Reading International Reports Q1 2025 Financial Results Amid Challenges

Reading International, Inc. is navigating weaker revenues stemming from the ongoing effects of the 2023 Hollywood strikes, a reduced screen count, and negative foreign exchange results. This situation underscores the management team’s commitment to enhancing efficiencies within its cinema operations, leading to the closure of two underperforming cinemas—one in the U.S. on June 4, 2024, and another in New Zealand on February 10, 2025.

Despite a challenging first quarter for box office revenue, the cinema industry celebrated significant successes in April 2025 with the release of two Warner Bros films, A Minecraft Movie and Sinners, a collaboration between Director Ryan Coogler and actor Michael B. Jordan. Building on this momentum, Reading anticipates a promising lineup of films for the summer of 2025, including Lilo & Stitch, Mission: Impossible – The Final Reckoning, Ballerina, Superman, F1, and Jurassic World Rebirth.

Ms. Cotter noted, “Our global Real Estate division achieved remarkable results in Q1 2025, boasting a 79% rise in Operating Income compared to the same quarter in 2024. This represents the highest Real Estate Operating Income for our division since Q2 2018 and the best first quarter since Q1 2018.”

She added that during Q1 2025, the company completed the sale of its real estate assets in Wellington, New Zealand, for NZ$38.0 million. This transaction resulted in a NZ$11.6 million gain, accompanied by a reduction in overall debt by paying off an NZ$18.8 million Westpac loan and $6.1 million of a Bank of America loan, mitigating the impact of decreased cinema revenues on the net loss.

Cinema Business

• In Q1 2025, Reading’s cinema financial results reflected challenges compared to the same period in 2024: (i) global cinema revenue dropped 12% to $36.4 million, and (ii) global cinema operating loss increased to $4.5 million from $4.2 million. This downturn was largely due to a weaker film slate, resulting in lower attendance across all operating regions. From an operational standpoint, the cinema division saw positive trends in food and beverage (“F&B”) sales: (i) the Australian cinema division reported the highest sales per person (“SPP”) in its first quarter history, (ii) New Zealand’s cinema division achieved the second highest F&B SPP for a first quarter, and (iii) the U.S. division recorded the second highest SPP for a first quarter.
• As part of our commitment to the cinema industry, following the sale of our Wellington real estate assets—which included the ten-screen Courtenay Central cinema—we have entered into an Agreement to Lease (“ATL”) with Prime Property Group. This agreement allows us to lease back the cinema, with Prime responsible for its redevelopment and upgrades to meet current earthquake standards. We aim to renovate the cinema to a “best-in-class” standard.
• The Reading Cinemas Town Square in San Diego was closed on April 15, 2025.

Real Estate Business

• In our global real estate sector, (i) revenue fell by 2% to $4.8 million while (ii) operating income surged by 79% to $1.6 million from $890K in Q1 2024.
• U.S. Real Estate Revenues in Q1 2025 reached $1.6 million, marking a record for the first quarter, while operating income of $0.1 million represented the best performance for that metric since Q1 2015.
• The increase in operating income from Q1 2025 compared to Q1 2024 was partly due to the monetizations of the Culver City building and the sale of the Courtenay property in New Zealand.
• As previously mentioned, we sold all our Wellington properties—including the Courtenay Central building—to Prime for NZ$38.0 million on January 31, 2025.

Balance Sheet and Liquidity

As of March 31, 2025:

• Our cash and cash equivalents stood at $5.9 million.
• Total gross debt amounted to $186.6 million, down 7.9% ($16.1 million) since December 31, 2024, primarily due to the payoff of a $10.5 million loan to Westpac and a $6.1 million repayment to Bank of America following the sale of our Wellington property assets.
• The total book value of our assets was $441.0 million, compared to $471.0 million as of December 31, 2024.

Currently, we are under contract to sell our Cannon Park assets in Townsville (QLD) Australia for AU$32 million, with proceeds intended for debt reduction. Additionally, we are in discussions with our lender about extending the maturity date of the loan for our live theatres in New York City.

Conference Call and Webcast

We will post a pre-recorded conference call and audio webcast on our corporate website by Tuesday, May 20, 2025. This session will feature remarks from Ellen Cotter, President and Chief Executive Officer; Gilbert Avanes, Executive Vice President, Chief Financial Officer and Treasurer; and Andrzej Matyczynski, Executive Vice President – Global Operations.

A question-and-answer session will follow the formal remarks. Please submit questions or topics for discussion to [email protected] by May 19, 2025, at 5:00 p.m. Eastern Time. The audio webcast can be accessed at https://investor.readingrdi.com/financial-information/quarterly-results.

About Reading International, Inc.

Reading International, Inc. (NASDAQ: RDI) is a globally diversified cinema and real estate company. Operating through various domestic and international subsidiaries, it engages in the development, ownership, and operation of cinemas as well as retail and commercial real estate in the United States, Australia, and New Zealand.

The company’s cinema subsidiaries operate under a range of brand names, including Reading Cinemas, Consolidated Theatres, and the Angelika brand. Its live theatres are managed by its Liberty Theaters subsidiary under the Orpheum and Minetta Lane brands. Notable property developments include Newmarket Village in Brisbane, Australia, and 44 Union Square in New York City, housed in special purpose entities.

Reading International Releases Key Financial Results for Q1 2025

Contact Information

More information about Reading International, Inc. can be found on the company’s website: www.readingrdi.com.

Cautionary Note Regarding Forward-Looking Statements

This earnings release includes forward-looking statements as defined by the Securities Litigation Reform Act of 1995. These statements cover our anticipated operational results, business structure beliefs, movie release quality, revenue expectations, and monetization of our fee interests and real estate assets. You can identify these statements by terms such as “may,” “will,” “expect,” “believe,” and “anticipate.”

Due to the unpredictable nature of various influencing factors, we cannot guarantee that our forward-looking statements will prove accurate. Actual results may vary significantly, and there is no certainty regarding how our securities will perform, whether in isolation or in comparison to other investment opportunities.

The forward-looking statements in this earnings release are based solely on currently available information and only reflect our views as of the date made. We do not commit to publicly updating these statements unless required by law. Thus, it is crucial to note the date attached to our statements.

As these statements relate to the future, they carry inherent uncertainties, risks, and changes in circumstances that are hard to predict. Many of these factors may be outside of our control. Consequently, reliance on these projections may not be advisable. For a more detailed discussion of the risks affecting our financial results, please refer to Part I, Item 1A – Risk Factors, and Part II Item 7 – Management’s Discussion and Analysis of Financial Condition and Results of Operations in our most recent Annual report on Form 10-K and our Quarterly Reports on Form 10-Q.

Reading International, Inc. and Subsidiaries

Unaudited Consolidated Statements of Operations

(Unaudited; U.S. dollars in thousands, except per share data)

		Three Months Ended
		March 31,
		2025				2024
Revenue
Cinema		$	36,404		$	41,271
Real estate			3,765			3,781
Total revenue

# Financial Overview: Analyzing Recent Costs and Expenses Trends

40,169				45,052
Costs and Expenses
Cinema			(36,577	)			(40,720	)
Real Estate			(1,955	)			(2,235	)
Depreciation and Amortization			(3,375	)			(4,205	)
General and Administrative			(5,153	)			(5,423	)
Total Costs and Expenses			(47,060	)			(52,583	)
Operating Income (Loss)			(6,891	)			(7,531	)
Interest Expense, Net			(4,742	)			(5,286	)
Gain (Loss) on Sale of Assets

# Financial Summary Reveals Significant Losses Across Key Metrics

## Overview of Income and Expenses

The latest financial reports indicate critical figures for the company, with notable losses preceding tax calculations and equity earnings from unconsolidated joint ventures.

### Income Before Tax

– **Income (loss) before income tax expense and equity earnings of unconsolidated joint ventures:**
– Current: (5,438)
– Previous: (13,601)

This data points to ongoing challenges as the company continues to face financial pressures.

### Equity Earnings from Joint Ventures

– **Equity earnings (loss) of unconsolidated joint ventures:**
– Current: 23
– Previous: (25)

While there has been a slight positive change in equity earnings, it remains marginal.

## Income Tax Outcomes

The income tax effects have been somewhat favorable, allowing for a degree of mitigation against the losses reported.

– **Income tax benefit (expense):**
– Current: 472
– Previous: 223

This increase in benefits may provide some relief as the company navigates its financial difficulties.

## Net Income Analysis

The net income figures reflect a substantial downturn for both current and previous periods, which signals a need for strategic reassessment.

– **Net income (loss):**
– Current: (4,943)
– Previous: (13,403)

Despite a reduction in losses from prior periods, the figures remain concerning.

## Conclusion

In summary, the financial outlook shows considerable losses across various metrics, but there are indications of improvement in equity earnings and tax benefits. Continued focus on operational efficiency will be crucial as the company seeks to reverse current trends and stabilize its financial position.# Reading International Reports Significant Financial Losses in Latest Quarter

## Financial Overview

### Net Income (Loss) Attributable to Reading International, Inc.

| | | | |
|———————–|————|———|————|
| | | **2025** | **2024** |
| **Net Income (Loss)** | | $(4,752)$ | $(13,228)$ |

### Earnings Per Share

#### Basic Earnings (Loss) Per Share

| | | | |
|———————–|————|———|————|
| | | **2025** | **2024** |
| **Basic EPS** | | $(0.21)$ | $(0.59)$ |

#### Diluted Earnings (Loss) Per Share

| | | | |
|———————–|————|———|————|
| | | **2025** | **2024** |
| **Diluted EPS** | | $(0.21)$ | $(0.59)$ |

### Shares Outstanding

#### Weighted Average Number of Shares Outstanding

| | | | |
|———————–|————|———|————|
| | | **2025** | **2024** |
| **Basic Shares** | | 22,426,184 | 22,348,994 |
| **Diluted Shares** | | 22,426,184 | 22,348,994 |

—

## Consolidated Balance Sheets

### Reading International, Inc. and Subsidiaries

*(U.S. dollars in thousands, except share information)*

| | | | |
|———————–|————|———|————|
| | | **March 31, 2025** | **December 31, 2024** |
| **Assets** | | | |
| | | | |

*Further detailed balance sheet data would continue in this section.*

The financial losses reported by Reading International indicate a troubling trend compared to the previous year. Shareholders may want to examine this data closely as the company continues to address underlying issues impacting profitability.“`html

Current and Total Assets Overview for the Period

(Unaudited)
Current Assets:
Cash and cash equivalents		$	5,911			$	12,347
Restricted cash			2,433				2,735
Receivables			1,404				5,276
Inventories			1,441				1,685
Prepaid and other current assets			3,957				2,668
Land and property held for sale			17,998				32,331
Total current assets			33,144				57,042
Operating property, net			212,357

“`# Financial Overview: Key Assets and Liabilities Breakdown

## Table of Assets

### Key Asset Categories

| Description | Current Period | Previous Period |
|————————————————–|————————|———————–|
| Operating lease right-of-use assets | $156,381 | $160,873 |
| Investment in unconsolidated joint ventures | $3,187 | $3,138 |
| Goodwill | $23,870 | $23,712 |
| Intangible assets, net | $1,767 | $1,800 |
| Deferred tax asset, net | $766 | $953 |
| Other assets | $9,497 | $8,799 |

### Total Assets

| Summary | |
|————————————————–|—————————–|
| **Total assets** | $440,969 |
| | $471,011 |

## Liabilities and Stockholders’ Equity

### Current Liabilities

#### Overview of Current Liabilities

| Description | Amount |
|————————————————–|————————–|
| Accounts payable and accrued liabilities | $48,744 |

This structured financial data provides an insightful snapshot of the assets and liabilities for the organization, emphasizing the stability and slight fluctuations in key areas.# Current Financial Liabilities Detailed Breakdown

Film rent payable			3,553				5,820
Debt – current portion			53,738				69,193
Taxes payable – current			299				891
Deferred revenue			8,962				9,731
Operating lease liabilities – current portion			19,983				20,747
Other current liabilities			6,575				6,593
Total current liabilities			141,854				161,626
Debt – long-term portion			104,800				105,239
Derivative financial instruments – non-current portion			148				137

# Financial Overview: Latest Liabilities and Stockholder Equity Insights

27,450				27,394
Noncurrent tax liabilities			6,137				6,041
Operating lease liabilities – non-current portion			155,524				161,702
Other liabilities			13,736				13,662
Total liabilities		$	449,649			$	475,801
Commitments and contingencies (Note 16)
Stockholders’ equity:
Class A non-voting common shares, par value $0.01, 100,000,000 shares authorized,
33,681,705 issued and 20,745,594 outstanding at March 31, 2025 and
33,681,705 issued and 20,745,594 outstanding at December 31, 2024			238				238
Class B voting common shares, par value $0.01, 20,000,000 shares authorized and
1,680,590 issued and outstanding at March 31, 2025 and December 31, 2024

# Reading International, Inc. Reports Financials for Q1 2025

### Overview of Share Capital

As of March 31, 2025, Reading International, Inc. reported 12,000 nonvoting preferred shares authorized with a par value of $0.01, but no shares were issued. This aligns with the company’s strategic financial structure.

### Outstanding Shares

The outstanding shares for the company remained consistent with the previous financial period ending on December 31, 2024. There were no additional shares issued, which reflects Reading International’s balanced approach to managing its equity.

### Major Financial Metrics

– **Additional Paid-in Capital**: The company recorded additional paid-in capital of **$158,351** as of March 31, 2025, up from **$157,751** in the prior quarter.

– **Retained Earnings/(Deficits)**: Retained earnings showed a deficit of **(119,542)** as of March 31, 2025, increased from **(114,790)** at the end of December 2024.

– **Treasury Shares**: The treasury shares stood at **(40,407)** for both reporting periods, showing a stable approach to share management.

### Other Comprehensive Income

Accumulated other comprehensive income decreased slightly to **(6,721)** as of March 31, 2025, compared to **(7,173)** the previous quarter. This minor adjustment indicates ongoing financial performance stability.

### Total Stockholders’ Equity

Reading International, Inc. reported total stockholders’ equity of **(8,064)** as of March 31, 2025, down from **(4,364)** as of December 31, 2024. This decrease warrants attention from investors and may prompt further analysis in future reports, particularly considering the company’s overall financial strategy.

### Noncontrolling Interests

Lastly, the noncontrolling interests of the company were recorded at **(616)** for the first quarter of 2025, compared to **(426)** in the previous quarter. This slight uptick may reflect changes in ownership structures or performance metrics among subsidiaries.

In summary, Reading International, Inc. continues to navigate through its financial landscape with a measured approach, balancing equity structure while addressing deficits. This performance sets the stage for potential upcoming evaluations and strategic adjustments in future quarters.# Financial Overview: Segment Results for Reading International, Inc.

### Total Liabilities and Stockholders’ Equity

| | | | | | |
|—————————-|—–|————-|———|—–|————-|
| | | | | | |
| **Total liabilities and stockholders’ equity** | | **$** | **440,969** | | **$** | **471,011** |

### Segment Results Overview

**Reading International, Inc. and Subsidiaries**
*Segment Results*
*(Unaudited; U.S. dollars in thousands)*

| | | | | | | | | |
|—————————-|——-|—————|——|——-|—————–|——-|——-|—————–|
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| **Three Months Ended** | | | | | | | | |
| **March 31,** | | | | | | | | |
| **% Change** | | | | | | | | |
| **Favorable/** | | | | | | | | |

### Detailed Segment Revenue

| | Dollars in thousands |
|————————————-|————————-|
| **Segment revenue** | |
| | |
| (Additional segment details follow) | |# Financial Overview: Cinema and Real Estate Performance Metrics

## Cinema Sector Performance

### United States
– **Q1 Gross Revenue**: $18,295 million
– **Q2 Gross Revenue**: $21,308 million
– **Percentage Change**: (14)%

### Australia
– **Q1 Gross Revenue**: $15,682 million
– **Q2 Gross Revenue**: $17,322 million
– **Percentage Change**: (9)%

### New Zealand
– **Q1 Gross Revenue**: $2,427 million
– **Q2 Gross Revenue**: $2,641 million
– **Percentage Change**: (8)%

### Total Cinema Revenue
– **Q1 Total**: $36,404 million
– **Q2 Total**: $41,271 million
– **Percentage Change**: (12)%

## Real Estate Sector Performance

### Overview
The real estate sector experienced fluctuations in performance metrics during the first half of the year. Gross revenue data for various regions indicates evolving market trends and consumer behaviors, which merit close observation as the year progresses.

### Summary
The data above reflects the current financial landscape in the cinema and real estate industries. Both sectors are experiencing varying degrees of decline, highlighting the need for strategic adjustments in response to market dynamics.# Global Segment Revenue Overview: Q3 Highlights by Region

United States		$	1,587			$	1,485			7%
Australia			3,015				3,083			(2)%
New Zealand			243				365			(33)%
Total		$	4,845			$	4,933			(2)%
Inter-segment elimination			(1,080)				(1,152)			6%
Total segment revenue		$	40,169			$	…

# Cinema Industry Faces Decline in Segment Operating Income

## Overview of Financial Performance

The latest financial figures indicate that the cinema segment is experiencing significant challenges, resulting in a decrease in operating income across various regions.

### Geographic Performance Breakdown

| Region | Operating Income (Loss) | Change (%) |
|—————|————————-|————|
| **United States** | $(3,146) | -8% |
| **Australia** | $(974) | -96% |
| **New Zealand** | $(355) | -54% |
| **Total** | $(4,475) | -11% |
| **Total (Prior Year)** | $(4,165) | – |

### Detailed Insights

In the **United States**, the cinema sector recorded an operating loss of **$3,146 million**, which represents an **8%** decline. This downturn reflects broader trends affecting the industry.

The **Australian** market was significantly impacted, with operating income dropping to **$(974 million)**. This marked a staggering **96%** decrease, showcasing the severe challenges faced in that market.

**New Zealand** saw an operating loss of **$(355 million)**, which equates to a **54%** reduction compared to previous performance metrics.

Overall, the cinema industry reported a total operating loss of **$(4,475 million)**, reflecting an **11%** increase in losses compared to **$(4,165 million)** from the previous year.

### Conclusion

The data highlights a troubling trend for cinema operations across these markets. As the industry grapples with these financial setbacks, stakeholders will need to reevaluate strategies to recover and stabilize financial performance moving forward.# Real Estate Market Insights: Performance by Country in 2023

### Key Performance Metrics

| Country | | Income/Loss | Amount | | Income/Loss | Amount | Growth |
|—————|——|——————-|———-|————|——————|———–|———–|
| **United States** | | Income | $143 | | Loss | ($367) | >100% |
| **Australia** | | Income | $1,545 | | Loss | $1,458 | 6% |
| **New Zealand** | | Income | (94) | | Loss | (201) | 53% |
| **Total** | | Income | $1,594 | | Loss | $890 | 79% |

### Financial Overview

**Total Segment Operating Income (Loss)**

The total segment operating income or loss for this period stands at **($2,881)**. This negative figure indicates ongoing challenges faced in the market.

By breaking down these figures, we see a varied performance landscape across different regions. The United States recorded a stark loss despite a nominal income, pointing to substantial operational hurdles. Meanwhile, Australian and New Zealand figures show slight profitability within their losses, reflecting more controlled operational expenses or revenue stabilization efforts.

Overall, the total income across segments indicates considerable financial strain.

Reading International Reports Financial Reconciliation for First Quarter

Reading International, Inc. and Subsidiaries

Reconciliation of EBITDA and Adjusted EBITDA to Net Income (Loss)

(Unaudited; U.S. dollars in thousands)

		Three Months Ended
		March 31,
		2025				2024
Net Income (loss) attributable to Reading International, Inc.		$	(4,752	)		$	(13,228	)
Add: Interest expense, net			4,742				5,286
Add: Income tax expense (benefit)			(472	)			(223	)
Add: Depreciation and amortization			3,375				4,205
EBITDA		$	2,893

(3,275)
12%

^{(1)Total segment operating income is a non-GAAP financial measure. See the discussion of non-GAAP financial measures that follows.}

# Reading International Reports Financial Results for Q1 2025

## Overview

Reading International, Inc. provides a detailed reconciliation of total segment operating income (loss) to income (loss) before income taxes for the first quarter of 2025. This analysis highlights the company’s performance and adjusts for non-operational factors.

### Key Financial Data

		Three Months Ended
(Dollars in thousands)		March 31, 2025				March 31, 2024
Segment operating income (loss)		$	(2,881	)		$	(3,275	)
Unallocated corporate expense:
Depreciation and amortization expense			(133	)

### Adjusted EBITDA

The Adjusted EBITDA for Reading International reflects critical shifts within the financial reporting period, demonstrating both operational challenges and adjustments for depreciation, resulting in an EBITDA of $2,893,000. Comparatively, the previous quarter reported an Adjusted EBITDA loss of $(3,960,000).

### Conclusion

The financial report underscores a significant traction in segment operating income despite unallocated corporate expenses. This reconciliation offers essential insight for investors monitoring Reading International’s performance against broader market trends.# Financial Overview: Key Metrics for Company Performance

(102	)
General and administrative expense			(3,877	)			(4,154	)
Interest expense, net			(4,742	)			(5,286	)
Equity earnings (loss) of unconsolidated joint ventures			23				(25	)
Gain (loss) on sale of assets			6,526				(1,125	)
Other (expense) income			(331	)			341
Income (loss) before income taxes		$	(5,415	)		$	(13,626	)

Non-GAAP Financial Measures

This earnings release presents total segment operating income (loss), EBITDA, and Adjusted EBITDA. These are important financial measures for our Company but are not defined by U.S. GAAP.

It is advisable to review these measures alongside relevant U.S. GAAP financial measures. They should not be seen as alternatives to earnings (loss) per share, cash flows, or net income (loss) as per U.S. GAAP. The definitions of total segment operating income (loss) and EBITDA may vary and may not be directly comparable to similar measures from other companies.

Total Segment Operating Income (Loss)
We assess the performance of our business segments using total segment operating income (loss). Management employs this measure to evaluate operating performance, distinct from non-operational factors. We believe it helps investors understand changes in our Company’s operating results, offering insights into operations and external factors that impact reported results.

EBITDA
EBITDA serves as an essential metric in assessing our financial standing and operational efficiency.

# Understanding EBITDA: A Key Measure of Financial Performance

We assess our company’s performance by focusing on EBITDA, as it serves as a crucial metric for financial evaluation and value assessment. This belief is founded on several key reasons:

## Industry Acceptance and Use

EBITDA is widely recognized as a standard comparative measure within our industry. Analysts and financial commentators frequently use it to analyze the cinema exhibition and real estate sectors. Additionally, financial institutions often rely on EBITDA to evaluate the creditworthiness of companies in these areas. Therefore, our management utilizes this metric to gauge our performance relative to peers, market expectations, and overall creditworthiness. Industry experts usually value businesses in our field at various multiples of EBITDA, highlighting its significance as an indicator of our companies’ intrinsic value. Investors may leverage EBITDA to assess our capacity to generate cash and compare it against other firms in the cinema exhibition and real estate sectors.

## Limitations of EBITDA

It’s essential to note that EBITDA is not a recognized measure of financial performance under Generally Accepted Accounting Principles (GAAP) in the United States. Consequently, it should not be viewed in isolation or as a replacement for net income (loss), operational data, or cash flow metrics derived from GAAP when analyzing profitability. Excluding components such as interest, taxes, depreciation, and amortization diminishes the effectiveness of these measures. Notably, not all funds reported by EBITDA are discretionary, as many are tied to contractual obligations, debt servicing, capital expenditures, and other commitments.

Furthermore, EBITDA does not account for interest and tax costs, both of which are tangible expenses incurred periodically. While taxes may not always be a current cash item, they are inevitable costs that must be managed. A company generating taxable earnings in high-tax jurisdictions may ultimately have a lower valuation than a similar company in lower-tax areas. Additionally, EBITDA overlooks depreciation and amortization, which reflect the reality that assets will eventually require replacement.

## Adjusted EBITDA: A Refined Perspective

To provide a clearer picture of our financial performance, we also calculate Adjusted EBITDA. This measure applies consistent principles and accounts for specific items deemed external to our core business and not indicative of our operational costs or results. Our adjustments include (i) legal expenses stemming from significant litigation and (ii) other non-recurring items as outlined by the two-year SEC standard for recognizing such items.

This article was originally published on Quiver News, read the full story.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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