IMAX Corporation (IMAX) is one of the world’s leading entertainment technology companies, specializing in motion picture technologies and presentations.
IMAX offers a unique end-to-end cinematic solution combining proprietary software, theater architecture and equipment to create the highest quality, most immersive motion picture experience. The company has a theater network of 934 theater systems operating in 62 countries as of December 31, 2014. In 2014, IMAX signed theater agreements for an additional 118 theater systems. The company derives revenue through systems sales and by earning a percentage of box office receipts; the global box office is projected to increase in 2015 with several potential blockbusters (Star Wars: Episode VII, Spectre, and The Hunger Games: Mockingjay Part 2) slated for later this year.
China is the company’s second-largest and fastest-growing market. As of December 31, 2014, IMAX had 234 theaters operating in Greater China and an additional 217 theaters in backlog. The company intends to IPO its China joint venture on the Hong Kong exchange sometime over the next 12 months.
In the company’s latest reported second quarter, sales increased approximately 35% to $107.2 million from $79.2 million in the second quarter of last year. IMAX reported earnings per share of $.40 in the latest reported second quarter versus $.25 in the same quarter of last year.
Jim Oberweis, CFA, The Oberweis Report, www.oberweisreport.com, 800-323-6166, September 2015
