Imax shares jump on strong 3rd-quarter results
LOS ANGELES (AP) — Imax Corp. said Thursday its third-quarter profit jumped 79 percent, as the company installed its systems in more theaters and made more money from converting movies to the Imax format.
The news pleased investors and Imax shares jumped in morning trading.
Imax earned $15 million, or 22 cents per share, up from $8.4 million, or 12 cents per share, in the same quarter last year.
The profit beat Wall Street predictions. Analysts, on average, expected a profit of 21 cents per share, according to a FactSet poll.
Revenue rose 20 percent to $80.7 million from $67.5 million, ahead of average analysts' predictions of $76.2 million.
Revenue from Imax systems grew 23 percent to $25.4 million, as the company installed 14 full, new theater systems under sales and sales-type lease arrangements during the recent quarter, up from 11 in the third quarter of 2011.
Revenue from joint sharing agreements jumped 32 percent to $13.2 million, boosted by the installation of 14 new theaters under joint revenue sharing agreements. As of Sept. 30, the company had 287 theaters operating under that kind of agreement, up from 218 a year ago.
Production and digital re-mastering revenue rose 36 percent to $25.2 million, as gross box office receipts from digitally re-mastered films rose 6 percent to $173.2 million.
The company said it still expects to install about 110 new theater systems, excluding digital upgrades, this year. It also projected that it will install between 110 and 125 new theater systems, excluding digital upgrades, in 2013.
Imax shares rose 70 cents, or 3.2 percent, to $22.41 in morning trading.