Navistar (NYSE: NAV ) will release its quarterly report on Wednesday, and investors don't expect good news from the trucking giant. Yet even if Navistar earnings continue to look as bad as they have in recent quarters, relief might not be too far away for beleaguered investors.
Navistar is the company behind a wide variety of industrial vehicles, including trucks for both commercial and military use as well as school buses and recreational vehicles. It also produces diesel engines for vehicles. Yet troubles in meeting regulatory guidelines has led to some huge disruptions in Navistar's business, and even with a solution in place, the company could continue to struggle for a while longer. Let's take an early look at what's been happening with Navistar over the past quarter and what we're likely to see in its report.
Stats on Navistar
Analyst EPS Estimate
($1.32)
5 Best Food Stocks For 2015: Dale Jarrett Racing Adventure Inc (DJRT)
Dale Jarrett Racing Adventure, Inc., incorporated on November 24, 1998, offers entertainment based oval driving schools and events. The Company owns several National Association for Stock Car Auto Racing (NASCAR) type racecars. These classes are conducted at various racetracks throughout the country. As of December 31, 2011, the Company owned 15 racecars, and had purchased six additional racecars for its Las Vegas hub. These racecars are classified as stock cars and are equipped for oval or round tracks only.
The Company offers five types of ride or drive programs for individuals and corporations. The Qualifier is a three lap ride with a professional driver, which lasts about five minutes, depending on the length of the track. The Season Opener is a half day training class culminating in the student driving 10 laps. The Rookie Adventure and Happy Hour are also half day driving classes with the students driving 20 or 30 laps, respectively. The Advanced Stock Car Adventure is a full day 60 lap class. The main purpose of each event is the thrill of actually driving the race car. It owns a Miller Semi Tractor Trailer to haul the cars from track to track. The Company also offers a range of add-on sale items, including compact disks (CDs) from its adventure cam located in the car, clothing, souvenirs and photography.
The Company competes with Richard Petty Driving Experience.
Advisors' Opinion:- [By Peter Graham]
Small cap stocks Alliance Creative Group Inc (OTCMKTS: ACGX), Dale Jarrett Racing Adventure Inc (OTCMKTS: DJRT), Inscor Inc (OTCMKTS: IOGA) and Solar Thin Films Inc (OTCMKTS: SLTZ) have all been getting some attention lately in various investment newsletters and it should come as no surprise that two out of four of these stocks have been the subject of paid promotions ��which tend to benefit traders. However, two out of four of these stocks also have pretty good financials for being small cap OTC stocks and that might make them attractive to investors with a long term time horizon. So which of these stocks might make traders some profits in the short term and investors some profits over the longer term? Here is a closer look to help you decide:
Top 10 Recreation Stocks To Own Right Now: SeaWorld Entertainment Inc (SEAS)
SeaWorld Entertainment, Inc., incorporated on October 2, 2009, is a theme park and entertainment company. The Company is engaged in delivering personal, interactive and educational experiences that blend imagination with nature and enable its customers to celebrate, connect with and care for the natural world. The Company own or license a portfolio of globally recognized brands including SeaWorld, Shamu and Busch Gardens. The Company has built a diversified portfolio of 11 destination and regional theme parks that are grouped in key markets across the United States. Its theme parks feature a diverse array of rides, shows and other attractions with broad demographic appeal which deliver memorable experiences and a strong value proposition for its guests. In addition to its theme parks, it has recently begun to leverage its brands into media, entertainment and consumer products.
The Company generates revenue primarily from selling admission to its theme parks and from purchases of food, merchandise and other spending. During the year ended December 31, 2012, it hosted more than 24 million guests in its theme parks, including approximately 3.5 million international guests from over 55 countries and six continents. In 2012, the Company opened new attractions in seven of its theme parks. In November 2012, the Company acquired Knott�� Soak City, a standalone Southern California water park, from an affiliate of Cedar Fair L.P. The Company�� products and services include Admission Tickets, Theme Park Operations, Culinary Offerings , Merchandise , Licensing and Consumer Products , Group Events and Conventions and Corporate Sponsorships and Strategic Alliances.
Admission Tickets, which generate most of its revenue from selling admission to its theme parks. The Company also offers a Fun Card at select theme parks that allows additional visits throughout that calendar year. In addition, visitors can purchase vacation packages with preferred hotels, behind-the-scenes tours, specialt! y dining packages and front of the line access to enhance their experience. Theme Park Operations delivers a level of service, safety and security at its theme parks. It comprised of rides, shows and attractions operations, safety, security, environmental, water park and guest arrival services (including parking, tolls, admissions, guest relations, entry and exit), the theme park operations team manages the planning and execution of the overall theme park experience on a daily basis.
Culinary Offerings delivers a variety of high quality, creative and memorable culinary experiences to its guests. Culinary operations are strategically organized into five key guest-oriented disciplines designed to drive in-park per capita spending: restaurants, catering, carts and kiosks, specialty snacks and vending. The Company�� culinary team focuses on providing creative menu offerings that appeal to our diverse guest base. Merchandise offers guests the opportunity to capture memories through its products and services, including through traditional retail shops, game venues and customized photos and videos. It focuses on effort to leverage the emotional connection of the theme park experiences, capitalize on trends and optimize brand alignment with its merchandise product offerings.
Licensing and Consumer Products capitalize on its brands, it has begun to leverage its intellectual property and content through media and consumer strategic licensing arrangements. It extended the reach of its brands through outbound media licensing in areas such as films, television programs and digital e-books, as well as its first-ever multi-platform mobile app game, TurtleTrek, which launched on iTunes in November 2012. Group Events and Conventions host a variety of different group events, meetings and conventions at its theme parks both during the day and at night. Its venues offer indoor and outdoor space for meetings, special events, entertainment shows, picnics, teambuilding events, group tours and spec! ial group! ticket packages. Park buy-outs allow groups to enjoy exclusive itineraries, including meetings and shows, up-close encounters with animals and behind the scenes tours. Corporate Sponsorships and Strategic Alliances seek to secure long-term corporate sponsorships and strategic alliances with companies and brands that share its core values, deliver brand marketing value and influence and drive mutual business gains. Its current corporate sponsors include, among others, Southwest Airlines, which has been a sponsor for over 20 years, and The Coca-Cola Company.
SeaWorld.
SeaWorld is recognized as the marine-life theme park brand in the world. Its SeaWorld theme parks, located in Orlando, San Antonio and San Diego, each rank among the most highly attended theme parks in the industry and offer up-close interactive experiences and a variety of live performances, including shows featuring Shamu in specially designed amphitheaters. It offers its guests numerous animal encounters, including the opportunity to work with trainers and feed marine animals, as well as themed thrill rides and theatrical shows that creatively incorporate its animal collection.
Busch Gardens
Its Busch Gardens theme parks are family-oriented destinations designed to immerse guests in foreign geographic settings. They are renowned for their beauty and landscaping and gardens and allow its guests to discover the natural side of fun by offering a family experience featuring a range of attractions and rollercoasters in a richly-themed environment. Busch Gardens Tampa presents its collection of animals from Africa, Asia and Australia.
Aquatica
Its Aquatica branded water parks are premium, family-oriented destinations that are based in a South Seas-themed tropical setting. Aquatica water parks build on the aquatic theme of its SeaWorld brand and feature high-energy rides, water attractions, white-sand beaches ande entertaining presentation of marine and terrestrial an! imals. Th! e Company positions its Aquatica water parks as companion water parks to its SeaWorld theme parks in Orlando and San Diego and it has an Aquatica water park situated within its SeaWorld San Antonio theme park.
Discovery Cove
Discovery Cove is a reservations only, all-inclusive, marine-life day resort adjacent to SeaWorld Orlando. Discovery Cove offers guests personal, signature experiences, including the opportunity to swim and interact with dolphins, take an underwater walking reef tour and enjoy pristine white-sand beaches and landscaped private cabanas. Discovery Cove presently limits its attendance to approximately 1,300 guests per day and features premium culinary offerings in order to provide guests with a more relaxed, intimate and high-end luxury resort experience.
Sesame Place
Sesame Place is the only United States theme park based entirely on the television show Sesame Street. It is located between Philadelphia and New York City, Sesame Place is a destination where parents and children can share in the spirit of imagination and experience Sesame Street together through whirling rides, water slides, colorful shows and furry friends. In addition, it has introduced Sesame Street brands in its other theme parks through Sesame Street-themed rides, shows, children�� play areas and merchandise.
The Company competes with The Walt Disney Company, Universal Studios, Six Flags, Cedar Fair, Merlin Entertainments and Hershey Entertainment and Resorts Company.
Advisors' Opinion:- [By John Udovich]
Financial results and news about lawsuits dominates the latest headlines for theme park stocks SeaWorld Entertainment Inc (NYSE: SEAS), Six Flags Entertainment Corp (NYSE: SIX), Cedar Fair, L.P. (NYSE: FUN) and small cap�Independent Film Development Corporation (OTCMKTS: IFLM). Moreover, all of these theme park stocks are looking pretty good either because of their news or recent performance:
Top 10 Recreation Stocks To Own Right Now: Biglari Holdings Inc (BH)
Biglari Holdings Inc. is a holding company engaged in a range of diverse business activities. The Company, along with its subsidiaries, is engaged in investment management and the franchising/operating of restaurants. The Company's wholly owned subsidiaries include Steak n Shake Operations, Inc. (Steak n Shake), Western Sizzlin Corporation (Western) and Biglari Capital Corp. (Biglari Capital). Biglari Holdings, as a capital allocating vehicle, is also in the business of owning other businesses in whole and in part. In February 2014, Biglari Holdings Inc and Alpha Media Group announced that the wholly owned subsidiary of Biglari Holdings has acquired MAXIM.
On April 30, 2010, the Company completed the acquisition of Biglari Capital Corp. (Biglari Capital). On March 30, 2010, the Company, through its wholly owned subsidiary, Grill Acquisition Corporation, completed the acquisition of Western.
Steak n Shake
The Company is engaged in the ownership, operation, and franchising of Steak n Shake restaurants. Steak n Shake is a American brand serving burgers and milk shakes. Steak n Shake offers its patrons full-service dining with counter and dining room seating, as well as drive-thru and carry-out service. During the fiscal year ended September 29, 2010 (fiscal 2010), counter and dining room sales represented approximately 60% of the sales mix, while sales for off-premises dining represent approximately 40% of the sales mix.
Western Sizzlin
The Company is engaged in the franchising of restaurants. Western Sizzlin offers full service dining of signature steak dishes, as well as other classic American menu items. Western Sizzlin also operates other concepts, Great American Steak & Buffet, and Wood Grill Buffet consisting of hot and cold food buffet style dining.
Advisors' Opinion:- [By Dan Caplinger]
As in past years, most of the attention around Cracker Barrel's stock lately has come from the ongoing battle between the company and Biglari Holdings (NYSE: BH ) , which owns roughly 20% of Cracker Barrel's shares. Back in February, the company offered to buy back Biglari's stock in hopes that it could avoid a third consecutive proxy fight to try to get Biglari CEO Sardar Biglari onto the board of directors. But Biglari rejected Cracker Barrel's offer.
- [By Monica Wolfe] the past week there have been several insider buys. The insiders making buys thus far are Interim CFO and VP Duane Geiger, Director Philip Cooley, Director Sardar Biglari and Director Kenneth Cooper. These insiders bought a total of 5,318 shares at a price of $265 per share.
- [By Ben Levisohn]
Shares of Cracker Barrel have gained 0.9% to $113.29 and�Biglari Holdings (BH), Sandar Biglari’s holding company, has fallen 0.4% to $516.96, on a day when DineEquity has advanced 1% to $85.03, Red Robin Gourmet Burgers (RRGB) has risen 0.5% to $76.64 and Denny’s (DENN) is up 0.7% at $7.45.
- [By Roberto Pedone]
One cyclical consumer player that insiders are buying up a large amount of stock in here is Biglari (BH), which is currently engaged in investment management and the franchising and operating of restaurants. Insiders are buying this stock into modest strength, since shares are up 8.7% so far in 2013.
Biglari has a market cap of $605 million and an enterprise value of $688 million. This stock trades at a cheap valuation, with a trailing price-to-earnings of 4.83 and a forward price-to-earnings of 29.38. Its estimated growth rate for this quarter is 42%. This is not a cash-rich company, since the total cash position on its balance sheet is $153.57 million and its total debt is $236.16 million.
The CEO and chairman of the board just bought 5,165 shares, or about $1.36 million worth of stock, at $265 a share.
From a technical perspective, BH is currently trending above its 200-day moving average and just below its 50-day moving average, which is neutral trendwise. This stock has been trending sideways and consolidating for the last month and change, with shares moving between $408.25 on the downside and $429.97 on the upside. Shares of BH are now starting to push within range of triggering a near-term breakout trade above the upper-end of its recent sideways trading chart pattern.
If you're bullish on BH, then I would look for long-biased trades as long as this stock is trending above some near-term support levels at $410 to $408.25, and then once breaks out above some near-term overhead resistance levels $428.85 to $429.97 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 10,146 shares. If that breakout hits soon, then BH will set up to re-fill some of its previous gap down zone from August that started at $467.89 a share.
Top 10 Recreation Stocks To Own Right Now: MarineMax Inc (HZO)
MarineMax, Inc., incorporated in January 1998, is a recreational boat dealer in the United States. Through 54 retail locations in Alabama, Arizona, California, Colorado, Connecticut, Florida, Georgia, Kansas, Maryland, Minnesota, Missouri, New Jersey, New York, North Carolina, Ohio, Oklahoma, Rhode Island, Tennessee, and Texas, the Company sells new and used recreational boats, including pleasure and fishing boats. It also sells related marine products, including engines, trailers, parts, and accessories. In addition, the Company provides repair, maintenance, and slip and storage services; it arranges related boat financing, insurance, and extended service contracts; it offers boat and yacht brokerage services, and it operates a yacht charter business. It is also retailer of Sea Ray, Boston Whaler, Bayliner, Cabo, Hatteras, and Meridian recreational boats and yachts, all of which are manufactured by Brunswick Corporation (Brunswick). In March 2013, it acquired Parker Boat Company's retail boat sales and service operations in Orlando and Daytona, Florida.
The Company is a dealer for Hatteras Yachts throughout the state of Florida (excluding the Florida panhandle) and the states of New Jersey, New York, and Texas; the exclusive dealer for Cabo Yachts throughout the states of Florida, New Jersey, and New York; the exclusive dealer for Boston Whaler in many of its markets; the exclusive dealer for Bayliner in many of its markets, and the exclusive dealer for Meridian Yachts in most of its markets. In addition, it is the exclusive dealer for Italy-based Azimut-Benetti Group for Azimut mega-yachts, yachts, and other recreational boats for the Northeast United States from Maryland to Maine and the state of Florida.
New Boat Sales
The Company sells recreational boats, including pleasure boats and fishing boats. The products it offers are manufactured by Brunswick, the manufacturer of recreational boats, including Sea Ray pleasure boats, Boston Whaler fishing boats, Cab! o Yachts, Hatteras Yachts, and Meridian Yachts. During the fiscal year ended September 30, 2011 (fiscal 2011), it derived approximately 48% of its revenue from the sale of new boats manufactured by Brunswick. During fiscal 2011, new boat sales accounted for 60.6% of its revenue. It offers recreational boats in most market segments. Hatteras Yachts and Azimut are two of the premier yacht builders. The motor yacht product lines include designs with live-aboard luxuries. Hatteras offers a flybridge with guest seating; covered aft deck, which may be fully or partially enclosed, providing the boater with additional living space; an elegant salon; and multiple staterooms for accommodations.
Hatteras Yachts and Cabo Yachts are convertible yacht builders and offer designs with live-aboard luxuries. Convertibles are primarily fishing vessels, which are well equipped to meet the needs of even the most serious tournament-class competitor. Hatteras features interiors that offer luxurious salon/galley arrangements, multiple staterooms with private heads, and a cockpit that includes a bait and tackle center, fishbox, and freezer. Cabo is known for spacious cockpits and accessibility to essentials, such as bait chests, livewells, bait prep centers, and tackle lockers.
Sea Ray and Meridian pleasure boats target both the luxury and the family recreational boating markets and come in a range of configurations to suit each customer�� particular recreational boating style. Sea Ray sport yachts and yachts serve the luxury segment of the recreational boating market and include living accommodations with a salon, a fully equipped galley, and multiple staterooms. Sea Ray sport yachts and yachts are available in cabin, bridge cockpit, and cruiser models. Meridian sport yachts and yachts are available in sedan, motoryacht, and pilothouse models.
The fishing boats the Company offers, such as Boston Whaler and Grady White, range from entry level models to advanced models designed for fish! ing and w! ater sports in lakes, bays, and off-shore waters, with cabins with limited live-aboard capability. The fishing boats feature livewells, in-deck fishboxes, rodholders, rigging stations, cockpit coaming pads, and fresh and saltwater washdowns. The ski boats it offers, such as Malibu, Axis, and Nautique by Correct Craft, range from entry level models to advanced models.
Used Boat Sales
The Company sells used versions of the new makes and models it offers and, to a lesser extent, used boats of other makes and models generally taken as trade-ins. During fiscal 2011, used boat sales accounted for 19.0% of its revenue, and 77.1% of the used boats it sold were Brunswick models. It also sells used boats at various marinas and other offsite locations throughout the country. In addition, it offers the Sea Ray Legacy warranty plan available for used Sea Ray boats less than six years old. The Legacy plan applies to each qualifying used Sea Ray boat, which has passed a 48-point inspection, and provides protection against failure of most mechanical parts for up to three years.
Marine Engines, Related Marine Equipment, and Boating Parts and Accessories
The Company offers marine engines and propellers, substantially all of which are manufactured by Mercury Marine, a division of Brunswick. It sells marine engines and propellers primarily to retail customers as replacements for their existing engines or propellers. It also sells a range of marine parts and accessories at its retail locations, at various offsite locations, through its print catalog, and through the Website portal. These marine parts and accessories include marine electronics; dock and anchoring products, such as boat fenders, lines, and anchors; boat covers; trailer parts; water sport accessories, such as tubes, lines, wakeboards, and skies; engine parts; oils; lubricants; steering and control systems; corrosion control products, service products; high-performance accessories, such as propellers and instr! uments, a! nd a complete line of boating accessories, including life jackets, inflatables, and water sports equipment. It also offers novelty items, such as shirts, caps, and license plates bearing the manufacturer�� or dealer�� logos. The sale of marine engines, related marine equipment, and boating parts and accessories accounted for 6.2% of the Company�� during fiscal 2011 revenue.
Maintenance, Repair, and Storage Services
The Company provides maintenance and repair services at most of its retail locations, with extended service hours at certain of its locations. In addition, in many of its markets, it provides mobile maintenance and repair services at the location of the customer�� boat. The Company performs both warranty and non-warranty repair services. It derives the majority of its warranty revenue from Brunswick products. Its maintenance and repair services are performed by manufacturer-trained and certified service technicians. At many of the Company�� locations, it offers boat storage services, including in-water slip storage and inside and outside land storage. Maintenance, repair, and storage services accounted for 8.9% of its revenue during fiscal 2011. This includes warranty and non-warranty services.
F&I Products
At each of the Company�� retail locations, it offers the customers the ability to finance new or used boat purchases and to purchase extended service contracts and arrange insurance coverage, including boat property, credit life, and accident, disability, and casualty insurance coverage (collectively, F&I). The Company also offers third-party extended service contracts under which, for a predetermined price, it provides all designated services pursuant to the service contract guidelines during the contract term at no additional charge to the customer above a deductible. Credit life insurance policies provide for repayment of the boat financing contract if the purchaser dies while the contract is outstanding. Accident an! d disabil! ity insurance policies provide for payment of the monthly contract obligation during any period in which the buyer is disabled. Property and casualty insurance covers loss or damage to the boat.
Brokerage Services
Through employees or subcontractors that are licensed boat or yacht brokers, the Company offers boat or yacht brokerage services at most of its retail locations. It also offers for sale brokered boats or yachts, listing them on various Internet sites, advising its other retail locations, and posting them on its Website, www.MarineMax.com. Its maintenance and repair services, including mobile service, also are generally available to its brokerage customers.
Advisors' Opinion:- [By John Udovich]
As we head towards Black Friday, small cap specialty retail stocks United Online, Inc (NASDAQ: UNTD), TravelCenters of America LLC (NYSE: TA) and MarineMax, Inc (NYSE: HZO) have the distinction of being the best performing small cap�specialty retail stocks for this year (according to Finviz.com) with gains of 181.2%, 123.8% and 71.8%, respectively. With those returns in mind, what are these small cap specialty retail stocks doing right and will the performance last through the all important holiday season? Here is what new and existing investors and traders alike need to know or consider:
Top 10 Recreation Stocks To Own Right Now: Smith & Wesson Holding Corp (SWHC)
Smith & Wesson Holding Corporation (Smith & Wesson), incorporated on June 17, 1991, is a manufacturer of firearms. The Company manufactures a range of handguns, modern sporting rifles, hunting rifles, black powder firearms, handcuffs, and firearm-related products and accessories for sale to a range of customers, including gun enthusiasts, collectors, hunters, sportsmen, competitive shooters, individuals desiring home and personal protection, law enforcement and security agencies and officers, and military agencies in the United States and globally. It sell its products under the Smith & Wesson brand, the M&P brand, the Thompson/Center brand, and the Walther brand. The Company manufactures its firearm products at its facilities in Springfield, Massachusetts and Houlton, Maine. On July 26, 2012, it sold all of the assets of Smith & Wesson Security Solutions, Inc.
Firearms
During the fiscal year ended April 30, 2012 (fiscal 2012), the Company introduced multiple new handgun and modern sporting rifle models, and one new bolt action rifle platform. The Company's rifle introductions included the addition of the M&P15 300 Whisper to the Company's line of modern sporting rifles. As of April 30, 2012, the Company participated in three categories of the long-gun market and both core categories of the handgun market.
Handguns
The Company manufactures an variety of handgun models that include revolvers and pistols. A revolver is a handgun with a cylinder that holds the ammunition in a series of rotating chambers that are successively aligned with the barrel of the firearm during each firing cycle. There are two general types of revolvers: single-action and double-action. The Company's small-frame revolvers have been carried by law enforcement personnel and personal defense-minded citizens. The Company's revolvers are available in a variety of models and calibers, with applications in virtually all professional and personal markets.
The Company�� M! &P15 Series of modern sporting rifles are designed to satisfy the functionality and reliability needs of global military, law enforcement, and security personnel. These rifles are also popular as sporting target rifles and are sold to consumers through the Company's sporting good distributors, retailers, and dealers. The Company has a range of product portfolio of modern sporting rifles, which includes a lower price-point, sport model, a .22 caliber model, and a fully automatic model designed for the exclusive use of military and law enforcement agencies throughout the world.
Hunting Firearms
The Company manufactures three lines of bolt-action rifles under its Thompson/Center brand consisting of several models in each line. The Company's hunting rifles are offered in 16 different calibers. Bolt-action rifles operate by the cycling of a bolt handle that allows for both the loading and unloading of rounds through a magazine fed system.
During fiscal 2012, the Company introduced the Dimension bolt action rifle platform. Under the Company's Thompson/Center brand, the Company also offers seven models of American-made single shot black powder, or muzzle loader, firearms. The Company offers eight models of interchangeable, single shot firearm systems that deliver numerous gun, barrel, caliber configurations, and finishes. These systems can be configured as a center-fire rifle, rim-fire rifle, shotgun, black powder firearm, or single-shot handgun for use across the entire range of big- and small-game hunting.
Handcuffs
The Company manufactures handcuffs and restraints in the United States. The Company fabricates these products from the carbon or stainless steel.
Smith & Wesson Academy
Through the Smith & Wesson Academy, the Company offers instruction designed to meet the training needs of law enforcement and security customers worldwide. Classes are conducted at the Company's facility in Springfield, Massachusetts or o! n locatio! n around the world.
Specialty Services
The Company's services include forging, heat treating, finishing, and plating. It provides services to third-party customers.
The Company competes with Ruger,Taurus, Beretta, Glock, Heckler & Koch, Sig Sauer, Springfield Armory, Bushmaster, Rock River, Stag Arms, DPMS, Browning, Marlin, Remington, Ruger, Savage, Weatherby, CVA, Traditions, and Winchester.
Advisors' Opinion:- [By Garrett Cook]
Shares of Smith & Wesson Holding (NASDAQ: SWHC) were 9.38 percent to $15.41 after the company issued downbeat forecast for the first quarter and fiscal year.
Top 10 Recreation Stocks To Own Right Now: IMAX Corp (IMAX)
IMAX Corporation, incorporated on January 1, 2002, together with its wholly owned subsidiaries, is an entertainment technology companies, specializing in motion picture technologies and presentations. The Company�� customers who purchase lease or otherwise acquire the IMAX theatre systems are theatre exhibitors, which operate commercial theatres, museums, science centers, and destination entertainment sites. IMAX theatre systems combine the Company�� digital re-mastering movie conversion technology (IMAX DMR), projectors with equipment and automated theatre control systems, sound system components, screens, theatre geometry, and theatre acoustics.
The Company�� principal business is the design, manufacture and delivery of theater systems (IMAX theater systems). The Company�� customers who purchase, lease or otherwise acquire the IMAX theater systems through joint revenue sharing arrangements are theater exhibitors that operate commercial theaters (particularly multiplexes), museums, science centers, or destination entertainment sites. The Company does not own IMAX theaters, but licenses the use of its trademarks along with the sale, lease or contribution of the IMAX theater system.
IMAX Systems, Theater System Maintenance and Joint Revenue Sharing Arrangements
The Company provides IMAX theater systems to customers on a sales or long-term lease basis with an initial 10-year term. These agreements consist of initial fees and ongoing fees (which can include a fixed minimum amount per annum and contingent fees in excess of the minimum payments) and maintenance and extended warranty fees. The initial fees vary depending on the system configuration and location of the theater and generally are paid to the Company in installments between the time of system signing and the time of system installation. Ongoing fees are paid over the term of the contract, commencing after the theater system has been installed and are generally equal to the greater of a fixed minimu! m amount per annum or a percentage of boxoffice receipts. The Company also provides IMAX theater systems to customers under joint revenue sharing arrangements, pursuant to which the Company provides the IMAX theater system in return for a portion of the customer�� IMAX box-office receipts, and in some cases concession revenues and/or a small upfront or initial payment. As at December 31, 2012, the Company had 316 theaters in operation under joint revenue sharing arrangements.
Production and Digital Re-Mastering (IMAX DMR)
The Company�� technology digitally re-masters Hollywood films into IMAX digital cinema package format or 15/70-format film. IMAX DMR digitally enhances the image resolution of motion picture films for projection on IMAX screens while maintaining or enhancing the visual clarity and sound quality to levels for which The IMAX Experience is known. This technology enabled the IMAX theater network to release Hollywood films simultaneously with domestic release. In a typical IMAX DMR film arrangement, the Company will receive a percentage of net box-office receipts of any commercial films released in the IMAX network, which is generally 10-15%, from a film studio for the conversion of the film to the IMAX DMR format and access to its distribution platform. During the year ended December 31, 2012, 35 films converted through the IMAX DMR process were released to theaters within the IMAX network. As of December 31, 2012, the Company released 23 IMAX DMR titles to theaters within the IMAX network. During 2012, five local language IMAX DMR films were released, including one French film, Houba! On the Trail of the Marsupilami: The IMAX Experience and four Chinese IMAX DMR titles: Tai Chi 0: An IMAX 3D Experience, Tai Chi Hero: An IMAX 3D Experience, Back to 1942: The IMAX Experience and CZ12: The IMAX Experience.
Film Distribution and Post-Production
The Company is also a distributor of large-format films, primarily catering to its institution! al theate! r partners. The Company generally distributes films, which it produces or for which it has acquired distribution rights from independent producers. The Company generally receives a percentage of the theater box-office receipts as a distribution fee. Films produced by the Company are typically financed through third parties, whereby the Company will generally receive a film production fee in exchange for producing the film and a distribution fee for distributing the film. The Company utilizes third-party funding for the majority of original films it produces and distributes. In 2012, the Company, along with Warner Bros. Pictures (WB) and MacGillivray Freeman Films (MFF) released an original title, To the Artic 3D: An IMAX 3D Experience.
The Company derives a small portion of its revenues from other sources. As of December 31, 2012, the Company had four owned and operated theaters. In addition, the Company has a commercial arrangement with one theater resulting in the sharing of profits and losses and provides management services to two theaters. The Company also rents its two dimensional (2D) and three dimensional (3D) large-format film and digital cameras to third party production companies. The Company maintains cameras and other film equipment and also offers production advice and technical assistance to both documentary and Hollywood filmmakers. Additionally, the Company generates revenues from the sale of after-market parts and 3D glasses. As of December 31, 2012, approximately 54.2% of IMAX systems in operation were located in the United States and Canada. As at December 31, 2012, approximately 45.8% of IMAX systems in operation were located within international markets (other than the United States and Canada).
Advisors' Opinion:- [By Tim Beyers]
Iron Man 3 is a huge hit everywhere, especially in China, where IMAX (NYSE: IMAX ) booked $1.8 million in gross receipts -- a new record -- as Walt Disney (NYSE: DIS ) set a high watermark of its own.
Top 10 Recreation Stocks To Own Right Now: Digital Cinema Destinations Corp (DCIN)
Digital Cinema Destinations Corp., incorporated on July 29, 2010, operates eight theatres and 73 screens located in Westfield, New Jersey (Rialto), Cranford, New Jersey (Cranford), Bloomfield, Connecticut (the Bloomfield 8) and five theatres located in central Pennsylvania (Cinema Centers). During the fiscal year ended June 30, 2012 (fiscal 2012), the Company operates eight theatres, two in New Jersey, with a total of 11 screens, one in Connecticut, with a total of 8 screens and five in central Pennsylvania, with a total of 54 screens. In March 2014, the Company announced that it has completed the acquisition of a seven screen theater in Churchville, MD from Flagship Cinemas.
The Rialto is a six-screen theatre located in downtown Westfield, New Jersey, which has a population of approximately 30,000 people. The Bloomfield 8 is an eight-screen theatre located at the Wintonbury Mall in the town of Bloomfield, Connecticut, which is a New England town of over 20,000 people that is home to many sites that are on the National Register of Historic Places and is approximately 5.5 miles from downtown Hartford, Connecticut. Cinema Centers consists of a chain of five theatres with 54 screens located throughout central Pennsylvania. All of the Cinema Centers theatres are in free zones. The 11-screen Cinema Center of Bloomsburg theatre is located in Bloomsburg, Pennsylvania. Bloomsburg, a college town of approximately 13,000 people, is located midway between Wilkes Barre and Williamsport, Pennsylvania. The 12-screen Cinema Center of Camp Hill theatre is located in Camp Hill, Pennsylvania, just outside of Harrisburg, Pennsylvania. Harrisburg is the state capital of Pennsylvania with a population of approximately 50,000 people.
The 10-screen Cinema Center at Fairgrounds Square Mall is located in Reading, Pennsylvania. The Company�� Cinema Centers, had one digital projector, RealD 3D enabled. The 12-screen Cinema Center at Selinsgrove is located in Selinsgove, Pennsylvania. Selinsgrove is ! a historic town located on the Susquehanna River with a population of approximately 27,000 people located within five miles of the theatre. The nine-screen Cinema Center of Williamsport is located in Williamsport, Pennsylvania.
The Company competes with Regal Entertainment Group, AMC Entertainment Inc., Clearview and Cinemark USA, Inc.
Advisors' Opinion:- [By Erin McCarthy]
Carmike Cinemas Inc.(CKEC), the nation’s fourth-largest movie theater chain, said Thursday it is acquiring Digital Cinema Destinations Corp.(DCIN), a smaller rival that does business as Digiplex.
