Q2 2024 IMAX Corp Earnings Call

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Operator: Good day, and thank you for standing by. Welcome to the second quarter 2024 Imax Corporation earnings. At this time, all participants are on a listen-only basis. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you'll need to press star 1 1 on your.

Unknown Attendee: Good day, and thank you for standing by.

Good day, and thank you for standing by.

Operator: You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 118. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Jennifer Horsley, Head of Investor Relations for Imax. Good morning, and thank you for joining us for IMAX's second quarter 2024 earnings conference. The call today to review the financial results is Richard Gelfond.

Unknown Attendee: Welcome to the second quarter, 2024, Imax Corp, earning's conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there'll be a question and answer session. To ask a question during the session, you'll need to press star 1-1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1-1 again. Please be advised that today's conference is being recorded.

Speaker Change: Through the second quarter 2020 for IMAX Corporation earnings Conference call.

Speaker Change: At this time all participants are in a listen only mode.

Speaker Change: After the Speakers' presentation, there'll be a question and answer session.

To ask a question during the session you will need to press star one one on your telephone.

Speaker Change: You will then hear an automated message advising your hand is raised.

To withdraw your question. Please press star one again.

Speaker Change: Please be advised that today's conference is being recorded.

Jennifer Horsley: Executive Officer, and Natasha Fernandes, our Chief Financial Officer. Rob Lister, our Chief Legal Officer, is also joining us today. Today's conference call is being webcast in its entirety on our website. A replay of the webcast will be made available shortly after the call. In addition, the full text of our earnings press release and the slide presentation has been posted on the investor relations section of our site. Our historical Excel model is posted to the website as well.

Jennifer Horsley: I would now like to hand the conference over to your speaker today, Jennifer Horsley, Head of Investor Relations for Imax. Please go ahead.

Jennifer Horsley: I would now like to hand, the conference over to your Speaker today, Jennifer Horsley head of Investor Relations for IMAX. Please go ahead.

Jennifer Horsley: Good morning, and thank you for joining us for Imax's second quarter 2024 earnings conference call. On the call today to review the financial results or risk-alformed Chief Executive Officer in Natasha Fernandes, our Chief Financial Officer. Rob Lister, Chief Legal Officer, is also joining us today. Today's conference call is being webcast in its entirety on our website. A replay of the webcast will be made available shortly after the call. In addition, the full text of Ernning's press release and the slide presentation have been posted on the Investor Relations section of our site. Our historical Excel model is posted to the website as well.

Richard Lewis Gelfond: Good morning, and thank you for joining us for IMAX in second quarter 2024 earnings conference call on the call today to review the financial results are rich Calpine.

Speaker Change: Executive Officer, and Natasha Fernandez, our Chief Financial Officer, Rob Lister Chief Legal Officer is also joining us today.

Speaker Change: Today's conference call is being webcast in its entirety on our website a replay of the webcast will be made available shortly after the call. In addition, the full text of our earnings press release and the slide presentation have been posted on the Investor Relations section of our site.

Speaker Change: Our historical Excel model is posted to the website as well.

Jennifer Horsley: I would like to remind you of the following information regarding forward-looking statements. Today's call, as well as the accompanying slide deck, may include statements that are forward-looking and that pertain to future results or outcomes. These forward-looking statements are subject to risks and uncertainties that could cause our actual future results to not occur or to occur unforeseen. Please refer to our SEC filings for a more detailed discussion of some of the factors that could affect our future results and outcomes.

Jennifer Horsley: I would like to remind you of the following information regarding forward-looking statements. Today's call, as well as the accompanying slide deck, may include statements that are forward-looking and that pertain to future results or outcomes. These forward-looking statements are subject to risks and uncertainties that could cause our actual future results to not occur or occurrences to differ. Please refer to our SEC filings for more detailed discussions of some of the factors that could affect our future results and outcomes. Any forward-looking statements that we make on this call are based on assumptions as of today, and we undertake no obligation to update these statements as a result of new information, future events, or otherwise.

Speaker Change: To remind you of the following information regarding forward looking statements.

Speaker Change: Today's call as well as the accompanying slide deck may include statements that are forward looking and that pertain to future results or outcomes.

Speaker Change: These forward looking statements are subject to risks and uncertainties that could cause our actual future results did not occur or occurrences to differ.

Speaker Change: Please refer to our SEC filings for a more detailed discussion of some of the factors that could affect our future results and outcomes.

Jennifer Horsley: Any forward-looking statements that we make on this call are based on assumptions as of today, and we undertake no obligation to update these statements as a result of new information, future events, or otherwise. During today's call, references may be made to certain non-GAAP financial measures. Discussion of Management's Use of These Measures and the Definition of These Measures, as well as the Reconciliation to Non-GAAP Financial Measures, are contained in this morning's press release and our earnings materials, which are available on the Investor Relations page on our website at imax.com. With that said, let me now turn the call over to Mr. Richard Gelfond.

Speaker Change: Any forward looking statements that we make on this call are based on assumptions as of today and we undertake no obligation to update these statements as a result of new information future events or otherwise.

Jennifer Horsley: During today's call, references may be made to certain non-GAAP financial measures. Discussion of management's use of these measures and the definition of these measures, as well as the reconciliation to non-GAAP financial measures, are contained in this morning's press release in our earnings materials. We are available on the Investor Relations page or website at imax.com.

Speaker Change: During today's call references may be made to certain non-GAAP financial measures discussion of management's use of these measures and the definition of these measures as well as the reconciliation to non-GAAP financial measures are contained in this morning's press release and our earnings materials, which are available on the Investor Relations page of our website at <unk>.

Richard Gelfond: With that, let me now turn the call over to Mr. Richard Gelfond. Rich. Thanks, Jennifer, and thanks everyone for joining us today. Imax powers awe-inspiring experiences. We are a go-to-intent technology platform for the world's greatest filmmakers and creators. We deliver the biggest Hollywood and international blockbusters, original documentaries, and immersive events at scale worldwide, across 90 countries and territories. These attributes have been on full display.

Speaker Change: <unk> dot com with that let me now turn the call over to Mr. Richard Galford Brit.

Richard Lewis Gelfond: Thanks, Jennifer, and thanks, everyone, for joining us today. Imax powers awe-inspiring experiences. We are a go-to end-to-end technology platform for the world's greatest filmmakers and creators. We deliver the biggest Hollywood and international blockbusters, original documentaries, and immersive events at scale worldwide across 90 countries and territories. These attributes have been on full display. Imax delivered one of the best years in its history in 2023. And while last year's Hollywood strikes dealt the entire entertainment ecosystem a temporary setback, it was just that, temporary.

Speaker Change: Thanks, Jennifer and thanks.

Speaker Change: Thanks, everyone for joining us today IMAX powers all inspiring experiences. We are a go to end to end technology platform for the world's greatest filmmakers and creators we delivered the biggest Hollywood and international blockbusters original documentaries.

Speaker Change: Immersive events at scale worldwide across 90 countries and territories. These attributes have been on full display IMAX delivered one of the best years in its history in 2023.

Richard Gelfond: Imax delivered one of the best years in its history in 2023. And while last year's Hollywood strikes, Delphi and Tire Entertainment ecosystem, a temporary setback, it was just that temporary. Now, with the strikes and the lingering effects of the pandemic firmly behind us, we are in the excellent position to fully realize the benefits of our strong asset-light business model. We're on a tear and network growth with both system sales, activity, and installations, and the slave through 25 and 26 looks as good as we've ever seen. As we predicted, we began to see the pivot back to progress during the second quarter.

Speaker Change: And while last year's Hollywood strikes dealt the entire entertainment ecosystem, a temporary setback. It was just that temporary now with the strikes and the lingering effects of the pandemic firmly behind US we are in the excellent position to fully realize the better.

Richard Lewis Gelfond: Now, with the strikes and the lingering effects of the pandemic firmly behind us, we are in an excellent position to fully realize the benefits of our strong, asset-light business model. We're on a tear in network growth with both system sales, activity, and installations, and the slate through 25 and 26 looks as good as we've ever seen. As we predicted, we began to see this pivot back to progress during the second quarter. The record performance of Inside Out 2 led a succession of recent box office hits, demonstrating that supply, not demand, depressed the global grosses of the early summer. The third quarter is off to a strong start.

Speaker Change: <unk> of our strong asset light business model.

Speaker Change: We're on a tear in network growth with both system sales activity and it's still installations and the slate through 'twenty five 'twenty six looks as good as we've ever seen.

Speaker Change: As we predicted we began to see this pivot back to progress during the second quarter. The record performance of inside out to let a succession of recent box office hits, demonstrating that supply not demand depressed the global grosses of the early summer.

Richard Gelfond: The record performance of Inside Out 2 let us succession of recent box office hits demonstrating that supply not demand to press the global grosses of the early summer. The third quarter is off to a strong start. Twisters easily be expectations and local Chinese title successor, Open Big, leading Imax to a $21 million global weekend. Deadpool and Wolverine is set to continue the trend and deliver a massive opening this weekend. Imax is commanding a healthy percentage of pre-sales in line with what we saw for the big debut of Dr. Strange 2, which opened to $33 million in Imax's global network.

Speaker Change: The third quarter is off to a strong start twisters easily be expectations at local Chinese title successor open bid, leading IMAX to a $21 million global weekend.

Richard Lewis Gelfond: Twisters easily beat expectations at local Chinese title successor OpenBig, leading Imax to a $21 million global weekend. Deadpool and Wolverine are set to continue the trend and deliver a massive opening this weekend. Imax is commanding a healthy percentage of pre-sales in line with what we saw for the big debut of Doctor Strange 2, which opened to $33 million on Imax's global network. And the fourth quarter looks strong with buzz building for Wicked, Gladiator 2, and Joker 2, which was filmed with our cameras and will receive a select run in Imax theaters. Furthermore, we continue to strengthen our strategic position. We locked a landmark deal in China with our biggest exhibition partner worldwide, WandaFilm.

Speaker Change: Pool, and Wolverine is set to continue the trend and deliver a massive opening this weekend.

Speaker Change: Max is commanding a healthy percentage of pre sales in line with what we saw for the big debut of Doctor Strange to which opened to $33 million in IMAX as global network and the fourth quarter. It looks strong with buzz building for Wicked Gladiator too and Joker too.

Richard Gelfond: And the fourth quarter looks strong with buzz building for Wicked, Gladiator 2, and Joker 2, which was filmed with our cameras and will receive a select run in IMAX film. Furthermore, we continue to strengthen a strategic position. We locked a landmark deal in China with our biggest exhibition partner, Worldwide, Wanda Film. A record of at least 14 releases in 25 are being filmed with Imax cameras, and we successfully launched our original documentary, The Blue Angels, further diversifying our content portfolio. Several signs in our financial and operating performance demonstrate our growing momentum. Our second quarter financial performance significantly beat consensus estimates across most key financial metrics.

Speaker Change: <unk>, which was filmed with our cameras.

Speaker Change: C a select run an IMAX film.

Speaker Change: Furthermore, we continue to strengthen our strategic position, we locked a landmark deal in China with our biggest exhibition partner worldwide Wanda film.

Richard Lewis Gelfond: A record of at least 14 releases, and 25 are being filmed with Imax cameras. And we successfully launched our original documentary, The Blue Angels, further diversifying our content portfolio. Several signs in our financial and operating performance demonstrate our growing momentum. For example, our second quarter financial performance significantly beat consensus estimates across most key financial metrics.

Speaker Change: Our record of at least 14 releases and 25 are being filmed with IMAX cameras, and we successfully launched our original documentary the Blue Angels further diversifying our content portfolio.

Speaker Change: Several signs and our financial and operating performance demonstrate our growing momentum.

Speaker Change: Our second quarter financial performance significantly beat consensus estimates across most key financial metrics, we expect to achieve year over year growth in installations on this call raising the floor of our guidance from 120 installs to 130.

Richard Gelfond: We expect to achieve year-over-year growth in installations on this call, raising the floor of our guidance from 120 installs to 130 new or upgraded systems this year, with the high end remaining at 150. Through the second quarter, we've installed 39 Imax systems compared to 29 over the same period in 2023. We signed agreements for 99 new or upgraded Imax systems worldwide year-to-date, compared to 84 over the same period of 23. And cash from operations climbed to $35 million in the quarter, up significantly year-over-year from $5 million last year. Consistently, Imax has navigated periods of disruption to deliver strong results.

Richard Lewis Gelfond: We expect to achieve year-over-year growth in installations on this call, raising the floor of our guidance from 120 installs to 130 new or upgraded systems this year, with the high-end remaining at 150. Through the second quarter, we've installed 39 IMAX systems compared to 29 over the same period in 2023. We've signed agreements for 99 new or upgraded IMAX systems worldwide year-to-date compared to 84 over the same period last year. And cash from operations climbed to $35 million in the quarter, up significantly year-over-year from $5 million last year.

Speaker Change: New or upgraded systems this year with the high end remaining at 150 <unk>.

Speaker Change: Through the second quarter, we've installed 39, IMAX systems compared to 29 over the same period in 2023, we signed agreements for 99, new or upgraded IMAX systems worldwide year to date compared to 84 over the same period of 'twenty three.

Speaker Change: And cash from operations climbed to $35 million in the quarter up significantly year over year from $5 million last year.

Richard Lewis Gelfond: Consistently, IMAX has navigated periods of disruption to deliver strong results, yet we know it's not about what we've done; it's about where we're headed. And we believe IMAX is entering a new, very productive era with clear catalysts for growth over the next several years. This is a very promising moment for our business and our shareholders. Today, I'd like to offer updates on our global network and then our content slate. Then I'll hand it over to Natasha before we take questions.

Speaker Change: Consistently IMAX has navigated periods of disruption to deliver strong results yet we know it's not about what we've done it's about where we're headed.

Richard Gelfond: Yet we know it's not about what we've done; it's about where we're headed. And we believe Imax is entering a new, very productive era with clear catalysts for growth over the next several years. This is a very promising moment for our business and our shareholders.

Speaker Change: And we believe IMAX is that great a new very productive era with clear catalysts for growth over the next several years.

Speaker Change: This is a very promising moment for our business and our shareholders today I'd like to offer updates on.

Richard Gelfond: Today I'd like to offer updates on our global network and then our content slate. Then I'll hand it over to Natasha before we take questions. On the global network, first this positive pivot across our business extends to our global network. We're both sales activity and installations accelerated during the second quarter. I'm at signed agreements with nine different exhibition partners, including four new clients covering priority markets, including India, France, Southeast Asia, and more recently Saudi Arabia, and ongoing conversations with existing and new exhibition partners around the world are robust. Our deal with Wanda Film, spanning up to 123 upgraded, new, and renewables.

Speaker Change: Our global network.

Speaker Change: And then our content slate, then I'll hand, it over to Natasha before we take questions.

Richard Lewis Gelfond: On the global network, first, this positive pivot across our business extends to our global network, where both sales activity and installations accelerated during the second quarter. Imax signed agreements with nine different exhibition partners, including four new clients, covering priority markets, including India, France, Southeast Asia, and more recently Saudi Arabia, and ongoing conversations with existing and new exhibition partners around the world are robust. Our deal with WandaFilm, spanning up to 123 upgraded, new, and renewed Imax systems, holds significant strategic promise, even beyond the hundreds of millions at the box office that these locations stand to generate over the next decade. This is our first agreement with WANDA since Tencent-backed Rui Holdings acquired a controlling interest in the company last year and a strong vote of confidence by its new management team.

Speaker Change: On the global network first this positive pivot across our business extends to our global network, where both sales activity and installations accelerated during the second quarter.

Speaker Change: IMAX signed agreements with nine different exhibition partners, including four new clients covering priority markets, including India, France, Southeast Asia, and more recently, Saudi Arabia, and ongoing conversations with existing and new exhibition partners around the world.

Speaker Change: Our robust our deal with Wanda film spanning up to 123 upgraded new and renewed IMAX system.

Richard Gelfond: I'm at system holds significant strategic promise, even beyond the hundreds of millions at the box office that these locations stand to generate over the next decade. This is our first agreement with Wanda since 10 cent bat. Really Holdings acquired a controlling interest in the company last year and a strong vote of confidence by its new management team. Many of the upgraded systems are in tier one cities and among the top 40% of IMF China locations. The deal includes collaboration on the content side. We see powerful potential for delivering alternative content with Wanda Pictures and 10 Cent, especially when you factor in the interests of ruling and 10 Cent.

Speaker Change: Holds significant strategic promise even beyond the hundreds of millions at the box office that these locations stand to generate over the next decade.

Speaker Change: This is our first agreement with Wanda since Tencent back really holdings acquired a controlling interest in the company last year and a strong vote of confidence by its new management team.

Richard Lewis Gelfond: Many of the upgraded systems are in Tier 1 cities and among the top 40% of IMAX China locations. The deal includes collaboration on the content side. We see powerful potential for delivering alternative content with Wanda Pictures and Tencent, especially when you factor in the interests of Rui and Tencent, the latter of which owns a significant stake in Epic Games and is the exclusive streaming partner for the NBA in China.

Speaker Change: Any of the upgraded systems are in tier one cities and among the top 40% of IMAX China locations.

Speaker Change: The deal includes collaboration on the content side, we see powerful potential for delivering alternative content with Wanda pictures and Tencent, especially when you factor in the interest of really and Tencent, the latter of which owns a significant stake and epic games.

Richard Lewis Gelfond: The latter of which owns a significant stake in Epic Games and is the exclusive streaming partner for the NBA in China. We're very encouraged by the upcoming content slate in China, and we believe the market is on the cost of a rebound. In the past two weeks, local hits have reignited the box office, including Successor, our biggest local opening in the market since Chinese New Year. We have two local film Primax releases this summer, Decoded and The Travels, and early indications are that next year's Chinese New Year holiday will offer an exceptionally strong slate, including a local film Primax title.

Speaker Change: And as the exclusive streaming partner for the NBA in China, we're very encouraged by the upcoming content slate in China, and we believe the market is on the cusp of a rebound.

Richard Lewis Gelfond: We're very encouraged by the upcoming content slate in China, and we believe the market is on the cusp of a rebound. In the past two weeks, local hits have reignited the box office, including Successor, our biggest local opening in the market since Chinese New Year. We have two local films for IMAX releases this summer, Decoded and The Travelers. And early indications are that next year's Chinese New Year holiday will offer an exceptionally strong slate, including a local film for IMAX title.

Speaker Change: In the past two weeks local hits have reignited the box office, including successor, our biggest slope local opening in the market since Chinese new year, we have two local film for IMAX releases. This summer D coated and the travelers and early indications are that.

Speaker Change: Next year is Chinese new year holiday offer an exceptionally strong slate, including our local film for IMAX title.

Richard Lewis Gelfond: Additionally, more Hollywood films are securing Chinese release dates, even R-rated fare like Deadpool and Wolverine. And the region remains a fertile testing ground for new events, experiences, and technologies. Last month we partnered with the NBA to stream the NBA Finals live to IMF locations in Hong Kong and Taiwan. The events sold out in hours, and 73% of attendees were first time IMF consumers, which is obviously significant for the way we see the network growing. We can see a role for IMF as an immersive event platform for North American sports leagues looking to grow global franchise.

Richard Lewis Gelfond: Additionally, more Hollywood films are securing Chinese release dates, even edgier rated fare like Deadpool and Wolverine. And the region remains a fertile testing ground for new events, experiences, and technology. Last month, we partnered with the NBA to stream the NBA Finals live to IMAX locations in Hong Kong and Taiwan.

Speaker Change: Additionally, more Hollywood films are securing Chinese release states, even Edgier R rated fair like Deadpool and Wolverine.

Speaker Change: And the region remains a fertile testing ground for new events experiences and technologies.

Speaker Change: Last month, we partnered with the NBA to stream the NBA finals live to IMAX locations in Hong Kong and Taiwan the event sold out.

Richard Lewis Gelfond: The event sold out in hours, and 73% of attendees were first-time IMAX consumers, which is obviously significant for the way we see the network growing. We can see a role for IMAX as an immersive event platform for North American sports leagues looking to grow their global franchise. We also announced that Imax Enhanced will be featured on the world's first Android-based spatial computer, which debuts in China in October. It's similar to what Apple did with Vision Pro in the U.S.

Speaker Change: Hours and 73% of attendees.

Speaker Change: First time, IMAX consumers, which is obviously significant for the way we see the network growing we can see a role for IMAX as an immersive event platform for North America and sports leagues looking to grow global franchises, we also announced that IMAX enhanced will be fee.

Richard Gelfond: We also announce that Imax Enhanced will be featured on the world's first Android-based spatial computer, which debuts in China and in October. It's similar to what Apple did with Vision Pro in the US. We have more film for IMAX titles than ever in 2025. Every IMAX release from May through September is filmed with IMAX cameras, including Mission Impossible 8, Marvel's Fantastic Four, and Thunderbolts. Apple's F1 starring Brad Pitt from Top Gun: Maverick, director Joe Kaczynski, and producer Jerry Bruckheimer, and Superman: Legacy. Our film for IMAX program has become a key driver of sales for IMAX systems worldwide.

Speaker Change: Richard on the world's first Android base spatial computer, which debuts in China and in October it's similar to what Apple did with vision pro in the U S.

Richard Lewis Gelfond: The positive pivot in our business is also very evident in the content pipeline, with the film slate set to come roaring back over the next several years. We have more films for IMAX titles than ever in 2025. Every IMAX release from May through September is filmed with IMAX cameras, including Mission Impossible 8, Marvel's Fantastic Four, and Thunderbolt. Apple's F1, starring Brad Pitt from Top Gun Maverick, director Joe Kaczynski, and producer Jerry Bruckheimer, and Superman Legacy.

Speaker Change: The positive pivot in our business is also very evident in our content pipeline with the film slate set to come Roaring back over the next several years, we have more film for IMAX titles than ever in 2025.

Speaker Change: IMAX release from May through September is filmed with IMAX cameras, including mission impossible eight Marvel's fantastic four and Thunderbolt.

Speaker Change: Apple's F. One starring Brad Pitt from top gun Maverick Director, Joe presents ski and producer Jerry Bruckheimer.

Speaker Change: Superman legacy our film for IMAX program has become a key driver of sales for IMAX systems worldwide film for IMAX releases like top gun Maverick Oppenheimer and due in part to prove that films shot with our cameras deserve to be.

Richard Lewis Gelfond: Our Film for IMAX program has become a key driver of sales for IMAX systems worldwide. Film for IMAX releases like Top Gun Maverick, Oppenheimer, and Dune Part II prove that films shot with our cameras deserve to be experienced on IMAX screens. Exhibitors value that and the premium ticket prices and the incremental box office that IMAX delivers. Our slate is almost fully committed for the entire year in 2025. 2025 ends with Avatar 3, and then 2026 kicks off with the carryover box office in January, and it also includes installments of Avengers, Star Wars, The Batman, Super Mario Bros., and Toy Story.

Richard Gelfond: Film for IMAX releases like Top Gun: Maverick, Oppenheimer, and Dune Part II proved that films shot with our cameras deserve to be experienced on IMAX screens. Exhibitors value that, and the premium ticket prices and the incremental box office that Imax delivers. Our slate is almost fully committed for the entire year in 2025. 2025 ends with Avatar 3, and then 2026 kicks off with the carry-over box office in January, and also includes installments of Avengers, Star Wars, The Batman, Super Mario Brothers, and Toy Story. Alongside our expanding portfolio of local language documentaries and events and experiences, we continue to make progress in opening our content aperture to deliver a greater diversity of experiences for our audiences and drive capacity utilization for our global network.

Speaker Change: <unk> on IMAX screens exhibitors value that and the premium ticket prices and the incremental box office that IMAX delivers our slate is almost fully committed for the entire year in 2025.

Speaker Change: 2025, and with Avatar, three and then 2026 kicks off with the carryover of box office in January and it also includes installments of Avengers Star Wars, Batman Superman brothers.

Speaker Change: And toy story.

Richard Lewis Gelfond: Alongside our expanding portfolio of local language documentaries and events and experiences, we continue to make progress in opening our content aperture to deliver a greater diversity of experiences for our audiences and drive capacity utilization for our global network. The Blue Angels was an excellent first outing for our newly revamped original documentary strategy.

Speaker Change: Alongside our expanding portfolio of local language documentaries and events and experiences we continue to make progress in opening our content aperture to deliver a greater diversity of experiences for our audiences and drive capacity utilization for our global network.

Speaker Change: The Blue Angels with an excellent first outing for our newly revamped original documentary strategy.

Richard Lewis Gelfond: In its one week IMAX exclusive commercial release, the film scored the highest grossing theatrical documentary opening year to date. It has earned more than $2.2 million at the IMAX box office so far. We sold the streaming rights to Amazon Prime Video, where it was the most watched original film on Prime of any kind, documentary or feature, in its first weekend. And in its first full week, it was the third most watched original film on any streaming service, per Variety Insight, with 1.9 million views.

Speaker Change: It's one week IMAX exclusive commercial release, the films scored the highest grossing theatrical documentary opening year to date. It has earned more than $2 $2 million in IMAX box office. So far we sold the streaming rights to Amazon Prime video.

Speaker Change: <unk> was the most watched original film on prime of any kind of documentary or feature and its first weekend and in its first full week. It was the third most watched original film on any streaming service per variety insight with one 9 million views.

Richard Lewis Gelfond: And in its first full week, it was the third most watched original film on any streaming service per Variety Insight with 1.9 million views. In early 2025, it will release across IMAX's institutional network. The sale of the Amazon shows significant incremental revenue, and we will continue to reap the benefits across its institutional run, where it could conceivably play for years. We have several more original doc busters in our pipeline, including the upcoming Stormbound with producer Anna McKay, which will capture the most powerful hurricanes with IMAX cameras. We continue to build out a robust pipeline of music content as well, including an IMAX exclusive event from Donald Glover next year, an exclusive recent live event for the Beach Boys documentary ahead of its debut on Disney Plus, and Queen Rock, Montreal, which continued to deliver with a one-way bringback in Japan in May, and its Chinese debut at the Shanghai International Film Festival.

Richard Lewis Gelfond: In early 2025, it will be released across IMAX's institutional network. The sale to Amazon shows significant incremental revenue, and we will continue to reap the benefits across its institutional run, where it could conceivably play for years. We have several more original Dockbusters in our pipeline, including the upcoming Stormbound with producer Adam McKay, which will capture the most powerful hurricanes with Imax cameras.

Speaker Change: In early 2025, it will release across Imax's institutional network does.

Speaker Change: Sales Amazon drove significant incremental revenue and we will continue to reap the benefits across its institutional run where it could conceivably play for years.

Speaker Change: We have several more original dark clusters in our pipeline, including the upcoming Stormbound with producer, Adam Mckay, which will capture the most powerful hurricanes with IMAX cameras, we continue to build out a robust pipeline of music content as well, including.

Richard Lewis Gelfond: We continue to build out a robust pipeline of music content as well, including an IMAX exclusive event from Donald Glover next year, an exclusive recent live event for the Beach Boys documentary ahead of its debut on Disney+, and Queen Rock Montreal, which continued to deliver with a one-week return to Japan in May and its Chinese debut at the Shanghai International Film Festival. We're experimenting in additional verticals, from recurring programming, like our partnership with A24, to market activations, including our multi-city launch event for Prime Video's hit, Fallout.

Speaker Change: <unk> and IMAX.

Speaker Change: <unk> event from Donald Glover next year.

Richard Gelfond: We're experimenting in additional verticals from recurring programming like our partnership with A24 to market activations, including our multi-city launch event for Prime Video's hit Fallout. We held our biggest live event to date with an interactive fan event for Twisters across 180 locations, which helped IMAX drive strong, over 11% indexing on the film's domestic debut last week. And tomorrow will host a special presentation of the Paris 2024 Olympics Opening Ceremony with Comcast Universal NBC. To close, we believe we've reached a pivot point in the post-strike rebound, given surging demand for the Imax experience among filmmakers, studios, and audiences worldwide.

Richard Lewis Gelfond: We held our biggest live event to date with an interactive fan event for Twisters across 180 locations, which helped Imax drive strong over 11% indexing on the film's domestic debut last week. And tomorrow, we'll host a special presentation of the Paris 2024 Olympics Opening Ceremony with Comcast Universal NBC.

Richard Lewis Gelfond: To close, we believe we've reached a pivot point in the post-strike rebound. Given the surging demand for the Imax experience among filmmakers, studios, and audiences worldwide, we stand on the verge of an extremely exciting time for our business. Our global network, at less than 50% estimated penetration worldwide, is well-priced to grow and drive even more attractive scale economies for our business. The pipeline of blockbusters over the next several years is truly without precedent, representing incredible filmmakers and the most valuable IT in entertainment. And we'll further diversify our content portfolio with awe-inspiring experiences to drive greater utilization of the IMAX network. We look forward to continuing to deliver results in our business and for our shareholders. Thank you again.

Speaker Change: A pivot point in the post strike rebound given surging demand for the IMAX experience among filmmakers studios and audiences worldwide. We stand on the verge of an extremely exciting time for our business, our global network at less than 50% estimate.

Richard Gelfond: We stand on the verge of an extremely exciting time for our business. Our global network at less than 50% estimated penetration worldwide is well-prime to grow and drive even more attractive scale economies for our business. The pipeline of blockbusters over the next several years is truly without precedent, representing incredible filmmakers and the most valuable IT in entertainment. And we'll further diversify our content portfolio with awe-inspiring experiences to drive greater utilization of the IMAX network. We look forward to continuing to deliver results in our business and for our shareholders. Thank you again with that.

Speaker Change: <unk> penetration worldwide as well primed to grow and drive even more attractive scale economies for our business the pipeline of blockbusters over the next several years is truly without precedent representing incredible filmmakers and the most valuable IP and entertainment.

Speaker Change: And we will further diversify our content portfolio with all inspiring experiences to drive greater utilization of the IMAX network, we look forward to continuing to deliver results and our business and for our shareholders.

Richard Lewis Gelfond: With that, I'll turn it over to Natasha. Thanks, Rich. And good morning, everyone.

Natasha Fernandes: I'll turn it over to Natasha.

Speaker Change: Again with that I'll turn it over to Natasha.

Natasha Fernandes: Thanks, Rich, and good morning, everyone. As Rich stated, it is clear our business is at a positive inflection point. With global box office, system sales, and installations accelerating ahead of a strong Hollywood and local language slate. We are also very encouraged by the growing diversity of our business and revenue mix highlighted by contributions from new and emerging revenue streams not tethered to studio product. Event and experiences like Blue Angels, Queen Rock Montreal, and the Beach Boys further diversify our business while driving capacity utilization across our global network. Our streaming and consumer technology business also adds revenue diversity by bringing in high-margin licensing and software revenue.

Natasha Fernandes: As Rich stated, it is clear our business is at a positive inflection point, with global box office, system sales, and installations accelerating ahead of a strong Hollywood and local language slate. We are also very encouraged by the growing diversity of our business and revenue mix, highlighted by contributions from new and emerging revenue streams not tethered to studio products. Event and experiences like Blue Angels, Queen Rock Montreal, and the Beach Boys further diversify our business while driving capacity utilization across our global network.

Natasha Fernandes: Thanks, Rich and good morning, everyone. As rich stated it is clear our business is at a positive inflection point with global box office system sales and installations accelerating ahead of a strong Hollywood in local language slate.

Natasha Fernandes: We are also very encouraged by the growing diversity of our business and revenue mix highlighted by contributions from new and emerging revenue streams, not tethered to studio product.

Speaker Change: Advent and experiences like Blue Angels, clean rock, Montreal, and the Beach voice further diversify our business, while driving capacity utilization across our global network.

Natasha Fernandes: Our streaming and consumer technology business also adds revenue diversity by bringing in high-margin licensing and software revenue. Given the incrementality in our business model, we believe the momentum in our core business coupled with the growing contribution from emerging revenue streams creates a potent combination, one that will enable us to drive accelerating and sustainable growth. Turning now for a recap of our Q2 results, where we exceeded consensus expectations across most metrics. We delivered revenue of $89 million.

Natasha Fernandes: Given the incrementality in our business model, we believe the momentum in our core business coupled with the growing contribution from emerging revenue streams creates a potent combination, one that will enable us to drive accelerating and sustainable growth.

Natasha Fernandes: Turning now for a recap of our Q2 results, where we exceeded consensus expectations across most metrics. We delivered revenue of 89 million. Within that, content solutions revenues of 35 million grew 12 percent year over year, driven by the sale of streaming rights of the Blue Angel's documentary to Amazon and growth in alternative content that more than offset the lower striped impacted box office performance. We are very encouraged that our strategy to unlock value for our documentaries in our commercial network and on streaming platforms is bearing early fruit. Turning to technology products and services, system installations grew 20 percent year over year, and this quarter's mix included a higher level of joint revenue sharing arrangements than last year.

Natasha Fernandes: Within that, content solutions revenues of $35 million grew 12% year-over-year, driven by the sale of streaming rights to the Blue Angels documentary to Amazon and growth in alternative content that more than offset the lower strike-impacted box office performance. We are very encouraged that our strategy to unlock value for our documentaries and our commercial network and on streaming platforms is bearing early fruit. Turning to technology products and services, system installations grew 20% year-over-year, and this quarter's mix included a higher level of joint revenue sharing arrangements than last year.

Natasha Fernandes: Overall, revenues of $51 million declined 20% year-over-year driven by the lower box office impact on rental revenues, as well as the installation mix that led to lower up-front system sales. SG&A excluding stock-based compensation was $31 million, a 4% improvement year-over-year. As a reminder, Q2 is generally our highest spend for global sales, marketing, and events. However, even with these costs, we saw lower spend year-over-year, driven by operational efficiencies and cost-initiative benefits.

Natasha Fernandes: Overall revenues of 51 million declined 20 percent year over year, driven by the lower box office impact on rental revenues as well as the installation mix that led to lower upfront system sales. SG&A excluding stock base compensation was 31 million, a 4 percent improvement year over year. As a reminder, Q2 is generally our highest spend for global sales, marketing, and events. Even with these costs, we saw lower spend year over year, driven by operational efficiencies and cost initiative benefits. Overall, the second quarter total consolidated adjusted EBITDA of 31 million was at a 34.8 percent margin compared to 36.7 percent in the prior year, with declines in gross margin from lower box office and revenue mix being partially offset by SG&A and R&D savings.

Speaker Change: Q2 is generally our highest spend for global sales marketing and events, even with these costs, we saw lower spend year over year, driven by operational efficiencies and cost initiative benefits.

Natasha Fernandes: Overall, the second quarter total consolidated adjusted EBITDA of $31 million was at a 34.8% margin compared to 36.7% in the prior year, with declines in gross margin from lower box office and revenue mix being partially offset by SG&A and R&D savings. For the first half, total adjusted EBITDA margin was 37.5% and in line with our full year guidance of the high 30s percent. Lastly, Adjusted EPS in Q2 was $0.18, which easily beats consensus and compares to Adjusted EPS of $0.26 in the year-ago period.

Speaker Change: Overall, the second quarter total consolidated adjusted EBITDA of $31 million was that a 34, 8% margin compared to 36, 7% in the prior year with declines in gross margin from lower box office and revenue mix being partially offset by SG&A and R&D savings.

Natasha Fernandes: For the first half, total adjusted EBITDA margin was 37.5 percent and in line with our full year guidance of high 30s percent. Lastly, adjusted EPS in Q2 was 18 cents, which easily beats consensus and compares to adjusted EPS of 26 cents in the year-ago period.

Speaker Change: For the first half total adjusted EBITDA margin was 37, 5% and in line with our full year guidance of high <unk> percent.

Speaker Change: Lastly, adjusted EPS in Q2 was 18.

Speaker Change: Which easily beats consensus and compares to adjusted EPS of <unk> 26 in the year ago period.

Natasha Fernandes: Turning to our global network system installations and signings, both shows very good growth in Q2 as demand for iMacs continues to grow in advance of the expected strong box office late that Rich described. During the quarter, we completed 24 system installations, up 20 percent over Q2 2023, which puts us at 39 installations for the first half, a growth of 34 percent year over year. Of the Q2 installations, 67 percent were new locations, with over 60 percent of these in the rest of the world outside of North America and China. Signing activity increased dramatically to the 87 in Q2 versus 46 in the prior year, with more than a quarter of these signings expected to be installed in 2024.

Natasha Fernandes: Turning to our global network, system installations and signings both showed very good growth in Q2 as demand for Imax continues to grow in advance of the expected strong box office late that Rich described. During the quarter, we completed 24 system installations, up 20% over Q2 2023, which puts us at 39 installations for the first half, a growth of 34% year over year. Of the Q2 installations, 67% were new locations, with over 60% of these in the rest of the world, outside of North America and China.

Speaker Change: Turning to our global network system installations and signings both showed very good growth in Q2 as demand for IMAX continues to grow in advance of the expected strong box office slate that rich described.

Speaker Change: During the quarter, we completed 24 system installations up 20% over Q2, 2023, which puts us at 39 installations for the first half a growth of 34% year over year.

Speaker Change: The Q2 installations, 67% were new locations with over 60% of these in the rest of world outside of North America and China.

Natasha Fernandes: Signing activity increased dramatically to 87 in Q2 versus 46 in the prior year, with more than a quarter of the signings expected to be installed in 2024. The accelerating pace of installations and signings, along with our significant backlog of over 500 systems at the end of Q2, gives us confidence in our network growth trajectory. As a result, we have raised our 2024 full year system installation guidance range to 130 to 150 systems from 120 to 150 systems, with the low end of the range above full year 2023 installations of 128 systems.

Speaker Change: Signings activity increased dramatically to the 87 in Q2 versus 46 in the prior year with more than a quarter of these signings expected to be installed in 2024.

Natasha Fernandes: The accelerating pace of installations and signings, along with our significant backlog of over 500 systems at the end of Q2, gives us confidence in our network growth trajectory.

Natasha Fernandes: As a result, we have raised our 2024 full year system installation guidance range to 130 to 150 systems from 120 to 150 systems, with the low end of the range above full year 2023 installations of 128 systems. Turning to cash flow and the balance sheet, we had a strong operating cash flow in Q2 of 35 million that compared to 5 million in the prior year. The higher year-over-year operating cash flow reflects the timing of box office receipts as well as improving working capital. This has been a focus, and I am pleased to see the progress.

Natasha Fernandes: Turning to cash flow and the balance sheet, we had a strong operating cash flow in Q2 of $35 million, which compared to $5 million in the prior year. The higher year-over-year operating cash flow reflects the timing of box office receipts as well as improving working capital. This has been a focus, and I am pleased to see the progress. Our capital position remains very strong with $91 million in cash and $287 million of debt, excluding deferred financing costs, reflecting a sequential reduction in net debt of $25 million.

Natasha Fernandes: Our capital position remains very strong with 91 million in cash and 287 million of debt, excluding deferred financing costs, reflecting a sequential reduction in net debt of 25 million. As a reminder, 230 million of our debt comes from our convertible senior notes due in 2026 that they are an interest rate of 0.5 percent per annum with a capped call leading to a $37 per share conversion price. Our current available liquidity is 392 million, which includes 300 million in available boring capacity under the company's varying revolving facilities. From a capital allocation perspective, year to date we spent 15.6 million on CapEx, including 10 million on growth CapEx and 18 million on Imax share repurchases.

Natasha Fernandes: As a reminder, $230 million of our debt comes from our convertible senior notes due in 2026 that bear an interest rate of 0.5% per annum, with a capped call leading to a $37 per share conversion price. Our current available liquidity is $392 million, which includes $300 million in available borrowing capacity under the company's varying revolving facilities.

Natasha Fernandes: From a capital allocation perspective, year-to-date, we spent $15.6 million on CapEx, including $10 million on growth CapEx and $18 million on Imax share repurchases. Imax repurchases were weighted toward the first quarter when our share price was pressured following the Hollywood strikes. We determined the level of repurchases by considering the share price, available excess cash, and the cost of borrowing while also factoring in competing uses of cash, including growth capex to expand our Imax network.

Natasha Fernandes: Imax repurchases were weighted toward the first quarter when our share price was pressured following the Hollywood strikes. We determined the level of repurchases by considering the share price, available excess cash, and the cost of boring while also factoring in competing uses of cash, including growth CapEx to expand our Imax network. We are focused on driving shareholder returns and have spent 175 million to buy back 11.5 million shares, or approximately 19 percent of our shares outstanding since 2020. This share reduction gives us the potential for meaningful adjusted EBITDA per share and adjusted EPS expansion in 2025, given the expected box office trajectory.

Speaker Change: Price available excess cash and the cost of borrowing while also factoring in competing uses of cash including growth capex to expand our IMAX network.

Natasha Fernandes: We are focused on driving shareholder returns and have spent $175 million to buy back 11.5 million shares, or approximately 19% of our shares outstanding since 2020. This share reduction gives us the potential for meaningful adjusted EBITDA per share and adjusted EPS expansion in 2025, given the expected box office trajectory. We'll continue to focus on shareholder returns following the approach I outlined. In total, we have $151 million available under our share repurchase authorization.

Speaker Change: We are focused on driving shareholder returns and have spent $175 million to buy back $11 5 million shares or approximately 19% of our shares outstanding since 2020.

Speaker Change: This share reduction gives us the potential for meaningful adjusted EBITDA per share and adjusted EPS expansion in 2025, given the expected box office trajectory.

Natasha Fernandes: We will continue to focus on shareholder returns following the approach I outlined. In total, we have 151 million available remaining under our share repurchase authorization.

Speaker Change: We will continue to focus on shareholder returns following the approach I outlined in total we have $151 million available <unk>.

Speaker Change: The remaining under our share repurchase authorization.

Natasha Fernandes: While we are pleased with our financial performance and our resilience through a disruptive period for the entertainment ecosystem, we have also been focused on continuing to improve the way we run the business from an operating and financial perspective. Over that evaluation has led to operational improvements and savings, as well as a better alignment of our intellectual property ownership structure to maximize earnings power and improve tax efficiency. We have taken several steps, of which the results are reflected on our financial disc order, and we expect to manifest more benefits going forward. First, we have begun to streamline our global operations, including restructuring Imax China to gain greater efficiencies with Imax Corporation, which has resulted in the elimination of certain roles and reductions in overhead expenditures.

Natasha Fernandes: While we are pleased with our financial performance and our resilience through a disruptive period for the entertainment ecosystem, we have also been focused on continuing to improve the way we run the business from an operating and financial perspective. For example, over the past nine months, we have looked closely at the global operating structure of our business. That evaluation has led to operational improvements and savings, as well as a better alignment of our intellectual property ownership structure to maximize earnings power and improve tax efficiency.

Speaker Change: While we are pleased with our financial performance and our resilience through a disruptive period for the entertainment ecosystem. We have also been focused on continuing to improve the way we run the business from an operating and financial perspective.

Speaker Change: Over the past nine months, we have looked closely at the global operating structure of our business that evaluation has led to operational improvements and savings as well as a better alignment of our intellectual property ownership structure to maximize earnings power and improved tax efficiency.

Natasha Fernandes: We have taken several steps whose results are reflected in our financials this quarter, and we expect to manifest more benefits going forward. First, we have begun to streamline our global operations, including restructuring Imax China to gain greater efficiencies with Imax Corporation, which has resulted in the elimination of certain roles and reductions in overhead expenditures. These organizational and tax efficiency gains have allowed us to capture a number of benefits we were aiming to realize from the IMAX China privatization effort we engaged in last year. Thus, our incentives to take that business private have decreased.

Speaker Change: We have taken several steps of which the results are reflected in our financials. This quarter and we expect to manifest more benefits going forward.

Speaker Change: First we have begun to streamline our global operations, including restructuring IMAX, China to gain greater efficiencies with IMAX Corporation, which has resulted in the elimination of certain roles and reductions in overhead expenditures.

Natasha Fernandes: These organizational and tax efficiency gains have allowed us to capture a number of benefits we were aiming to realize from the Imax China privatization effort we engaged in last year. That's our incentive to taking that business private have decreased. Secondly, as previously discussed, we have been adversely impacted by tax valuation allowances most quarters since the pandemic, resulting in an unusually high tax rate. During the second quarter, we reorganized our legal entities to optimize our tax structure, to reflect the mix of our business and where we are making investments and realizing the most profits. As a result, we recognize a tax benefit in Q2 stemming from this reorganization, and we expect in the future, this structure will result in the creation of additional value from our IP and a more effective global tax rate.

Natasha Fernandes: Secondly, as previously discussed, we have been adversely impacted by tax valuation allowances for most quarters since the pandemic, resulting in an unusually high tax rate. During the second quarter, we reorganized our legal entities to optimize our tax structure to reflect the mix of our business and where we are making investments and realizing the most profits. As a result, we recognize a tax benefit in Q2 stemming from this reorganization, and we expect in the future this structure will result in the creation of additional value from our IP and a more effective global tax rate.

Natasha Fernandes: These are some very positive outcomes that help support greater IMAX profitability and earnings in the future.

Natasha Fernandes: These are some very positive outcomes that help support greater IMAX profitability and earnings in the future. To conclude, we have real momentum across the key drivers of our business, global box office, system sales, and installations, ahead of an extremely promising diverse film slate over the next several years with more IMAX DNA than we've ever seen. At the same time, new revenue streams are contributing to our growth and driving greater capacity utilization across our IMAX global network.

Natasha Fernandes: To conclude, we have real momentum across the key drivers of our business: global box office, system sales, and installations ahead of an extremely promising diverse film slate over the next several years with more IMAX DNA than we've ever seen. At the same time, new revenue streams are contributing to our growth and driving greater capacity utilization across our IMAX global network. A strong opportunity, given one point of utilization, can drive 75 to 100 million in additional box office. Along with our increase in confidence on network growth from system installations, the third quarter is off to a great start.

Natasha Fernandes: A strong opportunity given that one point of utilization can drive $75 to $100 million in additional box office. Along with our increase in confidence on network growth from system installations, the third quarter is off to a great start.

Natasha Fernandes: We're on the cusp of 100 system signings and delivers three consecutive hits in Twisters, China's successors, and the strong pre-sales for Deadpool and Wolverine. Given the strength of our business model, the tailwinds in the market, and our continued focus on streamlining our operations to unlock efficiencies, we believe IMAX is poised to deliver strong growth, expanding margins, and increase cash flows for years to come.

Natasha Fernandes: We're on the cusp of 100 system signings and have delivered three consecutive hits in Twisters, China's Successors, and the strong pre-sales for Deadpool and Wolverine. Given the strength of our business model, the tailwinds in the market, and our continued focus on streamlining our operations to unlock efficiencies, we believe Imax is poised to deliver strong growth, expanding margins, and increased cash flows for years to With that, I will turn the call over to the operator for Q&A. As a reminder, to ask a question, please press star 1 1 on your telephone and wait for your name to be called. To withdraw your question, please press star 1 1.

Unknown Attendee: With that, I will turn the call over to the operator for Q&A. As a reminder to ask a question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again.

Speaker Change: Our one one on your telephone and wait for your name to be announced to withdraw your question. Please press star one one again.

Chad Beynon: Our first question comes from the line of Chad Bannon with McQuarry. Hi, good morning. Thanks for taking my question.

Operator: Our first question comes from the line of Chad Beynon, with, Hi, good morning. Thanks for taking my question. Rich, Natasha, let's please start with the installation improvement on the low end. Natasha, I know you talked about what's out in the market, kind of what you've already achieved in the first half. So that alone would bring up that low end.

Speaker Change: Our first question comes from the line of Chad Beynon with Macquarie.

Chad C. Beynon: Hi, good morning, Thanks for taking my question.

Natasha Fernandes: Rich Natasha, let's please start with the installation improvement in the low end. Natasha, I know you talked about what's out in the market, kind of what you've already achieved in the first half, so that alone would bring up that low end. But then you also talked about some of the signings for the year are coming in faster. So can you maybe just talk about general dynamics, what's going on in terms of anticipation for the slate, maybe signings being delivered faster, kind of what you've seen, and if this could also be a positive trend beyond 24.

Richard Lewis Gelfond: Rich Natasha, let's please start with the installation improvement in in the low end Natasha I know you talked about what's out in the market kind of what you've already achieved in the first half. So so that alone would would bring up that low end, but then you also talked about some of the signings for the year are.

Chad C. Beynon: But then you also talked about some of the signings for the year coming in faster. So can you maybe just talk about general dynamics, what's going on in terms of anticipation for the slate? Maybe, you know, signings being delivered faster, kind of what you've seen, and if this could also be a positive trend beyond 24. Thanks.

Speaker Change: Coming in faster. So can you maybe just talk about general dynamics, what's going on in terms of anticipation for the slate, maybe you know signings being delivered faster or kind of what what you've seen and if this could also be a positive trend beyond 24. Thanks.

Richard Gelfond: Thanks. One of the reasons Chad Bannon was such a wide range this year was there was a lot of uncertainty around China and the Wanda Agreement and other things cleared up that I'm certain. So it gave us the conference we needed to raise the lower end of the range. Aside from that, there have been a lot of signings, as you know, from the tax diversity, much more than the water in the first half of last year and certainly in the second quarter. Last year, and that increase in signing has given us more confidence about the range itself, not just the low end of the range. I think it's too early to raise the high end of the range.

Richard Lewis Gelfond: One of the reasons, Chad, why there was such a wide range this year was that there was a lot of uncertainty around China, and the WANDA agreement and other things cleared up that uncertainty. So it gave us the confidence we needed to raise the lower end of the range. Aside from...

Speaker Change: One of the reasons chat bot it with such a wide range. This year it was.

Speaker Change: There was a lot of uncertainty around China, and the Wanda agreement and other things cleared up.

Speaker Change: Certainty so it gave us.

Speaker Change: Confidence we needed to raise the lower end of the range.

Richard Lewis Gelfond: There have been a lot of signings, as you know, from the text of our speech, much more than there were in the first half of last year and certainly in the second quarter. And that increase in signings has given us more confidence about the range in itself, not just the low end of the range; I think it's too early to raise the high end. But, you know, I'll give you one example.

Speaker Change: From that there have been a lot of signings as you know on the tax device, it's much more than the work in the first half of last year and certainly in the second quarter from last year and that increase in signings has given us a you know more.

Speaker Change: More confidence about the range itself not just the low end of the range I think it's too early to raise the high end to the range, but you know I'll give you. One example of the movie deal, which was signed in Saudi Arabia.

Richard Lewis Gelfond: The movie deal that we signed in Saudi Arabia for foreign theaters, three of those are opening this year. And although Saudi Arabia has been a very promising market for us, a lot of the signings are in backlog and haven't moved out of backlog. So we're starting to see that trend happen. I think that's a function of the strong slate in twenty five and twenty six. And, you know, frankly, just being practical about it. If you're an exhibitor anywhere in the world and you look at that 25th slate, you've got to say, you know, I better get those things open. I mean, yeah, you know, I can't imagine it.

Richard Lewis Gelfond: But I'll give you one example of the movie deal, which we signed in Saudi Arabia for four theaters. Three of those are opening this year. And although Saudi Arabia has been a very promising market for us, a lot of the signings are backlog and haven't moved out of backlog. So we're starting to see that trend happen. I think that's a function of the strong slate in 25 and 26. And you know, frankly, just being practical about it. If you're an exhibitor anywhere in the world and you look at that 25 slate, you've got to say, you know, I better get those things open.

Speaker Change: Four theaters three of those are opening this year and although Saudi Arabia has been a very promising market for us a lot of the signings backlog and Havent moved out of backlog. So we're starting to see that trend to happen I think that's a function of the strong slate.

Speaker Change: And 25, and 26 and you know frankly just.

Speaker Change: Being practical about it is if you're an exhibitor anywhere in the world and you look at that 'twenty slate, you've got to stay like that and get those things out, but I mean, yeah. You know I can't imagine again as we've said between May and September eight.

Richard Gelfond: I mean, yeah, you know, I'm going to say, you know, I'm going to say, I'm going to say, I'm going to say, I'm going to say, I'm going to say, I'm going to say, I'm going to say, I'm going to say, I'm going to say, I'm going to say, I'm going to say, I'm going to say, I'm going to say, I'm going to say, I'm going to say, I'm going to say, I'm going to say, I'm going to say, I'm going to say, I can't imagine it. Again, as we've said, between May and September, there are eight film prime, that's titles in a row.

Richard Lewis Gelfond: Again, as we've said, between May and September, there are eight films for IMAX titles in a row. So I don't know if you had a, you know, a multiplex anywhere, why you wouldn't want to get open before that; you'd miss out on a big opportunity and obviously have a shorter payback period. So that's, you know, that's kind of the dynamic. I don't know if you want to add anything.

Speaker Change: <unk> film for IMAX titles in a row. So I don't know if you have not a.

Richard Lewis Gelfond: So I don't know if you had a, you know, a multi-punch anywhere why you wouldn't want to get open before that you miss out on a big opportunity. And obviously, have a shorter payback period. So that's, you know, that's kind of the dynamic. I don't know if you think about it. I think the only thing to think about is the fact that we, we've already installed more this year than last year, and we're on the right trajectory. And as we've talked about before, we have a really detailed process where we go through a full schedule of what we know to be coming through the pipeline.

Speaker Change: Multiplex anywhere why you wouldn't want to get open before that you Miss out on a big opportunity and obviously you have a shorter payback period. So that's you know that's kind of a dynamic I don't know if you want to add anything.

Natasha Fernandes: I think the only thing to think about is that we've already installed more this year than last year, and we're on the right trajectory. And, as we've talked about before, we have a really detailed process where we go through a full schedule of what we know to be coming through the pipeline, and so we feel very confident. The range that we put out there of raising the lower end, and also the raise of the lower end is more than our full year installations last year. And so that also gives us the growth that we've been talking about that we will have here. Thank you.

Speaker Change: The only thing to think about that that we we've already installed more this year than last year and we're on the right to the factory and as we've talked about before but you haven't really detailed process, where we go through.

Speaker Change: What we know to be coming through the pipeline and so we feel very confident.

Richard Gelfond: And so we feel very confident in the range that we put out there of raising the lower end. And also the raise of the lower end is more than our full year installations last year. And so that also gives us the growth that we've been talking about that we will have here over here.

Speaker Change: The range that we that we put out there raising the lower end and also the raising the lower end is more than a full year installation last year and so that also.

Speaker Change: The growth that we've been talking about that.

Unknown Attendee: Thank you.

Speaker Change: Yeah.

Chad C. Beynon: And then with respect to the NBA uprising that Hong Kong and Taiwanese consumers experienced, can you just talk about what, what kind of ceiling could be for alternative content opportunities, whether it's sports or other artists, particularly outside of the United States? Rich, you talked about this being very successful in terms of new, you know, new attendees, but what is the ceiling for what you've started there? I think we're just learning right now, and that's one reason we're experimenting with different kinds of content.

Richard Gelfond: And then with respect to the NBA operas that Hong Kong and Taiwanese consumers experience, can you just talk about what kind of the ceiling could be for alternative content opportunities, whether it's sports or other artists, particularly outside of the United States. Rich, you talked about this being very successful in terms of new, you know, new attendees. But what is the ceiling for what you've started there? I think we're just learning right now. And that's one reason we're experimenting with different kinds of content. So, as a matter of fact, as we said, you know, tomorrow we're doing the opening ceremony of the Olympics.

Speaker Change: Thank you and then with respect to the B M. B, a operas that Hong Kong and Taiwan is consumers experience can you just talk about what what kind of the ceiling could be for alternative content opportunities whether it's sports.

Speaker Change: Or other artists.

Richard Lewis Gelfond: Particularly outside of the United States Rich you talked about this being very successful in terms of new.

Richard Lewis Gelfond: You know new attendees, but but what is the ceiling for what you've started there.

Speaker Change: Oh I think we're just learning right now and that's one reason, we're experimenting with different kinds of content. So as a matter of fact, as we said and you know tomorrow. It would do in the opening ceremony of the Olympics I think.

Chad C. Beynon: So as a matter of fact, as we said, and you know, tomorrow we're doing the opening ceremony of the Olympics. I think, you know, it's so hard to predict these things. We just found out in the last 24 hours that

Richard Gelfond: I think, you know, it's so hard to predict these things. We just found out in the last 24 hours that Celine Dion and Lady Gaga are the talent doing that. So, you know, people nearby take it at the last minute. So I think I use that as an example, but something like the NBA Finals, you may know barn advance, barn up an advance to where, you know, it pretty much sold out when it went on sale. Other kind... James Domence, our later breaking. And we're going to try to do a very much being a test base and try a number of different things.

Speaker Change: It's so hard to predict these things we just found out in the last 24 hours that Celine Dion and Lady Gaga or the talent do like that so you know people are going to buy tickets at the last minute. So I think I used as an example, but something like the NBA finals, you may know.

Richard Lewis Gelfond: Celine Dion and Lady Gaga are the talent doing, So, you know, people are going to buy tickets at the last minute. So I think I use that as an example, but something like the NBA Finals, you may know Barton, far enough in advance where, you know, it pretty much sold out when they went on sale. Other kinds are later breaking. And we're going to try and do a, you know, very much be in a test phase and try a number of different things.

Speaker Change: BARDA advanced far enough in advance. So we're you know we're pretty much sold out.

Speaker Change: Why not sell other kinds of events are our later breaking and we're going to try and do Oh, you know very much be in a test phase and try a number of different things we've done the NHL, we've done soccer before and I think.

Unknown Attendee: We've done the NHL; we've done soccer before. And I think we really like the early feelings of some of these initiatives, but it's way too early to say what the ceiling says. Thank you very much.

Richard Lewis Gelfond: We've done the NHL, we've done soccer before. And I think, you know, we really like the early feelings of some of these initiatives, but it's way too early to say what the ceiling is. Thank you very much.

Speaker Change: Yeah.

Speaker Change: We really like we are all dealing with some of these initiatives, but it's way too early to say what the ceiling is good.

Richard Gelfond: I think one other thing I would, one thing I would add though, my context is a lot of these leads are trying to go outside North America and build audiences for their sports in other parts of the world. And I think Imax can be somewhat of a tool for that. So when you look at the NBA and Taiwan and Hong Kong, it was a limited release. It wasn't a meaningful number, but I think the leads themselves are really happy to get those kinds of sellouts. And I think it really helps the franchise to this library.

Richard Lewis Gelfond: I think one other thing I would add, by context, is that a lot of these leagues are trying to go outside North America and build audiences for their sports in other parts of the world. And I think IMAX can be somewhat of a tool. So when you look at, you know, the NBA, Taiwan, and Hong Kong.

Speaker Change: Thank you very much just one other thing I'll add one thing I would add though I context, there's a lot of these leads are trying to.

Speaker Change: Go outside North America, and build audiences for their sports and other parts of the world.

Speaker Change: IMAX can be somewhat of a tool for that so when you look at the NBA in Taiwan and Hong Kong.

Operator: It was a limited release. It wasn't a meaningful number, but I think the leagues themselves are really happy to get those kinds of sellouts, and I think it really helps the franchises migrate. So I think there'll be a lot of interest in testing it out, and certainly we're interested in that. Our next question comes from the line of Eric Wold.

Speaker Change: Limited release, it wasn't a meaningful number but I think the leagues themselves are really happy to get those kinds of sellouts in I think it really helps the franchise instead of just migrate so I think there'll be a lot of interest in testing it out and certainly we're interested in that.

Richard Lewis Gelfond: So I think there'll be a lot of interest in testing it out. And certainly we're interested in that.

Unknown Attendee: Thank you.

Speaker Change: Thank you.

Eric Christian Wold: Our next question comes from the line of Eric Wolfe with Beri Lee Securities. Thanks. So good morning. So Rich, you know, obviously a lot of other focus has been on the film shoutout by Max B&A and shoutout by his camera. I think it's, what have you experienced so far? What do you feel is reasonable box office share delta over time from those films shot with IMAX cameras and those without? And you're just curious as a number of films, shoutout IMAX increases over time. How do you think that that's generally impacts your share?

Speaker Change: Our next question comes from the line of Eric Wold with B Riley Securities.

Eric Christian Wold: Thanks. Good morning. So, Rich, you know, obviously, a lot of the focus has been on films shot with Imax DNA and shot with Imax cameras. I guess, what have you experienced so far? What do you feel is a reasonable box office share delta over time from those films shot with Imax cameras and those without? And just curious as a number of films shot with Imax increase over time. How do you think that generally impacts your share?

Eric Christian Wold: Thanks, Good morning so.

Speaker Change: Rich you know obviously a lot of the other focus has been on films shot with IMAX DNA and junk batteries cameras I guess what are you experiencing for you. What do you feel is reasonable box office share Delta over time from those films shot with IMAX cameras and then he went out and just curious is the number of films shout.

Speaker Change: Imac increases over time, how do you think that that generally impact your share and then as you add.

Richard Lewis Gelfond: And then, as you add additional cameras and resources to the market? You know, what do you feel is the kind of maximum number of films each year that could have Imax DNA, given that it may not work for every genre out there? So the historical evidence, Eric, is we index higher and there's more demand for IMAX when things are shot with IMAX cameras, whether film or digital. And, you know, there's some outstanding examples, which I know you know, like Oppenheimer and Dune, where we both earned around 20% of the global box office for both of those, much higher than we would traditionally.

Richard Lewis Gelfond: And then, as you add additional cameras and resources to the market, you know, what do you feel kind of the maximum number of films each year that could have Imax B&A, given that it may not work for every genre out there in a follow up? So the historical evidence, Eric, is we index higher and there's more demand for Imax when things are shot with Imax cameras, whether film we're digital. And you know, there's some outstanding examples, which I know you know, like Hoppingheimer and June, where we both, for both of those, did around 20% of the global box office, which is much higher than we would traditionally do.

Eric Christian Wold: Additional cameras and resources to the market.

Speaker Change: What do you feel is kind of the maximum number of films each year that could have IMAX DNA given that it may not work for every every genre out there I have a follow up.

Speaker Change: So their historical evidence Eric as we index higher and there's more demand Brian that's when things are shot with IMAX cameras, whether it's film or digital.

Speaker Change: There are some outstanding examples, which I know you know like Oppenheimer and do them well, we both for both of those we did around 20% of the global box office, which is much higher than we would traditionally do.

Richard Lewis Gelfond: But, you know, we're pretty much across the board. We were talking before this call, but, you know, I think the world has looked at Furiosa as the box office not being all that successful overall, but for Imax, I think it was the third best title in the second quarter, and, you know, we had really high hopes for it. So you can look at it two ways.

Richard Lewis Gelfond: But you know, we're pretty much all the movies across the board. We were talking before this call, but you know, I think the world has looked at But Friday, I think it was that third best title in the second quarter and we had really high indexing on it. So you could look at it two ways. One way you could look at this kind of this and insurance policy if the box office doesn't need expectations that kind of guarantees some kind of minimum, because people will seek out seeing it in IMAX. On the other hand, like with June and Hoppingheimer, it's a tremendous boom to the box office.

Speaker Change: But you know.

Speaker Change: We're pretty much all of the movies across the board.

Speaker Change: When we were talking before this call, but you know I think the world has looked at your theory goes up as the box office not being all that successful overall up but probably not because I think it was the third best title in the second quarter and you know we had really high indexing on it. So you can do.

Richard Lewis Gelfond: One way you can look at it is kind of an insurance policy. If the box office doesn't meet expectations, then it kind of guarantees some kind of minimum because people will seek out seeing it in Imax. And on the other hand, like with Dun & Oppenheimer, it's a tremendous boom for the box office. And, you know, as I've said several times, next year we have 14 films in North America shot with Imax cameras. You've got the entire period from May through September, the whole summer.

Speaker Change: Look at it two ways one way you can look at it as kind of as an insurance policy. If the box office doesn't meet expectations, then it kind of a guaranteed some kind of minimum because people won't seek out seeing it in IMAX.

Speaker Change: The other hand like what's different Oppenheimer, it's a tremendous.

Richard Lewis Gelfond: Stoppuss. And, you know, I've said several times, you know, next year, we have 14 films in North America shot with IMAX cameras. You've got the entire period from May through September in the whole summer. There are other blockbusters, Eric, that we can do because we're filled with film shot with IMAX cameras. And, you know, we haven't spent a lot of time talking about this, but in China, over the next two to three weeks, we're releasing two films shot with IMAX camera, look cameras, local language films. And, I think we have seven in production now between this year and next year.

Speaker Change: Boom to the box office and you know as.

Speaker Change: As I've said several times.

Speaker Change: Yeah, we have 14 films in North America shot with IMAX cameras, you have got the entire period from May through September and the whole summer.

Richard Lewis Gelfond: There are other blockbusters, Eric, that we can't do because we're filled with films shot with Imax cameras. And, you know, we haven't spent a lot of time talking about this, but in China, over the next two to three weeks, we're releasing two films shot with Imax cameras, local cameras, in local languages. And I think we have seven in production between this year and next year. And we're also

Speaker Change: There are other blockbusters Zurich Yep, we can do because were filled with films shot with IMAX cameras and we.

Speaker Change: We haven't spent a lot of time talking about this but in China over the next two to three weeks, we're releasing two films shot with IMAX camera look cameras local language films and I think we have seven in production now between this year and next year and we're also having discussion.

Richard Gelfond: And, we're also having discussions in India, in Korea, and other places about the possibility of, you know, using IMAX cameras.

Richard Lewis Gelfond: India and in Korea and other places about the possibility of, you know, using IMAX cameras. So if you ask me, among all the reasons, what excites me most about IMAX, the future of IMAX? going forward. And by the way, there's a number of films in 27 using our canvas. We haven't announced those yet. We haven't announced the use of our canvas yet.

Speaker Change: Simpson, India, and and Korea, and other places about the possibility of you could say.

Richard Gelfond: So, if you ask me, you know, among all the reasons, what excites me most about Imax, the future of Imax, I'm going forward. And, by the way, there's a number of films in 27 using IMAX cameras. We have announced those yet. We haven't announced the use of IMAX yet. But, I think that's a really important pivot point for us.

Speaker Change: IMAX cameras. So if you ask me.

Speaker Change: Among all the reasons, what excites me most about IMAX theater buybacks going forward, partly because the number of films in 27, using our cameras, we haven't announced those yet we haven't announced the use of our cabinets, yet, but I think that's a really important pivot.

Richard Lewis Gelfond: But I think that's a really important pivot point for us because, again, predicting both box office and the stock market. It's very difficult to do, but I think if you look at the historical data, when things are shot with our cameras, we index much better. So we're feeling very good about that opportunity. For me, the follow-up to that, I know you don't control pricing in the theaters with your exhibitor partners, but obviously, you've been experiencing elevated box office share coming out of the pandemic, so plans to have to have a lot more films shot with IMAX cameras that drive higher demand.

Richard Gelfond: Because, again, predicting both thoughts of this life, predicting stock markets, it's, you know, it's very difficult to do. But, I think if you look at the historical data, what the things that are shot with IMAX cameras, we index much better. So, we're feeling very good about that opportunity.

Speaker Change: Point for us because again.

Speaker Change: Predicting bulk box office like predicting stock markets.

Speaker Change: It's very difficult to do but I think it would be look at the historical data.

Speaker Change: Is there a shot with our cameras, we index much better so we're feeling very good about that opportunity.

Richard Lewis Gelfond: For Imax, but the point to that, I know you don't control pricing in the theaters with your good reporters. But, I'm thinking you've been experiencing your elevated box office share coming out of the pandemic. Plans to have to have a lot more films shot with Imax cameras that drive higher demand. Are you seeing evidence, the givers, or do you feel that there could be some pricing power for the Imax format, you know, in terms of the premium charge versus baseline to get to overtime? Yeah, I mean, as you know, the givers globally charge a premium for Imax, and, you know, generally, a pretty decent premium.

Speaker Change: For the follow up to that I know you don't control pricing Hum in the theaters when you give it.

Speaker Change: Your partners, but obviously you've been experiencing.

Speaker Change: You elevated box office share coming out of the pandemic plans to do.

Speaker Change: Do you have a lot more films shot with IMAX cameras that drive higher demand.

Richard Lewis Gelfond: Are you seeing evidence of givers, or do you feel that there could be some pricing power for the IMAX format in terms of the premium charge versus baseline tickets over time? Yeah, I mean, I haven't seen those. Exhibitors all charge a premium for IMAX, and generally a pretty decent premium. I've thought about that, I don't know the answer, but when you look at, again, go back to Oppenheimer and Dune, where you couldn't buy a ticket for weeks or, in some cases, even a month, you know, I've often wondered why exhibitors don't charge more under those circumstances.

Speaker Change: Are you seeing evidence Hum.

Speaker Change: Or do you feel that there could be some pricing power for the IMAX format. You know in terms of the premium charge versus base I think that overtime.

Speaker Change: Yeah, I mean, I haven't seen though exhibitors globally.

Speaker Change: Charge, a premium for Hyatt matte satin generally a pretty decent premium.

Richard Lewis Gelfond: I thought about that.

Richard Gelfond: I don't know the answer. But, when you looked at, like, again, go back top and I were in June, where you couldn't buy a ticket for weeks or, in some cases, even a month, you know, I've often wondered why the givers don't charge more under those circumstances. As you said, you know, we don't control on the prices; that's up to our exhibitor partners. But, you know, certainly looking at the data, I think, is an opportunity to do that.

Speaker Change: I've thought about that I don't know the answer but when you looked at like again to go back top and however in June where you couldn't buy a ticket from weeks or in some cases, even a month.

Speaker Change: Often wonder why.

Speaker Change: Exhibitors don't charge more under those circumstances as you said, we don't control the prices that's up to our exhibitor partners, but you know certainly.

Richard Lewis Gelfond: As you said, you know, we don't control things. Things are it. Thank you, everyone. Our next question comes from the line of David Joyce. Unknown Attendee.

Speaker Change: Certainly looking at the data I think there's an opportunity to do that.

Richard Lewis Gelfond: Thanks Rich.

Speaker Change: Rich.

Richard Lewis Gelfond: Thank you Sir.

David Carl Joyce: Our next question comes from the line of David Joyce with Seaport Research Partners.

Richard Lewis Gelfond: Our next question comes from the line of David Joyce with Seaport Research partners.

David Carl Joyce: Thank you. I was wondering about the content revenues. With some of Imax's growth story tied to the rebound of the theatrical reasons, how should we think about the cadence of the film remastering portion of the run?

Eric Christian Wold: Thank you. I was wondering about content revenues. With some of Imax's growth story tied to the rebound in theatrical releases, how should we think about the cadence of the film remastering portion of the business? Hi David, we as we look at film remastering, it's based on essentially the box office performance and, generally, historically, you'll see our take rate runs about 18% on every dollar. And so, as the box office increases, that's where you start And then that'll flow right through to the margin and straight to the bottom line.

Speaker Change: Yeah.

Speaker Change: Thank you I was wondering about.

David Joyce: Content revenues with some of imax's growth story kind of the rebound of the theatrical releases how should we think about the cadence of the film Remastering portion of the revenue.

Speaker Change: Hi, David.

Speaker Change: As we look at salary mastering is based on essentially in the box office performance and generally.

Speaker Change: Historically, you look at our take rate from about 18% on every dollar and so as the box office increases that's where you start to see the income mentality on that Remastering line that our revenue will increase accordingly, and then that'll flow right through to the margin and straight to the bottom line.

Natasha Fernandes: And so, as Rich was even mentioning about 25 and 26, that's why we feel like those are gonna be really good, great years because we have a huge amount of leverage in our model to be able to have incrementality so that our costs don't increase as we run films and distribute films, but our revenue flows right through our model. And that's where you can see us capitalize on that. You would have seen that through the other quarters that we've had, like Q3 last year and last year when we had Avatar as well. Thanks.

Speaker Change: Actually we've been mentioning about 25 and 26, that's why we feel like those are going to be really great. Yes, because we have a huge amount of leverage in our model to be able to have instrumentality that our costs don't increase as we run down but.

Speaker Change: But our revenue flows right through in our model and that's where you cannot capitalize that and you would've seen that two other quarters that we had in Q3 last year and and barring any other freight and last year, when we had appetite well.

Natasha Fernandes: And I guess similarly, there was year over year pressure on the tech products and services revenue and margins. Is that due to an acceleration in the installs and sales, in other words, is there, you know, timing of expense recognition, you know, with growing the network here in the near term? That's simply a function of the mix of types of systems installed in a quarter. And so, as I mentioned just a few minutes ago, last year, Q2, we installed less than this year, up to the year-to-date Q2.

Speaker Change: Thanks, and I guess similarly, there was a year over year pressure on the type of products and services revenue and margins.

Speaker Change: Is that due to an acceleration in the installs and sales.

Speaker Change: Other words is there.

Speaker Change: The timing of expense recognition with with growing the network.

Speaker Change: Network here in the near term.

Speaker Change: That's definitely a function of the mix of types of systems installed in a corner and so as I mentioned, just a few minutes ago last year Q2 means.

Natasha Fernandes: And it's just a function of what, where the system is, the type of system as well, and whether or not the mix is heavier on JVs or sales-type leases. For instance, if you're installing a JV system, you'll have some upfront costs that come in right now, but all the revenue will come in later as box office as titles get released across our network. And so, simply a timing function and a mixing function.

Speaker Change: Less than this year up to the year to date Q2, and and it's just a function of what.

Speaker Change: Where the system is the type of system, as well and whether or not the mix is heavier on JD Thursday sales type lease spring installing it J D system, you'll have some upfront costs that come in right now, but all of the revenue will come in later at box office.

Natasha Fernandes: It's not necessarily reflective of a consistent margin going forward. Okay, that's helpful. Thank you very much. Our next question comes from the line of Steven Frankel with Rosenblatt Security. Good morning, and thank you.

Speaker Change: As titles get released or not.

Speaker Change: And so it's simply a timing I mean, I'm Shannon next function, it's not necessarily reflective of that margin.

Speaker Change: No I'm sorry.

Speaker Change: Okay. That's helpful. Thank you very much.

Speaker Change: Our next question comes from the line of Steven Frankel with Rosenblatt Securities.

Steven Bruce Frankel: Rich, maybe give us a little insight into what's going on in India, especially in terms of your ability to take local language titles there and play them in other markets and leverage them. I mean, I think. The second part of your question, they're both interesting, but it's probably more interesting. And first, because Indian films tend to do very well outside India because there are a lot of Indian expats in England and Canada, the US, a lot of other places.

Steven Bruce Frankel: Good morning, and thank you rich, maybe you could give us a little insight into what's going on in India, especially in terms of your ability to take local language titles, there and play them in other markets and leverage it that way.

Speaker Change: Yeah, I mean I think.

Speaker Change: The second part of your question. It is both interesting, but it's probably more interesting than the first because Indian films tend to play very well outside of India. Because there are a whole lot of Indian expats in England in Canada U S. A lot of other places.

Steven Bruce Frankel: So, you know, we continue to hit very hard on finding the right titles to play, but it's not just the titles. The titles have to be available at a time that we're not playing other titles. So, for example, going into Deadpool this weekend, which we think is going to be, you know, a very strong box office draw. We wouldn't play an Indian movie this weekend.

Speaker Change: So we continue to hit very hard on finding the right titles to play, but it's not only the titles that titles have to be available at a time that we're not playing other cycles. So for example going into Deadpool. This weekend, we think there's going to be.

Speaker Change: Very strong box office, we wouldn't play an Indian movie. This weekend. So it's both the availability and how the dates line up but you know there's a lot of local language film coming in the second half of the year.

Richard Lewis Gelfond: So it's both the availability and how the dates line up. But you know, there's a lot of local language films coming out in the second half of the year. I'm probably wrong, and Natasha will correct me, but I think it's something like 20 local language films that we still have coming in the second half of the year. And you know, that's been very good. Some of the results this year, in particular, have been among the highest we've ever done in terms of local language.

Natasha: Probably wrong and Natasha will correct me, but I think it's something like 20.

Natasha: Local language films that we have coming still for the second half of the year and that's been very good in some of the results. This year in particular have been among the highest we've ever done in terms of local language box office you didn't ask this but on the other part of India.

Richard Lewis Gelfond: You didn't ask this, but on the other part of, you know, as a network grows, India is certainly a place where we're underpenetrated. And if you look at the first screen averages there, we do extremely well there. So there's a lot of room to expand our network, and it goes hand in hand with the films that I think. The local exhibitors in India, you know, like on the explainer of Hollywood films, as well as local language films.

Speaker Change: Network grow India is certainly a place where we're underpenetrated and if you look at.

Natasha: The per screen averages there that we do extremely well there. So there's a lot of room to expand our network and it goes hand in hand.

Natasha: The films cause I think.

Speaker Change: The local exhibitors in India.

Speaker Change: Unmik slate.

Speaker Change: Of Hollywood films as well as local language films. So that's another strategic reason for doing it given how under penetrated that market is from a theater point of view, we have a number of theaters in backlog there.

Richard Lewis Gelfond: So that's another strategic reason for doing it, given how underpenetrated that market is from a theater point of view. We have a number of theaters and a backlog there. There's been some consolidation there. As a matter of fact, in breaking news, we signed another deal in India this morning. No, it's Australia.

Speaker Change: There was some consolidation there.

Speaker Change: As a matter of fact, breaking news we signed another deal in Indiana. This morning, No. It's Australia, I'm, sorry, I'm not very good at geography.

Richard Lewis Gelfond: I'm sorry. I'm not very good at geography, but I should be good enough. But there's a fair amount of activity going on there. So, you know, there are obstacles in that market inherent to the structure of that market, the exhibition structure, and the judicial issues there. But you know, overall, I think in terms of getting more movies and expanding the network, in the long term, we still have confidence. Great, thank you so much. Our next question comes from a line from Omar. Good morning.

Speaker Change: Yeah.

Speaker Change: I bet I'm good enough to know the guests in Australia, and India, but there's a fair amount of activity going on there. So you know, there's there's obstacle sitting at market inherent to the structure of that market. The exhibition structure at least judicial issues there but.

Speaker Change: You know overall I think in terms of getting more movies and expanding the network.

Speaker Change: Long term, we still have contracts in that market.

Speaker Change: Okay, great. Thank you so much.

Omar J. Mejias Santiago: Our next question comes from the line of Omar <unk> with Wells Fargo.

Omar J. Mejias Santiago: Thank you for taking my question. Maybe first, in China, the box office has been relatively weak just recently. I think there's just been a death of content. But maybe can you elaborate and unpack what's been driving the weakness and your expectations going forward over the back half of the year into 2025? Well, Omar, I think, you know, we guided to a box office. 2024 is similar to 2023.

Omar J. Mejias Santiago: Good morning. Thank you for taking my question, maybe first on China.

Speaker Change: Box office has been relatively weak and just recently I think there's just been a dearth of content, but maybe can you can you elaborate on that what's been driving the weakness and your expectations going forward.

Speaker Change: Over the back half of the year into interest only 25.

Speaker Change: Well I'll buy you know I think you know we guided to a box office for 2024, similar to 2023 and 2023 for IMAX was hill.

Richard Lewis Gelfond: And 2023 for Imax was, you know, on a par with 2019, which was our best year ever. So when you talk about box office and Imax, it hasn't been that weak over the last couple of years. I think if you're asking about exhibitors at large, why their box office hasn't done that well, I think you have to look back to the strike.

Speaker Change: On a par with 2019, which was our best year ever so when he talked about box office in IMAX. It hasnt been that weak over the last couple of years I think if you're asking about exhibitors at large wide you know their box office does not.

Richard Lewis Gelfond: And I think there's no question in the first half of this year, the strike impacted the release slate. Remember, it just ended towards the end of last year, and you can't pop out a movie, you know, in a couple weeks. It takes, you know, a year or more to put a movie out. And I think that's going to start to turn in the second half of this year. Well, it's already started, with Inside Out, now Twister, of Deadpool coming this weekend. In terms of 25, using a terrible analogy.

Speaker Change: <unk> done that while I think you have to look back to the strike and I think there's no question in the first half of this year.

Speaker Change: The strike impacted the release slate wherever it just stand it towards the end of last year and you can pop out in the movie.

Speaker Change: And a couple of weeks it takes a year or more to put a movie out and I think that's gonna start to turn in the second half of this year.

Speaker Change: It's already started to tour with inside out.

Speaker Change: Twist every person.

Speaker Change: Deadpool coming this weekend and.

Speaker Change: In terms of 25.

Richard Lewis Gelfond: It's almost like Murderer's Row in terms of what the box office looks like. You know, movie after movie after movie. As I mentioned, 14 are being filmed with Imax cameras for us. So, you know, for us, I certainly... because, you know, our box office isn't only the Hollywood box office; 20% of our box office is from local language films. I think we've proved it this quarter with Blue Angels, you know, documentaries, and I think alternative content which we're putting out.

Speaker Change:

Speaker Change: Using a terrible.

Speaker Change #100: Allergy, it's almost like murderer's row in terms of what the box office looks like you'll movie after movie after movie as I mentioned 14 are being filmed with IMAX cameras for us. So you know for autos I certainly feel extremely good about the box office, especially because.

Speaker Change: Cause.

Speaker Change: Our box office isn't only Hollywood box office was 20% of our box office as local language film I think we proved out this quarter with Blue Angels documentaries, I think alternative content.

Richard Lewis Gelfond: So I feel very good about Imax. In terms of the industry as a whole, I do think that 25 is going to be, you know, a much more positive thing. And I think, you know, some of the trends apply for different reasons. But I think the fact that the strength is farther behind us and the fact that the pandemic is pretty much over in the world means that, you know, even traditional exhibitors playing traditional movies are going to do better in 25, you know, than they've done over the past couple of years. And then, you know, as I said, when you look at, you know, 26, it's kind of crazy in so many ways.

Speaker Change: We're putting out so I feel very good about about behind that in terms of the industry as a whole I do think that 25 is going to be.

Speaker Change: A much more positive the ear I don't even think.

Speaker Change: Some of the trends in supply for different reasons, but I think the fact, the strike is part of it behind us and the fact that the pandemic pretty much over in the world, meaning that you don't even traditional exhibitors play.

Speaker Change: Additional movies, and maybe better than 25 than they've done over the past couple of years and then.

Speaker Change: Like I said when you look at the 26, it's kind of crazy.

Omar J. Mejias Santiago: I mean, in January of 26, you have the holdover from Avatar, which is coming out Christmas 25, of a bunch of Marvel movies. Richard, I appreciate the content. I was, I don't know if I got caught off guard, but I was referring to the Chinese box office, not the overall box office. Just, just curious about what trends.

Speaker Change: And so many ways to me in January of 26, Yeah, a holdover from Avatar, which is coming out Christmas 'twenty five Star Wars.

Speaker Change: A bunch of Marvel movies.

Speaker Change: There's it's just a.

Speaker Change: Uh huh.

Speaker Change #105: Really an incredible year I mean, you have Super Mario Brothers, you have Avengers.

Speaker Change: Toy story by we're starting to Bud movies out for 27. So you know I think you know as it was.

Speaker Change: The theme of my remarks.

Speaker Change: Really at a pivot point now where the second half of 'twenty four is going to really pick up because of the stripes are farther in the rearview mirror and I feel like 25 to 26, we'll really be turnaround years.

Richard Lewis Gelfond: Richard I appreciate the context I was I don't know if I got cut off but I was referring to the China box office not the overall box office, just just curious on what trends.

Richard Lewis Gelfond: You're seeing, and if the volume of films coming to market is, you know, expected to pick up, and if you guys are seeing any improving trends. Yes, so the second half of the year in China, we believe it will be better than the first half of the year, as I mentioned earlier, and we just did successor this last weekend, and we did eight and a half million dollars over the weekend, which was our best week of the year so far.

Richard Lewis Gelfond: You're seeing and if the volume of.

Speaker Change #103: Films coming tomorrow. Good Oh, it's it's you know expected to pick up and it would be you guys have seen any improving trends there.

Speaker Change #102: Yeah. So.

Speaker Change #104: Half of the year in China, we believe will be better than the first half of the year as I mentioned to an earlier question and we just did success. This last weekend, we did $85 million of the weekend, which was our best week in the year so far.

Richard Lewis Gelfond: We have two films in the next three weeks that were filmed with Imax cameras that we're pretty optimistic about. When you look at next year's Chinese New Year, they've just started dating some of those movies, but, you know, with the caveat that it's really early, it looks like a stronger slate around Chinese New Year than it looked this year, and, you know, certainly looks like it. As to exactly when movies are being dated, as you know, that's a government... That's very helpful. Thank you.

Speaker Change #104: Two films in the next three weeks that were filmed with IMAX cameras that we're pretty optimistic about when you look at next year as Chinese new year, they've just started to date some of those movies, but you know.

Speaker Change #104: With the caveat that it's really early it looks like a stronger slate around Chinese new year. They don't look this year.

Speaker Change #101: Certainly works.

Speaker Change #101: More promising and the reason I'm not going harder and RMR is because there's less visibility in China as to exactly when movies are being Danielle that's even though that's a government function. They are not a private function.

Speaker Change #101: I feel good about it but until we know the exact date you know it's hard to back in the day.

Omar J. Mejias Santiago: Real quick on the Blue Angels documentaries and the recent success, maybe can you elaborate on how you envision this strategy evolving over time and how big it can become as part of your overall portfolio? Maybe touch on how capital intensive this strategy or asset light it is? Thank you, which makes it definitionally more capital light because you don't have to finance the whole movie. You finance some of it out of the proceeds you get from the streamers. So, for example, in Blue Angels, I don't think we had a lot of capital up, and we had some, but I think it was in the neighborhood of two or three million dollars, something like that. Tasha's giving me a dirty look.

Speaker Change #108: But very few things real quick one on the Blue Angels documentaries and the recent success. Maybe you can can you elaborate on how you envision the strategy evolving over time and how big can this.

Speaker Change #106: This has become as part of your overall portfolio and maybe touch on how capital intensive is this strategy or asset light is thank you.

Speaker Change #101: Yeah.

Speaker Change #110: So you know we've been talking about on earlier calls this model, which is to put up somebody start production of more documentaries than we have and to try and sell off the streaming rights.

Speaker Change #107: Possible earlier in the process, which makes it initially more capital light because you don't have to finance the whole movie you finance some of it out of the proceeds you get from the streamers. So for example in.

Speaker Change #107: And in Blue Angels.

Speaker Change #109: I don't think we got a lot of capital and we have we had some off but I think it was in the neighborhood of two or $3 million something like that cautious, giving me a dirty look.

Speaker Change #111: [laughter] minded about that but.

Richard Lewis Gelfond: I think I'm right about that. But, you know, that's part of the reason we're attracted to other films and then, of course, our global films, Life Blue Angels, but also installations and foreign language and parts of our business model, our asset-light model, that are very different from those of exhibitors. And I think the first two quarters were good examples.

Speaker Change #111: That's part of the reason we're attracted to the model because I didn't really know documentaries without putting up a lot of capital and right now I think we have.

Speaker Change #111: Four or five in production, we have one called Stormbound with Adam Mckay, and we'll probably bring that to one of our festivals.

Speaker Change #111: Following through on the financing model, we have one in China.

Speaker Change #111: Hello, Thank migration, which doesn't sound exciting, but think of it as like March of the Penguins with elephants, it's actually quite interesting.

Speaker Change #111: Have another couple that we haven't really announced the substance, but they have I think pretty good upside potential. So you know we've been saying on these calls for a while that we have a strategy to diversify away from Hollywood content and in the first quarter. If you remember.

Speaker Change #111: We had the Queen.

Speaker Change #111: Then we you know we have a deal with 824.

Speaker Change #111: Thank you know people don't realize the extent to which we are subsidizing the Hollywood slightly with other films and then of course, a global film slate and you know, there's another quarter, where a lot of our colleagues Unfortunately and traditional that submission suffered because.

Speaker Change #111: The strike and they didn't have alternative sources, but obviously the financial results were pretty strong and they were driven by things like Blue Angels, but also installations in foreign language and parts of our business model our asset light model, that's a very different than zip.

Speaker Change #111: So I think the first two quarters were good examples of that.

Speaker Change #112: Thank you very much great color I appreciate it.

Speaker Change #112: Our next question comes from the line of David Karnofsky with J P. Morgan.

Unknown Attendee: Hi Natasha, maybe following up on the prior question, but for Natasha, is it possible to frame it all, the gross profit or EBITDA contribution from Blue Angels in the Quarter, and then pre-cash flow conversion, pre-growth, CapEx, which looks better year-to-date? I know you don't guide it, but any framework for how to think about it for the year, or even a target on a long-

David Karnofsky: Hi, Thank you and maybe following up on the prior question, but for Natasha. This is it possible to frame at all the gross profit or EBITDA contribution from Blue Angels on the quarter, and then free cash flow conversion pre growth Capex looks better year to date I know you don't guide it but any framework for how to think about it for the year or even a target on a long term basis.

Speaker Change #111: Thanks.

Speaker Change #114: And even as in every quarter, there's lots of puts and takes in our model just as Richard was talking about with our diverse revenue streams and sell Blue Angels of course was a significant contributor in the quarter and you know we haven't gone through and disclose all of the details on the arrangement.

Speaker Change #114: And arrangements seen other parties, but.

Speaker Change #111: You can definitely see the contribution through the other content solutions line item in the model and that and I think part of it is that the other content solutions of somebody else.

Speaker Change #115: Turning it on at any time.

Speaker Change #117: Multiple events in the quarter, including the NDA, but also I'm not sure that really after a Korean content can be a 24 theory, we can add them each place documentary as well among other items and so it's just all a function of the mix of revenues that are coming in which is.

Speaker Change #111: Something we've been talking about creating an increasing utilization of our network.

Speaker Change #111: The opportunity ahead of us without.

Speaker Change #119: Lane keep my chance in a Hollywood Hollywood contribution himself, yes, we're going to reap benefits and and really continue to put.

Speaker Change #111: Capital behind the Hollywood content, but we have other opportunities to in order to make sure that we diversify and create financial growth year over year in each year is our in our golf and so and even when you look at castle actually we had a really good quarter and he thought he had a cash flow was $24 million in Florida.

Speaker Change #123: I'm, sorry, 35 million in the quarter versus a $5 million last year and he had first half a $24 million and there's still significant runway for further improvement I mean, even if you look you can see that our cash flows essentially converting our balance sheet into cash we had our accounts receivable balance at March was that 140, we brought it down.

Speaker Change #111: Oney to <unk> funding now at the end of June and sell them.

Speaker Change #111: But you need the fourth as ours did it start to get healthier as well with all of the great box office. The cash conversion. We believe we can strengthen them and provide further strength to our working capital as well so just to be mindful People's times, you know we're pretty.

Unknown Attendee: So just to be mindful of people's time, you know, we're pretty much out of time, but out of respect for people in the queue. We have three more questions in the queue, and I'd like to get through them. And so if you could phrase the question as succinctly as possible, and we'll try and give a shorter answer because you just want to make sure everyone can get on with their day.

Speaker Change #121: Pretty much out of time, but out of respect to have people in the queue. We have three more questions in the queue and I like to get.

Speaker Change #125: Through them and so if you could make you know phrased question as succinctly as possible and we'll try and give a short answer because you just want to make sure everyone could get on with their days.

Unknown Attendee: Our next question comes from the line of Mike Hickey with the Benchmark and the signings. Reposition that asset. I know you're excited for growth. Unknown Attendee, Aaron Lister, Robert Lister, Aaron Lister, Unknown Attendee, Second piece, Rich, just curious, your company may be able to sort of leverage traditional.

Speaker Change #111: Our next question comes from the line of Mike Hickey with the benchmark company.

Michael Joseph Hickey: Hey, rich Natasha Jennifer Congrats guys on the signings thanks for squeezing men rich appreciate it.

Speaker Change #127: Lastly, I guess on some way, but I know you guys.

Michael Joseph Hickey: Reposition that asset I know you're excited tour growth opportunities I guess, so part one curious if you can update us there rich.

Speaker Change #122: Our success here.

Speaker Change #118: Youre having.

Speaker Change #120: The flip side, if it doesn't sort of scale like you think do you think you're able to sort of pursue.

Speaker Change #129: Any sort of strategic alternatives for that asset obviously, there could be a.

Speaker Change #129: A fairly large margin unlock if you cut it off your books.

Speaker Change #120: Second piece Rich just curious your view on the sphere experience in Vegas.

Speaker Change #132: Honestly, it's not your model, it's very unique but curious what you're thinking there and if you think in the future there.

Speaker Change #128: There might be an opportunity for a standalone IMAX experience that maybe has some of those immersion qualities and.

Speaker Change #124: Douglas Fir has in terms of the haptic and the temperature and smell in the wind and the sound that really drive that immersion.

Speaker Change #124: May be able to sort of leverage traditional Hollywood content or local language. Thanks guys.

Speaker Change #124: So Mike I'm going to give you a relatively short answer just because of time constraints been happy to schedule a time to go for more in depth if you'd like.

Speaker Change #135: In terms of semi and we continue to.

Speaker Change #126: To generate a lot of leads this year was a breakthrough year for us technically because I believe we mentioned this before that initially the product stream smart was to help streamers save money with what they streamed out to their audiences, but we've actually expanded the product offering.

Speaker Change #126: Where we could do live content. So if someone is sending a lot of content into them broadcast network or a screaming that where we could save them a lot of money.

Speaker Change #126: So we continue to develop the business. The number of leads continues to develop but I think it's premature to say, how well that's going to do it.

Speaker Change #126: Well certainly let you know when we have a clearer outlook.

Speaker Change #126: Where that.

Speaker Change #126: Where that goes with that and we still feel good about it, but but but again I don't want to jump the gun on where its going or it's not gone and again as a follow up to that is completely premature.

Speaker Change #133: To speculate what we might do with that business. I mean, my hope is that becomes a significant margin contributor and will keep you posted in terms of the sphere I went to I saw you to there I I thought it was an amazing experience I think it was very well done I think.

Speaker Change #131: Technology is really good for me. The question is what's the addressable market outside Las Vegas, how many of these can you have and you know we've been in kind of a related business, but 55 years. So you know we had kind of a.

Richard Lewis Gelfond: Perspective on scalability of different kinds of things and you know I'm not negative I'm just not positive I think we just need to see how that model plays out and it's going to take some time in terms of the last part of that question. The answer is yes. We you know we've been impressed pent up with it.

Unknown Attendee: We just need to see how the model plays out, and it's going to take some time. In terms of the last part of that question, the answer is yes. Hi, and thanks for squeezing me in.

Speaker Change #131: We've looked at whether we could create kind of a similar experience in IMAX theaters.

Speaker Change #137: The answer is they're not that big yet not that costly so certainly it can't be bad experience, but probably we.

Speaker Change #131: When could create an experience like that on a smaller scale with less capital investment probably meeting.

Speaker Change #131: Able to address smaller markets, but again, it's early and it's just one of them any things we're thinking about so I'll move on in the interest of time. So the next question.

Richard Lewis Gelfond: Thanks Rich.

Richard Lewis Gelfond: Our last question today will come from James Goss with Barrington Research.

Unknown Attendee: I was just going to ask, in terms of the growing number of blockbusters you alluded to and the alternative content, are you getting, and the studios bending in terms of screen sharing, I'm wondering if that's part of the solution, and what is the nature of the relationship with studios now, given that you have a lot of content you want to put on the screen? I say our relationship with studios, not just in North America, but around the world, is better than it's ever been.

James Charles Goss: Hi, and thanks for squeezing me in.

James Charles Goss: I was just kind of ask in terms of the growing number of blockbusters and you alluded to and the alternative content.

James Charles Goss: Are you getting in and the studios bending in terms of screen sharing I'm wondering if that's part of the solution and what what is the nature of the relationship with studios now.

Speaker Change #134: Given that you have a lot of content you wanted to put on those screens.

Unknown Attendee: And I think that's a function of increased market share and, as well as directors and producers wanting to put more movies in IMAX. So, you know, we have a terrific relationship, and we try really hard to accommodate all of our studio partners. I can't always do that 100% of the time, but I think studios appreciate when we protect the window they've negotiated. You know, this is one I can't really talk about right now, but it's two movies opening at the same time, and we're trying to accommodate both of them by, [inaudible] because we also wanted people to film their movies for Imax, and under that program, when people invest in doing that, they have a two-week minimum run, and we really value that, too.

Speaker Change #138: So I'd say our relationship with studios is not just in North America, but the world is better than it's ever been and I think that's a function of increased market share.

Speaker Change #131: As well as some.

Unknown Attendee: Director of a cent producers wanting to put more movies in IMAX. So the.

Speaker Change #131: We have a terrific relationship we tried really hard to accommodate all of our studio partners can't always do that in 100% of time, but I think studios. Appreciate importantly, protect the window. They didn't think Oceania before so I think they understand the concept of conflicts.

Speaker Change #140: <unk> worked with us and try and get a route.

Unknown Attendee: This is one I can't really talk about right now, but its two movies are opening at the same time, our trying to accommodate both of them by maybe splitting the network. So what is suggesting Jim and I think people are more open to that in terms of.

Unknown Attendee: You know the alternative content and its impact we try and do most of the alternative content like on Tuesday night.

Unknown Attendee: On Saturday night, and when you look at the statistics about utilization certainly opening weekends for blockbusters.

Speaker Change #139: Things are pretty fully sold out so that's a more more difficult case, but when you look at overall utilization, it's still low enough that I think you know.

Unknown Attendee: There's plenty of room to put all of this content and so while.

Unknown Attendee: Hopefully it becomes a bigger and bigger problem, we're still at a place where we can work around it.

Speaker Change: How are you viewing towards maybe one week isn't rather than too as a typical run for new movies, if you get to that stage.

Unknown Attendee: You know Jim I hope not because we also want people to film ever released for IMAX and under that program when people invest in doing that they have a two week minimum right.

Speaker Change: You know, we really value that too. So I think you know it becomes a little bit more of an art than science, but we're going to try and work with all our partners filmmakers Stu.

Richard Lewis Gelfond: So I think it's a little bit more of an art than a science, but we're going to try and work with all our partners, filmmakers, and accommodate as much as we can, as long as we can. And, as I said, our relationships are pretty good. I think as long as you're transparent and honest and you don't play favorites, so you treat your partners equally, I think they work with us.

Richard Gelfond: Studios.

Richard Lewis Gelfond: And accommodate as much as we can as long as we can and as I said, our relationships are pretty good and I think as long as you're a transparent and honest then you don't play favorites. So you treat your partners equally I think they work with us and that's how we're planning on.

Richard Lewis Gelfond: And that's how we're planning on moving forward, that strategy going forward, more content, international growth, more local language content. And, you know, we've been delivering that over the years. And, you know, I harken back to 23, where we had a near-record year when, you know, a lot of our clients weren't that fortunate; traditional exhibition was off by 20%.

Richard Lewis Gelfond: Moving forward.

Speaker Change: Alright, thanks, it seems like a good problem.

Speaker Change: I would agree.

Richard Lewis Gelfond: That concludes today's question and answer session I'd like to turn the call back to rich, California for closing remarks.

Speaker Change: Yeah, I mean, I think I said most of it earlier and at the beginning of my call. We've been talking for a number of years about.

Richard Lewis Gelfond: Our strategy going forward more content international grow.

Richard Lewis Gelfond: More of a film for IMAX more of local language content.

Richard Lewis Gelfond: You know we've been delivering that over the years.

Richard Lewis Gelfond: Harkening back to 'twenty three what do you have a near record year wedding, you know a lot of our clients Werent that fortunate traditional exhibition was off by 20% and you know, we were saying and saying it.

Richard Lewis Gelfond: And, you know, we were saying it and saying it. And, you know, I think there was some skepticism, but I think after the results of the first one, When you look at 25 and 26, very much at a pivot point, we feel really good about our business. And, you know, we're appreciative of the analysts who have seen this coming. And most of them have understood the underlying values and have talked about them. And we appreciate all of you. And we think shareholders are finally aligning themselves with what the analysts are doing. This concludes today's conference.

Richard Lewis Gelfond: You know I think there was some skepticism after the results of the first.

Richard Lewis Gelfond: Two quarters, you'd see it playing out in the numbers and I think we.

Richard Lewis Gelfond: Last four years or so.

Richard Lewis Gelfond: Not have not been easy between the pandemic at the stripes and I think that's finally in the rearview mirror. So I think you've put the two pieces together, what we have done internally and strategically and then you look at the external environment, which is really sort of you can sell.

Richard Lewis Gelfond: About that as I said when you look at 25 and 26 very much at a pivot point, we feel really good about our bids.

Richard Lewis Gelfond: Business and you know, we're appreciative of all of them.

Richard Lewis Gelfond: The analysts who have seen this coming and most of the Monday.

Richard Lewis Gelfond: Understood the underlying values that I've talked about it and we appreciate all of the other one we think the shareholders are finally aligning themselves what the analysts have been singing worldwide. So thank you all and we hope to keep delivering for you.

Richard Lewis Gelfond: This concludes today's conference call. Thank you for participating you may now disconnect.

Richard Lewis Gelfond: Yeah.