Film-Tech Forum ARCHIVE: IMAX Profit report/statement

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Posted by Joe Tommassello (Member # 4632) on 05-12-2008, 12:40 PM:

Read this on my financial site this morning. I highlighted my favorite part.

TORONTO (Dow Jones)--Imax Corp.'s (IMAX) first-quarter loss more than doubled, but the company remains focused on the roll-out of its new digital projector later this year.
The large-format cinema pioneer lost $10.3 million, or 25 cents a share in its latest quarter, compared with a loss of $4.7 million or 12 cents a year earlier. Revenue fell to $23.5 million from $26.8 million, or 12%. However, Imax said results are expected to improve in the fourth quarter, paving the way for a profitable 2009.
Imax reiterated that its 2008 financial results reflect its transition to a digital format from its antiquated film system , and said it's encouraged by various accomplishments on that front to date.
In an interview, Imax co-chief executive Richard Gelfond said the company is on track to deliver its first three digital systems to exhibitor AMC Entertainment, with which it signed a record 100-theater joint-venture deal in June. Two of the theaters will be located in Washington, D.C., and the other in Baltimore. Three more will open in August in the Philadelphia area.
In the meantime, Imax continues to test the product at its lab outside Toronto, near its corporate headquarters in Mississauga. Within the next couple of weeks, the company will begin running the projector on a "24/7 basis" to make sure it can handle "real operating conditions," Gelfond said, adding the company hopes to open 20 Imax digital theaters in the third quarter and up to 30 in the fourth quarter.
The company also added another title to its 2008 film slate - "Madagascar 2" from DreamWorks Animation SKG Inc. (DWA) - which will run for just two weeks in Imax. Imax is squeezing the film in before the next "Harry Potter" sequel in November, something its digital transformation now allows it to do.
With about 35 digital Imax screens expected to be open in time for the release of "Madagascar 2," the average cost of film prints per screen for the brief release will be low enough to make the presentation economical for both Imax and DreamWorks. "As our network gets more digital, the cost of releasing in Imax will get closer and closer to nominal, and therefore there should be more and more studio releases," Gelfond explained.
Box office results from the first few films this year have been disappointing, but the company still expects a strong year because of titles like "Kung Fu Panda," "The Dark Knight," and "Harry Potter."
While research and development costs are expected to be lower in 2009, Gelfond doesn't see a normalization until 2010. That's because Imax continues work on a couple of key projects: a digital system capable of replacing its larger movie screens, and technology that allows it to show live-action content, like the Super Bowl, in Imax quality.
Though most joint-venture theater deals, in which Imax provides the system in return for a share of the box office revenues, have been signed in the U.S., the company is trying to be more aggressive overseas. Once Imax completes the roll-out of systems contracted to AMC and Regal Entertainment Group (RGC), it will have theaters in 250 of a possible 400 film "zones" it's identified in North America (areas that generate about $20 million in box office annually). In contrast, Imax only has theaters in 200 of 600-700 international zones. Because movie ticket prices in other countries can be double those in the U.S., and the cost of system installation is about the same, the returns to Imax are "very attractive," Gelfond said.
On Nasdaq Monday, Imax shares are off 14 cents, or 1.9%, to $7.08 on about 190,000 shares.

Posted by Mark J. Marshall (Member # 1409) on 05-12-2008, 02:24 PM:

quote: Joe Tommassello
technology that allows it to show live-action content, like the Super Bowl, in Imax quality.

I didn't realize the Super Bowl was shot in IMAX quality.

Posted by Brian Michael Weidemann (Member # 2243) on 05-12-2008, 03:05 PM:

There's a difference between the phrase "in IMAX quality" and the phrase "featuring the words 'The IMAX Experience' somewhere in the advertising" ... but don't tell that to IMAX Corporation.

Posted by Ben Wales (Member # 92) on 05-12-2008, 04:06 PM:

quote: Joe Tommassello
Because movie ticket prices in other countries can be double those in the U.S., and the cost of system installation is about the same, the returns to Imax are "very attractive," Gelfond said.

That's properly why we have seen so many Imax Theatres both here in the UK and in Europe closing due to high operating costs and other factors that do not make them no longer viable.

Posted by Mark Lensenmayer (Member # 134) on 05-12-2008, 06:04 PM:

Seems like most of the closings are at original size Imax locations, and all of the new development is going in those Imax Juniors at multiplexes.

Has anyone opened a full-screen Imax lately?

Posted by Mark Gulbrandsen (Member # 72) on 05-12-2008, 06:06 PM:

Thats all fine and dandy. Imax still won't have the LF market digitally to themselves either and when folks get wind that they can own a digital projection system without all the associated bullshit expenses from Imax and with more or less identical capabilities as Imax's it'll cause Imax to crash in a hurry. With the readily available high brightness digital projectors out there installing a 2-projector 3-D and and/or stacked 2-D system is pretty darn easy and the image quality if the source material is scanned at 4K is actually pretty darn impressive. So much for Imax!

Mark

Posted by Darryl Spicer (Member # 711) on 05-13-2008, 11:23 AM:

quote: Joe Tommassello
live-action content, like the Super Bowl, in Imax quality.

I could care less....

Posted by Chris Slycord (Member # 4239) on 05-13-2008, 11:34 AM:

OT:
It's a pet peeve of mine when people say "I could care less" when in reality they mean "I COULDN'T care less." If you could care less, you care.

And back on topic:
Just like Mark is alluding to, IMAX is simply taking themselves out of the market by watering down their name. They can call the super bowl or other crap "IMAX quality" simply because IMAX has as much quality as IMAX wants it to have. Once people realize there's not as much quality in IMAX quality, IMAX will be no more.

Posted by Darryl Spicer (Member # 711) on 05-13-2008, 11:38 AM:

What ever

Posted by Andres Briano (Member # 4621) on 05-13-2008, 06:27 PM:

quote: Mark Lensenmayer
Has anyone opened a full-screen Imax lately?

Define "lately".

Showcase Cinemas (National Amusements) has opened one (3D GT (2x15KW) with DTAC) in mid 2006 in Buenos Aires, Argentina. Does it qualify?

Andrés