• Adjusted EBITDA (Q4 2024): $37 million, up 48% year-over-year.
• Adjusted EPS (Q4 2024): $0.27, up 59% year-over-year.
• Full Year Revenue (2024): $352 million.
• Adjusted EBITDA Margin (2024): 39%.
• Operating Cash Flow (2024): $71 million, a 21% improvement year-over-year.
• System Installations (2024): 146 systems, with 57% under joint revenue sharing arrangements.
• Q4 Revenue (2024): $93 million, up 8% year-over-year.
• Content Solutions Revenue (Q4 2024): $26 million, up 34% year-over-year.
• Technology Products and Services Revenue (Q4 2024): $64 million, up 2% year-over-year.
• Q4 Gross Margin (2024): 52%.
• SG&A (Q4 2024): $27 million, a $2 million improvement year-over-year.
• Cash Position (End of 2024): $101 million.
• Debt (End of 2024): $269 million.
• Capital Expenditure (2024): $41 million.
• Share Repurchases (2024): $18 million.
• 2025 Box Office Guidance: Over $1.2 billion.
• System Installation Guidance (2025): 145 to 160 systems.
• Adjusted EBITDA Margin Guidance (2025): Minimum 40%.

Release Date: February 19, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Imax Corp (NYSE:IMAX) reported a record-breaking Chinese New Year slate, with more than $120 million in box office revenue, indicating strong demand in China.
• The company expanded its global network, securing partnerships with major exhibitors like Wanda and AMC, and entered agreements with new partners across North America.
• Imax Corp (NYSE:IMAX) achieved solid financial results for the fourth quarter, with adjusted EBITDA up 48% to $37 million and adjusted EPS up 59% to $0.27 per share.
• The company has a promising film slate for 2025, including major titles like Avatar 3, Mission Impossible, and Marvel's Thunderbolts, which are expected to drive box office growth.
• Imax Corp (NYSE:IMAX) successfully negotiated a first-of-its-kind partnership with Netflix for exclusive IMAX releases, showcasing its leverage and unique standing in the market.

Negative Points

• The company faced a significant headwind in 2024 due to softness in the China box office, impacting overall financial performance.
• Despite strong results, the fourth-quarter box office fell short of expectations due to underperformance in China and a softer-than-expected Christmas holiday period.
• Imax Corp (NYSE:IMAX) dealt with headwinds from an uneven strike-impacted slate and weak foreign currency as the U.S. dollar strengthened.
• The company has a convertible senior note due in April 2026, which may require strategic financial planning for maturity.
• There is uncertainty regarding the impact of the 'Ne Zha effect' on future business in China, as the extent of its influence on screen signings and market share is still unknown.

Q & A Highlights

Q: Can you provide insight into the screen count growth for North America, China, and the rest of the world? A: Richard Gelfond, CEO, mentioned that while they guided to 145 to 160 installs, the specific territories won't materially impact the box office in any one region. He highlighted Japan and Western Europe as strong markets, with significant activity in North America as well.

Q: Could you expand on the partnership with Netflix for Narnia and its future potential? A: Richard Gelfond explained that the deal with Netflix was complex, involving multiple stakeholders. While not every Netflix movie will be suitable for IMAX, this partnership could serve as a template for future collaborations, especially for franchise launches and global events.

Q: How do you view the recent strong performance in China, and do you have enough content to sustain growth throughout the year? A: Richard Gelfond noted that the strong performance was driven by a favorable movie mix and pent-up demand. Daniel Manwaring, CEO of IMAX China, added that the Chinese slate is more transparent and healthier this year, with big-budget films and strong Hollywood titles like Avatar 3 and Mission Impossible.

Q: With the demand for IMAX at an all-time high, how does this affect negotiations with studios and potential for better economics? A: Richard Gelfond stated that while revenue splits with studios remain consistent, IMAX leverages its position to gain more prominent marketing and flexible scheduling, which helps build a larger audience and increase capacity utilization.

Q: What are your thoughts on the potential for more screens in China given the recent market performance? A: Richard Gelfond acknowledged the potential for increased demand due to the strong market performance, but emphasized that strategic decisions on joint ventures will remain focused on Tier 1 and Tier 2 cities, maintaining high underwriting standards.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.