Investing.com -- Shares in Imax Corporation (N:IMAX) tumbled more than 8% in after-hours trading after the North American large-screen movie theater company failed to meet analysts' expectations with its fourth quarter earnings, even after posting its highest quarterly revenues on record.
During the fourth quarter, the Mississauga, Canada-based company finished with revenues of $119.3 million and adjusted earnings per share of 0.39, amid robust box office sales from its digital remastering films and the opening of more than 70 new theaters installed under its comprehensive revenue-sharing agreement. For the quarter, IMAX's adjusted EBITDA spiked by 16.5%, also the highest ever in company history, while its global per-screen average of $318,00 surged by more than 9% on an annual basis. Still, investors focused intently on IMAX's subdued earnings after the company failed to meet analysts' expectations for adjusted per share earnings of 0.43.
"2015 was undoubtedly a historic year for IMAX – we delivered a record $1 billion in global box office, added 136 theatres to our network to bring our global total to over 1000 screens, launched our highly anticipated laser projection system, and of course, successfully listed our China business on theHong Kong Stock Exchange," said IMAX CEO Richard L. Gelfond.
"IMAX is clearly benefiting from a global trend in the film industry to make more big-budget blockbuster movies. And with so many major movie franchises releasing important sequels in 2016 and 2017, we believe we're extremely well positioned for success in the years ahead."
Overall, IMAX expanded its full-year installation to 154 theater systems in 2015, up from 121 a year earlier. For the year, IMAX signed contracts for 138 theaters in 24 countries creating a backlog of 372 theater systems as of late-December. In the near future, IMAX expects to grow its presence in China, Japan and the U.S., its top three markets in terms of theater system signings last year.
"As we look to 2016, we are very encouraged by what we see in the marketplace regarding our network expansion opportunities not only in China, but in other strategically important markets such as Japan, the Middle East and continental Europe," Gelfond added. "With more than 1,000 theatres in our global network, $1 billion in box office running through our screens, and more than $300 million in cash and virtually no debt, we believe we have significant opportunities to take our Company to the next level."
Shares in IMAX fell 2.64 or 8.21% to 29.51 in after-hours trading.