Tuesday, December 2, 2008

IMAX Third Quarter Earnings 11/09/08

Reading over the Imax Third Quarter Report I will finally provide my insight as I have been meaning to for awhile now.

First Imax is a stock that I own in real life.

The company announced with its earnings that its digital projection system in on track.
The company reported earnings of $2.5 million as compared to a loss of $2.8 million last year.
Imax posted a loss of .05 per share which is narrower than last years loss of .19 per share in 2007 third quarter.
The company currently has $37.6 million in cash.
Imax said they continue to be profitable in 2009.
The strong performance of The Dark Knight contributed to the narrower loss and will continue in the future as it will be re-released on Imax screens in January.

Kung Fu Panda on Imax grossed $3.8 million in the third quarter but grossed more to be recognized in the fourth quarter.
The Dark Knight grossed $60.1 million in the third quarter.
Eagle Eye grossed $6.7 million in the third quarter for the company.

Imax has a backlog of 238 theater systems under contract.

Future Releases

Madagascar 2 (In Imax currently as I write this)
The Day the Earth Stood Still (December 12)

The compay also announced that Avatar (the first directed movie by James Cameron since Titanic) will show on Imax screens in December of 2009.

Since the earnings were released the company also announced a five picture deal with Disney (DIS) starting with A Christmas Carol in 2009. This is great news for the company and may pave the way for potential partnerships. (I hope it brings one from another one of my favorite stocks Marvel (MVL) which could put Iron Man 2 and Captain America on the big screen).

Shares are trading at $2.81 as I write this. This is around the 52 week low and well off the 52 week high of $8.28. The company turned down a buyout a couple years ago believed to be around $9 per share. The shares should move up after the digital conversion and a few more successful blockbusters like The Dark Knight. Look for shares to move back up to $4.00 by this time next year 12/2/09.

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