IMAX (IMAX) 8-K Imax Corporation Reports Fourth Quarter and Company achieved record full-year 2019 box office of $1.1 billion, up 7% over the prior year

Exhibit 99.1

IMAX CORPORATION REPORTS FOURTH QUARTER AND

FULL-YEAR 2019 RESULTS

HIGHLIGHTS

• Company achieved record full-year 2019 box office of $1.1 billion, up 7% over the prior year

• Full-year 2019 revenue increased 6% versus 2018 to $396 million, a new record

• Full-year 2019 net income attributable to common shareholders increased 105% versus 2018 to $47 million and full-year 2019 net income increased 74% to $59 million; Adjusted net income attributable to common shareholders increased 12% year-over-year to $65 million

• Full-year 2019 earnings per share attributable to common shareholders increased 111% to $0.76; Adjusted net earnings per share attributable to common shareholders increased 15% to $1.05

• Company’s total commercial multiplex network grew to 1,529 theatres, 73% of which are in international markets

	Three Months Ended December 31,									12 Months Ended December 31,
In millions, except per share data	2019			2018			YoY %			2019			2018			YoY %
							Change									Change
Total Revenue	$	124.3		$	109.0			14	%	$	395.7		$	374.4			6	%
Gross Margin		62.4			54.6			14	%		214.2			207.9			3	%
Gross Margin (%)		50.2	%		50.1	%					54.1	%		55.5	%
Net Income	$	21.4		$	3.8			461	%	$	58.6		$	33.6			74	%
Net Income(1)		18.2			1.7			973	%		46.9			22.8			105	%
Adjusted Net Income (1)		21.5			16.4			31	%		64.8			57.8			12	%
Diluted Net Income Per Share(1)	$	0.29		$	0.03			867	%	$	0.76		$	0.36			111	%
Adj. Net Income Per Share(1)	$	0.35		$	0.26			35	%	$	1.05		$	0.91			15	%
Adjusted EBITDA	$	47.0		$	36.4			29	%	$	149.3		$	133.2			12	%
Adj. EBITDA Margin (%)		41.7	%		37.3	%					41.7	%		39.6	%

⁽¹⁾  Attributable to common shareholders

Note: For the definition and reconciliations of reported results tonon-GAAP financial results, please refer to the discussion ofnon-GAAP financial measures at the end of this earnings release.

NEW YORK – Feb. 19, 2020 –IMAX Corporation (NYSE:IMAX) today reported full-year 2019 revenues of $395.7 million, gross profit of $214.2 million, net income of $58.6 million, or $0.95 per diluted share, and net income attributable to common shareholders of $46.9 million, or $0.76 per diluted share. Adjusted net income attributable to common shareholders for the year ended December 31, 2019 was $64.8 million, or $1.05 per diluted share. Adjusted EBITDA attributable to common shareholders was $149.3 million.

The Company also reported fourth quarter 2019 revenues of $124.3 million, gross profit of $62.4 million, net income of $21.4 million, or $0.35 per diluted share, and net income attributable to common shareholders of $18.2 million, or $0.29 per diluted share. Adjusted net income attributable to common shareholders for the fourth quarter was $21.5 million, or $0.35 per diluted share. Adjusted EBITDA attributable to common shareholders was $47.0 million. For reconciliations of reported results tonon-GAAP financial results, and for the definition and reconciliation of Adjusted EBITDA, please see the end of this press release.

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“IMAX is among the world’s premiere entertainment experiences, and our record 2019 financial results reflect sharp focus, strong execution, and disciplined cost management as we continue to grow our global footprint, diversify our content portfolio, and enhance our pioneeringend-to-end technology,” said IMAX CEO Richard L. Gelfond.

“Across 2019, our business demonstrated significant strength by setting a number of new records for the Company including annual revenue as well as global, international, and local language box office — underscoring the increasing geographic diversification of our business.”

“In a world of nearly infinite entertainment choices, audiences continue to choose IMAX. Immersive entertainment experiences continue to connect fans and drive culture around the globe. We are committed to building on strong demand for The IMAX Experience^® to strengthen our unique position in the entertainment ecosystem and deliver value for our shareholders.”

“In terms of the health crisis in China, where movie theatres nationwide remain closed, we are continuing to monitor the situation closely and needless to say the safety of our team and audiences is our top priority”, said Mr. Gelfond. “We look forward to circumstances improving and IMAX continuing to satisfy China’s strong demand for premium quality content and entertainment experiences.”

Fourth Quarter and Full-Year Segment Results

	Network Business									Theater Business
	Revenue			Gross Margin			Gross Margin%			Revenue			Gross Margin			Gross Margin%
4Q19	$	43.0		$	24.4			56.8	%	$	77.6		$	39.7			51.2	%
4Q18	$	41.7			24.7			59.2	%		61.9			29.1			47.1	%
% change		3.3	%		(0.9	%)					25.3	%		36.4	%
YTD 4Q19	$	196.8		$	126.7			64.4	%	$	180.5		$	86.8			48.1	%
YTD 4Q18	$	184.2			121.6			66.0	%		168.4			85.8			50.9	%
% change		6.9	%		4.1	%					7.2	%		1.2	%

Network Business

• Network business revenues increased 6.9% to $196.8 million in 2019, compared to $184.2 million in the prior-year period. The strong overall increase in network business revenues was primarily driven by a $76.4 million, or 7.4%, increase in IMAX global box office to $1.1 billion.

• Total gross margin for the network business was 64.4% in the most recent quarter, compared to 66.0% in the prior-year period. The year-over-year decrease in total gross margin was primarily driven by increased contractual marketing expense.

Theatre Business

• Theatre business segment revenues increased 7.2% to $180.5 million in 2019, compared with $168.4 million in the prior-year period.

• Total gross margin for the theatre business was 48.1% compared to 50.9% in the prior-year period. The year-over-year decline in total gross margin was primarily driven by the geographic and system mix of installations in the first quarter of 2018. The theatre business gross margin increased steadily throughout 2019, landing at 51.2% for the entire segment in the fourth quarter of 2019, and 53.0% specifically for sales and sales type lease theatres.

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Cash Balances and Outstanding Debt

Total cash and cash equivalents as of December 31, 2019 was $109.5 million. Total bank indebtedness was $18.2 million as of December 31, 2019 and represented a decrease compared to $37.8 million as of December 31, 2018. As of December 31, 2019, $280.0 million was available under the Company’s $300.0 million credit facility due June 28, 2023.

Share Count and Capital Return

• The weighted average diluted shares outstanding at the end of the fourth quarter of 2019 declined 2.7% to 61.5 million, compared to 63.2 million in fourth quarter 2018, due primarily to share repurchase activity. During 2019 a total of 134 thousand shares were repurchased at an average price of $19.76 for a total value of approximately $2.7 million. A total of $125.9 million remains available under the Company’s outstanding share repurchase authorization, which expires in June 2020.

• During 2019, IMAX China repurchased a total of 8.05 million shares at an average price of $2.38 for a total value of approximately $19.2 million.

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 weekly basis, the Company postsquarter-to-date box office results on the IMAX Investor Relations website located at www.imax.com/content/investor-relations. The Company expects to provide such updates on Friday of each week, although the Company may change this timing without notice. Results will be displayed with aone-week lag.

The information posted on the Company’s website may be deemed 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.

Conference Call

The Company will host a conference call today at 4:30PM ET to discuss its fourth quarter and full year 2019 financial results. This call is being webcast by Nasdaq and can be accessed atinvestors.imax.com. To access the call via telephone, interested parties in the US and Canada should dial (888)204-4368 approximately 5 to 10 minutes before the call begins. Other international callers should dial (647)794-4605. The conference ID for the call is 9833755. A replay of the call will be available via webcast atinvestors.imax.com or via telephone by dialing (888)203-1112 (US and Canada), or (647)436-0148 (international). The Conference ID for the telephone replay is 9833755.

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 theatres to connect with audiences in extraordinary ways, and, as such, IMAX’s network is 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 December 31, 2019, there were 1,624 IMAX theatre systems (1,529 commercial multiplexes, 14 commercial destinations, 81 institutional) operating in 81 countries and territories. Shares of IMAX China, a subsidiary of IMAX Corp., trade on the Hong Kong Stock Exchange under the stock code “HK.1970.”

IMAX^®, IMAX^® 3D, IMAX DMR^®, Experience It In IMAX^®, An IMAX 3D Experience^®, The IMAX Experience^®, IMAX Is Believing^® and IMAX nXos^® are trademarks of IMAX Corporation. More information about the Company can be found at www.imax.com. You may also connect with IMAX on Instagram (https://www.instagram.com/imax), Facebook (www.facebook.com/imax), Twitter (www.twitter.com/imax) and YouTube (www.youtube.com/imaxmovies).

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For additional information please contact:

Investors: IMAX Corporation, New York Heather Anthony 212-821-0121 hanthony@imax.com Media: IMAX Corporation, New York Mark Jafar 212-821-0155 mjafar@imax.com

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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. Important factors that could affect these statements include, but are not limited to, references to future capital expenditures (including the amount and nature thereof), business and technology strategies and measures to implement strategies, competitive strengths, goals, expansion and growth of business, operations and technology, 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; risks related to the Company’s growth and operations in China, including the adverse impact of the coronavirus outbreak in China; the performance of IMAX DMR^® films; the signing of theater 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; competitive actions by other companies; the failure to respond to change and advancements in digital technology; risks relating to recent consolidation among commercial exhibitors and studios; risks related to new business initiatives; conditions in thein-home andout-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; general economic, market or business conditions; the failure to convert theater system backlog into revenue; changes in laws or regulations; the failure to fully realize the projected cost savings and benefits from any of the Company’s restructuring initiatives; and other factors, many of which are beyond the control of the Company. These factors, other risks and uncertainties and financial details are discussed in IMAX’s most recent Annual Report on Form10-K and Quarterly Reports on Form10-Q. 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.

Primary Reporting Groups

The Company has four primary reporting groups identified by nature of product sold or service provided: (1) Network Business, representing variable revenue generated bybox-office results and which includes the reportable segments of IMAX DMR and contingent rent from the JRSAs and IMAX systems segments; (2) Theater Business, representing revenue generated by the sale and installation of theater systems and maintenance services, primarily related to the IMAX Systems and Theater System Maintenance reportable segments, and also includes fixed hybrid revenues and upfront installation costs from the JRSA segment; (3) New Business, which includes home entertainment, and other new business initiatives that are in the development,start-up and/orwind-up phases, and (4) Other; which includes the film post-production and distribution segments and certain IMAX theaters that the Company owns and operates, camera rentals and other miscellaneous items.

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Non-GAAP Financial Measures

In this release, the Company presents adjusted net income, adjusted net income per diluted share, adjusted net income attributable to common shareholders and adjusted net income attributable to common shareholders per diluted share, EBITDA, Adjusted EBITDA per Credit Facility, Adjusted EBITDA margin, free cash flow and return on invested capital as supplemental measures of performance of the Company, which are not recognized under U.S. GAAP. The Company presents adjusted net income and adjusted net income per diluted share because it believes that they are important supplemental measures of its comparable controllable operating performance and it wants to ensure that its investors fully understand the impact of its stock-based compensation (net of any related tax impact) andnon-recurring charges on net income. In addition, the Company presents adjusted net income attributable to common shareholders and adjusted net income attributable to common shareholders per diluted share because it believes that they are important supplemental measures of its comparable financial results and could potentially distort the analysis of trends in business performance and it wants to ensure that its investors fully understand the impact of net income attributable tonon-controlling interests and its stock-based compensation (net of any related tax impact) andnon-recurring charges in determining net income attributable to common shareholders. Management uses these measures to review operating performance on a comparable basis from period to period. However, thesenon-GAAP measures may not be comparable to similarly titled amounts reported by other companies. Adjusted net income, adjusted net income per diluted share, adjusted net income attributable to common shareholders and adjusted net income attributable to common shareholders per diluted share should be considered in addition to, and not as a substitute for, net income and net income attributable to common shareholders and other measures of financial performance reported in accordance with U.S. GAAP.

The Company is required to maintain a minimum level of “EBITDA”, as such term is defined in the Company’s credit agreement (and which is referred to herein as “Adjusted EBITDA per Credit Facility”, as the credit agreement includes additional adjustments beyond interest, taxes, depreciation and amortization). EBITDA and Adjusted EBITDA per Credit Facility (each as defined below) should not be construed as substitutes for net income or as better measures of liquidity as determined in accordance with U.S. GAAP. The Company believes that EBITDA, Adjusted EBITDA per Credit Facility and Adjusted EBITDA margin are relevant and useful information widely used by analysts, investors and other interested parties in the Company’s industry. Accordingly, the Company is disclosing this information to permit a more comprehensive analysis of its operating performance and to provide additional information with respect to the Company’s ability to comply with its credit agreement requirements.

Free cash flow is defined as cash provided by operating activities minus cash used in investing activities (from the condensed consolidated statements of cash flows). Cash provided by operating activities consist of net income, plus depreciation and amortization, plus the change in deferred income taxes, plus othernon-cash items, plus changes in working capital, less investment in film assets, plus other changes in operating assets and liabilities. Cash used in investing activities includes capital expenditures, acquisitions and other cash used in investing activities. Management views free cash flow, anon-GAAP measure, as a measure of the Company’safter-tax 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.

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Signings and Installations

	12 Months Ended December 31,
Theater System Signings:	2019		2018
Full new sales and sales-type lease arrangements		49		57
New traditional joint revenue sharing arrangements		7		55
New hybrid joint revenue sharing lease arrangements		48		10
Total new theaters		104		122
Upgrades of IMAX theater systems		39		112	(1)
Total theater signings		143		234

	12 Months Ended December 31,
Theater System Installations:	2019			2018
Full new sales and sales-type lease arrangements		55	(2)		63
New traditional joint revenue sharing arrangements		54			72
New hybrid joint revenue sharing lease arrangements		20			14
Total new theaters		129			149
Upgrades of IMAX theater systems		57			23
Total theater installations		186			172

	12 Months Ended December 31,
Theater Sales Backlog:	2019			2018
Sales and sales-type lease arrangements		178			177
Joint revenue sharing arrangements
Hybrid lease arrangements		140			118
Traditional arrangements		213	(3)		269	(5)
Total theater backlog		531	(4)		564	(6)

	12 Months Ended December 31,
Theater Network:	2019		2018
Commercial Multiplex Theaters:
Sales and sales-type lease arrangements		659		611
Traditional joint revenue sharing arrangements		731		674
Hybrid joint revenue sharing lease arrangements		139		124
Total Commercial Multiplex Theaters		1,529		1,409
Commercial Destination Theaters		14		14
Institutional Theaters		81		82
Total theater network		1,624		1,505

(1) Includes 105 theater systems related to existing AMC, Regal and Pathé theaters to be upgraded to IMAX with Laser projection systems on new lease terms ranging from 10 to 12 years.

(2) Includes one IMAX digital theater system that was relocated from a previous location. This installation is incremental to the IMAX theater network but full revenue for the digital theater system was not received.

(3) Includes 47 theater systems where the customer has the option to convert from a joint revenue sharing arrangement to a sales arrangement.

(4) Includes 153 new laser projection system configurations (144 of which are IMAX with Laser projection system configurations and 9 of which are GT Lasers) and 97 upgrades of existing locations to laser projection system configurations (92 of which are for the IMAX with Laser projection system configurations and 5 of which are GT Lasers).

(5) Includes 46 theater systems where the customer has the option to convert from a joint revenue sharing arrangement to a sales arrangement.

(6) Includes 83 new laser projection system configurations (73 of which are IMAX with Laser projection system configurations and 10 of which are GT Lasers) and 100 upgrades of existing locations to laser projection system configurations (98 of which are for the IMAX with Laser projection system configurations and 2 of which are GT Lasers).

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IMAX CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

In accordance with United States Generally Accepted Accounting Principles

(In thousands of U.S. dollars, except per share amounts)

	Three Months Ended December 31,						12 Months Ended December 31,
	2019			2018			2019			2018
Revenues
Equipment and product sales	$	61,616		$	46,409		$	118,245		$	106,591
Services		43,570			42,769			188,547			181,740
Rentals		16,286			16,667			77,961			74,472
Finance income		2,807			3,119			10,911			11,598
		124,279			108,964			395,664			374,401
Costs and expenses applicable to revenues
Equipment and product sales		30,513			25,233			63,627			54,853
Services		21,970			21,428			88,175			84,236
Rentals		9,437			7,661			29,690			27,383
		61,920			54,322			181,492			166,472
Gross margin		62,359			54,642			214,172			207,929
Selling, general and administrative expenses		34,189			30,380			123,456			117,477
Research and development		1,486			2,186			5,203			13,728
Amortization of intangibles		1,391			1,249			4,955			4,145
Receivable provisions, net of recoveries		473			1,463			2,430			3,130
Legal arbitration award		—			4,237			—			11,737
Executive transition cost		—			2,994			—			2,994
Exit costs, restructuring charges and associated impairments		—			8,384			850			9,542
Income from operations		24,820			3,749			77,278			45,176
Change in fair value of equity securities		2,026			—			(517	)		—
Retirement benefits non-service expense		(257	)		(125	)		(737	)		(499	)
Interest income		473			723			2,105			1,844
Interest expense		(987	)		(613	)		(2,793	)		(2,916	)
Income before income taxes		26,075			3,734			75,336			43,605
Provision for income taxes		(4,782	)		22			(16,768	)		(9,518	)
Income (loss) from equity-accounted investments, net of tax		59			15			3			(492	)
Net income		21,352			3,771			58,571			33,595
Less: net income attributable to non-controlling interests		(3,181	)		(2,077	)		(11,705	)		(10,751	)
Net income attributable to common shareholders	$	18,171		$	1,694		$	46,866		$	22,844
Net income per share attributable to common shareholders — basic and diluted:
Net income per share — basic and diluted	$	0.29		$	0.03		$	0.76		$	0.36
Weighted average number of shares outstanding (000’s):
Basic		61,228			61,924			61,310			63,075
Fully Diluted		61,542			62,127			61,489			63,207
Additional Disclosure:
Depreciation and amortization (1)	$	17,987		$	15,453		$	63,487		$	57,437

(1) Includes $0.1 million and $0.5 million of amortization of deferred financing costs charged to interest expense for the three months and year ended December 31, 2019, respectively (2018 - $0.1 million and $1.1 million, respectively).

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IMAX CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

In accordance with United States Generally Accepted Accounting Principles

(In thousands of U.S. dollars)

	December 31,
	2019			2018
Assets
Cash and cash equivalents	$	109,484		$	141,590
Accounts receivable, net of allowance for doubtful accounts of $5,138 (December 31, 2018 — $3,174)		99,513			93,309
Financing receivables, net of allowance for uncollectible amounts		128,038			127,432
Variable consideration receivable from contracts		40,040			35,985
Inventories		42,989			44,560
Prepaid expenses		10,237			10,294
Film assets		17,921			16,367
Property, plant and equipment		306,849			280,658
Investment in equity securities		15,685			1,022
Other Assets		25,034			17,997
Deferred income taxes		23,905			31,264
Other intangible assets		30,347			34,095
Goodwill		39,027			39,027
Total assets	$	889,069		$	873,600
Liabilities
Bank indebtedness	$	18,229		$	37,753
Accounts payable		20,414			32,057
Accrued and other liabilities		112,779			97,724
Deferred revenue		94,552			106,709
Total liabilities		245,974			274,243
Commitments and contingencies
Non-controlling interests		5,908			6,439
Shareholders’ equity
Capital stock (note 16) common shares — no par value. Authorized — unlimited number 61,362,872 issued and 61,175,852 outstanding (December 31, 2018 — 61,478,168 issued and 61,433,589 outstanding)		423,386			422,455
Less: Treasury stock, 187,020 shares at cost (December 31, 2018 — 44,579)		(4,038	)		(916	)
Other equity		171,789			179,595
Accumulated deficit		(40,253	)		(85,385	)
Accumulated other comprehensive loss		(3,190	)		(3,588	)
Total shareholders’ equity attributable to common shareholders		547,694			512,161
Non-controlling interests		89,493			80,757
Total shareholders’ equity		637,187			592,918
Total liabilities and shareholders’ equity	$	889,069		$	873,600

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IMAX CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

In accordance with United States Generally Accepted Accounting Principles

(In thousands of U.S. dollars)

	Years Ended December 31,
	2019			2018
Cash provided by (used in):
Operating Activities
Net income	$	58,571		$	33,595
Adjustments to reconcile net income to cash from operations:
Depreciation and amortization		63,487			57,437
Write-downs, net of recoveries		6,806			11,770
Deferred income taxes		6,762			(6,923	)
Stock and othernon-cash compensation		23,570			23,723
Unrealized foreign currency exchange loss		33			631
Change in fair value of equity investment		517			—
Loss from equity-accounted investments		730			95
(Gain) loss onnon-cash contribution to equity-accounted investees		(733	)		397
Investment in film assets		(23,437	)		(23,200	)
Changes in othernon-cash operating assets and liabilities		(45,929	)		12,447
Net cash provided by operating activities		90,377			109,972
Investing Activities
Purchase of property, plant and equipment		(7,421	)		(13,368	)
Investment in joint revenue sharing equipment		(40,489	)		(34,810	)
Acquisition of other intangible assets		(2,931	)		(8,696	)
Investment in equity securities		(15,153	)		—
Net cash used in investing activities		(65,994	)		(56,874	)
Financing Activities
Increase in bank indebtedness		35,000			65,000
Repayment of bank indebtedness		(55,000	)		(50,667	)
Treasury stock repurchased for future settlement of restricted share units		(4,038	)		(916	)
Settlement of restricted share units and options		(9,795	)		(5,249	)
Repurchase of common shares, IMAX China		(19,162	)		(6,084	)
Taxes withheld and paid on employee stock awards vested		(590	)		(1,437	)
Common shares issued—stock options exercised		2,404			1,017
Repurchase of common shares		(2,659	)		(71,479	)
Issuance of subsidiary shares tonon-controlling interests (net of return on capital)		1,106			7,796
Dividends paid tonon-controlling interests		(4,384	)		(6,934	)
Credit facility amendment fees paid		—			(1,909	)
Net cash used in financing activities		(57,118	)		(70,862	)
Effects of exchange rate changes on cash		630			629
Decrease in cash and cash equivalents during period		(32,106	)		(17,135	)
Cash and cash equivalents, beginning of period		141,590			158,725
Cash and cash equivalents, end of period	$	109,484		$	141,590

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IMAX CORPORATION

SELECTED FINANCIAL DATA

In accordance with United States Generally Accepted Accounting Principles

(in thousands of U.S. dollars)

		Three Months Ended December 31,						12 Months Ended December 31,
		2019			2018			2019			2018
Revenue
Network business
IMAX DMR		$	26,857		$	25,207		$	120,765		$	110,793
Joint revenue sharing arrangements – contingent rent			16,228			16,452			75,932			73,371
IMAX systems – contingent rent			(50	)		—			139			—
			43,035			41,659			196,836			184,164
Theater business	��
IMAX systems
Sales and sales-type leases			54,098			37,887			96,310			88,432
Ongoing fees and finance income			3,025			3,242			11,613			12,224
Joint revenue sharing arrangements – fixed fees			4,489			5,885			11,014			9,706
Theater system maintenance			13,336			12,222			53,151			49,684
Other theater			2,624			2,651			8,390			8,358
			77,572			61,887			180,478			168,404
New business			846			770			2,754			5,769
Other
Film distibution and film post-production			2,419			3,806			12,210			12,962
Other			407			842			3,386			3,102
			2,826			4,648			15,596			16,064
Total revenues		$	124,279		$	108,964		$	395,664		$	374,401
Gross Margin
Network business
IMAX DMR(1)		$	16,990		$	15,250		$	78,592		$	72,773
Joint revenue sharing arrangements – contingent rent(1)			7,498			9,415			47,935			48,856
IMAX systems – contingent rent			(50	)		—			139			—
			24,438			24,665			126,666			121,629
Theater business
IMAX systems(1)
Sales and sales-type leases			28,689			19,338			47,118			47,986
Ongoing fees and finance income			2,977			3,194			11,422			12,033
Joint revenue sharing arrangements – fixed fees(1)			1,312			1,206			2,613			1,982
Theater system maintenance			5,964			4,702			23,010			21,991
Other theater			803			707			2,624			1,806
			39,745			29,147			86,787			85,798
New business			665			(489	)		2,106			(350	)
Other
Film distribution and film post-production(1)			(1,745	)		1,443			(1,262	)		1,763
Other			(744	)		(124	)		(125	)		(911	)
			(2,489	)		1,319			(1,387	)		852
Total segment margin		$	62,359		$	54,642		$	214,172		$	207,929

⁽¹⁾  IMAX DMR segment margins include marketing costs of $4.8 million and $22.5 million for the three months and year ended December 31, 2019, respectively (2018—$2.8 million and $16.5 million, respectively). Joint revenue sharing arrangements segment margins include advertising, marketing and commission costs of $3.4 million and $4.5 million for the three months and year ended December 31, 2019, respectively (2018—$1.4 million and $3.6 million, respectively). IMAX system segment margins include marketing and commission costs of $0.5 million and $2.0 million for the three months and year ended December 31, 2019, respectively (2018—$1.5 million and $2.4 million). Film distribution and post production segment margins include marketing recovery of $0.3 million and expense of $0.4 million for the three months and year ended December 31, 2019, respectively (2018—$0.2 million and expense of $2.2 million, respectively).

10

IMAX CORPORATION

OTHER INFORMATION

(in thousands of U.S. dollars)

Non-GAAP Financial Measures:

In this release, the Company presents adjusted net income, adjusted net income per diluted share, adjusted net income attributable to common shareholders and adjusted net income attributable to common shareholders per diluted share, EBITDA, adjusted EBITDA per Credit Facility, free cash flow and return on invested capital as supplemental measures of performance of the Company, which are not recognized under U.S. GAAP. The Company presents adjusted net income and adjusted net income per diluted share because it believes that they are important supplemental measures of its comparable controllable operating performance and it wants to ensure that its investors fully understand the impact of its stock-based compensation (net of any related tax impact) andnon-recurring charges on net income. In addition, the Company presents adjusted net income attributable to common shareholders and adjusted net income attributable to common shareholders per diluted share because it believes that they are important supplemental measures of its comparable financial results and could potentially distort the analysis of trends in business performance and it wants to ensure that its investors fully understand the impact of net income attributable tonon-controlling interests, its stock-based compensation (net of any related tax impact) andnon-recurring charges in determining net income attributable to common shareholders. Management uses these measures to review operating performance on a comparable basis from period to period. However, thesenon-GAAP measures may not be comparable to similarly titled amounts reported by other companies. Adjusted net income, adjusted net income per diluted share, adjusted net income attributable to common shareholders and adjusted net income attributable to common shareholders per diluted share should be considered in addition to, and not as a substitute for, net income and net income attributable to common shareholders and other measures of financial performance reported in accordance with U.S. GAAP.

The Company is required to maintain a minimum level of “EBITDA”, as such term is defined in the Company’s credit agreement (and which is referred to herein as “Adjusted EBITDA per Credit Facility” or “Adjusted EBITDA per Credit Facility excludingMarvel’s Inhumans”, as the credit agreement includes additional adjustments beyond interest, taxes, depreciation and amortization). EBITDA and Adjusted EBITDA per Credit Facility (each as defined below) should not be construed as substitutes for net income or as better measures of liquidity as determined in accordance with U.S. GAAP. The Company believes that EBITDA and Adjusted EBITDA per Credit Facility excludingMarvel’s Inhumans are relevant and useful information widely used by analysts, investors and other interested parties in the Company’s industry.

	Three Months Ended December 31, 2019			Three Months Ended December 31, 2018			12 Months Ended December 31, 2019(1)			12 Months Ended December 31, 2018(1)
Net income	$	21,352		$	3,771		$	58,571		$	33,595
Add (subtract):		—
Provision for income taxes		4,782			(22	)		16,768			9,518
Interest expense, net of interest income		381			(110	)		423			1,072
Depreciation and amortization, including film asset amortization		17,987			15,453			63,487			57,437
EBITDA	$	44,502		$	19,092		$	139,249		$	101,622
Stock and othernon-cash compensation		6,173			5,483			23,570			23,723
Change in fair value of equity investment		(2,026	)		—			517			—
Write-downs, net of recoveries including asset impairments and receivable provisions		3,822			2,797			6,806			5,338
Exit costs, restructing charges and associated impairments		—			8,384			850			9,542
Legal arbitration award		—			4,237			—			11,737
Executive transition costs		—			2,994			—			2,994
(Income) loss from equity accounted investments		(59	)		(15	)		(3	)		492
Adjusted EBITDA beforenon-controlling interests	$	52,412		$	42,972		$	170,989		$	155,448
Adjusted EBITDA attributable tonon-controlling interests(2)		(5,457	)		(6,593	)		(21,661	)		(22,220	)
Adjusted EBITDA per Credit Facility	$	46,955		$	36,379		$	149,328		$	133,228
Adjusted revenues attributable to common shareholders(3)	$	112,635		$	97,573		$	358,053		$	336,723
Adjusted EBITDA margin		41.7	%		37.3	%		41.7	%		39.6	%

(1) Senior Secured Net Leverage Ratio calculated using twelve months ended Adjusted EBITDA per Credit Facility.

(2) The Adjusted EBITDA per Credit Facility calculation specified for purpose of the minimum Adjusted EBITDA covenant excludes the reduction in Adjusted EBITDA from the Company’snon-controlling interests.

(3)

	Three months ended December 31, 2019						Three months ended December 31, 2018						12 months ended December 31, 2019						12 months ended December 31, 2018
Total revenues				$	124,279					$	108,964					$	395,664					$	374,401
Greater China revenues	$	38,481					$	35,553					$	124,294					$	117,520
Non-controlling interest ownership percentage(4)		30.26	%					32.04	%					30.26	%					32.06	%
Deduction fornon-controlling interest share of revenues					(11,644	)					(11,391	)					(37,611	)					(37,678	)
Adjusted revenues attributable to common shareholders				$	112,635					$	97,573					$	358,053					$	336,723

(4) Weighted average ownership percentage for change innon-controlling interest share

11

IMAX CORPORATION

Adjusted Net Income and Adjusted Diluted Per Share Calculations

(In thousands of U.S. dollars)

(Unaudited)

	Three Months Ended December 31, 2019						Three Months Ended December 31, 2018
	Net Income			Diluted EPS			Net Income			Diluted EPS
Reported net income	$	21,352		$	0.35		$	3,771		$	0.06
Adjustments:					—
Stock-based compensation		5,914			0.10			5,046			0.08
Exit costs, restructuring charges and associated impairments		—			—			8,384			0.13
Legal arbitration award		—			—			4,237			0.07
Executive transition costs		—			—			2,994			0.05
Change in fair value of equity investment		(2,026	)		(0.03	)		—			—
Impact of enactment of U.S. Tax Act		—			—			—			—
Tax impact on items listed above		(1,095	)		(0.02	)		(4,586	)		(0.07	)
Adjusted net income		24,145			0.40			19,846			0.32
Net income attributable tonon-controlling interests(1)		(3,181	)		(0.05	)		(2,077	)		(0.04	)
Stock-based compensation (net of tax of less than $0.1 million and less than $0.1 million, respectively)(1)		(112	)		(0.01	)		(115	)		—
Exit costs, restructuring charges and associated impairments (net of tax of $nil and $0.4 million, respectively) (1)		—			—			(1,262	)		(0.02	)
Change in fair value of equity investment		617			0.01			—			—
Adjusted net income attributable to common shareholders	$	21,469		$	0.35		$	16,392		$	0.26
Weighted average diluted shares outstanding					61,542						62,127

(1) Reflects amounts attributable tonon-controlling interests.

	12 Months Ended December 31, 2019						12 Months Ended December 31, 2018
	Net Income			Diluted EPS			Net Income			Diluted EPS
Reported net income	$	58,571		$	0.95		$	33,595		$	0.53
Adjustments:
Stock-based compensation		22,830			0.37			22,211			0.35
Exit costs, restructuring charges and associated impairments		850			0.01			9,542			0.15
Legal arbitration award		—			—			11,737			0.19
Executive transition costs		—			—			2,994			0.05
Change in fair value of equity investment		517			0.01			—			—
Impact of enactmnet of U.S Tax Cut and Jobs Act		—			—			—			—
Tax impact on items listed above		(5,614	)		(0.09	)		(9,873	)		(0.16	)
Adjusted net income		77,154			1.25			70,206			1.11
Net income attributable tonon-controlling interests(1)		(11,705	)		(0.19	)		(10,751	)		(0.17	)
Stock-based compensation (net of tax of $0.1 million and $0.1 million, respectively) (1)		(480	)		(0.01	)		(394	)		(0.01	)
Exit costs, restructuring charges and associated impairments (net of tax of $nil and $0.4 million, respectively) (1)		—			—			(1,262	)		(0.02	)
Change in fair value of equity investment		(184	)		—			—			—
Adjusted net income attributable to common shareholders	$	64,785		$	1.05		$	57,799		$	0.91
Weighted average diluted shares outstanding					61,489						63,207

(1) Reflects amounts attributable tonon-controlling interests.

12

Return on Invested Capital:

Return on Invested Capital (“ROIC”) is not defined under U.S. generally accepted accounting principles. Therefore, ROIC should not be considered a substitute for other measures prepared in accordance with U.S. GAAP and may not be comparable to similarly titled measures used by other companies. The Company defines ROIC as earnings before interest after taxes (beforenon-controlling interests) divided by total invested capital (total equity plus total debt less goodwill and other intangible assets). The Company believes ROIC is meaningful to investors as it focuses on shareholder value creation. A reconciliation of ROIC is presented in the table below:

	Twelve Months Ended December 31,
	2019			2018
Income from operations	$	77,278		$	45,176
Provision for income taxes		(16,768	)		(9,518	)
EBIAT	$	60,510		$	35,658
Total shareholders’ equity	$	637,187		$	592,918
Total bank indebtedness		18,229			37,753
Less: Goodwill		39,027			39,027
Less: Other intangible assets		30,347			34,095
Total Invested Capital	$	586,042		$	557,549
Return on Invested Capital(Non-GAAP measure)		10.33	%		6.40	%

Free Cash Flow:

Free cash flow is defined as cash provided by operating activities minus cash used in investing activities (from the consolidated statements of cash flows). Cash provided by operating activities consist of net income, plus depreciation and amortization, plus the change in deferred income taxes, plus othernon-cash items, plus changes in working capital, less investment in film assets, plus other changes in operating assets and liabilities. Cash used in investing activities includes capital expenditures, acquisitions and other cash used in investing activities. Management views free cash flow, anon-GAAP measure, as a measure of the Company’safter-tax cash flow available to reduce debt, add to cash balances, and fund other financing activities. A reconciliation of cash provided by operating activities to free cash flow is presented in the table below:

	Three Months Ended December 31, 2019			12 Months Ended December 31, 2019
Net cash provided by operating activities	$	23,119		$	90,376
Net cash used in investing activities		(12,340	)		(65,994	)
Free cash flow	$	10,779		$	24,382

13