IMAX - Earnings call transcript Q3 2021

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Operator

Good day and welcome to the IMAX Corporation third quarter 2021 earnings conference call. Today's conference is being recorded. I will now turn the conference over to Mr. Brett Harris. Please go ahead, sir.

Brett Harris

you. Thank everybody. morning Good for on you earnings third conference call. joining thank today's us quarter And

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

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Richard Gelfond

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our We top track some best all in are on to time. XX office this $XXX of months in million of global surpass box October making

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they Max captured to-date our XX.X% cameras for a million out in earned the weekend and fears filmed despite date day has IMAX global release. opening globally audiences shot power demonstrated on We older HBO would home. last a and Additionally, despite network globally. and XX% weekend Dune that of film marketing the turned the release of for with IMAX of also $XX domestically the stay

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coming for movies excited this over return years. three with another We the franchise to are

about demonstrates results momentum and several only EPS, Now office office. revenue best progress third results recovery strong let's reflected the strong EBITDA, box including nearly its margin, box Recent our our in across for The consistent not recovery. QX but in talk is gross in results. metrics toward adjusted company key quarter, which adjusted two years delivered global

IMAX XXXX. consecutive the fourth recorded of EBITDA quarter quarter office in its and third box fact, of strongest quarter its $XXX box since office positive and its million-plus In at consecutive

we of China shares IMAX stock. worth of IMAX stock of quarter, $X.X and million the $X During repurchased IMAX million

across long blackouts are during blockbuster entertainment the diversified strong countries To the out-of-home premium opportunistic, to footprint the wanted with quarter. term command We our in and be we strategic only with industry, global our momentum XX across a we While aggressive and platform territories business were conclude, constrained and worldwide. position. cementing somewhat we for by

CFO, We believe pipeline to reached experience. light all we and are following have for content model opportunities. joining returning ripe and forward new it positive audiences Thanks the premiere studios global very film Sparacio. have of and a our and Interim to open. blockbuster as look our us a are again we entertainment We that, to business industry. for turn will demand IMAX critical beloved strengthening record you flexible over in The and point numbers. Joe of are audiences inflection global in filmmakers worldwide, Theaters We With business by position of asset today. the one is for world's I to brand,

Joe Sparacio

Rich everyone. Thanks and morning good

consumer and another sequential mentioned, quarter As drove Rich across key financial films growing franchise of exclusive the release of theatrical metrics. demand improvement

releases ended this to cadence fans into benefited is We working be costs million with moviegoing what increasingly light quarter liquidity. We our and debt. the fixed $XXX momentum credit million of loan, built of to with from the low build and million $XXX million high available the global adapt our our have $XX incremental in combined results under and film to which $XXX $XXX margins. available an excellent business, licensing pandemic as million facility cash our of continue China and available capital and expect the Moreover, could asset our by franchise normalized under When in we characterized XXXX. IMAX

share of quarter, $X.XX in the subject underlying or disconnected IMAX and stock to we our $X.X as intend the X.X shares During our fundamentals million be XXX,XXX million when We purchased stock repurchasing IMAX from or blackout at shares as $X $XX.XX we million of stock. at price shares business, to opportunistic or HKDXX:XX the of windows. per view always China

with QX As results I exhibition. our discussed third in for year-over-year please the in of remember, that was reflect XXXX, network reopening quarter, content much available limited

comparison loss million $X.XX $XX.X to slight share period. charge increased to the in million a EBITDA year per And non-cash $XX.X $XXX,XXX deferred adjusted the company in improved to In $XX.X the period. of revenue Adjusted to XXXX ago a per quarter increased valuation $X.X tax versus $X.XX from the EBITDA the loss recorded from million further took quarter, ago of share EPS in value million Third XXXX. assets the in against or per share period. $X.XX allowance of year third

revenue jurisdictions. higher installations. margins $XXX.X of accounting increase by uncertainty, $XX.X office to million Gross million franchise quarter which of revenue rules third Technology with business and million of return of revenue IMAX from in maintenance third the commensurate million to continued the deferred company's leverage for of $XX.X increased QX inherent network reopening Maintenance major in and office certain that this revenue prevent As increased versus XXXX. for business tax U.S. drove due Hollywood pandemic operating million related XXXX, in $XX the XXXX. were IMAX to and titles, a $XX.X $XXX,XXX offset $XXX IMAX and million, the million carrying continuing was international in assets in Sales QX particularly due driven in system global result increased box to in tax model. from of our and quarter fewer the in the largely from reopening the partially us QX Technology the $XX.X network Network markets, an box The

business network. the joint in large spent including We quarter the of to to on third operator exclusive as or in $XX.X was with last Studios our This across network. reached quarter, SG&A in systems, reopening turn point. Gross The new for or million I And we all to six our excluding demonstrate revenue. a higher back business $XX.X theatrical stock-based compared have year. theaters. sales in year will included our driven million quarter global third were stock-based friendly compared for period Q&A. $X nine we turning $X has installed to XX sales STLs. that increase over new to for increased compensation key million we have increased in QX for that, million IMAX which In of metrics. numbers expenditures, business continued the of asset million revenue-sharing last releases capital company's equipment is Consumers invested this business comparable excluding SG&A comparison, activity results IMAX the to to our the which With XX systems on the margins believe IMAX STLs. installed million and by our blockbusters. the $X.X model associated delivering quarter, call superior $XX.X returned in the XX% light In comp recommitted increased

Operator

B. our go taking Wold ahead. Please first question Riley are with we Securities. And Instructions]. [Operator Eric from

Eric Wold

in then film the with increasing guess there talked demand last the talk installation. pace months, if Good to next new slate? and get slate and up? systems versus that retrofit coming of happened what you. back about recovery around how accelerating given terms that XXXX for back can the given now signings was then opportunity strength environment the you time in discussions do we with accelerate about of new you XX ahead over And are they of original right with IMAX environment Thank Avatar in now of that much to exhibitors installations build is a mostly the guys. morning Rich, the that Avatar, want I

Richard Gelfond

certainly So, get build view there, it is and opportunity. our and Eric point IMAX lot out from there an in to inventory, ability of a of

maybe lead or XX that. Our bit than time days is a little more

So, extent is can there it. to we meet the demand

As the I turnaround are said kind where October, mean that they only have come they September, of it's many. ahead films months, talked pre-pandemic quarter in during to can't not kind I films the coming other forward the seen or for things It's there normal. though fourth early of Mission: the are or to dramatic several Marvel It's call, the films normal, all it's whether Gun us of we remember just this them, but in It's last Impossible out. obviously Jurassic year. Top haven't DC so Avatar the of we next or World, about. back or forecast films

And have to is do the going IMAX. to motivate think on that to greater in addition that, So indexing that's and I install, you going people open. slate sign with

going the a to share office premium. have of greater you box So

exhibitors IMAX. of incentive off the as to around world So a with normal return their networks lot obviously to there's gear

it's the at unfold. early how think that pace quickly will too moment, forecast to I However,

effect some end as many fundamentals that, data. the think XXXX you the to you they am are Avatar how We the those together through our year now, it. say, for I are and putting obviously new give of and theaters. of there will the open people key ways. on for will on working Right how kind call up I But defer is inputs of really going to quickly that we quickly have The in theaters are one experience until to sign budget working concrete

Eric Wold

you reopen starting kind different cities China of to and Understood. and films do of versus more How talked local are content preferences of cities issues you negotiations become studios how about. the the versus many And past just the in then maybe is with got of any studios between lastly, a manage in lower other discussion the you as tier point for backlog Hollywood larger Hollywood allocated? content? in your screens and terms terms they sticking does that the language And the

Richard Gelfond

times different the first are really in is of things it's the of year by the Well, best one best of and coincidental, not good all, times U.S. design year it's that in the of than the the China

example, of Typically, is think October. you the of Chinese summer you National early New in time about time. for So which think is or think Christmas which January, about February. U.S., Year, the In in late China, you think the Holiday you

So end stronger seasons cities. each complementary. X X X, in a there's of and than cities, itself, preference China blockbuster content or then X the on the are and there other. top X is in Within top up tier tier don't They X, X tier for Hollywood

local language in somewhat films the general So and a western the the matter, lower cities. top the cities tier in tier films perform perform as better better

mind when split we the we and and we release generally So take into program, when that what we decide to preference network when.

in also film the everything movie a preference. it's film by like However, business,

like a film available distinction. if Japanese a is, that or kind beloved have were so and wherever I which But we smaller China, was in or universally of a a language Chinese probably make there would there's significant if think that. in it Japan over So Hollywood Korea, film language to Avatar film we pure in films Korean don't balance local it

also these have but into take specific you So titles. general rules account the you

Eric Wold

Perfect. Thanks Rich.

Richard Gelfond

Thanks Eric.

Operator

ahead. go from our take Wells Cahall We with Please question you. Thank next Steven Fargo.

Steven Cahall

Enhanced. just first on Thank you. Maybe IMAX

You conversations. productive mentioned some

wondering Disney+ And a I for any services some bit this specifically, even something obviously bit any a services? be had may but you more or give Max that us comments guess is would great secondly, maybe timing could not helpful. the So with was opening idea HBO make or of studios would like then you what relationships maybe And I those critical strategic? on nichier think, a as I of if that and on So most family-friendly. quite product, weekend Dune those your look

So things wondering like I view your any but to presale data? you heard comment Eternals curious If how could on tracking you how have kind looks that's pre-opening? Thank just get it if you. tracking? have is seen some of

Richard Gelfond

Sure.

So let me start with Enhanced.

know, screen you developed the may home. Enhanced for others just upres not As but TV's know, a big is of that basically have the in benefit movies technology we on which who helps

So after a theatrical its window when you look where primary want to movie the watch our the with a examples TVs. today movie licenses in Sony better. for is your home, relationship Enhanced makes screen of one its Sony technology large And

films as pretty already. it's I can of twice correct in side in I world, gone largest them the think four also for with far. with are you and compatible on so its so Enhanced. us well in they TV on the And film if, that involved don't of me know but Joe, system Sony us we seven manufacturers the upressing with compatible are the

of be, deals. the some some side developments about ones you fruition. including in So last side end because couple area. of we of guess gone overall But over Again, discussions to to the my something, in enough there them be kind would Because there well. year the years by a we are that the studio are streaming and frankly have maybe that And traction the out brand, pretty good of made feel can't larger right some had whether It's success number where of them think of radar there best come that screen. I parties or likely guess with of IMAX IMAX's side. manufacturing we could significant of the significant the pretty or transaction on would some below the now

asked about services. of some You specifically streaming the

mentioned You Disney+.

it's you when Max. HBO. and streaming the done and to some what of see to with Netflix But discussions there's I refer the things have larger to others in mentioned hard and and get services when Amazon that we discussions completely. are will and again, know, included predict Obviously, You

In did mentioned the China terms as we other are like a in XX% our in the script X% We lot the and markets results of U.S. kind as obviously the beyond of screens you screens. of world of the were our Dune, in of we of a but places, mentioned, X% where major of fraction expectations.

So the phenomenal. indexing there was

films Eternals, in the we general. of do very Marvel terms to tend with In well

theatrical think well that We perform with well don't we it a feel they going around don't I IMAX. think well. numbers tend is to in Marvel you and window film very that general specifically I have but on to perform is do for of you it IMAX. Dune basically see Zhao way type see indexing it. Dune, it the see director Denis because to IMAX. filmed That's will Villeneuve, in and the specifically IMAX want said close Chloé go very audiences, to I to films

is So version of IMAX release. we did Nomadland. certainly pushing she's She been in our in the Vista. headquarters in the Playa

that? do what add Megan, it. you for want expectations to high to have we So

Megan Colligan

well You expectation auteur know is at the an would I relative, basis very that be is do with I this on about the format of film should a and a well. IMAX clearly. our speaks being very filmmaker very to that would movie to do well expected film it Chloé and in that what, and very And seen think expect it best in shot speaks format.

Steven Cahall

Great. Thank you.

Operator

Thank Alexia go we our you. from And take Please JPMorgan. Quadrani with question next ahead.

Alexia Quadrani

you. Thank

want see you am sort of the shot just I your levels that I post-pandemic? nature well because the that skewed You back experience. IMAX like circling you you would of films probably given curious are guess But cameras, Dune I Dune that see run don't that you so the rate consumers indexing coming did. assume was very of what would how mentioned than and the pre-pandemic as know do commentary on Just favorably. out about kind of and sort probably higher see

how films you better. curious to looking should any point, your So China in I my run can we Do second about have the done, a some XXXX get films rate if Hollywood just think Hollywood back of up And following is going we question think beyond? or think in forward? we China, is, you on normal thoughts you it's QX have that whether at on commentary kind of though on said

Richard Gelfond

Sure.

national China United significantly. was if box your X% which country, but the the which IMAX over in is although only first United XX%-ish And range. is of being XX%-ish low-Xs talked was opening X% is indexing Dune in you in Dune opening many pandemic. Bond a movies and that, Typically, share, Your we in first about Nolan the increased the of pandemic the have one, example, before came office kind of It the more higher terms about In on much. XX.X% first like while, of did the States weekend for one look the percentage out weekend than territories. very question, with up of We we our in States, whole market range. on it in international IMAX was the the Obviously, about index our not just indexing seen to a typically index movies good indexing. at in as very best the in case

time you other a I and biggest, dollars, lot to extra program rate. after as that's pandemic your very typically IMAX going same I mentioned in I this films that and why what But I second of to you the think shot leave And cameras. there and in-home. a program at and or bit is that cable, IMAX can streaming, think really not going China, remarks, Megan the going of with the Hollywood that's backlog question my am something fuelling helping I get films then was China our the to Chinese of am in to indexing. mind, the there was Some it it's sitting your higher I indexing. of whatever indexing watching to television, camera an camera question about getting in I because at shooting And there a and things being ask of in in are terms are your you spending two IMAX fill during films. in is, prepared with home more lot And on want answer different think of than of our On have point regards complex DNA our in with home opportunity think when the how films of a little second

before and lot to in. degree have so have own the they of Chinese new or the was the let their torrent played on purchase. for diseconomic government illegally of of were theatrically up second China heavily experiment they that let it a the already films sites made during day run films the And piracy gong in that So And pandemic. sort films in experiment to date to during

pure would away. a it's will impediments Again, process but because existed think in guess, a happen. in the will that I like to I more So think in they that know, applied of China Alexia, look starting going films something XXXX normal that heard I they say sources has as in. are heard that in. Dune have We in. let you get and to talked Spider-Man getting the XXXX outside year getting are Bond about have

IMAX So Megan give films that, why with some I with more or to IMAX with like a for cameras context you being DNA. shot are about second would

Megan Colligan

line an I using. we the just talked camera any So think have the IMAC capable top clarify IMAX before of but filmmaker certified to it camera character every a has camera program, about is cameras have at that of we

early would filmmakers with our certified of filmmakers we in on. very are advanced are that discussions using discussions We tier very have to top and with like kinds movies that the making be cameras early we

film XX year lot have IMAX significance. Nope our of cameras, Peele's has film you movies a So imagine, shot with for instance, Jordan that of shot can difference shot process, cameras. The with with one next in was that was we cameras, which are

about about they For the IMAX engaging set. And they one, see and are films are outset. materials. way our with screen. the top it. the that the really how tier are see start. They talking thinking at in are from to tier are people And audiences filmmakers thinking are right want moment them top to the about they it smart to connected from And want for audiences They shoot filmmakers really fans on and

and has for that a so differentiation us. and And connective connection massive impact has that massive that impact itty

are will we next consumers takes going to year especially you to I I a year. connecting are see And think so year going the said, our see, in next way brands be, And real are as program a increase off. this really think I with massive as

shot our about three You cameras. talking are that movies are different with Marvel

Top about talking are You Gun: Maverick.

As I MGM. with said, and you Strange. Creed have and Thor Doctor Black doing Panther And are we also

well. So in are type studios with it's we a of the diversification real as working

different base slate fans. types the it A creates us. films of lot to lot the filmmakers working we starts it so with, of different of of a really IMAX that really are and And broaden a for diversified

Alexia Quadrani

much. you very Thank

Operator

Eric Please Thank you. take our question And next from go MKM with we ahead. Handler Partners.

Eric Handler

I Good question. morning international could talk you that how for lineup next that about XXXX? if embedded seeing for and in for the films year Rich, might have to there to IMAX how you the DNA what and going despairing are compare are number the wonder thanks in

Megan Colligan

you going am don't I jump to if in on, mind.

really that and a year in program. program robust terms have of about We excited we next are

that French first for shot We was IMAX that has with have film DNA cameras. our a the time

film have we Chinese coming believe. a We out, be will that

You but Year shot the can New cameras, think New Chinese for be coming Year. this say the with early out was our never it we that will

are Toho. program a Japanese that with picture have for We films. a It's we five deal doing

filmmakers to are on we filmmakers the we this best the And about continuing world are our we titles. continue to So around in program. that we program our local country language with serving local locally are that efforts very that educate at titles and in and been the focused continuing has to very looking ensure language successful and really grow audiences

Richard Gelfond

we call, think, as this at on point. there language mentioned involved I films set I in this China are fingertips we have that many And many, specifically record. but are don't a just we at in Eric, my But local China it in

well. at in newer Korea are India looking and like We different markets projects as also

kind to see continue will I I us and have think lead you local of way identifying think content the language in So we double down that. on

Eric Handler

Very helpful.

question, touched being signed any how you you progressing of there more sort earlier. sort with you follow-up a this signings, that talking gating factor a owners as theatre But activity pipeline bit is at on of are a new deals deal this sense, of is at little getting preventing as about point? point? the deal this Or Just is are

Richard Gelfond

the down, installed when Well, XX world to call remind closed. shut when last on I and it's signed new kind systems have that a everybody the we world we of about systems the XX remarkable about was year during new that pandemic was

a of on the activity shut a going are There down. still number of things up going while level was there live had number So during signings things of were a bit now. picked It's a We quarter. on.

premium, to months the push their localization, the couple next looking move people of that yet. move those I will We to versus to have see themselves manifest we at and start the think some contingent discussion sort doing announced Avatar XXXX. IMAX effect I plans the blockbusterization, cinema, the the had we haven't that the I all that But we regular in are got for of around is higher think the think indexing as

Eric Handler

much. very you Thank

Operator

Hickey we question Thank Company. you. next And take go Please with ahead. from Benchmark Mike our

Mike Hickey

the quarter. Awesome on see strength Hi. box at there the team, Rich the to office. congrats and

on you installations, few fourth I your Just missed perspective Did some this. questions. quarter maybe a One, give please?

Richard Gelfond

Yes.

I the fairly Mike, like year. with looks now, we we have it will sit right think, be consistent last cadence what where experienced

Mike Hickey

Okay.

year? in of course the in of Just the seasonality terms

Richard Gelfond

a mean Yes. typically quarter on sell-through for installation an The big the us I basis. yes, quarter activity, fourth is

shaping So to right are things fairly consistent. now,

Mike Hickey

next maintain question. strategy, on I sort in in terms of The terms of Good. of curious your was sort guess, I use combating China COVID. Rich, of just tolerance view how zero Okay. the they

that for will Just am on this it. obviously film China? overall? at seeing have that's safety, the office implications back it of other et of you are important performance think sort that driving sustain China travel, I wondering can't as strategy? off you of they in how does can have in curious box think And that if do cetera. implications you countries sustain sort You for industry terms been box office what your

Richard Gelfond

with policy live is with think different I in has which world a up to in the COVID general come some way. learning

but tolerance opened best isn't the time well. have is about they there So of is U.S., And say this obviously, in like the zero XXth movies doing to but it I one only apologize, an months October in this history. the am going are places and the which I quite our

sporting to the box to like and still has they think strong. COVID just with And events. are existing, going office back obviously I are movies bounced So really people restaurants going

can box closure way think or there So foresee. the we in disease any militarily existing still I a here don't is the looning or that office

they been And for or of just again two and if part there. that You they close region, what weeks a a But it in region. it approach are right, it's which all generally certain open different they China is, outbreak up. as as tolerance. And they just there's close do has one is the quickly those theatres an will in landscape zero it's

Changjin, and of our theaters are though there been at X% then and theaters network. reopened were now there generally So million, delivered in Holiday or Lake in reopen. that $XX the the we theaters closed It's Battle that and theaters there The even the National theaters best numbers, less closed there there

a it's change, of people the office. of had don't don't vaccinated with that our policy But kind a material the So think live learning the It's to impact. switch to their I material among a I rest or impact of they going have think world COVID, would mostly. I variation whether off just probably different on say, box

Mike Hickey

guess concert and question Thanks. I U.S. The of and mandates their the theatres for me, to passed vaccine on last LA for other venues. sort back here.

November. that I early think goes live

but a for could cities? the if we work impactful or itself that And pretty you. could see on, I your also states has thoughts sort rate, there? or policy screens how curious your think Thank in obviously LA of of counties strong wondering curious other policy theaters sort Just be your this or vaccination

Richard Gelfond

fulsome have months, Well, to of take answer. to show our last it theater, look the theater. couple in get me countries vaccine to to our time give tell long been to been go if you just I results at and they you the in with strong. the a to York you, go over have would XX though you New vaccinated quite But And a have that can a you mandate

to be a required to they theater more as guess to a get people I have vaccinated impact. go should vaccinated positive So and are that

of I don't other transition the I and difference. until a that's think the use going in those of it get again to mandates, initiation a think countries make learn to time for saw them. learn apps to bit took material But slight during we people

Mike Hickey

guys. luck Good Thanks Nice. Rich.

Operator

we ahead. take go Thank our you. next And Beynon with Chad Please question from Macquarie.

Aaron Lee

is Aaron my taking for This for Chad. Thanks on Hi. question.

results costs and have especially the if guys job good controlling pandemic, focusing saw doing last years been of this on we strong through a and you quarter. the couple Over

As and about the recovery continues, how should expenses in XXXX? we think margins Thanks.

Richard Gelfond

Yes.

up I some them dealt before are extent. this we been, we most think There company have you people to a go territories because first going did. to in see happened had are other global with when COVID

let's we the days Obviously, throwing We out happy ourselves managed and windows. calls start quickly very a So way decisively and money very that on and drilled not investment down. we we way we to are here never understands did that return will. it's and never are react were that able and our understands we that company again,

rest the it's I marketing mean make movie. other marketing promote of terrific, things terrific and -- An we a one of job our I did marketing sure how again, On did department on movie. things Dune is the the you over-indexed we ordinary like where part marketing like opportunities an a Spider-Man, the reasons are our have of hand, for coming. a quarter at there we right a the am is you Ghostbusters, now really look

some go levels. to back costs XXXX will see you think I So of

money of going is of we the to right the spend increase. closed amount being the budgeting but We are middle basically in now

Aaron Lee

I appreciate That's helpful. it. you. Thank

push the U.S. about power being follow-up As for pricing have a in some quick me, exhibitors talked

as is this if trend the you have curious Just seen well?

Richard Gelfond

It's don't read. interesting But had Square, $XX. it's if know true. because Dune I tickets for I at were Lincoln

in me that that's, especially demand there know I so so the suggested been and And experiences to the So XX% operator AMC opening opening with true, with ones It movie was normal. that. day. is higher earlier differentiated XX%, in if clearly, about weekend, there's don't much that especially than and testing that's the has the IMAX,

IMAX pricing. set the So again doesn't

but movies for me specific opportunity exhibitor is we is up I the doing given simply there. and But people the them IMAX demand wouldn't surprise of think partner next Our demand the tested an it what there amount it. control. to year, that it's and It's out again, not

Aaron Lee

Thank you. it. Got

Operator

with Goss we our And question Research. Jim take Barrington you. go Thank from next Please ahead.

Jim Goss

you give the IMAX tie the might sector? exclusive you theatrical and seeing terms like of they participation are expanding deals with factual Are Thanks involve the would to that might Or you content And any cameras. there good some morning. demand traditional it incremental your Do I Museum totally to profits? also any in in services. about opportunities with into and content IMAX you renewed those aftermarket? had for start conversation opportunities just streaming services

Megan Colligan

their and of where I programs question. to There to play that our interested institutional spaces. to a and in we subscription are are downs a to there or we one, You that first in theaters so Neighbor?, RBG, for theatrical documentary commercial Be did pandemic space, lot going to documentary then commercial films partners lot are what of a space. think a boost in a that fare. documentaries. Won't our cut fourth in camera exhibition both And applies looking had IMAX are able the done like that quite the have the seeing of My a our And considered And seen that can documentaries XX-minute in are movies would answer Apollo content to actually number proliferation spike you with in The XX. well imagine third you smaller more in goers towards the documentaries. supported we that lot I XX-minute with documentary both series movies movie was have support of be support taking prior and are commercial we program think on movie And reasons. But your of Well, think I opportunities be and theaters

to in are over world. to to space us. are the in the And around then this also a be for think interested on supports have a those we service their that all nearly very certainly service. and So documentaries documentary I services as require that pretty streaming content XX-minute a But opportunities healthy streaming opportunity able runtime And looking greater interest does world. that there's an the every

documentaries. So pretty there's buying robust a market for

There's looking of are partner documentary an So are certainly a very We we the that a at. something really content. we keeping are for interesting of It's in the filmmakers. marketplace. point for it. highest interesting differentiation eye out There's lot something it's

of. are next taking we I But in decide in you see choosing us so, what will be documentaries. year think pretty or picky so a we the And yes, part start bigger position with a to to in

Jim Goss

box of with IMAX terms deals the studios? benefit terms the the in to But And you Okay. benefit in is any the camera, don't an aftermarket have office. to for drive people IMAX of first-run

Richard Gelfond

basis. to are we general available the Yes. the of I It's on mean the a them precedent rent. no on just might end there's that. for one piece for back I the something Or we off cameras negotiate way we movie. mean But contribute negotiate the will a contracts, Jim,

Jim Goss

will -- Okay. is I other about And the thing ask one last

Richard Gelfond

am happy afterwards. person. running take one offline over. I I we is to are Jim, question other am sorry the There

We late. running are just

you. other the person call. the So can take Thank

Operator

from Thank Goldman Sachs. Please Mike Ng take with you. our we And question ahead. go next

Mike Ng

in. changes about talk because Or screens to contributing Thank bit of any geographies for And just little by new Hi. or Avatar? could was demand countries Good because at for expansion a that not demand you key that some squeezing are and growth? change me of network you. for of screens geography? if whether if wondering post-pandemic Thanks morning. I of the all the to

Richard Gelfond

as in strong. our East, potential is areas because performance biggest So growth continue are China. I And probably you is Japan, Mike, that Middle for think the know, the the reason so

million. per pandemic, during Japan's So screen average $X.X the was

Middle The averages also new you is and much Arabia Saudi is which a UAE also per films, and it's and East, opening strong. valuable average dual Hollywood that programming screen best we particularly also second of tremendous up. half market has language pretty so Australia. China, that's local was And our was per very The have and because screen brand

ask just be you to those. will from, the So me see of markets we that growth would name I it three if think rate the fastest

what's progress and the Before LatAm. the Asia, slowed rebound there like to have would we are we And thinking Korea, certainly are again. by making were in Southeast places what in I could situation. hope pandemic, areas answer India, those Western their exhibitors make see financial be, Europe, progress, pandemic to those the starting we where think been I and making and ones there progress would wait the But how we quickly there have

Mike Ng

Okay. Thanks Rich. me, for squeezing Thanks.

Richard Gelfond

Okay. No problem Mike.

Operator

over that I additional to closing conclude And or today's call any to Gelfond Rich would session. for like will Q&A remarks. the turn back

Richard Gelfond

you our up. and am a we your us? on year-and-a-half met anyone have we in believer I the it tell asked at revenue. I have behind the places many is call the behind math had have been basis. it's this which to Sure. going a I big fact global getting us? quarter over, And from in operator. the Thank as you or say certainly company a revenue Is when and lives I own than But month, investors, difficult kept know on just results our and expectations you in is very know don't we keep better over

Every you our are give week, We we transparent. going up revenue.

the the IMAX. things meet move, seat kept we movies those at running times see figuring at as as around are to and you are there slate offices of out squeeze October the are going out and be you and them talking after my it. instead are put that are and and I sitting all every their our to is, office we are when up. around are going movies we are have how move as out in that that And look see been they wants at are company, the the way met we is market don't about operating when at I pandemic. far can And how sitting look feels about to going matrix studios if called class look going talent from open and was. pandemic? figuring be figuring number was we there from we to that mean problem we this something and I other to for filmmakers results the we before could But a a And yes, of demand to our that and pandemic. we There very our of of forward. expect target back the to kind going us that's it that improved to financial there And you So all There the going It going high indexing no I happens could and how them. continue IMAX. could said in. translate good into And

you very much. thank So

Operator

may conference will you you. call. now disconnect. Thank today's gentlemen, and This Ladies conclude

IMAX (IMAX) 29 Oct 212021 Q3 Earnings call transcript