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HIGHLIGHTS
Achieved record adjusted profit of $46 million, a 22% increase compared to 2016.
Announced the Board of Directors' recommendation to pay a final dividend for year 2017 of roughly $14 million, or $0.04 per share.
Gross and adjusted profit margins up 270 basis points and 460 basis points, respectively, compared to prior year.
Generated operating cash flow of $35 million and free cash flow of $11 million.
Installed a record 120 new theatre systems in 2017 and signed agreements for an additional 95 systems.
Reported Chinese New Year box office of ¥170 million over seven-day holiday period, a 74% increase compared to the prior year's holiday.
IMAX China Holding, Inc. ("IMAX China") (HKG: 1970) today reported full-year 2017 Greater China revenue of $126.5 million and gross profit of $77.4 million, or 61.2% of revenues. Adjusted profit for the year came in at a record $45.9 million, up 22% from the prior year, driven by the installation of eight additional sales-type theatres versus 2016 and a 19% reduction in SG&A, excluding stock-based compensation, primarily as a result of the Company's cost-reduction initiatives. For adjustments to profit for the year and a full detail of financial results, please refer to the corporate filing posted with the Hong Kong Stock Exchange, or to the earnings results posted on the Investor Relations section of the IMAX China web site (http://www.imax.cn/investor).
"Last year, we implemented initiatives aimed at refining our programming strategy to focus on capturing more local language box office, reducing costs and facilitating more operating leverage throughout our business. Record installations in 2017, combined with early positive results from our revenue and cost-savings initiatives, resulted in adjusted profit growth of 22%, to an all-time high of $46 million," stated Richard L. Gelfond, Chairman of IMAX China. "As a result of our continued free cash flow generation, strong balance sheet and confidence in the Company's long-term growth prospects, I am pleased to announce that our Board of Directors recommended the payment of a final dividend in the amount of $0.04 per share, equivalent to HK$0.31 per share, or roughly $14 million for the 2017 year. We think this decision is a key component to creating long-term value for shareholders. Overall, we believe our asset-light approach to the cinema business, continued signings and installation momentum, and refined programming strategy strategically position IMAX China for the years ahead."
IMAX China Dividend
IMAX China today announced that its Board of Directors recommended the payment of a final cash dividend of $14 million or $0.04 per share. The dividend will need to be voted on by the shareholders at the Company's annual meeting. The Company intends to consider increasing the dividend over time if and as the Company earnings grow.
Network Update
There were 544 systems in the IMAX theatre network in Greater China as of Dec. 31, 2017, of which 527 were in commercial multiplexes. Currently, 340 of these theatres operate under revenue-sharing arrangements and 187 operate under sales and sales-type lease arrangements. There are also 309 theatres in backlog as of Dec. 31, 2017, of which 236 are for revenue-sharing arrangements. The Company also installed 120 new theatre systems in 2017, which is up from the 117 new installations recognized during 2016.
Box Office Update
Gross box office from IMAX DMR® titles in Greater China was $290.8 million in 2017, compared with $295.7 million in the prior-year period.
Greater China Key Metrics
Twelve months ended December 31, 2017 2016
Greater China Signings
Sales 55 37
Revenue Share 40 201
Total 201
Total
95
238
Greater China Theatre Installations
Sales
41
33
Revenue Share
79
84
Laser Upgrade
0
2
Total
120
119
Greater China Network
Commercial Multiplex
527
407
Institutional
17
17
Total
544
424
Greater China Backlog
309
334
IMAX Greater China Box Office
$291 million
$296 million
IMAX Greater China PSA
$665,900
$932,400
Film Count
PRC
44
37
HK/ Taiwan Only
7
9
Total
51
46
Confirmed Film Slate for 2018
To date, the Company's parent, IMAX Corporation has announced the following 31 titles for release in 2018. While not all of these titles are guaranteed to be released in China, IMAX China has access to them in the event they secure official Chinese release dates. The Company intends to announce and exhibit additional titles upon confirmation of film release dates in China. All release dates below relate to their US release date unless otherwise noted.
The Commuter: The IMAX Experience (Lionsgate Entertainment Inc., January 201
;
12 Strong: The IMAX Experience (Warner Bros. Pictures, January 201;
Padmaavat: The IMAX Experience (Viacom 18 Motion Pictures and Paramount Pictures, January 2018, India only);
Maze Runner: The Death Cure: The IMAX Experience (20th Century Fox, January 201;
Fifty Shades Freed: The IMAX Experience (Universal Pictures, February 201;
Monster Hunt 2: The IMAX Experience (Edko Films, February 2018, China only);
Detective Chinatown 2: The IMAX Experience (WanDa Pictures, February 2018, China only);
Operation Red Sea: The IMAX Experience (Bona Film Group, February 2018, China only);
Marvel's Black Panther: The IMAX Experience (Walt Disney Studios, China March 201;
Red Sparrow: The IMAX Experience (20th Century Fox, March 201;
A Wrinkle in Time: The IMAX Experience (Walt Disney Studios, China March 201;
Tomb Raider: The IMAX Experience (Warner Bros. Pictures, China March 201;
Pacific Rim Uprising: The IMAX Experience (Warner Bros. Pictures, China March 201;
Ready Player One: The IMAX Experience (Warner Bros. Pictures, March 201;
Rampage: The IMAX Experience (Warner Bros. Pictures, April 201;
Avengers: Infinity War: The IMAX Experience (Walt Disney Studios, May 2018, most International markets – April 201;
Deadpool 2: The IMAX Experience (20th Century Fox, May 2018, select markets only);
Solo: A Star Wars Story: The IMAX Experience (Walt Disney Studios, May 201;
The Incredibles 2: The IMAX Experience (Walt Disney Studios, June 201;
Jurassic World: Fallen Kingdom: The IMAX Experience (Universal Pictures, June 201;
Ant-Man and the Wasp: The IMAX Experience (Walt Disney Studios, June 2018, US markets - July 201;
Mission Impossible: Fallout: The IMAX Experience (Paramount Pictures, July 201;
Predator: The IMAX Experience (20th Century Fox, August 201;
The Darkest Minds: The IMAX Experience (20th Century Fox, September 201;
Robin Hood: The IMAX Experience (Lionsgate Entertainment Inc., September 201;
Venom: The IMAX Experience (Sony Pictures Entertainment, October 201;
X-Men: Dark Phoenix: The IMAX Experience (20th Century Fox, November 201;
Fantastic Beasts: The Crimes of Grindelwald: The IMAX Experience (Warner Bros. Pictures, November 201;
Ralph Breaks the Internet: Wreck-It-Ralph 2: The IMAX Experience (Walt Disney Studios, December 2018, select markets); and
Alita: Battle Angel: An IMAX Experience (20th Century Fox, December 201;
Aquaman: The IMAX Experience (Warner Bros. Pictures, December 201.
Achieved record adjusted profit of $46 million, a 22% increase compared to 2016.
Announced the Board of Directors' recommendation to pay a final dividend for year 2017 of roughly $14 million, or $0.04 per share.
Gross and adjusted profit margins up 270 basis points and 460 basis points, respectively, compared to prior year.
Generated operating cash flow of $35 million and free cash flow of $11 million.
Installed a record 120 new theatre systems in 2017 and signed agreements for an additional 95 systems.
Reported Chinese New Year box office of ¥170 million over seven-day holiday period, a 74% increase compared to the prior year's holiday.
IMAX China Holding, Inc. ("IMAX China") (HKG: 1970) today reported full-year 2017 Greater China revenue of $126.5 million and gross profit of $77.4 million, or 61.2% of revenues. Adjusted profit for the year came in at a record $45.9 million, up 22% from the prior year, driven by the installation of eight additional sales-type theatres versus 2016 and a 19% reduction in SG&A, excluding stock-based compensation, primarily as a result of the Company's cost-reduction initiatives. For adjustments to profit for the year and a full detail of financial results, please refer to the corporate filing posted with the Hong Kong Stock Exchange, or to the earnings results posted on the Investor Relations section of the IMAX China web site (http://www.imax.cn/investor).
"Last year, we implemented initiatives aimed at refining our programming strategy to focus on capturing more local language box office, reducing costs and facilitating more operating leverage throughout our business. Record installations in 2017, combined with early positive results from our revenue and cost-savings initiatives, resulted in adjusted profit growth of 22%, to an all-time high of $46 million," stated Richard L. Gelfond, Chairman of IMAX China. "As a result of our continued free cash flow generation, strong balance sheet and confidence in the Company's long-term growth prospects, I am pleased to announce that our Board of Directors recommended the payment of a final dividend in the amount of $0.04 per share, equivalent to HK$0.31 per share, or roughly $14 million for the 2017 year. We think this decision is a key component to creating long-term value for shareholders. Overall, we believe our asset-light approach to the cinema business, continued signings and installation momentum, and refined programming strategy strategically position IMAX China for the years ahead."
IMAX China Dividend
IMAX China today announced that its Board of Directors recommended the payment of a final cash dividend of $14 million or $0.04 per share. The dividend will need to be voted on by the shareholders at the Company's annual meeting. The Company intends to consider increasing the dividend over time if and as the Company earnings grow.
Network Update
There were 544 systems in the IMAX theatre network in Greater China as of Dec. 31, 2017, of which 527 were in commercial multiplexes. Currently, 340 of these theatres operate under revenue-sharing arrangements and 187 operate under sales and sales-type lease arrangements. There are also 309 theatres in backlog as of Dec. 31, 2017, of which 236 are for revenue-sharing arrangements. The Company also installed 120 new theatre systems in 2017, which is up from the 117 new installations recognized during 2016.
Box Office Update
Gross box office from IMAX DMR® titles in Greater China was $290.8 million in 2017, compared with $295.7 million in the prior-year period.
Greater China Key Metrics
Twelve months ended December 31, 2017 2016
Greater China Signings
Sales 55 37
Revenue Share 40 201
Total 201
Total
95
238
Greater China Theatre Installations
Sales
41
33
Revenue Share
79
84
Laser Upgrade
0
2
Total
120
119
Greater China Network
Commercial Multiplex
527
407
Institutional
17
17
Total
544
424
Greater China Backlog
309
334
IMAX Greater China Box Office
$291 million
$296 million
IMAX Greater China PSA
$665,900
$932,400
Film Count
PRC
44
37
HK/ Taiwan Only
7
9
Total
51
46
Confirmed Film Slate for 2018
To date, the Company's parent, IMAX Corporation has announced the following 31 titles for release in 2018. While not all of these titles are guaranteed to be released in China, IMAX China has access to them in the event they secure official Chinese release dates. The Company intends to announce and exhibit additional titles upon confirmation of film release dates in China. All release dates below relate to their US release date unless otherwise noted.
The Commuter: The IMAX Experience (Lionsgate Entertainment Inc., January 201
;12 Strong: The IMAX Experience (Warner Bros. Pictures, January 201
;Padmaavat: The IMAX Experience (Viacom 18 Motion Pictures and Paramount Pictures, January 2018, India only);
Maze Runner: The Death Cure: The IMAX Experience (20th Century Fox, January 201
;Fifty Shades Freed: The IMAX Experience (Universal Pictures, February 201
;Monster Hunt 2: The IMAX Experience (Edko Films, February 2018, China only);
Detective Chinatown 2: The IMAX Experience (WanDa Pictures, February 2018, China only);
Operation Red Sea: The IMAX Experience (Bona Film Group, February 2018, China only);
Marvel's Black Panther: The IMAX Experience (Walt Disney Studios, China March 201
;Red Sparrow: The IMAX Experience (20th Century Fox, March 201
;A Wrinkle in Time: The IMAX Experience (Walt Disney Studios, China March 201
;Tomb Raider: The IMAX Experience (Warner Bros. Pictures, China March 201
;Pacific Rim Uprising: The IMAX Experience (Warner Bros. Pictures, China March 201
;Ready Player One: The IMAX Experience (Warner Bros. Pictures, March 201
;Rampage: The IMAX Experience (Warner Bros. Pictures, April 201
;Avengers: Infinity War: The IMAX Experience (Walt Disney Studios, May 2018, most International markets – April 201
;Deadpool 2: The IMAX Experience (20th Century Fox, May 2018, select markets only);
Solo: A Star Wars Story: The IMAX Experience (Walt Disney Studios, May 201
;The Incredibles 2: The IMAX Experience (Walt Disney Studios, June 201
;Jurassic World: Fallen Kingdom: The IMAX Experience (Universal Pictures, June 201
;Ant-Man and the Wasp: The IMAX Experience (Walt Disney Studios, June 2018, US markets - July 201
;Mission Impossible: Fallout: The IMAX Experience (Paramount Pictures, July 201
;Predator: The IMAX Experience (20th Century Fox, August 201
;The Darkest Minds: The IMAX Experience (20th Century Fox, September 201
;Robin Hood: The IMAX Experience (Lionsgate Entertainment Inc., September 201
;Venom: The IMAX Experience (Sony Pictures Entertainment, October 201
;X-Men: Dark Phoenix: The IMAX Experience (20th Century Fox, November 201
;Fantastic Beasts: The Crimes of Grindelwald: The IMAX Experience (Warner Bros. Pictures, November 201
;Ralph Breaks the Internet: Wreck-It-Ralph 2: The IMAX Experience (Walt Disney Studios, December 2018, select markets); and
Alita: Battle Angel: An IMAX Experience (20th Century Fox, December 201
;Aquaman: The IMAX Experience (Warner Bros. Pictures, December 201
.