IMAX Corporation (IMAX) has reported a 60.23 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $8.94 million, or $0.13 a share in the quarter, compared with $22.49 million, or $0.32 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $14.48 million, or $0.22 a share compared with $27.29 million or $0.39 a share, a year ago.
Revenue during the quarter dropped 10.41 percent to $106.91 million from $119.33 million in the previous year period. Gross margin for the quarter contracted 849 basis points over the previous year period to 51.75 percent. Total expenses were 82.50 percent of quarterly revenues, up from 70.73 percent for the same period last year. That has resulted in a contraction of 1177 basis points in operating margin to 17.50 percent.
Operating income for the quarter was $18.71 million, compared with $34.93 million in the previous year period.
"2016 was an impressive year for IMAX on several strategic fronts: our footprint grew 15%, we signed a record 319 new theatre agreements, and we further established IMAX as a leader in the entertainment industry through two key growth initiatives - original content and virtual reality," said IMAX chief executive officer Richard L. Gelfond. "We're extremely optimistic on the theatrical side of the business, where demand for IMAX has hit record levels. With a global footprint of 1,215 theatres in 75 countries and a promising blockbuster-driven 2017 film slate that features more IMAX differentiation than any year in our history, we believe we’re extremely well positioned for future growth."
Operating cash flow declines
IMAX Corporation has generated cash of $77.87 million from operating activities during the year, down 7.52 percent or $6.33 million, when compared with the last year.
The company has spent $64.89 million cash to meet investing activities during the year as against cash outgo of $78.80 million in the last year.
The company has spent $125.78 million cash to carry out financing activities during the year as against cash inflow of $204.70 million in the last year period.
Cash and cash equivalents stood at $204.76 million as on Dec. 31, 2016, down 35.50 percent or $112.69 million from $317.45 million on Dec. 31, 2015.
Debt comes down
IMAX Corporation has recorded a decline in total debt over the last one year. It stood at $27.32 million as on Dec. 31, 2016, down 6.69 percent or $1.96 million from $29.28 million on Dec. 31, 2015. Total debt was 3.19 percent of total assets as on Dec. 31, 2016, compared with 3.14 percent on Dec. 31, 2015. Debt to equity ratio was almost stable at 0.04 as on Dec. 31, 2016, when compared with the last year. Interest coverage ratio deteriorated to 38.98 for the quarter from 71.14 for the same period last year.
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