Reading International Announces First Quarter 2017 Results

  • Record First Quarter Revenues of $69.5 million
  • First Quarter EBITDA of $10.5 Million, Second Highest First Quarter on Record
  • Basic EPS of $0.13, a 30% increase over comparable quarter, tied First Quarter Record

Earnings Call Webcast was posted on our Corporate Website on Wednesday, May 10, 2017 discussing 2017 First Quarter Financial Results

Reading International, Inc. (NASDAQ: RDI) today announced results for the first quarter ended March 31, 2017. Consolidated revenues for the first quarter of 2017 increased by 7% (or $4.7 million) primarily due to higher admissions and increased food & beverage (“F&B”) revenues in our cinema businesses in the U.S. and Australia, offset by lost revenue from the closure of our Courtenay Central cinema in Wellington, New Zealand due to an earthquake in November 2016. Our Courtenay Central cinema re-opened on March 29, 2017. For the first quarter, on a local currency basis, revenues for U.S. and Australia increased by 5% and 11%, respectively. Q1 2017 Revenues represented the highest level achieved for any first quarter in our company’s history.

Earnings per share (“EPS”) for the quarter was $0.13, compared to prior-year quarter of $0.10. The $0.03 increase in our EPS was primarily driven by: (i) 46% increase in our segment operating income in our Australian cinema operations due to increased attendance and higher F&B revenues, enhancing our EPS by $0.06, (ii) foreign currency gain recognized on short-term intercompany loans, which increased our EPS by $0.02, and (iii) offset by a $0.05 reduction due to the temporary closure of our Courtenay Central entertainment-themed center (“ETC”) in Wellington, New Zealand, as a result of the previously-mentioned earthquake.

The following table summarizes the first quarter results for 2017 and 2016:

      Three Months Ended
                  % Change
(Dollars in millions, except EPS)     March 31,
    March 31,
Revenue     $ 69.5     $ 64.8       7   %
- US       36.9       35.0       5   %
- Australia       27.2       23.1       18   %
- New Zealand       5.4       6.7       (19 ) %
Segment operating income (1)     $ 10.4     $ 9.8       6   %

Net income (2)

    $ 3.0     $ 2.2       36   %
EBITDA (1)     $ 10.5     $ 9.1       15   %
Adjusted EBITDA (1)     $ 11.2     $ 9.1       23   %
Basic EPS (2)     $ 0.13     $ 0.10       30   %



Aggregate segment operating income and earnings before interest expense (net of interest income), income tax expense, depreciation and amortization expense (“EBITDA”) are non-GAAP financial measures. See the discussion of non-GAAP financial measures that follows.



Reflect amounts attributable to stockholders of Reading International, Inc., i.e. after deduction of noncontrolling interests.


“We continued to break records in the first quarter of 2017 as our revenues and operating income for the period represented the highest level achieved for any first quarter in the history of our company,” said Ellen Cotter, Chair, President and Chief Executive Officer. “During the quarter, we grew our cinema circuit and executed on our global cinema strategy, which helped drive our performance with increased attendance and higher food and beverage revenues. We are making tangible progress on our three-year business strategy to elevate the cinematic experience for our guests and the continued redevelopment of our real estate assets to drive long-term value for stockholders.”


  • Operating Results. Revenues and Operating Income for the first quarter 2017 represented the highest levels achieved for any first quarter in the history of the Company.
  • Cinema activities: We continue to grow our worldwide cinema circuit
    • In March 2017, we entered into an agreement to lease an 8-screen complex with an initial term of 15 years. Located in the city of Brisbane, 7 minutes from the Central Business District and South of the Brisbane River, South City Square is a 2.1-hectare former industrial site being redeveloped into a major residential, hotel, retail and entertainment lifestyle complex by Pellicano Property and Perri Projects. Our cinema complex in this location will be one of two major anchor tenants for that approximately AU$600 million or US$458 million project. We anticipate this cinema to come online in 2019.
    • In addition, our Board has approved the development of two (2) more new leasehold cinemas in Australia and one (1) in New Zealand, which are anticipated to come online during 2019 and 2020.
    • On October 21, 2016, we opened Olino by Consolidated Theatres, our ninth theatre in Hawaii and our first to open in the state since 2001. Olino features luxurious amenities, including electric recliner seats, expansive wall-to-wall screens and pristine digital projection by Barco, the leader in digital cinema technology, and an elevated, locally inspired food and beverage menu. The theatre also features a TITAN LUXE, a premium auditorium with immersive sound by Dolby ATMOS.
    • We continue to execute our strategic priority of upgrading F&B offerings, having obtained liquor licenses for 24 of our current cinema locations in the U.S., Australia and New Zealand.
  • Real estate activities
    • Insurance Claim Settlement relating to the Earthquake Damage on our Courtenay Central Parking Building (Wellington, New Zealand) – we were advised by our insurance carrier that we will be paid the policy maximum of $25 million (remaining balance to be paid is US $20 million, $5.0 million already advanced in December 2016) with respect to our claims for earthquake damage to the parking building adjacent to our Courtenay Central ETC and related business interruption. While the earthquake has slowed the redevelopment activities in progress at that location, the demolition of the parking structure has opened additional expansion opportunities for our Courtenay Central ETC.
    • Union Square Redevelopment (New York, U.S.) – we secured construction financing for our Union Square property in December 2016 and entered into a guaranteed maximum price construction management agreement with an affiliate of CNY. Construction is now underway. We currently anticipate the re-developed property will be ready for retail tenant fit-out by the end of the second quarter of 2018. Retail and office leasing interest to date has been strong. This redevelopment will add approximately 23,000 square footage of rentable space to the current square footage of the building for an approximate total of 73,322 square feet of rentable space, inclusive of anticipated BOMA adjustments and subject to lease negotiations and the final tenant mix.
    • Newmarket Expansion (Brisbane, Australia) – in the third quarter of 2016, we commenced the construction on our expansion project at our Newmarket shopping center in Brisbane, Australia, with a projected opening in the fourth quarter of 2017. This expansion project includes the addition of an eight-screen Reading Cinemas and approximately 10,297 square feet of additional retail space and 142 car parks. We have entered into heads of agreement to lease approximately 3,315 square feet of this new space.
    • Burwood Early Payment (Australia) – the buyer of our Burwood Property has informed us that it is under contract to sell a portion of this property. Upon closing of that sale, a prepayment of $16.7 million (AU$21.8 million), representing 90% of the net sales price, becomes payable to Reading.
    • Manukau Land Rezoning (Auckland, New Zealand) – in August 2016, the Auckland City Council re-zoned 64.0 acres of our 70.4 acre property in Manukau from agricultural to light industrial use. The remaining 6.4 acres were already zoned for heavy industrial use. Now that our zoning enhancement goal is achieved, we are reviewing our options with respect to the commercial exploitation of this asset. We see this property as a future value realization opportunity to us. This tract is adjacent to the Auckland Airport, which has recently been expanding towards our property.
    • Occupancy of New Headquarters Building (Culver City, CA, U.S.) – during February 2017, we relocated our corporate headquarters into the 24,000 square foot Culver City office building that we purchased in April 2016. We currently use approximately 50% of the leasable area for our corporate headquarters and intend to lease, over time, the remainder to unaffiliated third parties. We purchased the property for $11.2 million in cash, financing the property in December 2016 with an $8.4 million 10-year, fixed-rate mortgage at 4.64%.
  • Corporate Matters
    • The 2017 Annual Stockholders’ Meeting of the Company will be held in mid-September 2017.
    • On March 2, 2017, our Board of Directors authorized Management to repurchase up to $25,000,000 of our Class A Common Stock.
    • On April 26, 2017, our Board adopted a stock ownership policy setting prescribed minimum levels of stock ownership for our directors, our chief executive officer and our senior executives at three time (3X), six times (6X) and one times (1X) base directors fees or salary (as applicable), respectively, to be measured annually by reference to trading prices at the end of each year. Covered individuals are given five years to achieve these minimum levels of stock ownership.


The following table summarizes the first quarter segment operating results for 2017 and 2016:

      Three Months Ended
                  % Change
(Dollars in thousands)     March 31,
    March 31,
Segment revenue                            


United States     $ 36,236       $ 34,058         6   %
Australia       24,958         21,004         19   %
New Zealand (reflecting Courtenay Central closure)       5,366         6,253         (14 ) %
Total     $ 66,560       $ 61,315         9   %

Real estate

United States     $ 586       $ 859         (32 ) %
Australia       3,586         3,311         8   %
New Zealand (reflecting Courtenay Central closure)       325         1,080         (70 ) %
Total     $ 4,497       $ 5,250         (14 ) %
Inter-segment elimination       (1,603 )       (1,776 )       10   %
Total segment revenue     $ 69,454       $ 64,789         7   %
Segment operating income (loss)                            


United States     $ 2,507       $ 2,555         (2 ) %
Australia       5,945         4,064         46   %
New Zealand (reflecting Courtenay Central closure)       641         1,071         (40 ) %
Total     $ 9,093       $ 7,690         18   %

Real estate

United States     $ 28       $ 70         (60 ) %
Australia       1,408         1,591         (12 ) %
New Zealand (reflecting Courtenay Central closure)       (142 )       428         (133 ) %
Total     $ 1,294       $ 2,089         (38 ) %
Total segment operating income (1)     $ 10,387       $ 9,779         6   %



Aggregate segment operating income is a non-GAAP financial measure. See the discussion of non-GAAP financial measures that follows.


Cinema Exhibition

Cinema operating income for the first quarter 2017 increased 18% or $1.4 million, to $9.1 million over the prior-year quarter, primarily driven by higher admission and F&B revenues and the favorable foreign currency movements on our Foreign Operations. These were offset by the temporary closure of our Courtenay Central Cinemas in Wellington, New Zealand due to the earthquake. Refer below for the operating results by country:

  • First quarter 2017 revenue in the U.S. increased by 6%, or $2.2 million, primarily driven by increased attendance (including the impact of the opening of our Olino by Consolidated Theatres in Hawaii in October 2016), an increase in average ticket prices and higher F&B revenues.
  • Australia cinema revenue increased by 19%, or $4.0 million, primarily due to a significant increase in attendance, more appealing film slate and favorable foreign currency movements.
  • In New Zealand, cinema revenue decreased by 14%, or $887,000, mainly due to lower attendance due to the temporary closure of the Courtenay Central Cinemas, offset to some extent by the favorable impact from stronger foreign exchange rates.

The top three grossing films for the first quarter 2017 were “Beauty and the Beast”, “Logan”, and “Lion” representing approximately 21% of Reading’s worldwide admission revenues for the quarter. The top three grossing films in the first quarter 2016 for Reading’s worldwide cinema circuits were “Deadpool”, “Star Wars: The Force Awakens”, and “Batman v Superman: Dawn of Justice”, which represented approximately 28% of Reading’s admission revenues for the first quarter of 2016.

Real Estate

Real estate segment operating income for the first quarter 2017 decreased 38% or $795,000 compared to 2016, to $1.3 million, primarily driven by lower property revenues in New Zealand due to the closure of our Courtenay Central ETC for most of the quarter.


The first quarter consolidated and non-segment results for 2017 and 2016 are summarized as follows:

      Three Months Ended
                  % Change
(Dollars in thousands)    

March 31,


March 31,

Segment operating income     $ 10,387       $ 9,779         6   %
Non-segment income and expenses:                          
General and administrative expense       (4,753 )       (4,991 )       5   %
Interest expense, net       (1,860 )       (1,875 )       1   %
Gain on sale of assets       -         393         (100 ) %
Other       970         149         551   %
Total non-segment income and expenses     $ (5,643 )     $ (6,324 )       11   %
Income before income taxes       4,744         3,455         37   %
Income tax expense       (1,703 )       (1,231 )       (38 ) %
Net income     $ 3,041       $ 2,224         37   %
Less: net income (loss) attributable to noncontrolling interests       12         (2 )       700   %
Net income attributable to RDI common stockholders     $ 3,029       $ 2,226         36   %

First Quarter Results

Net income attributable to RDI common stockholders for the first quarter 2017 increased by $803,000, or 36%, to $3.0 million, mainly attributable to (i) an increase in our segment operating income due to increased attendance in our cinema businesses in the U.S. and Australia, (ii) the foreign currency gain recognized on short-term intercompany loans, and (iii) offset by the impact of the closure of our Courtenay Central ETC as a result of the November 2016 earthquake.

The key non-segment factors affecting our consolidated results for the First Quarter 2017 are discussed in more detail below:

  • General and administrative expense for the three months ended March 31, 2017 compared to the same period of the prior year decreased by 5%, or $238,000. This decrease mainly relates to the additional expenses paid in 2016 in connection with the 2015 year-end audit. Legal expenses incurred on the Derivative Litigation and the Cotter Employment Arbitration during the quarter ended March 31, 2017 totaled $645,000. In the same quarter of 2016, Derivative Litigation expense was reimbursed from the Company’s Directors’ and Officers’ (“D&O”) Insurance Program.
  • Net gain on sale of assets for the three-month period March 31, 2016 represents the gain from the final closing of the second sale agreement of the Taupo property in New Zealand in the amount of $393,000 (NZ$585,000).
  • Income tax expense for the three months ended March 31, 2017 increased by $472,000 or 38% compared to the prior-year three-month period mainly due to significant increase in pre-tax income.


Balance Sheet and Liquidity

Total assets increased to $410.4 million at March 31, 2017, compared to $405.8 million at December 31, 2016, primarily driven by (i) increases in our operating and investment properties during the quarter, and (ii) foreign currency movements of the asset accounts on our Australian and New Zealand operations based on the relative strengthening of the currencies on these economies to the U.S. dollar.

Cash and cash equivalents at March 31, 2017 were $11.0 million, including $7.2 million in the U.S., $2.6 million in Australia, and $1.2 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.

The table below demonstrates the changes in our financing arrangements, working capital position and other relevant information addressing our liquidity for the quarter ended March 31, 2017 and preceding four years:

      First Quarter     Year Ended December 31
($ in thousands)     2017     2016     2015     2014     2013
Net Cash from Operating Activities     $ 311     $ 30,188     $ 28,574       $ 28,343       $ 25,183  
Total Resources (cash and borrowings)                                        
Cash and cash equivalents (unrestricted)     $ 11,031     $ 19,017     $ 19,702       $ 50,248       $ 37,696  
Unused borrowing facility       115,580       117,599       70,134         45,700         19,400  
Restricted for capital projects(1)       62,102       62,024       10,263         --         --  
Unrestricted capacity       53,478       55,575       59,871         45,700         19,400  
Total resources at period end       126,611       136,616       89,836         95,948         57,096  
Total unrestricted resources at period end       64,509       74,592       79,573         95,948         57,096  
Debt-to-Equity Ratio                                        
Total contractual facility     $ 268,944     $ 266,233     $ 207,075       $ 201,318       $ 187,860  
Total debt (gross of deferred financing costs)       153,364       148,535       130,941         164,036         168,460  
Current       587       567       15,000         38,104         75,538  
Non-current       152,777       147,968       115,941         125,932         92,922  
Total book equity       154,991       146,615       138,951         133,716         123,531  
Debt-to-equity ratio       0.99       1.01       0.94         1.23         1.36  
Changes in Working Capital                                        
Working capital (deficit)     $ 19,431     $ 6,655     $ (35,581 )     $ (15,119 )     $ (75,067 )
Current ratio       1.34       1.10       0.51         0.84         0.43  
Capital Expenditures (including acquisitions)     $ 8,478     $ 49,166     $ 53,119       $ 14,914       $ 20,082  



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.


Below is a summary of the available credit facilities as of March 31, 2017:

      As of March 31, 2017
(Dollars in thousands)    







Restricted for
Capital Projects



Bank of America Credit Facility (USA)     $ 55,000     $ 39,000     $ 16,000     $ --     $ 16,000
Bank of America Line of Credit (USA)       5,000       1,000       4,000       --       4,000
Union Square Construction Financing (USA)       57,500       8,000       49,500       49,500       -
NAB Corporate Term Loan (AU) (1)       50,793       31,316       19,477       --       19,477
Westpac Corporate Credit Facility (NZ) (1)       37,105       10,502       26,603       12,602       14,002
Total     $ 205,398     $ 89,818     $ 115,580     $ 62,102     $ 53,478



The borrowings are denominated in foreign currency. The contractual capacity and capacity used were translated into U.S. dollars based on the applicable exchange rates as of March 31, 2017.


The $62.1 million representing borrowings restricted for capital projects is composed of the $49.5 million and $12.6 million (NZ$18.0 million) unused capacity for Union Square development uses and construction funding for New Zealand operations, respectively.

Our overall global operating strategy is to conduct business mostly on a self-funding basis (except for funds used to pay an appropriate share of our U.S. corporate overhead). However, we may decide to move funds between jurisdictions where circumstances merit such action. For example, given the interest savings generated from using funds through the repayment of intercompany loans by our Australian subsidiary to finance a portion of our Union Square redevelopment project rather than paying for high interest mezzanine loans (which will yield overall notional all-in interest savings of approximately 10.0%), we moved $20.0 million of our intercompany loan to short-term from long-term category. Effectively, we sourced our Union Square financing needs from our available credit line in Australia and moved it from our Australian subsidiary to the U.S. as a repayment of intercompany loans. As a result, we recognized a gain of $825,000 representing the foreign currency movement on the intercompany advances based on the relative strengthening of the Australian dollar to the U.S. dollar for the quarter ended March 31, 2017.

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 US 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. We believe that information about aggregate segment operating income assists investors by allowing them to evaluate changes in the operating results of the Company’s portfolio of business separate from non-operational factors that affect net income, thus providing separate insight into both operations and the other factors that affect reported results. Refer to “Consolidated and Non-Segment Results for a reconciliation of segment operating income to net income.

EBITDA – we present EBITDA as a supplemental measure of its performance, which is commonly used in our industry. We define EBITDA as net income adjusted for interest expense (net of interest income), income tax expense, depreciation and amortization expense, and an adjustment of interest expense, depreciation, and amortization for discontinued operations, if any. EBITDA is a non-GAAP financial measure commonly used in our industry and should not be construed as an alternative to net earnings (loss) as an indicator of operating performance or as an alternative to cash flow provided by operating activities as a measure of liquidity (as determined in accordance with U.S. GAAP). We have included EBITDA in this Earnings Release, as we believe that it provides management and our investors with additional information necessary to properly measure our performance and liquidity, estimate our value and evaluate our ability to service debt.

Adjusted EBITDA – using the principles, we consistently apply to determine our EBITDA, we further adjusted the EBITDA for a certain item we believe are appropriate adjustable item, described as follows:

  • Legal expenses relating to the derivative litigation and James J. Cotter, Jr. employment arbitration – while we started to incur expenses in relation to these legal matters in 2015, we believe that the majority of these costs were thrust upon the Company as it became necessary to vigorously defend the Company’s position in the derivative litigation and to resolve Mr. Cotter, Jr.’s claims relating to his termination. For this reason, these costs should also be treated as non-recurring in nature and accordingly, an adjustable item for purposes of determining our Adjusted EBITDA.

We have not made adjustments for any gains relating to property sales in line with our overall business strategy that any time, we may decide to dispose of any property when we believe that an asset had reached the highest value that we could reasonably achieve without investing substantial additional sums for land use planning, construction and marketing.

Reconciliation of EBITDA to net income is presented below:

      Three Months Ended
      March 31     March 31
(Dollars in thousands)     2017     2016
Net Income     $ 3,029     $ 2,226
Add: Interest expense, net       1,860       1,875
Add: Income tax expense       1,703       1,231
Add: Depreciation and amortization       3,934       3,808
EBITDA     $ 10,526     $ 9,140
Adjustments for:                
Legal expenses relating to the derivative ligation and Cotter employment arbitration       645       --
Adjusted EBITDA     $ 11,171     $ 9,140

Conference Call and Webcast

We plan to post our pre-recorded conference call and audio webcast on our corporate website on Wednesday May 10, 2017 that will feature prepared remarks from Ellen Cotter, President & Chief Executive Officer; Dev Ghose, Executive Vice President & Chief Financial Officer; and Andrzej Matyczynski, Executive Vice President - Global Operations.

A pre-recorded question and answer session will follow our formal remarks. Questions and topics for consideration should be submitted to by close of business on Tuesday, May 9, 2017. The audio webcast can be accessed by visiting

About Reading International, Inc.

Reading International ( is in the business of owning and operating cinemas and developing, owning, and operating real estate assets. Our business consists primarily of:

  • the development, ownership, and operation of multiplex cinemas in the United States, Australia and New Zealand; and
  • the development, ownership, and operation of retail and commercial real estate in Australia, New Zealand, and the United States, including entertainment-themed centers in Australia and New Zealand and live theater assets in Manhattan and Chicago in the U.S.

Reading manages its worldwide business under various brands:

Forward-Looking Statements

Our statements in this press release contain a variety of forward-looking statements as defined by the Securities Litigation Reform Act of 1995. Forward-looking statements reflect only our expectations regarding future events and operating performance and necessarily speak only as of the date the information was prepared. No guarantees can be given that our expectation will in fact be realized, in whole or in part. You can recognize these statements by our use of words such as, by way of example, “may,” “will,” “expect,” “believe,” and “anticipate” or other similar terminology.

These forward-looking statements reflect our expectation after having considered a variety of risks and uncertainties. However, they are necessarily the product of internal discussion and do not necessarily completely reflect the views of individual members of our Board of Directors or of our management team. Individual Board members and individual members of our management team may have different views as to the risks and uncertainties involved, and may have different views as to future events or our operating performance.

Among the factors that could cause actual results to differ materially from those expressed in or underlying our forward-looking statements are the following:

  • With respect to our cinema operations:
    • The number and attractiveness to movie goers of the films released in future periods;
    • The amount of money spent by film distributors to promote their motion pictures;
    • The licensing fees and terms required by film distributors from motion picture exhibitors in order to exhibit their films;
    • The comparative attractiveness of motion pictures as a source of entertainment and willingness and/or ability of consumers (i) to spend their dollars on entertainment and (ii) to spend their entertainment dollars on movies in an outside the home environment; and
    • The extent to which we encounter competition from other cinema exhibitors, from other sources of outside of the home entertainment, and from inside the home entertainment options, such as “home theaters” and competitive film product distribution technology such as, by way of example, cable, satellite broadcast, DVD rentals and sales, and online streaming.
  • With respect to our real estate development and operation activities:
    • The rental rates and capitalization rates applicable to the markets in which we operate and the quality of properties that we own;
    • The extent to which we can obtain on a timely basis the various land use approvals and entitlements needed to develop our properties;
    • the risks and uncertainties associated with real estate development;
    • The availability and cost of labor and materials;
    • Competition for development sites and tenants;
    • The extent to which our cinemas can continue to serve as an anchor tenant that will, in turn, be influenced by the same factors as will influence generally the results of our cinema operations; and
    • Certain of our activities are in geologically active areas, creating a risk of damage and/or disruption of real estate and/or cinema businesses from earthquakes.
  • With respect to our operations generally as an international company involved in both the development and operation of cinemas and the development and operation of real estate; and previously engaged for many years in the railroad business in the United States:
    • Our ongoing access to borrowed funds and capital and the interest that must be paid on that debt and the returns that must be paid on such capital;
    • The relative values of the currency used in the countries in which we operate;
    • Changes in government regulation, including by way of example, the costs resulting from the implementation of the requirements of Sarbanes-Oxley;
    • Our labor relations and costs of labor (including future government requirements with respect to pension liabilities, disability insurance and health coverage, and vacations and leave);
    • Our exposure from time-to-time to legal claims and to uninsurable risks such as those related to our historic railroad operations, including potential environmental claims and health related claims relating to alleged exposure to asbestos or other substances now or in the future recognized as being possible causes of cancer or other health-related problems;
    • Changes in future effective tax rates and the results of currently ongoing and future potential audits by taxing authorities having jurisdiction over our various companies; and
    • Changes in applicable accounting policies and practices.

The above list is not necessarily exhaustive, as business is by definition unpredictable and risky, and subject to influence by numerous factors outside of our control, such as changes in government regulation or policy, competition, interest rates, supply, technological innovation, changes in consumer taste and fancy, weather, and the extent to which consumers in our markets have the economic wherewithal to spend money on beyond-the-home entertainment.

Given the variety and unpredictability of the factors that will ultimately influence our businesses and our results of operation, no guarantees can be given that any of our forward-looking statements will ultimately prove to be correct. Actual results will undoubtedly vary and there is no guarantee as to how our securities will perform, either when considered in isolation or when compared to other securities or investment opportunities.

Finally, we undertake no obligation to publicly update or to revise any of our forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable law. Accordingly, you should always note the date to which our forward-looking statements speak.

Additionally, certain of the presentations included in this press release may contain “pro forma” information or “non-U.S. GAAP financial measures.” In such case, a reconciliation of this information to our U.S. GAAP financial statements will be made available in connection with such statements.


Reading International, Inc. and Subsidiaries

Unaudited Consolidated Statements of Operations

(Unaudited; U.S. dollars in thousands, except per share data)

      Three Months Ended
      March 31,     March 31,
      2017     2016
Cinema     $ 66,560       $ 61,315  
Real estate       2,894         3,474  
Total revenue       69,454         64,789  
Costs and expenses                
Cinema       (51,782 )       (47,957 )
Real estate       (2,036 )       (2,141 )
Depreciation and amortization       (3,934 )       (3,808 )
General and administrative       (6,174 )       (6,191 )
Total costs and expenses       (63,926 )       (60,097 )
Operating income       5,528         4,692  
Interest income       20         37  
Interest expense       (1,880 )       (1,912 )
Net gain on sale of assets       --         393  
Other income (expense)       821         (57 )
Income before income tax expense and equity earnings of unconsolidated joint ventures       4,489         3,153  
Equity earnings of unconsolidated joint ventures       255         302  
Income before income taxes       4,744         3,455  
Income tax expense       (1,703 )       (1,231 )
Net income     $ 3,041       $ 2,224  
Less: net income (loss) attributable to noncontrolling interests       12         (2 )
Net income attributable to Reading International, Inc. common shareholders     $ 3,029       $ 2,226  
Basic earnings per share attributable to Reading International, Inc. shareholders     $ 0.13       $ 0.10  
Diluted earnings per share attributable to Reading International, Inc. shareholders     $ 0.13       $ 0.09  
Weighted average number of shares outstanding–basic       23,168,351         23,334,892  
Weighted average number of shares outstanding–diluted       23,465,176         23,532,858  
Reading International, Inc. and Subsidiaries
Consolidated Balance Sheets

(U.S. dollars in thousands, except share information)

      March 31,     December 31,


ASSETS     (Unaudited)        
Current Assets:                
Cash and cash equivalents     $ 11,031       $ 19,017  
Receivables       6,700         8,772  
Inventory       1,326         1,391  
Prepaid and other current assets       17,052         5,787  
Land held for sale       39,800         37,674  
Total current assets       75,909         72,641  
Operating property, net       216,358         211,886  
Investment and development property, net       50,231         43,687  
Investment in unconsolidated joint ventures       5,259         5,071  
Goodwill       20,073         19,828  
Intangible assets, net       9,710         10,037  
Deferred tax asset, net       28,336         28,667  
Other assets       4,547         13,949  
Total assets     $ 410,423       $ 405,766  
Current Liabilities:                
Accounts payable and accrued liabilities     $ 21,412       $ 26,479  
Film rent payable       8,952         10,528  
Debt – current portion       587         567  
Taxes payable – current       3,758         3,523  
Deferred current revenue       9,791         10,758  
Other current liabilities       11,978         14,131  
Total current liabilities       56,478         65,986  
Debt – long-term portion       120,829         115,707  
Subordinated debt, net       27,393         27,340  
Noncurrent tax liabilities       20,084         19,953  
Other liabilities       30,648         30,165  
Total liabilities       255,432         259,151  
Commitments and contingencies                
Stockholders’ equity:                

Class A non-voting common stock, par value $0.01, 100,000,000 shares authorized, 32,903,825 issued and 21,503,376 outstanding at March 31, 2017, and 32,856,267 issued and 21,497,717 outstanding at December 31, 2016

      230         230  

Class B voting common stock, par value $0.01, 20,000,000 shares authorized and 1,680,590 issued and outstanding at March 31, 2017 and December 31, 2016

      17         17  

Nonvoting preferred stock, par value $0.01, 12,000 shares authorized and no issued or outstanding shares at March 31, 2017 and December 31, 2016

      --         --  
Additional paid-in capital       144,737         144,569  
Retained earnings       4,709         1,680  
Treasury shares       (17,045 )       (16,374 )
Accumulated other comprehensive income       17,936         12,075  
Total Reading International, Inc. stockholders’ equity       150,584         142,197  
Noncontrolling interests       4,407         4,418  
Total stockholders’ equity       154,991         146,615  
Total liabilities and stockholders’ equity     $ 410,423       $ 405,766  



Certain prior period amounts have been reclassified to conform to the current period presentation.


Reading International, Inc.
Dev Ghose, Executive Vice President & Chief Financial Officer
Andrzej Matyczynski, Executive Vice President for Global Operations
(213) 235-2240