Double Feature at IMAXhttp://www.fool.com/investing/high-growth/2010/10/28/double-feature-at-imax.aspx Rick Aristotle Munarriz
October 28, 2010
Life is good at the local multiplex if you're a premium exhibitor.
Shares of IMAX (Nasdaq: IMAX ) opened higher this morning, after the Toronto-based company behind gargantuan screens and sense-awakening projection and sound systems delivered a healthy quarter.
Revenue climbed 17% to $51.1 million, and that was with fewer installations of the sales-type leases that the company books as immediate revenue. Many of the screens going up these days are part of joint-venture agreements with exhibitors. These arrangements may not have the same kind of top-line pop initially, but it does allow IMAX to participate more actively in the box office receipts and related concession sales.
Reported earnings grew fivefold to $0.10 a share, but even adjusted earnings more than doubled.
Clearly there's a healthy appetite for consumers to pay up a few bucks more for premium screenings, and this bodes well for IMAX, as well as sound specialist Dolby (NYSE: DLB ) and 3-D licensing leader RealD (NYSE: RLD