Earnings Call Webcast to Discuss First Quarter Financial Results
Scheduled to Post to Corporate Website on
Key Financial Summary Results –First Quarter 2026
- Total Revenues of
$45.1 million increased by 12% from$40.2 million in Q1 2025. - Representing the best result for this metric since Q1 2019, a reported Operating Loss of
$3.6 million marks a 47% improvement from a$6.9 million Operating Loss reported in Q1 2025. - EBITDA decreased to a negative EBITDA of
$0.8 million compared to a positive EBITDA of$2.9 million in Q1 2025, which 2025 quarter reflected a gain on sale of$6.6 million from the sale of our real estate assets inWellington, New Zealand . - Taking into account that Q1 2025 gain on sale, our Basic Loss per Share of
$0.36 declined by 69% compared to a Basic Loss per Share of$0.21 in Q1 2025. - Taking into account that Q1 2025 gain on sale, our Net Loss Attributable to Reading of
$8.1 million weakened by 71% compared to a loss of$4.8 million in Q1 2025.
In Q1 2026, both the Australian and
President and Chief Executive Officer,
Our Q1 2026 global Real Estate division segment revenues and operating income decreased against Q1 2025. The performance reflects the execution of our strategy to raise liquidity through select asset monetization, most notably the 2025 sales of our real estate assets in
Lastly, our improved Q1 2026 Operating Loss also reflects an 8% reduction in our global General & Administrative costs.”
Cotter continued, “During the first quarter 2026, in an effort to bolster our liquidity, our Board directed Management to begin efforts to sell the Cinemas 1,2,3 building in NYC. And, as of the date of this Release, we are under contract to sell our Napier property in
With a solid first quarter operational start, a balance sheet which continues to be anchored by a strong real estate portfolio, and our global cinemas poised to capitalize on an exciting and robust movie slate through the remainder of the year, while no assurances can be given, we believe our Company is well-positioned to deliver a strong 2026.”
Cinema Business
- With respect to Q1 2026, and compared to Q1 2025, our global cinemas reported (i)
$41.5 million in cinema revenue, representing a 14% increase, and (ii) an operating loss of$1.3 million , representing a 70% improvement. - These positive results were driven by:
(i) Increased attendance at ourU.S. cinemas as a result of an improved Q1 2026 movie slate, despite a 7.3% reduction in ourU.S. screen count due to the 2025 closure of an underperforming cinema;
(ii) Increased attendance in our Australian cinemas as a result of an improved Q1 2026 movie slate, coupled with creative and compelling loyalty program initiatives;
(iii) Improved F&B sales per person (“SPP”) for Q1 2026: (a) at AU$8.09, our Australian Cinema F&B SPP, represented the highest first quarter ever for our Australian Cinemas, and (b) at$8.38 , ourU.S. Cinema F&B SPP also ranked the highest first quarter during which ourU.S. circuit was fully operating (i.e. excluding pandemic closure periods); and
(iv) The strengthening of the Australian andNew Zealand currencies during the first quarter 2026.
- We continue to work with our global cinema landlords to align our occupancy costs with current operating conditions to help manage inflationary pressures and rising labor and operating costs, especially in the
State of Hawaii , where we have experienced a significantly higher increase in operating expenses compared to theU.S. Mainland.
Real Estate Business
- With respect to Q1 2026, and compared to Q1 2025, our global Real Estate business reported (i)
$4.6 million of Real Estate revenue representing a decrease of 5%, and (ii) operating income of$1.4 million representing a 13% decrease. - Our Q1 2026
U.S. Real Estate revenues of$1.8 million represented a 13% increase from Q1 2025 primarily due to the improved performance of ourLive Theatre assets in NYC, including ourMinetta Lane Theatre , which generated its best first quarter in the Company’s history. - As of
December 2025 , we own 100% of our Cinemas 1,2,3 property. In order to improve our liquidity conditions, during the first quarter of 2026, our Board directed management to begin efforts to sell this property. - In
New Zealand , we signed a purchase and sale agreement onMarch 4, 2026 , to monetize our Napier property. The transaction has proceeded to the due diligence period. The transaction contemplates a lease back to us of the cinema at that location. - As of
March 31, 2026 , our combined Australian andNew Zealand property portfolio has 58 third-party tenants, with a portfolio occupancy rate of 98% and total leased gross lettable area of 156,171 SF.
Balance Sheet and Liquidity
As of
- Our cash and cash equivalents were
$5.5 million . - Our assets had a total book value of
$431.5 million , compared to a book value of$434.9 million as ofDecember 31, 2025 . - Our total gross debt of
$184.6 million decreased by$0.5 million fromDecember 31, 2025 . - With respect to our debt position:
- Continuing our efforts to reduce our overall interest expense, our Q1 2026 interest expense decreased by 11% compared to Q1 2025.
- On
February 6, 2026 , we executed an amendment to defer a principal payment related to our44 Union Square loan, which we paid onMarch 13, 2026 . - On
February 27, 2026 , we executed an amendment to modify the principal repayment schedule of ourBank of America/Bank of Hawaii facility. - On
March 31, 2026 , we executed an amendment to reduce our NAB loan’s minimum liquidity requirement for a limited defined period in 2026. - We are currently working to refinance the loan on our live theatre buildings in
New York City .
Conference Call and Webcast
We plan to post our pre-recorded conference call and audio webcast on our corporate website on
A pre-recorded question and answer session will follow our formal remarks. Questions and topics for consideration should be submitted to InvestorRelations@readingrdi.com by
About
Reading’s cinema subsidiaries operate under multiple cinema brands: Reading Cinemas,
Additional information about Reading can be obtained from our Company's website: http://www.readingrdi.com.
Cautionary Note Regarding Forward-Looking Statements
This earnings release contains a variety of forward-looking statements as defined by the Securities Litigation Reform Act of 1995, including those related to our expected operating results; our belief regarding the quality, the quantity and the appeal of upcoming movie releases in the remainder of 2026 and our revenue expectations relating to such movie releases; our positioning for future periods; our expectations regarding the sale and lease back of our Napier property in
Given the variety and unpredictability of the factors that will ultimately influence our businesses and our results of operation, no guarantees can be given that any of our forward-looking statements will ultimately prove to be correct. Actual results will undoubtedly vary and there is no guarantee as to how our securities will perform either when considered in isolation or when compared to other securities or investment opportunities.
Forward-looking statements made by us in this earnings release are based only on information currently available to us and speak only as of the date on which they are made. We undertake no obligation to publicly update or to revise any of our forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable law. Accordingly, you should always note the date to which our forward-looking statements speak.
Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, those factors discussed throughout Part I, Item 1A – Risk Factors and Part II Item 7 – Management's Discussion and Analysis of Financial Condition and Results of Operations of our Annual Report on Form 10-K for the most recently ended fiscal year, as well as the risk factors set forth in any other filings made under the Securities Act of 1934, as amended, including any of our Quarterly Reports on Form 10-Q, for more information.
Unaudited Consolidated Statements of Operations (Unaudited; | ||||||||
| Three Months Ended | ||||||||
| 2026 | 2025 | |||||||
| Revenue | ||||||||
| Cinema | $ | 41,461 | $ | 36,404 | ||||
| Real estate | 3,663 | 3,765 | ||||||
| Total revenue | 45,124 | 40,169 | ||||||
| Costs and expenses | ||||||||
| Cinema | (38,894 | ) | (36,577 | ) | ||||
| Real estate | (1,886 | ) | (1,955 | ) | ||||
| Depreciation and amortization | (3,230 | ) | (3,375 | ) | ||||
| General and administrative | (4,746 | ) | (5,153 | ) | ||||
| Total costs and expenses | (48,756 | ) | (47,060 | ) | ||||
| Operating income (loss) | (3,632 | ) | (6,891 | ) | ||||
| Interest expense, net | (4,228 | ) | (4,742 | ) | ||||
| Gain (loss) on sale of assets | — | 6,526 | ||||||
| Other income (expense) | (488 | ) | (331 | ) | ||||
| Income (loss) before income tax expense and equity earnings of unconsolidated joint ventures | (8,348 | ) | (5,438 | ) | ||||
| Equity earnings of unconsolidated joint ventures | 71 | 23 | ||||||
| Income (loss) before income taxes | (8,277 | ) | (5,415 | ) | ||||
| Income tax benefit (expense) | 143 | 472 | ||||||
| Net income (loss) | $ | (8,134 | ) | $ | (4,943 | ) | ||
| Less: net income (loss) attributable to noncontrolling interests | 13 | (191 | ) | |||||
| Net income (loss) attributable to | $ | (8,147 | ) | $ | (4,752 | ) | ||
| Basic earnings (loss) per share | $ | (0.36 | ) | $ | (0.21 | ) | ||
| Diluted earnings (loss) per share | $ | (0.36 | ) | $ | (0.21 | ) | ||
| Weighted average number of shares outstanding–basic | 22,717,260 | 22,426,184 | ||||||
| Weighted average number of shares outstanding–diluted | 22,717,260 | 22,426,184 | ||||||
Consolidated Balance Sheets ( | ||||||||
| 2026 | 2025 | |||||||
| ASSETS | (Unaudited) | |||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 5,524 | $ | 10,531 | ||||
| Restricted cash | 2,342 | 2,327 | ||||||
| Receivables | 4,270 | 4,553 | ||||||
| Inventories | 1,629 | 1,664 | ||||||
| Prepaid and other current assets | 6,610 | 2,281 | ||||||
| Asset groups held for sale | 24,451 | 460 | ||||||
| Total current assets | 44,826 | 21,816 | ||||||
| Operating properties, net | 182,957 | 207,974 | ||||||
| Operating lease right-of-use assets | 161,932 | 159,659 | ||||||
| Investment in unconsolidated joint ventures | 3,320 | 3,264 | ||||||
| 24,818 | 24,603 | |||||||
| Intangible assets, net | 1,551 | 1,576 | ||||||
| Deferred tax asset, net | 2,499 | 2,619 | ||||||
| Other assets | 9,577 | 13,418 | ||||||
| Total assets | $ | 431,480 | $ | 434,929 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable and accrued liabilities | $ | 59,535 | $ | 52,826 | ||||
| Film rent payable | 3,280 | 6,973 | ||||||
| Debt - current portion | 35,513 | 35,999 | ||||||
| Derivative financial instruments - current portion | 16 | 56 | ||||||
| Taxes payable - current | 211 | 545 | ||||||
| Deferred current revenue | 11,220 | 11,327 | ||||||
| Operating lease liabilities - current portion | 20,392 | 20,081 | ||||||
| Other current liabilities | 782 | 774 | ||||||
| Total current liabilities | 130,949 | 128,581 | ||||||
| Debt - long-term portion | 114,548 | 114,350 | ||||||
| Subordinated debt, non-current portion | 27,672 | 27,617 | ||||||
| Noncurrent tax liabilities | 6,384 | 6,434 | ||||||
| Operating lease liabilities - non-current portion | 164,128 | 162,919 | ||||||
| Other liabilities | 13,186 | 13,126 | ||||||
| Total liabilities | $ | 456,867 | $ | 453,027 | ||||
| Commitments and contingencies (Note 16) | ||||||||
| Stockholders’ equity: | ||||||||
| Class A non-voting common shares, par value | ||||||||
| 33,972,781 issued and 21,036,670 outstanding at | ||||||||
| 33,972,781 issued and 21,036,670 outstanding at | 241 | 241 | ||||||
| Class B voting common shares, par value | ||||||||
| 1,680,590 issued and outstanding at | 17 | 17 | ||||||
| Nonvoting preferred shares, par value | ||||||||
| or outstanding shares at | — | — | ||||||
| Additional paid-in capital | 155,822 | 155,454 | ||||||
| Retained earnings (accumulated deficit) | (137,077 | ) | (128,930 | ) | ||||
| (40,407 | ) | (40,407 | ) | |||||
| Accumulated other comprehensive income | (4,141 | ) | (4,614 | ) | ||||
| (25,545 | ) | (18,239 | ) | |||||
| Noncontrolling interests | 158 | 141 | ||||||
| Total stockholders’ equity | (25,387 | ) | (18,098 | ) | ||||
| Total liabilities and stockholders’ equity | $ | 431,480 | $ | 434,929 | ||||
Segment Results (Unaudited; | ||||||||||||
| Three Months Ended | ||||||||||||
| % Change Favorable/ | ||||||||||||
| (Dollars in thousands) | 2026 | 2025 | (Unfavorable) | |||||||||
| Segment revenue | ||||||||||||
| Cinema | ||||||||||||
| $ | 19,463 | $ | 18,295 | 6 | % | |||||||
| 19,706 | 15,682 | 26 | % | |||||||||
| 2,292 | 2,427 | (6 | ) | % | ||||||||
| Total | $ | 41,461 | $ | 36,404 | 14 | % | ||||||
| Real estate | ||||||||||||
| $ | 1,800 | $ | 1,587 | 13 | % | |||||||
| 2,582 | 3,015 | (14 | ) | % | ||||||||
| 214 | 243 | (12 | ) | % | ||||||||
| Total | $ | 4,596 | $ | 4,845 | (5 | ) | % | |||||
| Inter-segment elimination | (933 | ) | (1,080 | ) | 14 | % | ||||||
| Total segment revenue | $ | 45,124 | $ | 40,169 | 12 | % | ||||||
| Segment operating income (loss) | ||||||||||||
| Cinema | ||||||||||||
| $ | (1,555 | ) | $ | (3,146 | ) | 51 | % | |||||
| 426 | (974 | ) | >100 | % | ||||||||
| (213 | ) | (355 | ) | 40 | % | |||||||
| Total | $ | (1,342 | ) | $ | (4,475 | ) | 70 | % | ||||
| Real estate | ||||||||||||
| $ | 155 | $ | 143 | 8 | % | |||||||
| 1,166 | 1,545 | (25 | ) | % | ||||||||
| 69 | (94 | ) | >100 | % | ||||||||
| Total | $ | 1,390 | $ | 1,594 | (13 | ) | % | |||||
| Total segment operating income (loss) (1) | $ | 48 | $ | (2,881 | ) | >100 | % | |||||
| (1) Total segment operating income is a non-GAAP financial measure. See the discussion of non-GAAP financial measures that follows. | ||||||||||||
Reconciliation of EBITDA and Adjusted EBITDA to Net Income (Loss) (Unaudited; | ||||||||
| Three Months Ended | ||||||||
| (Dollars in thousands) | 2026 | 2025 | ||||||
| Net Income (loss) attributable to | $ | (8,147 | ) | $ | (4,752 | ) | ||
| Add: Interest expense, net | 4,228 | 4,742 | ||||||
| Add: Income tax expense (benefit) | (143 | ) | (472 | ) | ||||
| Add: Depreciation and amortization | 3,230 | 3,375 | ||||||
| EBITDA | $ | (832 | ) | $ | 2,893 | |||
| Adjustments for: | ||||||||
| None | — | — | ||||||
| Adjusted EBITDA | $ | (832 | ) | $ | 2,893 | |||
Reconciliation of Total Segment Operating Income (Loss) to Income (Loss) before Income Taxes (Unaudited; | |||||||
| Three Months Ended | |||||||
| (Dollars in thousands) | |||||||
| Segment operating income (loss) | $ | 48 | $ | (2,881 | ) | ||
| Unallocated corporate expense: | |||||||
| Depreciation and amortization expense | (96 | ) | (133 | ) | |||
| General and administrative expense | (3,584 | ) | (3,877 | ) | |||
| Interest expense, net | (4,228 | ) | (4,742 | ) | |||
| Equity earnings (loss) of unconsolidated joint ventures | 71 | 23 | |||||
| Gain (loss) on sale of assets | — | 6,526 | |||||
| Other (expense) income | (488 | ) | (331 | ) | |||
| Income (loss) before income taxes | $ | (8,277 | ) | $ | (5,415 | ) | |
Non-GAAP Financial Measures
This Earnings Release presents total segment operating income (loss), EBITDA, and Adjusted EBITDA, which are important financial measures for our Company, but are not financial measures defined by
These measures should be reviewed in conjunction with the relevant
Total segment operating income (loss) – We evaluate the performance of our business segments based on segment operating income (loss), and management uses total segment operating income (loss) as a measure of the performance of operating businesses separate from non-operating factors. We believe that information about total segment operating income (loss) assists investors by allowing them to evaluate changes in the operating results of our Company’s business separate from non-operational factors that affect net income (loss), thus providing separate insight into both operations and the other factors that affect reported results.
EBITDA – We use EBITDA in the evaluation of our Company’s performance since we believe that EBITDA provides a useful measure of financial performance and value. We believe this principally for the following reasons:
We believe that EBITDA is an accepted industry-wide comparative measure of financial performance. It is, in our experience, a measure commonly adopted by analysts and financial commentators who report upon the cinema exhibition and real estate industries, and it is also a measure used by financial institutions in underwriting the creditworthiness of companies in these industries. Accordingly, our management monitors this calculation as a method of judging our performance against our peers, market expectations, and our creditworthiness. It is widely accepted that analysts, financial commentators, and persons active in the cinema exhibition and real estate industries typically value enterprises engaged in these businesses at various multiples of EBITDA. Accordingly, we find EBITDA valuable as an indicator of the underlying value of our businesses. We expect that investors may use EBITDA to judge our ability to generate cash, as a basis of comparison to other companies engaged in the cinema exhibition and real estate businesses and as a basis to value our company against such other companies.
EBITDA is not a measurement of financial performance under generally accepted accounting principles in
EBITDA also fails to take into account the cost of interest and taxes. Interest is clearly a real cost that for us is paid periodically as accrued. Taxes may or may not be a current cash item but are nevertheless real costs that, in most situations, must eventually be paid. A company that realizes taxable earnings in high tax jurisdictions may, ultimately, be less valuable than a company that realizes the same amount of taxable earnings in a low tax jurisdiction. EBITDA fails to take into account the cost of depreciation and amortization and the fact that assets will eventually wear out and have to be replaced.
Adjusted EBITDA – using the principles we consistently apply to determine our EBITDA, we further adjusted the EBITDA for certain items we believe to be external to our core business and not reflective of our costs of doing business or results of operation. Specifically, we have adjusted for (i) legal expenses relating to extraordinary litigation, and (ii) any other items that can be considered non-recurring in accordance with the two-year
For more information, contact:Gilbert Avanes – EVP, CFO, and Treasurer(213) 235-2240
