NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: IMAX CORPORATION
NASDAQ SYMBOL: IMAXF
TSE SYMBOL: IMX
APRIL 28, 1997
Imax Corporation Reports First Quarter Results
TORONTO, ONTARIO--
HIGHLIGHTS
Earnings of $0.24 per share reported for first quarter a 26
percent increase over $0.19 per share in the prior year quarter.
78 percent increase in value of theatre system signings in quarter
results in highest level of signings of any quarter in the
Company's history.
Sales backlog increased by $10.4 million in the first quarter, the
largest dollar value increase of any quarter in the Company's
history.
Imax Corporation (NASDAQ - IMAXF; TSE - IMX) today reported record
first quarter earnings and a record 78 percent increase in theatre
system signings for the first quarter ended March 31, 1997. The
Company reported earnings of $0.24 per share for the first
quarter, a 26 percent increase over $0.19 per share in the first
quarter of 1996.
During the first quarter, the Company established a record for the
number and value of IMAX(R) theatre system signings in a quarter,
signing contracts for nine IMAX theatre systems valued at $28.3
million. This represents a 78 percent increase over the $15.9
million value of the six theatre systems signed in the prior year
period. As a result of the strong signings activity, the
Company's sales backlog grew by $10.4 million or 8 percent to
$142.2 million in the first quarter, the largest dollar value
increase of any quarter in the Company's history.
Bradley J. Wechsler, Chairman and Co-CEO of Imax, stated, "We are
very happy with the Company's results in the first quarter,
particularly the dramatic growth in new theatre signings. We are
extremely pleased to establish a new record for theatre system
signings in the first quarter which is usually our slowest quarter
for new signings. In the past year our theatre signings have
grown by 50 percent versus the prior year and we have signed
contracts for new theatres valued at over $100 million. This
increase in signings is important because signings today become
earnings in the future when the theatre systems are delivered."
Richard L. Gelfond, Vice Chairman and Co-CEO of Imax, added, "In
spite of our obvious successes to date, we believe that Imax is
very early in its growth cycle. In the first quarter, we
continued our aggressive international expansion by signing
contracts for theatres in Europe, Australia, Asia and the Middle
East. We believe there are still significant opportunities for
Imax's international expansion. In North America, we are
targeting our marketing efforts on the major theatrical exhibitors
to make IMAX theatres a part of their multiplexes. We believe
this market segment holds significant promise for Imax and we are
very excited about its potential."
The Company's sales backlog at March 31, 1997 represented
contracts for 48 theatre systems including three upgrades of
existing theatres to IMAX 3D. The Company's sales backlog was
$142.2 million at March 31, 1997, an 8 percent increase from
$131.8 million at December 31, 1996. The value of sales backlog
does not include owned and operated, participation or joint
venture theatres, letters of intent, IMAX Ridefilm contracts or
long-term theatre commitments. The Company signed contracts for
two IMAX Ridefilm systems during the first quarter. As of March
31, 1997, there was a backlog of 31 IMAX Ridefilm systems,
including six upgrades, and 11 IMAX Ridefilm theatres in
operation.
The Company's previously disclosed 2-for-1 stock split will be put
to a shareholder vote at the Company's annual meeting on May 6,
1997. If approved as expected, the Company's common shares should
begin trading on a split basis on NASDAQ and The Toronto Stock
Exchange on or about May 20, 1997.
In the first quarter, the Company's revenues increased 7 percent
to $32.5 million from $30.3 million in the prior year period as a
result of growth in systems and film revenues offsetting a decline
in other revenue. Systems revenue increased 22 percent to $17.9
million from $14.7 million in the prior year period. The Company
recognized revenues on four theatre systems in both the first
quarter of 1997 and 1996. Recurring revenues from both royalties
and maintenance fees increased in the quarter due to the growth in
the IMAX theatre network. Film revenue increased 13 percent in
the quarter to $12.3 million from $10.8 million in the prior year
period due to an increase in film distribution and post-production
revenue offsetting a decline in film production revenue. Other
revenues declined 51 percent to $2.3 million from $4.7 million as
the Company did not deliver any IMAX Ridefilm systems in the
quarter as compared to delivering three IMAX Ridefilm systems in
the year ago quarter. Earnings from operations increased 44
percent to $9.4 million in the first quarter from $6.5 million in
the prior year period.
Founded in 1967, Imax Corporation has consistently delivered the
world's premiere cinematic experiences. Imax has forged strategic
alliances and relationships with some of the largest corporations
in the world, including Sony Corporation, ABC Inc. (a Walt Disney
Company subsidiary), Caesars World (an ITT Corporation
subsidiary), Sega Enterprises, Circus Circus Enterprises and Ogden
Corporation. Over 500 million people have visited an IMAX theatre
since the medium premiered in 1970. In 1996 alone, more than 65
million people worldwide enjoyed the IMAX experience.
This press release may contain forward looking statements that
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 effect these statements include the timing of theatre
system deliveries, the mix of theatre systems shipped, the timing
of the recognition of revenues and expenses on film production and
distribution agreements, and foreign currency fluctuations. These
factors and other risks and uncertainties are discussed in the
Company's Annual Report on Form 10-K for the year ended December
31, 1996 and in the subsequent reports filed by the Company with
the Securities and Exchange Commission.
/T/
IMAX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Amounts in Accordance with U.S. Generally Accepted
Accounting Principles
(in thousands of U.S. dollars, except per share data)
(unaudited)
Three months ended March 31,
1997 1996
Revenue
Systems $ 17,918 $ 14,734
Films 12,299 10,844
Other 2,325 4,747
32,542 30,325
Costs and expenses 14,665 16,254
Gross margin 17,877 14,071
Selling, general and
administrative expenses 7,340 6,341
Research and development 499 596
Amortization of intangibles 661 635
Earnings from operations 9,377 6,499
Interest income 1,494 614
Interest expense (3,299) (1,842)
Foreign exchange loss (76) (237)
Earnings before income
taxes and minority
interest 7,496 5,034
Provision for income
taxes (3,544) (2,090)
Earnings before minority
interest 3,952 2,944
Minority interest (254) -
Net earnings $ 3,698 $ 2,944
Net earnings available
to common shareholders $ 3,618 $ 2,869
Per share data
Net earnings $ 0.24 $ 0.19
Weighted average number
of shares outstanding
(000's) 14,882 15,228
/T/
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FOR FURTHER INFORMATION PLEASE CONTACT:
Imax Corporation, Toronto
Victoria Dinnick
(905) 403-6366
or
Imax Corporation, New York
Brian Weisfeld (Analysts)
(212) 821-0121
or
Imax Corporation, Los Angeles
Al Newman
(310) 979-5601
or
Edelman Financial, New York
Kerry O'Brien (Media)
(212) 704-8292 |
