Imax Corp. reported a net loss for the second quarter of 2020, as the ongoing novel coronavirus pandemic continues to impact the U.S. and many of the exhibitor’s theaters around the world.
Imax reported a loss of $26 million, or a 44 cent loss per share for the second quarter. During the same three month period last year, the premium exhibition company reported net income of $11.4 million, or 19 cents earnings per share.
The company did fare better than analysts expected, however. Those tracking the stock via Yahoo Finance forecasted Imax would report a loss of 52 cents per share.
Revenue for the second quarter also took a hit due to the pandemic shutdowns, coming in at $8.9 million, down roughly 92% from the $104.8 million in revenue Imax took in during the same quarter a year ago. Analysts anticipated revenue to be $9.8 million for the 2020 second quarter.
Much like the previous quarter, Imax’s second quarter was grossly impacted by the closure of substantially all of the theaters in its global network. The pandemic reduced Imax’s revenue to essentially zero and caused a margin loss for the quarter. The company said that during the second quarter it accrued $3.2 million in payroll subsidies and tax credits from the Canadian and US governments as part of their COVID-19 relief programs.
Things may be beginning to look up for Imax as movie theaters outside of the U.S. look to reopen in places like Europe and China, where the company has already opened 409 theaters that are scheduled to debut Hollywood and local language films over the coming weeks.
“Imax is uniquely advantaged as theaters begin to reopen on a rolling basis throughout the world. Our model gives us the flexibility to reopen where safe, program locally relevant content to maximize revenues, and play a leadership role as the industry returns,” CEO Richard L. Gelfond, said in a statement. “We are seeing early signs of progress, with approximately 40% of our global network currently generating revenue.”
In addition to China opening, the South Korea blockbuster “Peninsula” continues to perform well across Asia and Europe, drawing $26.5 million in global box office despite capacity limitations and highlighting solid demand among moviegoers in lower-risk markets worldwide, Gelfond continued.
He said that at the end of the second quarter, Imax had $319 million in cash and recently amended its credit agreement for increased financial flexibility through September 2021. The company also accrued $3.2 million in payroll subsidies and tax credits from the Canadian and US governments as part of their COVID-19 relief programs.
“We continue to look ahead to an exceptionally strong slate through 2021, as studios affirm their commitment to the theatrical release by rescheduling their key blockbuster titles,” Gelfond said in a statement. “Additionally, major global exhibitors continue to underscore the value of The Imax Experience, with new agreements including a 10-theatre deal with Wanda Film in China and a multinational 17-theatre deal with CGV.
“We remain unwavering in our stance that the health and safety of audiences must be the priority as theaters reopen and we support by the work of local governments and our partners to put public health first,” he continued.