Analyst Note
| Neil Macker, CFA |Imax posted a better-than-expected third quarter as revenue was in-line and adjusted EBITDA beat FactSet consensus expectations. Imax’s quarterly box office rebounded strongly to just under 60% of the grosses for the third quarter of 2019. The slow box office recovery was expected, but we remain worried about the ongoing spread of the delta variant and the possible return of lockdowns killing off any momentum of the recovery. However, box office gross in October has already hit a record level for Imax and the month has the potential to be one of the firm’s top 10 months all time. We are maintaining our narrow moat and $22 fair value.