Reading International(US:RDI)2023-08-14 21:18Financial Performance - Total revenue for Q2 2023 was $65,055,000, a slight increase from $64,511,000 in Q2 2022, with cinema revenue at $61,056,000 and real estate revenue at $3,999,000[10] - Operating income for Q2 2023 was $1,789,000, compared to an operating loss of $1,572,000 in Q2 2022[10] - Net loss for Q2 2023 was $2,861,000, compared to a net loss of $2,443,000 in Q2 2022, resulting in a basic and diluted loss per share of $0.12[10] - Comprehensive loss for Q2 2023 was $3,602,000, compared to a comprehensive loss of $11,662,000 in Q2 2022[12] - 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 higher revenues from U.S. cinemas and rent income from the 44 Union Square property[159] - For the six months ended June 30, 2023, total revenue rose by 6% to $110.9 million, attributed to improved cinema performances and rent income from the 44 Union Square property[160] 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[9] - Total liabilities decreased to $504,676,000 as of June 30, 2023, compared to $523,776,000 at the end of 2022[9] - Cash and cash equivalents decreased to $15,511,000 as of June 30, 2023, down from $29,947,000 at the end of 2022[9] - The company’s retained earnings deficit increased to $(62,705,000) as of June 30, 2023, compared to $(48,816,000) at the end of 2022[9] - The company reported a decrease in total current liabilities to $128,203,000 as of June 30, 2023, from $121,664,000 at the end of 2022[9] Cash Flow and Operating Activities - Net cash used in operating activities for the six months ended June 30, 2023, was $8,808,000, an improvement from $17,557,000 in the same period of 2022[14] - 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] - Cash used in investing activities for the same period was $3.4 million, a slight decrease from $3.7 million in the prior year[192] Debt and Financing - The company has $48.5 million of debt maturing within the next twelve months, with $22.2 million due on October 3, 2023[29] - 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 debt-to-equity ratio increased to 4.49 as of June 30, 2023, from 3.41 in 2022[196] - The company has contractual obligations totaling $520.1 million as of June 30, 2023, including debt and operating leases[196] Cinema Operations - Cinema exhibition revenue for Q2 2023 was $61.056 million, a decrease of 1.15% from $61.770 million in Q2 2022[17] - The global cinema segment reported an operating income of $4.474 million, the highest since Q4 2019, driven by successful films like "Barbie" and "Oppenheimer" in July 2023[23] - The second quarter of 2023 saw a strong film slate with significant contributions from franchise films and original releases, indicating a recovery in cinema attendance[125] - As of June 30, 2023, the company operates 62 cinemas with a total of 508 screens across the U.S., Australia, and New Zealand[136] - The cinema industry is expected to benefit from a compelling film slate for the remainder of the year, subject to the impact of Hollywood strikes[121] Real Estate Operations - Real estate revenue increased by 29.4% to $5.217 million in Q2 2023 from $4.032 million in Q2 2022[17] - The company classified its Culver City administrative building as held for sale with a book value of $11.2 million, expecting to complete the sale within 12 months[45] - 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 Expenses - Total operating expenses for the quarter increased by 1% to $53.5 million, with cinema exhibition expenses slightly rising and real estate expenses decreasing by 5%[158] - Operating expenses for the quarter ended June 30, 2023, increased by $0.5 million to $52.6 million compared to the same quarter in the prior year[175] - Depreciation, amortization, impairment, and general and administrative expenses for the quarter ended June 30, 2023, decreased by $2.3 million to $4.0 million compared to the same quarter in the prior year[176] Stock and Equity - Total stockholders' equity at June 30, 2023, was $47,566,000, down from $63,279,000 at January 1, 2023, reflecting a decrease of approximately 25%[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[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] Legal and Regulatory Matters - The company is involved in legal proceedings and has accrued estimates for probable losses related to these claims[198] - General Distributors Limited arbitration settled with no payment, terminating the Agreement to Lease and waiving all claims[89] Market Conditions and Challenges - The company faces macroeconomic challenges, including increased interest rates and inflation, impacting its financial strategies[186] - The ongoing Hollywood strikes may impact future movie releases, affecting the cinema segment's performance[24] - 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]