Imax Corp (IMAX) Reports Robust Full-Year 2023 Financial Growth
Revenue Growth: Imax Corp (NYSE:IMAX) reported a 25% year-over-year increase in total revenue for FY23, reaching $374.8 million.
Net Income: Net income for FY23 was $25.3 million, a significant improvement from a net loss of $(22.8) million in FY22.
Adjusted EBITDA: Adjusted EBITDA rose by 52% to $128.2 million in FY23, reflecting strong operational performance.
System Installations: The company completed 128 system installations in FY23, up from 92 in the previous year.
Cash Flow: Cash from operations more than tripled to $59 million in FY23, compared to $17 million in FY22.
Global Box Office: IMAX achieved approximately $1.1 billion in global box office, nearing its previous record.
On February 27, 2024, Imax Corp (NYSE:IMAX) released its 8-K filing, showcasing a year of substantial financial growth and operational achievements. The company, known for its innovative entertainment technology and premium cinematic experiences, has seen its global footprint expand significantly, with over 1,630 theaters in operation across 87 countries.
Financial Performance Highlights
Imax Corp (NYSE:IMAX) reported a full-year revenue of $374.8 million for 2023, a 25% increase from the previous year. This growth was driven by a combination of system sales activity, which saw a 174% year-over-year increase to 129 signings, and the delivery of 128 system installations, up from 92 in FY22. The company's net income turned positive, reaching $25 million in FY23, a stark contrast to the loss of $(23) million in FY22. Adjusted EBITDA also saw a significant rise to $128 million, up 52% from $84 million in FY22.
Despite a decrease in total revenue and gross margin in the fourth quarter of 2023 compared to the same period in 2022, the full-year figures reflect a robust performance. The company's gross margin percentage for FY23 stood at 57%, up from 52% in FY22, indicating improved profitability.
Operational Achievements and Strategic Growth
Imax Corp (NYSE:IMAX) has strategically managed its content portfolio to capture a greater share of Hollywood releases, grow local language content, and expand into emerging verticals such as music, gaming, and live experiences. The company's global technology platform has been instrumental in delivering awe-inspiring experiences to audiences worldwide, with a clear preference for the IMAX experience among consumers.
Rich Gelfond, CEO of IMAX, emphasized the company's success in expanding and diversifying its global footprint, with a record number of system installations coming from strategic Rest of World markets such as Japan, South Korea, and Europe. Gelfond also highlighted the potential for further expansion, with the current IMAX network at only 47% penetration and the opportunity to open nearly 2,000 additional locations worldwide.
IMAX delivered excellent results in 2023 we grew Net Income by $48 million, Adjusted EPS by 88 cents, Adjusted EBITDA by 52%, and system installations by nearly 40% on the strength of demand for our technology, our unique premium model, and a clear preference among consumers worldwide for awe-inspiring IMAX experiences," said Rich Gelfond, CEO of IMAX.
Looking Ahead
For 2024, Imax Corp (NYSE:IMAX) expects to maintain a similar gross box office to 2023, with system installations projected between 120 to 150 systems. The company anticipates a high 30's percentage for total consolidated Adjusted EBITDA margin.
Imax Corp (NYSE:IMAX) continues to innovate in entertainment technology, connecting with audiences through top filmmakers and studios. With a strong financial foundation and a clear strategic direction, the company is well-positioned to deliver continued results for its shareholders and enhance the cinematic experience for moviegoers around the globe.
For more detailed financial information and future updates, investors and interested parties are encouraged to visit the IMAX Investor Relations website at investors.imax.com.
Explore the complete 8-K earnings release (here) from Imax Corp for further details.
This article first appeared on GuruFocus.
