Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : IMAX 3D-the wave of the future -- Ignore unavailable to you. Want to Upgrade?

To: NO KA OI! who wrote (165)	10/3/2001 11:48:57 PM
From: worldtraveller	Read Replies (1) \| Respond to of 170

Imax Pegs '02 Profits on Slate of Dozen Films 19:55 GMT-04:00 Wednesday, October 03, 2001 By Rajiv Sekhri TORONTO (Reuters) - Money-losing Imax Corp. is pegging hopes for 2002 on a slate of about a dozen films -- two of them from Disney Co. -- which it says represent the best subject matter in the big-screen cinema company's 34-year existence. "Never in the history of Imax has there been a film slate like there is in 2002. We have really strong hopes for revenue growth," Richard Gelfond, co-chief executive and co-chairman, told Reuters. "It is the quality and the fact that Disney is releasing two of them that is unprecedented." Imax is known for the movie projection systems -- some of them 80-feet (24-meters) high -- that it makes and leases to more than 220 theaters in 30 countries. It derives revenues from maintenance and royalty fees. The Canadian-based firm lost $25.2 million in the first two quarters of this year, and its sales tumbled by more than a third, as demand for giant-screen theaters fell across North America. Its shares have slumped 68 percent so far this year. Investors are watching Imax's every move as it has promised to return to profitability next year. But Gelfond refused on Wednesday to say just when in 2002 that would happen or give a clearer picture of revenue and profit growth. "I have been too well briefed by my lawyers," he said, laughing. Gelfond said it was too soon to assess what impact, if any, the Sept. 11 attacks in the United States would have on the film industry. He added, however, that the attacks have prompted Imax to explore films related to terrorism themes. EXPENSES, DEBT FALLING Imax shaved expenses by about 25 percent to $52 million in the first six months of 2001 from $68.2 million in the year-before period. It said it is moving steadily to trim interest expenses by reducing debt. On Wednesday it retired nearly $50 million of debt after one of its subsidiaries bought notes worth that amount for $7.5 million from Imax. The notes are due in April 2003. "Our subsidiary was able to purchase the notes at a substantial discount which we believe will improve the outlook for Imax," Gelfond said. Imax shares reacted positively, closing up 12.5 percent, or 15 Canadian cents, at C$1.35 on the Toronto Stock Exchange. On Nasdaq, they ended up 14 percent, or 11 cents, at 89 cents. "We have aligned our cost structure in line with lower revenue growth. We have reduced expenses and now we are significantly reducing debt," Gelfond said, pointing out that debt now stands at $250 million, after the $50 million cut. Gelfond said Disney's Jan. 1, 2002, release of "Beauty and the Beast" for giant screens should be a major sales driver. "'Beauty and the Beast' is one of the highest grossing animated films of all time. It has not been seen in any kind of theater for nearly 10 years," Gelfond said. The animated Disney film "Fantasia 2000" for Imax screens $80 million in sales last year, he said. Gelfond said nearly 20 theaters had already agreed to show "Space Station", a 3-D film documenting images from space that will be released in the spring of 2002. "We built 3-D cameras and carried them to space so people will see a 3-D version of the space station," he said. "I'd say we've had one of the best advanced bookings for this one of any film we have ever had."