Segment Reporting

12 Months Ended

Dec. 31, 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, theatre 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 theatre 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 theatre 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.

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 the Board of Directors, 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 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.

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.

	2025						2024						2023
(Dollars in thousands)	Cinema		Real ‎Estate		Total		Cinema		Real ‎Estate		Total		Cinema		Real ‎Estate		Total
Revenue - third party	$	188,603	$	14,385	$	202,988	$	195,130	$	15,397	$	210,527	$	207,641	$	15,103	$	222,744
Inter-segment revenue (1)		—		4,036		4,036		—		4,609		4,609		—		4,767		4,767
Total segment revenue		188,603		18,421		207,024		195,130		20,006		215,136		207,641		19,870		227,511
Operating expense
Operating Expense - Third Party		(168,328)		(7,463)		(175,791)		(179,377)		(9,243)		(188,620)		(187,418)		(8,763)		(196,181)
Inter-Segment Operating Expenses (1)		(4,036)		—		(4,036)		(4,609)		—		(4,609)		(4,767)		—		(4,767)
Total of services and products (excluding depreciation and amortization)		(172,364)		(7,463)		(179,827)		(183,986)		(9,243)		(193,229)		(192,185)		(8,763)		(200,948)
Depreciation and amortization		(8,457)		(4,314)		(12,771)		(10,232)		(5,160)		(15,392)		(11,335)		(6,376)		(17,711)
General and administrative expense		(4,139)		(727)		(4,866)		(3,709)		(924)		(4,633)		(3,997)		(940)		(4,937)
Total operating expense		(184,960)		(12,504)		(197,464)		(197,927)		(15,327)		(213,254)		(207,517)		(16,079)		(223,596)
Segment operating income (loss)	$	3,643	$	5,917	$	9,560	$	(2,797)	$	4,679	$	1,882	$	124	$	3,791	$	3,915

(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 financial years ended December 31, 2025, 2024 and 2023 is as follows:

			Year Ended
(Dollars in thousands)			December 31, 2025		December 31, 2024		December 31, 2023
REVENUE
	United States	Admissions revenue	$	54,214	$	55,782	$	63,662
		Concessions revenue		35,523		34,314		38,884
		Advertising and other revenue		9,751		9,842		11,252
			$	99,488	$	99,938	$	113,798
	Australia	Admissions revenue	$	47,414	$	48,186	$	48,630
		Concessions revenue		24,373		27,670		26,119
		Advertising and other revenue		5,949		6,176		5,276
			$	77,736	$	82,032	$	80,025
	New Zealand	Admissions revenue	$	7,256	$	7,663	$	8,509
		Concessions revenue		3,541		4,375		4,585
		Advertising and other revenue		582		1,122		724
			$	11,379	$	13,160	$	13,818
	Total revenue		$	188,603	$	195,130	$	207,641
OPERATING EXPENSE
	United States	Film rent and advertising cost	$	(28,971)	$	(30,315)	$	(34,182)
		Food & beverage cost		(9,108)		(9,071)		(10,070)
		Occupancy expense		(16,962)		(22,516)		(25,090)
		Labor cost		(16,482)		(17,323)		(17,397)
		Utilities		(5,413)		(5,973)		(6,856)
		Cleaning and maintenance		(6,670)		(6,664)		(8,155)
		Other operating expenses		(8,665)		(7,948)		(9,459)
			$	(92,271)	$	(99,810)	$	(111,209)
	Australia	Film rent and advertising cost	$	(21,081)	$	(22,124)	$	(21,814)
		Food & beverage cost		(5,290)		(6,141)		(5,609)
		Occupancy expense		(17,708)		(18,086)		(17,207)
		Labor cost		(13,613)		(14,040)		(13,243)
		Utilities		(3,207)		(2,861)		(2,545)
		Cleaning and maintenance		(4,614)		(5,069)		(4,696)
		Other operating expenses		(3,342)		(3,597)		(3,313)
			$	(68,855)	$	(71,918)	$	(68,427)
	New Zealand	Film rent and advertising cost	$	(3,313)	$	(3,474)	$	(3,858)
		Food & beverage cost		(733)		(947)		(911)
		Occupancy expense		(2,883)		(3,106)		(3,081)
		Labor cost		(2,115)		(2,385)		(2,417)
		Utilities		(501)		(394)		(435)
		Cleaning and maintenance		(759)		(886)		(971)
		Other operating expenses		(934)		(1,066)		(876)
			$	(11,238)	$	(12,258)	$	(12,549)
	Total operating expense		$	(172,364)	$	(183,986)	$	(192,185)
DEPRECIATION, AMORTIZATION, GENERAL AND ADMINISTRATIVE EXPENSE
	United States	Depreciation and amortization	$	(4,403)	$	(5,011)	$	(5,911)
		General and administrative expense		(2,594)		(2,368)		(2,502)
			$	(6,997)	$	(7,379)	$	(8,413)
	Australia	Depreciation and amortization	$	(3,623)	$	(4,763)	$	(4,824)
		General and administrative expense		(1,355)		(1,325)		(1,495)
			$	(4,978)	$	(6,088)	$	(6,319)
	New Zealand	Depreciation and amortization	$	(432)	$	(458)	$	(600)
		General and administrative expense		(189)		(16)		—
			$	(621)	$	(474)	$	(600)
	Total depreciation, amortization, general and administrative expense		$	(12,596)	$	(13,941)	$	(15,332)
OPERATING INCOME (LOSS) - CINEMA
	United States		$	220	$	(7,251)	$	(5,824)
	Australia			3,903		4,026		5,279
	New Zealand			(480)		428		669
	Total Cinema operating income (loss)		$	3,643	$	(2,797)	$	124

A reconciliation of real estate segment revenue to segment operating income for the financial years ended December 31, 2025, 2024 and 2023 is as follows:

			Year Ended
(Dollars in thousands)			December 31, 2025		December 31, 2024		December 31, 2023
REVENUE
	United States	Live theater rental and ancillary income	$	2,638	$	2,024	$	1,803
		Property rental income		4,243		4,221		4,395
				6,881		6,245		6,198
	Australia	Property rental income		10,659		12,341		12,163
	New Zealand	Property rental income		881		1,420		1,509
	Total revenue		$	18,421	$	20,006	$	19,870
OPERATING EXPENSE
	United States	Live theater cost	$	(1,048)	$	(1,024)	$	(765)
		Occupancy expense		(734)		(694)		(789)
		Utilities		(93)		(116)		(184)
		Cleaning and maintenance		(198)		(183)		(170)
		Other operating expenses		(1,073)		(1,096)		(1,237)
			$	(3,146)	$	(3,113)	$	(3,145)
	Australia	Occupancy expense	$	(1,829)	$	(1,988)	$	(1,956)
		Labor cost		(174)		(247)		(218)
		Utilities		(131)		(72)		(73)
		Cleaning and maintenance		(853)		(983)		(927)
		Other operating expenses		(736)		(929)		(892)
			$	(3,723)	$	(4,219)	$	(4,066)
	New Zealand	Occupancy expense	$	(167)	$	(474)	$	(418)
		Labor cost		(2)		(22)		(99)
		Utilities		(5)		(62)		(53)
		Cleaning and maintenance		(4)		(44)		(33)
		Other operating expenses		(416)		(1,309)		(949)
				(594)		(1,911)		(1,552)
	Total operating expense		$	(7,463)	$	(9,243)	$	(8,763)
DEPRECIATION, AMORTIZATION, GENERAL AND ADMINISTRATIVE EXPENSE
	United States	Depreciation and amortization	$	(2,500)	$	(2,628)	$	(3,104)
		General and administrative expense		(649)		(866)		(700)
				(3,149)		(3,494)		(3,804)
	Australia	Depreciation and amortization	$	(1,580)	$	(2,091)	$	(2,514)
		General and administrative expense		(76)		(58)		(240)
				(1,656)		(2,149)		(2,754)
	New Zealand	Depreciation and amortization		(235)		(441)		(758)
		General and administrative expense		(1)		—		—
				(236)		(441)		(758)
	Total depreciation, amortization, general and administrative expense		$	(5,041)	$	(6,084)	$	(7,316)
OPERATING INCOME (LOSS) - REAL ESTATE
	United States		$	586	$	(362)	$	(751)
	Australia			5,280		5,973		5,343
	New Zealand			51		(932)		(801)
	Total real estate operating income (loss)		$	5,917	$	4,679	$	3,791

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

(Dollars in thousands)	2025		2024		2023
Segment operating income (loss)	$	9,560	$	1,882	$	3,915
Unallocated corporate expense:
Depreciation and amortization expense		(427)		(387)		(711)
General and administrative expense		(14,440)		(15,528)		(15,235)
Interest expense, net		(17,930)		(21,154)		(19,418)
Equity earnings (loss) of unconsolidated joint ventures		560		(387)		456
Gain (loss) on sale of assets		8,365		(1,371)		562
Gain (loss) on acquisition of noncontrolling interest		2,691		—		—
Other (expense) income		(2,178)		1,528		(164)
Income (loss) before income taxes	$	(13,799)	$	(35,417)	$	(30,595)

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)	2025		2024
By segment:
Cinema	$	184,162	$	191,008
Real estate		176,396		207,044
Corporate (1)		74,371		72,959
Total assets	$	434,929	$	471,011
By country:
United States	$	245,169	$	264,284
Australia		166,026		167,667
New Zealand		23,734		39,060
Total assets	$	434,929	$	471,011

(1)Corporate Assets includes cash and cash equivalents of $10.5 million and $12.3 million as of December 31, 2025 and 2024, respectively.

The following table sets forth our operating properties, net, by country:

	December 31,
(Dollars in thousands)	2025		2024
United States	$	140,179	$	146,531
Australia		58,934		59,081
New Zealand		8,861		9,082
Total operating properties, net	$	207,974	$	214,694

The table below summarizes capital expenditures for the three years ended December 31, 2025:

(Dollars in thousands)	2025		2024		2023
Segment capital expenditures	$	1,498	$	2,028	$	4,711
Corporate capital expenditures		—		—		—
Total capital expenditures	$	1,498	$	2,028	$	4,711