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RI

READING INTERNATIONAL INC (RDI)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 was operationally better despite a softer slate and FX headwinds: revenue fell 11% YoY to $40.2M, operating loss improved 8.5% to $(6.9)M, and EBITDA turned positive to $2.9M, aided by a $6.6M gain on sale of Wellington assets .
  • Results beat S&P Global consensus: revenue $40.2M vs $39.0M estimate; EPS $(0.21) vs $(0.50) estimate; EBITDA $2.9M vs $(3.6)M estimate. The EBITDA beat reflects asset-sale gains and cost actions; consensus coverage is minimal (1 estimate) and may classify EBITDA differently.*
  • Real estate delivered the highest first-quarter operating income since Q1 2018; U.S. real estate revenue hit a first-quarter record ($1.6M), supporting liquidity and debt paydown .
  • Near-term catalysts: contracted sale of Cannon Park (AU$32M) with intent to repay AU$21.5M to NAB and further debt reductions; lender amendments and maturity extensions completed in May support liquidity while a stronger Q2 box office is underway .

What Went Well and What Went Wrong

What Went Well

  • EBITDA turned positive to $2.9M vs a $(4.0)M loss in Q1 2024, driven by the NZ$38M Wellington sale and efficiency gains; “best first quarter EBITDA since Q1 2021” .
  • Real estate operating income rose 79% YoY to $1.6M, the highest for a first quarter since Q1 2018; U.S. real estate revenue reached a first-quarter record ($1.6M) .
  • F&B execution: record/near-record SPP across regions (U.S. $7.97; Australia $7.83; NZ $6.80) as management pushes memberships, merchandising, and weekday pricing initiatives .
    • CEO: “Our quarterly operational performance… demonstrate[s] our management teams’ focus on achieving efficiencies in our cinema business” .

What Went Wrong

  • Total revenue down 11% YoY to $40.2M, with cinema revenue down 12% due to lingering Hollywood strike effects, screen reductions, and FX (AUD −4.5%, NZD −7.3% vs USD) .
  • Cinema segment operating loss widened to $(4.5)M (from $(4.2)M), reflecting weaker attendance and slate quality across all three countries .
  • Liquidity still tight: cash $5.9M; gross debt $186.6M (down 7.9% since YE 2024), necessitating asset monetizations and loan amendments to manage maturities .

Financial Results

MetricQ3 2024Q4 2024Q1 2025
Revenue ($USD Millions)$60.1 $58.6 $40.2
Operating Income ($USD Millions)$(0.246) $1.5 $(6.891)
EBITDA ($USD Millions)$2.939 $6.805 $2.893
Basic EPS ($USD)$(0.31) $(0.10) $(0.21)

Estimates vs Actuals (Q1 2025)

MetricEstimateActual
Revenue ($USD Millions)$38.97*$40.17
EPS ($USD)$(0.50)*$(0.21)
EBITDA ($USD Millions)$(3.64)*$2.89

Values retrieved from S&P Global.*

Segment Breakdown (Q1 2025)

SegmentUnited StatesAustraliaNew ZealandTotal
Cinema Revenue ($USD ‘000s)$18,295 $15,682 $2,427 $36,404
Cinema Segment Operating Income (Loss) ($USD ‘000s)$(3,146) $(974) $(355) $(4,475)
Real Estate Revenue ($USD ‘000s)$1,587 $3,015 $243 $4,845
Real Estate Segment Operating Income (Loss) ($USD ‘000s)$143 $1,545 $(94) $1,594

KPIs (Q1 2025)

KPIU.S.AustraliaNew Zealand
F&B Sales per Person (SPP) ($)$7.97 $7.83 $6.80
Third-Party Occupancy Rate (%)—96 —
Third-Party Tenants (Count)—71 (combined ANZ) —
Australian Third-Party Tenant Sales ($AUD Millions)—$29.7 —

Note: Occupancy and tenant sales reflect ANZ real estate portfolio metrics.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue / EPS2025None providedNone providedMaintained (no formal guidance)
Box Office OutlookQ2–Holiday 2025Improving slate expected (Q4 2024 commentary) Management cites strong April/May and robust summer/holiday slate (Minecraft, Sinners; Lilo & Stitch, Mission: Impossible – The Final Reckoning, Superman, F1, Jurassic World Rebirth) Positive narrative momentum
Asset Monetization2025Put & Call option to sell Cannon Park (AU$32M) Contracted sale of Cannon Park (AU$32M), expected close May 21, 2025; intent to repay AU$21.5M NAB debt Advanced to contract stage
Debt & Liquidity2025Prior amendments/deferrals (Q3/Q4 2024) Extended Emerald Creek loan to Nov 6, 2026; Valley National to Oct 1, 2025; Bank of America principal deferrals Extended maturities / improved flexibility
Courtenay Central (NZ)2026–2027Sale in process NZ$38M sale closed; lease-back agreement; target reopening late 2026/early 2027 Executed sale; reopening timeline articulated

Earnings Call Themes & Trends

TopicQ3 2024 (Previous)Q4 2024 (Prior)Q1 2025 (Current)Trend
Box Office/SlateStronger vs earlier 2024; Deadpool & Wolverine, Inside Out 2 helped; cinema revenue $56.4M (−10% YoY) Holiday slate very strong (Wicked, Moana 2, Gladiator II); highest Q4 results since 2019 Softer slate, FX headwinds; April/May rebound with Minecraft, Sinners; strong 2025 summer/holiday slate Stabilizing/improving into Q2/Q3
F&B and LoyaltyRecord F&B SPP across regions; programs planned Momentum sustained Record/near-record SPP; expanded memberships, weekday discounts Structural uplift
Asset Monetization & DebtCulver City sale; lender amendments Announced Cannon Park AU$32M option; reiterated debt reduction plan Cannon Park contracted; Wellington closed and gain recorded; multiple loan extensions Executing plan
Real Estate PerformanceHighest since Q3 2019; operating income +52% U.S. real estate strong; tenant occupancy ~96% Highest first-quarter operating income since Q1 2018; U.S. first-quarter revenue record Consistent strength
FXSlight tailwind in Q3 2024 Mixed AUD −4.5%, NZD −7.3% vs USD; revenue headwind Volatile
U.S. Screen Optimization10% reduction; closures to improve profitability Continued optimization Additional closure (Town Square San Diego); targeted recliner upgrades Focused footprint

Management Commentary

  • “Operating Loss… represented the best first quarter operating income/loss result since the first quarter in 2019.”
  • “A positive EBITDA of $2.9 million… reflects the sale of our Wellington, NZ properties for a book profit of $6.6 million.”
  • “Our global Real Estate division… highest Real Estate Operating Income… since Q2 2018 and the highest first quarter since Q1 2018.”
  • “We anticipate reopening [Courtenay Central]… late 2026, early 2027… relaunch with the best cinematic experience in New Zealand.”

Q&A Highlights

  • CapEx plans: one U.S. theater filed for renovation (10 recliner conversions + TITAN LUXE); Courtenay Central NZ upgrades in planning; four other cinemas targeted for late-2025/early-2026 pending landlord/capital .
  • Minetta/Orpheum strategy: continue to rely on after-debt service cash flow; pursue renewals with Santander; bookings such as Big Gay Jamboree; Audible programming remains strong .
  • Refinancing: negotiating with Santander for another year with partial paydown; interest rate expected “within the same range” .
  • Investor outreach: Sidoti conference participation and 1x1s; cautious on paid coverage given liquidity priorities .

Estimates Context

  • Q1 2025 results vs S&P Global consensus: revenue beat ($40.17M vs $38.97M*), EPS beat ($(0.21) vs $(0.50)), EBITDA beat ($2.89M vs $(3.64)). The EBITDA classification in S&P Global appears to differ from company-reported EBITDA (company reconciliation shows $2.893M), reflecting non-GAAP treatment and asset-sale gains; coverage is limited (1 estimate).*

Values retrieved from S&P Global.*

Key Takeaways for Investors

  • RDI delivered a clean beat on revenue and EPS vs consensus, with EBITDA turning positive on asset-sale gains and cost actions—highlighting management’s liquidity-first playbook and non-core monetizations .*
  • Real estate remains a dependable earnings lever (record first-quarter metrics), mitigating cinema cyclicality and supporting debt reduction .
  • Near-term cash catalysts: Cannon Park AU$32M sale (contracted) and lender extensions reduce refinancing risk; expect AU$21.5M NAB repayment at close .
  • Cinema fundamentals are improving into Q2/Q3 on slate strength and F&B/membership initiatives; watch for sustained TLCF uplift as attendance normalizes .
  • FX is a notable headwind (AUD/NZD weakness vs USD); international revenue mix (~50%) magnifies currency sensitivity .
  • U.S. footprint rationalization and targeted recliner/TITAN upgrades should raise per-screen economics despite a smaller circuit .
  • Risk monitor: low analyst coverage, tight cash ($5.9M), and leverage ($186.6M gross debt); continued asset sales and covenant flexibility remain key to the medium-term thesis .