# Reading International Inc: Form 10-Q for the period ended Jun 30, 2025

- Company: [Reading International Inc](/companies/rdi.md) (CIK 716634)
- Form: 10-Q
- Filed: 2025-08-14
- Accepted by EDGAR: Aug 14, 2025, 20:20 ET
- Period: 2025-06-30
- Accession: 0000716634-25-000037
- Inline XBRL: yes
- Main document: https://www.sec.gov/Archives/edgar/data/716634/000071663425000037/rdi-20250630x10q.htm
- All documents and exhibits: https://www.sec.gov/Archives/edgar/data/716634/000071663425000037/

## Figures reported in this filing

Standardized XBRL line items for the period ended 2025-06-30.

| Line item | Period | Value | XBRL concept |
| --- | --- | ---: | --- |
| Revenue | 3 months, 2025-04-01 to 2025-06-30 | $60.4m | us-gaap:Revenues |
| Revenue | 6 months, 2025-01-01 to 2025-06-30 | $100.5m | us-gaap:Revenues |
| Operating income | 3 months, 2025-04-01 to 2025-06-30 | $2.9m | us-gaap:OperatingIncomeLoss |
| Operating income | 6 months, 2025-01-01 to 2025-06-30 | −$4.0m | us-gaap:OperatingIncomeLoss |
| Interest expense | 3 months, 2025-04-01 to 2025-06-30 | $4.4m | us-gaap:InterestExpense |
| Interest expense | 6 months, 2025-01-01 to 2025-06-30 | $9.1m | us-gaap:InterestExpense |
| Income tax | 3 months, 2025-04-01 to 2025-06-30 | $1.2m | us-gaap:IncomeTaxExpenseBenefit |
| Income tax | 6 months, 2025-01-01 to 2025-06-30 | $753.0k | us-gaap:IncomeTaxExpenseBenefit |
| Net income | 3 months, 2025-04-01 to 2025-06-30 | −$2.7m | us-gaap:NetIncomeLoss |
| Net income | 6 months, 2025-01-01 to 2025-06-30 | −$7.4m | us-gaap:NetIncomeLoss |
| Diluted EPS | 3 months, 2025-04-01 to 2025-06-30 | −$0.12 | us-gaap:EarningsPerShareDiluted |
| Diluted EPS | 6 months, 2025-01-01 to 2025-06-30 | −$0.33 | us-gaap:EarningsPerShareDiluted |
| Basic EPS | 3 months, 2025-04-01 to 2025-06-30 | −$0.12 | us-gaap:EarningsPerShareBasic |
| Basic EPS | 6 months, 2025-01-01 to 2025-06-30 | −$0.33 | us-gaap:EarningsPerShareBasic |
| Diluted shares (weighted) | 3 months, 2025-04-01 to 2025-06-30 | 22,708,206 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Diluted shares (weighted) | 6 months, 2025-01-01 to 2025-06-30 | 22,586,019 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Operating cash flow | 6 months, 2025-01-01 to 2025-06-30 | −$6.2m | us-gaap:NetCashProvidedByUsedInOperatingActivities |
| Capital expenditure | 6 months, 2025-01-01 to 2025-06-30 | $635.0k | us-gaap:PaymentsToAcquirePropertyPlantAndEquipment |
| Cash and equivalents | at 2025-06-30 | $9.1m | us-gaap:CashAndCashEquivalentsAtCarryingValue |
| Current assets | at 2025-06-30 | $21.3m | us-gaap:AssetsCurrent |
| Total assets | at 2025-06-30 | $438.1m | us-gaap:Assets |
| Current liabilities | at 2025-06-30 | $130.5m | us-gaap:LiabilitiesCurrent |
| Total liabilities | at 2025-06-30 | $446.5m | us-gaap:Liabilities |
| Current portion of debt | at 2025-06-30 | $38.2m | us-gaap:DebtCurrent |
| Shareholders' equity | at 2025-06-30 | −$7.7m | us-gaap:StockholdersEquity |

## Management's discussion and analysis

As filed, 89,755 characters.

The MD&A should be read in conjunction with our consolidated financial statements and related notes in this Report.

### Business Overview & Updates

### Cinema Exhibit Segment

We are encouraged by the robust performance of our cinema business in the second quarter, which reinforces our confidence in the ongoing recovery of both our operations and the global cinema industry. The results this quarter reflect increasing audience demand and a solid slate of theatrical content. While challenges persist, including the residual effects of COVID-19, the 2023 Hollywood strikes, macroeconomic conditions such as inflation and interest rates, labor cost increases, and currency fluctuations in Australia and New Zealand, the positive results observed in the second quarter demonstrates the continued resilience of our global cinema segment.

The second quarter of 2025 has generated what we believe to be encouraging momentum for the cinema industry, highlighted by the impressive performance of key releases such as *A Minecraft Movie, Sinners*, and *Lilo & Stitch*. These films have not only exceeded industry expectations but have also reinvigorated audience enthusiasm, driving higher attendance levels and box office revenues. *A Minecraft Movie* has captivated diverse demographics by blending popular gaming culture with cinematic storytelling, while *Sinners,* in its unique 70mm format, has resonated strongly with audiences seeking compelling, original narratives. Meanwhile, *Lilo & Stitch* has attracted families and long-time fans, contributing to a well-rounded slate of successful releases. The success of these titles reflects a broader trend of audiences eagerly returning to theaters for high-quality, engaging content. This momentum has carried over into July 2025 with the impressive box office results further described below.

Several notable films significantly contributed to the success of the second quarter of 2025. Universal’s *How to Train Your Dragon* captivated audiences with its heartfelt storytelling, drawing a strong family attendance. Disney’s *Thunderbolts\** continued to build on the popularity of the Marvel Cinematic Universe, delivering thrilling action sequences and complex character arcs that resonated with fans worldwide. Paramount’s *Mission: Impossible – The Final Reckoning* maintained the franchise’s legacy of high-octane excitement and breathtaking stunts, attracting both longtime fans and new viewers. Warner Brothers further bolstered this quarter’s box office performance with *Final Destination: Bloodlines*, a fresh installment that revitalized the beloved horror franchise, and *F1: The Movie*, which engaged racing fans and general audiences with its dynamic portrayal of the sport.

In addition to these successes, the third quarter of 2025 has seen tremendous success from *Jurassic World: Rebirth* (July 2025), grossing over $800 million worldwide, *Superman*, and The *Fantastic Four: First Steps. Jurassic World: Rebirth* taps into nostalgia and family-friendly adventure, and its dinosaur-driven thrills continue to draw massive audiences. Alongside Universal’s summer breakout success, Warner Brothers *Superman* (July 2025), has grossed over $581 million worldwide. The film has earned praise for its compelling story, striking visuals, and ability to spark meaningful conversations. *Fantastic Four: First Steps* has already made a significant impact on the cinema industry, grossing over $437 million worldwide. Disney has drawn interest from both longtime fans and new audiences, showing that rebooted superhero films continue to resonate strongly with moviegoers around the globe These films’ strong box office and critical success highlight the impact of 2025’s diverse slate, which is drawing wide audiences back to theaters and signaling a vibrant future for cinema.

We believe that this momentum is further supported by the robust lineup of upcoming releases throughout the remainder of 2025 and beyond. Films such as *TRON: Ares* (October 2025), *Wicked: For Good* (November 2025), *Zootopia 2* (November 2025), and *Avatar: Fire and Ash* (December 2025) are anticipated to be major draws, continuing the industry's growth and positive momentum.

Amazon MGM Studio’s *The Accountant II* and *A Working Man* exemplify how streaming companies are strategically leveraging theatrical releases to enhance their film distribution models, which in effect expand their reach and enhance their cultural impact. These successful cinema runs demonstrate that by integrating theatrical exhibition into their release strategies, streaming companies like Amazon MGM are reaffirming the unique value of the big screen experience in complementing digital distribution and expanding overall viewership to a broader audience.

Since the start of the COVID-19 pandemic through the second quarter of 2025, we closed or surrendered eight (8) underperforming locations (three in Hawaii, two in California, one in Texas, two in New Zealand) to improve our cinema operation performance. As of today, none of these locations are operating as a cinema. We continue to work to re-negotiate leases at our currently operational U.S. cinemas to either reduce occupancy costs or to convert fixed rent to percentage rent, thus better aligning our landlord's interests with our own.

We remain optimistic about the continued recovery and operational improvements across our global cinema network. A major contributor to this progress is the steady growth of our Food and Beverage program. We have secured the ability to serve beer and wine at all U.S. cinemas and offer liquor at all but three locations, with efforts underway to complete licensing at the remaining sites. We’re also advancing similar initiatives in Australia and New Zealand to elevate our offerings and enhance the overall guest experience.

### Recent Box Office Improvements

Despite a softer film slate in the first quarter of 2025 and lingering effects from the 2023 Hollywood strikes, the second quarter of 2025 has powerfully demonstrated our company’s resilience and the cinema industry’s continued recovery. The strong box office performance this quarter reflects the audience’s continued demand for theatrical content and our ability to successfully navigate through industry-wide challenges.

Warner Brothers played a key role in the quarter’s success, delivering two of the biggest hits of the year thus far: *A Minecraft Movie, F1: The Movie,* and *Sinners. A Minecraft Movie has* become a global phenomenon, nearing the $1 billion mark at the worldwide box office. It delivered the largest opening weekend of 2025 domestically and broke the all-time highest opening weekend record for a video game adaptation, surpassing the highly successful *Super Mario Bros.* movie. Its box-office success highlights the strength of highly distinguishable brand recognition and the lasting audience demand for high-quality franchise storytelling. *Sinners* also exceeded expectations, earning widespread critical acclaim and resonating strongly with audiences. With more than $365 million in global box office revenue to date, the film has proven that original, story-driven content continues to thrive in the theatrical marketplace.

Family films have also played a major role in this quarter’s success. Disney’s *Lilo & Stitch* remake has been a standout performer, grossing over $1.0 billion worldwide and outperforming the original. Its strong reception highlights the lasting power of beloved legacy titles, reintroduced to new generations. In addition, Universal’s live-action *How to Train Your Dragon* has already surpassed the 2019 installment and 2010 original, earning over $623 million globally. These titles reinforce the importance of family-friendly content in attracting wide-ranging audiences and driving consistent box office results.

These films released in the second quarter highlight the strength, diversity, and commercial power of the second quarter’s lineup. Compared to both the previous quarter and the same period last year, our global box office performance has seen significant improvement.

As we move into the second half of 2025, we are well positioned to extend our momentum with a thrilling and diverse slate of films. Audiences are continuing to be captivated by titles like *Superman, Jurassic World: Rebirth*, and *The Fantastic Four: First Steps*, while eagerly anticipating upcoming releases such as *Wicked: For Good, Zootopia 2, Five Nights at Freddy’s,* and *Avatar: Fire and Ash*. These upcoming releases exemplify the cinema industry’s unwavering commitment to delivering a rich and compelling variety of films that will engage audiences globally and drive sustained growth across the sector.

### Real Estate Segment

Regarding our United States real estate, during the first quarter of 2024, we sold our underutilized administrative office building in Culver City, California for $10.0 million. We continue to work to lease up the remainder of our 44 Union Square building in New York. The existing 44 Union Square tenant, Petco, occupies the cellar, ground and second floors on a full rent paying basis. We believe that demand for space in the Union Square submarket is improving.

Regarding our Australia and New Zealand real estate, on May 21, 2025, we sold our Cannon Park properties in Townsville, Queensland, Australia for AU$32.0 million (USD equivalent of $20.7 million), while retaining the cinema leasehold at that property. And, on January 31, 2025, we sold all of our Wellington, New Zealand properties for NZ$38.0 million (USD equivalent of $21.5 million), and entered into an agreement to lease for the cinema premises in Courtenay Central upon completion of seismic upgrades. The proceeds of these sales were used, among other things, to pay down approximately $32.1 million in debt. As of June 30, 2025, all our tenants at our Australian and New Zealand properties were in occupancy on a full rent paying basis.

Given our liquidity requirements, we have largely paused our real estate development projects. Our restricted capital expenditures in 2024 and thus far in 2025 have primarily targeted improvements to our existing cinemas. To bolster our liquidity, the Company has continued to hold for sale our Newberry Yard property in Williamsport, Pennsylvania.

### Company Overview

We are an internationally diversified company principally focused on the development, ownership, and operation of entertainment and real estate assets in the United States, Australia, and New Zealand. Currently, we operate in two business segments:

Cinema exhibition, through our 58 cinemas as of June 30, 2025.

Real estate, including real estate development and the rental of retail, commercial, and live theatre assets.

While we have monetized nine property assets over the past five years, we believe these two business segments will continue to complement and support one another. Prior to COVID-19, we used cash flows generated by our cinema operations to fund the front-end cash demands of our real estate development business. As a result of COVID-19, we relied more upon income from our real estate assets, and tapped into the embedded value in those assets, to support our Company through the COVID-19 crisis. As the residual

COVID-19 and the 2023 Hollywood Strikes impacts behind us, we believe that the quality of film releases will continue to improve, enticing patrons to return to our cinemas and reaffirming our belief that we will once again be able to rely on the cash flows generated by our cinema portfolio to enhance and add to our real estate portfolio. To meet anticipated liquidity needs, we continue to classify one asset (Newberry Yard) as an asset held for sale. Even after this disposition we anticipate that we will continue to own properties in Pennsylvania, Manhattan, and in Australia that we believe will present, when capital resources are available to us, potential to build material stockholder value.

#### Key Performance Indicators (Unaudited; U.S. dollars in thousands, except per patron data)

### Food and Beverage Spend Per Patron

A key performance indicator utilized by management in our cinema segment is Food and Beverage (“F&B”) Spend Per Patron (“SPP”), which is calculated based on our total Food & Beverage Revenues on a post-tax basis divided by our attendance during a specific period.

One of our strategic priorities has been to continue upgrading the food and beverage menu at several of our global cinemas. As of June 30, 2025, we have a total of 37 theater locations with elevated food and beverage menus (i.e. menus that are beyond traditional popcorn, soda, and candy). We use F&B SPP as a measure of our food and beverage operational performance as compared to that of our competitors. Although the profitability of our food and beverage operations is influenced by numerous factors, including labor and cost of goods, F&B SPP serves as an indicator of our ability to achieve consistent strong top-line performance. In addition, F&B SPP highlights our ability to optimize revenue by effectively promoting and selling supplementary products to our customers during each visit. Moreover, this metric assists in evaluating how well we can differentiate our F&B offerings from our competitors. Management in turn uses F&B SPP to adjust food and beverage pricing strategies at our individual theaters, measure the effectiveness of promotional marketing initiatives, optimize menu offerings, and ensure price barriers are not created for our attendance.

| Food & Beverage Spend Per Patron ‎(in functional currency) | Quarter Months Ended June 30, 2025 | 2024 | % Change Fav/(Unfav) | Six Months Ended June 30, 2025 | 2024 | % Change Fav/(Unfav) |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| United States | $9.13 | $8.12 | 12.4% | $8.68 | $7.93 | 9.5% |
| Australia | $8.26 | $7.67 | 7.7% | $8.08 | $7.66 | 5.5% |
| New Zealand | $7.14 | $6.60 | 8.2% | $6.99 | $6.64 | 5.3% |

### Average Ticket Price per Patron

An additional key performance indicator utilized by management in our cinema segment is Average Ticket Price (“ATP”) Per Patron, which is calculated based on our total Box Office Revenues on a post-tax basis divided by our attendance during a specific period. ATP serves to measure our operational cinema performance when compared to that of our competitors. ATP is a useful metric for evaluating our ability to achieve a strong top line performance, gauging the effectiveness of our cinemas’ pricing strategies and our ability to draw audiences back to our theaters. Management uses ATP to adjust and inform ticket pricing schemes for our individual theaters, measure the effectiveness of our content programming, and ensure that price barriers are not created for core guests.

| Average Ticket Price ‎(in functional currency) | Quarter Months Ended June 30, 2025 | 2024 | % Change Fav/(Unfav) | Six Months Ended June 30, 2025 | 2024 | % Change Fav/(Unfav) |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| United States | $13.44 | $13.27 | 1.3% | $13.46 | $13.52 | (0.4)% |
| Australia | $16.34 | $13.11 | 24.6% | $16.00 | $13.35 | 19.9% |
| New Zealand | $14.70 | $11.35 | 29.5% | $14.30 | $11.56 | 23.7% |

### Real Estate Key Performance Indicators

The key performance indicators used by management in our real estate segment vary according to jurisdiction. At the current time, in the United States, we assess our real estate division (including 44 Union Square and our historical railroad assets, but excluding our Live Theaters), solely on a net operating income basis. We have no specific key performance standards to compare performance from period to period. Rather we analyze operating budgets and projections and compare actual results to budgeted or projected results from time to time.

In Australia and New Zealand, we assess our properties held for rent using net operating income, occupancy factor (the percentage of the net rentable area of our properties that are leased) and average lease duration. We believe our chosen indicators help us effectively assess the return on investment on our real estate assets.

| Real Estate ‎(in functional currency) |  | Quarter Months Ended June 30, 2025 | 2024 | % Change ‎Fav/(Unfav) | Six Months Ended June 30, 2025 | 2024 | % Change ‎Fav/(Unfav) |
| --- | --- | ---: | ---: | ---: | ---: | ---: | ---: |
| United States | Net Operating Income | $(274.8) | $(322.8) | 14.9% | $(421.0) | $(853.2) | 50.7% |
| Australia | Net Operating Income | $718.2 | $736.8 | (2.5)% | $1,740.3 | $1,470.4 | 18.4% |
|  | Occupancy Factor | 98.8% | 95.3% | 3.5 %age points | 98.8% | 95.3% | 3.5 %age points |
|  | Average Lease Duration | 3.79 Years | 3.25 Years | 0.54 years | 3.79 Years | 3.25 Years | 0.54 years |
| New Zealand | Net Operating Income | $(209.4) | $(797.5) | 73.7% | $(683.9) | $(1,412.4) | 51.6% |
|  | Occupancy Factor | 100% | 100% | - %age points | 100% | 100% | - %age points |
|  | Average Lease Duration | 0.58 Years | 1.00 Years | (0.42) years | 0.58 Years | 1.00 Years | (0.42) years |

In the case of our Live Theatres, with respect to key performance indicators, we primarily look to the live theater rental revenue and ancillary income from the theaters. This key performance indicator represents box office revenues less amounts paid to producers for license fee settlements, plus ancillary income earned by us from certain theater operations. Our live theater rental revenue and ancillary income for the second quarter 2025 improved to $0.6 million compared to $0.4 million for the second quarter 2024. Our live theater rental revenue and ancillary income for the six months ended June 30, 2025 improved to $1.2 million compared to $0.8 million for the six months ended June 30, 2024.

### Cinema Exhibition Segment Overview

We operate our worldwide cinema exhibition businesses through various subsidiaries under various brands:

in the U.S., under the Reading Cinemas, Angelika Film Centers, and Consolidated Theatres brands.

in Australia, under the Reading Cinemas, Angelika Cinemas, the State Cinema by Angelika, and for our one unconsolidated joint venture theatre, Event Cinemas brands.

in New Zealand, under the Reading Cinemas and for our two unconsolidated joint venture theatres, Rialto Cinemas brands.

Shown in the following table are the number of locations and screens in our cinema circuit in each country, by state/territory/region, our cinema brands, and our interest in the underlying assets as of June 30, 2025.

| Country | State / Territory / Region | Location Count(3) | Screen Count | Interest in Asset ‎Underlying the Cinema Leased | Owned | Operating Brands |
| --- | --- | ---: | ---: | ---: | ---: | --- |
| **United States** | Hawaii | 6 | 74 | 6 |  | Consolidated Theatres |
|  | California | 5 | 58 | 5 |  | Reading Cinemas, Angelika Film Center |
|  | New York | 3 | 16 | 2 | 1 | Angelika Film Center |
|  | Texas | 1 | 8 | 1 |  | Angelika Film Center |
|  | New Jersey | 1 | 12 | 1 |  | Reading Cinemas |
|  | Virginia | 1 | 8 | 1 |  | Angelika Film Center |
|  | Washington, D.C. | 1 | 3 | 1 |  | Angelika Film Center |
|  | **U.S. Total** | **18** | **179** | **17** | **1** |  |
| **Australia** | Victoria | 9 | 62 | 9 |  | Reading Cinemas |
|  | New South Wales | 6 | 44 | 6 |  | Reading Cinemas |
|  | Queensland | 7 | 64 | 5 | 2 | Reading Cinemas, Angelika Cinemas, Event Cinemas(1) |
|  | Western Australia | 4 | 27 | 3 | 1 | Reading Cinemas |
|  | South Australia | 2 | 15 | 2 |  | Reading Cinemas |
|  | Tasmania | 2 | 14 | 2 |  | Reading Cinemas, State Cinema by Angelika |
|  | **Australia Total** | **30** | **226** | **27** | **3** |  |
| **New Zealand** | Wellington | 2 | 15 | 2 |  | Reading Cinemas |
|  | Otago | 2 | 12 | 1 | 1 | Reading Cinemas, Rialto Cinemas(2) |
|  | Auckland | 2 | 15 | 2 |  | Reading Cinemas, Rialto Cinemas(2) |
|  | Canterbury | 1 | 8 | 1 |  | Reading Cinemas |
|  | Southland | 1 | 5 | 1 |  | Reading Cinemas |
|  | Bay of Plenty | 1 | 5 |  | 1 | Reading Cinemas |
|  | Hawke's Bay | 1 | 4 |  | 1 | Reading Cinemas |
|  | **New Zealand Total** | **10** | **64** | **7** | **3** |  |
| **GRAND TOTAL** |  | **58** | **469** | **51** | **7** |  |

32

(1) Our Company has a 33.3% unincorporated joint venture interest in a 16-screen cinema located in Mt. Gravatt, Queensland managed by Event Cinemas.

(2) Our Company is a 50% joint venture partner in two New Zealand Rialto Cinemas, with a total of 13 screens. We are responsible for the booking of these cinemas and our joint venture partner, Event Cinemas, manages their day-to-day operations.

(3) (i) Our Wellington lease count includes our Courtenay Central cinema, which, having been sold on January 31, 2025, is now under an Agreement to Lease and we anticipate reopening following the completion of certain third-party construction and seismic strengthening works. (ii) We closed one underperforming cinema located in San Diego, CA on April 15, 2025.

Our cinema revenues consist primarily of cinema ticket sales, F&B sales, screen advertising, gift card sales, cinema rentals, and online convenience fee revenue generated by the sale of our cinema tickets through our websites and mobile apps. Cinema operating expenses consist of the costs directly attributable to the operation of the cinemas, including (i) film rent expense, (ii) cost of goods sold, (iii) operating costs, such as employment costs and utilities, and (iv) occupancy costs. Cinema revenues and certain expenses fluctuate with the availability of quality first run films and the number of weeks such first run films stay in the market. For a breakdown of our current cinema assets that we own and/or manage, please refer to *Part I, Item 1 – Our Business* of our 2024 Form 10-K.

### Cinema Pipeline and Closure

On January 31, 2025, in connection with our sale of our Wellington Properties to Prime Property Group Limited (“Prime”) we entered into an agreement to lease with Prime to fit out and operate under a long-term lease our previously owned 10 screen cinema at the to be redeveloped Courtenay Central in Wellington, New Zealand (the “ATL”). Under the ATL, Prime is obligated to redevelop Courtenay Central and upgrade it to meet current earthquake standards. We intend to renovate the existing cinema to a “best-in-class” standard.

Our Board has also authorized management to proceed with the negotiation of a lease for a new state-of-the-art cinema, located in Noosa, Queensland, Australia.

On April 15, 2025, we closed our underperforming cinema located in San Diego, California.

### Cinema Upgrades

The upgrades to our cinema circuits’ film exhibition technology and amenities over the years are as summarized in the following table as of June 30, 2025:

| Screen Format | Location Count | Screen ‎Count |
| --- | ---: | ---: |
| Digital (all cinemas in our cinema circuit) | 58 | 469 |
| IMAX | 1 | 1 |
| TITAN XC and TITAN LUXE | 26 | 32 |
| Dine-in Service |  |  |
| Gold Lounge (AU/NZ)(1) | 11 | 29 |
| Premium (AU/NZ)(2) | 17 | 45 |
| Spotlight (U.S.)(3) | 1 | 6 |
| Upgraded Food & Beverage menu (U.S.)(4) | 15 | n/a |
| Premium Seating (features recliner seating) | 33 | 198 |
| Liquor Licenses (5) | 49 | n/a |

(1) **Gold Lounge**: This is our "First Class Full Dine-in Service" in our Australian and New Zealand cinemas, which includes an upgraded F&B menu (with alcoholic beverages), luxury recliner seating features (intimate 25-50 seat cinemas) and waiter service.

(2) **Premium Service**: This is our "Business Class Dine-in Service" in our Australian and New Zealand cinemas, which typically includes upgraded F&B menu (some with alcoholic beverages) and may include luxury recliner seating features (less intimate 80-seat cinemas), but no waiter service.

(3) **Spotlight Service:** Spotlight, our first dine-in cinema concept in the U.S., is situated at Reading Cinemas in Murrieta, California. Prior to the COVID-19 Pandemic, six of our 17 auditoriums at this cinema featured waiter service before the movie began with a full F&B menu, luxury recliner seating, and laser focus on customer service. Our Spotlight service remains suspended.

(4) **Upgraded Food & Beverage Menu:** Features an elevated F&B menu including a menu of locally inspired and freshly prepared items that go beyond traditional concessions, which we have worked with former Food Network executives to create. The elevated menu also includes beer, wine and/or spirits at most of our locations.

(5) **Liquor Licenses:** Licenses are applicable at each cinema location, rather than each cinema auditorium. As of today, we have beer and wine licenses in 100% of our cinemas and liquor licenses in all but three of our cinemas operating in the U.S. In Australia, 86% of our cinemas are licensed and we have no liquor licenses pending. In New Zealand, 38% of our cinemas are licensed and we have two liquor licenses pending.

### Real Estate Segment Overview

Through our various subsidiaries, we engage in the real estate business through the development, ownership, rental or licensing to third parties of retail, commercial, and live theatre assets. Our real estate business creates long-term value for our stockholders through the continuous improvement and development of our investment and operating properties, including our ETCs. In addition to owning the fee interests in 7 of our cinemas (as presented in the table under *Cinema Exhibition Overview*), as of June 30, 2025, we:

own our 44 Union Square property in Manhattan comprised of retail and office space, which is currently in the lease-up phase. The cellar, ground floor, and second floor of the building are now fully leased to Petco, which is in occupancy of its premises on a full rent paying basis.

own and operate two ETCs known as Newmarket Village (in a suburb of Brisbane), and the Belmont Common (in a suburb of Perth);

own and operate our administrative office building in South Melbourne, Australia;

own and operate the fee interests in two developed commercial properties in Manhattan improved with live theatres comprised of a single stage in each location;

own a 75% managing member interest in a limited liability company which in turn owns the fee interest in and improvements constituting our Cinemas 1,2,3 located in Manhattan;

own an approximately 23.9-acre property in Williamsport, Pennsylvania, which is currently being held for sale; and

own approximately 201-acres principally in Pennsylvania from our legacy railroad business, including the Reading Viaduct in downtown Philadelphia;

For a breakdown of our real estate assets, made current by our discussion below, please refer to *Part I, Item 1 – Our Business* of our 2024 Form 10-K. We now present a discussion of recent material developments.

The combination of the COVID-19 pandemic, the lack of any material U.S. public pandemic financial assistance due to our public company status, the 2023 Hollywood Strikes, increased interest rates, inflation, increased labor costs, and decreases in the value of the Australian Dollar and New Zealand Dollar vis-a-vis the U.S. Dollar over the past five years, have significantly impacted our cinema operations and necessitated capital conservation to sustain our cinema operations and service our debt. This has required us to rethink our real estate business plan and to monetize a number of properties that had pre-COVID been slated for long-term development.

To date, we have monetized the following property assets:

(i) Our non-income producing land holdings in Coachella, California and Manukau, New Zealand;

(ii) Our Redyard ETC in Auburn, Australia;

(iii) Our Royal George live theatre complex in Chicago (slated for redevelopment, and now being redeveloped for residential purposes by the new owner);

(iv) The land underlying our cinema in Invercargill, New Zealand;

(v) Our non-competitive four-screen cinema in Maitland, Australia;

(vi) Our administrative office building in Culver City, California;

(vii) On January 31, 2025, our approximately 3.7 acre five-parcel assemblage in the entertainment center of Wellington, New Zealand, which includes the Courtenay Central building; and

(viii)Most recently, on May 21, 2025, our Cannon Park property in Townsville, Queensland, Australia.

These properties were identified for sale and sold for various reasons, which included without limitation

(i) our need for liquidity due to the circumstances referred to above,

(ii) the amount of capital required to materially increase their value in the immediate to mid-term,

(iii) their immaterial or non-income producing nature, or

(iv) in the case of our Culver City office building, the property was not required for our operations because it exceeded our office size requirements. Since the sale of this office building, we have been working remotely in Southern California.

As of the date of this Report, we continue to own our approximately 23.9-acre Newberry Yard in Williamsport, Pennsylvania (also currently non-income producing).

#### United States:

*44 Union Square Redevelopment (New York, N.Y.) –* On January 27, 2022, we entered a long-term lease with Petco for the lower level, ground floor, and second floor of the building. Petco continues to be open for business and in occupancy on a full rent paying basis. We continue our efforts to find a tenant for the remaining four floors of the building. As we previously reported, we signed a Letter of Intent and have exchanged lease drafts with one potential tenant which would offer a non-office use. As the office leasing market in Mid Town South continues to improve, we have experienced increased interest from potential office users and are currently negotiating a few other Letters of Intent with potential office tenants.

*Minetta Lane Theatre (New York, N.Y.) –* Audible has a license agreement with us through March 15, 2026, with an option to extend for an additional year. Audible presents plays featuring a limited cast of one or two characters and special live performance engagements on the Audible streaming service. During 2024, Audible presented a number of shows, including *Laura Benati: Nobody Cares, Dead Outlaw* and *Strategic Love Play*. During the second quarter of 2025, Hugh Jackman produced and starred in *Sexual Misconduct of the Middle Class* and Liev Schreiber starred in *Creditors* at our Minetta Lane Theatre.

*Orpheum Theatre (New York, N.Y.) –* STOMP closed (after 30 years at our theatre) on January 8, 2023. Under our termination agreement with the producers of STOMP, we have certain rights to provide the New York City venue for any future production of that show. Following STOMP’s historic run at the Orpheum, *The Empire Strips Back* ran for approximately three months, followed by a limited holiday engagement of *Death, Let Me Do My Show* starring comedian Rachel Bloom. The Off-Broadway solo version of William Shakespeare’s *Hamlet* starring Eddie Izzard also played in 2024. The year finished with a run of *The Big Gay Jamboree*, produced by the creator of *Barbie* and *Titanique. The Jonathon Larson Project* closed in March 2025 and a new show, *Ginger Twinsies*, began its run on July 10, 2025.

*Cinemas 1,2,3 (New York, N.Y.) –* Currently operated as the Cinemas 123, we have historically treated this property as an asset held for long term development. However, in light of a variety of factors, such as market conditions in Manhattan for real estate assets, cost of capital and demands on our liquidity, we have begun to explore alternatives for this property.

*The Reading Viaduct and Adjacent Properties (Philadelphia, Pennsylvania) –* This continues to be an area of focus in 2025 as we continue our efforts to develop and maximize the potential of our real estate holdings in Philadelphia. Since 2023, we have resumed work on this project, particularly concentrating on the Reading Viaduct—an 0.7-mile-long raised rail bed and bridge system spanning the Callowhill and Poplar neighborhoods, extending to Vine Street in the heart of the city's Central Business District. Comprising approximately 6.5 acres of land, along with various connecting bridges over public streets and sidewalks, the Reading Viaduct represents a significant contiguous land holding unobstructed by public thoroughfares.

While there has been interest from the City of Philadelphia and the City Center District in acquiring the Reading Viaduct for park purposes, no concrete steps have been taken to proceed with condemnation or transfer of the property other than a petition brought by the City before the Surface Transportation Board (“STB”) seek a determination that the Reading Viaduct is no longer railroad property subject to the jurisdiction of the STB. Under applicable law, railroad land subject to the jurisdiction of the STB is not subject to condemnation by state or local authorities.

Recent developments in the area, such as the announcement of a $158 million federal grant for the Chinatown Stitch project in mid-March 2024, further highlight the potential of the Reading Viaduct.This project aims to reconnect the Chinatown community and surrounding neighborhoods by capping the Vine Street Expressway I-676, which directly intersects with the Reading Viaduct at Vine Street. We believe that capping the expressway at our property would significantly enhance the attractiveness and viability of the Reading Viaduct for future development.

We have retained consultants and are working to down-date our various titles, many of which to the 19th century.

#### Australia:

*Newmarket Village ETC (Brisbane, Australia) –* We will continue to operate our Newmarket Village ETC, which includes Reading Cinemas as an anchor tenant. Our site includes a 23,218 square foot parcel adjacent to the center, improved with an office building. Over the next few years, we will be evaluating different development options for this space. As of the date of this report, the combined center and office building is 99% leased.

*The Belmont Common, (Belmont, Perth, Australia) –* The total gross leasable area of the Belmont Common is 60,117 square feet of net rentable land. Our multiplex cinema is the anchor tenant with six third-party tenants. The site is currently 100% leased.

On May 21, 2025, we sold our Cannon Park ETC in Townsville, Queensland, Australia, which consisted of our Cannon Park City Center and Cannon Park Discount Center properties, comprising approximately 9.4-acres, for a purchase price of AU$32.0 million (USD equivalent of $20.7 million). We have retained a long-term lease of the cinema component of that property.

#### New Zealand:

On January 31, 2025, we sold all of our properties in Wellington, New Zealand (including the Courtenay Central building) to Prime Property Group (“Prime”) for a purchase price of NZ$38.0 million (USD equivalent of $21.5 million). We understand that Prime intends to redevelop the properties, including a seismic upgrade of the existing Courtenay Central building. As a part of that sale transaction, we have entered into an Agreement to Lease for the cinema component of the to be upgraded Courtenay Central building.

For a complete list of our principal properties, see *Part I, Item 2 – Properties* under the heading “*Investment and Development Property”* in our 2024 Form 10-K”.

### Corporate Matters

Refer to *Part I – Financial Information, Item 1 – Notes to Consolidated Financial Statements-- Note 17 – Stock-Based Compensation and Stock Repurchases* for details regarding our stock repurchase program and Board, Executive and Employee stock-based remuneration programs.

*Please refer to our 2024 Form 10-K for more details on our cinema and real estate segments.*

### RESULTS OF OPERATIONS

The table below summarizes the results of operations for each of our principal business segments along with the non-segment information for the quarter and six months ended June 30, 2025, and June 30, 2024, respectively:

*(Dollars in thousands)*

| SEGMENT RESULTS Revenue | Quarter Ended June 30, ‎2025 | June 30, ‎2024 | % Change Fav/ ‎(Unfav) | Six Months Ended June 30, ‎2025 | June 30, ‎2024 | % Change Fav/ ‎(Unfav) |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Cinema exhibition | $56,782 | 42,941 | 32% | $93,186 | $84,213 | 11% |
| Real estate | 4,653 | 5,013 | (7)% | 9,498 | 9,946 | (5)% |
| Inter-segment elimination | (1,057) | (1,146) | 8% | (2,137) | (2,298) | 7% |
| Total revenue | 60,378 | 46,808 | 29% | 100,547 | 91,861 | 9% |
| **Operating expense** |  |  |  |  |  |  |
| Cinema exhibition | (47,940) | (43,903) | (9)% | (85,597) | (85,776) | -% |
| Real estate | (1,840) | (2,461) | 25% | (3,795) | (4,696) | 19% |
| Inter-segment elimination | 1,057 | 1,146 | (8)% | 2,137 | 2,298 | (7)% |
| Total operating expense | (48,723) | (45,218) | (8)% | (87,255) | (88,174) | 1% |
| **Depreciation and amortization** |  |  |  |  |  |  |
| Cinema exhibition | (2,172) | (2,554) | 15% | (4,312) | (5,141) | 16% |
| Real estate | (1,125) | (1,358) | 17% | (2,226) | (2,874) | 23% |
| Total depreciation and amortization | (3,297) | (3,912) | 16% | (6,538) | (8,015) | 18% |
| **General and administrative expense** |  |  |  |  |  |  |
| Cinema exhibition | (1,217) | (1,093) | (11)% | (2,298) | (2,071) | (11)% |
| Real estate | (209) | (248) | 16% | (403) | (539) | 25% |
| Total general and administrative expense | (1,426) | (1,341) | (6)% | (2,701) | (2,610) | (3)% |
| **Segment operating income** |  |  |  |  |  |  |
| Cinema exhibition | 5,453 | (4,609) | \>100% | 979 | (8,775) | \>100% |
| Real estate | 1,479 | 946 | 56% | 3,074 | 1,837 | 67% |
| **Total segment operating income (loss)** | $6,932 | $(3,663) | \>100% | $4,053 | $(6,938) | \>100% |
| **NON-SEGMENT RESULTS** |  |  |  |  |  |  |
| Depreciation and amortization expense | (84) | (100) | 16% | (219) | (201) | (9)% |
| General and administrative expense | (3,957) | (3,929) | (1)% | (7,835) | (8,083) | 3% |
| Interest expense, net | (4,354) | (5,377) | 19% | (9,096) | (10,662) | 15% |
| Equity earnings of unconsolidated joint ventures | 285 | 119 | \>100% | 308 | 94 | \>100% |
| Gain (loss) on sale of assets | 1,872 | 9 | \>100% | 8,398 | (1,116) | \>100% |
| Other income (expense) | (2,273) | (216) | (\>100)% | (2,607) | 123 | (\>100)% |
| Income before income taxes | (1,579) | (13,157) | 88% | (6,998) | (26,783) | 74% |
| Income tax benefit (expense) | (1,225) | 156 | (\>100)% | (753) | 379 | (\>100)% |
| **Net income (loss)** | (2,804) | (13,001) | 78% | (7,751) | (26,404) | 71% |
| Less: net income (loss) attributable to noncontrolling interests | (137) | (195) | 30% | (328) | (370) | 11% |
| **Net income (loss) attributable to Reading International, Inc.** | **$(2,667)** | **$(12,806)** | **79%** | **$(7,423)** | **$(26,034)** | **71%** |
| **Basic earnings (loss) per share** | **$(0.12)** | **$(0.57)** | **79%** | **$(0.33)** | **$(1.16)** | **72%** |

### Consolidated and Non-Segment Results:

### Second Quarter Net Results

### Revenue

Revenue for the quarter ended June 30, 2025, increased by 29% (or $13.6 million), to $60.4 million, compared to the same period in the prior year, primarily due to increased cinema revenues from higher attendance in all three countries as a result of stronger movies released from the Hollywood studios in the second quarter of 2025 compared to the same period in 2024. These increases in revenue were offset by a decline in real estate rent revenues and the weakening of the AU/NZ foreign exchange rates against the U.S. dollar.

Revenue for the six months ended June 30, 2025, increased by 9% (or $8.7 million), to $100.5 million, when compared to the same period in the prior year. This increase is attributable to strengthened cinema performance, which was partially offset by a decrease in real estate rent revenue.

### Segment Operating Income/(Loss)

Our total segment operating income for the quarter ended June 30, 2025, increased by $10.6 million, from a loss of $3.7 million to an income of $6.9 million, primarily due to (i) improved cinema performance, as a result of a stronger film slate, leading to increased cinema revenue, (ii) lower operating expenses in our real estate segment, and (iii) a reduction in depreciation and amortization.

Our total segment operating income for the six months ended June 30, 2025 of $4.1 million, increased by $11.0 million, from a loss of $6.9 million, primarily due to (i) stronger cinema performance, as attendance increased in the U.S. and ATP increased in Australia and New Zealand, (ii) decreased operating expenses in our real estate segment, and (iii) a reduction in depreciation and amortization. This was offset by weakened real estate revenue and increased general and administrative expenses for our cinema segment.

During the second quarter of 2025, both the Australia and New Zealand dollars devalued against the U.S. dollar. The average Australia dollar exchange rate against the U.S. dollar for the second quarter of 2025 decreased by 2.7% compared to the same period in 2024. The average New Zealand dollar exchange rate against the U.S. dollar for the second quarter of 2025 decreased by 1.9% compared to the same period in 2024. The devaluation of the Australia and New Zealand currencies negatively impacts segment operating income and positively impacts segment operating loss in U.S. dollar terms for the period.

### Net Income/(Loss)

Our net loss attributable to Reading International, Inc. for the quarter ended June 30, 2025, improved by 79%, from a loss of $12.8 million to a loss of $2.7 million, when compared to the same period in the prior year, primarily due to improved cinema and real estate performance along with a decrease in interest expense, depreciation and amortization expenses, and a gain on sale of assets, partially offset by increased general and administrative expense, and an increase in other operating expense.

For the six months ended June 30, 2025, net loss attributable to Reading International, Inc. improved by 71%, from a loss of $26.0 million to a loss of $7.4 million, when compared to the same period in the prior year primarily due to improved segment results, decreased interest expense, and a gain on sale of assets. This was offset by increased general and administrative expense and increased other expense.

### Income Tax Expense

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the United States. The OBBBA includes significant tax law changes, including the permanent extension of certain provisions from the Tax Cuts and Jobs Act, modifications to the international tax framework, and the reinstatement of favorable business tax provisions. These include 100% bonus depreciation, immediate expensing of Section 174 domestic research and experimental expenditures, and revised limitations under Section 163(j) on the deductibility of business interest expense. The legislation has multiple effective dates, with certain provisions effective beginning in 2025, and others implemented through 2027. The Company does not anticipate the impact of the OBBBA to have a material effect on its consolidated financial statements for the year ending December 31, 2025.

Income tax expense for the three months ended June 30, 2025, increased by $1.4 million compared to the equivalent prior-year period. The change between 2025 and 2024 is primarily related to a decrease in consolidated losses and an increase in reserve for valuation allowance in 2025.

Income tax expense for the six months ended June 30, 2025, increased by $1.1 million compared to the equivalent prior-year period. The change between 2025 and 2024 is primarily related to a decrease in consolidated losses and an increase in reserve for valuation allowance in 2025.

### Business Segment Results

### Cinema Exhibition

The following table details our cinema exhibition segment operating results for the quarter and six months ended June 30, 2025, and June 30, 2024, respectively:

*(Dollars in thousands)*

| REVENUE | Quarter Ended June 30, ‎2025 | % of Revenue | June 30, ‎2024 | % of Revenue | Six Months Ended June 30, ‎2025 | % of Revenue | June 30, ‎2024 | % of Revenue | Fav/(Unfav) Quarter ‎Ended | Six Months Ended |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| **United States** Admissions revenue | $16,099 | 28% | $11,681 | 27% | $26,344 | 28% | $23,922 | 28% | 38% | 10% |
| Food & beverage revenue | 11,274 | 20% | 7,452 | 17% | 17,382 | 19% | 14,413 | 17% | 51% | 21% |
| Advertising and other revenue | 2,885 | 5% | 2,347 | 5% | 4,827 | 5% | 4,450 | 5% | 23% | 8% |
|  | **$30,258** | **53%** | **$21,480** | **50%** | **$48,553** | **52%** | **$42,785** | **51%** | **41%** | **13%** |
|  | **—** |  | **—** |  |  |  |  |  |  |  |
| **Australia** Admissions revenue | $14,275 | 25% | $10,851 | 25% | $23,905 | 26% | $21,113 | 25% | 32% | 13% |
| Food & beverage revenue | 7,213 | 13% | 6,348 | 15% | 12,069 | 13% | 12,114 | 14% | 14% | -% |
| Advertising and other revenue | 1,421 | 3% | 1,344 | 3% | 2,617 | 3% | 2,640 | 3% | 6% | (1)% |
|  | **$22,909** | **40%** | **$18,543** | **43%** | **$38,591** | **41%** | **$35,867** | **43%** | **24%** | **8%** |
|  | **—** |  | **—** |  |  |  |  |  |  |  |
| **New Zealand** Admissions revenue | $2,338 | 4% | $1,744 | 4% | $3,884 | 4% | $3,344 | 4% | 34% | 16% |
| Food & beverage revenue | 1,135 | 2% | 1,013 | 2% | 1,901 | 2% | 1,923 | 2% | 12% | (1)% |
| Advertising and other revenue | 142 | 0% | 161 | 0% | 257 | 0% | 294 | 0% | (12)% | (13)% |
|  | **$3,615** | **6%** | **$2,918** | **7%** | **$6,042** | **6%** | **$5,561** | **7%** | **24%** | **9%** |
| **Total revenue** | **$56,782** | **100%** | **$42,941** | **100%** | **$93,186** | **100%** | **$84,213** | **100%** | **32%** | **11%** |
| **OPERATING EXPENSE** |  |  |  |  |  |  |  |  |  |  |
| **United States** Film rent and advertising cost | $(9,108) | 16% | $(6,272) | 15% | $(14,166) | 15% | $(12,411) | 15% | (45)% | (14)% |
| Food & beverage cost | (2,931) | 5% | (2,012) | 5% | (4,514) | 5% | (3,919) | 5% | (46)% | (15)% |
| Occupancy expense | (4,420) | 8% | (6,545) | 15% | (8,387) | 9% | (12,332) | 15% | 32% | 32% |
| Labor cost | (4,212) | 7% | (4,002) | 9% | (8,293) | 9% | (8,150) | 10% | (5)% | (2)% |
| Utilities | (1,332) | 2% | (1,337) | 3% | (2,551) | 3% | (2,645) | 3% | -% | 4% |
| Cleaning and maintenance | (1,754) | 3% | (1,656) | 4% | (3,295) | 4% | (3,083) | 4% | (6)% | (7)% |
| Insurance | — |  | — | 0% | — | 0% | — | 0% | -% | -% |
| Other operating expenses | (2,321) | 4% | (2,094) | 5% | (4,468) | 5% | (4,219) | 5% | (11)% | (6)% |
|  | **$(26,078)** | **46%** | **$(23,918)** | **56%** | **$(45,674)** | **49%** | **$(46,759)** | **56%** | **(9)%** | **2%** |
| **Australia** Film rent and advertising cost | $(6,586) | 12% | $(4,947) | 12% | $(10,542) | 11% | $(9,395) | 11% | (33)% | (12)% |
| Food & beverage cost | (1,531) | 3% | (1,435) | 3% | (2,606) | 3% | (2,709) | 3% | (7)% | 4% |
| Occupancy expense | (4,511) | 8% | (4,538) | 11% | (8,805) | 9% | (8,940) | 11% | 1 | 2% |
| Labor cost | (3,425) | 6% | (3,442) | 8% | (6,732) | 7% | (6,715) | 8% | - | -% |
| Utilities | (651) | 1% | (640) | 1% | (1,493) | 2% | (1,452) | 2% | (2) | (3)% |
| Cleaning and maintenance | (1,154) | 2% | (1,173) | 3% | (2,304) | 2% | (2,377) | 3% | 2 | 3% |
| Other operating expenses | (799) | 1% | (908) | 2% | (1,574) | 2% | (1,780) | 2% | 12 | 12% |
|  | **$(18,657)** | **33%** | **$(17,083)** | **40%** | **$(34,056)** | **37%** | **$(33,368)** | **40%** | **(9)%** | **(2)%** |
| **New Zealand** Film rent and advertising cost | $(1,141) | 2% | $(752) | 2% | $(1,789) | 2% | $(1,434) | 2% | (52)% | (25)% |
| Food & beverage cost | (269) | 0% | (225) | 1% | (416) | 0% | (430) | 1% | (20) | 3% |
| Occupancy expense | (737) | 1% | (783) | 2% | (1,471) | 2% | (1,543) | 2% | 6 | 5% |
| Labor cost | (579) | 1% | (593) | 1% | (1,113) | 1% | (1,155) | 1% | 2 | 4% |
| Utilities | (136) | 0% | (101) | 0% | (234) | 0% | (198) | 0% | (35) | (18)% |
| Cleaning and maintenance | (196) | 0% | (189) | 0% | (390) | 0% | (393) | 0% | (4)% | 1% |
| Other operating expenses | (147) | 0% | (259) | 1% | (454) | 0% | (495) | 1% | 43% | 8% |
|  | **$(3,205)** | **6%** | **$(2,902)** | **7%** | **$(5,867)** | **6%** | **$(5,648)** | **7%** | **(10)%** | **(4)%** |
| **Total operating expense** | **$(47,940)** | **84%** | **$(43,903)** | **102%** | **$(85,597)** | **92%** | **$(85,775)** | **102%** | **(9)%** | **-%** |
| **DEPRECIATION, AMORTIZATION, IMPAIRMENT AND GENERAL AND ADMINISTRATIVE EXPENSE** |  |  |  |  |  |  |  |  |  |  |
| **United States** Depreciation and amortization | $(1,157) | 2% | $(1,250) | 3% | $(2,278) | 2% | $(2,521) | 3% | 7% | 10% |
| General and administrative expense | (731) | 1% | (738) | 2% | (1,456) | 2% | (1,373) | 2% | 1% | (6)% |
|  | **$(1,888)** | **3%** | **$(1,988)** | **5%** | **$(3,734)** | **4%** | **$(3,894)** | **5%** | **5%** | **4%** |
| **Australia** Depreciation and amortization | $(905) | 2% | $(1,192) | 3% | $(1,819) | 2% | $(2,382) | 3% | 24% | 24% |
| General and administrative expense | (427) | 1% | (355) | 1% | (772) | 1% | (699) | 1% | (20)% | (10)% |
|  | **$(1,332)** | **2%** | **$(1,547)** | **4%** | **$(2,591)** | **3%** | **$(3,081)** | **4%** | **14%** | **16%** |
| **New Zealand** Depreciation and amortization | $(111) | 0% | $(112) | 0% | $(214) | 0% | $(238) | 0% | 1% | 10% |
| General and administrative expense | (58) | 0% | — | 0% | (71) | 0% | — | 0% | -% | -% |
|  | **$(169)** | **0%** | **$(112)** | **0%** | **$(285)** | **0%** | **$(238)** | **0%** | **(51)%** | **(20)%** |
| **Total depreciation, amortization, general and administrative expense** | **$(3,389)** | **6%** | **$(3,647)** | **8%** | **$(6,610)** | **7%** | **$(7,213)** | **9%** | **7%** | **8%** |
| **OPERATING INCOME (LOSS) – CINEMA** |  |  |  |  |  |  |  |  |  |  |

39

|  |  |  |  |  |  |  |  |  |  |  |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | --- | ---: |
| **United States** | $2,292 | 4% | $(4,426) | (10)% | $(855) | (1)% | $(7,868) | (9)% | \>100% | 89% |
| **Australia** | 2,920 | 5% | (87) | (0)% | 1,944 | 2% | (582) | (1)% | \>100% | \>100% |
| **New Zealand** | 241 | 0% | (96) | (0)% | (110) | (0)% | (325) | (0)% | \>100% | 66% |
| **Total Cinema operating income (loss)** | **$5,453** | **10%** | **$(4,609)** | **(11)%** | **$979** | **1%** | **$(8,775)** | **(10)%** | **\>100%** | **\>100%** |

### Second Quarter Results

### Revenue

For the quarter ended June 30, 2025, cinema revenue increased by $13.8 million, to $56.8 million compared to the same period in the prior year. This increase was primarily due to (i) a global increase in cinema revenues from increased cinema attendance driven by a stronger movie slate, (ii) increases in ATP and F&B SPP in all three countries, and (iii) increases in screen advertising and other revenues in the U.S. and Australia, partially offset by a weakening of AU/NZ foreign exchange rates.

For the six months ended June 30, 2025, cinema revenue increased by $9.0 million, to $93.2 million compared to the same period in the prior year. This increase was primarily driven by (i) a global increase in box office due to a stronger movie slate, and (ii) increased F&B SPP and advertising and other revenues in US, and offset by a weakening of AU/NZ foreign exchange rates.

### Cinema Segment Operating Income/(Loss)

Cinema segment operating income for the quarter ended June 30, 2025, increased by $10.1 million, from a loss of $4.6 million to an income of $5.5 million when compared to the same period in the prior year. The increase in operating income is due to an increase in cinema revenue in all three countries due to an increased attendance as a result of a stronger movie slate, and an overall decrease in depreciation in all three countries, partially offset by an increase in operating expenses globally and increased general and administrative expenses in Australia and New Zealand.

Cinema segment operating income for the six months ended June 30, 2025, increased by $9.8 million, from a loss of $8.8 million to an income of $1.0 million when compared to the same period in the prior year primarily due to (i) increased cinema revenues globally, (ii) efficiently managing cinema expenses to remain relatively flat globally, and (iii) a reduction in overall depreciation, amortization and G&A expenses.

### Operating Expense

Operating expenses for the quarter ended June 30, 2025, increased by $4.0 million, to $47.9 million, compared to the same quarter in the prior year. This increase was primarily due to increased global attendance resulting in increased film rent, food and beverage cost, and other variable costs in all three countries. Operating expenses for the six months ended June 30, 2025, remained relatively flat at $85.6 million, compared to $85.8 million for the same time period in the prior year.

### Depreciation, amortization, impairment, general and administrative expense

Depreciation, amortization, impairment, and general and administrative expenses for the quarter ended June 30, 2025, showed a slight decrease of $0.3 million, to $3.4 million, compared to the same quarter in the prior year.

Depreciation, amortization, impairment, and general and administrative expenses for the six months ended June 30, 2025, decreased $0.6 million, to $6.6 million, compared to the same quarter in the prior year.

### Real Estate

The following table details our real estate segment operating results for the quarter and six months ended June 30, 2025 and June 30, 2024, respectively:

*(Dollars in thousands)*

| REVENUE |  | Quarter Ended June 30, ‎2025 | % of ‎Revenue | June 30, ‎2024 | % of ‎Revenue | Six Months Ended June 30, ‎2025 | % of ‎Revenue | June 30, ‎2024 | % of ‎Revenue | Fav/(Unfav) Quarter Ended | Six Months Ended |
| --- | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| **United States** | Live theatre rental and ancillary income | $630 | 14% | $416 | 8% | $1,173 | 12% | $828 | 8% | 51% | 42% |
|  | Property rental income | 1,070 | 23% | 1,067 | 21% | 2,114 | 22% | 2,139 | 22% | -% | (1)% |
|  |  | **1,700** | **37%** | **1,483** | **30%** | **3,287** | **35%** | **2,967** | **30%** | **15%** | **11%** |
| **Australia** | Property rental income | **2,741** | **59%** | **3,177** | **63%** | **5,756** | **61%** | **6,261** | **63%** | (14)% | (8)% |
| **New Zealand** | Property rental income | **212** | **5%** | **353** | **7%** | **455** | **5%** | **718** | **7%** | (40)% | (37)% |
| **Total revenue** |  | **$4,653** | **100%** | **$5,013** | **100%** | **$9,498** | **100%** | **$9,946** | **100%** | **(7)%** | **(5)%** |
| **OPERATING EXPENSE** |  |  |  |  |  |  |  |  |  |  |  |
| **United States** | Live theater cost | $(255) | 5% | $(279) | 6% | $(492) | 5% | $(512) | 5% | 9% | 4% |

40

|  |  |  |  |  |  |  |  |  |  |  |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Occupancy expense | (174) | 4% | (160) | 3% | (352) | 4% | (354) | 4% | (9)% | 1% |
| Labor cost | — | 0% | — | 0% | — | 0% | — | 0% | -% | -% |
| Utilities | 16 | (0)% | (49) | 1% | (28) | 0% | (79) | 1% | \>100% | 65% |
| Cleaning and maintenance | (75) | 2% | (31) | 1% | (106) | 1% | (78) | 1% | (\>100)% | (36)% |
| Other operating expenses | (264) | 6% | (279) | 6% | (430) | 5% | (621) | 6% | 5% | 31% |
|  | **(752)** |  | **(798)** |  | **$(1,408)** |  | **$(1,644)** |  | 6% | 14% |
| **Australia** Occupancy expense | (479) | 10% | (478) | 10% | $(967) | 10% | $(968) | 10% | -% | -% |
| Labor cost | (76) | 2% | (55) | 1% | (119) | 1% | (113) | 1% | (38)% | (5)% |
| Utilities | (20) | 0% | (19) | 0% | (34) | 0% | (33) | 0% | (5)% | (3)% |
| Cleaning and maintenance | (215) | 5% | (278) | 6% | (435) | 5% | (494) | 5% | 23% | 12% |
| Other operating expenses | (198) | 4% | (299) | **6%** | (456) | **5%** | (531) | **5%** | 34% | 14% |
|  | **(988)** | 21% | **(1,129)** | 23% | **$(2,011)** | 21% | **$(2,139)** | 22% | 12% | 6% |
| **New Zealand** Occupancy expense | (31) | 1% | (110) | 2% | $(89) | 1% | $(221) | 2% | 72% | 60% |
| Labor cost | — | 0% | (6) | 0% | (2) | 0% | (11) | 0% | 100% | 82% |
| Utilities | — | 0% | (16) | 0% | (5) | 0% | (36) | 0% | 100% | 86% |
| Cleaning and maintenance | — | 0% | (7) | 0% | (4) | 0% | (17) | 0% | 100% | 76% |
| Other operating expenses | (69) | 1% | (395) | 8% | (276) | 3% | (628) | 6% | 83% | 56% |
|  | **(100)** | **2%** | **(534)** | **11%** | **$(376)** | **4%** | **$(913)** | **9%** | **81%** | **59%** |
| **Total operating expense** | **$(1,840)** | **40%** | **$(2,461)** | **49%** | **$(3,795)** | **40%** | **$(4,696)** | **47%** | **25%** | **19%** |
|  | **—** |  | **—** |  | **—** |  | **—** |  |  |  |
| **DEPRECIATION, AMORTIZATION, GENERAL AND ADMINISTRATIVE EXPENSE** | — |  | — |  | — |  | — |  |  |  |
| **United States** Depreciation and amortization | $(674) | 14% | $(677) | 14% | $(1,333) | 14% | $(1,416) | 14% | -% | 6% |
| General and administrative expense | (185) | 4% | (212) | 4% | (315) | 3% | (480) | 5% | 13% | 34% |
|  | **(859)** | **18%** | **(889)** | **18%** | **(1,648)** | **17%** | **(1,896)** | **19%** | **3%** | 13% |
| **Australia** Depreciation and amortization | $(391) | 8% | $(551) | 11% | $(776) | 8% | $(1,142) | 11% | 29% | 32% |
| General and administrative expense | (24) | 1% | (36) | 1% | (87) | 1% | (59) | 1% | 33% | (47)% |
|  | **(415)** | **9%** | **(587)** | **12%** | **(863)** | **9%** | **(1,201)** | **12%** | **29%** | **28%** |
| **New Zealand** Depreciation and amortization | (60) | 1% | (130) | 3% | (117) | 1% | (316) | 3% | 54% | 63% |
| General and administrative expense | — | 0% | — | 0% | (1) | 0% | — | 0% | -% | -% |
|  | **(60)** | **1%** | **(130)** | **3%** | **(118)** | **1%** | **(316)** | **3%** | **54%** | **63%** |
| **Total depreciation, amortization, general and administrative expense** | **$(1,334)** | **29%** | **$(1,606)** | **32%** | **$(2,629)** | **28%** | **$(3,413)** | **34%** | **17%** | **23%** |
| **OPERATING INCOME (LOSS) - REAL ESTATE** |  |  |  |  |  |  |  |  |  |  |
| **United States** | $89 | 2% | $(204) | (4)% | $231 | 2% | $(573) | (6)% | \>100% | \>100% |
| **Australia** | 1,338 | 29% | 1,461 | 29% | 2,882 | 30% | 2,921 | 29% | (8)% | (1)% |
| **New Zealand** | 52 | 1% | (311) | (6)% | (39) | (0)% | (511) | (5)% | \>100% | 92% |
| **Total real estate operating income (loss)** | **$1,479** | **32%** | **$946** | **19%** | **$3,074** | **32%** | **$1,837** | **18%** | **56%** | **67%** |

### Second Quarter Results

### Revenue

Real estate rent revenue for the quarter ended June 30, 2025, decreased by $0.4 million to $4.7 million, compared to the same period in the prior year.

For the six months ended June 30, 2025, real estate rent revenue decreased by $0.4 million, to $9.5 million, compared to the same period in the prior year. The decrease was primarily due to lower Rental Income as a result of the sales of our Wellington property assets and our Cannon Park property assets, partially offset by higher Live theatre rental and ancillary income in the U.S.

### Real Estate Segment Income/(Loss)

Real estate segment operating income for the quarter ended June 30, 2025 increased by $0.5 million to $1.5 million, compared to $0.9 million in the same period in the prior year. This change was primarily due to improved live theater performance, decreased operating expenses globally, and decreased depreciation, amortization and general administration expense overall.

For the six months ended June 30, 2025, real estate segment operating income increased by $1.2 million, to $3.1 million, compared to $1.8 million in the same period in the prior year. This increase in operating income was due to an increase in U.S. live theatre revenue, decreased operating expense globally and reduced depreciation, amortization, and G&A expense in all three countries.

These results were impacted by the sale of our (i) Wellington property assets in January 2025, (ii) our Cannon Park property in May 2025 and (iii) Culver City office building in February 2024.

### LIQUIDITY AND CAPITAL RESOURCES

### Our Financing Strategy

Prior to the COVID-19 pandemic, we used cash generated from operations and other excess cash, to the extent not needed, to fund capital investments contemplated by our business plan, in order to pay down our loans and credit facilities. This provided us with availability under our loan facilities for future use and thereby, reduced interest charges. On a periodic basis, we reviewed the maturities of our borrowing arrangements and negotiated renewals and extensions where necessary.

However, disruptions to our cinema cash flow caused by the COVID-19 pandemic, the 2023 Hollywood Strikes and periods of weak theatrical releases, augmented by changing consumer habits from each foregoing, and continuing macroeconomic headwinds, have made it necessary for us to defer capital expenditures and to rely on borrowings and the proceeds of asset monetizations to cover our costs of operations, pay interest, and pay down debt.

Our NAB financing requires that our Company comply with certain covenants. Furthermore, our Company’s use of loan funds from NAB is limited due to restrictions on the expatriation of funds from Australia to the United States. We believe that our lenders understand that the continuing effects of the factors discussed in the preceding paragraph, and various economic factors, are not of our own making, that we are taking aggressive steps to manage these industry headwinds, and that, generally speaking, our relationships with our lenders are positive.

While our Company believes that global cinema business is recovering, we still face macroeconomic pressures such as high interest rates, inflation, supply chain issues and increased film rent, labor, and operating costs, many of which are beyond our control. We have taken a variety of steps across our various operating jurisdictions to reduce our spending, including, without limitation, deferring non-essential capital expenditures, deferring certain operational expenses, renegotiating occupancy arrangements, closing certain unprofitable cinemas, deferring compensation expenses, and eliminating certain T&E expenses. We are closely monitoring our debt maturity dates, and where appropriate, we may seek to arrange necessary term extensions. In May 2025, we extended our Emerald Creek Capital debt’s maturity date to November 6, 2026 with an option to extend an additional 6 months to May 6, 2027. In July 2025, we executed an amendment to our Bank of America loan to extend the maturity date to May 18, 2026, and modified the paydown schedule. In July 2025, we extended the maturity date of our Santander loan to June 1, 2026. As of June 30, 2025, we have debt of $38.2 million coming due in the next 12 months. While the Central Banks of the three countries in which we do business have reduced interest rates from recent highs, rates remain elevated when compared to pre-Covid periods.

As discussed elsewhere in this Report, we believe that cinema cash flow for 2025 will be stronger than recent periods, as shown by the strength of the second quarter of 2025, even though cinema results for the first quarter of 2025 were behind those of the same period for last year, However, if our Company is unable to generate sufficient cash flow in the upcoming months, we will be required to adopt one or more alternatives, such as reducing, delaying or eliminating planned capital expenditures, monetizing additional assets, restructuring our debt and/or our lease obligations or finding additional sources of liquidity. In May 2025, we sold our Cannon Park property assets in Australia for AU$32.0 million (USD equivalent of $20.7 million) and repaid our AU$20.0 million (USD equivalent of $12.9 million) Bridge Facility. In January 2025, we sold our Wellington property assets in New Zealand for NZ$38.0 million (USD equivalent of $21.5 million) and repaid our NZ$18.8 million (USD equivalent of $10.7 million) loan to Westpac and paid down $6.1 million to Bank of America. In early 2024, understanding our reduced need for administrative space during the shift to remote-working, we decreased our overall general and administrative expense by selling our administrative building in Culver City, California, freeing up cash of approximately $1.3 million (after paying off our mortgage, brokerage commissions and transactional fees). We are currently reviewing our need for replacement office space and believe that the disposition of this asset will save us approximately $2.0 million in operating and holding costs for 2025. Also, our Newberry Yard property in Williamsport, Pennsylvania continues to be listed as an asset held for sale. This property was historically used as a rail yard, and, accordingly, improved with tracks and switches and has direct access to the area’s rail system. We carry the property on our books at a book value (the lower of cost or market, as opposed to fair market value) of $0.5 million. This asset was selected for sale since it is currently non-income producing and significant capital would be required to materially increase the value of this asset. Certain issues as to the location of various railroad rights of way have now been resolved on what we believe to be favorable terms and terms which enhanced the value of the property.

If we cannot obtain sufficient net proceeds from the disposition of these assets (or determine to defer disposition due to unfavorable market conditions), in addition to other strategies, we may look to monetize other real estate assets.

For more information about our borrowings, please refer to *Part I – Financial Information, Item 1 – Notes to Consolidated Financial Statements-- Note 13 – Borrowings*. For more information about our efforts to manage our liquidity issues, see *Part I- Financial Information, Item 1 – Notes to Consolidated Financial Statements – Note 3 – Liquidity and Impairment Assessment.*

The changes in cash and cash equivalents for the six months ended June 30, 2025, and June 30, 2024, respectively, are discussed as follows:

*(Dollars in thousands)*

|  | Six Months Ended June 30, 2025 | 2024 | % Change |
| --- | ---: | ---: | --- |
| Net cash provided by (used in) operating activities | $(6,151) | $(13,157) | 53% |
| Net cash provided by (used in) investing activities | 37,806 | 7,398 | \>100% |
| Net cash provided by (used in) financing activities | (34,883) | 1,125 | (\>100)% |
| Effect of exchange rate on cash and restricted cash | 101 | (80) | \>100% |
| Increase (decrease) in cash and cash equivalents and restricted cash | $(3,127) | $(4,714) | 34% |

### Operating activities

Cash used in operating activities for the six months ended June 30, 2025, decreased by $7.0 million, to $6.2 million compared to cash used in the same period of the prior year of $13.2 million. This was primarily driven by a $13.5 million decrease in net operating loss, partially offset by $6.5 million decrease in net payables compared to the same period in 2024.

### Investing activities

Cash provided in investing activities during the six months ended June 30, 2025 was $37.8 million compared to cash provided in the same prior year period of $7.4 million. This was due to higher proceeds from sale of our Cannon Park property assets in May 2025 and the Wellington property assets in January 2025, compared to the proceeds from the sale of our Culver City office in February 2024.

### Financing activities

Cash used in financing activities for the six months ended June 30, 2025, increased by $36.0 million, to $34.9 million compared to cash provided by financing activities of $1.1 million. This was primarily due to the paydowns of our Westpac debt and NAB Bridge Facility in 2025 as discussed previously, compared to the NAB Bridge Facility draw in the same period of 2024.

The table below presents the changes in our total available resources (cash and borrowings), debt-to-equity ratio, working capital, and other relevant information addressing our liquidity for the six months ended June 30, 2025, and preceding four years:

*($ in thousands)*

| Total Resources (cash and borrowings) | As of and ‎for the ‎6-Months ‎Ended June 30, 2025 | Year Ended December 31 2024 | 2023 | 2022 | 2021 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Cash and cash equivalents (unrestricted) | $9,073 | $12,347 | $12,906 | $29,947 | $83,251 |
| Unused borrowing facility | 2,359 | 7,859 | 7,859 | 12,000 | 12,000 |
| Restricted for capital projects | 2,359 | 7,859 | 7,859 | 12,000 | 12,000 |
| Unrestricted capacity | — | — | — | — | — |
| Total resources at period end | 11,432 | 20,206 | 20,765 | 41,947 | 95,251 |
| Total unrestricted resources at period end | 9,073 | 12,347 | 12,906 | 29,947 | 83,251 |
| **Debt-to-Equity Ratio** |  |  |  |  |  |
| Total contractual facility | $175,790 | $210,572 | $218,159 | $227,633 | $248,948 |
| Total debt (gross of deferred financing costs) | 173,431 | 202,713 | 210,300 | 215,633 | 236,948 |
| Current | 38,229 | 69,193 | 35,070 | 38,026 | 12,060 |
| Non-current | 135,202 | 133,520 | 175,230 | 177,607 | 224,888 |
| Finance lease liabilities | 22 | 43 | 209 | — | — |
| Total book equity | (8,428) | (4,790) | 32,996 | 63,279 | 105,060 |
| Debt-to-equity ratio | (20.58) | (42.32) | 6.37 | 3.41 | 2.26 |
| **Changes in Working Capital** |  |  |  |  |  |
| Working capital (deficit)(1) | $(109,180) | $(104,584) | $(88,373) | $(74,152) | $(6,673) |
| Current ratio | 0.16 | 0.35 | 0.30 | 0.39 | 0.94 |
| **Capital Expenditures (including acquisitions)** | $635 | $2,028 | $4,711 | $9,780 | $14,428 |

(1) Our working capital is reported as a deficit, as we receive revenue from our cinema business ahead of the time that we have to pay our associated liabilities. We use the money we receive to pay down our borrowings in the first instance.

As of June 30, 2025, we had $9.1 million in unrestricted cash and cash equivalents compared to (i) 12.3 million on December 31, 2024 and (ii) $5.9 million on March 31, 2025. On June 30, 2025, our total outstanding borrowings were $173.4 million compared to $202.7 million on December 31, 2024.

We manage our cash, investments, and capital structure to meet the short-term and long-term obligations of our business, while maintaining financial flexibility and liquidity. We forecast, analyze, and monitor our cash flows to enable investment and financing within the overall constraints of our financial strategy. In the past, we used cash generated from operations and other excess cash to the extent not needed for any capital expenditures, to pay down our loans and credit facilities providing us some flexibility on our available loan facilities for future use and thereby, reducing interest charges.

### CONTRACTUAL OBLIGATIONS, COMMITMENTS AND CONTINGENCIES

The following table provides information with respect to the maturities and scheduled principal repayments of our recorded contractual obligations and certain of our commitments and contingencies, either recorded or off-balance sheet, as of June 30, 2025:

*(Dollars in thousands)*

|  | 2025 | 2026 | 2027 | 2028 | 2029 | Thereafter | Total |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Debt(1) | $30,888 | $114,630 | $— | $— | $— | $— | $145,518 |
| Operating leases, including imputed interest | 14,510 | 27,028 | 25,237 | 24,160 | 22,740 | 122,160 | 235,835 |
| Finance leases, including imputed interest | 22 | — | — | — | — | — | 22 |
| Subordinated debt(1) | — | — | 27,913 | — | — | — | 27,913 |
| Pension liability | 331 | 576 | 607 | 639 | 445 | — | 2,598 |
| Interest on pension liability | 11 | 108 | 77 | 45 | 11 | — | 252 |
| Estimated interest on debt (2) | 7,035 | 9,715 | 1,169 | — | — | — | 17,919 |
| Village East purchase option(3) | 5,900 | — | — | — | — | — | 5,900 |
| Total | $58,697 | $152,057 | $55,003 | $24,844 | $23,196 | $122,160 | $435,957 |

(1) Information is presented gross of deferred financing costs.

(2) Estimated interest on debt is based on the anticipated loan balances for future periods and current applicable interest rates.

(3) Represents the lease liability associated with the exercise of the option associated with the ground lease purchase of the Village East Cinema, which on March 27, 2025 was extended to April 30, 2025 and our sublease of the facility was extended until September 1, 2027.The Company is working with Sutton Hill Capital, LLC on further extending the date of the closing of such option.

### Litigation

We are currently involved in certain legal proceedings and, as required, have accrued estimates of probable and estimable losses for the resolution of these claims.

Please refer to *Part I, Item 3 – Legal Proceedings* in our 2024 Form 10-K for more information. There have been no material changes to our litigation since our 2024 Form 10-K, except as set forth in *Notes to Consolidated Financial Statements-- Note 16 – Commitments and Contingencies* included herein in *Part I – Financial Information, Item 1 – Financial Statements* on this Quarterly Report on Form 10-Q. This note sets out our litigation accounting policies.

### Off-Balance Sheet Arrangements

There are no off-balance sheet arrangements or obligations (including contingent obligations) that have, or are reasonably likely to have, a current or future material effect on our financial condition, changes in the financial condition, revenue or expense, results of operations, liquidity, capital expenditures or capital resources.

### CRITICAL ACCOUNTING POLICIES

We believe that the application of the following accounting policies requires significant judgments and estimates in the preparation of our Consolidated Financial Statements and hence, are critical to our business operations and the understanding of our financial results:

*(i) Impairment of Long-lived Assets (other than Goodwill and Intangible Assets with indefinite lives) –* we evaluate our long-lived assets and finite-lived intangible assets using historical and projected data of cash flows as our primary indicator of potential impairment and we take into consideration the seasonality of our business. If the sum of the estimated, undiscounted future cash flows is less than the carrying amount of the asset, then an impairment is recognized for the amount by which the carrying value of the asset exceeds its estimated fair value based on an appraisal or a discounted cash flow calculation. For certain non-income producing properties or for those assets with no consistent historical or projected cash flows, we obtain appraisals or other evidence to evaluate whether there are impairment indicators for these assets.

No impairment losses were recorded for long-lived and finite-lived intangible assets for the quarter ended June 30, 2025.

*(ii) Impairment of Goodwill and Intangible Assets with indefinite lives –* goodwill and intangible assets with indefinite useful lives are not amortized, but instead, tested for impairment at least annually on a reporting unit basis. The impairment evaluation is based on the present value of estimated future cash flows of each reporting unit plus the expected terminal value. There are significant assumptions and estimates used in determining the future cash flows and terminal value. The most significant assumptions include our cost of debt and cost of equity assumptions that comprise the weighted average cost of capital for each reporting unit. Accordingly, actual results could vary materially from such estimates.

No impairment losses were recorded for goodwill and indefinite-lived intangible assets for the quarter ended June 30, 2025.

### CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

Our statements in this quarterly report, including the documents incorporated herein by reference, contain a variety of forward-looking statements as defined by the Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: "may," "will," "expect," "believe," "intend," "future," and "anticipate" and similar references to future periods. Examples of forward-looking statements include, among others, our beliefs regarding the impact of the 2023 Hollywood Strikes on the cinema business; our expected operating results, including our ultimate return to pre-pandemic type results; our expectations regarding the recovery and future of the cinema exhibition industry, including the strength of movies anticipated for release in the future; our expectations regarding patrons returning to our theatres and continuing to use discretionary funds on entertainment outside of the home; our beliefs regarding the impact of our cinema-anchored real estate developments; our beliefs regarding the success of our diversified business strategy; our belief regarding the attractiveness of 44 Union Square to potential tenants and ability to lease space on acceptable terms; our expectations regarding the effects of our enhanced F&B offerings on our operating results; our expectations regarding our ability to monetize our assets on terms acceptable to us; our expectations regarding credit facility covenant compliance and our ability to continue to obtain necessary covenant waivers and loan extensions on terms acceptable to us; and our expectations of our liquidity and capital requirements and the allocation of funds.

Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following:

with respect to our cinema and live theatre operations:

reduced consumer demand due to inflationary pressures and other macroeconomic pressures;

the adverse continuing effects of external events of the past pandemic and the 2023 Hollywood strikes on our Company’s results from operations, liquidity, cash flows, financial condition, and access to credit markets;

a change in consumer behavior in favor of alternative forms or mediums of entertainment, and limited availability of wide motion picture release content;

reduction in operating margins (or negative operating margins) due to (i) decreased attendance, (ii) limited availability of wide release content, and (iii) increased operating expenses;

competition from cinema operators who have successfully used debtor laws to reduce their debt and/or rent exposure;

the uncertainty as to the scope and extent of our government’s potential responses to future outbreak of infectious diseases;

the number and attractiveness to moviegoers of the films released in future periods, and potential changes in release dates for motion pictures;

the lack of availability of films in the short- or long-term as a result of (i) major film distributors releasing scheduled theatrical films on alternative channels; (ii) disruptions of film production; or (iii) rescheduling of movie releases into later periods, as experienced due to the implications of the 2023 Hollywood strikes;

the amount of money spent by film distributors to promote their motion pictures;

the licensing fees and terms required by film distributors from motion picture exhibitors in order to exhibit their films;

the comparative attractiveness of motion pictures as a source of entertainment and willingness and/or ability of consumers (i) to spend their dollars on entertainment and (ii) to spend their entertainment dollars on movies in an outside-the-home environment;

the extent to which we encounter competition from other cinema exhibitors, from other sources of outside-the-home entertainment, and from inside-the-home entertainment options, such as “home cinemas” and competitive film product distribution technology, such as, streaming, cable, satellite broadcast, video on demand platforms, and Blu-ray/DVD rentals and sales;

our ability to continue to obtain, to the extent needed, waivers or other financial accommodations from our lenders and landlords;

the impact of major movies being released directly to one of the multitudes of streaming services available;

the impact of certain competitors’ subscription or advance pay programs;

the failure of our new initiatives to gain significant customer acceptance and use or to generate meaningful profits;

the cost and impact of improvements to our cinemas, such as improved seating, enhanced F&B offerings, and other improvements;

the ability to negotiate favorable rent abatement, deferral and repayment terms with our landlords (which may include lenders who have foreclosed on the collateral held by our prior landlords);

disruptions during cinema improvements;

in the U.S., the impact of the termination and phase-out of the so called “Paramount Decree;”

the risk of damage and/or disruption of cinema businesses from earthquakes as certain of our operations are in geologically active areas;

the impact of protests, demonstrations, and civil unrest on, among other things, government policy, consumer willingness to go to the movies;

labor shortages and increased labor costs related to such shortages and to increasingly costly labor laws and regulations applicable to part time non-exempt workers. Disruptions in film supply and film marketing due to the 2023 Hollywood Strikes; and

competition from a newly restructured Regal, which may have lower occupancy costs than our cinemas.

with respect to our real estate development and operation activities:

the increased costs of wages, supplies, services and other development expenses from inflation;

the impact on tenants from inflationary pressures;

uncertainty as to governmental responses to infectious diseases;

the rental rates and capitalization rates applicable to the markets in which we operate and the quality of properties that we own;

the ability to negotiate and execute lease agreements with material tenants;

the extent to which we can obtain on a timely basis the various land use approvals and entitlements needed to develop our properties;

the risks and uncertainties associated with real estate development;

the availability and cost of labor and materials;

the ability to obtain all permits to construct improvements;

the ability to finance improvements, including, but not limited to increased cost of borrowing and tightened lender credit policies;

the disruptions to our business from construction and/or renovations;

the possibility of construction delays, work stoppage, and material shortage;

competition for development sites and tenants;

environmental remediation issues;

the extent to which our cinemas can continue to serve as an anchor tenant that will, in turn, be influenced by the same factors as will influence generally the results of our cinema operations;

the increased depreciation and amortization expense as construction projects transition to leased real property;

the ability to negotiate and execute joint venture opportunities and relationships;

the risk of damage and/or disruption of real estate businesses from earthquakes as certain of our operations are in geologically active areas;

the disruptions or reductions in the utilization of entertainment, shopping and hospitality venues, as well as in our operations, due to pandemics, epidemics, widespread health emergencies, or outbreaks of infectious diseases, or to changing consumer tastes and habits; and

the impact of protests, demonstrations, and civil unrest on government policy, consumer willingness to visit shopping centers.

with respect to our operations generally as an international company involved in both the development and operation of cinemas and the development and operation of real estate and previously engaged for many years in the railroad business in the United States:

our ability to renew, extend, renegotiate or replace our loans that mature in 2025 and beyond, and the impact of increasing interest rates;

our ability to grow our Company and provide value to our stockholders;

our ongoing access to borrowed funds and capital and the interest that must be paid on that debt and the returns that must be paid on such capital, and our ability to borrow funds to help cover the cessation of cash flows we experienced during the COVID-19 pandemic;

our ability to reallocate funds among jurisdictions to meet short-term liquidity needs;

the relative values of the currency used in the countries in which we operate;

changes in government regulation, including by way of example, the costs resulting from the requirements of Sarbanes-Oxley and other increased regulatory requirements;

our labor relations and costs of labor (including future government requirements with respect to minimum wages, shift scheduling, the use of consultants, pension liabilities, disability insurance and health coverage, and vacations and leave);

our exposure from time to time to legal claims and to uninsurable risks, such as those related to our historic railroad operations, including potential environmental claims and health-related claims relating to alleged exposure to asbestos or other substances now or in the future recognized as being possible causes of cancer or other health related problems, and class actions and private attorney general wage and hour and/or safe workplace-based claims;

our exposure to cybersecurity risks, including misappropriation of customer information or other breaches of information security;

the impact of future major outbreaks of contagious diseases;

the availability of employees and/or their ability or willingness to conduct work under any revised work environment protocols;

the increased risks related to employee matters, including increased employment litigation and claims relating to terminations or furloughs caused by cinema and ETC closures;

our ability to generate significant cash flow from operations if our cinemas and/or ETCs continue to experience demand at levels significantly lower than historical levels, which could lead to a substantial increase in indebtedness and negatively impact our ability to comply with the financial covenants, if applicable, in our debt agreements;

our ability to comply with credit facility covenants and our ability to obtain necessary covenant waivers and necessary credit facility amendments;

changes in future effective tax rates and the results of currently ongoing and future potential audits by taxing authorities having jurisdiction over our various companies;

inflationary pressures on labor and supplies, and supply chain disruptions;

changes in applicable accounting policies and practices;

changes in future effective tax rates and the results of currently ongoing and future potential audits by taxing authorities having jurisdiction over our various companies;

the impact of the conflict events occurring in Eastern Europe and the threats of potential conflicts in the Asia-Pacific region;

the impact of the conflict events occurring in Israel and the threats of other potential conflicts in the Middle East, and

the impact of tariff regulations enforced by the U.S. against various nations.

The above list is not necessarily exhaustive, as business is by definition unpredictable and risky, and subject to influence by numerous factors outside of our control, such as changes in government regulation or policy, competition, interest rates, supply, technological innovation, changes in consumer taste, weather, earthquakes, pandemics, and the extent to which consumers in our markets have the economic wherewithal to spend money on beyond-the-home entertainment. Refer to *Item 1A - Risk Factors*, as well as the risk factors set forth in any other filings made under the Securities Act of 1934, as amended, including any of our Quarterly Reports on Form 10-Q, for more information.

Given the variety and unpredictability of the factors that will ultimately influence our businesses and our results of operation, no guarantees can be given that any of our forward-looking statements will ultimately prove to be correct. Actual results will undoubtedly vary and there is no guarantee as to how our securities will perform either when considered in isolation or when compared to other securities or investment opportunities.

Forward-looking statements made by us in this quarter report are based only on information currently available to us and are current only as of the date of this Quarterly Report on Form 10-Q for the period ended June 30, 2025. We undertake no obligation to publicly update or to revise any of our forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable law. Accordingly, you should always note the date to which our forward-looking statements speak.

## Market risk

As filed, 6,391 characters.

The SEC requires that registrants include information about potential effects of changes in currency exchange and interest rates in their filings. Several alternatives, all with some limitations, have been offered. We base the following discussion on a sensitivity analysis that models the effects of fluctuations in currency exchange rates and interest rates. This analysis is constrained by several factors, including the following:

It is based on a single point in time; and

It does not include the effects of other complex market reactions that would arise from the changes modeled.

Although the results of such an analysis may be useful as a benchmark, they should not be viewed as forecasts.

### Currency Risk

While we report our earnings and net assets in U.S. dollars, substantial portions of our revenue and of our obligations are denominated in either Australian or New Zealand dollars. The value of these currencies can vary significantly compared to the U.S. dollar and compared to each other. We do not hedge the currency risk, but rather have relied upon the natural hedges that exist as a result of the fact that our film costs are typically fixed as a percentage of the box office, and our local operating costs and obligations are likewise typically denominated in local currencies. However, we do have intercompany debt and our ability to service this debt could be adversely impacted by declines in the relative value of the Australian and New Zealand dollars compared to the U.S. dollar. Also, our use of local borrowings to mitigate the business risk of currency fluctuations has reduced our flexibility to move cash between jurisdictions. Set forth below is a chart of the exchange ratios between these two currencies in relation to US dollars since 1996:

In recent periods, we have paid material intercompany dividends and have repaid intercompany debt, using these proceeds to fund capital investment in the United States. Accordingly, our debt levels in Australia are higher than they would have been if funds had not been returned for such purposes. On a company wide basis, this means that a reduction in the relative strength of the U.S. dollar versus the Australian dollar and/or the New Zealand dollar would effectively raise the overall cost of our borrowing and capital and make it more expensive to return funds from the United States to Australia and New Zealand.

Our Company transacts business in Australia and New Zealand and is subject to risks associated with fluctuating foreign currency exchange rates. During the second quarter of 2025, the average Australian dollar and New Zealand dollar weakened against the U.S. dollar by 2.7% and 1.9%, respectively, compared to the same prior year period.

At June 30, 2025, approximately 36.5% and 5.9% of our assets were invested in assets denominated in Australian dollars (Reading Entertainment Australia) and New Zealand dollars (Reading New Zealand), respectively, including approximately $6.0 million in cash and cash equivalents. At December 31, 2024, approximately 35.6% and 8.3% of our assets were invested in assets denominated in Australian dollars (Reading Entertainment Australia) and New Zealand dollars (Reading New Zealand), respectively, including approximately $7.3 million in cash and cash equivalents.

Our policy in Australia and New Zealand is to match revenues and expenses, whenever possible, in local currencies. As a result, we have procured a majority of our expenses in Australia and New Zealand in local currencies. Despite this natural hedge, recent movements in foreign currencies and the current holding of U.S. dollars by certain Australian and New Zealand subsidiaries have had an effect on our current earnings. The effect of the translation adjustment on our assets and liabilities noted in our other comprehensive income was a decrease of $2.7 million for the quarter ended June 30, 2025. As we continue to progress our acquisition and development activities in Australia and New Zealand, no assurances can be given that the foreign currency effect on our earnings will not be material in the future.

Historically, our policy has been to borrow in local currencies to finance the development and construction of our long-term assets in Australia and New Zealand. As a result, the borrowings in local currencies have provided somewhat of a natural hedge against the foreign currency exchange exposure. We have also historically paid management fees to the U.S. to cover a portion of our domestic overhead. The fluctuations of the Australian and New Zealand currencies, however, may impact our ability to rely on such funding for ongoing support of our domestic overhead.

We record unrealized foreign currency translation gains or losses that could materially affect our financial position. As of June 30, 2025, and December 31, 2024, the balance of cumulative foreign currency translation adjustments were approximately a ($2.4) million loss and ($5.5) million loss, respectively.

### Interest Rate Risk

Our exposure to interest rate risk arises out of our long-term floating-rate borrowings. To manage the risk, we utilize interest rate derivative contracts to convert certain floating-rate borrowings into fixed-rate borrowings. It is our Company’s policy to enter into interest rate derivative transactions only to the extent considered necessary to meet its objectives as stated above. Our Company does not enter into these transactions or any other hedging transactions for speculative purposes.

Historically, we maintain most of our cash and cash equivalent balances in short-term money market instruments with original maturities of three months or less. Due to the short-term nature of such investments, a change of 1% in short-term interest rates would not have a material effect on our financial condition. The negative spread between our borrowing costs and earned interest will exacerbate as we hold cash to provide a safety net to meet our expenses.

We have a combination of fixed and variable interest rate loans. In connection with our variable interest rate loans, a change of approximately 1% in short-term interest rates would have resulted in an approximate $415,000 increase or decrease in our quarterly interest expense.

For further discussion on market risks, please refer to *Part I, Item 1A – Risk Factors* included on our 2024 Form 10-K.

## Controls and procedures

As filed, 2,872 characters.

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our Company’s reports filed under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow for timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and our management is required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

Under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, we conducted an evaluation of our disclosure controls and procedures, as such, term is defined under Rule 13a-15(e) promulgated under the Exchange Act. Based upon our evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were not effective as of June 30, 2025, because of the material weakness in internal controls over financial reporting relating to the erroneous reversal and treatment of a liability. This material weakness existed for the periods June 30, 2024, September 30, 2024, December 31, 2024, March 31, 2025, and June 30, 2025, and resulted in the Company restating its consolidated financial statements for the June 30, 2024, and September 30, 2024 periods. A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the Company’s annual or interim financial statements will not be prevented or detected on a timely basis.

As a result of the material weakness in internal control over financial reporting described above, management has concluded that we did not maintain effective internal control over financial reporting as of June 30, 2025. For a discussion regarding management’s remediation plan of the material weakness, please refer to Item 9A of the Company’s 2024 Form 10-K.

### Changes in Internal Control over Financial Reporting

There were no other changes in our internal control over financial reporting (as defined in Rule 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the second quarter ended June 30, 2025, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

## Risk factors

As filed, 463 characters.

There have been no material changes to the risk factors we previously disclosed in Item 1A of our 2024 Form 10-K.

We encourage investors to review the risks and uncertainties relating to our business disclosed under the heading Risk Factors or otherwise in the 2024 Form 10-K, as well as those contained in Part I – Forward-Looking Statements thereof, as revised or supplemented by our Quarterly Reports filed with the SEC since the filing of the 2024 Form 10-K.

Filed Aug 14, 2025.
Source: SEC EDGAR, the filing index for accession 0000716634-25-000037. Last ingested by Listed: Oct 24, 2026, 14:56 ET. No prices; not investment advice.