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Andrzej Matyczynski | executive |
Ellen Cotter | executive |
Gilbert Avanes | executive |
Thank you for joining Reading International Earnings Call to discuss our 2023 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 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. implied to our and materially actual the indicated subject may factors different are performance all statements. cause performance or statements risks, other uncertainties that from Such such by to be risk no to statements. undertake are SEC any or obligation set in publicly out Such our factors filings. We revise update forward-looking clearly
are recently we addition, definitions financial income, non-GAAP XXXX measures, financial non-GAAP and of the earnings segment EBITDA this release operating our on company's In measures discuss included adjusted quarter third website. EBITDA which issued will and call. in are on Reconciliations
revenues items nature. We price called adjusted We today's use call, in that to TLCF, accordance as a ATP, direct business In use believe industry-accepted costs is an measure an profitability theater revenue the any cinema. Cash unusual level other admissions of beverage the have for to calculated location with by that the our flow adjusted, measure of the a our also common also generated performance our we use and This amortization taxes. or where in is level and show comments cinema's applicable, depreciation accepted necessarily by we reflective level in for We'll Commission. costs is ignores used ticket nature, performance. the level an measure cash that qualified requirement The theater that SPP, acronym. financial with with EBITDA determining important Exchange playing measure average which flow, not whether at items U.S. Form infrequent and our location excluding that operations. preoccupancy, is cinemas. by disclosure detailed we be the F&B is filings cost our which is our rent, believe relating to EBITDA F&B to include the ownership less to or of and more litigation doing be and/or the expenses and also other number Securities XX-Q SPP theater internal as supplemental nonrecurring of business anything is an particular Please versus note CFPO expenses. field. sales say we leasing area through are is by the real a in results food industry extraordinary patron the on an external and the forth set we referred issues of item key consider SEC spend of per associated to X-year by dividing summary property and Such indicator legal nonrecurring, measure
will it who results I'll quarter that with Gilbert, turn and going our will forward, more provide review strategy financial detailed over followed a behind So review. by XXXX discuss Ellen, who us, business our third to
Thanks, Andre. to call and everyone, for today, in. Welcome, our listening thank you
we've we're clearly path XXXX, that demonstrated to During recovery. on the
were each cases, During in this highs. And results delivered over XXXX. operational new we've of record an that some we year, improvement established quarter
XX% the theater our million, flow was our our division million, cash higher total revenue. At Our each contributed of XXXX QX topped a XX% better $X.X QX at of phenomenal XXX% our improvement movie over XXXX. At of divisions, real to performance the million, revenue Each in global second XXXX operational our highest XXXX. estate QX Barbenheimer, compared for compared cinema quarter quarter's teams, total to revenue global QX global third stronger that a revenue QX of and a our division. to and income U.S. the QX XXXX was July of represented with real success QX represented million, led with year the quarter the highest since represented operating quarter our from than management XX% $XX.X quarter which strong live of since $X XXXX, of XXXX same cinema and story. the of XXXX slate success of estate coupled estate 'XX. the was continuation highest At Thanks by represented to third QX our operational since third third increase a third quarter XX% was global results a real QX achieved and last cinema, record and Global XXXX $XX.X delivering quarter
office quarter Zealand, the which steady highest of and new driven store now $XXX,XXX of third-party Union our in came available of York real These of solid by continued Square strong income flagship XXXX. XXX% third year Petco, operational XX flow New the stream performance from results in release period major which through demonstrate trajectory, live adjusted and operating Mansion, estate and estate -- more the half for due performance occupancy in U.S. impacted and Venice, again results office in real believe City, we million headwinds A has box since certain SAG theaters in quarter against from the which XXXX. cash-driven rental our of are remain weakening a XXXX Haunted increase of the Zealand. our Australia box like the its further increase our moving New [indiscernible]. The XX% New performance of Hollywood us XX% upward rate the were and and that potential the recently opened York to recognize has more that a space. Delivery than compared the and over represented QX and Haunting in focused XX our Australian settled quarter the the duration negatively despite our estate on dollar as from revenues and generated in Our company right Australia -- third-party tenants which debt June an to theater-level pandemic will continued encouraging third third the the operational of 'XX. The on strikes movies of portfolio lack our liquidity in same our tenant dollar impact cash impact in our last from business delivered dollar, New retail most resulting Though a the schedule Hollywood at we of this strikes, of $X.X conditions New in improving any gross facing of promoting are EBITDA, quarter, real talent changes of movies tenant Zealand
in sheet. maturities, the improve $X strengthen and urgency 'XX the our our in of 'XX environment, third to debt interest recognized current over with Given upcoming resulted million payment the has in which liquidity just and interest we've rate quarter, the our balance coupled
we're decades. that, market and the the which monetize pursue closely South our conditions for other built-in gain intend portfolio support of real some to to company's look let's had of As ensure in at rest property being long-term currently for options the growth million. sold AUD are Two X.X our estate October strategic assets commercial our we real sale, held flow our for the in to into account X.X estate. With provided over foundational assets few for we've asset we the Wales New It 'XX, a previously has global Maitland, evaluating million. value business, our last to of cash more suboptimal book of while reported, taking viability. In cinema AUD
and released cinema impressive mentioned, quarter July third As both business. weekend for box our I of office global XX, Barbie premiers just drove box strong the office lineup to history. Oppenheimer, led The the our diversified fourth results on opening biggest movie in
film Indiana weekend Its office opening highest As opening it third ever. Similarly, film highest a grossing is become grossing grossed performance and non-franchise successful of box and generated independent time as over time Mutant summer highest films a all results, has grosses, one box over This our allowed quarter office over to and Freedom, at all in that's the grossing biographical Impossible, films to only for has fan contributed worldwide the grossing the becoming unlikely film Barbie weekend the time. Not of today, office, highest Ninja box including million of highest the movie movie War the Sound screens of of to Oppenheimer the Turtles. hit all franchises was favorite Mission third grossing Jones now of Oppenheimer making and of has the the well $X.X return XXXX. impressive other phenomenon, million globally year. $XXX of grossed as billion big Barbie World such $XXX Teenage II most cultural global the as it
office on the strong While almost global improve key box our to was success, overall P&L the cinema line quarter profitability. our teams third management our every the worked to
highest quarter This $X.X somewhat divisions third of U.S., head our XXX% making and as fact, any an weeks per has the came cinema that out Eras office third drove third cash the fourth we of in income been each Swift, preoccupancy XXXX started better of given Swifties during a during operating of compared weekend Australia capita $X.X to cinema cinema box kind the 'XX 'XX. The October to quarter has quarter quarter strike. our office opening in North force of ever the momentum America. optimism XXXX film created our the company The actors even In flow million, the of improve On quarter for Zealand. as Tour, for to ever the that, supports by experienced full New uncertainty Taylor combination winning prowess for our and XX, we in out the third The loss and in highest quarter the metric for anticipated its XXXX. the than million the industry third by our of grossing final box it global into whole management of was operating the
million Killers to adult today, was the treated produced it's Apple. of $XXX As release were Martin Flower the by XX, of globally. On Scorsese's audiences October which over of Moon, grossed
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third QX $XXX,XXX, revenue cinema income outperformed average At the best 'XX third XXXX's quarterly notable performance our into by million year. Other was of ticket compared to positive $XX.X almost and to Our XX% the ahead represented the cash level at XXXX QX cinema theater quarter is flow U.S. highest revenue operating increased $X.X same compared performance. our quarter U.S. $XX.XX, QX quarter XXXX, our of third ever. to quarter milestones, revenue million increased and price last the by XXX%
which F&B of a $X.XX, with this account operate price an this comes when our discounts. Our quarter highest third that the Tuesday cinemas year, third you is F&B It's to led take despite all U.S. into result ever. concession continued focus impressive SPP value of of as
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primarily third on quarter theater was online ancillary highest from fees the Our rentals generated revenue service and record.
cinemas specialty Film York Angelika U.S. Our to City. shine Center in led continue the by New
the increased in on office which the Our Since in broken gross over U.S. 'XX, 'XX at quarter, the X material of capital third in compared the by box of to achieved on renegotiate focused as past our have the over at York it's only third to April And to the expenses than the New also by $XXX,XXX. Angelika its premier of June generated the investment required a membership, at programming, would grossed fixed portfolio, in XXXX. The leases ranks has office July, have has quarter otherwise have XXX% marketing our the theater the been third and higher Angelika team XXXX member return lives unprofitable York. box 'XX profitability camp, box has over quarter engagement executive and the launched to threshold. Not box was and the Theater teams cinemas, through took of losses. reducing highest highest operating engagements steps closing attempting cash across quarter which film's office office XXX,XXX hard which of last work New Angelika stem Angelika for at our our opened
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impressive were Given measured currency. in Australian local of the the even decline the continued more these dollar, operational in value increases when
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new wider. York Spring end of of home finished is shot the the been than the Garden substantially and terminus a connects to a construction. proposed New number feet, southern under neighborhood significant It's X,XXX shorter units housing from City, or Center to the at northern While XXers Highline new its approximately connects have it where jump just
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issues and been our impacted quarter, of liquidity commercial by to estate it real of I'll the the third against New elevated real We're the office selling in significantly at point Gilbert. for values low employees. possibility vacancies same turn cycle. With work business rates, raise and York in a However, need home up preference over I'll interest estate have balancing that, the sufficient to overview of the my wrap from
XX, increase X This period primarily $XX.X recognized International for when result from period XXXX the a September Ellen. New ended $XXX.X due same to when in XX a somewhat offset the a did due X compared loss across occur months a XXXX, per months our segment slate, $X.XX were Petco the for revenues return Zealand ended U.S. to XXXX, loss expenses, revenue our increased not million and expenses prior quarter other ended expense, the as cinema to year XXXX, the are to currencies. Net that decreased circuit by value decreased million XXXX our the Petco for decreased compared revenue, that ended worldwide by results were attributable stronger Consolidated as and to increased increased of months the in to revenue September attributable in by decreased due $X.X to offset film patrons circuit in strong ended of the cinema by same slate XXXX, $X.XX for better compared the $XX.X by results loss by in in to was at XX from the stream period XX, recognized income. million and months rental loss ended new September result in of million and depreciation in XX, partially offset loss year. as increased impairment in a September cinema XXXX, $XX.X XX improved from per prior of attendance the amortization decreased increased increased basic improved the $X.XX decrease Square not September for interest expenses XX, depreciation million to XXXX, per performance million the for the million September Reading was amortization the QX to that $X.X by of the decreased prior share $XX.X quarter when XX, property more XXXX, Square a and for slate first film the Square movie XXXX. to decrease XX, to ended compared X ended and you, to in the the share that loss compared quarter year when to income. Net was stronger million partially X XX, XXXX. $X.XX the September due G&A the and $X.X Petco same same September other to rent our by QX Union theater at of of our driven Union share expense of and International Thank incurred XXXX. That tenancy segment to Basic X of during months XXXX, Australia XXXX. quarter by not These the of Basic tenant year. Consolidated expense share occur period the net a Reading did loss basic XX, incurred Union loss per the a improved rent interest to and compared to
quarter in incurred company total period XX, to and the the to administrative to by for and impairment XXXX amortization, amortization, the $XX.X reoccur the and million same general in XXXX, the that XXXX, depreciation million expenses decreased $XX $X.X XX, decreased September to X quarter were year. and not compared due in Our that to G&A and spending. ended million, The due did prior months by expenses amortization $X.X million compared depreciation, in September slightly decreased the for in prior XXXX same Depreciation, CapEx year. decreases delay are to expenses ended impairment impairment
third expense quarter compared to the in year For of changes the $X.X and million prior million expense XXXX, third primarily related XXXX. income to valuation of third $X.X to increase allowance between the The increased equivalent tax for period. quarter tax quarter in of by XXXX, income reserve XXXX
of income to For to between in September prior is tax months income primarily of X related million to and X X expense XXXX equivalent year XXXX. reserve decrease decreased months in the tax unrecognized expense by of XX, ended the period. The changes tax million, $X.X benefits for XXXX months $X.X XXXX, the compared
the compared same rent For cinema prior the operating our year million. by from Petco primarily third period quarter of $X.X This increase XXXX, was to million, our increased adjusted the to X.X% of by and strengthened EBITDA $X.X performance tenant. result
the did by of driven primarily XXXX, same the compared period Union months in not expenses. Cash rental Square to in operating year, Cash accrued at September from payable, receipt relatively period, XXXX, activities the investing in liabilities increase September the financing our income payables prior net flat $X.X used used for rental in due a decreased ended same to X XX by was increase which in tenants to million. time compared borrowing $X.X our operation estate in prior the facility. Petco to performance prior XXXX, to which and and $X.X year. Shifting the X stayed an This $X.X cinema property, activities increase was period. flow prior $X.X period. months when $XX.X improved September to the net our in prior cash million for activities used X cash year $X.X of same income an same XX, not was million of an due the rent to compared of is ended period net EBITDA the due ended cinema increased million X improved months of September to XX, operations For in prior incurred from million million for used the year operating ended income year to period same compared months cash the real decreased This our to on as existing adjusted $XX tenant, XXXX, an million, taxes which XX, improved million our XX, the the in accounts of by the to by year loss result occur
now our position. to financial Turning
were XX, ongoing business in funded and lease we operating Our $XXX.X total by equivalent to in was an $XX $XX.X decrease $XXX.X cash on use This XX, write-off for XXXX, December and driven September operations cash on million our a asset. compared decrease assets million which million decrease million XXXX.
certain extended were XX, our September repayment some $X.X X, the $XXX.X million XXXX, XXXX. Cash cinemas to of the U.S., XXXX. September closed million X down the in maturity $X.X have to Zealand. New Further September $X.X XX, of X, we loan we in million we potential loan, required maturity XXXX, total XXXX, for underperforming of date to pressure have corporate And with $XXX,XXX million selected modified outstanding XXXX, and maturity commenced. liquidity extended and XX, cash which Australia to and May in XXXX, monetization our as loan facility million, maintain included continue this market of on we them sale. In XXXX, to extending term August $XXX.X of and As real business, to date address $X.X July compared on QX our modified we to X, listed December XXXX. In the million and borrowings certain from in noncurrent. debt million paid September our X, on the October America assets date the with of have XXXX, XXXX, equivalent X, monthly facility October $XX.X of Bank our NAB XX, cinemas, our as estate covenants were approximately and XX, And for facility revolving
likely that, we to the As purchased has preserving foreseeable future. With for will lower September and to no stock a continue priority turn to focus our now were on the over I liquidity, Andrzej. our XX, shares will repurchase program take and during continue capital ended quarter XXXX, it allocation
Thanks, Gilbert.
First, I'd our for to e-mail. forwarding like to thank questions Relations Investor our stockholders
additional Gilbert, questions selected we've to addition addressing management. from a the Ellen additional few from questions insights and In many offer to your prepared remarks of in
where The a about We of assets in first seeking to New are process. our the Ellen. received an Wellington, we question in update development as Zealand, number for inquiries
that's With to respect we to remain redeveloping Wellington, Central includes committed our Courtenay to XXXX. which a in since January closed of those properties, path been properties temporarily finding
X due majority in was the As at Zealand to the that power of Wellington of a the date. real we that committed we put country. families Wellington our of Wellington to the the We're that to the closed which Courtenay potentially asset Central, approach people-first discovered we flowing issue our risk. cinema we've In the business. It taken building New of seismic could foundation XXXX, businesses is reminder, a cash and both CBD in estate that was have one those parcels that in
the recognize our we continue over We best we that also believe are years challenges the to that company economic actions take have occurred interest of have in and that our the and stockholders. business, impacted our several last
stakeholders given commencing management plans, team a the working continue can of behind Wellington spectacular upgrades with in the We workable by redevelopment various Takina to and successful elevation that and those our to focused completing opening dedicated be counsel be redevelopment. on the recent no is Though path with Theater. of be its to we'll to James assurances City St. find our and creativity impressed very the by
exciting, but towards tourists work stockholders. Wellingtonians to continue finding only we this believe capital be for we As and path, to city, that also not outcomes that will the our
exceed you for think Interest On do Ellen. that EBITDA, your to once you, expenses Thank can exceeded you has where are you in attempts enough headquarters again expense. of and large XXXX a you the debt position the interest regain you are have Williamsport color you answer any investors in asset status question, effectuate EBITDA sales Culver this property. Gilbert, should please? able to position? line on that this sell to Can or time multipart provide expect address can your what City
detailed monetization to actively pursuing certain are provide to of QX as appropriate to funds our meet assets obligations. liquidity sufficient our provide in We
We lenders, our been have relationship extend and our to good able with we have loans.
loan us NAV we quarter, as to recent market a XX, XXXX, on well note, X, over XXXX. gives end a largest extended strike XXXX. The last improvement X, end Hollywood confidence loan the During to our positive as will more our with X extended cinemas delivering of that July XXXX October X,
Regarding the their we Williamsport, our And City reflective to we Culver sold quarter with building to are the the office, XXXX. of received Ellen not as be respect value. first have of in mentioned, expect fair offers
have are future Ellen, what additional estimated and Gilbert. Thanks, near-term that underperforming closure? theaters the savings? there And you identified is for timing
those we've $X late a or at U.S., tenancy. which the underperforming cash savings theaters either term earlier, we end over closed of of million the well to be since X As from in on we that the its XXXX, annually. estimate each mentioned was theaters month-to-month And
Zealand. As underperforming in of any haven't today, we or theaters Australia New closed
due, intention or where we're make become keep invested come the to new cash to lease. place the in on from projected option seek option return historic our up, not confident and a put necessary As we'll to double-digit not it's that dollars, CapEx the competitive. leases the flow reviewing our we're exercise theater terms the current If theater
Our management teams into are laser-focused the on ensuring that each theater has the potential to flow generate future. sufficient cash
be U.S. a more theaters During for in closure. XXXX, we'll reviewing the potential few
give we'll that's that potentially meets provide balanced, However, seek us deal flow targets. the venue a in that and that cash our the work confidence each to with could landlord out will the well instance,
as maximize each finally, And sites. and Minetta last a the optimize What theater Lane Orpheum are question of to well. Readings and value you plans of for the intermediate-term
is Our continue current as them venues. each Minetta off-broadway of plan to to operate and the Orpheum Lane
from Given home Minetta than today, of theater point the interest may they've in at for more a their audible has Broadway our multiyear been there's productions past And the some cost city of indicated future, license the and the years taking considerable than one flow redevelopment venues. sense X and properties these particularly of a sale is make in enjoy account But don't time operations we cost continuing venues. the theater live rates both into current interest development. of or cash more renewing interest in of the theater basis. It Lane that in off-Broadway might now, to the or believe conditions, the an their on market be that
questions good management your listening like everybody for the and sent for today. wish participated to brings team. of from you that safety. end to some that and and the the call appreciate to attention, everyone health thank you And would I information call. the us We Thank conference
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