IMAX - Earnings call transcript Q4 2018

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Rich Gelfond

Thanks, Mike, and good afternoon, everyone. We believe our achievements over the past 18 months have set the stage for IMAX several blockbuster year in 2019. The story is quite simple. Beginning in 2017, we made a series of strategic and tactical decisions to improve the performance of our business from top to bottom. We committed to increasing the differentiation of the IMAX experience, more effectively marketing the IMAX brand and tackling our challenges in China.

box of in started XXXX, our the and working. by part early these evidenced office XXXX success into As initiatives have

is color I’d on outlook like While done, kick-off then the as work move still providing to four start committed, some for business by team and additional we Year. there positive optimistic these energized XXXX. to New to the our call and on is the be initiatives

initial we with we are first our extremely this First, reactions IMAX systems. the continued growing from of signed partners with to year. replaced XXX over our their and launch, -- for XX months the exhibitor happy technology agreements In commitment just laser

and the just locations. some update. Many existing activity an are We and exhibitors AMC, represent largest this more IMAX than the experience. June installed also laser new systems Driving of XX the these signings Pathé. between entirely Cineworld consumer technology world, of of upgraded including IMAX represent across and They December

example, including signings, an IMAX the in-theater exhibitor ways new entirely partners are experience, creating For of seating, branding. our majority and entry new these in

Next, marketing.

films. the unique XX% experience of that IP we've a 'XX. a increasingly campaign leverage expect they educate with our around the embrace seeing the which we year the key feature that films was studios IMAX As launched entertainment a IMAX And consumers much campaign to can new our has in blockbusters, in objective Seeing films IMAX favorite important Bros our on last the year, made this brand campaigns in their in how more consumers we see progress encouraged such as and effectively IMAX the and become IMAX anticipated blue key recall, ecosystem. Reflecting brand we're you reinvigorating blue the and experience slate DNA, marketing to that most their And encouraging blockbuster new increase we is position may of when more across allow with with we on mind, frame, more IMAX. the it of and some continue differentiation to in benefits With Disney the iconic the help leverage underscore you Warner frame. as can ahead, their image and of titles see to of blockbuster illustrate the experience helps is DNA us IMAX.

our slate, language China refined in strategy third China. million, Now, platforms XX% in ticketing working key and the we brand ever box programming year, in let launching highest in increased Last closely office grossing $XXX to campaign. films I last year pleased our year our into with more to China new local more China. introducing me turn our key am XXXX, initiative by note to

momentum box our into continued early 'XX. importantly, office months More the of has

During the a New over $XX to of box outperformed compared the significantly which X% recent Chinese New the Year. million, office the holiday XX% Year, We've XXXX we just Chinese industry, period. grew generated increase

box office to Hollywood film regularly the office Year Chinese film IMAX the $XX that that experienced for the On of a Our become is of and roughly all up Infinity carryover the blockbusters War. XXXX. The million Wandering our box over New local time, New screens It see generated box Avengers period. of film. decline you highest Moreover, was over the an note, XX% XXXX has to office, total increased film encouraging local indexing XX% performance accounted and IMAX China to holiday eclipsing of Earth, in and attendance particularly we over has on XX%. grossing performance period when compared that encouraging our XX% compared consider is Year Chinese language industry Chinese to holiday released IMAX the

of high production box is additional the to and a that's local XX% tailored projects two value changer game this Hollywood at production season spur believe this and films, for and level. the is future our film the office it in year, IMAX, Given science-fiction experience we started. months is the will up already China in the through Overall, blockbuster first just almost of getting

online. provided and and data of more Before point tickets currently behavior consumer, I it platform This to can other currently well. as is CRM Maoyan. in and leveraged public effectively online would move be on, In market great more we discussing in only also with sold largest sold alliances ticketing to Maoyan is roughly discussions consider the touch like when and of content in China to quarter, does are Maoyan's in with which all analytics that tickets on accounting mention consumer in valuable the for offering XX% consumers. Maoyan are strategic the I recent all XX% China movie future second participated to we the impressive you a country. China, in platform launching Not Maoyan collects strategic trends,

in year. a forward, Chinese filled we our New for Chinese And our blockbuster Looking calendar around recent the world. the are an in results addition of the start counter-balance Year, remainder anticipate to rest important strong to seasonality of the

in was Avengers highly season of exclusive is showing one year which in blockbuster data tracking with IMAX Spider-Man, course, cameras of the will the is Avatar. the X strong and launch a will X, Top films of And We to we Endgame launch launch entirely kick-off the to leverage anticipated and which Woman looking filmed Episode course, name Story Avengers, will April. and the of very IMAX Marvel X see IMAX of Wonder will see marketing Hollywood March, with presales materials. Gun, of Wars Star key then Lion few. and course, Chapter the Captain blockbusters, XXXX, the Later, of and X, putting Toy of screens most It King,

action-packed mix the initiatives is of is superhero last the increased drive to slate through our healthy should initiative slate this We I'd like titles, the about a for also family live-action One believe with talked upcoming and diversity positive this IMAX. animated call, IMAX coupled on global a films traffic we've Enhanced. touch network. on films. Overall on foot is There

know, many sets business, of sounds the approving you consumer streaming television launched includes aimed As on at electronics premium entertainment, quality in-home the of systems. we and licensing which

the program. into Enhanced bring competencies, the we existing exciting for IMAX It several potential leverages Sony scale. in recently and a on of now and United partners is when two were to Fandango since Sound with to introduced our partners, has launch we've Tencent home on the several partners, additional technology initiative and and prominent just our launched the reasons. IMAX and larger starting the put we April.

the additional the provide who as introduce program. updates will finally, more to Megan IMAX as this I We we of President initiative Colligan Entertainment. us the on brings to partners welcome And Megan services. has industry media extensive in consulted joins team, into experience the blockbuster and filmmakers, has studios, including and most Transformers of has Mission streaming Megan and deep of space with launch for Amazon. major a global number recently and actors companies, relationships entertainment and spearheaded franchises, including Impossible like

and around the exciting mentioned going encouraged outlook our to Overall, our our network forged with more I financial the dollars to a position last look We our to I'm believe increased perspective. strategic better have further I forward her office XXXX. for to fresh through are continue the the We with earnings relationships the brand IMAX of to other on team new optimistic business. world. and filmmakers in us years technology, achievements am that, it exhibitors, XXXX drive strong stakeholders and this call by year, differentiated the power believe capitalize performance on we box increase studios, awareness and Patrick. our will and With starting over and of operating our ahead, turn developments on to excited the

Patrick McClymont

Thanks, Rich, good and everyone. afternoon,

the and producing is into our the diving XXXX, for how our recent and discuss that we growth, return. about Before trending. are to now business; matter across metrics. financial margin of any of these and performance IMAX results in each where things results I'd like is There assessing outlook improving business quality three think

and of growth core flat mark our and campaign strategy. Box refining launching brand We inflection programming achieved following our XXXX period growth, our X% this Inhumans. the point business, focusing grew excluding for office an increased new revenue by First performance. the on year solid of X%

of We to bear strategies this expect year. slate fruit these films further promise as capitalize on our we

While not growing framework office on as are a in the metric we guidance range. estimate providing we this for box single-digit mid-to-high XXXX,

the to our margins, EBITDA Inhumans project, focus the Next I'd comparisons of impact makes which difficult. like margin, excluding adjusted on

adjusted Our XX.X%. in at XXXX peaked EBITDA margin

as cost single-digit as refocused return growing investments XXXX, through made businesses. expect were and we XXXX and and in were achieve XXXX network we if expanded our the in and we XXXX, office box core pursuing to margins our our This would growth, on achieved For restructuring to mid new levels business. the important inflection in points compressed Adjusted XXXX underwent margins to margins year, EBITDA -to-high XXXX. again we in XXXX. EBITDA

minority returns, allows ownership of we look public shareholders returns This of enterprise regardless us for managing Finally returns are the China the assess interest to before the impact we of business. structure. the like a and at to whole

business. and top metric margins in in XXXX peaked margin compressed spend inflection return discussed we prior point the including for on the and was challenges Subsequently, as growth our previously ROIC this new due businesses. XXXX. Our reduced to grew, new and investments, expanded profile line

our return evidence working excess positive this will spend in initiatives continue are that to generate on gross we are year XXXX, metrics XX%. ROIC discipline all capital Overall, look is of margin clear We lines. in to we as solidly important our and trend our consolidated as expect the

our We accelerate will continue these continue should to are we confident initiatives. XXXX against execute and trends improvement in as these return

diverse I'd full-year, activity, Scandinavia year, XXX India, which our fourth presentation. XXX to signs and for XX our Japan, our for sales like for such for new were of as our Starting our on and in spending results Overall, nature, two France. included the begin of agreements new upgrades. with earnings signings theaters. were China, signings Turning X screens to markets team the Germany, Slide delivered in quarter key This

new in XX the fourth quarter. installed also IMAX We systems

installed XXX we year, systems, systems. were the which new of XXX for For

we to IMAX In these new upgraded installations, addition systems to laser. with XX

feature laser experience. As the around IMAX now with new world of year-end, our XX theaters

million quarter financial resulting for $XXX our million, begin results, on X. fourth to the Turning revenue Total in full-year. which $XXX in the was Slide

include As our million of the approximately XXXX. revenue television $XX which series, in Inhumans results reminder, XXXX contributed a

XXXX Inhumans, year. last compared to were Excluding X% revenues in up

resulted the note, Inhumans up During in gross million of generated in points basis XXXX. to of Please gross of margin we relevant which margin rate, that comparison XXXX. to however, the $XXX gross year-on-year the compared due less XX.X% our also XXX is impact profit, year, negative approximately

which million noisy, compared Excluding new last up a business, X.X is profit was to year. gross

as SG&A was essentially with R&D in define previous we on line Moving which plus less-stock to last year, expenses, operating guidance. flat to compensation

In third that this fact, the same you that OpEx, the million. which our impressive year XX% compensation nearly network marks with increased flat commercial consider is over consecutive for $XX.X SG&A has stock-based related was period. when critically year

income recognized This adjusted the adjusted we XX%. at primarily $XX.X for $XXX.X of in EBITDA EBITDA Additionally, the business restructuring $XXX to for December, and $X.XX share. quarter in compares came filed exclude as margin back million, producing legal million. EBITDA EBITDA This VR These stock to share exit $XX.X adjusted in of or we in XX%. which metrics adjusted of and XXXX XXXX costs our full-year compensation, and XX $X.XX of the and EBITDA in Adjusted charges was X-K million per closure Net disclosed EBITDA margins back adjusted adds previously million discussed income, XXXX the and charges, of adjusted or million per of based resulted of restructuring while margins XX%. related net came $X from impact to the at quarter million Inhumans. onetime EBITDA

million For while or $X.XX income $XX or share the year, adjusted net million net was per income share. $XX $X.XX per was

increased income As Rich adjusted highlighted, net share to compared XX% per last year.

we free flow the million. flow, generation to our free During cash the cash bringing for also year generated of million $XX quarter, $XX

line year new XXX this, posted to roughly like Beginning $XX This the which the anticipate install site Kong At million. totaling million. Web installations, fourth of the now to an conclusion and full-year quarter, systems totaling be the $XX then repurchase Of to between retired this roughly I'd XXXX, million will the we upgrades, in X.X China also X.X repurchased price at XXX we shares $X.X in $XX.XX XXXX. level, the repurchased dollars. started million average provide we we guidance Hong in repurchased we IMAX and call. million to for systems and X.X to converts with where for expect IR XXXX XXX during China of to with shares, million During theaters XXX totaling XXXX. installing and

weighted expect installations back half. We the our historic and to follow the be patterns year towards to for

four For installations the we QX first site quarter, however, had less we in expect last that sale year.

includes year, to full expect year-end we solid new in OpEx, we theaters to ability laser the robust to plus laser we our compensations essentially fourth by and mind, ahead. OpEx. and backlog of reduce drive healthy the this SG&A rollout IMAX expect consecutive of earnings look OpEx upgrade more for XXX be be XXXX. approximately mark containment less a Between which expect our will to additional new provides in in compared the we year to XXXX. maintain focused cost to would and XX Moreover, the This costs to remain For service flat on transparency years screens stock With to R&D, XXXX. the flat With regards to actively with total in continue year, into through upgrades, for P&L. opportunities theaters systems our

business to be we the Wrapping-up XXXX. XXXX not expect outlook, $XX.X compensation million year. the P&L expected impact on side, stock the related around On any based for in is do material SG&A the new

with past full-year our have in anticipate year. year. To very close, be are rate also line the We last witnessed effective pleased to tax the we over we momentum positive approximately with

Year, robust the are in pleased XXXX I'll already Q&A. kicked-off. turn coming the a looking with how on we us that, Our strong and XXXX, what Chinese out to New for position has the the with accomplishments with year is like capitalize to over call With strategically results operator

Operator

MKM Thank take with you first Partners. [Operator our Instructions]. from Handler We'll question Eric

Eric Handler

as much could in is that signings wondering are a the how this that the the the bit where the seeing talk how months. now? seeing to am or of rest could signings are installations signings world. is right your China pace much you backlog it eight is driven, be you're occur going or as where the I you -- far now on about And Where year maybe most next Rich, little if most right occurring of busiest, your of

Rich Gelfond

about the signings first talk Patrick I'll into then question. So, stallion and go in will

On the remains signings with last I'd moment, the activity, say years. at consistent strong the very several almost

strong. is coming on. activity. seen see Japan a the of players on very the And amount in lot fruition concentrated activity is significant in in we've countries in very lot I We just of there going could our to good. next Asian have And East is still China a couple lot of world. a It's Korea Other of like player, going Middle where we of from not things months. PSAs have a of one looking there the some good still highest pretty that

missing going As I on. about anything things is trying said, to still think Europe Western

before, the around seen we've gestalt what consistent So but it. Patrick? same

Patrick McClymont

in XXXX saw consistent to it up the XXX installations, what XX to be in theaters to like and XXX XX with for new will theaters the will we the China be On XXXX. looks balance

Eric Handler

I just hybrid? curious how your case be do in expect you Patrick are you're And for very just it of there? weighted was what using at missed cost I much street to analysis. capital think sales, much How And JV, interesting then average how that much looking ROIC you And it.

Patrick McClymont

first. second the answer I Well,

straight need calculate capital position. any don’t just I to ROIC, the that, ROIC On cost it's the of

when wanted XX% we path We've about for about In deploying to we plus about that we think terms capital on be ROIC. a at theaters I of deploying on how something, said JV. we the to to talked we achieving consistently want see think we've think capital, look projects, as example,

Rich Gelfond

guidance giving we've and different the around unfold what And not in consistent combination upgrades won't seen we the new speaking, of should we the mix that. historically. or this providing mix a a mix, and specific got this between are guidance disclosure be terms be how it types. specific We've then will But a with got for we've year. between year Generally on

Operator

from Thank you. JPMorgan. Alexia next We'll our take question with Quadrani

Unidentified Analyst

in This is for David Alexia.

mid-to-high box of gave just year? the there the cadence guidance additional region single-digit regarding office through around on in we as go by you growth. color can any Is or any can provide terms your breakdown for that outlook Just you

Rich Gelfond

movies before predicting said that weather. we the predicting Again, like is

So, regions really to started to before think specific blockbuster. I new to first Hollywood as or XX% difficult be that's China it's any very said, open not. But and is our two what up as months the I over you business, for

Wars. So that's I believe the And on was talking growth. the we And I March the office that. things significant best numbers, Lion look I movies quite strong. China one on drive some that it than is an this Marvel about Captain is same again opening Avengers, one are you King has for think those said, area Dumbo, there. an you'll and ending day numbers mean, is expect I being say. And I tracking Aladin, a than Xth, interesting in even to effect think think global see day one Avengers set growth Star in then sequel, rather the Spider-Man, box at would of are in wise years, global a about the basis, some better Wars is. presales, I global people I should as and Star on of and a actually and up the see

quite box these actually and So it of seen movies, we're pinpointed we but from haven't footage feeling the bullish a office. by we've number region about

Unidentified Analyst

how Thanks. only local China's significance experience you Wandering also film just the What of you terms but maker? the mean IMAX movie success discuss wider the consumers maybe just this then Earth. not And is can of on in view

Rich Gelfond

back, around China's have when When office step you you take billion last $X box think total look. was I year. a to So

when means movies they model that within the So effects, better they values. that production can better afford better make, special ecosystem out could they acting,

first that's thing to are really movies And kinds like that of people higher the so in IMAX the quality productions. see

The now. so really until other thing China genre, new worked is Sci-Fi hasn’t in it's a

it to IMAX but well more fact for So I better, in wondering like genres bodes you've into effect doing tier go higher cities, have money very think think freedom cities box lower take more and tier not one quality when have only us. that you have the movie into the for market office that you I to on in is and

Operator

Thank Vasily Cannonball question Research. We'll from Karasyov take next you. with our

Vasily Karasyov

to wanted expectations. the question a ask on I follow-up office box

If the today think quarter, where Which you were the China, other first the and be second to half what out of you point concentrated. or would area geography be would but risk most is if time year, U.S. period, of the it international? it year, half not

Rich Gelfond

really and there's Oscars. I of our there's think of I that saw scale risk is really overstate film riskiest But and don’t first But the QX scope commercials if not to, I because that movies. just open Lion global is no the I the I movie I'm terrific. the on because Endgame work such year back. Avengers the it, pretending risk-free to back one. to big with are don’t recent predict But to movies with. a is mean. as I know we're in thing the was so there don't see QX There much remember, slate. think the haven't much we King. Captain think a a risk this way a the blockbuster in don't titles far, don’t in and cameras, Again, in And year is want I this across risk involved Marvel too a back you

lot in As is. don't series, just where last risk Star I see the the a said and of I that, Wars because it's

looks a guess to kinds the But other titles business I that season work out there thing out, China, what the good again is always pretty wrong. that filmed in because part we've could these mention harder slate movie to regions. be which there's also. think I was I'm play think being I carry movies a released over should but summer I there over you predict some cameras. again going comment with are of across the is in IMAX China the is And in

I much about So not worried now. just right

Operator

Thank you. from Steven with Frankel We'll question take Dougherty. our next

Steven Frankel

the have or you China specific the you to you learned clearly were could to these think to either changes? tweaks from tactics paid-off. North Have that These world China of do rest apply really that America, the anything or

Rich Gelfond

world. way there I is analytics. that's to the rest is we apply in and work do hopeful in intend that as think And one say. audiences marketing different targeting marketing in to the well in the to there I'm we're more targeted targeted available. the that China. of think Because areas would data strategically and one I be and rest China. thing going ways We're of of also certainly that identify the do more more we Well, the that's efforts as in definitely world could to China, I That platforms would of world

like One you of movie movies already Captain were marketing can't start us dated of China is dated. is day the But day go recent some that Marvel until a in with China. and to in it's them problems

earlier from been start we apply lessons a that you more So any the time there Patrick think I could little China could we spending has marketing than than have. have before. Are abroad? we could efforts other

Patrick McClymont

the for we've the had for that time. Bohemian with it strong particularly that displayed And concept lot of elsewhere in certain flexibility the performance year great end from at We you year of the we market movies is used a where with Well, saw of reintroduced that example a the also and but Japan. films the had we beginning programming Rhapsody in lags, world. in period

in market. don't need nimble I being us it. we always to can China every We do approach think in the of has taught that nimble be

exhibitor deliver effective during flexibility. to value periods point them it these blockbusters when through our And more that an certain need having we that but we've work now is went to has at strategy. will big got to do for We Rich that partners can are

Steven Frankel

programs the has what list or qualitative of your on subscription impact on been commentary general in on the And business? your, maybe A some

Rich Gelfond

America movies. were the for U.S. up fact North seen in we’ve which around our XX. the as our Well, indexing of of of for is many traditionally indexing XX% the office, And matter about go box blockbuster Alita, was we

of seen up. go throughout number we've So movies, it the last

qualitative So say. that will thing be I one would

Theater. Theater IMAX more because me data I don't a will result a has with I and on I some they'll shown also know be can have think shared programs But IMAX in and to lot overtime, brings in as going the I to if of few public it AMC different the more a these forms, Europe them A list our people people the programs think benefit. or of are slightly see of more subscription it's exhibitors in conference not, ask that their program. think call you many days. it's into more you

Steven Frankel

have by And I what PSAs. trying PSAs Could that to to the out quarter? we for have you finish you XXXX. were consistency but out talked state just know get given region about traditionally from for away the

Patrick McClymont

from away we all Steve, that reasons growing about. it's It's output. think and how moved business. how not for we our business about managing simply have the an It's about think our that not we we've talked

deploying possible if we are forward capital. on invested about much a box much as as grow, it's return and And basis are we office driving network through the all as focused on We revenue. on as capital, very go

So focused that's where we were on.

in that's on. available we data focused out that historical haven't not model PSAs. there, we There's So it's but something our away from moved

Steven Frankel

one last then one. maybe And

the of time. change hybrid, policy? you or there the maybe JV change with more were China, being every in with change material has installed opposed of place toward to signed? in that to a a the part new customer starting pushing particular the what's mix been sale this As proactive being Has How a maybe in going what's be as

Rich Gelfond

hybrids numbers, trying get partly have it's tier And deals as has in towards X of the it especially cities. percentage been deals. area, Yes, sales that we that more JVs move fingertips. do. my the we've as hybrids sale away for don't and because definitely JVs changed. X the we the in discerning it data more at in but I But here decrease number and from and below I'm to the a in and tier of successful increasing we're and But

Operator

We'll Beynon our you. next with take question from Macquarie. Chad Thank

Chad Beynon

touched you are a now. signings about seeing no on us is so what are waiting and the so from your far? partners if a pricing on Can you the see And that they the has could talk laser, that's they've or in standpoint market pricing, everything if out First, Thanks. approach one or visitation demand just congrats remind you anything for lasers the the just adjusted there? initial have to

Rich Gelfond

too really It's have early months. we actually in signed said it's By remarks. in my months, misspoke I to say. eight the I deals way XXX XX

all year. in were most that. The clarify and did North to America, And we wanted it’s too open XX just of fourth those I really XX But So early. quarter. number in North in had the America we only

mean to So I early tell. just too it’s just

Chad Beynon

Is adjustment there go any Rich… -- on ahead economics the

Rich Gelfond

an was there adjustment Yes, the on economic.

mean higher what when a use to JVs, take rate it's line have the I we or month's say generally is. weeks data three you a On just But data can't trend a laser.

again, let tell But know is. tell or our especially next what film-by-film is to we would you But a that. it's hesitate a year when so it's over I better. what to So will the the have can small attribute I we been. little you impact such the it number you indexing see can't attendance

Patrick McClymont

And people on very data, exhibitor actual and it. positive positive. are the who've through overwhelmingly the partners certainly absolutely consumer surveys, exit end it then There's experience is experienced going

And so far the reviews are very strong.

Chad Beynon

haven't streaming a talking about out the what My some of your carried quarter, platforms you around there there. platforms. do follow-up Last business update any for is heard put streaming and can we

and you there if should think or beyond? how views, is to have wondering still we and anything that XXXX about So in announce those if

Rich Gelfond

been the in in have and I'm the streaming LA Megan and meeting platforms, with I most of last So and month updating our discussions.

be we alternative think coming. at see I showing to that platforms, and Megan which could an what difference and content, we degrees the streaming is do forms different the strategy that different of of for with that business of of still include up might ways figuring we've out them And is, were tee that standard not The would of what in view started just movie. the lot positive somewhat reaction that. expansive they their has on a only a

Operator

[Operator question Instructions] with Hickey Company. our We'll take from Benchmark Mike next

Mike Hickey

and Patrick, guys. China. in Great lot Rich, year congrats great of success quarter, a definitely,

this. big seems you've Sorry of seems are miss But before, It methodology the you changes taking it like films like that to the in if now. key selection. I ones right will to you film your it specific made you missed

So difference approach? curious there's in your if any

Rich Gelfond

the Yes, during in time. is programming three we're the at a China holiday films period, difference specifically

a broader off. changed highest And the consumers Wandering So we Chinese had it the rate Wandering and comes Maoyan, Earth, alliance New earlier, the one as number movie of them. in our then Year, three day it one of to this rating. far changed develop the by on Wandering most and And Earth over first which we are didn’t platform, films, day. on the it trying the movie ticketing with. exhibitors our open the The And out. But had mentioned which even we was Earth as took schedule of I

way one our it and approach. was about of that So going changing

China get supplement way I with another upfront in think more going data testing we we're little involved got about reason and data the try is to help think we Maoyan it. bit to a

And know China, will I been if of have but think at overtime, And with relationships I discussions that's it working she'll a for joined, just And wants out. North think our process such Megan tweak that you that. see involved we pretty good looking I those studio and are well in think outside projects consistent. be years we'll think with America get us. and then partners she largely I as the

Mike Hickey

The me an you film-making one to progress. last I from think is your had into the get China cameras made effort

Just curious how for you? evolving that's

Rich Gelfond

IMAX in increase a used amount meet of releasing to filmmakers. of first amount some this Well, is it's gone going we've pretty pretty well. summer. the us. lot And films, of And going been people. that's film over We're footage so to IMAX a with for mid-March we're trying in DNA that’s Megan fair well our to talking

Patrick McClymont

there are that's is yet in we And anticipate been sometime that that. cameras year. The announcing this XXX that but been announced not have film called our others is then announced

So are to there. progress starting make we over

Operator

the the to I portion Gelfond you. now for closing call. to concludes Q&A the turn remarks. over call Thank Rich That like of

Rich Gelfond

my laser Yes, XXXX, a noticed to we marketing spend responded with raised China launching game. opening we and the particularly trends, I our our follow-up product. more We differentiation raised wanted marketing strategy at on comments. of and In some

hold that and hold, we a little And top things. took in as in film expansion think lot seen slate have organization of of IMAX revenue not Patrick operator. to you I on Overall, about we're as say And in growth really the place. qualitatively, margin a think good layer and as I really good pumped a 'XX. on while said, different you take that saw but when And thanks, would And XXXX are the 'XX. just I things. we we feel

Operator

today's concludes This gentlemen. and ladies teleconference. you, Thank

You may now disconnect.

Rich Gelfond	Chief Executive Officer
Patrick McClymont	Chief Financial Officer
Eric Handler	MKM Partners
Vasily Karasyov	Cannonball Research
Steven Frankel	Dougherty
Chad Beynon	Macquarie
Mike Hickey	Benchmark Company
[Call Started Abruptly] …including today's call have been posted in the Investor Relations section of our Web site. At the conclusion of this call	our historical Excel model and guidance information would be posted to Web site as well.
I'd like to remind you of the following information regarding forward-looking statements. Our comments and answers to your questions on this call	as well as the accompanying slide deck may include statements that are forward-looking and that they pertain to future results or outcomes. Actual future results or occurrences may differ materially from these forward-looking statements. Please refer to our SEC filing for a more detailed discussion of some of the factors that could affect our future results and outcomes.
During today's call	references may be made to certain non-GAAP financial measures as defined by Regulation G of the Securities and Exchange Commission. Discussion of management's use of these measures - their definition as well as reconciliations for such measures - including adjusted net income - adjusted EPS and adjusted EBITDA as defined by our credit facility - are contained in this afternoon's press release.
With that	let me now turn the call over to Rich Gelfond.

IMAX (IMAX) 26 Feb 192018 Q4 Earnings call transcript