Financial Performance - Total revenue for Q3 2023 was $66.563 million, a 30% increase from $51.196 million in Q3 2022[10] - Cinema revenue increased to $62.688 million in Q3 2023, up 30% from $48.359 million in Q3 2022[10] - Net loss for Q3 2023 was $4.465 million, compared to a net loss of $5.299 million in Q3 2022, showing an improvement[10] - Basic earnings per share for Q3 2023 was $(0.20), an improvement from $(0.23) in Q3 2022[10] - Comprehensive loss for Q3 2023 was $(6.125) million, compared to $(13.469) million in Q3 2022[12] - For the nine months ended September 30, 2023, net income was a loss of $18,650,000 compared to a loss of $23,195,000 in the same period of 2022, indicating an improvement of approximately 19%[14] - Total revenue for the quarter ended September 30, 2023, increased by $15.4 million to $66.6 million, a 30% increase compared to the same period in 2022[148] - For the nine months ended September 30, 2023, total revenue increased by $21.5 million to $177.4 million, a 14% increase year-over-year[149] Assets and Liabilities - Total assets decreased to $532.597 million as of September 30, 2023, down from $587.055 million at the end of 2022[9] - Total liabilities decreased to $490.542 million as of September 30, 2023, down from $523.776 million at the end of 2022[9] - Cash and cash equivalents decreased to $11.925 million as of September 30, 2023, from $29.947 million at the end of 2022[9] - Retained earnings deficit increased to $(67.104) million as of September 30, 2023, compared to $(48.816) million at the end of 2022[9] - As of September 30, 2023, total borrowings amounted to $206.855 million, a decrease from $213.664 million as of December 31, 2022, representing a reduction of approximately 3.8%[63] - The current portion of debt increased to $40.402 million from $37.279 million, while the long-term portion decreased to $138.560 million from $148.688 million[63] - The debt-to-equity ratio increased to 4.96 as of September 30, 2023, compared to 3.41 in 2022[180] - Working capital deficit was reported at $85.7 million as of September 30, 2023, worsening from a deficit of $74.2 million in 2022[180] Operating Income and Expenses - Operating income for Q3 2023 was $1.019 million, compared to an operating loss of $6.731 million in Q3 2022[10] - Total segment operating income for the quarter was $5.3 million, a significant improvement from a loss of $2.3 million in the same quarter of the previous year[150] - The company reported a total segment operating income of $7.5 million for the nine months, a turnaround from a loss of $6.0 million in the same period of 2022[151] - Operating expenses for the quarter increased by $7.9 million to $54.5 million, driven by increased film rent expense and food and beverage costs[163] - Operating expenses for the nine months increased by $11.5 million to $149.9 million compared to the same time period in the prior year[163] Cash Flow and Investments - The company reported a net cash used in operating activities of $6,366,000 for the nine months ended September 30, 2023, significantly improved from $26,114,000 in the same period of 2022[14] - Cash used in investing activities during the nine months ended September 30, 2023, was $6.2 million, remaining relatively flat compared to $6.4 million in the prior year[179] - The company has paid down institutional debt by $54.4 million since March 31, 2020, as part of its financing strategy[172] Real Estate Revenue - Real estate revenue for the quarter ended September 30, 2023, was $5,056,000, a 24% increase from $4,070,000 in 2022; for the nine months, it rose to $15,338,000 from $12,265,000, reflecting a growth of 25%[17] - Real estate revenue for Q3 2023 increased by approximately $1.0 million to $5.1 million compared to Q3 2022, driven by rental income from the 44 Union Square property[167] - For the nine months ended September 30, 2023, real estate revenue rose by $3.1 million to $15.3 million, primarily due to rental income from the 44 Union Square property[168] Debt Management - The company has $58.6 million of debt maturing within the next twelve months, necessitating refinancing and improved cash flows[28] - The loan maturity for Cinemas 123 has been extended to October 1, 2024, following a refinance on September 29, 2023, indicating progress in managing debt obligations[29] - The company has $41.5 million in debt coming due in the next 12 months, with $108.3 million in debt extensions negotiated for 2023[174] Market and Operational Strategy - The cinema segment continues to recover, with notable box office successes from films like Barbie and Oppenheimer, although it has not yet returned to pre-pandemic levels[23] - The company is actively pursuing cost-reduction strategies in its cinema operations, including minimizing capital expenditures and renegotiating rent obligations[24] - The company is actively closing non-performing cinemas in the U.S. while expanding its presence in Australia and New Zealand, indicating a strategic shift in market focus[108] - The company is addressing rising operational costs and labor shortages by improving automated services and focusing on food and beverage sales[107] Legal and Regulatory Matters - The company has accrued estimates of probable and estimable losses for ongoing legal claims, including legal costs[78] - The company does not currently believe that its exposure under applicable environmental laws is material in amount[79] - The company has ongoing claims related to asbestos exposure, but the known exposure is not considered material[81] Stock and Compensation - The company’s share-based compensation expense for the quarter ended September 30, 2023, was $614,000[83] - As of September 30, 2023, there were 278,193 shares of Class A Common Stock available for issuance under the 2020 Stock Incentive Plan[85] - The total unrecognized estimated compensation expense related to non-vested stock options was $9,000, expected to be recognized over a weighted average vesting period of 0.25 years[89] Foreign Currency and Exchange Rates - The average Australian dollar exchange rate against the U.S. dollar decreased by 4.1% in Q3 2023 compared to the same period in 2022, negatively impacting segment operating income[152] - The company is exposed to risks from fluctuating foreign currency exchange rates, which could materially affect financial position[203] - Approximately 35.4% and 8.5% of the company's assets were invested in assets denominated in Australian dollars and New Zealand dollars, respectively, including approximately $6.4 million in cash and cash equivalents as of September 30, 2023[204]
Reading International(RDIB) - 2023 Q3 - Quarterly Report