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First Quarter 2019 Results Announced by Reading International
Reading Time: 14 minutes
Earnings Call Webcast to Discuss 2019 First Quarter Financial Results
Scheduled to Post to Corporate Website on Tuesday, May 14, 2019
CULVER CITY, Calif.–(BUSINESS WIRE)–Reading International, Inc. (NASDAQ: RDI) today announced results for
the first quarter ended March 31, 2019. Our Company reported Basic
Earnings (Loss) per Share (“EPS”) of $(0.09), for the quarter ended
March 31, 2019 compared to an EPS of $0.13 for the same period in the
prior year, which was primarily driven by a weaker film slate in the
first quarter compared to the same period last year. The success of
films such as “Black Panther,” “Jumanji: Welcome to the Jungle,” and
“The Greatest Showman” during the first quarter of 2018 was not
repeated by the films offered in the first quarter of 2019. Cinema
segment revenues for the first three months of 2019 decreased by 20%, or
$14.3 million, to $58.0 million, compared to $72.3 million for the first
three months of 2018. We believe that our cinema results for the quarter
were similarly impacted as those of our competitors.
On the real estate front, our signature U.S. redevelopment project – the
historic Tammany Hall at 44 Union Square in Manhattan nears completion.
While no assurances can be given, we are in lease negotiations with a
credit tenant with respect to approximately 90% of the net rentable area
of the project. The prospective tenant has begun preparation of drawings
for the fit-out of the space and we have reached an agreement in
principle with respect to the key economic points. Drafts of the lease
have been exchanged. We anticipate that the project will be ready for
the commencement of tenant improvement work this quarter.
Ellen Cotter, Chair, President and Chief Executive Officer, said, “We
anticipated that when compared to the first quarter of 2018 the Black
Panther box office would be tough to match. However, the recent
blockbuster success of Avengers: Endgame again re-affirms our
confidence in the cinema industry and we look forward to that box office
momentum continuing through 2019.
“Also, we are pleased with the progress we have made on our 44 Union
Square project – the historic Tammany Hall in New York City and believe
this signature project, when completed, will unlock the long term value
in this one-time theatre property.”
Consolidated revenue for the first quarter of 2019 decreased by 19%, or
$14.3 million, to $61.6 million compared to the first quarter of 2018,
primarily due to a decreased attendance resulting from the weaker film
slate. These results were additionally negatively impacted by a
9.4% decline in the Australian dollar and a 6.3% decline in the New
Zealand dollar for the quarter ended March 31, 2019, compared to the
quarter ended March 31, 2018. Our New Zealand results were also
negatively impacted by the closure, due to seismic concerns, of our
Courtenay Central cinema in Wellington, which has historically been our
top performer in New Zealand.
The following table summarizes the first quarter results for 2019 and
2018:
| Three Months Ended | ||||||||||||||||||||||
| March 31, |
% Change Favorable/ |
|||||||||||||||||||||
| (Dollars in millions, except EPS) | 2019 | 2018 | (Unfavorable) | |||||||||||||||||||
| Revenue | $ | 61.6 | $ | 75.9 | (19 | ) | % | |||||||||||||||
| – US | 33.1 | 38.7 | (14 | ) | % | |||||||||||||||||
| – Australia | 23.8 | 29.1 | (18 | ) | % | |||||||||||||||||
| – New Zealand | 4.7 | 8.1 | (42 | ) | % | |||||||||||||||||
| Operating expense | $ | (62.9 | ) | $ | (70.2 | ) | (10 | ) | % | |||||||||||||
| Segment operating income (1) | $ | 3.8 | $ | 12.0 | (68 | ) | % | |||||||||||||||
|
Net income/(loss) (2) |
$ | (2.1 | ) | $ | 3.1 | (168 | ) | % | ||||||||||||||
| EBITDA (1) | $ | 4.3 | $ | 11.1 | (61 | ) | % | |||||||||||||||
| Adjusted EBITDA (1) | $ | 4.8 | $ | 12.5 | (62 | ) | % | |||||||||||||||
| Basic EPS (2) | $ | (0.09 | ) | $ | 0.13 | (169 | ) | % | ||||||||||||||
|
(1) |
Aggregate segment operating income, earnings before interest |
||
|
(2) |
Reflect amounts attributable to stockholders of Reading |
||
COMPANY HIGHLIGHTS
-
Operating Results: For
the quarter ended March 31, 2019, we had worldwide revenue of
$61.6 million, down $14.3 million from the prior year. Our operating
results were negatively impacted by (i) a weaker film slate worldwide,
(ii) a weaker film slate from the specialty distribution companies in
the U.S., and (iii) the closure of a majority of the net rentable area
of Courtenay Central, including our Reading Cinema at that location,
due to seismic concerns. -
Capex program: During
the first quarter of 2019, we invested $11.4 million in capital
improvements, including our continued investment in the redevelopment
of Tammany Hall, the upgrading of our multiplex cinemas (Harbour Town
in Australia and Mililani in the U.S.) and the lease acquisition of an
existing cinema in Devonport, Tasmania. -
Cinema Additions and Pipeline:
In early 2019, we purchased a well-established four-screen
cinema in Devonport, Tasmania. This lease acquisition brings our
global cinema count to 60 and our global screen count to 484. In
addition, we currently have signed lease agreements for four new
cinemas in Australia representing an additional 25 screens, which we
anticipate opening between 2019 and 2021. -
Building new revenue sources:
We continue to focus on the development of our self-ticketing
capabilities. We achieved a first quarter record for U.S. online
revenue, beating the prior year first quarter record by 14%. Online
sales consisted of 25% of our global box office revenue, which is a
first quarter record and represents an 18% increase from the prior
year period. Our continued improvements to our websites and apps in
the U.S. and improved global online sales infrastructure are enabling
us to better serve high sales volume.
Real estate activities:
-
44 Union Square Redevelopment (New York, U.S.)
– Our signature U.S. redevelopment project – the historic Tammany Hall
at 44 Union Square in Manhattan – is nearing completion. While
no assurances can be given, we are in negotiations on a lease with a
credit tenant for approximately 90% of the net rentable area of the
project. We anticipate that our project will be ready for the
commencement of tenant improvement work this quarter. -
Minetta Lane Theatre (New York, U.S.)
– In April, we negotiated an extension through March 2020 (with an
option to extend for an additional year through March 2021) of our
Minetta Lane Theatre license agreement with Audible, Inc., a
subsidiary of Amazon. Audible will continue to use our theatre as the
location for its production of various plays featuring one or two
actors, to be recorded before a live theatre audience, and offered on
Audible.com. -
Courtenay Central Redesign/Expansion
(Wellington, New Zealand) – Located in the heart of
Wellington – New Zealand’s capital city – this center is comprised of
161,071 square feet of land situated proximate to the Te Papa
Tongarewa Museum (attracting more than 1.5 million visitors annually),
across the street from the site of Wellington’s newly announced
convention center (estimated to open in 2022) and at a major public
transit hub. Damage from the 2016 earthquake necessitated demolition
of our nine-story parking garage at the site. Further, unrelated
seismic issues have caused us to close portions of the existing cinema
and retail structure while we reevaluate the property for
redevelopment as an entertainment themed urban center with a major
food and grocery component. Wellington continues to be rated as one of
the top cities in the world in which to live, and we continue to
believe that Courtenay Central is located in one of the most vibrant
and growing commercial and entertainment precincts of New Zealand.
SEGMENT RESULTS
The following table summarizes the first quarter segment operating
results for 2019 and 2018:
| Three Months Ended | ||||||||||||||||||||||
| March 31, |
% Change Favorable/ |
|||||||||||||||||||||
| (Dollars in thousands) | 2019 | 2018 | (Unfavorable) | |||||||||||||||||||
| Segment revenue | ||||||||||||||||||||||
|
Cinema |
||||||||||||||||||||||
| United States | $ | 32,033 | $ | 37,987 | (16 | ) | % | |||||||||||||||
| Australia | 21,441 | 26,717 | (20 | ) | % | |||||||||||||||||
| New Zealand | 4,512 | 7,551 | (40 | ) | % | |||||||||||||||||
| Total | $ | 57,986 | $ | 72,255 | (20 | ) | % | |||||||||||||||
|
Real estate |
||||||||||||||||||||||
| United States | $ | 988 | $ | 655 | 51 | % | ||||||||||||||||
| Australia | 3,916 | 4,154 | (6 | ) | % | |||||||||||||||||
| New Zealand | 527 | 1,199 | (56 | ) | % | |||||||||||||||||
| Total | $ | 5,431 | $ | 6,008 | (10 | ) | % | |||||||||||||||
| Inter-segment elimination | (1,866 | ) | (2,391 | ) | 22 | % | ||||||||||||||||
| Total segment revenue | $ | 61,551 | $ | 75,872 | (19 | ) | % | |||||||||||||||
| Segment operating income | ||||||||||||||||||||||
|
Cinema |
||||||||||||||||||||||
| United States | $ | (765 | ) | $ | 3,000 | (125 | ) | % | ||||||||||||||
| Australia | 3,102 | 5,916 | (48 | ) | % | |||||||||||||||||
| New Zealand | 305 | 1,369 | (78 | ) | % | |||||||||||||||||
| Total | $ | 2,643 | $ | 10,285 | (74 | ) | % | |||||||||||||||
|
Real estate |
||||||||||||||||||||||
| United States | $ | 27 | $ | (293 | ) | 109 | % | |||||||||||||||
| Australia | 1,305 | 1,515 | (14 | ) | % | |||||||||||||||||
| New Zealand | (174 | ) | 459 | (138 | ) | % | ||||||||||||||||
|
Total |
$ | 1,158 | $ | 1,681 | (31 | ) | % | |||||||||||||||
| Total segment operating income (1) | $ | 3,801 | $ | 11,966 | (68 | ) | % | |||||||||||||||
|
“nm” – not meaningful for further analysis |
|||
|
(1) |
Aggregate segment operating income is a non-GAAP financial |
||
Consolidated and Non-Segment Results:
1st
Quarter Net Results
Compared to the quarter ended March 31, 2018, cinema segment operating
income decreased by 74%, or $7.6 million, to $2.6 million for the
quarter ended March 31, 2019, primarily driven by a decrease in
operating income in U.S., Australia, and New Zealand. The decrease was
due to a decrease in cinema attendance worldwide (principally due to a
weaker film slate), and fluctuations in average ticket price (“ATP”) and
spend per patron (“SPP”) as outlined below:
-
Revenue in the U.S. decreased by 16%, or $6.0 million, to
$32.0 million, due to a 22% decrease in attendance, offset partially
by a 12% increase in SPP and a 4% increase in ATP. -
Australia’s cinema revenue decreased by 20%, or $5.3 million, to $21.4
million primarily due to a 15% decrease in attendance, a 4% decrease
in ATP, and a decrease of 9% in SPP. -
New Zealand’s cinema revenue decreased by 40%, or $3.0 million versus
the same period in 2018. Attendance decreased by 40%, while ATP and
SPP percentages remained relatively flat compared to the same period
in the prior year. Not only did the weaker film slate from the major
studios impact our results, but our New Zealand cinema revenues were
also adversely impacted by the January 2019 closure of our Courtenay
Central cinema in Wellington due to seismic concerns.
The top three grossing films for the first quarter of 2019 were “Captain
Marvel,” “Aquaman,” and “How to Train Your Dragon: The
Hidden World,” representing approximately 29% of Reading’s worldwide
admission revenues for the quarter. The top three grossing films in the
first quarter of 2018 for Reading’s worldwide cinema circuits were “Black
Panther,” “Jumanji: Welcome to the Jungle,” and “The
Greatest Showman,” which represented approximately 32% of Reading’s
worldwide admission revenues for the quarter.
Real Estate
Segment Operating Income and Revenues:
Real estate segment operating income decreased by 31%, or $0.5 million,
to $1.2 million for the quarter ended March 31, 2019 compared to
March 31, 2018. For the quarter ended March 31, 2019, the real estate
segment revenue decreased by 10%, or $0.6 million, to $5.4 million,
compared to the same period in 2018. This was primarily attributable to
the closure due to seismic concerns of a majority of the net rentable
area of our Courtenay Central ETC during the first quarter of 2019,
compared to same period in 2018, which had a full quarter of operations,
offset by an increase in revenue at our Live Theatres.
CONSOLIDATED AND NON-SEGMENT RESULTS
The first quarter consolidated and non-segment results for 2019 and 2018
are summarized as follows:
| Three Months Ended | ||||||||||||||||||||||||
| March 31, |
% Change Favorable/ |
|||||||||||||||||||||||
| (Dollars in thousands) | 2019 | 2018 | (Unfavorable) | |||||||||||||||||||||
| Segment operating income | $ | 3,801 | $ | 11,966 | (68 | ) | % | |||||||||||||||||
| Non-segment income and expenses: | ||||||||||||||||||||||||
| General and administrative expense | (5,041 | ) | (6,156 | ) | 18 | % | ||||||||||||||||||
| Interest expense, net | (1,852 | ) | (1,594 | ) | (16 | ) | % | |||||||||||||||||
| Other | (47 | ) | 58 | 181 | % | |||||||||||||||||||
| Total non-segment income and expenses | $ | (6,940 | ) | $ | (7,692 | ) | 10 | % | ||||||||||||||||
| Income before income taxes | (3,139 | ) | 4,274 | 173 | % | |||||||||||||||||||
| Income tax benefit (expense) | 1,042 | (1,170 | ) | 189 | % | |||||||||||||||||||
| Net income/(loss) | $ | (2,097 | ) | $ | 3,104 | (168 | ) | % | ||||||||||||||||
|
Less: net income (loss) attributable to noncontrolling interests |
(16 | ) | 22 | nm | ||||||||||||||||||||
|
Net income (loss) attributable to RDI common stockholders |
$ | (2,081 | ) | $ | 3,082 | (168 | ) | % | ||||||||||||||||
|
“nm” – not meaningful for further analysis |
First Quarter Net Results
Net income attributable to RDI common stockholders was down $5.2 million
to a loss of $(2.1) million for the first quarter March 31, 2019,
compared to the same period prior year. Basic EPS for the quarter ended
March 31, 2019 decreased by $0.22 to a loss per share of $(0.09) from
the prior-year quarter, mainly attributable to a significant decrease in
revenue from both our Cinema and Real Estate business segments.
Non-Segment General & Administrative Expenses
Non-segment general and administrative expense for the quarter ended
March 31, 2019 compared to the same period of the prior year decreased
by 18%, or $1.1 million, to $5.0 million. The quarterly decrease mainly
relates to lower legal expenses for the quarter ending March 31, 2019 of
$1.0 million compared to the same period last year.
Income Tax Expense
Income tax expense for the quarter ended March 31, 2019, decreased 189%,
or $2.2 million, compared to the equivalent prior year period. The
change between 2019 and 2018 is primarily related to the pretax loss in
2019.
OTHER FINANCIAL INFORMATION
Balance Sheet and Liquidity
Total assets increased by $235.5 million, to $674.5 million at March 31,
2019, compared to $439.0 million at December 31, 2018. This was
primarily driven by the implementation of the lease accounting standards
effective January 1, 2019, which also resulted in a similar increase in
our liabilities. Additionally, assets increased due to the capital
investments relating to major real estate projects, primarily (i) the
redevelopment of our Union Square property in New York, and (ii)
improvements at our Mililani and Harbour Town cinemas. These were
partially offset by a reduction in our foreign-operation asset values
due to a decrease in the foreign exchange rates relative to the U.S.
dollar.
Cash and cash equivalents at March 31, 2019 were $12.6 million,
including approximately $8.8 million in the U.S., $3.2 million in
Australia, and $0.7 million in New Zealand. We manage our cash,
investments and capital structure so we are able to meet short-term and
long-term obligations for our business, while maintaining financial
flexibility and liquidity.
As part of our operating cycle, we utilize cash collected from (i) our
cinema business when selling tickets and F&B items, and (ii) rental
income typically received in advance, to reduce our long-term borrowings
and realize savings on interest charges. We then settle our operating
expenses generally with a lag within traditional trade terms. This
generates a temporary working capital deficit. We review the maturities
of our borrowings and negotiate for renewals and extensions, as
necessary for liquidity purposes. We believe the cash flow generated
from our operations coupled with our ability to renew and extend our
credit facilities will provide sufficient liquidity in the upcoming year.
OTHER INFORMATION
Our Stock Repurchase Program that expired on March 2, 2019, has been
extended by our Board of Directors through March 2, 2021. $16.2 million
remains available under that extended program. This will allow Reading
to repurchase its Class A Common Stock from time to time in accordance
with the requirements of the Securities and Exchange Commission on the
open market, in block trades and in privately negotiated transactions,
depending on market conditions and other factors.
On March 14, 2019, our Board of Directors approved the Company’s
three-year Strategic Plan to focus across the U.S., Australia, and New
Zealand on the upgrading of our existing cinemas to add luxury recliner
seating, TITAN branded auditoriums and enhanced F&B options, the
development in appropriate markets of new cinema opportunities, and the
continued development and/or redevelopment of our current real estate
assets.
After considering the approval of the Strategic Plan, our Board
concluded that the interests of our Company and our stockholders would
be best served by the continued pursuit of our Strategic Plan as an
independent company and that it had no interest in considering any sale
process at this time. Accordingly, we have advised Patton Vision that
our Board does not have any present interest in engaging in discussions
regarding their unsolicited indication of interest in the sale of our
Company. Our controlling stockholders are in agreement with this
approach.
In a matter potentially impacting the control of our company, but to
which our company is not a party (In re: James J. Cotter Living Trust
dated August 1, 2000 (Case No. BP159755) (the “Trust Case”)), the
California Court of Appeals on April 15, 2019, struck down the
California Trial Court’s order appointing a trustee ad litem to solicit
offers for the purchase of a controlling interest in our Company. The
basis for that disposition was the Appeals Court’s determination that
Mr. James J. Cotter, Jr., lacks standing to seek the appointment of such
a trustee ad litem. The Appeals Court noted that Mr. Cotter, Jr., is
neither a trustee of nor a beneficiary of the trust established to hold
such controlling interest (the “Voting Trust”) and accordingly,
determined that he lacked any standing to bring before the trial court
matters relating to the internal affairs of that trust, such as the
appointment of a trustee ad litem. The Court of Appeals also noted, in
an observation not material to the specific grounds on which the
California Trial Court’s order was struck down, but nevertheless likely
to be given weight by the court below, that “the plain language [of the
Trust Document] appears to show that the settlor [Mr. Cotter, Sr.]
instructed the Trustee [Margaret Cotter] not to diversify [i.e. not to
sell the voting shares held by the Voting Trust].” The Trust Document
directs the Trustee of the Voting Trust that this voting stock is “to be
retained for as long as possible.”
Ms. Margaret Cotter has advised the Board that she does not intend to
sell the controlling interest in our Company at this time, and that it
is her current intention that the Voting Trust hold such controlling
interest as provided in the Trust Document “as long as possible.”
We are informed that the Court of Appeal’s Order becomes final 30 days
after issuance.
The table below presents the changes in our working capital position and
other relevant information addressing our liquidity as of and for the
three months ended March 31, 2019 and preceding four years:
|
As of and for the 3-Months Ended |
Year Ended December 31 |
||||||||||||||||||||||||||||
| ($ in thousands) | 3/31/2019 | 2018 | 2017 | 2016 |
2015( (2)) |
||||||||||||||||||||||||
| Total Resources (cash and borrowings) | |||||||||||||||||||||||||||||
| Cash and cash equivalents (unrestricted) | $ | 12,648 | $ | 13,127 | $ | 13,668 | $ | 19,017 | $ | 19,702 | |||||||||||||||||||
| Unused borrowing facility | 107,111 | 85,886 | 137,231 | 117,599 | 70,134 | ||||||||||||||||||||||||
| Restricted for capital projects (1) | 23,566 | 30,318 | 62,280 | 62,024 | 10,263 | ||||||||||||||||||||||||
| Unrestricted capacity | 83,545 | 55,568 | 74,951 | 55,575 | 59,871 | ||||||||||||||||||||||||
| Total resources at period end | 119,759 | 99,013 | 150,899 | 136,616 | 89,836 | ||||||||||||||||||||||||
| Total unrestricted resources at period end | 96,193 | 68,695 | 88,619 | 74,592 | 79,573 | ||||||||||||||||||||||||
| Debt-to-Equity Ratio | |||||||||||||||||||||||||||||
| Total contractual facility | $ | 290,879 | $ | 252,929 | $ | 271,732 | $ | 266,134 | $ | 207,075 | |||||||||||||||||||
| Total debt (gross of deferred financing costs) | 184,099 | 167,043 | 134,501 | 148,535 | 130,941 | ||||||||||||||||||||||||
| Current | 40,077 | 30,393 | 8,109 | 567 | 15,000 | ||||||||||||||||||||||||
| Non-current | 143,691 | 136,650 | 126,392 | 147,968 | 115,941 | ||||||||||||||||||||||||
| Finance lease liabilities | 331 | — | — | — | — | ||||||||||||||||||||||||
| Total book equity(2) | 179,946 | 180,547 | 181,618 | 146,890 | 138,951 | ||||||||||||||||||||||||
| Debt-to-equity ratio | 1.02 | 0.93 | 0.74 | 1.01 | 0.94 | ||||||||||||||||||||||||
| Changes in Working Capital | |||||||||||||||||||||||||||||
| Working capital (deficit) (3) | $ | (77,236 | ) | $ | (55,270 | ) | $ | (46,971 | ) | $ | 6,655 | $ | (35,581 | ) | |||||||||||||||
| Current ratio | 0.28 | 0.35 | 0.42 | 1.10 | 0.51 | ||||||||||||||||||||||||
| Capital Expenditures (including acquisitions) | $ | 11,476 | $ | 56,827 | $ | 76,708 | $ | 49,166 | $ | 53,119 | |||||||||||||||||||
| (1) |
This relates to the construction facilities specifically negotiated for: (i) Union Square redevelopment project, obtained in December 2016, and (ii) New Zealand construction projects, obtained in May 2015. The New Zealand construction loan expired December 31, 2018. |
|||||||
| (2) |
Certain 2015 balances included the restatement impact as a result |
|||||||
| (3) |
Typically our working capital (deficit) is negative as we receive revenue from our cinema business ahead of the time that we have to pay our associated liabilities. We use the money we receive to pay down our borrowings in the first instance. |
|||||||
Below is a summary of the available credit facilities as of March 31,
2019:
| As of March 31, 2019 | |||||||||||||||||||||||||
| (Dollars in thousands) |
Available Contractual Capacity |
Capacity Used |
Unused Capacity |
Restricted for Capital Projects |
Unrestricted Capacity |
||||||||||||||||||||
| Bank of America Credit Facility (USA) | $ | 55,000 | $ | 30,000 | $ | 25,000 | $ | — | $ | 25,000 | |||||||||||||||
| Bank of America Line of Credit (USA) | 5,000 | 3,500 | 1,500 | — | 1,500 | ||||||||||||||||||||
| Union Square Construction Financing (USA) | 57,500 | 33,934 | 23,566 | 23,566 | — | ||||||||||||||||||||
| NAB Corporate Term Loan (AU) (1) | 85,248 | 40,138 | 45,110 | — | 45,110 | ||||||||||||||||||||
| Westpac Bank Corporate (NZ) (1) | 21,824 | 9,889 | 11,935 | — | 11,935 | ||||||||||||||||||||
| Total | $ | 224,572 | $ | 117,461 | $ | 107,111 | $ | 23,566 | $ | 83,545 | |||||||||||||||
|
(1) |
The borrowings are denominated in foreign currency. The |
|||||||
The $23.6 million representing borrowings restricted for capital
projects is wholly composed of the $23.6 million of unused capacity for
the Union Square development and construction.
Our overall global operating strategy is to conduct business mostly on a
self-funding basis by country (except for funds used to pay an
appropriate share of our U.S. corporate overhead). However, we may, from
time to time, move funds between jurisdictions where circumstances merit
such action as part of our goal to minimize our cost of capital.
Trust Preferred Securities – On October 11, 2018, Reading secured a
waiver that provides significant additional financial flexibility
through the elimination of financial covenants with respect to our Trust
Preferred Securities through the end of the term loan in consideration
of payments totaling $1.6 million, consisting of an initial payment of
$1.1 million paid on October 31, 2018, and a contractual obligation to
pay $270,000 in October 2021 and $225,000 in October 2025.
Minetta/Orpheum Loan – On October 12, 2018, the Minetta and Orpheum
Theatres loan of $7.5 million was increased to $8.0 million and the
maturity extended to November 1, 2023.
Non-GAAP Financial Measures
This earnings release presents aggregate segment operating income, and
EBITDA, which are important financial measures for the Company, but are
not financial measures defined by U.S. GAAP.
These measures should be reviewed in conjunction with the relevant U.S.
GAAP financial measures and are not presented as alternative measures of
EPS, cash flows or net income as determined in accordance with U.S.
GAAP. Aggregate segment operating income and EBITDA, as we have
calculated them, may not be comparable to similarly titled measures
reported by other companies.
Aggregate segment operating income – We evaluate the
performance of our business segments based on segment operating income,
and management uses aggregate segment operating income as a measure of
the performance of operating businesses separate from non-operating
factors.
Contacts
Gilbert Avanes, Interim Chief Financial Officer
Andrzej
Matyczynski, Executive Vice President for Global Operations
Reading
International, Inc.
(213) 235-2240
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Innocan
Innocan Pharma Submits Investigational New Animal Drug Application to FDA’s Veterinary Center
HERZLIYA, Israel and CALGARY, AB, July 26, 2024 /PRNewswire/ — Innocan Pharma Corporation (CSE: INNO) (FSE: IP4) (OTCQB: INNPF) (“Innocan” or the “Company”), a pioneer in the pharmaceutical and biotechnology industries, is pleased to announce that the FDA’s Center for Veterinary Medicine (CVM) has granted the Company a sponsor fee waiver and assigned an Investigational New Animal Drug (INAD) number for its LPT-CBD (Liposome Platform Technology-Cannabidiol) product. This represents a significant step for the Company, as an INAD designation facilitates correspondence and data exchange with CVM to support LPT-CBD development as a new veterinary drug.
The Company further announced that following the assessment of LPT-CBD’s scientific package, the CVM recognized Innocan’s contribution to pursuing innovative animal drug products and technology and granted the company a sponsor fee waiver for fiscal year 2024.
Innocan’s LPT-CBD is a proprietary drug delivery platform designed to provide prolonged-release CBD for chronic pain and well-being management in animals. Over the past year, repeated administration of LPT-CBD in dogs and other animals has demonstrated both efficacy and tolerability, providing sufficient evidence for the INAD application.
“We are thrilled by CVM’s response,” said Prof. Chezy Barenholz, CSO of Innocan Pharma. “The granted INAD will allow us to advance the investigational studies of LPT-CBD and share knowledge to support future discussions with CVM on LPT-CBD’s development plan. Moreover, the fee waiver, granted by CVM, supports our development and pursuit of innovative animal drug products and technology, further validating our approach and potential impact in veterinary medicine.”
Dr. Eyal Kalo, R&D Director at Innocan, added, “LPT-CBD is a unique technology that has proven itself worthy of the INAD fee waiver granted by CVM. This will streamline our efforts to deliver a unique solution for chronic pain management to the animal market.”
About Innocan Pharma:
Innocan is a pharmaceutical tech company that operates under two main segments: Pharmaceuticals and Consumer Wellness. In the Pharmaceuticals segment, Innocan focuses on developing innovative drug delivery platform technologies comprises with cannabinoids science, to treat various conditions to improve patients’ quality of life. This segment involves two drug delivery technologies: (i) LPT CBD-loaded liposome platform facilitating exact dosing and the prolonged and controlled release of CBD into the blood stream. The LPT delivery platform research is in the preclinical trial phase for two indications: Epilepsy and Pain Management. In the Consumer Wellness segment, Innocan develops and markets a wide portfolio of innovative and high-performance self-care products to promote a healthier lifestyle. Under this segment Innocan has established a Joint Venture by the name of BI Sky Global Ltd. that focuses developing on advanced targeted online sales. https://innocanpharma.com/
Contact Information:
For Innocan Pharma Corporation:
Iris Bincovich, CEO
+1 5162104025
+972-54-3012842
+442037699377
info@innocanpharma.com
NEITHER THE CANADIAN SECURITIES EXCHANGE NOR ITS REGULATION SERVICES PROVIDER HAVE REVIEWED OR ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Caution Regarding Forward-Looking Information
Certain information set forth in this news release, including, without limitation, the Company’s plans for human trials of its LPT-CBD platform, is forward-looking information within the meaning of applicable securities laws. By its nature, forward-looking information is subject to numerous risks and uncertainties, some of which are beyond Innocan’s control. . The forward-looking information contained in this news release is based on certain key expectations and assumptions made by Innocan, including expectations and assumptions concerning the anticipated benefits of the products, satisfaction of regulatory requirements in various jurisdictions and satisfactory completion of production and distribution arrangements.
Forward-looking information is subject to various risks and uncertainties that could cause actual results and experience to differ materially from the anticipated results or expectations expressed in this news release. The key risks and uncertainties include but are not limited to: global and local (national) economic, political, market and business conditions; governmental and regulatory requirements and actions by governmental authorities; and potential disruption of relationships with suppliers, manufacturers, customers, business partners and competitors. There are also risks that are inherent in the nature of product distribution, including import/export matters and the failure to obtain any required regulatory and other approvals (or to do so in a timely manner). The anticipated timeline for entry to markets may change for a number of reasons, including the inability to secure necessary regulatory requirements, or the need for additional time to conclude and/or satisfy the manufacturing and distribution arrangements. As a result of the foregoing, readers should not place undue reliance on the forward-looking information contained in this news release. A comprehensive discussion of other risks that impact Innocan can be found in Innocan’s public reports and filings which are available under Innocan’s profile at www.sedarplus.ca.
Readers are cautioned that undue reliance should not be placed on forward-looking information as actual results may vary materially from the forward-looking information. Innocan does not undertake to update, correct or revise any forward-looking information as a result of any new information, future events or otherwise, except as may be required by applicable law.
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Cannabis
Verano Announces the Opening of Zen Leaf Fairless Hills, the Company’s Newest Affiliated Dispensary in Pennsylvania, in Prime New Location
- Zen Leaf Fairless Hills, the Company’s newest affiliated dispensary in Pennsylvania, relocated from its former home in Chester to 203 Lincoln Highway, a busy thoroughfare with daily traffic of over 17,000 vehicles per day1
- As the first medical cannabis dispensary in the city, Zen Leaf Fairless Hills will offer an elevated experience for area patients, including increased convenience and accessibility with numerous point-of-sale stations and kiosks for seamless in-store browsing and ordering
- Verano’s active operations span 13 states, comprised of 142 dispensaries and 13 cultivation and processing facilities with more than 1 million square feet of cultivation capacity
CHICAGO, July 26, 2024 (GLOBE NEWSWIRE) — Verano Holdings Corp. (Cboe CA: VRNO) (OTCQX: VRNOF) (“Verano” or the “Company”), a leading multi-state cannabis company, today announced the opening of Zen Leaf Fairless Hills in Pennsylvania on Friday, July 26th, following a ceremonial ribbon cutting at 11 a.m. local time. Zen Leaf Fairless Hills is located at 203 Lincoln Highway and will be open Monday through Saturday from 9 a.m. to 8 p.m. and Sunday from 10 a.m. to 6 p.m. local time.
The dispensary is located in Bucks County, the fourth largest county in the Commonwealth with a total population of over 630,0002 residents. To increase accessibility and convenience, Zen Leaf Fairless Hills features large in-store kiosks and numerous point-of-sale stations to enhance the browsing and ordering experience for patients. To celebrate the grand opening of Zen Leaf Fairless Hills and following a ceremonial ribbon cutting, patients will be greeted with complimentary deals and doorbusters on featured branded products.
“We are excited to bring the Zen Leaf experience to local patients in Fairless Hills, where our talented team members will continue to deliver hospitality-driven care and top-quality products for local patients,” said George Archos, Verano Founder and Chief Executive Officer. “As the Pennsylvania medical cannabis patient population continues to grow, we are grateful for the opportunity to deepen our roots in Bucks County at our newest Zen Leaf location in the Commonwealth, and look forward to providing a warm and welcoming environment for current and future patients.”
Zen Leaf Fairless Hills adds another convenient outlet for Philadelphia area patients, and solidifies Verano’s footprint in the state as one of the Company’s 18 affiliated Pennsylvania dispensaries. Verano’s Pennsylvania operations also include a state-of-the-art 62,000 square foot cultivation and processing facility in Chester, where the Company produces its signature Verano Reserve flower and Troches, concentrates and vapes; (the) Essence and Savvy flower and extracts; and Avexia RSO cannabis oil and topicals. For additional convenience and accessibility, patients can choose to order ahead at ZenLeafDispensaries.com for express in-store pickup.
About Verano
Verano Holdings Corp. (Cboe CA: VRNO) (OTCQX: VRNOF), one of the U.S. cannabis industry’s leading companies based on historical revenue, geographic scope and brand performance, is a vertically integrated, multi-state operator embracing a mission of saying Yes to plant progress and the bold exploration of cannabis. Verano provides a superior cannabis shopping experience in medical and adult use markets under the Zen Leaf™ and MÜV™ dispensary banners, including Cabbage Club™, an innovative annual membership program offering exclusive benefits for cannabis consumers. Verano produces a comprehensive suite of high-quality, regulated cannabis products sold under its diverse portfolio of trusted consumer brands including Verano™, (the) Essence™, MÜV™, Savvy™, BITS™, Encore™, and Avexia™. Verano’s active operations span 13 U.S. states, comprised of 13 production facilities with over 1,000,000 square feet of cultivation capacity. Learn more at Verano.com.
Contacts:
Media
Verano
Steve Mazeika
VP, Communications
Steve.Mazeika@verano.com
Investors
Verano
Julianna Paterra, CFA
VP, Investor Relations
Julianna.Paterra@verano.com
Forward Looking Statements
This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking statements are not representative of historical facts or information or current condition, but instead represent only the Company’s beliefs regarding future events, plans, strategies, or objectives, many of which, by their nature, are inherently uncertain and outside of the Company’s control. Generally, such forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “future”, “scheduled”, “estimates”, “forecasts”, “projects,” “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases, or may contain statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “will continue”, “will occur” or “will be achieved”. Forward-looking statements involve and are subject to assumptions and known and unknown risks, uncertainties, and other factors which may cause actual events, results, performance, or achievements of the Company to be materially different from future events, results, performance, and achievements expressed or implied by forward-looking statements herein, including, without limitation, the risk factors described in the Company’s annual report on Form 10-K for the year ended December 31, 2023, its quarterly report on Form 10-Q for the quarter ended March 31, 2024 and any subsequent quarterly reports on Form 10-Q, in each case, filed with the U.S. Securities and Exchange Commission at www.sec.gov. The Company makes no assurances and cannot predict the outcome of all or any part of the on-going litigation with Goodness Growth referenced in this press release, including whether the Company will prevail on its Notice of Application and its counterclaim, or whether Goodness Growth will prevail on its claim for damages against the Company. The forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake to update any forward-looking information or forward-looking statements that are contained or referenced herein, except as may be required in accordance with applicable securities laws. All subsequent written and oral forward-looking information and statements attributable to the Company or persons acting on its behalf is expressly qualified in its entirety by this notice regarding forward-looking information and statements.
###
1 Pennsylvania Department of Transportation
2 United States Census Bureau
Cannabis
Unlocking New Horizons in Health: TNR, The Niche Research Reveals the Transformative Power of Minor Cannabinoids
Wilmington, Delaware, July 25, 2024 (GLOBE NEWSWIRE) — Minor cannabinoids refer to the lesser-known compounds found in the cannabis plant, distinct from the well-known THC (tetrahydrocannabinol) and CBD (cannabidiol). While THC and CBD dominate the market, minor cannabinoids such as CBG (cannabigerol), CBC (cannabichromene), and CBN (cannabinol) are gaining attention for their potential therapeutic benefits. These compounds are extracted from both marijuana and hemp plants, with varying legal restrictions depending on their THC content. The minor cannabinoids market is poised for significant growth, driven by increasing consumer awareness and demand for alternative health and wellness products. As regulatory environments around cannabis products evolve, companies are exploring the potential of minor cannabinoids in various applications, including pharmaceuticals, nutraceuticals, cosmetics, and food and beverages.
Minor cannabinoids are being researched for their potential therapeutic effects, including anti-inflammatory, analgesic, and neuroprotective properties. This versatility facilitates product diversification in various industries. Companies are investing in research and development to create novel formulations and delivery methods for minor cannabinoids. This includes nano-emulsions, encapsulation technologies, and controlled-release systems to enhance bioavailability and efficacy. For example, in January 2022, CBDA + CBGA Tincture a new product was launched by Hometown Hero CBD. This 30ml tincture contains 600mg each of CBGA, CBDA, CBG, and CBD. Derived from hemp, the cannabinoids in this tincture comply with legal requirements across all 50 states in the USA. There is an increasing consumer preference for natural as well as plant-based remedies, which in turn is driving the demand for cannabinoid-infused products. This trend is particularly strong among younger demographics seeking alternatives to traditional pharmaceuticals. Evolving regulatory frameworks, particularly in regions like North America and Europe, are creating opportunities for legal market expansion. Regulatory clarity is crucial for market participants to navigate compliance and market entry.
Global Minor Cannabinoids Market: Key Datapoints
|
Market Value in 2023 |
US$ 17.8 Bn |
|
Market Value Forecast by 2034 |
US$ 42.3 Bn |
|
Growth Rate
|
8.2% |
|
Historical Data
|
2016 – 2022 |
|
Base Year
|
2023 |
|
Forecast Data
|
2024 – 2034 |
Increasing consumer interest in health and wellness products, coupled with the perceived therapeutic benefits of cannabinoids, is a major driver of market growth. Progressive cannabis legalization in various parts of the world, including the United States and parts of Europe, is expanding the addressable market for minor cannabinoids. Significant investments in research and development by pharmaceutical and biotechnology companies are accelerating product innovation and clinical trials. The market remains fragmented with opportunities for new entrants and niche players to introduce specialized products catering to specific consumer needs.
The COVID-19 pandemic initially disrupted supply chains and retail channels for minor cannabinoids products. However, the crisis also underscored the importance of health and wellness, leading to increased interest in natural remedies, including cannabinoids. As economies recover, the market is expected to rebound stronger.
The geopolitical tensions, such as the Russia-Ukraine conflict, have also affected global markets, including the minor cannabinoids sector. Fluctuating currency values, supply chain disruptions, and geopolitical uncertainty have impacted production and distribution channels. However, the long-term impact will depend on geopolitical developments and their influence on global trade and regulatory environments.
The minor cannabinoids market presents significant opportunities for growth and innovation, driven by evolving consumer preferences, regulatory advancements, and expanding research initiatives. Companies that can navigate regulatory complexities, invest in research and development, and respond to shifting consumer trends are well-positioned to capitalize on this emerging market. As the market matures, collaboration across sectors and regions will be crucial in unlocking the full potential of minor cannabinoids in various industries worldwide.
Global Minor Cannabinoids Market: Key Takeaways of the Report
- Cannabigerol (CBG) segment by product type is expected to grow at a CAGR of 6.7% in the minor cannabinoids market due to increasing research highlighting its potential therapeutic benefits, including anti-inflammatory, antimicrobial, and neuroprotective properties. As consumer awareness grows and regulatory environments become more favorable, there is heightened interest in CBG-based products for their diverse health applications, ranging from skincare to pharmaceutical formulations, driving sustained market demand and expansion.
- Pharmaceutical segment by application, leads the minor cannabinoids market with a significant revenue share of 35.8% owing to growing recognition of cannabinoids’ potential in therapeutic applications. Cannabinoids like CBD, CBG, and others show promise in treating conditions such as epilepsy, chronic pain, and anxiety disorders, backed by increasing clinical research and favorable regulatory developments. Pharmaceutical companies are investing heavily in cannabinoid-based drug development, driving market growth as they seek to capitalize on these compounds’ efficacy and market potential in addressing unmet medical needs.
- In 2023, Latin America is anticipated as fastest growing region in the global minor cannabinoids market due to evolving regulatory landscapes favoring cannabis legalization and cultivation. This shift is fostering a burgeoning industry infrastructure for cannabis extraction and product development. Additionally, increasing consumer acceptance of cannabinoid-based products for medicinal and wellness purposes is driving market expansion. With a vast potential consumer base and supportive regulatory frameworks, Latin America presents significant growth opportunities for companies seeking to enter or expand within the minor cannabinoids market.
Key Development:
- In December 2023, Rare Cannabinoid Company introduced Uplift Gummies infused with THC and THCV. These gummies combine the relaxing properties of Delta-9-THC with the energizing and appetite-controlling effects of CBD and THCV.
- In October 2022, High Tide Inc., a cannabis retailer, announced that its Colorado-based subsidiary, NuLeaf Naturals, had launched plant-based softgels and full-spectrum multicannabinoid oil in Manitoba. The products feature CBC, CBD, CBG, Delta-9 tetrahydrocannabinol (Delta 9), and CBN.
Browse Related Category Reports
Global Minor Cannabinoids Market:
- Aurora Europe GmbH
- BulKanna
- CBD. INC.
- Fresh Bros Hemp Company
- GCM Holdings, LLC (Global Cannabinoids)
- GenCanna.
- High Purity Natural Products.
- Laurelcrest
- Mile High Labs
- PBG Global
- Rhizo Sciences
- ZERO POINT EXTRACTION, LLC
- Other Industry Participants
Global Minor Cannabinoids Market
By Product Type
- Cannabigerol (CBG)
- Cannabichromene (CBC)
- Cannabinol (CBN)
- Cannabidivarin (CBDV)
- Tetrahydrocannabutol (THCB)
- Tetrahydrocannabivarin (THCV)
- Tetrahydrocannabiphorol (THCP)
- Others
By Application
- Pharmaceutical
- Pain Management
- Mental Health
- Sleep Disorders
- Anti-inflammatory
- Others
- Nutraceuticals
- Cosmetics and Personal Care
- Food and Beverages
- Others
By Region
- North America (U.S., Canada, Mexico, Rest of North America)
- Europe (France, The UK, Spain, Germany, Italy, Nordic Countries (Denmark, Finland, Iceland, Sweden, Norway), Benelux Union (Belgium, The Netherlands, Luxembourg), Rest of Europe)
- Asia Pacific (China, Japan, India, New Zealand, Australia, South Korea, Southeast Asia (Indonesia, Thailand, Malaysia, Singapore, Rest of Southeast Asia), Rest of Asia Pacific)
- Middle East & Africa (Saudi Arabia, UAE, Egypt, Kuwait, South Africa, Rest of Middle East & Africa)
- Latin America (Brazil, Argentina, Rest of Latin America)
Consult with Our Expert:
Jay Reynolds
The Niche Research
Japan (Toll-Free): +81 663-386-8111
South Korea (Toll-Free): +82-808- 703-126
Saudi Arabia (Toll-Free): +966 800-850-1643
United Kingdom: +44 753-710-5080
United States: +1 302-232-5106
Email: askanexpert@thenicheresearch.com
Website: www.thenicheresearch.com
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