Analyst Note
| Neil Macker, CFA |Imax posted a better-than-expected second quarter as both revenue and adjusted EBITDA beat FactSet consensus expectations. While Imax’s quarterly box office rebounded strongly, it still only came in at one third of the grosses for the second quarter of 2019. The slow box office recovery was expected, but the ongoing spread of the Delta variant and the possible return of lockdowns could kill off the recovery before it speeds up. Imax remains largely dependent on the timing of the release slate from the major studios, local capacity constraints, and the willingness of consumers to return to theaters as they reopen. We are maintaining our narrow moat and $22 fair value estimate.