Imax Surges on Earnings

TORONTO (TheStreet) -- Imax(IMAX) shares are surging today after it reported a spike in earnings during the third quarter.

For the quarter ended September 30, the company saw a triple digit gain in earnings to $6.7 million, or 10 cents per diluted share, compared with earnings of $1.1 million, or 2 cents per diluted share, in the same period a year ago. Adjusted net earnings were up more than 150% to $9.8 million, or 15 cents per diluted share, from $3.9 million, or 6 cents. Diluted earnings were ahead of analyst estimates of 9 cents a share.

Revenue rose 17.5% to $51.1 million from $43.5 million during the quarter as total film revenue surged 68% to $21.0 million from $12.5 million. Production and Imax digital media remastering (DMR) revenue rose 58% to $12.4 million from $7.8 million, driven by a broader range of films and a higher number of operating theaters.

Gross box office from DMR titles increased 70% while the per-screen average, including domestic and international, was up 26%.

"We experienced another strong quarter of box office growth, lead by Christopher Nolan and Warner Bros. pictures' Inception, which grossed over $50 million in Imax theaters, making it our fourth-highest grossing DMR title of all time," CEO Richard Gelfond said.

As management looks ahead to the fourth quarter, it said it is excited about the line-up of upcoming titles including DreamWorks Animation's(DWA) Megamind, part one of Harry Potter and the Deathly Hallows from Warner Bros. and Disney's(DIS) TRON: Legacy.

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The company continues to expand the number of joint revenue sharing theaters in operation. In the third quarter, revenue from joint revenue sharing arrangements was up 89% to $6.5 million from $3.4 million.