Tag Archives: IMAX

Imax accounting errors US$2.5M

TORONTO (CP) _ Giant-screen movie company Imax Corp. (TSX:IMX) saw its financial problems get a little bigger Friday as it postponed its annual report and said it will restate six years of results, recognizing accounting errors worth about US$2.5 million.

The 2006 earnings report was due Friday, but the company now expects to file by March 30, falling within the 15-day grace period allowed by regulators.

In an investor conference call, co-CEOs Richard Gelfond and Bradley Wechsler detailed the errors that were discovered while the company reviewed its financial statements for timing of revenue recognition.

The revisions include fees paid to a law firm that was hired to find theatre deals in Asia. The fees were listed as a "cost of goods sold" when the theatre installations were recognized. The Toronto-based company, which reports in U.S. dollars, will adjust its financial statements by $800,000.

Imax also incorrectly tracked marketing expenses for co-productions "Deep Sea 3-D" and "Magnificent Desolation," and listed certain costs as profits, amounting to $900,000 in adjustments.

The company also paid U.S. expense taxes in 2006 that should’ve been recognized as $250,000 each year from 2003 to 2005, totalling $750,000.

"We fully recognize that the delay in filing the 10-K (U.S. financial report) and the underlying causes are unacceptable and we are committed to improving our financial controls and systems," Wechsler said.

Imax is reviewing the errors with accounting firm PricewaterhouseCoopers LLP and will provide an update once it reaches a conclusion, it said.

A fourth-quarter conference call is scheduled for March 30.

Imax discovered the latest financial problems while combing through past reports as part of informal inquiries made by the U.S. Securities and Exchange Commission and the Ontario Securities Commission about its previous accounting recognition of revenues. The company noted that the two incidents are otherwise unrelated.

Imax is also facing shareholder civil suits claiming the company misled investors.

Last August, chief financial officer Frank Joyce abruptly resigned. Imax said he planned to leave the company months ago to pursue other interests.

The company has yet to hire a permanent replacement.

Last November, Imax stock tumbled 29 per cent to its lowest level in more than four years after the firm reported a US$12-million loss in the third quarter, missing analyst estimates by a wide margin.

Aside from the restatement, Imax logged a strong week of announcements, saying that it had installed seven theatre systems in the fourth quarter and signed for another nine systems.

The exhibitor wrapped up the year with about $27 million in cash and short-term investments.

Earlier this week, Imax entered a joint venture with exhibitor Regal Cinemas Inc. to install two giant-screen theatre systems, and signed a separate five-screen deal with a Kansas-based exhibitor.

The contracts came on the heels of blockbuster first-weekend results for the action film "300" which brought in $71 million across both conventional and giant screens. Imax posted weekend records on 48 of the 62 screens that were showing the film.

On the Toronto stock market Friday afternoon, Imax shares dipped five cents at $5.82. The 52-week high is $12.72 and the low is $3.78.

Imax joint venture for more theatres

TORONTO (CP) _ Imax Corp. (TSX:IMX) and Regal Cinemas Inc. have entered a joint venture to install two giant-screen theatre systems, while Imax inked a separate five-screen deal with a Kansas-based exhibitor.

The contract with Regal, announced Monday, is part of Imax’s plan to partner with major exhibitors to increase its screen count, the company said.

Regal will install the Imax screens at multiplexes in San Diego, Calif., and Portland, Ore. Separate from that venture, Regal will set up an Imax theatre at the Pointe Complex in Orlando, Fla.

Financial details for the agreement was not disclosed.

All three locations are expected to open before the launch of the release of "Spider-Man 3" on May 4, which will unspool in an Imax version the same day as it’s released in traditional cinemas.

"Regal has been a great operator of its existing Imax network, and we are gratified to participate with its team in additional theatres," said co-chairman and co-CEO Richard Gelfond.

A separate agreement with Kansas-based Dickinson Theatres Inc. will install five screens at the chain’s theatres.

The first will be installed this year while three more screens will be in place next year. The fourth is set to be installed in 2009 while the final screen has no target date.

The new contracts follow a record-setting box-office weekend for the Warner Bros. feature film "300," which rolled out simultaneously in both regular cinemas and on Imax screens.

Early estimates have said the action movie took in more than $70 million over the weekend, setting a new record for a March weekend box-office opening. The tally includes profits from Imax screens, though the company hasn’t disclosed how much money it generated.

Imax shares climbed 58 cents to $5.94 on the Toronto stock market in afternoon trading.

IMAX U.S theatre deal

TORONTO, IMAX Corporation and Kerasotes ShowPlace Theatres, North America’s sixth largest exhibitor, today announced an agreement to install an IMAX® theatre in the exhibitor’s flagship location, the ShowPlace 16 in Indianapolis, Indiana.

Expected to open in 2007, the new IMAX theatre will utilize IMAX MPX® technology and take advantage of Hollywood movies that have been digitally re-mastered into the unparalleled image and sound quality of The IMAX Experience®. Kerasotes ShowPlace Theatres currently operates 81 theatres with 685 screens in the USA. With this agreement, IMAX now has partnerships with seven of the top ten exhibitors in North America.

"IMAX theatres offer a unique and immersive cinematic experience that cannot be replicated at home or in any other type of theatre," said Tony Kerasotes, Chairman and CEO of Kerasotes ShowPlace Theatres. "The attractive economics of IMAX’s MPX theatre system will enable us to cost-effectively enter the IMAX theatre business and offer our customers Hollywood’s biggest titles in an exciting, premium format. We look forward to opening our first IMAX theatre in 2007 and hope to expand with more locations in the future."

"We are delighted to enter into a new partnership with one of North America’s leading, well-respected and innovative exhibitors," said IMAX co-Chairmen and co-CEOs Richard L. Gelfond and Bradley J. Wechsler. "Kerasotes ShowPlace Theatres is a welcome addition to the family of IMAX exhibitors, and we are excited to build on this relationship as we continue to implement our domestic growth strategy."

The new IMAX theatre will feature IMAX MPX technology. The IMAX MPX theatre system was designed specifically to enable multiplex operators to more cost effectively enter into the IMAX theatre business, either by retrofitting an existing stadium-seating auditorium or via an economical new build. The new IMAX theatre will be capable of playing Hollywood event films that have been digitally re-mastered into the unparalleled image and sound quality of The IMAX Experience, as well as original IMAX productions in 2D and IMAX® 3D.

Imax Corp. off the market

TORONTO (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

Happy Feet: The IMAX Experience to open in IMAX theatres on November 17th

LOS ANGELES, Nov. 16 – Get tapped into IMAX! The digitally re-mastered IMAX® release of Warner Bros. Pictures’ Happy Feet, a comedy adventure about a tap-dancing Emperor Penguin and his adventures in the Antarctic, will open in 79 IMAX® theatres in North America this Friday, November 17, 2006. The film has been digitally re-mastered into the unparalleled image and sound quality of The IMAX Experience® with proprietary IMAX DMR® (Digital Re-mastering) technology.

Happy Feet is directed by George Miller (the Babe films, Lorenzo’s Oil and the Mad Max trilogy) with an all-star ensemble cast, featuring the voices of Elijah Wood, Robin Williams, Brittany Murphy, Hugh Jackman, Nicole Kidman, Hugo Weaving and Anthony LaPaglia.

"Early screenings and reviews of Happy Feet have been sensational, proving that this is a film the whole family will enjoy throughout the entire holiday season," said Dan Fellman, President of Domestic Distribution at Warner Bros. Pictures. "We are thrilled to be able to bring it to theatergoers in both conventional and IMAX theaters this weekend, to kick off the holidays."

"The lovable characters and exhilarating soundtrack of Happy Feet look and sound spectacular in IMAX," added Greg Foster, Chairman and President of IMAX Filmed Entertainment. "We are thrilled that the expanding network of IMAX theatres will enable more moviegoers to have the opportunity to experience Happy Feet in a very special way this holiday season."

"Happy Feet" is set In the great nation of Emperor Penguins, Deep in Antarctica, you’re nobody unless you can sing-which is unfortunate for Mumble, who is the worst singer in the world. He is born dancing to his own tune…tap dancing. Mumble’s mom, Norma Jean, thinks this little habit is cute, but his dad, Memphis, says "it just ain’t penguin." Besides, they both know that, without a Heartsong, Mumble may never find true love. Leaving home, Mumble meets the Adelie Amigos, led by Ramon. The Adelies invite Mumble to party with them in Adelie Land, where Mumble seeks the counsel of Lovelace the Guru, a crazy-feathered Rockhopper penguin who will answer any of life’s questions for the price of a pebble. Together with Lovelace and the Amigos, Mumble sets out across vast landscapes and, after some epic encounters, proves that by being true to yourself, you can make all the difference in the world.

Warner Bros. Pictures presents, in association with Village Roadshow Pictures, a Kennedy Miller production, in association with Animal Logic Film. A George Miller film, "Happy Feet" features the voices of Elijah Wood, Robin Williams, Brittany Murphy, Hugh Jackman, Nicole Kidman, Hugo Weaving and Anthony LaPaglia. The film also features the tap dancing of Savion Glover. "Happy Feet" is directed by George Miller, who also co-wrote the screenplay with John Collee, Judy Morris and Warren Coleman. The film is produced by Doug Mitchell, George Miller and Bill Miller, with Zareh Nalbandian, Graham Burke, Dana Goldberg, and Bruce Berman executive producing. The music is composed by John Powell.



Phoenix – AMC Deer Valley 30 IMAX Theatre


Cathedral City – Desert IMAX Theatre

Dublin – Regal Hacienda Crossings IMAX

Fresno-Edwards Fresno Stadium 22 & IMAX

Irvine – Edwards Irvine Spectrum IMAX

Los Angeles – IMAX Theatre at The Bridge: cinema de lux

Los Angeles – Universal CityWalk IMAX Theatre

Ontario – Edwards Ontario Palace IMAX

San Francisco – AMC Loews IMAX Theatre at Metreon

San Jose – Hackworth IMAX DOME Theatre, The Tech Museum of Innovation


Colorado Springs – Cinemark IMAX Theatre at Cinemark Carefree Circle

Denver – UA Colorado Center IMAX Theatre


Hartford – IMAX Theatre at Showcase Cinemas Buckland Hills


Fort Lauderdale – Blockbuster IMAX Theater at Museum of Discovery and


St. Augustine – World Golf Hall of Fame IMAX Theatre

Tampa – Channelside IMAX


Buford – Regal Mall of Georgia IMAX


Boise – Edwards Boise Stadium IMAX


Batavia – Goodrich Randall 16 & IMAX

Chicago – Navy Pier IMAX Theatre

Lincolnshire – Regal Lincolnshire IMAX

Woodridge – Cinemark IMAX Theatre at Seven Bridges


Evansville – Showplace Cinemas IMAX Theatre


Olathe – AMC Studio 30 IMAX Theatre


Louisville – IMAX Theatre at Showcase Cinemas Stonybrook


Covington – Holiday Squares IMAX Cinema


Natick – Comcast IMAX 3D Theater at Jordan’s Furniture

Reading – Comcast IMAX 3D Theater at Jordan’s Furniture


Ann Arbor – Showcase Cinema Ann Arbor

Dearborn – The Henry Ford IMAX Theatre

Grand Rapids – IMAX Theatre at Celebration! Cinema

Lansing – IMAX Theatre Celebration! Cinema

Sterling Heights – IMAX Theatre at AMC Forum 30


Apple Valley – Great Clips IMAX Theatre


St. Louis – Ronnies 20 Cine IMAX


Las Vegas – Brenden Theatres & IMAX at the Palms

New Jersey

Atlantic City – IMAX Theatre at Tropicana

New York

Buffalo – Regal Transit Center IMAX

New Rochelle – Regal New Roc City IMAX

New York – AMC Loews IMAX Theatre, Lincoln Square

Rochester – Cinemark IMAX Theatre at Tinseltown USA

West Nyack – IMAX Theatre at Palisades Center

White Plains – IMAX Theatre at City Center: Cinema de lux

North Carolina

Charlotte – Observer Omnimax Theatre

Raleigh – IMAX Theatre at Exploris


Columbus – AMC IMAX Theatre, Columbus

Springdale – IMAX Theatre at Showcase Cinemas Springdale


Tulsa – Cinemark IMAX Theatre at The Tulsa


Portland-The OMNIMAX Theatre at OMSI


Harrisburg – Select Medical IMAX Theater at The Whitaker Center for

Science and the Arts

King of Prussia – UA King of Prussia IMAX

Philadelphia – Tuttleman IMAX Theatre, Franklin Institute

Pittsburgh – Rangos OMNIMAX Theater, Carnegie Science Center

Tarentum – CINEMARK at the Galleria at Pittsburgh Mills

South Carolina

Charleston – The Charleston IMAX Theatre at Aquarium Wharf


Nashville – Regal Opry Mills IMAX Texas

Austin – IMAX Theatre at The Bob Bullock Texas State History Museum

Colleyville – The Metro IMAX Theatre

Dallas – Cinemark IMAX Theatre at Cinemark 17

Fort Worth – Fort Worth Museum of Science and History

Houston – Edwards Houston Marq(x)E IMAX


Sandy – Megaplex 17 at Jordan Commons


Chantilly – Steven Udvar-Hazy Center IMAX Theater

Hampton – Riverside 3D IMAX Theater at the Virginia Air & Space Center

Richmond – Ethyl IMAX Dome

Virginia Beach – The Virginia Aquarium IMAX 3D Theater


Seattle – Pacific Science Center’s Boeing IMAX Theater

Spokane – Riverfront Park IMAX Theatre


Fitchburg – Star Cinema IMAX



Calgary – Cineplex Entertainment IMAX Theatre, Paramount Chinook

Edmonton – Cineplex Entertainment IMAX Theatre, SilverCity West Edmonton


British Columbia

Langley – Cineplex Entertainment IMAX Theatre, Colossus Langley

Richmond – Cineplex Entertainment IMAX Theatre, SilverCity Riverport

Nova Scotia

Halifax – Empire IMAX Theatre


Mississauga – Cineplex Entertainment IMAX Theatre, Coliseum Mississauga

Toronto – Cineplex Entertainment IMAX Theatre, Paramount Toronto

Woodbridge – Cineplex Entertainment IMAX Theatre, Colossus Woodbridge


Montreal – Cineplex Entertainment IMAX Theatre, Paramount Montreal

Quebec City – IMAX Le Theatre

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