IMAX (IMAX) 25 Apr 242024 Q1 Earnings call transcript

Good day and thank you for standing by. Welcome to the Q1 2024 IMAX Corporation Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.I would now like to hand the conference over to your speaker, Jennifer Horsley, Head of Investor Relations, please go ahead.

Good morning and thank you for joining us for IMAX's first quarter 2024 earnings conference call.

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

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that, highly margin to for will we expand the exhibitors. cash I building And as grow model momentum aperture, over share growth, accelerating under our filmmakers, turn the for deliver from our to network demand studios, call authorization.To content business expect asset-light, among IMAX to continue and increasing expansion.With our is flows conclude, our Q&A. growing million and operator have We available $XXX and we the repurchase consumers, incremental

our moment question, one Riley [Operator come Eric Wold And B. Securities. of from will for it Instructions] first

couple of I A questions, guess.

IMAX be shoot films shooting this I become their you -- you the guess, lock ever a IMAX that IMAX to your of network goer potentially with off, think a with either you up guess, Or to lot do studios this in talked Rich, for you could obviously you about of show First that you've from cameras? movie share? cameras higher DNA I norm or with having in requirement had. a maximum do be windows? through you IMAX drive could and IMAX the year or done that a or greatest production of by with could IMAX benefits number the what would the looking can need yours to become choice reserve cameras windows, Does demand specific in

ways digital with X Denis with cameras, One to Nolan IMAX So Dune. way which which Chris Villeneuve the did cameras, Oppenheimer. Eric, what film there what in other is cameras. was And is with are shoot did with is

of with digital is them set So work limit with cameras to the digital no built variety the ability that all to number or make cameras Basically, cameras, ones. major a a there we and the of really available. attachments of

filmmakers there's a much So as as would need. supply

number On film the limited of cameras. film side, there's a

However, this we're We've year, them. later some of going some more to been more. release building

just X but just depending could this other a with digital is do of unlimited projects.The schedule. number year, whatever, probably a guess, is constraint or only along film projects release would on the X be So probably how or your you production

a you So get shoot you IMAX if guaranteed release window. X-week with cameras,

on There of have kind guarantee I I don't summer, film But other film are the like there -- So let's could question, because say IMAX a of no, filmed directly like, it of on didn't is through no circumstances.The that a want popular. is depends of that which period that that. know is you answer say, we number cameras. your would very go to you the thing like limited filmmakers. with time, XX, to general It hands I there's was slots every

brand. That's which consistent like the of film the a the drinking movie. wine for that's not to thing bar which wine it, did, of Paul IMAX not is Sideways, on people a a So at kind X Giamatti with pick but lot

think going right want it, of answering it filmmakers the because content, think down don't close to So site. look camera to fill will extended release also your the is the who and an overlying benefit, a filmmaker? factor we you of enhance where of cameras, turned is, it with subject is IMAX without it's we many because number. the to it really question the that's matter is hope worthy we both don't the giving And and right I

My of operating can do the something with kind back segment. of another that you point are SSIMWAVE profitability? you is an you last contribution 'XX, question, a When think revenues can on that where you 'XX? to terms year us see start in could or we business' seeing in that overall and Is update inflection half of this more

originally, talked services I add within happen streaming and this we With it saving that we thing very past optimistic place. what were it, Vegas. just the formerly this streaming the So meetings. renamed could XXX product Eric, added problem is in Consumer We as in had known meetings, We on experiences. NAV had a Technology, main about the weekend, and Las of should broadcasters. We will was And I Disney+ a now to now where for was number and think, said, we Streaming to which money on. But IMAX about touched of SSIMWAVE, business. about in develop our we, a panel remain ballroom, have on people that think a one year. including had the briefly the with talk about things backlog of services.We've kind more we to streaming positive we developed we extremely several panels a

for or money a So could their streaming outlets in think of the content, whatever where lot we what save, NBA mostly example, are. to sports TNT of they're

lot positive, is go sign. So There's there's I can't but other to more going to predict product. side We remain when a at. the

the it sure me. investors going be time. you our predict can't but frustrates good, is I'm frustrates the I very think and So just to and that But I business

And our Wells Omar come Fargo. next question from will of Mejias

domestic IMAX first, cameras. having QX from also IMAX talked with production We've X% highest and almost highest ever about in currently in the in maybe total of the share the of America. North films number box office delivered Rich,

how post-pandemic trends you impact are the premium the the the and up all describe ahead of in IMAX? shift still market have that to and given you share means blockbusterization your can this lining demand general, in your this more runway potential favor? And Just cinema for what for of sort just experiences does

that analyze and call look numbers have studios versus at the at will leaning say, experience.And and you out So before could became our had when box office Dune using for in and And of numbers a belief had people of unmistakable, that started do with do going the cameras like ago that bigger And much I you probably it blockbusterization that part and up. to well it factors larger into of if at look other a and see PLS, which look their I DNA years will IMAX IMAX a I into you fake the add screens look you the share statistics, what of the streaming that supports pandemic. what people but kind I cinema blockbusters and our the things the at you television bigger premium and that choices, also pandemic And they for mean that's more and big been premium. IMAX more kinds probably clearly IMAX to think tailwind you a theaters. go special. that since has want, is trend variety And obviously, movies. premiumization been what leave divide homes, behind for is while.The but more come their for a that's they theater something greater for a of the just people And to if influenced call premium ended. of I was copycat what's and home want by that premium that's they pay

you creating films, as trends talked all well the those of think I the So software the blockbusterization, IMAX's in as, hardware. about, premiumization,

think all that manifest that's that IMAX itself signings you're the and way financial seeing results. I in

the ahead outperformance well expectations. of which Content to Solutions shifting in on came just And maybe margins,

sort for of guys You increased lower some Can drive the And the demand the content seeing opportunity and in of if there the of and drivers economics alternative as you spend. marketing unpack alternative expansion margin you're for highlighted describe content you about can IMAX? you maybe vertical? levers from that the talk some key of

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as in I marketing Dune year weeks-plus But behind with course, playing So to see you you margins. fall-through Avatar start look you the of that's days at some QX. in you QX mid-week the mean out what can opportunity through say for there. so put the on and X where the you we saw lower which spent comparator, to in a and And there? incrementality what's last And marketing the respect then, is coming came had good March, QX. and the had

And have steps of year. through so last lot you marketing come a

studios partner IMAX towards we some of a but on So what to Rich with of right way, that spend cameras. opportunities of together necessarily, opportunities our it a digital film And you're there's the IMAX leverage the us is have about effort talked when so of and on for with comes promote our lot cameras we respect all is that.And marketing has all and using system that in about in prior work calls to not in joint to to especially think seeing I down the where opportunities. before

question our ROTH Handler MKM. will of And next Eric from come

much the over job putting even more and line last inflation. you Content mostly is And system costs, of or several it's in When this? lot a expense year I sustainable line that keeping every This having that you've for despite were XXXX. no back at in is movies line look flat done the years. with a How Solutions into the seemingly really great you're pretty where DMR

we've -- through the this using process. about model technology that in talked and think about our remaster We our work is too, leverage to before, films significant. you When actually are to

a And a mentioned cost-effective process this titles much to language that as manner well created especially we so cloud as foreign ago, local do, but I allows at quicker. the in more and titles well think and while you us it

improvements so well all as those of have And some we of through as our remastering. for of well processes as sort which incorporating AI, in

realize the better then getting distribution. goes well back goes on.And reduce opportunity mentioning was, to comments as and reducing was cost it actually cost as sustainable and to time prior answer my to film ability We marketing use I are just our costs per our on that our the

to as opposed mode print savings so marketing the that's to as print, opposed some use where get and push of you which getting to channels digital opportunities more predominant now using And historically print So cost well. digital lots to marketing. you're as was can

as pound do unusual extract economic various able flesh out you you their sporting Are your events, to keep then a more with of when model rights for greater they leagues not sporting want look like same the fees. a And events? movie to to put it's to

recently, of first things. sporting we end which doing including of committed the The testing know, you all, the international but answer, some things, tests. not just basketball, soccer done as a territories. U.S., we Olympics, We've around We're with some things the in a by Eric, NHL. some we've haven't number to of We're way is now tests reporting really in that lot with announced of the done

too Easter capacity which it's it's at look like packed. times will really Sunday, built to But goes year. really important back point, I not about IMAX Natasha, to So different for what church during the and weekdays, packed soon the margin But think as a like utilization.So that there. the is it it's profile was a say is

our margin margin putting but you're that. it a revenues, our through mix, you from very those way empty affects a how because assessing time extremely when have at it's content where at times, or no So really we're network slow long it's high

will question Macquarie. coming next be Beynon Our Chad of from

focus you with We're but of corporations there Nice quarter. the and longer Good for the you on for starting the just could box just something this see product kind product I hearing local standpoint. to a market, that demand to that to is the good global of there with and a see from market? a to taking is Are continue when in softness or China. just for rest wanted well year consumer consumer? consumer, and the the diversification Can hits certain or seeing little lot that talk recover, either of office, in the just about of the outlook restrictions consumer are

I the the to and into question you schedule. the in macro other One is is So the think parts. separate China release have issues X

side there. was very even the it the though in opened spots the Chinese sector. challenged good So was quite in the just pandemic, film XXXX, the one had a fact up had bright the And from film economy China, that few economy of in despite the year

of in As you had and far good not years 'XX, our off 'XX. know, was best a in matter as fact, actually a year it IMAX pretty

say, with couple quarter, no have XXXX, that that worried for with to China of to for that audience driven. the has people selection last U.S. film of the that much be estate, bit do terms linear do and before is first and and example.In the the more films I available, in will a issue would in our think more economy appetite was real film, the I the less in Chinese And less little much like economy I than that the who're there are and into getting was of sectors the So this got but a I'm fine, was in other now year record, film question years.

in local switch the there's and release. in So submitted accepted.And they've then future, be for to they already going most the been foreseeable our of films films or are when

have have and the which they'll We films specific into as the is visibility into We industry, lot of much positive. visibility play. how a don't

is rest answer that I the don't behaving the So would films in of the depends rather on any tax does. but from I see think again, perform, but prevent China world how the dollars particular in way it the it say I'd impediments

the million And allocation, capital prices. then spent $XX on on buybacks at good

Rich, partners, that done. of some you you go certainly, So tech the overall different see great just in to what to market when to being M&A when you talk are seeing there with of or a that convert incremental the kind talked opportunities buybacks? and Are still we these capital allocation, tuck-in should call you about conferences from on SSIMWAVE? focus just cap

documentaries for showed are using about think, I we're in in our prepared to play, And this time, So think strategy we or content the at whether biggest do really at content that. and same we're the more at acquisition not of a reason awesome. we is it's as I is we remarks, part be it going really 'XX, 'XX time platform model, our And strong I And have don't willing sort. ways. think significant that our think first I any showed aperture quarter. talked my looking and 'XX And and in to in is expanding what the alternative a of

network a So theater lot so grow. signing the we will have, obviously, more

a of to generate cash earnings. our have improved ability we flow So the company improved and faith lot of in

do would maybe in So way. only that a we don't you'll something think I give off.The you is I see caveat would fills small in, us veering

be we about found we joint and know, that's you as we that that opportunistic But our which help if in help core would something something about. venture strategies, that good will arrangements, could buying otherwise, have or some stock. found extremely it I our IRR of invest something think could think SSIMWAVE continuing be So profile, when we'll

Sachs. from be Laszczyk question next Stephen our Goldman of And coming will

local see Rich, language, on then 'XX on the in how on maybe release just to and the expecting language And in the over year, beyond? you maybe any how stands update us box million quarter. had ahead scale I slate Can the language local slate think first into today? the given updates looking the more you're course $XX local of

Yes.

kind the it it I about local you snapshot think box good language So office I time a was think be will of pretty hope last better, in to Stephen, last we were We sure. something X or I feel from was X week, would we in and year, in films. one Japan. than our initiative. language had local maybe give not we in Korea had Indonesia, X X X China, in India, playing it I'm even And like

because kind So driven. the at business a the blockbuster bit regular a we look differently our little is business. it's business But just a Hollywood of part Hollywood of it than more

films the if and able more what titles even maybe tell So you a I than, were us, like for approach is Japan. Chinese films close of in which Japanese 'XX, I be they to me can what or language, you big talking slate a the portfolio ask are utilization it's are additive theater of for being China forecast.But in to do as local in and just 'XX or other increasing Natasha about obviously, the both and network

to visibility way, somewhat we the Hollywood approach because the So our local more in way say elephant of or And language next are accomplishing in We other year part filling But films bigger have in on more tactical investing whereas the after would haven't we're that. seen gaps like to the different. the terms the I our schedule. -- is I In the hunting, in develop of into kind anything year obstacles films strategic don't films, continue is that. of is in that. same a really of goal

Mike Benchmark And from Hickey The come our Company. next will of question

films. And think do blockbusters, and curious Dune-Part the North 'XX help if look guys on you and installations of just share for clear on we signings should those you of And system here and see, in guess I backdrop to of XQ obviously, sort about, and with winners, Oppenheimer, and follow-through signings your, by bridge just then about just I of with IMAX? sort you North performance it but the the with that curious installations. great the should signings into just opportunity think system of 'XX America.I are would there the seems obviously, that thinking to your I share share a you like I you've 'XX influence the on led you up. guess, local and serve profound great more I be thinking of your slate that slate slate. just your When about market sure. I that, pretty like Rich, picked your but 'XX, had matters on and of your just opportunity Rich, more on with And they're on that But tech domestic go can language, guess maybe maybe America?And I'm tech a thinking maybe said cameras the likely, you film and of heavy guess, in it's difficult pick global pretty year-over-year. some it's sort But and you that you how the performance obvious and where see think said question pace quarter not is, nailing it kind 'XX market, can opportunity collaboration. use the of influence of opportunity second outside to your got how quarter. it's just And down cameras Hollywood you it, guess are Hollywood congratulations Two. a in 'XX. and And Obviously,

the predict in signings -- XX is I'm amount someone So installed XX But get then have of see quarter And activity or we things. today, question. weeks, installs you're signings should But and have a coming. But XX signings very to answer who and and I feeling period the the go you think a mean, your -- your first installations I said in to XX our fair to not we've going one time. but level slower, not first is the high, we I'm that second remarks, going back as more coming as also. of with back through are

think the going quarter by of no remarkable in with and you coming 'XX and as I as time, the that's leaning largely think the around seen. you're 'XX of it's I a it's -- market backwards driven pandemic share, out a I I 'XX going in added. indication coming there's momentum heavily but lot you're that of tons So And it. go leaning incredible whatever 'XX in, whether things a bill signings, And slowed I've into matter that's installs, of our we DNA create a whether in, I CinemaCon, slate, forward slate those time, in approach strike. slate, don't as as makers 'XX X I IMAX in, I studios much slate if go fact, you of a it.So heavily a with a to full all rider whether down.And lots And that's lot heavily that of about, number think and business. remind to out of And signings especially have a DNA the there's says, marketing look indices, activity should that would talking in have of think when IMAX leaning everyone, you're it's in

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financial think trends basis. spilling artistic I global definitely on over are both trends, trends So a the and

question And our Jim Barrington comes Goss from next of Research.

go on view can time might will I'm about of because content and think talked week interplay those to you who fit? the with the than you of targeted terms navigate Rich, as wondering to selective the how cameras. on IMAX broadened things with you've make what you're talked I I'm content wondering decisions how your work just some being and greater also you that and And in of displays? feel in creators. a about you alternative is And what screen on during -- and you know that weekend this of very screens variety the And IMAX rather you've especially work decide then terms of

of absolutely, some bit Yes. a think that. about little Natasha Jim, spoke I

mentioned, aimed very mean on incremental. exciting that do I because we're Wednesdays. and project, release, middle where when go weekend not have as big releases discussion our a So film of to really declining partnership we in we're out a the is a she really there's it's with a to now, on it AXX but right project

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we're our be way and the but blockbuster positioning projects to platform utilization in way it the definitely fill that's not complementary is core our with to use So competitive in gaps. a to

on weren't some of And the anything fond week favor else. cutting there was during so time in you're a their the of back showings of studios

you're headway of your screen terms gather you is more to what making in offer usage I your appropriate? and ability think them control So

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X.X%, And on Congratulations last impressive. very that thing.

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what you we'll have we assume better I I assume. financial mean, performance. that think should That's

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So at extremely moment we I feel good. think the

question Securities. of And be Frankel our last Steven Rosenblatt will from coming

be I'll quick.

where us for out the of tried save operation happen, detail sub opportunities? if that that a China to without didn't consolidate sacrificing to cost Maybe pull can as you way money. You

Well, Steven. good question,

doing been fact, In we've that.

and So across we've kind broaden Shanghai, it's effort the at into rent. in we space our our cost We to of and And the just financial half some in office board, our our year. manage half because Again, moved been haven't you of this, save the is costs and back headquarters to can't try there one until the there. goals area, strategic IR the what it, this But opportunities to a made looking gotten it? are ask yet at going much but what I'll we've later decision question, didn't that go presents.And address privatize do. we we we

will like China's nice would strategic think the manage to about on even get that didn't of those realized we what though it way I then Chinese looks financial could do. just by we costs want the how being make about. savings way we've do liquidity if along we done I'll it we in there. some our wasn't the feel it, depend it. reminding shareholders But the performance, IMAX's had how and it That everyone -- be was decision

China. are now of opportunity, areas the So assume? that's True? And outside another efforts on sales concentrated I that

India new our and in Actually, customers, Turkey. Steve. is, it X actually we in X year-to-date, have 'XX signings in Yes, X

so well. thinking great is from and to in you at world we are And new countries strategy we to only through partners rest can but getting in, can who with the look not partners expand our expand as way are as opportunities expand we new a of regions, continue expand which to

the further And like management I'm back closing now turn conference would questions. remarks. I showing to for to no

that. way for you, to joining with mean, this us. I was and predicted down Thank a We year. agree year be operator, thank you didn't

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for and joining forward.Thank being think you move more visible more continue all and we think I we us. to I as deliver now

Thank conference today's participating. call. And this concludes you for

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