Reading International(US:RDI)2023-11-20 23:30Financial Data and Key Metrics Changes - The company's Q3 2023 total revenue reached $66.6 million, a 30% increase compared to Q3 2022, marking the highest revenue since Q4 2019 [12][51] - Adjusted EBITDA for Q3 2023 was $6.1 million, reflecting a 59% increase from the same quarter last year [8][55] - The net loss attributable to Reading International decreased to $4.4 million, down by $0.8 million compared to Q3 2022, with a basic loss per share of $0.20 [52][81] Business Line Data and Key Metrics Changes - Global cinema revenue for Q3 2023 was $62.7 million, a 30% increase from Q3 2022, and represented the highest third quarter since Q4 2019 [13][40] - Real estate revenue for Q3 2023 was $5.1 million, a 24% increase year-over-year, with operating income rising over 700% to $900,000 [7][72] - US cinema operating income increased by $4.3 million to $300,000, with theater-level cash flow nearly 200% ahead of the same quarter last year [23][37] Market Data and Key Metrics Changes - The Australian cinema revenue was $24.2 million, a 21% increase compared to Q3 2022, marking the best third quarter since Q3 2019 [43] - New Zealand cinema revenues increased by 16% to $4.3 million in Q3 2023 [43] - The occupancy rate for third-party tenants in the real estate portfolio reached 97% [45] Company Strategy and Development Direction - The company aims to monetize built-in gains in real estate assets to ensure long-term viability [16] - Focus on reducing fixed expenses by renegotiating leases and closing unprofitable cinemas [42] - Continued investment in cinema management and operational performance to drive profitability [19][37] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the cinema industry's recovery, citing strong box office performances and a favorable movie slate [5][37] - Acknowledgment of potential headwinds from Hollywood strikes affecting future box office performance [15][22] - The company is actively pursuing asset sales to improve liquidity and address debt obligations [92] Other Important Information - The company closed two cinemas in Hawaii and another in California, focusing on underperforming locations [25] - The average ticket price in the US reached $12.81, the highest for a third quarter [23] - The company has extended its revolving corporate market loan facility to July 31, 2025, to maintain liquidity [58] Q&A Session Summary Question: Update on assets in Wellington, New Zealand - The company remains committed to redeveloping properties in Wellington, including Courtenay Central, which has been closed since January 2019 [61][89] Question: Can the company effectuate asset sales to address debt? - The company has extended loans and is confident that 2023 will end positively, improving market conditions [64][92] Question: Additional underperforming theaters for closure? - No additional closures have been made in Australia or New Zealand, but reviews are ongoing [65] Question: Status of the Culver City and Williamsport properties? - The Culver City property is expected to be sold in Q1 2024, while offers for Williamsport do not reflect fair value [98] Question: Plans for Minetta Lane and Orpheum Theater sites? - Future sales or redevelopment of these properties may be considered, but current market conditions do not favor such actions [101]