Reading International, Inc. Q1 2026 Earnings Call Summary

Operational Recovery and Strategic Portfolio Optimization

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• Achieved positive global cinema segment operating earnings before depreciation for the first time since 2019, driven by a stronger film slate and strategic execution.

• Performance attribution was heavily influenced by the film lineup in the U.S. and Australia, leading to record-high food and beverage (F&B) spend per person in both regions.

• Management is executing a 'culling' strategy, having closed eight loss-making theaters globally since 2020 to eliminate locations that required excessive capital or lacked a path to profitability.

• The U.S. Real Estate division delivered its highest first-quarter revenues ever, supported by strong live theater performance at Minetta Lane and improving rental streams at 44 Union Square.

• Strategic positioning remains focused on a 'two-business, three-country' model, using targeted asset sales to meet liquidity needs without diluting stockholders or seeking government assistance.

• Operational improvements were bolstered by favorable foreign exchange movements, as the Australian and New Zealand dollars strengthened against the U.S. dollar by 10.8% and 3.9%, respectively.

2026 Outlook and Capital Allocation Priorities

• Management anticipates 2026 will be the best post-pandemic box office year to date, citing a robust release schedule including major franchises like Star Wars, Marvel, and Avatar.

• Strategic focus for the remainder of 2026 includes the monetization of Cinema 1, 2, and 3 in NYC and the Napier property in New Zealand to retire outstanding debt.

• Renovation plans are underway for the Wellington, New Zealand cinema, with a potential relaunch in late 2027 following a landlord-led seismic upgrade of the building.

• The company expects to launch a paid premium Angelika monthly membership in the U.S. during the second quarter to further drive loyalty and recurring revenue.

• Guidance assumes continued success in renegotiating occupancy costs with landlords to align with attendance levels that remain below pre-pandemic benchmarks.

Asset Monetization and Liquidity Management

• Classified Cinema 1, 2, and 3 property as held for sale following the acquisition of the remaining 25% interest to facilitate a full property exit.

• Net loss increased to $8.1 million primarily because the prior year period included a $6.6 million one-time gain from the sale of Wellington property assets.

• Reduced overall gross debt by $100.4 million since December 31, 2020, through disciplined asset sales and operational cash flow management.

• Ongoing litigation regarding the Reading Viaduct continues in the D.C. Circuit Court of Appeals, with a decision not expected until at least the fourth quarter of 2026.