Revenue Performance - Total revenue for Q1 2024 was $45,052,000, a decrease of 1.65% from $45,807,000 in Q1 2023[10]. - Cinema revenue decreased to $41,271,000 in Q1 2024 from $41,987,000 in Q1 2023, a decline of 1.7%[10]. - Real estate revenue was $3,781,000 in Q1 2024, slightly down from $3,820,000 in Q1 2023[10]. - Total revenue for the quarter ended March 31, 2024, decreased by $0.8 million to $45.1 million compared to the same period in 2023, primarily due to lower cinema operations and decreased property rent revenue[163]. - Cinema exhibition revenue for the quarter was $41.3 million, a decrease of $0.7 million from the prior year, attributed to lower food and beverage revenues and weakened foreign exchange rates[171]. Net Loss and Earnings - Net loss attributable to Reading International, Inc. was $13,228,000 in Q1 2024, compared to a net loss of $11,111,000 in Q1 2023, representing a 19.1% increase in loss[10]. - Basic and diluted earnings per share for Q1 2024 were both $(0.59), compared to $(0.50) in Q1 2023[10]. - Comprehensive loss for Q1 2024 was $15,768,000, compared to a comprehensive loss of $12,403,000 in Q1 2023, an increase of 27.0%[12]. - Net loss attributable to Reading International, Inc. increased by $2.1 million to $13.2 million for the quarter ended March 31, 2024, primarily due to increased interest expense and a loss on the sale of the Culver City office building[167]. Assets and Liabilities - Total current assets decreased to $20,283,000 as of March 31, 2024, from $38,710,000 as of December 31, 2023, a decline of 47.5%[9]. - Total liabilities decreased to $477,132,000 as of March 31, 2024, from $500,055,000 as of December 31, 2023, a reduction of 4.6%[9]. - Cash and cash equivalents decreased to $7,501,000 as of March 31, 2024, from $12,906,000 as of December 31, 2023, a decline of 42.0%[9]. - As of March 31, 2024, the company had $41.9 million of debt due within twelve months and cash of $7.5 million, indicating negative working capital of $114.6 million[27]. - Total borrowings decreased to $194,544,000 as of March 31, 2024, down 7% from $208,847,000 at the end of 2023[67]. Operating Performance - Operating income (loss) for Q1 2024 was $(7,531,000), slightly improved from $(7,880,000) in Q1 2023[10]. - The total cost of operating property as of March 31, 2024, was $463.7 million, with accumulated depreciation of $209.9 million, resulting in net operating property of $253.8 million[39]. - The total segment operating loss improved by $0.3 million, from a loss of $3.6 million to a loss of $3.3 million, mainly due to reduced operating expenses in the U.S. cinema circuit[164]. - Total operating expenses for the quarter decreased by $1.0 million to $41.9 million, driven by lower occupancy and other operating expenses in the U.S. and New Zealand[174]. Real Estate and Investments - The company’s real estate operating segment has been less impacted by the COVID-19 pandemic and is generating expected cash flows[25]. - The company classified approximately 26.6 acres of industrial land in Williamsport, Pennsylvania, as held for sale, with a current book value of $460,000[47]. - The company is exploring monetization of certain real estate assets to support liquidity needs due to upcoming debt maturities[126]. - Real estate revenue for Q1 2024 decreased by $0.1 million to $4.9 million, primarily due to intercompany rent income loss from property sales[177]. Cinema Operations and Market Conditions - The company experienced soft cinema revenues and increasing costs related to inventory, labor, and utilities, exacerbated by the 2023 Hollywood strikes and rising interest rates, which increased from 0.25% to 5.5% between March 2022 and July 2023[23][24]. - The cinema business is impacted by factors such as COVID-19, the 2023 Hollywood strikes, and macroeconomic conditions, affecting profitability compared to pre-pandemic levels[110]. - The aftermath of the 2023 Hollywood strikes is expected to impact operations throughout 2024, with several notable film releases postponed to 2025[111]. - The company is addressing post-COVID challenges by improving automated and self-service options, enhancing food and beverage offerings, and expanding alternative content programs[113]. Cash Flow and Financing Activities - Cash used in operating activities for Q1 2024 decreased by $8.8 million to $2.8 million compared to $11.6 million in the same period of the prior year[188]. - Cash provided in investing activities for Q1 2024 was $7.6 million, a significant increase from cash used of $1.5 million in Q1 2023, mainly due to proceeds from property sales[189]. - Cash used in financing activities for Q1 2024 increased by $9.8 million to $11.2 million, primarily due to the payoff of an $8.4 million loan following a property sale[190]. Stockholder Equity and Compensation - The company’s total stockholders' equity decreased from $32,996 thousand at January 1, 2024, to $17,728 thousand by March 31, 2024[86]. - The company recorded a compensation expense of $49,000 for stock options in the first quarter of 2024, significantly higher than the $9,000 recorded in the same quarter of 2023[93]. - Compensation expense for the three months ended March 31, 2024, was $628,000, compared to $434,000 for the same period in 2023, with total unrecognized compensation expense related to non-vested RSUs at $3.0 million[96]. Legal and Regulatory Matters - The company has accrued estimates of probable and estimable losses related to ongoing legal proceedings, although it does not expect these to materially affect its financial position[82]. - The company is currently involved in legal proceedings and has accrued estimates of probable losses for resolution[196]. Future Outlook - The company believes that the global cinema industry will improve in the latter half of 2024 and 2025, supported by anticipated releases of major films[29]. - The company expects to face reduced consumer demand due to inflationary pressures and the ongoing impact of the COVID-19 pandemic[205]. - The company anticipates challenges in cinema attendance due to increased ticket prices and competition from alternative entertainment options[205].
Reading International(RDIB) - 2024 Q1 - Quarterly Report