The biggest opening weekend for any R-rated movie ever in our U.S. Cinema division, in terms of both attendance and box office. The biggest opening weekend for any MA 15+ rated movie ever in our Australian Cinema division, in terms of both attendance and box office. The biggest opening weekend box office gross, on a same-store basis, for our premium large format screens (i.e. TITAN LUXE, TITAN and IMAX) for any movie in our U.S. Cinema division. Our U.S. Cinema team created a specially curated Deadpool & Wo ...

Reading International, Inc. (NASDAQ:RDI) Q1 2024 Earnings Conference Call May 17, 2024 9:00 AM ET Company Participants Andrzej Matyczynski - EVP, Global Operations Ellen Cotter - President & CEO Gilbert Avanes - EVP, CFO & Treasurer Andrzej Matyczynski This is the first quarter 2024 earnings call. Thank you for joining Reading International's Earnings Call to discuss our 2024 First Quarter Results. My name is Andrzej Matyczynski, and I'm Reading's Executive Vice President of Global Operations. With me are ...

For more information, contact: Gilbert Avanes – EVP, CFO, and Treasurer Andrzej Matyczynski – EVP Global Operations (213) 235-2240 Reading International Reports First Quarter 2024 Results Earnings Call Webcast to Discuss First Quarter Financial Results Scheduled to Post to Corporate Website on Friday, May 17, 2024 New York, May 15, 2024 - Reading International, Inc. (NASDAQ: RDI) ("Reading" or our "Company"), an internationally diversified cinema and real estate company with operations and assets in the Uni ...

Financial Performance - Total revenue for Q1 2024 was $45.052 million, a decrease of 1.65% from $45.807 million in Q1 2023[10] - Cinema revenue decreased to $41.271 million in Q1 2024 from $41.987 million in Q1 2023, a decline of 1.7%[10] - Real estate revenue was $3.781 million in Q1 2024, slightly down from $3.820 million in Q1 2023[10] - Net loss attributable to Reading International, Inc. was $13.228 million in Q1 2024, compared to a net loss of $11.111 million in Q1 2023, representing a 19.1% increase in losses[10] - Basic and diluted earnings per share for Q1 2024 were both $(0.59), compared to $(0.50) in Q1 2023[10] - Comprehensive loss for Q1 2024 was $(15.768) million, compared to $(12.403) million in Q1 2023, indicating a worsening in overall financial performance[12] - For the first quarter ended March 31, 2024, the company reported a net loss of $13.2 million, compared to a net loss of $11.1 million for the same period in 2023, resulting in a basic and diluted earnings per share of $(0.59) for both periods[37] Assets and Liabilities - Total assets decreased to $494.860 million as of March 31, 2024, down from $533.051 million as of December 31, 2023[9] - Total liabilities decreased to $477.132 million as of March 31, 2024, compared to $500.055 million as of December 31, 2023[9] - Cash and cash equivalents at the end of Q1 2024 were $7.501 million, down from $12.906 million at the end of Q4 2023[9] - As of March 31, 2024, the company had $41.9 million of debt due within twelve months and cash of $7.5 million, with negative working capital of $114.6 million, indicating liquidity challenges[27] - Total borrowings as of March 31, 2024, were $194,544,000, a decrease from $208,847,000 as of December 31, 2023, representing a decline of 6.8%[67] Debt Management - The company has extended the maturity dates of its Union Square financing facility ($47.1 million) to May 6, 2025, and its NAB facility ($65.2 million) to July 31, 2026, to manage its debt obligations[28] - The Bank of America Credit Facility was amended to extend the maturity date to August 18, 2025, and required a principal paydown of $275,000[68] - The Cinemas 1, 2, 3 Term Loan was extended to October 1, 2024, with an interest rate of 3.50% above monthly SOFR, with a floor of 7.50%[70] - The Union Square Financing loan facility was extended to May 6, 2025, with a variable interest rate of TERM SOFR plus 6.9%[71] Operational Challenges - The company experienced soft cinema revenues and increasing costs due to the COVID-19 pandemic, the 2023 Hollywood strikes, and rising operating costs, which have adversely impacted film revenues[24] - The company is addressing operational challenges by improving automated services, enhancing food and beverage offerings, and expanding alternative content programs[113] - The company plans to reduce fixed costs by closing non-performing cinemas and seeking occupancy relief from landlords due to potential impacts from the Hollywood strikes[114] - The company is optimistic about the cinema business despite challenges from COVID-19, the 2023 Hollywood strikes, and macroeconomic factors impacting profitability[110] Real Estate and Assets - The carrying value of the company's operating property as of March 31, 2024, was $253.8 million, down from $262.4 million at the end of 2023, reflecting ongoing depreciation[39] - The company classified approximately 26.6 acres of industrial land in Williamsport, Pennsylvania, as held for sale, with a current book value of $460,000[47] - The company is exploring monetization of certain real estate assets to support liquidity needs due to upcoming debt maturities[126] Cinema Operations - The company operated 61 cinemas with a total of 491 screens across the U.S., Australia, and New Zealand as of March 31, 2024[136] - The company has converted 110 out of 198 U.S. auditoriums to luxury recliner seating, enhancing customer experience[145] - The latest cinema additions include a new state-of-the-art cinema in Noosa, Queensland, Australia, authorized for lease negotiations[140] - The U.S. cinema circuit achieved 100% licensing for the sale of liquor, beer, and wine in 2023, with plans to expand these offerings in Australia and New Zealand[116] Revenue Trends - Total revenue for the quarter ended March 31, 2024, decreased by $0.8 million to $45.1 million compared to the same period in 2023, primarily due to lower cinema operations and decreased property rent revenue[163] - Cinema exhibition revenue for the quarter was $41.3 million, a decrease of $0.7 million from the prior year, attributed to lower food and beverage revenues and weakened foreign exchange rates[171] - The average ticket price per patron in the U.S. increased by 9.2% to $13.76 in Q1 2024 compared to $12.60 in Q1 2023[131] - Food and Beverage Spend Per Patron in the U.S. was $7.74, a slight increase of 0.3% from $7.72 in the previous year[129] Legal Matters - The company has accrued estimates of probable and estimable losses for legal proceedings, although it does not believe that exposure under applicable environmental laws is material[82][83] - The company is involved in various legal claims, but it does not expect these to have a material adverse effect on its business or financial position[84] - The company is currently involved in legal proceedings and has accrued estimates of probable losses for resolution[196] Stock and Compensation - The total stockholders' equity at March 31, 2024, was $17,728 thousand, down from $32,996 thousand at January 1, 2024, primarily due to a net loss of $(13,403) thousand[86] - For the three months ended March 31, 2024, stock-based compensation expense was recorded at $49,000, significantly higher than $9,000 in the same period of 2023[93] - The total number of Restricted Stock Units (RSUs) granted is 2,233,372, with 988,580 vested and 1,117,041 unvested as of March 31, 2024[95] Future Outlook - The company believes the global cinema industry will improve in the latter half of 2024 and 2025, supported by anticipated releases of major films and an increase in the number of movies from major studios[29] - The company expects to face challenges from reduced consumer demand due to inflationary pressures and the ongoing impact of the COVID-19 pandemic[205] - The company anticipates potential disruptions in film supply and marketing due to the 2023 Hollywood Strikes, affecting future attendance and revenue[206]

Core Viewpoint - Reading International, Inc. faced financial challenges in Q1 2024 due to the ongoing impact of the 2023 Hollywood Strikes, which disrupted movie releases and affected cinema revenues. However, the company managed to reduce its operating loss and demonstrated resilience through its real estate operations, which performed strongly despite the challenges in the cinema segment [2][3][5]. Cinema Business - Total cinema revenue for Q1 2024 was $41.3 million, a slight decrease of 2% compared to $41.9 million in Q1 2023 [6][10]. - The operating loss for the cinema segment improved by 10% to $4.2 million from $4.6 million in Q1 2023 [6][10]. - The U.S. cinema business outperformed the North American box office, gaining market share despite closing three theaters, attributed to strong performances from arthouse films [10]. - Upcoming film releases are expected to enhance cinema revenues, with a robust schedule for 2024 and 2025 featuring major titles from Disney and other studios [5][10]. Real Estate Business - The real estate segment generated $4.9 million in revenue for Q1 2024, a decrease of 3% from $5.1 million in Q1 2023 [6][10]. - The operating income from real estate was $0.9 million, down 12% from $1.0 million in Q1 2023, influenced by the monetization of two properties [6][10]. - The Australian real estate division achieved its highest quarterly operating income since Q2 2018, indicating strong performance in this segment [7]. Balance Sheet and Liquidity - As of March 31, 2024, cash and cash equivalents were $7.5 million, with total gross debt reduced to $195.7 million from $210.3 million at the end of 2023 [10][22]. - The company generated $11.3 million in net sales proceeds from the sale of real estate assets, which will be used to support operations and reduce debt [5][10]. - The total assets decreased to $494.9 million from $533.1 million as of December 31, 2023, reflecting the impact of asset sales [10][22].

Reading International, Inc. (NASDAQ:RDI) Q4 2023 Earnings Conference Call April 2, 2024 5:00 PM ET Company Participants Andrzej Matyczynski - EVP, Global Operations Ellen Cotter - Vice Chair, CEO & President Gilbert Avanes - EVP, CFO & Treasurer Conference Call Participants Andrzej Matyczynski Thank you for joining Reading International’s Earnings Call to discuss our 2023 Fourth Quarter and Full Year Results. My name is Andrzej Matyczynski, and I’m Reading’s Executive Vice President of Global Operations. Wi ...

Part I [Our Business](index=4&type=section&id=Item%201%20%E2%80%93%20Our%20Business) Reading International operates cinema exhibition and real estate segments across the U.S., Australia, and New Zealand, managing liquidity challenges through asset sales and strategic initiatives - The company operates in two segments: Theatrical Motion Picture Exhibition (**61 cinemas**) and Real Estate, which includes development and rental of retail, commercial, and live theatre assets[21](index=21&type=chunk) - Operations were materially disrupted in 2023 by the Hollywood strikes and rising interest rates, which increased interest expense by **$1.6 million** in 2023 despite a **$26.6 million** debt reduction over two years[21](index=21&type=chunk)[22](index=22&type=chunk) - To address liquidity challenges, the company monetized seven non-core assets from 2021 through Q1 2024, generating **$156.1 million** in net cash, used to pay down **$75.6 million** in debt and fund **$33.9 million** in capital improvements[27](index=27&type=chunk)[29](index=29&type=chunk) - Total revenues have been recovering post-pandemic, reaching **$222.7 million** in 2023, up from **$203.1 million** in 2022, but still below the pre-pandemic level of **$276.8 million** in 2019[31](index=31&type=chunk) [Cinema Exhibition](index=11&type=section&id=Cinema%20Exhibition) The company operates 61 cinemas globally, with revenue primarily from box office and F&B, competing through premium amenities and enhanced offerings Cinema Locations and Screens by Country (as of Dec 31, 2023) | Country | Location Count | Screen Count | Leased | Owned | | :--- | :--- | :--- | :--- | :--- | | United States | 20 | 198 | 19 | 1 | | Australia | 30 | 226 | 26 | 4 | | New Zealand | 11 | 67 | 7 | 4 | | **GRAND TOTAL** | **61** | **491** | **52** | **9** | - In 2023, cinema revenue was sourced primarily from box office receipts (**58%**), food & beverage sales (**34%**), and screen advertising/other revenue (**8%**)[50](index=50&type=chunk)[52](index=52&type=chunk)[53](index=53&type=chunk) - The company is the **15th** largest exhibitor in the U.S. (**1%** of box office), **4th** largest in Australia (**8%** of box office), and **3rd** largest in New Zealand (**9%** of box office)[61](index=61&type=chunk)[62](index=62&type=chunk)[63](index=63&type=chunk) - To enhance the customer experience, **195** auditoriums feature recliner seating, and **33** have premium large format screens (TITAN or IMAX)[48](index=48&type=chunk) [Real Estate](index=14&type=section&id=Real%20Estate) The real estate segment develops, owns, and leases retail, commercial, and live theatre assets, including key properties like 44 Union Square and Entertainment Themed Centers - Key assets include 44 Union Square (NYC), four ETCs in Australia/NZ (Newmarket Village, The Belmont Common, Cannon Park, Courtenay Central), and two live theatres in Manhattan (Minetta Lane, Orpheum)[44](index=44&type=chunk)[70](index=70&type=chunk) - The 44 Union Square redevelopment project in Manhattan secured a long-term lease with Petco for **42%** of its leasable area; Petco opened in June 2023[35](index=35&type=chunk)[222](index=222&type=chunk) - The Courtenay Central property in Wellington, NZ, remains a key long-term redevelopment project, with plans advancing despite seismic-related closures[29](index=29&type=chunk)[88](index=88&type=chunk) - The company owns the Reading Viaduct, approximately **6.5 acres** of land in downtown Philadelphia, which presents a substantial long-term development or monetization opportunity[72](index=72&type=chunk)[79](index=79&type=chunk)[83](index=83&type=chunk) [Risk Factors](index=23&type=section&id=Item%201A%20%E2%80%93%20Risk%20Factors) The company faces significant risks including film supply disruptions, intense competition, real estate market fluctuations, illiquid assets, currency risks, and substantial short-term debt - Cinema business is highly dependent on third-party film supply, which was disrupted by the 2023 Hollywood Strikes and is continually challenged by competition from in-home streaming services like Netflix, Disney+, and Amazon Prime[123](index=123&type=chunk)[124](index=124&type=chunk) - The company faces competition from larger exhibitors (AMC, Regal, Cinemark) who have greater access to films and capital, and from competitors who have used bankruptcy to reduce debt and rent[128](index=128&type=chunk)[113](index=113&type=chunk) - Real estate investments are illiquid and subject to risks including economic downturns, competition from e-commerce impacting retail tenants, and natural disasters in key locations like California and New Zealand[140](index=140&type=chunk)[143](index=143&type=chunk)[137](index=137&type=chunk) - The company is a "Controlled Company" as Margaret Cotter holds **69%** of the voting Class B Stock, giving her unilateral power to elect the board and determine the outcome of major corporate matters[163](index=163&type=chunk)[164](index=164&type=chunk)[168](index=168&type=chunk) [Unresolved Staff Comments](index=31&type=section&id=Item%201B%20%E2%80%93%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - None[170](index=170&type=chunk) [Cybersecurity](index=31&type=section&id=Item%201C%20%E2%80%93%20Cybersecurity) The company maintains a risk-based cybersecurity program with third-party support and reports no material cybersecurity incidents - The company has a cybersecurity program that includes policies, procedures, and various technical controls to mitigate risks[171](index=171&type=chunk) - Third-party cybersecurity firms are utilized for functions such as audits, ransomware assessments, and penetration tests[172](index=172&type=chunk) - The company reports that it has not experienced any cybersecurity incidents that it believes have had or are likely to have a material effect[174](index=174&type=chunk) [Properties](index=32&type=section&id=Item%202%20%E2%80%93%20Properties) The company owns approximately **662,000 square feet** of income-producing property and leases **1.97 million square feet** of cinema space, including key redevelopment projects Key Owned Operating Properties (as of Dec 31, 2023) | Property | Location | Net Book Value (in thousands) | | :--- | :--- | :--- | | 44 Union Square | Manhattan, NY | $97,107 | | Newmarket Village | Newmarket, QLD | $39,152 | | Cinemas 1,2,3 | Manhattan, NY | $24,146 | | Cannon Park | Thuringowa, QLD | $18,848 | | Culver City Office | Culver City, CA | $10,847 | - The company leases approximately **1,970,000 sq. ft.** of cinema space: **780,000** in the U.S., **977,000** in Australia, and **213,000** in New Zealand[182](index=182&type=chunk) - The company owns **201 acres** of legacy railroad property, primarily in Pennsylvania, including the Reading Viaduct in Philadelphia[187](index=187&type=chunk) [Legal Proceedings](index=34&type=section&id=Item%203%20%E2%80%93%20Legal%20Proceedings) The company is involved in ordinary course legal proceedings, accruing for estimable losses, but anticipates no material adverse effects on its financial position or liquidity - The company is involved in legal proceedings arising from the ordinary course of business and accrues for probable and estimable losses[453](index=453&type=chunk) - Management does not believe that any current litigation is reasonably likely to have a material adverse effect on the company's financial position or liquidity[455](index=455&type=chunk) [Mine Safety Disclosures](index=34&type=section&id=Item%204%20%E2%80%93%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not Applicable[189](index=189&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=34&type=section&id=Item%205%20%E2%80%93%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's Class A and B common stock trade on NASDAQ, with no history or current plans for cash dividends, and has underperformed market benchmarks - Class A (RDI) and Class B (RDIB) common stock are traded on the NASDAQ[191](index=191&type=chunk) - The company has never declared a cash dividend and has no current plans to do so[191](index=191&type=chunk) - The stock performance graph for the five years ending Dec 31, 2023, shows significant underperformance compared to the NASDAQ composite and industry peer groups[192](index=192&type=chunk)[194](index=194&type=chunk) [Selected Financial Data](index=36&type=section&id=Item%206%20%E2%80%93%20Selected%20Financial%20Data) This item is reserved in the report, with no selected financial data presented - This item is marked as [RESERVED][196](index=196&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=36&type=section&id=Item%207%20%E2%80%93%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) The MD&A details financial performance impacted by external factors, showing improved net loss in 2023, with liquidity managed through asset sales and debt refinancing to mitigate going concern risks [Results of Operations](index=40&type=section&id=Results%20of%20Operations) In 2023, the company reported a net loss of **$30.7 million**, an improvement from 2022, driven by positive operating income in both cinema and real estate segments Consolidated Results of Operations (in thousands) | Metric | 2023 | 2022 | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $222,744 | $203,115 | 10% | | Operating Income (Loss) | ($12,031) | ($28,483) | 58% | | Net Loss Attributable to RDI | ($30,673) | ($36,184) | 15% | | Basic Loss Per Share | ($1.38) | ($1.64) | 16% | - The Cinema segment's operating income improved from a loss of **$11.7 million** in 2022 to an income of **$0.1 million** in 2023, primarily due to a stronger U.S. film slate[231](index=231&type=chunk)[235](index=235&type=chunk) - The Real Estate segment's operating income increased to **$3.8 million** in 2023 from **$0.5 million** in 2022, mainly due to rental income from the new Petco lease at 44 Union Square[231](index=231&type=chunk)[244](index=244&type=chunk) [Liquidity and Capital Resources](index=48&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity is strained with a **$88.4 million** working capital deficit, managed through deferred capital expenditures, debt refinancing, and asset monetization to address going concern risks Key Liquidity Metrics (in thousands) | Metric | Dec 31, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Cash and cash equivalents | $12,906 | $29,947 | | Working capital (deficit) | ($88,373) | ($74,152) | | Net Cash used in Operating Activities | ($9,735) | ($26,351) | | Total debt (gross) | $210,300 | $215,633 | - The company has **$85.5 million** of debt maturing in the twelve months following the report's issuance, which requires refinancing to maintain liquidity[370](index=370&type=chunk) - Management has concluded that its plans to refinance debt and potentially monetize more assets are probable of being implemented, alleviating substantial doubt about the company's ability to continue as a going concern[373](index=373&type=chunk) [Critical Accounting Estimates](index=52&type=section&id=Critical%20Accounting%20Estimates) Critical accounting estimates involve significant judgment, including impairment of long-lived assets, valuation allowance for deferred tax assets, gift card breakage income, and loss contingencies for legal matters - Impairment of long-lived assets, goodwill, and intangibles is a critical estimate, evaluated using projected cash flows; no impairment was recorded in 2023, but a **$1.5 million** charge was taken in 2022[272](index=272&type=chunk) - The company maintains a significant valuation allowance against its deferred tax assets, totaling **$59.1 million** at year-end 2023, as it believes recovery is not more-likely-than-not[273](index=273&type=chunk) - Recognition of gift card breakage income and estimating loss contingencies for legal matters are also identified as critical accounting estimates requiring significant judgment[274](index=274&type=chunk)[277](index=277&type=chunk) [Quantitative and Qualitative Disclosure about Market Risk](index=53&type=section&id=Item%207A%20%E2%80%93%20Quantitative%20and%20Qualitative%20Disclosure%20about%20Market%20Risk) The company faces market risks from foreign currency fluctuations (AUD, NZD) and interest rate changes, with a **1%** rate change impacting interest expense by **$1.6 million** annually, and significant debt refinancing needs - Approximately **36%** of assets are in Australia and **9%** in New Zealand, exposing the company to foreign currency translation risk, which is not hedged[280](index=280&type=chunk) - A hypothetical **1%** change in short-term interest rates would increase or decrease annual interest expense on variable-rate debt by approximately **$1.6 million**[287](index=287&type=chunk) - The company faces additional risk from needing to refinance approximately **$174.6 million** of debt maturing over the next 24 months, likely at higher interest rates[269](index=269&type=chunk) [Financial Statements and Supplementary Data](index=55&type=section&id=Item%208%20%E2%80%93%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the audited consolidated financial statements, including balance sheets, statements of operations, and cash flows, along with the independent auditor's unqualified opinion [Consolidated Balance Sheets](index=58&type=section&id=Consolidated%20Balance%20Sheets) As of December 31, 2023, total assets were **$533.1 million**, total liabilities **$500.1 million**, and stockholders' equity **$33.0 million**, reflecting a decrease from 2022 due to net loss and currency adjustments Consolidated Balance Sheet Summary (in thousands) | Account | Dec 31, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | **Total Assets** | **$533,051** | **$587,055** | | Cash and cash equivalents | $12,906 | $29,947 | | Operating properties, net | $262,417 | $286,952 | | **Total Liabilities** | **$500,055** | **$523,776** | | Debt (current & long-term) | $181,089 | $185,967 | | Operating lease liabilities | $203,945 | $224,008 | | **Total Stockholders' Equity** | **$32,996** | **$63,279** | [Consolidated Statements of Operations](index=59&type=section&id=Consolidated%20Statements%20of%20Operations) In 2023, total revenues were **$222.7 million**, leading to an operating loss of **$12.0 million** and a net loss of **$30.7 million**, an improvement from the prior year Consolidated Statement of Operations Summary (in thousands) | Metric | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | | Total Revenues | $222,744 | $203,115 | $139,060 | | Operating Loss | ($12,031) | ($28,483) | ($41,793) | | Net Loss/Income Attributable to RDI | ($30,673) | ($36,184) | $31,921 | | Basic EPS | ($1.38) | ($1.64) | $1.46 | [Consolidated Statements of Cash Flows](index=62&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) In 2023, net cash used in operating activities improved to **$9.7 million**, with overall cash and cash equivalents decreasing by **$19.5 million** due to investing and financing activities Consolidated Cash Flow Summary (in thousands) | Activity | 2023 | 2022 | | :--- | :--- | :--- | | Net cash used in operating activities | ($9,735) | ($26,351) | | Net cash used in investing activities | ($2,699) | ($9,486) | | Net cash used in financing activities | ($6,667) | ($16,557) | | **Net decrease in cash** | **($19,538)** | **($53,592)** | [Note 5 – Real Estate Transactions](index=74&type=section&id=Note%205%20%E2%80%93%20Real%20Estate%20Transactions) The company actively monetized real estate assets, including significant sales in 2021 and the **$10.0 million** sale of the Culver City office building in early 2024, to support operations - The company has been monetizing non-core real estate assets to generate cash for operations and debt repayment amid challenging market conditions[380](index=380&type=chunk) - In 2021, major sales included the Auburn/Redyard ETC for **$69.6 million** and Manukau, NZ land for **$56.1 million**, generating significant gains[382](index=382&type=chunk)[383](index=383&type=chunk) - The Culver City administrative building, classified as held for sale at year-end, was sold on February 23, 2024, for **$10.0 million**, resulting in a book loss of **$0.7 million** to be recorded in 2024[391](index=391&type=chunk)[392](index=392&type=chunk) [Controls and Procedures](index=101&type=section&id=Item%209A%20%E2%80%93%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls over financial reporting during the fourth quarter of 2023 - Management concluded that the company's disclosure controls and procedures were effective as of the end of the reporting period[498](index=498&type=chunk) - There were no material changes to internal controls over financial reporting during the fourth quarter of 2023[499](index=499&type=chunk) Part III Information for Part III, covering Items 10-14, is incorporated by reference from the company's definitive Proxy Statement for its 2024 Annual Meeting of Stockholders [Items 10, 11, 12, 13 and 14](index=102&type=section&id=Items%2010%2C%2011%2C%2012%2C%2013%20and%2014) Information for these items is incorporated by reference from the forthcoming 2024 Proxy Statement - Information required by Items 10, 11, 12, 13, and 14 is incorporated by reference from the company's definitive Proxy Statement for its 2024 Annual Meeting of Stockholders[504](index=504&type=chunk) Part IV [Exhibits, Financial Statement Schedules](index=103&type=section&id=Item%2015%20%E2%80%93%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists all financial statements, schedules, and exhibits filed with the Form 10-K, including consolidated financial statements, debt agreements, and SOX certifications - This section contains the list of all financial statements, schedules, and exhibits filed with the annual report[507](index=507&type=chunk) - Key exhibits include debt agreements with major lenders like Bank of America and National Australia Bank, stock incentive plans, and certifications required by the Sarbanes-Oxley Act[510](index=510&type=chunk)[511](index=511&type=chunk)[512](index=512&type=chunk)

Financial Data and Key Metrics Changes - The company's Q3 2023 total revenue reached $66.6 million, a 30% increase compared to Q3 2022, marking the highest revenue since Q4 2019 [12][51] - Adjusted EBITDA for Q3 2023 was $6.1 million, reflecting a 59% increase from the same quarter last year [8][55] - The net loss attributable to Reading International decreased to $4.4 million, down by $0.8 million compared to Q3 2022, with a basic loss per share of $0.20 [52][81] Business Line Data and Key Metrics Changes - Global cinema revenue for Q3 2023 was $62.7 million, a 30% increase from Q3 2022, and represented the highest third quarter since Q4 2019 [13][40] - Real estate revenue for Q3 2023 was $5.1 million, a 24% increase year-over-year, with operating income rising over 700% to $900,000 [7][72] - US cinema operating income increased by $4.3 million to $300,000, with theater-level cash flow nearly 200% ahead of the same quarter last year [23][37] Market Data and Key Metrics Changes - The Australian cinema revenue was $24.2 million, a 21% increase compared to Q3 2022, marking the best third quarter since Q3 2019 [43] - New Zealand cinema revenues increased by 16% to $4.3 million in Q3 2023 [43] - The occupancy rate for third-party tenants in the real estate portfolio reached 97% [45] Company Strategy and Development Direction - The company aims to monetize built-in gains in real estate assets to ensure long-term viability [16] - Focus on reducing fixed expenses by renegotiating leases and closing unprofitable cinemas [42] - Continued investment in cinema management and operational performance to drive profitability [19][37] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the cinema industry's recovery, citing strong box office performances and a favorable movie slate [5][37] - Acknowledgment of potential headwinds from Hollywood strikes affecting future box office performance [15][22] - The company is actively pursuing asset sales to improve liquidity and address debt obligations [92] Other Important Information - The company closed two cinemas in Hawaii and another in California, focusing on underperforming locations [25] - The average ticket price in the US reached $12.81, the highest for a third quarter [23] - The company has extended its revolving corporate market loan facility to July 31, 2025, to maintain liquidity [58] Q&A Session Summary Question: Update on assets in Wellington, New Zealand - The company remains committed to redeveloping properties in Wellington, including Courtenay Central, which has been closed since January 2019 [61][89] Question: Can the company effectuate asset sales to address debt? - The company has extended loans and is confident that 2023 will end positively, improving market conditions [64][92] Question: Additional underperforming theaters for closure? - No additional closures have been made in Australia or New Zealand, but reviews are ongoing [65] Question: Status of the Culver City and Williamsport properties? - The Culver City property is expected to be sold in Q1 2024, while offers for Williamsport do not reflect fair value [98] Question: Plans for Minetta Lane and Orpheum Theater sites? - Future sales or redevelopment of these properties may be considered, but current market conditions do not favor such actions [101]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________________________________________ FORM 10-Q (Mark One) þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: September 30, 2023 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________ Commission file number 1-8625 READING INTERNATIONAL, INC. (Exact name of ...

Financial Performance - Total revenue for Q2 2023 was $65,055,000, a slight increase from $64,511,000 in Q2 2022, with cinema revenue at $61,056,000 and real estate revenue at $3,999,000[10] - Operating income for Q2 2023 was $1,789,000, compared to an operating loss of $1,572,000 in Q2 2022[10] - Net loss for Q2 2023 was $2,861,000, compared to a net loss of $2,443,000 in Q2 2022, resulting in a basic and diluted loss per share of $0.12[10] - Comprehensive loss for Q2 2023 was $3,602,000, compared to a comprehensive loss of $11,662,000 in Q2 2022[12] - Total revenue for the quarter ended June 30, 2023, increased by 1% to $65.1 million compared to the same period in 2022, driven by higher revenues from U.S. cinemas and rent income from the 44 Union Square property[159] - For the six months ended June 30, 2023, total revenue rose by 6% to $110.9 million, attributed to improved cinema performances and rent income from the 44 Union Square property[160] Assets and Liabilities - Total assets decreased to $552,242,000 as of June 30, 2023, down from $587,055,000 at the end of 2022[9] - Total liabilities decreased to $504,676,000 as of June 30, 2023, compared to $523,776,000 at the end of 2022[9] - Cash and cash equivalents decreased to $15,511,000 as of June 30, 2023, down from $29,947,000 at the end of 2022[9] - The company’s retained earnings deficit increased to $(62,705,000) as of June 30, 2023, compared to $(48,816,000) at the end of 2022[9] - The company reported a decrease in total current liabilities to $128,203,000 as of June 30, 2023, from $121,664,000 at the end of 2022[9] Cash Flow and Operating Activities - Net cash used in operating activities for the six months ended June 30, 2023, was $8,808,000, an improvement from $17,557,000 in the same period of 2022[14] - Cash used in operating activities for the six months ended June 30, 2023, decreased by $8.7 million to $8.8 million, reflecting improved cinema performance and rental income recognition[191] - Cash used in investing activities for the same period was $3.4 million, a slight decrease from $3.7 million in the prior year[192] Debt and Financing - The company has $48.5 million of debt maturing within the next twelve months, with $22.2 million due on October 3, 2023[29] - Total borrowings as of June 30, 2023, were $222,649,000, with a net balance of $213,804,000 after deferred financing costs[61] - The debt-to-equity ratio increased to 4.49 as of June 30, 2023, from 3.41 in 2022[196] - The company has contractual obligations totaling $520.1 million as of June 30, 2023, including debt and operating leases[196] Cinema Operations - Cinema exhibition revenue for Q2 2023 was $61.056 million, a decrease of 1.15% from $61.770 million in Q2 2022[17] - The global cinema segment reported an operating income of $4.474 million, the highest since Q4 2019, driven by successful films like "Barbie" and "Oppenheimer" in July 2023[23] - The second quarter of 2023 saw a strong film slate with significant contributions from franchise films and original releases, indicating a recovery in cinema attendance[125] - As of June 30, 2023, the company operates 62 cinemas with a total of 508 screens across the U.S., Australia, and New Zealand[136] - The cinema industry is expected to benefit from a compelling film slate for the remainder of the year, subject to the impact of Hollywood strikes[121] Real Estate Operations - Real estate revenue increased by 29.4% to $5.217 million in Q2 2023 from $4.032 million in Q2 2022[17] - The company classified its Culver City administrative building as held for sale with a book value of $11.2 million, expecting to complete the sale within 12 months[45] - Real estate revenue for Q2 2023 increased by $1.2 million to $5.2 million, driven by rental income from the 44 Union Square property[179] - For the six months ended June 30, 2023, real estate revenue rose by $2.1 million to $10.3 million, attributed to the same rental income source[180] Operating Expenses - Total operating expenses for the quarter increased by 1% to $53.5 million, with cinema exhibition expenses slightly rising and real estate expenses decreasing by 5%[158] - Operating expenses for the quarter ended June 30, 2023, increased by $0.5 million to $52.6 million compared to the same quarter in the prior year[175] - Depreciation, amortization, impairment, and general and administrative expenses for the quarter ended June 30, 2023, decreased by $2.3 million to $4.0 million compared to the same quarter in the prior year[176] Stock and Equity - Total stockholders' equity at June 30, 2023, was $47,566,000, down from $63,279,000 at January 1, 2023, reflecting a decrease of approximately 25%[92] - The company has repurchased 1,792,819 shares of Class A Common Stock at an average price of $13.39 per share, with a remaining authorized repurchase amount of $26.0 million[106] - The total outstanding Restricted Stock Units (RSUs) as of June 30, 2023, was 2,233,372, with 896,139 vested, 1,240,292 unvested, and 96,941 forfeited[103] Legal and Regulatory Matters - The company is involved in legal proceedings and has accrued estimates for probable losses related to these claims[198] - General Distributors Limited arbitration settled with no payment, terminating the Agreement to Lease and waiving all claims[89] Market Conditions and Challenges - The company faces macroeconomic challenges, including increased interest rates and inflation, impacting its financial strategies[186] - The ongoing Hollywood strikes may impact future movie releases, affecting the cinema segment's performance[24] - The global cinema business continues to face profitability challenges compared to pre-pandemic levels due to factors such as inflationary pressures and increased operating expenses[118]