SEC Filing | IMAX Corporation

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8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(D)

OF THE SECURITIES EXCHANGE ACT OF 1934

March 28, 2023

Date of report (Date of earliest event reported)

IMAX Corporation

(Exact Name of Registrant as Specified in Its Charter)

Canada

001-35066

98-0140269

(State or Other Jurisdiction

of Incorporation)

(Commission

File Number)

(I.R.S. Employer

Identification Number)


2525 Speakman Drive		902 Broadway, Floor 20
Mississauga, Ontario, Canada L5K 1B1		New York, New York, USA 10010
(905) 403-6500		(212) 821-0100

(Address of principal executive offices, zip code, telephone numbers)

N/A

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading
Symbol(s)

Name of each exchange

on which registered

Common Shares, no par value

IMAX

The New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter):

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 7.01 Regulation FD Disclosure.

IMAX Corporation (the “Company”) is filing this Current Report on Form 8-K to provide investors supplemental information related to a change in segment reporting in fiscal 2023. The Company is providing certain unaudited historical financial information, which has been recast to align with the new segment structure. This recast financial information is being provided to aid in comparability and has no impact on previously reported consolidated financial statements for any period.

Effective for the quarter ended March 31, 2023, the Company updated its reportable segments to two reportable segments: (i) Content Solutions and (ii) Technology Products and Services. The new reportable segments align with how the chief operating decision maker assesses segment performance and allocates resources. A summary of the reportable business segments under the new reporting structure follows:

Content Solutions includes results associated with entertainment content that the Company curates for distribution for viewing in the network of the Company’s theater systems (“IMAX Systems”). Within this segment are the following two disaggregated revenue lines:

Film Remastering & Distribution, which consists of revenue based on contingent box office receipts from film remastering and distribution (formerly termed DMR) agreements with studios; and

Other Content Solutions, which consists of revenues associated with film distribution (distribution of documentary films, primarily to institutional theaters, and the distribution of exclusive live experiences), post-production and camera rentals.

Technology Products and Services includes results associated with our system technology business, including sales, rentals, and maintenance. Within this segment are the following four disaggregated revenue lines:

System Sales, which consists of (i) revenues from the sale of IMAX Systems to exhibitors through sale arrangements or long-term lease arrangements that for accounting purposes are classified as sales-type leases and (ii) after-market sales of IMAX System parts and 3D glasses;

System Rentals, which consists of revenues from the operating lease arrangements of IMAX Systems to exhibitors, primarily through joint revenue sharing arrangements where the Company earns rent based on a percentage of contingent box office receipts (previously termed JRSA, contingent rent);

Maintenance, which consists of revenues from the provision by the Company of maintenance services, as required in its contracts, over the life of the system contract in exchange for an annual maintenance fee paid by the exhibitor; and

Finance Income, which consists of revenues recognized over the term of the sales-type lease or financed sale receivable associated with the sales of IMAX Systems.

The Company’s results that do not meet the criteria to be considered a reportable segment will be disclosed within All Other for segment reporting purposes, which principally includes revenues from IMAX Enhanced and SSIMWAVE Inc., a wholly-owned subsidiary of the Company.

The information in this Item 7.01, including the exhibit attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing by the Company under the Securities Act of 1933 or the Securities Exchange Act of 1934, except as shall be expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits


Exhibit No.		Description

99.1		Unaudited segment financial information.

104		Cover Page Interactive Data File (formatted as inline XBRL).

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


	IMAX Corporation
	(Registrant)

Date: March 28, 2023	By:	/s/ Natasha Fernandes
	Name:	Natasha Fernandes
	Title:	Chief Financial Officer and Executive Vice President

	By:	/s/ Elizabeth Gitajn
	Name:	Elizabeth Gitajn
	Title:	Senior Vice President, Finance and Controller

EX-99.1

Exhibit 99.1

IMAX Historical P&L - Consolidated


$ in 000s	2018									2019						2019									2020						2020									2021						2021									2022						2022
	Actuals			Actuals															Actuals															Actuals															Actuals
	FY			Q1			Q2			Q3			Q4			FY			Q1			Q2			Q3			Q4			FY			Q1			Q2			Q3			Q4			FY			Q1			Q2			Q3			Q4			FY
IMAX Global Box Office		1,032,153			256,300			364,932			246,054			241,165			1,108,513			95,226			2,658			70,358			90,979			259,220			110,231			108,558			141,893			277,534			638,216			173,183			247,900			177,097			251,545			849,726

REVENUES
Film Remastering & Distribution		110,793			27,950			39,293			26,665			26,857			120,765			10,629			546			6,886			10,204			28,265			11,944			11,793			15,701			31,221			70,659			19,564			27,581			19,919			27,803			94,867
Other Content Solutions		13,166			2,764			3,922			4,565			2,222			13,473			2,453			3,182			1,865			1,177			8,677			814			1,856			1,930			1,730			6,330			1,424			1,963			2,049			1,517			6,953

Content Solutions Revenue	$	123,959		$	30,714		$	43,215		$	31,230		$	29,079		$	134,238		$	13,082		$	3,728		$	8,751		$	11,381		$	36,942		$	12,758		$	13,649		$	17,631		$	32,951		$	76,989		$	20,988		$	29,544		$	21,968		$	29,320		$	101,820
% of Total Revenue		33.1	%		38.3	%		41.2	%		36.2	%		23.4	%		33.9	%		37.5	%		42.1	%		23.5	%		20.3	%		27.0	%		32.9	%		26.8	%		31.1	%		30.3	%		30.2	%		35.0	%		39.9	%		32.0	%		29.9	%		33.8	%
System Sales	$	107,122		$	14,698		$	19,290		$	21,188		$	61,379		$	116,555		$	5,174		$	2,103		$	15,360		$	25,024		$	47,661		$	5,469		$	14,526		$	12,000		$	30,642		$	62,637		$	7,973		$	7,394		$	17,145		$	32,997		$	65,509
System Rentals		73,371			17,857			25,301			16,546			16,228			75,932			5,971			(137	)		4,473			7,534			17,841			8,359			7,862			9,887			20,076			46,184			12,643			18,525			12,540			18,060			61,768
Maintenance		49,684			12,951			13,207			13,657			13,336			53,151			7,370			—			5,855			8,774			21,999			8,906			11,235			13,055			20,143			53,339			14,942			14,683			13,939			13,044			56,608
Finance Income		11,598			2,681			2,578			2,845			2,807			10,911			2,547			2,506			2,441			2,622			10,116			2,605			2,941			2,635			2,611			10,792			2,305			2,255			1,917			2,006			8,483

Technology Products and Services Revenue	$	241,775		$	48,187		$	60,376		$	54,236		$	93,750		$	256,549		$	21,062		$	4,472		$	28,129		$	43,954		$	97,617		$	25,339		$	36,564		$	37,577		$	73,472		$	172,952		$	37,863		$	42,857		$	45,541		$	66,107		$	192,368
% of Total Revenue		64.6	%		60.1	%		57.6	%		62.8	%		75.4	%		64.8	%		60.3	%		50.5	%		75.5	%		78.5	%		71.3	%		65.4	%		71.8	%		66.4	%		67.7	%		67.9	%		63.1	%		57.9	%		66.2	%		67.4	%		64.0	%
All Other Revenue	$	8,667		$	1,297		$	1,205		$	924		$	1,451		$	4,877		$	758		$	655		$	376		$	655		$	2,444		$	657		$	742		$	1,394		$	2,149		$	4,942		$	1,185		$	1,567		$	1,246		$	2,619		$	6,617
% of Total Revenue		2.3	%		1.6	%		1.2	%		1.1	%		1.2	%		1.2	%		2.2	%		7.4	%		1.0	%		1.2	%		1.8	%		1.7	%		1.5	%		2.5	%		2.0	%		1.9	%		2.0	%		2.1	%		1.8	%		2.7	%		2.2	%

¹ TOTAL	$	374,401		$	80,198		$	104,797		$	86,390		$	124,279		$	395,664		$	34,902		$	8,855		$	37,256		$	55,990		$	137,003		$	38,754		$	50,955		$	56,602		$	108,572		$	254,883		$	60,036		$	73,968		$	68,755		$	98,046		$	300,805

² Global Box Office Take Rate %		17.8	%		17.9	%		17.7	%		17.6	%		17.9	%		17.7	%		17.4	%		15.4	%		16.1	%		19.5	%		17.8	%		18.4	%		18.1	%		18.0	%		18.5	%		18.3	%		18.6	%		18.6	%		18.3	%		18.2	%		18.4	%

COSTS AND EXPENSES APPLICABLE TO REVENUES
Content Solutions	$	50,181		$	11,080		$	18,766		$	12,545		$	14,571		$	56,962		$	11,112		$	5,488		$	11,983		$	6,155		$	34,738		$	4,707		$	6,370		$	9,749		$	10,894		$	31,720		$	8,363		$	12,191		$	12,828		$	17,198		$	50,580
Technology Products and Services	$	107,207		$	23,189		$	25,698		$	26,302		$	46,581		$	121,770		$	17,959		$	10,753		$	21,242		$	29,202		$	79,156		$	16,409		$	18,685		$	19,042		$	32,775		$	86,911		$	19,447		$	17,148		$	23,790		$	30,928		$	91,313
All Other	$	9,084		$	789		$	779		$	423		$	770		$	2,761		$	745		$	302		$	202		$	320		$	1,569		$	357		$	297		$	327		$	865		$	1,846		$	455		$	594		$	436		$	1,072		$	2,557

TOTAL	$	166,472		$	35,058		$	45,244		$	39,270		$	61,921		$	181,493		$	29,816		$	16,543		$	33,427		$	35,677		$	115,463		$	21,473		$	25,352		$	29,118		$	44,534		$	120,477		$	28,265		$	29,933		$	37,054		$	49,198		$	144,450

GROSS MARGIN
Content Solutions	$	73,778		$	19,634		$	24,449		$	18,685		$	14,508		$	77,276		$	1,970		$	(1,760	)	$	(3,232	)	$	5,226		$	2,204		$	8,051		$	7,279		$	7,882		$	22,057		$	45,269		$	12,625		$	17,353		$	9,140		$	12,122		$	51,240
Technology Products and Services	$	134,568		$	24,998		$	34,678		$	27,934		$	47,169		$	134,779		$	3,103		$	(6,281	)	$	6,887		$	14,752		$	18,461		$	8,930		$	17,879		$	18,535		$	40,697		$	86,041		$	18,416		$	25,709		$	21,751		$	35,179		$	101,055
All Other		(417	)	$	508		$	426		$	501		$	681			2,116		$	13		$	353		$	174		$	335			875		$	300		$	445		$	1,067		$	1,284			3,096		$	730		$	973		$	810		$	1,547			4,060

TOTAL	$	207,929		$	45,140		$	59,553		$	47,120		$	62,358		$	214,171		$	5,086		$	(7,688	)	$	3,829		$	20,313		$	21,540		$	17,281		$	25,603		$	27,484		$	64,038		$	134,406		$	31,771		$	44,035		$	31,701		$	48,848		$	156,355

OPERATING EXPENSES
Selling, general and administrative expenses		117,477			27,649			32,136			29,482			34,189			123,456			28,636			29,796			24,815			25,238			108,485			25,209			28,807			28,377			34,929			117,322			30,181			37,095			32,905			37,862			138,043
Share-based compensation		20,102			3,903			6,485			4,983			5,379			20,750			3,707			6,467			5,151			5,327			20,652			4,944			6,396			5,706			6,730			23,776			5,726			7,263			4,985			7,464			25,438
SG&A - excl. share-based comp		97,375			23,746			25,651			24,499			28,810			102,706			24,929			23,329			19,664			19,911			87,833			20,265			22,411			22,671			28,199			93,546			24,455			29,832			27,920			30,398			112,605
Research and development		13,728			1,136			1,222			1,359			1,486			5,203			2,200			1,232			1,130			1,056			5,618			1,471			2,200			2,025			1,248			6,944			1,196			1,356			1,115			1,633			5,300
Amortization of intangibles		4,145			1,075			1,218			1,271			1,391			4,955			1,321			1,344			1,349			1,380			5,394			1,141			1,190			1,255			1,291			4,877			1,197			1,104			1,111			1,417			4,829
Credit loss expense (reversal), net		3,130			431			927			599			473			2,430			10,217			1,440			3,925			3,026			18,608			305			(1,872	)		(3,317	)		933			(3,951	)		7,229			112			808			398			8,547
Asset impairment		—			—			—			—			—			—			1,151			—			—			—			1,151			—			—			—			—			—			—			4,470			—			—			4,470
Impairment of investments		—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—
Legal judgement, arbitration awards and executive transition costs		14,731			—			—			—			—			—			—			—			—			4,105			4,105			—			(1,770	)		—			—			(1,770	)		—			—			—			—			—
Exit costs, restructuring charges and associated impairments		9,542			850			—			—			—			850			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—

Total Operating Expenses	$	162,753		$	31,141		$	35,503		$	32,711		$	37,539		$	136,894		$	43,525		$	33,812		$	31,219		$	34,805		$	143,361		$	28,126		$	28,555		$	28,340		$	38,401		$	123,422		$	39,803		$	44,137		$	35,939		$	41,310		$	161,189

Income (loss) from Operations	$	45,176		$	13,999		$	24,050		$	14,409		$	24,819		$	77,277		$	(38,439	)	$	(41,500	)	$	(27,390	)	$	(14,492	)	$	(121,821	)	$	(10,845	)	$	(2,952	)	$	(856)		$	25,637		$	10,984		$	(8,032	)	$	(102	)	$	(4,238	)	$	7,538		$	(4,834	)

Realized and unrealized investment gains (losses)		—		$	2,491		$	(4,544	)	$	(490	)		2,026			(517	)	$	(4,539	)	$	2,025		$	1,575		$	(1,142	)		(2,081	)	$	5,248		$	33		$	30		$	29			5,340		$	34		$	30		$	35		$		(29)		70
Retirement benefits non-service expense		(499	)	$	(160	)	$	(160	)	$	(160	)		(257	)		(737	)	$	(116	)	$	(130	)	$	(186	)	$	(168	)		(600	)	$	(114	)	$	(116	)	$	(117	)	$	(116	)		(463	)	$	(139	)	$	(138	)	$	(140	)	$	(139	)		(556	)
Interest Income		1,844			570			572			490			473			2,105			365			891			586			546			2,388			583			559			538			538			2,218			502			417			257			252			1,428
Interest Expense		(2,916	)		(681	)		(636	)		(489	)		(987	)		(2,793	)		(648	)		(1,581	)		(2,391	)		(2,390	)		(7,010	)		(2,304	)		(1,690	)		(1,540	)		(1,558	)		(7,092	)		(1,705	)		(1,326	)		(1,323	)		(1,523	)		(5,877	)

Income (loss) before taxes	$	43,605		$	16,219		$	19,282		$	13,760		$	26,074		$	75,335		$	(43,377	)	$	(40,295	)	$	(27,806	)	$	(17,646	)	$	(129,124	)	$	(7,432	)	$	(4,166	)	$	(1,945	)	$	24,530		$	10,987		$	(9,340	)	$	(1,119	)	$	(5,409	)	$	6,099		$	(9,769	)

Income tax expense (benefit)		9,518			3,648			5,308			3,030			4,782			16,768			15,505			(10,248	)		19,349			1,898			26,504			3,068			1,946			4,402			11,148			20,564			2,610			3,133			2,348			2,017			10,108
Equity in losses of investees, net of tax		(492	)		(84	)		(138	)		166			59			3			(529	)		—			(1,329	)		—			(1,858	)														—			—			—						—			—

Net income (loss)	$	33,595		$	12,487		$	13,836		$	10,896		$	21,351		$	58,570		$	(59,411	)	$	(30,047	)	$	(48,484	)	$	(19,544	)	$	(157,486	)	$	(10,500	)	$	(6,112	)	$	(6,347	)	$	13,382		$	(9,577)		$	(11,950	)	$	(4,252	)	$	(7,757	)	$	4,082		$	(19,877	)

Net Earnings (Loss) from Discontinued Operations		—			—			—									—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—

Net income (loss)	$	33,595		$	12,487		$	13,836		$	10,896		$	21,351		$	58,570		$	(59,411	)	$	(30,047	)	$	(48,484	)	$	(19,544	)	$	(157,486	)	$	(10,500	)	$	(6,112	)	$	(6,347	)	$	13,382		$	(9,577)		$	(11,950	)	$	(4,252	)	$	(7,757	)	$	4,082		$	(19,877	)

Net income (loss) attributable to non-controlling interests		(10,751	)		(4,222	)		(2,439	)		(1,863	)		(3,181	)		(11,705	)		10,057			4,080			1,275			(1,701	)		13,711			(4,340	)		(3,099	)		(2,034	)		(3,279	)		(12,752	)		(1,659	)		1,400			(1,196	)		(1,468	)		(2,923	)

Net income (loss)	$	22,844		$	8,265		$	11,397		$	9,033		$	18,170		$	46,865		$	(49,354	)	$	(25,967	)	$	(47,209	)	$	(21,245	)	$	(143,775	)	$	(14,840	)	$	(9,211	)	$	(8,381	)	$	10,103		$	(22,329	)	$	(13,609	)	$	(2,852	)	$	(8,953	)	$	2,614		$	(22,800	)

Net income (loss) per share	$	0.36		$	0.13		$	0.19		$	0.15		$	0.29		$	0.76		$	(0.82	)	$	(0.44	)	$	(0.80	)	$	(0.37	)	$	(2.43	)	$	(0.25	)	$	(0.16	)	$	(0.14	)	$	0.17		$	(0.38	)	$	(0.23	)	$	(0.05	)	$	(0.16	)	$	0.05		$	(0.40	)

IMAX Historical P&L - Consolidated


$ in 000s	2018									2019						2019									2020						2020									2021						2021									2022						2022
	Actuals			Actuals															Actuals															Actuals															Actuals
	FY			Q1			Q2			Q3			Q4			FY			Q1			Q2			Q3			Q4			FY			Q1			Q2			Q3			Q4			FY			Q1			Q2			Q3			Q4			FY
Adjusted net income (loss)	$	57,799			10,811			19,693			12,811			21,470		$	64,785			(28,726	)		(26,061	)		(44,625	)		(12,651	)	$	(112,063	)		(14,809	)		(6,972	)		(5,032	)		18,393		$	(8,420	)		(8,244	)		3,922			(3,027	)		10,556		$	3,207

Adjusted net income (loss) per share	$	0.91		$	0.18		$	0.32		$	0.21		$	0.35		$	1.05		$	(0.48	)	$	(0.44	)	$	(0.75	)	$	(0.21	)	$	(1.89	)	$	(0.25	)	$	(0.12	)	$	(0.08	)	$	0.31		$	(0.14	)	$	(0.14	)	$	0.07		$	(0.05	)	$	0.19		$	0.06

Diluted Shares outstanding		63,207			61,559			61,507			61,479			61,542			61,489			60,418			58,808			58,859			58,872			59,237			59,012			59,367			59,244			59,805			59,126			58,575			57,856			56,039			55,659			57,371
Reported net income (loss)		33,595			12,487			13,836			10,896			21,352			58,571			(59,411	)		(30,047	)		(48,484	)		(19,544	)		(157,486	)		(10,500	)		(6,112	)		(6,344	)		13,379			(9,577	)		(11,950	)		(4,251	)		(7,757	)		4,081			(19,877	)
Income tax expense (benefit)		9,518			3,648			5,308			3,030			4,782			16,768			15,505			(10,248	)		19,349			1,898			26,504			3,068			1,946			4,402			11,148			20,564			2,610			3,133			2,348			2,017			10,108
Interest Expense, net of interest income		1,072			111			64			(133	)		381			423			150			524			1,509			1,537			3,720			1,412			432			261			257			2,362			180			179			354			559			1,272
Depreciation and amortization, including film asset amortization		57,437			14,211			15,593			15,696			17,987			63,487			15,252			11,930			14,112			12,312			53,606			12,677			12,994			14,899			15,512			56,082			12,741			14,282			15,640			13,998			56,661
Amortization of deferred financing costs																																			309			699			741			764			2,513			1,023			730			712			712			3,177

EBITDA	$	101,622		$	30,457		$	34,801		$	29,489		$	44,502		$	139,249		$	(28,504	)	$	(27,841	)	$	(13,514	)	$	(3,797	)	$	(73,656	)	$	6,966		$	9,959		$	13,959		$	41,060		$	71,944		$	4,604		$	14,073		$	11,297		$	21,367		$	51,341
Exit costs, restructuring charges and associated impairments	$	9,542			850			—			—			—		$	850			—			—								$	—			—			—			—			—		$	—			—			—			—			—		$	—
Realized and unrealized investment (gains) losses		—			(2,491	)		4,544			490			(2,026	)		517			4,539			(2,025	)		(1,575	)		1,142			2,081			(5,248	)		(33	)		(30	)		(29	)		(5,340	)		(34	)		(30	)		(35	)		29			(70	)
Write-downs (recoveries), including asset impairments and credit loss expense		5,338			697			1,169			1,118			3,822			6,806			14,620			3,843			10,458			7,416			36,337			518			(1,623	)		(2,901	)		1,819			(2,187	)		7,610			5,163			1,083			1,867			15,723
Acquisition-related expenses		—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			955			167			1,122
Loss (gain) from equity accounted investments		492			84			138			(166	)		(59	)		(3	)		529			—			1,329			—			1,858			—			—			—			—			—			—			—			—			—			—
Legal judgement, arbitration awards and executive transition costs		14,731			—			—			—			—			—			—			—			—			4,105			4,105			—			(1,770	)		—			—			(1,770	)		—			—			—			—			—
Share-based and other non-cash compensation		23,723			4,524			7,186			5,687			6,173			23,570			4,309			6,541			5,495			5,693			22,038			5,421			6,911			6,226			7,521			26,079			6,189			7,777			5,544			8,063			27,573

Adjusted EBITDA before non-controlling interests	$	155,448			34,121			47,838			36,618			52,412		$	170,989			(4,507	)		(19,482	)		2,193			14,559		$	(7,237	)		7,657			13,444			17,254			50,371		$	88,726			18,369			26,983			18,844			31,493		$	95,689
Adjusted EBITDA attributable to non-controlling interests	$	(22,220	)		(5,598	)		(6,418	)		(4,188	)		(5,457	)	$	(21,661	)		147			987			(2,455	)		(4,539	)	$	(5,860	)		(4,872	)		(4,702	)		(4,153	)		(6,357	)	$	(20,084	)		(3,562	)		(1,566	)		(2,388	)		(3,715	)	$	(11,231	)

Adjusted EBITDA per Credit Facility	$	133,228		$	28,523		$	41,420		$	32,430		$	46,955		$	149,328		$	(4,360	)	$	(18,495	)	$	(262	)	$	10,020		$	(13,097	)	$	2,785		$	8,742		$	13,101		$	44,014		$	68,642		$	14,807		$	25,417		$	16,456		$	27,778		$	84,458

Revenues attributable to common shareholders	$	336,723			71,724			94,581			78,354			112,635		$	357,294			33,306			8,434			31,431			48,064		$	121,236			31,055			42,534			49,903			97,834		$	221,327			53,896			70,755			64,498			90,773		$	279,922
Adjusted EBITDA margin attributable to common shareholders		39.6	%		39.8	%		43.8	%		41.4	%		41.7	%		41.7	%		-13.1	%		-219.3	%		-0.8	%		20.8	%		-10.8	%		9.0	%		20.6	%		26.3	%		45.0	%		31.0	%		27.5	%		35.9	%		25.5	%		30.6	%		30.2	%
Gross Margins (%)
Content Solutions		59.5	%		63.9	%		56.6	%		59.8	%		49.9	%		57.6	%		15.1	%		-47.2	%		-36.9	%		45.9	%		6.0	%		63.1	%		53.3	%		44.7	%		66.9	%		58.8	%		60.2	%		58.7	%		41.6	%		41.3	%		50.3	%
Technology Products and Services		55.7	%		51.9	%		57.4	%		51.5	%		50.3	%		52.5	%		14.7	%		-140.5	%		24.5	%		33.6	%		18.9	%		35.2	%		48.9	%		49.3	%		55.4	%		49.7	%		48.6	%		60.0	%		47.8	%		53.2	%		52.5	%
All Other		-4.8	%		39.2	%		35.3	%		54.2	%		46.9	%		43.4	%		1.7	%		53.9	%		46.3	%		51.1	%		35.8	%		45.7	%		60.0	%		76.6	%		59.7	%		62.6	%		61.6	%		62.1	%		65.0	%		59.1	%		61.4	%

Total Gross Margin		55.5	%		56.3	%		56.8	%		54.5	%		50.2	%		54.1	%		14.6	%		N/A			10.3	%		36.3	%		15.7	%		44.6	%		50.2	%		48.6	%		59.0	%		52.7	%		52.9	%		59.5	%		46.1	%		49.8	%		52.0	%

¹	See Historical Model Cover Page for mapping of new segments to old segments

²	Global Box Office Take Rate derived from IMAX DMR and Joint revenue sharing contingent rent agreements as a percent of IMAX Global Box Office

In this model, the Company presents adjusted net income (loss) attributable to common shareholders and adjusted net income (loss) attributable to common shareholders per basic and diluted share, EBITDA and Adjusted EBITDA per Credit Facility as supplemental measures of the Company’s performance, which are not recognized under U.S. GAAP. The Company believes that these non-GAAP financial measures are important supplemental measures that allow management and users of the Company’s financial statements to view operating trends and analyze controllable operating performance on a comparable basis between periods without the after-tax impact of share-based compensation and certain unusual items included in net income (loss) attributable to common shareholders. Although share-based compensation is an important aspect of the Company’s employee and executive compensation packages, it is a non-cash expense and is excluded from certain internal business performance measures. Management uses these measures to review operating performance on a comparable basis from period to period. However, these non-GAAP measures may not be comparable to similarly titled measures reported by other companies. Additionally, the non-GAAP financial measures used by the Company should not be considered in isolation, or as a substitute for, or superior to, the comparable GAAP amounts. Definitions of these non-GAAP financial measures and reconciliations to the most directly comparable GAAP financial measures are included elsewhere in this model.