EX-99.1 2 imax-q32024epr.htm EX-99.1 Document

附錄99.1
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IMAX公司公佈
2024年第三季度盈利成果

•全球娛樂平台實現凈利潤為$1400萬（年增16%），每股收益為26分鐘(1) （年增18%），營運現金流為$3500萬（年增23%）

•強勁的盈利能力，以總調整息稅折舊及攤銷前利潤為亮點(2) 達到3900萬美元，42%的利潤率；以及調整每股收益(1)(2) 為35美分，與第三季度記錄相匹配

•隨著IMAX預計在，全年安裝指引的高端交付，網絡增長加速，在第三季度全球安裝了49套系統（+63％ YoY）

•目前為止銷售活動強勁，系統簽署數達到119 — 超過2023全年的129份簽署。

•堅強而多樣化的年終陣容，包括《角鬥士II》，《奇妙仙子》，《海洋奇緣2》，以及《獅子王缪法薩》，預計將推動動力，進入2025年。

•IMAX預計在2025年全球賣座票房將突破12億元，展望標題確立。


紐約，紐約 — 2024年10月30日 IMAX公司（紐約交易所代號: IMAX）今天公佈了2024年第三季度的穩健財務業績，展示了其獨特的全球娛樂平台和豐富的內容組合的價值。

「IMAX持續為新一波持續增長的時代鋪路，2025年和2026年的行程與前所未見的前景一樣令人振奮。」IMAX的CEO Rich Gelfond表示。「憑藉卓越的內容來源管道、系統安裝進度加快以及全球范圍內的積極銷售活動，我們定位良好，將在未來幾年內充分執行並利用即將出現的機遇。」
「展望未來，我們預計2025年將是全球貨幣票房的最佳年份，IMAX全球票房收入將超過12億美元。明年我們的製作計畫將至少有14部全球拍攝、用我們鏡頭拍攝、播映在我們銀幕上的IMAX®電影，這是我們平台高指數的歷史指標，也進一步證明製片人與觀眾更偏好令人敬畏的IMAX體驗®。」
「IMAX平台在全球影院合作夥伴中需求強勁。我們在第三季度全球安裝了近50套新系統和升級系統，這是我們有史以來安裝量最高的第三季度之一，並繼續在澳洲、法國、日本和沙特阿拉伯等主要增長市場簽訂協議。」
「我們第三季的表現進一步展示了我們在任何環境中交付結果的能力，反映了我們靈活的、資產輕的業務模式和多元化的內容組合。隨著強大的作品陸續推出，我們期待充分發揮我們的模式、強大的品牌和科技，以及我們獨特的全球規模，為股東創造價值。」

_______________
(1)每股摊薄后的凈利潤
(2)非依照會計準則的財務指標。請參閱財報最後的討論，以了解本文使用的非依照會計準則的財務指標描述，以及與最相近的依照會計準則金額對應。

1

第三季度財務亮點

結束於三個月的期間
九個月結束了
九月三十日，九月三十日，
以美元百萬計算，除每股數據外20242023同比增長%
變化		20242023同比增長%
變化
總營業收入$91.5 $103.9 (12 %)$259.5 $288.8 (10 %)
毛利率$51.0 $62.7 (19 %)$141.8 $170.7 (17 %)
毛利率 (%)55.8 %60.4 %54.6 %59.1 %
調整後的總企業盈利前利息、稅、折舊和攤銷（總調整EBITDA）(1)(2)
$38.7 $50.5 (23 %)$101.7 $118.8 (14 %)
調整後的總息稅折舊及攤銷前利潤率 (%)(1)(2)
42.3 %48.6 %39.2 %41.1 %
凈利潤(3)
$13.9 $12.0 16 %$20.8 $22.8 (9 %)
每股摊薄后的凈利潤(3)
$0.26 $0.22 18 %$0.39 $0.41 (5 %)
調整後的凈利潤(1)(3)
$18.9 $19.4 (3 %)$36.5 $42.8 (15 %)
調整後每股盈利(1)(3)
$0.35 $0.35 — %$0.68 $0.77 (12 %)
加權平均已發行股份（以百萬計）：
基礎52.7 54.6 (4 %)52.6 54.4 (3 %)
稀釋54.1 55.5 (3 %)53.6 55.3 (3 %)
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(1)非GAAP財務衡量指標。請參閱財報結尾部分有關本財報中使用的非GAAP財務指標的說明，以及與最相應的GAAP金額的調節。
(2)總計調整後EBITDA排除了非控股權益的調整。截至2024年9月30日三個月和九個月結束時，公司的信貸設施歸屬於普通股股東的總調整後EBITDA，排除非控制權益，分別為$3560萬和$9050萬（2023年- $4510萬和$10510萬）。公司的信貸設施監督條款以過去十二個月為基礎計算。
(3)歸屬於普通股股東。

2

第三季分部業績(1)
內容解決方案科技產品和服務
營業收入
毛利率
毛額
利潤率 %
營業收入
毛利率
毛額
毛利率 %
3Q24$30.1 $16.4 55 %$58.0 $32.0 55 %
3Q2344.2 26.4 60 %56.2 33.8 60 %
％變化
(32 %)(38 %)3 %(5 %)
YTD24$99.2 $54.7 55 %$152.0 $81.3 54 %
YTD23107.6 64.4 60 %171.8 100.1 58 %
％變化
(8 %)(15 %)(12 %)(19 %)
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(1)請參考截至2024年9月30日的公司10-Q表，以獲得更多部門信息。

內容解決方案部門

•內容解決方案收入3000萬美元，較去年同期下降32%，原因是內容組合中包含《Oppenheimer》 —— 公司有史以來第五高熱門標題 —— 的關係。儘管收入下滑，但2024年第三季是IMAX歷史上第三高收入的第三季。

•內容解決方案的毛利率為1600萬美元，較去年同期第三季度減少了38%。

科技產品和服務部門

•科技產品和服務營業收入和毛利率分別同比增加3%，達5800萬美元和同比下降5%，達3200萬美元，這是由於系統安裝增長超越前一年，並抵銷了與票房相關的租金收入減少。

•在第三季度，公司安裝了49個系統，較2023年第三季度的30個系統增加了63％。其中，有20個系統處於銷售安排中，相比之下前一年為16個系統。

•商業網絡增長持續，IMAX據點數年增4％至1,714個系統。公司在2024年第三季度以472個IMAX系統的積壓結束。

營運現金流量和流動性

截至2024年9月的今年累計經營活動產生的淨現金為5900萬美元，較去年同期的5500萬美元有所增加。2024年第三季度經營活動產生的淨現金為3500萬美元，較去年同期的2900萬美元有所增加，這個增加反映出營運資本的改善。

截至2024年9月30日，公司可用流動資金為4,1300萬美元。公司流動資金包括現金及現金等價物10,500萬美元，在信貸機構下2,5300萬美元的可用借款額，以及在imax 中國的循環設施下5,600萬美元的可用借款額。截至2024年9月30日，不包括遞延融資成本，總負債為2,8000萬美元。

在2021年，公司發行了總額23000萬美元的0.500%可轉換到2026年到期的優先票據（“可轉換票據”）。關於可轉換票據的定價，公司與初始上限價格為每股37.2750美元的普通股私下協商進行了帶限制性上限買進交易。

Share Count and Capital Return

The weighted average basic and diluted shares outstanding in the third quarter of 2024 were 52.7 million and 54.1 million, respectively, compared to 54.6 million and 55.5 million in the third quarter of 2023, a decrease of 3.5% and 2.6%, respectively.

For the nine months ended September 30, 2024, the Company repurchased 1,166,370 common shares at an average price of $13.99 for a total of $16 million, excluding commissions.

3

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 website 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.

Conference Call

The Company will host a conference call today at 4:30 PM ET to discuss its third quarter 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/BId903a31ed4674fefba1f8b3fdf34072c 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 September 30, 2024, there were 1,788 IMAX systems (1,714 commercial multiplexes, 12 commercial destinations, 62 institutional) operating in 89 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 LIVETM, IMAX Enhanced®, IMAX StreamSmartTM, and SSIMWAVE® are trademarks and trade names of IMAX Corporation 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

Primary Reporting Groups

The Company’s Chief Executive Officer (“CEO”) is its 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.

In the first quarter of 2023, the Company revised its internal segment reporting, including the information provided to the CODM to assess segment performance and allocate resources. Accordingly, the Company has two reportable segments:

(i)Content Solutions, 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 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.

Transactions between segments are valued at exchange value. Inter-segment profits are eliminated upon consolidation, as well as for the disclosures below.

7

IMAX Network and Backlog

Three Months Ended
Nine Months Ended
September 30,September 30,
2024202320242023
System Signings(1):
Sales Arrangements10 13 40 54 
Traditional JRSA6 7 71 40 
Total IMAX System Signings16 20 111 94 

(1) System signings include new signings of 15 in Q3 2024, 14 in Q3 2023, 42 in the first three quarters of 2024 and 76 in the first three quarters of 2023.

Three Months Ended
Nine Months Ended
September 30,September 30,
2024202320242023
System Installations(1):
Sales Arrangements20 16 35 35 
Hybrid JRSA— — 1 2 
Traditional JRSA29 14 52 22 
Total IMAX System Installations49 30 88 59 

(1) System installations include new systems installations of 17 in Q3 2024, 18 in Q3 2023, 45 in the first three quarters of 2024 and 39 in the first three quarters of 2023.
As of September 30,
20242023
System Backlog:
Sales Arrangements170 192 
Hybrid JRSA95 107 
Traditional JRSA207 187 
Total System Backlog472 486 
As of September 30,
20242023
System Network:
Commercial Multiplex Systems
Sales Arrangements820 743 
Hybrid JRSA129 137 
Traditional JRSA765 771 
Total Commercial Multiplex Systems1,714 1,651 
Commercial Destination Systems12 12 
Institutional Systems62 68 
Total System Network1,788 1,731 

8

IMAX CORPORATION
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,
2024202320242023
Revenues
Technology sales
$26,305 $18,273 $54,629 $65,455 
Image enhancement and maintenance services
46,891 60,250 149,428 154,244 
Technology rentals
16,122 23,008 48,766 62,612 
Finance income
2,134 2,365 6,713 6,510 
91,452 103,896 259,536 288,821 
Costs and expenses applicable to revenues
Technology sales
10,605 7,948 24,594 28,951 
Image enhancement and maintenance services
23,087 26,646 73,371 69,470 
Technology rentals
6,741 6,587 19,736 19,747 
40,433 41,181 117,701 118,168 
Gross margin
51,019 62,715 141,835 170,653 
Selling, general and administrative expenses
31,466 36,282 100,287 109,336 
Research and development
(265)2,771 3,953 7,388 
Amortization of intangible assets
1,544 1,107 4,208 3,328 
Credit loss (reversal) expense, net
(1,137)523 (963)1,589 
Restructuring and executive transition costs
— — — 1,353 
Income from operations
19,411 22,032 34,350 47,659 
Realized and unrealized investment gains
32 364 94 436 
Retirement benefits non-service expense
(109)(77)(323)(232)
Interest income
625 738 1,720 1,838 
Interest expense
(2,240)(1,483)(6,467)(5,045)
Income before taxes
17,719 21,574 29,374 44,656 
Income tax expense
(2,376)(6,555)(3,538)(14,901)
Net income
15,343 15,019 25,836 29,755 
Net income attributable to non-controlling interests
(1,447)(3,029)(5,083)(6,960)
Net income attributable to common shareholders
$13,896 $11,990 $20,753 $22,795 
Net income per share attributable to common shareholders:
Basic
$0.26 $0.22 $0.39 $0.42 
Diluted
$0.26 $0.22 $0.39 $0.41 
Weighted average shares outstanding (in thousands):
Basic52,682 54,618 52,605 54,424 
Diluted54,089 55,535 53,628 55,261 
Additional Disclosure:
Depreciation and amortization$14,900 $19,279 $48,902 $46,477 
Amortization of deferred financing costs$493 $492 $1,478 $1,742 
9

IMAX CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands of dollars, except share amounts)
(Unaudited)

September 30,December 31,
20242023
Assets
Cash and cash equivalents$104,504 $76,200 
Accounts receivable, net of allowance for credit losses114,193 136,259 
Financing receivables, net of allowance for credit losses123,459 127,154 
Variable consideration receivables, net of allowance for credit losses74,487 64,338 
Inventories37,612 31,584 
Prepaid expenses13,310 12,345 
Film assets, net of accumulated amortization9,127 6,786 
Property, plant and equipment, net of accumulated depreciation245,106 243,299 
Other assets22,981 20,879 
Deferred income tax assets, net of valuation allowance15,687 7,988 
Goodwill52,815 52,815 
Other intangible assets, net of accumulated amortization34,279 35,022 
Total assets$847,560 $814,669 
Liabilities
Accounts payable$26,018 $26,386 
Accrued and other liabilities111,283 111,013 
Deferred revenue53,676 67,105 
Revolving credit facility borrowings, net of unamortized debt issuance costs46,239 22,924 
Convertible notes and other borrowings, net of unamortized discounts and debt issuance costs230,038 229,131 
Deferred income tax liabilities12,521 12,521 
Total liabilities479,775 469,080 
Commitments, contingencies and guarantees
Non-controlling interests674 658 
Shareholders’ equity
Capital stock common shares — no par value. Authorized — unlimited number.
52,682,641 issued and outstanding (December 31, 2023 — 53,260,276 issued and outstanding)
394,603 389,048 
Other equity181,911 185,087 
Statutory surplus reserve3,932 3,932 
Accumulated deficit
(279,993)(292,845)
Accumulated other comprehensive loss
(11,015)(12,081)
Total shareholders’ equity attributable to common shareholders
289,438 273,141 
Non-controlling interests77,673 71,790 
Total shareholders’ equity
367,111 344,931 
Total liabilities and shareholders’ equity
$847,560 $814,669 





10

IMAX CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands of dollars)
(Unaudited)


Nine Months Ended
September 30,
20242023
Operating Activities
Net income
$25,836 $29,755 
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization
48,902 46,477 
Amortization of deferred financing costs
1,478 1,742 
Credit loss (reversal) expense, net
(963)1,589 
Write-downs, including asset impairments
3,034 872 
Deferred income tax benefit
(7,339)(3,724)
Share-based and other non-cash compensation
17,261 17,830 
Unrealized foreign currency exchange (gain) loss
(527)52 
Realized and unrealized investment gain
(94)(436)
Changes in assets and liabilities:
Accounts receivable
23,001 (2,392)
Inventories(6,181)(13,771)
Film assets
(17,892)(14,575)
Deferred revenue
(13,393)(4,670)
Changes in other operating assets and liabilities
(13,771)(4,141)
Net cash provided by operating activities
59,352 54,608 
Investing Activities
Purchase of property, plant and equipment
(3,816)(2,541)
Investment in equipment for joint revenue sharing arrangements
(21,728)(10,705)
Acquisition of other intangible assets
(4,802)(5,418)
Net cash used in investing activities
(30,346)(18,664)
Financing Activities
Revolving credit facility borrowings55,000 31,032 
Repayments of revolving credit facility borrowings(32,000)(43,057)
Repayments of other borrowings
(489)— 
Proceeds from other borrowings
— 315 
Repurchase of common shares(18,102)(4,263)
Taxes withheld and paid on employee stock awards vested(4,978)(6,458)
Common shares issued - stock options exercised
98 — 
Principal payment under finance lease obligations
(480)(480)
Dividends paid to non-controlling interests
— (1,438)
Net cash used in financing activities
(951)(24,349)
Effects of exchange rate changes on cash
249 607 
Increase in cash and cash equivalents during period
28,304 12,202 
Cash and cash equivalents, beginning of period
76,200 97,401 
Cash and cash equivalents, end of period
$104,504 $109,603 

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Segment Revenue and Gross Margin

Three Months Ended
Nine Months Ended
September 30,September 30,
(In thousands of dollars)2024202320242023
Revenue
Content Solutions$30,129 $44,214 $99,218 $107,605 
Technology Products and Services57,971 56,169 152,019 171,813 
Sub-total for reportable segments88,100 100,383 251,237 279,418 
All Other(1)
3,352 3,513 8,299 9,403 
Total$91,452 $103,896 $259,536 $288,821 
Gross Margin
Content Solutions$16,449 $26,407 $54,686 $64,397 
Technology Products and Services31,964 33,761 81,331 100,066 
Sub-total for reportable segments48,413 60,168 136,017 164,463 
All Other(1)
2,606 2,547 5,818 6,190 
Total$51,019 $62,715 $141,835 $170,653 
image_1.jpg
(1)All Other includes the results from the Company’s streaming and consumer technology business, as well as other ancillary activities.











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IMAX CORPORATION
NON-GAAP FINANCIAL MEASURES
(In thousands of U.S. dollars)

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 executive transition costs, 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 executive transition costs; and (v) write- downs, net of recoveries, including asset impairments and credit loss expense.

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.

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Adjusted EBITDA per Credit Facility

Three Months Ended

(In thousands of U.S. Dollars)
September 30, 2024
September 30, 2023
Revenues$91,452 $103,896 
Reported net income
$15,343 $15,019 
Add (subtract):
Income tax expense
2,376 6,555 
Interest expense, net of interest income
1,123 253 
Depreciation and amortization, including film asset amortization
14,900 19,279 
Amortization of deferred financing costs(1)
493 492 
EBITDA$34,235 $41,598 
Share-based and other non-cash compensation
5,508 5,297 
Unrealized investment gains
(32)(364)
Transaction-related expenses
— 3,086 
Write-downs, including asset impairments and credit loss expense
(1,025)921 
Total Adjusted EBITDA
$38,686 $50,538 
Total Adjusted EBITDA margin
42.3 %48.6 %
Less: Non-controlling interest(3,116)(5,455)
Adjusted EBITDA per Credit Facility - attributable to common shareholders$35,570 $45,083 
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(1)The amortization of deferred financing costs is recorded within Interest Expense in the Condensed Consolidated Statement of Operations.


Twelve Months Ended

(In thousands of U.S. Dollars)
September 30, 2024(1)
September 30, 2023(1)
Revenues$345,554 $386,867 
Reported net income
$29,147 $33,836 
Add (subtract):
Income tax expense
1,688 16,917 
Interest expense, net of interest income
3,907 2,024 
Depreciation and amortization, including film asset amortization
62,447 60,475 
Amortization of deferred financing costs(2)
1,970 2,454 
EBITDA$99,159 $115,706 
Share-based and other non-cash compensation
23,661 25,893 
Unrealized investment gains
(123)(407)
Transaction-related expenses
327 3,408 
Restructuring and executive transition costs
1,593 1,353 
Write-downs, including asset impairments and credit loss expense
2,359 4,328 
Total Adjusted EBITDA
$126,976 $150,281 
Total Adjusted EBITDA margin
36.7 %38.8 %
Less: Non-controlling interest$(13,422)$(17,363)
Adjusted EBITDA per Credit Facility - attributable to common shareholders$113,554 $132,918 
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.



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

Three Months Ended
September 30, 2024
Three Months Ended
September 30, 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
$13,896 $0.26 $11,990 $0.22 
Adjustments(1):
Share-based compensation
5,332 0.10 5,063 0.09 
Unrealized investment gains
(32)— (454)(0.01)
Transaction-related expenses
— — 3,086 0.06 
Tax impact on items listed above
(341)(0.01)(275)— 
Adjusted net income(1)
$18,855 $0.35 $19,410 $0.35 
Weighted average shares outstanding — basic
52,682 54,618 
Weighted average shares outstanding — diluted
54,089 55,535 
image_1.jpg
(1)Reflects amounts attributable to common shareholders.
Nine Months Ended September 30,
20242023
(In thousands of U.S. Dollars, except per share amounts)
Net Income
Per Share
Net Income
Per Share
Net income attributable to common shareholders
$20,753 $0.39 $22,795 $0.41 
Adjustments(1):
Share-based compensation
16,686 0.30 17,110 0.31 
Unrealized investment gains
(94)— (526)(0.01)
Transaction-related expenses
— — 3,242 0.06 
Restructuring and executive transition costs
— — 1,353 0.02 
Tax impact on items listed above
(803)(0.01)(1,184)(0.02)
Adjusted net income(1)
$36,542 $0.68 $42,790 $0.77 
Weighted average shares outstanding — basic
52,605 54,424 
Weighted average shares outstanding — diluted
53,628 55,261 
image_1.jpg
(1)Reflects amounts attributable to common shareholders.


Free Cash Flow
Nine Months Ended
September 30,
(In thousands of U.S. Dollars)20242023
Net cash provided by operating activities
$59,352 $54,608 
Purchase of property, plant and equipment(3,816)(2,541)
Acquisition of other intangible assets(4,802)(5,418)
Free cash flow before growth CAPEX(1)
50,734 46,649 
Investment in equipment for joint revenue sharing arrangements(21,728)(10,705)
Free cash flow$29,006 $35,944 
image_1.jpg
(1)Growth CAPEX is defined as capital expenditures associated with investments in equipment for joint revenue sharing arrangements.

15