The box office is back — but can it successfully reach pre-pandemic levels?

"The business is in recovery mode," John Partilla, CEO of movie theater advertising company Screenvision, told Yahoo Finance Live this week.

Partilla said the industry "has been a business that has demonstrated great resilience over many, many decades," adding Screenvision's theatrical partners have "done a good job" at managing cash flows, focusing on loyalty, and investing in greater experiences like recliner chairs, higher quality sound screens, and more.

"I think we'll continue to see the exhibitors innovate, experiment, and adapt," Partilla said, hinting that more partnerships "and a lot of innovation" between movie theaters and streaming companies should eventually hit the market, as well.

According to Box Office Mojo, the domestic box office is down about 31% this year compared to 2019.

Coupled with that decline, the outlook looks bleak with Hollywood's movie pipeline significantly slowing through the fall months amid post-production supply chain issues.

Additionally, most major theatrical chains like AMC (AMC), Cinemark (CNK), and Regal Cinemas remain unprofitable — despite soaring revenues in the second-quarter. Britain's Cineworld Group (CINE.L), the parent company of Regal, is reportedly preparing to file for bankruptcy as a result.

Still, Partilla noted that the summer box office, led by record-breaking films like "Top Gun: Maverick," "Minions," and "Thor: Love and Thunder," held its momentum at about 85% of 2019's performance— "a good indicator of strength."

"Maverick" in particular has been a beacon of hope for exhibitors. The Tom Cruise-led sequel has amassed more than $1.4 billion in worldwide ticket sales, topping "Titanic" to become Paramount's highest-grossing domestic film of all time.

"People are clearly returning to that behavior of returning to their local cinema and enjoying that experience," Partilla said, citing theatrical as a "massive business" opportunity in the long-term, especially for advertisers.