Description Of Business And Segment Reporting

9 Months Ended

Sep. 30, 2020

Description Of Business And Segment Reporting [Abstract]

Description Of Business And Segment Reporting

Note 1 – Description of Business and Segment Reporting

Our 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 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 our Company for which separate financial information is available and evaluated regularly by the Chief Executive Officer, the chief operating decision-maker of our 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 and nine months ended September 30, 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.

	Quarter Ended				Nine Months Ended
	September 30,				September 30,
(Dollars in thousands)	2020		2019		2020		2019
Revenue:
Cinema exhibition	$	7,339	$	66,663	$	54,866	$	196,885
Real estate		3,023		5,531		9,928		16,525
Inter-segment elimination		(171)		(1,808)		(1,953)		(5,524)
	$	10,191	$	70,386	$	62,841	$	207,886
Segment operating income (loss):
Cinema exhibition	$	(13,410)	$	5,951	$	(33,318)	$	17,715
Real estate		(844)		1,485		(1,464)		3,987
	$	(14,254)	$	7,436	$	(34,782)	$	21,702

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

	Quarter Ended				Nine Months Ended
	September 30,				September 30,
(Dollars in thousands)	2020		2019		2020		2019
Segment operating income (loss)	$	(14,254)	$	7,436	$	(34,782)	$	21,702
Unallocated corporate expense
Depreciation and amortization expense		(215)		(103)		(634)		(288)
General and administrative expense		(2,906)		(4,493)		(11,194)		(14,205)
Interest expense, net		(2,379)		(1,871)		(6,176)		(5,924)
Equity earnings of unconsolidated joint ventures		(97)		220		(292)		581
Gain (loss) on sale of assets		(1)		(1)		(1)		(1)
Other income (expense)		10		141		(186)		190
Income (loss) before income tax expense	$	(19,842)	$	1,329	$	(53,265)	$	2,055