QUOTE AND NEWS
StreetInsider.com  Jul 22  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Corporate+News/IMAX+Corp.+%28IMAX%29%2C+Shanghai+Film+Enter+Agreement+for+19+More+Theaters/9677620.html for the full story.
Wall Street Journal  Jul 21  Comment 
IMAX is striking a deal with a Chinese film company to open 19 new theaters in China ahead of a planned public listing of the big-movie-screen company's operations there.
Benzinga  Jul 21  Comment 
In a report released Monday, Stifel analyst Benjamin Mogil upgraded IMAX (NYSE: IMAX) from Hold to Buy with a $32 price target. Analysts at Stifel have previously tracked IMAX's EBITDA per screen declines due to cost troubles limiting...
Motley Fool  Jul 21  Comment 
Does this analyst make a good case? Or is it just more noise from Wall Street?
USAToday.com  Jul 21  Comment 
USA TODAY contributor Maria Bartiromo catches up with the IMAX CEO Richard Gelfond to talk growth around the world.
Motley Fool  Jul 11  Comment 
Joint revenue-sharing agreements look increasingly smart with “Star Wars: Episode VII” looming on the horizon.
Market Intelligence Center  Jul 1  Comment 
IMAX (IMAX) presents a trading opportunity that offers a 3.78% return in just 81 days. A covered call on IMAX at the $28.00 level expiring on Sep. '14 offers an assigned return rate of 3.78% or 17.04% annualized. This trade offers 5.27% downside...
Market Intelligence Center  Jun 25  Comment 
MarketIntelligenceCenter.com’s patented algorithms have chosen the Aug. '14 $28.00 call for a couple of hedged-trading ideas on IMAX (IMAX). A traditional covered call on IMAX yields 3.47% (24.38% annualized, for comparison purposes only) and...
Market Intelligence Center  Jun 18  Comment 
Leading global entertainment technology developer, IMAX Corp. (IMAX), yesterday announced that its board of directors has authorized the repurchase of $150 million of its common shares within the next three years. The company’s strong financial...
Forbes  Jun 5  Comment 
Tom Cruise has appeared in some of the finest science fiction cinema since the start of the 2000's. He adds to that résumé with his latest sci-fi extravaganza, director Doug Liman's Edge of Tomorrow, opening this weekend nationwide.  It's an...




 


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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