Reading International(RDI) - 2025 Q2 - Quarterly Results

Executive Summary & Financial Highlights Second Quarter 2025 Financial Highlights The company reported significantly improved Q2 2025 results with a 29% revenue increase and positive operating income Q2 2025 Key Financial Results (YoY Change) | Metric | Q2 2025 (USD millions) | Q2 2024 (USD millions) | Change (%) | | :-------------------------- | :--------------------- | :--------------------- | :--------- | | Total Revenues | 60.4 | 46.8 | 29% | | Operating Income (Loss) | 2.9 | (7.7) | 138% (improvement) | | EBITDA | 6.3 | (3.6) | 276% (improvement) | | Basic loss per share | (0.12) | (0.57) | 79% (improvement) | | Net loss attributable to Reading | (2.7) | (12.8) | 79% (improvement) | Six Months 2025 Financial Highlights For the first half of 2025, the company demonstrated improved performance with revenue growth and reduced operating losses Six Months 2025 Key Financial Results (YoY Change) | Metric | H1 2025 (USD millions) | H1 2024 (USD millions) | Change (%) | | :-------------------------- | :--------------------- | :--------------------- | :--------- | | Total Revenues | 100.5 | 91.9 | 9% | | Operating Loss | (4.0) | (15.2) | 74% (improvement) | | EBITDA | 9.2 | (7.5) | 222% (improvement) | | Basic loss per share | (0.33) | (1.16) | 73% (improvement) | | Net loss attributable to Reading | (7.4) | (26.0) | 71% (improvement) | CEO Commentary The CEO highlighted record cinema box office success and strong Real Estate results, enabling debt reduction - The company's improved performance in Q2 2025 reinforces confidence in its long-term future, driven by record box office success from major movie releases[5] - The global Real Estate division delivered strong results, with operating income increasing 56% quarter-over-quarter and 67% year-over-year[7] - Strategic property monetizations, including the sale of Cannon Park for AU$32.0 million, reduced gross debt by $32.1 million[7] Currency Impact The weakening of the Australian and New Zealand dollars against the U.S. dollar negatively impacted reported results - Australian and New Zealand dollar average exchange rates weakened against the U.S. dollar by 2.7% and 1.9% respectively in Q2 2025[4] - For the first six months of 2025, these currencies weakened by 3.6% and 4.6% respectively against the U.S. dollar[4] - With 47% of total revenues from Australian and New Zealand businesses, currency weakness impacts U.S. reported operating results[4] Business Segment Performance Cinema Business The global cinema division experienced significant growth in Q2 2025, driven by strong box office performance - Q2 2025 global cinema revenue increased 32% to $56.8 million, and operating income increased by 218% to $5.5 million from a loss of $4.6 million in Q2 2024[10] - The company closed an underperforming U.S. cinema, now operating 469 screens in 58 theatres across three countries[10] - Efforts continued to reduce occupancy costs with landlords as revenue has not returned to pre-pandemic levels[10] Q2 2025 Performance Metrics Key performance indicators for the cinema business, including ticket prices and F&B sales, reached record highs - Average ticket price (ATP) in both Australia and New Zealand cinema divisions achieved their highest quarter ever[10] - U.S. cinema ATP achieved its highest second quarter ever, despite successful discount programs[10] Q2 2025 Food & Beverage Sales Per Person (SPP) | Region | F&B SPP (Q2 2025) | Historical Context | | :------- | :------------------ | :----------------- | | Australia | A$8.26 | Highest second quarter ever | | New Zealand | NZ$7.14 | Highest quarter ever | | U.S. | $9.13 | Highest quarter ever (excluding pandemic closures) and highest among publicly traded competitors | Real Estate Business The Real Estate business saw a significant increase in operating income, marking its best second quarter since 2018 - Global Real Estate revenue decreased slightly to $4.7 million, but operating income increased by 56% to $1.5 million[10] - U.S. Real Estate Revenues increased by 15% to $1.7 million due to improved performance of Live Theatre assets in NYC[10] - The combined Australian and New Zealand property portfolio has 59 third-party tenants with a 99% occupancy rate[10] Q2 2025 Performance & Property Monetization The division's strong operating income was bolstered by recent strategic property sales in the U.S, Australia, and New Zealand Recent Property Monetizations | Property | Sale Date | Proceeds | | :-------------------- | :-------- | :--------- | | Culver City building | Q1 2024 | $10.0 million | | Wellington, New Zealand | Q1 2025 | NZ$38.0 million | | Cannon Park, Australia | May 21, 2025 | AU$32.0 million | - The company retained the right to operate cinemas at the Wellington and Cannon Park locations under long-term leases[10] Financial Position and Liquidity Balance Sheet and Debt Management Total gross debt decreased by 14.4% from year-end 2024, primarily due to debt paydowns from property sales Balance Sheet Highlights (as of June 30, 2025) | Metric | June 30, 2025 (USD millions) | December 31, 2024 (USD millions) | Change (%) | | :------------------ | :--------------------------- | :----------------------------- | :--------- | | Cash and cash equivalents | 9.1 | 12.3 | (26.0%) | | Total gross debt | 173.4 | 202.7 | (14.4%) | | Total book value of assets | 438.1 | 471.0 | (7.0%) | - Debt reduction in H1 2025 included paying off a NZ$18.8 million loan and $6.1 million to Bank of America/Bank of Hawaii[11] - The Cannon Park sale proceeds were used to pay off an AU$20.0 million bridging facility and reduce other loans[11] - Maturity dates for key loans on 44 Union Square, Bank of America/Bank of Hawaii, and NYC Live Theatre assets were extended[11] Company Information About Reading International, Inc. Reading International is a diversified cinema and real estate company operating in the U.S, Australia, and New Zealand - Reading International, Inc. (NASDAQ: RDI) is an internationally diversified cinema and real estate company[14] - The company operates cinemas under Reading Cinemas, Consolidated Theatres, and Angelika brands, and live theatres[15] - Its operations and assets are located in the United States, Australia, and New Zealand, including signature property developments[14][15] Conference Call and Webcast A pre-recorded conference call discussing Q2 2025 results will be posted on the company's website by August 18, 2025 - A pre-recorded conference call and audio webcast will be posted on the corporate website on or before Monday, August 18, 2025[12] - The webcast will feature remarks from key executives including the CEO, CFO, and EVP of Global Operations[12] - A pre-recorded Q&A session will follow, with questions to be submitted by August 15, 2025[13] Legal & Non-GAAP Disclosures Cautionary Note Regarding Forward-Looking Statements This section disclaims that actual results may differ materially from forward-looking statements due to inherent risks - The earnings release contains forward-looking statements related to expected results, business strategy, and asset monetization[18] - No guarantees can be given that forward-looking statements will prove correct due to the unpredictability of influencing factors[19] - The company undertakes no obligation to publicly update forward-looking statements and advises against relying on them[20][21] Non-GAAP Financial Measures This section defines the company's use of non-GAAP measures like EBITDA to evaluate performance and compare to peers - Total segment operating income (loss) is used to evaluate business segment performance separate from non-operating factors[32] - EBITDA is used as an industry-wide comparative measure for financial performance and value in the cinema and real estate industries[33] - Adjusted EBITDA further adjusts for items considered external to core business or non-recurring[36] - These non-GAAP measures should not be considered substitutes for GAAP measures as they exclude significant costs[31][34][35] Consolidated Financial Statements Unaudited Consolidated Statements of Operations The statements present revenues, costs, and net income for the second quarter and six months ended June 30, 2025 and 2024 Unaudited Consolidated Statements of Operations (USD thousands) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :-------------------------------------------------------------------------------- | :------ | :------ | :------ | :------ | | Revenue | | | | | | Cinema | $56,782 | $42,942 | $93,186 | $84,213 | | Real estate | 3,596 | 3,867 | 7,361 | 7,648 | | Total revenue | 60,378 | 46,809 | 100,547 | 91,861 | | Operating income (loss) | 2,891 | (7,692) | (4,001) | (15,222) | | Interest expense, net | (4,354) | (5,377) | (9,096) | (10,662) | | Gain (loss) on sale of assets | 1,872 | 9 | 8,398 | (1,116) | | Net income (loss) attributable to Reading International, Inc. | (2,667) | (12,806) | (7,423) | (26,034) | | Basic earnings (loss) per share | (0.12) | (0.57) | (0.33) | (1.16) | Consolidated Balance Sheets The balance sheets provide a snapshot of assets, liabilities, and equity as of June 30, 2025, versus December 31, 2024 Consolidated Balance Sheets (USD thousands) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | ASSETS | | | | Cash and cash equivalents | $9,073 | $12,347 | | Total current assets | 21,271 | 57,042 | | Total assets | 438,075 | 471,011 | | LIABILITIES AND STOCKHOLDERS' EQUITY | | | | Total current liabilities | 130,451 | 161,626 | | Debt - current portion | 38,229 | 69,193 | | Debt - long-term portion | 106,449 | 105,239 | | Total liabilities | 446,503 | 475,801 | | Total stockholders' equity | (8,428) | (4,790) | Segment Results This section details revenue and operating income for the Cinema and Real Estate segments by geographic region Segment Revenue (USD thousands) | Segment | Region | Q2 2025 | Q2 2024 | % Change | H1 2025 | H1 2024 | % Change | | :-------- | :------- | :------ | :------ | :------- | :------ | :------ | :------- | | Cinema | | | | | | | | | | United States | $30,258 | $21,480 | 41 % | $48,553 | $42,785 | 13 % | | | Australia | 22,909 | 18,543 | 24 % | 38,591 | 35,867 | 8 % | | | New Zealand | 3,615 | 2,918 | 24 % | 6,042 | 5,561 | 9 % | | | Total | $56,782 | $42,941 | 32 % | $93,186 | $84,213 | 11 % | | Real estate | | | | | | | | | | United States | $1,700 | $1,483 | 15 % | $3,287 | $2,967 | 11 % | | | Australia | 2,741 | 3,177 | (14)% | 5,756 | 6,261 | (8)% | | | New Zealand | 212 | 353 | (40)% | 455 | 718 | (37)% | | | Total | $4,653 | $5,013 | (7)% | $9,498 | $9,946 | (5)% | Segment Operating Income (Loss) (USD thousands) | Segment | Region | Q2 2025 | Q2 2024 | % Change | H1 2025 | H1 2024 | % Change | | :-------- | :------- | :------ | :------ | :------- | :------ | :------ | :------- | | Cinema | | | | | | | | | | United States | $2,292 | $(4,426) | >100% | $(855) | $(7,868) | 89 % | | | Australia | 2,920 | (87) | >100% | 1,944 | (582) | >100% | | | New Zealand | 241 | (96) | >100% | (110) | (325) | 66 % | | | Total | $5,453 | $(4,609) | >100% | $979 | $(8,775) | >100% | | Real estate | | | | | | | | | | United States | $89 | $(204) | >100% | $231 | $(573) | >100% | | | Australia | 1,338 | 1,461 | (8)% | 2,882 | 2,921 | (1)% | | | New Zealand | 52 | (311) | >100% | (39) | (511) | 92 % | | | Total | $1,479 | $946 | 56 % | $3,074 | $1,837 | 67 % | | Total segment operating income (loss) | $6,932 | $(3,663) | >100% | $4,053 | $(6,938) | >100% | Reconciliation of EBITDA and Adjusted EBITDA to Net Income (Loss) This table reconciles Net Income (Loss) to the non-GAAP measures of EBITDA and Adjusted EBITDA Reconciliation of EBITDA and Adjusted EBITDA to Net Income (Loss) (USD thousands) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :------------------------------------------------ | :------ | :------ | :------ | :------ | | Net Income (loss) attributable to Reading International, Inc. | $(2,667) | $(12,806) | $(7,423) | $(26,034) | | Add: Interest expense, net | 4,354 | 5,377 | 9,096 | 10,662 | | Add: Income tax expense (benefit) | 1,225 | (156) | 753 | (379) | | Add: Depreciation and amortization | 3,380 | 4,011 | 6,756 | 8,216 | | EBITDA | $6,292 | $(3,574) | $9,182 | $(7,535) | | Adjustments for: None | — | — | — | — | | Adjusted EBITDA | $6,292 | $(3,574) | $9,182 | $(7,535) | Reconciliation of Total Segment Operating Income (Loss) to Income (Loss) before Income Taxes This table reconciles Total Segment Operating Income (Loss) to Income (Loss) before Income Taxes Reconciliation of Total Segment Operating Income (Loss) to Income (Loss) before Income Taxes (USD thousands) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :---------------------------------------------------- | :------ | :------ | :------ | :------ | | Segment operating income (loss) | $6,932 | $(3,663) | $4,053 | $(6,938) | | Unallocated corporate expense: | | | | | | Depreciation and amortization expense | (84) | (100) | (219) | (201) | | General and administrative expense | (3,957) | (3,929) | (7,835) | (8,083) | | Interest expense, net | (4,354) | (5,377) | (9,096) | (10,662) | | Equity earnings (loss) of unconsolidated joint ventures | 285 | 119 | 308 | 94 | | Gain (loss) on sale of assets | 1,872 | 9 | 8,398 | (1,116) | | Other (expense) income | (2,273) | (216) | (2,607) | 123 | | Income (loss) before income taxes | $(1,579) | $(13,157) | $(6,998) | $(26,783) |