Good day and welcome to the IMAX Corporation First Quarter 2015 Earnings Conference Call. All participants are currently in a listen-only mode. Following the presentation, we will conduct a question-and-answer session. Today's conference is being recorded. At this time, I would like to turn the conference over to Ms. Teri Loxam. Please go ahead.

Thanks, Michelle. Good morning and thanks for joining us on today's first quarter 2015 earnings conference call. Joining me today is our CEO, Rich Gelfond; and our CFO, Joe Sparacio, who'll have prepared remarks. Also with us today is Greg Foster, our Head of Entertainment; and Rob Lister, Chief Legal Officer and Head of Business Development. I would like to remind you the following information regarding forward-looking statements. Our comments and answers to your questions on this call may include statements that are forward-looking and that they pertain to future results or outcomes. Actual future results or occurrences may differ materially from these forward-looking statements. Please refer to our SEC filings for a more detailed discussion of some of the factors that could affect our future results and outcomes. During today's call, references may be made to certain non-GAAP financial measures as defined by Regulation G of the Securities and Exchange Commission. Discussion of management's use of these measures and the definition of these measures as well as reconciliation to adjusted EPS and adjusted EBITDA, as defined by our credit facility, are contained in this morning's press release. The full text of our first quarter earnings release, along with supporting financial tables, are available on our website, imax.com. Today's conference call is being webcast in its entirety on our website. With that, let me turn the call over to Rich Gelfond. Richard L. Gelfond - Chief Executive Officer & Director: Thanks, Teri. We're only a few months into the year, but, so far, we like what we see. From the pace of our installations to the demand for new IMAX theaters globally, from our performance in new markets to our laser rollout and especially to our robust film performance, we're off to an encouraging start. IMAX's position in the entertainment…

Thank you. Our first question comes from Eric Handler of MKM Partners. Please go ahead.

Hi. Thanks for taking my question. Rich, two questions for you. First, the IPO of Wanda Cinemas in China just has been a phenomenal success. And the stock has just skyrocketed since the IPO. I'm just curious. In terms of the possibility of you listing in Hong Kong for IMAX China, what boxes do you guys need to check in order to start the process rolling there? And, for lack of a better word, how big of a bottleneck is just the uncertainty with the government giving you the go ahead? And then, secondly, in terms of your deal activity, where are you seeing the most activity right now internationally? Richard L. Gelfond - Chief Executive Officer & Director: So on your first question, Eric, as you know, we brought in minority investors last year that own 20% of IMAX China. And part of our long-term plan in China has always been to find liquidity for them through a variety of alternatives, including the possibility of a public offering. We've been exploring that possibility in terms of – we can't comment on the timing or the specifics of it, many of which are beyond our control. The only things I can add are in terms of boxes to check. There are regulatory processes that are completely beyond our control and we can't predict where they go. However, the government approval has nothing to do with the Hong Kong Stock Exchange. In terms of deal activity, as I said during my comments, it's pretty strong. There is a lot going on in Japan following up on the Toho opening. In Europe, we've had a lot of signings during the quarter. And we think there is a lot of promise as we went through the numbers on Avengers. The territory is performing extremely well, especially in Scandinavia. I hesitate to say this. Internally, we kind of laugh about it but Russia and the CIS still remains a good territory for us. There is an awful lot of activity going on. You have seen a number of announcements in China during the first quarter. And I think deal activity there is pretty good. About the only place I'd say that has slowed down a little bit is probably Brazil and Latin America because of the strength of the dollar there. I still think those will be terrific markets for us. But I'm not sure they will be the next quarter.

Thanks a lot, Rich.

Thank you. The next question comes from Townsend Buckles, JPMorgan. Please go ahead.

Thanks. Rich, coming out of CinemaCon last week and your own gathering of exhibitor partners earlier this month, can you talk about the sentiment toward IMAX as it fits in with the expanding number of other premium offerings that theaters are looking at, whether it's recliners, moving seats or some other companies like Dolby trying to follow your model of working with studios and filmmakers? You clearly had a great start to the summer with Furious and Avengers which has to help stand out from the fray. And you touched on those in your remarks. But, I guess, would you say – back to your signing activity, whether it's been a pickup from a tougher stretch last year and could we see an acceleration in signings ahead? Richard L. Gelfond - Chief Executive Officer & Director: Well, this is the second year in a row, Townsend, that we did kind of a private event before CinemaCon. And we invited, I don't know, something like 35 of the largest exhibitors in the world, the CEO Conference, and we put them together with different industry leaders, whether it's studio leaders or other industry leaders. And we spent a weekend with them, actually, not so much discussing IMAX, but discussing the future of the industry, things like alternative content, things like the future of the blockbuster. And it's really become a very interesting, important forum for us because not only are the topics interesting and not only do we learn a lot from each other, but we spend a lot of time networking with our top clients around the world and they spend time networking with each other. So that would be the place where I got more feedback because CinemaCon tends to be a broader forum where you just get half hour…

Great. Makes sense. And maybe for Greg, the Hollywood numbers in China is so strong. Do you expect they will take measures to cool it down a bit through either blackout or double dating films? Are there attractive local titles you can play this summer? And just in general, out of CinemaCon, where you're seeing the most enthusiasm in the slate and, conversely, you don't need to name names, but anything not quite seeing the tracking that may lead to some shuffling or additions in the slate? Thanks. Greg Foster - CEO-IMAX Entertainment & Senior Vice President: First on the China front. We only know about a month in advance. And for the titles that we have a month in advance, things are looking good. We know that July tends to have a blackout period. As you know, Anthony Vogels, who runs our international language titles, is all over China in terms of making sure that we have a great complement of Hollywood films, obviously, working with the rest of our team in China, but has a great eye for the local language films. So whenever there is a switch into Mandarin language titles, we are covered. So it's too early to tell exactly what the China film import/export position is going to be. But one way or the other, we'll be covered. As it relates to CinemaCon, what I think was most interesting about CinemaCon is, of course, the big titles that we all expect, were terrific and looked great from obviously Star Wars and the titles that we all know about. There were a bunch of what I'll call sleeper titles, as you pointed out, that sort of came out of nowhere, at least for some people. And I think we're very, very well perceived. Obviously, Tom Cruise…

All right. Good to hear it. And if any of the bigger titles don't quite hit, do you expect to put in others? Do you have some others in the wings or we remain committed on the kind of two weeks to three weeks? Richard L. Gelfond - Chief Executive Officer & Director: As I've noted, our pillar titles are pillar titles and we feel very, very good about them. But at other periods of the time, we always have options because of our international business. We go in hoping that we're going to stick with everything that we've committed to. But if something changes and something doesn't works, as we've shown in the past, we're able to adjust accordingly. But our strong preference is to keep the path that we currently have.

Thank you.

Thank you. The next question comes from Steven Frankel of Dougherty. Please go ahead. Steve Frankel - Dougherty & Co. LLC: Good morning. So, the last couple of years, you talked about the notion of exclusive IMAX release windows. It looks like this year and next year are so chalk full of big tent-poles that maybe that isn't a possibility. Or do you think there still are some films coming out that where you might be able to do that? And if you can't do that, what else can you do to differentiate your experience versus the experience in a PLF or a traditional theater? Greg Foster - CEO-IMAX Entertainment & Senior Vice President: So, first of all, the experience itself being – one of the benefits that I have is I am able to spend a lot of time with filmmakers. And when I've watched over the course of the last two months or three months, really important filmmakers watch our laser system. In the back of my head, the first thing that I've been thinking about is exclusivities, because I can see their eyes light up. We can't declare exclusivity until the actual movies are finished, because you wouldn't really want to have an exclusive window on a movie if the word of mouth on the movie wasn't going to be incredible. So just because you may not have heard something yet, don't take that as any sign. I think it's likely. I'm not going to promise it. But it's likely that you'll be seeing some over the course of the next 12 months to 18 months. As it relates to the differentiation, if you really think about it, Steven, the last six months, between the ARRI camera, between the laser system, and between the immersive 12.0 sound…

Thank you. The next question comes from Eric Wold of B. Riley. Please go ahead. Eric Wold - B. Riley & Co. LLC: Hi. Good morning. A question for Rich and then one for Greg. I guess first on, Rich, on China, as you look at the opportunity that obviously you talked about on the last call, the installs now in the backlog already exceed the 400 locations; you previously thought was the market for IMAX there and I'm sure you'll update that on the Investor Day coming up. But are you seeing more demand coming in from Tier 2 and Tier 3 cities in the region and kind of maybe get a sense of what percentage of your theaters right now are in those two tiers and how do the results compare to what you see in the Tier 1 locations? Richard L. Gelfond - Chief Executive Officer & Director: So, Eric, I don't have it broken out by that. But I could tell you that last year, we grew our network by about 40% in China. And our PSAs were constant. And, as you know from what we reported this morning, the PSAs are still remaining relatively constant and, as you know, from reading the box office results. So we just really haven't – I know that was part of some doubt as thesis at some point and as we expanded into different markets, that the PSAs would drop. And we really haven't seen that. Now in terms of your question about the data slicing and dicing and what is it, we haven't done it that way. And I'll tell you one of the reasons, because in some of the largest cities like Beijing or Shanghai, you might have a dozen theaters or even more. So, obviously, those…

Thank you. The next question comes from James Marsh of Piper Jaffray. Please go ahead. James M. Marsh - Piper Jaffray & Co (Broker): Great. Thank you. Two quick questions here. First, just to follow-up on the potential IMAX China IPO. I realize you're kind of limited to what you can talk about here. But just really wanted to understand how the mechanics of this are expected to work if it is an IPO. Is it as simple as that China screen performances moves out of consolidated results and then instead you have an investment in a separate entity that's going to be publicly-traded? Or are you going to expect to continue to be able to consolidate that? And then the second question relates to your institutional theaters. I just noticed that the count went from 115, down to 105 year-over-year, down about 9%. I'm just trying to figure out are these actually closures or are these moving to commercial entities rather than institutional? Thanks. Richard L. Gelfond - Chief Executive Officer & Director: So, on your first question, James, I really can't comment on the mechanics of something like that. It really wouldn't be appropriate at this time to go into it in any more detail than I did. The second thing, in terms of the institutional theaters, we had a problem in our institutional network, which was twofold. One, it was film-based, not dissimilar than the commercial network. So, you could only play very few films and you had to play them for a very long period of time. So, a lot of institutions really didn't have a model that worked. And that's why we put a lot of money. And one of the main reasons, not – I shouldn't say main. One of the reasons we put money into our laser development was so that we could transition these institutions from film-based to digital-based. And we just launched that product, as you know, a few months ago. And we've been showing it to the institutions. And we have something called an Institutional CEO Council, where we meet with the CEOs of a lot of the institutions to educate them on that transition. And then the second thing would be we raised our documentary film fund. So we could make more of an effort in terms of creating content for the institutions to show. But there has been a gap period where they didn't have a digital solution. So they couldn't play a lot of movies. And there wasn't a lot of content. And that downtick in the number of theaters is what you're seeing because there was a gap there. But, right now, where we've launched the laser and we've launched the film fund, we're hoping to address that going forward. James M. Marsh - Piper Jaffray & Co (Broker): Okay. Great. Thanks very much.

Thank you. The next question comes from Kevin Lee of Stifel. Please go ahead. Kevin Hon Siong Lee - Stifel, Nicolaus & Co., Inc.: Good morning and thank you for taking my question. Just a quick one on the system sale installs/upgrade front. If we assume that system sale installs ran at the traditional $1.2 million to $1.3 million ASP in the quarter that would imply that the upgrades were around the $1 million range, which is higher than call it the $400,000 that you have roughly guided to. Is that because of one of the upgrades in the quarter was a laser theater? And are you able to provide any additional details around the economics of laser? Thank you. Richard L. Gelfond - Chief Executive Officer & Director: So I am going to just transition from the question James asked. I want to add something. And then I'll answer the first part. And Joe will answer the second part. Which is, I should mention on the institutional front, between yesterday and tomorrow, we're opening our first laser institutionals on the Pacific Science Center opened yesterday. And the Smithsonian, one of three contracted for us, is opening tomorrow. So that's the beginning of the evolution. I omitted that from my answer. In terms of margin on laser, it's a very difficult question to answer. And I don't want to be evasive about it. But it's completely the truth. Which is that, laser itself, forget our system, is a new product in the market. And it has a cost curve, which you would expect for any new product, which is that it's expensive now. And as it rolls out, not only in theatrical uses, but medical uses and other uses, we expect the cost curve to come down. So, if you…

Thank you. The next question comes from Aravinda Galappatthige from Canaccord Genuity. Please go ahead.

Good morning. Thanks for taking my questions. Rich, you have about $140 million in cash right now on the balance sheet, I think, about $124 million net cash. Just wanted to get your thoughts on how you're thinking about M&A options. I mean you talked about reinvesting back into business. Just want to get a sense of what the parameters are. How far would you go? Where would you go? Where would you not go? Just wanted your thoughts on that. Richard L. Gelfond - Chief Executive Officer & Director: Aravinda, that's a really good question. And I am going to give you a two-part answer. The first part is that we spend a lot of time thinking about it. And I would say, at the moment, probably almost half my time is spent looking at options to answer that question. And the answer to that question is that we're focused on kind of original growth opportunities that we've been outlining and we've been investigating. And then we're also investigating whether there are acquisition possibilities. And we have certain internal criteria which includes a minimum kind of threshold on IRR, a certain size that would be significant enough to make a difference. But one thing we're not going to do and this is announce products or initiatives until we're fairly certain that we button down the parameters and we have a high degree of comfort that they are going to work. So the sum of the first part of my question, the answer is yes. We're looking at all kinds of alternatives. And then the second part is, in Investor Day, which we're having in early June, we hope to be able to outline a more specific criteria for you and maybe even more specific ideas for you laid out in detail. But I don't want to do it until they are further buttoned down.

Great. Thanks, Rich. And just a quick question for Joe. I think I missed the hybrid count in the JV installs in Q1. I was wondering if you can just give me that. Thank you. Joseph Sparacio - Chief Financial Officer & Executive Vice President: Yeah. There were five.

Thanks a lot.

Thank you. The next question comes from Matthew Brooks of Macquarie. Please go ahead. Matthew Brooks - Macquarie Capital (USA), Inc.: Good morning, guys. Just want to firstly make a comment that whenever you can make some sort of announcement about the potential growth here in Hong Kong that would be very good. I know that there a lot of investors that's the number one issue they have. In a more general sense, I think, laser is sort of the key to keeping that competitive advantage that you have. I mean you can't sort of discuss the cost curves, et cetera, but can you make any comments – can you see any sort of potential uptake in PSAs at some of those laser theaters? And do you have any sort of data? You mentioned a lot of the tech specs which sounds great. But do you have any data that sort of indicates the consumer experience with the laser so far? Richard L. Gelfond - Chief Executive Officer & Director: So, two answers to you. One is that there will be an uptick in PSAs because of laser. In fact, there are theater – the most simple way to understand laser – and it applies to both parts of your question – is we can light screens up to 120 feet to 140 feet wide and we can light screens over 80 feet wide using our laser. Stop, end of story. No one else in the world can light screens like that or has a product on the shelf that can do that. Stop period. So forget any other aspect or attribute of laser. We can accomplish that. So a lot of the film-based theaters, such as James Marsh's question, about the institutional theaters, they just can't put in a…

Michelle, I know we're running out of time here. Maybe we can just take one more quick one.

Okay. Thank you. The last question will come from Mike Hickey of The Benchmark Company. Please go ahead.

Hey, guys. Thanks for taking my questions and great quarter. Congratulations. Just curious. I mean outside the quality of the film product this year, it seems like the pacing of films has been very complementary for sort of presumed growth here. I'm kind of curious why you think this is sort of all of a sudden an awakening, I guess, from the studios in a very mature industry and it seems like a logical assumption. And then, I guess, if you suspect a continuation, if you will, of just more thoughtful pacing of films of a future slate or is it back to normal? Greg Foster - CEO-IMAX Entertainment & Senior Vice President: I can't articulate exactly what the reason is other than it's very clear that something is taking place. And I think what's taking place is that there are such huge investments made in these movies that they are realizing that when they see a competitive film go out, they don't want to open up on top of it, because it doesn't necessarily help their long-term viability. There is also, I think, a degree of IMAX in the middle of it because everyone is buying for our slots, particularly for the pillar titles. And so we've obviously noticed the spacing. You can just look at the last couple of months where you see Furious 7 and then a month later is Avengers and then a few weeks later is another title and a few weeks later after that is another title. And so it's a very kind of comfortable spacing. And that continues also into the seasonality factor, where all of a sudden you have fairly big movies opening up in the fall or opening up in January or February, which makes us a 12 month business. So for whatever reason, that's what seems to be going on. And I think it's just happening organically.

Thanks, Greg, and one more quick one here. Just curious on – I know you are limited on how much transparency you have into the release schedule of China. But perhaps, just generically, if you could speak to how you see Star Wars releasing in the region, potential impact of the Chinese New Year and the sort of blackout period that you historically at least had to work out in early 2016? That would be helpful. Thank you. Richard L. Gelfond - Chief Executive Officer & Director: I think it's just premature to forecast, for 2016, how release schedule is going to work. A lot of things can happen between now and 2016. Richard L. Gelfond - Chief Executive Officer & Director: So, with that, I'd just like to quickly sum it up which is, we came into 2015 with very positive, but I'll underestimate the word, realistic expectations. And I think Q1 supported that view from a financial point of view, I think, so as the beginning of Q2 thus far. But with that said and as happy as I am by all that stuff, I am most proud of the pieces that we put together for the long-term during the quarter. First of all, on the successful openings, which I mentioned throughout the world, which should lead to theater growth. Second of all, the laser performance and the laser premiere. I know it sounds easy. But it took us three years and we spent about $60 million. And the projector has 6,000 parts in it. And it works flawlessly. I think the growth in the strategic markets, because there are signings. And then, finally, we glossed over and didn't spend a lot of time. But we signed almost 40 films in the last several weeks with Disney and Warner Bros. And these calls used to be a lot about can you get the films? Can you keep your margins on the films? How to I know you can get the films? And I think it's a testament to where our business has been that there were virtually no questions on the call about our ability to get films or keep our margins on the films. So I think the quarter really bodes well for the rest of the year. And thank you all for participating.

Ladies and gentlemen, this does conclude the conference call for today. You may now disconnect your lines and have a great day.