IMAX’s big screens translate into bigger profits for company
Ticket sales for theatrical releases digitally remastered for IMAX’s (Nasdaq: IMAX) screens this past quarter clocked in at roughly $115 million, up 37 percent from a year ago.
“Even excluding ‘Avatar’ completely from our 2010 results, our per-screen average through the first six months is $647,000, a 13 percent increase over the same period in the prior year,” CEO Richard Gelfond points out.
IMAX will have to share those millions with movie studios and exhibitors. However, its recent moves to team up with AMC and Regal through joint-venture deals give it a little more skin in the game.
Success on the big screen also helps IMAX grow its global empire. It recently announced a deal for five new screens in the Philippines, upping new screen signings to 89 so far this year. There were just 35 new screens scheduled at this point last year.
The larger IMAX’s base of theaters is, the more lucrative each theatrical release becomes. Some multiplex chains are trying to cobble together rival platforms, but they typically can’t do much more than just play the same film on a larger screen with a beefed-up sound system. It takes millions to remaster a movie for an optimized IMAX experience, and that’s where IMAX will continue to stand alone. (IMAX is a “Motley Fool Rule Breakers” recommendation.)
Ask the Fool
Q: How can I be a socially responsible investor? – P.F., Norwalk, Conn.
A: First off, understand that there are many social issues to consider. A company may have many women in management and not produce tobacco, but it might pollute the environment. It’s hard to find completely objection-free organizations.
Still, you do have several options for socially responsible investing (SRI). For starters, you can invest in a socially responsible mutual fund. As with most funds, not all SRI funds have above-average records. Still, some do, such as the Neuberger Berman Socially Responsive Fund (NBSRX), the Appleseed Fund (APPLX) and the Parnassus Equity Income Fund (PRBLX).
Learn more about SRI investing and issues at www.socialinvest.org, www.socialfunds.com, www.csrwire.com and www.corpwatch.org. You can also visit the websites of firms that run responsible funds, such as www.calvert.com, www.domini.com, www.paxworld.com and others.
Alternatively, seek out companies whose practices you approve of. One spot where you can research various individual firms’ social track records is www.socialfunds.com/csr.
If you’re not online, check out these books: “Socially Responsible Investing for Dummies” by Ann Logue (For Dummies, $25) and “Compelling Returns” by Scott J. Budde (Wiley, $30).
Q: If a mutual fund closes its doors to new investors, is that a bad sign? – T.N., Mankato, Minn.
A: It’s usually a good sign, suggesting that the fund managers recognize that they’re having trouble finding enough top-notch places to invest their growing pile of shareholder money. (When a fund grows enormous, it’s harder for managers to earn high returns because they have to spread the money out more.)
About 13 years ago, a friend who worked for sound card maker Aureal Semiconductor told me I should invest in it. Since I was a computer geek and thought Aureal made the best sound cards ever, I sunk $500 into the stock. About six months later, the company went out of business.
Helping drive it into bankruptcy was the cost of fighting a patent infringement lawsuit from Creative Labs. Aureal won the lawsuit, though. Yay. – Mike Lindley, Davenport, Iowa
The Fool responds: This is a sad story, as Creative Labs ended up buying much of Aureal’s remaining assets and its technology, and then didn’t have to pay royalties to it for its use. The lesson here is that it’s important to pay attention to a company’s cash position and how effectively it’s gaining or losing cash, and also to be mindful of any ongoing or potential lawsuits. It’s not always enough to have a superior technology. You also need the resources to protect and sell it.