Reading International(RDI) - 2020 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Consolidated total revenues for 2020 decreased dramatically to $77.9 million from $276.8 million in 2019, resulting in an operating loss of $61.3 million and a net loss of $65.2 million [10][76] - For Q4 2020, consolidated total revenues decreased 81% to $15 million compared to Q4 2019, leading to a Q4 operating loss of $12.7 million and a net loss of $17.4 million [10][76] - Adjusted EBITDA for Q4 2020 was negative $7.8 million, a decrease of $16.1 million compared to the same period last year [83] Business Line Data and Key Metrics Changes - Global cinema total revenues for Q4 2020 were $12.1 million, down from $65.3 million in Q4 2019, with an operating loss of $12.7 million compared to an operating income of $6.8 million in Q4 2019 [24][76] - The real estate segment saw a 44% decrease in total revenue to $3 million for Q4 2020, with an operating loss of $1 million [57] Market Data and Key Metrics Changes - As of December 31, 2020, 74% of global cinemas were open and trading, with 100% of theaters in Australia and New Zealand operational, while 79% of U.S. cinemas were open [25][37] - The box office for the opening weekend of "Godzilla vs. Kong" in the U.S. grew 77% compared to the next highest weekend since March 2020, while in Australia and New Zealand, it grew 48% and 58% respectively [8][9] Company Strategy and Development Direction - The company is focused on recovery from the COVID-19 pandemic, leveraging its diversified strategy in cinemas and real estate across Australia, New Zealand, and the U.S. [11][12] - Management has emphasized the importance of maintaining liquidity and has not diluted equity or sought bankruptcy protection during the crisis [23] - The company plans to continue expanding its private screening program and has launched a streaming platform, Angelika Anywhere, to adapt to changing consumer preferences [35][36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing the strong performance of "Godzilla vs. Kong" and the ongoing vaccine rollout as positive indicators for recovery [6][22] - The company believes that the exhibition business will remain viable despite the rise of streaming, as long as compelling content is delivered [48][49] - Future film release schedules are expected to be packed with potential blockbusters, which is anticipated to drive cinema attendance [50][52] Other Important Information - The company successfully sold two non-income producing assets for a total of $67.1 million, which will help improve liquidity [13][54] - The management team has implemented significant cost reductions, including a 33% decrease in corporate G&A expenses compared to 2019 [19] Q&A Session Summary Question: What are the plans for the former railroad property adjacent to Reading Viaduct in Philadelphia? - The company is contesting the lawsuit regarding the property and exploring all available options for these assets [98][99] Question: Can you provide details on the post-tax amount for the two divestitures? - The company sold land in Manukau, New Zealand for NZD 77 million and land in Coachella, California for $11 million, with available cash after tax being approximately NZD 70 million and USD 5 million respectively [100][101] Question: When will capital expenditures return to normalized levels? - Capital expenditures will return to normalized levels only after the cinema and real estate segments stabilize and return to pre-COVID-19 operating levels [102]