What Changed
Risk factors · Feb 28, 2025 → Feb 27, 202615 added · 9 removed between the two most recent 10-Ks. The risks a company starts — or stops — disclosing are often the story.
Newly disclosed
- Consolidation of major studios and distributors or the acquisition of a major studio and distributor by industry participants who do not distribute films to theatrical exhibition could significantly reduce the supply of film releases and have an adverse effect on our business.
- If our effective tax rate were to increase, or if the ultimate determination of our taxes owed in the U.S. or any of our jurisdictions is for an amount in excess of amounts previously accrued, our operating results, cash flows and financial condition could be adversely affected. 17 Table of Contents General Risks Our business and operations could be negatively affected if we become subject to any securities litigation or shareholder activism, which could cause us to incur significant expense, hinder execution of our business strategy and impact our stock price.
- Additionally, potential labor disputes or intellectual property litigation related to AI usage could disrupt the studio production pipeline, leading to delays in our film supply.
- In the past, many companies that have experienced volatility in the market price of their stock have been subject to securities class action litigation.
- The impact from the adoption of artificial intelligence (“AI”) technology in film and content production continues to rapidly evolve in the industry.
- The adoption of generative AI in filmmaking may lead to a higher volume of low-cost, high-quality content available directly to consumers.
- The film distribution business is highly concentrated, with six major film distributors accounting for approximately 84% of U.S. box office revenues during 2025.
- Our ability to obtain additional financing and the terms of any such additional financing would depend in part on factors outside of our control, and we may be unable to obtain such additional financing on acceptable terms or at all. 11 Table of Contents The lack of both the quantity and audience appeal of motion pictures may adversely affect our financial results.
- Consolidation of major studios and distributors could limit our ability to maintain or negotiate favorable licensing terms, increasing our costs to obtain such films and adversely effecting our business and results of operations.
- We are periodically subject to audits on behalf of the film distributors to ensure that we are complying with the applicable license agreements.
- Variable or shorter theatrical-to-PVOD windows may condition consumers to wait for home releases, particularly for non-blockbuster titles.
- During periods of significant business disruption in the past we have suspended the payment of dividends on shares of our common stock.
No longer disclosed
- General Risks Our business and operations could be negatively affected if we become subject to any securities litigation or shareholder activism, which could cause us to incur significant expense, hinder execution of our business strategy and impact our stock price.
- For certain periods during fiscal 2020, all of fiscal 2021 and certain periods during fiscal 2022, we suspended the payment of dividends on shares of our common stock.
- We are periodically subject to audits on behalf of the film distributors to ensure that we are complying with the applicable license agreements. 12 Table of Contents The relative industry supply of available rooms at comparable lodging facilities may adversely affect our financial results.
- If our effective tax rate were to increase, or if the ultimate determination of our taxes owed in the U.S. or any of our jurisdictions is for an amount in excess of amounts previously accrued, our operating results, cash flows and financial condition could be adversely affected.
- Our ability to obtain additional financing and the terms of any such additional financing would depend in part on factors outside of our control, and we may be unable to obtain such additional financing on acceptable terms or at all.
- Failure to successfully identify, acquire and develop suitable and successful locations for new lodging properties and theatres will substantially limit our ability to achieve these important growth objectives.
- The lack of both the quantity and audience appeal of motion pictures may adversely affect our financial results.
- Financial Risks Adverse economic conditions in our markets may adversely affect our financial results.
- We resumed paying a quarterly dividend in September 2022.