If at first you don't succeed, restate. It's been several months since IMAX
Restating its financials all the way back to 2002, the company has officially filed its updated numbers through 2005. It announced the final five tardy quarters today, and will file them with the SEC later today.
IMAX was mostly tripped up by the company's revenue recognition practices. It originally booked its new theater installations as major components were installed. Now, it will play things squeaky clean, only booking each new system once its installation is completed and signed for.
If IMAX has truly laid its demons to rest, we can finally begin to chew on the company's numbers. 2006 wasn't kind. Revenue dipped slightly, theater sales were flat with the 30 units it booked a year earlier, and a small operating profit turned into a $0.42-per-share loss after its heavy debt burden took a bite.
The picture is starting to get brighter in 2007. Revenues were up by 17%, to $27.2 million. IMAX still posted a loss of $0.12 a share, but the company's top- and bottom-line showings surpassed the $0.14-per-share loss on $21.8 million in revenue that Wall Street was expecting.
The key to revenue growth came from gains in film revenues. That's a good thing to see, especially since it's a steadier metric than lumpy theater installations. The success of Time Warner's
IMAX only gets a fraction of the box-office take, but successful screenings are no doubt inspirational to venue operators who might be on the fence about converting an old multiplex screen or two into a premium IMAX platform.
Major multiplex operators such as AMC, Muvico, and Regal
Screen these other IMAX feature presentations:
- IMAX had a horrible third-quarter report.
- It began 2007 with a laundry list of challenges.
- Beyond outright system sales, IMAX is a multiplex darling with its joint-venture deals.
IMAX has hasn't panned out as well as most of its fellow Motley Fool Rule Breakers picks, but the newsletter's portfolio is still beating the market on average. Meanwhile, Time Warner is a Stock Advisor selection. Get full access to our archived recommendations when you try either newsletter free for 30 days.
Longtime Fool contributor Rick Munarriz is a movie buff, but he does not own shares in any of the companies in this story. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool's disclosure policy only seems eight stories tall.
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