Reading International(RDIB) - 2025 Q2 - Quarterly Results

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