Market Snapshot
  • U.S.
  • Europe
  • Asia
Ticker Volume Price Price Delta
DJIA 16,514.18 12.53 0.08%
S&P 500 1,881.70 6.31 0.34%
NASDAQ 4,150.38 23.41 0.57%
Ticker Volume Price Price Delta
STOXX 50 3,189.81 13.84 0.44%
FTSE 100 6,703.00 28.26 0.42%
DAX 9,548.68 4.49 0.05%
Ticker Volume Price Price Delta
NIKKEI 14,404.99 -141.28 -0.97%
TOPIX 1,164.90 -8.91 -0.76%
HANG SENG 22,562.80 53.16 0.24%

IMAX Corporation Reports Third Quarter 2012 Financial Results


LOS ANGELES, Oct. 25, 2012 /CNW/ -

HIGHLIGHTS


    --  Operating leverage of business drives strong financial results
    --  Q3 2012 Revenues increased 20% to $80.7 million
    --  Adjusted EPS increased 86% to $0.26 and Adjusted EBITDA grew
        59% to $34.0 million in the third quarter
    --  Free Cash Flow generation of $30.3 million in the quarter
    --  Maintaining full year 2012 install guidance of approximately
        110 new theatre installations and issuing full year 2013
        guidance of 110 to 125 new theatre installations

IMAX Corporation (NYSE: IMAX; TSX: IMX) today reported strong financial 
results for the third quarter of 2012 driven by operating leverage and 
continued theatre network growth globally, with 41 signings and 33 theatre 
installations in the quarter.  Third quarter 2012 revenues were $80.7 million, 
adjusted EBITDA as calculated in accordance with the Company's Credit Facility 
was $34.0 million, adjusted net income was $17.9 million, or $0.26 per diluted 
share, and reported net income was $15.0 million, or $0.22 per diluted share. 
For reconciliations of adjusted net income to reported net income and for the 
definition of adjusted EBITDA and free cash flow, please see the tables at the 
end of this press release.

(Logo: http://photos.prnewswire.com/prnh/20111107/MM01969LOGO )

"Our strong quarterly financial results once again demonstrate how much the 
IMAX business model has evolved," said IMAX Chief Executive Officer Richard L. 
Gelfond. "We believe IMAX has become a story of growth and operating leverage, 
and our pipeline for future theatre deals remains robust.  Our view is that we 
have reached a point of critical mass where our portfolio approach to our film 
slate combined with our global network expansion is driving scalability in the 
business."

"We are also seeing an increase in demand from filmmakers who want to take 
advantage of our differentiation opportunities, whether it be using our IMAX 
cameras, or specially formatting their movies for IMAX, or using an early 
release window in IMAX to further promote their film," Gelfond continued. 
"This ability to work closely with studios and directors, taken together with 
our strong brand and our end-to-end approach to our business, continues to set 
us apart and positions us well to create a unique experience that consumers 
cannot get anywhere else."

Third Quarter Segment Results
    --  IMAX posted third quarter 2012 revenues of $80.7 million,
        compared to $67.5 million in the same period last year
    --  IMAX systems revenue was $25.4 million in the quarter, compared
        to $20.6 million in the third quarter of 2011, primarily
        reflecting the installation of 14 full, new theatre systems
        under sales and sales-type lease arrangements in the most
        recent third quarter, compared to 11 full, new theatre systems
        in the third quarter of 2011. The Company also installed 3
        digital system upgrades under sales or sales-type lease
        arrangements in the third quarter of 2012, compared to 4
        upgrades in the third quarter of 2011
    --  Revenue from joint revenue sharing arrangements increased 31.9%
        to $13.2 million, compared to $10.0 million in the prior-year
        period. During the quarter, the Company installed 14 new
        theatres under joint revenue sharing arrangements, compared to
        14 in the year-ago period. The Company ended the third quarter
        of 2012 with 287 theatres operating under joint revenue sharing
        arrangements, as compared to 218 theatres at the end of the
        third quarter of 2011
    --  Production and IMAX DMR® (Digital Re-Mastering) revenues
        increased 35.6% to $25.2 million in the third quarter of 2012
        from $18.6 million in the third quarter of 2011. Gross box
        office from DMR titles was $173.2 million in the third quarter
        of 2012, compared to $149.5 million in the third quarter of
        2011. The average DMR box office per screen in the third
        quarter of 2012 was $311,700, compared to $355,500 in the third
        quarter of 2011

Network Growth and Guidance Update

In the third quarter of 2012, the Company signed contracts for 41 theatres, of 
which 32 were new systems, and installed 33 theatres, of which 28 were new 
systems and 5 were digital upgrades.

The Company continues to expect that approximately 110 new theatre systems 
(excluding digital upgrades) will be installed during the full year of 2012, 
which implies that approximately 46 new theatre systems (excluding digital 
upgrades) will be installed in the fourth quarter of 2012.  The Company 
updated its annual installation guidance to a more comprehensive definition 
which includes scheduled installations from backlog as well as the Company's 
estimate of installations from arrangements that will sign and install within 
a given year.  Under this definition, the Company is issuing installation 
guidance for 2013 of an estimated 110 to 125 new theatre systems (excluding 
digital upgrades).   The Company cautions that theatre system installations 
can slip from period to period in the course of the Company's business, 
usually for reasons beyond its control.

The total IMAX® theatre network consisted of 689 systems at the end of the 
quarter, of which 556 were in commercial multiplexes.  There were 285 theatre 
systems in backlog as of Sept. 30, 2012, compared to 280 theatre systems in 
backlog as of June 30, 2012 and 295 systems in backlog as of Sept. 30, 2011.  
For a breakdown of theatre system signings, installations and backlog by type, 
please see the end of this press release.

"We believe that IMAX's fundamentals have never been stronger," Gelfond 
concluded. "The healthy level of business activity is evidenced by our 
signings and installations this quarter, and we continue to be encouraged by 
the pace and quality of discussions regarding future theatre deals. IMAX has 
created a truly differentiated brand and entertainment offering that is being 
embraced by exhibitors, studios, filmmakers, and - most importantly - by 
moviegoers around the world."

Conference Call The Company will host a conference call today at 8:30 AM ET to 
discuss its third quarter 2012 financial results.  To access the call via 
telephone, interested parties should dial (866) 321-6651 approximately 5 to 10 
minutes before it begins.  International callers should dial (416) 642-5212.  
The participant passcode for the call is 9337410.  This call is also being 
webcast by Thomson Financial and can be accessed on the 'Investor Relations' 
section of www.imax.com.   A replay of the call will be available via webcast 
on the 'Investor Relations' section of www.imax.com or via telephone by 
dialing (888) 203-1112, or (647) 436-0148 for international callers.  The 
participant passcode for the telephone replay is 9337410.

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 theatres to connect 
with audiences in extraordinary ways, and, as such, IMAX's network is 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 offices in 
London, Tokyo, Shanghai and Beijing.  As of Sept. 30, 2012, there were 689 
IMAX theatres (556 commercial multiplex, 20 commercial destination and 113 
institutional) in 52 countries.

IMAX®, IMAX® 3D, IMAX DMR®, Experience It In IMAX®, An IMAX 3D 
Experience®, The IMAX Experience® and IMAX Is Believing® are trademarks of 
IMAX Corporation. More information about the Company can be found at 
www.imax.com. You may also connect with IMAX on Facebook 
(www.facebook.com/imax), Twitter (www.twitter.com/imax) and YouTube 
(www.youtube.com/imaxmovies).

This press 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. 
Important factors that could affect these statements include, but are not 
limited to, general economic, market or business conditions; including the 
length and severity of the current economic downturn, the opportunities (or 
lack thereof) that may be presented to and pursued by the Company; the 
performance of IMAX DMR films; competitive actions by other companies; 
conditions in the in-home and out-of-home entertainment industries; the 
signing of theater system agreements; changes in laws or regulations; 
conditions, changes and developments in the commercial exhibition industry; 
the failure to convert theater system backlog into revenue; the failure to 
respond to change and advancements in digital technology; risks related to the 
acquisition of AMC Entertainment Holdings, Inc. by Dalian Wanda Group Co., 
Ltd.; risks related to the Company's implementation of a new enterprise 
resource planning ("ERP") system; risks related to new business initiatives; 
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; the potential impact of increased competition 
in the markets within which the Company operates; risks related to the 
Company's inability to protect the Company's intellectual property; risks 
related to foreign currency transactions; risks related to the Company's prior 
restatements and the related litigation; and other factors, many of which are 
beyond the control of the Company. These factors and other risks and 
uncertainties are discussed in IMAX's most recent Annual Report on Form 10-K 
and most recent Quarterly Reports on Form 10-Q.

For additional information please contact:

 
________________________________________________________________________________________________________________________
_______________________________________________________________________
|Investors:                                                                                 |Media:                     

| | |

| |IMAX Corporation, New York |IMAX Corporation, New York

| | |

| |Teri Loxam/Blaire Lomasky |Ann Sommerlath

| | |

| |212-821-0100 |212-821-0155

| | |

| |tloxam@imax.com |asommerlath@imax.com | | |

| |blomasky@imax.com |Entertainment Media: | | |

| |Business Media: |Principal Communications Group, Los Angeles | | |

| |Sloane & Company, New York |Melissa Zuckerman/Paul Pflug | | |

| |Whit Clay |323-658-1555

| | |

| |212-446-1864 |melissa@pcommgroup.com| | |

| |wclay@sloanepr.com|paul@pcommgroup.com | |___________________________________________________________________________________________|___________________________ ________________________________________________________________________|

Additional Information

2012 DMR Films Announced to Date: To date, IMAX has announced 31 DMR titles that will be released in the IMAX theatre network in 2012. Films to run throughout the remainder of 2012 include:


    --  Paranormal Activity 4: The IMAX Experience (Paramount Pictures,
        October 2012);
    --  Tai Chi Hero: An IMAX 3D Experience (Huayi Brothers, October
        2012, Asia only);
    --  Cloud Atlas: The IMAX Experience (WB, October 2012);
    --  Skyfall: The IMAX Experience (Sony, November 2012);
    --  The Twilight Saga: Breaking Dawn - Part 2: The IMAX Experience
        (Lionsgate, November 2012, UK and select international markets
        only)
    --  Back to 1942: The IMAX Experience (Huayi Brothers, November
        2012, Asia only);
    --  CZ12: The IMAX Experience (JCE Entertainment Ltd., Huayi
        Brothers & Emperor Motion Pictures, December 2012, Asia only);
        and
    --  The Hobbit: An Unexpected Journey: An IMAX 3D Experience (WB,
        December 2012).

2013 DMR Films Announced to Date:    To date, IMAX has announced 10 titles to 
be released in 2013.  The Company remains in discussions with virtually every 
major studio regarding future titles and expects the total number of titles in 
2013 to be similar to that in 2012.
    --  Hansel & Gretel: Witch Hunters: An IMAX 3D Experience
        (Paramount, January 2013);
    --  Jack the Giant Killer: An IMAX 3D Experience (WB, March 2013);
    --  Oblivion: The IMAX Experience (Universal, April 2013);
    --  Star Trek: Into Darkness: An IMAX 3D Experience (Paramount, May
        2013);
    --  Man of Steel: The IMAX Experience (WB, June 2013);
    --  Gravity: An IMAX 3D Experience (WB, September 2013);
    --  Stalingrad: An IMAX 3D Experience (AR Films, October 2013,
        Russia and the CIS only);
    --  The Hunger Games: Catching Fire: The IMAX Experience
        (Lionsgate, November 2013);
    --  The Hobbit: The Desolation of Smaug: An IMAX 3D Experience (WB,
        December 2013); and
    --  Dhoom 3: The IMAX Experience (Yash Raj Films, 2013, India
        only).

Theatre Network Details:

 _____________________________________________________________________
|                        |Three Months       ||Nine Months        |||||
|________________________|___________________||___________________|||||
|                        |Ended September 30,||Ended September 30,|||||
|________________________|___________________||___________________|||||
|Theatre System Signings:|2012|     |2011    ||2012||2011         |
|________________________|____|_____|________||____||_____________|
|                        |    |     |        ||    ||             |
|________________________|____|_____|________||____||_____________|
|Full new sales and      |    |     |        ||    ||             |
|sales-type lease        |4   |     |10      ||32  ||46           |
|arrangements            |    |     |        ||    ||             |
|________________________|____|_____|________||____||_____________|
|New joint revenue       |28  |     |18      ||61  ||120          |
|sharing arrangements    |    |     |        ||    ||             |
|________________________|____|_____|________||____||_____________|
|Total new theatres      |32  |     |28      ||93  ||166          |
|________________________|____|_____|________||____||_____________|
|                        |    |     |        ||    ||             |
|________________________|____|_____|________||____||_____________|
|Upgrades of IMAX theatre|9   |((1))|2       ||11  ||17           |
|systems                 |    |     |        ||    ||             |
|________________________|____|_____|________||____||_____________|
|Total Theatre Signings  |41  |     |30      ||104 ||183          |
|________________________|____|_____|________||____||_____________|
|                        |    |     |        ||    ||             |
|________________________|____|_____|________||____||_____________|
|                        |Three Months       ||Nine Months        |||||
|________________________|___________________||___________________|||||
|                        |Ended September 30,||Ended September 30,|||||
|________________________|___________________||___________________|||||
|Theatre System          |2012|     |2011    ||2012||2011         |
|Installations:          |    |     |        ||    ||             |
|________________________|____|_____|________||____||_____________|
|                        |    |     |        ||    ||             |
|________________________|____|_____|________||____||_____________|
|Full new sales and      |    |     |        ||    ||             |
|sales-type lease        |14  |     |11      ||33  ||33           |
|arrangements            |    |     |        ||    ||             |
|________________________|____|_____|________||____||_____________|
|New joint revenue       |14  |     |14      ||31  ||47           |
|sharing arrangements    |    |     |        ||    ||             |
|________________________|____|_____|________||____||_____________|
|Total new theatres      |28  |     |25      ||64  ||80           |
|________________________|____|_____|________||____||_____________|
|                        |    |     |        ||    ||             |
|________________________|____|_____|________||____||_____________|
|Upgrades and other      |5   |     |4       ||15  ||33           |
|________________________|____|_____|________||____||_____________|
|Total Theatre           |33  |     |29      ||79  ||113          |
|Installations           |    |     |        ||    ||             |
|________________________|____|_____|________||____||_____________|
|                        |    |     |        ||    ||             |
|________________________|____|_____|________||____||_____________|
|                        |As of              ||    ||             |||
|________________________|___________________||____||_____________|||
|                        |September 30,      ||    ||             |||
|________________________|___________________||____||_____________|||
|Theatre Backlog:        |2012|     |2011    ||    ||             |
|________________________|____|_____|________||____||_____________|
|                        |    |     |        ||    ||             |
|________________________|____|_____|________||____||_____________|
|New sales and sales-type|133 |     |137     ||    ||             |
|lease arrangements      |    |     |        ||    ||             |
|________________________|____|_____|________||____||_____________|
|New joint revenue       |149 |     |148     ||    ||             |
|sharing arrangements    |    |     |        ||    ||             |
|________________________|____|_____|________||____||_____________|
|Total new theatres      |282 |     |285     ||    ||             |
|________________________|____|_____|________||____||_____________|
|                        |    |     |        ||    ||             |
|________________________|____|_____|________||____||_____________|
|Upgrades under sales and|    |     |        ||    ||             |
|sales-type lease        |3   |     |10      ||    ||             |
|arrangements            |    |     |        ||    ||             |
|________________________|____|_____|________||____||_____________|
|Total Theatres in       |285 |     |295     ||    ||             |
|Backlog                 |    |     |        ||    ||             |
|________________________|____|_____|________||____||_____________|

 _____________________________________________________________________
|__________                                                           |
|_____________________________________________________________________|
|   |Includes three IMAX theatres acquired from another existing      |
|(1)|customer that had been operating under a joint revenue sharing   |
|   |arrangement. These theaters were purchased from the Company under|
|   |a sales arrangement.                                             |
|___|_________________________________________________________________|

IMAX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
In accordance with United States Generally Accepted Accounting
Principles
(In thousands of U.S. dollars, except per share amounts)
(Unaudited)
                            Three Months          Nine Months
                            Ended September 30,   Ended September 30,
                            2012       2011       2012        2011

Revenues( )

Equipment and product sales $ 24,327   $ 18,378   $ 55,756    $ 58,359
( )

Services( )                   40,316     35,104     102,312     80,371

Rentals( )                    14,013     11,350     42,912      25,416

Finance income( )             2,055      1,581      5,537       4,409

Other( )                      -          1,075      -           1,325
                              80,711     67,488     206,517     169,880

Costs and expenses
applicable to revenues( )

Equipment and product sales   10,652     8,083      27,727      28,595
( )

Services ( )                  21,107     19,113     55,378      48,015

Rentals( )                    4,202      3,468      12,968      9,478

Other( )                      -          386        -           406
                              35,961     31,050     96,073      86,494

Gross margin( )               44,750     36,438     110,444     83,386

Selling, general and          19,326     19,440     58,713      55,778
administrative expenses ( )

 (including share-based
 compensation expense of
 $2.8 million and $10.3

 million for the three and
 nine months ended
 September 30, 2011,
 respectively

 (2011 – expense of
 $0.5 million and $9.0
 million, respectively))

Provision for arbitration     -          -          -           2,055
award( )

Research and development( )   2,528      2,041      7,623       6,026

Amortization of intangibles   166        113        532         341
( )

Receivable provisions, net    241        408        829         767
of recoveries( )

Asset impairments( )          -          8          -           8

Impairment of
available-for-sale            -          -          150         -
investment( )

Income from operations( )     22,489     14,428     42,597      18,411

Interest income( )            22         13         73          44

Interest expense( )           (373)      (431)      (1,375)     (1,425)

Income from continuing
operations before income      22,138     14,010     41,295      17,030
taxes( )

Provision for income taxes    (6,814)    (5,179)    (11,599)    (6,504)
( )

Loss from equity-accounted    (334)      (439)      (1,038)     (1,312)
investments( )

Net income( )               $ 14,990   $ 8,392    $ 28,658    $ 9,214



Net income per share -
basic & diluted:( )

 Net income per share -     $ 0.23     $ 0.13     $ 0.44      $ 0.14
 basic( )

 Net income per share -     $ 0.22     $ 0.12     $ 0.42      $ 0.14
 diluted( )



Weighted average number of
shares outstanding (000's):
( )

 Basic( )                     65,930     64,654     65,718      64,406

 Fully Diluted( )             68,301     67,756     68,187      68,110



Additional Disclosure:( )



Depreciation and            $ 8,038    $ 5,838    $ 24,704    $ 18,020
amortization((1))

 ____________________________________________________________________
|__________                                                          |
|____________________________________________________________________|
|   |Includes less than $0.1 million and $0.1 million of amortization|
|   |of deferred financing costs charged to interest expense for the |
|(1)|three and nine months ended September 30, 2012, respectively    |
|   |(September 30, 2011 — less than $0.1 million and $0.3     |
|   |million , respectively).                                        |
|___|________________________________________________________________|

IMAX CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

In accordance with United States Generally Accepted Accounting
Principles

(in thousands of U.S. dollars)
                                            As at          As at
                                            September 30,  December 31,
                                            2012           2011
                                            (unaudited)

Assets

Cash and cash equivalents                   $ 29,450       $ 18,138

Accounts receivable, net of allowance for
doubtful accounts of $1,636 (December 31,     36,147         46,659
2011 — $1,840)

Financing receivables                         91,533         86,714

Inventories                                   20,841         19,747

Prepaid expenses                              4,081          3,126

Film assets                                   3,488          2,388

Property, plant and equipment                 109,115        101,253

Other assets                                  25,480         14,238

Deferred income taxes                         40,164         50,033

Goodwill                                      39,027         39,027

Other intangible assets                       27,709         24,913

Total assets                                $ 427,035      $ 406,236



Liabilities

Bank indebtedness                           $ 30,000       $ 55,083

Accounts payable                              15,389         28,985

Accrued and other liabilities                 63,405         54,803

Deferred revenue                              79,660         74,458

Total liabilities                             188,454        213,329



Commitments, contingencies and guarantees



Shareholders' equity

Capital stock, common shares — no par
value. Authorized — unlimited number.

Issued and outstanding — 65,997,319     310,105        303,395
(December 31, 2011 — 65,052,740)

Other equity                                  26,587         17,510

Deficit                                       (97,008)       (125,666)

Accumulated other comprehensive loss          (1,103)        (2,332)

Total shareholders' equity                    238,581        192,907

Total liabilities and shareholders' equity  $ 427,035      $ 406,236

IMAX CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

In accordance with United States Generally Accepted Accounting
Principles

(In thousands of U.S. dollars)

(Unaudited)
                                               Nine Months
                                               Ended September 30,
                                               2012         2011

Cash provided by (used in):

Operating Activities

Net income                                     $ 28,658     $ 9,214

Adjustments to reconcile net income to cash
from operations:

 Depreciation and amortization                   24,704       18,020

 Write-downs, net of recoveries                  1,516        841

 Change in deferred income taxes                 9,545        5,694

 Stock and other non-cash compensation           10,781       9,595

 Provision for arbitration award                 -            2,055

 Unrealized foreign currency exchange (gain)     (152)        4,270
 loss

 Loss from equity-accounted investments          1,038        1,312

 Gain on non-cash contribution to                -            (404)
 equity-accounted investees

Investment in film assets                        (13,508)     (8,814)

Changes in other non-cash operating assets and   (8,672)      (48,192)
liabilities

 Net cash provided by (used in) operating        53,910       (6,409)
 activities



Investing Activities

Purchase of property, plant and equipment        (2,599)      (4,409)

Investment in joint revenue sharing equipment    (15,174)     (22,432)

Investment in new business ventures              (381)        (1,571)

Acquisition of other intangible assets           (5,046)      (4,008)

 Net cash used in investing activities           (23,200)     (32,420)



Financing Activities

Increase in bank indebtedness                    9,917        59,583

Repayment of bank indebtedness                   (35,000)     (37,500)

Credit facility amendment fees paid              -            (297)

Common shares issued - stock options exercised   5,831        5,635

 Net cash (used in) provided by financing        (19,252)     27,421
 activities



Effects of exchange rate changes on cash         (146)        (139)



Increase (decrease) in cash and cash             11,312       (11,547)
equivalents during the period



Cash and cash equivalents, beginning of period   18,138       30,390

Cash and cash equivalents, end of period       $ 29,450     $ 18,843

 ______________________________________________________________
|IMAX CORPORATION                                              |
|SELECTED FINANCIAL DATA                                       |
|In accordance with United States Generally Accepted Accounting|
|Principles                                                    |
|(in thousands of U.S. dollars)                                |
|______________________________________________________________|

The Company has seven reportable segments identified by category of product 
sold or service provided: IMAX systems; theater system maintenance; joint 
revenue sharing arrangements; film production and IMAX DMR; film distribution; 
film post-production; and other. The IMAX systems segment is comprised of the 
design, manufacture, sale or lease of IMAX theater projection system 
equipment. The theater system maintenance segment consists of the maintenance 
of IMAX theater projection system equipment in the IMAX theater network. The 
joint revenue sharing arrangements segment is comprised of the installation of 
IMAX theater projection system equipment to an exhibitor in exchange for a 
certain percentage of box-office receipts, concession revenue and in some 
cases a small upfront or initial payment. The film production and IMAX DMR 
segment is comprised of the production of films and performance of film 
re-mastering services. The film distribution segment includes the distribution 
of films for which the Company has distribution rights. The film 
post-production segment includes the provision of film post-production and 
film print services. The other segment includes certain IMAX theaters that the 
Company owns and operates, camera rentals and other miscellaneous items.
                              Three Months         Nine Months
                              Ended September 30,  Ended September 30,
                              2012      2011       2012       2011

Revenue

IMAX systems( )

Sales and sales-type leases   $ 21,937  $ 17,593   $ 49,751   $ 54,758

Ongoing rent, fees, and         3,421     3,056      9,312      8,620
finance income
                                25,358    20,649     59,063     63,378

Theater system maintenance( )   7,042     6,348      20,878     18,270

Joint revenue sharing           13,186    9,995      40,477     22,382
arrangements( )

Films( )

 Production and IMAX DMR( )     25,223    18,600     58,805     38,280

 Distribution( )                3,259     4,965      11,122     12,857

 Post-production( )             1,646     3,023      5,778      5,686
                                30,128    26,588     75,705     56,823

Other( )                        4,997     3,908      10,394     9,027

Total( )                      $ 80,711  $ 67,488   $ 206,517  $ 169,880



Gross margins( )

IMAX systems((1))

Sales and sales-type leases   $ 12,575  $ 10,329   $ 25,259   $ 28,163

Ongoing rent, fees, and         3,381     2,965      9,216      8,306
finance income
                                15,956    13,294     34,475     36,469

Theater system maintenance( )   2,828     1,944      8,122      6,912

Joint revenue sharing           9,286     6,733      28,340     13,792
arrangements((1))

Films( )

 Production and IMAX DMR((1))   15,426    12,015     35,714     21,235

 Distribution((1))              587       1,418      2,133      2,531

 Post-production( )             103       808        1,373      2,804
                                16,116    14,241     39,220     26,570

Other( )                        564       226        287        (357)

Total( )                      $ 44,750  $ 36,438   $ 110,444  $ 83,386

 _____________________________________________________________________
|__________                                                           |
|_____________________________________________________________________|
|   |IMAX systems include commission costs of $0.9 million and $2.1   |
|   |million for the three and nine months ended September 30, 2012,  |
|   |respectively (2011 — $0.6 million and $1.4 million,        |
|   |respectively). Joint revenue sharing arrangements segment margins|
|   |include advertising, marketing and commission costs of $1.1      |
|   |million and $2.1 million for the three and nine months ended     |
|   |September 30, 2012, respectively (2011 — $1.3 million and  |
|(1)|$3.6 million, respectively). Production and DMR segment margins  |
|   |include marketing costs of $0.5 million and $2.2 million for the |
|   |three and nine months ended September 30, 2012, respectively     |
|   |(2011 — $0.7 million and $1.9 million, respectively).      |
|   |Distribution segment margins include a marketing cost recovery of|
|   |less than $0.1 million and an expense of $1.2 million for the    |
|   |three and nine months ended September 30, 2012, respectively     |
|   |(2011 — expense of $0.1 million and $1.7 million,          |
|   |respectively).                                                   |
|___|_________________________________________________________________|

 ______________________________
|IMAX CORPORATION              |
|OTHER INFORMATION             |
|(in thousands of U.S. dollars)|
|______________________________|

Non-GAAP Financial Measures:

In this release, the Company presents adjusted EBITDA, adjusted net income, 
adjusted net income per diluted share and free cash flow as supplemental 
measures of performance of the Company, which are not recognized under United 
States generally accepted accounting principles ("GAAP"). The Company presents 
adjusted EBITDA, adjusted net income, adjusted net income per diluted share, 
and free cash flow because it believes that they are important supplemental 
measures of its comparable controllable operating performance and it wants to 
ensure that its investors fully understand the impact of its stock-based 
compensation and a provision for an arbitration award (net of any related 
taxes) on its net income. Management uses these measures to review operating 
performance on a comparable basis from period to period.  However, these 
non-GAAP measures may not be comparable to similarly titled amounts reported 
by other companies. Adjusted EBITDA, adjusted net income, adjusted net income 
per diluted share and free cash flow should be considered in addition to, and 
not as a substitute for, net income and other measures of financial 
performance reported in accordance with GAAP.

Adjusted EBITDA:

Adjusted EBITDA is calculated on a basis consistent with the Company's Credit 
Facility, which refers to Adjusted EBITDA as EBITDA. The Credit Facility 
provides that the Company will be required to maintain a ratio of funded debt 
(as defined in the Credit Agreement) to EBITDA (as defined in the Credit 
Agreement) of not more than 2:1.  The Company will also be required to 
maintain a Fixed Charge Coverage Ratio (as defined in the Credit Agreement) of 
not less than 1.1:1.0. At all times under the terms of the Credit Facility, 
the Company is required to maintain minimum Excess Availability of not less 
than $5.0 million and minimum Cash and Excess Availability of not less than 
$15.0 million. The ratio of funded debt to EBITDA was 0.30:1 as at September 
30, 2012, where Funded Debt (as defined in the Credit Agreement) is the sum of 
all obligations evidenced by notes, bonds, debentures or similar instruments 
and was $30.0 million. EBITDA is calculated as follows:
                            For the             For the( )
                            3 months ended      12 months ended( )
                            September 30, 2012  September 30, 2012((1))

(In thousands of U.S.
Dollars)( )

Net income( )               $ 14,990            $ 34,987 ( )

Add: ( )

 Loss from equity accounted   334                 1,517 ( )
 investments( )

 Provision for income taxes   6,814               14,483 ( )
 ( )

 Interest expense, net of     351                 1,691 ( )
 interest income( )

 Depreciation and
 amortization, including      7,995               31,676 ( )
 film asset amortization( )

 Write-downs net of
 recoveries including asset   597                 2,629 ( )
 impairments and receivable
 provisions( )

 Stock and other non-cash     2,930               13,621 ( )
 compensation( )

Adjusted EBITDA             $ 34,011            $ 100,604 ( )

 _____________________________________________________________________
|__________                                                           |
|_____________________________________________________________________|
|(1)|Ratio of funded debt calculated using twelve months ended EBITDA.|
|___|_________________________________________________________________|

 ______________________________
|IMAX CORPORATION              |
|OTHER INFORMATION             |
|(in thousands of U.S. dollars)|
|______________________________|

Adjusted Net Income and Adjusted Diluted Per Share Calculations – Quarter 
Ended September 30, 2012 vs. 2011:

The Company reported net income of $15.0 million or $0.23 per basic share and 
$0.22 per diluted share for the third quarter of 2012, as compared to net 
income of $8.4 million or $0.13 per basic share and $0.12 per diluted share 
for the third quarter of 2011. Net income for the third quarter of 2012 
includes a $2.8 million charge, or $0.04 per diluted share, for stock-based 
compensation (2011 - $0.5 million or $0.01 per diluted share) and the related 
tax benefit of $0.1 million (2011 - $0.5 million or $0.01 per diluted share).  
Adjusted net income, which consists of net income excluding stock-based 
compensation expense and the related tax benefit, was $17.9 million, or $0.26 
per diluted share, in the third quarter of 2012, as compared to adjusted net 
income of $9.5 million, or $0.14 per diluted share, for the third quarter of 
2011. A reconciliation of net income, the most directly comparable U.S. GAAP 
measure, to adjusted net income and adjusted net income per diluted share is 
presented in the table below:

 ____________________________________________________________________
||                  |Three Months Ended     ||Three Months Ended     |
||__________________|_______________________||_______________________|
||                  |September 30, 2012     ||September 30, 2011     |
||__________________|_______________________||_______________________|
||                  |Net Income||Diluted EPS||Net Income||Diluted EPS|
||__________________|__________||___________||__________||___________|
|Reported           |$|14,990  ||$|0.22     ||$|8,392   ||$|0.12     |
|___________________|_|________||_|_________||_|________||_|_________|
|Adjustments:       | |        || |         || |        || |         |
|___________________|_|________||_|_________||_|________||_|_________|
||Stock-based       | |2,756   || |0.04     || |519     || |0.01     |
||compensation      | |        || |         || |        || |         |
||__________________|_|________||_|_________||_|________||_|_________|
||Tax benefit of    | |114     || |-        || |549     || |0.01     |
||items listed above| |        || |         || |        || |         |
||__________________|_|________||_|_________||_|________||_|_________|
|Adjusted           |$|17,860  ||$|0.26     ||$|9,460   ||$|0.14     |
|___________________|_|________||_|_________||_|________||_|_________|
||                  | |        || |         || |        || |         |
||__________________|_|________||_|_________||_|________||_|_________|
|Weighted average   | |        || |         || |        || |         |
|diluted shares     | |        || |68,301   || |        || |67,756   |
|outstanding        | |        || |         || |        || |         |
|___________________|_|________||_|_________||_|________||_|_________|

Adjusted Net Income and Adjusted Diluted Per Share Calculations – Nine 
Months Ended September 30, 2012 vs. 2011:

The Company reported net income of $28.7 million or $0.44 per basic share and 
$0.42 per diluted share for the nine months ended September 30, 2012, as 
compared to net income of $9.2 million or $0.14 per basic and diluted share 
for the nine months ended September 30, 2011. Net income for the nine months 
ended September 30, 2012 includes a $10.3 million charge, or $0.15 per diluted 
share (2011 – $9.0 million or $0.13 per diluted share), for stock-based 
compensation. Net income for the nine months ended September 30, 2011 also 
includes a one-time $2.1 million pre-tax charge ($0.03 per diluted share), due 
to an arbitration award arising from an arbitration proceeding brought against 
the Company in connection with a discontinued subsidiary. Adjusted net income, 
which consists of net income excluding the impact of the stock-based 
compensation expense, the charge for the arbitration award and the related tax 
impact, was $38.8 million, or $0.57 per diluted share, in the nine months 
ended September 30, 2012, as compared to adjusted net income of $19.4 million, 
or $0.28 per diluted share, for the nine months ended September 30, 2011. A 
reconciliation of net income, the most directly comparable U.S. GAAP measure, 
to adjusted net income and adjusted net income per diluted share is presented 
in the table below:

 _____________________________________________________________________
||                 |Nine Months             ||Nine Months             |
||_________________|________________________||________________________|
||                 |Ended September 30, 2012||Ended September 30, 2011|
||_________________|________________________||________________________|
||                 |Net Income||Diluted EPS ||Net Income||Diluted EPS |
||_________________|__________||____________||__________||____________|
|Reported          |$|28,658  ||$|0.42      ||$|9,214   ||$|0.14      |
|__________________|_|________||_|__________||_|________||_|__________|
|Add:              | |        || |          || |        || |          |
|__________________|_|________||_|__________||_|________||_|__________|
||Stock-based      | |10,252  || |0.15      || |8,973   || |0.13      |
||compensation     | |        || |          || |        || |          |
||_________________|_|________||_|__________||_|________||_|__________|
||Provision for    | |-       || |-         || |2,055   || |0.03      |
||arbitration award| |        || |          || |        || |          |
||_________________|_|________||_|__________||_|________||_|__________|
||Tax impact on    | |        || |          || |        || |          |
||items listed     | |(86)    || |-         || |(882)   || |(0.02)    |
||above            | |        || |          || |        || |          |
||_________________|_|________||_|__________||_|________||_|__________|
|Adjusted          |$|38,824  ||$|0.57      ||$|19,360  ||$|0.28      |
|__________________|_|________||_|__________||_|________||_|__________|
||                 | |        || |          || |        || |          |
||_________________|_|________||_|__________||_|________||_|__________|
|Weighted average  | |        || |          || |        || |          |
|diluted shares    | |        || |68,187    || |        || |68,110    |
|outstanding       | |        || |          || |        || |          |
|__________________|_|________||_|__________||_|________||_|__________|

Free Cash Flow:

Free cash flow is defined as cash provided by operating activities minus cash 
used in investing activities (from the consolidated statements of cash flows). 
Cash provided by operating activities consist of net income, plus depreciation 
and amortization, plus the change in deferred income taxes, plus other 
non-cash items, plus changes in working capital, less investment in film 
assets, plus other changes in operating assets and liabilities. Cash used in 
investing activities includes capital expenditures, acquisitions and other 
cash used in investing activities. Management views free cash flow, a non-GAAP 
measure, as a measure of the Company's after-tax cash flow available to reduce 
debt, add to cash balances, and fund other financing activities.  A 
reconciliation of cash provided by operating activities to free cash flow is 
presented in the table below:
                               For the             For the( )
                               Three Months Ended  Nine Months Ended( )
                               September 30, 2012  September 30, 2012

(In thousands of U.S. Dollars)
( )

Net cash provided by operating $ 34,067            $ 53,910
activities ( )

Net cash (used in) investing     (3,797)             (23,200)
activities

Free cash flow                 $ 30,270            $ 30,710

http://www.imax.com

http://photos.prnewswire.com/prnh/20111107/MM01969LOGO

PRN Photo Desk, photodesk@prnewswire.com

SOURCE: IMAX Corporation

To view this news release in HTML formatting, please use the following URL: 
http://www.newswire.ca/en/releases/archive/October2012/25/c2042.html

CO: IMAX Corporation
ST: California
NI: FILM INTERNET ENT FIN ERN EST ERN CONF 

-0- Oct/25/2012 11:11 GMT

Sponsored Links
Advertisement
Advertisements
Sponsored Links
Advertisement