Reading International(US:RDI)2023-08-14 19:00Financial Data and Key Metrics Changes - For Q2 2023, the company's global total revenue reached $65.1 million, the highest since Q4 2019, representing 85% of Q2 2019 revenue [6] - Global operating income for Q2 2023 was $1.8 million, over 200% higher than Q2 2022, marking the highest since Q4 2019 [7] - The net loss attributable to the company increased to $2.8 million for Q2 2023, a $0.3 million increase from the previous year [60] - Adjusted EBITDA for Q2 2023 decreased by $1 million to $6.7 million, primarily due to weakened cinema operations in Australia and New Zealand [65] Business Line Data and Key Metrics Changes - Global cinema revenue for Q2 2023 was $61.1 million, a 1% decrease from Q2 2022 but 84% of Q2 2019 revenue [10][19] - Real estate revenue for Q2 2023 was $4 million, a 46% increase compared to Q2 2022, and the highest since Q4 2019 [13] - U.S. cinema revenue increased by 12% to $34 million compared to Q2 2022, marking the best performance since Q4 2019 [30] Market Data and Key Metrics Changes - The Australian cinema revenue decreased by 14% to $22.9 million compared to Q2 2022, but on a constant currency basis, it represented 93.5% of Q2 2019 revenue [39] - New Zealand cinema revenue for Q2 2023 was $4.1 million, an 11% decrease compared to Q2 2022 [50] Company Strategy and Development Direction - The company plans to sell certain assets to improve liquidity and strengthen its balance sheet, including properties in Culver City, California, and an industrial site in Pennsylvania [55][70] - The company is focused on enhancing its real estate investments and operating properties to deliver long-term value for shareholders [52] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the cinema industry's recovery, citing strong box office performances from recent films like "Barbie" and "Oppenheimer" [21][23] - The company is monitoring the ongoing WGA and SAG-AFTRA strikes but does not anticipate significant impacts on performance unless major films are moved out of Q4 2023 [28][29] Other Important Information - The company reported cash and cash equivalents of $15.5 million as of June 30, 2023, with a global debt balance of $213.8 million [15] - The company achieved a total third-party occupancy rate of 95% in its Australian and New Zealand real estate portfolio [46] Q&A Session Summary Question: Plans for the Viaduct properties in Philadelphia - The company is in discussions with civic leaders about the Reading Viaduct and aims to ensure fair value for its assets while protecting shareholder interests [76][77] Question: Timing for cash payoff of deferred rent obligations - The company has a $9.5 million accrual rent liability, with $2 million reflecting deferred rent obligations that could extend up to 48 months [79][80] Question: Renovation plans for various cinemas - Renovations for the Angelika Dallas will start in Q4 2023, with partial closures expected [82][84] Question: Plans for retiring the Bank of America U.S. Cinema Term Loan - The company intends to retire the loan following the updated principal pay-down schedule while exploring different financing options [86][87] Question: Investor relations and analyst coverage - The company is working on initiatives to increase analyst coverage and plans to conduct at least two non-deal roadshows before the end of the year [89][92]