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, owned and operated through our various subsidiaries, 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.

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 have historically held undeveloped land in urban and suburban centers in the United States, Australia, and New Zealand. However, in the first quarter of 2021, we monetized our undeveloped land in Coachella, California, and Manukau, New Zealand. In the second quarter of 2021, we monetized our retail center Auburn/Redyard, Australia, which included approximately 2.6 acres of undeveloped land. In the second quarter of 2021, we also monetized our Royal George theater in Chicago.

The table below summarizes the results of operations for each of our business segments for the quarter and six months ended June 30, 2021 and 2020, 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				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2021		2020		2021		2020
Revenue:
Cinema exhibition	$	32,715	$	1,217	$	50,829	$	47,527
Real estate		3,448		2,303		6,771		6,905
Inter-segment elimination		(130)		(98)		(261)		(1,782)
	$	36,033	$	3,422	$	57,339	$	52,650
Segment operating income (loss):
Cinema exhibition	$	(7,345)	$	(17,254)	$	(15,621)	$	(19,908)
Real estate		(1,054)		(807)		(2,423)		(620)
	$	(8,399)	$	(18,061)	$	(18,044)	$	(20,528)

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



	Quarter Ended				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2021		2020		2021		2020
Segment operating income (loss)	$	(8,399)	$	(18,061)	$	(18,044)	$	(20,528)
Unallocated corporate expense
Depreciation and amortization expense		(387)		(227)		(618)		(419)
General and administrative expense		(3,746)		(3,907)		(7,848)		(8,288)
Interest expense, net		(3,005)		(2,004)		(7,368)		(3,797)
Equity earnings of unconsolidated joint ventures		283		(274)		233		(195)
Gain (loss) on sale of assets		43,241		—		89,786		—
Other income (expense)		154		19		1,795		(196)
Income (loss) before income tax expense	$	28,141	$	(24,454)	$	57,936	$	(33,423)