IMAX reports first quarter results, shows a challenging year for films

 
The IMAX Corporation reported their first quarter 2013 revenues. The company reported a loss of a little over $3 million from sales and sales-type leases compared to last year.
 
IMAX reported an income of $49.9 million, with an adjusted net income of $5.6 million, or $0.08 per diluted share, and reported net income of $2.9 million, or $0.04 per diluted share.
 
IMAX Chief Executive Officer Richard L. Gelfond stated, “In the first quarter, we continued to execute against our three main Company priorities for the year – Penetration, Differentiation, and Scale”. The CEO continued, “We expect these to be key drivers of our long-term growth, while supporting our results in the near-term, and we are excited about the promising upcoming lineup of films in IMAX, particularly in the second quarter.”
 
There are 738 systems now in place in the IMAX theatre network as of March 31, 2013. Of that 738, 606 are considered “commercial multiplexes”. In the first-quarter alone, IMAX signed contracts for 25 theatre systems, of which 17 were in new theatre locations and 8 were additional signings for laser systems and conversion of some of the Company’s film theatres to digital systems in existing theatre locations.
 
“We are very pleased that we continue to penetrate different countries around the world, strengthening our presence in some and building strong theatres in new markets to catalyze future growth in others,” Gelfond continued. “Our one-of-a-kind, end-to-end entertainment solution is driving demand from exhibitor and studio partners from around the world, who have seen the value of being in the IMAX business. We remain optimistic as our growth opportunity in underpenetrated international regions, combined with our ability to program each of those markets individually, continues to position IMAX as a unique player in the global entertainment industry.”
 
In the report revenue from sales and sales-type leases dropped to $9.8 million in the first quarter of 2013, when compared to the $12.9 million the company earned in the same quarter last year. IMAX also installed five digital system upgrades under “sales or sales-type lease arrangements” in the first quarter of 2013, that is only half of the systems the company upgraded in the same quarter of 2012.
 
On the upside, IMAX had 319 theatres operating under “joint revenue-sharing arrangements” as of March 31, 2013, that’s up from 265 theatres in Q1 2012. IMAX DMR (Digital Re-Mastering) revenues rose to $14.4 million in the first quarter of 2013, up from to $13.8 million in the first quarter of 2012. Gross box office from DMR titles was $128.7 million in the first quarter of 2013, compared to $121.7 million in the prior-year period. The average global DMR box office per screen in the first quarter of 2013 was $212,900, compared to $247,600 in the prior-year period.
 
“Looking ahead, the heart of the summer box office season kicks into gear this week including the release of the IMAX 3D version of Iron Man 3, followed by Star Trek: Into Darkness, Man of Steel and an international only release of Fast & Furious 6, providing a strong foundation for our full portfolio of films this year,” Gelfond concluded. “We have secured many key tentpole films for the remainder of 2013, as well as 2014 and beyond, including Christopher Nolan’s Interstellar and Michael Bay’s Transformers 4, both of which will be captured with IMAX cameras, demonstrating the ongoing desire of studios and filmmakers to leverage the IMAX platform to bring audiences the most immersive entertainment experiences that they cannot get anywhere else.”
 
photo credit: Thomas Hawk