IMAX Corp. Q4 FY2024 earnings call

• Rich Gelfond highlighted strong momentum in 2025 with a record Chinese New Year slate, strengthened studio relationships, expanded global network, and diversified content portfolio. Notable achievements include a record 118 films, events, and experiences released in 2024, and a strong start in 2025 with 14 local language films and a big IMAX exclusive music opening. - Natasha Fernandes discussed 2024 financial results, improved cash flow, SG&A improvements (excluding stock-based compensation was $27 million, a $2 million improvement year-over-year), R&D efforts focused on new film cameras and technologies, and balance sheet strength with cash of $101 million and available liquidity over $418 million.

For the full year 2024, IMAX delivered revenues of $352 million, adjusted EBITDA of $139 million (adjusted EBITDA margin of 39%), operating cash flows of $71 million (a 21% improvement year-over-year), and system installations of 146 systems (57% under joint revenue sharing arrangements). In the fourth quarter, revenues were $93 million (up 8% year-over-year). Content Solutions revenues were $26 million (up 34% year-over-year) highlighted by a record Thanksgiving weekend box office and strong results from the re-release of Interstellar. Technology Products and Services Q4 revenues were $64 million (up 2% year-over-year). Q4 adjusted EBITDA was $37 million (up $12 million year-over-year), and adjusted EPS was $0.27 (a 59% increase over the prior year).

• Projected IMAX grosses over $1.2 billion in 2025. - Expect 145 to 160 system installations in 2025, skewed towards joint revenue sharing arrangements. - Adjusted EBITDA margin to be at least 40% in 2025. - Positive outlook on Chinese market recovery, strong film slate with big titles like Captain America: Brave New World, Mission Impossible - The Final Reckoning, and Avatar 3 driving the outlook.

• Soft box office in China in 2024 was a headwind, though the Chinese New Year slate has shown a strong turnaround. - Foreign currency fluctuations, especially as the U.S. dollar strengthened. - Uncertainties in studio release slates and potential impact on box office performance.

Q: Eric Handler asked about screen count growth and opportunistic markets.

A: Richard Gelfond mentioned Japan is extremely strong with around eight signings in 2025 and there's activity in Western Europe and North America with signings in high revenue markets.

Q: Mike Hickey asked about the Netflix deal for Narnia.

A: Richard Gelfond said the deal was complex to meet various constituencies, not every Netflix movie is appropriate for IMAX eventcizing, but it's a great movie for IMAX release.

Q: Steven Frankel asked about China performance and screens.

A: Richard Gelfond and Daniel Manwaring discussed China's turnaround due to slate and brand power, and potential impact on screens though underwriting standards may not change immediately.

Q: David Joyce asked about EBITDA margin and screen renewals.

A: Natasha Fernandes said there's a mix of operating leverage from top line growth and cost cutting efforts, and renewals are constant with focus on new technology.

Q: Omar Mejias asked about studio negotiations.

A: Richard Gelfond said leverage is in marketing prominence and date flexibility, not splits.

Q: David Karnovsky asked about China incentives and working capital.

A: Daniel Manwaring said ticket subsidies were minimal, but government support for film content continues; Natasha Fernandes said working capital improved and will continue to strengthen with box office growth.

Q: Stephen Laszczyk asked about capital investment.

A: Natasha Fernandes said 60% of installations are JVs, with JV CapEx expected to be $35 million to $40 million in 2025.