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 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 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]

Financial Performance - Total revenue for Q2 2024 was $46.8 million, a decrease of 28% compared to $65.1 million in Q2 2023[8] - Cinema revenue for Q2 2024 was $42.9 million, down 30% from $61.1 million in Q2 2023[8] - Net loss for Q2 2024 was $9.5 million, compared to a net loss of $2.9 million in Q2 2023[9] - Operating income for Q2 2024 was a loss of $4.4 million, compared to an operating income of $1.8 million in Q2 2023[8] - Basic earnings per share for Q2 2024 was a loss of $0.42, compared to a loss of $0.12 in Q2 2023[8] - The company reported a comprehensive loss of $8.7 million for Q2 2024, compared to a comprehensive loss of $3.6 million in Q2 2023[9] - Net income for the six months ended June 30, 2024, was a loss of $22.9 million compared to a loss of $14.2 million for the same period in 2023[11] - Total revenue for the quarter ended June 30, 2024, was $46.8 million, a decrease of 28% from $65.1 million in the same quarter of 2023[15] - Cinema exhibition revenue for the six months ended June 30, 2024, was $84.2 million, down 18% from $103.0 million in 2023[15] - The company reported a segment operating loss of $1.3 million for cinema exhibition in the quarter ended June 30, 2024, compared to an operating income of $4.5 million in the same quarter of 2023[15] Assets and Liabilities - Total current assets increased to $58.7 million as of June 30, 2024, from $38.7 million at December 31, 2023[5] - Total liabilities decreased to $485.3 million as of June 30, 2024, from $500.1 million at December 31, 2023[6] - Cash and cash equivalents decreased to $9.2 million as of June 30, 2024, from $12.9 million at December 31, 2023[5] - The company’s retained earnings deficit increased to $102.1 million as of June 30, 2024, from $79.5 million at December 31, 2023[7] - The total operating property net value decreased from $262.4 million as of December 31, 2023, to $225.5 million as of June 30, 2024, reflecting a reduction in asset values[36] - The net book value of underlying assets under operating leases was $94,608 as of June 30, 2024, down from $103,952 at December 31, 2023, a decrease of 8.9%[56] Cash Flow and Liquidity - Cash and cash equivalents at the end of the period were $10.7 million, down from $21.8 million at the end of the same period in 2023[11] - The company has $58.6 million of debt due within twelve months and negative working capital of $89.8 million as of June 30, 2024[23] - The company is willing to pursue additional asset monetizations if cash flow estimates do not meet expectations, demonstrating a proactive approach to liquidity management[25] 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[24] - The Bank of America Credit Facility was amended to extend the maturity date to August 18, 2025, and required a $275,000 principal paydown[73] - The Cinemas 1, 2, 3 Term Loan was extended to October 1, 2024, with an interest rate of 3.50% above monthly SOFR, with a floor of 7.50%[77] - The Corporate Loan facility with NAB was amended to AU$100.0 million, maturing on July 31, 2026, with an additional AU$20.0 million bridge facility maturing on March 31, 2025[81] Market Outlook - The global cinema industry is expected to improve in the second half of 2024 and 2025, driven by anticipated successful film releases and an increase in the number of movies from major studios[25] - The company anticipates improvement in the global cinema industry in the latter half of 2024, driven by upcoming film releases such as "Inside Out 2" and "Despicable Me 4"[25] Legal and Environmental Matters - The company is involved in legal proceedings but does not expect a material adverse effect on its business or financial position[88] - Environmental conditions at properties may increase project costs but are not currently believed to be material[89] - The company has a history of asbestos-related claims, with known exposure not considered material[90] Stock and Compensation - The total number of Class A Common Stock options outstanding as of June 30, 2024, was 1,472,260, with a weighted average exercise price of $1.73[100] - The company granted stock options to purchase 1,264,603 shares of Class A Common Stock to senior executives on June 6, 2024, in lieu of cash bonuses[99] - The total unrecognized estimated compensation expense related to non-vested stock options was $815,000, expected to be recognized over a weighted average vesting period of 1.03 years[100] - The total RSUs granted as of June 30, 2024, amounted to 2,233,372, with 1,400,813 units vested[101]

Financial Performance - Total revenues for Q1 2024 decreased by 2% (or $0.8 million) to $45.1 million compared to $45.8 million in Q1 2023[5] - Operating loss improved by 4% (or $0.3 million) to a loss of $7.5 million compared to a Q1 2023 operating loss of $7.9 million[5] - Adjusted EBITDA loss increased by 40% to $4 million from a negative $2.8 million in Q1 2023[5] - Net loss attributable to Reading increased by 19% to $13.2 million compared to a loss of $11.1 million, primarily due to increased interest expense and a loss on the sale of the Culver City office building[5] - Total revenue for Q1 2024 was $45,052,000, a decrease of 2% from $45,807,000 in Q1 2023[21] - Net loss attributable to Reading International, Inc. for Q1 2024 was $13,228,000, compared to a net loss of $11,111,000 in Q1 2023, representing a 19% increase in loss[21] - Basic and diluted earnings per share for Q1 2024 were both $(0.59), compared to $(0.50) in Q1 2023[21] Cash and Assets - Cash and cash equivalents as of March 31, 2024, were $7.5 million, with total gross debt reduced to $195.7 million[10] - Total current assets decreased to $20,283,000 as of March 31, 2024, down from $38,710,000 as of December 31, 2023[22] - Cash and cash equivalents decreased to $7,501,000 as of March 31, 2024, down from $12,906,000 as of December 31, 2023[22] - Total stockholders' equity decreased to $17,728,000 as of March 31, 2024, from $32,996,000 as of December 31, 2023[22] Segment Performance - The U.S. cinema business exceeded industry performance by 670 basis points despite a 5.1% downturn in the North American Box Office[10] - Segment revenue from cinema in the United States decreased by 2% to $21,308,000 in Q1 2024, while Australia saw a 1% increase to $17,322,000[23] - The real estate segment revenue for Q1 2024 decreased by 3% (or $0.1 million) to $4.9 million compared to $5.1 million in Q1 2023[10] - Total segment operating loss improved by 9% to $(3,275,000) in Q1 2024 from $(3,606,000) in Q1 2023[23] Future Outlook - Upcoming film releases in 2024 and 2025 are expected to boost cinema revenues, with notable titles including Inside Out 2 and Avatar 3[4] - The company plans to monetize additional properties, including the Cannon Park property in Townsville, Australia, to raise liquidity[6] Adjustments and Compliance - Adjusted EBITDA was modified to exclude legal expenses related to extraordinary litigation and other non-recurring items[33] - The adjustments made to EBITDA are in accordance with the two-year SEC requirement for determining non-recurring, infrequent, or unusual items[33]

Revenue Performance - Total revenue for Q1 2024 was $45,052,000, a decrease of 1.65% from $45,807,000 in Q1 2023[10]. - Cinema revenue decreased to $41,271,000 in Q1 2024 from $41,987,000 in Q1 2023, a decline of 1.7%[10]. - Real estate revenue was $3,781,000 in Q1 2024, slightly down from $3,820,000 in Q1 2023[10]. - Total revenue for the quarter ended March 31, 2024, decreased by $0.8 million to $45.1 million compared to the same period in 2023, primarily due to lower cinema operations and decreased property rent revenue[163]. - Cinema exhibition revenue for the quarter was $41.3 million, a decrease of $0.7 million from the prior year, attributed to lower food and beverage revenues and weakened foreign exchange rates[171]. Net Loss and Earnings - Net loss attributable to Reading International, Inc. was $13,228,000 in Q1 2024, compared to a net loss of $11,111,000 in Q1 2023, representing a 19.1% increase in loss[10]. - Basic and diluted earnings per share for Q1 2024 were both $(0.59), compared to $(0.50) in Q1 2023[10]. - Comprehensive loss for Q1 2024 was $15,768,000, compared to a comprehensive loss of $12,403,000 in Q1 2023, an increase of 27.0%[12]. - Net loss attributable to Reading International, Inc. increased by $2.1 million to $13.2 million for the quarter ended March 31, 2024, primarily due to increased interest expense and a loss on the sale of the Culver City office building[167]. Assets and Liabilities - Total current assets decreased to $20,283,000 as of March 31, 2024, from $38,710,000 as of December 31, 2023, a decline of 47.5%[9]. - Total liabilities decreased to $477,132,000 as of March 31, 2024, from $500,055,000 as of December 31, 2023, a reduction of 4.6%[9]. - Cash and cash equivalents decreased to $7,501,000 as of March 31, 2024, from $12,906,000 as of December 31, 2023, a decline of 42.0%[9]. - As of March 31, 2024, the company had $41.9 million of debt due within twelve months and cash of $7.5 million, indicating negative working capital of $114.6 million[27]. - Total borrowings decreased to $194,544,000 as of March 31, 2024, down 7% from $208,847,000 at the end of 2023[67]. Operating Performance - Operating income (loss) for Q1 2024 was $(7,531,000), slightly improved from $(7,880,000) in Q1 2023[10]. - The total cost of operating property as of March 31, 2024, was $463.7 million, with accumulated depreciation of $209.9 million, resulting in net operating property of $253.8 million[39]. - The total segment operating loss improved by $0.3 million, from a loss of $3.6 million to a loss of $3.3 million, mainly due to reduced operating expenses in the U.S. cinema circuit[164]. - Total operating expenses for the quarter decreased by $1.0 million to $41.9 million, driven by lower occupancy and other operating expenses in the U.S. and New Zealand[174]. Real Estate and Investments - The company’s real estate operating segment has been less impacted by the COVID-19 pandemic and is generating expected cash flows[25]. - The company classified approximately 26.6 acres of industrial land in Williamsport, Pennsylvania, as held for sale, with a current book value of $460,000[47]. - The company is exploring monetization of certain real estate assets to support liquidity needs due to upcoming debt maturities[126]. - Real estate revenue for Q1 2024 decreased by $0.1 million to $4.9 million, primarily due to intercompany rent income loss from property sales[177]. Cinema Operations and Market Conditions - The company experienced soft cinema revenues and increasing costs related to inventory, labor, and utilities, exacerbated by the 2023 Hollywood strikes and rising interest rates, which increased from 0.25% to 5.5% between March 2022 and July 2023[23][24]. - The cinema business is impacted by factors such as COVID-19, the 2023 Hollywood strikes, and macroeconomic conditions, affecting profitability compared to pre-pandemic levels[110]. - The aftermath of the 2023 Hollywood strikes is expected to impact operations throughout 2024, with several notable film releases postponed to 2025[111]. - The company is addressing post-COVID challenges by improving automated and self-service options, enhancing food and beverage offerings, and expanding alternative content programs[113]. Cash Flow and Financing Activities - Cash used in operating activities for Q1 2024 decreased by $8.8 million to $2.8 million compared to $11.6 million in the same period of the prior year[188]. - Cash provided in investing activities for Q1 2024 was $7.6 million, a significant increase from cash used of $1.5 million in Q1 2023, mainly due to proceeds from property sales[189]. - Cash used in financing activities for Q1 2024 increased by $9.8 million to $11.2 million, primarily due to the payoff of an $8.4 million loan following a property sale[190]. Stockholder Equity and Compensation - The company’s total stockholders' equity decreased from $32,996 thousand at January 1, 2024, to $17,728 thousand by March 31, 2024[86]. - The company recorded a compensation expense of $49,000 for stock options in the first quarter of 2024, significantly higher than the $9,000 recorded in the same quarter of 2023[93]. - Compensation expense for the three months ended March 31, 2024, was $628,000, compared to $434,000 for the same period in 2023, with total unrecognized compensation expense related to non-vested RSUs at $3.0 million[96]. 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 materially affect its financial position[82]. - The company is currently involved in legal proceedings and has accrued estimates of probable losses for resolution[196]. Future Outlook - The company believes that the global cinema industry will improve in the latter half of 2024 and 2025, supported by anticipated releases of major films[29]. - The company expects to face reduced consumer demand due to inflationary pressures and the ongoing impact of the COVID-19 pandemic[205]. - The company anticipates challenges in cinema attendance due to increased ticket prices and competition from alternative entertainment options[205].

Financial Performance - Total revenues for the years ended December 31, 2020, 2021, 2022, and 2023 were $77.9 million, $139.1 million, $203.1 million, and $222.7 million, respectively, compared to $276.8 million for the year ended December 31, 2019[31]. - Total gross revenues for 2023 were $120.0 million in the U.S., $88.1 million in Australia, and $14.6 million in New Zealand, representing an increase from $100.1 million, $87.8 million, and $15.2 million in 2022[100]. - Approximately 58% of the company's 2023 revenue was generated from box office receipts, while food and beverage sales accounted for approximately 34%[50][52]. - The company generated a net profit of $93.3 million from the monetization of five non-core real estate assets in 2021, resulting in net cash of $144.8 million[201]. - The company has monetized approximately $153 million in non-core real estate assets over the past four years to sustain operations and pay down debt[41]. Debt and Liquidity - The Federal Reserve increased the Federal Funds rate from 0.25% to 5.5% between March 2022 and July 2023, resulting in an increased interest expense of $6.6 million in 2022 and $1.6 million in 2023[21]. - The company experienced a decrease in total interest-bearing debt by $26.6 million from $236.9 million to $210.3 million over the last two years[22]. - The company anticipates additional cash will be required to maintain liquidity through 2025 due to deferred rents and interest-bearing debt repayments[28]. - Approximately $174.6 million of the company's current debt will mature over the next twenty-four months, requiring refinancing, which may not be achievable at current interest rates[149]. - The ability to renew or replace loans maturing in 2024 and beyond is critical, especially in the context of rising interest rates[120]. Real Estate and Development - Non-core real estate dispositions from 2021 through the first quarter of 2024 produced $156.1 million in net cash, allowing the company to pay down $75.6 million in debt and invest $33.9 million in capital improvements[27]. - The company has retained the ability to show films in both 35MM and 70MM formats in certain cinemas, catering to specific director preferences[48]. - The company owns approximately 6.5 acres of land in Philadelphia, including the Reading Viaduct, which is being evaluated for potential mixed-use development[81]. - The company has approximately 90,000 square feet of space subject to long-term leases, reported as part of its Cinema Exhibition segment, with a total net book value of $18.3 million[183]. - The company is engaged in several investment and development projects on currently undeveloped parcels of land, with a net book value of $8.8 million for the Courtenay Central property in New Zealand[184]. Market Conditions and Competition - The company continues to face uncertainty regarding U.S. cinema cash flows, which has constrained activities in both cinema and real estate sectors[40]. - The company has experienced increased competition from streaming services and boutique operators, impacting access to top-grossing films[56][59]. - The company competes with larger cinema operators who have better access to films and capital, which may adversely impact revenue and profitability[129]. - Increased competition from in-home entertainment options and other forms of "beyond-the-home" entertainment is impacting customer attendance[125]. - The company faces risks including reduced consumer demand due to inflation, competition from other cinema operators, and the impact of external events such as the Hollywood Strikes on cinema operations[114]. Operational Challenges - The cinema business has high fixed costs, and revenue is directly tied to customer attendance, which remains vulnerable to future pandemics[123]. - The Hollywood strikes in 2023 have disrupted film production, potentially delaying the supply of films and affecting revenue[124]. - The company is vulnerable to changes in government regulations, including those related to labor costs and minimum wage requirements[120]. - Increased operating costs are being driven by rising utility costs, particularly electricity, as well as higher insurance premiums due to recent shooting incidents[134]. - The company faces risks related to natural disasters, as many of its cinemas are located in seismically active areas, which could lead to temporary closures[134]. Strategic Initiatives - The company has implemented strategic increases in ticket and food and beverage prices to balance increased operational costs without deterring revenue generation[23]. - The company is focusing on enhancing cinema experiences through larger screens, improved sound, and online ticket reservations to compete with streaming services[65]. - The company is focusing on expanding food and beverage offerings to align with moviegoers' desires and trends[52]. - The company has upgraded food and beverage menus at 40 theater locations as of December 31, 2023, enhancing customer experience[214]. - The company launched Angelika Anywhere streaming service in the U.S. in December 2020, but is reviewing its long-term viability and may terminate the service in 2024[38]. Governance and Ownership - As of December 31, 2023, Margaret Cotter controls 69% of the outstanding Class B stock, allowing her to unilaterally elect or remove all Board members[164]. - The governance structure allows for limited fiduciary duties from controlling stockholders, which may not align with the best interests of minority stockholders[167]. - The company has implemented a cybersecurity program to address threats, utilizing third-party firms for various cybersecurity functions[172][173]. - The company has not experienced any cybersecurity incidents that materially affected its operations[175]. Economic and Currency Impact - The U.S. dollar's appreciation against the Australian and New Zealand dollars has reduced the value of earnings and cash flow from these regions when reported in USD[101]. - The Australian dollar and New Zealand dollar weakened against the U.S. dollar by 4.3% and 3.3%, respectively, during 2023, impacting the company's international operations[150]. - In 2023, global growth weakened, with trade tensions and geopolitical instability adversely impacting market sentiments and potentially leading to currency devaluation and loss of consumer confidence[154].