Workflow
IMAX Q4 Earnings Miss, Revenues Rise Y/Y on Box Office Gain
IMAXIMAX(IMAX) ZACKS·2025-02-20 16:35

Core Insights - IMAX Corporation reported fourth-quarter 2024 adjusted earnings of 27 cents per share, missing the Zacks Consensus Estimate by 6.9% but showing a year-over-year increase of 58.8% [1] - Total revenues for the quarter were 92.6million,whichmissedtheZacksConsensusEstimateby11.5692.6 million, which missed the Zacks Consensus Estimate by 11.56% but increased by 7.7% year over year [1] Revenue Breakdown - Category-wise, revenues from Image Enhancement & Maintenance Services, technology rentals, and finance income increased by 20.4%, 6.5%, and 34% year over year, reaching 42.7 million, 13.7million,and13.7 million, and 2.9 million, respectively [2] - Technology sales revenues decreased by 6.2% year over year to 33.1million[2]SegmentPerformance−ContentSolutionsrevenuesroseby33.633.1 million [2] Segment Performance - Content Solutions revenues rose by 33.6% year over year to 25.5 million, driven by higher box office performance, including a record Thanksgiving weekend box office of 24million[3]−TechnologyProductsandServicesrevenuesincreasedby2.524 million [3] - Technology Products and Services revenues increased by 2.5% year over year to 64.04 million, supported by higher box office-related rental revenues [4] - All Other revenues declined by 29.7% year over year to 3.11million[4]BoxOfficePerformance−Thefourth−quarterboxofficereached3.11 million [4] Box Office Performance - The fourth-quarter box office reached 204 million, a 20% increase year over year, contributing to near-record annual domestic box office figures [6] - Top-grossing titles included Gladiator 2 and Venom: The Last Dance, each earning 31million[6]SystemInstallationsandNetworkGrowth−IMAXinstalled58systemsinthefourthquarterof2024,comparedto69systemsinthesamequarterof2023,totaling146installationsfortheyear[8]−AsofDecember31,2024,IMAXoperated1,807systemsacross90countries,withamarketpenetrationof4831 million [6] System Installations and Network Growth - IMAX installed 58 systems in the fourth quarter of 2024, compared to 69 systems in the same quarter of 2023, totaling 146 installations for the year [8] - As of December 31, 2024, IMAX operated 1,807 systems across 90 countries, with a market penetration of 48% in the addressable market of 3,619 locations [9] Financial Metrics - Gross margin expanded by 140 basis points to 52.2% in the fourth quarter, with Content Solutions gross margin contracting to 46.4% and Technology Products and Services gross margin expanding to 53.4% [12] - Adjusted EBITDA increased by 48.6% year over year to 34.2 million [12] - Operating income surged by 247.3% year over year to 9.51million[13]CashFlowandLiquidity−Netcashprovidedbyoperatingactivitiesfor2024was9.51 million [13] Cash Flow and Liquidity - Net cash provided by operating activities for 2024 was 71 million, up from 59millionintheprioryear[14]−AsofDecember31,2024,IMAXhadavailableliquidityof59 million in the prior year [14] - As of December 31, 2024, IMAX had available liquidity of 418 million, including cash and cash equivalents of 101million[15]ShareRepurchaseProgram−IMAXrepurchased1,166,370commonsharesatanaveragepriceof101 million [15] Share Repurchase Program - IMAX repurchased 1,166,370 common shares at an average price of 13.99, totaling 16millionfortheyear[17]−Thecompanyisauthorizedtorepurchaseupto16 million for the year [17] - The company is authorized to repurchase up to 400 million of its common shares, with approximately 151millionremaining[18]FutureGuidance−IMAXanticipatesarecordboxofficeofover151 million remaining [18] Future Guidance - IMAX anticipates a record box office of over 1.2 billion in 2025, with an adjusted EBITDA margin of over 40% and system installations projected between 145 to 160 [19]