IMAX Announces $100M Share Repurchase Program Increase

By Greg Peters • Saturday, June 14 10:16 • Permanent Link

IMAX Corporation (NYSE: IMAX) has announced a significant increase in its share repurchase program, adding $100 million and extending the program by one year through June 30, 2027. This brings the total share repurchase authorization to $500 million, with approximately $250 million still available for repurchase. Since the program began on July 1, 2017, the company has repurchased 15.1 million of its common shares, representing approximately a 23% net reduction in shares outstanding, at an aggregate purchase price of $249.3 million.

These figures indicate a substantial commitment to returning value to shareholders through the reduction of outstanding shares and the deployment of capital for repurchases. The extension of the program signals a continued focus on this strategy for the foreseeable future.

The company's willingness and ability to repurchase shares is evident in the significant amount of the program already utilized, and the remaining availability indicates the potential for further repurchases in the future. The decision to extend the program suggests confidence in the company's financial position and cash flow generation.

IMAX Corporation's commitment to enhancing shareholder value through the repurchase program aligns with its status as an innovator in entertainment technology and its position as a major theatrical distribution platform for event films globally. This move may also reflect management's confidence in the company's future prospects and a belief that its current stock price undervalues the business.

Investors and analysts will likely be watching for updates on the utilization of the remaining authorization and the impact of the repurchases on the company's capital structure and earnings per share. The extension of the program and the significant amount already repurchased are tangible indicators of IMAX Corporation's dedication to delivering value to its shareholders. Following these announcements, the company's shares moved 3.7%, and are now trading at a price of $28.60. For the full picture, make sure to review IMAX CORP's 8-K report.

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