Note 1 – Description of Business and Segment Reporting

The Company

Reading International, Inc., a Nevada corporation (“RDI” and collectively with our consolidated subsidiaries and corporate predecessors, the “Company,” “Reading,” and “we,” “us,” or “our”) was incorporated in 1999. Our businesses consist primarily of:

the development, ownership, and operation of multiplex cinemas in the United States, Australia, and New Zealand; and,

the development, ownership, operation and/or rental of retail, commercial and live venue real estate assets in the United States, Australia, and New Zealand.

Business Segments

Reported below are the operating segments of the Company for which separate financial information is available and evaluated regularly by the Chief Executive Officer, the chief operating decision-maker of the Company. As part of our real estate activities, we hold undeveloped land in urban and suburban centers in the United States, Australia, and New Zealand.

The table below summarizes the results of operations for each of our business segments for the quarter ended March 31, 2020 and 2019, respectively. Operating expense includes costs associated with the day-to-day operations of the cinemas and the management of rental properties, including our live theatre assets.



	Three Months Ended
	March 31,
(Dollars in thousands)	2020		2019
Revenue:
Cinema exhibition	$	46,310	$	57,927
Real estate		4,602		5,431
Inter-segment elimination		(1,684)		(1,866)
	$	49,228	$	61,492
Segment operating income (loss):
Cinema exhibition	$	(2,654)	$	2,583
Real estate		187		1,159
	$	(2,467)	$	3,742

A reconciliation of segment operating income to income before income taxes is as follows:



	Three Months Ended
	March 31,
(Dollars in thousands)	2020		2019
Segment operating income (loss)	$	(2,467)	$	3,742
Unallocated corporate expense
Depreciation and amortization expense		(192)		(61)
General and administrative expense		(4,380)		(5,041)
Interest expense, net		(1,789)		(1,852)
Equity earnings of unconsolidated joint ventures		78		34
Other income (expense)		(218)		(20)
Income (loss) before income tax expense	$	(8,968)	$	(3,198)