IMAX Corporation IMAX , based in Mississauga, Canada, reported mixed results in the first quarter of 2017. The company reported break-even earnings per share in the first quarter, which compared favorably to the Zacks Consensus Estimate of a loss of 1 cents. IMAX's earnings per share in the first quarter of 2016 stood at 14 cents.
Total revenue in the first quarter of 2017 was $68.7 million, down 25.48% year over year. The figure also missed the Zacks Consensus Estimate of $71.1 million. Adjusted EBITDA margin in the reported quarter was 29.5%.
Category wise, equipment and product revenues were $11.5 million, down 51.4%. Services revenues totaled $38.8 million, down 12.26%. Rentals revenues totaled $15.8 million, down 27.19%, while Financial income was $2.4 million, up marginally.
IMAX Theater Business generated revenues of $23.2 million down 33.8% year over year. Within this segment, IMAX system sales and sales-type leases were $6.9 million, down 61.43%. Ongoing fees and finance income was $2.5 million, down 3.4%. Meanwhile, Joint revenue sharing arrangements-fixed fees was $0.5 million, down 77.3%. Theater system maintenance was $11 million, up 12.41%, while Other Theatre revenues fell 13% to $2.2 million.
Network Business generated revenues of $39.3 million, down 24.8% year over year. Within this segment, IMAX DMR was $23.4 million, down 21.5%. Joint revenue sharing arrangements-contingent rent was $15.2 million, reflecting a decline of 28.5% and IMAX systems-contingent rent deteriorated 42% to $0.7 million.
Other segments generated revenues of $4.8 million, down 1.62% year over year. Within this segment, Film distribution and post-production was $3.6 million, up 29.4%, and Other revenues were down 37% to $1.2 million. IMAX exited the first quarter with cash and cash equivalents of $190.5 million, compared with $204.7 million at the end of 2016.
Network Growth Statistics
The company installed 15 theaters (including 1 upgrade) as against 19 (including 9 upgrades) in the first quarter of 2016. The company signed 39 theatre agreements in the first quarter of 2017 compared with 36 in the year-earlier quarter. As of Mar 31, 2017, total theater count in backlog was 524 compared with 388 as of Mar 31, 2016.
Imax Corporation Price, Consensus and EPS Surprise
Imax Corporation Price, Consensus and EPS Surprise | Imax Corporation Quote
Zacks Rank & Key Picks
IMAX currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the broader consumer discretionary sector are AMC Entertainment Holdings AMC , Acme United Corporation ACU and Adidas AG ADDYY . AMC Entertainment and Adidas sport a Zacks Rank #1 (Strong Buy), while Acme United carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Shares of AMC Entertainment and Acme United gained over 2% and 6%, respectively, over the last one month, while Adidas shares gained above 17% over a period of three months.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>
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 AMC Entertainment Holdings, Inc. (AMC): Free Stock Analysis Report Imax Corporation (IMAX): Free Stock Analysis Report Acme United Corporation. (ACU): Free Stock Analysis Report Adidas AG (ADDYY): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research