Revenue increased 25% from the prior-year period to $55.1 million, primarily attributed to increased installation activity and network growth
Robust signings of 79 new theatres in the first-half of 2016, up 339% from 18 theatre signings in the comparable period last year, eclipsed the 74 theatres signed in all of 2015
Total backlog of 264 theatres hit all-time Company record and increases 23% over 2015 year-end levels
IMAX China installed 30 IMAX systems in Greater China in the first-half of 2016, up 67% from the prior-year period
IMAX China increases 2016 installation guidance to 115 theatres for 2016, up from original 2016 guidance of 100 theatres
Profit for the period came in at $17.7 million, up from a loss of $67.9 million in the prior-year period
IMAX China Holding, Inc. ("IMAX China," HKG: 1970) today reported first-half 2016 Greater China revenue of $55.1 million, up from $43.9 million in the year-ago period. Gross profit was $33.9 million or 62% of revenues. Profit for the period increased to $17.7 million and adjusted profit also increased to $18.6 million as compared to the prior year period. For adjustments to net profit and a full detail of our financial results, please refer to our corporate filing posted with the Hong Kong Stock Exchange or to our earnings results posted on the Investor Relations section of the IMAX China web site (http://www.imax.cn/investor).
"In the first half of 2016 we signed 79 new theatres, outpacing the 74 theatres we signed in all of 2015. This significant level of signing activity is not only a clear indication of the strong consumer demand for IMAX in China, but bodes well for the health of our business as more signings lead to more installs, which then lead to more box office, and, ultimately, to greater revenue," stated Richard L. Gelfond, Chairman of IMAX China. "As a result of this momentum, we have raised our 2016 theatre installation guidance to 115 theatres, up from the original guidance of 100 systems. We are encouraged by this accelerated signings activity, particularly as a large portion comes from adding significant new full revenue-sharing arrangements. The further integration of this partnership model, together with our increased pace of installations, allows us to participate in more favorable ongoing box office economics and positions us well to capitalize on a promising film slate for the remainder of 2016 and 2017."
The IMAX theatre network in Greater China consisted of 335 systems as of June 30, 2016, of which 318 were in commercial multiplexes. Currently, 196 of these theatres are operating under revenue-sharing arrangements and 122 are operating under sales and sales-type lease arrangements. There were also 264 theatres in backlog as of June 30, 2016, of which 189 were for revenue sharing arrangements. This backlog grew 23% from Dec 31, 2015. The Company also installed 28 theatres in new locations and 2 upgrades in the first half of 2016, which is up from the 18 installations recognized in the first half of 2015.
Greater China Key Metrics
Six Months ended June 30,
IMAX Greater China Box Office
IMAX Greater China Per Screen Avg.
Greater China Theatre Installations
Greater China Backlog
Greater China Network:
Conference Call The Company will host a conference call today at 7:30 AM Hong Kong Time to discuss its first-half 2016 financial results. To access the call via telephone, interested parties in the US and Canada should dial (888) 263-2736 approximately 5 to 10 minutes before the call begins. Hong Kong callers should dial 800-903-317 and other international callers should dial (913) 312-9324. The conference ID for the call is 7159214. A replay of the call will be available via webcast on the 'Investor Relations' section of www.imax.cn or via telephone by dialing (888) 203-1112 (US and Canada), or (647) 436-0148 (international). The Conference ID for the telephone replay is 7159214.
About IMAX China IMAX China is a subsidiary of IMAX Corporation, and is incorporated under the laws of Cayman Islands. IMAX China was established by IMAX Corporation specifically to oversee the expansion of IMAX's business throughout Greater China. IMAX China trades on the Hong Kong Stock Exchange under the stock code "HK.1970."
About IMAX Corporation IMAX, an innovator in entertainment technology, combines proprietary software, architecture and equipment to create experiences that take you beyond the edge of your seat to a world you've never imagined. Top filmmakers and studios are utilizing IMAX theatres to connect with audiences in extraordinary ways, and, as such, IMAX's network is among the most important and successful theatrical distribution platforms for major event films around the globe.
IMAX is headquartered in New York, Toronto and Los Angeles, with offices in London, Tokyo, Shanghai and Beijing. As of Jun. 30, 2016, there were 1,102 IMAX theatres (990 commercial multiplexes, 16 commercial destinations and 96 institutions) in 69 countries. On Oct. 8, 2015, shares of IMAX China, a subsidiary of IMAX Corp., began trading on the Hong Kong Stock Exchange under the stock code "HK.1970."
This press release contains forward looking statements that are based on IMAX management's assumptions and existing information and involve certain risks and uncertainties which could cause actual results to differ materially from future results expressed or implied by such forward looking statements. Important factors that could affect these statements include, but are not limited to, general economic, market or business conditions; the opportunities (or lack thereof) that may be presented to and pursued by the Company; the performance of IMAX DMR films; competitive actions by other companies; conditions in the in-home and out-of-home entertainment industries; the signing of theater system agreements; changes in laws or regulations; conditions, changes and developments in the commercial exhibition industry; the failure to convert theater system backlog into revenue; risks associated with investments and operations in foreign jurisdictions and any future international expansion, including those related to economic, political and regulatory policies of local governments and laws and policies of the United States and Canada; risks related to the Company's growth and operations in China; the failure to respond to change and advancements in digital technology; risks related to the acquisition of AMC Entertainment Holdings, Inc. by Dalian Wanda Group Co., Ltd.; risks related to new business initiatives; the potential impact of increased competition in the markets within which the Company operates; risks related to the Company's inability to protect the Company's intellectual property; risks related to Eastman Kodak bankruptcy and the possibility of constrained film supply; risks related to the Company's implementation of a new enterprise resource planning system; risks related to the Company's prior restatements and the related litigation; and other factors, many of which are beyond the control of the Company. These factors, other risks and uncertainties and financial details are discussed in IMAX's most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.