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Jun 30, 2020
IMAX Q2 2020 Earnings Report
Reported a significant decrease in revenue due to global pandemic and theater closures.
Key Takeaways
IMAX Corporation reported a challenging second quarter due to the global pandemic, with a 92% decrease in revenue compared to the previous year. However, the company has taken cost reduction measures and is seeing early signs of progress with theater reopenings in China and other parts of the world. IMAX has a strong balance sheet with $319 million in consolidated cash and has amended its credit agreement for increased financial flexibility.
409 IMAX theaters reopened in China over the July 24th weekend, representing approximately 40% of the global network generating revenue.
IMAX has a strong balance sheet with $319 million in consolidated cash as of June 30, 2020.
Cost reduction measures reduced the Company’s average monthly cash burn to approximately $10 million.
IMAX signed agreements to add 29 theater systems, demonstrating continued global demand.
Forward Guidance
IMAX is looking ahead to an exceptionally strong slate through 2021, as studios affirm their commitment to the theatrical release by rescheduling their key blockbuster titles.
Positive Outlook
- Studios affirm their commitment to the theatrical release.
- Key blockbuster titles are being rescheduled.
- Major global exhibitors continue to underscore the value of The IMAX Experience.
- New agreements including a 10-theatre deal with Wanda Film in China.
- A multinational 17-theatre deal with CGV.
Challenges Ahead
- The health and safety of audiences must be the priority as theaters reopen.
- Supporting the work of local governments and partners to put public health first.
- Second quarter 2020 revenue decreased 92% versus 2019 to $8.9 million due to the global pandemic.
- Second quarter 2020 net (loss) attributable to common shareholders was ($26) million.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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