Analysis Of Financial Health Of Imax Corporation

The motion picture is the main driving force of the entertainment market, one of the biggest export markets, the United States. Movie industry is divided into three stages: studio production, distribution, and exhibition. Movie studios, is the lifeblood of the industry. No matter the size of the studio, it is a product of integration and release. The next stage is the distribution. The distribution is an intermediary between studios and exhibitors. Configuration of distribution needs to complete all the steps of membrane, including marketing, logistics technology and management. The manufacture and exhibitors are coordinated by distributors. Finally, theater owners, control single screen cinemas in the local community the reuse of national chain. Exhibitors are not completely independent dealer's vertical integration, and the pursuit of their own profit maximization strategy. The three main source of enterprises income: concessions, advertising, at the box office. The exhibitors seek profit maximization sales tickets and discount. In general, revenues and profits limited control. Attendance can be profitable sales and advertising to make concessions, but there are significant coupon limit per capita sales, sales price seems to have reached a maximum value. Advertising revenue and profits is still attractive avenue, but the audience hate.

To provide an analysis and make recommendations to increase revenue in the movie exhibition industry.

Interactive media and studio entertainment are currently generating the least revenue. This is due to the high cost to produce films for studio entertainment and the fact that interactive media is a relatively new business channel for Disney. However, out of all business lines, these two have the most potential in their industry and are therefore very attractive. Interactive media is a hot trend that Disney will be able to capitalize on due to its acquisition of Playdom. While films are very expensive to produce and distribute, the profit potential from Marvel and Pixar make the industry very attractive overall.

The Canadian entertainment industry that is served by Cineplex has been recording sustained growth since 2011 where a growth of 5 percent was recorded. PwC’s Global Entertainment and Media Outlook for 2014-2018 (PWC, 2014) indicate that the industry is set for a take-off. The industry has a

a.) The income statement, also called the profit & loss account (P & L), is used to illustrate a company’s revenues and expenses over a particular period of time. It shows the net profit and/or loss for the given period (the difference between the business’ total income and its total costs). It also allows shareholders to see the performance of the business and if it has made an acceptable profit.

* An income statement is a report that contains information in regards to an organizations’ assets and financing in order to obtain those assets that is collected over a certain period of time

(Ohara, 2007) Most financial statements are made public for the benefit of stakeholders and potential investors. The bottom-line is that financial statements are the main source for analyzing how well a company is operating. The income (or profit and loss) statement is simply a report card of how much activity (revenue) was performed in the period, how profitable that activity was (gross profit/loss), and what it cost the contractor to run the business (overhead). (Murphy, 2006)

The income statement (IS) also known as the profit & loss statement provides the net gain or net loss of a business entity. The importance of the income statement is to evaluate profitability of a company (Finkler, Jones, and Koyner, 2013). The best use of the IS,

An income statement, also known as a profit and loss statement shows how much money a company has spent over a period of time. It also shows the costs and expenses that are associated with earning that revenue. It is an important measure of the company’s profitability. The simple building blocks of a net income formula are revenues minus expenses equal net income.

Income statements generally report on a period matching the standard accounting periods of the business, or may cover a specific period as defined for research purposes. At the core, the income statement provides a key measure of the profitability of a business. This differs from the liquidity or cash on hand of a business, but instead examines the business’ ability to bring in revenues that exceed expenses over a given period of time (Hofstrand, 2009).

Ans: The income statement lists the revenues minus expenses or costs of goods sold and operating expenses and will reveal a net income or net loss (Revenues – Expenses = Net Profit or Net Loss). Income statements show how much money a company made and spent over a period of time. Income Statements cover a specified period of time usually annually or quarterly. An Income Statement represents only one limited view of the companies’ net profits or net loss after all revenues are listed while expenses (costs) and taxes are subtracted. The Income

This Income Statement also known as the Earnings Statements or statement of operation, is one of the four Financial Statement used by accountants, business owner’s, and investors. The Income Statement provides a detailed look into how profitable a business has been over a designated period of time.

Motion pictures are a key driver of the market for entertainment products, one of the largest export markets in US. Motion picture industry consists of three stages: studio production, distribution, and exhibition. The studios produce the lifeblood of the industry, the films that are its content. The biggest players at this level are the majors, big studios which integrate production and distribution, as do the slightly smaller mini-majors. The next stage is distribution. Distributors are the intermediaries between the studios and exhibitors. Distribution entails all steps following a film’s artistic completion including marketing, logistics, and administration. Distributors coordinate the manufacture and distribution of

Financial data shows that the company has recorded revenues of $ 788 million in the second quarter of 2010, with a reduction of $194 million if we consider the revenues of the same period the year before. Blockbuster have finally filed for Chapter 11 Bankruptcy carrying $900 million in debt. (Blockbuster Inc – Company profile, 2009).

External environment is very important for managers to make decision about the company’s direction and strategy. In order to gain a deep understanding of Blockbuster’s industry and competitive environment, the following seven questions need to be answered. Q1: What are the industry’s dominant economic features?