Thank you for joining Reading International’s Earnings Call to Discuss our 2021 Third Quarter Results. My name is Andrzej Matyczynski, and I’m Reading’s Executive Vice President of Global Operations.

With me, as usual, are Ellen Cotter, our President and Chief Executive Officer; and Gilbert Avanes, our Executive Vice President, Chief Financial Officer and Treasurer. Before we begin the substance of the call, I will just run through the usual caveats.

In accordance with the safe harbor provision of the Private Securities Litigation Reform Act of 1995, certain matters that will be addressed in this earnings call may constitute forward-looking statements.

Such statements are subject to risks, uncertainties and other factors that may cause our actual performance to be materially different from the performance indicated or implied by such statements. Such risk factors are clearly set out in our SEC filings. We undertake no obligation to publicly update or revise any forward-looking statements.

In addition, we will discuss non-GAAP financial measures on this call. Reconciliations and definitions of non-GAAP financial measures, which are segment operating income, EBITDA and adjusted EBITDA, are included in our recently issued 2021 third quarter earnings release on the company's website.

We have adjusted, where applicable, the EBITDA items we believe to be external to our business and not reflective of our cost of doing business or results of operations.

Such costs include legal expenses relating to extraordinary litigation and any other items that can be considered non-recurring in accordance with the two-year SEC requirement for determining an item is non-recurring, infrequent or unusual in nature. We believe adjusted EBITDA is an important supplemental measure of our performance.

In today's call, we also use an industry-accepted financial measure called theater level cash flow, TLCF, which is theater level revenue, less direct theater level expenses. We will also use a measure referred to as F&B spend per patron, SPP, which is a key performance indicator for our cinemas.

The F&B SPP is calculated by dividing a cinema’s revenues generated by food and beverage sales by the number of admissions at that cinema. Please note that our comments are necessarily summary in nature, and anything we say is qualified by the more detailed disclosure set forth in our Form 10-Q and other filings with the U.S.

Securities and Exchange Commission. So with that behind us, I’ll turn it over to Ellen, who will review our 2021 third quarter results and discuss our strategies for navigating Reading through the COVID-19 pandemic to the post-COVID era; followed by Gilbert, who will provide a more detailed financial review.

Ellen?.

Increased property costs and occupancy expenses related to our 44 Union Square Property, some of which were partially capitalized in Q3 of 2020, as well as a commencement of depreciation for this property, and property rental income in Australia also decreased due to the sale of our Auburn/Redyard center during Q2 of 2021.

A few points about our increased Q3 2021 real estate revenues. As of today in Australia and New Zealand, we have 73 third-party tenant ranging from cafes to supermarkets, pharmacies, non-cinema entertainment venues and various medical uses. And the portfolio as of Q3 2021 has a solid occupancy rate of 94%.

Even with the recent Delta lockdowns in Australia, 93% of our third-party tenants are opened and trading. Due to lockdowns being in effect for most of the quarter in New South Wales and Victoria, the code of conduct was reinstated.

The Australian code of conduct, which is legislatively – which is a legislatively mandated framework to assist tenants impacted by the global pandemic, officially came to an end in most Australian states at the end of March 2021. The official termination of that code signaled the commencement of rent deferral payments over a 24 month period.

So our Australian property team will be managing these deferral payments over the next couple of years. However, in light of the recent Delta lockdowns, the Victorian code of conduct legislation has been reinstated up until January of 2022.

Our overall revenue increase was offset by a 7% decrease in real estate revenues in Australia, primarily due to the Auburn/Redyard sale in Q2 of 2021. In New Zealand, our Q3 2021 real estate revenues remained relatively flat. There were no COVID related rent abatements provided to any third-party tenants during Q3 of 2021.

In the U.S., our Q3 2021 real estate revenues increased by $0.3 million to $0.6 million due to the reopening of our Orpheum Theatre in New York City on July 20, 2021, when STOMP resumed public performances.

During Q3 2021, our global management teams continued to work on the development of our two active real estate projects, 44 Union Square, New York City and our Wellington assets, including Courtney Central, New Zealand. However, as of today’s date, we have no material updates for you on these two projects.

I’ll finish by noting that as we regain our footing in our cinema divisions and continue to solidify our foundation, we believe our retained real estate assets, 44 Union Square and Cinema 1, 2 and 3 in New York, Courtney Central in Wellington, Newmarket Village in Brisbane, Cannon Park in Townsville and our Viaduct properties in Philadelphia all continue to offer substantial opportunities to create future long-term value for our stockholders.

That wraps up my business overview for Q3 of 2021. But before I turn it over to Gilbert, I want to say on behalf of Margaret, our Board and myself, we again want to extend our sincere appreciation to the global Reading team. I feel like we can’t say it enough.

Thank you to all those executives and employees who’ve worked nonstop since March of 2020 to make sure our company successfully navigated this uncertain time.

While we know we’re not out of the woods yet, it’s the daily efforts of the Reading team under extraordinary circumstances for the last 20 months that have put this company in its various operating divisions on stronger footing. With that, I’ll turn it over to Gilbert..

on November 2, 2021, we obtained a waiver from NAB, which extended the temporary suspension of the testing of certain covenants through September 30, 2022. On November 8, 2021, we amended our credit agreement with Bank of America.

The new amendments replaces all of the required covenants with the single liquidity covenant and the loans have now are being converted into a term loan. On November 8, 2021, we repaid in full and retired our Bank of America line of credit.

As we continued to focus on preserving our liquidity, we did not repurchase any of our shares in the third quarter of 2021. With that, I’ll now turn it over to Andrzej..

Thanks, Gilbert. First, I’d like to thank our stockholders for forwarding questions to our investor relations email. In addition to addressing many of your questions in the prepared remarks from Ellen and Gilbert, we’ve selected a few additional questions to offer additional insights from management.

The first question relates to the sale of assets and repurchase of stock. Would it make sense to sell assets that can get fair value or borrow against, then use the proceeds to buy back undervalued stock. I can handle this one. During the pandemic, we focused on preserving stockholder value.

We strengthened our balance sheet by selectively monetizing assets, not adversely impacted by the COVID economy and which would have required significant capital expenditures to take them to their next level of value. We generated $141.9 million in cash unlocking book profits of $90.2 million.

We did not take on any high interest rate debt or diluted stockholders by issuing equity at distress prices. We’ve worked with our landlords and haven’t lost any of our cinema assets. We have in short preserved the core of our business and are optimistic about the future of cinema exhibition in the markets where we operate.

As for the future, we continue to believe in our two business, three country strategic business plan. We do not see any shift in that strategy, which has survived us well through the pandemic.

We also review our position with regards to our authorized stock repurchase program, which has been on hold because of the liquidity needs of the company made more acute by the pandemic and its effect on our businesses.

We continue to balance our CapEx and OpEx requirements together with our commitment to our stock repurchase program and we recommenced that program as circumstances allow. The second question comes from, when it makes sense to restart the refurbishment program. How many more theaters are left in your CapEx plans for U.S.

theaters? How many have been completed and how many are not participating in the past or near present of the program? What amount of capital is necessary to complete the plan? Ellen?.

In addition to building Olino in Hawaii, since 2015, we’ve substantially renovated eight cinemas in our U.S. portfolio. Those renovations included among other things, converting to recliner seating, adding TITAN LUXE screens, and significantly upgrading the F&B offer.

As of today, we’re targeting the renovation of three additional theaters starting sometime in 2022. The overall renovation cost, we estimate to be about $8 million to $10 million based on future decisions about the scope of the renovations.

We’re working now with our landlords at these three locations to establish reasonable new lease arrangements to take into account major renovations. In 2023, we’d expect to commence renovations on three or four more. Decisions with respect to the remainder of the U.S.

circuit are subject to market conditions at the time and discussions with our landlords about lease term, tenant allowances and rent structures..

Thanks, Ellen.

And finally, are there any plans to further monetize real estate assets, Gilbert?.

At this time, we have no plan to further monetize any of our real estate assets. Historically, our approach to our real estate assets have been predominantly a buy and hold strategy. However, due to COVID-19 pandemic, we monetize the asset that had minimal impact to our historical cash flow, but have greatly appreciated in value.

By capitalizing on these assets, our long-term real estate strategy has given us the ability to not increase debt or issue capital and further enhanced our financial position given us the ability to pay down debt. The monetization of these assets have strengthened our balance sheet in a type of global uncertainty.

Our actions in this regards were well received by our lenders and we believe we get top prices for those assets. At this time, we believe our balance sheet is well positioned to provide our company with the continued flexibility to allow the cinema industry and our cinema cash flows time to rebound..

Thanks, Gilbert. Well, that marks the conclusion of the call. As usual, we appreciate you listening to the call today and thank you for your attention. And wish everyone good health and safety. Thank you..

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