READING INTERNATIONAL INC
For the period ended Jun 30, 2024. Filed Aug 14, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 14, 2024
RDIB$10.20-3.5%Stored close · as of Nov 5, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-05-15.
0000716634-24-000018
Item 2. – Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-08-14.
0000716634-24-000025
Item 2. – Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 254 previous paragraphs and 268 current paragraphs.
160 unchanged; 63 reworded; 44 added; 26 removed; 5 previous and 1 current paragraphs rearranged.
Tables are not compared: 8 previous and 8 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (44)
Current report
General market and economic conditions.
Current report
We continue to work with our landlords to address our occupancy costs, which are high at current revenue levels. Acknowledging that that there is an excess of cinemas in the U.S, we have been assessing our U.S. holdings and intend to continue to close non-performing locations where reasonable accommodations cannot be worked out with the applicable landlord. Since the beginning of the fourth quarter of 2022, we have not renewed our leases at three locations in Hawaii, one location in Texas and one location in Northern California (all of which suffered from negative theater level cash flow). While from time to time in these negotiations, certain of our existing U.S. cinema landlords have engaged in legal proceedings, in each such pending case, we have reached tentative agreements as to revised going forward lease terms, which agreements are currently being documented. We continue to be confident that in the coming years, our cinema revenue will once again support our real estate development ventures. We have one project in Australia for eight screens in the pipeline today.
Current report
Despite the impact from the 2023 Hollywood Strikes, the box office revenue of certain movies released during the second quarter of 2024 demonstrated strength. As mentioned above, sequel movies such as Inside Out 2, Kingdom of the Planet of the Apes, and Bad Boys: Ride or Diedelivered record breaking results. Inside Out 2 has soared to over $1.5 billion in worldwide box office, becoming the highest grossing animated movie worldwide of all time. This Disney sequel’s domestic opening in June 2024 increased over 71% from the initial movie released in 2015 and became Pixar’s top-grossing movie of all time. Kingdom of the Planet of the Apes currently has a worldwide gross of over $397 million, becoming the 2 nd best domestic 20 th Century Studios movie ever. Witha worldwide gross of over $400 million, Bad Boys Ride or Die, the fourth movie in the series, has now helped the franchise reach over $1.2 billion worldwide. Further growing the second quarter 2024 box office, Civil Warbrought in over $122 million making it A24’s 2 nd highest-grossing movie behind Everything, Everywhere, All at Once.
Current report
The achievement of these films not only reinforces our confidence in the enduring strength of the global cinema industry but also highlights its resilience in the face of past and continuing challenges such as rising operating expenses, labor shortages, changes to movie release dates and supply chain disruptions. As we enter the third quarter of 2024, we are ready to build on this momentum with another exciting movie lineup. Audiences have already been treated to Inside Out 2, Despicable Me 4 and Twisters and now Deadpool & Wolverine. Despicable Me 4 grossed almost $809 million worldwide, catapulting the franchise to over a $5 billion worldwide gross, making it the 3 rd highest movie of 2024 at the domestic box office. Twisters had a positive impact at the box office by having a domestic opening gross of over $81 million and over a 97% increase from its 1996 domestic opening.
Current report
Again, we look forward to a diverse range of upcoming releases for the remainder of 2024, including (i)Beetlejuice Beetlejuice, Transformers One, Joker: Folie a Deux, Venom: the Last Dance, Wicked, Moana 2, Gladiator 2, Mufasa: Lion King and Sonic the Hedgehog 3 and (ii) critically acclaimed films from specialty distributors, including, without limitation, director John Crowley’s We Live in Time, director Andrea Arnold’s Bird, director RaMell Ross’ Nickel Boys, director Luca Guadagnino’s Queer, director James Mangold’s A Complete Unknownand director Pedro Almodovar’s The Room Next Door.
Current report
In the United States, during the first quarter of 2024, we sold our underutilized administrative office building in Culver City, California for $10.0 million.
Current report
With respect to our 44 Union Square property in New York City, during the first quarter we engaged a new leasing broker, George Comfort & Sons (www.gcomfort.com), to head the leasing efforts for the remaining space at 44 Union Square. While the space was originally designed for office uses, given the dramatic presence of the property on Union Square, the rebound in foot traffic being enjoyed by Union Square and our building’s significant branding potential, we are considering, a range of uses beyond traditional office tenants, including short term and special purpose uses.
Current report
Renovation Work: As of June 30, 2024, we have converted 110 of our 193 U.S. auditoriums to luxury recliner seating. As of the date of this Report, we are engaging in discussions with certain landlords in the U.S. about tenant allowances to upgrade certain U.S. cinemas.
Current report
own and operate another ETC known as Cannon Park in Townsville, Australia, which is currently held for sale;
Current report
own property assets in Wellington, New Zealand, (including Courtenay Central , historically operated as an ETC), which are all currently held for sale;
Current report
Real Estate Held for Development
Current report
The combination of the COVID-19 pandemic, the lack of any material U.S. public pandemic financial assistance due to our public company status, the 2023 Hollywood Strike, increased interest rates, inflation, increased labor costs, and decreases in the value of the Australian Dollar and New Zealand Dollar vise a vise the U.S. Dollar, have significantly impacted our cinema operations and necessitated capital conservation to sustain our cinema operations and service our debt. This has required us to rethink our real estate business plan and to monetize a number of properties that had pre-COVID been slated for long term development.
Current report
To date, we have monetized the following property assets:
Current report
(i)Our non-income producing land holdings in Coachella, California and Manukau, New Zealand;
Current report
(ii)Our Redyard ETC in Auburn, Australia
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(iii)Our Royal George live theatre complex in Chicago (slated for redevelopment, and now being redeveloped for residential purposes by the new owner);
Current report
(iv)The land underlying our cinema in Invercargill, New Zealand;
Current report
(v)Our non-competitive four-screen strata title cinema in Maitland, Australia; and
Current report
These properties were identified for sale and sold in significant part because of (i) our need for liquidity due to the circumstances referred to above, (ii) the amount of capital required to materially increase their value in the immediate to mid-term, (iii) they were either non-income producing or provided immaterial cash flow and (iv) in the case of our Culver City office building, the property was not required for our operations because it exceeded our office size requirements
Current report
As of the date of this Report, we have classified the following properties as held for sale:
Current report
(i)The land underlying our cinema in Rotorua, New Zealand;
Current report
(ii)Our approximately 3.7 acre five-parcel assemblage in the entertainment center of Wellington, New Zealand, which includes the Courtenay Central building;
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(iii)Our ETC properties in Townsville (QLD) in Australia known as Cannon Park; and
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(iv)Our industrial land in Williamsport, Pennsylvania (also currently non-income producing).
Current report
In the case of Rotorua, Courtenay Central and Cannon Park, if the potential buyer elects to have a cinema use on the property, we intend to lease back our existing Reading Cinema or a potentially new cinema, in the event the potential buyer elects to build a new cinema.
Current report
Our remaining assets held for development include the Cinemas 1,2,3 in Manhattan, and our various historic railroad properties, the principal of these being our holding in downtown Philadelphia, which is discussed in greater detail below.
Current report
Wellington, New Zealand, including Courtenay Central. – Our Wellington properties include five contiguous parcels representing approximately 161,082 square feet of land located in the entertainment core of Wellington and within walking distance and offering direct views of Wellington Harbor. Assembled over a period of years, we believe our properties represent the largest commercial assemblage available anywhere in Wellington. After recently encountering certain challenges with our development plans, we engaged JLL as our exclusive sales agent to market these key property assets that represent a once-in-a-lifetime development opportunity for a well-capitalized buyer. All five contiguous parcels are currently being marketed for sale by JLL.
Current report
Taking into account this generational development opportunity, together with, among other things, (i) the June 2023 opening of Takina, Wellington’s first and state-of-the-art Convention and Exhibition Center (wcec.co.nz) directly across the street from our properties, (ii) the loosening of certain height and density restrictions, and (iii) the lack of comparable building sites, we believe the international and local market will support a compelling sales price, despite the current interest rate environment.
Current report
It is our intention to structure any monetization transaction to preserve for us the right to lease or operate any cinema that is built or operated on the assemblage, in the future.
Current report
Second Quarter Net Results
Current report
Revenue for the six months ended June 30, 2024, decreased by $19.0 million, to $91.9 million, when compared to the same period in the prior year. This decrease is attributable to lower cinema performances in all countries, as a result of a weaker film slate and a decline in attendance, and reduced rent income in the U.S. and New Zealand.
Current report
Our total segment operating income for the quarter ended June 30, 2024, decreased by $6.1 million, from a gain of $5.8 million to a loss of $0.3 million, primarily due to a weaker film slate, and lower U.S. and NZ rent revenue.
Current report
Our total segment operating income for the six months ended June 30, 2024, decreased by $5.7 million, from an income of $2.2 million to a loss of $3.6 million, primarily due to (i) weakened cinema performance, as attendance declined year-over-year, (ii) a loss in third party rent revenue as the result of the abandonment of the third party tenant of its premises in July 2023, and (iii) an increase in general and administrative expenses.
Current report
Our net loss attributable to Reading International, Inc. for the quarter ended June 30, 2024, increased by $6.6 million, from a loss of $2.8 million to a loss of $9.3 million, when compared to the same period in the prior year, primarily due to weakened cinema and real estate performance along with increased interest expense.
Current report
Second Quarter Results
Current report
For the six months ended June 30, 2024, cinema revenue decreased by $18.8 million, to $84.2 million compared to the same period in the prior year. This decrease was primarily driven by (i) weaker movie slates, and (ii) and lower Average Ticket Price in AU and NZ, along with (iii) a weakening of AU/NZ foreign exchange rates. This was offset by a higher Average Ticket Price in the U.S and higher F&B per capita in Australia.
Current report
Cinema segment operating income for the quarter ended June 30, 2024, decreased by $5.7 million, from an income of $4.5 million to a loss of $1.3 million when compared to the same period in the prior year. This decline of Operating Income is due to a decrease in cinema revenue for all countries as a result of the 2023 Hollywood Strikes.
Current report
Cinema segment operating loss for the six months ended June 30, 2024, increased by $5.3 million, to a loss of $5.4 million when compared to the same period in the prior year primarily due to the same reasons as above.
Current report
Operating expenses for the quarter ended June 30, 2024, decreased by $12.0 million, to $40.6 million, compared to the same quarter in the prior year. Operating expenses for the six months ended June 30, 2024, decreased by $13.0 million, to $82.4 million, compared to the same time period in the prior year. These decreases were due to, decreased film rent expense, decreased food & beverage cost, and decreased U.S. occupancy costs offset by increased Australia occupancy and other operating expenses.
Current report
Second Quarter Results
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Previous report
The number of movies released by the major Hollywood studios and other distributors, while increasing from pandemic levels, have not yet returned to their higher pre-pandemic levels;
Previous report
The duration of the exclusive theatrical release window is under continuing pressure from cable and streaming;
Previous report
Labor costs continue to increase due to inflation and labor shortages and government mandates;
Previous report
Despite the above factors, we believe that with (i) the re-recognition by the major studios, and other distributors, including streamers such as Amazon and Apple, of the economic importance of the theatrical release of movies, (ii) the increasing quantity and quality of films being released to the cinemas compared to pandemic levels and (iii) the expansion of certain movie audiences (such as audiences for concert films and faith based films), the long term prospects for our industry are positive. Still, it is generally recognized that there are currently too many cinemas in the U.S., and we are reviewing and culling our poor performers where possible. Fortunately, most of our cinemas are in strong markets which are not, in our view, over-screened and we believe that oversupply is less of an issue in post-pandemic Australia and New Zealand. We have confidence that in the next few years, we will return to being able to again use our cinema cash flow to support our real estate development activities.
Previous report
We are continuing to address the challenges of the post-COVID world. For instance, we are (i) increasing and improving our automated and self-service options at the cinema level to reduce labor costs, (ii) continuing to focus on our food and beverage offerings and now have liquor licenses for every U.S. cinema, and (iii) continuing to expand our alternative content program with the intention of attracting a broader and more diversified range of patrons.
Previous report
We are also continuing to reduce our fixed costs of operation by closing non-performing cinemas upon the expiration of their current lease terms. In addition, in light of potential impacts to the movie release schedule in the next few years due to the 2023 Hollywood Strikes, we are in the process of seeking occupancy relief from existing cinema landlords.
Previous report
Despite the impact from the 2023 Hollywood Strikes, the end of the first quarter of 2024 delivered stronger box office results. Audiences were treated to the eagerly anticipated return of beloved franchises, with highlights including the success of Dune: Part Two. Surpassing its predecessor's performance from 2021, Dune: Part Two has soared to over $710 million in worldwide grosses, solidifying its place as one of the most successful IMAX releases of all time. Adding to the excitement, after an eight-year hiatus, the fourth installment of the Kung Fu Panda franchise delighted audiences worldwide. Kung Fu Panda 4 has generated over $529 million in worldwide grosses, pushing the franchise past the $2 billion mark and securing its position as the seventh highest-grossing animated franchise ever. Further bolstering the box office of Q1 2024 was the highly anticipated biopic, Bob Marley: One Love. Premiering on February 14th, the film made history as the highest-grossing Valentine’s Day opener ever, pulling in over $14 million in domestic grosses on its debut. As of today, Bob Marley: One Love has amassed over $177 million in worldwide grosses. Finishing off the first quarter of 2024, Godzilla x Kong: The New Empire has also generated over $558 million in worldwide grosses since its release on March 29.
Previous report
The success of these films not only bolsters our confidence in the enduring strength of the global cinema industry but also underscores its resilience in the face of persistent challenges, including rescheduled release dates, labor shortages, supply chain disruptions, and escalating costs. The unwavering enthusiasm of moviegoers for the cinematic experience has been instrumental in driving this success. As we venture into the second quarter of the year, we are poised to capitalize on this momentum with another compelling movie lineup. Audiences can anticipate a diverse range of releases, including Inside Out 2, The Garfield Movie, A Quiet Place: Day One and Bad Boys: Ride or Die.
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In the United States, during the first quarter of 2022, we leased to Petco Animal Supplies Stores, Inc. (“Petco”), the cellar, ground floor, and second floor of our 44 Union Square property, representing approximately 42 percent of the leasable area of that building. Petco is in possession of the space and began paying cash rent in December 2022. Petco’s 44 Union Square flagship store opened on June 1, 2023.
Previous report
We recognize that the lingering effects of the pandemic on the office leasing market in New York City, coupled with the slow pace of the “return to office” effort, have presented challenges in finding an office tenant for the space at 44 Union Square. As a result, we are also exploring non-office and alternative uses for the remaining space within the building. To bolster our efforts, we recently engaged George Comfort & Sons as our exclusive leasing broker for the remaining space. Leveraging their esteemed reputation and extensive experience in New York City real estate, we are optimistic about their ability to bring fresh perspectives and innovative strategies to attract tenants to 44 Union Square. We remain prepared for any leasing opportunities that may arise. With mortgage financing already secured for the project, we are well-positioned to cover leasing and tenant improvement costs upon securing a tenant.
Previous report
With respect to our assets in Wellington, New Zealand, we were approached by the Wellington City Council (“WCC”) in late 2022 about accelerating the redevelopment of our cinema and retail property known as Courtenay Central. For approximately 18 months, we engaged with representatives of the WCC about a transaction that would accelerate the redevelopment of our Courtenay Central building. While we were able to negotiate an agreement that was approved by the WCC and which would have facilitated financing for the initiation of the project, that agreement required the negotiation of definitive additional documentation. After months of negotiating that documentation and believing that we had substantively finished it in all material respects, negotiations were purportedly terminated by the WCC on a unilateral basis without warning. Following this, the Company is reassessing its options with respect to all of our real estate holdings in Wellington.
Previous report
(3)Our total location counts as of March 31, 2024, reflects all operating cinemas, including (i) the Angelika Cinemas at South City Square in Australia, which opened on August 24, 2023, (ii) the Reading Cinemas at Busselton in Australia, which opened on September 22, 2023, (iii) the Reading Cinemas at Courtenay Central in New Zealand, which remains closed for seismic issues and (iv) two underperforming Consolidated Theatres in Hawaii were closed, as of July 9, 2023 and July 31, 2023, respectively, one underperforming Reading Cinemas in Northern California closed on November 1, 2023, and one underperforming Reading Cinemas in New Zealand was closed on May 7, 2023.
Previous report
Renovation Work: As of March 31, 2024, we have converted 110 of our 198 U.S. auditoriums to luxury recliner seating. We have an agreement in place with our landlord at the Dallas Angelika for a complete remodel of that cinema.
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Value-creating Opportunities
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While the COVID-19 pandemic significantly impacted the global cinema industry and necessitated capital conservation to sustain our cinema operations, resulting in delays in executing many of our Company’s real estate development plans, we are now actively refocusing on advancing these initiatives as we continue to operate in post-pandemic era. Our commitment to the prudent development of our real estate assets remains steadfast, and we are dedicated to leveraging this post-pandemic period to go forward with our strategic real estate endeavors.
Previous report
Courtenay Central Redevelopment (Wellington) – Our Wellington property is comprised of three parcels representing approximately 161,082 square feet of land in the entertainment core of Wellington. While our own plans for the redevelopment of our cinema complex at Courtenay Central have encountered difficulties (see discussion above under the Caption Real Estate Developments) we remain optimistic about the potential for our Wellington assemblage, in light of, among other things, (i) the successful June 3, 2023 opening of Takina Wellington Convention and Exhibition Center (wcec.co.nz), this capital city’s first premium conference and exhibition space, (ii) the loosening of certain height and density restrictions, and (iii) the lack of comparable building sites. We are currently in the process of reassessing our options.
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First Quarter Net Results
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Our total segment operating loss for the quarter ended March 31, 2024, improved by $0.3 million, from a loss of $3.6 million to a loss of $3.3 million, primarily due to improved operating income from our U.S. cinema circuit as a result of lower operating expenses, partially offset by increases in general and administrative expenses, along with a decrease in property operating gain primarily due to the loss of third party rental revenue from our Culver City Office building which was sold in February 2024.
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First Quarter Results
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Cinema segment operating loss for the quarter ended March 31, 2024, improved by $0.4 million, from a loss of $4.6 million to a loss of $4.2 million when compared to the same period in the prior year. The improvement is primarily due to improved operating income from our U.S. cinema circuit as a result of lower operating expenses from having shut down underperforming cinemas.
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Operating expenses for the quarter ended March 31, 2024, decreased by $1.0 million, to $41.9 million, compared to the same quarter in the prior year. This decrease was due to lower occupancy expenses and other operating expenses in U.S. and New Zealand as a result of the recent cinema closures that occurred in the second half of 2023, partially offset by higher operating expenses in Australia.
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Depreciation, amortization, impairment, general and administrative expense
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Depreciation, amortization, impairment, and general and administrative expenses for the quarter ended March 31, 2024, decreased by $0.1 million, to $3.6 million, compared to the same quarter in the prior year. These decreases were due to a decrease in depreciation and amortization due to a delay in Capex spending.
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First Quarter Results
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In order to further bolster our liquidity and capital resources, our Board of Directors has directed management to review the Company’s real estate portfolio for potential assets to monetize. As of the date of this report, Management has received specific authorization from the Board to progress the monetization of our Cannon Park assets in Townsville, Queensland Australia. Management is also analyzing potential monetization strategies for certain of its real estate assets in New Zealand.
Previous report
competition from a newly restructured Regal, which may have lower occupancy costs than we do.
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Previous wording
We continue to be optimistic about the current trajectory of our cinema business and the cinema industry as a whole. Although we remain positive, we are currently, and have in recent years, been impacted by multiple factors, such as COVID-19, the 2023 Hollywood Strikes and current macroeconomic situations. These factors are largely beyond our control, and continue to adversely impact the profitability of our global cinema segment when compared to pre-pandemic levels:
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We continue to be optimistic about the current trajectory of our cinema business and the cinema industry as a whole. Although we remain positive, we are currently, and have in recent years, been impacted by multiple factors, such as COVID – 19, the 2023 Hollywood Strikes and current macroeconomic situations such as inflation, interest rates, labor increases and the declining value of the Australian and New Zealand dollars. These factors are largely beyond our control, and continue to adversely impact the profitability of our global cinema segment when compared to pre-pandemic levels:
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Cinema patronage levels that have not yet returned to the pre-pandemic levels;
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Cinema patronage levels have not yet returned to pre-pandemic levels;
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Inflationary pressures, ongoing supply chain issues and increased operating expenses arising post-pandemic continue to push up our variable costs while we encounter consumer resistance to higher ticket prices;
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Inflationary pressures, ongoing supply chain issues, mandatory minimum wage increases, increased operating expenses all arising post-pandemic continue to push up our variable costs while we encounter consumer resistance to higher ticket prices;
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Increased fixed costs for third party cinema rents, some of which are increasing due to fixed rent escalations, some of which are fixed and some of which are adjusted by reference to changes in the cost of living index, which are exacerbated by having to also pay our COVID-19 related rent deferrals for the periods of time when our operations were closed or restricted;
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Increased fixed costs for third party cinema rents, some of which are increasing due to fixed rent escalations, some of which are fixed and some of which are adjusted by reference to changes in the cost-of-living index, which are exacerbated by having to also pay COVID-19 related rent deferrals for the periods of time when our operations were closed or restricted;
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Reserve banks in the U.S., Australia and New Zealand have increased interest rates causing our cost of borrowing to increase materially; and
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Reserve banks in the U.S., Australia and New Zealand have increased interest rates causing our cost of borrowing to increase materially;
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Declines in exchange rates for the Australian and New Zealand currencies when compared to the U.S. Dollar.
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Decreases in exchange rates for the Australian and New Zealand currencies when compared to the U.S. Dollar; and
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In addition to the above factors influencing the revenue streams of our global cinema business, we are closely monitoring the repercussions of the 2023 Hollywood strikes on our operations. While we celebrated the resolution of the strikes, we acknowledge that their aftermath will continue to impact our global cinema business throughout 2024, primarily due to production delays and the rescheduling of theatrical release dates. Several notable titles initially slated for 2024 have been postponed to 2025, including Captain America: Brave New World, Thunderbolts, Disney’s Snow White, Elio, Mission: Impossible 8, SpongeBob SquarePants, and James Cameron’s eagerly awaited Avatar sequel. However, the remaining 2024 film lineup remains robust, featuring highly anticipated releases that are expected to continue driving audiences to our big screens, including: Inside Out 2, Deadpool & Wolverine, Joker: Folie a Deux, Wicked, and Gladiator 2.
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In addition to the above factors negatively influencing the profitability of our global cinema business, we continue to feel the repercussions of the 2023 Hollywood Strikes on our second quarter 2024 operations. Several notable movie titles initially slated for 2024 have been postponed to 2025, including Captain America: Brave New World, Thunderbolts, Disney’s Snow White, Elio, Mission: Impossible 8, SpongeBob SquarePants, and James Cameron’s eagerly awaited Avatar sequel. While certain second quarter 2024 movies such as Kingdom of the Planet of the Apes, Bad Boys: Ride or Dieand Inside Out 2 delivered impressive box office performances, they did not save the second quarter of 2024 in comparison to the same period in 2023. Three recent releases, in addition to Inside Out 2, which is now the highest grossing animated movie of all time worldwide, have exceeded box office expectations, but were released either late in the second quarter, or in the third quarter of 2024 and, consequently, did not materially impact our results in the first two quarters: Despicable Me 4 (global box office to date of $809 million), Twisters(global box office to date of $312 million) and Deadpool & Wolverine (global box office to date of $1.0 billion). However, theremaining 2024 film lineup looks strong, featuring highly anticipated releases expected to continue driving audiences to our big screens, including: Joker: Folie a Deux, Wicked, Moana 2, Gladiator 2 and Mufasa: Lion King. Even though we continue to monitor the above factors, we are optimistic about the long-term outlook for our industry for several reasons: (i) more product is being produced catering to niche cinema audiences, like those for concert films and faith-based movies, (ii) major studios and distributors, including streaming platforms such as Amazon, Apple TV and Netflix recognize the economic importance of the theatrical movie release window not only for its contribution to box office revenues, but also as a platform to publicize and differentiate their product from other product available on cable or through streaming, and (iii) the attendance levels of certain highly anticipated, well marketed movies have demonstrated that moviegoers will leave their homes for a night at the movies at attendance rates comparable to pre-pandemic blockbusters.
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In the beginning of 2024, recognizing a reduction in our corporate demand for administrative space, we streamlined our operations by divesting our administrative building in Culver City, California. This strategic move freed up approximately $1.2 million in cash reserves after covering mortgage settlements, brokerage commissions, and transactional fees. It is our expectation that this asset disposition will yield savings of approximately $1.5 million in operational and holding expenses between now and the end of 2025.
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Recognizing our needs for administrative space reduced in 2024, we streamlined our operations by divesting our administrative building in Culver City, California, freeing up$1.2 million in cash after covering mortgage settlements, brokerage commissions, and transactional fees. It is our expectation that this asset disposition will yield savings of approximately $1.5 million in operational and holding expenses between now and the end of 2025. At the present time, we are managing our California overhead by working remotely, while we work to relocate in less expensive right-sized space.
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Additionally, we anticipate sustained improvements in the operational performance of our cinemas as our global circuit continues its recovery. One driving factor for this optimism is the ongoing expansion and refinement of our F&B menus. Notably, as mentioned above, in 2023, our U.S. circuit became 100% licensed for the sale of liquor, beer and wine. Looking ahead, we are committed to obtaining liquor licenses and enriching our F&B offerings across our circuits in Australia and New Zealand. This strategic focus underscores our dedication to enhancing the overall cinema experience for our valued customers.
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Additionally, we anticipate sustained improvements in the operational performance of our cinemas as our global circuit continues its recovery. One driving factor for this optimism is the ongoing expansion and refinement of our Food and Beverage (“F&B”) menus. Notably, as mentioned above, in 2023, we can sell beer and wine in 100% of our U.S. cinemas and can sell liquor in all, but three, U.S. Cinemas. We are in the process of seeking the licenses to sell liquor at each of these U.S. Cinemas, along with beer and wine. Looking ahead, we are committed to obtaining liquor licenses and enriching our F&B offerings across our circuits in Australia and New Zealand. This strategic focus displays our dedication to enhancing the overall cinema experience for our valued customers.
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As of March 31, 2024, all of our tenants were currently open for business at our Australian and New Zealand properties. Most of the rentable retail portions of our Courtenay Central location in New Zealand continue to be closed due to seismic concerns, however one tenant remains open and trading. Furthermore, there is also one tenant trading on our Wakefield property. Our open land areas in Wellington are generating parking revenues.
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As of June 30, 2024, all of our tenants (excluding one tenant completing refurbishment upgrade works and one tenant completing make good works) were currently open for business at our Australian and New Zealand properties. Most of the rentable retail portions of our Courtenay Central location in New Zealand continue to be closed due to seismic concerns, however one tenant remains open and trading. Furthermore, there is also one tenant trading on our Wakefield property. Our open land areas in Wellington are generating parking revenues.
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Our development endeavors have largely been put on hold (other than advancing certain predevelopment work). Our limited capital expenditures during 2023 and the first quarter of 2024 have been largely focused on the enhancement of our existing cinemas.
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Due to our liquidity needs, our development endeavors have largely been put on hold. Our limited capital expenditures during 2023 and the first half of 2024 have been largely focused on the enhancement of our existing cinemas. To increase our liquidity, in addition to our industrial property in Williamsport, Pennsylvania, the Company has listed for sale its property assets in (i) Townsville (Queensland), Australia, (ii) Wellington, New Zealand and (iii) Rotorua, New Zealand.
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Cinema exhibition, through our 61 cinemas as of March 31, 2024.
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Cinema exhibition, through our 60 cinemas as of June 30, 2024.
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We believe these two business segments complement and support one another. Prior to COVID-19, we used cash flows generated by our cinema operations to fund the front-end cash demands of our real estate development business. As a result of COVID-19, we relied more upon income from our real estate assets, and tapped into the imbedded value in those assets, to support our Company through the COVID-19 crisis. As the residual COVID-19 and the 2023 Hollywood Strikes impacts continue to subside, quality film product will improve and entice patrons to return to our cinemas, reaffirming our belief that we will once again be able to rely on the cash flows generated by our cinema portfolio.
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We believe these two business segments complement and support one another. Prior to COVID-19, we used cash flows generated by our cinema operations to fund the front-end cash demands of our real estate development business. Post pandemic, we relied more upon income from our real estate assets, and tapped into the imbedded value in those assets, to support our Company through the COVID-19 crisis. As the impact of residual macroeconomic issues diminishes and the movie release schedule improves in terms of both quality and quantity thereby enticing patrons back to our cinemas, we believe that we will once again be able to rely on the cash flows generated by our cinema portfolio. For example, a 100-basis point reduction in rates would save us $2 million per year.
Previous wording
Despite the fact that our global cinema segment is improving at an income level, in light of our upcoming liquidity needs due to debt maturities, we have identified certain real estate assets to monetize to support our liquidity needs and will be exploring the monetization of other properties to the extent our liquidity needs require. We are steadfast in our belief that our two-pronged, diversified international business strategy will keep carrying our Company through these difficult times as we continue to navigate the uncertainty and challenges posed by the recent macroeconomic obstacles. See Note 3 –Impacts on our Business Due to the COVID-19 Pandemic, the 2023 Hollywood Strikes, the Dramatic Interest Rate Rise and Increased Operating Costs, together with our Company’s Resources, above.
Current wording
Despite our confidence in the long-term viability of the cinema industry, in light of our upcoming liquidity needs due to debt maturities and other factors, we have identified certain real estate assets to monetize and will be exploring the monetization of other properties to the extent our liquidity needs require. We are steadfast in our belief that our two-pronged, diversified international business strategy will keep carrying our Company through these difficult times as we continue to navigate the uncertainty and challenges posed by the recent macroeconomic obstacles. See Note 3 –Liquidity and Impairment Assessment.
Previous wording
A key performance indicator utilized by management in our cinema segment is Food and Beverage (“F&B”) Spend Per Patron (“SPP”), which is calculated based on our total Food & Beverage Revenues on a post-tax basis divided by our attendance during a specific period.
Current wording
A key performance indicator utilized by management in our cinema segment is F&B Spend Per Patron (“SPP”). This metric is calculatedby dividing ourpost-tax Food & Beverage Revenuesby the number of cinema attendees during a specific period.
Previous wording
One of our strategic priorities has been to continue upgrading the food and beverage menu at several of our global cinemas. As of March 31, 2024, we have a total of 39 theater locations with elevated food and beverage menus (i.e. menus that are beyond traditional popcorn, soda, and candy). We use F&B SPP as a measure of our food and beverage operational performance as compared to that of our competitors. Although the profitability of our food and beverage operations is influenced by numerous factors, including labor and cost of goods, F&B SPP serves as an indicator of our ability to achieve consistent strong top-line performance. In addition, F&B SPP highlights our ability to optimize revenue by effectively promoting and selling supplementary products to our customers during each visit. Moreover, this metric assists in evaluating how well we can differentiate our F&B offerings from our competitors. Management in turn uses F&B SPP to adjust food and beverage pricing strategies at our individual theaters, measure the effectiveness of promotional marketing initiatives, optimize menu offerings, and to ensure price barriers are not created for our attendance.
Current wording
One of our strategic priorities has been to continue upgrading the food and beverage menu at several of our global cinemas. As of June 30, 2024, we have a total of 38 theater locations with elevated food and beverage menus (i.e. menus that are beyond traditional popcorn, soda, and candy). We use SPP to assess our food and beverage performance compared to our competitors. While various factors like labor and cost of goods affect our F&B profitability, SPP indicates our ability to maintain strong top-line performance. It also reflects our success in generating additional revenue by promoting and selling supplementary products to our customers during their visits. Furthermore, this metric helps us evaluate how well we differentiate our F&B offerings from competitors. Management uses F&B SPP to adjust pricing strategies, measure the effectiveness of marketing initiatives, optimize menu offerings, and ensure that prices remain accessible to our customers.
Previous wording
An additionalkey performance indicator utilized by management in our cinema segment is Average Ticket Price (“ATP”) Per Patron, which is calculated based on our total Box Office Revenues on a post-tax basis divided by our attendance during a specific period. ATP serves to measure our operational cinema performance when compared to that of our competitors. ATP is a useful metric for evaluating our ability to achieve a strong top line performance, gauging the effectiveness of our cinemas’ pricing strategies and our ability to draw back audiences to our theaters. Management uses ATP to adjust and inform ticket pricing schemes for our individual theaters, measure the effectiveness of our content programming, and ensure that price barriers are not created for core guests.
Current wording
Another key performance indicator used by management in our cinema segment is Average Ticket Price (“ATP”) per Patron, which is calculated based on our total Box Office Revenues on a post-tax basis divided by our cinema attendance during a specific period. ATP measures our operational cinema performance when compared to that of our competitors. ATP is a useful metric for evaluating our ability to achieve a strong top line performance, gauging the effectiveness of our cinemas’ pricing strategies and our ability to entice customers back to our theaters. Management uses ATP to adjust and inform ticket pricing schemes for our individual theaters, measures the effectiveness of our content programming, and ensures that price barriers are not created for our guests.
Previous wording
The key performance indicators used by management in our real estate segment with respect to our properties held for rent (other than our Live Theatres) are net operating income, occupancy factor (the percentage of the net rentable area of our properties that is leased) and average lease duration. Set forth in the table below are a comparison of these indicators for our first quarter 2024 compared to our first quarter 2023. As a matter of clarification, we do not include in our calculation of net rentable area available for lease any space that is closed for renovation or redevelopment (such as our Courtenay Central property).
Current wording
The key performance indicators used by management in our real estate segment with respect to our properties held for rent (other than our Live Theatres) are net operating income, occupancy factor (the percentage of the net rentable area of our properties that is leased) and average lease duration. Set forth in the table below is a comparison of these indicators for thesecond quarter and six months ended June 30, 2024 compared to the corresponding periods in 2023. As a matter of clarification, we have not included in our calculation of net rentable area available for lease any space that is closed for renovation or redevelopment (such as our Courtenay Central property).
Previous wording
In the case of our Live Theatres, with respect to key performance indicators, we primarily look to the live theater rental revenue and ancillary income from the theatres. This key performance indicator represents box office revenues less amounts paid to producers for license fee settlements, plus ancillary income earned by us from certain theater operations. Our live theater rental revenue and ancillary income for the first quarter 2024 was $413,402 and was $339,364 for the first quarter 2023.
Current wording
In the case of our Live Theatres, with respect to key performance indicators, we primarily look to the live theater rental revenue and ancillary income from the theatres. This key performance indicator represents box office revenues less amounts paid to producers for license fee settlements, plus ancillary income earned by us from certain theater operations. Our live theater rental revenue and ancillary income for thesecond quarter of 2024 was $415,814 which decreased from$566,196 in thesecond quarter of 2023.
Previous wording
In the case of our development properties (such as 44 Union Square in New York City and our various properties in Wellington, New Zealand) we do not have specific key performance standards to compare performance from period to period. Rather we look to budgets and projections and compare actual results to budgeted or projected results from time to time.
Current wording
Historically, in the case of our development properties (such as 44 Union Square in New York City and our various international properties sch as Newmarket Village in Australia), we have no specific key performance standards to compare performance from period to period. Rather we continue to analyze budgets and projections and compare actual results to budgeted or projected results from time to time.
Previous wording
in the U.S., under the Reading Cinemas, Angelika Film Centers, and Consolidated Theatres brands.
Current wording
in the U.S., under the Reading Cinemas, Consolidated Theatres and Angelika Film Center brands.
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in Australia, under the Reading Cinemas, Angelika Cinemas, the State Cinema by Angelika, and for our one unconsolidated joint venture theatre, Event Cinemas brands.
Current wording
in Australia, under the Reading Cinemas, Angelika, and, for our one unconsolidated joint venture theatre, Event Cinemas brands.
Previous wording
South City Square, Brisbane, Australia: On August 24, 2023, we launched our first-ever Angelika Cinemas outside of the United States at South City Square in Woolloongabba, Brisbane. The location operates as an eight-screen complex, featuring elevated food and beverage offerings (including alcoholic beverages) and recliner seating.
Current wording
South City Square, Brisbane, Australia: On August 24, 2023, we launched our first-ever Angelika Cinemas outside of the United States at South City Square in Woolloongabba, Brisbane. The location operates as an eight-screen complex, featuring elevated food and beverage offerings (including alcoholic beverages), and recliner seating. Three of the auditoriums, known as Soho Lounge cinemas, offer table-service.
Previous wording
Our Board has authorized management to proceed with the negotiation of leases for one new state-of-the-art cinema, located in Noosa, Queensland, Australia.
Current wording
Our Board has authorized management to proceed with the negotiation of lease for one new state-of-the-art cinema, located in Noosa, Queensland, Australia.
Previous wording
(5)Liquor Licenses: Licenses are applicable at each cinema location, rather than each cinema auditorium. As of today, we have liquor licenses in 100% of our cinemas operating in the U.S. In Australia, 72% of our cinemas are licensed and we have three liquor licenses pending. In New Zealand, 33% of our cinemas are licensed and we have two liquor licenses pending.
Current wording
(5)Liquor Licenses: Licenses are applicable at each cinema location, rather than each cinema auditorium. As of today, we (i) have licenses in 100% of our cinemas operating in the U.S. to sell beer and wine and (ii) we are working to add liquor to our licenses in our three New York City cinemas. In Australia, 83% of our cinemas are licensed and we have one liquor licenses pending. In New Zealand, 33% of our cinemas are licensed and we have zero liquor licenses pending.
Previous wording
Rouse Hill renovation: Reading Cinema Rouse Hill will undergo a lease obligated refurbishment focusing on the foyer, concessions, including the introduction of hot food offerings, and the addition of another all reclining Premium auditorium. The Preliminary drawings have been completed and will develop into a construction set for project/lessor approval, building consents and tender.
Current wording
Rouse Hill renovation: Our Reading Cinema in Rouse Hill (NSW) will undergo a lease obligated refurbishment focusing on the foyer, concessions, including the introduction of hot food offerings, and the addition of another all reclining Premium auditorium. The preliminary drawings have been completed and we are developing construction drawings for applicable approvals.
Previous wording
Other Cinema Upgrades: In addition, during the three-year period 2021 to 2023, we have improved Sunbury and State Cinema in Australia, as well as some non-lease driven renovations at Rouse Hill in New South Wales, Australia.
Current wording
Other Cinema Upgrades: In addition, during the three-year period of 2021 to 2023, we improved our Reading Cinemas in Sunbury (VIC) and the State Cinema (TAS) in Australia.
Previous wording
During 2024, we will continue to focus on the enhancement of our proprietary online ticketing and Food & Beverage capabilities, together with improving and expanding our social media platforms and interfaces. These are intended to enhance the convenience of our offerings and to promote guest affinity with the experiences and products that we are offering.
Current wording
During 2024, we will continue to focus on the enhancement of our proprietary online ticketing and Food & Beverage capabilities, together with improving and expanding our social media platforms and interfaces. These are intended to enhance the convenience of our offerings and to promote guest affinity with the experiences and products we offer.
Previous wording
On May 7, 2023, The Hutt Pop-Up in New Zealand was permanently closed due to the expiration of our lease for that location. We chose not to continue the cinema as it was only brought online as a “pop up” to address a temporary opening in the market. During 2023, we have also closed and terminated our lease agreements at two underperforming Consolidated Theatre locations in Hawaii (Koko Marina Center and Queen Kaahumanu Center) and a Reading Cinemas in California (Rohnert Park). One cinema was on a month-to-month arrangement and the other two were at the end of their respective terms. The decision to terminate these three venues was based on our belief that none of these locations could be operated profitably in the current environment on any meaningful rent paying basis at the rents being demanded by their respective landlords.
Current wording
On May 7, 2023, The Hutt Pop-Up in New Zealand was permanently closed due to the expiration of our lease for that location. We chose not to continue the cinema as it was only brought online as a “pop up” to address a temporary opening in the market. Since the fourth quarter of 2022, we have closed five cinema locations, all of which were loss makers: three in Hawaii, one in Northern California and one in Texas.
Previous wording
Through our various subsidiaries, we engage in the real estate business through the development, ownership, rental or licensing to third parties of retail, commercial, and live theatre assets. Our real estate business creates long-term value for our stockholders through the continuous improvement and development of our investment and operating properties, including our ETCs. In addition to owning the fee interests in nine of our cinemas (as presented in the table under Cinema Exhibition Overview), as of March 31, 2024, we:
Current wording
Through our various subsidiaries, we engage in the real estate business through the development, ownership, rental or licensing to third parties of retail, commercial, and live theatre assets. Our real estate business is intended to create long-term value for our stockholders through the continuous improvement and development of our investment and operating properties, including our ETCs, and has, in recent times and will over the next 12 months, assist our liquidity needs through various asset monetizations. In addition to owning the fee interests in nine of our cinemas (as presented in the table under Cinema Exhibition Overview), as of June 30, 2024, we:
Previous wording
own and operate three ETCs known as Newmarket Village (in a suburb of Brisbane), The Belmont Common (in a suburb of Perth), and Cannon Park (in Townsville) in Australia. We also own Courtenay Central (in Wellington) in New Zealand, which we historically operated as an ETC;
Current wording
own and operate two ETCs known as Newmarket Village (in a suburb of Brisbane) and the Belmont Common (in a suburb of Perth)in Australia;
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owned and operated our administrative office building in Culver City, California, which was sold on February 23, 2024;
Current wording
(vi)Our administrative office building in Culver City, California.
Previous wording
44 Union Square Redevelopment (New York, N.Y.) –On January 27, 2022, we finalized a long-term lease agreement with Petco, securing occupancy of the cellar, ground floor, and second floor of the building, amounting to 42% of the leasable area. Petco commenced full-rent, cash-paying occupancy and officially opened its doors to the public on June 1, 2023. During mid-March 2024, we engaged George Comfort & Sons as our exclusive leasing broker for the remaining space at 44 Union Square. Originally designated for office use, the property's striking presence in Union Square, coupled with the resurgence of foot traffic in the area, and its exceptional branding potential, prompt us to explore a spectrum of uses beyond traditional office tenants. This includes consideration for short-term and special-purpose arrangements. While we cannot guarantee the successful leasing of the remaining space, we are optimistic that George Comfort & Sons, well known for their extensive experience in New York City real estate, will bring a fresh perspective and innovative strategies to activate the remaining space at 44 Union Square.
Current wording
44 Union Square Redevelopment (New York, N.Y.) –On January 27, 2022, we finalized a long-term lease agreement with Petco, securing occupancy of the cellar, ground floor, and second floor of the building, amounting to 42% of the leasable area. Petco commenced full-rent, cash-paying occupancy and officially opened its doors to the public on June 1, 2023. During mid-March 2024, we engaged George Comfort & Sons as our exclusive leasing broker for the remaining space. Originally designated for office use, the property's striking presence in Union Square, coupled with the resurgence of foot traffic in the area, and its exceptional branding potential, prompt us to explore a spectrum of uses beyond traditional office tenants. This includes consideration for short-term and special-purpose arrangements.
Previous wording
Minetta Lane Theatre (New York, N.Y.) –Prior to the pandemic, our theater hosted Audible productions featuring a limited cast and special live performances streamed on the Audible platform. Public performances resumed on October 8, 2021, after an approximate 1.5-year hiatus, during which we provided certain abatements. Audible has since resumed full operations and extended its license with us through March 15, 2026, with an option to extend for an additional year.
Current wording
Minetta Lane Theatre (New York, N.Y.) –Prior to the pandemic, our theater hosted Audible productions featuring a limited cast and special live performances streamed on the Audible platform. Public performances resumed on October 8, 2021, after an approximate 1.5-year hiatus due to the COVID-19 pandemic, during which we provided certain abatements. Audible has since resumed full operations and extended its license agreement with us through March 15, 2026, with an option to extend for an additional year.
Previous wording
Orpheum Theatre (New York, N.Y.) –Before COVID-19, our Orpheum Theatre was home to STOMP. While shows ceased from April 2020 to June 2021 due to the pandemic, performances afterward were intermittent. During this time, we provided certain abatements. STOMP concluded its 30-year run at our theater on January 8, 2023. Under our termination agreement, we retain rights to host any future productions of the show. Following STOMP's departure, new productions like The Empire Strips Back and Comedian Rachel Bloom's Death, Let Me Do My Show brought fresh excitement to audiences during 2023. During Q1 2024, the Orpheum hosted Eddie Izzard’s Hamlet which had a four-week run through April 14, 2024. And, on September 14, 2024 performances of The Big Gay Jamboree begin at the Orpheum. This new show is from LuckyChap, the producing team, which includes Margot Robbie, behind Barbie and Saltburn and multiple-Tony-winning Broadway producing veterans Sue Wagner and John Johnson (Stereophonic, Lempicka) from a book by Marla Mindelle, the co-author and original star of the Off Broadway hit musical-comedy Titaníque.
Current wording
Orpheum Theatre (New York, N.Y.) –Before COVID-19, our Orpheum Theatre was home to STOMP. While shows ceased from April 2020 to June 2021 due to the pandemic, performances afterward were intermittent. During this time, we provided certain abatements. STOMP concluded its 30-year run at our theater on January 8, 2023. Under our termination agreement, we retain the rights to host any future productions of the show. Following STOMP's departure, new productions such as The Empire Strips Back and Comedian Rachel Bloom's Death, Let Me Do My Show brought fresh excitement to audiences during 2023. During the first quarter of 2024, the Orpheum hosted Eddie Izzard’s Hamlet which had a four-week run through April 14, 2024. And, on September 14, 2024 performances of The Big Gay Jamboree begin at the Orpheum. This new show from a book by Marla Mindelle, the co-author and original star of the Off Broadway hit musical-comedy Titanique is being produced by (i)LuckyChap, the producing team, which includes Margot Robbie, behind Barbie and Saltburn and (ii) multiple-Tony-winning Broadway producing veterans Sue Wagner and John Johnson (Stereophonic, Lempicka).
Previous wording
Newmarket Village ETC (Brisbane, Australia) –Through 2024 and 2025 we will continue to operate our Newmarket Village ETC, which includes Reading Cinemas as an anchor tenant Our site includes a 23,218 square foot parcel adjacent to the center, improved with an office building. Over the next few years, we will be evaluating different development options for this space. As of the date of this report, the combined center and office building is 99% leased.
Current wording
Newmarket Village ETC (Brisbane, Australia) –Through 2024 and into 2025 we plan to continue operating our Newmarket Village ETC, which includes Reading Cinemas as an anchor tenant Our site includes a 23,218 square foot parcel adjacent to the center, improved with an office building. Over the next few years, we will be evaluating different development options for this space. As of the date of this Report, the combined center and office building is 99% leased.
Previous wording
Cannon Park Center ETC, (Queensland, Australia) – We own two adjoining properties in Townsville, Queensland, Australia, (Cannon Park City Center and Cannon Park Discount Center) comprising approximately 9.4-acres which we operate as our Cannon Park Center ETC. The total gross leasable area of the two properties is 126,433 square feet. Our multiplex cinema is an anchor tenant. These properties are currently 94% leased.
Current wording
Cannon Park Center ETC, (Queensland, Australia) – We own two adjoining properties in Townsville, Queensland, Australia, (Cannon Park City Center and Cannon Park Discount Center) comprising approximately 9.4-acres which we operate as our Cannon Park Center ETC. The total gross leasable area of the two properties is 126,368 square feet. Our six-screen Reading Cinema is an anchor tenant. These properties are currently 94% leased. This property is currently being marketed for sale.
Previous wording
The Belmont Common, (Belmont, Perth, Australia) – The total gross leasable area of the Belmont Common is 60,117 square feet. Our multiplex cinema is the anchor tenant with six third-party tenants. The site is currently 100% leased.
Current wording
The Belmont Common, (Belmont, Perth, Australia) – The total gross leasable area of the Belmont Common is 60,116 square feet. Our ten-screen Reading Cinema is the anchor tenant with six third-party tenants. The site is currently 100% leased.
Previous wording
For a complete list of our principal properties, see Part I, Item 2 –Properties under the heading “Investment and Development Property.”
Current wording
For a complete list of our principal properties, see Part I, Item 2 –Properties under the heading “Investment and Development Property”in our 2023 Form 10-K”
Previous wording
The table below summarizes the results of operations for each of our principal business segments along with the non-segment information for the quarter and three months ended March 31, 2024, and March 31, 2023, respectively:
Current wording
The table below summarizes the results of operations for each of our principal business segments along with the non-segment information for the quarter and six months ended June 30, 2024, and June 30, 2023, respectively:
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Current report — wording carried from elsewhere
Income tax benefit for the three months ended June 30, 2024, increased by $0.1 million compared to the equivalent prior-year period. The change between 2024 and 2023 is primarily related to an increase in pretax loss in 2024, offset by an increase in reserve for valuation allowance in 2024.
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Previous report — wording carried elsewhere
regarding the impact of the 2023 Hollywood Strikes on the cinema business; our expected operating results, including our ultimate return to pre-pandemic type results; our expectations regarding the recovery and future of the cinema exhibition industry, including the strength of movies anticipated for release in the future; our expectations regarding people returning to our theatres and continuing to use
Previous report — wording carried elsewhere
discretionary funds on entertainment outside of the home; our beliefs regarding the impact of our cinema-anchored real estate
Previous report — wording carried elsewhere
developments; our beliefs regarding the success of our diversified business strategy; our beliefs regarding the appeal of the Courtenay
Previous report — wording carried elsewhere
Central site and the neighboring areas in Wellington; our expectations regarding the impact of streaming and mobile video services on the cinema exhibition industry; our belief regarding the attractiveness of 44 Union Square to potential tenants and ability to lease space on acceptable terms; our expectations regarding the timing of the completions our renovation projects; our expectations regarding the effects of our enhanced F&B offerings on our operating results; our expectations regarding credit facility covenant compliance and our ability to continue to obtain necessary covenant waivers and loan extensions on terms acceptable to us; and our expectations of our liquidity and capital requirements and the allocation of funds.
Previous report — wording carried elsewhere
periods, as most currently experienced due to the implications of the 2023 Hollywood Strikes;