Q4 2024 Reading International Inc Earnings Call - Pre-recorded

It's a 2024 fourth quarter and full year results. My name is Andre method change ski and I'm ratings as executive Vice President of Global operations with Me Island, Carter, our President and Chief Executive Officer, and Goober Cabanas are chief Executive Vice President Chief.

Operator: International's Earnings School to discuss our 2024 fourth quarter and full year results.

Andrzej Matyczynski: My name is Andrzej Matyczynski and I am Reading's Executive Vice President of Global Operations.

Andrzej Matyczynski: With me are Ellen Cotter, our President and Chief Executive Officer, and Gilbert Avanes, our Chief Executive Vice President, Chief Financial Officer and Treasurer. Before we begin the substance of the call, I will run through the usual caveats. In accordance with the Safe Harbour Provision of the Private Securities Litigation Reform Act of 1995, certain matters that will be addressed in this Earnings Call may constitute forward-looking statements. Such statements are subject to risks, uncertainties and other factors that may cause our actual performance to be materially different from the performance indicated or implied by such statements. Such risk factors are clearly set out in our SEC filing.

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Before we begin the substance of the call I will run through the usual caveats and.

In accordance with the Safe Harbor provision of the private Securities Litigation Reform Act of 1995 certain matters that will be addressed in this earnings call may constitute forward looking statements.

Such statements are subject to risks uncertainties and other factors that may cause our actual performance to be materially different from the performance indicated or implied by such statements.

Such risk factors are clearly set out in our SEC filings.

We undertake no obligation to publicly update or revise any forward looking statements.

Andrzej Matyczynski: We undertake no obligation to publicly update or revise any forward-looking statement.

In addition, we will discuss non-GAAP financial measures on this call reconciliations and definitions of non-GAAP financial measures, which are segment operating income EBIT dollar and adjusted EBITDA are included in our recently issued 2024.

Andrzej Matyczynski: In addition, we will discuss non-GAAP financial measures on this call. Reconciliations and definitions of non-GAAP financial measures, which are segment operating income, EBITDA, and adjusted EBITDA, are included in our recently issued 2024 fourth quarter corrected earnings released on April 1st on our company's website. We have adjusted, where applicable, the EBITDA items we believe to be external to our business and not reflective of our costs of doing business or results of operations. Such costs could include legal expenses relating to extraordinary litigation and any other items that we can consider to be non-recurring in accordance with the two-year SEC requirement for determining whether an item is non-recurring, infrequent or unusual in nature.

Fourth quarter corrected earnings release released on April 1st on our company's website.

We have adjusted where applicable the EBITDA items, we believe to be external to our business and not reflective of our cost of doing business or results of operations.

Such costs could include legal expenses relating to extra ordinary litigation and any other items that we can consider to be nonrecurring in accordance with the two year FCC requirement for determining whether an item is nonrecurring infrequent or unusual in nature.

We believe that the adjusted EBITDA is an important supplemental measure of our performance.

Andrzej Matyczynski: We believe that the adjusted EBITDA is an important supplemental measure of our performance.

In today's call. We also use an industry accepted financial measure called theater level cash flow T. L. C F.

Andrzej Matyczynski: In today's call, we also use an industry-accepted financial measure called Theatre Level Cash Flow, TLCF. which is theatre level revenue, less direct theatre level expenses. Average ticket price, ATP, which is calculated by dividing cinema box office revenue by the number of cinema admissions, is also used as an accepted industry acronym.

Which is theater level revenue less direct theater level expenses.

Average ticket price a T P, which is calculated by dividing cinema box office revenue by the number of cinema admissions is also used as an accepted industry acronym.

We will also use a measure referred to as food and beverage spend per patron F&B SPP.

Andrzej Matyczynski: We will also use a measure referred to as Food and Beverage Spend for Patreon, F&B, SVP. which is a key performance indicator for our cinema. The F&B SPP is calculated by dividing a cinema's revenues generated by food and beverage sales by the number of admissions at that cinema.

Which is a key performance indicator for our cinemas.

F N B S. P. P is calculated by dividing our cinemas revenues generated by food and beverage cells by the number of admissions at that cinema.

Please note that all comments are necessarily submarine nature and anything we say is qualified by the more detailed disclosure set forth in our Form 10-K, and other filings with the U S Securities and Exchange Commission.

Andrzej Matyczynski: Please note that our comments are necessarily summary in nature and anything we say is qualified by the more detailed disclosure set forth in our Form 10-K and other filings with the U.S. Securities and Exchange Commission.

So with that behind Us I'll turn it over to Allen, who will review, our 2020 for fourth quarter and full year results and discuss our business strategy going forward, followed by Gilbert who will provide a more detailed financial review.

Andrzej Matyczynski: So, with that behind us, I'll turn it over to Ellen who will review our 2024 fourth quarter and full year results and discuss our business strategy going forward, followed by Gilbert who will provide a more detailed financial review.

Alan.

Allen: Thanks, Andre and welcome everyone to the call today and thank you for listening in.

Ellen Cotter: Ellen. Thanks, Andrzej, and welcome everyone to the call today, and thank you for listening in. Let's start with the fourth quarter 2024 results, which we're encouraging and we believe reinforce our confidence in Reading's long-term future. Thanks to both an amazing lineup of blockbuster movies like Wicked, Moana 2, Gladiator 2, Sonic, The Hedgehog 3, and Mufasa. and our management team's collaborative efforts, each of Reading's key operational metrics, total revenues, operating income, and adjusted EBITDA, all significantly improved compared to 2023's fourth quarter. At $58.6 million, our Q4 2024 global total revenue was 29% higher than Q4 23 and the best fourth quarter since Q4 2019.

Allen: Let's start with the fourth quarter 2024 results, which were encouraging and we believe reinforced our confidence in Redding long term future.

Allen: Thanks to both an amazing lineup of blockbuster movies like Wicked Moana to Gladiator to Sonic the Hedgehog three endless foster.

Allen: And our management teams collaborative efforts each.

Allen: Each of Reading's key operational metrics total revenues operating income and adjusted EBITDA, all significantly improved compared to 2020 threes for each quarter.

Allen: At $58 $6 million or Q4 of 2024 Global total revenue was 29% higher than Q4 of 23 and the best fourth quarter since Q4 2019.

Allen: Our Q4, 'twenty four global operating income of $1.5 million increased eight and a half million dollars or 122% from our global operating loss of $7 million in Q4 2023.

Ellen Cotter: Our Q4'24 global operating income of $1.5 million increased $8.5 million or 122% from a global operating loss of $7 million in Q4'2023. and represented the first fourth quarter since Q4 2019 that we enjoyed positive operating income. At $6.8 million, our Q4 2024 adjusted EBITDA increased over 400% from a negative adjusted EBITDA of $2.2 million in Q4 2023. and represented the highest fourth quarter EBITDA since Q4 2019. Our Q4 2024 global cinema revenue of $54.6 million was 30% above Q4 2023 and represented just under 84% of pre-pandemic Q4 2019 levels. At $3.8 million, our Q4 2024 Global Cinema Operating Income was 191% ahead of Q4 2023 and represented the best fourth quarter Global Cinema Operating Income since Q4 2019.

Allen: And representing the first fourth quarter since Q4 2019, we enjoyed positive operating income.

Allen: At $6 $8 million, our Q4 2024, adjusted EBITDA increased over 400% from a negative adjusted EBITDA of $2.2 million in Q4 of 2023.

Allen: And represented the highest fourth quarter EBITDA since Q4 2019.

Allen: Our Q4 2024 global cinema revenue of $54 $6 million was 30% above Q4, 'twenty three and represented just under 84% of pre pandemic Q4 2019 levels.

Allen: At $3 $8 million, our Q4 2024 global cinema operating income was 191% ahead of Q4 twenty-three and represented the best fourth quarter Global cinema operating income since Q4 2019.

Allen: And highlighting the significant progress our company has made since the first year of the pandemic our.

Ellen Cotter: And highlighting the significant progress our company has made since the first year of the pandemic, our Q4 2020 operating loss was $11.7 million. And again, Looking forward to Q424. We had a positive $3.8 million operating income, a 132% increase. As many of you know, we operate in two industries, cinema and real estate, in three countries, the US, Australia, and New Zealand. Currently, over 93% of our revenues come from our cinema business. So the global macro events we've navigated, particularly the impacts of COVID-19 and the 2023 Hollywood strikes, have posed very serious challenges for us. Through these choppy waters, we've relied on our real estate assets and our global real estate division.

Allen: Our Q4, 'twenty 'twenty operating loss was $11 $7 million and again.

Allen: Looking forward to Q4 of 24.

Allen: We had a positive $3 8 million dollar operating income a 132% increase.

Allen: As many of you know we operate in two industries cinema and real estate in three countries. The U S, Australia and New Zealand.

Allen: Currently over 93% of our revenues come from our son of a business.

Allen: So the global macro events, we've navigated, particularly the impacts of COVID-19, and the 'twenty to 'twenty three Hollywood strikes.

Allen: I was very serious challenges for us.

Allen: Through these choppy waters, we've relied on our real estate assets and our global real estate Division.

Allen: In Q4, 2024, we reported global real estate revenues of $5 $2 million, a 14% increase over the same period in 2023.

Ellen Cotter: In Q4 2024, we reported global real estate revenues of $5.2 million, a 14% increase over the same period in 2023, and at $1.4 million, our operating income increased 148% over last year's Q4. This quarter, these favorable results were driven by our improved live theater operation and rent revenue from Petco, our tenant at 44 Union Square. However, the division continues to be supported by our 74 third-party Australian New Zealand tenant portfolio, which has a 96% occupancy rate.

Allen: And at $1.4 million, our operating income increased 148% over last year's Q4.

Allen: Yeah.

Allen: This quarter. These favorable results were driven by our improved life theater operation and rent revenue from Pepco, our tenant at 44 Union square.

Allen: However, the division continues to be supported by our 74 third Party, Australia, and New Zealand tenant portfolio, which has a 96% occupancy rate.

Allen: Let's turn to the full year.

Allen: 'twenty two 'twenty three Hollywood strikes and the resultant release dates shifts had a major impact on the first part of 'twenty 'twenty four for us and for the industry.

Ellen Cotter: Let's turn to the full year. The 2023 Hollywood strikes and the resultant release date shifts had a major impact on the first part of 2024 for us and for the industry. and ultimately dragged the overall year down. We reported total revenue of $210.5 million. A 5% decrease from 2023 and 76% of our 2019 total revenue of $276.8 million. Our global operating loss increased by 17% to $14 million. Our 2024 global cinema revenue was $195.1 million, which was 6% less than 2023 and equates to 74% of 2019's global cinema revenue. This revenue reduction also reflects the fact that we've closed four underperforming cinemas in the U.S.

And ultimately dragged the overall year down.

Allen: We reported total revenue of $210.5 million.

Allen: A 5% decrease from 'twenty to 'twenty, three and 76% of our 2019 total revenue of $276.8 million.

Allen: Our global operating loss increased by 17% to $14 million.

Allen: Our 2020 for a global cinema revenue was $195 $1 million, which was 6% less in 2023.

Allen: And equates to 74% of 2019 global cinema revenues.

Allen: This revenue reduction also reflects the fact that we've closed four underperforming cinemas in the U S. Since the second half of 'twenty three.

Ellen Cotter: since the second half of 2023. also reflect The Australian and New Zealand dollar decline that's happened between 2024 and 2023. On the other hand, our global real estate division delivered solid 2024 results with revenues of $20 million, which is a slight increase over 2023. and an operating income of $4.7 million, a 23% year-over-year increase. One of our company's key short-term priorities is to lower our interest expense by reducing or refinancing our debt. As we await a global cinema business that delivers more wide titles more consistently throughout the year, our board is its directive management to assess our global real estate portfolio to identify assets that can be sold to generate liquidity to pay down debt over the next few years.

Allen: And.

Allen: Also reflects.

Allen: The Australian and New Zealand dollar decline that's happened between 'twenty, 'twenty, four and 2020 three.

Allen: On the other hand, our global real estate Division delivered solid 'twenty 'twenty four results with revenues of $20 million, which is a slight increase over 2023.

Allen: And the operating income of $4 $7 million or 23% year over year increase.

Allen: One of our company's key short term priorities is to lower our interest expense by reducing our refinancing our debt.

Allen: As we await a global cinema business that delivers more wide titles more consistently throughout the year. Our board has directed management to assess our global real estate portfolio to identify assets that can be sold to generate liquidity to pay down debt over the next few years.

Allen: Through 'twenty 'twenty, four we took steps to monetize certain assets.

Ellen Cotter: Through 2024, we took steps to monetize certain assets. We sold our office building in Culver City for $10 million, paid off the $8.4 million mortgage, which will reduce our interest expense and our overall G&A expenses going forward. After years of working together with the Wellington City Council in New Zealand, in April 2024, we faced a sudden and unexpected termination of the negotiations related to a potential sale-leaseback transaction. Following this termination, our board decided to monetize our property assets in Wellington, New Zealand, including our Courtney Central building. We completed that sale by the end of 24, but closed on January 31st, 2025 for 38 million New Zealand dollars.

Allen: We sold our office building in Culver City for $10 million.

Allen: Paid off the $8 $4 million mortgage, which will reduce our interest expense and our overall G&A expenses going forward.

Allen: After years of working together with the Wellington City Council in New Zealand in April 'twenty 'twenty, four we faced a sudden and unexpected termination of the negotiations related to a potential sale leaseback transaction.

Allen: Following this termination our board decided to monetize our property assets in Wellington, New Zealand, including our Courtenay Central building.

Allen: We completed that sale by the end of 'twenty four but closed on January 31, 2025 for 38 million New Zealand dollars.

Allen: In 2020 four we negotiated and documented a sale transaction, which included a leaseback provision that will permit us to refurbish and reopen our Courtenay central cinema. After the building has been seismically upgraded by the new owner.

Ellen Cotter: In 2024, we negotiated and documented a sale transaction which included a leaseback provision that will permit us to refurbish and reopen our Courtney Central Cinema after the building has been seismically upgraded by the new owner. With these funds from the sale of our Wellington assets, we repaid our entire Westpac debt of $18.8 million New Zealand dollars and repaid just over $6 million to our Bank of America. In the U.S., we've been advancing sales efforts with respect to our approximately 24-acre Newberry Yard asset in Williamsport, Pennsylvania. The yard, as the name suggests, is integrated into the area's rail system.

Allen: With these funds from the sale of our Wellington assets, we repaid our entire Westpac debt of $18 8 million New Zealand dollars.

Allen: And repaid $6 million.

Allen: Just over $6 million to our bank of America.

Allen: In the U S. We've been advancing sales efforts with respect to our approximately 24 acre Newberry yard asset in Williamsport, Pennsylvania.

Allen: The yard as the name suggests is integrated into the areas rail system.

Allen: We believe that will benefit from the resurgence of fracking and the other economic activity in Pennsylvania.

Ellen Cotter: We believe that we'll benefit from the resurgence of fracking and other economic activity in Pennsylvania. Based on the current interest from various industrial users, while no assurances can be given, we believe that we will transact on that property sometime this year. In Australia, we've been working on the sale of our Cannon Park property asset in Townsville in Queensland. and have executed an option to sell with purchase and sale agreements next with a targeted Q2 2025 settlement date for a sales price of 32 million Australian dollars. In Queensland, for tax purposes, real property sale agreements that include a due diligence component are structured as an option agreement.

Allen: Based on the current interest from various industrial users well no assurances can be given we believe that we will transact on that property sometime this year.

Allen: In Australia, we have been working on the sale of our Cannon Park property asset in Townsville in Queensland.

Allen: And have executed an option to sell with purchase and sale agreement to next with a targeted Q2 2025 settlement date for a sales price of 32 million Australian dollars.

Allen: In Queensland for tax purposes real property sale agreements that include a due diligence component are structured as a option agreements.

Allen: While the option holder has made a $1 6 million dollar earnest money deposit no assurances can be given that this transaction will close as a potential buyer is still in its due diligence period.

Ellen Cotter: While the option holder has made a $1.6 million earnest money deposit, no assurances can be given that this transaction will close as a potential buyer is still in its due diligence period. Through 2025, we'll continue to develop opportunities for asset monetization that will assist our overall liquidity conditions.

Allen: Through 2025 will continue to develop opportunities for asset monetization that will assist our overall liquidity conditions.

Allen: Now, let's take a closer look at our global cinema business, which has traditionally served as our core source of cash flow driving our asset growth strategy.

Ellen Cotter: But now, let's take a closer look at our global cinema business, which has traditionally served as our core source of cash flow, driving our asset growth strategy. As I just mentioned, our Q4 2024 global cinema revenues and global operating income were both up substantially due to the powerful holiday film slate that was delivered by the major studios. but also by the focus on profitability of our executive, programming, operations, and marketing team. And while the fourth quarter was great, the full year of 2024, as I mentioned before, trailed behind 2023, with the first part of 2024 being materially impacted by the release date changes due to the Hollywood strike.

Allen: As I just mentioned our Q4 2020 for a global cinema revenues and global operating income were both up substantially due to the powerful holiday film slate that was delivered by the major studios.

Allen: But also by the focus on profitability of our executive programming operations and marketing teams.

Allen: And while the fourth quarter was great. The full year of 2024 as I mentioned before trail behind 2023 with the first part of 'twenty 'twenty four being materially impacted by the release date changes due to the Hollywood strikes.

Allen: While the fourth quarter 2024, it was very encouraging.

Ellen Cotter: While the fourth quarter 2024 was very encouraging, this quarter that we're in now, first quarter of 25, overall will likely be a disappointment in comparison to last year due to a softer overall film slate. But we see light at the end of the tunnel with the remainder of the 2025 movie lineup looking exciting, diverse, and very promising. Families can come together to watch Lilo and Stitch, How to Train Your Dragon. Disney's Elio, Zootopia 2, Superhero fans will be entertained by Thunderbolts, The Fantastic Four, and Blade, all from the MCU, and Superman from DC Universe. Huge Franchises Return, Karate Kid Legends, Jurassic World Rebirth, Mission Impossible The Final Reckoning, Wicked For Good, and Avatar Fire & Ash And right now, I'm here at CinemaCon this week, and some of the original product that we've seen looks really sensational, like The Bride from director Maggie Gyllenhaal.

Allen: This quarter that we're in now first quarter of 'twenty five overall will likely be a disappointment in comparison to last year due to a softer overall film slate.

Allen: But we see light at the end of the tunnel with the remainder of the 2025 movie lineup looking exciting diverse and very promising.

Allen: Families can come together to watch Leila and stitch, how to train your Dragon Disney.

Allen: Disney's Helio.

Allen: Zootopia too soon.

Allen: Super fan superhero fans will be entertained by Thunderbolt, the fantastic four and blade off from the MCU.

Allen: And Superman from D C universe.

Allen: Huge franchises return Karate Kid legend Jurassic World Rebirth mission impossible. The final reckoning, what good for good and Avatar fire of Nash.

Speaker Change: And right now I'm here at cinema Con this week and some of the original product that we've seen looks really sensational like the bride from director Maggie Gyllenhaal.

Speaker Change: And F. One the new racing movie from the makers of top gun Maverick director, Joe Kaczynski and producer Jerry Bruckheimer.

Ellen Cotter: and F1, the new racing movie from the makers of Top Gun Maverick, director Joe Kaczynski and producer Jerry Bruckheimer.

Speaker Change: I'll touch on some of the more country specific milestones in a minute, but let me first highlight a few of the key strategic initiatives that are being pursued that have been and are being pursued by our global teams through 'twenty four and into 'twenty five.

Ellen Cotter: I'll touch on some of the more country specific milestones in a minute, but let me first highlight a few of the key strategic initiatives that are being pursued, that have been and are being pursued by our global teams through 24 and into 25. Throughout 2024 and into 2025, our global programming teams have remained committed to curating original series and programming compelling content that engages audiences and boosts ticket sales. Creating original film series has been a key focus of ours for a while. to keep audiences engaged during periods at the time that the studios don't have a consistent flow of products.

Speaker Change: Throughout 2024 and into 2025, our global programming teams have remained committed to Curating original series and programming compelling content that engages audiences and boost ticket sales.

Speaker Change: Creating original film series has been a key focus of ours for a while.

Allen: To keep audiences engaged during periods at the time that the studios don't have a consistent flow of product.

Allen: We are also always exploring new avenues for alternative content.

Ellen Cotter: We are also always exploring new avenues for alternative content. This effort falls on both the programming and marketing. Our success with these programs is not only dependent on programming great content, but equally on executing impactful campaigns across our digital and social channels. and Creating Community-Based Promotional Partnerships. Our FMB program is always a main focus for our global management. In 2024, the F&B SPP for all three of our cinema divisions reached annual record highs for any previous year for the full year of 2024. And with respect to the fourth quarter of 2024, the F&B SPP for each cinema division was the highest fourth quarter ever.

Allen: This effort falls on both the programming and marketing teams. Our success with these programs is not only dependent on programming great content, but equally on executing impactful campaigns across our digital and social channels.

Allen: And creating community based promotional partnerships.

Allen: Our F&B program is always a main focus for our global management teams.

Allen: In 2024 at the F N B S. P. P for all three of our cinema divisions reached annual record highs for any previous year for the full year of 2024.

Allen: And with respect to the fourth quarter 'twenty 'twenty four the F. N B S. P. P for each cinema Division was the highest fourth quarter ever if you measure when all of our screens were open or in other words, excluding certain pandemic periods when only certain screens were operational.

Ellen Cotter: If you measure when all of our screens were open, or in other words, excluding certain pandemic periods when only certain screens were operational. Through the year, we've focused on improving the convenience and functionality behind our F&B sales online and on our app, with transaction sizes consistently improving. We again embraced movie-themed menus in all three countries and offered our guests movie-inspired cocktails, burgers, or desserts. In the U.S., we're following the merchandise trends and selling very fun merchandise for some of our most important films. In Australia and New Zealand, as of today, 75% of our theaters are selling liquor.

Allen: Through the year, we focused on improving the convenience and functionality behind our F&B sales online and on our App with transaction sizes consistently improving.

Allen: We again embraced movie themed menus in all three countries and offered our guests movie inspired cocktails burgers or desserts.

Allen: In the U S. We're following the merchandise trends and selling very fun merchandise for some of our most important films.

Allen: In Australia, and New Zealand as of today, 75% of our theatres are selling liquor.

Allen: And in the U S, 100% of our theatres are selling beer and wine and then all the three are selling liquor.

Ellen Cotter: And in the U.S., 100% of our theaters are selling beer and wine, and in all but three are selling liquor. Understanding the price sensitivities that various audiences feel. In the U.S., we launched a comprehensive weekday discount program, which offers guests value-driven discounts on select F&B items throughout the week, as opposed to the weekend. For instance, on Mondays, you could get a mega movie combo. On Tuesdays, we offer a BOGO sweet treat, etc.

Allen: Understanding the price sensitivities that various audiences feel in the U S. We launched a comprehensive weekday discount program, which offers guests value driven discounts on select F&B items throughout the week as opposed to the weekend for instance on Monday as you could get a mega movie combo.

Allen: Oh on Tuesdays, we offer a bogo sweet treat etcetera.

Allen: And with regard to loyalty and rewards were driving guests to our theaters through our existing programs and are working to develop new and improved rewards and loyalty programs.

Ellen Cotter: And with regard to loyalty and rewards, we're driving guests to our theaters through our existing programs and are working to develop new and improve rewards and loyalty programs. In Australia and New Zealand, during the last half of 2024, we revamped and relaunched our free-to-join Reading Rewards Program to provide better perks and savings. Today we have over 300,000 members. And in late Q4 2024, we also launched paid loyalty programs for both our Reading and Angelica brands. And since launch, we've signed up over 6,000 paid memberships. In the U.S., we have a free-to-join Angelica membership program with over 155,000 members for eight theaters.

Allen: In Australia, and New Zealand during the last half of 2024, we've revamped and relaunched our freda join running rewards program to provide better perks and savings today.

Allen: Today, we have over 300000 members.

Allen: And then late Q4 2024, we also launched paid loyalty programs for both our reading and Angelica brands and since launch we've signed up over 6000 paid memberships.

Allen: In the U S. We have a free to join Angelica membership program with over 155000 members for eight theaters will launch a premium monthly membership within the next three to four months.

Ellen Cotter: will launch a premium monthly membership within the next three to four months. And we have an existing free-to-join program in Hawaii at Consolidated Theaters. that will be also rolled into a new free-to-join and paid membership for Consolidated within the next four to six months. At the same time, we'll roll out a similar offer at our U.S.-based Reading Center. Another key effort for our global executive teams has been to work with our landlords to try to recalibrate our occupancy costs to reflect the reality of what we've been living over the last few years. Today, attendance is not back to pre-pandemic levels, and most of our operating expenses are up.

Allen: And we have an existing Freda join program in Hawaii, a consolidated theaters.

Allen: That will be also rolled into a new free to join and paid membership for consolidated within the next four to six months.

Allen: At the same time, we'll rollout similar offer at our U S based reading cinemas.

Allen: Another key effort for our global executive teams has been to work with our landlords to try to recalibrate, our occupancy costs to reflect the reality of what we've been living over the last few years.

Allen: Today attendance is not back to pre pandemic levels and most of our operating expenses are up so.

Allen: So we prioritize collaborating with our landlords to try and achieve occupancy cross reductions where we can.

Ellen Cotter: So we've prioritized collaborating with our landlords to try and achieve occupancy cost reductions where we can.

Allen: Now, let's turn to our U S cinema Division and starting with the fourth quarter 2024.

Ellen Cotter: Now, let's turn to our U.S.

Ellen Cotter: Cinema Division and starting with the fourth quarter, 2024. Our U.S. cinema revenue increased by 24% to $29.3 million compared to Q4 2023.

Allen: Our U S cinema revenue increased by 24% to $29.3 million compared to Q4 2023.

Allen: And it was the highest Q4 revenue since Q4 2019.

Ellen Cotter: And it was the highest Q4 revenue since Q4 2019. Our U.S. operating loss improved by $4.2 million to a positive operating income of $1.6 million from an operating loss of $2.6 million in Q4 2023.

Allen: Our U S operating loss improved by $4 $2 million to a positive operating income of $1 $6 million from an operating loss of $2 $6 million in Q4 2023.

Allen: This is also the highest Q4 operating income since Q4 2019.

Ellen Cotter: This is also the highest Q4 operating income since Q4 2019. These results were achieved despite the streamlining of our circuit. The fourth quarter of 23 includes revenues from two U.S. cinemas that have since closed. And since the pandemic, we've closed five underperforming U.S.-based theaters, three in Hawaii, one in California, and one in Texas. with four of these closures occurring in the last two years.

Allen: These results were achieved despite the streamlining of our circuit.

Allen: The fourth quarter of 'twenty three includes revenues from two U S cinemas that have since closed.

Allen: And since the pandemic, we've closed five underperforming U S based theaters three.

Allen: Three in Hawaii, one in California, and one in Texas.

Allen: With four of these closures occurring in the last two years.

Allen: And as we've reported before we anticipate that these closures will positively impact our future profitability, even if they adversely impact our gross revenue line.

Ellen Cotter: And as we've reported before, we anticipate that these closures will positively impact our future profitability, even if they adversely impact our gross revenue line. We enjoyed a really compelling film slate that worked for our audience during the fourth quarter. Moana worked very well at Consolidated Theatres. Wicked worked well at many of our theatres across the U.S. And our specialty theatres did very well with certain films, but most particularly, Onora and the Brutalist from A24.

Allen: We enjoyed a really compelling film slate that worked for our audience. During the fourth quarter Moana worked very well our consolidated theaters, what good worked well at many of our theaters across the U S.

Allen: In our specialty theaters did very well with certain films, but most particularly our Nora and the theater Brutalist from 824.

Allen: For the full year 2020 for our U S cinema revenue decreased by 12% to $99 $9 million compared to the full year of 'twenty three.

Ellen Cotter: For the full year 2024, our U.S. cinema revenue decreased by 12% to $99.9 million compared to the full year of 2023. And our operating loss increased to $7.3 million, up from an operating loss of $5.8 million for the year ended December 31, 2023. The drivers for the U.S. underperformance for the full year of 2024 were, as I've said before, a decrease in the Sinema performance due to the lingering impacts of the 2023 Hollywood strike. which resulted in lower box office revenue, lower F&B revenue, and lower advertising revenue. This was partially offset by a decrease in depreciation, amortization, G&A expense, and lower operating expenses.

Allen: And our operating loss increased to $7.3 million up from an operating loss of $5 $8 million for the year ended December 31 23.

Allen: The drivers for the U S under performance for the full year of 2024, where as I've said before a decrease in the cinema performance due to the lingering impacts of the 'twenty two 'twenty three Hollywood strikes.

Allen: Which resulted in lower box office revenue lower F&B revenue and lower advertising revenues.

Allen: This was partially offset by a decrease in depreciation and amortization G&A expense and lower operating expenses.

Allen: Our fourth quarter 2020 for F. N B S. P. P was eight $8.28, which represented the highest fourth quarter ever for our U S circuit and represented a higher number than certain of our major publicly traded exhibitors competitors excuse me.

Ellen Cotter: Our fourth quarter 2024 F&B SPP was $8.28. which represented the highest fourth quarter ever for a U.S. circuit and represented a higher number than certain of our major publicly traded exhibitors, competitors, excuse me. and comms during a time when we rolled out the weekday deal program that I just described. Our year-to-date F&B SPP of $8.12, $8.12, represented the highest year-to-date F&B SPP ever. Additionally, our fourth quarter theater rental revenues help make the ancillary revenue for our U.S. Circuit the highest fourth quarter on record.

Allen: And comms during a time when we rolled out the weekday deal program that I just described.

Allen: Our year to date F N B S. P. P of 812 $8.12 represented the highest year to date F. N B S. P P ever.

Allen: Additionally, our fourth quarter theater rental revenues helped make the ancillary revenue for our U S circuit, the highest fourth quarter on record.

Allen: And reflecting the laser focus of our management team. The U S is fourth quarter 'twenty 'twenty four cash flow preoccupied see per capita was the highest quarter ever recorded.

Ellen Cotter: And reflecting the laser focus of our management team, the U.S.'s fourth quarter 2024 cash flow preoccupancy per capita was the highest quarter ever recorded.

Allen: Now, let's turn to our cinemas in Australia, and New Zealand.

Ellen Cotter: Now, let's turn to our cinemas in Australia and New Zealand. In Q4 2024 and compared to Q4 2023, our Australian cinema revenue increased 37% to $21.4 million and our operating income increased 254% to $1.7 million from an operating loss of $1.1 million. Our New Zealand cinema revenue increased 53% to $3.8 million. and operating income increased 228% to $504,000 from an operating loss of $395,000.

Allen: In Q4, 2024, and compared to Q4 'twenty two 'twenty three.

Australian cinema revenue increased 37% to $21 $4 million and our operating income increased 254% to $1 $7 million from an operating loss of $1 $1 million.

Allen: Our New Zealand cinema revenue increased 53% to $3 $8 million.

Allen: And operating income increased 228% to $504000 from an operating loss of $395000.

Allen: If you looked at these increases in their local currency.

Ellen Cotter: If you looked at these increases in their local currency, the results would be even more impressive.

Allen: <unk> results will be even more impressive.

Allen: Here are some of the fourth quarter 2024 milestones.

Ellen Cotter: Here are some of the fourth quarter 2024 miles. Supported by a terrific film lineup that work well with our audiences in Australia and New Zealand, our Australian Cinema Division cinema revenue of $21.4 million marked the highest fourth quarter performance since Q4 2019. At $1.7 million, our Australian cinema division's operating income also marked the highest fourth-quarter performance since Q4 2019. Our Q4 2024 admission revenue in Australia and New Zealand were higher than Q4 2023 with a 37% increase for Australia and a 38% increase for New Zealand. In functional currency, our Australian F&B revenue of 10.6 million Australian dollars is the highest fourth quarter of all time for F&B revenue.

Allen: Supported by a terrific film lineup that work well with our audiences in Australia, and New Zealand, our Australian Cinema Division cinema revenue of $21 $4 million Mark the highest fourth quarter performance since Q4 2019.

Allen: At $1.7 million, our Australian cinema division's operating income also marked the highest fourth quarter performance since Q4 2019.

Allen: Our Q4 2020 for a mission revenue in Australia, New Zealand, where higher than Q4, 2023, with a 37% increase from Australia, and a 38% increase for New Zealand.

Allen: In functional currency, our Australian F&B revenue of 10.6 million Australian dollars is the highest fourth quarter of all time for F&B revenues.

Allen: Australia had its best full year and fourth quarter revenues in terms of both food and beverage and screen advertising in functional currency.

Ellen Cotter: Australia had its best full year and fourth quarter revenues in terms of both food and beverage and screen advertising in functional currency for the 2024 full year and the fourth quarter 2024. The Q4 2024 Screen Advertising Red Menu in Australia was supported in part by the rollout of another circuit-wide click-to-pay program with MasterCard. Our Australia Q4 2024 ATP of $15.27 in Functional Currency and our F&B SPP of $8.28 in Functional Currency were both the highest for the quarter ever. The fourth quarter 2024 cash flow pre-occupancy per capita in Australia was its highest fourth quarter ever recorded, again, when measured in local currency and also, like the US, reflecting the laser focus of our management.

Allen: For the 'twenty 'twenty four full year and the fourth quarter of 2024.

Allen: The Q4, 'twenty 'twenty four screen advertising revenue in Australia was supported in part.

Allen: By the rollout of another circuit wide click to pay program with Mastercard.

Speaker Change: Our Australia Q4, 2020 for a T P a $15.27.

Allen: In functional currency and R. F N B S. P. P F $8.28 in functional currency were both the highest fourth quarter ever.

Allen: The fourth quarter 2024 cash flow pre occupancy per capita in Australia was its highest fourth quarter ever recorded again when measured in local currency and also like the U S. Reflecting the laser focus of our management teams.

Allen: In Australia, our total theater level cash flow delivered the highest fourth quarter since 2019 for Australian cinemas.

Ellen Cotter: In Australia, our total theater level cash flow delivered the highest fourth quarter since 2019 for Australian cinema. And rounding out with our New Zealand cinemas, our Q4 2024 ATP of $13.20 in New Zealand dollars and our F&B SPP of $6.98, again functional currency, were the highest ever, highest quarters ever.

Allen: And rounding out with her New Zealand cinemas, our Q4 2020 for a T. P of $13.20 in New Zealand dollars and our F. N B S. P. P F $6.98 again functional currency were the highest ever highest quarters ever.

Allen: Now, let's turn to our global real estate business.

Allen: Which on a segment reporting basis that includes our live theater business in New York City, and our intercompany rents.

Ellen Cotter: Now, let's turn to our global real estate business. which on a segment reporting basis includes our live theater business in New York City and our intercompany rents. Let's start with the fourth quarter 2024 result. At $5.2 million, our global real estate total revenue increased 14%, while our total operating income of $1.4 million increased by 148%. These increases were driven by our live theater revenue as a result of increased show activity and license fees through the quarter at the Orpheum, and Audible at the Manetta Lane presented multiple shows during the fourth quarter, including I'm Almost There by Todd Allman, Samantha B.'s How to Survive Menopause, and Strategic Love Play.

Allen: Let's start with our fourth quarter 2024 results.

Allen: At $5 $2 million or global real estate total revenue increased 14%, while our total operating income of $1 $4 million increased by 148%.

Allen: These increases were driven by our live theater revenue as a result of increased show activity in license fees through the quarter at the Orpheum.

Allen: And audible at the minute of lane presented multiple shows during the fourth quarter, including I'm almost there by taught Almond Samantha bees has survived menopause and strategic lab play.

Allen: Lastly, the quarter, which was.

Ellen Cotter: Lastly, the quarter was improved due to the rent revenues delivered by Petco, who has a flagship store at our 44 Union Square building in New York City.

Allen: Proved due to the rent revenues delivered by Petco, who has a flagship store at our 44 Union Square building in New York City.

Allen: Let me point out a few standout fourth quarter 'twenty 'twenty four real estate division metrics.

Ellen Cotter: Let me point out a few standout fourth quarter 2024 real estate division metrics. Driven by the U.S. property and U.S. live theater performance, our Q4 2024 real estate operating income of $1.4 million is the best quarter since Q3 2019. And that result takes into account, among other things, the sales of our Maitland property in New South Wales in the fourth quarter of twenty three and the sale of Auburn Red Yard in June of twenty one. And we had recall, you recall, we had seventeen third party tenants at that property. Our US real estate business, which includes our two theaters in New York City, achieved an improved year-over-year result and achieved its highest fourth quarter revenue ever supported by the rent from 44 Union Square.

Driven by the U S property and U S Live theater performance, our Q4 2024 real estate operating income of $1 $4 million is the best quarter since Q3 2019.

Allen: And that result takes into account among other things the sales of our mainland property in new South Wales in the fourth quarter of 'twenty, three and the sale of Auburn Red yard in June of 'twenty one.

Allen: And we had recall you'll recall, we had 17 third party tenants at that property.

Allen: Our U S real estate business, which includes our two theaters in New York City.

Allen: Achieved an improved year over year result, and achieved its highest fourth quarter revenue ever supported by the rent from you 44 Union square.

Allen: This quarter's.

Allen: Operating income was 25% higher than Q4 2019 to operating income despite the elimination of rental revenue associated with our Culver City office building, which we sold in the first quarter of 'twenty for <unk>.

Ellen Cotter: This quarter's operating income was 25% higher than Q4 2019's operating income despite the elimination of rental revenue associated with our Clover City office building, which we sold in the first quarter of 24, and the Q4 2023 sale of our Maitland property in New South Wales. For the full year 2024, our global real estate revenue. of $20 million increased by 1% compared to 2023 and their operating income of $4.7 million increased 23% from an operating income of $3.8 million in 2023. And while the increases quarter over quarter and year over year might have been attributed to the improved US business, these results continue to be founded and supported by the 74 third party Australian and New Zealand real estate portfolio, which today reflects a 96% occupancy rate.

Allen: And the Q4 2023 sale of our Maitland property and yourself wells.

Allen: For the full year 2024, our global real estate revenue.

Allen: Of $20 million increased by 1% compared to 2023.

Allen: And their operating income of $4 $7 million increased 23% from an operating income of $3 $8 million in 2023.

Allen: Yeah.

Allen: And while the increases quarter over quarter and year over year might have been attributed to the improved U S. Business. These results continued to be founded and supported by the 74 third party.

Allen: Australian and New Zealand real estate portfolio, which today reflects a 96% occupancy rate.

Allen: With 2020 Four's results being ahead of 'twenty to 'twenty three on a yearly and quarterly basis. We're excited to continue to build upon this positive momentum as it pertains to our real estate business.

Ellen Cotter: With 2024's results being ahead of 2023 on a yearly and quarterly basis, we're excited to continue to build upon this positive momentum as it pertains to our real estate business.

Allen: In addition to maintaining our real estate operations.

Ellen Cotter: in addition to maintaining a real estate operation. To bolster our long-term liquidity during the last several months in 2024, we focused on monetizing four select real estate assets—Clover City, Wellington, Cannon Park, and Williamsport. We worked with our lenders on various financings to extend our maturity dates, which Gilbert will touch on in a minute. And we've now monetized Culver City in Wellington. Cannon Park is under contract and it's in its due diligence phase. And while no assurances can be given, we currently anticipate a closing on that sale, the Cannon Park sale, sometime this quarter. Williamsport rail easement issues having been resolved, it's now ready to be sold to a new owner with rail access needs.

Allen: To bolster our long term liquidity during the last several months in 2024.

Allen: We focused on monetizing for select real estate assets Culver City, Wellington Cannon Park in Williamsport.

Allen: We worked with our lenders and various financings to extend our maturity dates, which gilberto touch on in a minute.

Allen: And we've now monetize Culver City in Wellington Cannon Park is under contract and its and its due diligence phase.

Allen: And while no assurances can be given we currently anticipate a closing on that so the cannon park sale at some time.

Allen: This quarter.

Allen: William Pitts Williamsport rail easement issues, having been resolved, it's now ready to be sold to a new owner with rail access needs and again well no assurances can be given we do anticipate it closing on that asset before the end of the year.

Ellen Cotter: And again, while no assurances can be given, we do anticipate a closing on that asset before the end of the year.

Allen: We've also embarked on a detailed review of all of our historic Railroad properties.

Ellen Cotter: We've also embarked on a detailed review of all of our historic railroad properties. and have retained an outside consultant to help us in this effort to determine whether there are additional monetization opportunities existing in our historic rail portfolio. This will be a focus for us in 2025. All of these real estate-based efforts and momentum should line us up nicely to be ready for the improvement in the box office expected for 2025 and beyond. and the reduction hopefully in interest rates that should continue in the middle of 2025.

Allen: And have retained an outside consultant to help us in this effort to determine whether there are additional monetization opportunities existing in our historic rail portfolio.

Allen: This will be a focus for us in 2025.

Allen: All of these real estate based effort to momentum should line us up nicely to be ready for the improvement in the box office expected for 2025 and beyond.

Allen: And the reduction hopefully in interest rates that should continue in the middle of a of 2025.

Gilbert: So that wraps it up for me I'm going to turn it over to Gilbert.

Ellen Cotter: So that wraps it up for me, I'm going to turn it over to Gilbert.

Gilbert: Thank you Ellen.

Gilbert: Consolidated revenue for the quarter ended December 31, 2024 increased by $13 3 million.

Gilbert Avanes: Thank you, Ellen. Consolidated revenue for the quarter ended December 31st, 2024, increased by $13.3 million. to $58.6 million when compared to the fourth quarter of 2023 as a result of a stronger film slate and higher live theater and the US property revenue in the fourth quarter of 2023.

Allen: To $58 6 million when compared to the fourth quarter of 2023 as a result of a stronger film slate and higher life theater and the U S property revenue in the fourth quarter of 2024.

Allen: Consolidated revenue for the 12 months ended December 31, 2024 decreased by $12 2 million to $210 5 million when compared to the 12 month ended December 31 2023.

Gilbert Avanes: Consolidated revenue for the 12 months and the December 31st, 2024, decreased by $12.2 million to $210.5 million when compared to the 12 months and the December 31st, 2023. This decrease is primarily attributable to the lower attendance in the U.S. and New Zealand as a result of overall lower performing titles for our theatres in 2024 compared to 2023, along with closing cinemas in these specific countries. Net loss attributable to Reading International Inc for the quarter ended December 31st, 2024 decreased by $10.1 million to a loss of $2.2 million compared to a loss of $12.4 million in Q4 2023.

Allen: This decrease is primarily attributable to the lower attendance in the U S and New Zealand as a result of overall lower performing titles for our theaters in 2024 compared to 2023, along with closing cinemas and these specific countries.

Speaker Change: Net loss attributable to running international Bank for the quarter ended December 31, 2024 decreased by $10 1 million to a loss of $2 2 million compared to a loss of $12 4 million in Q4 2023.

Speaker Change: Q4, 2024 basic loss per share decreased by 46.

Gilbert Avanes: Q4 2024 basic loss per share decreased by 46 cents to a basic loss per share of 10 cents compared to a basic loss per share of 56 cents for Q4 2023. These results were primarily due to strengthened cinema performance in all three countries. Strengthen U.S. and Australia property performance, decrease interest expense. reduce depreciation and amortization, and increase other income.

Speaker Change: So a basic loss per share of <unk> <unk>.

Speaker Change: Compared to a basic loss per share of 56 cents for Q4 2023.

Allen: These results were primarily due to strength.

Allen: Cinema performance in all three countries.

Allen: Strength in U S and Australia property performance decreased interest expense.

Allen: Reduced depreciation and amortization and increased other income.

Allen: Net loss attributable to running International Inc. For 12 months ended December 31, 2024 increased by $4 6 million to a loss of $35 3 million from a loss of $30 7 million when compared to the 12 months ended December 31 2023.

Gilbert Avanes: Net loss attributable to Reading International Inc for 12 months ended December 31st, 2024, increased by $4.6 million to a loss of $35.3 million from a loss of $30.7 million when compared to the 12 months ended December 31st, 2023. Basic loss per share increased by $0.20 to a loss of $1.58 compared to a loss of $1.50. $1.38 for the 12-month and the 2023. These results were primarily due to a decrease in cinema segment revenue due to a weaker movie slate as a result of lingering impact of 2023 Hollywood strike. 1.7 million increase in interest expense due to rising interest rates.

Allen: Basic loss per share.

Allen: Kris by 'twenty to a loss of $1 58, compared to a loss of <unk>.

Allen: 38.

Allen: For the 12 months ended 2023.

Allen: These results were primarily due to.

Allen: A decrease in cinema segment revenue due to weaker movie slate as a result of lingering.

Allen: <unk> of 2023 Hollywood strike.

Allen: The $1 7 million increase in interest expense due to rising interest rates.

Allen: And one 4 million loss on sale of assets, primarily from the sale of the.

Gilbert Avanes: and $1.4 million loss on sale of asset, primarily from the sale of the Culver City office, partially offset by a decreased appreciation and amortization and increased other income. Our total company depreciation, amortization, impairment, and general and administrative expenses for the quarter ended December 31st, 2024, decreased by 0.8 million to 8.2 million compared to Q4 2023. For the 12 months ended December 31st, 2024, it decreased by $2.7 million to $35.9 million compared to the 12 months ended December 31st, 2023.

Allen: Culver City office, partially offset by a decrease depreciation and amortization and increase.

Allen: Other income.

Allen: Our total company depreciation and amortization impairment and general and administrative expenses for the quarter ended December 31, 2024 decreased $5 8 million to $8 2 million compared to Q4 2023.

Allen: For the 12 months ended December 31, 2024 decreased by $2 7 million to $35 9 million compared to the 12 months ended December 31 2023.

Allen: These decreases were due to decreases in depreciation and amortization.

Gilbert Avanes: These decreases were due to decreases in depreciation and amortization as a result of sale of our maintenance and Culver City property and no depreciation on our held for sale property. Income tax expense for the quarter ended December 31st, 2024 decreased by 0.1 million to 0.2 million compared to Q4 2023. Income tax expense for the 12 months ended December 31st, 2024 decreased by 0.1 million to 0.5 million compared to the 12 months ended December 31st, 2023. Decrease in income tax expense is due to an adjustment for the valuation allowance recorded in 2024 compared to 2023.

Allen: The result of sales.

Allen: And then on Culver City property.

Allen: No depreciation on that.

Allen: On our held for sale properties.

Allen: Income tax expense for the quarter ended December 31, 2024 decreased $5 1 million $2 2 million compared to Q4 2023.

Allen: Income tax expense for the 12 months ended December 31, 2024 decreased $5 1 million $2 5 million compared to the 12 months ended December 31 2023.

Allen: The decrease in income tax expense is due to an adjustment for the valuation allowance recorded in 2024 compared to 2023.

Allen: For the fourth quarter of 2024, our adjusted EBITDA income increased by $9 million.

Gilbert Avanes: For the fourth quarter of 2024, our adjusted EBITDA income increased by $9 million to an EBITDA income of $6.8 million from an EBITDA loss of $2.2 million in Q4 2023. For the 12 months ended December 31st, 2024, our adjusted EBITDA income decreased by $5.6 million to $2.1 million compared to an EBITDA income of $7.8 million for the 12 months ended December 31st, 2023.

Allen: EBITDA income of $6 8 million from an EBITDA loss of $2 2 million in Q4 2023.

Allen: For the 12 months ended December 31, 2024, our adjusted EBITDA income decreased by $5 6 million to $2 1 million compared to an EBITDA income of $7 8 million for the 12 months ended December 31 2023.

Allen: Shifting to cash flow for the 12 months ended December 31, 2024, net cash used in operating activities decreased by $5 9 million to $3 8 million compared to cash used in 12 months ended December 31, 2023 from $9 7 million.

Gilbert Avanes: Shifting to cash flow, for the 12 months ended December 31st, 2024, net cash used in operating activities decreased by $5.9 million to $3.8 million compared to cash used in 12 months ended December 31st, 2023 of $9.7 million. This was primarily driven by $11.7 million increase in net change in operating assets and liabilities, primarily due to decrease in receivables, an increase in accounts payable and accrued expenses, plus deferred revenues and other liabilities, partially offset by increase in net operating loss of $3.4 million. Cash provided in investing activities during the 12 months ended December 31st, 2024 increased by $6.7 million to $4 million compared to cash used in the 12 months ended December 31st, 2023 of $2.7 million.

Allen: This was primarily driven by $11 7 million increase in net change in operating assets and liabilities.

Allen: Primarily due to decrease in receivables and an increase in accounts payable and accrued expenses plus deferred revenues and other liabilities, partially offset by an increase in net operating loss of $3 4 million.

Allen: Cash provided in investing activities during the 12 months ended December 31.

Allen: 2024 increased by $6 7 million to $4 million compared to cash used in the 12 months ended December 31, 2023 of $2 7 million. This was primarily due to proceeds from the sale of our Culver City office.

Gilbert Avanes: This was primarily due to proceeds from the sale of our Culver City office. Cash provided in financing activities for the 12 months ended December 31st, 2024 increased by $7,000,000 to $.3,000,000 compared to cash used in the 12 months ended December 31st, 2023 of $6.7,000,000. This was primarily due to new bridge loan of Australian $12 million from NAB and an increase of New Zealand dollar $5 million from our Westpac loan. This increase was partially offset by payoff of our citizens loan of $8.4 million. following the sale of the Culver City office building and scheduled repayment another day.

Allen: Cash provided in financing activities for the 12 months ended December 31, 2024 increased by 7 million $2 3 million compared to cash used in the 12 months ended December 31, 2023 of $6 7 million.

Allen: This was primarily due to new bridge loan of Australia, and $12 million from <unk>, Inc.

Allen: The increase of New Zealand dollars 5 million from our Westpac loan.

Allen: This increase was partially offset by payoff of our citizens loan of 8.4.

Allen: $4 million.

Allen: Following the sale of the Culver City office buildings and scheduled repayment another Dutch.

Allen: Turning now to our financial position total assets on December 31, 2024 were $471 million compared to $533 1 million on December 31 2023.

Gilbert Avanes: Turning now to our financial position, total assets on December 31st, 2024 were $471 million compared to $533.1 million on December 31st, 2023. This decrease was driven by a $2.8 million decrease in cash and cash equivalent and receivables from which we funded our ongoing business operations. a 10.1 million decrease in operating properties as a result of the sale of our Culver City office, a 15.8 million decrease due to depreciation and amortization, and a 20.7 million decrease in operating lease right-of-use assets. As of December 31st, 2024, our total outstanding borrowings of $202.7 million compared to $210.3 million on December 31st, 2023.

Allen: This decrease was driven by a $2 $8 million decrease in cash and cash equivalent and receivables from which.

Allen: Funded our ongoing business operations.

Allen: The $10 $1 million decrease in operating properties as a result of the sale of our Culver City office.

Allen: $15 $8 million decreased due to depreciation and amortization and a $27 million decrease in operating lease right of use assets.

Allen: As of December 31, 2024, our total outstanding borrowings of $202 7 million compared to $210 3 million on December 31 2023.

Allen: Our cash and cash equivalents as of December 31, 2024 were $12 3 million, which includes approximately $5 million and U S. $6 4 million Australian dollars 9 million in New Zealand.

Gilbert Avanes: Our cash and cash equivalent as of December 31st, 2024 were $12.3 million, which includes approximately $5 million in the U.S., $6.4 million in Australia, and $0.9 million in New Zealand.

Allen: Further to address liquidity pressure on our business, we are working on our lenders to amend certain debt facilities and we have selected certain real estate assets for potential monetization and I've listed them for sale.

Gilbert Avanes: Further, to address liquidity pressure on our business, we are working on our lenders to amend certain debt facilities, and we have selected certain real estate assets for potential monetization and have listed them for sale. During the first quarter of 2024, we completed the monetization of our Culver City, L.A. office building for $10 million and fully discharged the related mortgage with citizens.

Allen: During the first quarter of 2024, we completed the monetization for Culver City L. A office building for $10 million in fully discharged their related mortgage with citizens.

Allen: During 2024, and the first quarter of 2025, we made progress with our lenders on the following financing arrangement.

Gilbert Avanes: During 2024 and the first quarter of 2025, we made progress with our lenders on the following financing arrangements. And Tandir, on August 1st, 2024, we extended the maturity to June 1st, 2025, and two required $250,000 principal payments were repaid on August 23rd, 2024, and December 27th, 2024, respectively. Bank of America, on March 27, 2024, we extended our Bank of America loan maturity date to August 18, 2025, together with modification of certain financial covenants. We've been working with banks to defer monthly payments and following the sale of our Courtney property, we repaid 6.1 million of our Bank of America loan on February 5th, 2025.

Allen: Yeah.

Allen: And then there on August one 2024, we extended the maturity to June one 2025 and to require 250000 principal payments were repaid on August 23, 2024, and December 27 2024, respectively.

Allen: Bank of America on March 27, 2024, we extended our bank of America loan maturity date to August 18, 2025, together with modification of certain financial covenants.

Allen: Working with banks to defer monthly payments and following the sale of our Cortney property, we repaid $6 1 million of Bank of America loan on February five 2024 ish.

Allen: Valley National on October one 2024, we obtained two further six months extension.

Gilbert Avanes: On Valley National, on October 1st, 2024, we obtained two further six-month extension. for our loan with Valley National. We exercise the second extension on February 26th, 2025 with maturity updates to October 1st, 2025. We have increased our cash deposit with Valley National by $1 million to a balance of approximately $2.1 million.

Allen: For our loan with Valeant National we exercised the second extension on February 26, 2025 with maturity updates to October one 2025.

Allen: We have increased our cash deposit with Ravi national by $1 million.

Allen: To a balance of approximately $2 1 million.

Allen: MRO Creek capital.

Allen: On April 23, 2024, we exercise the one year extension option.

Gilbert Avanes: Emerald Creek Capital. On April 23rd, 2024, we exercised the one-year extension option. for the loans with Emerald Creek Capital to extend the maturity to May 6, 2025. Our plan is to exercise a further option to extend the maternity leave. Our National Australia Bank. On April 4, 2024, we extended the NAB loan maturity date to July 31, 2026. And NAB also provided a bridge facility of Australian $20 million. On June 28, 2024, we entered into an interest rate collar hedge agreement with NAB for an Australian $50 million, where the cap rate is 4.78% and the floor of 4.18%.

Allen: For the loans with Emerald Green capital to extend the maturity to May six 2025.

Allen: Our plan is to exercise a further option to extend the maturity.

Allen: Our National Australia Bank on April four 2024, we extended the NAV loan maturity date to July 31 2026.

Allen: <unk> also provided a bridge facility of Australia $20 million.

Allen: On June 28, 2024, we entered into an interest rate collar hedge agreement with NAV.

Allen: For an Australian 50 million with the cap rate is $4 seven 8% on the floor of $4 one 8%.

Allen: Termination date of the agreement is July 31, 2026 on December 17, 2024, we extended the maturity of Australian dollars $20 million Bridge facility from March 31 to April 30 of 2025.

Gilbert Avanes: Termination date of the agreement is July 31st, 2020. On December 17, 2024, we extended the maturity of Australian dollar 20 million bridge facility from March 31st to April 30th, 2025. On February 19, 2025, we executed an amendment to lower the liquidity requirements from $5 million to $2.5 million until April 30, 2025.

Allen: On February 19 2025.

Allen: Executed an amendment to lowered the liquidity requirements from 5 million to $2 5 million until April 32025.

Allen: Westpac.

Allen: On August 13, 2024, we increased our Westpac corporate credit facility by New Zealand dollars 5 million to New Zealand $18 8 million.

Gilbert Avanes: Westpac On August 13, 2024, we increased our Westpac corporate credit facility by NZ$5 million to NZ$18.8 million. On December 20, 2024, we extended the maturity to March 31, 2025. on January 31st, 2025, who repaid the loan and the loan was discharged.

Allen: On December 2000, 2024, we extended the maturity to March 31 2025.

Allen: On January 31, 2025, we repaid the loan and the loan was discharged.

Andre: I will now turn it over to Andre.

Andrzej Matyczynski: With that, I will now turn it over to Andrzej.

Andre: Thanks <unk>.

Andre: As usual I'd like to thank our stockholders for forwarding questions to our Investor Relations email and in addition to addressing many of your questions in the prepared remarks for melon and Gilbert we've selected a few additional questions to offer additional insights for management.

Andrzej Matyczynski: Thanks, Gilbert. As usual, I'd like to thank our stockholders for forwarding questions to our Investor Relations email. And in addition to addressing many of your questions in the prepared remarks from Ellen and Gilbert, we've selected a few additional questions to offer additional insights from managers.

Andre: The first question.

Andre: What are your capital allocation priorities for 2025, and how should we think about capex spending for this year and the next Helen.

Andrzej Matyczynski: The first question, what are your capital allocation priorities for 2025 and how should we think about CapEx spending for this year and the next?

Andre: In 2025, our highest priority is to reduce debt.

Ellen Cotter: Ellen? In 2025, our highest priority is to reduce debt. However, we are working on plans right now to upgrade at least four theaters, one in Australia, two in the U.S. and one in New Zealand. The upgrades would include converting certain auditoriums to luxury recliner seating and adding premium screens. But ultimately, the final execution of these plans will be subject to the strength of the box office over the next three quarters in 2025. and the execution of potential asset sales.

Andre: However, we are working on plans right now to upgrade at least four theaters one in Australia two in the U S and one in New Zealand.

Andre: At the upgrades would include converting certain auditoriums to luxury recliner seating in adding premium screens.

Andre: But ultimately the final execution of these plans will be subject to the strength of the box office over the next three quarters and 25.

Andre: And the execution of potential asset sales.

Kevin: Thanks, Kevin.

Kevin: <unk> received some stockholder questions about the size of our global cinema portfolio.

Andrzej Matyczynski: Thanks Ellen.

Ellen Cotter: We also received some stockholder questions about the size of our global cinema portfolio. What are the recent underperforming theatre closures? About how much annually will these closed theatres save the company in aggregate? How many Reading cinema screens remain on difficult leases or are underperforming such that they are candidates for a 2025 closure? And what are the expected cost savings of these decisions?

Kevin: Other recent underperforming theater closures about how much annually will these closed theaters save the company in aggregate.

Kevin: How many reading cinema screens remain on difficult leases or underperforming such that they are candidates for a 2025 closure and what are the expected cost savings of these decisions Allen.

Kevin: In 2025 are in the U S. We're closing one.

Ellen Cotter: In 2025, in the U.S., we're closing one U.S.-based cinema. We're closing it this month in April. Based on the box office trends over the last few years and the occupancy levels that would be required by the landlord, we'd expect a cash savings to be between $500,000 and a million dollars per year.

Kevin: Got you.

Kevin: U S based cinema that we're closing at this month in April.

Kevin: Based on the box office trends over the last few years and the occupancy levels that would be required by the landlord, we'd expected cash savings to be between $500000 and $1 billion per year.

Kevin: And New Zealand, we did close another theater, a small theater a few months ago and again, if you look at the box office trends over the last few years and the occupancy levels, we expect to save about maybe 100 to $200000 a yard.

Ellen Cotter: In New Zealand, we did close another theater, a small theater, a few months ago. And again, if you look at the box office trends over the last few years and the occupancy levels, we expect to save about maybe $100,000 to $200,000 a year.

Kevin: Right now we've got no immediate plans to close any other theaters in the U S, Australia or New Zealand, but I'll note that we are in communications for their landlords and if there was an opportunity to exit a lease without any sort of economic penalty for theater that doesn't have a consistent cash flow history, we would likely pursue.

Ellen Cotter: Right now, we've got no immediate plans to close any other theaters in the U.S., Australia or New Zealand, but I'll note that we are in communications with our landlords, and if there was an opportunity to exit a lease without any sort of economic penalty for a theater that doesn't have a consistent cash flow history, we would likely pursue that opportunity to continue to streamline our circuit. Thanks again, Ellen.

Kevin: That opportunity to continue to streamline our circuit.

Speaker Change: Thanks, again, Ellen while you're on the road can you handle this one is your Australian cinema development project in news.

Ellen Cotter: While you're on the roll, can you handle this one? Is your Australian cinema development project in Noosa still on track for 2026? Any other projected developments?

Speaker Change: <unk> still on track for 2026.

Speaker Change: Any other projected developments.

Speaker Change: The screen count timing and milestones, providing more info on the prospective projects known to be going forward.

Ellen Cotter: What are the screen count, timing and milestones providing more info on the prospective projects known to be going forward? Yes, we're still working with the Stockwell development team on the Reading Cinema in Noosa, which is in Queensland, Australia. The project, which includes the cinema, are in the town planning phase, phases right now.

Speaker Change: Yes, we're still working with the stock hub Stockwell development team on the reading cinema and news, though which is in Queensland, Australia. The project, which includes the cinema or in the town planning phase phases right now.

Speaker Change: And so today, we would expect the opening date to be pushed out a year or so so likely at 'twenty twenty-seven opening.

Ellen Cotter: And so today we would expect the opening date to be pushed out a year or so, so likely a 2027 opening. And in Australia, while we're always monitoring the market for new cinema opportunities, whether it's an acquisition, a new build, or a management deal, as of today, other than NUSA, we don't have any new deals to report to our stockholders.

Speaker Change: And in Australia, while we're always monitoring the market for new cinema opportunities, whether it's an acquisition a newbuild or a management deal as of today other than new so we don't have any new deals to report to our stockholders.

Speaker Change: Thanks, Ellen and I will finish up with this last question, which I'll field regarding.

Ellen Cotter: Thanks, Ellen.

Andrzej Matyczynski: And we'll finish up with this last question, which I'll field regarding the comment that we failed to follow through and deliver on our promise of two non-deal roadshows and an additional micro-cap investor conference before the year end of 2024. And we had earlier said it was working on and has done nothing to engage with broader set of investors in all of 2024. Explain why not. Well, we'll take the mea culpa, and rather than dwelling on the past, we have begun discussions with one of our analysts with a view to bringing to fruition the promised two non-deal roadshows during 2025.

Speaker Change: The comment that we failed to follow through and deliver on its on our promise of two non deal Roadshows and then there's issue Microcap Investor Conference before the year end of 2024, and we had earlier said it was working on that has done nothing to engage with a broader set of investors and all of 2024.

Speaker Change: Explain why not.

Speaker Change: Well, we'll take the maricopa and rather than dwelling on the past we have begun discussions with one of our analyst with a view to bringing to fruition. The promise two non deal Roadshows during 2025.

Speaker Change: Furthermore, we are finalizing our participation in a microcap virtual conference for mid May of this year and then following these efforts we will reevaluate the way forward for our Investor Relations strategy.

Andrzej Matyczynski: Furthermore, we are finalising our participation in a micro-cap virtual conference for mid-May of this year.

Andrzej Matyczynski: And then, following these efforts, we will re-evaluate the way forward for our investor relations strategy.

Speaker Change: And that marks the conclusion of our call.

Speaker Change: We appreciate you listening to the call today, we thank you for your attention and we wish everyone. Good health and safe 2025. Thank you.

Andrzej Matyczynski: And that marks the conclusion of our call. We appreciate you listening to the call today. We thank you for attention and we wish everyone good health and a safe 2025. Thank you.