Revenue Performance - Total revenue for Q1 2023 was $45.807 million, an increase of 13.5% compared to $40.200 million in Q1 2022[10] - Cinema revenue increased to $41.987 million in Q1 2023, up 12.0% from $37.347 million in Q1 2022[10] - Real estate revenue rose to $3.820 million, a 33.9% increase from $2.853 million in Q1 2022[10] - Cinema exhibition revenue for Q1 2023 was $41.99 million, a 12% increase from $37.35 million in Q1 2022[153] - Real estate revenue increased by 22% to $5.07 million in Q1 2023, compared to $4.16 million in Q1 2022[153] - Total revenue for Q1 2023 reached $45.81 million, up 14% from $40.20 million in the same quarter last year[153] Net Income and Loss - Net loss attributable to Reading International, Inc. was $11.111 million in Q1 2023, an improvement from a net loss of $15.354 million in Q1 2022[10] - Basic and diluted earnings per share for Q1 2023 were both $(0.50), compared to $(0.70) in Q1 2022[10] - For the quarter ended March 31, 2023, the net income attributable to the company was $(11.1) million, compared to $(15.4) million for the same period in 2022, resulting in a basic and diluted loss per share of $(0.50) for both periods[39] - The net income attributable to Reading International, Inc. for Q1 2023 was a loss of $11.11 million, an improvement of 28% from a loss of $15.35 million in Q1 2022[153] - Net loss attributable to Reading International, Inc. for Q1 2023 decreased by $4.2 million to a loss of $11.1 million compared to Q1 2022[157] Assets and Liabilities - Total assets decreased to $560.198 million as of March 31, 2023, down from $587.055 million at the end of 2022[9] - Total liabilities decreased to $509.226 million as of March 31, 2023, compared to $523.776 million at the end of 2022[9] - Cash and cash equivalents at the end of Q1 2023 were $14.628 million, down from $29.947 million at the end of 2022[9] - The company reported cash of $14.6 million and negative working capital of $94.2 million as of March 31, 2023, with $48.1 million of debt maturing within the next twelve months[28] - The company reported total investments in unconsolidated joint ventures of $4,707,000 as of March 31, 2023, a decrease from $4,756,000 at the end of 2022[57] Operating Performance - Segment operating loss for cinema exhibition improved to $(4.612) million in Q1 2023 from $(7.216) million in Q1 2022[18] - The total segment operating loss decreased by 49% from $7.11 million in Q1 2022 to $3.61 million in Q1 2023[153] - Operating expenses for the cinema segment increased by $3.1 million to $42.9 million, primarily due to increased film rent and other operating expenses[164] - Cinema segment operating loss decreased by $2.6 million to a loss of $4.6 million, aided by a higher quantity and quality of films released[163] Cash Flow and Financing - Cash used in operating activities for Q1 2023 was $11.6 million, a decrease of $2.5 million compared to Q1 2022, driven by improved cinema performance and rental income recognition[178] - The company is currently cash flow negative and is relying on borrowings and monetizing non-core assets to support liquidity[126] - The company has $48.1 million of debt maturing, with $22.3 million due on July 3, 2023, and plans to refinance these loans[28] - The company reported a working capital deficit of $94.2 million as of March 31, 2023, compared to a deficit of $74.2 million in the previous year[181] Market and Industry Trends - The company believes that the global cinema industry will continue to recover in 2023 and 2024, supported by an increased number of movie releases and improved quality of titles[30] - The cinema industry is experiencing a recovery, with notable box office successes such as "Avatar: The Way of Water," which has become the third highest-grossing film of all time[119] - The release of the "Super Mario Brothers Movie" achieved the biggest worldwide opening for an animated film and became the first billion-dollar grossing film of 2023[121] - The cinema industry is reviewing and culling underperforming locations, with a focus on markets that are not overscreened[116] Real Estate Operations - The company’s real estate operating segment has been less impacted by the COVID-19 pandemic, generating near-to-expected cash flows[26] - Real estate segment operating income for Q1 2023 increased by $0.9 million to $1.0 million compared to the same period in the prior year[169] - Total operating expense for the real estate segment increased by $0.1 million to $2.2 million, related to increases in utilities, insurance, and security[170] Cost Management and Efficiency - The company has ongoing cost-reduction efforts in its cinema operating segment, including limiting hours of operation and increasing reliance on automation[25] - The company is focusing on increasing automation and self-service options at cinemas to reduce labor costs[118] - The company has made no provision for potential settlement amounts in litigation where it is the plaintiff until received, reflecting a conservative approach to legal costs[82] Legal and Compliance - The company accrued a settlement amount of $4.0 million related to California employment litigation, with payments scheduled for May 18, 2023 ($1,351,000), February 19, 2024 ($1,351,000), and the balance on December 2, 2024[86] - The company has accrued for probable damages in litigation where it is the defendant, as permitted under ASC 450-20 Loss Contingencies[82] Shareholder Information - The company has 1,250,000 shares of Class A Common Stock authorized for issuance under the 2020 Stock Incentive Plan, with 234,955 shares remaining available for future issuance as of March 31, 2023[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 as of March 31, 2023[101]
Reading International(RDIB) - 2023 Q1 - Quarterly Report