• It's like AMC Theatres combined with a commercial real estate developer.
• Think of it as Cinemark operating alongside a diversified real estate investment trust (REIT).

• Cinema Exhibition: Operating multiplex cinemas and film centers under various brands, providing film entertainment services to the public.
• Real Estate Development and Management: Developing, renting, and licensing a diverse portfolio of real estate assets including retail, commercial, office, and live theater properties.

Reading International (RDI) primarily sells to individuals through its Cinema Exhibition segment.

The major categories of individual customers it serves are:

1. General Moviegoers: Individuals, couples, and families attending mainstream and independent films across its diverse portfolio of cinema brands, including Reading Cinemas, Consolidated Theatres, State Cinema, Event Cinemas, and Rialto Cinemas. These customers seek general entertainment and movie-watching experiences.
2. Arthouse and Independent Film Enthusiasts: Patrons specifically drawn to the curated selection of independent, foreign, and specialized films offered by brands like the Angelika Film Center, who typically value unique cinematic experiences and artistic content.
3. Live Entertainment Audiences: Individuals attending live performances, theatrical productions, concerts, and other special events hosted at the company's live theater assets and entertainment-themed centers.

Ellen M. Cotter, Chief Executive Officer and President

Ellen M. Cotter joined Reading International in March 1998 and has served as Chief Executive Officer and President since January 8, 2016, following a period as interim CEO and President. Prior to her appointment, she spent over ten years as Chief Operating Officer of the company’s domestic cinema operations. Before joining Reading International, Ms. Cotter was a corporate attorney with the law firm White & Case in New York City for four years. She holds a Juris Doctor from Georgetown University Law Center and is a graduate of Smith College. Ms. Cotter also serves as a director of Cecelia Packing Corporation, a family-owned citrus grower, packer, and marketer.

Gilbert Avanes, Executive Vice President, Chief Financial Officer and Treasurer

Gilbert Avanes was appointed Executive Vice President, Chief Financial Officer, and Treasurer on November 5, 2019. He has been an employee of and consultant to Reading International since August 2007, serving as Interim Chief Financial Officer and Treasurer from January 2019 to November 2019. His previous roles within the company include Vice President of Financial Planning and Analysis and Senior Director of Financial Planning and Analysis.

Margaret Cotter, Chair of the Board and Executive Vice President-Real Estate Management and Development

Margaret Cotter joined Reading International's Board in September 2002 and was elected Chair of the Board on December 8, 2020. Since March 10, 2016, she has served as Executive Vice President-Real Estate Management and Development, overseeing the development, management, and leasing of the company’s real estate assets, including the 44 Union Square property. Prior to this, she was the owner and President of OBI, LLC, which managed Reading International’s live theatre operations and provided development services for its New York theatre and cinema properties. Ms. Cotter also served as President of Liberty Theaters, LLC. She is a former prosecutor for the Brooklyn District Attorney in New York and is a graduate of Georgetown University and Georgetown University Law Center.

Andrzej Matyczynski, Executive Vice President – Global Operations

Andrzej Matyczynski was appointed Executive Vice President – Global Operations on March 10, 2016. He previously served as Chief Financial Officer and Treasurer for Reading International from November 1999 until May 2015. Before joining the company, Mr. Matyczynski spent 20 years in various senior roles at Beckman Coulter Inc., a U.S.-based multi-national corporation. He holds a Master’s Degree in Business Administration from the University of Southern California.

Robert F. Smerling, President of US Cinemas

Robert F. Smerling has served as President of Reading International's domestic cinema operations since 1994, playing a role in the acquisition and development of all existing cinemas. Before joining Reading International, Mr. Smerling was the President of Loews Theaters, a wholly owned subsidiary of Sony, where he oversaw the operations of approximately 600 cinemas and the development of more than 25 new multiplex cinemas.

Here are the key risks to Reading International (RDI):

1. High Leverage, Debt Pressure, and Persistent Unprofitability

   Reading International faces significant financial challenges, primarily due to high debt levels and negative profitability. The company's net debt to EBITDA ratio is notably high, raising concerns about refinancing and interest costs, especially in a rising interest rate environment. Both operating margin and return on invested capital have remained negative, indicating struggles in covering fixed costs. As of September 30, 2025, the company reported negative stockholders' equity and a negative working capital position, underscoring constant pressure to manage short-term obligations. High interest bills have significantly weighed on the business, with interest payments exceeding EBITDA in some periods. The company is currently unprofitable and is not forecast to become profitable in the next three years.

2. Decline in Cinema Attendance and Intense Competition from Streaming Services

   The cinema exhibition segment, which is a major part of Reading International's business, is highly vulnerable to declining movie theater attendance and the increasing competition from streaming services. The industry's revenue is heavily dependent on the release of appealing films and consumers' willingness to spend on discretionary entertainment. The COVID-19 pandemic significantly impacted cinemas, leading to closures and sustained changes in audience behavior, with a portion of audiences not returning to regular moviegoing. The rise of streaming has led to consumers being accustomed to shorter windows between theatrical release and home viewing, and overall cinema-going is increasingly viewed as a "treat" rather than a routine outing.

3. Vulnerability to Macroeconomic Downturns and Shifting Real Estate Market Dynamics

   Both of Reading International's segments are susceptible to broader economic fluctuations. Cinema attendance is a discretionary expense, making it vulnerable during economic slowdowns. The real estate segment, which includes retail, commercial, and live theater assets, is also impacted by macroeconomic conditions such as recessions, which can lead to increased unemployment and businesses struggling to pay rent or terminating lease agreements, thereby increasing vacancy rates and reducing income for property owners. Furthermore, ongoing structural changes in the real estate market, such as the shift towards e-commerce impacting physical retail spaces, can affect property values and demand for their assets.

• The increasing prevalence of direct-to-streaming releases by major studios and the ongoing growth of subscription video-on-demand (SVOD) services, which offer a compelling alternative to theatrical viewing, directly threatens the cinema exhibition model by eroding the exclusive theatrical window and shifting consumer entertainment consumption habits.
• The widespread adoption of remote and hybrid work models has created an emerging threat to demand for traditional commercial office space, potentially impacting occupancy rates and rental income for Reading International's office building assets.

The addressable markets for Reading International's main products and services are sized as follows:

Cinema Exhibition Segment

• United States: The U.S. movie market was approximately USD 23.44 billion in 2024. The U.S. movie theaters market is anticipated to reach USD 20.11 billion in 2026.
• Australia: The Australian box office is forecast to exceed A$1 billion (approximately USD 650 million) in 2025.
• New Zealand: New Zealand's Cinemas industry revenue is projected to be approximately NZ$270.1 million (approximately USD 162.06 million) in 2025-26.

Real Estate Segment (includes Retail, Commercial, and Live Theater Assets)

• United States Commercial Real Estate: The U.S. commercial real estate market was valued at USD 22.5 trillion as of the fourth quarter of 2023 (total market value of assets).
• United States Live Theater: The U.S. Performing Art Companies Market size was USD 47.04 billion in 2024.
• Australia Real Estate (Commercial and Retail): The Australia Real Estate and Smart Retail Spaces Market is valued at USD 1,200 billion (based on a five-year historical analysis, likely representing total asset value). Commercial property transaction volumes in Australia reached A$49.8 billion (approximately USD 32.37 billion) in 2025. Retail investment volumes in Australia reached USD 11.3 billion in 2025.
• Australia Live Theater: The Musical & Theatre Productions industry in Australia is projected to be A$3.2 billion (approximately USD 2.08 billion) in 2026.
• New Zealand Commercial Real Estate (including retail and commercial): The total value of the commercial real estate market in New Zealand is anticipated to surpass NZ$400 billion (approximately USD 240 billion) in 2025.
• New Zealand Live Theater: The Performing Arts Operation market size in New Zealand is NZ$253.8 million (approximately USD 152.28 million) in 2025.

Expected Drivers of Future Revenue Growth for Reading International (RDI)

• Strategic Monetization and Development of Real Estate Assets: Reading International plans to drive revenue growth through the strategic monetization of its substantial real estate holdings, which includes selling non-core properties to reduce debt and free up capital for other investments. Furthermore, the development of key real estate projects, such as 44 Union Square in New York and Courtenay Central, is anticipated to generate significant revenue, with the U.S. Real Estate segment already showing a 35% increase in revenue in Q3 2025. This real estate development is considered a "unique, non-correlated growth driver" with "transformative potential" for the company.
• Post-Pandemic Recovery and Growth in Cinema Attendance and Ticket Sales: The company anticipates a strong recovery and growth in its cinema exhibition segment, particularly in 2026, fueled by an "exciting film slate including major franchises." The cinema industry, while still recovering, is seeing "rebounding cinema attendance" which is expected to contribute to increased ticket and concession sales.
• Enhancement of Cinema Offerings and Operational Efficiency: Reading International is focused on maximizing revenue from its existing cinema assets through "premium offerings, and digital enhancements." These improvements aim to enhance the customer experience, drive "improved per-visitor economics across all markets," and ultimately lead to higher revenue generated from their current cinema footprint.

Share Repurchases

• Reading International has not reported significant share repurchases over the last 3-5 years. The company's treasury shares remained constant at $(40,407) thousand in financial reports up to June 30, 2025.
• As of the fourth quarter of 2022, share repurchases were deferred to preserve capital.

Share Issuance

• Reading International has had minor share issuances, primarily related to employee incentive plans.
• In 2024, 85,139 Restricted Stock Units (RSUs) and 52,360 RSUs (related to the 2022 Compensation Plan) vested, resulting in $1.6 million in compensation expense recognized during 2023 and 2024.
• The company's additional paid-in capital increased from $157,751 thousand at December 31, 2024, to $158,696 thousand at June 30, 2025.

Outbound Investments

• Reading International made several strategic asset sales to reduce debt and improve liquidity.
• In January 2025, the company sold its Courtenay Central property in Wellington, New Zealand, for NZ$38 million (approximately US$23.5 million).
• In the second quarter of 2025, Reading International sold its Cannon Park property in Australia, generating a gain of $1.8 million.
• In early 2024, the administrative building in Culver City, California, was sold, freeing up approximately $1.3 million in cash after paying off associated debt.

Capital Expenditures

• In 2024, capital expenditures totaled $5.5 million.
• For 2023, the company invested $33.9 million in capital improvements.
• In 2022, Reading International allocated $6.3 million to upgrade and expand its cinema assets and $2.6 million for non-cinema real estate.
• For 2025, the highest priority for capital allocation is debt reduction, but plans include upgrading at least four theaters: one in Australia, two in the U.S., and one in New Zealand.