NYSE$IMAX

IMAX Corp · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Reported improved cash flow and reduced costs amidst global theatrical industry recovery, driven by resurgent box office in Asia.

IMAX Corporation reported third quarter results with revenue of $37.3 million and a net loss attributable to common shareholders of $47.2 million. The company ended the quarter with $305 million in cash and cash equivalents and expects average monthly cash flow to be approximately break-even for Q4 2020 and Q1 2021.

  • Global theatrical industry continues opening with IMAX network in Asia almost fully operational and robust local language titles driving IMAX box office grosses near pre-pandemic levels
  • IMAX ended the quarter with $305 million of cash and cash equivalents
  • Company expects average monthly cash flow for fourth quarter of 2020 and first quarter of 2021 to be approximately break-even, representing continued free cash flow improvement
  • IMAX installed 23 systems and signed agreements for ten systems in the quarter, demonstrating continued partner demand for IMAX® theater systems despite the temporary delay of major theatrical releases

Headline financials

Total Revenue

$37.3M

Previous: $86.4M-56.9%
EPS (adj)

-$0.75

Previous: $0.21-457.1%
Capital Expenditures

-$658K

Previous: -$5.53M+88.1%
Free Cash Flow

-$47.9M

Previous: $3.51M-1465.7%
Net Income

-$47.2M

Previous: $9.03M-622.6%
Operating Income

-$27.4M

Previous: $14.4M-290.1%
Gross Profit

$3.83M

Previous: $47.1M-91.9%
Cash & Equivalents

$305M

Previous: $103M+197.6%
Total Assets

$1.01B

Previous: $870M+15.8%

Revenue & EPS history

IMAX · Revenue · Quarterly

$37.3M

Q3 2020-56.9%vs Q3 2019
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

IMAX · $100M total across 2 segments · Q3 2023

  • Technology Products
    $56.2M
  • Content Solutions
    $44.2M

Forward guidance

Company expects average monthly cash flow for fourth quarter of 2020 and first quarter of 2021 to be approximately break-even, representing continued free cash flow improvement

Tailwinds

  • IMAX network in Asia almost fully operational
  • Robust local language titles driving IMAX box office grosses near pre-pandemic levels
  • Partner demand for IMAX theater systems despite the temporary delay of major theatrical releases
  • Strong local language slate continues to partially offset the lack of Hollywood releases in the market.
  • IMAX is poised to benefit from the impressive resurgence of the Asian film market.

Headwinds

  • COVID-19 related closure of the majority of the Company’s network through a portion of the third quarter
  • Notable non-cash items related to COVID-19 driven uncertainty
  • Delay of Hollywood releases
  • Reclosure of theaters in some markets.
  • IMAX maintenance revenue declined as COVID-19-related closures of IMAX theater systems through a portion of the quarter prevented the recognition of revenue.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

+1.2%

Avg return

Earnings day

+1.3%

Avg return

5 days after

+1.6%

Avg return

30 days after

52%

34 / 65 earnings

Positive

+18.6%

Q3 2017

Best reaction

-22.4%

Q2 2010

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.1%-4.0%+6.1%
Q4 2025+14.7%+12.8%+0.1%
Q3 2025+1.0%+2.2%+12.4%
Q1 2025-3.3%+1.2%+11.9%
Q4 2024-1.1%-3.0%-1.7%
Q3 2024+15.7%+15.2%+25.3%
Q2 2024+12.7%+15.8%+19.9%
Q1 2024-2.9%-9.3%-4.3%
Q4 2023+12.0%+7.7%+3.3%
Q3 2023-0.3%-0.4%-9.1%
Q2 2023+11.5%+8.9%+10.4%
Q1 2023+8.0%+4.6%-11.3%
Q4 2022+9.1%+8.9%+7.6%
Q3 2022-5.9%-2.4%+24.8%
Q2 2022-2.3%-2.5%-8.9%
Q1 2022+4.9%+9.4%+15.3%
Q4 2021+7.0%+4.7%-1.5%
Q3 2021-8.9%-4.7%-17.0%
Q2 2021-5.6%-7.6%-11.6%
Q1 2021-7.0%-4.5%-2.6%
Q4 2020+13.5%+6.9%-3.2%
Q3 2020-2.2%-1.2%+31.3%
Q2 2020-11.2%-10.7%+22.3%
Q1 2020-7.8%-7.8%+0.2%
Q4 2019+0.6%-3.0%-38.1%
Q3 2019+3.1%+3.3%+2.5%
Q2 2019+2.1%+0.0%-2.0%
Q1 2019-3.4%-2.5%-11.7%
Q4 2018+9.0%+10.5%+9.1%
Q3 2018-4.9%-5.8%-10.1%
Q2 2018-1.6%-5.8%+8.6%
Q1 2018-2.6%-1.9%-9.9%
Q4 2017-10.8%-11.4%-18.8%
Q3 2017+18.6%+15.5%+17.9%
Q2 2017-2.8%-1.4%-13.4%
Q1 2017-0.9%-3.3%-15.8%
Q4 2016+6.5%+5.2%+10.4%
Q3 2016+2.6%+1.1%+13.3%
Q2 2016+14.3%+9.9%-0.4%
Q1 2016-1.3%
Q4 2015-9.2%
Q3 2015+0.8%
Q2 2015-3.9%
Q1 2015+0.8%
Q4 2014+6.9%
Q3 2014+3.2%
Q2 2014+7.2%
Q1 2014-8.0%
Q4 2013+2.3%
Q3 2013+4.5%
Q2 2013+2.7%
Q1 2013-5.3%
Q4 2012+3.3%
Q3 2012+3.1%
Q2 2012-3.3%
Q1 2012-2.8%
Q4 2011-1.4%
Q4 2009-1.4%
Q3 2011+16.9%
Q3 2010+16.9%
Q2 2011-22.4%
Q2 2010-22.4%
Q4 2010+8.6%
Q1 2011+8.6%
Q1 2010-6.5%

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