Financial Performance - Total revenue for Q1 2022 was $40.2 million, a 88.6% increase from $21.3 million in Q1 2021[11] - Cinema revenue increased to $37.3 million in Q1 2022, up 106.5% from $18.1 million in Q1 2021[11] - Net loss for Q1 2022 was $15.5 million, compared to a net income of $22.1 million in Q1 2021[11] - Basic earnings per share for Q1 2022 were $(0.70), compared to $0.87 in Q1 2021[11] - Comprehensive loss for Q1 2022 was $(11.8) million, compared to a comprehensive income of $16.4 million in Q1 2021[13] - Net loss attributable to Reading International, Inc. for Q1 2022 was $15,354,000, compared to a net income of $18,965,000 in Q1 2021[34] - The total stockholders' equity decreased from $105,060,000 on January 1, 2022, to $93,494,000 on March 31, 2022, primarily due to a net loss of $15,354,000 during the period[97] Assets and Liabilities - Total current assets decreased to $83.5 million as of March 31, 2022, down from $100.3 million at the end of 2021, a decline of 16.7%[9] - Total liabilities decreased slightly to $577.1 million as of March 31, 2022, from $582.6 million at the end of 2021[9] - Cash and cash equivalents at the end of Q1 2022 were $67.3 million, down from $83.3 million at the end of 2021, a decrease of 19.2%[9] - Total stockholders' equity decreased to $93.5 million as of March 31, 2022, down from $105.1 million at the end of 2021, a decline of 11.0%[9] - As of March 31, 2022, total borrowings amounted to $238.142 million, a slight increase from $236.948 million as of December 31, 2021[62] Operating Performance - Operating income for Q1 2022 was a loss of $11.8 million, compared to a loss of $14.0 million in Q1 2021[11] - Cinema exhibition segment reported an operating loss of $7,216,000 for Q1 2022, an improvement from a loss of $8,275,000 in Q1 2021[18] - The total segment operating loss decreased from $9.6 million to $7.1 million, a reduction of 26% due to easing government restrictions and improved film content[173] - Operating expenses for the cinema segment increased by $17.8 million to $39.8 million, driven by higher film rent and occupancy costs[183] - General and administrative expenses for the non-segment increased by 7% to $4.4 million, attributed to higher salaries and wages[175] Cash Flow and Investments - Cash used in operating activities increased by $10.3 million to $14.1 million for the three months ended March 31, 2022, primarily due to a $22.3 million increase in net changes in operating assets and liabilities[197] - Cash used in investing activities increased by $65.7 million to $1.8 million for the three months ended March 31, 2022, compared to the same period in 2021[198] - Cash used in financing activities decreased by $44.1 million to $1.6 million for the three months ended March 31, 2022[199] Debt and Financing - The debt-to-equity ratio increased to 2.55 as of March 31, 2022, compared to 2.26 in the previous year[200] - Total contractual obligations amount to $585.668 million as of March 31, 2022[205] - Debt repayments scheduled for 2022 total $31.582 million, increasing to $115.764 million in 2023[205] - Estimated interest on debt is expected to total $21.929 million, with $7.889 million due in 2022[205] Real Estate and Asset Management - The company has completed plans to refinance certain properties and monetize real estate assets to alleviate concerns regarding going concern status[26] - The sale of the Auburn/Redyard property was completed for $69.6 million, resulting in a net gain of $38.726 million after direct costs[41] - The Manukau property was sold for $56.1 million, yielding a net gain of $40.926 million after direct costs[43] - The Coachella land sale generated a net gain of $6.348 million from a sales price of $11 million[45] - The Royal George Theatre was sold for $7.075 million, resulting in a net gain of $4.956 million after direct costs[47] Legal and Regulatory Matters - The company agreed to settle California employment litigation for a total payment of $4.0 million, contingent upon final court approval[92] - The company has accrued estimates of probable losses for ongoing legal proceedings, although it believes these will not materially affect its financial position[88] - Legal proceedings are ongoing, with accrued estimates for probable losses related to these claims[207] COVID-19 Impact - The company continues to face challenges in cinema operations due to COVID-19, with patron attendance not returning to pre-pandemic levels[24] - The company continues to face risks associated with COVID-19, including delayed releases of major motion pictures and government-mandated restrictions[140] - The company reported that no cinemas are currently closed due to COVID-19, with only one cinema in the U.S. and one in New Zealand closed for unrelated reasons[160] Future Outlook and Developments - The company anticipates adding an eight-screen complex in Brisbane, QLD by the end of 2022 and a five-screen Reading Cinema in Busselton, WA by the end of 2023[152] - The company is focused on prudent development of its real estate assets as it emerges from the pandemic, with ongoing projects in New York and Wellington, New Zealand[163] - The company has upgraded its cinema circuits to include digital formats in all 63 locations and 515 screens[153]
Reading International(RDIB) - 2022 Q1 - Quarterly Report