RDIB

Reading International is a distressed cinema and real-estate holding company kept alive by selling off its property. The balance sheet has crossed into negative territory: stockholders' equity is -$18.2M (down from positive a year ago), total liabilities of $453M exceed total assets of $435M, and retained earnings sit at -$129M. Worse, liquidity is precarious — $10.5M of cash and $21.8M of current assets against $129M of current liabilities (including $36M of debt due within a year) is a roughly $107M working-capital deficit. A company cannot cover near-term obligations from operations when operating cash flow is negative (-$1.58M) and the current ratio is well under 0.2x.

The fundamentals are chronically unprofitable, not cyclically so. RDIB has lost money every year since 2021: net income of -$36.2M, -$30.7M, -$35.3M, and -$14.1M across FY2022–FY2025. Revenue is going the wrong way too, down 3.6% to $203M and below the $223M FY2023 peak, while the filing admits capex has been starved (only 5 cinemas built in 5 years) in a way that 'likely adversely impacted revenues' — a structurally shrinking, under-invested box-office business facing streaming, a 7.8% average cost of borrowing (up from 4.0% in 2019), and rising labor and litigation costs.