Reading International Inc · NASDAQ:RDI
Reading International — Gabelli Funds 14th Annual Entertainment & Broadcasting Symposium 2022
42 slides from Reading International's conference presentation, Jun 2, 2022
Slide 1: Gabelli Funds 14th Annual Entertainment & Broadcasting Symposium
Gabelli Funds 14th Annual Entertainment & Broadcasting Symposium JUNE 2, 2022
Slide 2: Disclaimers
DISCLAIMERS Our comments today may contain forward-looking statements This presentation is intended to summarize the projects on which and management may make additional forward-looking we are working and our plan for moving our Company forward. statements in response to your questions. Such written
Slide 3: Financial Reconciliations
FINANCIAL RECONCILIATIONS We use EBITDA in the evaluation of our Company’s performance since we believe that in the United States for purposes of analyzing our profitability. The exclusion of various EBITDA provides a useful measure of financial performance and value. We believe this components, suc
Slide 4: Our Mission
OUR MISSION REAL ESTATE & CINEMA STRATEGICALLY DRIVE THE DEVELOPMENT AND OPERATION OF OUR INTERNATIONALLY DIVERSIFIED REAL ESTATE & CINEMA ASSETS TO CREATE LONG-TERM STOCKHOLDER VALUE 2022-2024 BUILD BACK OUR CINEMA BUSINESS & RE-FOCUS ON OUR REAL ESTATE DEVELOPMENT
Slide 5: Create Long-Term Stockholder Value
2022-2024 CREATE LONG-TERM STOCKHOLDER VALUE DUAL BUSINESS STRATEGY Real Estate & Cinemas INTERNATIONAL DIVERSIFICATION Australia, New Zealand & United States STRONG BALANCE SHEET Driven by Real Estate Portfolio EXPERIENCED MANAGEMENT TEAM Disciplined approach to growth DYNAMIC MANAGEMENT TEAM Dedi
Slide 6: Cinema & Real Estate Revenue
CINEMA & REAL ESTATE REVENUE SYNERGISTIC DIVERSIFICATION WILL CONTINUE TO SUPPORT OUR RECOVERY *GLOBAL PROPERTY 16% *GLOBAL PROPERTY 9% 91% *GLOBAL CINEMA 84% 2021 2020 *GLOBAL CINEMA U.S. AU 53% AU U.S. 47% 37% 44% 10% 9% NZ NZ As of December 31, 2021 and December 31, 2020 *Includes inter-segment r
Slide 7: Diversified Owner/Operator of Real Estate & Cinema Assets in Three Countries
DIVERSIFIED OWNER/OPERATOR OF REAL ESTATE & CINEMA ASSETS IN THREE COUNTRIES AUSTRALIA NEW ZEALAND UNITED STATES • 738,115 SF 3 mixed-use centers anchored by • 161,082 RSF Mixed-use center anchored by Reading • up to 73,113 RSF Newly constructed retail/office Reading Cinemas and 69 other third- Cine
Slide 8: We Continue to Believe in the Industry
• As our cinemas were permitted to open following WE CONTINUE TO COVID-19 closures, audiences have demonstrated an increasing willingness to return to movie theaters when quality, properly marketed BELIEVE IN THE INDUSTRY Hollywood movies, were available. • Global moviegoers will continue to embrace
Slide 9: Global Real Estate Strategy
GLOBAL REAL ESTATE STRATEGY 2022-2024 • Taking into account experiences from the 2020-2021 COVID-19 pandemic, we will execute operational, marketing, leasing and capital investment strategies to engage with our communities and increase the value of our real estate assets. • Complete the leasing of 4
Slide 10: U.S. Real Estate Portfolio
U.S. REAL ESTATE PORTFOLIO Up to 73,000 SF of net leasable area (inclusive of potential BOMA adjustments) comprised of retail & office 75% interest in a 21,000 SF NYC cinema building (with development potential of 80,000 SF, plus additional 16,000 SF of air rights) - Cinemas 123 9,000 SF Off Broadwa
Slide 11: Up to 73,113 SF of Retail/Office Space in Union Square Area of NYC
UP TO 73,113 SF OF RETAIL/OFFICE SPACE IN UNION SQUARE AREA OF NYC • On January 27, 2022, we entered into a long-term lease with a national retailer for the lower level, ground floor and second floor of the building. • With respect to the remaining floors, the NYC leasing market is showing signs of
Slide 12: Cinemas 123 New York City and Reading Viaduct Philadelphia
C I N E M A S 1 2 3 NEW YORK CITY PROPERTY ACROSS FROM BLOOMINGDALES • 7,900 SF gross land area • With inclusionary rights, we can build up to a maximum of approx. 96,000 RSF above grade. • Though NYC commercial markets have been heavily impacted by COVID-19, we are confident in the long-term outloo
Slide 13: 24,000 SF Office Building in Culver City, CA
5995 SEPULVEDA 24,000 SF OFFICE BLDG. IN CULVER CITY, CA • Culver City and neighboring Playa Vista are now home to Google, Facebook, Microsoft, IMAX, Vevo, Verizon, Electronic Arts, Sony, Apple, Amazon, HBO and TikTok. • 2022-2024 – Continue to operate and administer two floors: (i) the second floor
Slide 14: AU/NZ Real Estate Portfolio
AU/NZ REAL ESTATE PORTFOLIO 7 multi-tenanted properties featuring 270,680 RSF (25,147 m2) of third-party space 4 parcels improved with Reading Cinemas 202,652 SF (18,826 m2) 72 existing third-party tenants occupying 246,289 SF (22,881 m2) 10 current vacant third-party tenant spaces 24,387 SF (2,266
Slide 15: Key Assets Wellington, NZ's Capital City
KEY ASSETS WELLINGTON, NZ’S CAPITAL CITY TAKINA (under construction) On a consolidated basis and through various subsidiaries, we own 161,071 SF of land of which 85,000 SF is improved with the Courtenay Central building, which includes Reading Cinemas (temporarily closed for seismic reasons) and 53,
Slide 16: Key Property Assets - Wellington, Capital of New Zealand
KEY PROPERTY ASSETS - WELLINGTON, CAPITAL OF NEW ZEALAND Without incurring material development funds during the 2020-2021 COVID-19 pandemic, we continued to work through options to determine feasible development strategies. • In cooperation with the Wellington City Council: o We obtained, through o
Slide 17: AU Property Portfolio
2022-2024 AU PROPERTY PORTFOLIO PORTFOLIO SPACE CREATE TENANCY MIX APPEALING TO LOCAL COMMUNITIES MADE UP OF SUSTAINABLE, CREATE SPACES (INTERIOR AND EXTERIOR) COMMUNITY-CENTRIC OFFERS WHICH PROVIDE A CONNECTION WITH THE LOCAL COMMUNITY AS WELL AS LEASING DECISIONS WHICH SUPPORT CONVENIENCE EMPHASIZ
Slide 18: Global Cinema Strategy
GLOBAL CINEMA STRATEGY 2022 - 2024 Proactively adjust our operating, programming and marketing strategies to take into account the wide-ranging impacts of the 2020-2021 COVID-19 crisis, including building long-term guest confidence in a safe and responsible cinema environment. Improve operating inco
Slide 19: Global Cinema Portfolio
GLOBAL CINEMA PORTFOLIO 62 MOVIE THEATERS (510 SCREENS) ACROSS AUSTRALIA, NEW ZEALAND AND THE UNITED STATES AUSTRALIA NEW ZEALAND UNITED STATES • 26 locations / 202 screens • 12 locations / 70 screens • 24 locations / 238 screens • 4th largest exhibitor in terms of box office† • 3rd largest exhibito
Slide 20: Cinema Portfolio Differences from Peers
CINEMA PORTFOLIO DIFFERENCES FROM PEERS NZ 8% INTERNATIONAL PORTFOLIO US CINEMA REVENUE AU AND NZ ARE TWO STABLE ECONOMIES WITH STRONG LOCAL FILM AU US AU CINEMA REVENUE 50% PRODUCTION, ENHANCING PROGRAMMING LED BY HOLLYWOOD MOVIES 41% NZ CINEMA REVENUE • 50% of our Total Theater Revenues generated
Slide 21: Global Cinemas 2020-2022 Timeline
GLOBAL CINEMAS 2020 - 2022 TIMELINE C O V I D - 1 9 R E L A T ED T E M P O R A R Y C L O S UR ES A N D R E - O P E N I N GS A T M O N T H ' S E N D 9 9 9 9 9 9 8 9 8 9 9 9 9 9 9 9 8 8 26 26 26 26 23 23 9 8 25 25 25 9 22 22 19 15 16 12 11 9 9 9 16 23 24 24 16 22 23 23 21 21 21 22 22 22 22 23 23 16 19
Slide 22: Theatrical Box Office Will Survive
THEATRICAL BOX OFFICE WILL SURVIVE • Content is King • During a global pandemic, Spider-Man: No Way Home becomes third biggest movie ever at the domestic Box Office and sixth highest grossing movie of all time globally with $1.8B • Launched exclusively in theaters – Domestic Box Office through Febru
Slide 23: 2022 Strong Blockbuster Pipeline
2022 STRONG BLOCKBUSTER PIPELINE WILL SUPPORT GLOBAL CINEMA INDUSTRY RECOVERY
Slide 24: 2022 Non-Franchise Original Movies Fill Out Theatrical Slate
2022 NON-FRANCHISE ORIGINAL MOVIES FILL OUT THEATRICAL SLATE
Slide 25: 2023 & 2024 Movie Slate Is Encouraging
2023 & 2024 MO V I E S L A T E IS E N CO U RA G I N G 2023 THE MARVELS – 2/17/23 OPPENHEIMER – 7/21/23 DUNGEONS & DRAGONS – 3/3/23 ANT-MAN & THE WASP: QUANTUMANIA – 7/28/23 WONKA – 3/17/23 TEENAGE MUTANT NINJA TURTLES: THE NEXT CHAPTER – 8/11/23 GUARDIANS OF THE GALAXY 3 – 5/5/23 BLUE BEETLE – 8/18/
Slide 26: After Significant Investment in Our Cinema Portfolio, Circuit Is Ready
AFTER SIGNIFICANT INVESTMENT IN OUR CINEMA PORTFOLIO SINCE 2015, CIRCUIT IS READY FOR POST COVID-19 RECOVERY RECLINER SEATING • 46% of US screens feature Luxury Recliner Seating • 31% of AU/NZ screens feature Luxury Recliner Seating PREMIUM LARGE FORMAT (PLF) SCREENS • 33% of US theaters feature at
Slide 27: F&B Focus Drives Record Spend Per Patron Again
2021-2022 – F&B FOCUS DRIVES RECORD SPEND PER PATRON AGAIN RECORD F&B SPEND PER PATRON SET BY EACH DIVISION YTD AS OF 3/31/2022 (VS. YTD 3/31/2021) US US$7.72 (down 4%) AU AU$7.16 (up 15%) NZ NZ$5.86 (up 10%)
Slide 28: Reading Cinemas Development Pipeline Continues in AU
READING CINEMAS DEVELOPMENT PIPELINE CONTINUES IN AU THROUGH COVID-19 THREE NEW READING CINEMAS OPENED, ONE SCHEDULED TO OPEN BEFORE YEAR END AND ONE ANNOUNCED • Reading Cinemas with TITAN LUXE at DFO in Jindalee (QLD) • Reading Cinemas with TITAN LUXE at Millers Junction Village in Altona (VIC) • R
Slide 29: Future Focus on Expanding Angelika Brand
FUTURE FOCUS ON EXPANDING ANGELIKA BRAND REBRANDED CERTAIN THEATERS In 2021, we rebranded certain existing theaters with a strong and historic focus on curated specialty programming consistent with Angelika’s mission. Rebranding offers operational efficiencies and increased global audience for more
Slide 30: Future Focus on Expanding Angelika Brand
FUTURE FOCUS ON EXPANDING ANGELIKA BRAND FIRST NEW INTERNATIONAL STATE-OF-THE-ART ANGELIKA TO OPEN • First international Angelika Film Centre opens in Brisbane area (QLD) in late 2022 in the sophisticated mixed-use development, South City Square • 8 screens featuring all luxury recliners • Elevated
Slide 31: Recent International Films Generate Strong 2022 Specialty Box Office
RECENT INTERNATIONAL FILMS GENERATE STRONG 2022 SPECIALTY BOX OFFICE THE WORST PERSON IN THE WORLD (Neon) o U.S. release date February 4, 2022 o Norwegian film with $70,000 opening weekend at Angelika NYC box office DRIVE MY CAR (Janus Films) o First Japanese film nominated for Best Picture o As of
Slide 32: AU/NZ Film Production Supports Local Box Office
2020-2021 - AU/NZ FILM PRODUCTION SUPPORTS LOCAL BOX OFFICE WE ANTICIPATE AN INCREASING FUTURE CONTRIBUTION BY AU/NZ FILM PRODUCTION TO LOCAL EXHIBITORS THE DRY PENGUIN BLOOM RAMS SAVAGE COUSINS With A$20.8 million With A$7.5 million in box Generated A$4.7m in With NZ$1.6 million in With NZ$1.6 mill
Slide 33: Future Focus on Expanding Angelika Brand: Streaming Service
FUTURE FOCUS ON EXPANDING ANGELIKA BRAND STREAMING SERVICE LAUNCHES AU/NZ • Angelika Anywhere is a streaming service and digital video store curated for film lovers and inspired by the community that, for the last 30 years, has supported NYC’s Angelika Film Center, the most recognized dedicated arth
Slide 34: Future Focus on Expanding Angelika Brand: Membership Program
FUTURE FOCUS ON EXPANDING ANGELIKA BRAND MEMBERSHIP PROGRAM LAUNCHES IN US • The State Cinema by Angelika Membership Program is a paid annual membership program. • In April 2022, we launched our Angelika Membership Program in the US.
Slide 35: Continuation of Certain COVID-19 Initiatives
CONTINUATION OF CERTAIN COVID-19 INITIATIVES: CONTACTLESS TRANSACTIONS • As communities faced COVID-19 challenges, we attempted to provide contact-free alternatives in our cinemas. • In Q4 2020, we launched ordering F&B online on our US based app. We are further refining the US based app to ensure t
Slide 36: Financial Review
FINANCIAL REVIEW GILBERT AVANES EXECUTIVE VICE PRESIDENT, CHIEF FINANCIAL OFFICER & TREASURER
Slide 37: Summary Financial Data
SUMMARY FINANCIAL DATA Source: Form 10-Q for the quarter ended March 31, 2022. (1) For Adjusted EBITDA, for YTD Mar 2021 we have added back legal fees of $0.02 million.
Slide 38: Summary Financial Data
SUMMARY FINANCIAL DATA Source: Form 10-K for year ended December 31, 2021. (1) For Adjusted EBITDA, for 2021 we have removed legal fees of ($0.05) million and for 2020 we have removed legal fees of ($0.4) million..
Slide 39: Summary Balance Sheet
SUMMARY BALANCE SHEET Source: Form 10-Q for the quarter ended March 31, 2022, and Form 10-K for the year ended December 31, 2021.
Slide 40: Reading International Debt Summary
READING INTERNATIONAL DEBT DEBT SUMMARY Source: Form 10-K for the year ended December 31, 2021. (1) On May 7, 2021, the loan was converted to a new loan facility. (2) The $12,000 in unused capacity is restricted for the 44 Union Square redevelopment project. (3) The Bank of America credit facility w
Slide 41: 2001-2021 Yearly Financial Trend in US$
2001- 2021 YEARLY FINANCIAL TREND in US$ Notes: Data presented above have been adjusted to reflect adjustments, if any, to prior years based on the latest K’s and Q’s. *Asset Value reflects amounts set forth in Reading public filings (10-Ks and 10-Qs). In many instances, the amounts do not reflect t
Slide 42: Thank You
THANK YOU WE ARE STILL HERE OUR REAL ESTATE IS STRONG OUR CINEMAS ARE RECOVERING
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