Director of Reading International Inc. (NASDAQ:RDI), Douglas James McEachern, has sold 5,000 shares of the company's Class A Non-Voting Common Stock at a price of $1.46 per share, totaling $7,300. This transaction was reported in a recent SEC filing dated June 12, 2024.
The sale reduced McEachern's holdings to 76,448 shares of Class A Non-Voting Common Stock. Reading International, known for its services in the motion picture theaters sector, has not issued any statement regarding this transaction.
In a separate transaction, disclosed in the same filing, McEachern was granted 69,219 stock options for Class A Non-Voting Common Stock under the company's 2020 Stock Incentive Plan. These options have a conversion or exercise price of $1.92 and are set to vest fully on the earlier of December 6, 2024, or at the end of the director's current term, as determined by the election of the succeeding Board.
The stock options are part of a long-term incentive plan aimed at aligning the interests of the company's directors with those of the shareholders. Following this grant, McEachern now holds a total of 69,219 stock options in the company.
Investors and market watchers often keep a close eye on insider transactions as they can provide insights into a company's internal perspective. The transactions reported in the SEC filing reflect McEachern's latest financial moves concerning his stake in Reading International Inc.
In other recent news, Reading International has shown resilience in the face of challenges, reporting growth in its earnings call. The company's total revenue for 2023 reached $222.7 million, marking a 10% increase from the previous year, despite industry strikes and currency fluctuations. The global cinema revenue, a significant contributor, rose 9% to $207.6 million. Additionally, Reading International's real estate segment saw a 28% increase in revenue, reaching $15.1 million.
The company also highlighted a positive adjusted EBITDA of $7.8 million, the highest since the pandemic began, and the strategic divestment of assets to enhance liquidity and reduce debt. High-performing films such as "Barbie," "Oppenheimer," and "Super Mario Bros. Movie" played a role in the company's success in the cinema sector. Furthermore, Reading International has been actively managing its asset portfolio, including the sale of properties in Australia and the US, and is working with lenders to restructure debt.
Looking ahead, the company anticipates a promising second half of 2024 with the release of highly anticipated films and expects to monetize certain international cinemas by the end of 2024. These recent developments point to Reading International's strategic focus and commitment to growth and operational efficiency.
InvestingPro Insights
As investors digest the recent insider transactions at Reading International Inc. (NASDAQ:RDI), it's important to consider the broader financial context of the company. With a market capitalization of just over $33 million, Reading International is navigating through tough financial waters. The company's stock price has been under significant pressure, trading near its 52-week low and reflecting a 48.88% decline over the past year as of mid-April 2024.
InvestingPro data underscores the challenges faced by the company. Reading International's gross profit margin stands at 12.04% for the last twelve months as of Q1 2024, highlighting the company's struggle with weak gross profit margins. Moreover, the company has been operating at a loss, with an operating income margin of -5.26% during the same period. These figures are a testament to the financial difficulties that the company has been enduring, which may be a contributing factor to the recent insider selling activity.
An InvestingPro Tip suggests that Reading International operates with a significant debt burden, which is a critical factor for investors to consider when evaluating the company's financial health. Additionally, with the company not turning a profit over the last twelve months and trading at a high EBITDA valuation multiple, it's clear that investors are dealing with a high-risk profile. For those seeking more in-depth analysis, there are additional InvestingPro Tips available, providing a comprehensive look at the company's financial standing and market position.
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