Reading International Announces First Quarter 2024 Results and Audiocast Schedule

Reading International, Inc. (“Reading” or our “Company”) today announced its results for the First Quarter ended March 31, 2024
New York, NY ( May 15, 2024 ) -

Reading International, Inc. (NASDAQ: RDI) (“Reading” or our “Company”), an internationally diversified cinema and real estate company with operations and assets in the United States, Australia, and New Zealand, today announced its results for the First Quarter ended March 31, 2024.

First Quarter 2024 Summary Results

During the First Quarter 2024, the disrupted movie release schedule caused by the 2023 Hollywood Strikes continued to negatively impact our financial results. Despite these revenue setbacks, our global operations teams managed our cinema expenses to reduce our overall First Quarter 2024 operating loss. As our cinema business endured these temporary challenges, to support our overall global operations over the last six months we monetized two real estate assets – our Maitland property in NSW (Australia) and our office building in Culver City, California. Despite the loss of revenues and income from these two property assets, our First Quarter 2024 real estate business delivered the second highest first quarter revenues and operating income since the first quarter of 2019, which demonstrates the strength of our real estate assets, operations and management teams.

  • Total Revenues decreased slightly by 2% (or $0.8 million) to $45.1 million compared to $45.8 million in Q1 2023.
  • Operating Loss improved by 4% (or $0.3 million) to a loss of $7.5 million compared to a Q1 2023 operating loss of $7.9 million.
  • Adjusted EBITDA loss of $4 million increased by 40% from a negative $2.8 million in Q1 2023.
  • Basic loss per share weakened by 18% (or $0.09) to a loss of $0.59 compared to a loss of $0.50 for Q1 2023.
  • Net loss attributable to Reading increased by 19% to a loss of $13.2 million compared to a loss of $11.1 million, primarily driven by increased interest expense and a loss on the sale of our Culver City office building which closed in February 2024.

    • The Australian dollar average exchange rates weakened against the U.S. dollar by 3.9%, compared to Q1 2023, while the New Zealand dollar average exchange rates weakened by 2.8% against the U.S. dollar compared to Q1 2023. The exchange rate fluctuation contributed to our loss for the period, and negatively impacted on our overall financial results.

    President and Chief Executive Officer, Ellen Cotter said, “We’re encouraged by the resilience of our Company to weather the recent hurdles. The 2023 Hollywood Strikes caused delays in major studio releases leading to a dip in cinema revenues during the First Quarter of 2024. However, we reduced our operating loss reflecting enhanced operational efficiency. We believe that as the effects of the 2023 Hollywood Strikes fade, a movie release schedule that is fuller and more compelling will boost cinema revenues through the next three quarters of 2024 and into 2025. The remainder of the 2024 film schedule is robust, featuring highly anticipated releases such as “Inside Out 2”, “Deadpool & Wolverine”, “Joker: Folie à Deux”, “Wicked”, and “Gladiator 2”. The outlook for 2025 is equally promising, with Disney planning nearly twice as many releases compared to 2024, benefiting from the studio’s renewed emphasis on creativity and original storytelling. In addition, 2025 will see James Cameron’s “Avatar 3”, Tom Cruise in “Mission: Impossible 8”, a new “Jurassic World” film from Universal, and James Gunn’s “Superman” from DC Studios for Warner Bros. These upcoming blockbusters are expected to energize the box office and keep moviegoers engaged.”

    Ms. Cotter continued “As our global cinema business continues its recovery from both the pandemic and the 2023 Hollywood Strikes, we need to raise additional liquidity to support our operations through 2024 and reduce our overall debt structure, so we’ll again turn to our real estate portfolio. In the last six months, we have generated $11.3 million in net sales proceeds from the sale of our Maitland property (NSW) and our Culver City office building. To ensure our Company’s long-term sustainability, we have identified additional properties to monetize. As of today, we are marketing for sale our Cannon Park property assets in Townsville (AU), in addition to certain international fee properties on which Reading Cinemas are located. In each case, we will pursue a lease back of our Reading Cinema. In addition, our 26.6-acre industrial site in Williamsport, Pennsylvania is held for sale.

    “Our real estate operations continue to deliver solid results. Our First Quarter 2024 Australian Real Estate division achieved the highest quarterly operating income since Q2 2018. And, we delivered improved quarterly operating results in our Live Theatre division and in April 2024, we executed (i) a two-year extension of our license agreement with AO Media, LLC, an affiliate of Audible, at the Minetta Lane Theatre and (ii) a license agreement for an open-ended run of The Big Gay Jamboree being produced by, among others, LuckyChap Entertainment, Margot Robbie’s production company also behind Barbie. The Big Gay Jamboree starts performances at the Orpheum in mid-September 2024.”

    Key Points

    Cinema Business

  • At $41.3 million, our Q1 2024 global cinema revenue slightly decreased by 2% compared to Q1 2023. At $4.2 million, our Q1 2024 cinema operating loss decreased by $0.4 million, or 10%, compared to an operating loss of $4.6 million during Q1 2023.
  • Despite a 5.1% downturn in the North American Box Office, our U.S. Cinema business exceeded industry performance by 670 basis points and augmented our U.S. market share by 5 basis points, despite closing three theaters. This result is attributed to the exceptional performance of our arthouses headlined by films such as Zone of Interest, American Fiction, All of Us Strangers, Problemista and Perfect Days. Notably, the Angelika in New York distinguished itself as North America’s top-performing theater for Zone of Interest, All of Us Strangers, Problemista and Perfect Days.
  • Our revenues were further enhanced by the opening of two new state-of-the-art theaters in Australia, each featuring recliners and elevated F&B: (i) an eight-screen Angelika boutique cinema at South City Square, Brisbane QLD and (ii) a five-screen Reading Cinemas with TITAN LUXE in Busselton, Western Australia.
  • Over the last twelve months to improve the long-term profitability of our U.S. Cinema circuit, we closed (i) two Consolidated Theatres in Hawaii in the third quarter of 2023 and (ii) a 16 screen Reading Cinema in California in the fourth quarter of 2023.
  • We have one additional Reading Cinema in the pipeline in Australia located in Noosa (Queensland).

    • Real Estate Business

  • Real estate segment revenue for Q1 2024 decreased by $0.1 million (or 3%) to $4.9 million, compared to $5.1 million in Q1 2023. Real estate segment operating income for Q1 2024 decreased by $0.1 million (or 12%) to $0.9 million compared to a real estate segment operating income of $1.0 million in Q1 2023.
  • The changes between the first quarter of 2024 and the first quarter of 2023 were partially attributable to the monetizations of our Culver City office building and our Maitland property (NSW).

    • Balance Sheet and Liquidity

  • As of March 31, 2024, our cash and cash equivalents were $7.5 million.
  • As of March 31, 2024, we had total gross debt of $195.7 million, which represents a $14.6 million reduction in debt since December 31, 2023, when our gross debt was $210.3 million.
  • As of March 31, 2024, our assets had a total book value of $494.9 million as compared to a book value of $533.1 million as of December 31, 2023.
  • To continue supporting our overall liquidity, during the first quarter we monetized our office building at 5995 Sepulveda Blvd. Culver City, California for $10.0 million. Also, in the fourth quarter of 2023, we monetized our underperforming Maitland Australia (NSW) property for AU$2.8 million and leased back the 4-screen Reading Cinema on a short-term basis, both of which positively impacted cash but contributed to this quarter’s weakening in Real Estate Revenues. Despite generating a loss of $1.1 million from the sale, our decision to monetize our Culver City office building was influenced by the fact that, given the availability on favorable terms of office space elsewhere in Los Angeles and our reduced space needs in California, we believe that a relocation of this office space could save us approximately $1.5million in expense between now and the end of 2025.
  • Through Q1 2024, we worked closely with our other lenders to amend our existing debt facilities and extend upcoming maturity dates.

    • – On January 26, 2024, we extended the maturity date of the loan secured by our Off-Broadway theatres in NYC to June 1, 2024.
    – On February 23, 2024, we repaid the $8.35 million loan on our Culver City office building following the sale of the asset.
    – On March 27, 2024, we amended the Bank of America/Bank of Hawaii loan by extending the maturity to August 18, 2025 and reducing certain principal repayment amounts.
    – On April 4, 2024, with respect to our loan from National Australia Bank, we extended the maturity date to July 31, 2026, and negotiated a Bridge Facility of A$20 million due March 31, 2025 (to be prepaid upon the sale of certain assets).
    – Most recently, on April 23, 2024, we closed the 1-year extension option on our 44 Union Square loan to extend the maturity date to May 6, 2025. We have one remaining one year option.

    About Reading International, Inc.
    Reading International, Inc. (NASDAQ: RDI), an internationally diversified cinema and real estate company operating through various domestic and international subsidiaries, is a leading entertainment and real estate company, engaging in the development, ownership, and operation of cinemas and retail and commercial real estate in the United States, Australia, and New Zealand.

    Reading’s cinema subsidiaries operate under multiple cinema brands: Reading Cinemas, Angelika Film Centers, Consolidated Theatres, and the State Cinema by Angelika. Its live theatres are owned and operated by its Liberty Theaters subsidiary, under the Orpheum and Minetta Lane names. Its signature property developments are maintained in special purpose entities and operated under the names Newmarket Village, Cannon Park, and The Belmont Common in Australia, Courtenay Central in New Zealand, and 44 Union Square in New York City.

    Additional information about Reading can be obtained from our Company’s website: http://www.readingrdi.com.