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Entertainment Technology News
| IMAX Corporation Announces New Revolving Letter of Credit Facility with Bank of Montreal By IMAX Corporation posted Oct 18, 2008, 19:58 |
Company Has Ample Funding for Roll-out of Joint Venture Digital Projection Systems
(New York) IMAX Corporation (Nasdaq: IMAX; TSX: IMX) announced a new $10 million revolving letter of credit ("LC") facility with Bank of Montreal, replacing its existing $5 million LC facility with the same bank. This line, in addition to IMAX's existing $40 million credit facility and cash on hand, further strengthens the Company's financial capacity to roll out its joint venture digital projection systems.The LC facility will be used primarily for letters of credit, and is fully insured by the Export Development Corporation of Canada. The LC facility is in addition to IMAX's $40 million secured credit facility, under which $20 million has been drawn to date. The Company's current additional borrowing capacity under the secured credit facility is $10.4 million. IMAX also estimates having cash and cash equivalents of approximately $37.5 million on its balance sheet as of the third quarter ended September 30, 2008, compared to $24.6 million at the end of the second quarter ended June 30, 2008.
IMAX said it expects the LC credit facility along with its existing secured credit facility and its solid cash position to provide the Company with ample funding to continue to execute the successful joint venture roll-out of its digital projection systems, 14 of which were in operation as of the end of the third quarter. Four additional digital theatres have opened since quarter-end, for a total of eighteen.
As previously announced, on September 26th the Company's first 14 digital theatres officially debuted with Eagle Eye: The IMAX Experience. The systems performed well, delivering 100% up-time and box office per-screen averages that were above the overall IMAX network average. The Company remains on track to have approximately 40 digital theatres in operation for the release of Madagascar 2: The IMAX Experience on November 7, 2008, and 45-50 digital theatres in operation by year end.
About IMAX Corporation
IMAX Corporation is one of the world's leading entertainment technology companies, specializing in immersive motion picture technologies. The worldwide IMAX network is among the most important and successful theatrical distribution platforms for major event Hollywood films around the globe, with IMAX(R) theatres delivering the world's best movie presentations using proprietary IMAX, IMAX(R) 3D, and IMAX DMR(R) technology. IMAX DMR is the Company's groundbreaking digital re-mastering technology that allows it to digitally transform virtually any conventional motion picture into the unparalleled image and sound quality of The IMAX Experience(R). IMAX's renowned projectors display crystal-clear images on the world's biggest screens, and the IMAX brand is recognized throughout the world for extraordinary and immersive entertainment experiences for consumers. As of June 30, 2008, there were 302 IMAX theatres operating in 40 countries.
IMAX(R), IMAX(R) 3D, IMAX DMR(R), IMAX(R) MPX(R), and The IMAX Experience(R) are trademarks of IMAX Corporation. More information on the Company can be found at http://www.imax.com.
This press release contains forward looking statements that are based on management's assumptions and existing information and involve certain risks and uncertainties which could cause actual results to differ materially from future results expressed or implied by such forward looking statements. Important factors that could affect these statements include ongoing discussions with the SEC and OSC relating to their ongoing inquiries and the Company's accounting, the performance of films, the signing of theatre system agreements, the viability of new technologies, businesses and products, the timing of theatre system deliveries, the mix of theatre systems shipped, the timing of the recognition of revenues and expenses on film production and distribution agreements, risks arising from potential material weaknesses in internal control over financial reporting and fluctuations in foreign currency and in the large format, general commercial exhibition and out-of-home entertainment markets. These factors and other risks and uncertainties are discussed in the Company's most recent Annual Report on Form 10-K and most recent Quarterly Reports on Form 10-Q.