Imax Corporation · NYSE:IMAX
Imax — Q3 2024 Earnings Presentation
35 slides from Imax's earnings presentation, Oct 30, 2024
Slide 1: Investor Presentation October 2024
I N V E S TO R P R E S E N TAT I O N OC TOBER 2024
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation contains forward looking statements that are based on IMAX® to respond to change and advancements in technology; risks relating to consolidation management's assumptions and existing information and involve certain risks and among commercial exhibitors an
Slide 3: Strategic Update
Strategic Update Richard Gelfond Chief Executive Officer
Slide 4: Unique IMAX Platform Drives Strong Profitability and Long-Term Growth Opportunities
INVESTMENT HIGHLIGHTS Unique IMAX Platform Drives Strong Profitability and Long-Term Growth Opportunities IMAX is the Unrivaled premium Unmatched global Significant growth Strong operating Attractive capital future of moviegoing luxury brand network scale potential leverage position 4 5 6 +28% >50%
Slide 5: IMAX is a Consistent Winner in the Dynamic Media and Entertainment Landscape
IMAX IS IN A STRONG INDUSTRY POSITION IMAX is a Consistent Winner in the Dynamic Media and Entertainment Landscape IMAX Benefits From Strong Secular Tailwinds 2025 Filmed for IMAX titles more than double previous record Growing Demand for IMAX Amongst Filmmakers and 5-year growth in IMAX Studios Glo
Slide 6: End-to-End Technology Powers Creativity from Creation to Delivery
End-to-End Technology Powers Creativity from Creation to Delivery THE IMAX EXPERIENCE SHOT WITH IMAX VIEWED IN THE MOST AMPLIFIED BY IMAX EXTENDING TO THE OPTIMIZED BY IMAX CAMERAS IMMERSIVE FORMAT HOME Lightyear Movies shot with IMAX certified IMAX’s proprietary digital IMAX’s comprehensive solutio
Slide 7: Robust Growth Across Financial Metrics in 2023
STRONG OPERATING LEVERAGE DRIVES ACCELERATED PROFIT GROWTH Robust Growth Across Financial Metrics in 2023 $ in millions $ in millions REVENUE T O TA L C O N S O L I D AT E D A D J E B I T D A (1)(2) +25% +51% $375 $301 $144 $96 2022 2023 2022 2023 $ in millions GROSS MARGIN A D J U S T E D E P S (2)
Slide 8: Full-Year 2024 Guidance
FULL-YEAR 2024 GUIDANCE IMAX Box Office Total Consolidated Adjusted Installations EBITDA(2) Margin % 2024 Similar level to 2023 130 – 150(1) High 30’s Percent Guidance Expect to be at high-end of the range 2023 $1.06B 128 38.4% Actuals 2022 $850M 92 31.8% Actuals Expect growth acceleration in 2025:
Slide 9: A Truly Global Premium Entertainment Platform
A TRULY GLOBAL PREMIUM ENTERTAINMENT PLATFORM W E S T E R N E U R O P E 1,714 C A N A D A 42 131 Commercial Multiplex Locations 89 Countries & Territories U N I T E D S T A T E S 368 G R E A T E R C H I N A IMAX network 795 100+ accounts for >50% of 1-99 L A T I N total global premium None A M E R I
Slide 10: Significant Rest of World Opportunity – Less Than 35% Penetrated
IMAX WORLDWIDE TARGET MARKET Significant Rest of World Opportunity – Less Than 35% Penetrated 3,619 1,488 1,414 1542 43% 425 30% 854 57% 363 10% 194 14% Unpenetrated Market 717 IMAX New System Backlog IMAX Network 263 37% 125 9% 47% 44 6% 1714 795 56% 57% 509 34% 410 Domestic Greater China RoW TOTAL
Slide 11: Strong Share of Global Box Office on Less than 1% of Screens
RISING MARKET SHARE ACROSS GLOBAL BOX OFFICE Strong Share of Global Box Office on Less than 1% of Screens IMAX BOX OFFICE MARKET SHARE 1 6.0% 5.0% 4.8% 4.8% 4.4% 4.4% 4.2% 3.8% 3.9% 4.0% 3.7% 3.7% 3.6% 3.2% 3.3% 3.0% 3.3% 3.2% 3.0% 3.1% 3.0% 2.6% 2.5% 2.2% 2.3% 2.3% 2.1% 2.1% 2.0% 2.0% 1.6% 1.7% 1.7
Slide 12: Expanding Strategy to Deliver the Most Diverse IMAX Content Portfolio Ever
CONTENT STRATEGY Expanding Strategy to Deliver the Most Diverse IMAX Content Portfolio Ever Core Content Recent Expansion Emerging Opportunity A LT E R N A T I V E H O L LY W O O D LOCAL LANGUAGE D O C U M E N TA R I E S 1 CONTENT DUNE: PART TWO PEGASUS 2 BLUE ANGELS PARIS OLYMPICS OPENING CEREMONY
Slide 13: Growing IMAX Fandom Fueling Demand
Growing IMAX Fandom Fueling Demand for IMAX by Consumers, Exhibitors, Studios and Filmmakers Increasing IMAX Blockbuster Market Share … Driving demand by Filmmakers and Studios to work with IMAX Top 10 Grossing IMAX Titles – Domestic Opening Weekend Global Number of Titles per Year in Filmed For IMA
Slide 14: Solid 2024 Slate for the Remainder of the Year
E X P E C T E D F O U R T H Q U A R T E R 2 0 2 4 H O L L Y W O O D S L A T E Solid 2024 Slate for the Remainder of the Year in the IMAX Network O C T O B E R O C T O B E R N O V E M B E R N O V E M B E R N O V E M B E R N O V E M B E R D E C E M B E R D E C E M B E R D E C E M B E R D E C E M B E R
Slide 15: Exceptional Slate Expected in 2025
E X P E C T E D 2 0 2 5 S L A T E Exceptional Slate Expected in 2025 – Record Number of Filmed for IMAX titles J A N U A R Y J A N U A R Y F E B R U A R Y M A R C H A P R I L A P R I L M A Y M A Y M A Y J U N E UNTITLED CHINESE NEW A MINECRAFT FLOWERVALE MISSION: HOW TO TRAIN YEAR SLATE MICKEY 17 SI
Slide 16: Exceptional Slate Continues in 2026
U P C O M I N G E X P E C T E D 2 0 2 6 H O L L Y W O O D S L A T E Exceptional Slate Continues in 2026 Including next Christopher Nolan Film as well as Star Wars & Avengers Films UNTITLED PROJECT AV E N G ER S : TOY S TO RY 5 SHREK 5 CHRISTOPHER HAIL MARY D O O M S D AY NOLAN RELEASE AVATAR: THE SU
Slide 17: Local Language Content Drives Demand and Incrementality in Key Growth Markets
LOCAL LANGUAGE GROWTH Local Language Content Drives Demand and Incrementality in Key Growth Markets • Record LL Box Office : $227 million, ~21% of IMAX 2023 box office LOCAL LANGUAGE TITLE GROWTH • Increasing Number of LL Titles: 59 local language titles in 2023 60+ TITLES EXPECTED IN 2024 (64% grow
Slide 18: Financial Review
Financial Review Natasha Fernandes Chief Financial Officer
Slide 19: Executed and Delivered on 2023 Full Year Guidance
2023 FINANCIAL PERFORMANCE Executed and Delivered on 2023 Full Year Guidance 2023 Guidance 2023 Results (announced on 4Q22 earnings call) IMAX Global Box Set numerous Box Office records, ~$1.1B improved 25% YoY $1.06B Office Adj. EBITDA1 Margin - Strong operating leverage drove Mid-30’s 650 bps impr
Slide 20: Third Quarter 2024 Financial Performance
THIRD QUARTER 2024 FINANCIAL PERFORMANCE Momentum Builds into Fourth Quarter as Network Grows and Hollywood Slate Improves $ IN MILLIONS except per diluted share data and Q3 2024 Q3 2023 SEP YTD SEP YTD SEPTEMBER YTD 2024 HIGHLIGHTS network data 2024 2023 Global Box Office $239 $347 $696 $889 Global
Slide 21: Strong Operating Leverage – Higher Box Office Drives Higher Adjusted EBITDA Margin
Strong Operating Leverage – Higher Levels of Box Office Drive Predictably Higher Adjusted EBITDA Margin %(1)(2) IMAX Quarterly Box Office correlation to Quarterly Total Adjusted EBITDA Margin %(1)(2)(3) 60% 50% Total Adjusted EBITDA Margin % 40% 2025 Target: 40%+ 30% Correlation Coefficient 88% 20%
Slide 22: Systems Installations Growth Accelerating
SYSTEMS NETWORK GROWTH DRIVERS Systems Installations Growth Accelerating with Q3 Installations up 63% Year-Over-Year BACKLOG PIPELINE 472 450 SEPTEMBER YTD FULL YEAR 2023 109 68 TOTAL TOTAL TOTAL TOTAL SIGNINGS INSTALLATIONS SIGNINGS INSTALLATIONS Upgrades Joint Revenue Sharing 40 35 64 70 Hybrid JR
Slide 23: Low Leverage Model with Improving Cash Flow and Strong Liquidity
Low Leverage Model with Improving Cash Flow and Strong Liquidity OP E R AT I N G C ASH F LOW ( $ IN MILLIO NS ) DE BT M AT UR I T Y LA DDE R ($ I N M I LLI ON S) $250 $60 $200 $30 $59 $59 $150 $231 $17 $100 $- $6 $50 $(23) $1 $1 $47 $- $(30) 2024 2025 2026 2027 2020 2021 2022 2023 SEP YTD 2024 CASH
Slide 24: IMAX Repurchased $175M, 19% of Shares Outstanding Since 2020
DELIVERING VALUE THROUGH SHARE REPURCHASE IMAX Repurchased $175M, 19% of Shares Outstanding Since 2020 YEAR-END SHARES SHARES REPURCHASED AVERAGE OUTSTANDING PAST 4 YEARS1 REPURCHASE PRICE ( I N T H O U S A N D S ) ( I N T H O U S A N D S ) Shares Repurchased % Repurchased (Cume) 6,000 25% 5,000 17%
Slide 25: Cash Flow Reflects Strength of Financial Model
ATTRACTIVE CASH FLOW MODEL Cash Flow Reflects Strength of Financial Model F U L L Y E A R 2 0 2 3 (1) S E P T E M B E R Y T D 2 0 2 4 (1) $59.4 $58.6 $50.7 $43.8 $29.0 $25.8 $21.7 $18.0 $6.5 $8.3 $3.8 $4.8 2023 Operating PP&E Investment FCF Before Investments In 2023 Free 3Q24 YTD PP&E Investment FC
Slide 26: IMAX Investor Key Messages – Momentum is Accelerating
IMAX Investor Key Messages – Momentum is Accelerating • IMAX is the leading premium cinematic platform with a brand associated with quality - industry position strengthened post- pandemic with secular tailwinds towards premium and blockbusterization of moviegoing • Significant opportunity to increas
Slide 27: Appendix
A P P E N D I X IMAX INVESTOR PRESENTATION
Slide 28: The Business of IMAX – the Most Premium, Innovative Platform for Cinema
The Business of IMAX – the Most Premium, Innovative Platform for Cinema • IMAX is a global entertainment, technology, and distribution company known for its innovative, patented technology that transforms a movie into an experience. • IMAX is also a Hollywood insider, partnering with the world’s mos
Slide 29: Appendix: How IMAX Makes Money
Appendix: How IMAX Makes Money Segment Customer Revenue Streams 2023 Revenue Comments IMAX earns a percentage of box office from studios for remastering and distribution of films in the IMAX network. Film Remastering & $119M Revenue is recognized as box office is earned. Content Solutions Studios an
Slide 30: Use of Non-GAAP Financial Measures
USE OF NON -GAAP FINANCIAL MEASURES In this presentation, the Company presents adjusted net income attributable to common shareholders and deferred financing costs. Adjusted EBITDA per Credit Facility is defined as EBITDA excluding: (i) share-based and adjusted net income attributable to common shar
Slide 31: Third Quarter 2024 Non-GAAP Reconciliation — Adjusted Net Income
THIRD QUARTER 2024 NON -GAAP FINANCIAL RECONCILIATION — ADJUSTED NET INCOME 3 MONTHS ENDED 3 MONTHS ENDED 9 MONTHS ENDED 9 MONTHS ENDED SEPTEMBER 30, 2024 SEPTEMBER 30, 2023 SEPTEMBER 30, 2024 SEPTEMBER 30, 2023 $ IN THOUSANDS, EXCEPT Net Income Per Share Net Income Per Share Net Income Per Share Ne
Slide 32: Third Quarter 2024 Non-GAAP Reconciliation — Adj. EBITDA
THIRD QUARTER 2024 NON -GAAP FINANCIAL RECONCILIATION — ADJ. EBITDA $ IN THOUSANDS 3 MONTHS ENDED 3 MONTHS ENDED 9 MONTHS ENDED 9 MONTHS ENDED SEPTEMBER 30, 2024 SEPTEMBER 30, 2023 SEPTEMBER 30, 2024 SEPTEMBER 30, 2023 Revenues $91,452 $ 103,896 $ 259.536 $ 288,821 Reported Net Income $ 15,343 $ 15,
Slide 33: Non-GAAP Reconciliation — Free Cash Flow
NON-GAAP FINANCIAL RECONCILIATION — FREE CASH FLOW 9 MONTHS ENDED SEPTEMBER 30, 2024 $ IN THOUSANDS Net Cash Provided by Operating Activities $ 59,352 Purchase of Property, Plant and Equipment (3,816) Acquisition of Other Intangible Assets (4,802) Free Cash Flow Before Growth CAPEX $ 50,734 Investme
Slide 34: 2023 Non-GAAP Reconciliation — Adjusted Net Income
2023 NON-GAAP FINANCIAL RECONCILIATION — ADJUSTED NET INCOME FULL YEAR 2023 $ IN THOUSANDS, EXCEPT EPS DATA Net Income Per Share Net Income Attributable to Common Shareholders $ 25,355 $ 0.46 Adjustments: Share-Based Compensation 23,184 0.42 Unrealized Investment Gains (558) (0.01) Transaction-Relat
Slide 35: Full Year 2023 Non-GAAP Reconciliation — Adj. EBITDA
FULL YEAR 2023 NON-GAAP FINANCIAL RECONCILIATION — ADJ. EBITDA FULL YEAR 2023 FULL YEAR 2022 Attributable to Less: Attributable to Non- Less: Attributable to Attributable to $ IN THOUSANDS Non-Controlling Interests & Attributable to Non- Controlling Interests & Attributable to Non- Common Shareholde