Reading International(US:RDI)2021-11-12 19:51Financial Data and Key Metrics Changes - For Q3 2021, consolidated total revenues increased by 212% to $31.8 million compared to the same period last year, representing 45% of Q3 2019 revenues [10][50] - The global debt balance was reduced by 16.5% to $238 million from December 31, 2020, due to the monetization of five real estate assets generating $141.9 million in cash [8][21] - Basic loss per share improved by almost 48% to a loss of $0.46 for Q3 2021, while adjusted EBITDA improved by $9.2 million compared to the prior year [23][57] Business Line Data and Key Metrics Changes - U.S. cinema revenues increased by over 2000% to $17 million in Q3 2021 compared to Q3 2020, with a significant attendance boost from major film releases [33] - Australian cinema revenues increased by 93% to $9.4 million compared to Q3 2020, despite a 42% decrease from Q2 2021 due to Delta variant lockdowns [34] - New Zealand cinema revenues increased by 45% to $2.4 million compared to Q3 2020, but decreased by 30% compared to Q2 2021 due to COVID-19 closures [38] Market Data and Key Metrics Changes - As of November 11, 2021, 55 of the 59 global cinemas were open, with closures primarily in New Zealand and Hawaii due to COVID restrictions [7] - The U.S. circuit generated the highest cinema attendance since February 2020 in October 2021, indicating a recovery trend [15] - The Australian circuit's opening day box office for "No Time to Die" exceeded the previous James Bond film by over 27% despite capacity restrictions [14] Company Strategy and Development Direction - The company continues to focus on its two business, three country diversified strategy, which has proven resilient during the pandemic [70] - Plans for future renovations include targeting three additional theaters in the U.S. starting in 2022, with an estimated cost of $8 million to $10 million [72] - The company aims to maintain a buy-and-hold strategy for real estate assets, having successfully monetized certain properties to strengthen its balance sheet [74] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the cinema industry's recovery, citing strong box office performances and a promising release schedule for Q4 2021 [39][40] - The company is actively managing theater-level cash flow and seeking further cooperation from landlords to manage occupancy costs during recovery [28][29] - Management highlighted the importance of preserving shareholder value through strategic asset monetization rather than diluting equity or increasing debt [70] Other Important Information - The company reported a Q3 2021 operating loss of just under $11 million, the best result in the last six quarters [23] - The average Australian and New Zealand dollars strengthened against the U.S. dollar by 2.6% and 5.8% respectively during Q3 2021, positively impacting revenues [50] - The company has no current plans to further monetize real estate assets, focusing instead on long-term value creation [74] Q&A Session Summary Question: What is the strategy regarding asset sales and stock repurchase? - The company focused on preserving shareholder value by monetizing assets that were not adversely impacted by COVID, generating $141.9 million in cash without taking on high-interest debt [69] Question: When will the refurbishment program restart and what are the plans for U.S. theaters? - The company has renovated eight cinemas since 2015 and plans to target three additional theaters for renovation starting in 2022, with costs estimated at $8 million to $10 million [72] Question: Are there plans to further monetize real estate assets? - Currently, there are no plans to further monetize real estate assets, as the company aims to maintain a buy-and-hold strategy while leveraging past asset sales to strengthen its financial position [74]