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]
Reading International(RDIB) - 2025 Q1 - Quarterly Report