IMAX - Earnings call transcript Q2 2021

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Operator

Good day, and welcome to the IMAX Corporation Second Quarter 2021 Earnings Conference Call. Today’s conference is being recorded. At this time, all lines are on mute. There will be a Q&A session after prepared comments. At this time, I would like to turn the conference over to Mr. Investor of Head Harris, Relations. Brett sir. Please go ahead,

Brett Harriss

you Thank today us Thank earnings you, good afternoon, and for on call. joining conference everybody. today’s quarter second

shortly are Lister, Officer; call Gelfond, Megan Interim Colligan, the today Entertainment; review Officer. financial On and IMAX Rob to A is after be its entirety in Legal also Chief us joining Financial Chief Joe webcast will Officer, and call. results Executive webcast today. our the being replay website. are President, made the Sparacio, available Chief our Today’s conference the Rich call of on

to Any update events result that as of make we otherwise. information, statements on our future detailed these or outcomes. the our and and new text a These they may are obligation our would cause our Please actual well. could information to Excel the or forward-looking accompanying Forward-Looking to some of Statements. and of on of posted be as outcomes. you today, statements full of call assumptions include future the results results future I based we that of addition, call model differ. release discussion been could SEC to slide occurrences forward-looking Investor statements press the regarding quarter remind and to website. that and risks that uncertainties on refer the At In the will filings our undertake as future presentation pertain posted forward-looking historical this affect our for have well occur of call, to following more to Today’s statements results second or subject are that the no deck section earnings website as conclusion a Relations slide as like factors this the to of are

and well made use the as of of these non-GAAP Discussion contained these release that, to as During morning’s may page financial adjusted measures definition non-GAAP measures Richard the net EBITDA to on press by today’s certain financial measures. credit and me adjusted as measures call, website including our be adjusted EPS to a With references reconciliation call imax.com. of now the are materials, management’s facility, defined over are our turn Gelfond. Rich. earnings in available at Investor let Relations of which this our and Mr. loss,

Richard Gelfond

and you all Brett, for us everyone. Thanks, afternoon, Thank today. joining good

film With steadily the and is global leading to we of signs theaters improvement. returning to office a encouraging blockbusters a of of is show flood, growing reopens. to the Hollywood reopening, trickle believe acceleration immediately Indeed, recovery the the poised global audience blockbuster pipeline the IMAX benefit and as to Hollywood share releases the of world market industry, from box take uniquely from positioned continues upcoming

of this. clearly delivered for pandemic results demonstrate quarters, Hollywood the the EBITDA. of asset-light Our margins EPS quarter its slate delivered We of business. our The quarter era a prior high-margin slightly licensing third better positive company best only adjusted nature again our the demonstrating consecutive than gross second and despite

thanks earned office initial Our network quarter. million-plus $XXX to surpassing global in $XXX consecutive box performance office, box second domestic our projections, for million better-than-expected

since demonstrating drove we total we eclipsed the felt full growth language how And XXXX, XXXX EBITDA of the brunt first second margins office of year-over-year for gross films. box and we the our revenue, quarter far We already pandemic. local easily in come quarter have quarterly the have

with slate releases accelerate are not only continue these positive theatrical full exclusive a later We of year. will confident this but trends

only diversified global blockbuster worldwide. out-of-home XX have We entertainment manage We a COVID. effectively a for with territories countries yielded unique through advantages across the footprint to and platform built

Even and world filmmakers ripe loved brand revenue a and and and window film a release into initiatives. evolving an business critical launch Entertainment asset-light our by Home have windows event draw unto we are and global took business premium is in-demand distribution opportunities, for and flexible audiences studios itself, Enhanced the IMAX IMAX new including model, the models We of moviegoers shifting to ecosystem. drive in theaters, a proven to worldwide,

with beginning pandemic. in stronger many finally other key momentum stabilize than Now at and during forward COVID see markets, receding industry the any the are we to establish time

our our expand content result, diversify a opportunity see grow and further is As network, fast well evolve our movie network, demand accelerating lean strong on of to IMAX experience, future as positioned would the to the reopening pipeline. update Today, and global business. the global increased audience the windows into IMAX signs and finally, and for content provide blockbusterization of strategic portfolio and an for models of IMAX we and I a like why our diversify distribution

era. the of China, of are capacity virtually capacity. with is in availability month. First, already network Widow and The is ease open XX% markets around and domestic our open at limitations network up In IMAX at open, global about capacity. earlier XXX% now theaters about excluding more open, this than and see let’s are and international theaters continue theaters over network. the XX% look operating XX% Black The XX% China, at to pandemic in open And launch the any time current state domestic at our about internationally, higher the XX% our

the space Cannes, events significantly, interest multiplex already the digital and the we in our gallery in on and office XXX differentiated continue Film on art add significant their premier and of The the we theater month, This Festival. Cannes a systems We prestige world, nearly first our reinvigorate as theater including to advanced France to And to brand-new the as ship ever enhance our look location have is premium live network businesses with that IMAX the locations and many potential to further offer signed Mediterranean. installed pandemic box exhibitors offering. screening hosted opened state-of-the-art international a both around XX a locations during Cannes brand. drawing

biggest a arena the hockey measuring the Leonberg, than in will currently in in Germany, the theaters screen wider Ontario, screen world before are Cannes XX seat installing IMAX XXX. have IMAX marketplace at it with and look transferred add month to shipping featured of high cinemas be Los and acquired the fur Oaks, AMC locations. paint XX,XXX ownership, meters We including opportunities next And which theaters newly We in iconic in IMAX across Atlantic. and Boeing several a the our Angeles Sherman recently marquee Regal that in reopened and reopen and Grove the Americana AMC has which the to already continue Regal. needed for Both will

seen audience considerable for world. currently comfort remarkably Middle box network of same East. expect the in the just in blockbuster stands have theaters recedes Not for returning encouraging demonstrate reopening, international with experience. which XXX only that The COVID IMAX it level are by theaters regain room a the total worldwide our we to to the is the and We and the Asia grow continues domestic market moviegoers we theaters. X,XXX office, of is strong, demand unrivaled Perhaps under the theaters continue And to demand clamoring is their quarter growth and more see pent-up around to we to continue the as most second addressable trend global the a moviegoers many theaters. markets at world around see X,XXX driven for where backlog

releases Hollywood continue the million has performed giving worldwide, to significant up Max, is million office. a and pandemic Tenco to designed office its the to versus an test time. place it first $XXX $XXX exclusive domestic the opening global release IMAX to $XX more IMAX on average theatrical a FX season Despite domestic box film, screen box day-to-day delivered for far, to the window. capacity including at big maximize exclusive theatrical New to on place era. office per opening opened what every expected Cannes also bold the thanks Widow - indexing has a HBO box pre-pandemic best pass than quiet so at globally, pre-COVID best in expectations most with million despite weekend and And of delivering the rollout the at the limitations during was summer exceeded opening par in levels, Black recently, million block release XXX vastly and

have is be a a we direction. office gradual light said, that it will the of incremental faucet, a clear not switch, box but As process, we the right are recovery headed in

event that the experimented around nature as a as enhances hybrid exclusive of IMAX are increases exclusive many theatrical most have it role studios benefits strategies to curator blockbusters, the with IMAX’s for an theatrical and further of Additionally, penpoll. for This recommitting XX-day blockbuster. of release coalescing releases release window

clamoring like with to advantage of shooting preview generally the expanded for we filmmakers cameras, two in FX our aspect well last or IMAX exclusive and ratio whether that in preview compressed for locations the screen including or are make demand. weeks are hosted and events window, June exclusive Given most, we at positioned the is Dominion for World only their exclusive it week. or select Jurassic films the universal network Studios IMAX take our of creating that one to most secure play

entire the franchise IP have demand IMAX among helps in the role this past kind and streaming theatrical is ecosystem of now. growing year, with All companies the that from underscored launching pure-play a ultimately release experimentation studios has of right the Also, along the driving irreplaceable releases drive seen and movie in of experience. we the for market share properties,

For attention of in the of At IMAX theatrical no at create moments. there all event the culture the its franchise value, defining commands revenue yet is of is film to like all culture downstream of a blockbuster the the day, release. a creates. and global franchise has streaming vanguard these that blockbuster film And entertainment still end

on releases the pushing as XXXX films. is slate conservative into office is XXXX. the blockbuster is September one real season. have and office accelerating Spider-Man the from for Venom, for the dates still a table a that bankable is the with business pipeline changing has with major release demonstrated Bond, the cadence The during of roughly Shanqi kicks a the back the a ready big content Dune, the wider strong though a Papon or studios many holding blockbuster releases Certainly, as every said, Right Xrd, rebound releases on fall at that of Maverick, So and has releases summer supply pipeline, penpoll set office of rebound Hollywood the blockbuster When steady Eternals, held box now, including their only Marvel Matrix. remarkable. films That ahead. weeks, two with supply. is off season that issue take faster we been the strong that is outstanding hope approach, summer global exception, box box But we have

Hollywood, A and the Place we had XXXX, Quiet FX leaned in and IMAX Actioner QX instance, during production emerges exclusive For only the pandemic absolutely Wick, with we franchise second Compare releases more Lightyear blockbusters into Train. COVID Disney’s stronger the Bullet Brad global markets. is World, Jurassic Even theatrical of in our Impossible, John including language Thor, from the which stacked diversified Pit quarter, content new Part the key II. and given way Transformers, institutional with the beyond and local portfolio with films, have were brand strengthen Mission that

local mentioned, theatrical blockbuster the demand embrace in Chinese third local record-breaking office critical franchise top surpassed do XXXX, by FX the global The pent-up quarter. total as demonstrating for XXXX it have the XXXX the already for of with Chinese release, I blockbusters market Hollywood end market exclusive will we and it box language a seen in we we is film, expect that language As our to past. office have our proving sees an also box when

industry. beyond numbers unprecedented. into are a for film set fall global accelerating. in and rebound this is and Audiences strong the of has back theaters blockbuster of cable big The flow the theaters Some reopening coming content is

the for building it the in quarter, shareholders. strengthening again growing entertainment theaters, can of With world’s on our improve to ecosystem, has us joining and second opportunities today. privileged and all to one We turn demand and forward everything been value safe are continue Sparacio. position to look you Jose premier demonstrated entertainment experience blockbusters growth IMAX our for a stay Please as our markedly. I our creating to unique return around numbers we As will world, healthy. experiences. to driving to in that, over position for new of the as strong we will The Thanks do you the

Joseph Sparacio

Rich, afternoon, everyone. good Thanks, and

model. serves of As superior mentioned, significantly and to Rich continue quarter network another reopen in our business the highlight we world. improve, continues which improved as performance posted to the to Operating our results across U.S.

we reminder, a global base a a and asset-light are incremental with low As cost high licensing margins. business

down cash as reopening network. IMAX as to We earnest a held undrawn XX million XXX what working our for million cash quarter our of XXX the China China facility quickly gives million in and leaving ended This component with come million preview to quarter, of films we at when the Hollywood credit combined IMAX Corp. the is balance XXX in A undrawn, debt. us facility, of paid cash-on-hand, was XXX available an and serves In the return capital which with approximately full quarter our global IMAX million our million of at liquidity. of XXX

of of almost As quarter, reflect XXXX. I results second the the complete network the closure please discuss year-over-year quarter second remember, our in

year the the higher million from increased EBITDA office second in X.X XX.X and QX in due XX.X business $X.XX the period Nil leverage million million million business XXXX. reopening QX in driven increased in versus with the of new Network in which increased the increase STL revenues Second U.S. in systems to as of from drove and for increased maintenance IMAX adjusted and sales loss Gross of were million XX.X the million office comparison particularly increased three from in to revenue sales revenue the technology loss million maintenance in million, to an due ago of improved of IMAX year quarter nine versus million X.X and operating ago million The to margins of XXXX. of box box network loss an period. $X.XX EPS X.X Adjusted second to a increased XXXX. quarter higher of installation largely inherent revenue the revenue XXXX, the QX this to and model. Technology for from in revenue XX Asia commensurate quarter reopening network. X.X XXX the essentially million Company’s XXXX EBITDA from in in

of systems, quarter, QX Installation compared systems year-over-year IMAX from increased hybrids. three or This sales we and demand new continued theaters. inventory we expenditures, office and business spent same pent-up in joint to the in sharing including demand our quarter, high-margin continue system sequentially, were which partners. STLs, were demonstrating installed IMAX Gross XX.X The increase the our XX.X and in to of in XX.X% demonstrate SG&A, X.X of this installed our in activity sold year. which representing two decrease of margin milestone with revenue COVID-XX of revenue Strong a nine various on XX levels. margins declined SG&A another increased model. XX.X million invested X.X and stock-based by last in IMAX programs. exhibition capital out four SG&A Europe for We in box comparable both China. costs of in improvement million of we period the highlighting offset of Increased business parts in million second excluding second revenue In is allocated pandemic. superior the to quarter, into profitability cost goods higher represent a equipment commensurate We in million, from wage-related compensation, results the believe as for quarter million, XXX,XXX partially asset-light the an driving X% Company’s year. signs emergence reduction to the the U.S. included see million last

we call the excited I IMAX a sheet turn strong have remain And operator this With titles balance set to strong will with later slate for year. released over liquidity. substantial finally, the friendly to of be the Q&A. We for that,

Operator

Eric MKM we Partners. And go Instructions] first [Operator of you. Handler to will Thank

Eric Handler

give at of and look visibility got back question. peek your maybe what a how very quarter I little and then you third the wonder maybe the And or much for Rich, year there? of I have you might half into this installations good a have you could afternoon. Thank for kind least follow-up

Richard Gelfond

the active installations, policy it. so year, that unpredictable made and And to world and during it it territory-to-territory. year. know I you We specific so but Yes. are doing we activity the I were not is be will course usually think even mean, last where don’t a wasn’t pandemic surprisingly not virus at as back-end things, But in up, are the think of know, opened the is. we it going is I’m because though saw just Eric, safe until half we there second I is do be you loaded in the as to we and the what these of

Eric Handler

I Understood. seeing implementing if in you where see turnout going other And in be of sort in and some similar films back language talk China. you of are wondered are good you the to countries about How for year? could then you local this half opportunities policies - obviously

Richard Gelfond

I called box in in this markets are have film released we Yes. mean, weekend, I robust successful it White a by fairly and the how did of and office these IMAX. China. some In surprised we China of X% was been movie a Snake,

overtime, continuing you have some ours we of of films up give local working will kind the films specific So in I markets. a keep I’m And edging different think see to But that these are want Hollywood Megan, are. initiative examples? surprise. indexing they eventually and do same you it the strategic is closely until language

Megan Colligan

films five picture we set Japan, over Toho. have In records Sure. broken two with we have that the records. And deal two era pandemic have with a

them camera just closely releasing are to not their their company the we having but using very films, work shoot films certified also with program. that So continuing to be IMAX

products. we films it Japan, exported language saw so break And successful continue record-setting for when into able States, and align able in film a does be out Europe, of movie looking market of where was on in with Slayer, very Demon some a program like Korea. those are is to say, in production. to Japan have out the United it too, is we be with Also and to thing, the them technology outside the Korea, really closely distributed local There a So our leaning success to had and a are been for us. in great then

Eric Handler

very thank much. Great, you

Operator

our go we Alexia Quadrani And of question will to from next JPMorgan.

Alexia Quadrani

if have much. just thanks I questions, very guys, two Thanks I may.

sort are general much experimental post cannibalized mean Rich, how you, date notable you view sort of total a that one, new is streaming more office of Widow experience Black world box insight or into a I’m the continue of wouldn’t do, any IMAX kind the in moviegoers sure better how wondering of of not opens we have of office even clearly may I’m it box percentage sense clearly in thought index of given if I as new day if first going PVOD. have you and wondering numbers I on I’m world COVID, or kind it about kind then keep that of might. the much this curious, you leaning a in have see a but general. sort just of movies. revenue to much fact kind How kind but will the positive? some have secondly, kind The just talk the in your of of is for I’m we forward in positive more potential with if than And heavy you

Richard Gelfond

talked hard day. end are it, worldwide cannibalization traditional people mind end haven’t interesting, really much, in lot is of the office around Alexia, gross of gross of PVOD that find accounted and but that clearly, of the at uses piracy. its will to no a and Black which that. box about is And about will million that the there half at about affected for my of question some combination first - on the more quantify that It XXX distribution So significantly question, your there the run, FX, really piracy of $XXX model, Widow a is I gross but the the lot statistics

was they Black are comparable Widow movie. this great again, a So set eye the movies, stock

the is. So I was but money doubt when I can’t I say table, have lot perfectly about left what no it it, on think a of

have of think terms I be to office. are few see cost going there higher films, faster studios is in streaming, to than of going just And seen also I more direct lower take that bigger releases what to going for continue because have continue in is IMAX blockbusters but post-COVID, box will think percentage and a to that are expect index numbers. the to think concentrate language the will we sweet those you we a fact, the I put and more minutes ago around In we that and China the in us do have emerged have their countries movies does pretty I indexing local North us spot, index better have that the X% would of having been since good referenced in. I theatrical kind to think that to I releases IMAX’s more America,

Alexia Quadrani

Thank you.

Operator

And we will move question Wold from to of our Securities. Riley B. Eric next

Eric Wold

was that you, are green to the we possible go of by the questions from in and general as Those plans period backlog on numbers of soon schedules. as afternoon. to XXXX, out general. kind previously? what to to are what the of system give not are couple question in just mindset into I’m install of trying to installed visibility, not around everything Kind had starting first reopen light. is guys in mindset of any get we they of their of look, and I the A kind of get wanting in disrupted push good some pandemic a on their you backlog Obviously, giving kind kind are in know you is the as follow the time Thank as shifted I to try those they to world? based now here, the Eric. ready that just from terms installed But stuff we on was going the want up to exhibitors saying placeholder, once average

Richard Gelfond

are in you numbers good, close I exactly the that I business And and lot but But around we how I and But something have last XX So remember or everything at taken installs fact, I they IMAX are plan said mindset XXXX, with number virtually on and of them shutdown. don’t done loaded. be XXXX. I we out like with it. rolls the We think backlog. the right we is cadence as the in year backlog. to in have in have similar to again, And with know, in now seeing is. being was Eric’s will Europe of we be And tried be same as that what it the gone to out we open negotiations Eric they signings schedule committed healthy nothing where reaffirmed the work about countries when their places that and work in and what like places out. the some to America, with have have rollout of back-end the before, pretty the question desire to think think exhibitors like have back are I in to a we North and and would say in to is going again, Asia. we now to the healthier And is was are

Eric Wold

I know the One second QX, and mean, to kind make, were quarter a want to to not equal now sales did in of I it kind say was. quarter. about of you obviously I expected follow-up installs the but your even cadence quick don’t get that. what of back to nine that talked trend on XXXX and XXXX just where you one

don’t of So into kind an too back indication of want they that installed is the is into to read are kind were of that hopefully that of - where one things kind I quarter, kind much but patterns? getting

Richard Gelfond

Eric, there statement so your quarter refurbishing, people did which I’m just to you And I factors that even now way. refer a trend many places say is would going opening up, from of just to the them either during pandemic. can’t some one draw

it. generalize So I wouldn’t about

Eric Wold

question. just Okay. final And then

like both year should what getting situation, about expense expense and where and or start over within think hopefully back back kind to to savings look are there operating quarters coming inherent it normal IMAX in the it it get level to as or of things normal, so was? how As baked get does of versus going trends industry, operating was to and don’t kind kind we pre-COVID, the does back IMAX’s we of where

Richard Gelfond

expenses, Eric, are of the with to of our So network reopening movies. trying introduction the the track we and

So the biggest now is in a were as said movies remarks are issue of I prepared lot just released. my being there

more people because you So expenses there see you the movies you obviously, need up, some start will as to you see ramp of to out maintenance release, that. and need track

On the happened. hand, before very this SG&A we focus other were

we know, our very growth over you little years, OpEx. As the last in several had have

- again, use before. going time. ramp be are during to vigilant are I we So to as up prematurely, word cadence possible we to as that have going don’t period of And we where

We our to cadence of to expenditures are revenues of the our cadence as going the reopen. time we

Eric Wold

you. Helpful. Thank

Operator

And go next Frankel Steven to of we will Colliers.

Steven Frankel

Rich. afternoon Good

infusing titles where as in on China, are First the local all, improved? their values production more of the IMAX in DNA you

Megan Colligan

seasonal productions. of ones Chinese shoot do to be for, production for for involved Year to and big that a cameras are is of and the talking productions movies very like those moment becomes Chinese films we - really that are biggest film Chinese big for calendar just has New are in are operation in but earlier come some we the certainly, of the with some year that makers targeting. has films our also two as we We that of we and Korean conversation internationally. and the it domestically. are in we aiming for of The it something we we the incredibly have focusing are kind the not Year, it are over the successful, we been as out incorporated ones IMAX several films focus would And long. New over pieces about talked and our our and summer, I been those all business, the certified Chinese operation those employing films that camera been had program in allows, Japanese actively something really

very active. are We

production specific both filmmakers have means of We we shoot that post community level it having in and to is continuing What that around. requires the specific to and the effort are kind production work and that the on people it for that process do to very to with educate very ground the It to closely of something those a with pre film. cameras. is give film conversations our work

be expect China should anywhere shot to cameras. you with our So from three to year five in

Steven Frankel

And you. - spending want Is that is step-up that is this in a sequential then left staffing back that might There thank engage getting beginning up of quarter. to don’t new people pace and be was R&D just the ramping of or will kind because initiative up feel some there this Joe new meaningful Great, priority? I a out.

Joseph Sparacio

No, some I to SG&A, of back to normalcy. mean the as you on are normalcy. I cost getting note starting semblance saw inventory to goods somewhat think it in is back of allocated the from to just amounts the

is just that been So easy.

Steven Frankel

thank you. great, Okay,

Operator

And Mike will move Benchmark of Hickey to we from Company. question our next

Michael Hickey

to on to shocked. the my He the yet your hear Congratulations Joe. rich, impact if quarter. delta again voice Hard question. know not. Anyway, Joe, this Brett, thanks on variant, having Welcome or Nice curious for taking back,

you trends and I if any reissue caused if attendance year-over-year picking in to any momentum. of up curious mass that in L.A. of of a sort be the have seeing Also tailwind couple sort wondering Just are has follow-ups. seems change if

Richard Gelfond

Evangelion. like and Japan, to and Demon there in people, two would out again, don’t Chinese - having vaccination. Megan too of say, a what the go have all it among headset talk it. is lot it biggest to Mike, because think the of the in Japan, terms of indication we history a about two And way, whether resurgence an very lot, Slayer movies to biggest reticence movies not in is and theaters go to Year impact. an early box the in Japan population. Like it the in of to, with personally China unvaccinated by we there I little IMAX for records office going seen I the I no saw is vaccinated was Shin And let’s in to New which had the think So is Asia,

don’t evidence be now and it correlation more much a there is is control really at that think the unless But out present changer. of likely Obviously, to So think I that. just there than game high significant I there don’t gets no a is is there. that of

Michael Hickey

Good.

sort you yet. of other like era The that regions pandemic outlier China of and in sort success mentioned Japan, the question, in

exactly haven’t that. We seen

North in that seen haven’t We America.

the sort reason the outlier of are recovery sort How have here Japan an but sort why buyers windows we the to breakout in build you still that in for of working performance other? of of and film into the China to or slate right when think in we carry think, what of do factors to you that the you. not an broad direction a and sort is of flow office going U.S. they obviously So the sort of box terms balance to important really sort about in are take,

Richard Gelfond

of simple window. Yes, yes, yes. office distributors on answer And theatrical [Ciber] in been global their under box release is in biggest released time China, there models. traditional the Chinese by the a released Japan. a that content Asia, movies were all hasn’t by there really (Ph) XX% the And two movies a the is record big It pretty with

Gun I of coming get Top going Shang-Chi that and start with see coming other months will and think get to and and to like then you into you a Venom Bonds lot in things will into things. are you

moving in date. to day I in think, States, So tried, response to response push agendas their United the dates, studios extremely the about pandemic, own mixed then in they to the releases partly but and and partly conservative been the have

with is clear you experimenting the office marketing window or virtually will have will you think you look it every once XX-day see little as Others that, you kind delivered that I hasn’t same pretty a campaigns, year. the at think But when for of alternative. next the has look And day-to-day thing. bit. releases I are a studio box it good return ahead, same I around content, think

in physical people have they world. the of the the mental as attitudes think in America I same North rest go and

Michael Hickey

of there just sort industry have been Yes. answer now on when industry? window to they date submit seeing of your XXXX, view path just of from get that of there. is will noise sort remember, got much in Disney that of unpack they you of you in Obviously, theatrical and I think a on this to sort here think that sort your follow-up about the into talk Rich, do day long they it, you think importance is sort the but a international piracy just Last evidence window, sort or so the about do there an of we track will a for will question, of in because when on call continue XX-day sort

Richard Gelfond

actual Disney do, away, know pandemic remember get which to pandemic times else And I conclusion carried And rearview normal, window. in data did be. is come studio the does, is Mike, he to is important. When and to the I that complicated. it Investor what think a not I experiment everyone is the way I exclusivity said know maximize mirror. think, a looks the to think one in value want is don’t Bob they actual that he every But the has really when data Days. what have are theatrical his the don’t was studio. to the thinks is what that the were going to will I the same is He And at has and important is to way, but I that window and Disney which during related of it, sort he they obviously, seen their So I going saying thinks Chad seen, of

You property sell used times. on same to five the

selling and is are conclusion. some maybe selling the will a think and a some yet of when same come to I don’t windows And are bringing it lots it, Now I you that forward that, model. better think revenues people once you are they but is there smart they proof points think I

Michael Hickey

guys. Thanks Awesome. Good luck.

Operator

And we will go next to Jim Goss of Barrington Research.

James Goss

does Thanks. that could pressured maybe served overall markets perhaps availability. more in be for Rich, of Recognizing in that well. would have expedition that way you wondering, terms if other and but have particularly advantages a some the any IMAX consolidation in repercussions would North as business blockbuster theatrical to that for have America, concerns demographics IMAX, clear lead I’m

Richard Gelfond

prepared box So Jim, really concentrated that top affect going XX% archive doesn’t very the I And were with to of though were benefit put by were fact, that to of if in nobody XX% theaters. is me additions the to because went location. chain our close of in those theaters. them the high during enough Regal fact seaters by Even biggest is the It smart office mentioned is bought which some because performers world the of to clients the the in and fact theaters, there away and inure great is AMC our some much bought and IMAX consolidation, actually our an theaters. remarks, my top XX% they the were the

think So screens top probably of consolidation for I good end is the among us. the

in because much they the at effect nobody IMAX end XX% puts has I bottom screens the think pretty no an the theater elimination screen. bottom

James Goss

response. great Okay, thanks,

receiving granular advantage in the you approach and flexibility indigenous of about Another question. have potential especially a to films your more globe treatment, the you lot content a product. give screens? the of in more of and of lot that you number - Are your - trend a I’m lot take around of getting since the does to wondering -

Richard Gelfond

I forced talked were pandemic. lot the a to we language. mean, about think local during have We I

I there before. availability more definitely we have think than So had is

So of from the a of movies. get relatively percentage of exists movies. in kind trend small high same our office a number box big We

it have averages is content, our overall per should our it help is think international performance. I it screen and whether periods quieter help during more So domestic, those should when to you access or whether

James Goss

last terms up you revenue direction now sales Okay. that to somewhere are the incremental agreements. is issues construction tended with in or lease terms earlier joint on one there I creating. skewing any focus theaters have of between brought right projects in whatever you in thing - another trend One of you been sharing Are know hybrid

Richard Gelfond

I Jim, is of that and the had typical. some, year, signings know, a not first lot the of there as we you weren’t a mean, in but half lot.

enough draw the talking to conclusion So the partners point a don’t lots and over has potential I our think been trend. But partner’s is a from don’t I there team view. of a of world think to change out in it there is on approach

James Goss

Okay. Thanks very much.

Richard Gelfond

Jim. Thanks

Operator

Rich back comments. this like additional any to And at or the would call for time, I to turn closing

Richard Gelfond

get And in think the beginning terms the translated come to more And financially. comeback last And asset-light goes is the us, continues could the fact no could are reinforce Thank an have IMAX’s lot world bottom say for you, of has in right will have very the when operator. shape all model, to net we good the I that bottom on virtually almost three financial back of that. that goes reflect a as I recovery. have gets debt, positive of EBITDA, we see line. quarters, of how it to had have you we leases, We results continues domestic straight don’t the it to on we the confident the the that to mean, line. pace we year as it we turned

much, So you operator. very thank

Operator

gentlemen your Thank and this ladies for participation. so And today’s you concludes call.

disconnect. may You now

IMAX (IMAX) 28 Jul 212021 Q2 Earnings call transcript