IMAX Profits Fell In Q3 With Weak Box Office Results
Everyone expected a soft performance in the quarter and that’s just what they got. Net income at $1.6M was -89.2% from last year’s Q3 on revenues of $51.7M, -35.9%. The revenue number was slightly ahead of the $50.64 that analysts expected. Profits at 2 cents a share fell short of the 4 cents the Street anticipated — although the number would have come in at 6 cents without a $2.8M charge for stock based compensation. Box office was a problem as releases including Sony’s Elysium, Warner Bros’ Pacific Rim, and Universal’s Riddick were no match for last year which included Warner Bros’ The Dark Knight Rises. IMAX saw gross box office results of $132.5M, -23.5%, while the average box office per screen fell 33.5% to $207,500. Investors may look past those numbers as CEO Richard Gelfond says that Q4 is off to a “great start” with releases including Warner Bros’ Gravity and the Russian made film Stalingrad. That “reminds us of the importance of assessing our portfolio of films on an annual basis.” In addition, IMAX says it recently signed contracts for 99 theater systems, with 88 in new locations. The new signings and “historic high backlog” with “many fourth quarter deals either signed or in discussions provide increased visibility into strong network growth over the long term,” Gelfond says.
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