IMAX China (1970) H2 2021 earnings summary

Executive summary

• FY2021 revenue and earnings rebounded to more than 90% of 2019 levels, despite limited Hollywood releases; local-language box office reached a record $150 million.

• Strengthened local-filmmaker partnerships, technology installations and blockbuster positioning supported growth heading into 2022.

Financial highlights

• FY2021 revenue was $113 million, up 116% YoY; adjusted earnings were $42 million versus a $5 million net loss in 2020.

• H2 revenue was $59.4 million, up 30% YoY and 91% of 2019; gross margin was $35.1 million, 50% higher YoY and in line with 2019.

• H2 adjusted net income of $20.3 million and adjusted EBITDA of $33 million rose 87% and 56% YoY, and reached 103% and 107% of 2019, respectively.

• FY technology sales and maintenance revenue rose 98% YoY to $73 million, 3% above 2019.

Outlook and guidance

• Management expects a strong 2022 slate of Hollywood and local-language blockbusters to support box office and increase IMAX indexing; no specific full-year box-office target was given.

• The 2022 Hollywood slate includes Avatar, Jurassic World, Doctor Strange and other titles, subject to Chinese release access.

• Backlog installations, laser upgrades and new theater opportunities are expected to support expansion; management anticipates starting backlog installations in 2022.

• Local-language opening-weekend indexing was ~5%; management sees potential to raise it toward levels achieved with Hollywood tentpoles.