IMAX Corp. (IMAX) Misses Q1 EPS by 34c, Revenues Miss

IMAX Corp. (NYSE: IMAX) reported Q1 EPS of ($0.48), $0.34 worse than the analyst estimate of ($0.14). Revenue for the quarter came in at $34.9 million versus the consensus estimate of $43.24 million.

HIGHLIGHTS

• A solid balance sheet and ample cash puts the Company in a strong position to operate through this historic period of COVID-19-driven theater closures
• In response to COVID-19, the Company has implemented cost reductions and drew on its revolver, ending the quarter with $352.3 million in consolidated cash and its $300 million revolver fully drawn
• The Company estimates a monthly cash burn rate of approximately $10 million and remains confident in its ability to operate through an extended business shut down and a zero revenue environment
• First quarter 2020 revenue decreased 56.5% versus 2019 to $34.9 million
• First quarter 2020 net (loss) attributable to common shareholders was ($49.4) million. Non-GAAP adjusted EBITDA (loss) was ($4.4) million versus $28.5 million in the prior-year period
• The Company is actively preparing to reopen to what is projected to be an IMAX-friendly second-half release slate

"IMAX is uniquely positioned to manage through a temporary shutdown of theaters as a result of strategic planning which led to our strong financial position, valuable brand, and vast global footprint. With our strong cash balance and continued cost discipline, we believe that we will be ready to program our network, accelerate our theater business, and once again bring audiences the world's most immersive entertainment experience when ready," said IMAX CEO Richard L. Gelfond.

"When global economies restart, and theaters reopen, we believe audiences will turn to strong, trusted brands like IMAX. In 2019, IMAX delivered a record year across global, international, and local language box office — underscoring the strength of our brand and product offering throughout an increasingly diverse geographic footprint."

"We are working closely with our studio partners to reshape our slate in the second half of 2020 and into 2021 — a period that is now scheduled to see an impressive offering of marquee blockbuster films. Operationally, we are focused on ensuring that we can support this rich content pipeline with our proprietary post-production process and our enhanced marketing capabilities."

"We continue to monitor the situation and carefully plan for the reopening of theaters in China when it is safe. We look forward to circumstances continuing to improve in the market and meeting strong audience demand for immersive filmmaking and entertainment experiences."

"Above all, we are focused on the safety and well-being of our employees and our audiences. Our thoughts remain with those impacted by this pandemic around the world, as we continue to support the efforts of local governments and our industry to prioritize public health."

For earnings history and earnings-related data on IMAX Corp. (IMAX) click here.

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