Q4 2019 Earnings Call
Ladies and gentleman, you're currently on hold for the IMAX fourth quarter in full year 2019 earnings conference call. At this time yard meeting additional participants and we'll be starting shortly thank you for your patience today. Please continue to standby.
[music].
Please standby.
Good day, ladies and gentlemen, and welcome to the IMAX fourth quarter and full year 2019 earnings Conference call. All participants are currently you know listen only mode. Following the presentation. We will conduct a question and answer session. Please press star one on your telephone keypad to signal.
As a reminder, today's call is being recorded at this time I would like to hand, the conference over to Ms. Heather Anthony. Please go ahead.
Thank you Sir.
Good morning, everyone and thank you for joining us on today's fourth quarter fiscal year 2019 earnings Conference call I'm confident to review our financial results are rich Gelfond, Chief Executive Officer, and Patrick Mcclymont, Chief Financial Officer.
Collagen President IMAX theaters.
Mr. Chief Financial Officer are also joining us today.
Hey conference call is being webcast in its entirety on our website a replay of the webcast.
Shortly after this call.
In addition, the full text of our fourth quarter earnings press release on slide presentation accompanying today's call I've been posted on the Investor Relations.
And our website.
I think inclusion of this call it all our historical excel model will be posted on the site as well.
I'd like to remind you the following information regarding forward looking statements.
Our comments and answers your questions on this call is well get company like acne statements that are forward looking.
I think became a future results or outcomes.
Actual future results are encouraged says may differ materially from these forward looking pretty much.
Please refer to our S E filing for more detailed discussion on some of the factors that could affect our future results and outcome.
During today's call references may be made certain non-GAAP financial measures as defined by regulation G. The Securities and Exchange Commission.
Got you know non since you could not here.
Definition of these matters as well as reconciliations to non-GAAP financial measures, including adjusted net income adjusted Yep.
EBITDA I find buyers.
We are contained in the Bakken absolutely.
That living out during the call ever sinister rich golf I'm.
Thanks, Heather and good afternoon, everyone.
Please put share our results for the fourth quarter and full year 2019.
An extremely successful year, which we drove growth while maintaining cost discipline that posted several new company records banks the discipline focus on execution, we delivered on the initial gardens. We shared with you. This part of last year or turned in a strong financial performance.
These results demonstrate the strength of beyond that spread and unique value creative approach the global entertainment ecosystem.
On slide four where the highlights for the full year some of which include.
Record annual revenue of 396 million, Oh, 6% year over year.
Record adjusted EBITDA of 149 million up 12% of 15% increase and adjusted earnings per share, 7% in global box office.
Oh for all time record a 1.11 0.1 over 8 billion and 9% growth in our commercial Theatre network. That's we continue to diversify our global brand footprint.
As we look ahead, we're focused on building on a strong position in several key ways.
Strengthening of diversifying our content portfolio.
True growing of diversifying our global Theatre network three your ball, we are technology to provide the best possible experience the audience isn't the best possible tools to creators and floor capitalizes on strong demand. So the IMAX experience in new ways.
Of course, we clearly very headwinds in China early this year due to the Corona virus.
First I want to say that our thoughts and prayers are with all those impacted by the outbreak in China that around the world.
We continue to monitor the safety of our employees in China closely that are grateful that or accounted for that help.
In terms of the impact on our business. Let me give me a brief update of what we know and provide some contracts.
At this time all theaters in the country remain close we support the decision or the government who do all they can to contain the virus.
On slide five you could see that prior to the Corona virus related closures. The IMAX, China business was performing well that's strong momentum following a very successful 2019.
At the close of 2019, a commercial theatre network and try to stood at 702 locations.
13% year over year.
Our 2019, greater China box office of $366 million wasn't an all time highs and grew by 9% year over year were 14% in constant currency significantly outpacing the market growth of 5%.
No I wonder if the top 10 titles and China had an IMAX release in 2019, demonstrating our continued high rate, which is being driven by our flexible programming strategy.
Overall, we're encouraged by the long term performance a trajectory of our business in China.
A wall the grown about its is a serious short term challenge, we see it as a rare out of the ordinary event that will ultimately test.
We are confident the business will rebuild that resume delivering attractive growth and strong performance wants conditions in China.
Warlords.
Well every situation is unique we believe that consumers will be eager to get out of their homes, Oh, it's hard to shopping malls and send them. A complex is for out of home entertainment driving a rebound in box office, which is what occurred in Hong Kong post the Sars outbreak in 2003.
Furthermore, at this time, we continue to expect that for the postpone titles from our Chinese new year slate or rise in theaters sometime this year. While there are no guarantees we expect that these releases will ultimately be lead schedule for multiple dates.
Given the more room to breed well, they're competing head to head and say what else during the new year period.
As a result, we believe they will be well position to capitalize on the strong audience. The man we saw on pre itself and buzz heading after Chinese new year.
Among those films is detect the try to tell three one of the first Chinese local language releases to be filmed with IMAX cameras.
Moving to 2020 more broadly as we look at the 2020 slate we are encouraged by our pipeline for a number of reserves.
Burst many key titles feature I guess technology, which serves as a key differentiator.
We made a strategic effort to inject more IMAX DNA into a slate working with leading filmmakers to utilize our technology to bring the biggest blockbusters the life.
As we've said historically when filmmakers use our cameras, we tend to capture a greater share of box office.
And 2020 will set a new record for releases better filmed with IMAX well don't leaves five for the years because films, including no time to die the newest installment in the James Bond franchise, which will be released a few days early in our theaters Wonder woman 1984.
Chris No one's latest side, but at the parent Paramount's top gun Maverick as intent to try to tell three which again at this time, we anticipate what we release later this year.
Talk on will be certified as filmed with IMAX, What's your new strategic initiative.
Through which we certified capital our digital cameras to shoot Nymex when paired with our proprietary post production technology.
Second the 2020 pipeline looks to be brought in balanced across the board fulfilled throughout the year, but hold strong appeal with our audience, but Marvel Marvels Black widow any turtles.
To past nine which has already begun to advance ticket sales that's made they view the sequel to this last year then.
I would anticipate adaptation of the side by class to do.
We continue to drive global diversification of our content portfolio that effort that has been very successful that is evident for our results in 2019.
It's important to remember IMAX is a global brand as you can see on slide seven.
In fact, our percentage of box office thrives outside of North America reach 67% in 2019 of them, 65% in 2018.
On slide eight you can see that for the first part in 2019, a greater China. The rest of world markets out gross domestic business, we set new year only records in 2019 for local language box office, China box office and international Bob.
So office outside of China.
In fact, we set new IMAX box office Records and 27 countries worldwide. It is clear that our efforts to grow our network and capture the opportunity in international markets is bearing fruit.
Furthermore, we're leveraging our brand technology I relationships across the industry to bring new types of content and experiences to a screens with the proliferation of streaming platforms and content. We are seeing that streaming services or looking to event because their content [noise] wasn't.
Out of home experience in an effort to break through the quarter.
Partnering with streamers would also create a new content pipeline buybacks and an opportunity to offer exclusive programming and drive utilization of the network. This continued diversification of content.
And global box office would help open new opportunities for us that's we grow our theatre network.
We also continue to see a very strong reception from exhibitors and audiences around our state of the yard IMAX with laser technology.
We installed nearly 100 laser systems for the full year, including a record number of system installations in the fourth quarter. We also signed up clients and key strategic markets like India, Japan, China, Saudi Arabia and Indonesia.
Overall, we now have 1529 commercial theaters worldwide and wall and that well wall that footprint gives us unique global scale, we still see significant room for growth.
Turning to slide nine we recently updated the total addressable market for our network that exercise to determine the growth potential for IMAX territory by territory over a period of about three or five years in the future.
We do this analysis regularly as global markets evolve and grow creating new opportunities for the company. The analysis use a set of key metrics, including addressable audience theatrical box office and content mix across territories.
Including opening backlog for new locations, our networks stood at 1963 theaters at year end.
However, through our analysis, we now believe our network has the potential to grow to more than 3300 locations worldwide.
This year, we plan to aggressively target high growth emerging markets, where almost underpenetrated, such as Japan, the Middle East Southeast Asia, and South America, we already have solid momentum in that effort, having recently signed an expansion of our relationship.
What's the Nobilis a key partner in emerging markets that we'll see us expand our presence in markets, including Dubai and Peru.
Importantly building out our international footprint will put I, that's an excellent position to capitalize on the highly anticipated content pipeline for 2021 as seen on slide 10.
Major Hollywood films scheduled to be released in 2021 include four more Marvel titles, including the latest installments of Spider man and for the highly anticipated new back then so new entries from global blockbuster franchises, including.
Fast and furious 10 mission impossible and Jurassic World and of course, James Cameron's Avatar to the sequel, the highest grossing IMAX film of all time.
We believe that the vast majority of the projected top 10, well leases, but 2021 have the potential to top a billion dollars and global box office.
On the box office, we continue to create opportunities to expand our eco system and add new high quality revenue streams.
Moving to slide 12, we continue to grow our IMAX It has initiative.
Through which we will partner with streaming platforms.
Studios in high end device manufacturers to bring highlights content into the home.
The offering is now available on nascent streaming platform and the U.S. Europe, China, and Japan, we a premium partners across major in home device categories from TV to speakers receivers, enabling consumers to create a complete home theater experience.
That's through line.
Overall, IMAX and has today is available and 14 countries globally across 3 million devices at our content portfolio continues to grow.
For instance, labs Euro Lisa Spiderman far from home IMAX and have made up the first Marvel title ever to be available and I. That's exclusive excludes about spans the aspect ratio for the home.
As we capitalize on the into home opportunities created by has gone well also walk in to capitalize on the out of home opportunity created by skyrocketing experience economy.
Hi matches, among the broadest out of home distribution platforms and the world.
We believe this is an attractive opportunity as consumers led by millennials increasingly value and choose to spend but out of home experiences over material goods.
Market researcher from Euro monitor estimate see experience economy will grow to eight trillion dollars by 2030.
We are increasingly using our platform, which boasts more than a half a million suits above 81 countries and territories worldwide to explore unique experiences from E sports to excludes a music events and beyond that leverage our scale technology. That's was the straight through our brand.
I don't relationships with creators.
In conclusion.
Hi, that's delivered very strong result in 2019, and our continued ability to deliver as a result of the unique privileged position we built in the ecosystem.
Consumers seek out the IMAX experience for our merchant blockbuster experiences.
Studios value either as a mark of a must see film that a powerful partner and marketing and driving box office for their biggest releases.
The world's best filmmakers and now creators more broadly are increasingly using our end to end technology to bring their creativity to life.
Exhibitors relying on theatres to provide a premium experience that tries ticket pricing volume and differentiation and finally streaming services offer strong new opportunities for us to bring new event content to our theaters and bring the IMAX experience a home entertainment.
With the global scale of our network. We believe that we are well position to capitalize on the change at hand, and the entertainment industry and we're confident in our ability over the long term to continue to drive our overall financial performance with that I'll turn the call over to Patrick.
Thanks, Rich and good afternoon, everyone.
On the same call a year ago I, just got three things that matter and so from a quality than the.
Gross margins and returns.
During 2019, Onyx continued to produce improving results across each of these metrics.
Let's start with growth.
2019 goes off the progress we achieved in 2018.
Total revenue increased 6% and box office increased by 7% delivering on the initial guidance provided early last year.
Next merger.
As many of you know our adjusted EBITDA margin, we peaked in 2015 at 40.5%.
More recently, we delivered adjusted EBITDA margin expansion in 2017 and again in 2018.
For 2019, we guided to jump.
In line 2015, and in fact, we surpassed that level at a new peak of 41.7%.
Finally returns.
We like to look at return before the impact of minority interest with the public shareholders in China business.
This allows us to returns of the whole enterprise, we are managing regardless of ownership structure.
Once again 2018 with the inflection point for our return profile.
Topline group margins expanded and we controlled expenses.
Continued our disciplined approach to capital allocation 2019, as evidenced by our consolidated dominated ROI, the 10.3% inline with our guidance.
Overall, notwithstanding the current situation in China, our long term growth margin and return metrics are solidly on positive trend line.
Turning to our financial results total revenue in fourth quarter was 124 million.
40% versus last year.
Resulting in 396 million year and increased 6%.
Moving to our main business segment for 2019, we saw the network doesn't deliver it 4% increase gross profit off would be 7% increase in revenue.
Gross margin pressure with generally due to the increase contractual marketing expenses.
Her during the second quarter.
With Peter business delivered gross profit was up slightly versus 2018.
Important to note that the first quarter of 2018.
Unusually high inflation margin in 2019 reflects the early food cost profile of our new laser product.
Importantly, we thought sequential gross margin improvement or if you don't theater system installed every year for brown.
Ending with the fourth quarter margin of 53% and our tool for your business margin of 51.2% was up 410 basis points year over year.
Moving on to operating expenses, which we define and Sq night, plus R&D less stock compensation.
The 100, a need for the year down 3% versus last year.
Better than our guidance, which called for flat out there.
Fact, 2019 marks the fourth consecutive year of Opex in this range.
The lowest levels in 2015 <unk>.
This is particularly impressive when you consider that our commercial network has increased more than 60% over that same period.
Please note that once looks like enough to unite <unk> third quarter 2019 to Q4 was primarily due to the time youve marketing expenses, but should later in the year the growth executive transition costs.
Net income for the quarter was 18.2 million or 29 cents per share well adjusted net income was 21.5 million were 35 cents per share.
26 cents last year.
An increase of 35%.
Year net income was 46.9 million or 76 cents per share well adjusted net income was 64.8 million one dollar and five cents per share.
15% versus last year.
Adjusted EBITDA for the quarter was 47 million up 29% versus last year bruising adjusted EBITDA margins of 41.7%.
440 basis points versus last year.
This resulted in full year 2019 adjust if not 149 million.
12% year over year.
Adjusted EBITDA margin of 41.7% as I previously mentioned.
As Chris mentioned on Friday, you can do the benefit global diversification last year.
Large in year over year games rest of World Greater China drove our 7% increasing gross box office.
Turning to our theater signings activity our sales team delivered 143 total planning for the full year of which 104 new theaters.
Yeah, So 58, new IMAX systems in the fourth quarter and 90 95 systems overall.
For the year installed 186 system of which 129, new system and 57 more for upgrades.
It's worth noting it's worth highlighting that our rest of world network grew by 9% year over year.
417, commercial Multiplexes and operation.
No larger than our domestic network.
Our backlog is also shifted some 60% sale and hybrid up from 52% last year as we continue to identify the most appropriate business model to deploy around the world on a theater by theater basis.
We ended 2019, having generated 24 million of free cash flow calculated net cash from operating activities less cash used in investing activity.
As a reminder in 2019.
Approximately 22 million on share repurchases, primarily of our IMAX China stock.
As a result or ownership next China is not the 9.7% compared to 68.2% year ago.
Also strategically invested now again, leading movie ticket platform.
In China in 2019 capital expenditures for some work when pretty million.
From 80.1 million in 2018.
Our lowest level six years.
Looking ahead to 2020, obviously the situation in China makes it difficult to provide a box office outlook.
Can't say, but outside of China or quarter to Big box office results are generally in line or internal plan.
Well the near term impact to imax's material, partially offsetting the impact is our network growth haagen trend and the rest of the world.
Turning installations once again given situation China is difficult to provide projected range.
That said, we are pleased with our momentum new and emerging markets and expect our network outside of greater China to grow by mid to high single digit.
Which is a slightly higher growth rates in 2019.
For the first quarter, specifically, we expect in total and pollution broken down as follows.
New Ensco five new installations presale in two JV.
And find JV upgrades to IMAX laser.
The total tentwo installation fiber already complete.
That's do not related stock based compensation.
Thank you around 22 million for the year.
Also anticipate our full year effective tax rate approximately in line 2019.
Close we're pleased with the progress momentum witnessed over the past couple of years.
Our strategy and execution in 2019 position us to capitalize on the IMAX and for 2020 slate and what looks to be an extraordinary contemplate 2021.
With that I'll turn the call over to rich for his concluding thoughts before we open up the call to keep an eye.
Well, let's just open up to questions.
Thank you ladies and gentlemen, if you have a question. Please press star one on your telephone keypad, if you're using a speakerphone. Please make sure. Your mute button is turned off to a lot of your signal to reach our equipment.
Well take our first question today from Eric Handler of MKM partners.
Thank you very much hope you can hear me, okay I'm in airports I apologize access noise, but a rich two questions for you first.
Yes, it's great to see you guys updating your addressable market.
You said it was three to five years out so I'm just curious what was the prior baseline that reusing for.
North America, China and rest of World just so we're compare because I believe your prior.
Guidance was for 10 years, so like I said is three to five no no no.
It's always it's always three to five years, Eric the reason is because they have copies change. This so it's the same basis as the last one was prepared a while you asked your second question.
If that's the number what was it was about.
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Yeah.
It's about 25th Street perfect. Thank you.
Great and then secondly, with IMAX enhanced publishing you have some interesting data points to share here is there have really some inflection point with this new business that maybe we start seeing revenue ramping a little bit more.
Aggressively in the coming quarters or is there still a very nascent don't put a lot in there and that line item business.
I would say up to this year, it's still a nascent don't put a lot in more wide item by Dave says.
But we've been making some strategic progress and again you know if ethylene follow through on these things, we'll let you know, but I think we are close to a tipping point, where it could be a.
A business that contributes in the years going forward that mob this year.
Okay. Thank you very much.
Next up is Alexia Quadrani JP Morgan.
Hi, Thank you very much kicking first on that kind of virus has impacted do you think the movie going sort of behavior experience or just traffic in general in Asia ex China sort of looking at your other markets outside of China within Asia.
Then I sort of a second question sort of staying on this topic I guess, how should we think about that piracy rent or maybe you know more minimal interesting going to a Hollywood town that has been delayed release in China, It's sort of later in the year well after it was already really trending.
So your first question Alexia, we haven't really seen an impact outside of China and in fact, as we said in our scripted comments on the rest of world and the domestic market separately or very close to what our budget wasn't.
The beginning of the year, so there hasn't been really a noticeable impact.
The second thing would be the.
The piracy risk notes its hard to gauge as.
As we looked at after Sars happen in Hong Kong. The first half of a year was extremely weak that the second half of the year, there's really very strong and that's really the only measurement. We have to go by I think you are.
So your point as well taken that impact some films clearly wont be able to be day in day, because they're not being released right now, but I think you're condensing a year's worth the movies into however, many months. It is that it's open. So I think you'll have a lot more Hollywood movies in a shorter period.
Would've been but for this so when you blend it all out.
It may affect some movies, but I would expect there would probably be shorter play times because there's so many more movies out there in that period of time, but it's premature to quantify it.
Hi, Thank you very much.
Our next question will come from Eric Wold B. Riley.
Thank you good afternoon, but two questions about maggots I guess first off rich on the increase in Tam.
Yeah from 20 to do a degree of 300, plus maybe kind of dive is that a little bit deeper and kind of you know reports, so kind of where there was more goods.
Or screen Rptwod came from what would you have that small markets that.
Pretty good couldn't support a screen, but now can because it would these kinds of entry we're going to market now in developing countries. Just overall movie going demand, maybe where the demand came from.
Yeah, I think but they are the main markets area car, Oh, the middle East and specifically, Saudi which obviously didn't exist before last year, some market I'm Southeast Asia.
India.
Japan, maybe a little bit South America.
Again, just to remind you of the methodology, we do a bottoms up approach to every couple years had its done in combination with our field managers as well as a central SAP sales staff and we look at what's happened to the number theaters in that country. The a address.
The market ticket prices, how weve zone, it out things like that but that's kind of our best guess.
Okay, and then Patrick on on the.
Just thinking about China, and kind of delayed movies with the titles that market yeah.
I guess I guess both for.
China only local language titles as well as you maybe Hollywood movies that market how is the timing.
Or delayed release and or even cancellations at its peak if there are impact.
DMR costs recognition.
Well for the local language titles.
We've done the work for the Hollywood titles, and so we've already had those expenditures that we want actually amortize that until they get relief until just pushed out until deeper into the year once that those good schedule.
And for Hollywood, it'll be probably without releasing around the world will continue to amortize those.
As they're really.
For some amortization deeper into the year once they get me from China.
Good thing if the question was somebody.
The canceled not not released theatrically.
Hi, good spending.
When you made mention hit or but we do.
Well.
It's something we're truly cancel them and we haven't gets been thinking on the DMR than it just didn't come out of our numbers.
Something gift cancel that we've already done to work on then once it becomes canceled we'd have to just run that you know, but keep in mind that the way. It works with the DMR work is done here.
I'm not trying to pays us for that and so as those things unfold there'd be an impact I'm trying to you know and small impact on the core piano as well.
That's helpful. Thank you guys.
Next we'll hear from Vasily Karasyov Cannoballs research.
Hello. Good afternoon. Thank you couple of questions. The first when it to Das could you talk a little more bought the drivers of the strength in the international ex China, a box office and went to main team.
Which was in dollar terms of thing because the largest drive of young the increase what you're seeing by territory in terms of PS safe because I think there was a concern that the as you expand a bit says, we'll we'll draw up and.
So wondering if you could give us some color on that and the second question I'll ask rather way.
It's a different figuring out a bit dealing with five Hollywood Studios major Hollywood Studios vendor with six.
Just just curious how how it changed that business acquisition of.
Faux by but it gives me Andrew.
So your first.
Question International ex China, I think it's driven by.
A lot of theater growth and high outperformance markets. So our Japan market, we've become much more penetrated and we have extremely successful theaters, there and well growing those fairly rapidly or the middle east would be another area I would identify.
Growing India is another market that's been growing well Europe. So I think I'll leave the expansion of our network, particularly in higher ticket price markets, Germany will be another one has really driven model that the said.
Second part was your T. assays I don't have that by reaching offhand, but I can't tell you that last year worldwide Imax's P. assays were up 2%.
Right and then the second question is five managers are directly.
We haven't really seen an impact from.
At present, we are well we have a wonderful relationship with this thing it ourselves Bob's has gotten integrate and we've always done over the past movies.
Staying on I don't really think there's been a change.
All right thinking.
Next we'll hear from my take either benchmark company.
Hey, rich Patrick there.
Got it thanks for taking my questions from coal that some of it too.
Yeah. It looks like one of US is having an impact on stock just curious.
Your thoughts on.
That will be more aggressive it could be done quarter and Paul.
We have a buyback authorization in place. Some we've said before that we'll be opportunistic and we will be and yeah that that's about all I can say right now.
Good.
Are you can then I guess encouraging from China in terms of.
I think the news content opening up again, if it's going to be all at once will roll out or <unk>.
<unk> positive signs in the region.
I mean, it's very hard to predict when the theater as.
Well open it up because you know that a lot of issuance is not just on the slowdown of the infection, but there's also getting infrastructure Bakken what government policies are and you know certainly we're not smart enough to predict that there have been off over the last couple days you know.
Some small positive sides, such a broad number of cures.
Exceeded the number of new infections, and things like that and I think if you focus on some of the tier one cities you know clearly it hasn't been close to as Bill in itself has been well Han and surrounding province.
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The its the closing.
Dan.
Are there to you.
Concern that made you kinda displayed migrate to streaming so lost in Russia.
I'm, sorry, I got gobbled up to get stream from the Coke.
Yeah I got it.
Not really I mean, there was one film that went just streaming on during Chinese new year, but that was a unique situation, where a particular service had a relationship with a director and the movie had well some financial issues, where it needed to occur during a period of time and out has.
Not been very well is seen.
By the Chinese exhibition or studio all community. So I don't think we'll see that.
Okay. Thank you very much Buffalo.
Once again, everyone Sarwan on your telephone keypad to ask a question. We'll go next to Jim Goss Barrington Research.
Thanks, Yeah of a number of motivations in terms of various markets in which you can expand your franchise.
That you've been Outland does this ER situation in China make you veer toward some of these other potential growth markets just to sort of balance out the risk or or does the bottoms up approach and the growth in China, you expect will return.
You know keep your efforts in that area has it has been.
Hey, Jim in China, We created a billion dollar business in terms of value and its you know there's been a black Swan event, that's happened well I don't regret doing that and we'll be doing business in China for very long time, I don't think of Black Swan event is.
Going to change that and you know we all its floral all opportunities, though our globally, but despite the obvious short term setback. We remain long term is excited about China as always that we've ever bad.
Okay fair enough and to the extent that.
You know this silver lining motive develop them that.
Some of these movies that were going to refocus on Chinese new year kind of spread over the rest of year I'm thinking back to the greater usage of the entire calendar domestically.
For Hollywood do you think you might want to push that issue more in future years, just to take advantage of more of a calendar then you have them.
And how much can you influence FSS.
So we certainly in general can endpoints release dates, but I think the Hollywood studios have a fairly wide in the sand about not sharing screens that I don't think we have the ability to influence that policy in China, even before this they've been open.
To screen sharing in multiple titles and it's a matter of fact, we were going to play multiple titles during the New York period. So I don't think this this data that has affected that one way or the other.
Okay last question.
You noted the new growth levers stream partnerships.
Is there any conflict the with the exhibitors stance in terms of windows issues that might require some adjustments or negotiations or do you think a that can be finished.
I don't take its going to be an air show.
Well, we played a short form piece called Adam a job cuts or film show a shot by Paul Thomas Anderson and.
But what it was released by Netflix on very close to one it was released and the exhibitors didnt have a an issue with that I think they're issue is though is the up when dealing around traditional movie. So I don't think that'll be initiative.
Alright, thanks very much appreciate it.
And everyone. At this time there are no further questions I'd like to hand things back to Mr. calphalon for any additional closing remark.
Yeah. Thank you very much operator, thank you everyone for joining our call on obviously 2019 was a very strong year for us as Patrick said in his script, we outline for you all on what we hope to accomplish financially and Matt virtually all of those goals.
During the year, we expect it to use that momentum into this year, but unfortunately on the as the sad events in China.
On the krona virus has made it a tough start but what we look at the film slate. This year. When you look at the film slate next year only look at the growth will deliver and our expanded our view of the markets. We can penetrate well once we get passed this period, we think will resilient the times.
Things went demonstrating in 2019, so thank you all for joining our call.
Ladies and gentlemen that does conclude today's conference I would like to thank you all for your participation you may now disconnect.
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