IMAX To Eliminate About 100 Jobs, Repurchase Up To $200 Mln Of Shares

(RTTNews) - IMAX Corp. (IMAX) said that it expects to eliminate about 100 full-time positions, including positions at IMAX China, equal to roughly 14% of the Company's full-time global workforce.

The company noted that it will repurchase up to $200 million of its common shares by June 30, 2020. In addition, the Company is implementing a cost-reduction plan that will target approximately $20 million in annualized cost savings aimed at increasing profitability, operating leverage and free cash flow.

The Company's previously announced $200 million repurchase program, which will conclude this month, is expected to result in the total repurchase of more than 6.4 million shares and a 4% net reduction in shares outstanding since the program began in 2014. This includes second-quarter-to-date repurchases of 1.47 million shares.

IMAX expects to report an aggregate pre-tax restructuring and impairment charge of approximately $15 million in 2017 in connection with its cost-reduction efforts. The Company further expects approximately $11 million of the restructuring and impairment charges will be recognized in the second quarter of 2017. The Company anticipates the cost savings to take effect beginning in the third quarter of 2017.

IMAX said it will provide updated 2017 cost guidance on its upcoming second-quarter earnings call in late July.