Reading International(US:RDI)2025-11-14 20:29Financial Performance - Total revenue for Q3 2025 was $52.17 million, a decrease of 13.5% compared to $60.09 million in Q3 2024[10] - Cinema revenue decreased to $48.56 million in Q3 2025 from $56.36 million in Q3 2024, representing a decline of 13.1%[10] - Net loss for Q3 2025 was $4.31 million, an improvement from a net loss of $7.14 million in Q3 2024[10] - The company reported a comprehensive loss of $4.92 million for Q3 2025, compared to a comprehensive loss of $5.64 million in Q3 2024[12] - Basic earnings per share for Q3 2025 were $(0.18), compared to $(0.31) for Q3 2024[10] - The company reported a net loss attributable to Reading International, Inc. of $4,157,000 for the quarter ended September 30, 2025, compared to a net loss of $7,028,000 for the same quarter in 2024[46] - Net income attributable to noncontrolling interests was a loss of $148,000 for the quarter ended September 30, 2025, compared to a loss of $111,000 for the same quarter in 2024[103] Assets and Liabilities - Total assets decreased to $435.19 million as of September 30, 2025, down from $471.01 million at the end of 2024[9] - Current liabilities decreased to $111.49 million from $161.63 million at the end of 2024, a reduction of 30.9%[9] - Total liabilities decreased to $448.20 million as of September 30, 2025, from $475.80 million at the end of 2024[9] - Cash and cash equivalents at the end of Q3 2025 were $8.09 million, down from $12.35 million at the end of 2024[9] - The company has $16.5 million of debt due in twelve months, cash of $10.5 million, and negative working capital of $92.7 million[17] - Total borrowings decreased to $171.61 million as of September 30, 2025, down from $201.83 million as of December 31, 2024, representing a reduction of about 15%[77] Revenue Segments - The cinema exhibition segment generates revenue through various channels, including ticket sales, food and beverage, and online ticket sales[32] - Total segment revenue for the quarter ended September 30, 2025, was $53,122,000, a decrease of 14.5% from $61,255,000 in the same quarter of 2024[37] - Admissions revenue in the United States decreased to $13,784,000 for the quarter ended September 30, 2025, down 10.7% from $15,445,000 in the same quarter of 2024[39] - Concessions revenue in the United States was $9,276,000 for the quarter ended September 30, 2025, down 5.6% from $9,824,000 in the same quarter of 2024[39] - The total revenue for the nine months ended September 30, 2025, was $155,805,000, an increase of 0.3% from $155,414,000 in the same period of 2024[37] - The cinema segment's operating loss for the nine months ended September 30, 2025, was $(6,563,000), compared to an operating income of $3,234,000 in the same period of 2024[39] Operating Expenses - Total operating expenses for the quarter ended September 30, 2025, were $49,979,000, a decrease of 13.1% from $57,646,000 in the same quarter of 2024[37] - Operating expenses for the quarter ended September 30, 2025, decreased by $6.9 million to $43.7 million, mainly due to lower attendance leading to reduced variable costs[195] - Operating expenses for the nine months ended September 30, 2025, totaled $129.3 million, a decrease of $7.1 million compared to the prior year, driven by operational efficiency and cinema closures[196] Debt and Financing - The company plans to raise liquidity through refinancing and real estate asset monetization, having sold nine property assets for a total of $201.5 million since 2021[20] - The company repaid $10.7 million of its Westpac loan and $6.1 million of its Bank of America facility, reducing the balance to $8.7 million[19] - The company extended the maturity date of several loans, including a $20.4 million Valley National debt to October 1, 2026[19] - The effective interest rate on the Bank of America Credit Facility is 11.25%, with a maturity date extended to May 18, 2026[79] Real Estate Performance - The real estate segment in Australia reported steady performance, but revenues were impacted by unfavorable exchange rates and the monetization of the Cannon Park entertainment center[135] - Real estate rent revenue for Q3 2025 decreased by $0.3 million to $4.6 million compared to Q3 2024, primarily due to the sale of Wellington and Cannon Park assets[199] - For the nine months ended September 30, 2025, real estate rent revenue decreased by $0.8 million to $14.1 million, attributed to lower rental income from property sales, partially offset by increased Live Theatre rental and ancillary income in the U.S.[200] - The company sold its Wellington properties for $21.5 million (NZ$38.0 million) and Cannon Park properties for $20.7 million (AU$32.0 million) in 2025, using proceeds to pay down approximately $32.1 million in debt[137] Future Outlook - The company expects a strong fourth quarter with major releases like The Running Man and Zootopia 2, which are anticipated to drive significant box office results[134] - The company plans to launch new free to join and paid membership programs in the U.S. in the fourth quarter of 2025 to drive audience engagement[132] - The cinema segment experienced a decline in box office performance in Q3 2025 compared to Q3 2024, attributed to a weaker film slate and broader industry challenges[128] Operational Challenges - The company has faced significant operational challenges due to the COVID-19 pandemic, Hollywood strikes, and economic factors, necessitating a reevaluation of its real estate business plan[166] - The company is considering reducing, delaying, or eliminating planned capital expenditures if cash flow is insufficient[208] - Additional asset monetization and restructuring of debt or lease obligations are potential alternatives for liquidity[208]