READING INTERNATIONAL INC Q4 FY2024 earnings call

• Cinema Business: Focus on curating content, F&B initiatives (F&B SPP at record highs), loyalty programs, and working with landlords to reduce occupancy costs.
• Real Estate: Efforts to monetize assets, including selling properties in Culver City, Wellington, and progress on sales in Australia and Williamsport.
• 2024 Performance: Fourth quarter results were encouraging with improved metrics, but full-year was impacted by Hollywood strikes and theater closures.

Cinema Segment:

• Q4 2024: Global cinema revenue was $54.6 million, 30% higher than Q4 2023 and 84% of pre-pandemic Q4 2019 levels. Global cinema operating income was $3.8 million, 191% ahead of Q4 2023.
• Full Year 2024: Global cinema revenue was $195.1 million, 6% less than 2023 and 74% of 2019's global cinema revenues.
• U.S. Cinema: Q4 2024 revenue $29.3 million (24% higher than Q4 2023, highest since 2019). Full Year 2024 revenue $99.9 million (12% less than 2023).
• Australia Cinema: Q4 2024 revenue $21.4 million (37% higher than Q4 2023, highest since 2019). Operating income $1.7 million (highest since 2019).
• New Zealand Cinema: Q4 2024 revenue $3.8 million (53% higher than Q4 2023). Operating income $504,000 (228% higher than Q4 2023).

Global Real Estate Segment:

• Q4 2024: Total revenue $5.2 million (14% increase). Operating income $1.4 million (148% increase).
• Full Year 2024: Revenue $20 million (slight increase from 2023). Operating income $4.7 million (23% increase from 2023).

• Continue asset monetization to improve liquidity.
• Plan to upgrade at least four theaters in 2025, subject to box office strength and asset sales.
• Anticipate a softer first quarter 2025 but see promising movie lineup for the rest of 2025.

• Uncertainty in real estate asset sales (due diligence periods, potential buyer issues).
• Impact of macro events like Hollywood strikes and currency fluctuations.
• Dependence on cinema performance and box office slates.

Q: What are your capital allocation priorities for 2025? And how should we think about CapEx spending for this year and the next?

A: In 2025, highest priority is to reduce debt. Working on plans to upgrade at least four theaters, but final execution subject to box office strength and asset sales.

Q: What are the recent underperforming theater closures about how much annually will these closed theaters save the company in aggregate?

A: In U.S., closing one cinema this month, expected cash savings $500k-$1M annually. In New Zealand, closing a small theater, expected savings $100k-$200k annually.

Q: Is your Australian cinema development project in Noosa still on track for 2026?

A: Still working with Stockwell development team, town planning phases, opening date likely pushed to 2027. No other new deals to report.

Q: Explain why you failed to follow through and deliver on promised investor relations efforts?

A: Begun discussions with analyst for 2 non-deal roadshows in 2025, finalizing participation in microcap virtual conference in mid-May, then reevaluate investor relations strategy.