Earnings Call Webcast to Discuss Second Quarter Financial Results
Scheduled to Post to Corporate Website on
- Q2 2026 Total Revenues grew to
$66.9 million , - Q2 2026 Total Revenues highest since pre-Pandemic,
- Q2 2026 Operating Income grew to
$7.5 million , - Q2 2026 EBITDA grew to
$11.3 million .
Key Financial Summary Results – Second Quarter 2026
- Total Revenues of
$66.9 million increased by 11% from$60.4 million in Q2 2025 and represented the highest second quarter Total Revenues since Q2 2019. - Operating Income of
$7.5 million marked a 159% improvement from$2.9 million in Q2 2025 and represented the highest quarter result for this metric since Q2 2018.
- EBITDA of
$11.3 million increased by 79% from$6.3 million in Q2 2025. Our Q2 2025 results included a$1.8 million gain on sale from the sale of ourCannon Park property inAustralia . There were no asset sales in Q2 2026. Further, excluding the Q2 2021 EBITDA that included$43.2 million of gains on real estate asset sales, the Q2 2026 EBITDA represented the best second quarter since Q2 2019. - Q2 Basic Earnings Per Share was
$0.10 against a Q2 2025 Basic Loss Per Share of$0.12 noting the inclusion of asset sales in the Q2 2025 Loss Per Share. Further, excluding the Q2 2021 Basic Earnings Per Share that included$43.2 million of gains on sale from real estate asset sales, the Q2 2026 Basic Earnings Per Share represented the best second quarter since Q2 2019. - Net Income was
$2.3 million against a loss of$2.8 million in Q2 2025. Excluding the Q2 2021 Net Income result, which included gains on sale of$43.2 million from real estate asset sales, the Q2 2026 Net Income represented the best second quarter since Q2 2019.
Key Financial Summary Results – Six Months of 2026
As compared to the same prior period:
- Total Revenues of
$112.0 million increased by 11% from$100.5 million . - Net Operating Income of
$3.8 million improved from a net operating loss of$4.0 million .
- EBITDA of
$10.4 million increased by 14% from$9.2 million . The first six months of 2025 included gains on sale of$8.4 million from the sale of ourCannon Park ,Australia andWellington, New Zealand properties. - Basic Loss Per Share of
$0.26 improved from a Basic Loss Per Share of$0.33 . - Net Loss of
$5.8 million decreased by 25% compared to a Net Loss$7.8 million .
In Q2 2026, the Australian dollar average exchange rate strengthened against the
President and Chief Executive Officer,
This momentum has continued well into the third quarter of 2026, where we have set multiple new records due to the unprecedented success of Spider-Man: Brand New Day and The Odyssey. Our Australian cinema circuit reported the highest and second highest Gross Box Office days in its history on
Our Q2 2026 global Real Estate division segment revenues and operating income were broadly consistent against Q2 2025. Our results reflect the execution of our strategy to raise liquidity through select asset monetization, most notably the 2025 sales of our real estate assets in
From a corporate perspective, our improved Q2 2026 Operating Income also reflects a 19% reduction in our global General & Administrative costs, even with the strengthening of the
Cotter continued, “Following a solid first half of 2026, with a balance sheet which continues to be anchored by a strong real estate portfolio, and our global cinemas being 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
- Our Australian cinema circuit led the way in a quarter which was treated to releases such as The Super Mario Galaxy Movie, The Devil Wears Prada 2, Michael and Toy Story 5. With respect to Q2 2026, and compared to Q2 2025, our global cinemas reported (i)
$63.0 million in cinema revenue, representing an 11% increase and the highest quarterly result since Q4 2019, and (ii) Segment Operating Income of$9.2 million , representing a 68% increase and the best second quarter result since Q2 2019. - These positive results were driven by:
-
- Our Australian circuit, which recorded a 31% increase in total cinema revenue compared to Q2 2025. This circuit set a number of records for box office revenue, food and beverage revenue, total revenue, average ticket price (“ATP”) and F&B spend per patron (“SPP”).
- Our
U.S . circuit returned its highest second quarter segment operating income since Q2 2018, and its highest second quarter ATP in the Company’s history, which was also its third highest quarterly ATP ever at$13.77 . Despite these records in ourU.S . circuit, ourU.S . Q2 2026 attendance decreased, due to (a) the closure of two underperformingSan Diego theaters: one inMay 2026 and one inJune 2025 , (b) the underperformance of the Angelika NYC and other dedicated arthouses, and (c) a movie slate which, while successful, did not match the strength of A Minecraft Movie and Lilo & Stitch especially in ourConsolidated Theatres inHawaii during Q2 2025. - Our
New Zealand circuit Q2 2026 ATP of$15.58 (in functional currency) achieved its highest quarter ever, and its F&B SPP of$7.22 achieved its highest quarter ever as well. - The continued strengthening of our global loyalty programs, including the Reading Rewards program in
Australia which crossed 40,000 paid members in Q2 2026. - The strengthening of the Australian dollar currency during the second 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 Q2 2026, and compared to Q2 2025, our global Real Estate business reported (i)
$4.9 million of Real Estate revenue representing an increase of 4%, and (ii) operating income of$1.6 million representing a 7% increase. - As of
June 30, 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 156,173 SF. - Our Q2 2026
U.S. Real Estate revenues of$1.9 million represented an 11% increase from Q2 2025 primarily due to the improved performance of ourLive Theatre division in NYC. - Through the second quarter, we continued working towards monetizing
- Our Cinemas 123 property in
New York City , which we have owned 100% of sinceDecember 2025 ; and - Our
Newberry Yard train yard inWilliamsport, PA.
- Our Cinemas 123 property in
Balance Sheet and Liquidity
As of
- Our cash and cash equivalents were
$5.7 million . - Our assets had a total book value of
$429.4 million , compared to a book value of$434.9 million as ofDecember 31, 2025 . - Our total short term debt net of deferred finance costs of
$108.0 million increased by$72.0 million fromDecember 31, 2025 . This was due to our Trust Preferred Securities andEmerald Creek Capital loans becoming due within the next twelve months. Further with respect to our debt position:
-
- On
February 6, 2026 , we executed an amendment to defer a principal payment related to our44 Union Square loan, which we since 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. - On
June 12, 2026 , we extended the maturity date of ourBank of America facility toDecember 21, 2026 . - On
August 11, 2026 , we extended the maturity date of our Santander loan facility toOctober 1, 2026 .
- On
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 International, Inc.
Reading International, Inc. (NASDAQ: RDI), an internationally diversified cinema and real estate company operating through various domestic and international subsidiaries, is a leading entertainment and real estate company, engaging in the development, ownership, and operation of cinemas and retail and commercial real estate in the United States, Australia, and New Zealand.
Reading’s cinema subsidiaries operate under multiple cinema brands: Reading Cinemas, Consolidated Theatres, and the Angelika brand. Its live theatres are owned and operated by its Liberty Theaters subsidiary, under the Orpheum and Minetta Lane names. Its signature property developments, including Newmarket Village in Brisbane, Australia and 44 Union Square in New York City, are maintained in special purpose entities.
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 our ability to refinance the loan on our live theater buildings in New York City; and our ability to successfully market and sell our Cinemas 1,2,3 property. You can recognize these statements by our use of words, such as “may,” “will,” “expect,” “believe,” and “anticipate” or other similar terminology.
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.
Condensed Consolidated Statements of Operations (Unaudited; | ||||||||||||||||
| Quarter Ended | Six Months Ended | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Revenue | ||||||||||||||||
| Cinema | $ | 62,990 | $ | 56,782 | $ | 104,451 | $ | 93,186 | ||||||||
| Real estate | 3,906 | 3,596 | 7,569 | 7,361 | ||||||||||||
| Total revenue | 66,896 | 60,378 | 112,020 | 100,547 | ||||||||||||
| Costs and expenses | ||||||||||||||||
| Cinema | (49,910 | ) | (46,883 | ) | (88,803 | ) | (83,460 | ) | ||||||||
| Real estate | (1,936 | ) | (1,840 | ) | (3,822 | ) | (3,795 | ) | ||||||||
| Depreciation and amortization | (3,171 | ) | (3,380 | ) | (6,401 | ) | (6,756 | ) | ||||||||
| General and administrative | (4,402 | ) | (5,384 | ) | (9,148 | ) | (10,537 | ) | ||||||||
| Total costs and expenses | (59,419 | ) | (57,487 | ) | (108,174 | ) | (104,548 | ) | ||||||||
| Operating income (loss) | 7,477 | 2,891 | 3,846 | (4,001 | ) | |||||||||||
| Interest expense, net | (4,320 | ) | (4,354 | ) | (8,549 | ) | (9,096 | ) | ||||||||
| Gain (loss) on sale of assets | — | 1,872 | — | 8,398 | ||||||||||||
| Other income (expense) | 294 | (2,273 | ) | (194 | ) | (2,607 | ) | |||||||||
| Income (loss) before income tax expense and equity earnings of unconsolidated joint ventures | 3,451 | (1,864 | ) | (4,897 | ) | (7,306 | ) | |||||||||
| Equity earnings of unconsolidated joint ventures | 360 | 285 | 431 | 308 | ||||||||||||
| Income (loss) before income taxes | 3,811 | (1,579 | ) | (4,466 | ) | (6,998 | ) | |||||||||
| Income tax benefit (expense) | (1,497 | ) | (1,225 | ) | (1,354 | ) | (753 | ) | ||||||||
| Net income (loss) | $ | 2,314 | $ | (2,804 | ) | $ | (5,820 | ) | $ | (7,751 | ) | |||||
| Less: net income (loss) attributable to noncontrolling interests | 44 | (137 | ) | 57 | (328 | ) | ||||||||||
| Net income (loss) attributable to | $ | 2,270 | $ | (2,667 | ) | $ | (5,877 | ) | $ | (7,423 | ) | |||||
| Basic earnings (loss) per share | $ | 0.10 | $ | (0.12 | ) | $ | (0.26 | ) | $ | (0.33 | ) | |||||
| Diluted earnings (loss) per share | $ | 0.10 | $ | (0.12 | ) | $ | (0.26 | ) | $ | (0.33 | ) | |||||
| Weighted average number of shares outstanding–basic | 22,757,618 | 22,708,206 | 22,738,180 | 22,586,019 | ||||||||||||
| Weighted average number of shares outstanding–diluted | 23,842,505 | 22,708,206 | 22,738,180 | 22,586,019 | ||||||||||||
Condensed Consolidated Balance Sheets ( | ||||||||
| 2026 | 2025 | |||||||
| ASSETS | (Unaudited) | |||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 5,680 | $ | 10,531 | ||||
| Restricted cash | 2,279 | 2,327 | ||||||
| Receivables | 5,627 | 4,553 | ||||||
| Inventories | 1,738 | 1,664 | ||||||
| Prepaid and other current assets | 7,332 | 2,281 | ||||||
| Asset groups held for sale | 24,451 | 460 | ||||||
| Total current assets | 47,107 | 21,816 | ||||||
| Operating properties, net | 181,125 | 207,974 | ||||||
| Operating lease right-of-use assets | 158,851 | 159,659 | ||||||
| Investment in unconsolidated joint ventures | 3,491 | 3,264 | ||||||
| 24,864 | 24,603 | |||||||
| Intangible assets, net | 1,521 | 1,576 | ||||||
| Deferred tax asset, net | 3,406 | 2,619 | ||||||
| Other assets | 9,045 | 13,418 | ||||||
| Total assets | $ | 429,410 | $ | 434,929 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable and accrued liabilities | $ | 56,494 | $ | 52,826 | ||||
| Film rent payable | 5,877 | 6,973 | ||||||
| Debt - current portion | 80,228 | 35,999 | ||||||
| Subordinated debt - current portion | 27,728 | — | ||||||
| Derivative financial instruments - current portion | — | 56 | ||||||
| Taxes payable - current | 1,559 | 545 | ||||||
| Deferred current revenue | 11,018 | 11,327 | ||||||
| Operating lease liabilities - current portion | 20,837 | 20,081 | ||||||
| Other current liabilities | 745 | 774 | ||||||
| Total current liabilities | 204,486 | 128,581 | ||||||
| Debt - long-term portion | 68,559 | 114,350 | ||||||
| Subordinated debt, non-current portion | — | 27,617 | ||||||
| Noncurrent tax liabilities | 6,397 | 6,434 | ||||||
| Operating lease liabilities - non-current portion | 159,842 | 162,919 | ||||||
| Other liabilities | 13,267 | 13,126 | ||||||
| Total liabilities | $ | 452,551 | $ | 453,027 | ||||
| Commitments and contingencies (Note 16) | ||||||||
| Stockholders’ equity: | ||||||||
| Class A non-voting common shares, par value | ||||||||
| 34,145,648 issued and 21,209,537 outstanding at | ||||||||
| 33,972,781 issued and 21,036,670 outstanding at | 243 | 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 | 156,142 | 155,454 | ||||||
| Retained earnings/(accumulated deficit) | (134,807 | ) | (128,930 | ) | ||||
| (40,407 | ) | (40,407 | ) | |||||
| Accumulated other comprehensive income | (4,531 | ) | (4,614 | ) | ||||
| Total | (23,343 | ) | (18,239 | ) | ||||
| Noncontrolling interests | 202 | 141 | ||||||
| Total stockholders’ equity | (23,141 | ) | (18,098 | ) | ||||
| Total liabilities and stockholders’ equity | $ | 429,410 | $ | 434,929 | ||||
Segment Results (Unaudited; | ||||||||||||||||||||||
| Quarter Ended | Six Months Ended | |||||||||||||||||||||
| % Change Favorable/ | % Change Favorable/ | |||||||||||||||||||||
| (Dollars in thousands) | 2026 | 2025 | (Unfavorable) | 2026 | 2025 | (Unfavorable) | ||||||||||||||||
| Segment revenue | ||||||||||||||||||||||
| Cinema | ||||||||||||||||||||||
| $ | 29,478 | $ | 30,258 | (3) | % | $ | 48,941 | $ | 48,553 | 1 | % | |||||||||||
| 29,981 | 22,909 | 31 | % | 49,687 | 38,591 | 29 | % | |||||||||||||||
| 3,531 | 3,615 | (2) | % | 5,823 | 6,042 | (4) | % | |||||||||||||||
| Total | $ | 62,990 | $ | 56,782 | 11 | % | $ | 104,451 | $ | 93,186 | 12 | % | ||||||||||
| Real estate | ||||||||||||||||||||||
| $ | 1,879 | $ | 1,700 | 11 | % | $ | 3,679 | $ | 3,287 | 12 | % | |||||||||||
| 2,762 | 2,741 | 1 | % | 5,343 | 5,756 | (7) | % | |||||||||||||||
| 212 | 212 | — | % | 427 | 455 | (6) | % | |||||||||||||||
| Total | $ | 4,853 | $ | 4,653 | 4 | % | $ | 9,449 | $ | 9,498 | (1) | % | ||||||||||
| Inter-segment elimination | (947 | ) | (1,057 | ) | 10 | % | (1,880 | ) | (2,137 | ) | 12 | % | ||||||||||
| Total segment revenue | $ | 66,896 | $ | 60,378 | 11 | % | $ | 112,020 | $ | 100,547 | 11 | % | ||||||||||
| Segment operating income (loss) | ||||||||||||||||||||||
| Cinema | ||||||||||||||||||||||
| $ | 3,205 | $ | 2,292 | 40 | % | $ | 1,649 | $ | (855 | ) | >100 | % | ||||||||||
| 5,566 | 2,920 | 91 | % | 5,993 | 1,944 | >100 | % | |||||||||||||||
| 387 | 241 | 61 | % | 175 | (110 | ) | >100 | % | ||||||||||||||
| Total | $ | 9,158 | $ | 5,453 | 68 | % | $ | 7,817 | $ | 979 | >100 | % | ||||||||||
| Real estate | ||||||||||||||||||||||
| $ | 183 | $ | 89 | >100 | % | $ | 338 | $ | 231 | 46 | % | |||||||||||
| 1,342 | 1,338 | — | % | 2,508 | 2,882 | (13) | % | |||||||||||||||
| 53 | 52 | 2 | % | 121 | (39 | ) | >100 | % | ||||||||||||||
| Total | $ | 1,578 | $ | 1,479 | 7 | % | $ | 2,967 | $ | 3,074 | (3) | % | ||||||||||
| Total segment operating income (loss) (1) | $ | 10,736 | $ | 6,932 | 55 | % | $ | 10,784 | $ | 4,053 | >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; | |||||||||||||||
| Quarter Ended | Six Months Ended | ||||||||||||||
| (Dollars in thousands) | 2026 | 2025 | 2026 | 2025 | |||||||||||
| Net Income (loss) attributable to | $ | 2,270 | $ | (2,667 | ) | $ | (5,877 | ) | $ | (7,423 | ) | ||||
| Add: Interest expense, net | 4,320 | 4,354 | 8,549 | 9,096 | |||||||||||
| Add: Income tax expense (benefit) | 1,497 | 1,225 | 1,354 | 753 | |||||||||||
| Add: Depreciation and amortization | 3,171 | 3,380 | 6,401 | 6,756 | |||||||||||
| EBITDA | $ | 11,258 | $ | 6,292 | $ | 10,427 | $ | 9,182 | |||||||
| Adjustments for: | |||||||||||||||
| Adjusted EBITDA | $ | 11,258 | $ | 6,292 | $ | 10,427 | $ | 9,182 | |||||||
Reconciliation of Total Segment Operating Income (Loss) to Income (Loss) before Income Taxes (Unaudited; | |||||||||||||||
| Quarter Ended | Six Months Ended | ||||||||||||||
| (Dollars in thousands) | |||||||||||||||
| Segment operating income (loss) | $ | 10,736 | $ | 6,932 | $ | 10,784 | $ | 4,053 | |||||||
| Unallocated corporate expense: | |||||||||||||||
| Depreciation and amortization expense | (83 | ) | (84 | ) | (178 | ) | (219 | ) | |||||||
| General and administrative expense | (3,175 | ) | (3,957 | ) | (6,760 | ) | (7,835 | ) | |||||||
| Interest expense, net | (4,321 | ) | (4,354 | ) | (8,549 | ) | (9,096 | ) | |||||||
| Equity earnings (loss) of unconsolidated joint ventures | 360 | 285 | 431 | 308 | |||||||||||
| Gain (loss) on sale of assets | — | 1,872 | — | 8,398 | |||||||||||
| Other (expense) income | 294 | (2,273 | ) | (194 | ) | (2,607 | ) | ||||||||
| Income (loss) before income taxes | $ | 3,811 | $ | (1,579 | ) | $ | (4,466 | ) | $ | (6,998 | ) | ||||
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
