Revenue Performance - Total revenue for Q2 2023 was $65,055,000, a slight increase of 0.8% compared to $64,511,000 in Q2 2022[10] - Total revenue for the six months ended June 30, 2023, was $110.861 million, up 5.5% from $104.712 million in the same period of 2022[17] - 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 increased revenues from U.S. cinemas and rent income from the 44 Union Square property[159] - For the six months ended June 30, 2023, revenue rose by 6% to $110.9 million, attributed to better cinema performances and rent income from the 44 Union Square property[160] Cinema Revenue - Cinema revenue decreased to $61,056,000 in Q2 2023 from $61,770,000 in Q2 2022, representing a decline of 1.2%[10] - Cinema exhibition revenue for Q2 2023 was $61.056 million, a decrease of 1.2% from $61.770 million in Q2 2022[17] - For the quarter ended June 30, 2023, cinema revenue decreased by $0.7 million to $61.1 million compared to the same period in the prior year, despite a 12% increase in U.S. cinema revenue[171] - For the six months ended June 30, 2023, cinema revenue increased by $3.9 million to $103.0 million compared to the same period in the prior year, primarily driven by increased attendance in the U.S. cinema circuit[172] Real Estate Revenue - Real estate revenue increased significantly to $3,999,000 in Q2 2023 from $2,741,000 in Q2 2022, marking a growth of 46.0%[10] - Real estate revenue for Q2 2023 was $5.217 million, an increase of 29.4% from $4.032 million in Q2 2022[17] - 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 Income and Loss - Operating income for Q2 2023 was $1,789,000, compared to an operating loss of $1,572,000 in Q2 2022[10] - Segment operating income for cinema exhibition in Q2 2023 was $4.474 million, an increase of 29.6% from $3.452 million in Q2 2022[17] - Total segment operating income for the quarter increased by 71% to $5.8 million, primarily due to improved operating income from U.S. cinemas and absence of impairment expenses incurred in the prior year[162] - For the six months ended June 30, 2023, total segment operating income was $2.2 million, a $5.9 million improvement from a loss of $3.7 million in the prior year[163] Net Loss and Earnings Per Share - Net loss for Q2 2023 was $2,861,000, compared to a net loss of $2,443,000 in Q2 2022, indicating a worsening of 17.1%[12] - Basic earnings per share for Q2 2023 was $(0.12), compared to $(0.11) in Q2 2022[10] - The net income attributable to Reading International, Inc. for the quarter ended June 30, 2023, was a loss of $2.778 million, compared to a loss of $2.436 million in the same quarter of 2022[40] - For the six months ended June 30, 2023, net loss decreased by 22% to $13.9 million from $17.8 million in the prior year, primarily due to better segment results and decreased G&A expenses[166] 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, a reduction of 5.9%[9] - Total liabilities decreased to $504,676,000 as of June 30, 2023, down from $523,776,000 at the end of 2022, a decline of 3.6%[9] - Cash and cash equivalents decreased to $15,511,000 as of June 30, 2023, compared to $29,947,000 at the end of 2022, a drop of 48.3%[9] - The company has $48.5 million of debt maturing within the next twelve months, with $22.2 million due on October 3, 2023[29] Cash Flow and Working Capital - 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] - Working capital deficit was reported at $81.9 million as of June 30, 2023, compared to a deficit of $74.2 million in 2022[196] - Total resources at period end were $24.4 million, a decrease from $41.9 million in 2022[196] - Cash used in investing activities for the six months ended June 30, 2023, was $3.4 million, a slight decrease from $3.7 million in the prior year[192] Debt and Financing - 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 current portion of debt increased to $47,259,000 in June 2023 from $37,279,000 in December 2022[66] - The Bank of America facility requires monthly repayments of $725,000 starting May 2023, with a maturity date extended to September 4, 2024[67] - The Union Square loan facility of $55,000,000 has a variable interest rate of one month LIBOR plus 6.9%, with a current effective rate of 12.06%[71][72] Market Conditions and Future Outlook - The ongoing Hollywood strikes may impact future movie release schedules, affecting the cinema segment's performance[24] - The company believes the global cinema industry will continue to recover into 2024 and 2025, supported by an increased number of movie releases[31] - 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] - The cinema industry is expected to benefit from a compelling film slate for the remainder of the year, subject to the impact of the Hollywood Strikes[121] Legal and Regulatory Matters - The company settled California employment litigation for a total payout of $4,000,000, with payments scheduled through December 2024[88] - The company is involved in legal proceedings and has accrued estimates of probable losses related to these claims[198] Stock and Equity - Total stockholders' equity at June 30, 2023, was $47,566,000, down from $63,279,000 at January 1, 2023, indicating a decrease of approximately 25%[92] - The company repurchased 1,792,819 shares of Class A Common Stock at an average price of $13.39 per share, with a total authorized repurchase amount remaining 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] Operational Developments - The company plans to add two new cinemas in Australia by the end of 2023, totaling 13 screens, as part of broader shopping center developments[139] - The company continues to review and cull underperforming cinemas in the U.S. while expanding in markets perceived as underserved[119] - The company has liquor licenses in 100% of its operating cinemas in the U.S., with five pending in Australia and two in New Zealand[144]
Reading International(RDIB) - 2023 Q2 - Quarterly Report