LOS ANGELES -- IMAX Corporation (NYSE:IMAX) (TSX:IMX) today reported that its 2010 revenues, earnings and adjusted EBITDA were the highest of any year in its 43-year history.
"In 2010, we saw most aspects of our strategy come together," said IMAX Chief Executive Officer, Richard L. Gelfond. "The public came to enjoy The IMAX Experience® in record numbers, our commercial network grew by 30%, our digital network grew by more than 80% and we signed new theatres in record numbers. The year's record revenues and earnings reflect the success of our model."
In addition to reporting its fiscal year results, today IMAX Corp. announced that total revenue for the fourth quarter ended December 31, 2010 increased 28% to $69.2 million, compared to $54.2 million in the fourth quarter of 2009. Reported net income for the fourth quarter of 2010 increased to $54.2 million, or $0.80 per diluted share, from $4.0 million, or $0.06 per diluted share, in last year's fourth quarter. Fourth quarter 2010 adjusted net income, which excludes the impact of the change in the value of the Company's variable stock compensation and a non-cash tax benefit related to a reversal of the Company's deferred tax valuation allowance, increased 11% to $14.3 million, or $0.21 per diluted share, compared to adjusted net income of $12.9 million, or $0.20 per diluted share, on the same basis in the fourth quarter of 2009. Fourth quarter adjusted EBITDA increased 23% to $25.8 million from $20.9 million in the same period last year.
"The fourth quarter of 2010 marked a strong finish to what was a record year for IMAX in virtually all respects," said Mr. Gelfond. "The success of the Company's digital strategy and the transformation to a business model that benefits from dual recurring revenue streams became evident through this year's financial results. When we consider our contracted-in theatre backlog, our announced film slate, film deals we are working on and the pipeline of theatre deals we are working on, we believe we are positioned to grow revenue, adjusted earnings and EBITDA in 2011."
Total revenue for 2010 increased 45% to $248.6 million, compared to $171.2 million for fiscal 2009. Reported net income for fiscal 2010 increased to $100.8 million, or $1.51 per diluted share, compared to $5.0 million, or $0.09 per diluted share, in 2009. Fiscal 2010 adjusted net income, which excludes the aforementioned impact of variable stock compensation and a non-cash tax benefit, increased 232% to a record $67.8 million, or $1.02 per diluted share, compared to $20.5 million, or $0.38 per share, on the same basis last year. For the 12 months ended December 31, 2010, adjusted EBITDA increased 73% to a record $101.4 million, compared to $58.5 million last year. For the definition of and reconciliation to adjusted EBITDA, please see the tables at the end of this press release.
Included in fourth quarter and fiscal 2010 reported results was a non-cash tax benefit of $54.8 million. In the fourth quarter, the Company released the vast majority of its valuation allowance against deferred tax assets resulting from the determination that it will no longer be needed based on current and anticipated future earnings levels. In the coming quarters, the amount of $54.8 million will be drawn down against earnings at the applicable effective tax rate, resulting in non-cash charges in those periods. The net impact of the positive non-cash tax benefit of $54.8 million, and the negative $14.9 million charge due to the change in the value of the Company's variable stock compensation, is excluded from adjusted net income. For a reconciliation of adjusted net income to reported net income, please see the tables at the end of this press release.
Theatre System Installations
During the fourth quarter of 2010, the Company installed a record 54 theatre systems, compared to a total of 38 system installations in the fourth quarter of 2009. In 2010, the Company installed a total of 123 theatre systems, compared to 118 theatre system installations in 2009. Total installations include new IMAX theatre systems, as well as the upgrade of existing IMAX film-based theatre systems to digital. For a breakdown of system installations by type, please see the end of this press release.
"In the fourth quarter we installed more systems than in any other quarter in our history," added Mr. Gelfond. "This momentum is continuing into 2011 as we work with a number of new and existing exhibitor partners around the world to bring The IMAX Experience to our growing global audience while maintaining and building on our position as the premiere movie-going experience in the industry."
Fourth Quarter Segment Results
In the fourth quarter of 2010, IMAX systems revenue increased 67% to $32.9 million from $19.6 million in the fourth quarter of 2009, primarily reflecting the installation of 20 full, new theatre systems in the most recent fourth quarter, compared to 10 full, new systems in the fourth quarter of 2009. The Company also installed seven digital upgrades in the fourth quarter of 2010 compared to six in the same year-ago period. The increase in IMAX systems revenue also reflects a 62% increase in ongoing rent, fees and finance income, including several sale and lease theatres which reached box office levels in 2010 that triggered an increase in box office overage fees.
Fourth quarter 2010 total film revenue increased 19% to $18.0 million, compared to $15.1 million in the fourth quarter of 2009. Production and IMAX DMR® revenues increased 9% to $13.1 million, compared to $12.0 million in the year-ago period. Gross box office from DMR titles was $101.9 million in the fourth quarter of 2010, compared to $101.0 million in the fourth quarter of 2009. The average DMR box office per screen in the fourth quarter was $312,000 ($300,000 domestic, $339,000 international) versus $429,000 ($410,300 domestic, $460,600 international) in the fourth quarter of 2009. For title by title detail, please see the end of this press release.
Mr. Gelfond added, "In the fourth quarter, our gross box office held steady during a challenging time for the industry, thanks to our strong showing with tentpole titles like Warner Bros.' Harry Potter and the Deathly Hallows and Disney's TRON: Legacy, which significantly over-indexed in IMAX, and the increased size of our commercial theatre network. Looking ahead to the remainder of our 2011 film slate, we have more visibility than ever before, and we have secured more titles to show in the IMAX network than ever before. In addition, we are committed to further differentiating the IMAX version of titles shown in the IMAX format, whether through the use of IMAX cameras, special marketing events or exclusive IMAX-only release windows in certain territories."
In the fourth quarter of 2010, revenue from joint revenue sharing arrangements decreased 13
New York, N.Y. -- Screenvision, a leading innovator in cinema advertising today announced the appointment of Kevin J. Neary to serve as the company's Chief Financial Officer.
"We are very excited to have Kevin join the Screenvision Executive Team as our new CFO," said Travis Reid, Chief Executive Officer, Screenvision. "Kevin brings with him the industry experience and knowledge to help position Screenvision for future growth"
Prior to joining Screenvision, Mr. Neary was Executive Vice President and Chief Financial Officer with Ziff Davis Enterprise, Inc., a leading digital media company specializing in the technology market.
Before joining Ziff Davis Enterprise, Inc., Mr. Neary served as Senior Vice President and Chief Financial Officer at Primedia, Inc.(NYSE:PRM), a leading targeted media company in the United Sates with properties including over 100 brands such as Motor Trend, Automobile, Hot Rod and Soap Opera Digest.
Mr. Neary earned his Bachelor of Science in accounting from Montclair State University and his CPA from State of New Jersey.
Kansas City, Mo. -- AMC Theatres (AMC), a leading theatrical exhibition and entertainment company headquartered in Kansas City, and the Kansas City Filmmakers Jubilee proudly announce a partnership to honor independent filmmaking at the AMC Theatres Kansas City FilmFest from April 6-10.
"The partnership with AMC Theatres is a big step in expanding the visibility of the Kansas City FilmFest as well as the importance of independent film and the local and regional film community," said Fred Andrews, president and founder of the Kansas City Filmmakers Jubilee. "We appreciate AMC's willingness to share its historical gem of a theatre downtown and its expertise in marketing and programming to obtain films that might otherwise not be available to us."
AMC will host the AMC Theatres Kansas City FilmFest at the AMC Mainstreet 6 theatre, located at 14th and Main Streets in the heart of downtown Kansas City. The theatre will be the primary screening venue for short and feature dramas, comedies, documentaries, animated and experimental works and foreign films from April 6-10.
"AMC has long supported independent filmmaking and regularly provides guests with the best independent films through AMC independentTM, our renewed commitment to providing quality content to our increasingly diverse audience," said Rodi Vehr, general manager of AMC Mainstreet 6. "Participating in film festivals such as this one in our hometown of Kansas City is just one way we bring great films to our guests through direct partnerships with independent filmmakers."
The AMC Theatres Kansas City FilmFest will be a feast of films for five days, starting on opening night, Wednesday, April 6 and culminating with an awards gala that will honor filmmakers for their art and craft on Sunday, April 10. This year, the Award for Outstanding Service to the Kansas City Film Community will be renamed in honor of the late Karen McCarthy, a former U.S. Representative of Congress from Missouri who loved film and was a champion for community service. McCarthy served on the Kansas City Filmmakers Jubilee board and received the award in 2005.
The Kansas City Filmmakers Jubilee will also celebrate 15 years as Kansas City's premiere showcase of independent films at the AMC Theatres Kansas City FilmFest.
Chris Columbus is set to start work on a remake of the Korean film Hello Ghost. The film, which follows a young man enlisted to help four ghosts after he tries to kill himself, was a commercial hit in its native Korea, and Columbus responded to its combination of different ideas and especially emotional tones. Columbus said in a statement, "After watching Hello Ghost I was immediately struck by the film's ability to mix comedy, drama and complex emotional themes. Its strong universal storyline translates to any culture."
Columbus' previous film was an adaptation of the first book in the Percy Jackson and the Olympians series. Hello Ghost is being developed in conjunction with Nex Entertainment World, a Korean company that distributes and finances film projects. There's not word on who might star in the film, or whether its title may be changed to better suit an international market.