0000921582FALSE00009215822024-07-252024-07-250000921582dei:OtherAddressMember2024-07-252024-07-25

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934

July 25, 2024

Date of report (Date of earliest event reported)

IMAX Corporation
(Exact Name of Registrant as Specified in Its Charter)


Canada001-3506698-0140269
(State or Other Jurisdiction
of Incorporation)
(Commission
File Number)
(I.R.S. Employer
Identification Number)

2525 Speakman Drive
902 Broadway, Floor 20
Mississauga, Ontario, Canada L5K 1B1
New York, New York, USA 10010
(905) 403-6457
(212) 821-0142

(Address of principal executive offices, zip code, telephone numbers)
N/A
(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class
Trading
Symbol(s)
Name of each exchange
on which registered
Common Shares, no par valueIMAXThe New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter):

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02    Results of Operations and Financial Condition

On July 25, 2024, IMAX Corporation (the “Company”) issued a press release announcing the Company’s financial and operating results for the quarter ended June 30, 2024, a copy of which is attached as Exhibit 99.1.

The information in this current report on Form 8-K, including the Exhibit attached hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01    Financial Statements and Exhibits

Exhibits

Exhibit
No.
Description
99.1
104Cover Page Interactive Data File (formatted as inline XBRL).

2

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

IMAX Corporation
(Registrant)
Date: July 25, 2024
By:/s/ Richard L. Gelfond
Name:Richard L. Gelfond
Title:Chief Executive Officer & Director
3

Exhibit 99.1
image_0a.jpg

IMAX CORPORATION REPORTS
SECOND QUARTER 2024 EARNINGS RESULTS

•Global entertainment platform delivers solid results, including Revenue of $89 million, Net Income of $3.6 million, EPS(1) of 7 cents, Total Adjusted EBITDA(2) of $31 million and Adjusted EPS(1) of 18 cents.

•Signings for new and upgraded IMAX systems grow to 87 (+89%) in the quarter; system installations climb to 24 (+20%) as Company raises installation guidance to 130 to 150 systems for full-year 2024 vs. 128 in full-year 2023

•June surge of film hits pushes quarterly Global Box Office to $196 million; third quarter off to strong start with “Twisters” and this weekend’s “Deadpool & Wolverine”

•Quarterly revenue bolstered by sale of IMAX original documentary “The Blue Angels” as Company further diversifies content portfolio and revenue mix

•Cash from Operations climbs to $35 million in the quarter, up significantly year-over-year from $5 million in the prior-year quarter


NEW YORK, NY — July 25, 2024 — IMAX Corporation (NYSE: IMAX) today reported financial results for the second quarter of 2024, demonstrating the value of its unique global entertainment platform and broad content portfolio.

“With the strikes — and the lingering effects of the pandemic — firmly behind us, we are in an excellent position to fully realize the benefits of our strong, asset-lite business model,” said Rich Gelfond, CEO of IMAX. “The second quarter offered strong evidence that we are at in inflection point in our business; we are on a tear with system sales activity, our system installations are up significantly, and the slate through 2026 is as strong as we’ve ever seen.”
“Several signs across our financial and operating performance in the second quarter underscore our building momentum — we beat consensus across most metrics, generated strong cash flow, delivered our most quarterly signings for IMAX systems in six years, and expect to install a higher number of IMAX systems in 2024 over the year prior.”
“We continue to grow our unique global network across key regions including India, the Middle East, and Southeast Asia, while fortifying our most important exhibition partnerships — including our deal with China’s Wanda Film, our biggest exhibition agreement in five years.”
“Our ongoing strategic network expansion will enable IMAX to fully capitalize on the tremendous film slate over the next several years — featuring new releases from some of our most successful filmmaking partners and studio franchises, as well as a record of at least 14 films shot with IMAX cameras in 2025.”


_______________
(1)Diluted Net Income Per Share
(2)Non-GAAP Financial Measure. See the discussion at the end of this earnings release for a description of the non-GAAP financial measures used herein, as well as reconciliations to the most comparable GAAP amounts.

1

Second Quarter Financial Highlights

Three Months Ended
Six Months Ended
June 30,June 30,
In millions of U.S. Dollars, except per share data20242023YoY %
Change		20242023YoY %
Change
Total Revenue$89.0 $98.0 (9 %)$168.1 $184.9 (9 %)
Gross Margin$43.9 $57.9 (24 %)$90.8 $107.9 (16 %)
Gross Margin (%)49.4 %59.1 %54.0 %58.4 %
Total Adjusted EBITDA(1)(2)
$31.0 $35.9 (14 %)$63.1 $68.3 (8 %)
Total Adjusted EBITDA Margin (%)(1)(2)
34.8 %36.7 %37.5 %36.9 %
Net Income(3)
$3.6 $8.4 (57 %)$6.9 $10.8 (37 %)
Diluted Net Income Per Share(3)
$0.07 $0.15 (53 %)$0.13 $0.20 (35 %)
Adjusted Net Income(1)(3)
$9.7 $14.4 (33 %)$17.7 $23.4 (24 %)
Adjusted Earnings Per Share(1)(3)
$0.18 $0.26 (31 %)$0.33 $0.42 (21 %)
Weighted average shares outstanding (in millions):
Basic52.6 54.6 (4 %)52.6 54.3 (3 %)
Diluted53.4 55.3 (3 %)53.4 55.1 (3 %)
image_1a.jpg
(1)Non-GAAP Financial Measure. See the discussion at the end of this earnings release for a description of the non-GAAP financial measures used herein, as well as reconciliations to the most comparable GAAP amounts.
(2)Total Adjusted EBITDA is before adjustments for non-controlling interests. Total Adjusted EBITDA per Credit Facility attributable to common shareholders, excluding non-controlling interests, was $26.9 million and $55.0 million for each of the three and six months ended June 30, 2024 (2023 - $32.8 million and $60.1 million).
(3)Attributable to common shareholders.

2

Second Quarter Segment Results(1)

Content SolutionsTechnology Products and Services
  Revenue    
 Gross Margin
Gross
  Margin %
  Revenue    
 Gross Margin
Gross
  Margin %
2Q24$35.1 $16.1 46 %$50.9 $25.8 51 %
2Q2331.3 20.0 64 %64.0 36.4 57 %
% change
12 %(19 %)(20 %)(29 %)
YTD24$69.1 $38.2 55 %$94.0 $49.4 52 %
YTD2363.4 38.0 60 %115.6 66.3 57 %
% change
9 %1 %(19 %)(26 %)
image_1a.jpg
(1)Please refer to the Company’s Form 10-Q for the period ended June 30, 2024 for additional segment information.

Content Solutions Segment

•Content Solutions revenues of $35 million increased 12% year-over-year. The sale of the commercial and streaming rights of “The Blue Angels” documentary more than offset the Hollywood strike impacted lower IMAX gross box office in Q2 2024 of $196 million compared to $268 million in Q2 2023.

•Gross margin for Content Solutions was $16 million and decreased 19% compared to the second quarter of the prior year period driven by the lower box office and the mix of revenues.

Technology Products and Services Segment

•Technology Products and Services revenues and gross margin decreased 20% year-over-year to $51 million and 29% year-over-year to $26 million, respectively, which reflects the lower box office tied rental revenues as well as fewer sale/hybrid installations and a lower contribution from amendments and renewals.

•During the second quarter the Company installed 24 systems compared to 20 systems in the second quarter of 2023. Of those, 10 systems were under sales and hybrid JRSA arrangements, compared to 13 systems in the prior year.

•Commercial network growth accelerated with the number of IMAX locations increasing 4% year-over-year to 1,705. The Company ended Q2 2024 with a backlog of 504 IMAX systems.

Operating Cash Flow and Liquidity

Net cash provided by operating activities for the first half of 2024 was $24 million compared to $26 million in the prior year period. Second quarter 2024 net cash provided by operating activities was $35 million compared to $5 million in the prior year period with the increase reflecting timing of collections and improvements in working capital.

As of June 30, 2024, the Company’s available liquidity was $392 million. The Company’s liquidity includes cash and cash equivalents of $92 million, $246 million in available borrowing capacity under the Credit Facility, and $55 million in available borrowing capacity under IMAX China’s revolving facilities. Total debt, excluding deferred financing costs, was $287 million as of June 30, 2024.

In 2021, the Company issued $230.0 million of 0.500% Convertible Senior Notes due 2026 (“Convertible Notes”). In connection with the pricing of the Convertible Notes, the Company entered into privately negotiated capped call transactions with an initial cap price of $37.2750 per share of the Company’s common shares.

Share Count and Capital Return

The weighted average basic and diluted shares outstanding in the second quarter of 2024 were 52.6 million and 53.4 million, respectively, compared to 54.6 million and 55.3 million in the second quarter of 2023, a decrease of 3.6% and 3.4%, respectively.

3

During the first half of 2024 the Company repurchased 1,166,370 common shares at an average price of $13.99 for a total of $16 million, excluding commissions

On June 14, 2023, the Company announced a 3-year extension to its share-repurchase program through June 30, 2026. The current share-repurchase program authorizes the Company to repurchase up to $400 million of its common shares, of which approximately $151 million remains available.

Supplemental Materials

For more information about the Company’s results, please refer to the IMAX Investor Relations website located at investors.imax.com.

Investor Relations Website and Social Media

On a monthly basis, the Company posts quarter-to-date box office results on the IMAX Investor Relations website located at investors.imax.com. The Company expects to provide such updates within five business days of month-end, although the Company may change this timing without notice.

The Company may post additional information on the Company’s corporate and Investor Relations website which may be material to investors. Accordingly, investors, media and others interested in the Company should monitor the Company’s website in addition to the Company’s press releases, SEC filings and public conference calls and webcasts, for additional information about the Company.

Conference Call

The Company will host a conference call today at 8:30 AM ET to discuss its second quarter 2024 financial results. This call is being webcast and can be accessed at investors.imax.com. To access the call via telephone, interested parties please pre-register here:
https://register.vevent.com/register/BIaceefcc683494a839687115352a98934 and you will be provided with a dial-in number and unique pin. To avoid delays, we encourage participants to dial into the conference call ten minutes ahead of the scheduled start time. A replay of the call will be available via webcast at investors.imax.com.

4

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 systems to connect with audiences in extraordinary ways, making IMAX’s network 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 additional offices in London, Dublin, Tokyo, and Shanghai. As of June 30, 2024, there were 1,780 IMAX systems (1,705 commercial multiplexes, 12 commercial destinations, 63 institutional) operating in 89 countries and territories. Shares of IMAX China Holding, Inc., a subsidiary of IMAX Corporation, trade on the Hong Kong Stock Exchange under the stock code “1970”.

IMAX®, IMAX® 3D, Experience It In IMAX®, The IMAX Experience®, DMR®, Filmed For IMAX®, IMAX LIVETM, IMAX Enhanced®, IMAX StreamSmartTM, and SSIMWAVE® are trademarks and trade names of IMAX Corporation or its subsidiaries that are registered or otherwise protected under laws of various jurisdictions. For more information, visit www.imax.com. You can also connect with IMAX on Instagram (www.instagram.com/company/imax), Facebook (www.facebook.com/imax), LinkedIn (www.linkedin.com/company/imax), X (www.twitter.com/imax), and YouTube (www.youtube.com/imaxmovies).

For additional information please contact:

Investors:
IMAX Corporation, New York
Jennifer Horsley
212-821-0154
jhorsley@IMAX.com
Media:
IMAX Corporation, New York
Mark Jafar
212-821-0102
mjafar@imax.com




5

Forward-Looking Statements

This earnings 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. These forward-looking statements include, but are not limited to, references to business and technology strategies and measures to implement strategies, competitive strengths, goals, expansion and growth of business, operations and technology, future capital expenditures (including the amount and nature thereof), industry prospects and consumer behavior, 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, 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, as well as geopolitical conflicts; risks related to the Company’s growth and operations in China; the performance of IMAX remastered films and other films released to the IMAX network; the signing of IMAX System agreements; conditions, changes and developments in the commercial exhibition industry; risks related to currency fluctuations; the potential impact of increased competition in the markets within which the Company operates, including competitive actions by other companies; the failure to respond to change and advancements in technology; risks relating to consolidation among commercial exhibitors and studios; risks related to brand extensions and 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 and data privacy; risks related to the Company’s inability to protect the Company’s intellectual property; risks associated with the Company’s use of artificial intelligence and exploration of additional use cases of artificial intelligence; risks related to climate change; risks related to weather conditions and natural disasters that may disrupt or harm the Company’s business; risks related to the Company’s indebtedness and compliance with its debt agreements; general economic, market or business conditions; risks related to political, economic and social instability; the failure to convert system backlog into revenue; changes in laws or regulations; any statements of belief and any statements of assumptions underlying any of the foregoing; other factors and risks outlined in the Company’s periodic filings with the SEC; and other factors, many of which are beyond the control of the Company. Consequently, all of the forward-looking statements made in this earnings release are qualified by these cautionary statements, and actual results or anticipated developments by the Company may not be realized, and even if substantially realized, may not have the expected consequences to, or effects on, the Company. These factors, other risks and uncertainties and financial details are discussed in the Company’s most recent Annual Report on Form 10-K. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements, whether as a result of new information, future events or otherwise.




6

Primary Reporting Groups

The Company’s Chief Executive Officer (“CEO”) is its Chief Operating Decision Maker (“CODM”), as such term is defined under U.S. GAAP. The CODM assesses segment performance based on segment revenues and segment gross margins. Selling, general and administrative expenses, research and development costs, the amortization of intangible assets, provision for (reversal of) current expected credit losses, certain write-downs, interest income, interest expense, and income tax (expense) benefit are not allocated to the Company’s segments.

In the first quarter of 2023, the Company revised its internal segment reporting, including the information provided to the CODM to assess segment performance and allocate resources. Accordingly, the Company has two reportable segments:

(i)Content Solutions, which principally includes the digital remastering of films and other content into IMAX formats for distribution to the IMAX network. To a lesser extent, the Content Solutions segment also earns revenue from the distribution of large-format documentary films and exclusive experiences ranging from live performances to interactive events with leading artists and creators, as well as film post-production services.

(ii)Technology Products and Services, which includes results from the sale or lease of IMAX Systems, as well as from the maintenance of IMAX Systems. To a lesser extent, the Technology Product and Services segment also earns revenue from certain ancillary theater business activities, including after-market sales of IMAX System parts and 3D glasses.

Transactions between segments are valued at exchange value. Inter-segment profits are eliminated upon consolidation, as well as for the disclosures below.

7

IMAX Network and Backlog

Three Months Ended
Six Months Ended
June 30,June 30,
2024202320242023
System Signings(1):
Sales Arrangements25 26 30 41 
Traditional JRSA62 20 65 33 
Total IMAX System Signings87 46 95 74 
image_1a.jpg
(1) System signings include new signings of 19 in Q2 2024, 35 in Q2 2023, 27 in the first half of 2024 and 62 in the first half of 2023.

Three Months Ended
Six Months Ended
June 30,June 30,
2024202320242023
System Installations(1):
Sales Arrangements10 11 15 19 
Hybrid JRSA— 2 1 2 
Traditional JRSA14 7 23 8 
Total IMAX System Installations24 20 39 29 
image_1a.jpg
(1) System installations include new systems installations of 16 in Q2 2024, 14 in Q2 2023, 28 in the first half of 2024 and 21 in the first half of 2023.
As of June 30,
20242023
System Backlog:
Sales Arrangements177 193 
Hybrid JRSA101 109 
Traditional JRSA226 194 
Total System Backlog504 496 
As of June 30,
20242023
System Network:
Commercial Multiplex Systems
Sales Arrangements807 731 
Hybrid JRSA138 138 
Traditional JRSA760 769 
Total Commercial Multiplex Systems1,705 1,638 
Commercial Destination Systems12 12 
Institutional Systems63 68 
Total System Network1,780 1,718 

8

IMAX CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands of U.S. dollars, except per share amounts)

Three Months Ended
Six Months Ended
June 30,
June 30,
2024202320242023
Revenues
Technology sales
$20,420 $29,360 $28,324 $47,182 
Image enhancement and maintenance services
52,189 46,867 102,537 93,994 
Technology rentals
14,043 19,546 32,644 39,604 
Finance income
2,309 2,206 4,579 4,145 
88,961 97,979 168,084 184,925 
Costs and expenses applicable to revenues
Technology sales
9,222 13,771 13,989 21,003 
Image enhancement and maintenance services
29,089 19,739 50,284 42,824 
Technology rentals
6,723 6,582 12,995 13,160 
45,034 40,092 77,268 76,987 
Gross margin
43,927 57,887 90,816 107,938 
Selling, general and administrative expenses
37,564 38,906 68,821 73,054 
Research and development
2,031 2,762 4,218 4,617 
Amortization of intangible assets
1,321 1,147 2,664 2,221 
Credit loss expense, net
139 846 174 1,066 
Restructuring and executive transition costs
— — — 1,353 
Income from operations
2,872 14,226 14,939 25,627 
Realized and unrealized investment gains
32 28 62 72 
Retirement benefits non-service expense
(107)(78)(214)(155)
Interest income
561 693 1,095 1,100 
Interest expense
(2,282)(1,795)(4,227)(3,562)
Income before taxes
1,076 13,074 11,655 23,082 
Income tax benefit (expense)
3,997 (3,461)(1,162)(8,346)
Net income
5,073 9,613 10,493 14,736 
Net income attributable to non-controlling interests
(1,490)(1,262)(3,636)(3,931)
Net income attributable to common shareholders
$3,583 $8,351 $6,857 $10,805 
Net income per share attributable to common shareholders:
Basic and diluted
$0.07 $0.15 $0.13 $0.20 
Weighted average shares outstanding (in thousands):
Basic52,633 54,591 52,568 54,328 
Diluted53,428 55,320 53,386 55,145 
Additional Disclosure:
Depreciation and amortization$18,838 $13,878 $34,002 $27,198 
Amortization of deferred financing costs$493 $625 $985 $1,250 
9

IMAX CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands of dollars, except share amounts)

June 30,December 31,
20242023
Assets
Cash and cash equivalents$91,552 $76,200 
Accounts receivable, net of allowance for credit losses121,513 136,259 
Financing receivables, net of allowance for credit losses123,496 127,154 
Variable consideration receivables, net of allowance for credit losses69,927 64,338 
Inventories37,798 31,584 
Prepaid expenses11,786 12,345 
Film assets, net of accumulated amortization8,532 6,786 
Property, plant and equipment, net of accumulated depreciation237,781 243,299 
Other assets21,244 20,879 
Deferred income tax assets, net of valuation allowance16,099 7,988 
Goodwill52,815 52,815 
Other intangible assets, net of accumulated amortization34,856 35,022 
Total assets$827,399 $814,669 
Liabilities
Accounts payable$20,055 $26,386 
Accrued and other liabilities106,336 111,013 
Deferred revenue62,655 67,105 
Revolving credit facility borrowings, net of unamortized debt issuance costs53,132 22,924 
Convertible notes and other borrowings, net of unamortized discounts and debt issuance costs229,738 229,131 
Deferred income tax liabilities12,521 12,521 
Total liabilities484,437 469,080 
Commitments, contingencies and guarantees
Non-controlling interests657 658 
Shareholders’ equity
Capital stock common shares — no par value. Authorized — unlimited number.
52,676,567 issued and outstanding (December 31, 2023 — 53,260,276 issued and outstanding)
394,493 389,048 
Other equity176,632 185,087 
Statutory surplus reserve3,932 3,932 
Accumulated deficit
(293,889)(292,845)
Accumulated other comprehensive loss
(13,974)(12,081)
Total shareholders’ equity attributable to common shareholders
267,194 273,141 
Non-controlling interests75,111 71,790 
Total shareholders’ equity
342,305 344,931 
Total liabilities and shareholders’ equity
$827,399 $814,669 





10

IMAX CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands of dollars)

Six Months Ended
June 30,
20242023
Operating Activities
Net income
$10,493 $14,736 
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization
34,002 27,198 
Amortization of deferred financing costs
985 1,250 
Credit loss expense, net
174 1,066 
Write-downs, including asset impairments
2,399 474 
Deferred income tax benefit
(7,722)(3,279)
Share-based and other non-cash compensation
11,753 12,533 
Unrealized foreign currency exchange loss
51 175 
Realized and unrealized investment gain
(62)(72)
Changes in assets and liabilities:
Accounts receivable
14,492 9,531 
Inventories(6,271)(6,118)
Film assets
(12,741)(9,241)
Deferred revenue
(4,397)(3,255)
Changes in other operating assets and liabilities
(19,086)(19,143)
Net cash provided by operating activities
24,070 25,855 
Investing Activities
Purchase of property, plant and equipment
(2,690)(1,009)
Investment in equipment for joint revenue sharing arrangements
(9,757)(4,033)
Acquisition of other intangible assets
(3,191)(3,478)
Net cash used in investing activities
(15,638)(8,520)
Financing Activities
Revolving credit facility borrowings51,000 30,717 
Repayments of revolving credit facility borrowings(21,000)(38,886)
Repayments of other borrowings
(311)— 
Proceeds from other borrowings
— 315 
Repurchase of common shares(18,102)(4,011)
Taxes withheld and paid on employee stock awards vested(4,978)(6,458)
Dividends paid to non-controlling interests
— (1,438)
Net cash provided by (used in) financing activities
6,609 (19,761)
Effects of exchange rate changes on cash
311 291 
Increase (decrease) in cash and cash equivalents during period
15,352 (2,135)
Cash and cash equivalents, beginning of period
76,200 97,401 
Cash and cash equivalents, end of period
$91,552 $95,266 

11

Segment Revenue and Gross Margin

Three Months Ended
Six Months Ended
June 30,June 30,
(In thousands of dollars)2024202320242023
Revenue
Content Solutions$35,076 $31,290 $69,089 $63,391 
Technology Products and Services50,898 63,976 94,048 115,643 
Sub-total for reportable segments85,974 95,266 163,137 179,034 
All Other(1)
2,987 2,713 4,947 5,891 
Total$88,961 $97,979 $168,084 $184,925 
Gross Margin
Content Solutions$16,138 $19,996 $38,237 $37,991 
Technology Products and Services25,783 36,411 49,367 66,302 
Sub-total for reportable segments41,921 56,407 87,604 104,293 
All Other(1)
2,006 1,480 3,212 3,645 
Total$43,927 $57,887 $90,816 $107,938 
image_1a.jpg
(1)All Other includes the results from the Company’s streaming and consumer technology business, as well as other ancillary activities.











12

IMAX CORPORATION
NON-GAAP FINANCIAL MEASURES
(In thousands of U.S. dollars)

In this release, the Company presents adjusted net income attributable to common shareholders and adjusted net income attributable to common shareholders per basic and diluted share, EBITDA, Adjusted EBITDA per Credit Facility, Adjusted EBITDA margin as supplemental measures of the Company’s performance, which are not recognized under U.S. GAAP. Adjusted net income or loss attributable to common shareholders and adjusted net income or loss attributable to common shareholders per basic and diluted share exclude, where applicable: (i) share-based compensation; (ii) realized and unrealized investment gains or losses; (iii) transaction-related expenses; and (iv) restructuring and executive transition costs, as well as the related tax impact of these adjustments.

The Company believes that these non-GAAP financial measures are important supplemental measures that allow management and users of the Company’s financial statements to view operating trends and analyze controllable operating performance on a comparable basis between periods without the after-tax impact of share-based compensation and certain unusual items included in net loss attributable to common shareholders. Although share-based compensation is an important aspect of the Company’s employee and executive compensation packages, it is a non-cash expense and is excluded from certain internal business performance measures.

A reconciliation from net income (loss) attributable to common shareholders and the associated per share amounts 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. Net income (loss) attributable to common shareholders and the associated per share amounts are the most directly comparable GAAP measures because they reflect the earnings relevant to the Company’s shareholders, rather than the earnings attributable to non-controlling interests.

In addition to the non-GAAP financial measures discussed above, management also uses “EBITDA,” as such term is defined in the Credit Agreement, and which is referred to herein as “Adjusted EBITDA per Credit Facility.” As allowed by the Credit Agreement, Adjusted EBITDA per Credit Facility includes adjustments in addition to the exclusion of interest, taxes, depreciation and amortization. Accordingly, this non-GAAP financial measure is presented to allow a more comprehensive analysis of the Company’s operating performance and to provide additional information with respect to the Company’s compliance with its Credit Agreement requirements, when applicable. In addition, the Company believes that Adjusted EBITDA per Credit Facility presents relevant and useful information widely used by analysts, investors and other interested parties in the Company’s industry to evaluate, assess and benchmark the Company’s results.

EBITDA is defined as net income or loss excluding: (i) income tax expense or benefit; (ii) interest expense, net of interest income; (iii) depreciation and amortization, including film asset amortization; and (iv) amortization of deferred financing costs. Adjusted EBITDA per Credit Facility is defined as EBITDA excluding: (i) share-based and other non-cash compensation; (ii) realized and unrealized investment gains or losses; (iii) transaction-related expenses; (iv) restructuring and executive transition costs; and (v) write- downs, net of recoveries, including asset impairments and credit loss expense.

A reconciliation of net income (loss) attributable to common shareholders, which is the most directly comparable GAAP measure, to EBITDA and Adjusted EBITDA per Credit Facility is presented in the table below. Net income (loss) attributable to common shareholders is the most directly comparable GAAP measure because it reflects the earnings relevant to the Company’s shareholders, rather than the earnings attributable to non-controlling interests.

In this release, the Company also presents free cash flow, which is not recognized under U.S. GAAP, as a supplemental measure of the Company’s liquidity. The Company definition of free cash flow deducts only normal recurring capital expenditures, including the Company’s investment in joint revenue sharing arrangements, the purchase of property, plant and equipment and the acquisition of other intangible assets (from the Consolidated Statements of Cash Flows), from net cash provided by or used in operating activities. Management believes that free cash flow is a supplemental measure of the cash flow available to reduce debt, add to cash balances, and fund other financing activities. Free cash flow does not represent residual cash flow available for discretionary expenditures. A reconciliation of cash provided by operating activities to free cash flow is presented below.

These non-GAAP measures may not be comparable to similarly titled amounts reported by other companies. Additionally, the non-GAAP financial measures used by the Company should not be considered as a substitute for, or superior to, the comparable GAAP amounts.

13

Adjusted EBITDA per Credit Facility

Three Months Ended

(In thousands of U.S. Dollars)
June 30, 2024
June 30, 2023
Revenues$88,961 $97,979 
Reported net income
$5,073 $9,613 
Add (subtract):
Income tax expense
(3,997)3,461 
Interest expense, net of interest income
1,229 477 
Depreciation and amortization, including film asset amortization
18,838 13,878 
Amortization of deferred financing costs(1)
492 625 
EBITDA$21,635 $28,054 
Share-based and other non-cash compensation
6,970 6,900 
Unrealized investment gains
(32)(28)
Write-downs, including asset impairments and credit loss expense
2,428 1,016 
Total Adjusted EBITDA
$31,001 $35,942 
Total Adjusted EBITDA margin
34.8 %36.7 %
Less: Non-controlling interest(4,151)(3,165)
Adjusted EBITDA per Credit Facility - attributable to common shareholders$26,850 $32,777 
image_1a.jpg
(1)The amortization of deferred financing costs is recorded within Interest Expense in the Condensed Consolidated Statement of Operations.


Twelve Months Ended

(In thousands of U.S. Dollars)
June 30, 2024(1)
June 30, 2023(1)
Revenues$357,998 $351,726 
Reported net income
$28,823 $11,060 
Add (subtract):
Income tax expense
5,867 12,710 
Interest expense, net of interest income
3,037 2,125 
Depreciation and amortization, including film asset amortization
66,826 56,836 
Amortization of deferred financing costs(2)
1,969 2,674 
EBITDA$106,522 $85,405 
Share-based and other non-cash compensation
23,450 26,140 
Unrealized investment gains
(455)(78)
Transaction-related expenses
3,413 1,278 
Write-downs, including asset impairments and credit loss expense
4,305 4,490 
Restructuring and executive transition costs
1,593 1,353 
Total Adjusted EBITDA
$138,828 $118,588 
Total Adjusted EBITDA margin
38.8 %33.7 %
Less: Non-controlling interest$(15,761)$(14,296)
Adjusted EBITDA per Credit Facility - attributable to common shareholders$123,067 $104,292 
image_1a.jpg
(1)The Senior Secured Net Leverage Ratio is calculated using Adjusted EBITDA per Credit Facility determined on a trailing twelve-month basis.
(2)The amortization of deferred financing costs is recorded within Interest Expense in the Condensed Consolidated Statement of Operations.



14

Adjusted Net Income Attributable to Common Shareholders and Adjusted Net Income Per Share

Three Months Ended
June 30, 2024
Three Months Ended
June 30, 2023
(In thousands of U.S. Dollars, except per share amounts)
Net Income
Per Diluted
Share
Net Income
Per Diluted
Share
Net income attributable to common shareholders
$3,583 $0.07 $8,351 $0.15 
Adjustments(1):
Share-based compensation
6,647 0.12 6,511 0.12 
Unrealized investment gains
(32)— (27)— 
Tax impact on items listed above
(452)(0.01)(480)(0.01)
Adjusted net income(1)
$9,746 $0.18 $14,355 $0.26 
Weighted average shares outstanding — basic
52,633 54,591 
Weighted average shares outstanding — diluted
53,428 55,320 

Six Months Ended June 30,
20242023
(In thousands of U.S. Dollars, except per share amounts)
Net Income
Per Share
Net Income
Per Share
Net income attributable to common shareholders
$6,857 $0.13 $10,805 $0.20 
Adjustments(1):
Share-based compensation
11,354 0.21 12,047 0.22 
Unrealized investment gains
(62)— (72)— 
Transaction-related expenses
— — 156 — 
Restructuring and executive transition costs
— — 1,353 0.02 
Tax impact on items listed above
(462)(0.01)(909)(0.02)
Adjusted net income(1)
$17,688 $0.33 $23,380 $0.42 
Weighted average shares outstanding — basic
52,568 54,328 
Weighted average shares outstanding — diluted
53,386 55,145 
image_1a.jpg
(1)Reflects amounts attributable to common shareholders.


Free Cash Flow
Six Months Ended
June 30,
(In thousands of U.S. Dollars)20242023
Net cash provided by operating activities
$24,070 $25,855 
Purchase of property, plant and equipment(2,690)(1,009)
Acquisition of other intangible assets(3,191)(3,478)
Free cash flow before growth CAPEX18,189 21,368 
Investment in equipment for joint revenue sharing arrangements(9,757)(4,033)
Free cash flow$8,432 $17,335 

15
v3.24.2
Cover
Jul. 25, 2024
Cover [Abstract]  
Title of 12(b) Security Common Shares, no par value
Pre-commencement Issuer Tender Offer false
Document Information [Line Items]  
Trading Symbol IMAX
Title of 12(b) Security Common Shares, no par value
Security Exchange Name NYSE
Soliciting Material false
Pre-commencement Tender Offer false
Written Communications false
Document Period End Date Jul. 25, 2024
City Area Code 905
Local Phone Number 403-6457
Entity Address, City or Town Mississauga
Entity Address, State or Province ON
Entity Address, Country CA
Entity Address, Postal Zip Code L5K 1B1
Entity Address, Address Line One 2525 Speakman Drive
Document Type 8-K
Registrant Name IMAX Corporation
Entity Incorporation, State or Country Code Z4
Entity File Number 001-35066
Entity Emerging Growth Company false
Entity Tax Identification Number 98-0140269
Central Index Key 0000921582
Amendment Flag false
Other Address  
Document Information [Line Items]  
City Area Code 212
Local Phone Number 821-0142
Entity Address, City or Town New York
Entity Address, State or Province NY
Entity Address, Country US
Entity Address, Postal Zip Code 10010
Entity Address, Address Line One 902 Broadway
Entity Address, Address Line Two Floor 20
v3.24.2
Cover
Jul. 25, 2024
Cover [Abstract]  
Trading Symbol IMAX
IMAX (NYSE:IMAX)
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