• The joint revenue sharing arrangements segment, which is comprised of
the provision of
IMAXtheater projection system equipment to
exhibitor in exchange for a certain percentage of box-office
and in some cases, concession revenue and a small upfront or initial payment. • The other segment, which includes certain
IMAXtheaters that the Company owns and operates, camera rentals and other miscellaneous items. • Film • The film production and IMAX DMR segment, which is comprised of the production of films and performance of film re-mastering
• The film distribution segment, which includes the distribution of
films for which the Company has distribution rights.
• The film post-production segment, which includes the provision of film
post-production and film print services. The Company's Management's Discussion and Analysis ("MD&A") of Financial Condition and Results of Operations has been organized by the Company into two primary reporting groups - IMAX Theater Systems and Film. Each of the Company's reportable segments, as identified above, have been classified into one of these broader reporting groups for purposes of MD&A discussion. The Company believes that this approach is consistent with management's view of the business and is not expected to have an impact on the readers' ability to understand the Company's business. Management feels that a discussion and analysis based on its reporting groups is significantly more relevant as the Company's consolidated statements of operations captions combine results from several segments.
Three Months Ended
The Company reported net income of
$11.8 millionor $0.18per basic share and $0.17per diluted share for the second quarter of 2013, as compared to net income of $11.0 millionor $0.17per basic share and $0.16per diluted share for the second quarter of 2012. Net income for the second quarter of 2013 includes a $3.1 millioncharge, or $0.05per diluted share, for stock-based compensation (2012 - $3.7 millionor $0.06per diluted share). Adjusted net income, which consists of net income excluding stock-based compensation expense and the related tax benefit, was $15.0 million, or $0.22per diluted share, in the second quarter of 2013, as compared to adjusted net income of $14.7 million, or $0.22per diluted share, for the second quarter of 2012. A reconciliation of net income, the most directly comparable U.S. GAAP measure, to adjusted net income and adjusted net income per diluted share is presented in the table below: Three Months Ended Three Months Ended June 30, 2013 June 30, 2012 Net Income Diluted EPS Net Income Diluted EPS
Reported net income
$ 11,816 $ 0.17 $ 11,034 $ 0.16Adjustments: Stock-based compensation 3,125 0.05 3,694 0.06 Tax benefit of items listed above 31 - 7 -