[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]

Financial Performance - Total Revenues for Q4 2024 increased by 29.3% (or $13.3 million) to $58.6 million compared to $45.3 million in Q4 2023[8] - Operating Income improved from a loss of $7.0 million in Q4 2023 to a positive Operating Income of $1.5 million in Q4 2024[8] - Net Loss decreased from $12.4 million in Q4 2023 to $2.2 million in Q4 2024, driven by improved cinema and real estate revenue[8] - Adjusted EBITDA for Q4 2024 improved by 250.5% to $3.4 million from a negative adjusted EBITDA of $2.2 million in Q4 2023[8] - Full Year 2024 Total Revenues decreased by 5.5% to $210.5 million from $222.7 million in 2023[9] - Operating loss for 2024 was $14,033, compared to a loss of $12,031 in 2023[29] - Net loss attributable to Reading International, Inc. was $35,301 in 2024, compared to a loss of $30,673 in 2023[29] - Basic and diluted earnings per share for 2024 were both $(1.58), compared to $(1.38) in 2023[29] - Total segment revenue for the year ended December 31, 2024 was $210,527, a decrease of 5% from $222,744 in 2023[31] - Adjusted EBITDA for the year ended December 31, 2024 was $7,757, compared to $2,113 in 2023[33] Revenue Breakdown - Global cinema revenue for 2024 decreased by 6.0% to $195.1 million, impacted by the Hollywood strikes[13] - Global Real Estate Division revenues increased by 1% to $20.0 million in 2024, with operating income rising to $4.7 million[12] - In Q4 2024, global cinema revenue increased by 30% to $54.6 million, with operating income rising 191.1% to $3.8 million[13] - Cinema revenues decreased by 6% to $195,130 in 2024 from $207,641 in 2023[29] - Real estate revenues increased by 2% to $15,397 in 2024 from $15,103 in 2023[29] Cash and Liabilities - As of December 31, 2024, cash and cash equivalents were $12.3 million, with total outstanding bank borrowings of $202.7 million[17] - Total current assets increased to $57,042 in 2024 from $38,710 in 2023[30] - Total liabilities decreased to $475,801 in 2024 from $500,055 in 2023[30] Future Outlook - The company anticipates stronger performance in 2025 with the release of highly anticipated titles such as Disney's Lilo & Stitch and Mission Impossible: The Final Reckoning[10] EBITDA Insights - EBITDA is used by the company as a measure of financial performance and value, commonly adopted in the cinema exhibition and real estate industries[37] - The company believes that EBITDA is valuable for investors to assess cash generation ability and to compare with peers in the same industry[37] - EBITDA is not a measurement under generally accepted accounting principles and should not be considered in isolation from net income or cash flow data[38] - The exclusion of interest, taxes, depreciation, and amortization limits the usefulness of EBITDA in assessing financial performance[39] - Adjusted EBITDA is calculated by excluding certain external items not reflective of core business costs, such as legal expenses from extraordinary litigation[41]

Core Insights - Reading International, Inc. reported a total revenue of $40.2 million for Q1 2025, a decrease of 11% from $45.1 million in Q1 2024, primarily due to lower cinema attendance and unfavorable foreign exchange rates [9][27] - The company experienced an operating loss of $6.9 million, which improved by 8.5% compared to the operating loss of $7.5 million in Q1 2024, marking the best first quarter operating result since 2019 [9][28] - The real estate division saw a significant increase in operating income, up 79% to $1.6 million compared to $890,000 in Q1 2024, driven by the sale of property assets [7][28] Financial Performance - Global cinema revenue decreased by 12% to $36.4 million, with an operating loss of $4.5 million, compared to a loss of $4.2 million in Q1 2024 [8][9] - The company recorded a positive EBITDA of $2.9 million, an improvement of 173% from an EBITDA loss of $4.0 million in Q1 2024 [9][29] - Basic loss per share improved by 64% to $0.21 from $0.59 in Q1 2024, with a net loss attributable to Reading of $4.8 million, down from $13.2 million in the same period last year [9][24] Operational Highlights - The cinema business faced challenges due to a weaker film slate and the lingering impacts of the 2023 Hollywood strikes, leading to lower attendance across all markets [5][6] - The company closed two underperforming cinemas, one in the U.S. and one in New Zealand, as part of its strategy to enhance operational efficiency [5][6] - The real estate division achieved its highest operating income since Q2 2018, with a notable sale of real property assets in Wellington, New Zealand for NZ$38.0 million, resulting in a gain of NZ$11.6 million [7][9] Balance Sheet and Liquidity - As of March 31, 2025, the company reported cash and cash equivalents of $5.9 million and total gross debt of $186.6 million, a decrease of 7.9% from the previous quarter [12][25] - The total assets decreased to $441.0 million from $471.0 million as of December 31, 2024, reflecting the impact of asset sales and operational adjustments [25][26] - The company is contracted to sell additional real estate assets in Australia for AU$32 million, with plans to use the proceeds to pay down debt [12]

Financial Performance - Total revenue for Q1 2025 was $40.169 million, a decrease of 10.4% from $45.052 million in Q1 2024[10] - Net loss attributable to Reading International, Inc. for Q1 2025 was $4.752 million, compared to a net loss of $13.228 million in Q1 2024, representing a 64.1% improvement[10] - Operating income for Q1 2025 was a loss of $6.891 million, slightly improved from a loss of $7.531 million in Q1 2024[10] - The company reported a comprehensive loss of $4.301 million for Q1 2025, compared to a comprehensive loss of $15.768 million in Q1 2024, indicating a significant reduction in losses[12] - Total segment revenue was $41.249 million, down from $46.204 million in the same period of 2024, reflecting a decrease of approximately 10.5%[37] - The cinema exhibition segment reported a revenue of $36.404 million for the three months ended March 31, 2025, compared to $41.271 million for the same period in 2024, a decline of about 12%[39] - Total revenue for the quarter ended March 31, 2025, decreased by $4.9 million to $40.2 million, a decline of 11% compared to the same period in 2024[174] - Cinema exhibition revenue dropped by $4.9 million to $36.4 million, a decrease of 12% year-over-year, primarily due to lower attendance and cinema closures[180] Assets and Liabilities - Cash and cash equivalents decreased to $5.911 million as of March 31, 2025, down from $12.347 million at the end of 2024[9] - Total assets decreased to $440.969 million as of March 31, 2025, from $471.011 million at the end of 2024, a decline of 6.4%[9] - Total liabilities decreased to $449.649 million as of March 31, 2025, down from $475.801 million at the end of 2024, a reduction of 5.5%[9] - The company has $53.7 million of debt due within the next twelve months, with a negative working capital of $108.7 million[18] - Total borrowings as of March 31, 2025, amounted to $186.6 million, down from $201.8 million as of December 31, 2024[76] - The current portion of debt decreased to $53.7 million as of March 31, 2025, from $69.2 million as of December 31, 2024[76] - The company's debt-to-equity ratio was (21.50) as of March 31, 2025, a significant increase from (42.32) in 2024[200] - Working capital deficit was reported at $108.7 million as of March 31, 2025, compared to $104.6 million in 2024[200] Cash Flow and Financing Activities - Cash used in operating activities increased by $4.9 million to $7.7 million in Q1 2025, compared to $2.8 million in Q1 2024[197] - Cash provided by investing activities was $17.9 million in Q1 2025, significantly higher than $7.6 million in Q1 2024, due to proceeds from the sale of Wellington property assets[198] - Cash used in financing activities increased by $5.6 million to $16.9 million in Q1 2025, compared to the same period in 2024, driven by higher loan paydowns[199] - The company has $53.7 million in debt coming due in the next 12 months, with ongoing efforts to manage liquidity and defer capital expenditures[191] Real Estate and Asset Management - The company intends to raise liquidity through real estate asset monetization, having successfully sold eight property assets since 2021[22] - The company is under an unconditional contract to sell its Cannon Park property for AU$32.0 million, expected to close on May 21, 2025[21] - The company monetized its properties in Wellington, New Zealand for $21.5 million in Q1 2025, contributing to liquidity[51] - The gain on the sale of the Wellington property was $6,566,000 after direct costs[54] - The company sold its Wellington property assets for NZ$38.0 million in January 2025, using proceeds to repay loans[192] - The company has paused real estate development projects to bolster liquidity, focusing on improvements to existing cinemas instead[136] Operating Expenses and Cost Management - Total operating expenses decreased to $1,955,000 in Q1 2025 from $2,235,000 in Q1 2024, reflecting a reduction of 12.5%[40] - The total operating expense for the cinema segment was $40.879 million for the three months ended March 31, 2025, compared to $45.436 million in the same period of 2024, a decrease of approximately 10.5%[37] - Operating expenses for the quarter decreased by $4.2 million to $37.7 million, reflecting lower costs across all regions[182] - The cinema segment operating loss increased by $0.3 million to $4.5 million, driven by decreased revenue from lower attendance[181] Strategic Initiatives and Future Outlook - The management believes that improvements in film releases will enhance patronage and operating revenue, although attendance levels remain uncertain[20] - The cinema industry is expected to benefit from a strong movie release schedule from 2025 to 2027, including high-quality films like Superman and Jurassic World: Rebirth[123] - The cinema segment is expected to benefit from notable movie releases in 2025, including "Mission: Impossible – The Final Reckoning" and "Avatar: Fire and Ash" which are anticipated to drive audience attendance[129] - The company is actively pursuing liquor licenses to enhance Food and Beverage offerings across its cinema circuits in the U.S., Australia, and New Zealand[133] Stock and Equity - Basic and diluted earnings per share for Q1 2025 were both $(0.21), compared to $(0.59) in Q1 2024[46] - The company’s total stockholders' equity decreased from $(4,790,000) at January 1, 2025, to $(8,680,000) at March 31, 2025[97] - The company has accrued estimates of probable and estimable losses related to ongoing legal proceedings, although it does not expect these to have a material adverse effect on its business[92] Miscellaneous - The average exchange rate for the Australian Dollar was 0.6277 for the quarter ended March 31, 2025, compared to 0.6524 for the same quarter in 2024, indicating a strengthening of the USD[44] - The company recorded no impairment charges for the first three months of 2025, despite lower revenues and operating income compared to the same period in 2024[25] - The company has liquor licenses in 100% of its U.S. cinemas, 86% in Australia, and 38% in New Zealand, with ongoing efforts to increase licensing in New Zealand[158]