10-Q 1 rdi-20220930x10q.htm 10-Q rdi-20220930x10q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_____________________________________________________

FORM 10-Q

(Mark One)


þ	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: September 30, 2022


¨	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___________ to ___________

Commission file number 1-8625

$C:\Users\matthew.elmshauser\Pictures\Reading International logo.jpg$

READING INTERNATIONAL, INC.

(Exact name of Registrant as specified in its charter)

Nevada

State or other jurisdiction of incorporation or organization)

95-3885184

(IRS Employer Identification Number)

189 Second Avenue, Suite 2S

New York, New York

(Address of principal executive offices)

10003

(Zip Code)

Registrant’s telephone number, including area code: (213) 235-2240

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol	Name of each exchange on which registered
Class A Nonvoting Common Stock, $0.01 par value	RDI	NASDAQ
Class B Voting Common Stock, $0.01 par value	RDIB	NASDAQ

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes þ No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer ¨ Accelerated Filer ¨ Non-Accelerated Filer þ Smaller Reporting Company þ Emerging Growth Company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No þ

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date. As of November 8, 2022, there were 20,363,234 shares of Class A Nonvoting Common Stock, $0.01 par value per share and 1,680,590 shares of Class B Voting Common Stock, $0.01 par value per share outstanding.
‎

READING INTERNATIONAL, INC. AND SUBSIDIARIES

TABLE OF CONTENTS


	Page
PART I - Financial Information	3
Item 1 – Financial Statements	3
Consolidated Balance Sheets (Unaudited)	3
Consolidated Statements of Income (Unaudited)	4
Consolidated Statements of Comprehensive Income (Unaudited)	5
Consolidated Statements of Cash Flows (Unaudited)	6
Notes to Consolidated Financial Statements (Unaudited)	8
Item 2 – Management’s Discussion and Analysis of Financial Condition and Results of Operations	30
Item 3 – Quantitative and Qualitative Disclosure about Market Risk	47
Item 4 – Controls and Procedures	49
PART II – Other Information	50
Item 1 – Legal Proceedings	50
Item 1A – Risk Factors	50
Item 2 – Unregistered Sales of Equity Securities and Use of Proceeds	50
Item 3 – Defaults Upon Senior Securities	50
Item 4 – Mine Safety Disclosure	50
Item 5 – Other Information	50
Item 6 – Exhibits	51
SIGNATURES	52
Certifications

‎

PART 1 – FINANCIAL INFORMATION

Item 1 - Financial Statements

READING INTERNATIONAL, INC.

CONSOLIDATED BALANCE SHEETS

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



	September 30,		December 31,
	2022		2021
ASSETS	(unaudited)
Current Assets:
Cash and cash equivalents	$	39,628	$	83,251
Restricted cash		6,222		5,320
Receivables		4,601		5,360
Inventories		1,355		1,408
Derivative financial instruments - current portion		1,318		96
Prepaid and other current assets		5,567		4,871
Total current assets		58,691		100,306
Operating property, net		281,910		306,657
Operating lease right-of-use assets		200,396		227,367
Investment and development property, net		7,853		9,570
Investment in unconsolidated joint ventures		4,352		4,993
Goodwill		24,131		26,758
Intangible assets, net		2,548		3,258
Deferred tax asset, net		2,316		2,220
Derivative financial instruments - non-current portion		21		112
Other assets		7,500		6,461
Total assets	$	589,718	$	687,702
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued liabilities	$	38,497	$	39,678
Film rent payable		2,803		7,053
Debt - current portion		57,207		11,349
Subordinated debt - current portion		738		711
Derivative financial instruments - current portion		—		181
Taxes payable - current		2,038		10,655
Deferred revenue		7,958		9,996
Operating lease liabilities - current portion		22,950		23,737
Other current liabilities		6,717		3,619
Total current liabilities		138,908		106,979
Debt - long-term portion		132,345		195,198
Subordinated debt, net		26,894		26,728
Noncurrent tax liabilities		6,286		7,467
Operating lease liabilities - non-current portion		200,855		223,364
Other liabilities		15,196		22,906
Total liabilities	$	520,484	$	582,642
Commitments and contingencies (Note 14)
Stockholders’ equity:
Class A non-voting common shares, par value $0.01, 100,000,000 shares authorized,
33,299,344 issued and 20,363,234 outstanding at September 30, 2022 and
33,198,500 issued and 20,262,390 outstanding at December 31, 2021		234		233
Class B voting common shares, par value $0.01, 20,000,000 shares authorized and
1,680,590 issued and outstanding at September 30, 2022 and December 31, 2021		17		17
Nonvoting preferred shares, par value $0.01, 12,000 shares authorized and no issued
or outstanding shares at September 30, 2022 and December 31, 2021		—		—
Additional paid-in capital		153,275		151,981
Retained earnings/(deficits)		(35,599)		(12,632)
Treasury shares		(40,407)		(40,407)
Accumulated other comprehensive income		(8,979)		4,882
Total Reading International, Inc. stockholders’ equity		68,541		104,074
Noncontrolling interests		693		986
Total stockholders’ equity		69,234		105,060
Total liabilities and stockholders’ equity	$	589,718	$	687,702

See accompanying Notes to the Unaudited Consolidated Financial Statements.

READING INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF INCOME

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



	Quarter Ended				Nine Months Ended
	September 30,				September 30,
	2022		2021		2022		2021
Revenue
Cinema	$	48,359	$	28,751	$	147,476	$	79,580
Real estate		2,837		3,052		8,432		9,562
Total revenue		51,196		31,803		155,908		89,142
Costs and expenses
Cinema		(45,308)		(29,237)		(134,579)		(82,485)
Real estate		(2,352)		(2,683)		(6,715)		(7,902)
Depreciation and amortization		(5,010)		(5,560)		(15,781)		(17,011)
Impairment expense		—		—		(1,549)		—
General and administrative		(5,257)		(5,274)		(17,364)		(19,205)
Total costs and expenses		(57,927)		(42,754)		(175,988)		(126,603)
Operating income (loss)		(6,731)		(10,951)		(20,080)		(37,461)
Interest expense, net		(3,693)		(3,068)		(10,242)		(10,437)
Gain (loss) on sale of assets		(59)		2,559		(59)		92,345
Other income (expense)		5,455		440		8,445		2,236
Income (loss) before income tax expense and equity earnings of unconsolidated joint ventures		(5,028)		(11,020)		(21,936)		46,683
Equity earnings of unconsolidated joint ventures		61		(75)		233		158
Income (loss) before income taxes		(4,967)		(11,095)		(21,703)		46,841
Income tax benefit (expense)		(332)		895		(1,492)		(12,380)
Net income (loss)	$	(5,299)	$	(10,200)	$	(23,195)	$	34,461
Less: net income (loss) attributable to noncontrolling interests		(122)		(105)		(228)		2,889
Net income (loss) attributable to Reading International, Inc.	$	(5,177)	$	(10,095)	$	(22,967)	$	31,572
Basic earnings (loss) per share	$	(0.23)	$	(0.46)	$	(1.04)	$	1.45
Diluted earnings (loss) per share	$	(0.23)	$	(0.46)	$	(1.04)	$	1.41
Weighted average number of shares outstanding–basic		22,043,823		21,809,402		22,011,755		21,792,007
Weighted average number of shares outstanding–diluted		22,043,823		21,809,402		22,011,755		22,462,657

See accompanying Notes to the Unaudited Consolidated Financial Statements.

READING INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited; U.S. dollars in thousands)



	Quarter Ended				Nine Months Ended
	September 30,				September 30,
	2022		2021		2022		2021
Net income (loss)	$	(5,299)	$	(10,200)	$	(23,195)	$	34,461
Foreign currency translation gain (loss)		(8,279)		(4,138)		(15,268)		(8,494)
Gain (loss) on cash flow hedges		60		57		1,253		173
Other		49		52		154		155
Comprehensive income (loss)		(13,469)		(14,229)		(37,057)		26,295
Less: net income (loss) attributable to noncontrolling interests		(122)		(105)		(228)		2,889
Less: comprehensive income (loss) attributable to noncontrolling interests		(3)		—		(1)		—
Comprehensive income (loss)	$	(13,344)		(14,124)	$	(36,828)	$	23,406

See accompanying Notes to the Unaudited Consolidated Financial Statements.

‎

READING INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited; U.S. dollars in thousands)



	Nine Months Ended
	September 30,
	2022		2021
Operating Activities
Net income (loss)	$	(23,195)

READING INTERNATIONAL INC [RDI] Filings
READING INTERNATIONAL INC [RDIB] Filings
10-Q	[2022-11-09]
10-Q	[2022-08-09]
10-Q	[2022-05-10]
10-K	[2022-03-16]
10-Q	[2021-11-09]
10-Q	[2021-08-09]
10-Q	[2021-05-17]
10-K	[2021-03-31]
10-Q	[2020-11-09]
10-Q	[2020-08-10]
10-Q	[2020-06-25]
10-K	[2020-03-16]
10-Q	[2019-11-12]
10-Q	[2019-08-09]
10-Q	[2019-05-10]
10-K	[2019-03-18]
10-Q	[2018-11-06]
10-Q	[2018-08-09]
10-Q	[2018-05-10]
10-K	[2018-03-16]
10-Q	[2017-11-07]
10-Q	[2017-08-09]
10-Q	[2017-05-09]
10-K	[2017-03-13]
10-Q	[2016-11-08]
10-Q	[2016-08-08]
10-Q	[2016-05-10]
10-K	[2016-04-29]
10-Q	[2015-11-06]
10-Q	[2015-08-10]
10-Q	[2015-05-07]
10-K	[2015-03-17]
10-Q	[2014-11-12]
10-Q	[2014-08-12]
10-Q	[2014-05-12]
10-K	[2014-03-07]
10-Q	[2013-11-06]
10-Q	[2013-08-08]
10-Q	[2013-05-09]
10-K	[2013-03-19]
10-Q	[2012-11-09]
10-Q	[2012-08-09]
10-Q	[2012-05-09]
10-K	[2012-03-15]

READING INTERNATIONAL INC [RDI] Filings

READING INTERNATIONAL INC [RDIB] Filings

UNITED STATES