Financial Performance - Total Revenues for Q3 2025 were $52.2 million, a decrease of 13% from $60.1 million in Q3 2024[5] - Positive EBITDA of $3.6 million improved by 26% compared to $2.8 million in Q3 2024, marking the fifth consecutive quarter of positive EBITDA[5] - Basic Loss per Share improved by 42% to $0.18 from $0.31 in Q3 2024, representing the best third quarter result since Q3 2019[5] - Total Revenues for the first nine months of 2025 increased slightly by 1% to $152.7 million compared to $152.0 million for the same period in 2024[5] - Operating Loss for the first nine months of 2025 improved by 72% to $4.3 million from $15.6 million in the same period of 2024[5] - Operating loss for Q3 2025 was $329,000, compared to a loss of $343,000 in Q3 2024[22] - Net loss attributable to Reading International, Inc. for Q3 2025 was $4,157,000, compared to a net loss of $7,028,000 in Q3 2024[26] - Adjusted EBITDA for Q3 2025 was $3,572,000, an increase from $2,843,000 in Q3 2024[26] - The company reported a loss before income taxes of $3,986,000 in Q3 2025, an improvement from a loss of $6,439,000 in Q3 2024[27] Revenue Breakdown - The cinema revenue for Q3 2025 was $48.6 million, a decrease of 14% compared to Q3 2024, attributed to a less appealing movie slate and a 7.3% reduction in U.S. cinema screen count[7] - U.S. Real Estate Revenues increased by 35% to $2.0 million in Q3 2025, driven by improved performance of Live Theatre assets in NYC[10] - Cinema revenue decreased by 14% to $48,555,000 in Q3 2025 from $56,357,000 in Q3 2024, while real estate revenue decreased by 7% to $4,567,000[24] - The company reported a 35% increase in real estate revenue in the U.S. for Q3 2025 compared to Q3 2024[24] Debt and Assets - Total gross debt decreased by 14.8% to $172.6 million, a reduction of $30.1 million from December 31, 2024[9] - Total current assets decreased to $18,808,000 as of September 30, 2025, down from $57,042,000 at December 31, 2024[23] - Total liabilities decreased to $448,198,000 as of September 30, 2025, compared to $475,801,000 at December 31, 2024[23] Segment Performance - The total segment operating income for Q3 2025 was $3,143,000, a decrease of 13% from $3,609,000 in Q3 2024[24] - Total segment operating income for Q3 2025 was $3,143,000, a decrease of 12.9% from $3,609,000 in Q3 2024[27] - For the nine months ended September 30, 2025, total segment operating income was $7,193,000, compared to a loss of $3,329,000 in the same period of 2024[27] Corporate Expenses and Earnings - Unallocated corporate expenses included a depreciation and amortization expense of $75,000 in Q3 2025, down from $106,000 in Q3 2024[27] - Interest expense, net for Q3 2025 was $4,174,000, a decrease of 20.4% from $5,245,000 in Q3 2024[27] - Equity earnings from unconsolidated joint ventures increased to $121,000 in Q3 2025, compared to $71,000 in Q3 2024[27] Future Outlook - The company expects a strong rebound in Q4 2025, supported by high presales for upcoming films and a promising holiday movie lineup[6] EBITDA Insights - Adjusted EBITDA is used to evaluate the company's performance, excluding certain non-recurring items[34] - The company emphasizes that EBITDA is a widely accepted measure in the cinema exhibition and real estate industries, aiding in performance comparison[31] - Legal expenses related to extraordinary litigation are adjusted in the calculation of Adjusted EBITDA[34] - The company aims to provide insights into operational performance separate from non-operational factors affecting net income[30]

Financial Performance - Total revenue for Q3 2025 was $52.17 million, a decrease of 13.5% compared to $60.09 million in Q3 2024[10] - Cinema revenue decreased to $48.56 million in Q3 2025 from $56.36 million in Q3 2024, representing a decline of 13.5%[10] - Net loss for Q3 2025 was $4.31 million, an improvement from a net loss of $7.14 million in Q3 2024[10] - The company reported a comprehensive loss of $4.92 million for Q3 2025, compared to a comprehensive loss of $5.64 million in Q3 2024[12] - Basic earnings per share for Q3 2025 were $(0.18), an improvement from $(0.31) in Q3 2024[10] - The company reported a net loss attributable to Reading International, Inc. of $4,157,000 for the quarter ended September 30, 2025, compared to a net loss of $7,028,000 for the same quarter in 2024[46] - Net loss attributable to Reading International, Inc. for the nine months improved by 65%, from a loss of $33.1 million to a loss of $11.6 million[186] Assets and Liabilities - Total assets decreased to $435.19 million as of September 30, 2025, down from $471.01 million at the end of 2024, a reduction of 7.6%[9] - Current liabilities decreased to $111.49 million from $161.63 million, a decline of 30.9%[9] - Total liabilities decreased to $448.20 million as of September 30, 2025, down from $475.80 million at the end of 2024, a reduction of 5.8%[9] - Cash and cash equivalents at the end of Q3 2025 were $8.09 million, down from $12.35 million at the end of 2024, a decrease of 34.5%[9] - The company has $16.5 million of debt due in twelve months, cash of $10.5 million, and negative working capital of $92.7 million[17] - Total borrowings decreased to $171.61 million as of September 30, 2025, down from $201.83 million as of December 31, 2024, representing a reduction of approximately 15%[77] Revenue Segments - The cinema exhibition segment's revenue is generated from ticket sales, food and beverage, and other ancillary sales, while expenses include film rent and wages[32] - The real estate segment earns revenue through leasing space to third-party tenants, with expenses incurred from property maintenance and utilities[34] - Total segment revenue for the quarter ended September 30, 2025, was $53,122,000, a decrease of 11.5% from $61,255,000 in the same quarter of 2024[37] - Total revenue for the nine months ended September 30, 2025, was $155,805,000, an increase of 0.3% from $155,414,000 in the same period of 2024[37] - The company reported a total of $141,740,000 in revenue for the nine months ended September 30, 2025, compared to $140,570,000 in the same period of 2024, indicating a slight growth[37] Operating Income and Expenses - Operating income for the nine months ended September 30, 2025, was a loss of $4.33 million, compared to a loss of $15.56 million for the same period in 2024[10] - Operating income for the cinema segment was $1,756,000 for the quarter ended September 30, 2025, compared to $2,213,000 in the same quarter of 2024, reflecting a decline of 20.6%[39] - Total operating expenses for the quarter ended September 30, 2025, were $49,979,000, a decrease of 13.1% from $57,646,000 in the same quarter of 2024[37] - Operating income for the nine months ended September 30, 2025, was $7,193,000, compared to a loss of $3,329,000 in the same period of 2024[37] - The cinema segment's total operating expenses for the nine months ended September 30, 2025, were $148,612,000, a decrease of 6.4% from $158,743,000 in the same period of 2024[37] Debt and Financing - The company has extended the maturity dates of several loans, including a $20.4 million Valley National debt extended to October 1, 2026[19] - The company has extended the maturity of its loan facility with Emerald Creek Capital to May 6, 2025, with provisions for principal payments of $500,000[83] - The company entered into an Interest Rate Hedging Agreement on AU$50.0 million of the Corporate Loan Facility, with a floor of 4.18% and a cap of 4.78%[86] - The Bank of America Credit Facility was amended to extend the maturity date to May 18, 2026, with a current balance of $6.70 million[79] Real Estate Operations - The company has developed a plan to address going concern uncertainty, informed by current liquidity positions and marketability of real estate properties[17] - The company has classified the Newberry Yard property as held for sale, continuing sales efforts as of September 30, 2025[58] - The company sold its Wellington properties, including the Courtenay Central building, for $21.5 million (NZ$38.0 million) and has an agreement to lease the cinema component post-redevelopment[174] - The company sold its Cannon Park ETC in Townsville, Queensland, for $20.7 million (AU$32.0 million) and retained a long-term lease for the cinema component[173] Market Conditions and Future Outlook - The company believes that the recovery of the global cinema industry will improve patronage and operating revenue levels, although attendance levels remain uncertain[18] - The cinema segment experienced a decline in box office performance in Q3 2025 compared to Q3 2024, attributed to a weaker film slate and broader industry challenges[128] - The company anticipates a strong fourth quarter with major releases such as The Running Man and Zootopia 2, which are expected to drive significant box office results[134] - Year-to-date attendance for the first nine months of 2025 was down compared to the same period in 2024, indicating ongoing challenges in cinema attendance levels[131] Operational Efficiency - The company is focusing on operational efficiency and strategic initiatives to improve performance, with ongoing efforts to enhance the guest experience through expanded food and beverage programs[130] - The company has successfully negotiated rent abatements and revised rental terms to mitigate rising fixed costs associated with cinema leases[132] - Operating expenses for the nine months ended September 30, 2025, totaled $129.3 million, a decrease of $7.1 million due to operational efficiency and cinema closures[196] Stock and Compensation - The total stockholders' equity at September 30, 2025, was $159,087,000, with a retained earnings deficit of $126,370,000[105] - The company recorded a compensation expense of $197,000 for the quarter ended September 30, 2025, a decrease from $302,000 in the same quarter of 2024, representing a reduction of approximately 34.8%[110] - The number of outstanding stock options increased to 3,795,297 as of September 30, 2025, from 1,707,412 at the end of 2024, reflecting a growth of approximately 121.5%[111]

[Executive Summary & Key Financial Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Key%20Financial%20Highlights) This section provides an overview of Reading International's financial performance for Q2 and the first six months of 2025, highlighting significant improvements and the impact of currency fluctuations [Second Quarter 2025 Performance](index=1&type=section&id=Second%20Quarter%202025%20Performance) Reading International reported significantly improved financial results for Q2 2025, with total revenues increasing by 29% and operating income turning positive from a loss in the prior year, reflecting strong performance across both cinema and real estate divisions Second Quarter 2025 Financial Performance | Metric | Q2 2025 (USD millions) | Q2 2024 (USD millions) | Change (%) | | :-------------------- | :--------------------- | :--------------------- | :--------- | | Total Revenues | $60.4 | $46.8 | +29% | | Operating Income | $2.9 | ($7.7) | +138% | | EBITDA | $6.3 | ($3.6) | +276% | | Basic loss per share | ($0.12) | ($0.57) | +79% | | Net loss attributable | ($2.7) | ($12.8) | +79% | [Six Months 2025 Performance](index=1&type=section&id=Six%20Months%202025%20Performance) For the first six months of 2025, the company also demonstrated substantial improvements, with total revenues growing by 9% and operating loss, EBITDA, and net loss all showing significant positive changes compared to the same period in 2024 Six Months 2025 Financial Performance | Metric | Six Months 2025 (USD millions) | Six Months 2024 (USD millions) | Change (%) | | :-------------------- | :----------------------------- | :----------------------------- | :--------- | | Total Revenues | $100.5 | $91.9 | +9% | | Operating Loss | ($4.0) | ($15.2) | +74% | | EBITDA | $9.2 | ($7.5) | +222% | | Basic loss per share | ($0.33) | ($1.16) | +73% | | Net loss attributable | ($7.4) | ($26.0) | +71% | [Currency Exchange Rate Impact](index=1&type=section&id=Currency%20Exchange%20Rate%20Impact) The weakening of the Australian and New Zealand dollars against the U.S. dollar negatively impacted reported operating results, as these regions contribute 47% of total revenues - Australian and New Zealand dollar average exchange rates weakened against the U.S. dollar by **2.7% and 1.9% respectively in Q2 2025** compared to Q2 2024[4](index=4&type=chunk) - Average six months 2025 exchange rates weakened against the U.S. dollar by **3.6% and 4.6% respectively** compared to the same period of 2024[4](index=4&type=chunk) - **47% of Total Revenues** are generated by Australian and New Zealand businesses, making currency weakness impactful on U.S. reported operating results[4](index=4&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) This section provides insights from the CEO on Q2 2025 performance, strategic priorities, and debt reduction efforts, highlighting strong box office success and real estate asset monetization [CEO's Overview of Q2 2025](index=1&type=section&id=CEO's%20Overview%20of%20Q2%202025) CEO Ellen Cotter expressed confidence in the company's long-term future, highlighting record box office success from major movie releases in Q2 and July 2025, which reinforces the appeal of the theatrical experience and anticipates a robust film lineup for the remainder of 2025 - Improved performance in Q2 2025 underscores continued confidence in the company's long-term future[5](index=5&type=chunk) - Celebrated record box office success of Warner Bros movies (A Minecraft Movie, Sinners) and Disney's Lilo & Stitch in Q2 2025[5](index=5&type=chunk) - Anticipates a robust film line-up for the remainder of 2025, including TRON: Ares, Wicked: For Good, Zootopia 2, and Avatar: Fire and Ash[5](index=5&type=chunk) [Strategic Priorities and Debt Reduction](index=3&type=section&id=Strategic%20Priorities%20and%20Debt%20Reduction) The Real Estate division delivered strong results, with operating income increasing 56% quarter-over-quarter and 67% year-over-year, driven by the sale of Cannon Park property for AU$32.0 million, which contributed to a $32.1 million reduction in gross debt - Global Real Estate division's Operating Income increased **56% quarter-over-quarter and 67% year-over-year**[7](index=7&type=chunk) - Closed on the sale of Cannon Park, Australia real property assets for **AU$32.0 million**, with funds used to decrease overall debt position[7](index=7&type=chunk) - Company's gross debt reduced by **$32.1 million** through monetization of two major property assets in Australia and New Zealand[7](index=7&type=chunk) [Business Segment Performance](index=3&type=section&id=Business%20Segment%20Performance) This section details the performance of the Cinema and Real Estate divisions, highlighting revenue growth, operating income improvements, and strategic operational adjustments [Cinema Business](index=3&type=section&id=Cinema%20Business) The global cinema division saw a 32% revenue increase to $56.8 million and a 218% operating income increase in Q2 2025, driven by strong box office performance and record-high average ticket prices, while also streamlining operations by closing an underperforming U.S. cinema Global Cinema Performance | Metric | Q2 2025 (USD millions) | Q2 2024 (USD millions) | Change (%) | | :-------------------- | :--------------------- | :--------------------- | :--------- | | Global Cinema Revenue | $56.8 | $42.9 | +32% | | Global Cinema Operating Income | $5.5 | ($4.6) | +218% | - Average ticket price (ATP) in Australia, New Zealand, and the U.S. achieved their **highest quarter ever or highest second quarter ever**[10](index=10&type=chunk) - Food & Beverage sales per person (SPP) set record highs for Australian (**$8.26**), New Zealand (**NZ$7.14**), and U.S. (**$9.13**) cinemas for Q2 2025[10](index=10&type=chunk) - Closed an additional underperforming U.S. cinema in April 2025, now operating **469 screens in 58 theatres globally**[10](index=10&type=chunk) [Real Estate Business](index=3&type=section&id=Real%20Estate%20Business) The global Real Estate business experienced a 7% revenue decrease to $4.7 million in Q2 2025, but operating income increased by 56% to $1.5 million, its best Q2 since 2018, supported by property monetizations and a 99% occupancy rate in Australia and New Zealand Global Real Estate Performance | Metric | Q2 2025 (USD millions) | Q2 2024 (USD millions) | Change (%) | | :-------------------- | :--------------------- | :--------------------- | :--------- | | Global Real Estate Revenue | $4.7 | $5.0 | -7% | | Global Real Estate Operating Income | $1.5 | $0.9 | +56% | - U.S. Real Estate Revenues increased **15% to $1.7 million** due to improved performance of Live Theatre assets in NYC[10](index=10&type=chunk) - Completed property monetizations including Culver City building (**$10.0 million in Q1 2024**), Wellington, NZ property (**NZ$38.0 million in Q1 2025**), and Cannon Park ETC, Australia (**AU$32.0 million in Q2 2025**)[10](index=10&type=chunk) - Australian and New Zealand property portfolio has **59 third-party tenants with a 99% occupancy rate** as of June 30, 2025[10](index=10&type=chunk) [Financial Position and Liquidity](index=4&type=section&id=Financial%20Position%20and%20Liquidity) This section reviews the company's balance sheet, highlighting cash position, total assets, and significant progress in debt management and loan extensions [Balance Sheet Overview](index=4&type=section&id=Balance%20Sheet%20Overview) As of June 30, 2025, the company's cash and cash equivalents stood at $9.1 million, while total assets had a book value of $438.1 million, a decrease from December 31, 2024 Balance Sheet Summary | Metric | June 30, 2025 (USD millions) | December 31, 2024 (USD millions) | | :-------------------- | :----------------------------- | :------------------------------- | | Cash and cash equivalents | $9.1 | $12.3 | | Total assets | $438.1 | $471.0 | [Debt Management and Loan Extensions](index=4&type=section&id=Debt%20Management%20and%20Loan%20Extensions) Total gross debt decreased by 14.4% (or $29.3 million) from December 31, 2024, primarily due to debt payoffs following property sales, with the company also successfully extending the maturity of several key loans - Total gross debt decreased by **14.4% (or $29.3 million) to $173.4 million** from December 31, 2024[11](index=11&type=chunk) - Paid off **NZ$18.8 million (USD equivalent of $10.7 million)** loan to Westpac and **$6.1 million** to Bank of America/Bank of Hawaii following Wellington property sale[11](index=11&type=chunk) - Paid off **AU$20.0 million (USD equivalent of $12.9 million)** bridging facility to NAB and an additional **AU$1.5 million (USD equivalent of $1.0 million)** on NAB Corporate Loan facility, plus **$1.5 million** on Bank of America/Bank of Hawaii loan, after Cannon Park property sale[11](index=11&type=chunk) - Extended maturity of loan on 44 Union Square to **November 6, 2026** (with option to May 6, 2027), Bank of America/Bank of Hawaii loan to **May 18, 2026**, and Live Theatre assets loan in NYC to **June 1, 2026**[11](index=11&type=chunk) [Conference Call and Webcast Information](index=5&type=section&id=Conference%20Call%20and%20Webcast%20Information) Reading International plans to post a pre-recorded conference call and audio webcast discussing Q2 2025 financial results on its corporate website by August 18, 2025, with a Q&A session to follow for questions submitted by August 15, 2025 - Pre-recorded conference call and audio webcast to be posted on the corporate website by **Monday, August 18, 2025**[12](index=12&type=chunk) - Features remarks from Ellen Cotter (President and CEO), Gilbert Avanes (EVP, CFO, Treasurer), and Andrzej Matyczynski (EVP - Global Operations)[12](index=12&type=chunk) - Questions for the Q&A session must be submitted to InvestorRelations@readingrdi.com by **August 15, 2025, 5:00 p.m. Eastern Time**[13](index=13&type=chunk) [About Reading International, Inc.](index=5&type=section&id=About%20Reading%20International%2C%20Inc.) Reading International, Inc. (NASDAQ: RDI) is an internationally diversified cinema and real estate company operating cinema brands and live theatres in the United States, Australia, and New Zealand, alongside significant retail and commercial real estate developments - Reading International, Inc. (NASDAQ: RDI) is an internationally diversified cinema and real estate company[14](index=14&type=chunk) - Operations and assets are located in the **United States, Australia, and New Zealand**[14](index=14&type=chunk) - Operates cinema brands including Reading Cinemas, Consolidated Theatres, and Angelika, and live theatres under Orpheum and Minetta Lane names[15](index=15&type=chunk) [Cautionary Note Regarding Forward-Looking Statements](index=6&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) This earnings release contains forward-looking statements regarding expected operating results, business strategy, future movie releases, asset monetization, and liquidity, which are subject to inherent uncertainties and risks, and the company undertakes no obligation to update these statements except as required by law - The release contains forward-looking statements regarding expected operating results, business structure, diversification strategy, upcoming movie releases, asset monetization, liquidity, and capital requirements[18](index=18&type=chunk) - Forward-looking statements are subject to inherent uncertainties, risks, and changes in circumstances, and actual results may vary[21](index=21&type=chunk) - The company undertakes no obligation to publicly update or revise any forward-looking statements, except as required by applicable law[20](index=20&type=chunk) [Consolidated Financial Statements](index=7&type=section&id=Consolidated%20Financial%20Statements) This section presents the company's unaudited consolidated financial statements, including statements of operations, balance sheets, and segment results, along with non-GAAP reconciliations, providing a detailed view of financial performance and position [Statements of Operations](index=7&type=section&id=Statements%20of%20Operations) The unaudited consolidated statements of operations show a significant improvement in net loss attributable to Reading International, Inc. for both the second quarter and six months ended June 30, 2025, compared to the prior year, driven by increased revenues and improved operating income, particularly in the cinema segment Statements of Operations Summary | Metric (USD thousands) | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--------------------- | :------ | :------ | :-------------- | :-------------- | | Total revenue | 60,378 | 46,809 | 100,547 | 91,861 | | Operating income (loss)| 2,891 | (7,692) | (4,001) | (15,222) | | 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) | [Balance Sheets](index=8&type=section&id=Balance%20Sheets) The consolidated balance sheets as of June 30, 2025, show a decrease in total assets and total liabilities compared to December 31, 2024, primarily due to reductions in current assets (including land and property held for sale) and current debt, reflecting strategic asset monetizations and debt repayments Balance Sheets Summary | Metric (USD thousands) | June 30, 2025 | December 31, 2024 | | :--------------------- | :------------ | :---------------- | | Cash and cash equivalents | 9,073 | 12,347 | | Total current assets | 21,271 | 57,042 | | Total assets | 438,075 | 471,011 | | Total current liabilities | 130,451 | 161,626 | | Total liabilities | 446,503 | 475,801 | | Total stockholders' equity | (8,428) | (4,790) | [Segment Results](index=9&type=section&id=Segment%20Results) Segment results highlight strong revenue growth and a significant turnaround in operating income for the Cinema division across all regions in Q2 2025, while the Real Estate segment saw a slight revenue decrease but a substantial increase in operating income, reflecting improved operational efficiency and strategic asset management Segment Revenue | Segment Revenue (USD thousands) | Q2 2025 | Q2 2024 | % Change | Six Months 2025 | Six Months 2024 | % Change | | :------------------------------ | :------ | :------ | :------- | :-------------- | :-------------- | :------- | | Cinema - United States | 30,258 | 21,480 | 41% | 48,553 | 42,785 | 13% | | Cinema - Australia | 22,909 | 18,543 | 24% | 38,591 | 35,867 | 8% | | Cinema - New Zealand | 3,615 | 2,918 | 24% | 6,042 | 5,561 | 9% | | Real Estate - United States | 1,700 | 1,483 | 15% | 3,287 | 2,967 | 11% | | Real Estate - Australia | 2,741 | 3,177 | (14)% | 5,756 | 6,261 | (8)% | | Real Estate - New Zealand | 212 | 353 | (40)% | 455 | 718 | (37)% | Segment Operating Income (Loss) | Segment Operating Income (Loss) (USD thousands) | Q2 2025 | Q2 2024 | % Change | Six Months 2025 | Six Months 2024 | % Change | | :---------------------------------------------- | :------ | :------ | :------- | :-------------- | :-------------- | :------- | | Cinema - United States | 2,292 | (4,426) | >100% | (855) | (7,868) | 89% | | Cinema - Australia | 2,920 | (87) | >100% | 1,944 | (582) | >100% | | Cinema - New Zealand | 241 | (96) | >100% | (110) | (325) | 66% | | Real Estate - United States | 89 | (204) | >100% | 231 | (573) | >100% | | Real Estate - Australia | 1,338 | 1,461 | (8)% | 2,882 | 2,921 | (1)% | | Real Estate - New Zealand | 52 | (311) | >100% | (39) | (511) | 92% | [Non-GAAP Reconciliations](index=10&type=section&id=Non-GAAP%20Reconciliations) The reconciliations show a positive EBITDA of $6.3 million for Q2 2025 and $9.2 million for the six months ended June 30, 2025, a significant improvement from prior year losses, with total segment operating income also turning positive for Q2 2025 and showing substantial year-to-date improvement EBITDA and Adjusted EBITDA Reconciliation | Metric (USD thousands) | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--------------------- | :------ | :------ | :-------------- | :-------------- | | Net Income (loss) attributable to Reading International, Inc. | (2,667) | (12,806)| (7,423) | (26,034) | | EBITDA | 6,292 | (3,574) | 9,182 | (7,535) | | Adjusted EBITDA | 6,292 | (3,574) | 9,182 | (7,535) | Segment Operating Income Reconciliation | Metric (USD thousands) | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--------------------- | :------ | :------ | :-------------- | :-------------- | | Segment operating income (loss) | 6,932 | (3,663) | 4,053 | (6,938) | | Income (loss) before income taxes | (1,579) | (13,157)| (6,998) | (26,783) | [Non-GAAP Financial Measures Explanation](index=12&type=section&id=Non-GAAP%20Financial%20Measures%20Explanation) This section clarifies the use of non-GAAP financial measures like Total Segment Operating Income (Loss), EBITDA, and Adjusted EBITDA, which provide additional insight into operational performance and financial value for industry comparison and creditworthiness, but should not be considered substitutes for GAAP measures as they exclude significant costs - Total segment operating income (loss), EBITDA, and Adjusted EBITDA are non-GAAP financial measures used to evaluate company performance[30](index=30&type=chunk) - These measures assist investors by separating operating results from non-operational factors and are commonly adopted by analysts and financial commentators in the cinema and real estate industries[32](index=32&type=chunk)[33](index=33&type=chunk) - Non-GAAP measures should not be considered in isolation or as substitutes for GAAP measures (e.g., net income, cash flows) as they exclude components like interest, taxes, depreciation, and amortization[34](index=34&type=chunk)[35](index=35&type=chunk)

[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)

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 revenue for the three months ended March 31, 2025, was $4,845,000, a decrease of 1.8% compared to $4,933,000 for the same period in 2024[40] - The company reported a net loss attributable to Reading International, Inc. of $4,752,000 for the three months ended March 31, 2025, compared to a net loss of $13,228,000 in the same period of 2024[46] - Basic and diluted earnings per share for Q1 2025 were both $(0.21), an improvement from $(0.59) in Q1 2024[46] 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[71] - 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, indicating a significant increase in leverage compared to (42.32) in 2024[200] - Working capital deficit was reported at $108.7 million as of March 31, 2025, worsening from a deficit of $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 sold its Wellington property assets for NZ$38.0 million in January 2025, using proceeds to repay loans[192] 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 has monetized several property assets to improve liquidity, including the sale of its Courtenay Central cinema with a long-term leaseback agreement[161] - The company has paused real estate development projects to bolster liquidity, focusing on improvements to existing cinemas instead[136] - The company has entered into an agreement to lease a newly redeveloped 10-screen cinema in Wellington, New Zealand, following the sale of its properties in the region for NZ$38.0 million[168] Cinema Operations - The cinema exhibition segment generated $36.4 million in revenue for the three months ended March 31, 2025, down from $41.3 million in the same period in 2024[37] - The total operating expense for the cinema segment was $40.9 million for the three months ended March 31, 2025, compared to $45.4 million in the same period in 2024[37] - The company recorded a segment operating loss of $4.5 million in the cinema segment for the three months ended March 31, 2025, compared to a loss of $4.2 million in the same period in 2024[37] - The cinema business performance in Q1 2025 was weaker than anticipated, with notable films underperforming compared to industry expectations[121] - The cinema segment operating loss increased by $0.3 million to $4.5 million, attributed to decreased revenue from lower attendance[181] - The cinema segment is expected to benefit from a strong film lineup in 2025, including titles like Lilo & Stitch and Mission Impossible – The Final Reckoning[129] Cost Management and Efficiency - The company has been renegotiating leases to reduce occupancy costs or convert fixed rent to percentage rent, aligning interests with landlords[124] - The company reduced future insurance costs by approximately $1.3 million for the remainder of 2025 through renegotiated supplier contracts[125] - Total operating expenses decreased to $1,955,000 for the three months ended March 31, 2025, down 12.5% from $2,235,000 in the prior year[40] - Depreciation, amortization, and general administrative expenses decreased by 28% to $1.3 million in Q1 2025, compared to $1.8 million in Q1 2024[185] Legal and Regulatory Matters - 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] - The company does not currently believe that its exposure under applicable environmental laws is material in amount, despite historical involvement in operations that may have environmental implications[93] Market Conditions and Future Outlook - Management believes that improvements in film releases will enhance patronage and operating revenue, although attendance levels remain uncertain[20] - The company is optimistic about the cinema industry's long-term prospects, citing upcoming high-quality film releases and strong audience attendance for select films[123]

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 a positive $3.4 million from a negative $2.2 million in Q4 2023[8] - Total revenues for 2024 were $210,527, a decrease of 5% from $222,744 in 2023[28] - Operating loss for 2024 was $14,033, compared to a loss of $12,031 in 2023[28] - Net loss attributable to Reading International, Inc. was $35,301 in 2024, compared to a loss of $30,673 in 2023[28] - Basic and diluted earnings per share for 2024 were both $(1.58), compared to $(1.38) in 2023[28] - Adjusted EBITDA for the year ended December 31, 2024, was $2,113, compared to $7,757 in 2023[32] Revenue Breakdown - Global cinema revenue for the full year 2024 decreased by 6.0% to $195.1 million compared to 2023[13] - Cinema revenues decreased by 6% to $195,130 in 2024 from $207,641 in 2023, while real estate revenues increased slightly by 2%[28] - Global Real Estate Division revenues increased by 1% to $20.0 million in 2024 from $19.9 million in 2023[12] Real Estate and Assets - The occupancy rate of the Australian and New Zealand real estate portfolio was 96%[10] - Cash and cash equivalents as of December 31, 2024, were $12.3 million, with total outstanding bank borrowings of $202.7 million[16] - The company sold its Wellington, New Zealand assets for NZ$38 million on January 31, 2025, and agreed to lease back the cinema component[10] Future Outlook - Anticipated future releases include titles like Disney's Lilo & Stitch and Mission Impossible: The Final Reckoning, which are expected to strengthen performance in 2025[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[36] - The company believes EBITDA is valuable for comparing its ability to generate cash against peers in the same industry[36] - Adjusted EBITDA is calculated by excluding certain external items, such as legal expenses related to extraordinary litigation[40] - The company acknowledges that EBITDA does not account for interest, taxes, depreciation, and amortization, which are real costs[39] - A substantial portion of funds depicted by EBITDA may be subject to contractual restrictions and may not be available for discretionary use[38] - The company emphasizes that EBITDA should not be considered in isolation or as a substitute for net income or cash flow data[37] - The exclusion of various components limits the usefulness of EBITDA when assessing financial performance[37] - The company adjusts EBITDA for items considered non-recurring, in accordance with SEC requirements[40] - Analysts and financial commentators typically value enterprises in the cinema exhibition and real estate sectors at various multiples of EBITDA[36] - The company monitors EBITDA to judge its performance against market expectations and creditworthiness[36]

Financial Data and Key Metrics Changes - Q4 2024 global total revenue reached $58.6 million, a 29% increase compared to Q4 2023, marking the best fourth quarter since Q4 2019 [9] - Q4 2024 global operating income was $1.5 million, up $8.5 million or 122% from a loss of $7 million in Q4 2023, representing the first positive operating income since Q4 2019 [9] - Q4 2024 adjusted EBITDA increased over 400% to $6.8 million from a negative $2.2 million in Q4 2023, the highest fourth quarter EBITDA since Q4 2019 [9] - For the full year 2024, total revenue was $210.5 million, a 5% decrease from 2023, with a global operating loss of $14 million, up 17% from the previous year [14][56] Business Line Data and Key Metrics Changes - Global cinema revenue in Q4 2024 was $54.6 million, a 30% increase from Q4 2023, representing just under 84% of pre-pandemic Q4 2019 levels [9] - Global real estate revenues in Q4 2024 were $5.2 million, a 14% increase over Q4 2023, with operating income rising 148% to $1.4 million [12][46] - The U.S. cinema revenue increased by 24% to $29.3 million in Q4 2024, the highest since Q4 2019, while the full-year U.S. cinema revenue decreased by 12% to $99.9 million [35][38] Market Data and Key Metrics Changes - Australian cinema revenue increased 37% to $21.4 million in Q4 2024, with operating income rising 254% to $1.7 million [41] - New Zealand cinema revenue increased 53% to $3.8 million in Q4 2024, with operating income increasing 228% to $504,000 [41] - The occupancy rate of the third-party tenant portfolio in Australia/New Zealand was 96% [12] Company Strategy and Development Direction - The company aims to reduce debt as a top priority for 2025 while planning upgrades for at least four theaters [74] - Management is assessing the global real estate portfolio to identify assets for sale to generate liquidity for debt repayment [16] - The focus remains on curating original series and programming compelling content to engage audiences and boost ticket sales [26] Management Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by the 2023 Hollywood strikes and the impact on the first part of 2024, but expressed optimism for the remainder of 2025 with an exciting film lineup [23] - The company expects the first quarter of 2025 to be disappointing compared to last year due to a softer film slate, but anticipates improvements later in the year [23] - Management highlighted the importance of recalibrating occupancy costs with landlords to reflect current attendance levels [34] Other Important Information - The company sold its Culver City office building for $10 million, which will reduce interest expenses [16] - The real estate division's operating income in Q4 2024 was the best since Q3 2019, driven by improved live theater operations and rent revenue [46][49] - The company is working on monetizing additional real estate assets, including properties in Wellington and Cannon Park [50][51] Q&A Session Summary Question: What are your capital allocation priorities for 2025? - The highest priority is to reduce debt while planning upgrades for theaters, subject to box office performance [74] Question: What are the recent underperforming theater closures and expected savings? - One U.S. cinema will close in April 2025, expected to save $500,000 to $1 million annually; another small theater in New Zealand closed with expected savings of $100,000 to $200,000 [76][77] Question: Is the Australian cinema development project in Noosa still on track? - The project is still in planning phases, with an expected opening pushed to 2027 [80] Question: Why did the company fail to engage with investors in 2024? - Discussions are underway to fulfill commitments for non-deal roadshows in 2025 and participation in a microcap virtual conference [82]

Financial Performance - Total Revenues for Q3 2024 were $60.1 million, a decrease of 9.8% compared to $66.6 million in Q3 2023[5] - Operating Loss for Q3 2024 was $0.2 million, compared to Operating Income of $1.0 million in Q3 2023[5] - Adjusted EBITDA for Q3 2024 was $2.9 million, down from $6.1 million in Q3 2023[5] - Total revenue for the quarter ended September 30, 2024, was $60,090,000, a decrease of 9.5% from $66,563,000 for the same period in 2023[25] - Total segment revenue decreased by 10% to $60,090,000 in Q3 2024 from $66,564,000 in Q3 2023[29] - Total revenue for the nine months ended September 2024 was $151,951,000, down 14% from $177,425,000 for the same period in 2023[29] Cinema Revenue - Global cinema revenue decreased by 10% to $56.4 million in Q3 2024, while global cinema operating income fell to $2.3 million from $4.4 million[10] - Cinema revenue for the quarter was $56,357,000, down 10.5% from $62,688,000 year-over-year[25] - Cinema revenue in the United States fell by 19% to $27,816,000 in Q3 2024 compared to $34,232,000 in Q3 2023[29] - Operating loss for the cinema segment in the United States was $861,000 in Q3 2024, compared to an operating income of $331,000 in Q3 2023[29] Net Income and Loss - Net loss attributable to Reading International, Inc. for the quarter was $6,916,000, compared to a loss of $4,400,000 in the prior year, representing a 57.0% increase in losses[25] - Net income attributable to Reading International, Inc. was a loss of $6,916,000 for Q3 2024, compared to a loss of $4,400,000 in Q3 2023[31] Earnings Per Share - Basic and diluted earnings per share for the quarter were both $(0.31), compared to $(0.20) in the same quarter of 2023[25] Assets and Liabilities - Total current assets increased to $59,046,000 as of September 30, 2024, from $38,710,000 at December 31, 2023, reflecting a 52.5% increase[27] - Total liabilities decreased to $491,080,000 as of September 30, 2024, from $500,055,000 at December 31, 2023, a reduction of 1.9%[27] - Cash and cash equivalents as of September 30, 2024, were $10.1 million, with total gross debt at $215.0 million[12] - Cash and cash equivalents decreased to $10,083,000 as of September 30, 2024, from $12,906,000 at December 31, 2023, a decline of 21.8%[27] Operating Income and Expenses - Operating income for the quarter was a loss of $246,000, compared to an operating income of $1,019,000 in the same quarter of 2023[25] - Interest expense for the quarter was $5,229,000, slightly up from $5,072,000 in the prior year[25] - The company reported a significant increase in general and administrative expenses, totaling $3,845,000 in Q3 2024 compared to $4,124,000 in Q3 2023[32] Real Estate Performance - Global Real Estate division reported a 52% increase in Operating Income to $1.4 million in Q3 2024, despite a 3% decrease in revenue[11] - Real estate segment revenue in the United States decreased by 11% to $1,444,000 in Q3 2024 from $1,614,000 in Q3 2023[29] - The company experienced a 67% improvement in operating loss for the real estate segment in the United States, reducing the loss to $75,000 in Q3 2024 from a loss of $229,000 in Q3 2023[29] Future Outlook - The upcoming holiday movie slate is expected to positively impact cinema revenues, with titles like Red One and Gladiator 2[8] - The company is negotiating a lease for a new Reading Cinema in Noosa, Queensland, demonstrating confidence in the cinema industry[10] - The company plans to manage upcoming debt maturities by modifying four outstanding loans and selling additional real estate assets[9]

Financial Performance - Total revenue for the quarter ended September 30, 2024, was $60,090,000, a decrease of 9.5% compared to $66,563,000 for the same period in 2023[8] - Cinema revenue for the quarter was $56,357,000, down 10.5% from $62,688,000 in the prior year[8] - Net loss attributable to Reading International, Inc. for the quarter was $6,916,000, compared to a net loss of $4,400,000 in the same quarter of 2023[8] - Operating income for the quarter was a loss of $246,000, compared to an operating income of $1,019,000 in the same quarter of 2023[8] - Comprehensive loss for the quarter was $5,422,000, compared to a comprehensive loss of $6,057,000 in the prior year[9] - Basic earnings per share for the quarter was a loss of $0.31, compared to a loss of $0.20 in the same quarter of 2023[8] - Net income for the nine months ended September 30, 2024, was a loss of $29.966 million, compared to a loss of $18.650 million for the same period in 2023[11] - As of September 30, 2024, the company reported a net loss of $6.9 million for the quarter and $29.5 million for the nine months, compared to a loss of $4.4 million and $18.3 million in the same periods of 2023[35] Assets and Liabilities - Total current assets increased to $59,046,000 as of September 30, 2024, from $38,710,000 at December 31, 2023[5] - Total liabilities decreased to $491,080,000 as of September 30, 2024, from $500,055,000 at December 31, 2023[6] - Cash and cash equivalents decreased to $10,083,000 as of September 30, 2024, from $12,906,000 at December 31, 2023[5] - Total stockholders' equity decreased to $4,606,000 as of September 30, 2024, from $32,996,000 at December 31, 2023[7] - The company has $52.6 million of debt due within twelve months and reported negative working capital of $80.5 million as of September 30, 2024[24] - Total borrowings as of September 30, 2024, were $214,033,000, an increase from $208,847,000 as of December 31, 2023, reflecting a rise of 2.8%[78] Revenue Breakdown - Cinema exhibition revenue decreased to $56.357 million in Q3 2024 from $62.687 million in Q3 2023, representing a decline of approximately 20.5%[16] - Real estate revenue for the nine months ended September 30, 2024, was $14.844 million, down from $15.338 million in 2023, a decrease of about 3.2%[16] - Segment operating income for cinema exhibition was $2.309 million in Q3 2024, down from $4.395 million in Q3 2023, a decline of approximately 47.5%[16] - Real estate revenue for the quarter ended September 30, 2024, was $4.898 million, a slight decrease from $5.056 million in 2023; for the nine months, it decreased from $15.338 million to $14.844 million[16] Cash Flow and Operating Activities - The company reported a net cash used in operating activities of $11.818 million for the nine months ended September 30, 2024, compared to $6.366 million in 2023[11] - Total cash and cash equivalents at the end of the period were $11.483 million, down from $17.639 million at the end of the same period in 2023[11] Debt and Financing - The company extended the maturity date of its Union Square financing facility to May 6, 2025, and its NAB facility to July 31, 2026, totaling $69.3 million[25] - The Bank of America Credit Facility was amended to extend the maturity date to August 18, 2025, and requires a $275,000 principal paydown[80] - The Cinemas 1,2,3 Term Loan carries an interest rate of 3.50% above monthly SOFR, with a floor of 7.50%[82] - The Union Square Financing facility has a variable interest rate of TERM SOFR plus 6.9% and was extended to May 6, 2025[83] Stock and Equity - The weighted average number of common stock increased to 22,426,184 for the quarter ended September 30, 2024, up from 22,273,423 in the same quarter of 2023[35] - The company repurchased 407,000 shares of Class A Common Stock for $5.5 million, with $3.5 million financed through a Purchase Money Promissory Note at an interest rate of 5.0% per annum, maturing on September 18, 2024[84] - The company recorded share-based compensation expenses of $603,000 for the quarter ended September 30, 2024, compared to $614,000 for the same quarter in 2023, showing a slight decrease[111] Impairment and Goodwill - The company performed a quantitative goodwill impairment test and determined that goodwill was not impaired as of December 31, 2023, with no impairment charges recorded in the first nine months of 2024[30] - Goodwill as of September 30, 2024, was $25,715, an increase from $25,535 as of December 31, 2023[64] Legal and Other Matters - The company is involved in various legal proceedings but does not expect any material adverse effects on its business or financial position[96] Market Outlook - The global cinema industry is expected to improve in the latter half of 2024 and 2025, driven by anticipated successful film releases and increased movie quality[26]

Financial Performance - Total Revenues for Q2 2024 were $46.8 million, a decrease of 28% compared to $65.1 million in Q2 2023[4] - Operating Loss for Q2 2024 was $4.4 million, compared to Operating Income of $1.8 million in Q2 2023[4] - Global cinema revenue decreased by 30% to $42.9 million in Q2 2024, with an operating loss of $1.3 million compared to operating income of $4.5 million in Q2 2023[8] - The global real estate revenue decreased by 4% to $5.0 million in Q2 2024, with operating income dropping 26% to $0.9 million[9] - Basic loss per share for Q2 2024 was $0.42, compared to a loss of $0.12 in Q2 2023[4] - Net loss attributable to Reading for Q2 2024 was $9.3 million, compared to a loss of $2.8 million in Q2 2023[4] - Total revenue for Q2 2024 was $46,809,000, a decrease of 28% compared to $65,055,000 in Q2 2023[19] - Cinema revenue for Q2 2024 was $42,942,000, down 30% from $61,056,000 in the same quarter last year[19] - Total costs and expenses for Q2 2024 were $51,161,000, a reduction of 19% from $63,266,000 in Q2 2023[19] - Operating loss for Q2 2024 was $(4,352,000), compared to an operating income of $1,789,000 in Q2 2023[19] - Net loss attributable to Reading International, Inc. for Q2 2024 was $(9,341,000), compared to a net loss of $(2,778,000) in Q2 2023[19] - Basic and diluted earnings per share for Q2 2024 were both $(0.42), compared to $(0.12) in Q2 2023[19] - Total segment revenue for the quarter ended June 30, 2024, was $46,808 thousand, a decrease of 28% compared to $65,057 thousand in the same quarter of 2023[23] - Total segment operating loss for the quarter was $324 thousand, a significant decline from an operating income of $5,760 thousand in the same quarter of 2023[26] - Net income attributable to Reading International, Inc. for the quarter was a loss of $9,341 thousand, compared to a loss of $2,778 thousand in the same quarter of 2023[25] - Adjusted EBITDA for the quarter was $(234) thousand, down from $6,682 thousand in the same quarter of 2023[25] - The total segment operating income for the six months ended June 30, 2024, was a loss of $3,598 thousand, compared to an income of $2,150 thousand in the same period of 2023[26] Cash and Debt Management - Cash and cash equivalents as of June 30, 2024, were $9.2 million, with total gross debt at $210.4 million[10] - Total current assets increased to $58,652,000 as of June 30, 2024, from $38,710,000 at December 31, 2023[21] - Total liabilities decreased to $485,324,000 as of June 30, 2024, from $500,055,000 at December 31, 2023[21] - Cash and cash equivalents decreased to $9,242,000 as of June 30, 2024, from $12,906,000 at December 31, 2023[21] - The company is actively working to improve liquidity and has sold its Culver City office building for $10 million to reduce debt[7] - Interest expense for the quarter was $5,252 thousand, an increase from $4,874 thousand in the same quarter of 2023[25] Segment Performance - The cinema division's operating loss in Q2 2024 was $1.1 million for the U.S. division, a stronger result than all but three quarters since Q4 2019[8] - The real estate segment in Australia showed a 6% increase in revenue to $3,177 thousand compared to $2,991 thousand in the same quarter of 2023[23] - Cinema segment revenue in the United States decreased by 37% to $21,480 thousand from $34,017 thousand year-over-year[23] - The cinema segment in New Zealand experienced a 29% revenue decline to $2,918 thousand from $4,101 thousand year-over-year[23] Future Outlook - The company anticipates improved box office performance in the second half of 2024 with upcoming releases such as "Beetlejuice" and "Avatar 3"[6]