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Reading International Inc (RDI)
NASDAQ:RDI
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Reading International
(NASDAQ:RDI)
48Neutral
Reading International (RDI) vs. S&P 500 (SPY)
Market Cap
$40.60M
Dividend YieldN/A
Average Volume (3M)46.57K
Price to Earnings (P/E)―
Beta (1Y)0.56
Revenue Growth-12.18%
EPS Growth-31.50%
CountryUS
Employees2,005
SectorCommunication Services
Sector Strength79
IndustryTraditional Media
Share Statistics
EPS (TTM)-1.87
Shares Outstanding20,745,594
10 Day Avg. Volume22,817
30 Day Avg. Volume46,571
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.15
Price to Cash Flow (P/CF)5.50
P/FCF Ratio1.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$2.50Price Target Upside90.84% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Reading International Business Overview & Revenue Model
Company DescriptionReading International (RDI) is a diversified entertainment and real estate company. It operates in two main sectors: cinema exhibition and real estate. RDI owns and manages a portfolio of cinemas primarily in the United States, Australia, and New Zealand, offering moviegoers a wide range of films and related entertainment experiences. Additionally, the company invests in, develops, and manages real estate properties, including retail and commercial spaces, which complement its cinema operations.
How the Company Makes MoneyReading International generates revenue through its cinema exhibition segment by selling movie tickets, concessions, and other related services to patrons. A significant portion of its income comes from box office ticket sales and the sale of food and beverages at its theater locations. The company's real estate segment contributes to its earnings by leasing retail and commercial spaces, thereby generating rental income. The strategic positioning of its properties enhances their value, providing RDI with opportunities for appreciation and further development. Partnerships with film distributors and real estate developers play a crucial role in sustaining and expanding its revenue streams.
Reading International Financial Statement Overview
Summary
Reading International faces significant financial challenges across all verticals, with declining revenues, high leverage, and negative profit margins. The company's liquidity and operational efficiency are areas of concern, with a need for strategic adjustments to improve financial health and stability.Income Statement
Reading International's income statement shows a declining revenue trend with a negative net profit margin in the TTM period. The gross profit margin has significantly decreased, indicating rising costs or declining sales. Negative EBIT and EBITDA margins further highlight operational challenges. The company's revenue growth has been inconsistent, with a notable decline in the latest TTM period.35
Negative
Balance Sheet
The balance sheet reflects a high debt-to-equity ratio, showcasing significant leverage which could pose financial risks. Stockholders' equity has decreased substantially, reducing the equity ratio. The return on equity is negative due to sustained losses, indicating inefficiencies in generating returns on shareholders' investments.30
Negative
Cash Flow
Operating cash flow is negative, reflecting potential liquidity issues, although free cash flow has slightly improved. The cash flow to net income ratios are unfavorable, suggesting difficulties in converting income into cash flow. However, the company has managed to reduce capital expenditures, slightly aiding free cash flow.40
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 197.27M | 222.74M | 203.12M | 139.06M | 77.86M | 276.77M | Gross Profit |
| 1.02M | 26.56M | 15.40M | 6.05M | -21.78M | 57.27M | EBIT |
| -19.09M | -12.03M | -19.85M | -41.79M | -61.31M | 9.12M | EBITDA |
| -2.30M | 9.12M | 1.40M | 100.34M | -17.80M | 32.99M | Net Income Common Stockholders |
| -41.87M | -30.67M | -36.66M | 31.92M | -65.86M | -26.50M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 13.13M | 13.17M | 29.96M | 83.25M | 26.85M | 12.13M | Total Assets |
| 439.03M | 533.05M | 587.05M | 687.70M | 690.17M | 674.99M | Total Debt |
| 162.74M | 418.77M | 443.61M | 481.09M | 524.14M | 450.56M | Net Debt |
| 149.61M | 405.87M | 413.66M | 397.84M | 497.31M | 438.42M | Total Liabilities |
| 258.48M | 500.06M | 523.78M | 582.64M | 609.00M | 535.37M | Stockholders Equity |
| 176.21M | 33.09M | 62.86M | 104.07M | 77.77M | 135.35M |
| Cash Flow | Free Cash Flow | ||||
| -15.76M | -15.08M | -35.74M | -29.05M | -48.73M | -21.10M | Operating Cash Flow |
| -15.55M | -9.73M | -26.35M | -13.50M | -30.20M | 24.61M | Investing Cash Flow |
| 8.48M | -2.70M | -9.49M | 129.61M | -18.77M | -51.93M | Financing Cash Flow |
| -289.00K | -6.67M | -16.56M | -50.28M | 59.33M | 26.01M |
Reading International Technical Analysis
Negative
1.31
Price Trends
1.47
Negative
1.47
Negative
1.51
Negative
Market Momentum
-0.05
Positive
37.99
Neutral
22.73
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RDI, the sentiment is Negative. The current price of 1.31 is below the 20-day moving average (MA) of 1.45, below the 50-day MA of 1.47, and below the 200-day MA of 1.51, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 37.99 is Neutral, neither overbought nor oversold. The STOCH value of 22.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RDI.
Reading International Risk Analysis
Reading International disclosed 9 risk factors in its most recent earnings report. Reading International reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Reading International Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $3.96B | 32.84 | 6.11% | 6.45% | -1.01% | -18.46% | |
71 Outperform | $1.31B | 51.38 | 9.10% | ― | -6.04% | 6.43% | |
65 Neutral | $2.97B | 11.96 | 67.31% | ― | -0.56% | 63.92% | |
59 Neutral | $29.20B | 0.14 | -13.78% | 4.02% | 2.18% | -51.50% | |
50 Neutral | $1.28B | ― | 20.03% | ― | -3.64% | 48.94% | |
48 Neutral | $40.60M | ― | -177.51% | ― | -12.18% | -31.50% | |
48 Neutral | $509.37M | ― | -5.27% | ― | 45.67% | -100.72% |
* Communication Services Sector Average
Performance Comparison
RDI
Reading International
1.31
-0.48
-26.82%
CNK
Cinemark Holdings
24.06
5.99
33.15%
IMAX
IMAX
24.23
7.42
44.14%
NCMI
National Cinemedia
5.35
1.48
38.24%
EPR
EPR Properties
52.01
12.27
30.88%
AMC
AMC Entertainment
2.97
-1.37
-31.57%
Reading International Earnings Call Summary
Earnings Call Date: Nov 14, 2024 | % Change Since: -6.43% | Next Earnings Date: Mar 25, 2025
Earnings Call Sentiment Neutral
The earnings call presented mixed results with significant positive trends such as a substantial increase in global revenue, reduction in operating losses, and positive adjusted EBITDA. However, these were offset by notable challenges including a decrease in consolidated revenue, increase in net loss, and declines in U.S. and New Zealand cinema revenues. The company demonstrated resilience with improvements in certain areas while facing ongoing challenges.Highlights
Global Revenue Growth
Q3 2024 global total revenue of $60.1 million was 28% higher than Q2 2024, 33% higher than Q1 2024, and 33% higher than Q4 2023.
Reduction in Global Operating Loss
Reduced global operating loss to $246,000 from $4.35 million in Q2 2024, $7.57 million in Q1 2024, and $6.95 million in Q4 2023.
Positive Adjusted EBITDA
Q3 2024 adjusted EBITDA of just under $3 million, marking the first positive adjusted EBITDA over the last three quarters.
Australian Cinema Revenue Record
Australian Cinema revenue of AUD 37 million marked the best third-quarter performance ever.
Increase in Global Real Estate Operating Income
Global Real Estate operating income increased by 52% to $1.4 million from $920,000 in Q3 2023.
Lowlights
Decrease in Consolidated Revenue
Consolidated revenue for the quarter ended September 30, 2024 decreased by $6.5 million compared to Q3 2023.
Increase in Net Loss
Net loss for the quarter ended September 30, 2024 was $6.9 million compared to $4.4 million in Q3 2023.
Decrease in U.S. Cinema Revenue
U.S. Cinema revenue decreased by 19% to $27.8 million compared to Q3 2023.
Decrease in New Zealand Cinema Revenue
New Zealand Cinema revenues decreased by 11% to USD 3.8 million versus Q3 2023.
Increase in Basic Loss Per Share
Basic loss per share increased by $0.11 to a loss of $0.31 compared to a loss of $0.20 for Q3 2023.
Company Guidance
In the third quarter 2024 earnings call for Reading International, several key financial metrics were highlighted that reflect the company's performance trajectory. The global total revenue for Q3 2024 was $60.1 million, marking a 28% increase from Q2 2024 and a 33% increase from both Q1 2024 and Q4 2023, despite being less than 10% lower than the third quarter of 2023. Cinema revenue was notably strong, driven by successful releases like "Deadpool & Wolverine" and "Despicable Me 4," with the former becoming the highest grossing R-rated movie of all time. The adjusted EBITDA for Q3 2024 was just under $3 million, a positive shift from the negative figures of previous quarters. However, challenges remain, particularly in the U.S. cinema segment, where revenue decreased by 19% to $27.8 million compared to Q3 2023, largely due to a 10% reduction in screen count and weaker film performance. Despite these challenges, the Australian Cinema division reported its best third quarter performance ever with revenue of AUD 37 million. The company's real estate segment also showed strength, with operating income up 52% compared to Q3 2023, driven by the performance of its Australian portfolio. The call emphasized strategic initiatives such as asset sales to reduce debt and the introduction of a new rewards program, aiming to position Reading International for improved performance in 2025 and beyond.Reading International Corporate Events
Shareholder MeetingsBusiness Operations and Strategy
Reading International Holds Successful 2024 Annual Meeting
Positive
Dec 10, 2024
Reading International, Inc. held its 2024 Annual Meeting, where stockholders approved an amendment to increase shares under the 2020 Stock Plan, elected directors, ratified the appointment of Grant Thornton LLP as the independent auditor, and approved executive compensation. These decisions are aimed at supporting the company’s liquidity and operational strategies, reflecting Reading International’s commitment to maintaining and enhancing its industry position and financial performance.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.