NEW YORK, Oct. 06, 2025 (GLOBE NEWSWIRE) -- Reading International, Inc. (NASDAQ: RDI) announced today that Reading will hold its 2025 Annual Meeting of Stockholders (the “2025 Annual Meeting”) virtually through a web-based platform, commencing at 2:00 p.m. Eastern Time, on December 4, 2025. Voting online at the virtual meeting Registered stockholders and duly appointed proxyholders, as of the close of business on October 14, 2025 (the record date for the 2025 Annual Meeting), are entitled to attend the virt ...

Financial Data and Key Metrics Changes - Consolidated revenue for Q2 2025 increased by $13.6 million to $60.4 million compared to Q2 2024, driven by stronger movie releases [30] - Global operating income for Q2 2025 was $2.9 million, a 138% increase from a loss of $7.7 million in Q2 2024 [6] - Positive EBITDA for Q2 2025 was $6.3 million, up over 276% from a negative EBITDA of $3.6 million in Q2 2024 [7][36] - Net loss attributable to Reading International for Q2 2025 decreased by $10.1 million to a loss of $2.7 million compared to a loss of $12.8 million in Q2 2024 [32] Business Line Data and Key Metrics Changes - Global cinema revenue for Q2 2025 was $56.8 million, a 32% increase from Q2 2024, representing over 79% of pre-pandemic levels [7] - Global cinema operating income for Q2 2025 increased by 218% to $5.5 million, marking the best performance since 2019 [8] - Global real estate revenues for Q2 2025 decreased slightly to $4.7 million from $5 million in Q2 2024, while operating income increased by 56% to $1.5 million [8][20] Market Data and Key Metrics Changes - Approximately 47% of total revenue was generated in Australia and New Zealand, with a 2.7% and 1.9% weakening of the Australian and New Zealand dollar against the U.S. dollar, respectively [9] - U.S. cinema revenues increased by 41% to $30.3 million compared to Q2 2024, with operating income improving by 152% to $2.3 million [18] - Australian cinema revenue increased by 24% to $22.9 million, while New Zealand cinema revenue also increased by 24% to $3.6 million [19] Company Strategy and Development Direction - The company is focused on reducing overall debt, having repaid over $102.5 million since June 2020 [5] - Strategic initiatives include enhancing food and beverage programs, with record spending per patron in Australia, New Zealand, and the U.S. [13][15] - The company is working with landlords to recalibrate occupancy costs to reflect current economic realities [17] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the theatrical experience, citing strong performance from recent movie releases [10] - Anticipation for a slower third quarter but high hopes for a strong fourth quarter with an exciting film slate [11][12] - The company believes it is well-positioned for stronger growth in 2026 and beyond, supported by favorable interest rates and a stable lineup of Hollywood releases [28] Other Important Information - The company completed the sale of its Cannon Park assets for AUD 32 million, using proceeds to pay off debts [5] - The average ticket price in the U.S. reached $13.44, the highest second quarter figure ever [18] - The company is implementing new loyalty programs to drive customer engagement and revenue [16] Q&A Session Summary Question: Why was Rotorua land and improvements removed from held for sale? - The asset was initially classified for sale but failed to attract interest during a challenging period, and it continues to generate reasonable cash flow [42] Question: What is NAB's appetite for longer-dated facility? - The company is working with NAB on a longer-term extension, emphasizing a good working relationship [43] Question: What are the landlord's seismic upgrade timeline commitments? - The new owner is advancing plans for seismic upgrades, expected to be completed in 2026, with significant renovations planned for the cinema [45][46] Question: Will there be an investor relations day? - Currently, there is no investor relations day scheduled, but management is evaluating future opportunities for engagement [47]

[Executive Summary & Financial Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Financial%20Highlights) [Second Quarter 2025 Financial Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Highlights) The company reported significantly improved Q2 2025 results with a 29% revenue increase and positive operating income Q2 2025 Key Financial Results (YoY Change) | Metric | Q2 2025 (USD millions) | Q2 2024 (USD millions) | Change (%) | | :-------------------------- | :--------------------- | :--------------------- | :--------- | | Total Revenues | 60.4 | 46.8 | 29% | | Operating Income (Loss) | 2.9 | (7.7) | 138% (improvement) | | EBITDA | 6.3 | (3.6) | 276% (improvement) | | Basic loss per share | (0.12) | (0.57) | 79% (improvement) | | Net loss attributable to Reading | (2.7) | (12.8) | 79% (improvement) | [Six Months 2025 Financial Highlights](index=1&type=section&id=Six%20Months%202025%20Financial%20Highlights) For the first half of 2025, the company demonstrated improved performance with revenue growth and reduced operating losses Six Months 2025 Key Financial Results (YoY Change) | Metric | H1 2025 (USD millions) | H1 2024 (USD millions) | Change (%) | | :-------------------------- | :--------------------- | :--------------------- | :--------- | | Total Revenues | 100.5 | 91.9 | 9% | | Operating Loss | (4.0) | (15.2) | 74% (improvement) | | EBITDA | 9.2 | (7.5) | 222% (improvement) | | Basic loss per share | (0.33) | (1.16) | 73% (improvement) | | Net loss attributable to Reading | (7.4) | (26.0) | 71% (improvement) | [CEO Commentary](index=1&type=section&id=CEO%20Commentary) The CEO highlighted record cinema box office success and strong Real Estate results, enabling debt reduction - The company's improved performance in Q2 2025 reinforces confidence in its long-term future, driven by record box office success from major movie releases[5](index=5&type=chunk) - The global Real Estate division delivered strong results, with operating income increasing **56% quarter-over-quarter** and **67% year-over-year**[7](index=7&type=chunk) - Strategic property monetizations, including the sale of Cannon Park for **AU$32.0 million**, reduced gross debt by **$32.1 million**[7](index=7&type=chunk) [Currency Impact](index=1&type=section&id=Currency%20Impact) The weakening of the Australian and New Zealand dollars against the U.S. dollar negatively impacted reported results - Australian and New Zealand dollar average exchange rates weakened against the U.S. dollar by **2.7%** and **1.9%** respectively in Q2 2025[4](index=4&type=chunk) - For the first six months of 2025, these currencies weakened by **3.6%** and **4.6%** respectively against the U.S. dollar[4](index=4&type=chunk) - With **47% of total revenues** from Australian and New Zealand businesses, currency weakness impacts U.S. reported operating results[4](index=4&type=chunk) [Business Segment Performance](index=3&type=section&id=Business%20Segment%20Performance) [Cinema Business](index=3&type=section&id=Cinema%20Business) The global cinema division experienced significant growth in Q2 2025, driven by strong box office performance - Q2 2025 global cinema revenue increased **32% to $56.8 million**, and operating income increased by **218% to $5.5 million** from a loss of $4.6 million in Q2 2024[10](index=10&type=chunk) - The company closed an underperforming U.S. cinema, now operating **469 screens in 58 theatres** across three countries[10](index=10&type=chunk) - Efforts continued to reduce occupancy costs with landlords as revenue has not returned to pre-pandemic levels[10](index=10&type=chunk) [Q2 2025 Performance Metrics](index=3&type=section&id=Q2%202025%20Performance%20Metrics) Key performance indicators for the cinema business, including ticket prices and F&B sales, reached record highs - Average ticket price (ATP) in both Australia and New Zealand cinema divisions achieved their **highest quarter ever**[10](index=10&type=chunk) - U.S. cinema ATP achieved its **highest second quarter ever**, despite successful discount programs[10](index=10&type=chunk) Q2 2025 Food & Beverage Sales Per Person (SPP) | Region | F&B SPP (Q2 2025) | Historical Context | | :------- | :------------------ | :----------------- | | Australia | A$8.26 | Highest second quarter ever | | New Zealand | NZ$7.14 | Highest quarter ever | | U.S. | $9.13 | Highest quarter ever (excluding pandemic closures) and highest among publicly traded competitors | [Real Estate Business](index=3&type=section&id=Real%20Estate%20Business) The Real Estate business saw a significant increase in operating income, marking its best second quarter since 2018 - Global Real Estate revenue decreased slightly to $4.7 million, but operating income increased by **56% to $1.5 million**[10](index=10&type=chunk) - U.S. Real Estate Revenues increased by **15% to $1.7 million** due to improved performance of Live Theatre assets in NYC[10](index=10&type=chunk) - The combined Australian and New Zealand property portfolio has **59 third-party tenants** with a **99% occupancy rate**[10](index=10&type=chunk) [Q2 2025 Performance & Property Monetization](index=3&type=section&id=Q2%202025%20Performance%20%26%20Property%20Monetization) The division's strong operating income was bolstered by recent strategic property sales in the U.S, Australia, and New Zealand Recent Property Monetizations | Property | Sale Date | Proceeds | | :-------------------- | :-------- | :--------- | | Culver City building | Q1 2024 | $10.0 million | | Wellington, New Zealand | Q1 2025 | NZ$38.0 million | | Cannon Park, Australia | May 21, 2025 | AU$32.0 million | - The company retained the right to operate cinemas at the Wellington and Cannon Park locations under long-term leases[10](index=10&type=chunk) [Financial Position and Liquidity](index=4&type=section&id=Financial%20Position%20and%20Liquidity) [Balance Sheet and Debt Management](index=4&type=section&id=Balance%20Sheet%20and%20Debt%20Management) Total gross debt decreased by 14.4% from year-end 2024, primarily due to debt paydowns from property sales Balance Sheet Highlights (as of June 30, 2025) | Metric | June 30, 2025 (USD millions) | December 31, 2024 (USD millions) | Change (%) | | :------------------ | :--------------------------- | :----------------------------- | :--------- | | Cash and cash equivalents | 9.1 | 12.3 | (26.0%) | | Total gross debt | 173.4 | 202.7 | (14.4%) | | Total book value of assets | 438.1 | 471.0 | (7.0%) | - Debt reduction in H1 2025 included paying off a **NZ$18.8 million loan** and **$6.1 million** to Bank of America/Bank of Hawaii[11](index=11&type=chunk) - The Cannon Park sale proceeds were used to pay off an **AU$20.0 million bridging facility** and reduce other loans[11](index=11&type=chunk) - Maturity dates for key loans on 44 Union Square, Bank of America/Bank of Hawaii, and NYC Live Theatre assets were extended[11](index=11&type=chunk) [Company Information](index=5&type=section&id=Company%20Information) [About Reading International, Inc.](index=5&type=section&id=About%20Reading%20International%2C%20Inc.) Reading International is a diversified cinema and real estate company operating in the U.S, Australia, and New Zealand - Reading International, Inc. (NASDAQ: RDI) is an internationally diversified cinema and real estate company[14](index=14&type=chunk) - The company operates cinemas under Reading Cinemas, Consolidated Theatres, and Angelika brands, and live theatres[15](index=15&type=chunk) - Its operations and assets are located in the United States, Australia, and New Zealand, including signature property developments[14](index=14&type=chunk)[15](index=15&type=chunk) [Conference Call and Webcast](index=5&type=section&id=Conference%20Call%20and%20Webcast) A pre-recorded conference call discussing Q2 2025 results will be posted on the company's website by August 18, 2025 - A pre-recorded conference call and audio webcast will be posted on the corporate website on or before **Monday, August 18, 2025**[12](index=12&type=chunk) - The webcast will feature remarks from key executives including the CEO, CFO, and EVP of Global Operations[12](index=12&type=chunk) - A pre-recorded Q&A session will follow, with questions to be submitted by August 15, 2025[13](index=13&type=chunk) [Legal & Non-GAAP Disclosures](index=6&type=section&id=Legal%20%26%20Non-GAAP%20Disclosures) [Cautionary Note Regarding Forward-Looking Statements](index=6&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) This section disclaims that actual results may differ materially from forward-looking statements due to inherent risks - The earnings release contains forward-looking statements related to expected results, business strategy, and asset monetization[18](index=18&type=chunk) - No guarantees can be given that forward-looking statements will prove correct due to the unpredictability of influencing factors[19](index=19&type=chunk) - The company undertakes no obligation to publicly update forward-looking statements and advises against relying on them[20](index=20&type=chunk)[21](index=21&type=chunk) [Non-GAAP Financial Measures](index=12&type=section&id=Non-GAAP%20Financial%20Measures) This section defines the company's use of non-GAAP measures like EBITDA to evaluate performance and compare to peers - Total segment operating income (loss) is used to evaluate business segment performance separate from non-operating factors[32](index=32&type=chunk) - EBITDA is used as an industry-wide comparative measure for financial performance and value in the cinema and real estate industries[33](index=33&type=chunk) - Adjusted EBITDA further adjusts for items considered external to core business or non-recurring[36](index=36&type=chunk) - These non-GAAP measures should not be considered substitutes for GAAP measures as they exclude significant costs[31](index=31&type=chunk)[34](index=34&type=chunk)[35](index=35&type=chunk) [Consolidated Financial Statements](index=7&type=section&id=Consolidated%20Financial%20Statements) [Unaudited Consolidated Statements of Operations](index=7&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Operations) The statements present revenues, costs, and net income for the second quarter and six months ended June 30, 2025 and 2024 Unaudited Consolidated Statements of Operations (USD thousands) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :-------------------------------------------------------------------------------- | :------ | :------ | :------ | :------ | | **Revenue** | | | | | | Cinema | $56,782 | $42,942 | $93,186 | $84,213 | | Real estate | 3,596 | 3,867 | 7,361 | 7,648 | | **Total revenue** | **60,378** | **46,809** | **100,547** | **91,861** | | **Operating income (loss)** | **2,891** | **(7,692)** | **(4,001)** | **(15,222)** | | Interest expense, net | (4,354) | (5,377) | (9,096) | (10,662) | | Gain (loss) on sale of assets | 1,872 | 9 | 8,398 | (1,116) | | **Net income (loss) attributable to Reading International, Inc.** | **(2,667)** | **(12,806)** | **(7,423)** | **(26,034)** | | Basic earnings (loss) per share | (0.12) | (0.57) | (0.33) | (1.16) | [Consolidated Balance Sheets](index=8&type=section&id=Consolidated%20Balance%20Sheets) The balance sheets provide a snapshot of assets, liabilities, and equity as of June 30, 2025, versus December 31, 2024 Consolidated Balance Sheets (USD thousands) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | **ASSETS** | | | | Cash and cash equivalents | $9,073 | $12,347 | | Total current assets | 21,271 | 57,042 | | Total assets | **438,075** | **471,011** | | **LIABILITIES AND STOCKHOLDERS' EQUITY** | | | | Total current liabilities | 130,451 | 161,626 | | Debt - current portion | 38,229 | 69,193 | | Debt - long-term portion | 106,449 | 105,239 | | Total liabilities | **446,503** | **475,801** | | Total stockholders' equity | **(8,428)** | **(4,790)** | [Segment Results](index=9&type=section&id=Segment%20Results) This section details revenue and operating income for the Cinema and Real Estate segments by geographic region Segment Revenue (USD thousands) | Segment | Region | Q2 2025 | Q2 2024 | % Change | H1 2025 | H1 2024 | % Change | | :-------- | :------- | :------ | :------ | :------- | :------ | :------ | :------- | | **Cinema** | | | | | | | | | | United States | $30,258 | $21,480 | 41 % | $48,553 | $42,785 | 13 % | | | Australia | 22,909 | 18,543 | 24 % | 38,591 | 35,867 | 8 % | | | New Zealand | 3,615 | 2,918 | 24 % | 6,042 | 5,561 | 9 % | | | **Total** | **$56,782** | **$42,941** | **32 %** | **$93,186** | **$84,213** | **11 %** | | **Real estate** | | | | | | | | | | United States | $1,700 | $1,483 | 15 % | $3,287 | $2,967 | 11 % | | | Australia | 2,741 | 3,177 | (14)% | 5,756 | 6,261 | (8)% | | | New Zealand | 212 | 353 | (40)% | 455 | 718 | (37)% | | | **Total** | **$4,653** | **$5,013** | **(7)%** | **$9,498** | **$9,946** | **(5)%** | Segment Operating Income (Loss) (USD thousands) | Segment | Region | Q2 2025 | Q2 2024 | % Change | H1 2025 | H1 2024 | % Change | | :-------- | :------- | :------ | :------ | :------- | :------ | :------ | :------- | | **Cinema** | | | | | | | | | | United States | $2,292 | $(4,426) | >100% | $(855) | $(7,868) | 89 % | | | Australia | 2,920 | (87) | >100% | 1,944 | (582) | >100% | | | New Zealand | 241 | (96) | >100% | (110) | (325) | 66 % | | | **Total** | **$5,453** | **$(4,609)** | **>100%** | **$979** | **$(8,775)** | **>100%** | | **Real estate** | | | | | | | | | | United States | $89 | $(204) | >100% | $231 | $(573) | >100% | | | Australia | 1,338 | 1,461 | (8)% | 2,882 | 2,921 | (1)% | | | New Zealand | 52 | (311) | >100% | (39) | (511) | 92 % | | | **Total** | **$1,479** | **$946** | **56 %** | **$3,074** | **$1,837** | **67 %** | | **Total segment operating income (loss)** | **$6,932** | **$(3,663)** | **>100%** | **$4,053** | **$(6,938)** | **>100%** | [Reconciliation of EBITDA and Adjusted EBITDA to Net Income (Loss)](index=10&type=section&id=EBITDA%20Reconciliation) This table reconciles Net Income (Loss) to the non-GAAP measures of EBITDA and Adjusted EBITDA Reconciliation of EBITDA and Adjusted EBITDA to Net Income (Loss) (USD thousands) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :------------------------------------------------ | :------ | :------ | :------ | :------ | | Net Income (loss) attributable to Reading International, Inc. | $(2,667) | $(12,806) | $(7,423) | $(26,034) | | Add: Interest expense, net | 4,354 | 5,377 | 9,096 | 10,662 | | Add: Income tax expense (benefit) | 1,225 | (156) | 753 | (379) | | Add: Depreciation and amortization | 3,380 | 4,011 | 6,756 | 8,216 | | **EBITDA** | **$6,292** | **$(3,574)** | **$9,182** | **$(7,535)** | | Adjustments for: None | — | — | — | — | | **Adjusted EBITDA** | **$6,292** | **$(3,574)** | **$9,182** | **$(7,535)** | [Reconciliation of Total Segment Operating Income (Loss) to Income (Loss) before Income Taxes](index=11&type=section&id=Total%20Segment%20Operating%20Income%20Reconciliation) This table reconciles Total Segment Operating Income (Loss) to Income (Loss) before Income Taxes Reconciliation of Total Segment Operating Income (Loss) to Income (Loss) before Income Taxes (USD thousands) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :---------------------------------------------------- | :------ | :------ | :------ | :------ | | Segment operating income (loss) | $6,932 | $(3,663) | $4,053 | $(6,938) | | Unallocated corporate expense: | | | | | | Depreciation and amortization expense | (84) | (100) | (219) | (201) | | General and administrative expense | (3,957) | (3,929) | (7,835) | (8,083) | | Interest expense, net | (4,354) | (5,377) | (9,096) | (10,662) | | Equity earnings (loss) of unconsolidated joint ventures | 285 | 119 | 308 | 94 | | Gain (loss) on sale of assets | 1,872 | 9 | 8,398 | (1,116) | | Other (expense) income | (2,273) | (216) | (2,607) | 123 | | **Income (loss) before income taxes** | **$(1,579)** | **$(13,157)** | **$(6,998)** | **$(26,783)** |

[PART I - Financial Information](index=3&type=section&id=PART%20I%20-%20Financial%20Information) This section presents the company's unaudited consolidated financial statements, including detailed notes, and management's discussion and analysis of financial condition and results of operations [Item 1 – Financial Statements](index=3&type=section&id=Item%201%20%E2%80%93%20Financial%20Statements) This section presents the unaudited consolidated financial statements, including the balance sheets, statements of income, comprehensive income, and cash flows, along with detailed notes explaining the company's accounting policies, segment performance, liquidity, debt, and other financial details for the quarter and six months ended June 30, 2025 [Consolidated Balance Sheets (Unaudited)](index=3&type=section&id=Consolidated%20Balance%20Sheets%20(Unaudited)) This statement provides a snapshot of the company's assets, liabilities, and stockholders' equity at specific points in time, highlighting changes over the period | Metric | June 30, 2025 (Unaudited) ($ thousands) | December 31, 2024 ($ thousands) | | :-------------------------------- | :-------------------------- | :------------------ | | **ASSETS** | | | | Total current assets | $21,271 | $57,042 | | Total assets | $438,075 | $471,011 | | **LIABILITIES AND STOCKHOLDERS' EQUITY** | | | | Total current liabilities | $130,451 | $161,626 | | Total liabilities | $446,503 | $475,801 | | Total stockholders' equity | $(8,428) | $(4,790) | - Total assets decreased by **$32.9 million (7.0%)** from **$471.0 million** at December 31, 2024, to **$438.1 million** at June 30, 2025. Total liabilities decreased by **$29.3 million (6.2%)** from **$475.8 million** to **$446.5 million**. Total stockholders' equity decreased by **$3.6 million (75.9%)** from **$(4.8) million** to **$(8.4) million**[9](index=9&type=chunk) [Consolidated Statements of Income (Unaudited)](index=4&type=section&id=Consolidated%20Statements%20of%20Income%20(Unaudited)) This statement details the company's revenues, expenses, and net income or loss over specific reporting periods, reflecting operational profitability | Metric | Quarter Ended June 30, 2025 ($ thousands) | Quarter Ended June 30, 2024 ($ thousands) | Six Months Ended June 30, 2025 ($ thousands) | Six Months Ended June 30, 2024 ($ thousands) | | :------------------------------------------------ | :-------------------------- | :-------------------------- | :----------------------------- | :----------------------------- | | Total revenue | $60,378 | $46,809 | $100,547 | $91,861 | | Operating income (loss) | $2,891 | $(7,692) | $(4,001) | $(15,222) | | Net income (loss) | $(2,804) | $(13,001) | $(7,751) | $(26,404) | | Net income (loss) attributable to Reading International, Inc. | $(2,667) | $(12,806) | $(7,423) | $(26,034) | | Basic earnings (loss) per share | $(0.12) | $(0.57) | $(0.33) | $(1.16) | | Diluted earnings (loss) per share | $(0.12) | $(0.57) | $(0.33) | $(1.16) | - Total revenue increased by **29%** for the quarter and **9%** for the six months ended June 30, 2025, compared to the prior year periods. The company significantly reduced its net loss attributable to Reading International, Inc. by **79%** for the quarter and **71%** for the six months ended June 30, 2025, compared to the prior year periods[10](index=10&type=chunk) [Consolidated Statements of Comprehensive Income (Unaudited)](index=5&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20(Unaudited)) This statement presents net income alongside other comprehensive income items, such as foreign currency translation adjustments, to show total non-owner changes in equity | Metric | Quarter Ended June 30, 2025 ($ thousands) | Quarter Ended June 30, 2024 ($ thousands) | Six Months Ended June 30, 2025 ($ thousands) | Six Months Ended June 30, 2024 ($ thousands) | | :------------------------------------------------ | :-------------------------- | :-------------------------- | :----------------------------- | :----------------------------- | | Net income (loss) | $(2,804) | $(13,001) | $(7,751) | $(26,404) | | Foreign currency translation gain (loss) | $2,741 | $932 | $3,154 | $(1,659) | | Comprehensive income (loss) | $(92) | $(12,115) | $(4,586) | $(28,059) | | Comprehensive income (loss) attributable to noncontrolling interests | $8 | $— | $9 | $(1) | | Comprehensive income (loss) | $37 | $(11,920) | $(4,267) | $(27,688) | - The company reported a significant foreign currency translation gain of **$2.7 million** for the quarter and **$3.2 million** for the six months ended June 30, 2025, contributing to a substantial improvement in comprehensive income compared to the prior year periods[12](index=12&type=chunk) [Consolidated Statements of Cash Flows (Unaudited)](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows%20(Unaudited)) This statement summarizes cash inflows and outflows from operating, investing, and financing activities, illustrating liquidity and solvency | Activity | Six Months Ended June 30, 2025 ($ thousands) | Six Months Ended June 30, 2024 ($ thousands) | | :---------------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by (used in) operating activities | $(6,151) | $(13,157) | | Net cash provided by (used in) investing activities | $37,806 | $7,398 | | Net cash provided by (used in) financing activities | $(34,883) | $1,125 | | Net increase (decrease) in cash and cash equivalents and restricted cash | $(3,127) | $(4,714) | | Cash and cash equivalents and restricted cash at the end of the period | $11,955 | $10,727 | - Cash used in operating activities decreased by **$7.0 million**, while cash provided by investing activities significantly increased by **$30.4 million**, primarily due to proceeds from asset sales. Cash used in financing activities increased by **$36.0 million** due to debt repayments[14](index=14&type=chunk)[221](index=221&type=chunk)[222](index=222&type=chunk)[223](index=223&type=chunk) [Notes to Consolidated Financial Statements (Unaudited)](index=7&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements%20(Unaudited)) These notes provide detailed explanations of the accounting policies, significant estimates, and additional financial information supporting the consolidated financial statements [NOTE 1 – DESCRIPTION OF BUSINESS AND SEGMENT REPORTING](index=7&type=section&id=NOTE%201%20%E2%80%93%20DESCRIPTION%20OF%20BUSINESS%20AND%20SEGMENT%20REPORTING) Reading International, Inc. operates primarily in two business segments: cinema exhibition and real estate development, ownership, operation, and rental. The company conducts business in the United States, Australia, and New Zealand - The Company's businesses consist primarily of the development, ownership, and operation of cinemas in the United States, Australia, and New Zealand, and the development, ownership, operation and/or rental of retail, commercial and live venue real estate assets in Australia, New Zealand, and the United States[23](index=23&type=chunk) [NOTE 2 – LIQUIDITY AND IMPAIRMENT ASSESSMENT](index=7&type=section&id=NOTE%202%20%E2%80%93%20LIQUIDITY%20AND%20IMPAIRMENT%20ASSESSMENT) The company faces a going concern uncertainty due to **$38.2 million** in debt due within twelve months and negative working capital of **$109.2 million**. Management plans to address this through refinancing, loan extensions, and real estate asset monetization, having already demonstrated this capability with **$201.5 million** in asset sales since 2021. No impairment charges were recorded for property, plant, equipment, or goodwill for the first six months of 2025, as improved performance is expected to continue - The company has **$38.2 million** of debt due in twelve months and negative working capital of **$109.2 million**, leading to a going concern uncertainty[18](index=18&type=chunk) - Management's plan to address liquidity includes refinancing, extending loans, and monetizing real estate assets, having sold nine properties for **$201.5 million** since 2021[20](index=20&type=chunk)[21](index=21&type=chunk) - No impairment charges were recorded for operating assets or goodwill in the first six months of 2025, as higher revenues and operating income compared to 2024 indicate continued improved performance[24](index=24&type=chunk)[25](index=25&type=chunk) [NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES](index=8&type=section&id=NOTE%203%20%E2%80%93%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) The consolidated financial statements are prepared in accordance with U.S. GAAP for interim reporting, including wholly-owned and majority-controlled subsidiaries. Significant estimates are made for asset recoverability and impairment, derivative valuations, deferred tax assets, breakage and redemption rates, and incremental borrowing rates for leases - Consolidated financial statements include wholly-owned and majority-owned subsidiaries, prepared under U.S. GAAP for interim reporting[26](index=26&type=chunk) - Significant estimates are made for asset impairment (including goodwill and intangibles), derivative valuations, deferred tax asset recoverability, gift card/loyalty program breakage, and Incremental Borrowing Rate for lease valuations[28](index=28&type=chunk) [NOTE 4 – SEGMENT REPORTING](index=8&type=section&id=NOTE%204%20%E2%80%93%20SEGMENT%20REPORTING) The company operates in two reportable segments: cinema exhibition and real estate, with performance evaluated by the Chief Operating Decision-Maker based on segment operating income. Inter-segment transactions are eliminated for consolidated reporting. The cinema segment aggregates all cinemas in the U.S., Australia, and New Zealand, while the real estate segment includes retail, commercial, and live theater assets in the same regions - The company has two reportable segments: cinema exhibition and real estate, with segment operating income as a key performance measure[29](index=29&type=chunk)[33](index=33&type=chunk) - Cinema exhibition revenue increased by **32%** for the quarter and **11%** for the six months ended June 30, 2025, compared to the prior year, while real estate revenue decreased by **7%** and **5%** respectively[35](index=35&type=chunk)[186](index=186&type=chunk) | Segment | Quarter Ended June 30, 2025 ($ thousands) | Quarter Ended June 30, 2024 ($ thousands) | Six Months Ended June 30, 2025 ($ thousands) | Six Months Ended June 30, 2024 ($ thousands) | | :------------------ | :-------------------------- | :-------------------------- | :----------------------------- | :----------------------------- | | Cinema Revenue | $56,782 | $42,941 | $93,186 | $84,213 | | Real Estate Revenue | $4,653 | $5,013 | $9,498 | $9,946 | | Cinema Operating Income (Loss) | $5,453 | $(4,609) | $979 | $(8,775) | | Real Estate Operating Income (Loss) | $1,479 | $946 | $3,074 | $1,837 | [NOTE 5 – OPERATIONS IN FOREIGN CURRENCY](index=12&type=section&id=NOTE%205%20%E2%80%93%20OPERATIONS%20IN%20FOREIGN%20CURRENCY) The company has significant assets and operations in Australia and New Zealand, with financial resources managed globally. Fluctuations in AUD and NZD against the USD impact asset and liability carrying values, with translation adjustments accumulated in Accumulated Other Comprehensive Income. The average AUD and NZD weakened against the USD by **2.7%** and **1.9%** respectively in Q2 2025 compared to Q2 2024 - Significant assets and operations are in Australia and New Zealand, with financial resources managed globally[42](index=42&type=chunk)[43](index=43&type=chunk) - Foreign currency translation adjustments are accumulated in Accumulated Other Comprehensive Income[42](index=42&type=chunk) | Currency | Average Rate (Q2 2025) | Average Rate (Q2 2024) | % Change (Fav/(Unfav)) % | | :---------------- | :--------------------- | :--------------------- | :--------------------- | | Australian Dollar | 0.6412 | 0.6591 | (2.7)% | | New Zealand Dollar | 0.5936 | 0.6054 | (1.9)% | [NOTE 6 – EARNINGS PER SHARE](index=13&type=section&id=NOTE%206%20%E2%80%93%20EARNINGS%20PER%20SHARE) Basic and diluted EPS are calculated based on net income attributable to Reading International, Inc. The weighted average number of common shares outstanding increased due to restricted stock unit vesting. Certain awards were excluded from diluted EPS calculations due to the net loss, making them anti-dilutive | Metric | Quarter Ended June 30, 2025 ($ thousands) | Quarter Ended June 30, 2024 ($ thousands) | Six Months Ended June 30, 2025 ($ thousands) | Six Months Ended June 30, 2024 ($ thousands) | | :------------------------------------------------ | :-------------------------- | :-------------------------- | :----------------------------- | :----------------------------- | | Net income (loss) attributable to Reading International, Inc. | $(2,667) | $(12,806) | $(7,423) | $(26,034) | | Basic earnings (loss) per share | $(0.12) | $(0.57) | $(0.33) | $(1.16) | | Diluted earnings (loss) per share | $(0.12) | $(0.57) | $(0.33) | $(1.16) | | Weighted average number of common stock – basic (shares) | 22,708,206 | 22,413,617 | 22,586,019 | 22,379,881 | | Awards excluded from diluted EPS (anti-dilutive) (shares) | 3,696,662 | 207,657 | 3,696,662 | 207,657 | - Weighted average basic common stock increased, primarily due to the vesting of restricted stock units. Awards totaling **3,696,662 shares** for the period ended June 30, 2025, were excluded from diluted EPS as they were anti-dilutive due to net loss[46](index=46&type=chunk)[47](index=47&type=chunk) [Note 7 – Property and Equipment](index=13&type=section&id=Note%207%20%E2%80%93%20Property%20and%20Equipment) Operating property, net, decreased slightly to **$213.3 million** at June 30, 2025. The company monetized several real estate holdings to support liquidity, including Cannon Park for **$20.7 million** (resulting in a **$1.8 million** net gain) and Wellington properties for **$21.5 million** (resulting in a **$6.6 million** net gain) in 2025. The Newberry Yard property remains classified as held for sale | Metric | June 30, 2025 ($ thousands) | December 31, 2024 ($ thousands) | | :---------------------- | :------------ | :---------------- | | Operating property, net | $213,340 | $214,694 | | Total cost | $418,691 | $408,922 | | Accumulated depreciation | $(205,351) | $(194,228) | - The company sold Cannon Park property for **$20.7 million**, realizing a net gain of **$1.8 million**, and Wellington properties for **$21.5 million**, realizing a net gain of **$6.6 million**, to enhance liquidity[53](index=53&type=chunk)[54](index=54&type=chunk)[55](index=55&type=chunk)[57](index=57&type=chunk) - The Newberry Yard property in Williamsport, Pennsylvania, with a book value of **$460,000**, continues to be held for sale[60](index=60&type=chunk) [Note 8 – Leases](index=15&type=section&id=Note%208%20%E2%80%93%20Leases) The company acts as both lessee and lessor. As a lessee, it has operating leases for cinemas and finance leases for equipment, with remaining terms of 1 to 25 years. Total lease cost for operating leases decreased to **$7.1 million** for Q2 2025 and **$14.1 million** for 6M 2025. As a lessor, the company leases real estate properties, generating **$2.7 million** in total lease income for Q2 2025 and **$5.6 million** for 6M 2025 | Metric | Quarter Ended June 30, 2025 ($ thousands) | Quarter Ended June 30, 2024 ($ thousands) | Six Months Ended June 30, 2025 ($ thousands) | Six Months Ended June 30, 2024 ($ thousands) | | :------------------------ | :-------------------------- | :-------------------------- | :----------------------------- | :----------------------------- | | Operating lease cost | $7,081 | $7,732 | $14,094 | $15,606 | | Total lease cost (as lessee) | $7,093 | $8,836 | $14,117 | $17,245 | | Total lease income (as lessor) | $2,705 | $2,980 | $5,601 | $5,848 | - Operating lease right-of-use assets were **$160.6 million** and total operating lease liabilities were **$181.6 million** as of June 30, 2025[64](index=64&type=chunk) - The weighted-average remaining lease term for operating leases is **11 years**, with a weighted-average discount rate of **4.89%**[64](index=64&type=chunk) [Note 9 – Goodwill and Intangible Assets](index=17&type=section&id=Note%209%20%E2%80%93%20Goodwill%20and%20Intangible%20Assets) Goodwill increased to **$24.9 million** at June 30, 2025, primarily due to foreign currency translation adjustments. The company tests goodwill and other intangible assets for impairment annually and on an interim basis if indicators arise. No impairment charges were recorded for goodwill or other intangible assets in the first six months of 2025. Net intangible assets other than goodwill were **$1.7 million** | Segment | Balance at December 31, 2024 ($ thousands) | Foreign currency translation adjustment ($ thousands) | Balance at June 30, 2025 ($ thousands) | | :---------- | :--------------------------- | :------------------------------------ | :----------------------- | | Cinema | $18,488 | $1,156 | $19,644 | | Real Estate | $5,224 | $— | $5,224 | | Total | $23,712 | $1,156 | $24,868 | | Intangible Asset Type | Net Intangible Assets (June 30, 2025) ($ thousands) | Net Intangible Assets (December 31, 2024) ($ thousands) | | :-------------------------- | :------------------------------------ | :---------------------------------------- | | Beneficial Leases | $160 | $168 | | Trade Name | $858 | $922 | | Other Intangible Assets | $726 | $710 | | Total | $1,744 | $1,800 | - Total intangible assets amortization was **$32,000** for Q2 2025 and **$70,000** for 6M 2025[70](index=70&type=chunk) [Note 10 – Investments in Unconsolidated Joint Ventures](index=18&type=section&id=Note%2010%20%E2%80%93%20Investments%20in%20Unconsolidated%20Joint%20Ventures) The company holds investments in two unconsolidated joint ventures, Rialto Cinemas and Mt. Gravatt, accounted for under the equity method. Total investments increased to **$3.3 million** at June 30, 2025. Equity earnings from these ventures significantly increased to **$285,000** for Q2 2025 and **$308,000** for 6M 2025, compared to the prior year periods | Joint Venture | Interest | June 30, 2025 ($ thousands) | December 31, 2024 ($ thousands) | | :-------------- | :------- | :------------ | :---------------- | | Rialto Cinemas | 50.0% | $48 | $— | | Mt. Gravatt | 33.3% | $3,258 | $3,138 | | Total investments | | $3,306 | $3,138 | | Joint Venture | Quarter Ended June 30, 2025 ($ thousands) | Quarter Ended June 30, 2024 ($ thousands) | Six Months Ended June 30, 2025 ($ thousands) | Six Months Ended June 30, 2024 ($ thousands) | | :-------------- | :-------------------------- | :-------------------------- | :----------------------------- | :----------------------------- | | Rialto Cinemas | $65 | $(9) | $48 | $(77) | | Mt. Gravatt | $220 | $128 | $260 | $171 | | Total equity earnings | $285 | $119 | $308 | $94 | [Note 11 – Prepaid and Other Assets](index=19&type=section&id=Note%2011%20%E2%80%93%20Prepaid%20and%20Other%20Assets) Prepaid and other current assets increased to **$4.0 million** at June 30, 2025, primarily due to an increase in straight-line rent assets. Other non-current assets also increased to **$11.7 million**, driven by a rise in straight-line rent assets | Asset Type | June 30, 2025 ($ thousands) | December 31, 2024 ($ thousands) | | :-------------------------------- | :------------ | :---------------- | | Prepaid and other current assets | $3,963 | $2,668 | | Other non-current assets | $11,700 | $8,799 | | Total prepaid and other assets | $15,663 | $11,467 | - The increase in prepaid and other current assets is mainly due to a new straight-line rent asset of **$941,000**. The increase in other non-current assets is primarily due to an increase in straight-line rent asset from **$7.3 million** to **$9.8 million**[72](index=72&type=chunk) [Note 12 – Income Taxes](index=19&type=section&id=Note%2012%20%E2%80%93%20Income%20Taxes) The company recognized an income tax expense of **$0.8 million** for the six months ended June 30, 2025, compared to a benefit of **$0.4 million** in the prior year. This change is primarily due to decreased consolidated losses and an increased valuation allowance on deferred tax assets in the U.S. and New Zealand - Income tax expense of **$0.8 million** was recognized for the six months ended June 30, 2025, compared to a **$0.4 million** benefit in the prior year[73](index=73&type=chunk) - The change is primarily due to a decrease in consolidated losses and an increase in the reserve for valuation allowance on deferred tax assets in the U.S. and New Zealand[73](index=73&type=chunk) [Note 13 – Borrowings](index=19&type=section&id=Note%2013%20%E2%80%93%20Borrowings) Total borrowings decreased to **$172.2 million** at June 30, 2025, from **$201.8 million** at December 31, 2024. The company has actively managed its debt, repaying the Westpac loan and NAB bridging facility, and extending maturity dates for several loans, including Bank of America, Minetta & Orpheum Theatres, and Union Square Financing, to improve liquidity and manage upcoming maturities | Metric | June 30, 2025 ($ thousands) | December 31, 2024 ($ thousands) | | :-------------------------------- | :------------ | :---------------- | | Total borrowings (net) | $172,184 | $201,826 | | Debt - current portion | $38,229 | $69,193 | | Debt - long-term portion | $106,449 | $105,239 | | Subordinated debt, net | $27,506 | $27,394 | - The company repaid the **$10.7 million** Westpac loan on January 31, 2025, and the **$12.9 million** NAB bridging facility on May 21, 2025[20](index=20&type=chunk)[215](index=215&type=chunk) - Maturity dates for Bank of America facility, Minetta & Orpheum Theatres Loan (Santander), and Union Square Financing (Emerald Creek Capital) were extended to May 2026, June 2026, and November 2026, respectively[20](index=20&type=chunk)[82](index=82&type=chunk)[83](index=83&type=chunk)[86](index=86&type=chunk)[124](index=124&type=chunk) [Note 14 – Other Liabilities](index=21&type=section&id=Note%2014%20%E2%80%93%20Other%20Liabilities) Other current liabilities remained stable at **$6.6 million**, while other non-current liabilities increased slightly to **$13.9 million** at June 30, 2025. The company's unfunded Supplemental Executive Retirement Plan resulted in accrued pension costs of **$2.6 million**, with interest costs and actuarial losses recognized during the period | Liability Type | June 30, 2025 ($ thousands) | December 31, 2024 ($ thousands) | | :-------------------------- | :------------ | :---------------- | | Other current liabilities | $6,629 | $6,593 | | Other non-current liabilities | $13,854 | $13,662 | | Total other liabilities | $20,483 | $20,255 | - Accrued pension costs for the unfunded Supplemental Executive Retirement Plan totaled **$2.6 million** at June 30, 2025[92](index=92&type=chunk) - Interest cost for the pension liability was **$72,000** and actuarial loss was **$103,000** for the six months ended June 30, 2025[93](index=93&type=chunk) [Note 15 – Accumulated Other Comprehensive Income](index=22&type=section&id=Note%2015%20%E2%80%93%20Accumulated%20Other%20Comprehensive%20Income) Accumulated other comprehensive income improved from a deficit of **$(7.2) million** at January 1, 2025, to **$(4.0) million** at June 30, 2025. This improvement was primarily driven by a positive foreign currency translation adjustment of **$3.2 million**, partially offset by net changes related to derivatives and accrued pension service costs | Component | Balance at January 1, 2025 ($ thousands) | Net current-period OCI (loss) ($ thousands) | Balance at June 30, 2025 ($ thousands) | | :-------------------------- | :------------------------- | :-------------------------- | :----------------------- | | Foreign Currency Items | $(5,521) | $3,154 | $(2,367) | | Unrealized Gain (Losses) on Available-for-Sale Investments | $(18) | $(3) | $(21) | | Accrued Pension Service Costs | $(1,497) | $103 | $(1,394) | | Hedge Accounting Reserve | $(137) | $(98) | $(235) | | Total | $(7,173) | $3,156 | $(4,017) | - A significant foreign currency translation gain of **$3.154 million** contributed positively to AOCI during the six months ended June 30, 2025[94](index=94&type=chunk) [Note 16 – Commitments and Contingencies](index=22&type=section&id=Note%2016%20%E2%80%93%20Commitments%20and%20Contingencies) The company is involved in various legal proceedings, including putative class action claims under the Video Privacy Protection Act (VPPA) and a New York statute, Wellington construction damage litigation, and Philadelphia Code violation litigation. Management believes the ultimate outcome of these matters will not have a material adverse effect on the company's financial position, and no reserves have been established for the VPPA or NY Statute claims due to belief that liability is not probable. A reasonable possibility of liability for defense costs in Wellington litigation is estimated between **$0** and **$1 million** - The company is a defendant in two putative class action lawsuits under the Video Privacy Protection Act (VPPA) and related state statutes, alleging disclosure of movie viewing habits[98](index=98&type=chunk) - Management believes it has valid defenses to the VPPA claims and that liability is not probable, thus no reserve has been established[100](index=100&type=chunk) - In Wellington construction damage litigation, there's a reasonable possibility of liability for defense costs, estimated between **$0** and **$1 million**, but no reserve has been accrued as liability is not probable[101](index=101&type=chunk)[102](index=102&type=chunk) [Note 17 – Non-controlling Interests](index=24&type=section&id=Note%2017%20%E2%80%93%20Non-controlling%20Interests) Noncontrolling interests primarily consist of Australian Country Cinemas, Shadow View Land and Farming, LLC, and Sutton Hill Properties, LLC. Total noncontrolling interests in consolidated subsidiaries were **$(745,000)** at June 30, 2025. Net income attributable to noncontrolling interests was **$(137,000)** for Q2 2025 and **$(328,000)** for 6M 2025 | Entity | June 30, 2025 ($ thousands) | December 31, 2024 ($ thousands) | | :------------------------------------ | :------------ | :---------------- | | Australian Country Cinemas, Pty Ltd | $168 | $128 | | Shadow View Land and Farming, LLC | $(2) | $(2) | | Sutton Hill Properties, LLC | $(911) | $(552) | | Noncontrolling interests in consolidated subsidiaries | $(745) | $(426) | | Entity | Quarter Ended June 30, 2025 ($ thousands) | Quarter Ended June 30, 2024 ($ thousands) | Six Months Ended June 30, 2025 ($ thousands) | Six Months Ended June 30, 2024 ($ thousands) | | :------------------------------------ | :-------------------------- | :-------------------------- | :----------------------------- | :----------------------------- | | Australian Country Cinemas, Pty Ltd | $46 | $3 | $31 | $(9) | | Shadow View Land and Farming, LLC | $— | $— | $— | $— | | Sutton Hill Properties, LLC | $(183) | $(198) | $(359) | $(361) | | Net income (loss) attributable to noncontrolling interests | $(137) | $(195) | $(328) | $(370) | [Note 18 – Stock-Based Compensation and Stock Repurchases](index=25&type=section&id=Note%2018%20%E2%80%93%20Stock-Based%20Compensation%20and%20Stock%20Repurchases) The 2020 Stock Incentive Plan allows for granting stock options and restricted stock units (RSUs) to employees, directors, and consultants. As of June 30, 2025, **1,278,291 shares** were available for issuance. Stock option compensation expense was **$265,000** for Q2 2025 and **$564,000** for 6M 2025. RSU compensation expense was **$264,000** for Q2 2025 and **$565,000** for 6M 2025. The stock repurchase program expired on March 10, 2024, and was not renewed - As of June 30, 2025, there were **1,278,291 shares** of Class A Common Stock available for issuance under the 2020 Stock Incentive Plan[108](index=108&type=chunk) | Metric | Quarter Ended June 30, 2025 ($ thousands) | Six Months Ended June 30, 2025 ($ thousands) | | :-------------------------- | :-------------------------- | :----------------------------- | | Stock option compensation expense | $265 | $564 | | RSU compensation expense | $264 | $565 | | Total unrecognized compensation expense (non-vested RSUs) | | $1,500 | | Weighted average vesting period (non-vested RSUs) | | 0.73 years | - The stock repurchase program expired on March 10, 2024, and has not been renewed[115](index=115&type=chunk) [Note 19 – Hedge Accounting](index=26&type=section&id=Note%2019%20%E2%80%93%20Hedge%20Accounting) The company uses interest rate derivative contracts to hedge floating-rate borrowings, holding derivatives with a notional value of **$32.9 million (AU$50.0 million)** at June 30, 2025. These derivatives are recorded at fair value on the balance sheet, with changes in fair value recorded in Other Comprehensive Income and reclassified to interest expense. The company expects to release **$321,000** to earnings over the remaining life of the derivative - The company held interest rate derivative instruments with a notional value of **$32.9 million (AU$50.0 million)** at June 30, 2025, to hedge floating-rate borrowings[116](index=116&type=chunk) | Metric | June 30, 2025 ($ thousands) | December 31, 2024 ($ thousands) | | :---------------------------------------- | :------------ | :---------------- | | Derivative financial instruments - non-current portion | $235 | $137 | | Total derivatives designated as hedging instruments | $235 | $137 | - The company expects to release **$321,000** to earnings over the remaining life of the derivative as of June 30, 2025[117](index=117&type=chunk) [Note 20 – Fair Value Measurements](index=27&type=section&id=Note%2020%20%E2%80%93%20Fair%20Value%20Measurements) The company classifies financial liabilities carried at cost and measured at fair value on a non-recurring basis using a three-level hierarchy. Notes payable and subordinated debt are valued using Level 3 inputs, incorporating discounted cash flow models with market discount rates and credit spreads. Cash, cash equivalents, receivables, and accounts payable approximate fair value due to their short maturities | Financial Liability | Carrying Value (June 30, 2025) ($ thousands) | Fair Value (Level 3, June 30, 2025) ($ thousands) | | :------------------ | :----------------------------- | :---------------------------------- | | Notes payable | $145,518 | $146,299 | | Subordinated debt | $27,913 | $27,829 | | Total | $173,431 | $174,128 | - Level 3 borrowings are valued using discounted cash flow models that incorporate market discount rates (treasury rates/SOFR plus credit spreads)[129](index=129&type=chunk) - Cash, cash equivalents, receivables, and accounts payable approximate fair value due to their short maturities[123](index=123&type=chunk) [Note 21 – Subsequent Events](index=28&type=section&id=Note%2021%20%E2%80%93%20Subsequent%20Events) Subsequent to June 30, 2025, the company extended the maturity dates of its Bank of America facility to May 18, 2026, and its Santander facility to June 1, 2026. The One Big Beautiful Bill Act (OBBBA) was enacted on July 4, 2025, introducing significant tax law changes, but the company does not anticipate a material effect on its 2025 consolidated financial statements - Bank of America facility maturity extended to May 18, 2026, and Santander facility maturity extended to June 1, 2026, both on July 3 and July 18, 2025, respectively[124](index=124&type=chunk) - The One Big Beautiful Bill Act (OBBBA) enacted on July 4, 2025, includes tax law changes like **100% bonus depreciation** and immediate expensing of R&D, but is not expected to materially affect 2025 financial statements[125](index=125&type=chunk) [Item 2 – Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202%20%E2%80%93%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial condition and results of operations, highlighting the recovery of the cinema business, strategic real estate asset monetizations, and key performance indicators. It details segment-specific performance, liquidity management strategies, and critical accounting policies, while also including a cautionary statement regarding forward-looking information [Cinema Exhibit Segment](index=29&type=section&id=Cinema%20Exhibit%20Segment) The cinema segment showed robust performance in Q2 2025, driven by strong film releases and increased audience demand, despite lingering effects from the 2023 Hollywood strikes and macroeconomic challenges. Key films like 'A Minecraft Movie' and 'Lilo & Stitch' significantly boosted box office revenue. The company continues to upgrade food and beverage offerings and has closed eight underperforming locations since the pandemic to improve operational efficiency - The cinema business experienced robust performance in Q2 2025, with strong audience demand and successful film releases like 'A Minecraft Movie' and 'Lilo & Stitch'[130](index=130&type=chunk)[131](index=131&type=chunk)[139](index=139&type=chunk)[140](index=140&type=chunk) - The company has closed **eight** underperforming cinema locations since the start of the COVID-19 pandemic to improve operational performance[136](index=136&type=chunk) - Efforts are underway to enhance food and beverage programs, including securing beer and wine licenses at all U.S. cinemas and liquor licenses at most, with similar initiatives in Australia and New Zealand[137](index=137&type=chunk) [Real Estate Segment](index=30&type=section&id=Real%20Estate%20Segment) The real estate segment continued its strategy of asset monetization to bolster liquidity, selling Cannon Park properties for **$20.7 million** and Wellington properties for **$21.5 million** in 2025, using proceeds to pay down debt. Leasing efforts continue for the 44 Union Square building, and development projects are largely paused due to liquidity requirements, with Newberry Yard remaining held for sale - Cannon Park properties in Australia were sold for **$20.7 million**, and Wellington properties in New Zealand for **$21.5 million**, with proceeds used to pay down approximately **$32.1 million** in debt[144](index=144&type=chunk) - Real estate development projects are largely paused due to liquidity requirements, with capital expenditures primarily focused on existing cinema improvements[145](index=145&type=chunk) - The Newberry Yard property in Williamsport, Pennsylvania, continues to be held for sale to bolster liquidity[145](index=145&type=chunk) [Company Overview](index=30&type=section&id=Company%20Overview) Reading International is an internationally diversified company focused on cinema exhibition and real estate assets in the U.S., Australia, and New Zealand. Historically, cinema cash flows supported real estate development, but recent challenges necessitated relying on real estate income and asset monetization. The company believes improved film releases will restore cinema cash flow, and continues to hold one asset (Newberry Yard) for sale to meet liquidity needs - The company is an internationally diversified entity with two core business segments: cinema exhibition (**58 cinemas**) and real estate (development and rental of retail, commercial, and live theatre assets)[146](index=146&type=chunk) - Due to COVID-19 and Hollywood strikes, the company shifted from using cinema cash flows for real estate development to relying on real estate income and asset monetization for support[146](index=146&type=chunk) - The company anticipates improved film releases will enable cinema cash flows to once again enhance its real estate portfolio, while continuing to monetize assets like Newberry Yard for liquidity[147](index=147&type=chunk) [Key Performance Indicators](index=31&type=section&id=Key%20Performance%20Indicators) Key performance indicators for the cinema segment include Food & Beverage Spend Per Patron (F&B SPP) and Average Ticket Price (ATP) Per Patron, both showing increases across all geographies for Q2 2025. For the real estate segment, Net Operating Income (NOI), Occupancy Factor, and Average Lease Duration are used, with Australia showing positive NOI and high occupancy, and U.S. Live Theatres improving rental and ancillary income | Metric | Geography | Q2 2025 ($) | Q2 2024 ($) | % Change | | :------------------------ | :---------- | :------ | :------ | :------- | | F&B Spend Per Patron | United States | $9.13 | $8.12 | 12.4% | | | Australia | $8.26 | $7.67 | 7.7% | | | New Zealand | $7.14 | $6.60 | 8.2% | | Average Ticket Price | United States | $13.44 | $13.27 | 1.3% | | | Australia | $16.34 | $13.11 | 24.6% | | | New Zealand | $14.70 | $11.35 | 29.5% | | Metric | Geography | Q2 2025 ($ thousands) | Q2 2024 ($ thousands) | % Change | | :------------------------ | :---------- | :------ | :------ | :------- | | Net Operating Income | United States | $(274.8) | $(322.8) | 14.9% | | | Australia | $718.2 | $736.8 | (2.5)% | | | New Zealand | $(209.4) | $(797.5) | 73.7% | | Occupancy Factor | Australia | 98.8% | 95.3% | 3.5 %age points | | | New Zealand | 100% | 100% | - %age points | | Average Lease Duration | Australia | 3.79 Years | 3.25 Years | 0.54 years | | | New Zealand | 0.58 Years | 1.00 Years | (0.42) years | - U.S. Live Theatre rental and ancillary income improved to **$0.6 million** for Q2 2025, up from **$0.4 million** in Q2 2024[155](index=155&type=chunk) [Cinema Exhibition Segment Overview](index=32&type=section&id=Cinema%20Exhibition%20Segment%20Overview) The company operates **58 cinemas** with **469 screens** across the U.S., Australia, and New Zealand under various brands. Cinema revenues are primarily from ticket and F&B sales, screen advertising, and online fees. The company is planning a new state-of-the-art cinema in Noosa, Australia, and will renovate the Courtenay Central cinema in Wellington, New Zealand. Upgrades include digital screens, premium formats (IMAX, TITAN XC/LUXE), dine-in services, and expanded liquor licenses - The company operates **58 cinemas** with **469 screens** globally, with **18 locations** in the U.S., **30** in Australia, and **10** in New Zealand[157](index=157&type=chunk) - Cinema revenues are primarily derived from ticket sales, food & beverage sales, screen advertising, gift card sales, cinema rentals, and online convenience fees[159](index=159&type=chunk) | Upgrade/Service | Location Count | Screen Count | | :-------------------------------- | :------------- | :----------- | | Digital (all cinemas) | 58 | 469 | | IMAX | 1 | 1 | | TITAN XC and TITAN LUXE | 26 | 32 | | Gold Lounge (AU/NZ) | 11 | 29 | | Premium Seating (recliner) | 33 | 198 | | Liquor Licenses | 49 | n/a | [Real Estate Segment Overview](index=34&type=section&id=Real%20Estate%20Segment%20Overview) The real estate segment focuses on developing, owning, and renting retail, commercial, and live theatre assets. Recent asset monetizations, including properties in Wellington, New Zealand, and Cannon Park, Australia, were driven by liquidity needs and capital requirements. Key properties include 44 Union Square (New York), Minetta Lane Theatre, Orpheum Theatre, Newmarket Village ETC (Brisbane), and Belmont Common (Perth). The Reading Viaduct in Philadelphia is also a focus for potential development - The company sold Wellington properties for **NZ$38.0 million ($21.5 million USD)** and Cannon Park ETC for **AU$32.0 million ($20.7 million USD)** to address liquidity needs[180](index=180&type=chunk)[181](index=181&type=chunk) - 44 Union Square in Manhattan is in the lease-up phase, with Petco occupying the lower three floors. Minetta Lane Theatre has a license agreement with Audible through March 2026, and Orpheum Theatre hosts various productions[175](index=175&type=chunk) - The Reading Viaduct in Philadelphia, a **6.5-acre** raised rail bed, is a focus for development, with potential enhancement from the Chinatown Stitch project[184](index=184&type=chunk)[177](index=177&type=chunk) [RESULTS OF OPERATIONS](index=37&type=section&id=RESULTS%20OF%20OPERATIONS) Consolidated revenue increased by **29%** for Q2 2025 and **9%** for 6M 2025, primarily due to stronger cinema performance. Total segment operating income significantly improved, turning from a loss to income for both periods. Net loss attributable to Reading International, Inc. improved by **79%** for Q2 and **71%** for 6M, driven by improved segment results, decreased interest expense, and gains on asset sales. Income tax expense increased due to decreased consolidated losses and higher valuation allowance reserves | Metric | Quarter Ended June 30, 2025 ($ thousands) | Quarter Ended June 30, 2024 ($ thousands) | Six Months Ended June 30, 2025 ($ thousands) | Six Months Ended June 30, 2024 ($ thousands) | | :------------------------------------------------ | :-------------------------- | :-------------------------- | :----------------------------- | :----------------------------- | | Total revenue | $60,378 | $46,808 | $100,547 | $91,861 | | Total segment operating income (loss) | $6,932 | $(3,663) | $4,053 | $(6,938) | | Net income (loss) attributable to Reading International, Inc. | $(2,667) | $(12,806) | $(7,423) | $(26,034) | | Basic earnings (loss) per share | $(0.12) | $(0.57) | $(0.33) | $(1.16) | - Consolidated revenue increased by **29%** for Q2 2025 and **9%** for 6M 2025, primarily driven by increased cinema revenues from a stronger movie slate[187](index=187&type=chunk)[188](index=188&type=chunk) - Net loss attributable to Reading International, Inc. improved by **79%** for Q2 2025 and **71%** for 6M 2025, mainly due to improved segment performance, lower interest expense, and gains on asset sales[192](index=192&type=chunk)[193](index=193&type=chunk) [Cinema Exhibition Segment Results](index=39&type=section&id=Cinema%20Exhibition%20Segment%20Results) Cinema revenue for Q2 2025 increased by **$13.8 million (32%)** to **$56.8 million**, and for 6M 2025 by **$9.0 million (11%)** to **$93.2 million**, driven by increased attendance and a stronger movie slate. Operating income for the segment improved significantly, turning from a loss of **$4.6 million** to an income of **$5.5 million** in Q2 2025, and from a loss of **$8.8 million** to an income of **$1.0 million** in 6M 2025. This was due to higher revenues and reduced depreciation, partially offset by increased operating and general and administrative expenses | Metric | Quarter Ended June 30, 2025 ($ thousands) | Quarter Ended June 30, 2024 ($ thousands) | Six Months Ended June 30, 2025 ($ thousands) | Six Months Ended June 30, 2024 ($ thousands) | | :-------------------------------- | :-------------------------- | :-------------------------- | :----------------------------- | :----------------------------- | | Total cinema revenue | $56,782 | $42,941 | $93,186 | $84,213 | | Total cinema operating expense | $(47,940) | $(43,903) | $(85,597) | $(85,775) | | Total Cinema operating income (loss) | $5,453 | $(4,609) | $979 | $(8,775) | - Cinema revenue increased by **$13.8 million (32%)** for Q2 2025 and **$9.0 million (11%)** for 6M 2025, primarily due to increased global attendance and a stronger movie slate[199](index=199&type=chunk)[200](index=200&type=chunk) - Cinema segment operating income improved by **$10.1 million** for Q2 2025 and **$9.8 million** for 6M 2025, driven by increased revenues and decreased depreciation, despite higher operating and G&A expenses[201](index=201&type=chunk)[202](index=202&type=chunk) [Real Estate Segment Results](index=40&type=section&id=Real%20Estate%20Segment%20Results) Real estate rent revenue decreased by **$0.4 million (7%)** for Q2 2025 and **$0.4 million (5%)** for 6M 2025, primarily due to property sales in Wellington and Cannon Park, partially offset by higher U.S. live theatre income. Real estate segment operating income increased by **$0.5 million (56%)** for Q2 2025 and **$1.2 million (67%)** for 6M 2025, driven by improved live theatre performance, decreased operating expenses, and reduced depreciation and G&A expenses | Metric | Quarter Ended June 30, 2025 ($ thousands) | Quarter Ended June 30, 2024 ($ thousands) | Six Months Ended June 30, 2025 ($ thousands) | Six Months Ended June 30, 2024 ($ thousands) | | :-------------------------------- | :-------------------------- | :-------------------------- | :----------------------------- | :----------------------------- | | Total real estate revenue | $4,653 | $5,013 | $9,498 | $9,946 | | Total operating expense | $(1,840) | $(2,461) | $(3,795) | $(4,696) | | Total real estate operating income (loss) | $1,479 | $946 | $3,074 | $1,837 | - Real estate rent revenue decreased by **$0.4 million** for both Q2 and 6M 2025, mainly due to the sales of Wellington and Cannon Park properties, partially offset by increased U.S. live theatre income[207](index=207&type=chunk)[208](index=208&type=chunk) - Real estate segment operating income increased by **$0.5 million (56%)** for Q2 2025 and **$1.2 million (67%)** for 6M 2025, driven by improved live theatre performance and reduced expenses[209](index=209&type=chunk)[210](index=210&type=chunk) [LIQUIDITY AND CAPITAL RESOURCES](index=42&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) The company's financing strategy has shifted from funding capital investments with cinema cash flow to relying on borrowings and asset monetizations due to pandemic impacts and macroeconomic headwinds. Cash used in operating activities decreased by **$7.0 million** for 6M 2025, while cash provided by investing activities significantly increased by **$30.4 million** due to property sales. Cash used in financing activities increased by **$36.0 million** due to debt repayments. The company had **$9.1 million** in unrestricted cash and **$173.4 million** in total outstanding borrowings at June 30, 2025, with a negative working capital of **$109.2 million** - Financing strategy shifted to reliance on borrowings and asset monetizations due to disruptions in cinema cash flow and macroeconomic pressures[213](index=213&type=chunk) | Metric | Six Months Ended June 30, 2025 ($ thousands) | Six Months Ended June 30, 2024 ($ thousands) | | :---------------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by (used in) operating activities | $(6,151) | $(13,157) | | Net cash provided by (used in) investing activities | $37,806 | $7,398 | | Net cash provided by (used in) financing activities | $(34,883) | $1,125 | - At June 30, 2025, the company had **$9.1 million** in unrestricted cash and cash equivalents, **$173.4 million** in total outstanding borrowings, and a working capital deficit of **$109.2 million**[225](index=225&type=chunk)[224](index=224&type=chunk) [CONTRACTUAL OBLIGATIONS, COMMITMENTS AND CONTINGENCIES](index=44&type=section&id=CONTRACTUAL%20OBLIGATIONS%2C%20COMMITMENTS%20AND%20CONTINGENCIES) The company's total contractual obligations and commitments amount to **$436.0 million**, with significant portions due in 2026. This includes **$145.5 million** in debt, **$235.8 million** in operating leases, and **$27.9 million** in subordinated debt. The company is also involved in legal proceedings, with estimates of probable and estimable losses accrued, and no off-balance sheet arrangements that would materially affect its financial condition | Obligation Type | 2025 ($ thousands) | 2026 ($ thousands) | 2027 ($ thousands) | 2028 ($ thousands) | 2029 ($ thousands) | Thereafter ($ thousands) | Total ($ thousands) | | :------------------------------ | :----- | :------- | :----- | :----- | :----- | :--------- | :------ | | Debt | $30,888 | $114,630 | $— | $— | $— | $— | $145,518 | | Operating leases, including imputed interest | $14,510 | $27,028 | $25,237 | $24,160 | $22,740 | $122,160 | $235,835 | | Subordinated debt | $— | $— | $27,913 | $— | $— | $— | $27,913 | | Total | $58,697 | $152,057 | $55,003 | $24,844 | $23,196 | $122,160 | $435,957 | - The company has no off-balance sheet arrangements or obligations that are reasonably likely to have a material effect on its financial condition[232](index=232&type=chunk) [CRITICAL ACCOUNTING POLICIES](index=44&type=section&id=CRITICAL%20ACCOUNTING%20POLICIES) Critical accounting policies involve significant judgments and estimates, particularly regarding the impairment of long-lived assets (excluding goodwill and indefinite-lived intangibles) and the impairment of goodwill and indefinite-lived intangible assets. Long-lived assets are evaluated using undiscounted future cash flows, while goodwill and indefinite-lived intangibles are tested annually by comparing fair value to carrying amount using discounted cash flow models. No impairment losses were recorded for either category in Q2 2025 - Impairment of long-lived assets (excluding goodwill and indefinite-lived intangibles) is evaluated using historical and projected undiscounted cash flows; no impairment losses were recorded in Q2 2025[233](index=233&type=chunk)[234](index=234&type=chunk) - Impairment of goodwill and indefinite-lived intangible assets is tested annually using discounted cash flow models, with significant assumptions on cost of debt and equity; no impairment losses were recorded in Q2 2025[235](index=235&type=chunk)[236](index=236&type=chunk) [CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS](index=45&type=section&id=CAUTIONARY%20STATEMENT%20REGARDING%20FORWARD-LOOKING%20STATEMENTS) This section highlights that the report contains forward-looking statements, which are based on current beliefs and expectations and are subject to inherent uncertainties, risks, and changes in circumstances. It lists numerous important factors that could cause actual results to differ materially, including reduced consumer demand, impacts of Hollywood strikes, competition, macroeconomic conditions, real estate development risks, and international operational risks. The company undertakes no obligation to update these statements - Forward-looking statements are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict and many of which are outside of the company's control[238](index=238&type=chunk) - Key risk factors include reduced consumer demand, impacts of Hollywood strikes, changes in consumer behavior, increased operating expenses, competition, and the ability to obtain loan extensions[238](index=238&type=chunk) - The company does not undertake any obligation to publicly update or revise forward-looking statements, except as required by applicable law[242](index=242&type=chunk) [Item 3 – Quantitative and Qualitative Disclosure about Market Risk](index=48&type=section&id=Item%203%20%E2%80%93%20Quantitative%20and%20Qualitative%20Disclosure%20about%20Market%20Risk) The company is exposed to market risks from currency exchange rate fluctuations and interest rate changes. Significant portions of revenue and obligations are in AUD and NZD, which can vary against the USD. While natural hedges exist, intercompany debt and fund repatriation can be impacted. The company uses interest rate derivative contracts to manage floating-rate debt, and a **1%** change in short-term interest rates would result in an approximate **$415,000** change in quarterly interest expense - The company is exposed to currency risk due to substantial portions of revenue and obligations denominated in Australian and New Zealand dollars[245](index=245&type=chunk) - At June 30, 2025, approximately **36.5%** of assets were in AUD and **5.9%** in NZD. The average AUD and NZD weakened against the U.S. dollar by **2.7%** and **1.9%** respectively in Q2 2025[248](index=248&type=chunk)[250](index=250&type=chunk) - To manage interest rate risk from long-term floating-rate borrowings, the company uses interest rate derivative contracts. A **1%** change in short-term interest rates would result in an approximate **$415,000** increase or decrease in quarterly interest expense[254](index=254&type=chunk)[256](index=256&type=chunk) [Item 4 – Controls and Procedures](index=50&type=section&id=Item%204%20%E2%80%93%20Controls%20and%20Procedures) The company's disclosure controls and procedures were deemed not effective as of June 30, 2025, due to a material weakness in internal controls over financial reporting related to an erroneous reversal and treatment of a liability. This material weakness led to restatements for prior periods. No other material changes in internal control over financial reporting occurred during Q2 2025 - Disclosure controls and procedures were not effective as of June 30, 2025, due to a material weakness in internal controls over financial reporting[258](index=258&type=chunk) - The material weakness relates to the erroneous reversal and treatment of a liability, which resulted in restatements for June 30, 2024, and September 30, 2024 periods[258](index=258&type=chunk) - No other material changes in internal control over financial reporting occurred during the second quarter ended June 30, 2025[260](index=260&type=chunk) [PART II – Other Information](index=51&type=section&id=PART%20II%20%E2%80%93%20Other%20Information) This section provides additional disclosures on legal proceedings, risk factors, equity sales, defaults, mine safety, other information, and a list of exhibits [Item 1 – Legal Proceedings](index=51&type=section&id=Item%201%20%E2%80%93%20Legal%20Proceedings) Information regarding legal proceedings is incorporated by reference from Note 16 – Commitments and Contingencies in Part I, Item 1 of this Quarterly Report on Form 10-Q, which details ongoing litigation matters and the company's accounting policies for such claims - Legal proceedings information is incorporated by reference from Note 16 – Commitments and Contingencies[263](index=263&type=chunk) [Item 1A – Risk Factors](index=51&type=section&id=Item%201A%20%E2%80%93%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in Item 1A of the company's 2024 Form 10-K. Investors are encouraged to review the risks and uncertainties outlined in the 2024 Form 10-K and subsequent Quarterly Reports - No material changes to risk factors have occurred since the 2024 Form 10-K filing[264](index=264&type=chunk) - Investors are advised to review risk factors in the 2024 Form 10-K and subsequent Quarterly Reports[264](index=264&type=chunk) [Item 2 – Unregistered Sales of Equity Securities and Use of Proceeds](index=51&type=section&id=Item%202%20%E2%80%93%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) There were no unregistered sales of equity securities or use of proceeds during the reporting period - No unregistered sales of equity securities or use of proceeds occurred[265](index=265&type=chunk) [Item 3 – Defaults Upon Senior Securities](index=51&type=section&id=Item%203%20%E2%80%93%20Defaults%20Upon%20Senior%20Securities) There were no defaults upon senior securities during the reporting period - No defaults upon senior securities occurred[266](index=266&type=chunk) [Item 4 – Mine Safety Disclosure](index=51&type=section&id=Item%204%20%E2%80%93%20Mine%20Safety%20Disclosure) This item is not applicable to the company - Mine Safety Disclosure is not applicable[267](index=267&type=chunk) [Item 5 – Other Information](index=51&type=section&id=Item%205%20%E2%80%93%20Other%20Information) During the quarter ended June 30, 2025, no director or officer of the company adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements - No director or officer adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the quarter ended June 30, 2025[268](index=268&type=chunk) [Item 6 – Exhibits](index=52&type=section&id=Item%206%20%E2%80%93%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including various waiver and amendment agreements related to credit facilities, certifications from executive officers, and interactive data files in iXBRL format - Exhibits include waiver and amendment agreements for credit facilities with Bank of America, Emerald Creek Capital, and National Australia Bank[270](index=270&type=chunk) - Certifications from the Principal Executive Officer and Principal Financial Officer pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002 are filed[270](index=270&type=chunk) - The financial statements are provided in iXBRL (Inline Extensible Business Reporting Language) format as Exhibit 101[270](index=270&type=chunk) [SIGNATURES](index=53&type=section&id=SIGNATURES) The report is duly signed on behalf of Reading International, Inc. by Ellen M. Cotter, President and Chief Executive Officer, and Gilbert Avanes, Executive Vice President, Chief Financial Officer and Treasurer, on August 14, 2025 - The report was signed by Ellen M. Cotter, President and Chief Executive Officer, and Gilbert Avanes, Executive Vice President, Chief Financial Officer and Treasurer, on August 14, 2025[275](index=275&type=chunk)

Core Insights - Reading International, Inc. reported a total revenue of $60.4 million for Q2 2025, marking a 29% increase from $46.8 million in Q2 2024, driven by strong performance in both cinema and real estate divisions [7][25] - The company achieved an operating income of $2.9 million in Q2 2025, a significant improvement of 138% compared to a loss of $7.7 million in Q2 2024, reflecting the highest operating income since Q2 2019 [7][25] - The cinema segment saw a revenue increase of 32% to $56.8 million in Q2 2025, with operating income rising by 218% to $5.5 million from an operating loss of $4.6 million in Q2 2024 [11][25] Financial Performance - For the first six months of 2025, total revenues reached $100.5 million, a 9% increase from $91.9 million in the same period of 2024 [7][25] - The company reported a net loss attributable to Reading of $2.7 million in Q2 2025, an improvement of 79% compared to a loss of $12.8 million in Q2 2024 [7][25] - Basic loss per share improved by 79% to $0.12 in Q2 2025 from $0.57 in Q2 2024 [7][25] Real Estate Division - The global real estate division reported an operating income increase of 56% quarter-over-quarter and 67% year-over-year, with a notable sale of real property assets in Cannon Park, Australia for AU$32.0 million [6][8] - The U.S. real estate revenues increased by 15% to $1.7 million in Q2 2025, attributed to improved performance of live theatre assets in New York City [11][25] Currency Impact - The average exchange rates for the Australian and New Zealand dollars weakened against the U.S. dollar by 2.7% and 1.9% respectively in Q2 2025, impacting reported operating results as 47% of total revenues are generated from these regions [5][25] Strategic Focus - The company emphasized its commitment to operational efficiency and strategic priorities across its cinema and real estate teams, which contributed to the improved financial performance [8][6] - Upcoming movie releases are expected to bolster cinema revenues, with a robust lineup including titles like TRON: Ares and Zootopia 2 [6][8]

Group 1 - The Angelika Film Center & Cafe in New York City is hosting a unique theatre takeover for the premiere of Wes Anderson's film "The Phoenician Scheme," marking the first of its kind in the city [1] - The event will feature an immersive experience with a re-designed lobby and cafe, themed around the film, running for two weeks starting May 29 [1][2] - Exclusive merchandise related to the film will be available for purchase, including character tote bags and themed T-shirts [3] Group 2 - The event will include a themed bar with customized menu items and live jazz music during the opening weekend [2] - Director Wes Anderson and cast members will attend for Q&A sessions and introductions on May 30 [6] - "The Phoenician Scheme" is a story about a family business and espionage, featuring a star-studded cast including Benicio del Toro and Scarlett Johansson [7] Group 3 - Reading International, Inc. operates the Angelika Film Center and is involved in cinema and real estate development across the United States, Australia, and New Zealand [9][10] - The company operates under various cinema brands, including Reading Cinemas and Consolidated Theatres, and has live theatre operations under Liberty Theaters [11]

Summary of Reading International (RDI) Conference Call - May 22, 2025 Company Overview - **Company Name**: Reading International (RDI) - **Ticker Symbols**: RDI (voting stock), RDIV (non-voting stock) [2] - **Business Model**: Operates in two primary sectors: cinema and real estate, across three countries: the US, Australia, and New Zealand [4][5] Industry Context - **Cinema Business**: The cinema sector has historically funded real estate acquisitions and expansions, contributing to shareholder value [5] - **Real Estate Business**: The company holds numerous real estate assets, particularly in New York City and Philadelphia, which are part of its legacy from the Reading Railroad [5][8] Financial Performance - **Debt Reduction**: Successfully reduced debt from $276 million to $173 million since June 2020, despite challenges posed by COVID-19 [16] - **Revenue Trends**: The first quarter of 2025 showed a mixed performance, but overall revenue trends are positive, with a focus on maintaining a 50/50 revenue split between cinema and real estate [14][19] Challenges Faced - **COVID-19 Impact**: The pandemic severely affected operations, leading to a lack of US government support, unlike subsidiaries in Australia and New Zealand that received grants [10][11] - **Supply Chain Disruptions**: Ongoing issues with the Screen Actors Guild strikes and tariffs affecting the ability to distribute films [9] - **Economic Environment**: Operating in a high-interest-rate environment and facing a downturn in commercial office real estate [9] Strategic Initiatives - **Asset Sales**: Focus on selling non-income producing assets to maintain liquidity, including the recent sale of Cannon Park for AUD 32 million [22] - **Real Estate Development**: Plans to complete leasing of key properties, such as Union Square in New York City, and evaluate the potential of the Reading Viaduct and Philadelphia properties [20][32] - **Cinema Expansion**: Aiming to enhance cinema offerings with premium screens and improved food and beverage services [42][44] Market Position - **Exhibitor Rankings**: RDI is the 13th largest exhibitor in the US, 4th in Australia, and 3rd in New Zealand [5][7] - **Niche Market**: The Angelica Film Center is a leader in the specialty arts cinema market in the US, while the Consolidated brand is the largest in Hawaii [37][46] Future Outlook - **Box Office Recovery**: Anticipated rebound in box office performance, supported by upcoming film releases and a strong management team [45][46] - **Diversification**: The company remains diversified across three stable economies, with approximately 50% of revenues generated from Australia and New Zealand [47] Key Metrics - **Occupancy Rates**: Australia and New Zealand properties maintain a 98% occupancy rate among third-party tenants [28] - **Food and Beverage Performance**: Significant growth in spend per head across all geographies, with plans to enhance offerings [43] Conclusion - **Investment Proposition**: RDI is well-positioned to capitalize on the anticipated recovery in the cinema industry, supported by a strong real estate portfolio and effective management strategies [45][47]

Financial Data and Key Metrics Changes - For Q1 2025, consolidated revenue decreased by $4.9 million to $40.2 million compared to Q1 2024, primarily due to lower attendance across all markets and the closure of two cinemas [40][42] - The net loss attributable to Reading International Inc. for Q1 2025 was $4.8 million, a decrease of $8.5 million from a loss of $13.2 million in Q1 2024 [42] - Adjusted EBITDA increased by $6.9 million to $2.9 million in Q1 2025, compared to a negative EBITDA of $4 million in Q1 2024 [43] Business Line Data and Key Metrics Changes - Global cinema revenue for Q1 2025 was $36.4 million, down 12% from Q1 2024, representing just under 63% of pre-pandemic Q1 2019 levels [15][40] - Global real estate revenue decreased by 2% to $4.8 million, while operating income increased by 79% to $1.6 million, driven by improved live theater performance and reduced holding expenses [13][30] Market Data and Key Metrics Changes - The average exchange rates for the Australian and New Zealand dollars weakened against the U.S. dollar by 4.5% and 7.3% respectively compared to Q1 2024, impacting revenue [10][40] - The cinema industry faced challenges due to the underperformance of major film releases, notably Disney's Snow White, which affected box office results [9][40] Company Strategy and Development Direction - The company is focused on reducing debt and rebuilding operational cash flow, with plans for cinema renovations and upgrades in the U.S., Australia, and New Zealand [50][52] - Strategic initiatives include enhancing food and beverage offerings, expanding loyalty programs, and recalibrating occupancy costs with landlords to reflect current economic conditions [20][25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for a stronger 2026 and beyond, citing an improving interest rate environment and a promising film slate for the upcoming summer and holiday periods [38] - The company acknowledged the challenges faced over the past five years but emphasized efforts to streamline operations and monetize real estate assets to support the cinema business [37][38] Other Important Information - The company completed the sale of its Wellington, New Zealand property for NZD 38 million, which helped reduce debt and interest expenses [5][45] - The company is working on selling its Cannon Park assets in Townsville, Australia, with an expected closing date of May 21, 2025 [8][47] Q&A Session Summary Question: What is your cinema CapEx forecast for 2025? - The company plans to convert 10 auditoriums to recliners and add a Titan Luxe screen in one U.S. theater, with additional upgrades planned for four other cinemas [50] Question: What are Reading's intermediate term plans for the Minetta Lane and Orpheum sites? - The focus is on reducing debt and maintaining cash flow, with ongoing reviews of asset values and potential future opportunities [52][54] Question: Do you expect to refinance the Santander loan? - Discussions are ongoing with Santander to extend the existing loan for another year, with expected interest rates remaining stable [55] Question: What steps will the company take to attract analysts and investors? - The company will participate in the Sidoti conference and host one-on-one meetings with potential shareholders, while maintaining contact with existing analysts [56]

Financial Data and Key Metrics Changes - For Q1 2025, consolidated revenue decreased by $4.9 million to $40.2 million compared to Q1 2024, primarily due to lower attendance across all markets and the closure of two cinemas [40][41] - The net loss attributable to Reading International for Q1 2025 was $4.8 million, an improvement from a loss of $13.2 million in Q1 2024, with basic loss per share decreasing to $0.21 from $0.59 [42] - Adjusted EBITDA increased to $2.9 million in Q1 2025, a significant improvement from a negative EBITDA of $4 million in Q1 2024 [43] Business Line Data and Key Metrics Changes - Global cinema revenue for Q1 2025 was $36.4 million, down 12% from Q1 2024, representing just under 63% of pre-pandemic levels [13] - Global real estate revenue decreased by 2% to $4.8 million, while operating income increased by 79% to $1.6 million, driven by improved live theater performance and reduced holding expenses [12][30] Market Data and Key Metrics Changes - The average exchange rates for the Australian and New Zealand dollars weakened against the U.S. dollar by 4.5% and 7.3% respectively, impacting revenue as approximately 50% of total revenue is generated internationally [9] - The cinema industry faced challenges due to a weaker box office, attributed to the lingering effects of the 2023 Hollywood strikes and underperforming film releases [8][15] Company Strategy and Development Direction - The company is focused on reducing debt and rebuilding operational cash flow, with plans for cinema renovations and upgrades in the U.S., Australia, and New Zealand [50][51] - Strategic initiatives include enhancing food and beverage offerings, expanding loyalty programs, and recalibrating occupancy costs with landlords to reflect current economic conditions [20][25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for a stronger 2026 and beyond, anticipating improvements in the interest rate environment and a stabilizing film slate [38] - The second quarter of 2025 has shown better box office performance, with successful film releases contributing to improved theater-level cash flow [15][17] Other Important Information - The company completed the sale of its Wellington assets for NZD 38 million, which helped eliminate significant debt and reduce annual interest expenses [6] - The company is actively working on selling its Cannon Park assets in Townsville, Australia, with an expected closing date of May 21, 2025 [7][47] Q&A Session Summary Question: What is your cinema CapEx forecast for 2025? - The company plans to renovate one theater in the U.S. and is working on upgrades for several others in New Zealand and Australia, though completion is not guaranteed [50][51] Question: What are Reading's intermediate term plans for the Minetta Lane and Orpheum sites? - The focus is on reducing debt and maintaining cash flow from these assets while exploring future opportunities [52][54] Question: Do you expect to refinance the Santander loan? - Discussions are ongoing to extend the existing loan for another year, with expected terms including a partial pay down [56] Question: What steps will the company take to attract analysts and investors? - The company will participate in the Sidoti conference and host one-on-one meetings with potential shareholders to enhance visibility and valuation [57][58]

Core Points - Reading International, Inc. is scheduled to participate in Sidoti's Virtual Micro-Cap Investor Conference on May 21-22, 2025 [1] - The company's Executive Vice President – Global Operations, Andrzej Matyczynski, will present virtually on May 22, 2025, at 10:45 A.M. Eastern time, discussing financial results, business outlook, and capital allocation strategy [2] - The investor presentation will be available on the company's corporate website after the conference [3] Company Overview - Reading International, Inc. is an internationally diversified cinema and real estate company with operations in the United States, Australia, and New Zealand [4] - The company operates various cinema brands, including Reading Cinemas, Consolidated Theatres, and Angelika, and owns live theatres under the Liberty Theaters subsidiary [5] - Signature property developments include Newmarket Village in Brisbane, Australia, and 44 Union Square in New York City [5]