IMAX CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
For the purpose of computing the ratios of earnings to fixed charges,
"earnings" consist of earnings (loss) from continuing operations before income
taxes and minority interest, loss (income) from equity-accounted investees,
capitalized interest, amortization of capitalized interest and fixed charges.
"Fixed charges" consist of interest expense, amortization of expenses related to
indebtedness (which are included in interest expense), capitalized interest and
an estimate of the interest within rental expense, deemed to be one-third of
rental expense. Due to losses incurred by IMAX Corporation, the ratio coverage
in certain years is less than 1:1. IMAX Corporation would have had to generate
additional earnings of $39.0 million in 2000, $62.7 million in 2001 and $2.6
million in 2003 to achieve a ratio of 1:1 in those periods.
YEARS ENDED DECEMBER 31,
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1999 2000 2001 2002 2003
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(IN THOUSANDS EXCEPT RATIO DATA)
Earnings (loss) from continuing operations before income
taxes and minority interest.............................. $44,864 $(39,311) $(63,988) $11,168 $ (168)
Loss (income) from equity-accounted investees.............. 683 4,811 (73) (283) (2,496)
Capitalized interest....................................... (754) (1,393) (511) -- --
Amortization of capitalized interest....................... 44 500 1,853 26 26
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44,837 (35,393) (62,719) 10,911 (2,638)
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Fixed Charges:
Interest expense......................................... 21,860 21,961 22,020 17,564 15,856
Capitalized interest..................................... 754 1,393 511 -- --
Estimate of the interest within rental expense........... 822 1,633 1,711 1,168 1,321
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Total fixed charges...................................... 23,436 24,987 24,242 18,732 17,177
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Earnings................................................... $68,273 $(10,406) $(38,477) $29,643 $14,539
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Ratio of earnings to fixed charges......................... 2.91x -- -- 1.58x --