David Steger's questions to Imax Corp (IMAX) leadership • Q4 2024
Question
An analyst from Seaport Research Partners asked whether the guided 40%+ adjusted EBITDA margin would be driven more by gross margin improvements or SG&A leverage, and the relative contribution from box office growth versus cost-cutting. He also inquired about expiring screen relationships and potential repricing opportunities.
Answer
CFO Natasha Fernandes explained the margin expansion will come from a mix of continued operational efficiencies and significant operating leverage from the projected $1.2B+ box office growth against a fixed cost base. CEO Richard Gelfond and Fernandes added that screen renewals are an ongoing process, often negotiated early to facilitate technology upgrades, and IMAX's high renewal rate is supported by its strong negotiating position in well-performing locations.