Segment Reporting

6 Months Ended

Jun. 30, 2025

Segment Reporting [Abstract]

Segment Reporting

NOTE 4 – SEGMENT REPORTING

We report information about operating segments in accordance with ASC 280-10 Segment Reporting, which requires financial information to be reported based on the way management organizes segments with a company for making operating decisions and evaluating performance. We have organized our business into two reportable segments, being cinema exhibition and real estate.

Our cinema exhibition segment aggregates all our cinemas, both leased and owned, across the United States, Australia and New Zealand. Each of our cinemas earns revenue through the sale of movie tickets, food and beverage, screen advertising, theater rentals, merchandise, gift card and loyalty membership, and other ancillary sales. The segment also earns revenue through service fees related to online ticket sales. Expenses are incurred through film rent, wages and salaries, food and beverage costs, occupancy costs, utilities, and other ancillary costs. We further organize this segment by geography, as while all our cinemas are engaged in substantially the same business activities, each geography is subject to its own unique regulatory and business conditions.

Our real estate segment aggregates all our retail, commercial and live theater real estate assets across Australia, New Zealand, and the United States. Our retail and commercial real estate assets earn revenue through the leasing or licensing of space to third party tenants.

Our live theater assets in the United States earn revenue through leasing or licensing space to third party production companies, an activity we consider sufficiently similar to our broader real estate base to support inclusion in our real estate segment. Our live theatre operations also earn revenue by providing front of house and box office services and through concession sale of food and beverage. All of our real estate assets incur expenses from property maintenance, utilities, taxes, and other costs of maintaining real estate and in some cases third party property management. Most of our real estate is currently self-managed.

Each of these segments has discrete and separate financial information and for which operating results are evaluated regularly by our President, Chief Executive Officer and Vice Chair of Board and Director, the chief operating decision-maker (“CODM”) of the Company. The CODM is responsible for the allocation of resources to, and the assessment of the performance of, our operating segments. The CODM determines, among other things:

-the execution, renewal or termination of cinema leases

-the execution, renewal or termination of third-party tenant leases

-significant capital expenditures

-internal resource allocation

-operational budgets.

Segment operating income is a key measure of profit or loss used by the CODM to assess segment performance and allocate resources. Segment operating income includes certain amounts charged by our real estate segment to our cinema exhibition segment where a cinema exhibition is a tenant of the real estate segment. These charges are eliminated for consolidated financial statement purposes in the consolidated income statement, but are presented gross to the CODM. We do not report asset information by segment because that information is not used to evaluate the performance or allocate resources between segments.

The tables below summarize the results of operations for each of our business segments, presenting a reconciliation of segment revenue to operating segment income, and the impact of inter-segment transactions.

	Quarter Ended						Quarter Ended						Six Months Ended						Six Months Ended
	June 30, 2025						June 30, 2024						June 30, 2025						June 30, 2024
(Dollars in thousands)	Cinema		Real ‎Estate		Total		Cinema		Real ‎Estate		Total		Cinema		Real ‎Estate		Total		Cinema		Real ‎Estate		Total
Revenue - third party	$	56,782	$	3,596	$	60,378	$	42,941	$	3,867	$	46,808	$	93,186	$	7,361	$	100,547	$	84,213	$	7,648	$	91,861
Inter-segment revenue (1)		—		1,057		1,057		—		1,146		1,146		—		2,137		2,137		—		2,298		2,298
Total segment revenue		56,782		4,653		61,435		42,941		5,013		47,954		93,186		9,498		102,684		84,213		9,946		94,159
Operating expense
Operating Expense - Third Party		(46,883)		(1,840)		(48,723)		(42,757)		(2,461)		(45,218)		(83,460)		(3,795)		(87,255)		(83,477)		(4,696)		(88,173)
Inter-Segment Operating Expenses (1)		(1,057)		—		(1,057)		(1,146)		—		(1,146)		(2,137)		—		(2,137)		(2,298)		—		(2,298)
Total of services and products (excluding depreciation and amortization)		(47,940)		(1,840)		(49,780)		(43,903)		(2,461)		(46,364)		(85,597)		(3,795)		(89,392)		(85,775)		(4,696)		(90,471)
Depreciation and amortization		(2,172)		(1,125)		(3,297)		(2,554)		(1,358)		(3,912)		(4,312)		(2,226)		(6,538)		(5,141)		(2,874)		(8,015)
General and administrative expense		(1,217)		(209)		(1,426)		(1,093)		(248)		(1,341)		(2,298)		(403)		(2,701)		(2,072)		(539)		(2,611)
Total operating expense		(51,329)		(3,174)		(54,503)		(47,550)		(4,067)		(51,617)		(92,207)		(6,424)		(98,631)		(92,988)		(8,109)		(101,097)
Segment operating income (loss)	$	5,453	$	1,479	$	6,932	$	(4,609)	$	946	$	(3,663)	$	979	$	3,074	$	4,053	$	(8,775)	$	1,837	$	(6,938)

(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 cinema exhibition segment revenue to segment operating income for the quarter and six months ended June 30, 2025 and June 30, 2024, is as follows:

			Quarter Ended				Six Months Ended
(Dollars in thousands)			June 30, 2025		June 30, 2024		June 30, 2025		June 30, 2024
REVENUE
	United States	Admissions revenue	$	16,099	$	11,681	$	26,344	$	23,922
		Concessions revenue		11,274		7,452		17,382		14,413
		Advertising and other revenue		2,885		2,347		4,827		4,450
			$	30,258	$	21,480	$	48,553	$	42,785
	Australia	Admissions revenue	$	14,275	$	10,851	$	23,905	$	21,113
		Concessions revenue		7,213		6,348		12,069		12,114
		Advertising and other revenue		1,421		1,344		2,617		2,640
			$	22,909	$	18,543	$	38,591	$	35,867
	New Zealand	Admissions revenue	$	2,338	$	1,744	$	3,884	$	3,344
		Concessions revenue		1,135		1,013		1,901		1,923
		Advertising and other revenue		142		161		257		294
			$	3,615	$	2,918	$	6,042	$	5,561

	Total revenue		$	56,782	$	42,941	$	93,186	$	84,213
OPERATING EXPENSE
	United States	Film rent and advertising cost	$	(9,108)	$	(6,272)	$	(14,166)	$	(12,411)
		Food & beverage cost		(2,931)		(2,012)		(4,514)		(3,919)
		Occupancy expense		(4,420)		(6,545)		(8,387)		(12,332)
		Labor cost		(4,212)		(4,002)		(8,293)		(8,150)
		Utilities		(1,332)		(1,337)		(2,551)		(2,645)
		Cleaning and maintenance		(1,754)		(1,656)		(3,295)		(3,083)
		Other operating expenses		(2,321)		(2,094)		(4,468)		(4,219)
			$	(26,078)	$	(23,918)	$	(45,674)	$	(46,759)
	Australia	Film rent and advertising cost	$	(6,586)	$	(4,947)	$	(10,542)	$	(9,395)
		Food & beverage cost		(1,531)		(1,435)		(2,606)		(2,709)
		Occupancy expense		(4,511)		(4,538)		(8,805)		(8,940)
		Labor cost		(3,425)		(3,442)		(6,732)		(6,715)
		Utilities		(651)		(640)		(1,493)		(1,452)
		Cleaning and maintenance		(1,154)		(1,173)		(2,304)		(2,377)
		Other operating expenses		(799)		(908)		(1,574)		(1,780)
			$	(18,657)	$	(17,083)	$	(34,056)	$	(33,368)
	New Zealand	Film rent and advertising cost	$	(1,141)	$	(752)	$	(1,789)	$	(1,434)
		Food & beverage cost		(269)		(225)		(416)		(430)
		Occupancy expense		(737)		(783)		(1,471)		(1,543)
		Labor cost		(579)		(593)		(1,113)		(1,155)
		Utilities		(136)		(101)		(234)		(198)
		Cleaning and maintenance		(196)		(189)		(390)		(393)
		Other operating expenses		(147)		(259)		(454)		(495)
			$	(3,205)	$	(2,902)	$	(5,867)	$	(5,648)
	Total operating expense		$	(47,940)	$	(43,903)	$	(85,597)	$	(85,775)
DEPRECIATION, AMORTIZATION, GENERAL AND ADMINISTRATIVE EXPENSE
	United States	Depreciation and amortization	$	(1,157)	$	(1,250)	$	(2,278)	$	(2,521)
		General and administrative expense		(731)		(738)		(1,456)		(1,373)
			$	(1,888)	$	(1,988)	$	(3,734)	$	(3,894)
	Australia	Depreciation and amortization	$	(905)	$	(1,192)	$	(1,819)	$	(2,382)
		General and administrative expense		(427)		(355)		(772)		(699)
			$	(1,332)	$	(1,547)	$	(2,591)	$	(3,081)
	New Zealand	Depreciation and amortization	$	(111)	$	(112)	$	(214)	$	(238)
		General and administrative expense		(58)		—		(71)		—
			$	(169)	$	(112)	$	(285)	$	(238)
	Total depreciation, amortization, general and administrative expense		$	(3,389)	$	(3,647)	$	(6,610)	$	(7,213)
OPERATING INCOME (LOSS) - CINEMA
	United States		$	2,292	$	(4,426)	$	(855)	$	(7,868)
	Australia			2,920		(87)		1,944		(582)
	New Zealand			241		(96)		(110)		(325)
	Total Cinema operating income (loss)		$	5,453	$	(4,609)	$	979	$	(8,775)

A reconciliation of real estate segment revenue to segment operating income for the quarter and six months ended June 30, 2025 and June 30, 2024, is as follows:

	Quarter Ended		Six Months Ended
(Dollars in thousands)	June 30, 2025	June 30, 2024	June 30, 2025	June 30, 2024

REVENUE
	United States	Live theater rental and ancillary income	$	630	$	416	$	1,173	$	828
		Property rental income		1,070		1,067		2,114		2,139
				1,700		1,483		3,287		2,967
	Australia	Property rental income		2,741		3,177		5,756		6,261
	New Zealand	Property rental income		212		353		455		718
	Total revenue		$	4,653	$	5,013	$	9,498	$	9,946
OPERATING EXPENSE
	United States	Live theater cost	$	(255)	$	(279)	$	(492)	$	(512)
		Occupancy expense		(174)		(160)		(352)		(354)
		Labor cost		—		—		—		—
		Utilities		16		(49)		(28)		(79)
		Cleaning and maintenance		(75)		(31)		(106)		(78)
		Other operating expenses		(264)		(279)		(430)		(621)
			$	(752)	$	(798)	$	(1,408)	$	(1,644)
	Australia	Occupancy expense	$	(479)	$	(478)	$	(967)	$	(968)
		Labor cost		(76)		(55)		(119)		(113)
		Utilities		(20)		(19)		(34)		(33)
		Cleaning and maintenance		(215)		(278)		(435)		(494)
		Other operating expenses		(198)		(299)		(456)		(531)
			$	(988)	$	(1,129)	$	(2,011)	$	(2,139)
	New Zealand	Occupancy expense	$	(31)	$	(110)	$	(89)	$	(221)
		Labor cost		—		(6)		(2)		(11)
		Utilities		—		(16)		(5)		(36)
		Cleaning and maintenance		—		(7)		(4)		(17)
		Other operating expenses		(69)		(395)		(276)		(628)
			$	(100)	$	(534)	$	(376)	$	(913)
	Total operating expense		$	(1,840)	$	(2,461)	$	(3,795)	$	(4,696)
DEPRECIATION, AMORTIZATION, GENERAL AND ADMINISTRATIVE EXPENSE
	United States	Depreciation and amortization	$	(674)	$	(677)	$	(1,333)	$	(1,416)
		General and administrative expense		(185)		(212)		(315)		(480)
				(859)		(889)		(1,648)		(1,896)
	Australia	Depreciation and amortization	$	(391)	$	(551)	$	(776)	$	(1,142)
		General and administrative expense		(24)		(36)		(87)		(59)
				(415)		(587)		(863)		(1,201)
	New Zealand	Depreciation and amortization		(60)		(130)		(117)		(316)
		General and administrative expense		—		—		(1)		—
				(60)		(130)		(118)		(316)
	Total depreciation, amortization, general and administrative expense		$	(1,334)	$	(1,606)	$	(2,629)	$	(3,413)
OPERATING INCOME (LOSS) - REAL ESTATE
	United States		$	89	$	(204)	$	231	$	(573)
	Australia			1,338		1,461		2,882		2,921
	New Zealand			52		(311)		(39)		(511)
	Total real estate operating income (loss)		$	1,479	$	946	$	3,074	$	1,837

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

	Quarter Ended				Six Months Ended
(Dollars in thousands)	June 30, 2025		June 30, 2024		June 30, 2025		June 30, 2024
Segment operating income (loss)	$	6,932	$	(3,663)	$	4,053	$	(6,938)
Unallocated corporate expense:
Depreciation and amortization expense		(84)		(100)		(219)		(201)

General and administrative expense		(3,957)		(3,929)		(7,835)		(8,083)
Interest expense, net		(4,354)		(5,377)		(9,096)		(10,662)
Equity earnings (loss) of unconsolidated joint ventures		285		119		308		94
Gain (loss) on sale of assets		1,872		9		8,398		(1,116)
Other (expense) income		(2,273)		(216)		(2,607)		123
Income (loss) before income taxes	$	(1,579)	$	(13,157)	$	(6,998)	$	(26,783)

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

	June 30,		December 31,
(Dollars in thousands)	2025		2024
By segment:
Cinema	$	186,901	$	191,008
Real estate		177,511		207,044
Corporate (1)		73,663		72,959
Total assets	$	438,075	$	471,011
By country:
United States	$	252,309	$	264,284
Australia		159,856		167,667
New Zealand		25,910		39,060
Total assets	$	438,075	$	471,011

‎(1) Corporate Assets includes cash and cash equivalents of $12.0 million and $7.0 million as of June 30, 2025 and December 31, 2024, respectively.

The following table sets forth our operating properties by country:

	June 30,		December 31,
(Dollars in thousands)	2025		2024
United States	$	143,337	$	146,531
Australia		60,470		59,081
New Zealand		9,533		9,082
Total operating property	$	213,340	$	214,694

The table below summarizes capital expenditures for the six months ended June 30, 2025

	Six Months Ended
(Dollars in thousands)	June 30, 2025		June 30, 2024
Segment capital expenditures	$	804	$	2,028
Corporate capital expenditures		—		—
Total capital expenditures	$	804	$	2,028