What changed in this filing

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Item 1A. Risk Factors

2022-08-04 compared with 2022-05-09 · 8 added, 37 removed, 31 unchanged (59% of the section changed)

Reference is made to Part I Item 1A.

Risk Factors in our Annual Report on Form 10–K for the year ended December 31, 2021, which sets forth information relating to important risks and uncertainties that could materially adversely affect our business, financial condition or operating results.

Except as set forth below, there have been no material changes to the risk factors contained in our Quarterly Report on Form 10-Q for the three months ended March 31, 2022.

Supply chain disruptions, labor shortages, increased cost and inflation may negatively impact our operations and operating results.

We rely on a limited number of suppliers for certain products, supplies and services, including a single U.S.

vendor for the warehousing and distribution of most of the products and supplies for our U.S.

food and beverage operations.

Items such as consumable oils used in food preparation and containers/packaging for food and beverage service have been impacted by price and availability in both the U.S.

markets and International markets.

Shortages, delays, or interruptions in the availability of food and beverage items and other supplies to our theatres may be caused by commodity availability;

public health crises or pandemics, including resulting lockdowns in areas where goods are manufactured;

social or economic unrest, terrorism, hostilities, cyber-attacks or war, including the conflict between Russia and Ukraine and the potential impact of financial and economic sanctions on the regional and global economy;

labor issues or other operational disruptions;

the inability of our suppliers to manage adverse business conditions, obtain credit or remain solvent;

adverse weather conditions;

natural disasters;

governmental regulation;

or other conditions beyond our control.

Such shortages, delays or interruptions could adversely affect the availability, quality, and cost of the items we buy and the operations of our business.

Supply chain risk could increase our costs and limit the availability of products that are critical to our operations.

If we raise prices in response to increased costs or shortages, it may negatively impact our sales.

If we temporarily remove popular food and beverage options without comparable alternatives, we may experience a reduction in sales during the time affected by the shortage or thereafter if our guests change their purchasing habits.

During the recovery from the impacts of the COVID-19 pandemic, we have, with regard to certain items, experienced difficulties in maintaining a consistent supply, seen delays in production and deliveries, been required to identify alternative suppliers, and suspended sales regionally or entirely.

We expect these issues to continue for the foreseeable future and plan to minimize the impact by focusing on the supply of those items with the greatest impact on our sales and operations.

One of the impacts of COVID-19 has been extended labor shortages, resulting in our demand for staff outweighing the available supply.

The success of our business depends on our ability to recruit and retain staff members for our theatres.

Without proper staffing, wait times to buy tickets and concessions are extended, operating hours may be reduced, and, in some cases, theatres cannot open at all.

As patrons begin to return to our theatres in greater numbers, these conditions may result in a poor guest experience, perhaps causing them to not return in the future.

These labor shortages have also required us to raise wages to be competitive in the small available workforce.

Increased labor costs cut into profits already extremely affected by COVID-19.

In addition, we are dependent upon natural gas and electricity to operate our theatres.

The cost of natural gas and electricity may fluctuate widely due to economic and political conditions, government policy and regulations, war, or other unforeseen circumstances.

Substantial future increases in prices for, or shortages of, natural gas and electricity could have a negative effect on our profitability.

There can be no assurance that we can cover these potential cost increases through future pricing actions.

Inflation may adversely affect us by increasing our food and beverage costs, utilities, and labor.

In an inflationary environment, such as the current economic environment, depending on the market conditions in each region or country, we may be unable to raise the prices of our movie tickets or food and beverage products enough to keep up with the rate of inflation, which would reduce our profitability, and continued inflationary pressures could impact our business, financial condition, and results of operations.

Risk Factors in our Annual Report on Form 10–K for the year ended December 31, 2021 and Part II Item 1A.

in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2022, which sets forth information relating to important risks and uncertainties that could materially adversely affect our business, financial condition or operating results.

The Annual Report on Form 10-K for the year ended December 31, 2021, also includes the risk factor titled “The market prices and trading volume that our shares of Common Stock have recently experienced, and may continue to experience, extreme volatility, which could cause purchasers of our Common Stock could incur substantial losses”, which risk factor continues to apply to our Common Stock and may also apply to our Preferred Equity Units.

Except as set forth below, there have been no material changes to the risk factors contained in our Annual Report on Form 10-K for the year ended December 31, 2021 and Part II Item 1A.

in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2022.

Our business is subject to international economic, political and other risks that could negatively affect our business, results of operations and financial condition.

As a result of our international operations, 28.3% of our revenues were derived from countries outside the United States for the three months ended March 31, 2022.

As a result of our international operations, 24.6% of our revenues were derived from countries outside the United States for the six months ended June 30, 2022.

The success of our international operations is subject to risks that are beyond our control.

2 unchanged sentences

● the impact of regional or country-specific business cycles and economic instability;

● the potential for political, social, or economic unrest, terrorism, hostilities, cyber-attacks or war, including the conflict between Russia and Ukraine and that Sweden and Finland (countries where we operate approximately 100 theatres) have recently agreed to submit simultaneous applications to the NATO alliance as early as May 2022, which could cause a deterioration in the relationship each country has with Russia, and the potential impact of financial and economic sanctions on the regional and global economy;

and NATO ambassadors signed the accession protocols on July 5, 2022, which could cause a deterioration in the relationship each country has with Russia, and the potential impact of financial and economic sanctions on the regional and global economy;

● fluctuations in foreign currency exchange rates which could lead to fluctuations in our reported results of operations or result in significant decreases in the value of our international investments as denominated in U.S.

24 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1A. Risk Factors