Bravo, 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 breathing new life into 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.
The news should only get better from here; 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
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
The 2010 release slate is already fleshing itself out, with supersized treatments of Time Warner, Disney
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
Patient investors have been rewarded for sitting through the feature. IMAX shares have more than tripled over the past year. The company's promising prospects of reinventing the moviegoing experience made it a logical Motley Fool Rule Breakers recommendation a few years ago. It's taken awhile for IMAX to get it right, but there appears to be little stopping the company now.
Turn down the lights and bring on the threequel.
Have you ever been to an IMAX theater? Was it worth the premium? Please share your perspective in the comment box below.
