Executive Summary

Q3 2024 delivered sequential improvement across key operating metrics with Total Revenues of $60.1M (+28% vs Q2, +33% vs Q1), Operating Loss narrowed to $0.2M, and EBITDA returned to positive $2.9M; however, results were below Q3 2023 due to a 10% reduction in U.S. screens and weaker specialty film slate .
Australian cinemas set records (highest-ever third-quarter F&B sales per patron and best third-quarter revenue on record), while global Real Estate Operating Income rose 52% YoY to $1.4M, the highest since Q3 2019 .
Management is pursuing debt extensions and asset monetizations (Williamsport PA industrial site, Cannon Park in Townsville, NZ properties in Wellington and Rotorua) and expects lower interest expense amid recent Fed cuts (50 bps in Sep, 25 bps in Nov) .
Near-term catalysts include a strong holiday slate (Wicked, Moana 2, Gladiator 2, Mufasa: The Lion King, Sonic 3) and roll-out of loyalty/subscription programs; Street consensus (S&P Global) for Q3 2024 was unavailable, so estimate comparisons cannot be made .

What Went Well and What Went Wrong

What Went Well

Australian Cinema revenue hit a record third quarter and F&B spend per patron reached all-time highs; NZ and U.S. F&B SPP also posted highest third-quarter levels (excluding pandemic closure periods) .
Global Real Estate Operating Income increased 52% YoY to $1.4M, the best since Q3 2019, driven by lower operating expenses and reduced D&A across regions; U.S. real estate achieved its second-highest third-quarter revenue despite prior asset sales .
Management tone confident on trajectory: “Key financial operating metrics… were all materially stronger than the previous 3 quarters… lingering impacts… have come to an end,” and highlighted blockbuster drivers (Inside Out 2, Deadpool & Wolverine, Despicable Me 4) .

What Went Wrong

YoY declines vs Q3 2023: Total Revenues $60.1M vs $66.6M, Operating Loss of $0.2M vs Operating Income of $1.0M, EBITDA $2.9M vs $6.1M, and Diluted EPS -$0.31 vs -$0.20, reflecting U.S. screen closures and weaker specialty slate .
U.S. Cinema segment swung to a Q3 operating loss (-$0.9M) vs income in Q3 2023, with specialty circuit down 32% YoY; management cited 70mm Oppenheimer comps and underperforming 2024 specialty titles as drivers .
Continued net loss pressure from increased interest expense and reduced property rent revenue despite lower D&A and G&A; Q3 Net Loss attributable to Reading widened to -$6.9M vs -$4.4M YoY .

Financial Results

Metric	Q3 2023	Q1 2024	Q2 2024	Q3 2024
Total Revenues ($USD Millions)	$66.6	$45.1	$46.8	$60.1
Operating Income (Loss) ($USD Millions)	$1.0	-$7.5	-$4.4	-$0.2
EBITDA ($USD Millions)	$6.1	-$4.0	-$0.2	$2.9
Adjusted EBITDA ($USD Millions)	$6.1	-$4.0	-$0.2	$2.9
Diluted EPS ($USD)	-$0.20	-$0.59	-$0.42	-$0.31
EBIT Margin %	1.5% (1.019/66.563)	-16.6% (-7.531/45.052)	-9.3% (-4.352/46.809)	-0.4% (-0.246/60.090)
EBITDA Margin %	9.2% (6.148/66.563)	-8.8% (-3.960/45.052)	-0.5% (-0.234/46.809)	4.9% (2.939/60.090)

Consensus estimates (S&P Global) for Q3 2024 were unavailable; estimate comparisons cannot be made.

Segment revenue and operating income (Q3 YoY):

Segment	Q3 2023 Revenue ($USD ‘000)	Q3 2024 Revenue ($USD ‘000)	YoY	Q3 2023 Op Inc ($USD ‘000)	Q3 2024 Op Inc ($USD ‘000)	YoY
Cinema – United States	$34,232	$27,816	-19%	$331	-$861	>(100)%
Cinema – Australia	$24,186	$24,745	+2%	$3,513	$2,918	-17%
Cinema – New Zealand	$4,270	$3,796	-11%	$551	$252	-54%
Real Estate – United States	$1,614	$1,444	-11%	-$229	-$75	+67%
Real Estate – Australia	$3,063	$3,082	+1%	$1,333	$1,602	+20%
Real Estate – New Zealand	$380	$372	-2%	-$184	-$131	+29%

KPIs (current quarter):

KPI	Q3 2024
U.S. Box Office per Screen ($)	~$80,000
U.S. F&B Spend per Patron (SPP) ($)	$8.24
Australia F&B SPP ($)	$7.90 (highest ever quarterly result)
New Zealand F&B SPP ($)	$6.62 (highest third quarter ever)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Interest expense trajectory	Near term (Q4 2024–2025)	Not previously quantified	Expect reduction aided by Fed cuts (50 bps Sep, 25 bps Nov) and lender flexibility (rate floors, fees, covenants)	Raised (more favorable outlook)
CapEx – recliner conversions & premium screens (U.S.)	Next 24 months	Not previously quantified	Target converting 23 screens across 3 theaters; ~70% of U.S. circuit would feature recliners; contingent on landlord negotiations/liquidity	New initiative
Asset monetization (U.S./ANZ)	2024–2025	Identified assets (Q1/Q2 comments)	Proceeding with sales: Williamsport PA industrial site; Cannon Park (Townsville AU); properties in Wellington & Rotorua (NZ); confidentiality until definitive agreements	Maintained/advanced execution
Debt facilities	2024	In-process extensions (Q1/Q2)	Executed: Santander loan extended to Jun 1, 2025 with principal paydowns; BOA defer Oct–Dec 2024 principal to year-end; Valley National 6-month extensions; Westpac line +NZ$5M	Maintained/extended
Dividends	N/A	None disclosed	None disclosed	Maintained

No formal quantitative revenue/EPS/margin guidance provided; commentary is directional.

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 2024)	Previous Mentions (Q1 2024)	Current Period (Q3 2024)	Trend
Hollywood strikes impact & recovery	Weaker box office in Apr–May; Inside Out 2/Deadpool momentum by June/July	Ongoing strike impact; efficiency reduced operating loss; strong slate expected	Lingering impacts ending; Q3 materially stronger than prior 3 quarters	Improving trajectory
Asset monetization to reduce debt	Market Cannon Park (AU) and Wellington parcels; sold Culver City office ($10M)	Monetized Maitland (NSW) and Culver City; pipeline includes Williamsport PA	Advancing sales of Williamsport PA, Cannon Park, Wellington, Rotorua	Execution progressing
Debt amendments, liquidity	NAB bridge A$20M; Westpac +NZ$5M; 44 Union Square extension	Multiple loan extensions (Santander, BOA/BOH, NAB)	Further extensions/deferments; optimistic on rates trending down	Liquidity actions continuing
F&B strategy & loyalty	AU SPP highest 2Q ever; U.S. SPP highest 2Q ever	AU/US operational enhancements	Record F&B SPP across regions; launching free rewards and paid subscription in early 2025	Strengthening monetization
Specialty circuit performance	NA	Strong arthouse performance in Q1 (Zone of Interest, American Fiction)	Specialty box office -32% YoY; comps vs Oppenheimer/Barbie/Asteroid City	Mixed; depends on content
Real estate: live theaters & leasing	Orpheum dark May–June; Audible at Minetta extended	Audible license extended; Big Gay Jamboree planned	Orpheum reopened (Big Gay Jamboree); George Comfort seeking non-office tenant for 44 Union Square	Stabilizing/improving

Management Commentary

“Key financial operating metrics… were all materially stronger than the previous 3 quarters… lingering impacts on our cinema business… have come to an end.” – Ellen Cotter .
“Our Australian Cinema revenue represented the best third quarter performance ever… F&B SPP… highest third quarter of all time.” – Ellen Cotter .
“Our global Real Estate operating income increased 52% to $1.4 million from $920,000.” – Ellen Cotter .
“We are optimistic that the interest rates will be trending downwards… we will work with lenders… to ensure we reduce our interest rates into the future.” – Gilbert Avanes .

Q&A Highlights

U.S. specialty circuit variance: Q3 box office off 32% YoY; Villages and Cinema 123 off >50% due to 70mm Oppenheimer comps; performance is content-driven with November seeing rebound from Anora, A Real Pain, and Conclave .
Circuit optimization and CapEx: closures of four underperforming theaters expected to boost theater-level cash flow long term; plan to convert 23 screens to recliners and add premium formats, contingent on landlord negotiations and liquidity .
Financing posture and rate path: company exploring options across lenders; expects rates to trend down; aims for flexibility on floors, fees, covenants to lower interest expense .
Village East ground lease purchase: working on a transaction to complete acquisition per the decades-old master lease with Sutton Hill; aim to report during Q4 .

Estimates Context

Wall Street consensus (S&P Global) for Q3 2024 EPS/revenue/EBITDA was unavailable due to data access limits at the time of analysis; therefore, we cannot assess beats/misses vs consensus. Comparisons are anchored to company-reported actuals [GetEstimates error; S&P Global].

Key Takeaways for Investors

Sequential momentum: Revenues +28% vs Q2 and EBITDA turned positive, suggesting box office normalization and operational recovery; Australian cinemas are outperforming operationally .
U.S. specialty and screens: YoY pressure is largely attributable to 10% U.S. screen reduction and tougher specialty comps; improvements hinge on content, loyalty rollout, and planned premium recliner upgrades .
Real estate cash flow: Global Real Estate Operating Income +52% YoY, best since Q3 2019, provides diversification and supports liquidity during cinema recovery .
Balance sheet actions: Multiple loan amendments/extensions and asset sale initiatives (Williamsport, Cannon Park, Wellington, Rotorua) are key to reducing interest expense and addressing maturities; monitor execution milestones .
Near-term trading catalyst: Holiday slate with multiple tentpoles may sustain box office strength into Q4; watch for loyalty/subscription program launches to support per-patron monetization .
Risk factors: Higher operating costs in Hawaii/NY/CA and elevated interest expense continue to pressure profitability; rate path and leasing progress at 44 Union Square are swing factors .
2025 setup: Management expects a stronger slate (Avatar 3, Mission: Impossible 8, Jurassic World, Superman) and reduced rates; circuit upgrades could enhance local share and margins if liquidity supports CapEx .

Additional Source Notes

Q3 2024 8-K Item 2.02 and Exhibit 99.1 press release read in full; includes detailed financial tables and non-GAAP reconciliations .
Q3 2024 earnings call transcript read in full; includes operational KPIs, strategy, and Q&A –.
Prior quarter trend analysis used Q2 and Q1 2024 8-K earnings releases with complete financial tables .
Other Q3 2024 press releases: aside from the earnings release, no additional earnings-related press releases were found; Oct 14, 2024 annual meeting notice is not financially material to Q3 results .

READING INTERNATIONAL INC (RDI)·Q3 2024 Earnings Summary