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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934

February 19, 2025

Date of report (Date of earliest event reported)

IMAX Corporation
(Exact Name of Registrant as Specified in Its Charter)


Canada001-3506698-0140269
(State or Other Jurisdiction
of Incorporation)
(Commission
File Number)
(I.R.S. Employer
Identification Number)

2525 Speakman Drive
902 Broadway, Floor 20
Mississauga, Ontario, Canada L5K 1B1
New York, New York, USA 10010
(905) 403-6457
(212) 821-0142

(Address of principal executive offices, zip code, telephone numbers)
N/A
(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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 valueIMAXThe New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter):

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. ☐


Item 2.02    Results of Operations and Financial Condition

On February 19, 2025, IMAX Corporation (the “Company”) issued a press release announcing the Company’s financial and operating results for the quarter ended December 31, 2024, a copy of which is attached as Exhibit 99.1.

The information in this current report on Form 8-K, including the Exhibit attached hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01    Financial Statements and Exhibits

Exhibits

Exhibit
No.
Description
99.1
104Cover Page Interactive Data File (formatted as inline XBRL).

2

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

IMAX Corporation
(Registrant)
Date: February 19, 2025
By:/s/ Richard L. Gelfond
Name:Richard L. Gelfond
Title:Chief Executive Officer & Director
3

Exhibit 99.1
image_0.jpg

IMAX CORPORATION REPORTS
FOURTH QUARTER AND FULL YEAR 2024 RESULTS

•Global entertainment platform delivers Q4 Net Income of $5 million (+112% YoY), at a 5.7% margin, EPS(1) of 10 cents (+100% YoY), Adjusted EPS of 27 cents (+59% YoY) and Total Adjusted EBITDA(2) of $37 million (+48% YoY) at a 40% margin.

•Full-Year Net Income of $26 million (+3% YoY) at a 7.4% margin, Total Adjusted EBITDA of $139 million (-4% YoY) at a 39.4% margin (in line with guidance of high 30’s) and Cash from Operations of $71 million (+21% YoY).

•IMAX delivers 146 system installations for the full year, at the high-end of initial installation guidance of 120 to 150.

•To start 2025, IMAX smashes box office record for Chinese New Year slate with $130 million and counting — already up over 90% from the previous best — led by “Ne Zha 2,” now the highest grossing IMAX release of all time in China.

•IMAX expects in 2025 to deliver a record box office of more than $1.2 billion along with Total Adjusted EBITDA margin(3) of 40%+ and system installations of 145 to 160.


NEW YORK, NY — February 19, 2025 — IMAX Corporation (NYSE: IMAX) today reported solid financial results for the fourth quarter and full-year of 2024, demonstrating the value of its unique global entertainment platform and broad content portfolio.

“IMAX’s record-breaking Chinese New Year demonstrates the unique advantages of our model – a richly diversified content portfolio featuring the biggest Hollywood and local language blockbusters, and a global network that allows us to capitalize on box office momentum anywhere in the world,” said Rich Gelfond, CEO of IMAX.”

“2025 is already living up to its significant promise and yet the bigger opportunity is still in front of us, with more Filmed for IMAX® releases than ever in 2025 and arguably an even stronger slate ahead in 2026. In China, the turnaround we’re witnessing this year has been dramatic; in less than two months, our Chinese local language box office has already exceeded the entirety of 2024."

“In 2024, IMAX further strengthened its position at the center of global entertainment – expanding the roster of filmmakers working with our technology, strengthening our studio marketing, hitting the high-end of our installation guidance, and innovating to expand our programming – including our deal with Netflix for the release of Greta Gerwig’s ‘Narnia’ across the IMAX global network in advance of its debut on the service.

“With the headwinds we faced in China in 2024 beginning to lift, we’re poised to build on the Fourth Quarter’s significant double-digit growth in adjusted EBITDA and earnings per share. We look forward to capitalizing on the promising opportunity ahead to achieve a record year at the global box office and strong returns for our shareholders.”


_______________
(1)Diluted Net Income Per Share
(2)Non-GAAP Financial Measure. See the discussion at the end of this earnings release for a description of the non-GAAP financial measures used herein, as well as reconciliations to the most comparable GAAP amounts.
(3)IMAX has not provided a quantitative reconciliation of its Total Adjusted EBITDA margin outlook to a GAAP net income margin outlook because it is unable, without making unreasonable efforts, to project certain reconciling items. These items include, but are not limited to share-based and other non-cash compensation, unrealized investment gains, transaction-related expenses, restructuring and other charges, and write-downs, including asset impairments and credit loss reversal. These items are inherently variable and uncertain and depend on various factors, some of which are outside of the IMAX’s control or ability to predict. For more information regarding the Company’s use of non-GAAP financial measures, please see the section titled “Non-GAAP Financial Measures” below.
1

Fourth Quarter and Full-Year Financial Highlights

Three Months Ended December 31,
(Unaudited)
Years Ended December 31,
In millions of U.S. Dollars, except per share data20242023YoY %
Change		20242023YoY %
Change
Total Revenue$92.7 $86.0 8 %$352.2 $374.8 (6 %)
Gross Margin$48.4 $43.7 11 %$190.2 $214.3 (11 %)
Gross Margin (%)52.2 %50.8 %54.0 %57.2 %
Total Adjusted EBITDA(1)(2)
$37.2 $25.2 48 %$138.9 $144.0 (4 %)
Total Adjusted EBITDA Margin (%)(1)(2)
40.1 %29.3 %39.4 %38.4 %
Net Income(3)
$5.3 $2.5 112 %$26.1 $25.3 3 %
Diluted Net Income Per Share(3)
$0.10 $0.05 100 %$0.48 $0.46 4 %
Adjusted Net Income(1)(3)
$14.5 $9.3 56 %$51.0 $52.1 (2 %)
Adjusted Earnings Per Share(1)(3)
$0.27 $0.17 59 %$0.95 $0.94 1 %
Weighted average shares outstanding (in millions):
Basic52.8 54.0 (2 %)52.6 54.3 (3 %)
Diluted54.7 55.0 (1 %)53.9 55.1 (2 %)
image_1.jpg
(1)Non-GAAP Financial Measure. See the discussion at the end of this earnings release for a description of the non-GAAP financial measures used herein, as well as reconciliations to the most comparable GAAP amounts.
(2)Total Adjusted EBITDA is before adjustments for non-controlling interests. Total Adjusted EBITDA per Credit Facility attributable to common shareholders, excluding non-controlling interests, was $34.2 million and $124.7 million for the three months and year ended December 31, 2024 (2023 - $23.0 million and $128.1 million). The Company’s Credit Facility covenant is calculated on a trailing twelve month basis.
(3)Attributable to common shareholders.

2

Fourth Quarter and Full-Year Segment Results(1)
Content SolutionsTechnology Products and Services
  Revenue    
 Gross Margin
Gross
  Margin %
  Revenue    
 Gross Margin
Gross
  Margin %
4Q24$25.5 $11.8 46 %$64.0 $34.2 53 %
4Q2319.1 9.7 51 %62.5 29.9 48 %
% change
34 %22 %2 %15 %
FY24$124.7 $66.5 53 %$216.1 $115.6 53 %
FY23126.7 74.1 58 %234.3 129.9 55 %
% change
(2 %)(10 %)(8 %)(11 %)
image_1.jpg
(1)Please refer to the Company’s Form 10-K for the year ended December 31, 2024 for additional segment information.

Content Solutions Segment

•Fourth quarter Content Solutions revenues and gross margin increased 34% year-over-year to $26 million and increased 22% year-over-year to $12 million, respectively, driven by higher box office, and highlighted by record Thanksgiving weekend box office of $24 million.

•Fourth quarter box office of $204 million increased 20% year-over-year and helped propel IMAX to near-record annual domestic box office. Top grossing fourth quarter titles included Gladiator 2 ($31 million), Venom: The Last Dance ($31 million), Mufasa: The Lion King ($26 million) and Interstellar ($20 million)

Technology Products and Services Segment

•Fourth quarter Technology Products and Services revenues and gross margin increased 2% to $64 million and increased 15% to $34 million year-over-year, respectively, driven by higher box office related rental revenue that more than offset a lower level of sales type system installations year-over-year.

•During the fourth quarter of 2024, the Company installed 58 systems compared to 69 systems in the fourth quarter of 2023 resulting in 146 system installations in the full year versus 128 system installations in the prior year. Of those, 28 systems in the fourth quarter and 63 in the full year were under sales arrangements, compared to 35 and 70 systems in the prior year, respectively.

•Commercial network growth continues with the number of IMAX locations increasing 2.5% year-over-year to 1,735 systems. The Company ended 2024 with a backlog of 440 IMAX systems.

Operating Cash Flow and Liquidity

Net cash provided by operating activities for full year 2024 was $71 million, compared to $59 million in the prior year period reflecting improvements in working capital driven by higher collections.

As of December 31, 2024, the Company’s available liquidity was $418 million. The Company’s liquidity includes cash and cash equivalents of $101 million, $263 million in available borrowing capacity under the Credit Facility, and $54 million in available borrowing capacity under IMAX China’s revolving facilities. Total debt, excluding deferred financing costs, was $269 million as of December 31, 2024.

In 2021, the Company issued $230.0 million of 0.500% Convertible Senior Notes due 2026 (“Convertible Notes”). In connection with the pricing of the Convertible Notes, the Company entered into privately negotiated capped call transactions with an initial cap price of $37.2750 per share of the Company’s common shares.

3


Share Count and Capital Return

The weighted average basic and diluted shares outstanding in the fourth quarter of 2024 were 52.8 million and 54.7 million, respectively, compared to 54.0 million and 55.0 million in the fourth quarter of 2023, a decrease of 2.2% and 0.5%, respectively.

For the year ended December 31, 2024, the Company repurchased 1,166,370 common shares at an average price of $13.99 for a total of $16 million, excluding commissions.

The Company is authorized under its share-repurchase program, expiring June 30, 2026 to repurchase up to $400 million of its common shares, of which approximately $151 million remains available.

Supplemental Materials

For more information about the Company’s results, please refer to the IMAX Investor Relations website located at investors.imax.com.

Investor Relations Website and Social Media

On a monthly basis, the Company posts quarter-to-date box office results on the IMAX Investor Relations website located at investors.imax.com. The Company expects to provide such updates within five business days of month-end, although the Company may change this timing without notice.

The Company may post additional information on the Company’s corporate and Investor Relations websites which may be material to investors. Accordingly, investors, media and others interested in the Company should monitor the Company’s website in addition to the Company’s press releases, SEC filings and public conference calls and webcasts, for additional information about the Company. References to our website address and domain names throughout this release are for informational purposes only, or to fulfill specific disclosure requirements of the Securities and Exchange Commission’s rules or The New York Stock Exchange Listing Standards. These references are not intended to, and do not, incorporate the contents of our websites by reference into this release.

Conference Call

The Company will host a conference call today at 4:30 PM ET to discuss its fourth quarter and full-year 2024 financial results. This call is being webcast and can be accessed at investors.imax.com. To access the call via telephone, interested parties please pre-register here: https://register.vevent.com/register/BI5416215ae6134b378b06870a2fb47726 and and you will be provided with a dial-in number and unique pin. To avoid delays, we encourage participants to dial into the conference call ten minutes ahead of the scheduled start time. A replay of the call will be available via webcast at investors.imax.com.

4

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 systems to connect with audiences in extraordinary ways, making IMAX’s network 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 additional offices in London, Dublin, Tokyo, and Shanghai. As of December 31, 2024, there were 1,807 IMAX systems (1,735 commercial multiplexes, 11 commercial destinations, 61 institutional) operating in 90 countries and territories. Shares of IMAX China Holding, Inc., a subsidiary of IMAX Corporation, trade on the Hong Kong Stock Exchange under the stock code “1970”.

IMAX®, IMAX 3D®, Experience It In IMAX®, The IMAX Experience®, DMR®, Filmed For IMAX®, IMAX Live®, IMAX Enhanced® and IMAX StreamSmartTM are trademarks and trade names of the Company or its subsidiaries that are registered or otherwise protected under laws of various jurisdictions. For more information, visit www.imax.com. You can also connect with IMAX on Instagram (www.instagram.com/company/imax), Facebook (www.facebook.com/imax), LinkedIn (www.linkedin.com/company/imax), X (www.twitter.com/imax), and YouTube (www.youtube.com/imaxmovies).

For additional information please contact:

Investors:
IMAX Corporation, New York
Jennifer Horsley
212-821-0154
jhorsley@IMAX.com
Media:
IMAX Corporation, New York
Mark Jafar
212-821-0102
mjafar@imax.com




5

Forward-Looking Statements

This earnings 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. These forward-looking statements include, but are not limited to, references to business and technology strategies and measures to implement strategies, competitive strengths, goals, expansion and growth of business, operations and technology, future capital expenditures (including the amount and nature thereof), industry prospects and consumer behavior, plans and references to the future success of IMAX Corporation together with its consolidated subsidiaries (the “Company”) and expectations regarding the Company’s future operating, financial and technological results. These forward-looking statements are based on certain assumptions and analyses made by the Company in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate in the circumstances. However, whether actual results and developments will conform with the expectations and predictions of the Company is subject to a number of risks and uncertainties, including, but not limited to, 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, as well as geopolitical conflicts; risks related to the Company’s growth and operations in China; the performance of IMAX remastered films and other films released to the IMAX network; the signing of IMAX System agreements; conditions, changes and developments in the commercial exhibition industry; risks related to currency fluctuations; the potential impact of increased competition in the markets within which the Company operates, including competitive actions by other companies; the failure to respond to change and advancements in technology; risks relating to consolidation among commercial exhibitors and studios; risks related to brand extensions and new business initiatives; conditions in the in-home and out-of-home entertainment industries; the opportunities (or lack thereof) that may be presented to and pursued by the Company; risks related to cyber-security and data privacy; risks related to the Company’s inability to protect the Company’s intellectual property; risks associated with the Company’s use of artificial intelligence and exploration of additional use cases of artificial intelligence; risks related to climate change; risks related to weather conditions and natural disasters that may disrupt or harm the Company’s business; risks related to the Company’s indebtedness and compliance with its debt agreements; general economic, market or business conditions; risks related to political, economic and social instability; the failure to convert system backlog into revenue; changes in laws or regulations; any statements of belief and any statements of assumptions underlying any of the foregoing; other factors and risks outlined in the Company’s periodic filings with the SEC; and other factors, many of which are beyond the control of the Company. Consequently, all of the forward-looking statements made in this earnings release are qualified by these cautionary statements, and actual results or anticipated developments by the Company may not be realized, and even if substantially realized, may not have the expected consequences to, or effects on, the Company. These factors, other risks and uncertainties and financial details are discussed in the Company’s most recent Annual Report on Form 10-K. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements, whether as a result of new information, future events or otherwise.




6

IMAX Network and Backlog

Three Months Ended
Years Ended
December 31,December 31,
2024202320242023
System Signings(1):
Sales Arrangements14 10 54 64 
Traditional JRSA5 25 76 65 
Total IMAX System Signings19 35 130 129 

(1) System signings include new signings of 15 in Q4 2024 and 32 in Q4 2023, and 57 in 2024 and 108 in 2023.

Three Months Ended
Years Ended
December 31,December 31,
2024202320242023
System Installations(1):
Sales Arrangements27 35 63 70 
Hybrid JRSA— 3 — 5 
Traditional JRSA31 31 83 53 
Total IMAX System Installations58 69 146 128 

(1) System installations include new systems installations of 32 in Q4 2024, 47 in Q4 2023, 77 in 2024 and 86 in 2023.
As of December 31,
20242023
System Backlog:
Sales Arrangements164 164 
Hybrid JRSA94 103 
Traditional JRSA182 183 
Total System Backlog440 450 
As of December 31,
20242023
System Network:
Commercial Multiplex Systems
Sales Arrangements838 769 
Hybrid JRSA126 138 
Traditional JRSA771 786 
Total Commercial Multiplex Systems1,735 1,693 
Commercial Destination Systems11 12 
Institutional Systems61 67 
Total System Network1,807 1,772 

7

IMAX CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands of U.S. dollars, except per share amounts)


Three Months Ended December 31,
Years Ended
(Unaudited)December 31,
2024202320242023
Revenues
Technology sales
$33,136 $35,337 $87,765 $100,792 
Image enhancement and maintenance services
42,769 35,508 192,197 189,752 
Technology rentals
13,794 12,954 62,560 75,566 
Finance income
2,973 2,219 9,686 8,729 
92,672 86,018 352,208 374,839 
Costs and expenses applicable to revenues
Technology sales
13,641 17,805 38,235 46,756 
Image enhancement and maintenance services
23,187 18,586 96,558 88,056 
Technology rentals
7,479 5,939 27,215 25,686 
44,307 42,330 162,008 160,498 
Gross margin
48,365 43,688 190,200 214,341 
Selling, general and administrative expenses
32,414 35,070 132,701 144,406 
Research and development
1,150 2,722 5,103 10,110 
Amortization of intangible assets
1,550 1,250 5,758 4,578 
Credit loss (reversal) expense, net
(10)170 (973)1,759 
Asset impairments— 144 — 144 
Restructuring and other charges
3,749 1,593 3,749 2,946 
Income from operations
9,512 2,739 43,862 50,398 
Realized and unrealized investment gains
33 29 127 465 
Retirement benefits non-service expense
(64)(179)(387)(411)
Interest income
460 648 2,180 2,486 
Interest expense
(1,617)(1,776)(8,084)(6,821)
Income before taxes
8,324 1,461 37,698 46,117 
Income tax (expense) benefit
(1,458)1,850 (4,996)(13,051)
Net income
6,866 3,311 32,702 33,066 
Net income attributable to non-controlling interests
(1,560)(771)(6,643)(7,731)
Net income attributable to common shareholders
$5,306 $2,540 $26,059 $25,335 
Net income per share attributable to common shareholders:
Basic
$0.10 $0.05 $0.49 $0.47 
Diluted
$0.10 $0.05 $0.48 $0.46 
Weighted average shares outstanding (in thousands):
Basic52,770 53,973 52,650 54,310 
Diluted54,706 54,983 53,864 55,146 
Additional Disclosure:
Depreciation and amortization$16,601 $13,545 $65,503 $60,022 
Amortization of deferred financing costs$492 $493 $1,969 $2,235 
8

IMAX CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands of U.S. dollars, except share amounts)


December 31,December 31,
20242023
Assets
Cash and cash equivalents$100,592 $76,200 
Accounts receivable, net of allowance for credit losses107,669 136,259 
Financing receivables, net of allowance for credit losses119,885 127,154 
Variable consideration receivables, net of allowance for credit losses82,593 64,338 
Inventories32,840 31,584 
Prepaid expenses13,121 12,345 
Film assets, net of accumulated amortization8,686 6,786 
Property, plant and equipment, net of accumulated depreciation240,133 243,299 
Other assets22,441 20,879 
Deferred income tax assets, net of valuation allowance14,499 7,988 
Goodwill52,815 52,815 
Other intangible assets, net of accumulated amortization35,124 35,022 
Total assets$830,398 $814,669 
Liabilities
Accounts payable$19,803 $26,386 
Accrued and other liabilities100,916 111,013 
Deferred revenue52,686 67,105 
Revolving credit facility borrowings, net of unamortized debt issuance costs36,356 22,924 
Convertible notes and other borrowings, net of unamortized discounts and debt issuance costs229,901 229,131 
Deferred income tax liabilities12,521 12,521 
Total liabilities452,183 469,080 
Commitments, contingencies and guarantees
Non-controlling interests680 658 
Shareholders’ equity
Capital stock common shares — no par value. Authorized — unlimited number.
52,946,200 issued and outstanding (December 31, 2023 — 53,260,276 issued and outstanding)
401,420 389,048 
Other equity185,268 185,087 
Statutory surplus reserve4,051 3,932 
Accumulated deficit
(274,675)(292,845)
Accumulated other comprehensive loss
(16,598)(12,081)
Total shareholders’ equity attributable to common shareholders
299,466 273,141 
Non-controlling interests78,069 71,790 
Total shareholders’ equity
377,535 344,931 
Total liabilities and shareholders’ equity
$830,398 $814,669 





9

IMAX CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands of U.S. dollars)


Years Ended
December 31,
20242023
Operating Activities
Net income
$32,702 $33,066 
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization
65,503 60,022 
Amortization of deferred financing costs
1,969 2,235 
Credit loss (reversal) expense, net
(973)1,759 
Write-downs, including asset impairments
3,973 1,884 
Deferred income tax benefit
(5,631)(1,447)
Share-based and other non-cash compensation
23,209 24,230 
Unrealized foreign currency exchange gain
(2,770)(212)
Realized and unrealized investment gain
(127)(465)
Changes in assets and liabilities:
Accounts receivable
29,105 (1,907)
Inventories(1,501)(285)
Film assets
(25,122)(20,394)
Deferred revenue
(14,308)(3,882)
Changes in other operating assets and liabilities
(35,192)(35,989)
Net cash provided by operating activities
70,837 58,615 
Investing Activities
Purchase of property, plant and equipment
(8,428)(6,491)
Investment in equipment for joint revenue sharing arrangements
(24,341)(18,000)
Acquisition of other intangible assets
(8,447)(8,344)
Proceeds from sale of equity securities— 1,045 
Net cash used in investing activities
(41,216)(31,790)
Financing Activities
Proceeds from revolving credit facility borrowings55,000 39,717 
Repayments of revolving credit facility borrowings(42,000)(53,248)
Proceeds from other borrowings
— 322 
Repayments of other borrowings
(874)(53)
Credit facility amendment fees paid
— (46)
Repurchase of common shares, IMAX Corporation
(17,855)(26,823)
Repurchase of common shares, IMAX China
(116)(15)
Taxes withheld and paid on employee stock awards vested(4,978)(6,466)
Common shares issued - stock options exercised
5,291 — 
Principal payment under finance lease obligations
(509)(480)
Dividends paid to non-controlling interests
— (1,438)
Net cash used in financing activities
(6,041)(48,530)
Effects of exchange rate changes on cash
812 504 
Increase (decrease) in cash and cash equivalents during year
24,392 (21,201)
Cash and cash equivalents, beginning of year
76,200 97,401 
Cash and cash equivalents, end of year
$100,592 $76,200 

10

Primary Reporting Groups

The Company’s Chief Executive Officer (“CEO”) is its Chief Operating Decision Maker (“CODM”), as such term is defined under U.S. GAAP. The CODM assesses segment performance based on segment revenues and segment gross margins. Selling, general and administrative expenses, research and development costs, the amortization of intangible assets, provision for (reversal of) current expected credit losses, certain write-downs, interest income, interest expense, and income tax (expense) benefit are not allocated to the Company’s segments.

The Company has two reportable segments:

(i)Content Solutions, consists of services provided to studios and other content creators, which principally includes the digital remastering of films and other content into IMAX formats for distribution to the IMAX network. To a lesser extent, the Content Solutions segment also earns revenue from the distribution of large-format documentary films and exclusive experiences ranging from live performances to interactive events with leading artists and creators, as well as film post-production services.

(ii)Technology Products and Services, which includes results from the sale or lease of IMAX Systems, as well as from the maintenance of IMAX Systems to exhibition customers. To a lesser extent, the Technology Product and Services segment also earns revenue from certain ancillary theater business activities, including after-market sales of IMAX System parts and 3D glasses.


11

Segment Revenue and Gross Margin

Three Months Ended December 31,
Years Ended
(Unaudited)December 31,
(In thousands of U.S. dollars)2024202320242023
Revenue
Content Solutions$25,513 $19,093 $124,731 $126,698 
Technology Products and Services64,043 62,490 216,062 234,303 
Sub-total for reportable segments89,556 81,583 340,793 361,001 
All Other(1)
3,116 4,435 11,415 13,838 
Total$92,672 $86,018 $352,208 $374,839 
Gross Margin
Content Solutions$11,837 $9,709 $66,523 $74,106 
Technology Products and Services34,222 29,880 115,553 129,946 
Sub-total for reportable segments46,059 39,589 182,076 204,052 
All Other(1)
2,306 4,099 8,124 10,289 
Total$48,365 $43,688 $190,200 $214,341 
image_1.jpg
(1)All Other includes the results from the Company’s streaming and consumer technology business, as well as other ancillary activities.











12

IMAX CORPORATION
NON-GAAP FINANCIAL MEASURES

In this release, the Company presents adjusted net income attributable to common shareholders and adjusted net income attributable to common shareholders per basic and diluted share, EBITDA, Adjusted EBITDA per Credit Facility, Adjusted EBITDA margin as supplemental measures of the Company’s performance, which are not recognized under U.S. GAAP. Adjusted net income or loss attributable to common shareholders and adjusted net income or loss attributable to common shareholders per basic and diluted share exclude, where applicable: (i) share-based compensation; (ii) realized and unrealized investment gains or losses; (iii) transaction-related expenses; and (iv) restructuring and other charges, as well as the related tax impact of these adjustments.

The Company believes that these non-GAAP financial measures are important supplemental measures that allow management and users of the Company’s financial statements to view operating trends and analyze controllable operating performance on a comparable basis between periods without the after-tax impact of share-based compensation and certain unusual items included in net income attributable to common shareholders. Although share-based compensation is an important aspect of the Company’s employee and executive compensation packages, it is a non-cash expense and is excluded from certain internal business performance measures.

A reconciliation from net income (loss) attributable to common shareholders and the associated per share amounts to adjusted net income attributable to common shareholders and adjusted net income attributable to common shareholders per diluted share is presented in the table below. Net income (loss) attributable to common shareholders and the associated per share amounts are the most directly comparable GAAP measures because they reflect the earnings relevant to the Company’s shareholders, rather than the earnings attributable to non-controlling interests.

In addition to the non-GAAP financial measures discussed above, management also uses “EBITDA,” as such term is defined in the Credit Agreement, and which is referred to herein as “Adjusted EBITDA per Credit Facility.” As allowed by the Credit Agreement, Adjusted EBITDA per Credit Facility includes adjustments in addition to the exclusion of interest, taxes, depreciation and amortization. Accordingly, this non-GAAP financial measure is presented to allow a more comprehensive analysis of the Company’s operating performance and to provide additional information with respect to the Company’s compliance with its Credit Agreement requirements, when applicable. In addition, the Company believes that Adjusted EBITDA per Credit Facility presents relevant and useful information widely used by analysts, investors and other interested parties in the Company’s industry to evaluate, assess and benchmark the Company’s results.

EBITDA is defined as net income or loss excluding: (i) income tax expense or benefit; (ii) interest expense, net of interest income; (iii) depreciation and amortization, including film asset amortization; and (iv) amortization of deferred financing costs. Adjusted EBITDA per Credit Facility is defined as EBITDA excluding: (i) share-based and other non-cash compensation; (ii) realized and unrealized investment gains or losses; (iii) transaction-related expenses; (iv) restructuring and other charges costs; and (v) write- downs, net of recoveries, including asset impairments and credit loss expense or reversal.

A reconciliation of net income (loss) attributable to common shareholders, which is the most directly comparable GAAP measure, to EBITDA and Adjusted EBITDA per Credit Facility is presented in the table below. Net income (loss) attributable to common shareholders is the most directly comparable GAAP measure because it reflects the earnings relevant to the Company’s shareholders, rather than the earnings attributable to non-controlling interests.

In this release, the Company also presents free cash flow, which is not recognized under U.S. GAAP, as a supplemental measure of the Company’s liquidity. The Company definition of free cash flow deducts only normal recurring capital expenditures, including the Company’s investment in joint revenue sharing arrangements, the purchase of property, plant and equipment and the acquisition of other intangible assets (from the Consolidated Statements of Cash Flows), from net cash provided by or used in operating activities. Management believes that free cash flow is a supplemental measure of the cash flow available to reduce debt, add to cash balances, and fund other financing activities. Free cash flow does not represent residual cash flow available for discretionary expenditures. A reconciliation of cash provided by operating activities to free cash flow is presented below.

These non-GAAP measures may not be comparable to similarly titled amounts reported by other companies. Additionally, the non-GAAP financial measures used by the Company should not be considered as a substitute for, or superior to, the comparable GAAP amounts.

13

Adjusted EBITDA per Credit Facility

Three Months Ended (Unaudited)
(In thousands of U.S. Dollars)
December 31, 2024
December 31, 2023
Revenues$92,672 $86,018 
Reported net income
$6,866 $3,311 
Add (subtract):
Income tax expense
1,458 (1,850)
Interest expense, net of interest income
665 636 
Depreciation and amortization, including film asset amortization
16,601 13,545 
Amortization of deferred financing costs(1)
492 493 
EBITDA$26,082 $16,135 
Share-based and other non-cash compensation
5,948 6,400 
Unrealized investment gains
(33)(29)
Transaction-related expenses
— 327 
Restructuring and other charges(2)
3,749 1,593 
Write-downs, including asset impairments and credit loss reversal
1,452 812 
Total Adjusted EBITDA
$37,198 $25,238 
Total Adjusted EBITDA margin
40.1 %29.3 %
Less: Non-controlling interest(2,990)(2,221)
Adjusted EBITDA per Credit Facility - attributable to common shareholders$34,208 $23,017 
image_1.jpg
(1)The amortization of deferred financing costs is recorded within Interest Expense in the Condensed Consolidated Statement of Operations.
(2) Reflects restructuring related costs in connection with capturing efficiencies, centralizing certain operational roles and costs incurred in connection with the
         Company’s internal asset sale.

Twelve Months Ended

(In thousands of U.S. Dollars)
December 31, 2024(1)
December 31, 2023(1)
Revenues$352,208 $374,839 
Reported net income
$32,702 $33,066 
Add (subtract):
Income tax expense
4,996 13,051 
Interest expense, net of interest income
3,936 2,101 
Depreciation and amortization, including film asset amortization
65,503 60,022 
Amortization of deferred financing costs(2)
1,969 2,235 
EBITDA$109,106 $110,475 
Share-based and other non-cash compensation
23,209 24,230 
Unrealized investment gains
(127)(465)
Transaction-related expenses
— 3,569 
Restructuring and other charges(3)
3,749 2,946 
Write-downs, including asset impairments and credit loss reversal
2,999 3,273 
Total Adjusted EBITDA
$138,936 $144,028 
Total Adjusted EBITDA margin
39.4 %38.4 %
Less: Non-controlling interest$(14,191)$(15,869)
Adjusted EBITDA per Credit Facility - attributable to common shareholders$124,745 $128,159 
image_1.jpg
(1)The Senior Secured Net Leverage Ratio is calculated using Adjusted EBITDA per Credit Facility determined on a trailing twelve-month basis.
(2)The amortization of deferred financing costs is recorded within Interest Expense in the Condensed Consolidated Statement of Operations.
(3)Reflects restructuring related costs in connection with capturing efficiencies, centralizing certain operational roles and costs incurred in connection with the Company’s internal asset sale.



14

Adjusted Net Income Attributable to Common Shareholders and Adjusted Net Income Per Share

Three Months Ended December 31, 2024
(Unaudited)
Three Months Ended
December 31, 2023
(In thousands of U.S. Dollars, except per share amounts)
Net Income
Per Diluted
Share
Net Income
Per Diluted
Share
Net income attributable to common shareholders
$5,306 $0.10 $2,540 $0.05 
Adjustments(1):
Share-based compensation
5,768 0.11 6,074 0.11 
Unrealized investment gains
(33)— (32)— 
Transaction-related expenses
— — 119 — 
Restructuring and other charges(2)
3,749 0.07 1,335 0.02 
Tax impact on items listed above
(322)(0.01)(747)(0.01)
Adjusted net income(1)
$14,468 $0.27 $9,289 $0.17 
Weighted average shares outstanding (in thousands):
Basic
52,770 53,973 
Diluted
54,706 54,983 
image_1.jpg
(1)Reflects amounts attributable to common shareholders.
Years Ended December 31,
20242023
(In thousands of U.S. Dollars, except per share amounts)
Net Income
Per Diluted
Share
Net Income
Per Diluted
Share
Net income attributable to common shareholders
$26,059 $0.48 $25,335 $0.46 
Adjustments(1):
Share-based compensation
22,454 0.42 23,184 0.42 
Unrealized investment gains
(127)— (558)(0.01)
Transaction-related expenses
— — 3,361 0.06 
Restructuring and other charges(2)
3,749 0.07 2,688 0.05 
Tax impact on items listed above
(1,125)(0.02)(1,931)(0.04)
Adjusted net income(1)
$51,010 $0.95 $52,079 $0.94 
Weighted average shares outstanding (in thousands):
Basic
52,650 54,310 
Diluted
53,864 55,146 
image_1.jpg
(1)Reflects amounts attributable to common shareholders.
(2) Reflects restructuring related costs in connection with capturing efficiencies, centralizing certain operational roles and costs incurred in connection with the
         Company’s internal asset sale.

Free Cash Flow
Years Ended
December 31,
(In thousands of U.S. Dollars)20242023
Net cash provided by operating activities
$70,837 $58,615 
Purchase of property, plant and equipment(8,428)(6,491)
Acquisition of other intangible assets(8,447)(8,344)
Free cash flow before growth CAPEX(1)
53,962 43,780 
Investment in equipment for joint revenue sharing arrangements(24,341)(18,000)
Free cash flow$29,621 $25,780 
image_1.jpg
(1)Growth CAPEX is defined as capital expenditures associated with investments in equipment for joint revenue sharing arrangements.

15
v3.25.0.1
Cover
Feb. 19, 2025
Document Information [Line Items]  
Document Type 8-K
Document Period End Date Feb. 19, 2025
Registrant Name IMAX Corporation
Entity Incorporation, State or Country Code Z4
Entity File Number 001-35066
Entity Tax Identification Number 98-0140269
Entity Address, Address Line One 2525 Speakman Drive
Entity Address, City or Town Mississauga
Entity Address, State or Province ON
Entity Address, Country CA
Entity Address, Postal Zip Code L5K 1B1
City Area Code 905
Local Phone Number 403-6457
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Shares, no par value
Trading Symbol IMAX
Security Exchange Name NYSE
Entity Emerging Growth Company false
Central Index Key 0000921582
Amendment Flag false
Other Address  
Document Information [Line Items]  
Entity Address, Address Line One 902 Broadway
Entity Address, Address Line Two Floor 20
Entity Address, City or Town New York
Entity Address, State or Province NY
Entity Address, Country US
Entity Address, Postal Zip Code 10010
City Area Code 212
Local Phone Number 821-0142
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