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].

Financial Performance - Total revenue for Q3 2023 was $66.563 million, a 30% increase from $51.196 million in Q3 2022[10] - Cinema revenue increased to $62.688 million in Q3 2023, up 30% from $48.359 million in Q3 2022[10] - Net loss for Q3 2023 was $4.465 million, compared to a net loss of $5.299 million in Q3 2022, showing an improvement[10] - Basic earnings per share for Q3 2023 was $(0.20), an improvement from $(0.23) in Q3 2022[10] - Comprehensive loss for Q3 2023 was $(6.125) million, compared to $(13.469) million in Q3 2022[12] - For the nine months ended September 30, 2023, net income was a loss of $18,650,000 compared to a loss of $23,195,000 in the same period of 2022, indicating an improvement of approximately 19%[14] - Total revenue for the quarter ended September 30, 2023, increased by $15.4 million to $66.6 million, a 30% increase compared to the same period in 2022[148] - For the nine months ended September 30, 2023, total revenue increased by $21.5 million to $177.4 million, a 14% increase year-over-year[149] Assets and Liabilities - Total assets decreased to $532.597 million as of September 30, 2023, down from $587.055 million at the end of 2022[9] - Total liabilities decreased to $490.542 million as of September 30, 2023, down from $523.776 million at the end of 2022[9] - Cash and cash equivalents decreased to $11.925 million as of September 30, 2023, from $29.947 million at the end of 2022[9] - Retained earnings deficit increased to $(67.104) million as of September 30, 2023, compared to $(48.816) million at the end of 2022[9] - As of September 30, 2023, total borrowings amounted to $206.855 million, a decrease from $213.664 million as of December 31, 2022, representing a reduction of approximately 3.8%[63] - The current portion of debt increased to $40.402 million from $37.279 million, while the long-term portion decreased to $138.560 million from $148.688 million[63] - The debt-to-equity ratio increased to 4.96 as of September 30, 2023, compared to 3.41 in 2022[180] - Working capital deficit was reported at $85.7 million as of September 30, 2023, worsening from a deficit of $74.2 million in 2022[180] Operating Income and Expenses - Operating income for Q3 2023 was $1.019 million, compared to an operating loss of $6.731 million in Q3 2022[10] - Total segment operating income for the quarter was $5.3 million, a significant improvement from a loss of $2.3 million in the same quarter of the previous year[150] - The company reported a total segment operating income of $7.5 million for the nine months, a turnaround from a loss of $6.0 million in the same period of 2022[151] - Operating expenses for the quarter increased by $7.9 million to $54.5 million, driven by increased film rent expense and food and beverage costs[163] - Operating expenses for the nine months increased by $11.5 million to $149.9 million compared to the same time period in the prior year[163] Cash Flow and Investments - The company reported a net cash used in operating activities of $6,366,000 for the nine months ended September 30, 2023, significantly improved from $26,114,000 in the same period of 2022[14] - Cash used in investing activities during the nine months ended September 30, 2023, was $6.2 million, remaining relatively flat compared to $6.4 million in the prior year[179] - The company has paid down institutional debt by $54.4 million since March 31, 2020, as part of its financing strategy[172] Real Estate Revenue - Real estate revenue for the quarter ended September 30, 2023, was $5,056,000, a 24% increase from $4,070,000 in 2022; for the nine months, it rose to $15,338,000 from $12,265,000, reflecting a growth of 25%[17] - Real estate revenue for Q3 2023 increased by approximately $1.0 million to $5.1 million compared to Q3 2022, driven by rental income from the 44 Union Square property[167] - For the nine months ended September 30, 2023, real estate revenue rose by $3.1 million to $15.3 million, primarily due to rental income from the 44 Union Square property[168] Debt Management - The company has $58.6 million of debt maturing within the next twelve months, necessitating refinancing and improved cash flows[28] - The loan maturity for Cinemas 123 has been extended to October 1, 2024, following a refinance on September 29, 2023, indicating progress in managing debt obligations[29] - The company has $41.5 million in debt coming due in the next 12 months, with $108.3 million in debt extensions negotiated for 2023[174] Market and Operational Strategy - The cinema segment continues to recover, with notable box office successes from films like Barbie and Oppenheimer, although it has not yet returned to pre-pandemic levels[23] - The company is actively pursuing cost-reduction strategies in its cinema operations, including minimizing capital expenditures and renegotiating rent obligations[24] - The company is actively closing non-performing cinemas in the U.S. while expanding its presence in Australia and New Zealand, indicating a strategic shift in market focus[108] - The company is addressing rising operational costs and labor shortages by improving automated services and focusing on food and beverage sales[107] Legal and Regulatory Matters - The company has accrued estimates of probable and estimable losses for ongoing legal claims, including legal costs[78] - The company does not currently believe that its exposure under applicable environmental laws is material in amount[79] - The company has ongoing claims related to asbestos exposure, but the known exposure is not considered material[81] Stock and Compensation - The company’s share-based compensation expense for the quarter ended September 30, 2023, was $614,000[83] - As of September 30, 2023, there were 278,193 shares of Class A Common Stock available for issuance under the 2020 Stock Incentive Plan[85] - The total unrecognized estimated compensation expense related to non-vested stock options was $9,000, expected to be recognized over a weighted average vesting period of 0.25 years[89] Foreign Currency and Exchange Rates - The average Australian dollar exchange rate against the U.S. dollar decreased by 4.1% in Q3 2023 compared to the same period in 2022, negatively impacting segment operating income[152] - The company is exposed to risks from fluctuating foreign currency exchange rates, which could materially affect financial position[203] - Approximately 35.4% and 8.5% of the company's assets were invested in assets denominated in Australian dollars and New Zealand dollars, respectively, including approximately $6.4 million in cash and cash equivalents as of September 30, 2023[204]

Revenue Performance - Total revenue for Q2 2023 was $65,055,000, a slight increase of 0.8% compared to $64,511,000 in Q2 2022[10] - Total revenue for the six months ended June 30, 2023, was $110.861 million, up 5.5% from $104.712 million in the same period of 2022[17] - Total revenue for the quarter ended June 30, 2023, increased by 1% to $65.1 million compared to the same period in 2022, driven by increased revenues from U.S. cinemas and rent income from the 44 Union Square property[159] - For the six months ended June 30, 2023, revenue rose by 6% to $110.9 million, attributed to better cinema performances and rent income from the 44 Union Square property[160] Cinema Revenue - Cinema revenue decreased to $61,056,000 in Q2 2023 from $61,770,000 in Q2 2022, representing a decline of 1.2%[10] - Cinema exhibition revenue for Q2 2023 was $61.056 million, a decrease of 1.2% from $61.770 million in Q2 2022[17] - For the quarter ended June 30, 2023, cinema revenue decreased by $0.7 million to $61.1 million compared to the same period in the prior year, despite a 12% increase in U.S. cinema revenue[171] - For the six months ended June 30, 2023, cinema revenue increased by $3.9 million to $103.0 million compared to the same period in the prior year, primarily driven by increased attendance in the U.S. cinema circuit[172] Real Estate Revenue - Real estate revenue increased significantly to $3,999,000 in Q2 2023 from $2,741,000 in Q2 2022, marking a growth of 46.0%[10] - Real estate revenue for Q2 2023 was $5.217 million, an increase of 29.4% from $4.032 million in Q2 2022[17] - Real estate revenue for Q2 2023 increased by $1.2 million to $5.2 million, driven by rental income from the 44 Union Square property[179] - For the six months ended June 30, 2023, real estate revenue rose by $2.1 million to $10.3 million, attributed to the same rental income source[180] Operating Income and Loss - Operating income for Q2 2023 was $1,789,000, compared to an operating loss of $1,572,000 in Q2 2022[10] - Segment operating income for cinema exhibition in Q2 2023 was $4.474 million, an increase of 29.6% from $3.452 million in Q2 2022[17] - Total segment operating income for the quarter increased by 71% to $5.8 million, primarily due to improved operating income from U.S. cinemas and absence of impairment expenses incurred in the prior year[162] - For the six months ended June 30, 2023, total segment operating income was $2.2 million, a $5.9 million improvement from a loss of $3.7 million in the prior year[163] Net Loss and Earnings Per Share - Net loss for Q2 2023 was $2,861,000, compared to a net loss of $2,443,000 in Q2 2022, indicating a worsening of 17.1%[12] - Basic earnings per share for Q2 2023 was $(0.12), compared to $(0.11) in Q2 2022[10] - The net income attributable to Reading International, Inc. for the quarter ended June 30, 2023, was a loss of $2.778 million, compared to a loss of $2.436 million in the same quarter of 2022[40] - For the six months ended June 30, 2023, net loss decreased by 22% to $13.9 million from $17.8 million in the prior year, primarily due to better segment results and decreased G&A expenses[166] Assets and Liabilities - Total assets decreased to $552,242,000 as of June 30, 2023, down from $587,055,000 at the end of 2022, a reduction of 5.9%[9] - Total liabilities decreased to $504,676,000 as of June 30, 2023, down from $523,776,000 at the end of 2022, a decline of 3.6%[9] - Cash and cash equivalents decreased to $15,511,000 as of June 30, 2023, compared to $29,947,000 at the end of 2022, a drop of 48.3%[9] - The company has $48.5 million of debt maturing within the next twelve months, with $22.2 million due on October 3, 2023[29] Cash Flow and Working Capital - Cash used in operating activities for the six months ended June 30, 2023, decreased by $8.7 million to $8.8 million, reflecting improved cinema performance and rental income recognition[191] - Working capital deficit was reported at $81.9 million as of June 30, 2023, compared to a deficit of $74.2 million in 2022[196] - Total resources at period end were $24.4 million, a decrease from $41.9 million in 2022[196] - Cash used in investing activities for the six months ended June 30, 2023, was $3.4 million, a slight decrease from $3.7 million in the prior year[192] Debt and Financing - Total borrowings as of June 30, 2023, were $222,649,000, with a net balance of $213,804,000 after deferred financing costs[61] - The current portion of debt increased to $47,259,000 in June 2023 from $37,279,000 in December 2022[66] - The Bank of America facility requires monthly repayments of $725,000 starting May 2023, with a maturity date extended to September 4, 2024[67] - The Union Square loan facility of $55,000,000 has a variable interest rate of one month LIBOR plus 6.9%, with a current effective rate of 12.06%[71][72] Market Conditions and Future Outlook - The ongoing Hollywood strikes may impact future movie release schedules, affecting the cinema segment's performance[24] - The company believes the global cinema industry will continue to recover into 2024 and 2025, supported by an increased number of movie releases[31] - The global cinema business continues to face profitability challenges compared to pre-pandemic levels due to factors such as inflationary pressures and increased operating expenses[118] - The cinema industry is expected to benefit from a compelling film slate for the remainder of the year, subject to the impact of the Hollywood Strikes[121] Legal and Regulatory Matters - The company settled California employment litigation for a total payout of $4,000,000, with payments scheduled through December 2024[88] - The company is involved in legal proceedings and has accrued estimates of probable losses related to these claims[198] Stock and Equity - Total stockholders' equity at June 30, 2023, was $47,566,000, down from $63,279,000 at January 1, 2023, indicating a decrease of approximately 25%[92] - The company repurchased 1,792,819 shares of Class A Common Stock at an average price of $13.39 per share, with a total authorized repurchase amount remaining of $26.0 million[106] - The total outstanding Restricted Stock Units (RSUs) as of June 30, 2023, was 2,233,372, with 896,139 vested, 1,240,292 unvested, and 96,941 forfeited[103] Operational Developments - The company plans to add two new cinemas in Australia by the end of 2023, totaling 13 screens, as part of broader shopping center developments[139] - The company continues to review and cull underperforming cinemas in the U.S. while expanding in markets perceived as underserved[119] - The company has liquor licenses in 100% of its operating cinemas in the U.S., with five pending in Australia and two in New Zealand[144]

Revenue Performance - Total revenue for Q1 2023 was $45.807 million, an increase of 13.5% compared to $40.200 million in Q1 2022[10] - Cinema revenue increased to $41.987 million in Q1 2023, up 12.0% from $37.347 million in Q1 2022[10] - Real estate revenue rose to $3.820 million, a 33.9% increase from $2.853 million in Q1 2022[10] - Cinema exhibition revenue for Q1 2023 was $41.99 million, a 12% increase from $37.35 million in Q1 2022[153] - Real estate revenue increased by 22% to $5.07 million in Q1 2023, compared to $4.16 million in Q1 2022[153] - Total revenue for Q1 2023 reached $45.81 million, up 14% from $40.20 million in the same quarter last year[153] Net Income and Loss - Net loss attributable to Reading International, Inc. was $11.111 million in Q1 2023, an improvement from a net loss of $15.354 million in Q1 2022[10] - Basic and diluted earnings per share for Q1 2023 were both $(0.50), compared to $(0.70) in Q1 2022[10] - For the quarter ended March 31, 2023, the net income attributable to the company was $(11.1) million, compared to $(15.4) million for the same period in 2022, resulting in a basic and diluted loss per share of $(0.50) for both periods[39] - The net income attributable to Reading International, Inc. for Q1 2023 was a loss of $11.11 million, an improvement of 28% from a loss of $15.35 million in Q1 2022[153] - Net loss attributable to Reading International, Inc. for Q1 2023 decreased by $4.2 million to a loss of $11.1 million compared to Q1 2022[157] Assets and Liabilities - Total assets decreased to $560.198 million as of March 31, 2023, down from $587.055 million at the end of 2022[9] - Total liabilities decreased to $509.226 million as of March 31, 2023, compared to $523.776 million at the end of 2022[9] - Cash and cash equivalents at the end of Q1 2023 were $14.628 million, down from $29.947 million at the end of 2022[9] - The company reported cash of $14.6 million and negative working capital of $94.2 million as of March 31, 2023, with $48.1 million of debt maturing within the next twelve months[28] - The company reported total investments in unconsolidated joint ventures of $4,707,000 as of March 31, 2023, a decrease from $4,756,000 at the end of 2022[57] Operating Performance - Segment operating loss for cinema exhibition improved to $(4.612) million in Q1 2023 from $(7.216) million in Q1 2022[18] - The total segment operating loss decreased by 49% from $7.11 million in Q1 2022 to $3.61 million in Q1 2023[153] - Operating expenses for the cinema segment increased by $3.1 million to $42.9 million, primarily due to increased film rent and other operating expenses[164] - Cinema segment operating loss decreased by $2.6 million to a loss of $4.6 million, aided by a higher quantity and quality of films released[163] Cash Flow and Financing - Cash used in operating activities for Q1 2023 was $11.6 million, a decrease of $2.5 million compared to Q1 2022, driven by improved cinema performance and rental income recognition[178] - The company is currently cash flow negative and is relying on borrowings and monetizing non-core assets to support liquidity[126] - The company has $48.1 million of debt maturing, with $22.3 million due on July 3, 2023, and plans to refinance these loans[28] - The company reported a working capital deficit of $94.2 million as of March 31, 2023, compared to a deficit of $74.2 million in the previous year[181] Market and Industry Trends - The company believes that the global cinema industry will continue to recover in 2023 and 2024, supported by an increased number of movie releases and improved quality of titles[30] - The cinema industry is experiencing a recovery, with notable box office successes such as "Avatar: The Way of Water," which has become the third highest-grossing film of all time[119] - The release of the "Super Mario Brothers Movie" achieved the biggest worldwide opening for an animated film and became the first billion-dollar grossing film of 2023[121] - The cinema industry is reviewing and culling underperforming locations, with a focus on markets that are not overscreened[116] Real Estate Operations - The company’s real estate operating segment has been less impacted by the COVID-19 pandemic, generating near-to-expected cash flows[26] - Real estate segment operating income for Q1 2023 increased by $0.9 million to $1.0 million compared to the same period in the prior year[169] - Total operating expense for the real estate segment increased by $0.1 million to $2.2 million, related to increases in utilities, insurance, and security[170] Cost Management and Efficiency - The company has ongoing cost-reduction efforts in its cinema operating segment, including limiting hours of operation and increasing reliance on automation[25] - The company is focusing on increasing automation and self-service options at cinemas to reduce labor costs[118] - The company has made no provision for potential settlement amounts in litigation where it is the plaintiff until received, reflecting a conservative approach to legal costs[82] Legal and Compliance - The company accrued a settlement amount of $4.0 million related to California employment litigation, with payments scheduled for May 18, 2023 ($1,351,000), February 19, 2024 ($1,351,000), and the balance on December 2, 2024[86] - The company has accrued for probable damages in litigation where it is the defendant, as permitted under ASC 450-20 Loss Contingencies[82] Shareholder Information - The company has 1,250,000 shares of Class A Common Stock authorized for issuance under the 2020 Stock Incentive Plan, with 234,955 shares remaining available for future issuance as of March 31, 2023[92] - The company has repurchased 1,792,819 shares of Class A Common Stock at an average price of $13.39 per share, with a remaining authorized repurchase amount of $26.0 million as of March 31, 2023[101]

PART I [Item 1 – Our Business](index=3&type=section&id=Item%201%20%E2%80%93%20Our%20Business) Reading International operates diversified cinema and real estate segments across the U.S., Australia, and New Zealand, recovering from pandemic impacts through strategic asset sales and operational improvements - The company operates through two primary segments: **Theatrical Motion Picture Exhibition (62 cinemas)** and **Real Estate** (development and rental of retail, commercial, and live theatre assets)[19](index=19&type=chunk) - The **COVID-19 pandemic materially impacted** the cinema business, leading to temporary closures and a halt in revenues; the company **monetized five non-core assets** to manage liquidity[17](index=17&type=chunk) Revenue Trend (2019-2022) | Year | Total Revenue (in millions) | | :--- | :--- | | 2022 | $203.1 | | 2021 | $139.1 | | 2020 | $77.9 | | 2019 (Pre-pandemic) | $276.8 | - In response to pandemic-related cash flow issues, the company monetized non-core real estate assets, generating net proceeds of **$139.4 million** in 2021, used to pay down debt and cover operating expenses[27](index=27&type=chunk)[28](index=28&type=chunk) Debt and Cash Position (2021-2022) | Metric | Dec 31, 2022 (in millions) | Dec 31, 2021 (in millions) | | :--- | :--- | :--- | | Cash and Cash Equivalents | $29.9 | $83.3 | | Net Bank Debt | $215.6 | $236.9 | - As of December 31, 2022, the company operates **62 cinemas** with **505 screens** across the U.S., Australia, and New Zealand, with **52** locations leased and **10** owned[43](index=43&type=chunk) 2022 Cinema Revenue Breakdown | Revenue Source | Percentage of 2022 Cinema Revenue | | :--- | :--- | | Box Office Receipts | 58% | | Food & Beverage (F&B) Sales | 34% | | Screen Advertising & Other | 8% | - The company's real estate portfolio includes two live theatres in Manhattan, the 44 Union Square property, and several Entertainment-Themed Centers (ETCs) in Australia and New Zealand[41](index=41&type=chunk) Asset Distribution by Book Value (Dec 31, 2022) | Category | Percentage of Assets | | :--- | :--- | | **By Segment** | | | Cinema Exhibition | 46% | | Real Estate | 42% | | **By Country** | | | United States | 58% | | Australia | 34% | | New Zealand | 8% | [Item 1A – Risk Factors](index=23&type=section&id=Item%201A%20%E2%80%93%20Risk%20Factors) The company faces significant business risks primarily in its cinema and real estate operations, including pandemic vulnerability, intense competition, digital economy impacts, and substantial debt maturities - The cinema business is **highly vulnerable to pandemics** like COVID-19, leading to closures, reduced capacity, and direct impacts on revenue[115](index=115&type=chunk) - The company faces **significant competition from in-home and mobile entertainment sources**, pressuring film distributors to shorten or eliminate exclusive theatrical release windows[117](index=117&type=chunk) - Competition from larger exhibitors like AMC, Regal, and Cinemark, who control over **57%** of the North American market, may adversely impact the company's access to top-grossing films[55](index=55&type=chunk)[120](index=120&type=chunk) - The real estate business is at risk from the **growth of e-commerce** and the **trend of remote work**, potentially reducing the company's ability to lease properties at historical rent levels[128](index=128&type=chunk) - The company is subject to **foreign currency risk** as a substantial portion of its revenue and obligations are denominated in Australian and New Zealand dollars, and it **does not hedge this currency risk**[143](index=143&type=chunk) - The company has **substantial short- to medium-term debt** and typically operates with **negative working capital**, a common characteristic in the cinema industry[147](index=147&type=chunk)[149](index=149&type=chunk) - Margaret Cotter beneficially owns **69%** of the outstanding Class B voting stock, giving her unilateral power over board elections and stockholder votes[156](index=156&type=chunk)[157](index=157&type=chunk) - Due to its ownership structure, the company is a **"Controlled Company"** under NASDAQ regulations and has opted out of certain corporate governance rules[162](index=162&type=chunk) [Item 1B – Unresolved Staff Comments](index=31&type=section&id=Item%201B%20%E2%80%93%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the Securities and Exchange Commission - None[164](index=164&type=chunk) [Item 2 – Properties](index=32&type=section&id=Item%202%20%E2%80%93%20Properties) The company owns approximately **728,000 square feet** of income-producing properties and leases **2,067,000 square feet** of cinema space across its U.S., Australia, and New Zealand operations Owned Operating Property Summary (as of Dec 31, 2022) | Property Type | Square Feet (Improvements) | Net Book Value (in thousands) | | :--- | :--- | :--- | | **United States** | | | | 44 Union Square | 73,000 | $99,614 | | Culver City Office | 25,000 | $11,896 | | Cinemas 1,2,3 | 24,000 | $24,163 | | **Australia** | | | | Newmarket Village | 144,000 | $40,471 | | Cannon Park | 133,000 | $19,219 | | **New Zealand** | | | | Courtenay Central | 114,000 | $8,254 | | **Total** | **~728,000** | **$228,761** | Leased Entertainment Properties (as of Dec 31, 2022) | Region | Aggregate Square Footage | | :--- | :--- | | United States | 942,000 | | Australia | 901,000 | | New Zealand | 224,000 | | **Total** | **2,067,000** | - The company holds an investment and development property at Courtenay Central, Wellington, New Zealand, with a net book value of **$8.8 million**, which is planned for redevelopment[172](index=172&type=chunk) [Item 3 – Legal Proceedings](index=34&type=section&id=Item%203%20%E2%80%93%20Legal%20Proceedings) The company is involved in legal proceedings, notably a **$4.0 million** California employment litigation settlement pending approval and a resolved New Zealand lease arbitration with no settlement paid - The company has agreed to settle overlapping wage and hour claims related to its California cinema operations for **$4.0 million**, with final court approval scheduled for April 18, 2023[473](index=473&type=chunk) - An arbitration claim concerning a 2013 Agreement to Lease in New Zealand was **resolved in August 2022**, with the agreement terminated and **no settlement amounts paid** by either party[474](index=474&type=chunk) [Item 4 – Mine Safety Disclosures](index=34&type=section&id=Item%204%20%E2%80%93%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not Applicable[178](index=178&type=chunk) PART II [Item 5 – Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=34&type=section&id=Item%205%20%E2%80%93%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's Class A and B common stock trade on NASDAQ, with no history or current plans for cash dividends, and underperformed in 2022 due to pandemic impacts and unfavorable currency rates - The company's Class A Non-voting (RDI) and Class B Voting (RDIB) common stock are traded on the **NASDAQ**[180](index=180&type=chunk) - The company has **never declared a cash dividend** on its common stock and has **no current plans** to do so[180](index=180&type=chunk) - The company's stock underperformed in 2022 compared to the market due to the **COVID-19 pandemic's aftermath**, delayed movie releases, and a weakening foreign currency exchange rate[183](index=183&type=chunk) [Item 6 – Selected Financial Data](index=36&type=section&id=Item%206%20%E2%80%93%20Selected%20Financial%20Data) This item is no longer required as the company has adopted amendments to Regulation S-K that eliminate this disclosure requirement - Part II, Item 6 is **no longer required** as the Company has adopted certain provisions within the amendments to Regulation S-K that eliminate Item 6[185](index=185&type=chunk) [Item 7 – Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A")](index=36&type=section&id=Item%207%20%E2%80%93%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations%20(%22MD%26A%22)) In 2022, the company reported a **net loss of $36.2 million**, primarily due to the absence of a **$92.3 million** asset sale gain from 2021, while cinema and real estate operating performance improved - The company's operations began to **return to normal in 2022** as health restrictions loosened and studio film releases improved, though cinema attendance remains below pre-pandemic levels[192](index=192&type=chunk) Consolidated Results (2022 vs. 2021) | Metric (in millions) | 2022 | 2021 | | :--- | :--- | :--- | | Net Income (Loss) attributable to RDI | $(36.2) | $31.9 | | Gain on Sale of Assets | $(0.1) | $92.2 | | Cinema Operating Income (Loss) | $(11.7) | $(18.6) | | Real Estate Operating Income (Loss) | $0.5 | $(5.4) | - The decrease in net income for 2022 was primarily due to the one-time **$92.3 million** gain on asset sales in 2021, which was part of a strategic monetization to address liquidity needs during the pandemic[224](index=224&type=chunk) Cinema Segment Revenue by Country (2022 vs. 2021) | Country (in millions) | 2022 Revenue | 2021 Revenue | % Change | | :--- | :--- | :--- | :--- | | United States | $97.1 | $59.9 | 62% | | Australia | $79.9 | $55.3 | 44% | | New Zealand | $14.3 | $11.6 | 24% | | **Total** | **$191.3** | **$126.8** | **51%** | - Real estate segment operating income improved by **$5.9 million** in 2022, driven by increased intercompany rent, reduced vacancy, and full-year operation of New York live theatres[241](index=241&type=chunk) Liquidity and Capital Resources Summary | Metric (in millions) | Dec 31, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | Cash and cash equivalents | $29.9 | $83.3 | | Total debt (gross) | $215.6 | $236.9 | | Working capital (deficit) | $(74.2) | $(6.7) | | Net cash used in operating activities | $(26.4) | $(13.5) | - The company has significant debt maturities in the coming years, with **$38.0 million** due in 2023 and **$140.3 million** due in 2024[264](index=264&type=chunk) [Item 7A – Quantitative and Qualitative Disclosure about Market Risk](index=53&type=section&id=Item%207A%20%E2%80%93%20Quantitative%20and%20Qualitative%20Disclosure%20about%20Market%20Risk) The company's primary market risks are foreign currency exchange rate fluctuations and interest rate changes, with significant foreign currency exposure and a **1%** interest rate change impacting 2022 interest expense by approximately **$2.2 million** - As of December 31, 2022, approximately **34%** of the company's assets were denominated in Australian dollars and **8%** in New Zealand dollars, exposing the company to foreign currency translation risk[285](index=285&type=chunk) - The company manages currency exposure through **natural hedges**, such as borrowing in local currencies, but **does not currently plan to hedge** its foreign currency exposure with derivatives[272](index=272&type=chunk)[289](index=289&type=chunk) - A hypothetical **1%** change in short-term interest rates would have resulted in a **$2.2 million** change in the company's 2022 interest expense, indicating exposure to interest rate risk[293](index=293&type=chunk) - Approximately **$177.7 million** of the company's current borrowings will mature over the next **24 months**, posing a refinancing risk as they are unlikely to be refinanced at current interest rates[274](index=274&type=chunk) [Item 8 – Financial Statements and Supplementary Data](index=55&type=section&id=Item%208%20%E2%80%93%20Financial%20Statements%20and%20Supplementary%20Data) The consolidated financial statements for 2022 show total assets decreased to **$587.1 million** and a **net loss of $36.7 million**, primarily due to the absence of significant 2021 asset sale gains Consolidated Balance Sheet Data (as of Dec 31) | (in thousands) | 2022 | 2021 | | :--- | :--- | :--- | | Total Current Assets | $47,512 | $100,306 | | Total Assets | $587,055 | $687,702 | | Total Current Liabilities | $121,664 | $106,979 | | Total Liabilities | $523,776 | $582,642 | | Total Stockholders' Equity | $63,279 | $105,060 | Consolidated Statement of Operations Data (for year ended Dec 31) | (in thousands) | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | Total Revenues | $203,115 | $139,060 | $77,862 | | Operating Income (Loss) | $(28,483) | $(41,793) | $(61,313) | | Gain (Loss) on Sale of Assets | $(54) | $92,219 | $(1) | | Net Income (Loss) | $(36,660) | $34,814 | $(65,857) | Consolidated Statement of Cash Flows Data (for year ended Dec 31) | (in thousands) | 2022 | 2021 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $(26,351) | $(13,498) | | Net cash provided by (used in) investing activities | $(9,486) | $129,610 | | Net cash provided by (used in) financing activities | $(16,557) | $(50,280) | | Net (decrease) increase in cash | $(53,592) | $61,737 | - In 2021, the company completed several major real estate monetizations, including the sale of its Auburn/Redyard ETC for **$69.6 million**, Manukau land for **$56.1 million**, and Coachella land for **$11.0 million**, significantly boosting cash and gains[395](index=395&type=chunk)[396](index=396&type=chunk)[398](index=398&type=chunk) - As of December 31, 2022, the company had total debt of **$215.6 million**, with significant maturities including a **$22.5 million** loan due July 3, 2023, and a **$26.8 million** facility maturing March 1, 2024 (both subsequently extended)[383](index=383&type=chunk)[433](index=433&type=chunk)[441](index=441&type=chunk) [Item 9 – Change in and Disagreements with Accountants on Accounting and Financial Disclosure](index=104&type=section&id=Item%209%20%E2%80%93%20Change%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - None[519](index=519&type=chunk) [Item 9A – Controls and Procedures](index=104&type=section&id=Item%209A%20%E2%80%93%20Controls%20and%20Procedures) Management concluded the company's disclosure controls and procedures were effective, with no material changes to internal control over financial reporting - Based on an evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were **effective** as of the end of the period covered by the report[521](index=521&type=chunk) - There were **no changes in internal control over financial reporting** during the fourth quarter that have materially affected, or are reasonably likely to materially affect, these controls[522](index=522&type=chunk) PART III [Items 10, 11, 12, 13 and 14](index=105&type=section&id=Items%2010%2C%2011%2C%2012%2C%2013%20and%2014) Information for Part III, covering directors, executive compensation, and related matters, is incorporated by reference from the company's 2023 Proxy Statement - Information required by Part III (Items 10, 11, 12, 13 and 14) is **incorporated by reference** from the company's definitive Proxy Statement for its 2023 Annual Meeting of Stockholders[527](index=527&type=chunk) PART IV [Item 15 – Exhibits, Financial Statement Schedules](index=106&type=section&id=Item%2015%20%E2%80%93%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists the financial statements, schedules, and exhibits filed as part of the Form 10-K report, with many incorporated by reference from previous filings - This section contains the list of financial statements, schedules, and exhibits filed with the annual report[530](index=530&type=chunk)

Financial Performance - Total revenue for Q3 2022 was $51.196 million, a 61% increase from $31.803 million in Q3 2021[11] - Cinema revenue reached $48.359 million in Q3 2022, up 68% from $28.751 million in Q3 2021[11] - Net loss for Q3 2022 was $5.299 million, compared to a net loss of $10.200 million in Q3 2021[11] - Total revenue for the nine months ended September 30, 2022, was $155,908 thousand, a significant increase from $89,142 thousand in 2021, driven primarily by cinema exhibition revenue[19] - For the nine months ended September 30, 2022, the net income loss was $23,195 thousand compared to a net income of $34,461 thousand for the same period in 2021[15] - Revenue for the nine months ended September 30, 2022, increased by $66.8 million to $155.9 million, a 75% increase compared to the same period in 2021[171] Operating Income and Expenses - Operating income loss for Q3 2022 was $6.731 million, an improvement from a loss of $10.951 million in Q3 2021[11] - The total cost of operating property as of September 30, 2022, was $526.277 million, down from $555.620 million as of December 31, 2021[37] - Operating expenses for Q3 2022 increased by $17.2 million to $46.5 million compared to Q3 2021, driven by higher film rent, labor, and utility costs[185] - The total operating expense for the cinema segment for the quarter ended September 30, 2022, was $46.54 million, representing 96% of total revenue[180] Cash Flow and Liquidity - Cash and cash equivalents decreased to $39.628 million as of September 30, 2022, down from $83.251 million at December 31, 2021[9] - The company experienced a net cash decrease of $42,721 thousand in cash and cash equivalents and restricted cash during the nine months ended September 30, 2022[15] - Cash used in operating activities for the nine months ended September 30, 2022, increased by $8.4 million to $26.1 million, primarily due to a $39.4 million increase in net changes in operating assets and liabilities[199] - Cash used in financing activities for the nine months ended September 30, 2022, decreased by $33.0 million to $8.0 million[201] - As of September 30, 2022, total resources (cash and borrowings) amounted to $51.6 million, down from $95.3 million in 2021[202] Assets and Liabilities - Total assets decreased to $589.718 million as of September 30, 2022, down from $687.702 million at December 31, 2021[9] - Total liabilities were $520.484 million as of September 30, 2022, a decrease from $582.642 million at December 31, 2021[9] - The carrying value of notes payable decreased to $189,969,000 as of September 30, 2022, from $206,992,000 as of December 31, 2021[127] - Working capital deficit widened to $80.2 million as of September 30, 2022, compared to a deficit of $6.7 million in 2021[202] Shareholder Equity - Total stockholders' equity decreased from $105.060 million at January 1, 2022, to $69.234 million at September 30, 2022, representing a decline of approximately 34.1%[99] - The basic earnings per share for Q3 2022 was $(0.23), compared to $(0.46) in Q3 2021[11] - The company did not repurchase any shares of Class A Common Stock during the first nine months of 2022 and 2021[34] Legal Proceedings - The company is currently involved in various legal proceedings but does not expect these to have a material adverse effect on its business or financial position[90] - The company agreed to settle claims in lawsuits for a total payment of $4.0 million, contingent upon final court approval, with half to be paid within 30 days of approval and the balance nine months thereafter[95] Cinema Operations - The company operates 63 cinemas with a total of 515 screens across the U.S., Australia, and New Zealand[147] - Cinema attendance for the quarter and nine months is up compared to the same periods in 2021, indicating a recovery trend towards pre-pandemic levels[135] - The cinema exhibition industry is expected to see improved admissions and revenues in Q4 2022 with the release of major films like Black Panther: Wakanda Forever and Avatar 2: Way of the Water[137] - The company has converted 110 of its 238 U.S. auditoriums to luxury recliner seating as part of its renovation efforts[158] Real Estate Operations - Real estate revenue for Q3 2022 was $4.1 million, a 28% increase from $3.2 million in Q3 2021[170] - The Courtenay Central property in Wellington, New Zealand, covers 161,000 square feet and is strategically located near major attractions, with redevelopment plans ongoing despite COVID-19 challenges[167] - The company completed the landlord work for the 44 Union Square property, which is now fully leased to a national retailer[166] Future Outlook - The company anticipates opening an eight-screen complex under the Angelika Film Center brand in the second half of 2023[152] - The company has engaged CBRE as its exclusive broker for leasing the remainder of its 44 Union Square property in Manhattan[140]

Financial Performance - Total revenue for Q2 2022 was $64,511,000, a 79.5% increase from $36,033,000 in Q2 2021[11] - Net loss for Q2 2022 was $2,443,000 compared to a net income of $22,594,000 in Q2 2021[11] - Basic earnings per share for Q2 2022 was $(0.11), down from $1.04 in Q2 2021[11] - Comprehensive loss for Q2 2022 was $11,662,000, compared to a comprehensive income of $21,002,000 in Q2 2021[13] - For the six months ended June 30, 2022, the net income was a loss of $17.9 million compared to a net income of $44.7 million in the same period of 2021[15] - Net income attributable to Reading International, Inc. for the quarter decreased by $25.1 million, resulting in a loss of $2.4 million compared to a profit of $22.7 million in the prior year[178] Revenue Breakdown - Cinema revenue reached $61,770,000 in Q2 2022, up 88.9% from $32,715,000 in Q2 2021[11] - Cinema exhibition revenue for the quarter ended June 30, 2022, was $61.8 million, a significant increase from $32.7 million in the same quarter of 2021, representing an increase of 88.9%[18] - Real estate revenue for the six months ended June 30, 2022, was $8.2 million, up from $6.8 million in the same period of 2021, reflecting a growth of 21.0%[18] - The real estate segment revenue for the quarter was $4.0 million, a 17% increase from $3.4 million in the prior year[173] - Total revenue for the six months ended June 30, 2022, increased by $47.4 million to $104.7 million, an 83% increase compared to the same period in 2021[174] Operating Income and Expenses - Operating income for Q2 2022 was a loss of $1,572,000, an improvement from a loss of $12,532,000 in Q2 2021[11] - Total operating expense for the quarter was $52.975 million, a 56% increase from $33.930 million in the prior year[173] - Non-segment general and administrative expense for the quarter increased by $0.9 million to $4.7 million, attributed to higher salaries and legal fees[179] - Operating expenses for the quarter ended June 30, 2022, increased by $20.6 million to $52.1 million, and for the six months, they increased by $38.4 million to $91.9 million, due to higher film rent and occupancy expenses[188] Cash Flow and Liquidity - Cash and cash equivalents decreased to $49,905,000 as of June 30, 2022, from $83,251,000 at December 31, 2021[9] - The company experienced a net decrease in cash and cash equivalents of $27.1 million for the six months ended June 30, 2022[15] - Cash used in operating activities for the six months ended June 30, 2022, increased by $11.6 million to $17.6 million, driven by a $39.0 million increase in net changes in operating assets and liabilities[207] - Cash used in investing activities during the six months ended June 30, 2022, increased by $140.6 million to $3.7 million compared to the same period in 2021, primarily due to the absence of asset monetization proceeds[208] Assets and Liabilities - Total current assets decreased to $74,430,000 as of June 30, 2022, down from $100,306,000 at December 31, 2021[9] - Total liabilities decreased to $545,356,000 as of June 30, 2022, compared to $582,642,000 at December 31, 2021[9] - Total stockholders' equity decreased to $82,227,000 as of June 30, 2022, down from $105,060,000 at December 31, 2021[9] - Total borrowings as of June 30, 2022, amounted to $240.626 million, down from $248.948 million as of December 31, 2021[61] Impairment and Charges - An impairment charge of $1.5 million was recorded for certain sites that did not improve in performance, indicating ongoing challenges in asset recovery[27] - The impairment charge against certain cinema assets for the quarter was $1.5 million, contributing to the overall financial performance[176] Legal and Regulatory Matters - The company is currently involved in various legal proceedings but does not expect these to have a material adverse effect on its financial position[83] - The company agreed to settle claims from lawsuits for a total payment of $4.0 million, with the settlement amount to be paid in two installments[90] Cinema Operations and Developments - The cinema exhibition industry saw improved attendance and cash flow for the quarter and six months compared to the same periods in 2021[136] - All cinemas were open during the current reporting period, contrasting with nearly a quarter being closed during the same period in 2021[139] - The company operates 63 cinemas with a total of 515 screens across the United States, Australia, and New Zealand[151] - The company anticipates adding an eight-screen complex in South City Square, Brisbane by the end of 2022 and a five-screen Reading Cinemas in Busselton, Western Australia by the end of 2023[155] Stock and Equity - The 2020 Stock Incentive Plan has 1,250,000 shares of Class A Common Stock authorized for issuance, with 307,895 shares remaining available for future issuance as of June 30, 2022[99] - The stock repurchase program has $26.0 million available as of June 30, 2022, with the program extended to March 10, 2024[110]