10-Q 1 rdi-20240630x10q.htm 10-Q rdi-20240630x10q

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: June 30, 2024


¨	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	The Nasdaq Stock Market LLC
Class B Voting Common Stock, $0.01 par value	RDIB	The Nasdaq Stock Market LLC

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 August 13, 2024, there were 20,745,594 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)	7
Item 2 – Management’s Discussion and Analysis of Financial Condition and Results of Operations	24
Item 3 – Quantitative and Qualitative Disclosure about Market Risk	44
Item 4 – Controls and Procedures	46
PART II – Other Information	47
Item 1 – Legal Proceedings	47
Item 1A – Risk Factors	47
Item 2 – Unregistered Sales of Equity Securities and Use of Proceeds	47
Item 3 – Defaults Upon Senior Securities	47
Item 4 – Mine Safety Disclosure	47
Item 5 – Other Information	47
Item 6 – Exhibits	48
SIGNATURES	49
Certifications

‎

PART 1 – FINANCIAL INFORMATION

Item 1 - Financial Statements

READING INTERNATIONAL, INC.

CONSOLIDATED BALANCE SHEETS

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



	June 30,		December 31,
	2024		2023
ASSETS	(unaudited)
Current Assets:
Cash and cash equivalents	$	9,242	$	12,906
Restricted cash		1,485		2,535
Receivables		7,647		7,561
Inventories		1,347		1,648
Prepaid and other current assets		2,485		2,881
Land and property held for sale		36,446		11,179
Total current assets		58,652		38,710
Operating property, net		225,473		262,417
Operating lease right-of-use assets		168,546		181,542
Investment and development property, net		—		8,789
Investment in unconsolidated joint ventures		4,428		4,756
Goodwill		25,023		25,535
Intangible assets, net		1,899		2,038
Deferred tax asset, net		2,109		299
Other assets		8,725		8,965
Total assets	$	494,855	$	533,051
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued liabilities	$	44,392	$	43,828
Film rent payable		4,911		6,038
Debt - current portion		58,401		34,484
Subordinated debt - current portion		198		586
Taxes payable - current		2,088		1,376
Deferred revenue		10,027		10,993
Operating lease liabilities - current portion		21,797		23,047
Other current liabilities		6,625		6,731
Total current liabilities		148,439		127,083
Debt - long-term portion		123,347		146,605
Derivative financial instruments - non-current portion		98		—
Subordinated debt, net		27,283		27,172
Noncurrent tax liabilities		6,418		6,586
Operating lease liabilities - non-current portion		168,246		180,898
Other liabilities		11,493		11,711
Total liabilities	$	485,324	$	500,055
Commitments and contingencies (Note 15)
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 June 30, 2024 and
33,602,627 issued and 20,666,516 outstanding at December 31, 2023		238		237
Class B voting common shares, par value $0.01, 20,000,000 shares authorized and
1,680,590 issued and outstanding at June 30, 2024 and December 31, 2023		17		17
Nonvoting preferred shares, par value $0.01, 12,000 shares authorized and no issued
or outstanding shares at June 30, 2024 and December 31, 2023		—		—
Additional paid-in capital		156,529		155,402
Retained earnings/(deficits)		(102,058)		(79,489)
Treasury shares		(40,407)		(40,407)
Accumulated other comprehensive income		(4,325)		(2,673)
Total Reading International, Inc. stockholders’ equity		9,994		33,087
Noncontrolling interests		(463)		(91)
Total stockholders’ equity		9,531		32,996
Total liabilities and stockholders’ equity	$	494,855	$	533,051

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				Six Months Ended
	June 30,				June 30,
	2024		2023		2024		2023
Revenue
Cinema	$	42,942	$	61,056	$	84,213	$	103,042
Real estate		3,867		3,999		7,648		7,819
Total revenue		46,809		65,055		91,861		110,861
Costs and expenses
Cinema		(39,418)		(51,364)		(80,138)		(93,019)
Real estate		(2,461)		(2,104)		(4,696)		(4,319)
Depreciation and amortization		(4,011)		(4,689)		(8,216)		(9,329)
General and administrative		(5,271)		(5,109)		(10,693)		(10,288)
Total costs and expenses		(51,161)		(63,266)		(103,743)		(116,955)
Operating income (loss)		(4,352)		1,789		(11,882)		(6,094)
Interest expense, net		(5,252)		(4,874)		(10,537)		(8,991)
Gain (loss) on sale of assets		9		—		(1,116)		—
Other income (expense)		(216)		(86)		123		91
Income (loss) before income tax expense and equity earnings of unconsolidated joint ventures		(9,811)		(3,171)		(23,412)		(14,994)
Equity earnings of unconsolidated joint ventures		119		207		94		226
Income (loss) before income taxes		(9,692)		(2,964)		(23,318)		(14,768)
Income tax benefit (expense)		156		103		379		583
Net income (loss)	$	(9,536)	$	(2,861)	$	(22,939)	$	(14,185)
Less: net income (loss) attributable to noncontrolling interests		(195)		(83)		(370)		(296)
Net income (loss) attributable to Reading International, Inc.	$	(9,341)	$	(2,778)	$	(22,569)	$	(13,889)
Basic earnings (loss) per share	$	(0.42)	$	(0.12)	$	(1.01)	$	(0.63)
Diluted earnings (loss) per share	$	(0.42)	$	(0.12)	$	(1.01)	$	(0.63)
Weighted average number of shares outstanding–basic		22,413,617		22,262,214		22,379,881		22,183,618
Weighted average number of shares outstanding–diluted		23,246,591		23,502,506		23,294,887		23,423,910

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				Six Months Ended
	June 30,				June 30,
	2024		2023		2024		2023
Net income (loss)	$	(9,536)	$	(2,861)	$	(22,939)	$	(14,185)
Foreign currency translation gain (loss)		932		(589)		(1,659)		(1,352)
Gain (loss) on cash flow hedges		(98)		(205)		(98)		(788)
Other		52		53		102		107
Comprehensive income (loss)		(8,650)		(3,602)		(24,594)		(16,218)
Less: net income (loss) attributable to noncontrolling interests		(195)		(83)		(370)		(296)
Less: comprehensive income (loss) attributable to noncontrolling interests		—		(1)		(1)		(2)
Comprehensive income (loss)	$	(8,455)		(3,518)	$	(24,223)	$	(15,920)

See accompanying Notes to the Unaudited Consolidated Financial Statements.

‎

READING INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited; U.S. dollars in thousands)



	Six Months Ended
	June 30,
	2024		2023
Operating Activities
Net income (loss)	$	(22,939)	$	(14,185)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Equity earnings of unconsolidated joint ventures		(94)		(226)
Distributions of earnings from unconsolidated joint ventures		329		338
(Gain) loss recognized on foreign currency transactions		(66)		—
(Gain) loss on sale of assets		1,116		—
Amortization of operating leases		9,089		9,290
Amortization of finance leases		21		15
Change in operating lease liabilities		(9,903)		(10,059)
Purchase of derivative instruments		—		—
Change in net deferred tax assets		(1,824)		(31)
Depreciation and amortization		8,216		9,329
Other amortization		829		753

READING INTERNATIONAL INC [RDIB] Filings
READING INTERNATIONAL INC [RDI] Filings
10-Q	[2024-08-14]
10-Q	[2024-05-15]
10-K	[2024-03-29]
10-Q	[2023-11-15]
10-Q	[2023-08-14]
10-Q	[2023-05-15]
10-K	[2023-03-31]
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 [RDIB] Filings

READING INTERNATIONAL INC [RDI] Filings

UNITED STATES