IMAX Corporation (NYSE:IMAX) Files An 8-K Costs Associated with Exit or Disposal Activities
Item2.05
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Costs Associated with Exit or Disposal Activities |
On June12, 2017, IMAX Corporation (the Company) announced a
cost-reduction plan that includes staff reductions and the
consolidation of certain leased facilities. As part of its
cost-reduction plan, the Company expects to eliminate
approximately 100full-time positions, including positions at IMAX
China Holding, Inc., equal to roughly 14% of the Companys
full-time global workforce. As a result of the cost-reduction
plan, the Company expects to report a pre-tax aggregate
restructuring and impairment charge of approximately $15 million,
comprised of approximately $9 million in costs related to
severance pay and other employee-related termination benefits,
with the remainder attributable to other restructuring charges
and long-term asset impairments. Of the total charge,
approximately $9 million is expected to be in the form of
cash-based expenditures. The Company further anticipates that
approximately $11 million of the restructuring and impairment
charges will be recognized in the second quarter of 2017, and the
cash expenditures will be substantially completed by the fourth
quarter of 2017. The foregoing amounts and timing may vary
materially based on various factors.
| Item7.01 | Regulation FD Disclosure |
On June12, 2017, the Company issued a press release announcing
the Companys cost-reduction plan as well as a new $200million
share repurchase program, a copy of which is attached hereto as
Exhibit 99.1.
This Current Report on Form 8-K, including the Exhibit attached
hereto, contains forward looking statements that are based on
managements 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. Risks and uncertainties that may
affect future results include, but are not limited to, those
discussed in the Companys most recent Annual Report on Form 10-K
and Quarterly Reports on Form 10-Q.
The information in this Current Report on Form 8-K, including the
Exhibit attached hereto, shall not be deemed to be filed for
purposes of Section18 of the Securities Exchange Act of 1934, as
amended (the Exchange Act), or otherwise subject to the liability
of that section, and shall not be incorporated by reference into
any registration statement or other document filed under the
Securities Act of 1933, as amended, or the Exchange Act, except
as shall be expressly set forth by specific reference in such
filing.
| Item9.01 | Financial Statements and Exhibits |
| (d) | Exhibits |
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ExhibitNo. |
Description |
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| 99.1 | Press Release dated June 12, 2017. |
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About IMAX Corporation (NYSE:IMAX)
Imax Corp is a Canada-based entertainment technology company. The Company operates through the following segments: the IMAX systems, the theater system maintenance, the joint revenue sharing arrangements, film production and IMAX DMR, film distribution, film post-production and other. The IMAX systems segment designs, manufactures, sells or leases IMAX theater projection system equipment. The theater system maintenance segment maintains IMAX theater projection system equipment in the IMAX theater network. The joint revenue sharing arrangements segment provides IMAX theater projection system equipment to exhibitors. The film production and IMAX DMR segment produces films and performs film re-mastering services. The film distribution segment distributes films. The film post-production segment provides film post-production and film print services. The other segment includes certain IMAX theaters that the Company owns and operates, camera rentals and other miscellaneous items.
