Leading global entertainment technology developer,
), yesterday announced that its board of directors has authorized
the repurchase of $150 million of its common shares within the next
three years. The company's strong financial position and
encouraging cash flow outlook allows management to raise its
Previously, IMAX's business model emphasized on theater
technologies and equipment sales. However, the company has
gradually adopted Hollywood box-office selling as its integral
business wing. Management is presently focusing on three factors,
namely, scalability, product differentiation and penetration.
In the first quarter of 2014, IMAX signed 35 new theaters
compared with 17 in the prior-year quarter. Total theater signing,
at the end of the reported quarter, stood at 36 against 25 at the
end of the prior-year quarter.
As of Mar 31, 2014, total theaters in backlog were 431 compared
with 283 at the end of the same quarter of the previous year.
IMAX's international expansion offers several benefits. Per screen
average (PSA) is $1.4 million per year in international markets
compared with $1 million in the U.S.
In a separate development, IMAX has entered into a multi-picture
The Walt Disney Co.
) and received strategic investments in its Chinese venture. We
believe that these developments will significantly benefit the
company over the long-term. IMAX is also penetrating into European
markets, which are economically most volatile.
Recently released movie, "How To Train Your Dragon 2" of
DreamWorks Animation SKG Inc.
) was digitally re-mastered into the immersive IMAX 3D format and
released across all IMAX theaters in the U.S. on Jun 13, 2014.
IMAX currently carries a Zacks Rank #3 (Hold). Another
better-ranked stock in the movie/TV production/distribution
), which carries a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research?
Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
NEWS CORP NEW-A (NWSA): Free Stock Analysis
DISNEY WALT (DIS): Free Stock Analysis Report
IMAX CORP (IMAX): Free Stock Analysis Report
DREAMWORKS ANIM (DWA): Free Stock Analysis
To read this article on Zacks.com click here.