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Headline, Industry News
Imax Corp. off the market
Monday December 18th 2006TORONTO (CP) _ Widescreen theatre company Imax Corp. (TSX:IMX) took itself off the auction block Friday after failing to find a suitable buyer, saying it will focus instead on growing the company’s network and on strategic business initiatives.
The Toronto company, which been mulling a possible sale or merger since the spring, said after stock markets closed that finding a buyer wouldn’t enhance shareholder value at this time.
Instead, Imax’s board and management will focus on growth and other initiatives to increase the value of the troubled company.
"While Imax received interest from multiple parties in our process of exploring a potential sale or merger of the company, none ultimately indicated a willingness to acquire the company at an acceptable valuation," Imax co-chairmen and co-CEOs Richard Gelfond and Bradley Wechsler said in a release.
"As we reported at the end of this year’s third quarter, we are confident about our ability to profitably grow the global Imax network, and to succeed with our new business initiatives designed to expand the Imax footprint, such as our pursuit of joint venture opportunities around the world and our development of an Imax digital projector, targeted for introduction in 2008."
Imax decided to start looking for a possible buyer in March after "several unsolicited inquiries" prompted management to look at strategic alternatives. However, those efforts failed to produce a deal and racked up expenses that rose higher than the company had expected.
Two investment banks were authorized by the board’s special committee to explore interest among potential buyers, but at a lower price than previously sought by Imax.
Imax is also grappling with informal inquiries by the U.S. Securities and Exchange Commission and Ontario Securities Commission about its previous accounting recognition of revenues as well as shareholder civil suits claiming the company misled investors.
In November, the company’s stock hit a four-year low of $3.84 after reporting a US$12-million loss in its third quarter, when the company installed no new movie systems and financial results missed analyst estimates by a wide margin.
The Toronto-based company’s loss amounted to 30 cents per share, compared with a profit of $2.3 million or six cents per share in the third quarter of 2005.
Imax, which keeps its books in U.S. dollars, had said the loss resulted from a combination of disappointing box-office returns and soaring legal costs, while installations of theatre systems dropped to zero. Its quarterly revenue also fell 38 per cent to $20.7 million from $33.4 million.
Prior to the release Friday, Imax shares fell 15 cents, or three per cent, to C$4.68 on the Toronto Stock Exchange.
At the end of September, there were 280 Imax theatres operating in 40 countries
Headline, Industry News
Imax Corp. off the market
Monday December 18th 2006TORONTO (CP) _ Widescreen theatre company Imax Corp. (TSX:IMX) took itself off the auction block Friday after failing to find a suitable buyer, saying it will focus instead on growing the company’s network and on strategic business initiatives.
The Toronto company, which been mulling a possible sale or merger since the spring, said after stock markets closed that finding a buyer wouldn’t enhance shareholder value at this time.
Instead, Imax’s board and management will focus on growth and other initiatives to increase the value of the troubled company.
"While Imax received interest from multiple parties in our process of exploring a potential sale or merger of the company, none ultimately indicated a willingness to acquire the company at an acceptable valuation," Imax co-chairmen and co-CEOs Richard Gelfond and Bradley Wechsler said in a release.
"As we reported at the end of this year’s third quarter, we are confident about our ability to profitably grow the global Imax network, and to succeed with our new business initiatives designed to expand the Imax footprint, such as our pursuit of joint venture opportunities around the world and our development of an Imax digital projector, targeted for introduction in 2008."
Imax decided to start looking for a possible buyer in March after "several unsolicited inquiries" prompted management to look at strategic alternatives. However, those efforts failed to produce a deal and racked up expenses that rose higher than the company had expected.
Two investment banks were authorized by the board’s special committee to explore interest among potential buyers, but at a lower price than previously sought by Imax.
Imax is also grappling with informal inquiries by the U.S. Securities and Exchange Commission and Ontario Securities Commission about its previous accounting recognition of revenues as well as shareholder civil suits claiming the company misled investors.
In November, the company’s stock hit a four-year low of $3.84 after reporting a US$12-million loss in its third quarter, when the company installed no new movie systems and financial results missed analyst estimates by a wide margin.
The Toronto-based company’s loss amounted to 30 cents per share, compared with a profit of $2.3 million or six cents per share in the third quarter of 2005.
Imax, which keeps its books in U.S. dollars, had said the loss resulted from a combination of disappointing box-office returns and soaring legal costs, while installations of theatre systems dropped to zero. Its quarterly revenue also fell 38 per cent to $20.7 million from $33.4 million.
Prior to the release Friday, Imax shares fell 15 cents, or three per cent, to C$4.68 on the Toronto Stock Exchange.
At the end of September, there were 280 Imax theatres operating in 40 countries
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Headline, Industry News
Imax Corp. off the market
Monday December 18th 2006TORONTO (CP) _ Widescreen theatre company Imax Corp. (TSX:IMX) took itself off the auction block Friday after failing to find a suitable buyer, saying it will focus instead on growing the company’s network and on strategic business initiatives.
The Toronto company, which been mulling a possible sale or merger since the spring, said after stock markets closed that finding a buyer wouldn’t enhance shareholder value at this time.
Instead, Imax’s board and management will focus on growth and other initiatives to increase the value of the troubled company.
"While Imax received interest from multiple parties in our process of exploring a potential sale or merger of the company, none ultimately indicated a willingness to acquire the company at an acceptable valuation," Imax co-chairmen and co-CEOs Richard Gelfond and Bradley Wechsler said in a release.
"As we reported at the end of this year’s third quarter, we are confident about our ability to profitably grow the global Imax network, and to succeed with our new business initiatives designed to expand the Imax footprint, such as our pursuit of joint venture opportunities around the world and our development of an Imax digital projector, targeted for introduction in 2008."
Imax decided to start looking for a possible buyer in March after "several unsolicited inquiries" prompted management to look at strategic alternatives. However, those efforts failed to produce a deal and racked up expenses that rose higher than the company had expected.
Two investment banks were authorized by the board’s special committee to explore interest among potential buyers, but at a lower price than previously sought by Imax.
Imax is also grappling with informal inquiries by the U.S. Securities and Exchange Commission and Ontario Securities Commission about its previous accounting recognition of revenues as well as shareholder civil suits claiming the company misled investors.
In November, the company’s stock hit a four-year low of $3.84 after reporting a US$12-million loss in its third quarter, when the company installed no new movie systems and financial results missed analyst estimates by a wide margin.
The Toronto-based company’s loss amounted to 30 cents per share, compared with a profit of $2.3 million or six cents per share in the third quarter of 2005.
Imax, which keeps its books in U.S. dollars, had said the loss resulted from a combination of disappointing box-office returns and soaring legal costs, while installations of theatre systems dropped to zero. Its quarterly revenue also fell 38 per cent to $20.7 million from $33.4 million.
Prior to the release Friday, Imax shares fell 15 cents, or three per cent, to C$4.68 on the Toronto Stock Exchange.
At the end of September, there were 280 Imax theatres operating in 40 countries
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