A scene from AvatarAnonymous
Giant-screen movie operator Imax Corp. said Thursday a strong slate of films, including the blockbuster Avatar, helped it bounce back to a fourth-quarter profit and it forecast a "very strong year" ahead.
Imax, which is enjoying a revival as moviegoers flock to see such 3D films as the recently released Alice in Wonderland, said early box office returns signal improved results.
"In the first quarter of last year, we did roughly $30-million (U.S.) in film revenues and, to date, in the first quarter this year, we're up to about $187-million," chief executive officer Richard Gelfond said in an interview. "I think it will be significantly better than our first quarter last year."
Avatar, the all-time top grossing movie, contributed just 12 days of sales in the fourth quarter and is seen giving a bigger lift to the first quarter.
The Mississauga-based company issued its better than expected results before market opened on Thursday.
Imax posted a net profit of $4-million, or 6 cents a share, compared with a year-earlier net loss of $9 million, or 21 cents a share.
Revenue rose 98 per cent to a record $54.2-million.
That betters analyst expectations for earnings of 7 cents a share and revenue of $45-million, on average, according to Thomson Reuters I/B/E/S.
Film revenue in the quarter jumped 104 per cent to $15.1-million and system sales rose 69 per cent to $19.6-million.
Revenue from joint venture theatre system installations grew more than fivefold and sales from its production and digital remastering technology nearly quadrupled.
Gross margin rose to $27.9-million, or 51.4 per cent of revenue, from $6.5-million, or 23.6 per cent of revenue, in the 2008 quarter.
At quarter end, Imax had a backlog of 136 theatre systems, compared with 21 at the end of 2008.
The company said its 2010 film slate includes the release of How to Train Your Dragon on March 26, Iron Man 2 and Shrek Forever After in May, along with Toy Story 3 and The Twilight Saga: Eclipse in June.
Imax, which is keen to expand its presence in Asia, agreed this week to form a joint venture with a South Korean exhibitor to operate up to 15 new theatres in that country. In December it said it was in talks with at least five companies in China.
"If you use a baseball analogy, Imax is only getting to first base. I think there's a long way to go," Mr. Gelfond said.