IMAX announces record revenue, profits for 2010

Total revenue gained 45% year-on-year to $248.6m compared to $171.2m for fiscal 2009 and reported net income for fiscal 2010 increased to $100.8m or $1.51 per diluted share compared to $5m or $0.09 per diluted share in 2009. 

IMAX CEO Richard L Gelfond said “most aspects of our strategy come together”, adding that the company’s commercial network grew by 30%, the digital network expanded by more than 80% and that there was a record number of new theatre signings.

Fiscal 2010 adjusted net income, which excludes variable stock compensation and a non-cash tax benefit, increased 232% to a record $67.8m or $1.02 per diluted share, compared to $20.5m or $0.38 per share the year before.

For the 12 months ended Dec 31 2010 adjusted EBITDA went up 73% to a record $101.4m, compared to $58.5m last year. 

IMAX Corporation also announced total revenues for the fourth quarter ended Dec 31 2010, which climbed 28% year-on-year from $54.2m to $69.2m. The company attributed much of this success to the performance of Harry Potter And The Deathly Hallows: Part 1 (pictured) and Tron: Legacy were crucial factors during the period.

In 2010 the company installed 123 theatre systems, compared to 118 installations in 2009. During the fourth quarter of 2010 there was a record 54 theatre systems, compared to 38 in the fourth quarter of 2009.

Based on this IMAX Corporation revised its projections for theatre network growth in 2011 and said it expected to instal between 80 and 90 new theatres (40 to 45 new joint revenue sharing systems and 40 to 45 new sales-type lease systems, excluding upgrades) this year. This implies a year-over-year commercial multiplex network growth of at least 20%, as the projection does not account for any theatres IMAX may sign and instal in 2011.

• Fourth quarter 2010 total film revenue increased 19% to $18m, compared to $15.1m in the fourth quarter of 2009. Production and IMAX DMR revenues increased 9% to $13.1m, compared to $12m in the year-ago period and gross box office from DMR titles was $101.9m compared to $101m in the fourth quarter of 2009.
• Average DMR box office per screen in the fourth quarter was $312,000 ($300,000 North American, $339,000 international) against $429,000 ($410,300 North American, $460,600 international) in the fourth quarter of 2009. 
• IMAX systems revenue in the fourth quarter 2010 grew by 67% to $32.9m from $19.6m in the fourth quarter of 2009, which IMAX Corporation said primarily reflected the installation of 20 full new theatre systems in the period, doubling the number installed during the fourth quarter 2009.
• In the fourth quarter of 2010, revenue from joint revenue sharing arrangements fell 13% to $7.8m, compared to $9.1m in the prior year period, including the “difficult year-over-year per-screen comparison related to the release of Avatar: An IMAX 3D Experiencein 2009.” In the fourth quarter of 2010, joint revenue sharing theatres generated gross box office per-screen averages of approximately $287,000, compared to $357,500 in last year’s period. As of Dec 31 2010 there were a total of 171 theatres under joint revenue sharing arrangements in operation, which according to the company represented a 46% increase over the 117 joint venture theatres in operation as of Dec 31 2009.