Thank you for standing by, and welcome to IMAX Corporation's First Quarter 2025 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question and answer session. To ask a question during the session, you will need to press star one one on your telephone. To remove yourself from the queue, you may press star one one again. I would now like to hand the call over to Jennifer Horsley, Head of Investor Relations for IMAX Corporation. Please go ahead.

Good afternoon, and thank you for joining us for IMAX Corporation's first quarter 2025 earnings conference call. On the call today to review the financial results are Richard Gelfond, Chief Executive Officer, and Natasha Fernandes, our Chief Financial Officer. Rob Lister, Chief Legal Officer, is also joining us today. Today's conference call is being webcast in its entirety on our website. A replay of the webcast will be made available shortly after the call. In addition, the full text of our earnings press release and the slide presentation have been posted to the Investor Relations section of our site. Our historical Excel model is posted to the website as well. I would like to remind you of the following information regarding forward-looking statements. Today's call, as well as the accompanying slide deck, may include statements that are forward-looking and that pertain to future results or outcomes. These forward-looking statements are subject to risks and uncertainties that could cause our actual future results to differ. Please refer to our SEC filings for a more detailed discussion of some of the factors that could affect our future results and outcomes. Any forward-looking statements that we make on this call are based on assumptions as of today. We undertake no obligation to update these statements as a result of new information, future events, or otherwise. During today's call, references may be made to certain non-GAAP financial measures. Discussion of management's use of these measures and the definition of these measures as well as a reconciliation to non-GAAP financial measures are contained in this afternoon's press release and our earnings materials, which are available on the Investor Relations page of our website.

Thanks, Jennifer, and thank you everyone for joining today. IMAX Corporation got off to an excellent start in the first quarter. We banked nearly $300 million in global box office, our best first quarter ever. We've signed agreements for more than 100 new and upgraded systems year to date compared to 130 in all of 2024. And we kicked off a great summer slate with a run of eight consecutive film PrimeX releases. The fundamentals of our business have never been stronger. In recent weeks, that fact has been obscured by noise around tariffs, China, and speculation about the potential impact on the Hollywood slate. We've looked deeply at this issue. We've talked to every studio and our industry partners throughout China, cultivated across our thirty years of doing business in the country. And we're highly confident that the moderate reduction in Hollywood imports announced by China Film Administration will largely target films with limited box office potential in the market. A smaller budget kind of fare. Not the kind of films that drive IMAX Corporation's business. So we're not letting the noise distract us from the opportunity ahead. We drove double-digit growth in revenue and adjusted EBITDA in the first quarter, and adjusted EBITDA margin of 43%. The Hollywood slate is ramping up building to the year-end crescendo of Avatar, Fire and Ash in December. We've already seen select footage and are very enthusiastic. We've had many promising new locations set to open across high PSCA markets in Asia and Australia, North America, and the Middle East. And IMAX Corporation uniquely benefits from a very positive confluence of trends in global content. The rapid rise of big-budget, high-production value local language blockbusters from around the world and the continued resurgence of the Hollywood slate with releases from the biggest filmmakers and tentpole franchises lined up through the end of the decade. We continue to wield our leverage in the industry to provide a diverse dynamic, truly global programming slate. On the content side, first 2025 is shaping up to be a watershed year for our growing successful local language strategy. Chinese New Year exceeded our wildest expectations with $182 million in IMAX Corporation box office, triple our previous record. Like Top Gun Maverick, Oppenheimer, and Dune part two before it, Neza two became synonymous with IMAX Corporation. As we've earned more than $164 million to date with the film. We indexed 7.5% with the film in China on less than 1% of the screens, about double our average with local animated releases. As a reminder, IMAX Corporation collects a higher fee in China with local language releases than it does with Hollywood releases. We see tremendous opportunities ahead with international films. It's quite possible that IMAX Corporation delivers its highest-grossing local language films of all time in China, Japan, and India this year. In Japan, Demon Slayer Infinity Castle, the sequel to the highest-grossing Japanese film of all time, arrives in July followed by a global release in the fall. And in India, War two has the potential to join the ranks of India's biggest blockbusters when it comes out in August. These well-established markets are building bankable and often exportable franchises to rival Hollywood releases. And we're tapping into fast-growing film industries and priority markets like Saudi Arabia, Vietnam, Indonesia, and Thailand to expand our content portfolio and drive network growth. In 2019, local language film accounted for 12% of our total global box office. In 2023, that figure rose to 21%. And in the first quarter of 2025, it was 68% of our box office. We've already delivered more local language box office this year than we did in all of 2024. And we remain very bullish on a Hollywood slate that features more IMAX Corporation DNA than ever. Every Hollywood release scheduled from now to August was filmed with IMAX Corporation cameras. Just this past weekend, we delivered 20% of the domestic opening of Sinners, which was shot in part for IMAX Corporation with IMAX Corporation 70 millimeter film. And on Monday, Sinners continued its torrid pace in IMAX Corporation, dropping off very little from Sunday and delivering $2 million indicating a great hold is likely for this week. Yet again, when an author filmmaker like Ryan Coogler leans into IMAX Corporation, audiences heed the call and turn out for the platform in a big way. This outperformance is consistent with what we've seen with the big IMAX Corporation 70 millimeter releases like Oppenheimer and Dune part two. Sinners has also delivered our biggest domestic opening weekend ever for a horror film. Over the next few months, buzz is building for a film for IMAX Corporation late. Mission Impossible, The Final Reckoning will make a splashy debut at Cannes in just a few weeks, followed by the London and New York premieres in IMAX Corporation. Insiders are high on both Marvel's Thunderbolts and Fantastic Four. The trailers for Superman have racked up hundreds of millions of views online. How to Train Your Dragon screened to acclaim at CinemaCon. An early IMAX Corporation exclusive F1 presales are strong, and we have many IMAX Corporation exclusive elements and events throughout its promotional campaign. This year concludes with Zootopia two and Avatar Fire and Ash. The first two Avatar films earned more than $250 million each in IMAX Corporation. 2026 kicks off with the Avatar carryover and features Christopher Nolan's The Odyssey as well as Avengers, Star Wars, Super Mario Brothers, Toy Story, Greta Gerwig's Narnia, and the Dune sequel from Denis Villeneuve. And 2027 already boasts another Avengers and Star Wars, as well as Batman two and Frozen three. Once viewed as a competitive threat, streaming services are leaning into IMAX Corporation in a big way. Whether it's our exclusive window for Greta Gerwig's Narnia for Netflix, the longest theatrical window Netflix has ever granted at 28 days, or Apple prioritizing an IMAX Corporation release before securing the studio partner for F1, or Amazon purchasing our original documentary, Blue Angels, and committing tent poles like Project Hail Mary and Mercy to the film PrimeX program. And as we open our content aperture, we continue to drive incremental box office with our growing slate of events and experiences, including a record-breaking exclusive debut of Becoming Led Zeppelin, and this weekend's Pink Floyd Live at Pompeii. Our exclusive re-release of Studio Ghibli's classic Princess Mononoke, which earned $4 million in its debut, the biggest IMAX Corporation domestic opening ever for a local language film, and our sold-out live sports test in France with the annual Le Classique football match. Global network and technology, looking at our global network, our system signings and installations are a strong indicator of anticipation among exhibitors and the prevailing sentiment that IMAX Corporation will be the preferred choice for consumers worldwide as the slate rolls out. We installed 21 systems worldwide in the first quarter, our second-best first quarter ever for installs. And we've signed agreements year to date for 101 new and upgraded IMAX Corporation systems worldwide. This includes a major agreement with AMC which will add 12 new IMAX Corporation locations and upgrade virtually its entire IMAX Corporation footprint in the US to IMAX Corporation with laser. We also continue to expand our roster of partners in the US. This year alone, we've opened at least 11 locations with regional partners that we've signed up in the past 12 months. Internationally, Japan continues to be a priority market for us. Year to date, IMAX Corporation has now signed agreements for 11 new and upgraded locations in Japan, including a rare location with two auditoriums in Tokyo. We also expanded across Western Europe with our fast-growing partners at Kannapolis, in a multi-territory agreement spanning France, Belgium, Spain, the Netherlands, as well as the US and Canada. To close, it's a very exciting time at IMAX Corporation. Our business has proven to be resilient and able to thrive in many different economic cycles. We have no doubt that will remain true. We have visibility to a more promising slate through the end of the decade than we've ever seen in the future. And a strong trajectory for continued network growth. We look forward to seizing the opportunity to deliver results for all of our shareholders. Thank you. With that, I'll turn it over to Natasha.

Thanks, Rich, and good afternoon, everyone. In the first quarter, IMAX Corporation exceeded its expectations across global box office, system signing, system installations, and adjusted EBITDA. Our results in the quarter were driven by record box office and 40% year-over-year growth in IMAX Corporation system installations worldwide, and this outperformance again highlighted the operating leverage in our model. With a total adjusted EBITDA margin of 42.7%, we are on track to achieve our guidance for the full year including a record $1.2 billion in global box office. Taking a closer look at our Q1 results, we delivered revenues of $87 million up 10% from the prior year first quarter. Content Solutions revenues of $34 million grew year over year with gross margin of $24 million up 7% driven by our record Chinese New Year box office and our overall programming strategy, which featured a mix of content including Hollywood, local language, re-releases, concert films, and sports. Our best-ever Q1 box office also led to a high Q1 global market share of 3.5% on less than 1% of screens globally, and a record of 5.4% in China, both of which reflect IMAX Corporation's outperformance in the quarter. Technology products and services revenues of $51 million was up 17% year over year with gross margin of $29 million up 23% driven in part by growth in global box office. The quarter also saw growth in installations, 21 versus 15 systems in the prior year, which included a higher mix of sales-type arrangement. The geographic mix of installation was evenly spread with seven systems in each of domestic, rest of world, and China. Exhibitors globally are shifting into investment mode in advance of the strong IMAX Corporation slate. Similarly, encouraging with the strength in Q1 signings, which at 95 systems was up 87 from the prior year and included signings in high per screen average markets such as the US, Europe, and Japan. The strong Q1 signings list the IMAX Corporation backlog to 516 systems, up 74 systems or 17% year over year, representing a solid pipeline for future global growth of the IMAX Corporation network. The gross margin performance in Q1 of 61% increased 200 basis points year over year reflecting high incremental profit flow through from the stronger box office performance. Operating expenditures defined as research and development and selling, general and administrative expenses, excluding stock-based compensation, was $30 million an increase of $950,000 year over year driven primarily by timing of expenses. We continue to take proactive steps to enhance operational efficiency and reduce annual costs while optimizing IMAX Corporation's organizational structure including eliminating redundant roles and centralizing select functions, which positively impacts both margin and office. Overall first quarter total consolidated adjusted EBITDA of $37 million increased $5 million or 15% year over year, driven by the higher revenues and gross margin. This resulted in an adjusted EBITDA margin of 42.7% up over 200 basis points year over year. First quarter adjusted EPS was $0.13, which includes a higher year-over-year deduction for non-controlling interest associated with the strong IMAX Corporation China results. The tax rate was 47% in the quarter primarily reflective of the geographic mix of profits that led to a higher tax valuation allowance of $3.2 million or negative $0.06 impact year over year. For the full year, we expect the tax rate to be at a more normalized rate based on historical trends and our geographic forecast of annualized profit. Turning to cash flow and the balance sheet. Cash flow from operations provided $7 million in Q1 which is an $18 million improvement over the prior year period. A good start to the year given seasonally Q1 is generally a lower cash flow quarter based on the timing of revenues and payments such as annual compensation payout. Similar to total adjusted EBITDA, the dynamics of cash flow are quite positive as box office expands leading to incrementality particularly considering the cash flow characteristics of our joint revenue sharing contracts where the capital expenditures at the beginning of an average ten-year contract term. During Q1, we used our available capital to invest in the business including $12 million spent on growth CapEx related to partnering with exhibitor customers to grow and upgrade the IMAX Corporation network through joint revenue sharing arrangements. Our capital position remains very strong with cash of $97 million. Debt excluding deferred financing costs was $282 million. As a reminder, $230 million of our debt comes from our convertible senior notes due in April 2026 that bear an interest rate of 0.5% per annum with a capped call leading to a $37 per share conversion price. With our strong liquidity position and available facilities, we have the ability to be opportunistic as we assess the timing of when to address these notes. Our current available liquidity is over $400 million, which includes over $300 million in available borrowing capacity under the company's various revolving facilities. We are confident about our outlook for 2025 and beyond. While still early in the year, we are ahead of our expectations and we have started the second quarter off strong with good box office from Minecraft and Sinners, which leads into summer titles with larger potential, including five more films for IMAX Corporation titles in Q2 alone. The visibility into IMAX Corporation's future slate has never been as good including a standout 2026 and the significant runway to grow our network further is clear. As IMAX Corporation location zones are less than 50% penetrated. Longer term, we are confident in our future as the demand for IMAX Corporation increases and we achieve greater network scale, deepen our relationships with exhibitors, studios, and filmmakers, and broaden our content aperture to distribute even more content across our global platform. We believe with the strength of the IMAX Corporation brand, our strong balance sheet, and business model that IMAX Corporation is well-positioned to deliver sustainable growth expanding margins, and increasing cash flows in 2025 and beyond. With that, I will turn the call over to the operator for Q&A.

As a reminder, to ask a question, you will need to press and one follow-up to allow everyone the opportunity to participate. Our first question comes from the line of Eric Wold of Texas Capital Securities. Please go ahead, Eric.

Thank you. Good afternoon, everybody. Couple of questions. I guess one question on China and one on the made for IMAX Corporation outlook. Rich, you mentioned the expectation that any modest reduction in Hollywood film imports, you know, would be focused on, you know, the smaller budget films that would not really impact, you know, the IMAX Corporation slate. So I have to assume then that there's also not been any adverse shift in tone from trying to give around kind of, you know, in process signing discussions or the timing of planned installation.

Hey, Eric. We're coming off our best quarter in China ever. We just reported today. And that's what affects the theater owners and people making movies and things like that. So I would say there's not only not a reduction in activity, in the market within China, there's an increase. There's more incoming calls. There's more interest in movies. You know, we were just the key member of the Beijing Film Festival. This weekend. Where a panel talked about the future of film and there was almost no one in the panel who didn't talk about IMAX Corporation and how important it was because they're looking at coming up in their gene and then, you know, three a record by over three times of any film we've ever done. So the narrative in China is completely, you know, positive in a very material way. In terms of, you know, the reduction of films moderate reduction coming in, let's just do a reality check. So Thunderbolts opens in a week and a half. That's been approved. It's getting added today, they dated Lilo and Stitch. In China. There have been three other films submitted in the last couple of weeks. You know, we've talked to almost every Hollywood studio and they expect all their major films to get in in discussions with the Chinese government. Our relationships in China have told us that, you know, the kind of reductions if there are any, would be kind of the less financially broad ones. Than the kinds of films IMAX Corporation typically plays. So, you know, I think, you know, I remain very confident about China in a lot of ways. And I don't think that the moderate film reduction will have material impact on IMAX Corporation.

No, that's perfect. And then my follow-up on you've got a May PrimeX with now the big run of May PrimeX films. Starting, I guess, the centers moving through the summer. You know, what is the primary gating factor to having a larger percentage of the film shot with IMAX Corporation cameras in the years ahead? Is it purely the number of IMAX Corporation cameras that are available to be used? Do you need to be broader sign-off from a greater number of studios and producers? And then, you know, kind of what is that right number, do you think, without potentially diluting, you know, the kind of the made for IMAX Corporation cache?

So, Eric, I'd say it has more to do with slots than anything else. So, you know, for example, we have eight films in a row coming right now. So there just aren't more films we could have done in this period of time. And plus, we really want to be discriminating about it. So I don't think you should look at our success as how many we're doing in a particular period of time, because I think it needs to be the right kind of film. For us to do it. And as a matter of fact, in terms of the film camera, that’s a little bit different. There is a limiting factor there in the number of cameras on the digital side, there isn't. But right now, as you know, the Nolans are shooting Odyssey with a significant number of IMAX Corporation cameras which we're very excited about, obviously. For next summer. But we can't really, you know, shoot more than two simultaneously with the film cameras. And once they're done shooting, then I think you'll see us film some other IMAX Corporation made films cameras. Once that concludes, somewhat later this year. But I'd say, you know, that I don't want you to think too much about supply of cameras. It's much more an issue of the right slots and the right content. Perfect. Thanks, Mike.

Thank you. Our next question comes from the line of Chad Beynon of Macquarie. Please go ahead, Chad.

Hi. Good afternoon. Thanks for taking my question. Rich, another one on China, but focusing on the positive outcome for the first quarter. I know I guess, you know, thinking about the last several quarters, it was your focus to zone in on the Tier one and Tier two in terms of new distribution zones. But as we look at the first quarter outperformance in China, can you talk about where that strength came from? And if it did come from tier three to five cities, if that might change kinda the outlook of, you know, the aperture of your zones in that market. Thank you.

I don't have that data at my fingertips, Chad. However, I believe it was uniform across all markets. And I think, you know, there are a couple of factors for it. Obviously, the movie itself was very special. And, you know, that drove audiences. As you know, as said in my prepared comments that our market share was up significantly, especially in the animation area. And, you know, the other thing was on the marketing side. We tried a very different marketing approach and we, you know, we kind of joint ventured with a number of entities including the studio that made Nezhan. And we did combined promotions. And then we've leaned much more into the right social media. So TikTok was a key component of, you know, where we placed our marketing. You know, we're trying to reexamine not only in China but throughout the world. Historically, films are marketed on billboards and bus stations and, you know, it's transitioned somewhat. But we felt that this film in particular that social marketing and that our investment in that was extremely successful. And I think that had a lot to do with the result.

Okay. Great. Thank you. And then with respect to the signings announced in the quarter and around CinemaCon, has anything changed just in terms of the general terms or, you know, how you guys are thinking about JVs versus SDLs? Not getting into specific contracts, but just given, you know, the weight of the signings in the first quarter, if anything changed generally in terms of how you're talking to future partners? Thank you.

Yep. Thanks. No. Not at all. And as a matter of fact, you know, our signings were quite diverse. Know, as I said in my script, we have over a hundred now. Just to put it in context, we had a hundred thirty for the year last year. But demand is very strong. And I think what's fueling that is the film slate for this year in 2026 and how far out the backlog of films goes. But in terms of our terms, no. And I'll tell you, you know, kind of something you'll find interesting. So given the success of Najaf, we discussed whether we would want to sign a lot more theaters in China because, obviously, the IMAX Corporation brand and market share is going in the right direction. And we said no, we want to be as careful as we always were. In terms of who the partner is and what the terms are and what the box office is. So we're looking at the same ROI calculus that we always have.

Thank you. Our next question comes from the line of David Karnovsky of JPMorgan. Your question please, David.

Hey, thank you. Rich, the actual windows are a big topic. With exhibitors and studios right now. And I know it's much less of an issue for IMAX Corporation given you typically carry movies for a week or two, but you have screened films recently with Windows T VOD. I think it's short of seventeen or twenty-four days. And so I'm curious on your view of how you kind of see this issue, whether there's risk now or maybe whether there's any risk to consider down the line?

Yeah. So, you know, I don't we don't really pay attention to what the PVOD windows are because we don't really view that as competitive. With IMAX Corporation, you are right. That, you know, exhibitors are really focused on that issue. And as you know, at CinemaCon, that was a big subject type. And, you know, I definitely understand windowing being important to exhibitors. But, you know, we had a very good quarter because we have global diversification. As you know, the North American exhibitors were very challenging quarter. Again, you know, I know this is gonna be controversial, but, you know, I think they should really focus on the kind of content. And, you know, getting more content, which we're trying to do, with foreign language films and alternative things and less on the window is thirty or forty-five days. I just don't think that's gonna make a material difference. Their business at the end of the day. And for us, it makes, you know, virtually no difference at all. I we're sympathetic to, yeah, not trouncing on their theatrical release. But, you know, I think just way too much has been made of it. And, you know, I don't think that's gonna save the industry. I think more good content and more diversified content is much more important.

So our guidance for the year, we reiterated is 145 to 160 for installations. It's just simply a timing mix, David, as to, you know, exhibitor came to the table and wanted to install sooner than we had originally planned, which is a good thing. I mean, ahead of the slate that's coming up, it is in everyone's best interest to get installed, but it also comes down to timing of capital allocation from their end. And what they're able to do. And so from a mixed perspective and timing, we still believe the back end of the year is going to be is going to be the heaviest period of time. Normally, we install 50% of our systems in the last quarter. And so I would say it's the same sort of mix as last year with respect to timing. And then mix of JV versus sales, I as well, we still reiterate the same guidance we gave. Where it would be heavier towards JVs, the year, which is good as we look towards capturing the incrementality on the box office which leads into the answer for your second question with respect to the margin and the content solution. That is a prime example of what we've been talking about our prior calls with respect to incrementality. When you start to work through the ability of achieving these higher box office levels, they flow it flows mostly to the bottom line without additional cost. You know, if you look through we do have a correlation slide in our investor presentation on the website. But if you look through that, when you start to see box office levels over $250 million, you can start to see a higher flow-through incrementality of about, you know, 85% of every dollar is flowing right through to from revenue to EBITDA and I think that's where you're starting to see that come through on that content margin. Also coupled with that is Q1 it was heavily driven by Chinese New Year. And so local language content does cost us less from a IMAX Corporation remastering perspective and also from a marketing perspective. Rich touched on it just now, but marketing through social media channels versus print, is obviously less expensive as well. So that gave us the opportunity on the margin there too.

Thank you. Our next question comes from the line of Eric Handler of Roth Capital. Please go ahead, Eric.

Rich, I wonder if you could just give a little insight into how much runway do you have in terms of visibility for what movies are gonna be shown in China? In Q2 and maybe talk about some other areas for local language content around the world in Q2.

Yeah. We have an awful lot of visibility Eric, into China. As a matter of fact, earlier today, we had a REMAX China board meeting, and we went through the slate for the rest of the year. And, you know, Natasha, jump in if you want to. But I think there were like six or seven local language movies that have already been announced. For this year. A number of them filmed with IMAX Corporation cameras, a number of them, you know, we've been on set there. We've seen clips. We've interacted with the studios and we feel pretty good about it. And if you look for a trend, Eric, that's gone more favorable to us over time. It used to be a little bit more of a black box process, but the China film regulators have gotten better at kind of giving us approvals more in advance for what’s coming in the film slate and what the films are about. And the studios and the filmmakers have been much more willing to show us footage and put together marketing plans. So again, I know, I know some of the names. I don't know these films well enough to talk about them. But I could say that our CEO of IMAX Corporation China is quite optimistic about the slate of local language films for this year.

Eric, if it's helpful, we have added a slide in our deck as well, but there's ten local languages confirmed in China that we put on that slide. To be a little more helpful to everybody to see visibility into this year. As well, there's the Hollywood slate as well that we expect to come.

Thank you. Our next question comes from the line of Steven Frankel of Rosenblatt Securities. Please go ahead, Steven.

Thanks, Rich. Given the step up in the number of film for IMAX Corporation titles. And, traditionally, these very labor-intensive DMR processes. What are you doing to make sure that featuring more film for IMAX Corporation doesn't cause some incremental pressure on gross margin?

Yeah. So first of all, DMR conversion is not labor-intensive, and we've made a lot of progress. Over the years. So automating it. Obviously, there's some quality control aspects. We have to check it and make sure it's right. Second of all, for a lot of our foreign language titles, especially those in Asia, India, and China, we outsource, so we partner with local firms there that help with the DMR process, and that was facilitated by us putting DMR in the cloud. So our margins have gotten better. On the DMR side. Over the years. And, you know, we continue to look at that aspect of our business. So I know that's a priority for us, continuing to evolve the process and continuing to make it more automated. So I don't really see margins being squeezed. You want to add anything, Natasha?

I think the only thing, Steve, is, you know, the two-week windows, and I what I'm hearing from your question is that if you keep doing film for IMAX Corporation and they're back to back, you're gonna lose the opportunity for incrementality of playing it longer. But I don't see that as something necessarily hindering us in that the first weekend and the second weekend are usually your biggest box office recoupment period. And then we always have the ability to find time in other spots during the year to bring titles back or to swap things in. I mean, you can go back to Maverick, which was a couple of years ago, but we brought it back four to five times throughout a year. And so I think we've done that with other titles. We brought back re-releases. So there's whenever we see something that plays really well across the IMAX Corporation network, we look for opportunities to bring it back.

Thank you. At this time, we have time for one last question. Our final question comes from the line of Patrick Scholl of Barrington Research. Please go ahead, Patrick.

Hi. Thanks for taking the question. Was just wondering if you could drill in a little bit more on like, the available dating slots for, like, the film for IMAX Corporation. And just managing like, international distribution if that also kind of conflicts with expanding the films or IMAX Corporation lineup in international markets.

Yeah. Well, we do the local language films as you know, like, in the other countries, we use IMAX Corporation cameras. But it, you know, you have to look at the slate and look at what the competition is from Hollywood. And kind of see where you have open shows and open times and ways to do it. But, you know, we've been able to balance it. I think that's what you were asking, Mark. I'm missing the point of your question. By the way, operator, we have time for a few more questions if there are any.

Hey, Rich. Natasha. I'm Jennifer. Great first quarter, guys. Congratulations. Thanks for squeezing us in, Rich. Appreciate that. Obviously, Rich, very unique environment here. We're all sort of operating through and we definitely appreciate your confidence. Very nice to hear in terms of film product, giving you the in the China. I guess, how do you think about the risk that Hollywood film studios could delay films until they're 100% confident that the films would be approved for distribution in China? I guess, is Are you are you seeing a mirroring in confidence, I guess, from the Hollywood studios and then the second question, Rich, do Chinese consumers view IMAX Corporation as an American brand? And if so, if you still have an account or would you expect to encounter any pushback or brand sensitivity as a result? And, obviously, I realize you go a bit across the first quarter. And a significant market share. But I'm just wondering if this sort of character continues to there could be some pushback on the brand or not. Thanks, guys.

So Mike, because we're buddies, I'm gonna be exceptionally blunt. About films getting into China. Four different times. And, you know, maybe I wasn't clear Thunderbolts is opening in a week. There are five other films submitted. We've been told by the studios that they've been told by the Chinese that the films have been getting in. And we've been told that by the Chinese. And we're talking to studios about the release patterns of those. So I'm not very concerned about that. Could there be small films that don't get in? There could be. But I don't think it's gonna have a material impact on our business. Number two, historically, 25% of our profit comes from China. And this year, we've already had a first quarter that blew away, you know, any expectation we had from the year. So, you know, if China suffered from small films, it's virtually it's a very little concern to me. And don't know. Operator, maybe not how many more questions we could have so I could answer more about China. But the second part, Mike, was the consumer of the brand. So IMAX Corporation brand in China is remember, we have 800 theaters. It's like a local prestige brand. And in our brand surveys, people value it more in China than they do anywhere else in the world. And, you know, I probably, you know, this is probably a minor point. But IMAX Corporation is a Canadian company. Those of you who don't know that, so, you know, I don't know what the Canadian backlash is in China. But, you know, my next time I'll buy you a drink to apologize. For too many micromanaging of the China questions. So thank you very much, operator, and thank you all for joining. I mean, the pivot time for IMAX Corporation is right now. I mean, we've talked about now for a pretty long time. You know, we've got eight film PrimeX movies in a row. Coming out. Two of them that we started with Minecraft and Sinners, both beat our budget. For the quarter. Minecraft has and Sinners is on a path to beat our budget. After that, we have Mission, Train Your Dragon, Formula One, Superman, Fantastic Four. I mean, there's never been a period of time where that kind of lineup of film for IMAX Corporation has existed in front of us. And, you know, this is it. We've talked about it for a long time. Now it's the time to happen, and it's all happening in the aftermath. Where I have to say we hardly got lucky in the first quarter. I mean, we had a Chinese film which beat our previous record, by over three times. And we have that in the bank. So, you know, I just feel very good about our business, and, you know, very confident about the course we're on. And now it's our turn to execute. And we believe we will. And I thank you all for joining and for your questions.

This concludes today's conference call.