QUOTE AND NEWS
New York Times  Sep 30  Comment 
Netflix and the Weinstein Company said that they planned to release a sequel to the movie “Crouching Tiger, Hidden Dragon” simultaneously on Netflix and a select number of Imax theaters.
Market Intelligence Center  Sep 23  Comment 
For a hedged play on IMAX (IMAX), MarketIntelligenceCenter.com’s option-trade picking algorithms recommend the Dec. '14 $27.00 covered call for a net debit in the $25.99 area. That is also the break-even stock price for the covered call. This...
Benzinga  Sep 17  Comment 
IMAX Corporation (NYSE: IMAX; TSX: IMX) and SMI Corporation Limited, a leading Chinese entertainment and media company that operates theatres under the name Stellar Cinemas, today announced an expansion of the parties' revenue sharing arrangement...
SeekingAlpha  Sep 17  Comment 
By SA Transcripts: IMAX Corporation (NYSE:IMAX) Bank of America Merrill Lynch Media, Communications and Entertainment Conference Call September 16, 2014 3:00 PM ET Executives Greg Foster – CEO-IMAX Entertainment & Senior...
Market Intelligence Center  Sep 15  Comment 
A covered call identified by MarketIntelligececenter.com's patented algorithm on IMAX (IMAX) could yield about 5.34% (20.31% annualized, for comparison purposes only) in 96 days. Pair a long position in the stock with the Dec. '14 $28.00 call for...
SeekingAlpha  Sep 12  Comment 
By SA Transcripts: IMAX Corporation (NYSE:IMAX) Goldman Sachs Communacopia Conference September 11, 2014 2:55 PM ET Executives Rich Gelfond - CEO Analysts Drew Borst - Goldman Sachs Presentation Drew Borst - Goldman...
Market Intelligence Center  Sep 11  Comment 
A covered call identified by MarketIntelligececenter.com's patented algorithm on IMAX (IMAX) could yield about 3.89% (14.18% annualized, for comparison purposes only) in 100 days. Pair a long position in the stock with the Dec. '14 $27.00 call for...
Market Intelligence Center  Sep 10  Comment 
For a hedged play on IMAX (IMAX), MarketIntelligenceCenter.com’s option-trade picking algorithms recommend the Dec. '14 $27.00 covered call for a net debit in the $25.95 area. That is also the break-even stock price for the covered call. This...
Market Intelligence Center  Sep 9  Comment 
MarketIntelligenceCenter.com's patented trade-picking algorithms have identified an attractive covered-call trade on IMAX (IMAX). Look at the Dec. '14 $27.00 covered call for a net debit in the $25.86 area. This trade has a duration of 102 days....
CNNMoney.com  Sep 2  Comment 
Read full story for latest details.




 


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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