Cineplex Inc.

Good day and thank you for standing by. Welcome to the Cineplex first quarter 2026 earnings call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you'll need to press star 1 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1 1 again. Please be advised that today's conference is being recorded. I'd now like to hand the conference over to Rehan Asmat, Vice President, Investor Relations. Please go ahead.

Good morning, everyone. I would like to welcome you to Cineplex's first quarter 2026 earnings release conference call. I'm Rehan Asmat, Vice President, Investor Relations, Corporate Development, and Financial Planning and Analysis at Cineplex. Joining me today are Ellis Jacobs, our President and Chief Executive Officer, and Gore Nelson, our Chief Financial Officer. I'll remind you that certain 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 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 Alex Jacobs.

Thank you, Rayhan, and good morning, everyone. I'm pleased to join you today to discuss Cineplex's first quarter 2026 results. The first quarter of 2026 built on the momentum we've been seeing across the industry in our business with attendance and box office increasing meaningfully year over year. We delivered our highest first quarter revenue since 2019, and our Q1 box office reached 125% of the prior with record Q1 results across several key operating metrics. More importantly, the performance we saw on Q1 reinforces what we have long known to be true. When there is quality, consistency, and breadth in the film slate, theatrical doesn't just perform well, It creates unforgettable moments that bring Canadians together. Before I speak to our strong first quarter results, I'd like to talk about the tremendous energy coming out of CinemaCon. This year's event reinforced the strength of what's ahead with strong early reactions for several high-profile upcoming releases, including Toy Story 5, Christopher Nolan's The Odyssey, Spider-Man Brand New Day, Doom Part III, and Avengers Doom Day. I haven't experienced this level of buzz coming out of CinemaCon in years. The presentations this year amplified the excitement surrounding these highly anticipated releases and the breadth and quality of the content for 2026 and beyond. Just as importantly, CinemaCon reinforced the industry's long-term commitment to the theatrical business. Amazon MGM reaffirmed its plans to theatrically release at least 15 films per year, making it clear that theatrical is not just an experiment, but a core part of its strategy. We also saw continued support for meaningful, exclusive theatrical windows, with studios such as Universal and Paramount reaffirming windows of at least 45 days, joining Sony and Disney, whose films already extend beyond that threshold. Amazon NGM further demonstrated its commitment to longer windows by delaying the streaming release of Project Hail Mary. In addition, David Ellison outlined plans for up to 30 theatrical releases per year should the proposed Warner Brothers and Paramount transaction receive regulatory approval. While that process remains ongoing, the emphasis on theatrical output reflects the broader recognition of its importance in the life cycle of the film. Taken together, these developments reinforce the confidence studios have in the theatrical release being foundational to a film's success designed to create scale, impact, and cultural relevance. That positioning aligns well with Cineplex's strengths from our focus on hospitality and community building that brings audiences together. to our extensive premium format offerings that elevate the theatrical experience. And recently, Netflix announced that the upcoming Narnia film will now receive a wide release with a 49-day exclusive theatrical window in 2027 instead of only a limited release in IMAX screens. Non-traditional studios continue to expand their theatrical involvement as they increasingly recognize the benefits of theatrical release can have in elevating awareness and long-term performance. Finally, new agreements with both the Writers Guild and the Screen Actors Guild have resolved any uncertainty around labor negotiations. While the industry was not anticipating further disruptions, these agreements provide greater clarity and stability into the production pipeline as we look forward. The first quarter of 2026 featured a diverse slate with strength across original franchise and international programming. Five films generated more than 100 million in domestic box office during the quarter compared to two films in the first quarter of the prior year. This performance reflects the breadth of the slate with films resonating across genres and demographics and the importance A steady theatrical pipeline plays in solidifying moviegoing as a recurring entertainment choice. Original films played a particularly important role in Q1. Project Hail Mary delivered an outstanding performance and has become the highest-grossing Amazon MGM release of all time and the studio's first film to surpass $300 million in domestic box office, a notable achievement for a non-traditional studio. The film resonated strongly with our guests, with approximately two-thirds of its Q1 box office generated from premium experiences and Cineplex over-indexing significantly versus the U.S., capturing almost 10% of total domestic revenue. Pixar's Hoppers achieved the studio's biggest opening for original titles since 2017, and along with Gold, highlighted strong audience appetite for fresh storytelling in animated family films on the big screen. The strength in original storytelling was complemented by continuing demand for franchise films. Screen 7 set new records for the franchise, becoming both the largest opening and highest-grossing film in the series, underscoring the appeal of established intellectual property. 30% of our first quarter box office was generated from films released in 2025, including franchise titles such as Avatar Fire and Ash and Zootopia II, highlighting the value of extended theatrical run. International programming continues to be a distinct strength for Cineplex, representing approximately 13% of our first quarter box office, more than double the domestic average. Sundar, The Revenge became the highest-grossing Hindi-language film in North American history and the first to surpass $25 million domestically, with Cineplex capturing more than 30% of the film's total box office. While Don't Deride the Revenge is a standout film, it represents less than half of our international box office in the first quarter. That outcome reflects both the breadth of international content we curate and our ability to use data and analytics to understand where films will perform best and how to connect them with the right audiences. These capabilities allow us to consistently over-index on international releases. Guest demand for premium experiences remains a critical differentiator for Cineplex, and we saw that demand strengthened year over year in the first quarter. By offering a broad range of premium formats that align with how guests want to experience films, we translated those preferences into record financial performance. Box office for patrons reached a first quarter record of $12.94, while concession for patrons also delivered a Q1 record of $9.54. Turning to our media, our first quarter results reflected the expected impact of the Olympics, which temporarily diverted advertising spend towards live sporting events. The tough year-over-year comparison also reflects particularly strong pharmaceutical spending in the prior year. Despite that dynamic, our cinemas remain a high-attention premium environment for advertisers. As we look ahead to the remainder of 2026, a strong firm slate provides a backdrop for advertiser demand, and we are encouraged by the opportunities we see in the balance of the year. On location-based entertainment, delivered store-level margins that are targeted 25% despite the broader macroeconomic pressures facing the industry that have contributed to a year-over-year decline in revenues. This performance emphasizes our focus on optimizing operations. Looking ahead, we see a number of opportunities to drive increased traffic and engagement. The FIFA World Cup is expected to bring meaningful demand into our locations in the summer. In June of 2026, we'll be opening a new Palladium location at Vaughan Mills, one of Canada's most highly visited retail destinations. We also continue to enhance the guest experience through increased convenience and digital engagement. Alongside our mobile ordering capabilities, we recently expanded our offerings with the launch of our online merchandise shop. giving guests more ways to buy exclusive merchandise for the films they love. Our Cine Club membership surpassed 230,000 members at the end of March, with members showing higher visit frequency, stronger premium adoption, and increased spending per visit. We also continue to evolve the guest experience through initiatives such as Monday Surprise Premieres, which continues to be well received and helps create moments of exclusivity and discovery. Alongside programs such as $5 Tuesday, these initiatives play an important role in driving attendance and frequency and are particularly effective at re-engaging lapsed moviegoers. By bringing guests back into the theatrical environment, we help restart the moviegoing cycle from experiencing trailers and upcoming films on the big screen to ongoing communication that builds awareness and supports increased visitation. Within our broader loyalty ecosystem, Tangerine and Shell joined the ScenePlus program in Q1, expanding the program's everyday relevance to no more than 15 million members. Following a successful launch in Alberta during the first quarter, The Shell Partnership will roll out nationwide in May. Sanjireen has also recently launched a new credit card that allows customers to earn and redeem C-plus points, further extending the program into everyday financial services. With the ability to earn and redeem points across groceries, entertainment, dining, travel, and now fuel, ScenePlus continues to create more touchpoints in the day-to-day lives of Canadians. I'd also like to provide a brief update on the online booking fee. The Federal Court of Appeal upheld the Competition Tribunal's decision regarding the presentation of our online booking fee. We respectfully disagree with that decision and continue to believe the fee has always been presented clearly. We have filed an application for leave to appeal to the Supreme Court of Canada and have been granted an interim stay regarding a payment of the administrative warranty penalty and cost, pending the Supreme Court of Canada's decision on Cineflex's application seeking leave to appeal. Looking forward, as we look ahead, momentum from the first quarter has clearly carried into the second quarter. the Super Mario Galaxy movie delivered the largest opening of the year so far and the highest-grossing Easter weekend in Cineplex history, reinforcing the power of theatrical plays in creating cultural moments. From March 1st through the end of the Easter weekend, Cineplex operated nine of the top 20 grossing theaters domestically, reflecting the appeal of our premium format, the quality of our circuit, and our strong operational execution. The second quarter has also benefited from the release of Michael, which has achieved the biggest opening for a biopic and Lionsgate's biggest opening since 2015, marking another important chapter for Cineplex Pictures, which is distributing the film in Canada. More broadly, 2026 is shaping up to be a strong year for our distribution business with momentum building from the continued performance of The Housemates, a late 2025 release that generated meaningful box office in the first quarter, the release of Michael and Q2, and looking ahead to The Hunger Games' Sunrise on the Reaping later this year. Together, these films reflect the growing scale of Cineplex Pictures and our ability to consistently connect titles with Canadian audiences. Capitalizing on the success of the Super Mario Galaxy movie and Michael, our April box office increased 17% over the prior year, driven by the strength of the slate alongside our ability to create compelling, premium environments in which audiences choose to experience these films. More recently, the Devil Wears Prada 2 delivered a record-breaking opening weekend, well ahead of the original film, reinforcing the strength of adult-screen event-driven content. This momentum carried through to this past weekend, one of the strongest domestic box office periods in recent years. Notably, it marked just the third weekend since 2019 where three films each generated over $30 million of box office, with Mortal Kombat 2 opening strongly, with Michael and the Devil Wears Prada 2 continuing to perform. Driven by the strength of the slate, alongside our ability to create compelling premium environments in which audiences choose to experience these films, our second quarter box office to date is up 23% over the prior year. The remainder of 2026 continues to shape up as one of the most compelling film slates we've seen in years, defined by depth and diversity across multiple categories. Family audiences will be well served with a strong lineup that includes Toy Story 5, Minions and Monsters, a live-action Moana, and Jumanji Open World. The superhero universe is also featured prominently with highly anticipated releases including Supergirl, Spider-Man Brand New Day, already the most watched trailer of all time, Clayface, and Avengers Newsday. Original storytelling remains an important driver with titles such as Steven Spielberg's Disclosure Day, Christopher Nolan's Epic The Odyssey, Digger starring Tom Cruise and Pixar's Hex offering fresh content. Beyond that, a wide range of established IP round out the slate from sci-fi films, Star Wars, The Mandalorian, and Grogu, and Dune Part III to the comedy, Forkering Law. With this breadth across genres and a continued focus on the guest experience, we believe Cineplex is well-positioned to capture the full value of a strengthening theatrical landscape. I will now turn the call over to Gordon Elston, our Chief Financial Officer, to walk through the financials in more detail.