|IMAX Corporation ( IMX / IMAX )|
|Written by Editor|
|Friday, 01 October 2010 09:05|
IMAX and Regal Entertainment Group(R) Expand Joint Venture Relationship for up to 25 New IMAX(R) Theatres
Expansion and Extension of Previous JV Agreement Adds to Regal's Significant IMAX Presence in North America New Joint Venture Agreement Calls for Minimum of 16 Theatres, With Potential for up to 25
IMAX Corporation (Nasdaq:IMAX) (TSX:IMX) and Regal Entertainment Group (NYSE:RGC), today announced an expansion of the companies' joint venture agreement to include installation of an additional 16 to 25 new IMAX(R) theatres in the United States. These theatres, which are part of an amendment to the parties' original 2008 joint venture agreement, are in addition to Regal's previously committed rollout of 39 IMAX joint venture theatres, 34 of which are in currently in operation. As part of the agreement, Regal also plans to upgrade eight of its existing film-based IMAX theatres with IMAX's digital projection technology.
The companies intend to open up the new joint venture theatres by the end of 2012 in U.S. markets including such cities as Albuquerque, NM, Eugene, OR, Charlottesville, VA and Atlanta, GA. Upon completion of the full Regal IMAX theatre rollout, Regal will operate up to 77 IMAX theatres.
"It is with great pleasure that we announce the expansion of our relationship with IMAX," said Amy Miles, CEO, Regal Entertainment. "We take pride in offering our customers a unique, differentiated out-of-home entertainment experience, and we are pleased that IMAX will continue to be a key component of our premium strategy. IMAX theatres deliver an immersive presentation of unparalleled sound and image quality that command a premium price from consumers, and we look forward to bringing that premium experience to more Regal audiences across the country."
"This is an important expansion of our relationship with our long-time partner Regal that builds on the success of our existing joint venture theatres," said Richard L. Gelfond, CEO, IMAX Corporation. "Our operating history together has shown that the combination of IMAX and Regal creates premium movie going experiences that Regal movie-goers crave, and as result, yields substantial returns on investment to our joint venture. This agreement represents a potential 64% increase in our existing JV theatre commitment with Regal, paving the way for more consumers to have The IMAX Experience(R) in new domestic markets."
With today's announcement, IMAX has announced at least 198 theatre systems signings year-to-date, which compares to 35 system signings in all of 2009 and represents a new record for the most signings in a single year.
Included among the terms of the amended agreement is an increase in the length of the joint venture arrangement for all Regal IMAX theatres -- to 10 years from the previous term of seven years. The deal also includes an adjusted allocation of costs to help defray Regal's operating expenses for all of its new and existing joint venture IMAX theatres.
About IMAX Corporation
IMAX Corporation is one of the world's leading entertainment technology companies, specializing in immersive motion picture technologies. The worldwide IMAX network is among the most important and successful theatrical distribution platforms for major event Hollywood films around the globe, with IMAX theatres delivering the world's best cinematic presentations using proprietary IMAX, IMAX(R) 3D, and IMAX DMR(R) technology. IMAX DMR is the Company's groundbreaking digital re-mastering technology that allows it to digitally transform virtually any conventional motion picture into the unparalleled image and sound quality of The IMAX Experience. The IMAX brand is recognized throughout the world for extraordinary and immersive entertainment experiences for consumers. As of June 30, 2010, there were 447 IMAX theatres (325 commercial, 122 institutional) operating in 47 countries.
The IMAX Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6469
IMAX(R), IMAX(R) 3D, IMAX DMR(R), Experience It In IMAX(R), An IMAX 3D Experience(R) and The IMAX Experience(R) are trademarks of IMAX Corporation. More information about the Company can be found at www.imax.com. You may also connect with IMAX on Facebook (www.facebook.com/imax), Twitter (www.twitter.com/imax) and YouTube (www.youtube.com/imaxmovies).
About Regal Entertainment Group
Regal Entertainment Group (NYSE:RGC) is the largest motion picture exhibitor in the United States. The Company's theatre circuit, comprising Regal Cinemas, United Artists Theatres and Edwards Theatres, operates 6,739 screens in 543 locations in 38 states and the District of Columbia. Regal operates theatres in 43 of the top 50 U.S. designated market areas. We believe that the size, reach and quality of the Company's theatre circuit not only provide its patrons with a convenient and enjoyable movie-going experience, but is also an exceptional platform to realize economies of scale in theatre operations. Additional information is available on the Company's Web site at http://www.REGmovies.com.
This press release contains forward looking statements that are based on management's assumptions and existing information and involve certain risks and uncertainties which could cause actual results to differ materially from future results expressed or implied by such forward looking statements. Important factors that could affect these statements include ongoing discussions with the SEC and OSC relating to their ongoing inquiries and the Company's accounting, the performance of films, the signing of theatre system agreements, the viability of new technologies, businesses and products, the timing of theatre system deliveries, the mix of theatre systems shipped, the timing of the recognition of revenues and expenses on film production and distribution agreements, risks arising from potential material weaknesses in internal control over financial reporting and fluctuations in foreign currency and in the large format, general commercial exhibition and out-of-home entertainment markets. These factors and other risks and uncertainties are discussed in the Company's most recent Annual Report on Form 10-K and most recent Quarterly Reports on Form 10-Q.
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SOURCE: IMAX Corporation