IMAX Corporation Q1 revenues $92.1 millionStaff writer ▼ | April 22, 2016
IMAX Corporation reported first-quarter 2016 revenues of $92.1 million, and adjusted EBITDA as calculated in accordance with the company's credit facility of $31.5 million.
IMAX Corporation Adjusted net income was $0.22 per diluted share
GAAP net income after non-controlling interest was $9.5 million, or $0.14 per diluted share. The company also reported a first-quarter global per-screen average of $284,400, up 40% over Q1 2015.
Revenue from sales and sales-type leases was $18.0 million in the first quarter of 2016, compared to $8.6 million in the first quarter of 2015, primarily reflecting nine digital system upgrades in existing locations, compared to two upgrades (one sale and one operating lease) in the first quarter of 2015.
In addition, the company installed five full new theatre systems under sales and sales-type lease arrangements in the most recent first quarter, compared to the five sales-type theatres the company installed in the first quarter of 2015.
Revenue from joint revenue-sharing arrangements was $23.4 million in the quarter, compared to $15.9 million in the prior-year period. Gross margins on joint revenue-sharing arrangements grew from 66.9% in Q1 2015, to 76.9% in the first quarter of 2016.
During the quarter, the company installed five new theatres under joint revenue-sharing arrangements, compared to six in 2015. The company had 534 theatres operating under joint revenue-sharing arrangements as of March 31, 2016, as compared to 457 joint-venture theatres one year prior.
Production and IMAX DMR (Digital Re-Mastering) revenues were $29.8 million in the first quarter of 2016, compared to $17.7 million in the first quarter of 2015. DMR gross margins grew from 74.8% in Q1 2015, to 76.6% in the first quarter of 2016.
Gross box office from DMR titles was $272.0 million in the first quarter of 2016, compared with$165.6 million in the prior-year period. The average global DMR box office per screen in the first quarter of 2016 was $284,400 compared with $202,900 in same period last year.
Gross margin of 56.6% compared to 57.8% last year, which was impacted by the installation of nine digital upgrades under sales and sales-type lease arrangements. Excluding the impact of these upgrades, gross margin grew 480 basis points from 58.6% to 63.4%.
Operating expenses, excluding stock based compensation, were lower than the prior year period and contributed to the significant operating expense leverage realized in the first quarter. Adjusted EBITDA margins of 37.4% grew over 1,000 basis points versus a prior year level of 26.9%.
As previously disclosed, the company repurchased 1,627,645 shares in the first quarter of 2016, which includes 181,227 shares purchased in connection with the company's long-term incentive plan. The company purchased the shares at an average price of $30.98 for a total value of $50.5 million.
On April 20, 2016, the company's board of directors approved an incremental $50.0 million increase to the repurchase allowance under the company's previously-announced share repurchase program, for an aggregate repurchase allowance of $200.0 million.
All other terms of the repurchase program remain unchanged. In addition, on February 22, 2016, the company amended the terms of its credit facility to increase the general restricted payment basket thereunder (which covers, among other things, the repurchase of shares) from $150.0 million to $350.0 million in the aggregate after the amendment date. ■