UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported)
(Exact Name of Registrant as Specified in Its Charter)
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(Commission File Number) |
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(I.R.S. Employer Identification Number) |
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(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:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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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:
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Trading Symbol(s) |
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Name of each exchange on which registered |
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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 2.02 Results of Operations and Financial Condition
On February 27, 2024, IMAX Corporation (the “Company”) issued a press release announcing the Company’s financial and operating results for the quarter and year ended December 31, 2023, a copy of which is attached as Exhibit 99.1.
The information in this current report on Form 8-K, including the Exhibit attached hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits
Exhibit No. |
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Description |
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99.1 |
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104 |
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Cover Page Interactive Data File (formatted as inline XBRL). |
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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.
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IMAX Corporation |
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(Registrant) |
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Date: February 27, 2024 |
By: |
/s/ Richard L. Gelfond |
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Name: |
Richard L. Gelfond |
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Title: |
Chief Executive Officer & Director |
3
Exhibit 99.1
IMAX CORPORATION REPORTS Q4 AND FULL-YEAR 2023 RESULTS
NEW YORK, NY — February 27, 2024 — IMAX Corporation (NYSE: IMAX) today reported financial results for the Fourth Quarter and Full-Year 2023, highlighted by strong top and bottom-line growth for the full-year.
“IMAX delivered excellent results in 2023 — we grew Net Income by $48 million, Adjusted EPS by 88 cents, Adjusted EBITDA by 52%, and system installations by nearly 40% — on the strength of demand for our technology, our unique premium model, and a clear preference among consumers worldwide for awe-inspiring IMAX experiences,” said Rich Gelfond, CEO of IMAX.
“As the entertainment landscape transforms, it is clear that IMAX is among its premier, in-demand destinations. We drove significant expansion and diversification of our global footprint, with a record 61 of our system installations coming from strategic Rest of World markets such as Japan, South Korea and Europe. Even as we deliver an outsized share of the global box office, we estimate the current IMAX network is only at 47% penetration — with the opportunity to open nearly 2,000 additional locations worldwide.”
“Our strong network growth is a direct result of our global content strategy, which has yielded the biggest and most diverse portfolio of IMAX Experiences ever. 2023 saw IMAX deliver a record at the North American box office, highest grossing year ever for local language films and overall box office approaching our best year ever. We are strategically managing our content portfolio to drive greater share of Hollywood releases, grow local language, accelerate our pipeline of IMAX Documentaries, and push further into emerging verticals including music and gaming, live experiences and recurring programming.”
“Through our global technology platform, IMAX powers awe-inspiring experiences for audiences around the world — capitalizing on the limitlessness of human imagination and need for shared experiences. We look forward to further capturing this opportunity, growing our network and content portfolio, to deliver results for our shareholders.”
_______________
1
Fourth Quarter and December Full-Year Financial Highlights
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Three Months Ended |
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Year Ended |
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December 31, |
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December 31, |
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In millions of U.S. Dollars, except per share data |
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2023 |
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2022 |
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YoY % |
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2023 |
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2022 |
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YoY % |
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Total Revenue |
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$ |
86.0 |
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$ |
98.0 |
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(12%) |
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$ |
374.8 |
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$ |
300.8 |
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25% |
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Gross Margin |
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$ |
43.7 |
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$ |
48.8 |
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(11%) |
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$ |
214.3 |
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$ |
156.4 |
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37% |
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Gross Margin (%) |
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51 |
% |
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50 |
% |
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57 |
% |
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52 |
% |
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Adjusted EBITDA - attributable to common shareholders(1)(3) |
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$ |
23.0 |
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$ |
27.8 |
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(17%) |
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$ |
128.2 |
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$ |
84.5 |
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52% |
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Adjusted EBITDA Margin (%) - attributable to common shareholders(1)(3) |
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28 |
% |
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31 |
% |
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(8%) |
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37 |
% |
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30 |
% |
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22% |
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Total Adjusted EBITDA(1)(3)(4) |
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$ |
25.2 |
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$ |
31.5 |
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(20%) |
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$ |
144.0 |
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$ |
95.7 |
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51% |
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Total Adjusted EBITDA Margin (%)(1)(3)(4) |
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29 |
% |
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32 |
% |
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(9%) |
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38 |
% |
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32 |
% |
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21% |
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Net Income (Loss)(2) |
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$ |
2.5 |
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$ |
2.6 |
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(3%) |
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$ |
25.3 |
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$ |
(22.8 |
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N/A |
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Net Income (Loss) per share(2) - basic and diluted |
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$ |
0.05 |
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$ |
0.05 |
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— |
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$ |
0.46 |
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$ |
(0.40 |
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N/A |
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Adjusted Net Income(1)(2) |
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$ |
9.3 |
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$ |
10.6 |
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(12%) |
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$ |
52.1 |
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$ |
3.2 |
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N/A |
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Adjusted Earnings Per Share(1)(2) |
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$ |
0.17 |
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$ |
0.19 |
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(11%) |
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$ |
0.94 |
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$ |
0.06 |
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N/A |
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Weighted average shares outstanding (in millions)(5): |
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Basic |
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54.0 |
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54.8 |
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(2%) |
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54.3 |
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56.7 |
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(4%) |
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Diluted |
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55.0 |
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55.7 |
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(1%) |
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55.1 |
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57.4 |
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(4%) |
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_______________
2
Fourth Quarter and Full Year Segment Results(1)
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Content Solutions |
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Technology Products and Services |
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Revenue |
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Gross Margin |
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Gross |
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Revenue |
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Gross Margin |
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Gross |
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4Q23 |
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$ |
19.1 |
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$ |
9.7 |
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51 |
% |
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$ |
62.5 |
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$ |
29.9 |
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48 |
% |
4Q22 |
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29.3 |
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12.1 |
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41 |
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66.1 |
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35.2 |
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53 |
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% change |
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(35 |
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(20 |
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(5 |
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(15 |
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FY23 |
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$ |
126.7 |
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$ |
74.1 |
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58 |
% |
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$ |
234.3 |
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$ |
129.9 |
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55 |
% |
FY22 |
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101.8 |
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51.2 |
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50 |
% |
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192.4 |
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101.1 |
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53 |
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% change |
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24 |
% |
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45 |
% |
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22 |
% |
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28 |
% |
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_______________
Content Solutions Segment
Technology Products and Services Segment
3
Operating Cash Flow and Liquidity
Net cash provided by operating activities for full year 2023 was $58.6 million compared to $17.3 million in the prior period with the increase reflecting the higher profits year-over-year and improvements in working capital.
As of December 31, 2023, the Company’s available liquidity was $407 million. The Company's liquidity includes cash and cash equivalents of $76 million, $276 million in available borrowing capacity under the Credit Facility, and $55 million in available borrowing capacity under IMAX China’s revolving facilities. Total debt, excluding deferred financing costs, was $257 million as of December 31, 2023.
In 2021, the Company issued $230.0 million of 0.500% Convertible Senior Notes due 2026 (“Convertible Notes”). In connection with the pricing of the Convertible Notes, the Company entered into privately negotiated capped call transactions with an initial cap price of $37.2750 per share of the Company's common shares.
Share Count and Capital Return
The weighted average basic and diluted shares outstanding used in the calculation of adjusted EPS for the full year of 2023 were 54.3 million and 55.1 million, respectively, compared to 56.7 million and 57.4 million, respectively for the full year 2022, a decrease year-over-year of 4% for both basic and diluted shares outstanding.
For the full year 2023, the Company repurchased 1.6 million common shares at an average price of $16.45 per share, for a total of $26.4 million, excluding commission, with $24.2 million of repurchases coming in the fourth quarter of 2023. Subsequent to year-end, the Company repurchased 1.2 million common shares at an average price of $13.99 per share, for a total of $16.2 million, excluding commission, year-to-date through February 26, 2024.
On June 14, 2023, the Company announced a 3-year extension to its share-repurchase program through June 30, 2026. The current share-repurchase program authorizes the Company to repurchase up to $400.0 million of its common shares, of which approximately $151.0 million remains available.
2024 Guidance
The Company expects the following for the full year 2024:
Supplemental Materials
For more information about the Company’s results, please refer to the IMAX Investor Relations website located at investors.imax.com.
Investor Relations Website and Social Media
On a monthly basis, the Company posts quarter-to-date box office results on the IMAX Investor Relations website located at investors.imax.com. The Company expects to provide such updates within five business days of month-end, although the Company may change this timing without notice.
The Company may post additional information on the Company’s corporate and Investor Relations website which may be material to investors. Accordingly, investors, media and others interested in the Company should monitor the Company’s website in addition to the Company’s press releases, SEC filings and public conference calls and webcasts, for additional information about the Company.
4
Conference Call
The Company will host a conference call today at 4:30 PM ET to discuss its full year and fourth quarter 2023 financial results. This call is being webcast and can be accessed at investors.imax.com. To access the call via telephone, interested parties please pre-register here: https://register.vevent.com/register/BI5eba9aa253da46dfb62bb6d573394a9d and you will be provided with a dial-in number and unique pin. To avoid delays, we encourage participants to dial into the conference call ten minutes ahead of the scheduled start time. A replay of the call will be available via webcast at investors.imax.com.
5
About IMAX Corporation
IMAX, an innovator in entertainment technology, combines proprietary software, architecture, and equipment to create experiences that take you beyond the edge of your seat to a world you've never imagined. Top filmmakers and studios are utilizing IMAX systems to connect with audiences in extraordinary ways, making IMAX's network among the most important and successful theatrical distribution platforms for major event films around the globe.
IMAX is headquartered in New York, Toronto, and Los Angeles, with additional offices in London, Dublin, Tokyo, and Shanghai. As of December 31, 2023, there were 1,772 IMAX systems (1,693 commercial multiplexes, 12 commercial destinations, 67 institutional) operating in 90 countries and territories. Shares of IMAX China Holding, Inc., a subsidiary of IMAX Corporation, trade on the Hong Kong Stock Exchange under the stock code “1970”.
IMAX®, IMAX® 3D, Experience It In IMAX®, The IMAX Experience®, DMR®, Filmed For IMAX®, IMAX LIVETM, IMAX Enhanced® are trademarks and trade names of IMAX Corporation or its subsidiaries that are registered or otherwise protected under laws of various jurisdictions. For more information, visit www.imax.com. You can also connect with IMAX on Instagram (www.instagram.com/company/imax), Facebook (www.facebook.com/imax), LinkedIn (www.linkedin.com/company/imax), X (www.twitter.com/imax), and YouTube (www.youtube.com/imaxmovies).
For additional information please contact:
Investors: IMAX Corporation, New York Jennifer Horsley 212-821-0154 jhorsley@IMAX.com |
Media: IMAX Corporation, New York Mark Jafar 212-821-0102 mjafar@imax.com |
6
Forward-Looking Statements
This earnings release contains forward looking statements that are based on IMAX management's assumptions and existing information and involve certain risks and uncertainties which could cause actual results to differ materially from future results expressed or implied by such forward looking statements. These forward-looking statements include, but are not limited to, business and technology strategies and measures to implement strategies, competitive strengths, goals, expansion and growth of business, operations and technology, future capital expenditures (including the amount and nature thereof), industry prospects and consumer behavior, plans and references to the future success of IMAX Corporation together with its consolidated subsidiaries (the “Company”) and expectations regarding the Company's future operating, financial and technological results. These forward-looking statements are based on certain assumptions and analyses made by the Company in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate in the circumstances. However, whether actual results and developments will conform with the expectations and predictions of the Company is subject to a number of risks and uncertainties, including, but not limited to, risks associated with investments and operations in foreign jurisdictions and any future international expansion, including those related to economic, political and regulatory policies of local governments and laws and policies of the United States and Canada, as well as geopolitical conflicts; risks related to the Company’s growth and operations in China; the performance of IMAX remastered films and other films released to the IMAX network; the signing of IMAX System agreements; conditions, changes and developments in the commercial exhibition industry; risks related to currency fluctuations; the potential impact of increased competition in the markets within which the Company operates, including competitive actions by other companies; the failure to respond to change and advancements in digital technology; risks relating to consolidation among commercial exhibitors and studios; risks related to brand extensions and new business initiatives; conditions in the in-home and out-of-home entertainment industries; the opportunities (or lack thereof) that may be presented to and pursued by the Company; risks related to cyber-security and data privacy; risks related to the Company’s inability to protect the Company’s intellectual property; risks related to climate change; risks related to weather conditions and natural disasters that may disrupt or harm the Company’s business; risks related to the Company’s indebtedness and compliance with its debt agreements; general economic, market or business conditions; risks related to political, economic and social instability; the failure to convert system backlog into revenue; changes in laws or regulations; any statements of belief and any statements of assumptions underlying any of the foregoing; other factors and risks outlined in the Company's periodic filings with the SEC; and other factors, many of which are beyond the control of the Company. Consequently, all of the forward-looking statements made in this earnings release are qualified by these cautionary statements, and actual results or anticipated developments by the Company may not be realized, and even if substantially realized, may not have the expected consequences to, or effects on, the Company. These factors, other risks and uncertainties and financial details are discussed in the Company’s most recent Annual Report on Form 10-K. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements, whether as a result of new information, future events or otherwise.
7
Primary Reporting Groups
The Company’s Chief Executive Officer (“CEO”) is its Chief Operating Decision Maker (“CODM”), as such term is defined under U.S. GAAP. The CODM, along with other members of management, assesses segment performance based on segment revenues and gross margins. Selling, general and administrative expenses, research and development costs, the amortization of intangible assets, provision for (reversal of) current expected credit losses, certain write-downs, interest income, interest expense, and income tax (expense) benefit are not allocated to the Company’s segments.
In the first quarter of 2023, the Company revised its internal segment reporting, including the information provided to the CODM to assess segment performance and allocate resources.
The Company has the following reportable segments:
Transactions between segments are valued at exchange value. Inter-segment profits are eliminated upon consolidation, as well as for the disclosures below.
8
IMAX Network and Backlog
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Three Months |
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Year |
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System Signings(1): |
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2023 |
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2022 |
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2023 |
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2022 |
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Sales Arrangements |
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10 |
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11 |
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64 |
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21 |
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Hybrid JRSA |
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— |
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— |
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— |
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3 |
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Traditional JRSA |
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25 |
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1 |
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65 |
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23 |
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Total IMAX System signings |
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35 |
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12 |
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129 |
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47 |
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Three Months |
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Year |
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System Installations(2): |
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2023 |
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2022 |
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2023 |
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2022 |
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Sales Arrangements |
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35 |
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21 |
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70 |
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38 |
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Hybrid JRSA |
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3 |
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3 |
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5 |
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8 |
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Traditional JRSA |
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31 |
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28 |
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53 |
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46 |
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Total IMAX System installations |
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69 |
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52 |
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128 |
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92 |
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Year |
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System Backlog: |
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2023 |
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2022 |
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Sales Arrangements |
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164 |
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162 |
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Hybrid JRSA |
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103 |
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120 |
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Traditional JRSA |
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183 |
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168 |
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Total System backlog |
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450 |
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450 |
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Year |
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System Network: |
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2023 |
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2022 |
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Commercial Multiplex Systems |
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Sales Arrangements |
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769 |
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702 |
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Hybrid JRSA |
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138 |
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151 |
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Traditional JRSA |
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786 |
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780 |
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Total Commercial Multiplex Systems |
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1,693 |
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1,633 |
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Commercial Destination Systems |
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12 |
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12 |
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Institutional Systems |
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67 |
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71 |
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Total System network |
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1,772 |
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1,716 |
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______________
(1) System signings include new signings of 32 in Q4 2023, 9 in Q4 2022, 108 in the full year 2023 and 30 in the full year 2022.
(2) System installations include new systems installations of 47 in Q4 2023, 21 in Q4 2022, 86 in the full year 2023 and 56 in the full year 2022.
9
IMAX CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands of U.S. dollars, except per share amounts)
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Three Months Ended |
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December 31, |
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Year Ended |
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(Unaudited) |
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December 31, |
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2023 |
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2022 |
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2023 |
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2022 |
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Revenues |
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Technology sales |
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$ |
35,337 |
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$ |
33,888 |
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$ |
100,792 |
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$ |
69,158 |
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Image enhancement and maintenance services |
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35,508 |
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44,094 |
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189,752 |
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161,379 |
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Technology rentals |
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12,954 |
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18,060 |
|
|
|
75,566 |
|
|
|
61,786 |
|
|
Finance income |
|
|
2,219 |
|
|
|
2,004 |
|
|
|
8,729 |
|
|
|
8,482 |
|
|
|
|
|
|
86,018 |
|
|
|
98,046 |
|
|
|
374,839 |
|
|
|
300,805 |
|
Costs and expenses applicable to revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Technology sales |
|
|
17,805 |
|
|
|
17,346 |
|
|
|
46,756 |
|
|
|
37,610 |
|
|
Image enhancement and maintenance services |
|
|
18,586 |
|
|
|
25,575 |
|
|
|
88,056 |
|
|
|
81,834 |
|
|
Technology rentals |
|
|
5,939 |
|
|
|
6,278 |
|
|
|
25,686 |
|
|
|
25,006 |
|
|
|
|
|
|
42,330 |
|
|
|
49,199 |
|
|
|
160,498 |
|
|
|
144,450 |
|
Gross margin |
|
|
43,688 |
|
|
|
48,847 |
|
|
|
214,341 |
|
|
|
156,355 |
|
|
Selling, general and administrative expenses |
|
|
35,070 |
|
|
|
37,862 |
|
|
|
144,406 |
|
|
|
138,043 |
|
|
Research and development |
|
|
2,722 |
|
|
|
1,633 |
|
|
|
10,110 |
|
|
|
5,300 |
|
|
Amortization of intangible assets |
|
|
1,250 |
|
|
|
1,417 |
|
|
|
4,578 |
|
|
|
4,829 |
|
|
Credit loss expense (reversal), net |
|
|
170 |
|
|
|
398 |
|
|
|
1,759 |
|
|
|
8,547 |
|
|
Asset impairments |
|
|
144 |
|
|
|
— |
|
|
|
144 |
|
|
|
4,470 |
|
|
Restructuring and executive transition costs |
|
|
1,593 |
|
|
|
— |
|
|
|
2,946 |
|
|
|
— |
|
|
Income (loss) from operations |
|
|
2,739 |
|
|
|
7,537 |
|
|
|
50,398 |
|
|
|
(4,834 |
) |
|
Realized and unrealized investment gains (losses) |
|
|
29 |
|
|
|
(29 |
) |
|
|
465 |
|
|
|
70 |
|
|
Retirement benefits non-service expense |
|
|
(179 |
) |
|
|
(139 |
) |
|
|
(411 |
) |
|
|
(556 |
) |
|
Interest income |
|
|
648 |
|
|
|
252 |
|
|
|
2,486 |
|
|
|
1,428 |
|
|
Interest expense |
|
|
(1,776 |
) |
|
|
(1,523 |
) |
|
|
(6,821 |
) |
|
|
(5,877 |
) |
|
Income (loss) before taxes |
|
|
1,461 |
|
|
|
6,098 |
|
|
|
46,117 |
|
|
|
(9,769 |
) |
|
Income tax recovery (expense) |
|
|
1,850 |
|
|
|
(2,017 |
) |
|
|
(13,051 |
) |
|
|
(10,108 |
) |
|
Net income (loss) |
|
|
3,311 |
|
|
|
4,081 |
|
|
|
33,066 |
|
|
|
(19,877 |
) |
|
Net income attributable to non-controlling interests |
|
|
(771 |
) |
|
|
(1,468 |
) |
|
|
(7,731 |
) |
|
|
(2,923 |
) |
|
Net income (loss) attributable to common shareholders |
|
$ |
2,540 |
|
|
$ |
2,613 |
|
|
$ |
25,335 |
|
|
$ |
(22,800 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income (loss) per share attributable to common shareholders |
|
||||||||||||||||
|
Basic |
|
$ |
0.05 |
|
|
$ |
0.05 |
|
|
$ |
0.47 |
|
|
$ |
(0.40 |
) |
|
Diluted |
|
$ |
0.05 |
|
|
$ |
0.05 |
|
|
$ |
0.46 |
|
|
$ |
(0.40 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted average shares outstanding (in thousands): |
|
||||||||||||||||
|
Basic |
|
|
53,973 |
|
|
|
54,816 |
|
|
|
54,310 |
|
|
|
56,674 |
|
|
Diluted |
|
|
54,983 |
|
|
|
55,659 |
|
|
|
55,146 |
|
|
|
56,674 |
|
Additional Disclosure: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Depreciation and amortization |
|
$ |
13,545 |
|
|
$ |
13,998 |
|
|
$ |
60,022 |
|
|
$ |
56,661 |
|
|
Amortization of deferred financing costs |
|
$ |
493 |
|
|
$ |
712 |
|
|
$ |
2,235 |
|
|
$ |
3,177 |
|
|
10
IMAX CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands of dollars, except share amounts)
|
|
As of December 31, |
|
|||||
|
|
2023 |
|
|
2022 |
|
||
Assets |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
76,200 |
|
|
$ |
97,401 |
|
Accounts receivable, net of allowance for credit losses |
|
|
136,259 |
|
|
|
136,142 |
|
Financing receivables, net of allowance for credit losses |
|
|
127,154 |
|
|
|
129,384 |
|
Variable consideration receivable, net of allowance for credit losses |
|
|
64,338 |
|
|
|
44,024 |
|
Inventories |
|
|
31,584 |
|
|
|
31,534 |
|
Prepaid expenses |
|
|
12,345 |
|
|
|
12,343 |
|
Film assets, net of accumulated amortization |
|
|
6,786 |
|
|
|
5,277 |
|
Property, plant and equipment, net of accumulated depreciation |
|
|
243,299 |
|
|
|
252,896 |
|
Investment in equity securities |
|
|
— |
|
|
|
1,035 |
|
Other assets |
|
|
20,879 |
|
|
|
15,665 |
|
Deferred income tax assets, net of valuation allowance |
|
|
7,988 |
|
|
|
9,900 |
|
Goodwill |
|
|
52,815 |
|
|
|
52,815 |
|
Other intangible assets, net of accumulated amortization |
|
|
35,022 |
|
|
|
32,738 |
|
Total assets |
|
$ |
814,669 |
|
|
$ |
821,154 |
|
Liabilities |
|
|
|
|
|
|
||
Accounts payable |
|
$ |
26,386 |
|
|
$ |
25,237 |
|
Accrued and other liabilities |
|
|
111,013 |
|
|
|
117,286 |
|
Deferred revenue |
|
|
67,105 |
|
|
|
70,940 |
|
Revolving credit facility borrowings, net of unamortized debt issuance costs |
|
|
22,924 |
|
|
|
36,111 |
|
Convertible notes and other borrowings, net of unamortized discounts and debt issuance costs |
|
229,131 |
|
|
|
226,912 |
|
|
Deferred income tax liabilities |
|
|
12,521 |
|
|
|
14,900 |
|
Total liabilities |
|
|
469,080 |
|
|
|
491,386 |
|
Commitments, contingencies and guarantees |
|
|
|
|
|
|
||
Non-controlling interests |
|
|
658 |
|
|
|
722 |
|
Shareholders' equity |
|
|
|
|
|
|
||
Capital stock common shares — no par value. Authorized — unlimited number. |
|
|
|
|
|
|
||
53,260,276 issued and outstanding (December 31, 2022 — 54,148,614 issued and outstanding) |
|
|
389,048 |
|
|
|
376,715 |
|
Other equity |
|
|
185,087 |
|
|
|
185,678 |
|
Statutory surplus reserve |
|
|
3,932 |
|
|
|
3,932 |
|
Accumulated deficit |
|
|
(292,845 |
) |
|
|
(293,124 |
) |
Accumulated other comprehensive loss |
|
|
(12,081 |
) |
|
|
(9,846 |
) |
Total shareholders' equity attributable to common shareholders |
|
|
273,141 |
|
|
|
263,355 |
|
Non-controlling interests |
|
|
71,790 |
|
|
|
65,691 |
|
Total shareholders' equity |
|
|
344,931 |
|
|
|
329,046 |
|
Total liabilities and shareholders' equity |
|
$ |
814,669 |
|
|
$ |
821,154 |
|
11
IMAX CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands of dollars)
|
|
Years Ended December 31, |
|
|||||||
|
|
2023 |
|
|
2022 |
|
||||
Operating Activities |
|
|
|
|
|
|
|
|
||
Net income (loss) |
|
$ |
|
33,066 |
|
|
$ |
|
(19,877 |
) |
Adjustments to reconcile net income (loss) to cash provided by operating activities: |
|
|
|
|
|
|
|
|
||
Depreciation and amortization |
|
|
|
60,022 |
|
|
|
|
56,661 |
|
Amortization of deferred financing costs |
|
|
|
2,235 |
|
|
|
|
3,177 |
|
Credit loss expense, net |
|
|
|
1,759 |
|
|
|
|
8,547 |
|
Write-downs, including asset impairments |
|
|
|
1,884 |
|
|
|
|
7,176 |
|
Deferred income tax benefit |
|
|
|
(1,447 |
) |
|
|
|
(2,073 |
) |
Share-based and other non-cash compensation |
|
|
|
24,230 |
|
|
|
|
27,573 |
|
Unrealized foreign currency exchange (gain) loss |
|
|
|
(212 |
) |
|
|
|
1,108 |
|
Realized and unrealized investment gain |
|
|
|
(465 |
) |
|
|
|
(70 |
) |
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
||
Accounts receivable |
|
|
|
(1,907 |
) |
|
|
|
(29,003 |
) |
Inventories |
|
|
|
(285 |
) |
|
|
|
(5,529 |
) |
Film assets |
|
|
|
(20,394 |
) |
|
|
|
(19,598 |
) |
Deferred revenue |
|
|
|
(3,882 |
) |
|
|
|
(11,572 |
) |
Changes in other operating assets and liabilities |
|
|
|
(35,989 |
) |
|
|
|
801 |
|
Net cash provided by operating activities |
|
|
|
58,615 |
|
|
|
|
17,321 |
|
Investing Activities |
|
|
|
|
|
|
|
|
||
Purchase of property, plant and equipment |
|
|
|
(6,491 |
) |
|
|
|
(8,424 |
) |
Investment in equipment for joint revenue sharing arrangements |
|
|
|
(18,000 |
) |
|
|
|
(19,803 |
) |
Interest in film classified as a financial instrument |
|
|
|
— |
|
|
|
|
(4,731 |
) |
Acquisition of other intangible assets |
|
|
|
(8,344 |
) |
|
|
|
(4,394 |
) |
Proceeds from sale of equity securities |
|
|
|
1,045 |
|
|
|
|
— |
|
Acquisition of SSIMWAVE Inc., net of cash and cash equivalents acquired |
|
|
|
— |
|
|
|
|
(15,939 |
) |
Net cash used in investing activities |
|
|
|
(31,790 |
) |
|
|
|
(53,291 |
) |
Financing Activities |
|
|
|
|
|
|
|
|
||
Proceeds from revolving credit facility borrowings |
|
|
|
39,717 |
|
|
|
|
37,871 |
|
Repayments of revolving credit facility borrowings |
|
|
|
(53,248 |
) |
|
|
|
(3,600 |
) |
Proceeds from other borrowings |
|
|
|
322 |
|
|
|
|
— |
|
Repayment of other borrowings |
|
|
|
(53 |
) |
|
|
|
— |
|
Credit facility amendment fees paid |
|
|
|
(46 |
) |
|
|
|
(2,279 |
) |
Repurchase of common shares, IMAX Corporation |
|
|
|
(26,823 |
) |
|
|
|
(80,124 |
) |
Repurchase of common shares, IMAX China |
|
|
|
(15 |
) |
|
|
|
(3,043 |
) |
Taxes withheld and paid on employee stock awards vested |
|
|
|
(6,466 |
) |
|
|
|
(3,687 |
) |
Principal payment under finance lease obligations |
|
|
|
(480 |
) |
|
|
|
(948 |
) |
Dividends paid to non-controlling interests |
|
|
|
(1,438 |
) |
|
|
|
(2,704 |
) |
Net cash used in financing activities |
|
|
|
(48,530 |
) |
|
|
|
(58,514 |
) |
Effects of exchange rate changes on cash |
|
|
|
504 |
|
|
|
|
2,174 |
|
Decrease in cash and cash equivalents during year |
|
|
|
(21,201 |
) |
|
|
|
(92,310 |
) |
Cash and cash equivalents, beginning of year |
|
|
|
97,401 |
|
|
|
|
189,711 |
|
Cash and cash equivalents, end of year |
|
$ |
|
76,200 |
|
|
$ |
|
97,401 |
|
12
Segment Revenue and Gross Margin
(In thousands of dollars) |
|
Three Months Ended |
|
|
Years Ended |
|
||||||||||
|
|
December 31, |
|
|
December 31, |
|
||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Content Solutions |
|
|
19,093 |
|
|
|
29,320 |
|
|
|
126,698 |
|
|
|
101,820 |
|
Technology Products and Services |
|
|
62,490 |
|
|
|
66,107 |
|
|
|
234,303 |
|
|
|
192,368 |
|
Sub-total for reportable segments |
|
|
81,583 |
|
|
|
95,427 |
|
|
|
361,001 |
|
|
|
294,188 |
|
All Other(1) |
|
|
4,435 |
|
|
|
2,619 |
|
|
|
13,838 |
|
|
|
6,617 |
|
Total |
|
$ |
86,018 |
|
|
$ |
98,046 |
|
|
$ |
374,839 |
|
|
$ |
300,805 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Gross Margin |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Content Solutions |
|
|
9,709 |
|
|
|
12,122 |
|
|
|
74,106 |
|
|
|
51,240 |
|
Technology Products and Services |
|
|
29,880 |
|
|
|
35,179 |
|
|
|
129,946 |
|
|
|
101,055 |
|
Sub-total for reportable segments |
|
|
39,589 |
|
|
|
47,301 |
|
|
|
204,052 |
|
|
|
152,295 |
|
All Other(1) |
|
|
4,099 |
|
|
|
1,546 |
|
|
|
10,289 |
|
|
|
4,060 |
|
Total |
|
$ |
43,688 |
|
|
$ |
48,847 |
|
|
$ |
214,341 |
|
|
$ |
156,355 |
|
______________
13
IMAX CORPORATION
NON-GAAP FINANCIAL MEASURES
(in thousands of U.S. dollars)
In this release, the Company presents adjusted net income attributable to common shareholders and adjusted net income attributable to common shareholders per basic and diluted share, EBITDA, Adjusted EBITDA per Credit Facility, Adjusted EBITDA margin as supplemental measures of the Company’s performance, which are not recognized under U.S. GAAP. Adjusted net income attributable to common shareholders and adjusted net income attributable to common shareholders per basic and diluted share exclude, where applicable: (i) share-based compensation; (ii) COVID-19 government relief benefits, net; (iii) realized and unrealized investment gains or losses; (iv) transaction-related expenses; and (v) restructuring and executive transition costs, as well as the related tax impact of these adjustments.
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.
A reconciliation from net income (loss) attributable to common shareholders and the associated per share amounts to adjusted net income attributable to common shareholders and adjusted net income attributable to common shareholders per diluted share is presented in the table below. Net income (loss) attributable to common shareholders and the associated per share amounts are the most directly comparable GAAP measures because they reflect the earnings relevant to the Company’s shareholders, rather than the earnings attributable to non-controlling interests.
In addition to the non-GAAP financial measures discussed above, management also uses “EBITDA,” as such term is defined in the Company’s Credit Agreement, and which is referred to herein as “Adjusted EBITDA per Credit Facility.” As allowed by the Credit Agreement, Adjusted EBITDA per Credit Facility includes adjustments in addition to the exclusion of interest, taxes, depreciation and amortization. Adjusted EBITDA per Credit Facility measure is presented to allow a more comprehensive analysis of the Company’s operating performance and to provide additional information with respect to the Company’s compliance against its Credit Agreement requirements when applicable. In addition, the Company believes that Adjusted EBITDA per Credit Facility presents relevant and useful information widely used by analysts, investors and other interested parties in the Company’s industry to evaluate, assess and benchmark the Company’s results.
EBITDA is defined as net income or loss excluding (i) income tax expense or benefit; (ii) interest expense, net of interest income; (iii) depreciation and amortization, including film asset amortization; and (iv) amortization of deferred financing costs. Adjusted EBITDA per Credit Facility is defined as EBITDA excluding: (i) share-based and other non-cash compensation; (ii) realized and unrealized investment gains or losses; (iii) transaction-related expenses; (iv) restructuring and executive transition costs; and (v) write-downs, net of recoveries, including asset impairments and credit loss expense.
A reconciliation of net income (loss) attributable to common shareholders, which is the most directly comparable GAAP measure, to EBITDA and Adjusted EBITDA per Credit Facility is presented in the table below. Net income (loss) attributable to common shareholders is the most directly comparable GAAP measure because it reflects the earnings relevant to the Company’s shareholders, rather than the earnings attributable to non-controlling interests.
In this release, the Company also presents free cash flow, which is not recognized under U.S. GAAP, as a supplemental measure of the Company’s liquidity. The Company definition of free cash flow deducts only normal recurring capital expenditures, including the Company’s investment in joint revenue sharing arrangements, the purchase of property, plant and equipment and the acquisition of other intangible assets (from the Consolidated Statements of Cash Flows), from net cash provided by or used in operating activities. Management believes that free cash flow is a supplemental measure of the cash flow available to reduce debt, add to cash balances, and fund other financing activities. Free cash flow does not represent residual cash flow available for discretionary expenditures. A reconciliation of cash provided by operating activities to free cash flow is presented below.
These non-GAAP measures may not be comparable to similarly titled amounts reported by other companies. Additionally, the non-GAAP financial measures used by the Company should not be considered as a substitute for, or superior to, the comparable GAAP amounts.
14
Adjusted EBITDA per Credit Facility
|
|
For the Three Months Ended December 31, 2023 (1) |
|
|
For the Three Months Ended December 31, 2022 (1) |
|
||||||||||||||||||||||||
|
|
Attributable to |
|
|
Less: |
|
|
|
|
|
Attributable to |
|
|
Less: |
|
|
|
|
||||||||||||
|
|
Interests and |
|
|
Attributable to |
|
|
Attributable to |
|
|
Interests and |
|
|
Attributable to |
|
|
Attributable to |
|
||||||||||||
|
|
Common |
|
|
Non-controlling |
|
|
Common |
|
|
Common |
|
|
Non-controlling |
|
|
Common |
|
||||||||||||
|
|
Shareholders |
|
|
Interests |
|
|
Shareholders |
|
|
Shareholders |
|
|
Interests |
|
|
Shareholders |
|
||||||||||||
(In thousands of U.S. Dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Reported net income |
|
$ |
|
3,311 |
|
|
$ |
|
771 |
|
|
$ |
|
2,540 |
|
|
$ |
|
4,081 |
|
|
$ |
|
1,468 |
|
|
$ |
|
2,613 |
|
Add (subtract): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Income tax expense |
|
|
|
(1,850 |
) |
|
|
|
(147 |
) |
|
|
|
(1,703 |
) |
|
|
|
2,016 |
|
|
|
|
786 |
|
|
|
|
1,230 |
|
Interest expense, net of interest income |
|
|
|
636 |
|
|
|
|
(137 |
) |
|
|
|
773 |
|
|
|
|
559 |
|
|
|
|
(15 |
) |
|
|
|
574 |
|
Depreciation and amortization, including film asset amortization |
|
|
|
13,545 |
|
|
|
|
1,161 |
|
|
|
|
12,384 |
|
|
|
|
13,998 |
|
|
|
|
1,109 |
|
|
|
|
12,889 |
|
Amortization of deferred financing costs(2) |
|
|
|
493 |
|
|
|
|
— |
|
|
|
|
493 |
|
|
|
|
712 |
|
|
|
|
— |
|
|
|
|
712 |
|
EBITDA |
|
$ |
|
16,135 |
|
|
$ |
|
1,648 |
|
|
$ |
|
14,487 |
|
|
$ |
|
21,366 |
|
|
$ |
|
3,348 |
|
|
$ |
|
18,018 |
|
Stock and other non-cash compensation |
|
|
|
6,400 |
|
|
|
|
144 |
|
|
|
|
6,256 |
|
|
|
|
8,063 |
|
|
|
|
205 |
|
|
|
|
7,858 |
|
Unrealized investment (gains) losses |
|
|
|
(29 |
) |
|
|
|
— |
|
|
|
|
(29 |
) |
|
|
|
29 |
|
|
|
|
— |
|
|
|
|
29 |
|
Transaction-related expenses(3) |
|
|
|
327 |
|
|
|
|
208 |
|
|
|
|
119 |
|
|
|
|
166 |
|
|
|
|
— |
|
|
|
|
166 |
|
Write-downs, including asset impairments and credit loss expense |
|
|
|
812 |
|
|
|
|
(37 |
) |
|
|
|
849 |
|
|
|
|
1,867 |
|
|
|
|
162 |
|
|
|
|
1,705 |
|
Restructuring and executive transition costs(4) |
|
|
|
1,593 |
|
|
|
|
258 |
|
|
|
|
1,335 |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
Adjusted EBITDA per Credit Facility |
|
$ |
|
25,238 |
|
|
$ |
|
2,221 |
|
|
$ |
|
23,017 |
|
|
$ |
|
31,491 |
|
|
$ |
|
3,715 |
|
|
$ |
|
27,776 |
|
Revenues attributable to common shareholders(5) |
|
|
|
86,018 |
|
|
|
|
4,687 |
|
|
|
|
81,331 |
|
|
|
|
98,046 |
|
|
|
|
7,273 |
|
|
|
|
90,773 |
|
Adjusted EBITDA margin attributable to common shareholders |
|
|
|
29.3 |
% |
|
|
|
47.4 |
% |
|
|
|
28.3 |
% |
|
|
|
32.1 |
% |
|
|
|
51.1 |
% |
|
|
|
30.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
For the Twelve Months Ended December 31, 2023 (1) |
|
|
For the Twelve Months Ended December 31, 2022 (1) |
|
||||||||||||||||||||||||
|
|
Attributable to |
|
|
Less: |
|
|
|
|
|
Attributable to |
|
|
Less: |
|
|
|
|
||||||||||||
|
|
Interests and |
|
|
Attributable to |
|
|
Attributable to |
|
|
Interests and |
|
|
Attributable to |
|
|
Attributable to |
|
||||||||||||
|
|
Common |
|
|
Non-controlling |
|
|
Common |
|
|
Common |
|
|
Non-controlling |
|
|
Common |
|
||||||||||||
|
|
Shareholders |
|
|
Interests |
|
|
Shareholders |
|
|
Shareholders |
|
|
Interests |
|
|
Shareholders |
|
||||||||||||
(In thousands of U.S. Dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Reported net income (loss) |
|
$ |
|
33,066 |
|
|
$ |
|
7,731 |
|
|
$ |
|
25,335 |
|
|
$ |
|
(19,877 |
) |
|
$ |
|
2,923 |
|
|
$ |
|
(22,800 |
) |
Add (subtract): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Income tax expense |
|
|
|
13,051 |
|
|
|
|
1,725 |
|
|
|
|
11,326 |
|
|
|
|
10,108 |
|
|
|
|
1,256 |
|
|
|
|
8,852 |
|
Interest expense, net of interest income |
|
|
|
2,101 |
|
|
|
|
(408 |
) |
|
|
|
2,509 |
|
|
|
|
1,272 |
|
|
|
|
(251 |
) |
|
|
|
1,523 |
|
Depreciation and amortization, including film asset |
|
|
|
60,022 |
|
|
|
|
5,312 |
|
|
|
|
54,710 |
|
|
|
|
56,661 |
|
|
|
|
4,820 |
|
|
|
|
51,841 |
|
Amortization of deferred financing costs(2) |
|
|
|
2,235 |
|
|
|
|
— |
|
|
|
|
2,235 |
|
|
|
|
3,177 |
|
|
|
|
— |
|
|
|
|
3,177 |
|
EBITDA |
|
$ |
|
110,475 |
|
|
$ |
|
14,360 |
|
|
$ |
|
96,115 |
|
|
$ |
|
51,341 |
|
|
$ |
|
8,748 |
|
|
$ |
|
42,593 |
|
Stock and other non-cash compensation |
|
|
|
24,230 |
|
|
|
|
774 |
|
|
|
|
23,456 |
|
|
|
|
27,573 |
|
|
|
|
760 |
|
|
|
|
26,813 |
|
Unrealized investment gains |
|
|
|
(465 |
) |
|
|
|
(93 |
) |
|
|
|
(372 |
) |
|
|
|
(70 |
) |
|
|
|
— |
|
|
|
|
(70 |
) |
Transaction-related expenses(3) |
|
|
|
3,569 |
|
|
|
|
208 |
|
|
|
|
3,361 |
|
|
|
|
1,122 |
|
|
|
|
— |
|
|
|
|
1,122 |
|
Write-downs, including asset impairments and credit loss expense |
|
|
|
3,273 |
|
|
|
|
362 |
|
|
|
|
2,911 |
|
|
|
|
15,723 |
|
|
|
|
1,723 |
|
|
|
|
14,000 |
|
Restructuring and executive transition costs(4) |
|
|
|
2,946 |
|
|
|
|
258 |
|
|
|
|
2,688 |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
Adjusted EBITDA per Credit Facility |
|
$ |
|
144,028 |
|
|
$ |
|
15,869 |
|
|
$ |
|
128,159 |
|
|
$ |
|
95,689 |
|
|
$ |
|
11,231 |
|
|
$ |
|
84,458 |
|
Revenues attributable to common shareholders(5) |
|
|
|
374,839 |
|
|
|
|
25,674 |
|
|
|
|
349,165 |
|
|
|
|
300,805 |
|
|
|
|
20,883 |
|
|
|
|
279,922 |
|
Adjusted EBITDA margin attributable to common shareholders |
|
|
|
38.4 |
% |
|
|
|
61.8 |
% |
|
|
|
36.7 |
% |
|
|
|
31.8 |
% |
|
|
|
53.8 |
% |
|
|
|
30.2 |
% |
______________
15
(5)
(In thousands of U.S. Dollars) |
|
Three months ended |
|
|
Three months ended |
|
|
Year ended |
|
|
Year ended |
|
|||||||||||||||||||||||||||
Total revenues |
|
|
|
|
|
$ |
|
86,018 |
|
|
|
|
|
|
$ |
|
98,046 |
|
|
|
|
|
|
$ |
|
374,839 |
|
|
|
|
|
$ |
|
300,805 |
|
||||
Greater China revenues |
|
$ |
|
16,521 |
|
|
|
|
|
|
$ |
|
25,728 |
|
|
|
|
|
|
$ |
|
90,496 |
|
|
|
|
|
|
$ |
|
73,330 |
|
|
|
|
||||
Non-controlling interest ownership percentage(6) |
|
|
|
28.37 |
% |
|
|
|
|
|
|
|
28.27 |
% |
|
|
|
|
|
|
|
28.37 |
% |
|
|
|
|
|
|
|
28.48 |
% |
|
|
|
||||
Deduction for non-controlling interest share of revenues |
|
|
|
|
|
|
|
(4,687 |
) |
|
|
|
|
|
|
|
(7,273 |
) |
|
|
|
|
|
|
|
(25,674 |
) |
|
|
|
|
|
|
(20,883 |
) |
||||
Revenues attributable to common shareholders |
|
|
|
|
|
$ |
|
81,331 |
|
|
|
|
|
|
$ |
|
90,773 |
|
|
|
|
|
|
$ |
|
349,165 |
|
|
|
|
|
$ |
|
279,922 |
|
||||
(6) Weighted average ownership percentage for change in non-controlling interest share
Adjusted Net Income Attributable to Common Shareholders and Adjusted Net Income Per Share
|
|
Three Months Ended |
|
|
Three Months Ended |
|
||||||||||
|
|
December 31, 2023 |
|
|
December 31, 2022 |
|
||||||||||
(In thousands of U.S. dollars, except per share amounts) |
|
Net Income |
|
|
Per Diluted Share |
|
|
Net Income |
|
|
Per Diluted Share |
|
||||
Net income attributable to common shareholders |
|
$ |
2,540 |
|
|
$ |
0.05 |
|
|
$ |
2,613 |
|
|
$ |
0.05 |
|
Adjustments(1): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Share-based compensation |
|
|
6,074 |
|
|
|
0.11 |
|
|
|
7,730 |
|
|
|
0.14 |
|
Unrealized investment gains |
|
|
(32 |
) |
|
|
— |
|
|
|
29 |
|
|
|
— |
|
Transaction-related expenses(2) |
|
|
119 |
|
|
|
— |
|
|
|
166 |
|
|
|
— |
|
Restructuring and executive transition costs(3) |
|
|
1,335 |
|
|
|
0.02 |
|
|
|
— |
|
|
|
— |
|
Tax impact on items listed above |
|
|
(747 |
) |
|
|
(0.01 |
) |
|
|
17 |
|
|
|
— |
|
Adjusted net income(1) |
|
$ |
9,289 |
|
|
$ |
0.17 |
|
|
$ |
10,555 |
|
|
$ |
0.19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted average basic shares outstanding |
|
|
|
|
|
53,973 |
|
|
|
|
|
|
54,816 |
|
||
Weighted average diluted shares outstanding |
|
|
|
|
|
54,983 |
|
|
|
|
|
|
55,659 |
|
||
|
|
Year Ended |
|
|
Year Ended |
|
||||||||||
|
|
December 31, 2023 |
|
|
December 31, 2022 |
|
||||||||||
(In thousands of U.S. dollars, except per share amounts) |
|
Net Income |
|
|
Per Diluted Share |
|
|
Net (Loss) |
|
|
Per Diluted Share |
|
||||
Net income (loss) attributable to common shareholders |
|
$ |
25,335 |
|
|
$ |
0.46 |
|
|
$ |
(22,800 |
) |
|
$ |
(0.40 |
) |
Adjustments(1): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Share-based compensation |
|
|
23,184 |
|
|
|
0.42 |
|
|
|
26,382 |
|
|
|
0.46 |
|
COVID-19 government relief benefits, net |
|
|
— |
|
|
|
— |
|
|
|
(373 |
) |
|
|
(0.01 |
) |
Unrealized investment gains |
|
|
(558 |
) |
|
|
(0.01 |
) |
|
|
(70 |
) |
|
|
— |
|
Transaction-related expenses(2) |
|
|
3,361 |
|
|
|
0.06 |
|
|
|
1,122 |
|
|
|
0.02 |
|
Restructuring and executive transition costs(3) |
|
|
2,688 |
|
|
|
0.05 |
|
|
|
— |
|
|
|
— |
|
Tax impact on items listed above |
|
|
(1,931 |
) |
|
|
(0.04 |
) |
|
|
(1,054 |
) |
|
|
(0.02 |
) |
Adjusted net income(1) |
|
$ |
52,079 |
|
|
$ |
0.94 |
|
|
$ |
3,207 |
|
|
$ |
0.06 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted average shares outstanding - basic |
|
|
|
|
|
54,310 |
|
|
|
|
|
|
56,674 |
|
||
Weighted average shares outstanding - diluted |
|
|
|
|
|
55,146 |
|
|
|
|
|
|
57,371 |
|
||
_______________
16
Free Cash Flow
|
|
Year Ended |
|
|
Year Ended |
|
||||
(In thousands of U.S. Dollars) |
|
December 31, 2023 |
|
|
December 31, 2022 |
|
||||
Net cash provided by operating activities |
|
$ |
|
58,615 |
|
|
$ |
|
17,321 |
|
Purchase of property, plant and equipment |
|
|
|
(6,491 |
) |
|
|
|
(8,424 |
) |
Acquisition of other intangible assets |
|
|
|
(8,344 |
) |
|
|
|
(4,394 |
) |
Free cash flow before growth CAPEX |
|
|
|
43,780 |
|
|
|
|
4,503 |
|
Investment in equipment for joint revenue sharing arrangements |
|
|
|
(18,000 |
) |
|
|
|
(19,803 |
) |
Free cash flow |
|
$ |
|
25,780 |
|
|
$ |
|
(15,300 |
) |
17