Cineplex Inc.

Ladies and gentlemen, thank you for joining us and welcome to the Cineflex Inc. 3rd Quarter 2025 Earnings Conference Call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please raise your hand. If you have dialed in to today's call, please press star 9 to raise your hand. And star six to unmute. I will now hand the conference over to Ryan Asmat. Please go ahead.

Good morning, everyone, and thank you for joining us to discuss Inflex's third quarter 2025 results. I'm Rayvon Asmat, Vice President of Investor Relations, Corporate Development and Financial Planning and Analysis. Joining me today are Ellis Jacob, our President and Chief Executive Officer, and Gordon Elson, our Chief Financial Officer. I remind you that soon statements being made are forward-looking and subject to various risks and uncertainties. Such forward-looking statements are based on management's beliefs and assumptions regarding the information currently available. Actual results may differ materially from those expressed in forward-looking statements. Information regarding factors that could cause results to vary can be found in the company's most recently filed annual information form and management discussion and analysis. Following today's remarks, we will close the call with our customary question and answer period. I will now turn the call over to Ellis Jacob.

Thank you, Rehan, and good morning, everyone. I'm pleased to share our 2025 third quarter results with you today. After a softer start to the year, the second and third quarters delivered steady performances driven by a consistent supply of high-performing, diverse titles with growing consumer demand for premium experiences. While there were strong contributions this quarter, attendance was down versus last year, as last August had the record-breaking performance of Deadpool and Wolverine. We reported a third-quarter box office per patron of $13.23, increasing by 4 cents, supported by sustained demand for premium-priced products. Concession per patron was $9.65, down 2%, primarily due to the Labor Day weekend promotion, which included discounted offers on tickets and popcorn. Taking a closer look at content in Q3, there were standout performances across a variety of genres, including action, horror, and anime. Franchise titles like Superman, Fantastic Four First Steps, and The Conjuring Lost Rights delivered record-breaking results, all becoming the highest-grossing titles within their franchise. Beyond franchises and sequels, the third quarter had a nice blend of original content that performed exceptionally well. Standout original horror film Weapons exceeded expectations and topped the box office for four consecutive weeks in 2025. And F1, the movie, continued its strong theatrical run into Q3, making it the biggest Apple original film ever. Our alternative content offering continues to demonstrate solid results, driving audience engagement and diversifying our programming slate in ways that resonate with evolving consumer preferences. Anime cult classic Demon Slayer, Kematsu no Yaiba, Infinity Castle became the highest grossing foreign language film in history, both domestically and at Cineplex. Its massive fan following and deeply loyal global audience made it a strategic win for our alternative content portfolio, driven in large part by our ability to engage a varied and diverse audience. International cinema accounted for 13.6% of our box office in Q3, up from 9.3% last year, a testament to our growing ability to find and attract the right audiences for these films. Punjabi language comedy Chal Meraput 4 delivered impressive results, becoming one of the highest-grossing Punjabi films in Cineplex history, with approximately 80% of its domestic box office attributable to our circuit. This reflects our industry-leading approach to film scheduling and our success in attracting high-value audience segments. International cinema also draws key retail demographics sought by advertisers, which is becoming a growing and unique offering for our cinema media team. In addition to the variety of content drawing moviegoers to theaters, consumers are also choosing a more immersive experience. We're using predictive analytics in our marketing efforts to match a moviegoer to a premium experience while also leveraging our loyalty program to reward moviegoers who choose an enhanced experience for the first time. Nearly 45% of our third quarter box office came from premium experiences highlighted by the fact that our three highest-grossing films in the quarter generated over 60% of their respective box office performance from these formats. We started the fourth quarter with Taylor Swift, the official release party of the show goal, which energizes the typically quieter period and reinforces the power of varied programming to bring audiences into theaters. Artists are increasingly turning to the theatrical experience as a way to unite fans and create shared cultural moments, positioning our theaters as dynamic venues for more than just movies. Our LBE business continues to play a part in our broader entertainment strategy, offering guests fun-filled social experiences in our venues nationwide. In Q3, LV revenue reached a third quarter record of $34.6 million, up 11.3% year-over-year, driven by the addition of three new locations. Macroeconomic headwinds impacted food and beverage spending, resulting in same-store revenue declining 3.3% and same-store location margins delivering 21%. These locations are demonstrating resiliency in a more challenging environment while new venues are continuing to ramp up. Despite Q3 results being below our expectations, we remain optimistic as we enter our typically busier fourth quarter. With a heightened demand for groups and events activity in Q4, we are focused on building momentum and driving performance across our palladium and the rec room locations. As we look at our cinema media business in the quarter, despite a softer advertising market, it continues to perform well. Cinema media Q3 revenues increased by 6.1% to $19.2 million despite a decrease in attendance. This growth was primarily driven by an increase in showtime revenues, which continues to be a key driver of advertiser engagement. Cinema media per patron reached $1.59, a 16.1% increase over the prior year, reflecting the diversity of the film slate during the quarter and strong sales despite a challenging media environment. Titles with broad appeal to key consumer demographics helped attract incremental advertising spend even in a relatively slower market. We also continue to leverage our expertise in data and analytics to optimize campaign performance and drive revenue growth. Last month, we announced we have entered into a definitive agreement to sell Cineplex Digital Media to Creative Realities Inc. for gross cash proceeds of $70 million subject to customary closing adjustments. This strategic transaction unlocks meaningful value for shareholders and immediately strengthens our balance sheet, providing capital for opportunistic share buybacks, debt reduction, and general corporate purposes. Importantly, Cineplex Media will continue as CDM's exclusive advertising sales agent for its digital out-of-home networks across Canada, ensuring continuity for our partners and clients. CDM has grown into an industry-leading digital solutions company over the past 16 years, and this transaction reflects our commitment to optimizing our portfolio and delivering long-term value. Before I close, I'd like to provide a brief update on our appeal of the Competition Tribunal's decision regarding our online booking fee. We filed our notice of appeal in 2023. At that time, and with consent of the Competition Bureau, the Federal Court of Appeal granted us a stay of the administrative monetary penalty imposed against us. This stay will remain in effect until the Federal Court of Appeal has made a decision in our case. Our appeal was heard by the Federal Court of Appeal on October 8, 2025. We continue to believe that we complied with the letter and spirit of the law, and we anticipated decisions sometime in the first half of next year. Looking forward, from April through September, box office revenues reached 110% of the same period in 2024. While August faced a tough year-over-year comparison due to the exceptional performance of Deadpool and Wolverine, July 2025 emerged as the second highest box office month since the pandemic, trailing only the Barbenheimer phenomenon. This signals positive momentum as we enter the fourth quarter. Looking ahead, the remainder of 2025 looks promising. While October is typically a slower month in the theatrical calendar, November and December are shaping up to be strong with a robust slate of highly-anticipated titles, including Predator Badlands, The Running Man, Wicked for Good, the sequel to last year's Oscar-nominated Wicked, which is already generating early buzz and fan anticipation with very strong pre-sales. Zootopia 2, Five Night at Freddy's 2, Avatar, Fire and Ash, the third chapter in James Cameron epic saga, and the Spongebob movie Search for Squarepants. We are also seeing increased interest in theatrical releases from streaming platforms, with Netflix announcing that multiple titles will have an exclusive theatrical run before they hit their service. Some of these titles include K-pop Demon Hunters, Frankenstein, Jay Kelly, and the latest from the Knives Out franchise, Wake Up Deadman, a Knives Out mystery. Cineplex Pictures is contributing to this momentum with a fourth quarter lineup that includes The Housemaid, starring Sidney Sweeney and Amanda Seyfried, and the third film in the Now You See Me franchise. Our diversified business model and commitment to delivering premium entertainment experiences and the strong film slate ahead positions us well for continued success into the fourth quarter. Before I close, I'd like to announce that Kevin Johnson, CEO of WPP Media Canada and President of WPP Canada, has been appointed to the Board of Directors. Mr. Johnson is a recognized leader in the Canadian media and advertising industry and has more than two decades of experience driving growth and innovation with his deep expertise in marketing strategy and new business development. I will now turn the call over to Gordon Nelson, our Chief Financial Officer, to walk you through the financials in more detail.