Zacks
0
All posts from Zacks
Zacks in Our Research. Your Success.,

IMAX Corp. (IMAX) Beats Q1 Earnings & Revenue Estimates

IMAX Corp. IMAX reported mixed first-quarter 2016 results, with both the top and the bottom line beating the Zacks Consensus Estimate.
Reported net income was $9.5 million or 14 cents per share, easily outpacing the Zacks Consensus Estimate of 9 cents.

Quarterly total revenue of $92.1 million was up 48.1% year over year and also above the Zacks Consensus Estimate of $83 million. Operating margin was 17.7% compared with 4.3% in the year-ago quarter. Adjusted EBITDA margin in the quarter under review stood at 37.4% against 26.9% in the prior-year quarter.

At the end of the first quarter of 2016, IMAX generated around $5 million of cash from operations compared with $6 million in the same quarter last year. Free cash flow in the quarter under review was $0.4 million compared with cash consumption of $16.6 million in the same quarter last year. IMAX exited the first quarter of 2016 with $259.8 million of cash and cash equivalents and no outstanding debt compared with $317.4 million of cash and no outstanding debt at the end of 2015.

Segment-wise Results

Sales and sales-type leases: Quarterly total revenue was $18 million, up 109.3% year over year. Joint-revenue sharing arrangement: Quarterly revenues totaled $23.4 million, up 47.2% year over year.

The Film segment recorded $32.6 million in revenues, up 48.2%.
Production and IMAX DMR (Digital Re-Mastering): Quarterly total revenue was $29.8 million, up 68.4% year over year. The average global DMR box-office revenues per screen in first-quarter 2016 were $284,400 compared with $202,900 in the prior-year quarter.

Category-wise Results

In the quarter under review, revenues from Equipment and product sales totaled $23.7 million, up 64.6% year over year. Services revenues improved 39.7% from the prior-year quarter to $44.3 million. Rental revenues were $21.8 million, up 58% year over year. Finance income came in at $2.3 million, up 4.5% year over year.

Network Growth Statistics

At the end of the first quarter of 2016, IMAX installed 19 new theaters (including upgrades) against 13 in the prior-year quarter. Total new theater signings (including upgrades), at the end of the quarter under review, was 36 compared with 21 at the end of first-quarter 2015. At the end of first-quarter 2016, total theater count in backlog (including upgrades) was 388 compared with 403 in the same quarter last year. Total IMAX theater network (inclusive of Commercial Multiplex) was 1,066 in the first quarter of 2016 compared with 943 a year ago.

IMAX currently carries a Zacks Rank #3 (Hold).

Stocks to Consider

Better-ranked stocks in the related sector are World Wrestling Entertainment Inc. WWE, DreamWorks Animation SKG Inc. DWA and Media General, Inc. MEG. World Wrestling Entertainment sports a Zacks Rank #1 (Strong Buy) while the other two companies carry a Zacks Rank #2 (Buy).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.  http://www.zacks.com/registration/pfp/?ALERT=RPT_7BST_LP194&... blog">Click to get this free report >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
MEDIA GENERAL (MEG): Free Stock Analysis Report
 
WORLD WRESTLING (WWE): Free Stock Analysis Report
 
IMAX CORP (IMAX): Free Stock Analysis Report
 
DREAMWORKS ANIM (DWA): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research