase of 21.8% [1]. - Specific revenue estimates include: - 'Revenues- All other' at $4.66 million, a change of +5.1% from the previous year [4]. - 'Revenues- Technology Products and Services' at $71.40 million, indicating a +14.3% change [5]. - 'Revenues- Content Solutions' expected to reach $28.72 million, a +50.4% increase [5]. - 'Revenues- Technology Products and Services Revenue- Maintenance' at $15.56 million, +8.5% change [6]. - 'Revenues- Technology Products and Services Revenue- System Rentals' at $14.03 million, +8.3% change [6]. - 'Revenues- Content Solutions Revenue- Film Remastering and Distribution' at $22.95 million, +36.1% change [7]. - 'Revenues- Technology Products and Services Revenue- System Sales' at $40.13 million, +21.7% change [7]. System Installations and Margins - Analysts estimate 'Total IMAX System installations' to be 62, down from 69 a year ago [8]. - The 'Total System Network (IMAX systems)' is projected to reach 1,776, slightly up from 1,772 last year [8]. - Gross margin estimates include: - 'Gross Margin- Content solutions' at $15.82 million, compared to $9.71 million last year [8]. - 'Gross Margin- All Other' at $5.61 million, up from $4.10 million [9]. - 'Gross Margin- Technology Products and Services' at $38.01 million, compared to $29.88 million last year [9]. Stock Performance - Imax shares have shown a return of +16.3% over the past month, outperforming the Zacks S&P 500 composite's +4.7% change [9].

Core Viewpoint - Imax (IMAX) is anticipated to report a year-over-year increase in earnings driven by higher revenues, with the actual results being a significant factor influencing its near-term stock price [1][2]. Earnings Expectations - The upcoming earnings report is expected to be released on February 19, 2025, with a consensus estimate of $0.31 per share, reflecting an 82.4% increase year-over-year. Revenues are projected to reach $108.13 million, a 25.7% increase from the previous year [3][2]. Estimate Revisions - The consensus EPS estimate has been revised 7.14% higher in the last 30 days, indicating a reassessment by analysts regarding the company's earnings prospects [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate for Imax is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -37.77%, suggesting a bearish outlook from analysts [10][11]. Historical Performance - Imax has a history of beating consensus EPS estimates, having done so in the last four quarters, including a surprise of +59.09% in the most recent quarter where it reported earnings of $0.35 per share against an expectation of $0.22 [12][13]. Conclusion - Despite the historical performance of beating estimates, Imax does not currently appear to be a strong candidate for an earnings beat, and investors should consider other factors before making investment decisions [16].

Group 1: Company Performance - Imax has returned 68.2% year-to-date, significantly outperforming the average return of 13.9% for Consumer Discretionary companies [6] - The Zacks Consensus Estimate for Imax's full-year earnings has increased by 11.9% in the past quarter, indicating improved analyst sentiment and a more positive earnings outlook [6] - Imax holds a Zacks Rank of 2 (Buy), suggesting it has characteristics favorable for outperforming the market [5] Group 2: Industry Context - Imax is part of the Film and Television Production and Distribution industry, which consists of 7 companies and currently ranks 64 in the Zacks Industry Rank [7] - The average return for stocks in the Film and Television Production and Distribution industry is 22.1% this year, indicating that Imax is performing better than its industry peers [7] - In contrast, Kontoor Brands, another Consumer Discretionary stock, has returned 38.1% year-to-date, with a Zacks Rank of 2 (Buy) [3][5]

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...