IMAX (IMAX) reports a profitable quarter, in-line with expectations

Imax Corp. (ticker: IMAX) reported results on May 5, 2005 for the first quarter 2005.  Below are some highlights.

Results 1Q05 vs. 1Q04:

• Reported EPS: $0.03 vs. $-0.02
• Adjusted EPS: $0.02 vs. $-0.03
• Consensus EPS was $0.02
• Revenue: $31.4M vs. $24.9M (+26%)
• Consensus revenue was $29.7M
• Gross profit: $16.1M vs. $12.4M (+31%)
• Gross margin: 51.5% vs. 49.7% (+180bps)
• Operating income: $4.9M vs. $2.6M (+86%)
• Operating margin: 15.6% vs. 10.6% (+500bps)
• Adjusted Net income: $1.0M vs. $-1.1M
• Adjusted Net margin: 3% vs. -4.4%
• Reported Net income: $1.2M vs. $-0.9M
• Reported Net margin: 3.8% vs. -3.6%
• Cash: $29.8M vs. $29.0M (+3%)
• Debt: $160M vs. $160M (0%)

Revenues, by segment 1Q05 vs. 1Q04:

• IMAX systems: $22.1M vs. $16.0M (+38%)
• Films: $4.9M vs. $4.5M (+10%)
• Theater operations: $3.8M vs. $3.7M (+2%)
• Other: $0.5M vs. $0.6M (-22%)

Quick comments:

• IMAX reported 12 new theater signings in Q1, including 10 for the MPX system; previously, IMAX had forecast 40-45 new theater signings for 2005
• In the past year, IMAX has signed agreements to install 40 MPX systems, including 9 that are already operational
• Earlier this week, IMAX announced an agreement with AMC Entertainment to retrofit 5 multiplexes with the MP system
• Earlier this week, IMAX also announced that it will release the latest Harry Potter film in November 2005
• IMAX will also re-release The Polar Express 3D in November 2005; last year, the film grossed $45M worldwide