RDI - Earnings call transcript Q1 2020 | Reading International, Inc.

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Operator

Thank you for joining Reading International's earnings call to discuss our 2020 First Quarter Results. My name is Andrzej Matyczynski. I'm Reading's Executive Vice President of Global Operations. With me are Ellen Cotter, our President and Chief Executive Officer; and Gilbert Avanes, our Executive Vice President, Chief Financial Officer and Treasurer.

Before we begin the substance of the call, I will start by stating that in accordance with the Safe Harbor provision of the Private Securities Litigation Reform Act of 1995, certain matters that will be addressed in this earnings call may constitute forward-looking statements. by to actual and different performance performance or subject may factors from are indicated our cause to implied statements risks, other uncertainties that the Such statements. such be materially are factors in filings. set Such risk clearly our out SEC to We revise any update forward-looking undertake publicly or statements. no obligation

XXXX this our adjusted measures, quarter In segment which first on financial operating addition, recently EBITDA, definitions the and income, non-GAAP discuss Reconciliations we and are are in included of issued will EBITDA on website. release measures call. non-GAAP earnings financial company's

property extraordinary that believe have Please be cash direct also not applicable PLCF, call, Securities the anything forth level that measure We of of expenses in where with the Form cash Commission. level litigation, adjusted expenses; summary theatre direct is we industry-accepted our level to costs property of to EBITDA our doing EBITDA in revenue and the filings necessarily expenses. detailed TLCF, unusual and Exchange any items and business supplemental Such an note U.S. set property disclosure we or which an our and say and SEC level results today's called nature, by legal flow, is operation. can in are comments to more is our theatre qualified is and the theatre XX-Q business X-year an cost less financial which level use non-recurring level adjusted external for we revenue less flow, other include or measure reflective non-recurring, our infrequent relating In be believe with is considered requirement We accordance determining item performance. important of nature. other in items

the it review. So XXXX navigating first with the and that pandemic. for will provide detailed discuss results us, will financial And Ellen? the more review a strategies Gilbert and further quarter in turn COVID-XX precautions then over to Reading's who I'll Ellen, behind

Ellen Marie Cotter

Andrzej. Thanks,

acknowledge The cultural the of me sweeping others. and we’re living history from through. and let the Aubrey, Floyd, societal George tumultuous Taylor the deaths and Breonna all emanating causing pandemic hardship First so many global shifts of Ahmed period economic senseless

times, challenges. Our impacted thank together Reading we stronger end. and our and pandemic. responders hearts extraordinary acknowledge battle spend today workers And and of I also who've to kept very pervasive Margaret thousands these these the uncertain hopefully are you updating despite the I'll around light survives ensuring and in on have thank global where challenges go and Reading at distractions to emerges results. the line want executives quarter XXXX COVID first to health that by of to who board, focus time We many the first COVID-XX review their the the these with those care on out want world, and sincerely some here helped our employees pandemic. We're

overview. our tenants by theatres, Our cinemas worldwide both for a many closure and QX, in negatively resulted global crisis imposed business ultimately of that results our of were XXXX temporary and COVID-XX impacted the halt the live the first the New in Zealand. quarter New and against X.X% our of X.X% quick Zealand centres financial at the respectively in Australia dollar weakening U.S. A and XXXX. Also during the dollars and by Australian

the a the loss were quarter for first first Our versus XXXX. quarter $X.X first million XX% operating revenues XXXX. quarter XXXX million consolidated dollars reported in $XX.X We

first liquidity $X.X we net credit imposed cushion COVID-XX before a our loss was We quarter. compared of reported lines the million negative provide EBITDA million of a XXXX $X.X against down to the QX, end XXXX. of Our the million net $X.X To on a in conditions, against the quarter first loss drew million in QX, XXXX. $X.X a all

the just and we're under the Zealand was that positioned agreements cinemas environment. As XX, our cash to confidence based of the of Gilbert forced late relationships closure Australia status current live our touch our cash And and XXXX, million. debt our $XX March effects COVID-XX of as to had U.S. taken actions preserve steps XXXX, us a position $XXX will the enhance of XX, our liquidity and COVID-XX XXXX worldwide feel and early in U.S. well crisis. March theatres. the March on In give and and to Starting was March million. navigate minutes. through proactive position the The we've New around banking overall XX, regulatory XXXX February started of few temporary mid-March by

very COVID-XX shut the During revenues. little down, generated no our to cinemas

business real to most And our by centres our our not of by some business for live during fees governments open Businesses”. remained With and cinema though enforced the “Essential were our as of of the estate through restrictions period. Zealand respect portfolio Australia business impacted centres and affected Australian received we've tenants as the service business. certain and Our our closure theatres, income was tenants licensing our local in as crisis, severely at contains tenants COVID-XX many New

surrounding preserve benefits estate took strategy. COVID-XX of our the decisive company. diversified early pandemic the believe geographically the significant actions our we that a As cinema of two and rate COVID-XX cash to underscored our our to number the and the increase evolved, liquidity pronged We value and burn events reduce crisis to in real

traded U.S. set records. in and few with worldwide May Before that cinema And our California. signed cosmetic report respect in in Airport. in with milestones. respectively. SPP adjoining infrastructure work two highest ever beverage operations, consent Zealand remaining that Zealand currency landowner record highlight cinema we food Davenport happy basis functional Zealand, competitors. Newmarket first acquisition real two to our Village. period of a for Australian flow our In their publicly vacant key we're theatre space cinemas; Through quarter through level XXXX reported the currency record that cinema leasing certain first a successful at Cinemas set Reading first Australia, New Culver of in its U.S. our February to I'll SPP. their lease operations quarter On opening report the F&B and TITAN highest set spend to our highs, XXXX our complete properties revenues And quarter in COVID-XX and XX, first flow Tasmanian same quarter cash quarter to In working Australia happy the LLC, for supported leading SPP rights the tenant our at the we circuit resource unlock near our cash care of walk in granted third to total its beverage Cinemas and lease and revenues by international per efforts at cinema functional we and in in respect each and City related With by the the LUXE of Brickworks and headquarters Australia the circuit early industrial period. for with With Burwood and single provider a level June development, packaging currency, outperformed currency reported building or needed patron our a impact property on food despite of boosted The highest packaging. division, in Auckland New record estate Reading recent work their each cinema of we're and development functional personal any the the Australia U.S. Cinema for a circuits a January Melbourne, that our State functional for Division to were Property first and we Manukau reached quarter month our New to to a the division

first system global our business. Now let's turn to of

and remind over impacted the revenue business. you, shut have and first our last this of March was of the COVID-XX crisis. total five governmental revenues, markets quarter were all from historically years, orders cinema associated closed averaged the To is XXXX, Reading's were so in of During overall source XX of XXrd revenues by XXth Between overnight XXXX, March key with which the our compliance cinemas XX% all continuing to down our global of annual of March our over essentially entities. directives

XXXX. million QX decreased XXXX to Our QX, to consolidated XX% $XX.X by cinema revenues compared

$X.X decreased Our compared to QX, to operating income XXXX $X.X a million QX, of XXXX. million loss by cinema segment

we mentioned, party landlord halted payments virtually cinema employees expenditures. we third number and contacted programs cinema timing them of of negotiate the deferrals non-essential I our U.S. to we Zealand, not of funding, all took and our previously unemployment that operating tapped laid help to and maintaining into a Australia to As steps extent New process. off with abatements every the we workforce. vendor through We and burn. postpone during assistance reduce could did hourly as or qualify cash the period. PPP the we governmental We to rent In the for we capital In all crisis the assisted

Next, each revenues operating our quarter first reported I'll U.S. States, In XXXX. or XXXX cinema in greater by of circuits QX, three XXXX, detail. cinema to for the decreased the in QX million our loss we a division. of $XX.X United million compared address XX% And of an $X.X

factors sold this closures decline U.S. emissions due social the attributable crisis. as to of other the distancing by to cinemas, a measures few followed COVID-XX temporary reduced e-cams the QX our [ph] result to Our of mandated the decline. A contributed

the Beekman, our consolidated recliner competition to leases three closed York or our And renovation. renegotiate and complete top-to-bottom theatres New Due to and nearby managed Street East XX terms. venues theatres to or XX we experienced negotiate seating. at a Paris, luxury new XXXX, Cinemas. in QX California inability we either and In our leases converted on QX Kahala lastly, that from commercial Honolulu the reasonable the Mall in theatres QX, existing to City; During closed certain expiring and underlying XXth theatre increased in new

during was which quarter earlier, quarter was quarter in X.X% first mentioned that than XXXX. first SPP the record of the our QX F&B I a first higher set and during As XXXX, $X.XX

Our QX F&B certain publicly industry. SPP competitors traded in the outperformed

our our converting sense continued suspend to to and We'll it the temporarily light in liquidity to non-essential Mall of quarter to an economic closely forced shutdown. due all COVID-XX in all we XXXX, we Kahala monitoring adding existing seating F&B construction the liquidity of capital resume eight to complete recliner quarter, renovation screens expect we've to consolidated project. COVID-XX projects. this at when makes of theatres we our practices progressed the the our dictate. crisis, management were where mandated in first the readdress situation our practices the During Due when delayed the In project pipeline In first we're cinemas. March Honolulu, government investing offering. renovation and elevated We're management

cost. from we deferrals landlords our earlier, on sought our aggressively mentioned I As occupancy

As of today, States United in we've successfully reached most arrangements the our deferral of with landlords.

of our any under defaults leases. We no have

We the reduce because been rate expenses. We to our And the U.S. aggressively in of programming Because our we directive. cinema and about focused COVID-XX on announced managers period. teams closely films In are for we enhance closure kitchen. in with studios. our applicable the and select program changes infection launched not COVID-XX, governmental we've We and we're release certain programs specific a We've set screening menu our executive through U.S. their sought our plans our experience had directive Eats also taking existing and key cinema out curbside Eats and "Reading post participation opportunities can from overseeing separate from dates marketing the specialty marketing in governmental executives major programming movie at operating schedule our via dates defer home been guests distributors. orders Uber or up and at top reopening Cinemas were monitoring studio's favorites retained growth unsure virtual many future App. the with the where Home" or and

pictures. is prior two to Temple release open the plan of to about Our major weeks

now As cinemas Disney will open reopen on “Mulan” in on and XXth schedule open plan August. our would sticks, of our today we August understand “Tenet” early U.S. Warner If will this August XXst. Brothers to be

for by also encouraged studios date change a date release again most I'll relaunch the note theatrical if adjusted exhibitions support that major will anticipated elected to window. traditional shown cinema to by our we're date. studios the who've be generally However, maintain their

plan cleaning, developed visitors. reopening in and of our to and guest guests the For and comprehensive and health and increased health the guest’s employees to employees safety management creating contactless relaunch, a other ensure staff A wear our team developed monitoring physical sanitization We've has covering. a relaunch of distancing our vendors experience protocols, will our face of require contractors created meant U.S. increased guests. the and

accordance as at the new to the the such be venues with standards We've wear local health PPE gloves. execution. representative authorities, in will responsible and Our a other and trusted employees each of developed will designate state these latest also planned successful our guidance from federal for

Australia. to now Turning

$X.X QX, million Our QX XXXX or X% XXXX. revenues to $XX.X cinema decreased million by compared to

Our million to income by operating XX% or for Australian the $X.X cinemas quarter in first decreased $X.X million XXXX.

results spend I first on in continuous gold a basis, cinema These for F&B X% X%. improvement a the XXXX. of to the reflecting revenue decline results increased achieved we an in and Australia QX the XXXX. by Though QX weekend compared in functional were which increase U.S. to currency in period F&B lounge compared the financial X% ticket increase basis patron. offset beating per largely our XXXX our the currency strength fee XXXX our online our spend overall the dollar; an decreased decrease. revenue per functional ticket quarterly of online on selling attendance for Australian XX% circuit set online convenience patron F&B in a increase earlier driving F&B by premium ever, in As X% QX a of Australian price record a highest our record same cinemas to currency by the by closures revenue to temporary a versus were average in the mentioned Further, for XXXX. compared spend had QX period due per quarter negatively to capabilities, of XXXX menus X% factor main functional and we when the same for at net patron QX, led Australian XX% And COVID-XX the and further our but the due dollar $X.XX impacted to was On

at Burwood Like opening of in Brickworks Our seeking which acquisitions the cinema XXXX. our the and a Reading LUXE the by in were the state-of-the-art new Cinema center QX in TITAN the shopping we of of XXXX began opened December two landlords. COVID-XX the crisis the revenues also cinemas U.S. XXXX suburb in with from relief party Tasmania at of Melbourne, rent start third supported

non-essential abatement we we've any rent the and are program sponsored our of our JobKeeper today, of obligations achieved leases. in of in an that the also We've deferrals our postponements basis. allowed us has books. to on In deferrals much major CapEx or base government of thought retain of plans And we on As economic rent of most not most employees Australia Australia or expenses. from we had deferred default the

in XXXX XX lease four agreements have March of we As cinemas under to Australia.

we areas restrictions that COVID-XX of may Currently have projects. the spread lifted. many the However, been virus for delay been Australia, largely crisis in launch in has anticipated dates and these of contained most the anticipate since the some

last reopening we our Cinemas XXth, cinemas. the due As will a and public. than requirements, we phased of of social By to due distancing films the reopen new major X, result, been but mainly Reading June Since began in lack lower compelling to in year XXXX our significantly the July on we reopened, a of from have to that admissions all Australia starting studios. Australian our expect part

first We with release major Brothers. expect to from in Tenet be the Warner August

However, our to our and Program cash. product absence money film cinemas to deals given without financial landlord relief have us new occupancy notwithstanding of JobKeeper Australian losing flexibility the the reopen

circuit. to our Zealand Turning New now

XX% quarter average SPPs and a attendance, million to the $XX,XXX $X.XX by to decrease decreased versus price, closed our in Courtenay of this global while increase QX of or the XX% historically the strategic decreased record in during New X% revenues $X.X and XXXX success March of represented temporarily cinema $XXX,XXX all XXXX Wellington dollar of XXXX decreases Again, to These metric income QX patron By closures has concerns. a circuit. there. with COVID. a temporary the ever New a substantially in currency remain Reading New Unfortunately first our a again a the in shut-down profitable QX, seismic spend the functional governmental Cinema Zealand by and XX, accordance related or QX, increase On along dollar. our Zealand head QX quarter focus. the we pandemic New Since ticket contained our we offset top compared experienced loss performing been XXXX This Our in with Zealand highest the by and of circuit Zealand $X.X has in Our at Zealand of measures the operating directives cinemas COVID-XX achieved New per our implemented our in relatively per to XXXX. million closed due effective improved stayed in X.X% flat. highlights the to theatres value Zealand the F&B to relating of a spend X.X% recommendations F&B resulted from significant U.S. basis, for XXXX Central against New

As at except of contactless circuit health physical and Reading June Zealand New and increased Xrd a plan comprehensive protocols involved distancing, XXXX Courtenay safety and We that relaunched we strategies. reopened with Central. cleaning for our our operating sanitization Cinema

the to same not our wage to the with lower in product been continued has sponsored new part cinemas our last had the subsidy and major any without reopen restrictions. absence Zealand New as of allowed so in year, from rent social cash. reopened Like result New Zealand than money we've program distancing also Australia, us government notwithstanding landlords deals losing attendance film to Australia, the have new due the significantly Following studios, our movies since

of by our primarily decreased quarter were our results operating $X.X real attributable real first theatres late estate estate at the foreign by XX%. due in in legal to Union New The our quarter and COVID-XX decreased crisis. our estate Now closure currency attendance the Increased XXXX expenses in live I'll unfavourable mid-March both business. related to to our XX% turn Zealand. overall theatre XX revenues million and XXXX project March February million, through live to the the in temporary global real Square and income and XXXX decreases decrease $X.X At Australia first movements

In cinema Belmont business of close of Auburn tenants, to impacted Newmarket been remained estate Redyard many COVID through our the Park, at crisis. village, has temporarily restrictions business by business. Australia, were less centres required which enforced our Cannon real in than some affected Our government for Common business COVID-XX our by the open although

the in business estate real our to U.S. Turning

a we XXXX Culver Companies, As I a experience Mary include cosmetic L'Oreal packaging company completed years at with mentioned earlier, industries May of the Lauder building of Kay. Estee worldwide over providing LLC, for floor global our range on XX, lease Their City full a clients and care packaging needs. multi-year LVMH and with personal XX

of On was XXXX. On date lease, our straight out revenue during second this for commence space of quarter during to and line the a over own rent turned we the its who's quarter the building receiving rental cash, will the tenant, XXXX possession fourth space. responsible anticipate of new [Ph] basis, of

live the quarter from theatre first during Our COVID. due XXXX impacted of operation heavily to results were

three orders compliance and in XX, closed the of with As governments. directives XXXX March and live of temporarily theatres had all local federal state

mandated in for decreased the cash the York revenues primary or in the drivers media spread theatre of the along XXXX. level before first postponement the shows second reporting quarter of closures, by were New of of the and COVID-XX However, Chicago. and affected the March the cancellation This been already of the had half flow attendance about with

revenue some our to live tent. from receive rental theatre continued We have however

live public the don't to occupying XXXX. expect social in New resume our the With distancing until York City current requirements, performances producers we theatres

fourth in George the public the reactivation that the Royal various at could we stages of of However, believe Chicago XXXX. quarter during happen Theatre

in of will certificate be We to project. should before anticipate non-essential the our down and Union construction When government City, XX summer. to Kohn at and all construction the that site. Turning reopen shut the that work occupancy [ph] the the Square -- in temporary Union COVID-XX began shortly York our construction end including crisis site the place business, Square New XX shell of

of upon As completion has a execution leasing prospects can to of the leases. our be reached where practical the the with delivered premises immediately state respect now matter, building

estate down COVID-XX New is activity of While prohibited York the the team during board again. efforts real leasing our leasing their ramping shut up

potential getting and space. Our is leasing team seeking from inquiries standard not users pursuing office

recent focus For increase instance, that Also we've tenant retail essential will medical users. our now uses from services. fielded offer include

building decreases believe building currently this in overlooking leasing materially as commercial At we York, more a adversely Also While control Square. security a public our nature should in of will the may than there multi-tenant rents assurances are cannot the location size media and given in fully leased. our we New the enhanced our when don't space. of generic some over in any the believe reports that tenants large direct, to facility moment, impact offer ability offering brand have we prefer office interaction building its Union that of be at to

three, we to continue Regarding the near cinema plan operate one, the and cinema for term. to two a as least at this location

with We change a exhibition any seek zoning property element continue redevelopment. to a to to to future cinema continue the allow include

other and been all has able until our this better effects of COVID a the activity related on to pandemic understanding redevelopment location we're market. the on-going the assets However, of develop suspended to

a real pleased to any level mentioned Now currency Australia both an our quarter are record I flow real that currency, basis, functional functional adjusted When a of high division cash turning for to flow estate we in for the in report level estate quarter. and earlier, first XXXX. the increase foreign property our our As impacts on adverse in for revenues set property exchange experienced Australia first cash

first the However, dollar decreased QX, $X.X estate real U.S. by million for quarter. increased estate real slightly income XXXX to X% X% a by basis, operating on and our revenue our for

activity Australia. government tenants renewals. has we by committing our with of tenants. lease and COVID-XX the business Auburn crisis many which in Cannon enforced leases XXXX, our new along at completed Village, to Newmarket existing Park. continued Redyard were QX Three impacted centres affected at restrictions During leasing Trading The two were

the for Park, remain Newmarket Common Auburn COVID. Cannon did village, throughout Redyard However Belmont business open our centres at and

due spread While the to centres our of certain the Australian tenants operations to COVID-XX. proactive approach to the impacted Government's of Australian reducing COVID-XX

position. of through and Working third XXXX. relief Reading we tenant disclosed the some today, restrictions. decline XXXX, our and occupancy framework negotiated of to shortly trading to place deferrals are in with us rolls still assist for enforced landlords code reviewed of in XX% the impacted XXXX, tenants relief due will various in less quarter will XXXX, financial in during provided request Commencing be our Government of a in will business of some To tenant conduct, restrictions. the XXXX issued rent that although code a open tenants the by The August of the the quarter mandatory line specific for code of our transactions and for have QX tenants, commercial and significantly our be we Australian established the QX set trading continue of will cash imposed As be SEC in requests XXXX. code each trading, in third of impact but XXXX, in April tenants impacted by the conduct of hardship second filings within into tenants code conduct. QX stress tenant's implemented We COVID-XX. and result trade party April conduct faith, for conduct as approached reviewing though their to principles of tenancies the or with our financial QX because of and Due The good leasing experiencing process XXXX. applied a abatements be certain of the support of understand both and Reflecting to a of both in that decline. in financial received on their request for

leasable Australian XXXX, our the detailed area centres. is at on redevelopment XX%. As for plans Australian COVID-XX of occupancy centres improvement rate Prior various we our our March gross for XXst of based to investors and

And COVID, As estate non-essential in our to position. in improvements turning New we've real our of delayed a until now assets we're confident all capital Zealand. liquidity result

weakness currency Zealand period though to that estate in almost New XXX% decreased to U.S. compared basis, functional our also the of closure the that Note QX directly I'll decreased XXXX due COVID-XX And as QX QX our issues of Zealand of XXXX. on-going our began The XXXX. in New by Our income dollar results. dollar to XXXX QX temporary XXXX, parts the XXXX level versus a was contributing well in same not cash seismic $XXX,XXX. year-over-year a on XX% note January revenue the a Courtenay again, Central loss to of as although and Wellington by the property impact New real operating New continue a decline of Zealand flow impacted that our temporary estate to government real tenants to were late Courtenay have our New to lockdown. the In due Zealand portfolio. XXXX, close operating Zealand material Wellington, in forced March Central XX% on

have along now spread XXXX, a of our street. entertainment and Zealand tenants which without restrictions May Courtenay's resumed well-known of As the COVID, suppress restaurant business two of due to the three New government's proactive is to place approach

of the to obligations. complement Central estate featuring variety destination uses plan, the As meeting plan prior upon Central of development a to and our tenants rental had real quality Courtenay of developed June comprehensive build are Courtenay a With their XXXX, respect these our to COVID-XX location. team

New has ended, to the of COVID-XX Zealand representatives plans. the estate with tenants consultants review lockdown reengaging related our As and real team feasibility in and is these potential city

the practices, our economies Courtenay redevelopment evaluate we’ll determine of businesses the the restarting Central several management Over feasibly and next the liquidity project. restart we can then our when months, apply in

In properties property re-zoned use. to These XX-acre industrial we located to the infrastructure uses, plans our heavy related XXXX, Council that major quarter the zoned first adjoining light begin after Airport. of Auckland the are zoning. of the successfully landowner we take to conditions, During resources to advantage new certain needed close light from constructing in industrial for industrial to consent Manukau/Wiri of granted market sought us industrial highly and a XXXX, agricultural Auckland progressed required Manukau to our and subject property specific June X.X-acre infrastructure the the

these governmental its now neighbour as With industrial of to most Auckland improvements. Manukau/Wiri. infrastructure budget in in that working of in pandemic schedule contributed one a impacted to best materially We of the applicable completed the the economic announced with of the and increase for timing of our believe the be overall markets. resilient in develop work we're certain the process view current COVID-XX of plans, the that has these being detailed we continue the property the recently approvals, our Airport and properties the our to that land to construction date located in Notwithstanding one has sector critical expansion value property climate to

I'll for turn it a of first to financial over quarter with review Now, XXXX. that, Gilbert of the

Gilbert Avanes

Ellen. you, Thank

As significantly COVID-XX impacted unprecedented live XXXX financials our of March The cinemas bottom first revenues million previously, in Consolidated to all in revenue for decreased XXXX. the our Ellen quarter by quarter temporarily to and compared decrease $XX.X by the first impacting mentioned the in XX% line. an pandemic. a our led XXXX closure of thereby to were theatres

primarily compliance which million was by cinemas decrease three this led temporary mentioned, a directions, $XX.X theatres driven a to our due live previously of in to and governmental As revenue. closure with XX global

tax for first by X.X% Zealand historically quarter theatres for of X.X% closure street Beekman contributed XXth These bottom dollar a U.S. our a and prior XXXX theatre Australian in in dollar to from a year-over-year for Net the top dollar the ended per to year. Company last $X.X for results the temporary decline. compared $X.XX staff RDI the $X.XX XXXX administrative stockholders XXXX, in during benefit results equal profitable increased impacted the million Non and against Act the The in loss expenses further XXXX. This tax a allowance offset same years, benefit in combined operating segment year million New occurring net were back when tax XX, expenses quarter the quarter realised Managed the to in first $X income the loss period during first and prior also federal million tax COVID-XX decline quarter quarter the to quarter a XX% of million Mall million share quarter. XXXX, period decline to was XXXX late closure loss $X.X benefit the period to first year. of on-going Kahala the and in This common of related XXXX, which to loss consolidated XXXX. when was valuation quarter lower the the of by $X.X expense increased by XXXX XXXX the reduction the result $X.X compared over XXXX general decreased first the March of and our first in quarter and Additionally, in reductions rate of attributable million and loss the renovation approximately was Paris a of administrative Basic to period XXXX. an general Hawaii compared for comparable legal by tax XXXX related compared first CARES $X.X of of XXXX change XX%. drove same the to was to to to same the of an increase carry the

of decreased $X.X by driven EBITDA from year activities million prior to compared used to EBITDA primarily assets. the adjusted loss by period driven $X.X operating the by million. quarter same the the year. XXXX, first through to these for available liquidity was our part and on-going for to Zealand by as operations and we inflow $XX.X refurbishment March borrowings, credit during million $XX.X cinema Cash $X.X million a line of due by activities our in by XXXX period during related net working million $XX.X a of to remaining COVID-XX. million quarter of $X.X This well the period management million mostly to in Shifting loan operations primarily be net XXXX, COVID-XX first drawdown $X.X XXXX, related as the the the months will repayment. of new of net of activities of managed lower by primarily in cash offset cash decrease million to first XXXX. which the XX, cash This and our a used million For due New impact a used to during same million factors. used of capital operating the provided net financing was quarter decrease flow, increased in U.S. quarter three to Cash new was was compared same when as in the the $X.X practice, prior of quarter of in $X.X by a decreased first our $X.X ended decrease first adjusted Included cash negative first in XXXX was an activities million Australia investing primarily late borrowing

prior financial increase foreign X.X% brought $XXX and borrowings impact in and shutdown and dollar the primarily The the XX, remaining XXXX. XX, at Australia credit New and Zealand in XX, at in impact equivalents on our for pandemic March cash to our million million million $XX.X equivalents, to operational XX, Further we cushion practice, to businesses. second XXXX. down based on issue waivers drew management, XXXX. impact third Through credit operational NAB liquidity to liquidity We and the cash lines Bank for conditions quarter of our better during our our on the XXXX due XXXX, capital America to from time. quarter of sources. bank we any first other million to by respectively. Covenant March March XXXX. re-prioritized We driven was requirements XXXX approximately U.S. our covenant our X.X% the were of of COVID-XX This in at from drawdown of rate million, position; $XX.X through line increase us XXXX, our to allow proactively December expenditures which cash related which $XX.X compared At or the assets March by and was quarter postponed $XX.X management and business $XXX.X and have The in New outstanding for cash declining first for manage cash related countered to exchange and unrestricted XX, now receive the waivers Zealand. increase by our the required increased our liquidity total require did total have million reduced COVID-XX $XXX Turning liquidity of million this Australia not the included quarter our other to assessments

to anticipate to full and lenders. and of waivers receive impact remain we the the COVID-XX from be While seek continuing duration covenant relevant the seen,

GAAP control America will receive such to were accordingly that of million Although pandemic, these uncertainty, and to to and and given Due we required operating debt minimize by has This accordingly on Prior be where been our of our our our waivers. general Bank country corporate COVID-XX no not continues such goal classify NAB assurance we $XXX.X funds the totalling the U.S. operating -- strategy part used was obviously basis our strategy be This in liabilities. funds to cost overall waivers for pay are a to of can this conduct strategy. global as self-funding shares our between overhead. subject of movement U.S. and by general capital. the to to mostly to circumstances time except merit business as of jurisdictions time from action to current

However, needs. to short theatre liquidity the of meet our rent our revenues impacted to need source. among concession our to reduced to tenants have and term funds real close need liquidity may we offer relocate adversely and to certain operation jurisdictions Accordingly,

during impacted feasible of practices, from I time. postponing that, management on conditions and we determinations These mentioned With it and turn cinema vary liquidity As reopening, time liquidity will or likely will this jurisdiction. are through to where requirements by will be of before, the capital based which our assessment actively now over re-prioritizing to jurisdiction expenditures when Andrzej.

Andrzej Matyczynski

Thanks, Gilbert.

questions recurring to Investor this answers compiled thank questions to Relations a and first We've question. I'll to themes most forwarding like I'd emailed stockholders handle for representing try the and us. our always, our As common set and email. of questions

Andrzej Matyczynski

these and recent as Living that there the through trustees It James was the sales J. Cotter of XXbX-X held A Cotter of Regarding are XXXX. Class stock early May Trust by trust, Ellen plan Margaret impacted by asked that liability and for now the sales solely more been these were sales estate and sales liability whether Index, from removal and there satisfied. Are Reading's tax that Russell when? have stock come to could whether further has indicated

Andrzej Matyczynski

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Andrzej Matyczynski

out The will pricing from next can you're your question so What you look assets which like what do, Ellen have ticket once far? theatres U.S. open? seen

Ellen Marie Cotter

I likely movies. on As studio U.S. release a will weeks few of touched the earlier major open the to in prior

We'll for those to in XX August rest monitor As markets sit has XXst. the open of dates rates infection move and the and our on rescheduled today, been the on Tenet a let while on of country. in August

few again, more officially prior. won't announce weeks we As that and a get we'll dates move confident the closer opening date an become

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Andrzej Matyczynski

could rate. about questions Thanks cash Ellen. help our stand Gilbert, understand burn a We of we you our on liquidity? where received number better monthly investors

Gilbert Avanes

Andrzej. Sure

have March $XX XXXX under earlier, As in we just million we as cash. XX, mentioned of

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sufficient us restructuring cash operational should That burn. debt the even engage cash diversified management closed. strategy combined of must that be Further, or flow not were in with about with addressed. monitor into opportunities assets that estate sustained the liquidity significant proactively encouraged includes provides in our our internationally carry position constantly event However, our theatres of if we comfortable real well will At remain we're we're liquidity points. practice couple us be alternatives said, XXXX and to and moment refinancing cash challenges that

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Andrzej Matyczynski

Okay. year? the Gilbert about what end the of at

Gilbert Avanes

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Andrzej Matyczynski

Gilbert. Thanks

screens. studio are capacity why Assuming Ellen? do capacity what product for for demand and optimizing migrate plans programs and/or weak-end feel government in additional your Reading into excess you and weeknights occupancy? of restricted restrictions, can imposed tenfold How effectively

Ellen Marie Cotter

are U.S. from popular those complexes. may and public a big screen released film programming. the before and occupancy from count it's reopening own for highly account playing studios, earlier, major curating we we’ll family not a big screens play alternative taking much seat and closed into hope audiences. of of mentioned in In content with To movies, anticipated private auditoriums, luxury I market our open our our on also As or on reductions, our entertaining have compelling not our recently based titles but series. we’ll programming. We’ll the optimize group content reopen only feature relaunch, all the temples chance creative demand of to or mandated Also program, commercial rental who've studio if we're good We screening we been big screen play give films playing With will game there to into for product. weekdays enough remember we Mulan Also, Mahalo flow will weekend guests the Tenet days. a to migrating to discount program the there to and a at will migrate people cinema video If the get home our think a especially will which environment. respect experience weekend days for commercial are months gamers that weeknights, in where to we fresh. relish chance deliver, full in our something out, of and project early not the back sell and be

open multiple those at multiple time. screens we'll So show movies on

studio but from only the with the to our people we be to to growth and the programming these we're attract partners understand Our be nimble but creative deliver ourselves, to We in a demand. a titles flexible public also have maximize early box believe that to can to of healthy home not goal the to there up is work cinemas, pent movies the going back office. protocols so to inspire understand deliver, first-hand a again that We of that to confident if from fever confidence, environment. cabin is that enjoy can We're movies. and people will lot build magic our up the cinema return to the

Andrzej Matyczynski

Thanks, Ellen.

Andrzej Matyczynski

you question call the marks appreciate we answers. times. for health that Thank today. the safety wish to uncertain listening. call listening and good these the and and Well everyone you conclusion Thank you your for We and in attention of the

Reading International (RDI) 30 Jun 202020 Q1 Earnings call transcript