Imax 2nd-quarter net income rises 7 percent

Imax posts 7 percent increase in 2nd-quarter profit helped by installations of new theaters

Associated Press

NEW YORK (AP) -- Imax Corp. said Thursday its second-quarter net income rose 7 percent, helped by the installations of new theaters.

The results and an expanded partnership in China pleased investors, and Imax shares jumped $2.40, or 10 percent, to $27.50 in premarket trading.

The New York company earned $11.8 million, or 17 cents per share, up from $11 million, or 16 cents per share, in the same quarter of 2012. Excluding stock-based compensation costs, the company said it posted an adjusted profit of 22 cents per share.

Revenue increased 17 percent to $82.3 million from $70.2 million.

The profit fell short of Wall Street predictions, while the revenue beat them. Analysts, on average, expected earnings per share of 26 cents on $77.2 million in revenue, according to FactSet.

Revenue from sales and sales-type leases rose 14 percent to $17.1 million, mainly as a result of the installation of new theatre systems and the recognition of revenue related to digital upgrades.

Revenue from joint revenue-sharing arrangements increased 17 percent to $18.3 million. The company had 336 theatres operating under joint revenue-sharing arrangements as of June 30, up from 274 theatres at the same time a year ago.

Total Imax theaters numbered 767 at quarter-end, and there were 284 theatre systems in backlog as of June 30, compared to 280 theatre systems in backlog one year earlier.

Production and digital re-mastering revenue jumped 32 percent to $26 million.

Late Wednesday, Imax announced it and a Chinese partner plan to open up to 120 giant-screen cinemas in China's fast-growing film market. Imax and Wanda Cinema Line Corp., Asia's biggest cinema operator, said the agreement will make Wanda the biggest international Imax operator, with as many as 210 screens operating or planned.

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