IMAX China Holding, Inc. Provides Consolidated Earnings Guidance for the First Quarter Ended 31 March 2020
April 23, 2020 at 07:00 pm
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The board of directors of IMAX China Holding, Inc. announced that based on its preliminary assessment of the Group's currently available unaudited consolidated management accounts for the first three months ended 31 March 2020, the net loss attributable to owners of the Company to be recorded by the Group for the three months ended 31 March 2020 is expected to be approximately USD 26 million to USD 28 million, compared to a net profit attributable to owners of approximately USD 11 million for the corresponding period of 2019. Such decrease is primarily due to: an expected loss arising from loss of box office revenue and other related costs as a result of the closure of all of the approximately 700 IMAX theaters in Chinese mainland since around 24 January 2020 and the decrease in theater system installations during the outbreak of COVID-19 in Chinese mainland in the first quarter of 2020, and a USD 20 million non-recurring, non-cash deferred income tax charge for withholding tax due to a change in management's permanent reinvestment assertions to allow for more flexibility in allocation of capital including enabling the Company to pay dividends.
IMAX China Holding, Inc. is an investment holding company principally engaged in the design and sale of image maximum (IMAX) theater systems. Along with subsidiaries, the Company operates its business through three segments. The Theatre Business segment is involved in the sale of theater systems, as well as the provision of installation and maintenance services. In addition, it is also involved in the aftermarket sales of three dimensions (3D) glasses, screen sheets, sounds, parts and other items. The Network Business segment is involved in the design, procurement and provision of digital theater systems, as well as the provision of related project management, ongoing maintenance services and aftermarket sales. The New Business and Other segment is involved in any other non-core business initiatives that are in development and/or start-up phase.