Cineplex Inc.

Good day and thank you for standing by. Welcome to the Cineplex Second 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 Massa Rajali. Please go ahead.

Good morning, everyone. I would like to welcome you to Cineplex's second quarter 2026 earnings release conference call. I'm Massa Rajali, Vice President, Corporate Development and Investor Relations at Cineplex. Joining me today are Ellis Jacob, our President and Chief Executive Officer, and Gordon Ellison, 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 the information currently available. Actual results may differ materially from those expressed in the 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's discussion analysis. Following today's remarks, we'll close the call with our customer question and answer period. I will now turn the call over to Ellis Jacob.

Thank you, Massa, and good morning, everyone. I am extremely excited to be speaking with you today at a defining moment for Cineplex. We have just come off the highest grossing week in our company's history. Box office results were more than 20% ahead of our previous record set during the release of Star Wars The Force Awakens in December 2015, which is the highest-grossing film of all time at the domestic box office. That achievement speaks to the exceptional strength of the current film slate and the positive momentum we are seeing in our business. Against that backdrop, I'm pleased to share Cineplex's tremendous second quarter 2026 results, which demonstrates how we are effectively translating the current content environment into strong financial results. We deliver total revenue of $383.7 million, resulting in a new second quarter revenue record and growing nearly 10% year over year. We also delivered significant EBITDA growth of more than 20% and improved cash flow generation. This quarter's success was not dependent on a single blockbuster or a small number of tenfold releases. Instead, consumers embraced a broad range of compelling content across multiple genres and formats. These trends reinforce what we have long believed. When audiences are provided with quality content on a consistent basis, moviegoing becomes part of the cultural conversation and a recurring entertainment choice. The steady flow of diverse, compelling content we are seeing today creates a healthy and more durable industry environment, giving us continued confidence in the long-term growth outlook for theatrical exhibitions. What gives us further conviction is Cineplex's unique position within the industry. We are Canada's market leader with more than 150 theaters nationwide, leading premium formats, a proprietary cinema media platform, a growing film distribution business through Cineplex Pictures, one of the country's strongest loyalty ecosystems through ScenePlus, and leading location-based entertainment brands with The Rec Room and Palladium. These assets create multiple earning streams, deepen our relationship with guests, create robust data opportunities, and provide competitive advantages that are difficult to replicate. Together, these assets position Cineplex to convert improving industry conditions into sustainable long-term growth, stronger profitability, and increasing cash flow generation. Let's get into what drove our record performance in the quarter. The second quarter showcased one of the strongest and most diverse content slates we have seen in years. Family films were a significant driver of performance. The Super Mario Galaxy movie became the first film of 2026 to surpass one billion globally. Toy Story 5 delivered a new franchise opening record and subsequently joined the year's billion-dollar releases. This demonstrates the appeal these beloved characters have across generations and show how compelling stories can bring audiences to theaters at scale. At the same time, audiences are also eager for original storytelling. Michael became the highest-grossing biopic of all time whereas Obsession and Backrooms exceeded industry expectations, ultimately becoming two of the highest-grossing horror films in Cineplex history. Obsession has now generated more than $250 million at the domestic box office, a remarkable achievement for an independent horror film. Backrooms was equally notable, illustrating how content that originates on digital platforms can successfully transition to theatrical exhibition when paired with the right audience. One of the most encouraging trends we observed is the return of the Gen Z audience, a demographic many questioned would fully embrace moviegoing. That trend was certainly evident in the performance of Obsession and Backwoods. This demographic contributed meaningfully to our second quarter results and continues to demonstrate that moviegoing remains a highly relevant and valued social experience. Together, these films reflect the growing influence of our new generation of filmmakers who are connecting with audiences in new and exciting ways. The DevOS Prada 2 outperformed the original film and delivered one of the strongest VIP performances in Cineplex history, while films such as Star Wars, The Mandalorian, and Grogu further demonstrated continued demand for premium large-format experiences. As the market leader in premium formats, Cineplex is well-positioned to capture the growing demand behind this trend. Guests also choose to enhance their movie-going experience through our expanded food and beverage offerings and merchandise programs. During the quarter, we delivered record theater food service revenue and an all-time quarterly concession per patron record of $10.26. Merchandise continued to be an important contributor with sales increasing 45% year-over-year and reaching a new quarterly record. Popular items tied to major releases included themed collectibles from the Super Mario Galaxy movie and Star Wars The Mandalorian and Grogu, as well as the iconic red popcorn purse inspired by the Devil Wears Prada 2. These offerings helped drive incremental spending, deepen guest engagement, and further capitalize on the excitement surrounding major film releases. Overall, the quarter demonstrated healthy consumer demand across a wide range of content, genres, and audience segments. As that demand continues to grow, we are increasingly well positioned not only as an exhibitor, but also as a distributor of content through Cineplex Pictures. Michael became the highest grossing film ever distributed by Cineplex Pictures and was the second highest grossing film at the box office during the quarter. Its performance reinforces the growing scale and relevance of our distribution business and demonstrates our ability to successfully connect quality content with Canadian audiences. Together with our upcoming film slate, including Godzilla Minus Zero and The Hunger Games Sunrise on the Reaping, we remain confident in the continuing growth opportunity for Cineplex Pictures. Alternative programming and events. Beyond traditional films, we continue to give Canadians more reason to visit our theaters. Cineplex is a clear market leader in international content and continues to outperform the domestic market. We continue to view our theaters as premium destinations for shared entertainment experiences of all kinds. During the quarter, we proudly partnered with TSN to present select FIFA World Cup matches in theaters across Canada. Cineplex was the only exhibitor in Canada offering fans the opportunity to watch these matches on the big screen and one of only a handful of exhibitors across North America providing this type of premium viewing experience at scale. The response was extremely encouraging and demonstrated the broader opportunity for Cineplex to be part of large cultural moments. Through major sporting events, concerts, live performances, or specialty content, we see the potential to attract new audiences, create incremental revenue streams, and further maximize the value of our theater network. Media. Turning to cinema media, during the quarter, we delivered year-over-year revenue growth despite a particularly strong prior year comparison. The prior benefited from elevated spending from the pharmaceutical category ahead of patent explorations for certain products. Our cinemas continue to provide advertisers with a premium, high-attention environment. Recent Canadian research conducted for Cineplex Media and launched at our recent media showcase further reinforced the effectiveness and value of cinema advertising. The findings demonstrated strong audience attention, advertising recall, and brand impact. Our media platform also provides meaningful access to Gen Z consumers, one of the most sought after yet increasingly difficult demographics to reach through traditional media channels. As young moviegoers continue to return to theaters, we are uniquely positioned to help brands connect with this audience. Combined with improving attendance, this positions our media business well for continued growth. Location-based entertainment. In location-based entertainment, the industry continues to face macroeconomic headwinds impacting discretionary consumer spending. Our same-store performance has generally tracked in line with the results being experienced by our peers across the industry. We remain focused on driving visitation, optimizing operational execution, and driving productivity at our LBE locations. Despite these near-term challenges, we remain confident in the long-term fundamentals of the business. Consumers continue to demonstrate a strong desire for social and experiential forms of entertainment, and our palladium and the rectum brands are well-positioned to meet that demand. In June, we expanded our LBE presence with the opening of Palladium at Vaughan Mills, one of Canada's most visited shopping destinations. The venue features four exciting attractions, including Gel Blasters, a team experience that combines the best of laser tag and paintball, alongside an extensive game slow and a wide variety of food and beverage offerings. The new venue is delivering strong results in its early days of operation, reinforcing our confidence in our offering. Guest engagement and loyalty. Our loyalty ecosystem remains an important competitive advantage and continues to strengthen our relationship with guests. During the quarter, Shell launched nationwide with the ScenePlus program. With the ability to earn and redeem points across groceries, entertainment, dining, travel, and now fuel, ScenePlus continues to increase its relevance and frequency of engagement for members. For Cineplex, ScenePlus and its more than 15 million members remain a powerful tool to strengthen grass relationships, drive repeated incremental visitation, and deliver more personalized experiences. Complementing ScenePlus is CineClub, a movie subscription program which recently celebrated its fifth anniversary. With more than 270,000 members and visitation rates that are approximately four times higher than non-members, CineClub continues to strengthen loyalty, encourage more frequent movie-going, and reinforced Cineplex's position as one of the most affordable and compelling out-of-home entertainment options available to Canadians. As we look ahead into the back half of the year, industry momentum and optimism remain strong. Earlier this year, the domestic box office surpassed $5 billion faster than in any year since 2019. This milestone highlights the improving fundamentals of the industry and provides a solid foundation for the balance of 2026 and beyond. More recently, the opening of The Odyssey and Spider-Man Brand New Day have further demonstrated the strength of premium event filmmaking and Cineplex's ability to bring these cultural moments to life through exceptional theatrical experiences across our circuit. The Odyssey opened to $124 million domestically, with Cineplex overinducing the market and operating three of the top 20 theaters in North America. Demand for premium experiences has been exceptional, including sold-out IMAX 70mm presentations throughout the film's run. Cineplex operates eight of the world's 41 IMAX 70mm screens, reinforcing the strategic value of our premium format footprints and our ability to attract moviegoers seeking the highest quality theatrical experience. Released on July 31st, Spider-Man Brand New Day delivered a record-breaking $360 million domestic opening and has already surpassed $1 billion at the global box office. Together with the sustained performance of The Odyssey, these films helped drive outstanding results across our circuit. They also generated record-breaking results across our industry, leading premium formats including Ultra AVX, 40X, ScreenX, and VIP, further highlighting consumer demand for premium theatrical experiences and Cineplex's unique ability to meet that demand at scale. Looking further into the second half of the year, the slate remains exceptionally strong and highly diversified. Family audiences will be well served by anticipated releases, including Cat in the Hat, Hex, and Jumanji Open World. Comedy fans can look forward to Digger and Forker and Law, while horror remains one of the industry's most resilient genres with Clayface and Werewolf. Science fiction is particularly compelling with the much-awaited Doomsday in December with the opening of both Avengers Doomsday and Dune Part 3. Both films are generating significant consumer anticipation and should represent one of the biggest opening weekends of the year. Beyond these categories, highly anticipated titles such as The Hunger Games, Sunrise on the Reaping, and Godzilla Minor Zero, both distributed by Cineplex Pictures and The Social Reckoning, further contribute to one of the deepest and most diversified release schedules we have seen in years. We are also encouraged by the growing commitment from non-traditional studios. Amazon MGM continues to expand its theatrical ambitions with upcoming releases including Verity, Outer of a Bank, and I Play Rocky. At the same time, Netflix continues to increase its engagement with the 49-day theatrical window for Narnia in 2027. Non-traditional studios increasingly recognize the value theaters create in building awareness, cultural relevance, and long-term audience demand. These developments reinforce a trend we have discussed for several quarters. Theatrical exhibition continues to be the engine that drives the train and remains the most important distribution channel for content, helping maximize its success across all platforms and windows. With the industry's continued resurgence, we believe Cineplex is entering this next phase with a solid foundation for growth. The momentum we are seeing in the business is translating into stronger profitability, cash flow generation, and balance sheet flexibility. We believe the strength of our business and the opportunities ahead are not yet fully reflected how Cineplex is currently valued. I will now turn the call over to Gordon Ellison, our Chief Financial Officer, to walk through the financial results in more detail.