IMAX Corporation Reports First Quarter 2013 Financial Results

HIGHLIGHTS 
- Company Reports First Quarter 2013 Revenues of $49.9 million 
- Q1 2013 Adjusted Earnings Per Diluted Share of $0.08 
- Summer Blockbuster Season Kicks off This Week with International Release of 
Iron Man 3 
NEW YORK, April 25, 2013 /CNW/ - IMAX Corporation (NYSE:IMAX; TSX:IMX) today 
reported first quarter 2013 revenues of $49.9 million, adjusted EBITDA as 
calculated in accordance with the Company's credit facility of $13.9 million, 
adjusted net income of $5.6 million, or $0.08 per diluted share, and reported 
net income of $2.9 million, or $0.04 per diluted share. 
(Logo: http://photos.prnewswire.com/prnh/20111107/MM01969LOGO) 
"In the first quarter, we continued to execute against our three main Company 
priorities for the year – Penetration, Differentiation, and Scale," said 
IMAX Chief Executive Officer Richard L. Gelfond. "We expect these to be key 
drivers of our long-term growth, while supporting our results in the 
near-term, and we are excited about the promising upcoming lineup of films in 
IMAX, particularly in the second quarter." 
Network Growth Update 
The total IMAX® theatre network consisted of 738 systems as of March 31, 
2013, of which 606 were in commercial multiplexes.  There were 283 theatre 
systems in backlog as of March 31, 2013, compared to 261 theatre systems in 
backlog as of March 31, 2012.  For a breakdown of theatre system signings, 
installations, network and backlog by type, please see the end of this press 
release. 
In the first quarter of 2013, the Company signed contracts for 25 theatre 
systems, of which 17 were in new theatre locations and 8 were additional 
signings for laser systems and conversion of some of the Company's film 
theatres to digital systems in existing theatre locations.  In the quarter the 
Company installed 17 theatre systems, of which 10 were in new theatre 
locations. 
"We are very pleased that we continue to penetrate different countries around 
the world, strengthening our presence in some and building strong theatres in 
new markets to catalyze future growth in others," Gelfond continued.  "Our 
one-of-a-kind, end-to-end entertainment solution is driving demand from 
exhibitor and studio partners from around the world, who have seen the value 
of being in the IMAX business.  We remain optimistic as our growth opportunity 
in underpenetrated international regions, combined with our ability to program 
each of those markets individually, continues to position IMAX as a unique 
player in the global entertainment industry." 
First-Quarter Segment Results 


    --  Revenue from sales and sales-type leases was $9.8 million in
        the first quarter of 2013, compared to $12.9 million in the
        first quarter of 2012, primarily reflecting the installation of
        six full, new theatre systems under sales and sales-type lease
        arrangements in the most recent first quarter, compared to
        eight full, new theatre systems in the first quarter of 2012.
        The Company also installed five digital system upgrades under
        sales or sales-type lease arrangements in the first quarter of
        2013, compared to 10 upgrades in the first quarter of 2012, and
        two digital systems under short-term operating lease
        arrangements.
    --  Revenue from joint revenue-sharing arrangements was $9.4
        million, compared to $11.7 million in the prior-year period.
        During the quarter, the Company installed four new theatres
        under joint revenue-sharing arrangements, compared to eight in
        the year-ago period. The Company had 319 theatres operating
        under joint revenue-sharing arrangements as of March 31, 2013,
        as compared to 265 theatres one year prior.
    --  Production and IMAX DMR® (Digital Re-Mastering) revenues were
        $14.4 million in the first quarter of 2013, compared to $13.8
        million in the first quarter of 2012. Gross box office from DMR
        titles was $128.7 million in the first quarter of 2013,
        compared to $121.7 million in the prior-year period. The
        average global DMR box office per screen in the first quarter
        of 2013 was $212,900, compared to $247,600 in the prior-year
        period.

"Looking ahead, the heart of the summer box office season kicks into gear this 
week including the release of the IMAX® 3D version of Iron Man 3, followed by 
Star Trek: Into Darkness, Man of Steel and an international only release of 
Fast & Furious 6, providing a strong foundation for our full portfolio of 
films this year," Gelfond concluded. "We have secured many key tentpole films 
for the remainder of 2013, as well as 2014 and beyond, including Christopher 
Nolan's Interstellar and Michael Bay's Transformers 4, both of which will be 
captured with IMAX cameras, demonstrating the ongoing desire of studios and 
filmmakers to leverage the IMAX platform to bring audiences the most immersive 
entertainment experiences that they cannot get anywhere else."

Conference Call The Company will host a conference call today at 8:30 AM ET to 
discuss its first quarter 2013 financial results.  To access the call via 
telephone, interested parties should dial (800) 820-0231 approximately 5 to 10 
minutes before it begins.  International callers should dial (416) 640-5926.  
The participant passcode for the call is 7114021.  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 (US and Canada) or (647) 436-0148 (international). The 
Conference ID for the telephone replay is 7114021.

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 Mar. 31, 2013, there were 738 IMAX 
theatres (606 commercial multiplexes, 19 commercial destinations and 113 
institutions) in 53 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; 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; 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; risks related to the Company's growth and operations in 
China; 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 new business 
initiatives; 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 Eastman Kodak 
bankruptcy and the possibility of constrained film supply; risks related to 
the Company's implementation of a new enterprise resource planning system; 
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, other risks and uncertainties and financial details are discussed in 
IMAX's most recent Annual Report on Form 10-K and Quarterly Reports on Form 
10-Q.

For additional information please contact:

 
________________________________________________________________________________________________________________________
_______________________________________________________________________
|Investors:                                                                                 |Media:                     


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|IMAX Corporation, New York                                                                 |IMAX Corporation, New York  
                                                                    |
|                                                                                           |                            
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|Teri Loxam/Blaire Lomasky                                                                  |Ann Sommerlath              
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|212-821-0100                                                                               |212-821-0155                
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|tloxam@imax.com      |asommerlath@imax.com    |
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|blomasky@imax.com  |Entertainment Media:                                                                               
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|                                                                                           |                            
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|Business Media:                                                                            |Principal Communications 
Group, Los Angeles                                                        |
|                                                                                           |                            
                                                                    |
|Sloane & Company, New York                                                                 |Melissa Zuckerman/Paul 
Pflug                                                                       |
|                                                                                           |                            
                                                                    |
|Whit Clay                                                                                  |323-658-1555                
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|                                                                                           |                            
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|212-446-1864                                                                               |melissa@pcommgroup.com|
|                                                                                           |                            
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|wclay@sloanepr.com|paul@pcommgroup.com      |
|___________________________________________________________________________________________|___________________________
________________________________________________________________________| 
Additional Information 
Theatre Network Details: 
                                         Three Months 
                                         Ended March 31, 
Theatre Signings:                            2013          2012 
 Full new sales and sales-type lease         14   ((1))    18
 arrangements 
 New joint revenue sharing arrangements      3             5 
Total new theatres                           17            23 


    Upgrades of IMAX theatre systems            8    ((2)(3)) -

Total Theatre Signings                       25            23
                                             Three Months
                                             Ended March 31,

Theatre Installations:                       2013          2012

 Full new sales and sales-type lease         6             8
 arrangements

 New joint revenue sharing arrangements      4             8

Total new theatres                           10            16
    Upgrades of IMAX theatre systems            7    ((2))    10

Total Theatre Installations                  17            26
                                             As of March 31,

Theatre Backlog:                             2013          2012

 New sales and sales-type lease arrangements 135           144

 New joint revenue sharing arrangements      136           116

Total new theatres                           271           260
    Upgrades of IMAX theatre systems            12   ((2)(3)) 1

Total Theatres in Backlog                    283  ((4))    261  ((4))
                                             As of March 31,

Theatre Network:                             2013          2012

Commercial Multiplex Theatres:

 Sales and sales-type lease arrangements     287           245

 Joint revenue sharing arrangements          319           265

Total Commercial Multiplex Theatres          606           510



Commercial Destination Theatres              19            20

Institutional Theatres                       113           113

Total IMAX Theatre Network                   738           643



______________________

(1) Includes one signing which replaced a theatre under an existing
arrangement in backlog.

(2) Includes upgrades to xenon-based digital systems under short-term
operating lease arrangements (2 signings, 2 installations, 5 in
backlog).

(3) Includes installation of laser-based digital systems in existing
theatre locations (2 signings, 7 in backlog).

(4) Reflects the minimum number of theatres arising from signed
contracts in backlog.

Additional Information (continued)

2013 DMR Films Announced to Date:    To date, IMAX has announced 28 titles to 
be released in 2013.  The Company released 35 titles in 2012.  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.
    --  The Grandmaster: The IMAX Experience (Jet Tone Films and
        Sil-Metropole Organization, January 2013, China only);
    --  Hansel & Gretel: Witch Hunters: An IMAX 3D Experience
        (Paramount Pictures, January 2013);
    --  Journey to the West: Conquering the Demons: An IMAX 3D
        Experience (Bingo Movie Development Ltd, February 2013, China
        only);
    --  Top Gun: An IMAX 3D Experience (Paramount Pictures, February
        2013);
    --  A Good Day to Die Hard: The IMAX Experience (Twentieth Century
        Fox, February 2013);
    --  Jack the Giant Slayer: An IMAX 3D Experience (Warner Bros.,
        March 2013);
    --  Oz: The Great and Powerful: An IMAX 3D Experience (Walt Disney
        Pictures, March 2013);
    --  G.I. Joe: Retaliation: An IMAX 3D Experience (Paramount
        Pictures, March 2013);
    --  Dragon Ball Z: Battle of the Gods: An IMAX 3D Experience (Toei
        Animation Company, March 2013, Japan only);
    --  Jurassic Park: An IMAX 3D Experience (Universal Pictures, April
        2013);
    --  Oblivion: The IMAX Experience (Universal Pictures, April 2013);
    --  Iron Man 3: An IMAX 3D Experience (Walt Disney Pictures, May
        2013);
    --  Star Trek: Into Darkness: An IMAX 3D Experience (Paramount
        Pictures, May 2013);
    --  Fast & Furious 6: The IMAX Experience (Universal, May 2013,
        international only);
    --  After Earth: The IMAX Experience (Sony, May 2013);
    --  Man of Steel: The IMAX Experience (Warner Bros., June 2013);
    --  Despicable Me 2: An IMAX 3D Experience (Universal Pictures,
        July 2013, international only);
    --  Pacific Rim: An IMAX 3D Experience (Warner Bros., July 2013);
    --  300: Rise of an Empire: An IMAX 3D Experience (Warner Bros.,
        August 2013);
    --  Riddick Sequel: The IMAX Experience (Universal Pictures,
        September 2013);
    --  Metallica Through the Never: An IMAX 3D Experience
        (Picturehouse, September 2013);
    --  Gravity: An IMAX 3D Experience (Warner Bros., October 2013);
    --  Stalingrad: An IMAX 3D Experience (AR Films, October 2013,
        Russia and the CIS only );
    --  Seventh Son: An IMAX 3D Experience (Warner Bros., October
        2013);
    --  Ender's Game: The IMAX Experience (Lionsgate, November 2013);
    --  The Hunger Games: Catching Fire: The IMAX Experience
        (Lionsgate, November 2013);
    --  The Hobbit: The Desolation of Smaug: An IMAX 3D Experience
        (Warner Bros., December 2013); and
    --  Dhoom 3: The IMAX Experience (Yash Raj Films, 2013, India
        only).

 ___________________________________________________________________
|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       |
||______________________________________________|___________________|
||                                              |Ended March 31,    |
||______________________________________________|___________________|
||                                              |2013     ||2012*   |
||______________________________________________|_________||________|
|Revenues                                       | |       || |      |
|_______________________________________________|_|_______||_|______|
|Equipment and product sales                    |$|10,679 ||$|14,379|
|_______________________________________________|_|_______||_|______|
|Services                                       | |26,859 || |27,067|
|_______________________________________________|_|_______||_|______|
|Rentals                                        | |9,972  || |12,470|
|_______________________________________________|_|_______||_|______|
|Finance income                                 | |1,984  || |1,680 |
|_______________________________________________|_|_______||_|______|
|Other                                          | |375    || |-     |
|_______________________________________________|_|_______||_|______|
||                                              | |49,869 || |55,596|
||______________________________________________|_|_______||_|______|
|Costs and expenses applicable to revenues      | |       || |      |
|_______________________________________________|_|_______||_|______|
|Equipment and product sales                    | |5,059  || |9,095 |
|_______________________________________________|_|_______||_|______|
|Services                                       | |15,318 || |15,620|
|_______________________________________________|_|_______||_|______|
|Rentals                                        | |3,453  || |4,020 |
|_______________________________________________|_|_______||_|______|
|Other                                          | |-      || |-     |
|_______________________________________________|_|_______||_|______|
||                                              | |23,830 || |28,735|
||______________________________________________|_|_______||_|______|
|Gross margin                                   | |26,039 || |26,861|
|_______________________________________________|_|_______||_|______|
|Selling, general and administrative expenses   | |17,476 || |19,168|
|_______________________________________________|_|_______||_|______|
|(including share-based compensation expense of $2.8 million for the|
|three months ended March 31, 2013 (2012 - $3.8 million))           |
|___________________________________________________________________|
|Research and development                       | |3,634  || |2,630 |
|_______________________________________________|_|_______||_|______|
|Amortization of intangibles                    | |364    || |176   |
|_______________________________________________|_|_______||_|______|
|Receivable provision, net of recoveries        | |-      || |451   |
|_______________________________________________|_|_______||_|______|
|Income from operations                         | |4,565  || |4,436 |
|_______________________________________________|_|_______||_|______|
|Interest income                                | |13     || |24    |
|_______________________________________________|_|_______||_|______|
|Interest expense                               | |(345)  || |(526) |
|_______________________________________________|_|_______||_|______|
|Income from continuing operations before income| |4,233  || |3,934 |
|taxes                                          | |       || |      |
|_______________________________________________|_|_______||_|______|
|Provision for income taxes                     | |(1,152)|| |(966) |
|_______________________________________________|_|_______||_|______|
|Loss from equity-accounted investments         | |(220)  || |(459) |
|_______________________________________________|_|_______||_|______|
|Net income                                     |$|2,861  ||$|2,509 |
|_______________________________________________|_|_______||_|______|
||                                              | |       || |      |
||______________________________________________|_|_______||_|______|
|Net income per share - basic & diluted:        | |       || |      |
|_______________________________________________|_|_______||_|______|
||Net income per share – basic & diluted  |$|0.04   ||$|0.04  |
||______________________________________________|_|_______||_|______|
||                                              | |       || |      |
||______________________________________________|_|_______||_|______|
|Weighted average number of shares outstanding  | |       || |      |
|(000's):                                       | |       || |      |
|_______________________________________________|_|_______||_|______|
||Basic                                         | |66,646 || |65,402|
||______________________________________________|_|_______||_|______|
||Fully Diluted                                 | |68,690 || |68,158|
||______________________________________________|_|_______||_|______|
||                                              | |       || |      |
||______________________________________________|_|_______||_|______|
|Additional Disclosure:                         | |       || |      |
|_______________________________________________|_|_______||_|______|
||                                              | |       || |      |
||______________________________________________|_|_______||_|______|
|Depreciation and amortization                  |$|8,591  ||$|7,466 |
|_______________________________________________|_|_______||_|______|
|                                                                   |
|___________________________________________________________________|
|______________________                                             |
|___________________________________________________________________|
|* Reflects a revision resulting from an adjustment to reflect an   |
|unfunded postretirement obligation of the Company.                 |
|___________________________________________________________________|

 ____________________________________________________________________
|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       |
|__________________________________________|___________||____________|
|                                          |March 31,  ||December 31,|
|__________________________________________|___________||____________|
|                                          |2013       ||2012        |
|__________________________________________|___________||____________|
|                                          |(unaudited)|| |          |
|__________________________________________|___________||_|__________|
|Assets                                    | |         || |          |
|__________________________________________|_|_________||_|__________|
|Cash and cash equivalents                 |$|15,158   ||$|21,336    |
|__________________________________________|_|_________||_|__________|
|Accounts receivable, net of allowance for | |         || |          |
|doubtful accounts of $1,564 (December 31, | |48,360   || |42,007    |
|2012 — $1,564)                      | |         || |          |
|__________________________________________|_|_________||_|__________|
|Financing receivables                     | |96,204   || |94,193    |
|__________________________________________|_|_________||_|__________|
|Inventories                               | |14,452   || |15,794    |
|__________________________________________|_|_________||_|__________|
|Prepaid expenses                          | |4,781    || |3,833     |
|__________________________________________|_|_________||_|__________|
|Film assets                               | |4,427    || |3,737     |
|__________________________________________|_|_________||_|__________|
|Property, plant and equipment             | |120,764  || |113,610   |
|__________________________________________|_|_________||_|__________|
|Other assets                              | |25,410   || |23,963    |
|__________________________________________|_|_________||_|__________|
|Deferred income taxes                     | |35,654   || |36,461    |
|__________________________________________|_|_________||_|__________|
|Goodwill                                  | |39,027   || |39,027    |
|__________________________________________|_|_________||_|__________|
|Other intangible assets                   | |28,101   || |27,911    |
|__________________________________________|_|_________||_|__________|
|Total assets                              |$|432,338  ||$|421,872   |
|__________________________________________|_|_________||_|__________|
|                                          | |         || |          |
|__________________________________________|_|_________||_|__________|
|Liabilities                               | |         || |          |
|__________________________________________|_|_________||_|__________|
|Bank indebtedness                         |$|18,000   ||$|11,000    |
|__________________________________________|_|_________||_|__________|
|Accounts payable                          | |16,155   || |15,144    |
|__________________________________________|_|_________||_|__________|
|Accrued and other liabilities             | |61,335   || |68,695    |
|__________________________________________|_|_________||_|__________|
|Deferred revenue                          | |76,364   || |73,954    |
|__________________________________________|_|_________||_|__________|
|Total liabilities                         | |171,854  || |168,793   |
|__________________________________________|_|_________||_|__________|
|                                          | |         || |          |
|__________________________________________|_|_________||_|__________|
|                                          | |         || |          |
|__________________________________________|_|_________||_|__________|
|                                          | |         || |          |
|__________________________________________|_|_________||_|__________|
|Shareholders' equity                      | |         || |          |
|__________________________________________|_|_________||_|__________|
|Capital stock, common shares — no par |         || |          |
|value. Authorized — unlimited number. |         || |          |
|____________________________________________|_________||_|__________|
|Issued and outstanding — 66,866,076 | |317,144  || |313,744   |
|(December 31, 2012 — 66,482,425)    | |         || |          |
|__________________________________________|_|_________||_|__________|
|Other equity                              | |30,239   || |28,892    |
|__________________________________________|_|_________||_|__________|
|Deficit                                   | |(84,305) || |(87,166)  |
|__________________________________________|_|_________||_|__________|
|Accumulated other comprehensive loss      | |(2,594)  || |(2,391)   |
|__________________________________________|_|_________||_|__________|
|Total shareholders' equity                | |260,484  || |253,079   |
|__________________________________________|_|_________||_|__________|
|Total liabilities and shareholders' equity|$|432,338  ||$|421,872   |
|__________________________________________|_|_________||_|__________|
|                                          | |         || |          |
|__________________________________________|_|_________||_|__________|
|                                          | |         || |          |
|__________________________________________|_|_________||_|__________|
|                                                                    |
|____________________________________________________________________|

 _____________________________________________________________________
|IMAX CORPORATION                                                     |
|_____________________________________________________________________|
|CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS                      |
|_____________________________________________________________________|
|In accordance with United States Generally Accepted Accounting       |
|Principles                                                           |
|_____________________________________________________________________|
|(In thousands of U.S. dollars)                                       |
|_____________________________________________________________________|
|(Unaudited)                                                          |
|_____________________________________________________________________|
|                                                                     |
|_____________________________________________________________________|
||                                             |Three Months          |
||_____________________________________________|______________________|
||                                             |Ended March 31,       |
||_____________________________________________|______________________|
||                                             |2013      ||2012*     |
||_____________________________________________|__________||__________|
|Cash provided by (used in):                   | |        ||          |
|______________________________________________|_|________||__________|
|Operating Activities                          | |        || |        |
|______________________________________________|_|________||_|________|
|Net income                                    |$|2,861   ||$|2,509   |
|______________________________________________|_|________||_|________|
|Adjustments to reconcile net income to cash   | |        || |        |
|from operations:                              | |        || |        |
|______________________________________________|_|________||_|________|
||Depreciation and amortization                | |8,591   || |7,466   |
||_____________________________________________|_|________||_|________|
||Write-downs, net of recoveries               | |-       || |481     |
||_____________________________________________|_|________||_|________|
||Change in deferred income taxes              | |904     || |624     |
||_____________________________________________|_|________||_|________|
||Stock and other non-cash compensation        | |3,000   || |4,088   |
||_____________________________________________|_|________||_|________|
||Gain on curtailment of postretirement        | |(2,185) || |-       |
||benefits                                     | |        || |        |
||_____________________________________________|_|________||_|________|
||Unrealized foreign currency exchange loss    | |189     || |(1,388) |
||(gain)                                       | |        || |        |
||_____________________________________________|_|________||_|________|
||Loss on equity-accounted investments         | |220     || |459     |
||_____________________________________________|_|________||_|________|
|Investment in film assets                     | |(3,866) || |(3,958) |
|______________________________________________|_|________||_|________|
|Changes in other non-cash operating assets and| |(10,703)|| |145     |
|liabilities                                   | |        || |        |
|______________________________________________|_|________||_|________|
||Net cash (used in) provided by operating     | |(989)   || |10,426  |
||activities                                   | |        || |        |
||_____________________________________________|_|________||_|________|
||                                             | |        || |        |
||_____________________________________________|_|________||_|________|
|Investing Activities                          | |        || |        |
|______________________________________________|_|________||_|________|
|Purchase of property, plant and equipment     | |(3,315) || |(374)   |
|______________________________________________|_|________||_|________|
|Investment in joint revenue sharing equipment | |(8,717) || |(7,088) |
|______________________________________________|_|________||_|________|
|Investment in new business ventures           | |-       || |(381)   |
|______________________________________________|_|________||_|________|
|Acquisition of other intangible assets        | |(778)   || |(2,568) |
|______________________________________________|_|________||_|________|
||Net cash used in investing activities        | |(12,810)|| |(10,411)|
||_____________________________________________|_|________||_|________|
||                                             | |        || |        |
||_____________________________________________|_|________||_|________|
|Financing Activities                          | |        || |        |
|______________________________________________|_|________||_|________|
|Increase in bank indebtedness                 | |12,000  || |4,917   |
|______________________________________________|_|________||_|________|
|Repayment of bank indebtedness                | |(5,000) || |(5,000) |
|______________________________________________|_|________||_|________|
|Common shares issued - stock options exercised| |2,485   || |3,488   |
|______________________________________________|_|________||_|________|
|Credit facility amendment fees paid           | |(1,881) || |-       |
|______________________________________________|_|________||_|________|
||Net cash provided by financing activities    | |7,604   || |3,405   |
||_____________________________________________|_|________||_|________|
||                                             | |        || |        |
||_____________________________________________|_|________||_|________|
|Effects of exchange rate changes on cash      | |17      || |30      |
|______________________________________________|_|________||_|________|
||                                             | |        || |        |
||_____________________________________________|_|________||_|________|
|(Decrease) increase in cash and cash          | |(6,178) || |3,450   |
|equivalents during the period                 | |        || |        |
|______________________________________________|_|________||_|________|
||                                             | |        || |        |
||_____________________________________________|_|________||_|________|
|Cash and cash equivalents, beginning of period| |21,336  || |18,138  |
|______________________________________________|_|________||_|________|
|Cash and cash equivalents, end of period      |$|15,158  ||$|21,588  |
|______________________________________________|_|________||_|________|
||                                             | |        || |        |
||_____________________________________________|_|________||_|________|
|                                                                     |
|_____________________________________________________________________|

 ______________________________________________________________
|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 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 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         |
|||______________________________________|_____________________|
|||                                      |Ended March 31,      |
|||______________________________________|_____________________|
|||                                      | |2013  || |2012     |
|||______________________________________|_|______||_|_________|
|Revenue                                 | |      || |         |
|________________________________________|_|______||_|_________|
|Theater Systems                         | |      || |         |
|________________________________________|_|______||_|_________|
||IMAX Systems                           | |      || |         |
||_______________________________________|_|______||_|_________|
|||Sales and sales-type leases           |$|9,796 ||$|12,865   |
|||______________________________________|_|______||_|_________|
|||Ongoing rent, fees, and finance income| |2,942 || |2,793    |
|||______________________________________|_|______||_|_________|
|||Other                                 | |1,983 || |2,340    |
|||______________________________________|_|______||_|_________|
|||                                      | |14,721|| |17,998   |
|||______________________________________|_|______||_|_________|
||Theater system maintenance             | |7,789 || |6,847    |
||_______________________________________|_|______||_|_________|
||Joint revenue sharing arrangements     | |9,376 || |11,698   |
||_______________________________________|_|______||_|_________|
|||                                      | |      || |         |
|||______________________________________|_|______||_|_________|
|Film                                    | |      || |         |
|________________________________________|_|______||_|_________|
||Production and IMAX DMR                | |14,355|| |13,838   |
||_______________________________________|_|______||_|_________|
||Film distribution and post-production  | |3,628 || |5,215    |
||_______________________________________|_|______||_|_________|
|||                                      | |17,983|| |19,053   |
|||______________________________________|_|______||_|_________|
|Total                                   |$|49,869||$|55,596   |
|________________________________________|_|______||_|_________|
|||                                      | |      || |         |
|||______________________________________|_|______||_|_________|
|Gross margins                           | |      || |         |
|________________________________________|_|______||_|_________|
|Theater Systems                         | |      || |         |
|________________________________________|_|______||_|_________|
||IMAX systems((1))                      | |      || |         |
||_______________________________________|_|______||_|_________|
|||Sales and sales-type leases           |$|5,284 ||$|4,650    |
|||______________________________________|_|______||_|_________|
|||Ongoing rent, fees, and finance income| |2,907 || |2,762    |
|||______________________________________|_|______||_|_________|
|||Other                                 | |(349) || |(457)    |
|||______________________________________|_|______||_|_________|
|||                                      | |7,842 || |6,955    |
|||______________________________________|_|______||_|_________|
||Theater system maintenance             | |3,054 || |2,726    |
||_______________________________________|_|______||_|_________|
||Joint revenue sharing arrangements((1))| |6,159 || |7,937    |
||_______________________________________|_|______||_|_________|
|||                                      | |      || |         |
|||______________________________________|_|______||_|_________|
|Film                                    | |      || |         |
|________________________________________|_|______||_|_________|
||Production and IMAX DMR((1))           | |9,213 || |7,930    |
||_______________________________________|_|______||_|_________|
||Film distribution and post-production  | |(229) || |1,313    |
||_______________________________________|_|______||_|_________|
|||                                      | |8,984 || |9,243    |
|||______________________________________|_|______||_|_________|
|Total                                   |$|26,039||$|26,861   |
|________________________________________|_|______||_|_________|
|                                                              |
|______________________________________________________________|
|_________                                                     |
|______________________________________________________________|
|(1) IMAX systems include commission costs of $0.3 million for |
|the three months ended March 31, 2013 (2012 — $0.7      |
|million). Joint revenue sharing arrangements segment margins  |
|include advertising, marketing and commission costs of $0.2   |
|million for the three months ended March 31, 2013 (2012       |
|— $0.4 million). Production and DMR segment margins     |
|include marketing costs of $0.9 million for the three months  |
|ended March 31, 2013 (2012 — $0.6 million). Distribution|
|segment margins include marketing costs of $0.1 million for   |
|the three months ended March 31, 2013 (2012 — $0.8      |
|million).                                                     |
|______________________________________________________________|

 _____________________________________________________________________
|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 and adjusted net income per diluted share 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  |
|and adjusted net income per diluted share 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|
|expense and the related tax impact. 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 and adjusted net income per diluted share|
|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 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 Fixed Charge Coverage Ratio (as defined in the Credit     |
|Agreement) of not less than 1.1:1.0. The Company will also be        |
|required to maintain minimum EBITDA (as defined in the Credit        |
|Agreement) of $70.0 million between closing and December 30, 2013,   |
|which requirement increases to $80.0 million on December 31, 2013,   |
|$90.0 million on December 31, 2014, and $100.0 million on December   |
|31, 2015. The Company must also maintain a Maximum Total Leverage    |
|Ratio (as defined in the Credit Agreement) of 2.5:1.0 between closing|
|and December 30, 2013, which requirement decreases to (i) 2.25:1.0 on|
|December 31, 2013; (ii) 2.00:1:0 on December 31, 2014; and (iii)     |
|1.75:1.0 on December 31, 2015. The ratio of total debt to EBITDA was |
|0.17:1 as at March 31, 2013, where Total Debt (as defined in the     |
|Credit Agreement) is the sum of all obligations evidenced by notes,  |
|bonds, debentures or similar instruments and was $18.0 million.      |
|EBITDA is calculated as follows:                                     |
|_____________________________________________________________________|
|                                                                     |
|_____________________________________________________________________|
||                            |Three months ended||Twelve months ended|
||____________________________|__________________||___________________|
|                             |March 31, 2013    ||March 31, 2013     |
|_____________________________|__________________||___________________|
|(In thousands of U.S Dollars)| |                || |                 |
|_____________________________|_|________________||_|_________________|
|Net income                   |$|2,861           ||$|41,689           |
|_____________________________|_|________________||_|_________________|
|Add:                         | |                || |                 |
|_____________________________|_|________________||_|_________________|
||Loss from equity accounted  | |220             || |1,123            |
||investments                 | |                || |                 |
||____________________________|_|________________||_|_________________|
||Provision for income taxes  | |1,152           || |15,265           |
||____________________________|_|________________||_|_________________|
||Interest expense, net of    | |331             || |433              |
||interest income ((1))       | |                || |                 |
||____________________________|_|________________||_|_________________|
||Depreciation and            | |                || |                 |
||amortization, including film| |8,493           || |33,686           |
||asset amortization          | |                || |                 |
||____________________________|_|________________||_|_________________|
||Write-downs net of          | |                || |                 |
||recoveries including asset  | |-               || |1,126            |
||impairments and receivable  | |                || |                 |
||provisions                  | |                || |                 |
||____________________________|_|________________||_|_________________|
||Gain on curtailment of      | |(2,185)         || |(2,185)          |
||postretirement benefits     | |                || |                 |
||____________________________|_|________________||_|_________________|
||Stock and other non-cash    | |3,000           || |13,132           |
||compensation                | |                || |                 |
||____________________________|_|________________||_|_________________|
||                            |$|13,872          ||$|104,269          |
||____________________________|_|________________||_|_________________|
|                                                                     |
|_____________________________________________________________________|
|____________                                                         |
|_____________________________________________________________________|
|(1) Includes $0.1 million of amortization of deferred financing costs|
|charged to interest expense for the three months ended March 31, 2013|
|(2012 – less than $0.1 million).                               |
|_____________________________________________________________________|

 _____________________________________________________________________
|IMAX CORPORATION                                                     |
|_____________________________________________________________________|
|OTHER INFORMATION                                                    |
|_____________________________________________________________________|
|(in thousands of U.S. dollars)                                       |
|_____________________________________________________________________|
|                                                                     |
|_____________________________________________________________________|
|Adjusted Net Income and Adjusted Diluted Earnings Per Share          |
|Calculations – Quarter Ended March 31, 2013 vs. 2012:          |
|_____________________________________________________________________|
|The Company reported net income of $2.9 million, or $0.04 per basic  |
|and diluted share, for the first quarter of 2013, as compared to net |
|income of $2.5 million or $0.04 per basic and diluted share for the  |
|first quarter of 2012. Net income for the first quarter of 2013      |
|includes a $2.8 million charge, or $0.04 per diluted share, for      |
|stock-based compensation (2012 - $3.8 million or $0.05 per diluted   |
|share). Adjusted net income, which consists of net income excluding  |
|stock-based compensation expense and the related tax benefit, was    |
|$5.6 million, or $0.08 per diluted share, in the first quarter of    |
|2013, as compared to adjusted net income of $6.1 million, or $0.09   |
|per diluted share, for the first quarter of 2012. A reconciliation of|
|net income, the most directly comparable U.S. GAAP measure, to       |
|adjusted net income and adjusted net income per diluted share is     |
|presented in the table below:                                        |
|_____________________________________________________________________|
|                                                                     |
|_____________________________________________________________________|
||                   |Three Months Ended     ||Three Months Ended     |
||___________________|_______________________||_______________________|
||                   |March 31, 2013         ||March 31, 2012*        |
||___________________|_______________________||_______________________|
||                   |Net Income||Diluted EPS||Net Income||Diluted EPS|
||___________________|__________||___________||__________||___________|
|Reported            |$|2,861   ||$|0.04     ||$|2,509   ||$|0.04     |
|____________________|_|________||_|_________||_|________||_|_________|
|Adjustments:        | |        || |         || |        || |         |
|____________________|_|________||_|_________||_|________||_|_________|
||Stock-based        | |2,808   || |0.04     || |3,802   || |0.05     |
||compensation       | |        || |         || |        || |         |
||___________________|_|________||_|_________||_|________||_|_________|
||Tax benefit on item| |(105)   || |-        || |(200)   || |-        |
||listed above       | |        || |         || |        || |         |
||___________________|_|________||_|_________||_|________||_|_________|
|Adjusted            |$|5,564   ||$|0.08     ||$|6,111   ||$|0.09     |
|____________________|_|________||_|_________||_|________||_|_________|
||                   | |        || |         || |        || |         |
||___________________|_|________||_|_________||_|________||_|_________|
|Weighted average    | |        || |         || |        || |         |
|diluted shares      | |        || |68,690   || |        || |68,158   |
|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:                                                              |
|____________________________________________________________________|
                                                     Three Months Ended

(In thousands of U.S. Dollars)                       March 31, 2013



Net cash (used in) operating activities              $ (989)
( )

Net cash (used in) investing activities                (12,810)

Free cash flow                                       $ (13,799)

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SOURCE: IMAX Corporation

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CO: IMAX Corporation
ST: New York
NI: ENT FILM INTERNET ERN CONF 

-0- Apr/25/2013 11:06 GMT


 
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