UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
DC 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 OR 15(d) of the Securities Exchange Act of
1934
Date
of
report (Date of earliest event reported): August 8,
2007
Reading
International, Inc.
(Exact
Name of Registrant as Specified in its Charter)
|
Nevada
|
1-8625
|
95-3885184
|
|
(State
or Other Jurisdiction
of
Incorporation)
|
(Commission
File
Number)
|
(IRS
Employer
Identification
No.)
|
|
500
Citadel Drive, Suite 300, Commerce, California
|
90040
|
|
|
(Address
of Principal Executive Offices)
|
(Zip
Code)
|
|
Registrant's
telephone number, including area code (213)
235-2240
N/A
(Former
Name or Former Address, if Changed Since Last Report)
Check
the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:
|
¨
|
Written
communications pursuant to Rule 425 under the Securities Act (17
CFR
230.425)
|
|
¨
|
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
|
|
¨
|
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17
CFR
240.14d-2(b))
|
|
¨
|
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17
CFR
240.13e-4(c))
|
|
|
Item
2.02. Results of Operations and Financial
Condition.
|
On
August 8, 2007, Reading
International, Inc. issued a press release announcing information regarding
its
results of operations and financial condition for the quarter ended June 30,
2007, a copy of which is attached as Exhibit 99.1.
Item
9.01. Financial Statements and Exhibits.
|
99.1
|
Press
release issued by Reading International, Inc. pertaining to its results
of
operations and financial condition for the quarter ended June 30,
2007.
|
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant
has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
|
READING
INTERNATIONAL, INC.
|
||
|
Date:
August 8, 2007
|
By:
|
/s/
Andrzej Matyczynski
|
|
Name:
|
Andrzej
Matyczynski
|
|
|
Title:
|
Chief
Financial Officer
|
|
Reading
International Announces 2nd Quarter
2007
Results
|
|
|
·
Revenue from
continuing
operations for the quarter was up
12.6%
over
the 2006 quarter, to $30.1 million
|
|
|
|
·
Net
Income for
the quarter was $1.6
million
compared
to a
net
loss of
$234,000
in
the 2006 quarter
|
|
|
|
·
EBITDA
(1) for
the quarter was
$7.1
million up 42.7%,
compared
to
$5.0
million
in
2006 quarter
|
Los
Angeles, California, - (PR NEWSWIRE) –August 08, 2007 – Reading
International, Inc. (AMEX: RDI) announced today results for its quarter and
six
months ended June 30, 2007.
Second
Quarter 2007 Highlights
Our
year-to-year results of operations were
principally impacted by the
following:
|
|
·
|
the
opening in the fourth quarter of 2005 and the occupancy of the majority
of
tenancies during first and second quarters of 2006 of our Newmarket
Shopping Center, a 100,000 square foot retail center in a suburb
of
Brisbane, Australia;
|
|
|
·
|
the
sale of our 50% share of the cinemas at Whangaparaoa, Takapuna and
Mission
Bay, New Zealand formerly part of the Berkeley Cinemas Group effective
August 28, 2006;
|
|
|
·
|
the
acquisition in February 2007, of the long-term ground lease interest
underlying our Tower Theater in Sacramento, California (the principal
art
cinema in Sacramento);
|
|
|
·
|
through
June 30, 2007, the sale of 66 out of 67 residential units comprising
our
Place 57 residential condominium tower in Manhattan, in which we
own a 25%
interest. There was 1 unit closed in the 2007 quarter compared
to 11 in the 2006 quarter; and
|
|
|
·
|
the
increase in the value of the Australian and New Zealand dollars vis-à-vis
the US dollar from $0.7423 and $0.6105, respectively, as of June
30, 2006
to $0.8491 and $0.7730, respectively, as of June 30,
2007.
|
which
resulted in:
|
|
·
|
revenue
growth of $3.3 million or 12.6% to $30.1 million, compared to $26.8
million in the 2006 quarter;
|
|
|
·
|
loss
from continuing operations of $278,000 in the 2007 quarter compared
to a
loss from continuing operations of $234,000 in the 2006 quarter;
and
|
|
|
·
|
EBITDA
(1) of
$7.1 million in the 2007 quarter compared to $5.0 million in the
2006
quarter, an increase of 42.7%.
|
(1)
The Company
defines EBITDA as net income (loss) before net interest expense, income tax
benefit, depreciation, and amortization. EBITDA is presented solely
as a supplemental disclosure as we believe it to be a relevant and useful
measure to compare operating results among our properties and competitors,
as
well as a measurement tool for evaluation of operating
personnel. EBITDA is not a measure of financial performance under the
promulgations of generally accepted accounting principles
(“GAAP”). EBITDA should not be considered in isolation from, or as a
substitute for, net loss, operating loss or cash flows from operations
determined in accordance with GAAP. Finally, EBITDA is not calculated
in the same manner by all companies and accordingly, may not be an appropriate
measure for comparing performance amongst different companies. See
the “Supplemental Data” table attached for a reconciliation of EBITDA to net
income (loss).
-1-
Second
Quarter 2007 Discussion
Revenue
from continuing operations increased from $26.8 million in the 2006 quarter
to
$30.1 million in 2007, a 12.6% increase. The cinema revenue increase
of $2.1 million was predominantly due to Australia ($1.9 million higher than
last year). The top 3 grossing films in our circuit worldwide were
“Pirates of the Caribbean: At World’s End”, “Shrek the Third” and“Spiderman 3” which between them accounted for approximately 33% of our
cinema box office revenue. The increase in real estate revenue of $1.3 million
was primarily from our Australia real estate operations, principally
attributable to increased revenue from our Newmarket shopping
center. The 100,000 square foot shopping center in Newmarket was
completed in late 2005 and tenants took possession during the first six months
of 2006. The second quarter 2006 to 2007 growth in revenue was
approximately $600,000 or 130% and the site is now 100% leased.
As
a
percent of revenue, operating expense, at 72.3% in the 2007 quarter was lower
than the 73.8% of the 2006 quarter. The primary drivers for this were
a better expense/revenue mix on higher realized revenues and continued expense
control in all geographic areas.
Depreciation
and amortization decreased by $290,000 or 8.7%, from $3.3 million in the 2006
quarter, to $3.0 million in the 2007 quarter, as a result of several Australian
cinema assets reaching the end of their depreciable lives.
General
and administrative expense increased by $803,000 or 26.1%, from $3.1 million
to
$3.9 million in the 2007 quarter. This increase was primarily due to
increased salary expense primarily from our newly appointed Chief Operating
Officer; legal and professional fees in New Zealand primarily related to our
new
Landplan Property Partners venture; legal and professional fees associated
principally with our real estate acquisition and investment activities; and
to
our newly adopted Supplemental Executive Retirement Plan.
Net
interest expense increased by
$439,000 or 29.1% for the 2007 quarter compared to last year, primarily related
to higher outstanding loan balances during the 2007 quarter compared to the
2006
quarter.
Other
income decreased by $357,000 for the 2007 quarter compared to last
year. This decrease in other income was primarily related to fewer
Place 57 units closing in the 2007 quarter compared to the 2006
quarter.
During
the three months ended June 30, 2007, upon the fulfillment of our commitment,
we
recorded the release of a deferred gain on the sale of a discontinued operation
of $1.9 million associated with a previously sold property.
As
a
result of the above, we reported a net income of $1.6 million for the 2007
quarter compared to a net loss of $234,000 in the 2006 quarter.
Our
EBITDA (1) at
$7.1 million for the 2007 quarter was $2.1 million higher than the 2006 quarter
of $5.0 million, driven by better operating margins (approximately
$800,000); and the gain on sale of a discontinued operation ($1.9
million), offset by the reduction in other income ($357,000), which was itself
driven by fewer Place 57 units closed in the 2007 quarter.
-2-
First Half 2007 Summary
Revenue
from continuing operations
increased by 11.8% or $6.1 million, to $58.1 million in the six months of 2007
compared to 2006. This increase was driven by strong circuit showings
of “Pirates of the Caribbean: At World’s End”, “Shrek the
Third” and “Happy Feet”, which between them accounted for 16.1% of
our cinema box office revenue. The US accounted for $1.0 million of
the increase, Australia $2.1 million of the increase and New Zealand $1.0
million. The real estate revenue increase of $2.0 million came
predominantly from our Australia real estate ($1.7 million) where the rent
from
the Newmarket shopping center retail component added approximately $1.4
million.
As
a
percent of revenue, operating expense, at 72.1 % in the 2007 six months was
lower than the 74.3% of the 2006 six months. The primary drivers for
this were a better expense/revenue mix on higher realized revenues and continued
expense control in all geographic areas.
Depreciation
and amortization decreased by $561,000 to $6.0 million in 2007 from $6.6 million
in 2006, driven primarily by several Australian cinema assets reaching the
end
of their depreciable lives.
General
and administrative expense increased by $1.1 million in the 2007 Six Months
compared to the 2006 Six Months. The 2007 increases were primarily
related to increased corporate compensation expense related to the granting
of
70,000 fully vested options to our directors coupled with an increase in
director fees; to compensation for our newly appointed Chief Operating Officer;
legal and professional fees associated principally with our real estate
acquisition and investment activities; and to our newly adopted Supplemental
Executive Retirement Plan.
Net
interest expense increased by $406,000 for the 2007 Six Months, compared to
last
year primarily related to higher outstanding loan balances during 2007 compared
to 2006.
Other
income increased by approximately $1.1 million for the 2007 six months compared
to last year. This increase in other income was primarily related to
a gain on the sale of marketable securities; and more profit from the Place
57
units closed in the 2007 six months compared to the 2006 six
months.
During
the six months ended June 30, 2007, upon the fulfillment of our commitment,
we
recorded the release of a deferred gain on the sale of a discontinued operation
of $1.9 million associated with a previously sold property.
As
a
result we reported a net income of $1.0 million for the 2007 six months compared
to a loss of $3.4 million in the 2006 six months.
Our
EBITDA (1) at
$11.7 million for the 2007 six months was $4.5 million higher than the 2006
six
months of $7.2 million, driven by better operating margins (approximately $2.3
million); and the gain on sale of a discontinued operation ($1.9
million).
Balance
Sheet
Our
total
assets at June 30, 2007 were $339.0 million compared to $289.2 million at
December 31, 2006. The currency exchange rates for Australia and New
Zealand as of June 30, 2007 were $0.8491 and $0.7730, respectively, and as
of
December 31, 2006, these rates were $0.7884 and $0.7046,
respectively. As a result, currency had a positive effect on the
balance sheet at June 30, 2007, compared to December 31, 2006.
Our
cash
position at June 30, 2007 was $22.4 million compared to $11.0 million at
December 31, 2006.
-3-
In
addition, we have approximately $8.5 million (AUS$10.0 million) in undrawn
funds
under our Australian Corporate Credit Facility and $41.2 million (NZ$53.3
million) under our New Zealand Line of Credit, to meet our anticipated
short-term working capital requirements.
Our
positive working capital at June 30, 2007 was $20.4 million compared to a
negative working capital of $7.0 million at December 31,
2006. Negative working capital is typical in the cinema industry, due
to the lag time between the collection of box office and concession receipts
and
the payment of film distributors and vendors.
Requiring
estimated funding of approximately $500.0 million, our development in Burwood,
Australia will clearly not be funded from normal working capital even in a
phased approach. We have approached several financing sources who
have already given a high-level, favorable response to this
funding. However, we continue to investigate all options available to
us including debt financing, equity financing, and joint venture partnering
to
achieve the optimal financing structure for this most significant
development.
Stockholders’
equity was $121.7 million at June 30, 2007 compared to $107.7 at December 31,
2006.
Subsequent
Event – New Zealand Property Acquisition
On
July
27, 2007, we purchased through a Landplan Property Partners property trust
a
64.0 acre parcel of undeveloped agricultural real estate for approximately
$9.2
million (NZ$11.9 million). We anticipate rezoning the property from
its current agricultural use to commercial use, and thereafter to redevelop
the
property in accordance with its new zoning. No assurances can be
given that such rezoning will be achieved, or if achieved, that it will be
achieved in the near term.
About
Reading International, Inc.
Reading
International (http://www.readingrdi.com) 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 retail centers (“ETRC”) in Australia and New Zealand
and live theater assets in Manhattan and Chicago in the United
States.
|
Reading
manages its worldwide cinema business under various different
brands:
|
|
·
|
in
the United States, under the
|
|
|
o
|
Reading
brand,
|
|
|
o
|
Angelika
Film Center brand (http://angelikafilmcenter.com/),
and
|
|
|
o
|
City
Cinemas brand
(http://citycinemas.moviefone.com/);
|
|
|
·
|
in
Australia, under the Reading brand (http://www.readingcinemas.com.au/);
|
|
|
·
|
in
New Zealand, under the
|
|
|
o
|
Reading
(http://www.readingcinemas.co.nz),
|
-4-
|
|
o
|
Rialto
(http://www.rialto.co.nz),
and
|
|
|
o
|
Berkeley
Cinemas (http://www.berkeleycinemas.co.nz/)
brands.
|
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 view 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:
|
|
|
o
|
The
number and attractiveness to movie goers of the films released in
future
periods;
|
|
|
o
|
The
amount of money spent by film distributors to promote their motion
pictures;
|
|
|
o
|
The
licensing fees and terms required by film distributors from motion
picture
exhibitors in order to exhibit their
films;
|
|
|
o
|
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
|
|
|
o
|
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 and VHS rentals and sales, and so called
“movies
on demand;”
|
|
|
·
|
With
respect to our real estate development and operation
activities:
|
|
|
o
|
The
rental rates and capitalization rates applicable to the markets in
which
we operate and the quality of properties that we
own;
|
|
|
o
|
The
extent to which we can obtain on a timely basis the various land
use
approvals and entitlements needed to develop our
properties;
|
|
|
o
|
The
availability and cost of labor and
materials;
|
|
|
o
|
Competition
for development sites and tenants;
and
|
|
|
o
|
The
extent to which our cinemas can continue to serve as an anchor
tenant
which will, in turn, be influenced by the same factors as will
influence
generally the results of our cinema
operations;
|
-5-
|
|
·
|
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:
|
|
|
o
|
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;
|
|
|
o
|
The
relative values of the currency used in the countries in which
we
operate;
|
|
|
o
|
Changes
in government regulation, including by way of example, the costs
resulting
from the implementation of the requirements of Sarbanes
Oxley;
|
|
|
o
|
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);
|
|
|
o
|
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;
|
|
|
o
|
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
|
|
|
o
|
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, it naturally follows that 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,
please understand that 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-US GAAP financial measures.” In such case,
a reconciliation of this information to our US GAAP financial statements will
be
made available in connection with such statements.
For
more
information, contact:
Andrzej
Matyczynski, Chief Financial Officer
Reading
International, Inc. (213) 235-2240
[TABLES
FOLLOW]
-6-
Reading
International, Inc. and Subsidiaries
Supplemental
Data
Reconciliation
of EBITDA to Net Income (Loss) (Unaudited)
(dollars
in thousands, except per share amounts)
|
Statements
of Operations
|
Three
Months Ended
June
30,
|
Six
Months Ended
June
30,
|
|||||||||||||
|
2007
|
2006
|
2007
|
2006
|
||||||||||||
|
Revenue
|
$ |
30,139
|
$ |
26,778
|
$ |
58,115
|
$ |
51,978
|
|||||||
|
Operating
expense
|
|||||||||||||||
|
Cinema/real
estate
|
21,795
|
|
19,760
|
41,916
|
38,612
|
||||||||||
|
Depreciation
and amortization
|
3,047
|
3,337
|
6,016
|
6,577
|
|||||||||||
|
General
and administrative
|
3,879
|
3,076
|
|
7,555
|
6,441
|
||||||||||
|
Operating
income
|
1,418
|
605
|
2,628
|
348
|
|||||||||||
|
Interest
expense, net
|
(1,950
|
) |
(1,511
|
) |
(3,701
|
) |
(3,295
|
) | |||||||
|
Other
income
|
851
|
1,208
|
1,586
|
520
|
|||||||||||
|
Gain
on sale of discontinued operations
|
1,912
|
--
|
1,912
|
--
|
|||||||||||
|
Income
tax expense
|
(443
|
) |
(344
|
) |
(942
|
) |
(681
|
) | |||||||
|
Minority
interest expense
|
(154
|
) |
(192
|
) |
(495
|
) |
(272
|
) | |||||||
|
Net
income (loss)
|
$ |
1,634
|
$ |
(234
|
) | $ |
998
|
$ |
(3,380
|
) | |||||
|
Basic
and diluted earnings (loss) per share
|
$ |
0.07
|
|
$ |
(0.01
|
) | $ |
0.04
|
$ |
(0.15
|
) | ||||
|
EBITDA*
|
$ |
7,074
|
$ |
4,958
|
$ |
11,647
|
$ |
7,173
|
|||||||
|
EBITDA*
change
|
$2,116
|
$4,474
|
|||||||||||||
|
*
|
EBITDA
presented above is net loss adjusted for interest expense (net of
interest
income), income tax expense, depreciation and amortization expense,
and an
adjustment for discontinued operations (this includes interest expense
and
depreciation and amortization for the discontinued
operations).
|
Reconciliation
of EBITDA to the net income (loss) is presented below:
|
Three
Months Ended
June
30,
|
Six
Months Ended
June
30,
|
|||||||||||||||
|
2007
|
2006
|
2007
|
2006
|
|||||||||||||
|
Net
income (loss)
|
$ |
1,634
|
$ | (234 | ) | $ |
988
|
$ | (3,380 | ) | ||||||
|
Add: Interest
expense, net
|
1,950
|
1,511
|
3,701
|
3,295
|
||||||||||||
|
Add: Income
tax provision
|
443
|
344
|
942
|
681
|
||||||||||||
|
Add: Depreciation
and amortization
|
3,047
|
3,337
|
6,016
|
6,577
|
||||||||||||
|
EBITDA
|
$ |
7,074
|
$ |
4,958
|
$ |
11,647
|
$ |
7,173
|
||||||||
-7-
Reading
International, Inc. and Subsidiaries
Consolidated
Statements of Operations (Unaudited)
(U.S.
dollars in thousands, except per share amounts)
|
Three
Months Ended
June
30,
|
Six
Months Ended
June
30,
|
|||||||||||||||
|
2007
|
2006
|
2007
|
2006
|
|||||||||||||
|
Revenue
|
||||||||||||||||
|
Cinema
|
$ |
26,034
|
$ |
23,954
|
$ |
50,540
|
$ |
46,463
|
||||||||
|
Real
estate
|
4,105
|
2,824
|
7,575
|
5,515
|
||||||||||||
|
30,139
|
26,778
|
58,115
|
51,978
|
|||||||||||||
|
Operating
expense
|
||||||||||||||||
|
Cinema
|
19,931
|
18,004
|
38,051
|
35,144
|
||||||||||||
|
Real
estate
|
1,864
|
1,756
|
3,865
|
3,468
|
||||||||||||
|
Depreciation
and amortization
|
3,047
|
3,337
|
6,016
|
6,577
|
||||||||||||
|
General
and administrative
|
3,879
|
3,076
|
7,555
|
6,441
|
||||||||||||
|
28,721
|
26,173
|
55,487
|
51,630
|
|||||||||||||
|
Operating
income
|
1,418
|
605
|
2,628
|
348
|
||||||||||||
|
Non-operating
income (expense)
|
||||||||||||||||
|
Interest
income
|
84
|
26
|
229
|
87
|
||||||||||||
|
Interest
expense
|
(2,034 | ) | (1,537 | ) | (3,930 | ) | (3,382 | ) | ||||||||
|
Net
gain (loss) on sale of assets
|
--
|
--
|
(185 | ) |
3
|
|||||||||||
|
Other
income (expense)
|
465
|
1
|
(271 | ) | (1,157 | ) | ||||||||||
|
Loss
before minority interest expense, income tax expense, and equity
earnings
of unconsolidated joint ventures and entities
|
(67 | ) | (905 | ) | (1,529 | ) | (4,101 | ) | ||||||||
|
Minority
interest expense
|
(154 | ) | (192 | ) | (495 | ) | (272 | ) | ||||||||
|
Loss
from continuing operations
|
(221 | ) | (1,097 | ) | (2,024 | ) | (4,373 | ) | ||||||||
|
Gain
on sale of a discontinued operation
|
1,912
|
--
|
1,912
|
--
|
||||||||||||
|
Income
(loss) before income tax expense and equity earnings of unconsolidated
joint ventures and entities
|
1,691
|
(1,097 | ) | (112 | ) | (4,373 | ) | |||||||||
|
Income
tax expense
|
(443 | ) | (344 | ) | (942 | ) | (681 | ) | ||||||||
|
Income
(loss) before equity earnings of unconsolidated joint ventures and
entities
|
1,248
|
(1,441 | ) | (1,054 | ) | (5,054 | ) | |||||||||
|
Equity
earnings of unconsolidated joint ventures and entities
|
386
|
1,207
|
2,042
|
1,674
|
||||||||||||
|
Net
income (loss)
|
$ |
1,634
|
$ | (234 | ) | $ |
988
|
$ | (3,380 | ) | ||||||
|
Earnings
(loss) per common share – basic and diluted:
|
||||||||||||||||
|
Loss
from continuing
operations
|
$ | (0.01 | ) | $ | (0.01 | ) | $ | (0.04 | ) | $ | (0.15 | ) | ||||
|
Earnings
from discontinued
operations
|
0.08
|
--
|
0.08
|
--
|
||||||||||||
|
Basic
and diluted earnings (loss) per share
|
$ |
0.07
|
$ | (0.01 | ) | $ |
0.04
|
$ | (0.15 | ) | ||||||
|
Weighted
average number of shares outstanding – basic and
diluted
|
22,487,943
|
22,413,995
|
22,485,480
|
22,431,834
|
||||||||||||
-8-
Reading
International, Inc. and Subsidiaries
Consolidated
Balance Sheets (Unaudited)
(U.S.
dollars in thousands)
|
June
30,
2007
|
December
31, 2006
|
|||||||
|
ASSETS
|
||||||||
|
Current
Assets:
|
||||||||
|
Cash
and cash equivalents
|
$ |
22,391
|
$ |
11,008
|
||||
|
Receivables
|
7,619
|
6,612
|
||||||
|
Inventory
|
529
|
606
|
||||||
|
Investment
in marketable securities
|
15,653
|
8,436
|
||||||
|
Restricted
cash
|
714
|
1,040
|
||||||
|
Prepaid
and other current assets
|
3,002
|
2,589
|
||||||
|
Total
current assets
|
49,908
|
30,291
|
||||||
|
Land
held for sale
|
1,985
|
--
|
||||||
|
Property
held for development
|
1,721
|
1,598
|
||||||
|
Property
under development
|
55,464
|
38,876
|
||||||
|
Property
& equipment, net
|
179,939
|
170,667
|
||||||
|
Investment
in unconsolidated joint ventures and entities
|
16,179
|
19,067
|
||||||
|
Investment
in Reading International Trust I
|
1,547
|
--
|
||||||
|
Goodwill
|
19,027
|
17,919
|
||||||
|
Intangible
assets, net
|
8,038
|
7,954
|
||||||
|
Other
assets
|
5,214
|
2,859
|
||||||
|
Total
assets
|
$ |
339,022
|
$ |
289,231
|
||||
|
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
||||||||
|
Current
Liabilities:
|
||||||||
|
Accounts
payable and accrued liabilities
|
$ |
12,176
|
$ |
13,539
|
||||
|
Film
rent payable
|
3,691
|
4,642
|
||||||
|
Notes
payable – current portion
|
2,140
|
2,237
|
||||||
|
Note
payable to related party – current portion
|
5,000
|
5,000
|
||||||
|
Current
tax liabilities
|
4,376
|
9,128
|
||||||
|
Deferred
current revenue
|
1,985
|
2,565
|
||||||
|
Other
current liabilities
|
170
|
177
|
||||||
|
Total
current liabilities
|
29,538
|
37,288
|
||||||
|
Notes
payable – long-term portion
|
101,317
|
113,975
|
||||||
|
Note
payable to related parties
|
9,000
|
9,000
|
||||||
|
Subordinated
debt
|
51,547
|
--
|
||||||
|
Noncurrent
tax liabilities
|
4,954
|
--
|
||||||
|
Deferred
non-current revenue
|
532
|
528
|
||||||
|
Other
liabilities
|
15,099
|
18,178
|
||||||
|
Total
liabilities
|
211,987
|
178,969
|
||||||
|
Commitments
and contingencies
|
--
|
--
|
||||||
|
Minority
interest in consolidated affiliates
|
5,292
|
2,603
|
||||||
|
Stockholders’
equity:
|
||||||||
|
Class
A Nonvoting Common Stock, par value $0.01, 100,000,000 shares authorized,
35,495,729 issued and 20,992,453 outstanding at June 30, 2007 and
35,468,733 issued and 20,980,865 outstanding at December 31,
2006
|
216
|
216
|
||||||
|
Class
B Voting Common Stock, par value $0.01, 20,000,000 shares authorized
and
1,495,490 issued and outstanding at June 30, 2007 and December 31,
2006
|
15
|
15
|
||||||
|
Nonvoting
Preferred Stock, par value $0.01, 12,000 shares authorized and no
outstanding shares
|
--
|
--
|
||||||
|
Additional
paid-in capital
|
131,449
|
128,399
|
||||||
|
Accumulated
deficit
|
(49,579 | ) | (50,058 | ) | ||||
|
Treasury
shares
|
(4,306 | ) | (4,306 | ) | ||||
|
Accumulated
other comprehensive income
|
43,948
|
33,393
|
||||||
|
Total
stockholders’ equity
|
121,743
|
107,659
|
||||||
|
Total
liabilities and stockholders’ equity
|
$ |
339,022
|
$ |
289,231
|
||||
-9-