QUOTE AND NEWS
SeekingAlpha  Apr 2  Comment 
By Chris Katje: Shares of IMAX (IMAX) are down 6.2% in 2014, after seeing a strong 30% performance in 2013. JPMorgan recently upgraded shares to overweight with a price target of $32. JPMorgan sees IMAX as the "best play on a very promising 2015...
StreetInsider.com  Mar 31  Comment 
The following is a list of notable articles to help get you through the lunch hour: AutoNation (AN) CEO Jackson Backs Tesla's (TSLA) Direct-Sales Efforts -> Read this! Pershing Square's Ackman Takes Larger Stakes in Fannie (FNMA), Freddie...
StreetInsider.com  Mar 21  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Corporate+News/IMAX+Corp.+%28IMAX%29+Plans+Mongolian+Theater+Opening/9305336.html for the full story.
Benzinga  Mar 20  Comment 
IMAX Corporation (NYSE: IMAX; TSX: IMX) and The Walt Disney Studios, a division of The Walt Disney Company (NYSE: DIS), today announced an agreement to release several of Disney's upcoming films in IMAX® theatres under an extension of the...
Wall Street Journal  Mar 20  Comment 
Benzinga  Mar 19  Comment 
Below are the top entertainment-diversified stocks on the NYSE in terms of profit margin. The trailing-twelve-month profit margin at IMAX (NYSE: IMAX) is 15.34%. IMAX's EPS for the same period is $0.64. The trailing-twelve-month profit...
DailyFinance  Mar 7  Comment 
Carmike Cinemas, Inc. (NASDAQ:CKEC), a leading entertainment, digital cinema and 3-D motion picture exhibitor, announced today that guests visiting its Thoroughbred 20 at 633 Frazier Drive, Franklin, TN 37064 will be able to...
DailyFinance  Mar 7  Comment 
BRUSSELS,BELGIUM and BURBANK, CA -- (Marketwired) -- 03/07/14 -- nWave Pictures Distribution is pleased to announce that wildlife conservationist and Emmy Award-winning television host and presenter Jeff Corwin will be the narrator of a new...
SeekingAlpha  Feb 20  Comment 
IMAX Corporation (IMAX) Q4 2013 Earnings Conference Call February 20, 2014 8:30 AM ET Executives Teri Loxam – VP, IR Richard Gelfond – CEO Joseph Sparacio – EVP and CFO Greg Foster – President Analysts ...
StreetInsider.com  Feb 20  Comment 
Onconova Therapeutics, Inc. (Nasdaq: ONTX) 39.8% LOWER; announced that the Phase 3 ONTIME trial of intravenous (IV) rigosertib in patients with higher risk myelodysplastic syndromes (MDS) who had progressed on, failed or relapsed after prior...
StreetInsider.com  Feb 20  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Earnings/IMAX+Corp.+%28IMAX%29+Tops+Q4+EPS+by+11c/9194425.html for the full story.




 


IMAX Corporation (TSX:IMX NASDAQ:IMAX) is a Canadian entertainment technology company with an industry leading growth rate. IMAX's principal business is the design, manufacture, sale and lease of theater systems based on its technology for large-format, 15-perforation film frame, 70 millimeter format (15/70-format) theaters. In fiscal 2010, IMAX posted revenue of $248.6 million and net income of $100.8 million.[1]

Fiscal 2010 was another successful year for IMAX due to the growth of film technology and increased demand for 3-D films. The blockbuster film Avatar was IMAX's breakthrough film of the decade, as it generated $2.7 billion in box office revenues and created more demand for 3-D films. IMAX is also dependent on the quality and popularity of films that it shows, as 3-D box office sales are correlated to 2-D box office sales. With its domestic success, IMAX has made moves to expand internationally.

Business Overview

Business Financials

Fiscal Year 2010 Performance (Ended December 31st, 2010)

The firm reported the highest annual revenue, earnings and EBITDA for any year in its 43 year history.[1]

Business Segments

  • IMAX Systems (32.7% of Revenue)
  • Films (32.4%)
  • Theater System Maintenance (15.4%)
  • Theater Operations (13.2%)
  • Joint Revenue Sharing Arrangements (3.2%)
  • Other (3.1%)

Geographic Locations

  • United States (54% of theaters)
  • Europe (14%)
  • Canada (7%)
  • Mexico (5%)
  • China (5%)
  • Japan (3%)
  • Rest of World (12%)

Trends and Forces

IMAX Grows at Same Pace as Film Technology

Since superior entertainment technology differentiates IMAX from its competitors, the firm's success and growth is dependent on new technology. IMAX developed the MKII and IMAX 3D cameras to be able to film its signature shots, and the firm also developed technology to convert 2-D films to 3-D films.[2] As new entertainment technology emerges, and the demand for 3-D films continues to increase, IMAX hopes to continue profiting at a record pace.

Increasing Popularity of 3-D Films

The demand for 3-D films has grown exponentially in the past two years. Since 3-D films charge $3 per ticket more than 2-D films, having a 3-D version of a film can improve box office revenues by about 25%.[3] Evolving technology also means that IMAX competitors may be able to provide the same viewing experiences, however. For example, the launch of 3-D televisions will allow consumers to view 3-D films in the comfort of their own homes, and not in IMAX theaters.[4] IMAX plans to contribute to 3-D television popularity by writing television licenses to future 3-D films and advertisements in its theaters.[5]

IMAX Revenue Dependent on Box Office Success of Films

Like other movie theaters, such as Regal Entertainment , Cinemark, and privately-held AMC Entertainment, IMAX revenue is dependent on the popularity of the films it shows. Clearly if less blockbuster-popular movies are made, then less moviegoers will go to IMAX theaters and buy tickets. Furthermore, IMAX is reliant on films that fit to be made in 3-D, such as action-packed films and animated films. With the success of Avatar, IMAX business has increased significantly.

IMAX Theaters Expanding Internationally

With the success of IMAX theaters in the United States, the firm has made moves to have a greater international presence. The IMAX film Prince of Persia: The Sands of Time opened in 53 international theaters, spanning all continents (excluding Antarctica).[6] IMAX has been particularly aggressive in Russia, where it has worked with Russian media firm Rising Star Media to open two new theaters in Moscow and St. Petersburg.[7] IMAX has also worked with Russian retail and entertainment developer SBS to open a theater in Krasnodar, which has a population of 750,000.[8]

Competition

Movie Theaters

  • Cinemark Holdings (CNK) Similarly to RGC, Cinemark directly competes with RGC for filmgoers ticket sales as well as IMAX for viewings of 2-D films also in 3-D.
  • DMAX Chinese knock off that is offering a cheaper version of Imax. Backed by China Film Group and China Research Institute of Film Science and Technology. Plans to open 15 screens in 2012.

Film Makers

  • Walt Disney Company (DIS) -- Walt Disney Company writes and produces films that compete with IMAX produced films.
  • Dreamworks Animation SKG (DWA) -- Dreamworks also writes and produces films that compete with IMAX produced films, especially animated films such as Madagascar and Shrek.

References

  1. 1.0 1.1 1.2 1.3 IMAX 2010 10-k
  2. IMAX website, Corporate, Cameras & Accessories
  3. Business Insider, "3-D Movie Trailer Smackdown: Blockbusters Fighting To Be In Your Face In 2010," 2/16/2010
  4. Seeking Alpha, "How to Profit From 3D TV," 03/22/2010
  5. Business Insider, "3D TV Fever! ESPN; Sony, Discovery, IMAX Launching Networks," 1/5/2010
  6. Bloomberg, "Walt Disney Pictures' and Jerry Bruckheimer Films' Prince Of Persia: The Sands of Time Opens in IMAX(R) Theatres Internationally," 05/18/2010
  7. Business Insider, "IMAX's International Business Blasts Off In Russia," 02/03/2010
  8. Bloomberg, "IMAX Signs Theatre Deal in Russia," 05/06/2010
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