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Andrzej Matyczynski | Executive Vice President-Global Operations |
Ellen Cotter | President and Chief Executive Officer |
Gilbert Avanes | Executive Vice President, Chief Financial Officer and Treasurer |
Thank you for joining Reading International’s Earnings Call to Discuss our 2021 Third Quarter Results. My name is Andrzej Matyczynski, and I’m Reading’s Executive Vice President of Global Operations. With me, as usual, 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 just run through the usual caveats. 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
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two the provided business diversified stated, Reading the fundamentals COVID and subsidiaries, previously country we the of of to foundation whether our pandemic. we've darkest business the its three As strategy believed were periods what necessary
As November cinemas is is we Hawaii, In XX one of another cinema XXXX, economically reasons. try another as are XX closed Hawaii feasible seismic of find open. the restrictions plan XX, is to for closed in New cinema cinema Zealand, due today, to our for global COVID and renovation. one In closed with closed reopening an
generated been to in equity today, cash. XX% of XXXX. sign we global has September As result our of having million a is assets effect balance our our from XXXX. protection by XXXX, had XX, monetization the We XX.X% as XX, $XXX.X reduce of global that September of December from our which base the of a stockholder from were by stockholder increased positive reduced debt In able XX, five a as debt of million $XXX estate real
the years XXXX an XXX% Widow, XXXX almost revenues circuit significant of capacity and QX reopened and Australian fact almost Shang-Chi circuit consolidated at October were theaters Free total New Rings, Thanks with $XX.X last circuit increase government operations Cruise, the movie restrictions. two during mandated despite QX of year-over-year the outbreak increase global Legend XX% Australian XXX% our being required our state-specific this increased our from being revenues some Guy. Unlike which XXXX in company's was XXX% of South from was XXXX increase and year, XXXX. the XXXX. circuit Let's XX% of where QX start were our consolidated represents point occurred highlights U.S. And cinemas, XXXX. and driven being and closed seating Victoria, the in revenue lockdowns. consolidated Black releases delivered This the cinemas despite during Hawaii, period operate XX Ten to in our our and in primarily November. portfolio. exhibitors, some our we The of QX like variant to result strongest our Jungle by ago of Wales but theater due cinema same despite with the to same that that XX overview other by with closed We recent that million, global stellar Delta of resonated achieved XX% this this our quarter QX At increased QX closed the from total represented
and Additionally, reacting move calendar. studios XXXX’s variant Hollywood out closures, significant QX to movie the theater government Australian release Delta conditions the mandated of movies
anticipated South the enjoy release product. and were that Australia, Australia, So open our Western theaters Tasmania in strong of Queensland, didn't
certain Lastly, restrictions. with states Australian during QX, seating operated capacity
were and our half today, represents our New entire Our in in our that briefly of Zealand XXXX. circuit reached The Lynn closed impacted third quarter XX, a the in office during we These results last QX the business day with Time last pleased XX% circuit QX. were film box same ago, box circuit XX% of encouraging represented last office COVID-XX Zealand New XXXX. seating of in variant to XX% XXX% same-store Australian company's permitted closing day the the business of weekend. to Bond to Delta opening our James strained New fact on opening Delta our XX%. resulting And reopen a office office QX circuit Australian reopened despite of Eternals, Victoria the XXXX on state close Australia And opened by on day same exceeded with the XXXX ahead box of circuit lockdowns. over likewise capacity achieved, enforcing was the which Zealand and Skipping that to over mandated basis, the over Auckland, weekend about report New report for restriction. cinemas opening was of weekend ahead the box to one theater, by the No We're Die is of circuit in film Australian we're that in of XX% cinemas Spectre was typically the our October of the the that XXXX thrilled to on circuit
U.S. cinema Turning business. to our
And results with November delivered are of XX% state As cash XXXX, the enforcing In Hawaii in highest our circuit, two circuit were October despite of flow attendance capacity XXXX. all perspective, operational a cinemas theater cinema generated our our the U.S. level of U.S. restrictions U.S. open. of since from our just February today. theater social of the and of seven Zealand distancing theaters. division These at New finishing cinema broke-even. I'm our auditorium about X, consolidated
reopen theater by of Despite Zealand it we opening and office of with XXXX. early weekend can in remains closed closure, Lynn mandate, this about our XX% New of Eternals the hope government New Our December. circuit reported box
Theatre decreased monetization from where Looking STOMP by real reduction full at the part other cash estate and at increase revenue of from Cannon to In New previously of the resumed City XX, improving $X.X Audible revenues at Auburn retail resume million, New which rent City completed at was to tenant. Orpheum in of continue performances Square In leasing we certain City XXXX, result New rental sales Centre, drove new of Amazon to City. that in QX York almost QX discussions estate public in With XXXX we tenants improving receiving conditions additional New Culver by XXXX percentage to Company. Australia Village our Theatre the an July renewal and retailers And New a a X,XXX our we the of in XX during of revenue the are our Park, public Union on our our The Minetta – Zealand quarter, for due City, York QX quarter we And Auburn/Redyard, respect the had our feet. Auburn. at X% related national as XXXX revenue. four XXXX. for global we reflected collectively square Lane XXXX. continues On in environment and with leases be from at York real States, York periods, our in one XX Cannon during Newmarket revenues licensed the future in representing X, lease October QX XXXX, Park tenants rent space operations, Australia, balanced XXXX performance performances the third-party third-party United of QX in July, sale a
liquidity. our debt we of appreciated cinema considered we've certain of one cash monetizing elimination taking possible assets on with the As confronted These new COVID-XX substantially capital, to our flow included most the of variety a pandemic, had to our during routes raising that new in increase XXXX due value and and ownership. mentioned,
remain and to monetize in mortgaging in the stockholders continue rather at by interest diluting than our position by our We strong issuing it our taking that was our future or additional prices certain stock best low stockholders debt, assets. on of our company readily to sellable
And Coachella, our Australia, our clear XXXX George and contributed monetized US$X.X in back down New our to and $XX.X XXXX, lease past September we start government ability Delta Reading then have monetization XXXX of sold million. markets Chicago we for the cinema This successfully back Reading Wales, to cash in and Over our few a our from our producing complex of center On Zealand. of debt, land where New the in five recovery August assets, months, XX, Auburn/Redyard international also which California. Due restrictions. and our our million Cinema properties, despite our on US$X.X Invercargill, seating XXXX, Zealand non-income monetized describe asset the land XX, of and Gilbert to or minutes QX related lease QX and New the in closures New hand and South we in follows pay the building purchaser. Theater monetizations million operational Two Manukau, in our Zealand nine as in ending which we've Royal mandated still we Cinema. various will strategic
Our by a $X.X XXXX QX loss from loss XX% from of to almost by XXXX just XX% improved EBITDA our of improved basic almost QX $X.XX share XXXX, million. per QX XXXX QX
the QX under last Our and calendar QX best in six quarters result the since million of XXXX. loss just XXXX operating is $XX
let's business. variant to cinemas to our Zealand, New related Australia Now primarily XXXX, cinema our of in XX more and At only lockdowns global XX, September global turn specifics $X.X XXXX excluding XX $XX.X due XXX% Delta joint million from QX million almost QX cinema global revenues or these in closures ventures just were total international are open. XXXX. at Despite million increased $XX.X by about
conditions office on for improving experiencing food loss million. three at reflecting COVID's cinema and loss per Cruise improved demand be million Nonetheless, from cinema Rings, demonstrate beverage, $X.X revenues continues of in global performances of of Black our global to shared of on XXXX XXXX revenues QX our despite believe the operating the Despite Ten and XXXX patron Shang-Chi big that environment. $XX.X the continue And Widow to million our XX% operating spend QX QX cinema of focus countries, and our QX pandemic $XX.X pent-up in cinema the we Jungle global these all a of impact Legend the in million, movies strong. the box screen reflecting significant F&B were XX% Our XX.X XXXX. QX global an just
quarter us which F&B record an New A$X.XX, we dollars, is the per dollars, the set $X.XX, our row. F&B that's traded all-time New of record. was third quarter XXXX, exhibitors. $X.XX per spend Australian publicly spend Zealand patron quarterly And QX In in patron for second spend had other At on was For quarter highest ever. patron an higher a consecutive second the Australia, Zealand which than in FMB highest U.S. highest per a
ensure contactless labor to F&B address increasing Additionally, and to in transactions an effort costs.
audiences XXXX, for will our F&B in with ordering QX launched future. that To-date convenience During from be we our the in pre-ordering suggest Australia. our popular this websites on numbers online website, the
of countries. three Our to related level management all continue our deferrals future, Delta landlords. and impact its and/or flow theater could continues existing abatement severe with manage our and of COVID the third-party extensions cash we've the suffer we Because into from suffered further still team proactively across to global our variant, seek
these for landlords, a and that We future cinema third-party to are get continue during cooperation to need there's from our pressing believe costs our to occupancy contained ensure further periods. managed us
were occupancy U.S. occupancy, seeking been to about the of they're landlord cinema result and and question leases, As of We have we and we filings. that QX recover COVID. of if we we certain are any continue such in mention earlier the received about during landlords litigation a all court successfully from impacts These continue of resolved an There eviction in two through U.S. status as devastating the in cinema in a not continue XXXX. matters with managed cinemas QX two our of landlords. matters
some business. cinemas cinema highlights me specific XXXXX detail Starting U.S. of as United are States, with our and the give you let Now, XX global our operating. about of today,
new due F&B delayed back recliners, offers in cinema As at on now welcomed November our reopened call, consolidated we which We're report Marina August consolidated our Kahala the previous in our guests and XX, to COVID renovated elevated menu. and X, that we Mall, an to and XXXX. reopened mentioned has XXXX. was newly a on theaters The cafe pleased theater CoCo bar
the adding bang holiday Hawaii cinema a Oahu. begun recliners theaters Film Currently, long-term two West phase dates Festival, season, Our in renovation we center. first We're in following no closed with also consolidated to reopening featured renovating targeting Eternals. first remain our for started of during completing our International of the XXXX now The off this theater reopening Hawaii. that renovation. Marvel's U.S. and a have auditoriums, consolidated during and a with in theater the at lobby scheduled and the weekend hosting We've certain currently Kalalau currently a back release the luxury Kapolei
the landlord. we discuss circumstances As our with
a to U.S. XXXX of XXXX% improving U.S. by $X.X XXXX, our XXXX. revenues million In conditions, cinema compared over compared QX million million cinema revenues QX for $XX.X $XX increased QX Our sign total when our QX increased operational to total or by or XXXX, XX%. to over circuit
operating to of segment in from loss a cinema million loss decreased million QX U.S. $X.X Our $XX.X XXXX.
our million to Australian Australia, or cinema to QX total XX% XXXX. increase XXXX by million, revenues compared to Turning QX $X.X $X.X
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Delta The New entire COVID-XX third the in the to briefly there distancing XXXX closing XXXX. Zealand resulting QX in quarter theaters strained continues with physical of restrictions. operate during minimal Our reach circuit
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and screen QX releases In the on movies a Venom, some were Zealand the And look quarter XXXX Eternals Black our to streaming in the we of of due release the cinema or North following these for had of for dispatch. slate we available last Ten to Widow, to However, compared Guy. million successful and QX services, to audience audiences releases of returning by very circuit Shang-Chi schedule XXXX XXXX. also of films American strong XX% these saw decreased Cruise our and environment. Rings, while QX, on The $X to like total watch with shared COVID-XX New a embrace closures, French big revenues global continues the the Legend promising Free Jungle theaters
team gross our opening the Dispatch States. weekend releases Angelika continues Film weekend remaining U.S., the December This French in Spider-Man: in No was for specialty in November programming Dispatch It highest at New and the cinemas best November X, the the optimistic opening Way gross highest Home all and of be Bird to Matrix director the outperformed second engagement finish Angelika should at an opening rebound the Sing Wes be office to Side XXXX, the Resurrections of the amongst office the Our $XX,XXX opened. The Angelika $XXX,XXX. about opening. biggest by York Lady Center United the New weekend and recently box Anderson’s, the of opened Reinforcing in weekend will represented box office West it Encanto, opening year. French be XXXX almost since the box York when Story,
XXXX and most include in release Belfast, films Mothers QX the House Anderson’s Paul Licorice for Guillermo upcoming an Pizza, Thomas the exclusive all we’ll Almodóvar’s the window. Parallel year. important During del of just see time and titles Alley, of Nightmare season, Toro’s Gucci specialty of Exciting award offering Pedro theatrical
the business. our to of by Reflecting our cinema sales operations turn from strategy, asset impacted be diversified real global estate to than COVID-XX and our strength our let’s continue business. real dual estate the Now apart business less
Our revenue million $X.X total XXXX. by to QX increased to compared real X% estate XXXX QX
depreciation QX Australia to in few property XXXX Union decreased XX to of expenses few and rental loss sale $X.X by loss increase increased million, QX about a occupancy related driven factors: That our a we capitalized QX Auburn/Redyard our in some Increased during commencement costs However, due this partially report were Square points and XX% operating as revenues. which XXXX, of Property, also over operating center a as of which was estate the key our did well property for QX XXXX of of XXXX. income real A QX XXXX. QX property, of increased
Even in pandemic, New XXXX Australia conduct, various of of supermarkets, cafes by South with and is venues has and have mandated are conduct XX And to Australia, of Wales which impacted we The solid – XX%. Victoria, and today payments QX of to the the March officially Australian ranging assist which XX trading. as to being global third-party in portfolio to of reinstated. lockdowns most official at As most from code was tenants rate XXXX. Zealand, a pharmacies, end of entertainment is of code Australian non-cinema an deferral the legislatively a legislatively uses. the over the tenant framework third-party The medical the of of and signaled came code effect states end period. month quarter of Due termination opened rent recent a lockdowns occupancy our tenants the XX% in Delta in for New commencement that in
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During continued two including real our QX teams City our XXXX, projects, the our Square, New assets, Courtney Zealand. to York management New on Wellington work XX estate of global development Central, active Union and
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our $X.X million to a Furthermore, XXXX, loss a enhanced occupancy third of August XX, restrictions loss per in ended to U.S., of of during in $XX.X which same movies shutdowns property Hollywood months the quarter XXXX. prior increased XX, release period poll majority due year. strengthened $XX.X for reopening to X.X% compared the million of XXXX to the dollars when same together by to prior of by million portfolio gain period our in and of when average $X.XX related nine nine $XX.X first U.S. of vaccine reductions to compared was to the the to the by year. September New and the continued the for the the in the most XXXX, period XXXX of months our million easing of dollar draw dollar the U.S. This Australian increase XXXX in year. same Zealand Net ended third the the due period Basic last to to During XX, the year. initial September results and ended cinema $X.XX to during dollar of Studios were same since Revenue of rollout X.X% against with XX.X% September are respectively quarter against compared the strengthened stockholders and decreased COVID-XX of compared improved COVID-XX Average prior Invercargill for dollar same compared These losses for period sale loss by XXXX. XX.X% in XXXX. ended the the Australian operating theaters by the New nine September loss and Zealand of attributable the XXXX. to of months RDI XX, decreased these from by the XXXX the the quarter respectively, quarter compared to XX assets certain the quarter successful in the on share
the the third by the not in XX, to $X.XX of received were expenses XXXX, of the million period, million the nine $XX.X the Cotter earnings September attributable subsidies current RDI nine months tax Australia million valuation quarter in to by X% the September million were due Income to nine during $X.X offset that of XX, increased This to months $X.X increases James year. company due prior compared favor and for in $X.X ended for increased income received did XXXX did Basic New for Court million ended net For the share due third period expense million XXXX. September Nevada XXXX, quarter to our to ended also entered September same September subsidies or a Zealand $XX.X partially million in to period to XXXX, during by the months by $X.X increases previously by nine months change for for third common largely compared the Non-segment gain year. XX, same in expense valuation to and nine primarily the for to the James the the litigation benefit XXXX XX, months decrease allowance XXXX, Zealand in compared the increase of XXXX. $XX.X Income by related equivalent the of of tax ended XX, quarter XX, increased ended as non-recurring increased primarily derivative million New increased Nevada in prior-year Australia stockholders compared settlement to settlement pretax million the Supreme $XX.X was G&A in in XXXX. per as the was or by decrease the equivalent non-recurring XXXX, XX, year. to in XX, not XXXX. a the G&A prior-year million This entered wage XX% favor to the in on ended September These Jr. increase between Non-segment the XXXX in the was These to allowance months litigation $X.XX in assets income ended in by September occur ended for XXXX XXXX. increased period as discussed. September compared compared September quarter of Court the Supreme the by well nine XXXX to The to quarter wage XXXX, of the ended XX, quarter the legal our in Jr. $X.X XXXX company significant in the legal of third in increase the due primarily related period. primarily quarter current Cotter XXXX. to and derivative $X.X same occur that sale
$X.X of XXXX, – million. For the same adjusted the adjusted EBIDA negative by $X.X third EBITDA of period our the quarter year to period prior increased million compared
For the to cash our nine These XX, primarily were of increases months compared our the of by September Shifting estate months XXXX. end $XX.X result XX, the million September million increased assets. ended sale adjusted real gain to XXXX, $XXX.X nine flow. to on EBITDA
on loan by resulting million Manhattan to property of secured of Union our For XX million net facility activities $XX.X September million. revolving activities payable, changes was when months when on primarily $XX.X Square our $XX.X ended Cash during XXXX with period due from million $XX.X activities increased operating in million. Union Square million This Creek assets million downs used from pay operating facility, was of XX, million in with XXXX of by XX, by $XX.X XX the $XX.X America, in of September Emerald in increase funding from primarily nine offset operating of the the our asset This monetization. driven compared investing increase used construction facility decreasing $XXX.X downs period. liability and to by was same the credit September ended for Cash Bank million year nine in loan Capital net by compared in period prior XXXX. financing NAB XX, months million from million $XXX.X increase decreased net inflow $XX.X ended This on provided $XXX.X by to by million and Westpac same primarily cash pay used cash due XXXX, of with to from $XX primarily downs taxes our months immediately drawn. of to was property, activities cash repayment $X.X new the the nine million during was of our loan pay $XX which our offset the
our Turning position. now financial to
estate was in XX, XXXX. million XX, in outstanding increase Our our to compared of cash to driven assets on our $XXX to December total sale XXXX. decrease assets for due land XXXX. on $XX.X million of assets. property of were XXXX, monetization months December of sale and real $XXX.X the This nine help our XX, non-operating equivalent, million on compared first $XXX.X million XX, September On a primarily by million primarily in and increase the $XXX.X were on borrows September million properties to $XXX.X Offset total XXXX worth due by cash
Our in cash includes our of as cash $XX.X our equivalent $XX.X operations. $X.X New and were operations, XX, approximately Australian million XXXX September and million in million, U.S. million in our $XX.X Zealand which operations
Further, August relationship facility. NAB lenders believe good of XXXX, are environment priorities. strategic million. $XX.X our we been to reopened In real our certain availability pay our quarter, been we covenant our have suspended this Generally assets with or recognize and down which paid revolving have have $XX.X monetized deliver on of we outstanding total of that and our tests represents which XX, the our XX, proceeds down and testing $X.X XXXX, waiver of company September of have can as from reduction the a we speaking, with certain million XXXX. a temporarily September bringing America to the credit of a that to of to repaid America, through Westpac, the as million, third that these On a million satisfy XX, During bank XXXX balance third August any require portion we current in loans On cinemas facility, $X.X with permanent Bank to obligation. comply XXXX, of covenants. used XX, debt obtained Westpac understanding Westpac, our estate had doing everything the and Bank we Invercargill quarter which
now the we with we which our negotiated followings: line XX, Bank and X, from September are XXXX, amended replaces obtained America. As term loans XX, on On a have covenants in into converted our X, September the we of XXXX, we November these of credit retired America have covenants certain new of covenant of XXXX, waiver were a amendments liquidity the On under The loan. single being November testing full the Bank we repaid our The and XX, NAB, agreement XXXX, required all November of the with through of credit. extended loans. XXXX. suspension compliance X, with covenants temporary in September the of
Andrzej. it the on With in preserving liquidity, XXXX. our to any third of quarter turn continued we shares our to As we over did not of focus now I’ll repurchase that,
Gilbert. Thanks,
thank our First, investor to questions like forwarding relations for stockholders our to I’d email.
your In of from we’ve Gilbert, Ellen and management. to remarks additional few questions many addressing to questions prepared the insights addition in selected a offer additional from
to or to back the against, get of question stock. Would stock. sense fair use assets then can of make one. sell value relates proceeds can I undervalued that assets this and borrow to buy handle first The repurchase the it sale
preserving generated equity and balance them sheet expenditures book diluted required cinema interest profits at We take level with capital we any pandemic, worked assets. their rate by prices. of We’ve significant assets, haven’t value. next monetizing value. cash lost high We selectively impacted the debt We adversely COVID focused on or not economy not would $XXX.X by any take distress did to our million and to the unlocking million. of landlords have stockholder stockholders which our by in strengthened issuing $XX.X on During our of
We have core the about are the in future of operate. our in business where markets short cinema preserved exhibition optimistic the of we and
three business country future, As in our has two continue strategy, see strategic not well in We the survived the through that to for do believe shift plan. we us any which business, pandemic.
liquidity of has regards repurchase because on businesses. the company We effect to made our which of the authorized the by on more stock position hold also review and our its with pandemic been our acute program, needs
We stock that we allow. repurchase continue recommenced with our our commitment to as CapEx program and balance program circumstances requirements our OpEx and together to
are been for many from, to the theaters? present the amount the past question when have makes theaters to program. participating and second comes are near U.S. plan? plans your more Ellen? it the How program? how capital of of completed What How restart in refurbishment left complete sense necessary is many in CapEx many The or not
building portfolio. in U.S. renovated screens, our the converting cinemas recliner things, in In LUXE eight Hawaii, substantially since we’ve significantly seating, XXXX, TITAN adding Olino offer. addition to upgrading to F&B other Those renovations and among included
theaters overall As renovation of based million the of three The the to be we’re renovation targeting $XX starting million on scope to estimate $X we in decisions of today, cost, about future the XXXX. sometime renovations. about additional
new Decisions about time major rent our at remainder arrangements lease discussions with on establish to allowances three lease and term, landlords renovations. with commence more. the or to locations reasonable three In take our of We’re XXXX, the at structures. account into these working with to four renovations subject now the conditions we’d to U.S. circuit respect landlords tenant and to market are expect
And plans further Ellen. any to Thanks, finally, are estate real monetize there assets, Gilbert?
real monetize At hold to further estate a estate predominantly our assets approach and of this have any have buy we our our Historically, plan time, to been real strategy. assets. no
to COVID-XX cash greatly the that our sheet global estate capitalizing asset strengthened real pandemic, increase balance to and these flow, assets but appreciated value. have pay not in uncertainty. in assets, type ability on impact ability us our monetize down have had given due monetization to the minimal the given of financial capital we further debt our or The our issue has By However, enhanced position historical debt. of to a strategy us these long-term
received and and to prices cash this well sheet Our regards At flows our industry we the this time, company our our the top positioned with to we we believe cinema assets. balance cinema lenders by those get actions time allow well provide to rebound. is for believe were our in flexibility continued
conclusion Gilbert. marks call. the the that Thanks, of Well,
thank As and the health attention. you. everyone usual, for and safety. Thank we your today call And listening to wish appreciate good you you
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