Good day and welcome to the IMAX Corporation Third 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'd like to turn the conference over to Ms. Heather Anthony. Please go ahead, Ms. Anthony.

Good afternoon, everyone, and thanks for joining us on today's third quarter 2015 earnings conference call. Joining me today in our Los Angeles office is our CEO, Rich Gelfond and our CFO, Joe Sparacio, who will have prepared remarks. Greg Foster, our Head of Entertainment, is with us and will be available for Q&A. Also joining us is Rob Lister, Chief Legal Officer and Head of Business Development and Jessica Kourakos, our new Senior Vice President of Investor Relations. I'd 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 more detailed discussion of some of the factors that could affect 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 reconciliations to adjusted EPS and adjusted EBITDA as defined by our credit facility, are contained in this afternoon's press release. The full text of our third 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, and with that, let me now turn the call over to Rich Gilford. Richard L. Gelfond - Chief Executive Officer & Director: Thanks, Heather. The last several months have definitely been historic ones for the company. In addition to strong third quarter results on both the top line and bottom line, I'm proud to say we installed our 1,000th IMAX…

Thank you. And we'll now take our first question from the line of Eric Handler with MKM Partners. Please go ahead.

Yes. Thanks a lot for taking my questions. So, Rich, you now have the high-class problem after the successful IPO and special dividend of being over-capitalized. Just sort of wondering if you could walk through your priorities of cash, how you think of how much cash you want to have on hand at any one time, and what you think is a proper allocation for return of capital and also what about reinvesting in the business and what might those investments look like? Richard L. Gelfond - Chief Executive Officer & Director: So, Eric, first jokingly, I like to say can I have an hour to enjoy the cash before I give you a plan? Obviously, this plan was in the works for a while, but with the volatile markets in China, we weren't sure we'd get it done. So in all honesty, I'm going to give you a general answer, but we don't have – it's not fully developed. So, as you know, because we've given a similar answer before, we're quite opportunistic and if we find the right kind of acquisition target, something that could lever off our brand, and lever off of our ecosystem, and by ecosystem I mean our relationships in the Hollywood community with exhibition on a worldwide basis, and it had an attractive rate of return, that would be very much a priority for us. And that's something I think we'll take a more, what's the word, organized look at going forward. Second thing would be obviously we have a lot of new businesses, many of which we discussed at Investor Day, including our home theater, our day-and-date delivery system, some of the content ideas we discussed, and that's something that we'll invest in. Third of all, obviously the JVs have fantastic rates of return on them on a worldwide basis, and we continue to invest in those. Fourth, as you saw during the quarter, we're not adverse to returning capital to shareholders. As a matter of fact, we exist to make a return for our shareholders and we spent about $35 million buying in 1 million shares during the quarter. So I think all that is very much on the table and harking back to my smart aleck response at the beginning, I think we need to figure out how to prioritize those, and how to organize them. But one thing you can be certain of, Eric, is that we're not going to just sit around with a lot of cash and look at it. Over time we'll figure out something productive to do with it as long as it generates a strong IRR or it involves return of capital.

Thanks, Rich. And just as a quick follow-up, one of the investment opportunities you have is you have a film fund in China that you invested with CMC. CMC already has a deal in place with DreamWorks Animation. They've got a deal now recently signed with Time Warner. I'm just curious how you think that film fund could actually play out and what type of films you might be investing in? Richard L. Gelfond - Chief Executive Officer & Director: So the only kinds of films I think we'll invest in, Eric, are films that would be released through the IMAX network. So the ideal would be, we'll have sort of a very early proprietary look at many of the big blockbuster movies that are being made in China. And if there are ones that we really find appealing, besides participating on the studio side and exhibitor side, we would also participate through the negative, as long as we were pari-passu. And there are one or two projects we've looked at so far have not decided to pull the trigger. I think we will probably put in somewhere between $4 million and $8 million a movie, which gets you to around 10 movies, something like that, that we'll do. Although we are in discussions to perhaps take on additional investors and stay tuned to see what happens there.

Thanks a lot, Rich

Your next question will come from Ben Mogil with Stifel. Please go ahead. Benjamin E. Mogil - Stifel, Nicolaus & Co., Inc.: Hi, good afternoon. Thanks for taking my question. So the first one, just on the laser, I think, Joe, you talked about them obviously having a margin drag in the quarter, and we sort of saw that on the straight sales and then, over time, sequentially improving margins. Can you talk a little bit about the margin drag? I mean is it marketing? Is it sort of the need to staff up on technicians? And then as the base installs, they get amortized over that? I'm curious on what the sort of cadence is on that front. Richard L. Gelfond - Chief Executive Officer & Director: So, Ben, first of all, this is Rich. Hi. I want to remind you that going into this year when we discussed the laser launch we said that it would have virtually no margin or a low margin. We said $1 million for the year in margin, and actually we are tracking a little bit better than that. So this isn't a surprise to us, and it shouldn't be a surprise to anyone who has followed us, because we are quite clear that the first round, the prototype round, was really built for screens 80 feet and larger and was not built as a high-margin commercial big rollout product. Second point is, as Joe said during his remarks, the first 10 that we've opened, 10 or 11, we're really babysitting them, because this is a high generation, high technology product. And for example, we have one in Leicester Square that opened to show Bond two days ago, and you don't want it going down, and you don't want to have to fly…

Your next question will come from Alexia Quadrani with JPMorgan. Please go ahead.

Hi. Thank you. You mentioned earlier that Star Wars is likely to be released in China, hopefully in January. I guess my question is any sense of the other international markets, and what films would IMAX be playing in international markets in that period where Star Wars has yet to be released, sort of after the December date? Greg Foster - Senior Executive VP & CEO-IMAX Entertainment: So, this is Greg. So first of all, the January date has not been confirmed. So that's purely conjecture. We're optimistic and hopeful, but until it's confirmed it's nothing other than a guesstimate. In January, first of all, Star Wars will come out in virtually every market in December, except China. And our intention is to play Star Wars for as long as we possibly can. Rich spoke about the Avatar Effect, and I think many of you remember that when Avatar came out in December of 2009 it continued to play for many, many months, for I think an additional 10 weeks, well into March. Our hope is that Star Wars, based on advanced ticket sales, is one of those movies. But we also have a very good line up in February, if need be, and we're going to see what happens as we go along. One of the advantages of our technology is that we're able to be nimble and put movies in opportunistically when we want and need them to be. And that's what's available to us going forward, and that will continue to be the core strategy of filling in what we call the shoulder periods when and if we need to. Richard L. Gelfond - Chief Executive Officer & Director: Having just seen the trailer in IMAX, I think that Star Wars is going to be one of those movies where when people see it the first time, obviously there's going to be capacity constraints, but it's the kind of movie like Avatar and what really led to the breakout of Avatar is people had to go back and see it in IMAX after they saw it somewhere else early. And I can't pretend to have a crystal ball about that, but just from watching what I've seen so far, I think this could be that kind of movie.

Do you have the same sort of exclusivity of Star Wars outside the United States that you have in the United States here for the initial showing? Greg Foster - Senior Executive VP & CEO-IMAX Entertainment: For the initial part of December and into early January, we do. But again, we've given ourselves the opportunity to be able to snag titles, if we want to. And so we are able to juggle as we see fit. It's obviously – if the demand is there, we will continue to play it, but there's a lot of extra supply for us to be able to put in other titles. And of course when we get into China and the Chinese New Year, there will be local language films in February that we will be playing in China.

Thank you very much.

We'll now take our next question from the line of Eric Wold with B. Riley. Please go ahead. Eric Wold - B. Riley & Co. LLC: Thank you. A couple of questions on the system install guidance and the backlog. I guess, one, on the initial 115 to 120 install guidance for next year, give us a sense of how much of that comes from current backlog versus the pipeline? Richard L. Gelfond - Chief Executive Officer & Director: I think the answer would be, Eric, and Joe could fill it in, we try and do this on a consistent basis year-over-year in terms of what's in backlog, and we take a reserve against our backlog for slippage. And then we look at what's a reasonable number to sign? And I would say that we use the same amount of conservatism in preparing this that we have every year, including this year, where we've upped that considerably. So we were no more aggressive or less aggressive than we were in previous years. But you can't really look at it the way you frame the question because, as I said, there's backlog, there's slippage against backlog, there's new signings. So if I told you the backlog number, that wouldn't include the slippage, and I don't think it makes sense to get into that amount of detail. Eric Wold - B. Riley & Co. LLC: Fair enough. And then secondly, kind of looking at the backlog from this point last year to where we are now, there has been a meaningful shift in that backlog to kind of sales type lease from JVs, obviously partially due to signings and partially due to how the installs have gone. And then you have the guidance for installs still tilted more towards JVs and sales…

Your next question will come from Aravinda Galappatthige, please go ahead – with Canaccord Genuity.

Good afternoon. Thanks for taking my questions. Rich, with respect to IMAX China, you mentioned that in the foreseeable future you wanted to maintain your control position. But you are at 68.5%, which still gives you some room for divestiture. I was just curious; under what circumstances would you consider selling down to 51%? Is it simply price or share price appreciation? Richard L. Gelfond - Chief Executive Officer & Director: Well, as you know, Aravinda, because you are smarter than me at this, in investing in companies and stocks and things. It's always a case of price and prospects, right? I mean, so no, it's not purely a question of price. But if my price went up five times from here and the prospects were the same, that would be an indication that maybe we would want to sell down a little. On the other hand, if the prospects went up tremendously, and even if the price went up we might not want to sell a share. I mean, today, I don't have any intention of selling down from where we are. But I think we just wanted to be clear that we are going to maintain a control position over time from where we sit today. But we don't want to say no matter what happens in the world, we promise to be in this position.

Okay. Thanks for that, Rich. And really quickly, with respect to Japan, I was interested in the comments you made there, given the opportunity. Just remind us where you stand with Japan in terms of the top theater chains. I know that you've got number four and three, if I'm correct, Toho being number three, if I'm correct. But I just wanted to give you a little bit of a chance to maybe elaborate on the Japanese opportunity, given that the focus is also shifting to the ex-China side of the business. Richard L. Gelfond - Chief Executive Officer & Director: So, Toho is actually number one. And we are not in business with number two, we are not in business with number three. I'm not sure, we might be with four. I know we are in business with five. So, when Toho opens and the kind of numbers they've done as I indicated, they're tracking to over $4 million in their first year of operation. You know, that gets noticed. Not just by them, but other chains in the country. And we have seen a pickup in discussions going on, and there are a bunch of different proposals floating around. As you know, you never know, I don't want to promise that one or others are going to sign. But it just seems like we've turned a corner there. Actually we had started to turn a corner a few years ago before the triple disaster happened and we have really strong PSAs. We have a number of people in the business, but obviously the Japanese had much more important things to focus on at that point in time. And I think now that theaters are doing really well. Toho's theater is doing really well. We are hearing from virtually all of the significant chains there. So I just have a feeling you are going to see that market open up. I've been doing this for too long to not see those signs. And I see those signs in Japan, so I'd be surprised if that activity didn't pick up.

Great. Thank you, Rich. I will pass the line.

Your next question will come from Steven Frankel with Dougherty and Company. Please go ahead. Steven B. Frankel - Dougherty & Co. LLC: Good afternoon. Joe, could you just start by breaking down the PSA for us on a domestic and international basis? Joseph Sparacio - Chief Financial Officer & Executive Vice President: Sure. Domestic overall was $221,000 as I mentioned. Domestic was $161,000, China $301,000 and other international was $234,000. Richard L. Gelfond - Chief Executive Officer & Director: China was very positively influenced during the quarter by a local movie called Monster Hunt, which is the biggest Mandarin film in the history of China and also the biggest Mandarin film in the history of IMAX. So, that's why you're seeing such strong PSAs come out of there. Steven B. Frankel - Dougherty & Co. LLC: Great. And then a couple of questions for Greg. Mockingjay wasn't mentioned as a play in China. Why aren't you playing that film? Greg Foster - Senior Executive VP & CEO-IMAX Entertainment: Because we only have one screen per location and the way the sequencing works and given the fact that we're kind of all in on the Bond title, that's the title that we're playing. So that opens up – we have a really strong line up in China over the course of the next month or two between Everest, Spectre, The Martian, and then the local language titles, The Ghouls, which also has another name that I'm blanking on right now, but I refer to it as The Ghouls. So we have a very, very strong lineup, and that's the primary reason. Bond in the past in China has come out in January or February, a few months off the break and this is basically day-and-date, and it's done quite well…

Your next question will come from Jim Goss with Barrington Research. Please go ahead.

Thanks. Either for Greg or Rich, how much of next year's slate is set already, and is it unlikely that beyond Star Wars nothing will be more than a week or two at this stage with all the films coming through? Richard L. Gelfond - Chief Executive Officer & Director: Jim, we expect to have about the same number of films in 2016 as we have in 2017 – sorry, as we have in 2015. And that's because we again have the ability to be flexible and slot things in when we need to. In terms of one or two weeks, I'm not going to make those – I think it's a mistake to make those statements, because again, if you have a title that has a nice runway for it, and it continues to do really well, particularly if there is a second screen, I had to get that in there, you can play it a little bit longer. So, the goal for us is to always have – if we could have one movie that played for a month at a time and continued to generate business, of course, we would do it. But because we have the ability with the foreign territories and because of the DMR teams that we have and our ability to convert a movie quite quickly, we're always going to be pouncing on an opportunity when it exists. We know that there have been a couple of titles over the course of the last couple months that we had two-week commitments on that didn't perform, and it's our responsibility going forward to create 52 weeks of compelling content. And so we are on that going forward. So if something isn't working, we're going to want to be in a position that we can put something in right away on that second week. So, we're aware of it, but at the same time the goal is to have the big titles play for as long a period of time as we can, as long as the demand is there.

Okay. And with the declining per film DMR costs, is that going hand-in-hand with your success in China to create even more Chinese films in your brand? Richard L. Gelfond - Chief Executive Officer & Director: Well the...

And what will that mix be like? Richard L. Gelfond - Chief Executive Officer & Director: So, again, this year we've done more local language films than we ever have in China, and it's worked quite well. One of the reasons was because as many of you know from basically the middle of June when Jurassic World came out until the middle of August, or close to the middle of August when Terminator came out, there wasn't a Hollywood title. So we did four movies in that period of time. So we always have films, local language films warming up in the bullpen, so to speak, ready to come in when there is a blackout period, or when it feels like a movie isn't going to work. That's on the global basis. And on the China basis, in particular, our pipeline of product is very, very strong. We've got four or five titles, for instance, on Chinese New Year. We haven't made the decision on which ones we're going to do, but there are options for us over that two to three week period. So we will at the very least do the same number of movies I would suspect in China in 2016 that we did in 2015.

Lastly, are there any other markets where that same will hold, where the declining DMR costs will make it that much easier to create a Russian film or a French film or some other? Richard L. Gelfond - Chief Executive Officer & Director: Well, we do have two Russian movies in 2016. One is The Crew, and one is The Duelist, and there is another one that we're talking about for 2017. And then we've flirted with Japanese titles, which particularly given the strength of the market, but we have to make sure that those titles have a long enough window and are movies that lend themselves to IMAX. So, the cost coming down certainly doesn't hurt.

Okay. Thanks very much.

Your next question will come from Mike Hickey with The Benchmark Company. Please go ahead.

Hey, guys. Thanks for taking my question and congratulations on your very successful IMAX China float. Awesome job. I guess this is a bit of a reach, but you did give us somewhat of a look at 2016. And so I was hopeful maybe you could provide some visibility on your SG&A growth expectation for 2016. And then with your DMR expense tracking sort of towards the higher end of your expectations for 2015, would it be a reasonable assumption that that should trend lower into 2016? Richard L. Gelfond - Chief Executive Officer & Director: We're in the process of putting our budget together now. And I think it's premature to discuss that. We probably can probably give you some color on the end of the year call, but before we complete our budget it's just not prudent.

All right. Fair enough. And then now that you've successfully floated the IMAX China piece, I'm just sort of curious how your world has changed businesswise in that region, if you have seen a pickup in theater signings, or perhaps sort of the regulatory framework in China can be sort of adjusted to your benefit when you think about how many films you can get into the region per year? Richard L. Gelfond - Chief Executive Officer & Director: It's a little soon to have seen dramatic shifts. But we – our level of activity, while China was having so much volatility issues in terms of signings and interest, went up, and I would say somewhat significantly and we signed two deals at the end of the third quarter with Stellar and with Omnijoi, both of which were state-owned enterprises. So I can't say concretely, but I can say it hasn't done anything negative to us. The tone of the business feels pretty good over there.

All right. Thanks, guys. Good luck.

Your next question will come from Rob Peters with Credit Suisse. Please go ahead. Robert Peters - Credit Suisse Securities (Canada), Inc: Hi. Thank you for taking my question. Greg and Rich, just maybe given the dynamic you've seen in China so far this year with the fact that you've seen a number of the Hollywood films being released day-and-date with the global releases, but we still did have the blackout period in July and August and even starting in June this year. I was just wondering if you could maybe talk about kind of where you see the long-term success of the box office in China. Is it more in local language films, or is it a more friendly Hollywood approach by the regulators there? Richard L. Gelfond - Chief Executive Officer & Director: So, I'm going to give you sort of a financial answer, and then Greg can give you kind of a view from the field. The financial answer is that the Chinese box office is forecast to pass the U.S. box office in 2017, and it's forecast to pass the number of screens also in 2017. So what's happening is, there's a lot more capital flowing into producing Chinese movies, so the quality of the movies keeps getting better and better, and I think you see the results in things like Monster Hunt and Journey to the West and other films. So, I think from a financial point of view, as their box office increases the films will be higher quality, bigger budget and I think especially when you talk about blowing them up or filming them with IMAX cameras, in terms of filming an IMAX image that's really important. But I think the market dynamic itself will cause there to be more Chinese blockbusters and…

And there are no further questions at this time. I will turn the call back over to Mr. Rich Gelfond for closing remarks or additional comments. Richard L. Gelfond - Chief Executive Officer & Director: So you can probably tell by our tone that we're really happy where we are and where we see that we're going. Whatever indicia you want to look at compared to Q3 last year; revenues, EBITDA, adjusted earnings, cash, signings, installs, increased guidance, I mean sometimes internally I get frustrated because there are too many benchmarks and mathematically you can't hit every one all the time, but this is a quarter where it seems like we really delivered on a lot of things. And if you're sitting in our seat and you've opened Spectre in England and you see those numbers, and it's opening wider in the next week or two, and then of course you go into Star Wars, and hate to come back to this, but wait till you see it on that screen. So I think it's a good time to be in the IMAX business. And for those of you who have supported us through not such good times, we really appreciate it and we hope we can continue to deliver. Thank you.