IMAX Corporation has reported a net loss per share of $0.21 for the quarter ended December 31, 2008, compared to a net loss per share of $0.25 for the fourth quarter of fiscal 2007.
During the fourth quarter of 2008, the company incurred certain charges related to the introduction of its digital projection system and the launch of new joint revenue sharing arrangement theatres. Excluding these items from the fourth quarters of 2008 and 2007, the company's loss per share was $0.11 and a loss per share of $0.21, respectively.
The charges in the fourth quarter of 2008 include: a $1.6 million asset impairment charge reflecting the write down of film-based projector inventories; $1.5 million in launch costs reflecting the opening of new joint revenue sharing arrangement theatres; and $1.3 million in accelerated depreciation on existing film-based joint revenue sharing arrangement theatres due to the earlier than anticipated digital upgrade of those theatres.
Included in the fourth quarter of 2007 was a $4 million asset impairment charge reflecting the write-down of film-based projector inventories, partially offset by a one-time benefit from discontinued operations of $2.4 million.
IMAX Co-Chairmen and Co-CEOs Richard L. Gelfond and Bradley J. Wechsler said in a statement, "As we have said previously, in 2008 we laid the groundwork that is significantly transforming the Company from one that was entirely film-based to one that is increasingly digital, and our business model from one of one-time sales to one of more significant recurring revenues. While our financial results reflect the costs associated with this transformation, our revenue did not yet reflect the benefits, as many customers elected to wait for our digital product. With the introduction of IMAX's digital technology now well underway, we continue to believe that the key drivers of our business -- our digital technology, our growing base of joint revenue sharing theatres and our robust movie slate -- should deliver strong revenue growth and return us to profitability in 2009."
