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Sep 30, 2020
IMAX Q3 2020 Earnings Report
Reported improved cash flow and reduced costs amidst global theatrical industry recovery, driven by resurgent box office in Asia.
Key Takeaways
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
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
Positive Outlook
- 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.
Challenges Ahead
- 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
Historical Earnings Impact
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Avg. Return Before/After Earnings
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