IMAX Earnings 2020-09-30

Balance Sheet	Income Statement	Cash Flow
Assets, Equity	Rev, G Profit, Net Income	Ops, Inv, Fin

imax-10q_20200930.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

Form 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2020

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number 001-35066

IMAX Corporation

(Exact name of registrant as specified in its charter)

Canada	98-0140269
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification Number)

2525 Speakman Drive, Mississauga, Ontario, Canada L5K 1B1 (905) 403-6500	902 Broadway, Floor 20 New York, New York, USA 10010 (212) 821-0100

(Address of principal executive offices, zip code, telephone numbers)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Shares, no par value		IMAX		The New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:

Class		Outstanding as of September 30, 2020
Common Shares, no par value		58,861,171

IMAX CORPORATION

Table of Contents


		Page
PART I. FINANCIAL INFORMATION
Item 1.	Financial Statements	3
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	46
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	78
Item 4.	Controls and Procedures	80

PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	81
Item 1A.	Risk Factors	81
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	83
Item 6.	Exhibits	84
Signatures		85

IMAX CORPORATION

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements


	Page
The following unaudited Condensed Consolidated Financial Statements are filed as part of this Report:

Condensed Consolidated Balance Sheets as at September 30, 2020 and December 31, 2019	4
Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2020 and 2019	5
Condensed Consolidated Statements of Comprehensive (Loss) Income for the three and nine months ended September 30, 2020 and 2019	6
Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2020 and 2019	7
Condensed Consolidated Statements of Shareholders’ Equity for the three and nine months ended September 30, 2020 and 2019	8
Notes to Condensed Consolidated Financial Statements	9

IMAX CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands of U.S. dollars except per share amounts)

(Unaudited)

	September 30,			December 31,
	2020			2019
Assets
Cash and cash equivalents	$	305,197		$	109,484
Accounts receivable, net of allowance for credit losses		59,674			99,513
Financing receivables, net of allowance for credit losses		126,740			128,038
Variable consideration receivable, net of allowance for credit losses		39,394			40,040
Inventories		53,021			42,989
Prepaid expenses		10,812			10,237
Film assets		7,468			17,921
Property, plant and equipment		282,854			306,849
Investment in equity securities		14,803			15,685
Other assets		23,796			25,034
Deferred income tax assets		17,737			23,905
Other intangible assets		27,019			30,347
Goodwill		39,027			39,027
Total assets	$	1,007,542		$	889,069
Liabilities
Bank indebtedness	$	297,985		$	18,229
Accounts payable		12,011			20,414
Accrued and other liabilities		103,970			112,779
Deferred revenue		99,770			94,552
Deferred income tax liabilities		18,661			—
Total liabilities		532,397			245,974
Commitments and contingencies
Non-controlling interests		776			5,908
Shareholders' equity
Capital stock common shares — no par value. Authorized — unlimited number.
58,878,749 issued and 58,861,171 outstanding (December 31, 2019 — 61,362,872 issued and 61,175,852 outstanding)		405,583			423,386
Less: Treasury stock, 17,578 shares at cost (December 31, 2019 — 187,020)		(271	)		(4,038	)
Other equity		177,110			171,789
Accumulated deficit		(181,604	)		(40,253	)
Accumulated other comprehensive loss		(1,984	)		(3,190	)
Total shareholders' equity attributable to common shareholders		398,834			547,694
Non-controlling interests		75,535			89,493
Total shareholders' equity		474,369			637,187
Total liabilities and shareholders' equity	$	1,007,542		$	889,069

(See the accompanying notes, which are an integral part of these Condensed Consolidated Financial Statements)

IMAX CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands of U.S. dollars, except per share amounts)

(Unaudited)

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020			2019


Revenues
Technology sales	$	15,753	$	21,735		$	24,102		$	56,629
Image enhancement and maintenance services		14,589		44,168			39,109			144,977
Technology rentals		4,473		17,642			10,307			61,675
Finance income		2,441		2,845			7,495			8,104
		37,256		86,390			81,013			271,385
Costs and expenses applicable to revenues
Technology sales		9,222		11,740			15,637			33,114
Image enhancement and maintenance services		16,989		20,181			42,049			66,205
Technology rentals		7,216		7,349			22,100			20,253
		33,427		39,270			79,786			119,572
Gross margin		3,829		47,120			1,227

Price	22.31	EPS	1
Shares	62	P/E	33
MCap	1,372	P/FCF	20
Net Debt	-84	EBIT	47
TEV	1,288	TEV/EBIT	27
TTM 2019-09-30, in MM, except price, ratios

10-Q	2020-09-30	Filed 2020-10-29
10-Q	2020-06-30	Filed 2020-07-28
10-Q	2020-03-31	Filed 2020-04-30
10-K	2019-12-31	Filed 2020-02-19
10-Q	2019-09-30	Filed 2019-10-31
10-Q	2019-06-30	Filed 2019-07-30
10-Q	2019-03-31	Filed 2019-04-26
10-K	2018-12-31	Filed 2019-02-26
10-Q	2018-09-30	Filed 2018-10-25
10-Q	2018-06-30	Filed 2018-07-25
10-Q	2018-03-31	Filed 2018-05-01
10-K	2017-12-31	Filed 2018-02-27
10-Q	2017-09-30	Filed 2017-10-26
10-Q	2017-06-30	Filed 2017-07-26
10-Q	2017-03-31	Filed 2017-04-20
10-K	2016-12-31	Filed 2017-02-23
10-Q	2016-09-30	Filed 2016-10-20
10-Q	2016-06-30	Filed 2016-07-20
10-Q	2016-03-31	Filed 2016-04-21
10-K	2015-12-31	Filed 2016-02-24
10-Q	2015-09-30	Filed 2015-10-28
10-Q	2015-06-30	Filed 2015-07-23
10-Q	2015-03-31	Filed 2015-04-30
10-K	2014-12-31	Filed 2015-02-19
10-Q	2014-09-30	Filed 2014-10-23
10-Q	2014-06-30	Filed 2014-07-24
10-Q	2014-03-31	Filed 2014-04-24
10-K	2013-12-31	Filed 2014-02-20
10-Q	2013-09-30	Filed 2013-10-24
10-Q	2013-06-30	Filed 2013-07-25
10-Q	2013-03-31	Filed 2013-04-25
10-K	2012-12-31	Filed 2013-02-21
10-Q	2012-06-30	Filed 2012-07-26
10-Q	2012-03-31	Filed 2012-04-27
10-K	2011-12-31	Filed 2012-02-24
10-Q	2011-09-30	Filed 2011-10-27
10-Q	2011-06-30	Filed 2011-07-28
10-Q	2011-03-31	Filed 2011-04-28
10-K	2010-12-31	Filed 2011-02-24
10-Q	2010-09-30	Filed 2010-10-28
10-Q	2010-06-30	Filed 2010-07-29
10-Q	2010-03-31	Filed 2010-04-29
10-K	2009-12-31	Filed 2010-03-11

8-K	2020-10-29	Earnings, Exhibits
8-K	2020-09-18	Officers
8-K	2020-07-28	Earnings, Exhibits
8-K	2020-06-26	Regulation FD, Exhibits
8-K	2020-06-10
8-K	2020-06-03
8-K	2020-04-30
8-K	2020-03-11
8-K	2020-02-19
8-K	2019-12-17
8-K	2019-11-20
8-K	2019-10-31
8-K	2019-10-30
8-K	2019-07-30
8-K	2019-06-05
8-K	2019-04-26
8-K	2019-02-26
8-K	2018-12-13
8-K	2018-10-25
8-K	2018-10-15
8-K	2018-07-25
8-K	2018-06-28
8-K	2018-06-05
8-K	2018-05-01
8-K	2018-03-23
8-K	2018-02-27

EX-10.52	imax-ex1052_48.htm
EX-31.1	imax-ex311_9.htm
EX-31.2	imax-ex312_8.htm
EX-32.1	imax-ex321_10.htm
EX-32.2	imax-ex322_6.htm

IMAX 10Q Quarterly Report

IMAX Earnings 2020-09-30