Bravo,
IMAX (Nasdaq: IMAX).
The company's second quarter was so well-received three
months ago -- after the cinematic enhancer posted its first
profit in three years -- that it delivered a sequel this
morning.
IMAX's third-quarter report is solid. Revenue soared 33%
to $43.6 million. The company behind the gargantuan movie
screens that are breathing new life into the local
multiplexes also posted a profit of $0.02 per share. The
bottom line would have been a hearty $0.08 per share if not
for the accounting impact of share-based compensation as a
result of IMAX's higher stock price.
It will only get better from here, as IMAX expects
earnings to grow in 2010.
The only real downer in the report is that film and
production revenue dipped slightly during the period. IMAX
has a larger theater base, and it's on pace to screen a
record 13 Hollywood blockbusters on its beefed-up platform
this year. However, the seemingly strong summer is stacked
against
Time Warner 's (NYSE: TWX)
Batman: The Dark Knightlast year. The superhero
juggernaut delivered $60.6 million in ticket sales through
IMAX a year ago.
There's no turning back, though. The company plans to add
28-32 systems to its global base of 403 theaters in the
fourth quarter, with most of those being part of the
company's revenue-sharing arrangements with leading
exhibitors including
Regal Entertainment Group (NYSE: RGC) and
AMC.
The 2010 release slate is already fleshing itself out with
supersized treatments of Time Warner,
Disney (NYSE: DIS), and
DreamWorks Animation (NYSE: DWA)
releases.
Things are also looking good on the balance sheet. IMAX
has received a commitment letter for a $75 million credit
facility with
Wells Fargo 's (NYSE: WFC) Wachovia, giving
the company the wiggle room needed to redeem the last of its
senior notes by year's end. Financing moves over the past
year have increased the company's
outstanding
shares, but at least the company is sporting positive
book
valuenow. Continued... |