Description Of Business And Segment Reporting

12 Months Ended

Dec. 31, 2020

Description Of Business And Segment Reporting [Abstract]

Description Of Business And Segment Reporting

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 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 Australia, New Zealand, and the United States.

Business Segments

Our business is comprised of two operating segments, as follows: (i) cinema exhibition and (ii) real estate. Each of these segments has discrete and separate financial information and for which operating results are evaluated regularly by our Chief Executive Officer, the chief operating decision-maker of the Company. As part of our real estate segment, we acquired, and held, raw land in urban and suburban centers in New Zealand, Australia and the United States as of December 31, 2020.

The tables below summarize the results of operations for each of our business segments. 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.

	2020						2019						2018
(Dollars in thousands)	Cinema		Real ‎Estate		Total		Cinema		Real ‎Estate		Total		Cinema		Real ‎Estate		Total
Revenue - third party	$	67,014	$	10,848	$	77,862	$	262,189	$	14,579	$	276,768	$	293,723	$	15,208	$	308,931
Inter-segment revenue (1)		—		2,115		2,115		—		7,326		7,326		—		9,027		9,027
Total segment revenue		67,014		12,963		79,977		262,189		21,905		284,094		293,723		24,235		317,958
Operating expense
Operating Expense - Third Party		(91,065)		(8,578)		(99,643)		(210,050)		(9,453)		(219,503)		(225,791)		(9,904)		(235,695)
Inter-Segment Operating Expenses (1)		(2,115)		—		(2,115)		(7,326)		—		(7,326)		(9,027)		—		(9,027)
Total of services and products (excluding depreciation and amortization)		(93,180)		(8,578)		(101,758)		(217,376)		(9,453)		(226,829)		(234,818)		(9,904)		(244,722)
Depreciation and amortization		(15,246)		(6,101)		(21,347)		(16,940)		(5,393)		(22,333)		(16,314)		(5,567)		(21,881)
Impairment of long-lived assets		(217)		—		(217)		—		—		—		—		—		—
General and administrative expense		(3,427)		(747)		(4,174)		(4,544)		(1,918)		(6,462)		(3,724)		(2,326)		(6,050)
Total operating expense		(112,070)		(15,426)		(127,496)		(238,860)		(16,764)		(255,624)		(254,856)		(17,797)		(272,653)
Segment operating income (loss)	$	(45,056)	$	(2,463)	$	(47,519)	$	23,329	$	5,141	$	28,470	$	38,867	$	6,438	$	45,305

(1)Inter-segment Revenues and Operating Expense relates to the internal charge between the two segments where the cinema operates within real estate owned within the group.

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

(Dollars in thousands)	2020		2019		2018
Segment operating income (loss)	$	(47,519)	$	28,470	$	45,305
Unallocated corporate expense:
Depreciation and amortization expense		(970)		(414)		(394)
General and administrative expense		(12,824)		(18,933)		(21,287)
Interest expense, net		(9,354)		(7,904)		(6,837)
Equity earnings (loss) of unconsolidated joint ventures		(449)		792		974
(Loss) gain on sale of assets		(1)		(2)		(41)
Other (expense) income		293		325		(256)
Income (loss) before income taxes	$	(70,824)	$	2,334	$	17,464

Assuming cash and cash equivalents are accounted for as corporate assets, total assets by business segment and by country are presented as follows:

	December 31,
(Dollars in thousands)	2020		2019
By segment:
Cinema	$	357,196	$	364,905
Real estate		312,832		295,213
Corporate (1)		20,141		14,871
Total assets	$	690,169	$	674,989
By country:
United States	$	340,836	$	356,191
Australia		267,153		248,031
New Zealand		82,180		70,767
Total assets	$	690,169	$	674,989

(1)Corporate Assets includes cash and cash equivalents of $26.8 million and $12.1 million as of December 31, 2020 and 2019, respectively.

The following table sets forth our operating properties by country:

	December 31,
(Dollars in thousands)	2020		2019
United States	$	182,416	$	91,704
Australia		144,573		137,677
New Zealand		26,136		28,757
Total operating property	$	353,125	$	258,138

The table below summarizes capital expenditures for the three years ended December 31, 2020:

(Dollars in thousands)	2020		2019		2018
Segment capital expenditures	$	16,686	$	47,555	$	56,795
Corporate capital expenditures		73		167		32
Total capital expenditures	$	16,759	$	47,722	$	56,827