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): November 9,
2007
Reading
International, Inc.
(Exact
Name of Registrant as Specified in its Charter)
|
Nevada
|
1-8625
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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))
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|
|
Item
2.02. Results of Operations and Financial
Condition.
|
On
November 9, 2007, Reading
International, Inc. issued a press release announcing information regarding
its
results of operations and financial condition for the quarter ended September
30, 2007, a copy of which is attached as Exhibit 99.1.
Item
9.01. Financial Statements and Exhibits.
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99.1
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Press
release issued by Reading International, Inc. pertaining to its results
of
operations and financial condition for the quarter ended September
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.
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READING
INTERNATIONAL, INC.
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||
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Date:
November 12, 2007
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By:
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/s/
Andrzej Matyczynski
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Name:
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Andrzej
Matyczynski
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|
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Title:
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Chief
Financial Officer
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EXHIBIT
99.1
Reading
International Announces 3rd Quarter 2007 Results
|
|
·
|
Revenue
from continuing operations for the quarter was up 33.9%
over the 2006 quarter, to $32.6
million
|
Los
Angeles, California, - (PR NEWSWIRE) –November 09, 2007 – Reading
International, Inc. (AMEX: RDI) announced today results for its quarter and
nine
months ended September 30, 2007.
Third
Quarter 2007 Highlights
Our
year-to-year results of operations were
principally impacted by the
following:
|
·
|
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
September 30, 2007, the sale of all of the 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 36 in the 2006 quarter;
and
|
|
·
|
the
increase in the value of the Australian and New Zealand dollars vis-à-vis
the US dollar from $0.7461 and $0.6530, respectively, as of September
30,
2006 to $0.8855 and $0.7568, respectively, as of September 30,
2007.
|
|
|
which
resulted in:
|
|
·
|
revenue
growth of $8.2 million or 33.9% to $32.6 million, compared to $24.3
million in the 2006 quarter;
|
|
·
|
net
income of $870,000 in the 2007 quarter compared to $6.1 million in
the
2006 quarter; and
|
|
·
|
EBITDA
(1) of
$6.6 million in the 2007 quarter compared to $11.8 million in the
2006-quarter, a decrease of $5.2 million or
44.4%.
|
Third
Quarter 2007 Discussion
Revenue
from continuing operations increased from $24.3 million in the 2006 quarter
to
$32.6 million in 2007, a 33.9 % increase. The cinema revenue increase
of $7.3 million was due to Australia ($5.3 million higher than last year) and
New Zealand ($2.0 million higher than last year). The top 3 grossing
films in our circuit worldwide were“The Simpson Movie”; “Pirates of the
Caribbean: At World’s End”; and “Shrek the Third” which among them
accounted for approximately 18.8% of our cinema box office
revenue. The increase in real estate revenue of $936,000 was
primarily from Australia and New Zealand with the USA operations down due to
lower live theater rentals.
As
a
percent of revenue, operating expense, at 71.4% in the 2007 quarter was lower
than the 75.0% of the 2006 quarter, continuing the trend this
year. The primary drivers for this continue to be a better
expense/revenue mix on higher realized revenues and on-going expense control
in
all geographic areas.
-1-
Depreciation
and amortization decreased by $468,000 or 13.8%, from $3.4 million in the 2006
quarter, to $2.9 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 $828,000 or 27.0%, from $3.0 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 associated principally with our real estate
acquisition and investment activities; and to our newly adopted Supplemental
Executive Retirement Plan.
Net
interest expense increased by
$502,000 or 28.4% 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 $4.2 million for the 2007 quarter compared to last
year. This decrease in other income was primarily related to our
Place 57 project. There was 1 unit closed in the 2007 quarter
compared to 36 in the 2006 quarter as the project has now sold all of its
apartment units. The lone retail unit has not yet been
sold.
In
the
2006 quarter we recorded a gain on the sale of our 50% share of the cinemas
at
Whangaparaoa, Takapuna and Mission Bay, New Zealand formerly part of the
Berkeley Cinemas Group joint venture.
As
a
result of the above, we reported a net income of $870,000 for the 2007 quarter
compared to a net income of $6.1 million in the 2006 quarter.
Our
EBITDA (1) at
$6.6 million for the 2007 quarter was $5.2 million lower than the 2006 quarter
of $11.8 million, driven by the 2006 gain on sale of our 50% ownership in the
New Zealand joint venture ($3.4 million) as discussed above, and by the
reduction in other income ($4.3 million), which was itself driven by fewer
Place
57 units closed in the 2007 quarter; and offset by better operating margins
(approximately $2.5 million);
Nine
Months 2007 Summary
Revenue
from continuing operations
increased by 18.1% or $13.9 million, to $90.7 million in the nine months of
2007
compared to 2006. This increase was driven by strong circuit showings
of “Shrek the Third”; “Harry Potter and the Order of the Phoenix”; and
“Pirates of the Caribbean: At World’s End”, which accounted for 13.4% of
our cinema box office revenue. Of the total cinema revenue, the US
accounted for $940,000 of the increase, Australia $7.4 million of the increase
and New Zealand $3.1 million. The real estate revenue increase of
$2.5 million came predominantly from our Australia real estate ($2.3 million)
where the rent from the Newmarket shopping center retail component added
approximately $1.7 million.
As
a
percent of revenue, operating expense, at 71.9% in the 2007 nine months was
lower than the 74.7% of the 2006 nine months. The primary drivers for
this, as in prior quarters were a better expense/revenue mix on higher realized
revenues and continued expense control in all geographic areas.
Depreciation
and amortization decreased by $1.0 million to $8.9 million in 2007 from $10.0
million in 2006, driven primarily by several Australian cinema assets reaching
the end of their depreciable lives.
-2-
General
and administrative expense increased by $1.9 million in the 2007 Nine Months
compared to the 2006 Nine 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 $908,000 for the 2007 Nine Months, compared to
last year primarily related to higher outstanding loan balances during 2007
compared to 2006.
Other
income decreased by approximately $3.1 million for the 2007 nine months compared
to last year. This decrease in other income was primarily related to
our Place 57 project, with fewer units closed in the 2007 nine months compared
to the 2006 nine months, due to the completion of sales of all apartment units
in July 2007.
During
the nine months ended September 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.
In
the
2006 nine months we recorded a gain on the sale of our 50% share of the cinemas
at Whangaparaoa, Takapuna and Mission Bay, New Zealand formerly part of the
Berkeley Cinemas Group joint venture.
As
a
result we reported a net income of $1.8 million for the 2007 nine months
compared to $2.7 million in the 2006 nine months.
Our
EBITDA (1) at
$18.2 million for the 2007 nine months was $755,000 lower than the 2006 nine
months of $19.0 million, primarily driven by the 2006 gain on sale of our 50%
ownership in the New Zealand joint venture ($3.4 million) as discussed above,
and by the reduction in 2007 of our other income due to the Place 57 project
(approximately $3.3 million) and offset by better operating margins
(approximately $4.2 million); and the gain on sale of a discontinued operation
($1.9 million).
Balance
Sheet
Our
total
assets at September 30, 2007 were $346.8 million compared to $289.2 million
at
December 31, 2006. The currency exchange rates for Australia and New
Zealand as of September 30, 2007 were $0.8855 and $0.7568, 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 September 30, 2007 compared to December 31, 2006.
Our
cash
position at September 30, 2007 was $27.2 million compared to $11.0 million
at
December 31, 2006.
In
addition, as we have negotiated an extention of our Australian Corporate Credit
Facility (see Subsequent Events below), we have approximately $8.9 million
(AUS$10.0 million) in undrawn funds from this facility and $43.0 million
(NZ$56.8 million) under our New Zealand Line of Credit, to meet our anticipated
short-term working capital requirements.
Our
positive working capital at September 30, 2007 was $10.1 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.
-3-
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 $123.5 million at September 30, 2007 compared to $107.7 at December
31, 2006.
Subsequent
Events
Acquisition
of Pacific Theatres Owned Cinemas
On
October 8, 2007, we entered into agreements to acquire leasehold interests
in 15
cinemas currently owned by Pacific Theatres Exhibition Corp. and its
affiliates. The cinemas, which are located in the United States,
contain 181 screens with annual revenue of approximately $81.0
million. The aggregate purchase price of the cinemas and related
assets is $72.0 million.
The
acquisition will be made through a
wholly owned subsidiary of RDI and will be financed principally by a combination
of debt financing which has been contingently committed by GE Capital
Corporation and seller financing. Our obligation to complete the
acquisition is conditioned upon its receipt of funds described in the financing
commitment, and RDI has agreed to pay the sellers a termination fee if the
acquisition is not completed under certain circumstances. The
completion of the acquisition is also subject to customary closing conditions
and is expected to be completed with the timing dependent on a number of
factors, before year-end.
Australia
Corporate Credit Facility
In
October 2007, our Australia Corporate Credit Facility was increased from $88.6
million (AUS$100.0 million) to $97.4 million (AUS$110.0 million).
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,
|
-4-
|
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),
|
|
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;
|
-5-
|
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;
|
|
·
|
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 (Unaudited)
(dollars
in thousands, except per share amounts)
|
Statements
of Operations
|
Three
Months Ended
September
30,
|
Nine
Months Ended
September
30,
|
|||||
|
2007
|
2006
|
2007
|
2006
|
||||
|
Revenue
|
$
32,559
|
$
24,318
|
$
90,674
|
$
76,797
|
|||
|
Operating
expense
|
|||||||
|
Cinema/real
estate
|
23,263
|
18,249
|
65,178
|
57,360
|
|||
|
Depreciation
and amortization
|
2,917
|
|
3,385
|
8,933
|
9,963
|
||
|
General
and administrative
|
3,870
|
3,047
|
11,425
|
9,489
|
|||
|
Operating
income
(loss)
|
2,509
|
(363
|
) |
5,138
|
(15)
|
||
|
Interest
expense, net
|
(2,267
|
) |
(1,765
|
) |
(5,968
|
) |
(5,060)
|
|
Other
income
|
1,291
|
5,472
|
2,876
|
5,992
|
|||
|
Gain
on sale of discontinued operations
|
--
|
--
|
1,912
|
--
|
|||
|
Gain
on sale of unconsolidated entity
|
--
|
3,442
|
--
|
3,442
|
|||
|
Income
tax expense
|
(501
|
) |
(540
|
) |
(1,443
|
) |
(1,222)
|
|
Minority
interest expense
|
(162
|
) |
(153
|
) |
(657
|
) |
(425)
|
|
Net
income
|
$
870
|
$
6,093
|
$
1,858
|
$
2,712
|
|||
|
Basic
earnings per share
|
$ 0.04
|
|
$
0.27
|
$ 0.08
|
$ 0.12
|
||
|
Diluted
earnings per share
|
$ 0.04
|
$
0.27
|
$ 0.08
|
$ 0.12
|
|||
|
EBITDA*
|
$6,555
|
$11,783
|
$
18,202
|
$
18,957
|
|||
|
EBITDA*
change
|
$(5,228)
|
$(755)
|
|||||
|
*
|
EBITDA
presented above is net income 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 is presented below:
|
Three
Months Ended
September
30,
|
Nine
Months Ended
September
30,
|
|||||||||||||||
|
2007
|
2006
|
2007
|
2006
|
|||||||||||||
|
Net
income
|
$ |
870
|
$ |
6,093
|
$ |
1,858
|
$ |
2,712
|
||||||||
|
Add: Interest
expense, net
|
2,267
|
1,765
|
5,968
|
5,060
|
||||||||||||
|
Add: Income
tax provision
|
501
|
540
|
1,443
|
1,222
|
||||||||||||
|
Add: Depreciation
and amortization
|
2,917
|
3,385
|
8,933
|
9,963
|
||||||||||||
|
EBITDA
|
$ |
6,555
|
$ |
11,783
|
$ |
18,202
|
$ |
18,957
|
||||||||
-7-
Reading
International, Inc. and Subsidiaries
Consolidated
Statements of Operations (Unaudited)
(U.S.
dollars in thousands, except per share amounts)
|
Three
Months Ended
September
30,
|
Nine
Months Ended
September
30,
|
|||||||||||||||
|
2007
|
2006
|
2007
|
2006
|
|||||||||||||
|
Revenue
|
||||||||||||||||
|
Cinema
|
$ |
29,110
|
$ |
21,806
|
$ |
79,651
|
$ |
68,269
|
||||||||
|
Real
estate
|
3,449
|
2,512
|
11,023
|
8,528
|
||||||||||||
|
32,559
|
24,318
|
90,674
|
76,797
|
|||||||||||||
|
Operating
expense
|
||||||||||||||||
|
Cinema
|
20,983
|
16,088
|
59,033
|
51,732
|
||||||||||||
|
Real
estate
|
2,280
|
2,161
|
6,145
|
5,628
|
||||||||||||
|
Depreciation
and amortization
|
2,917
|
3,385
|
8,933
|
9,963
|
||||||||||||
|
General
and administrative
|
3,870
|
3,047
|
11,425
|
9,489
|
||||||||||||
|
30,050
|
24,681
|
85,536
|
76,812
|
|||||||||||||
|
Operating
income (loss)
|
2,509
|
(363 | ) |
5,138
|
(15 | ) | ||||||||||
|
Other
income (expense)
|
||||||||||||||||
|
Interest
income
|
329
|
70
|
558
|
157
|
||||||||||||
|
Interest
expense
|
(2,596 | ) | (1,835 | ) | (6,526 | ) | (5,217 | ) | ||||||||
|
Net
loss on sale of assets
|
--
|
--
|
(185 | ) | (8 | ) | ||||||||||
|
Other
income (expense)
|
707
|
209
|
435
|
(937 | ) | |||||||||||
|
Income
(loss) before minority interest expense, income tax expense, and
equity
earnings of unconsolidated joint ventures and
entities
|
949
|
(1,919 | ) | (580 | ) | (6,020 | ) | |||||||||
|
Minority
interest expense
|
(162 | ) | (153 | ) | (657 | ) | (425 | ) | ||||||||
|
Income
(loss) from continuing operations
|
787
|
(2,072 | ) | (1,237 | ) | (6,445 | ) | |||||||||
|
Gain
on sale of a discontinued operation
|
--
|
--
|
1,912
|
--
|
||||||||||||
|
Income
(loss) before income tax expense and equity earnings of unconsolidated
joint ventures and entities
|
787
|
(2,072 | ) |
675
|
(6,445 | ) | ||||||||||
|
Income
tax expense
|
(501 | ) | (540 | ) | (1,443 | ) | (1,222 | ) | ||||||||
|
Income
(loss) before equity earnings of unconsolidated joint ventures and
entities
|
286
|
(2,612 | ) | (768 | ) | (7,667 | ) | |||||||||
|
Equity
earnings of unconsolidated joint ventures and entities
|
584
|
5,263
|
2,626
|
6,937
|
||||||||||||
|
Gain
on sale of unconsolidated joint venture
|
--
|
3,442
|
--
|
3,442
|
||||||||||||
|
Net
income
|
$ |
870
|
$ |
6,093
|
$ |
1,858
|
$ |
2,712
|
||||||||
|
Basic
earnings (loss) per common share:
|
||||||||||||||||
|
Income
(loss) from continuing
operations
|
$ |
0.04
|
$ |
0.27
|
$ | (0.01 | ) | $ |
0.12
|
|||||||
|
Earnings
from discontinued
operations
|
--
|
--
|
0.09
|
--
|
||||||||||||
|
Basic
earnings per share
|
$ |
0.04
|
$ |
0.27
|
$ |
0.08
|
$ |
0.12
|
||||||||
|
Weighted
average number of shares outstanding – basic
|
22,487,943
|
22,413,995
|
22,486,395
|
22,425,941
|
||||||||||||
|
Diluted
earnings (loss) per common share:
|
||||||||||||||||
|
Income
(loss) from continuing
operations
|
$ |
0.04
|
$ |
0.27
|
$ | (0.01 | ) | $ |
0.12
|
|||||||
|
Earnings
from discontinued
operations
|
--
|
--
|
0.09
|
--
|
||||||||||||
|
Diluted
earnings per share
|
$ |
0.04
|
$ |
0.27
|
$ |
0.08
|
$ |
0.12
|
||||||||
|
Weighted
average number of shares outstanding – diluted
|
22,761,270
|
22,616,560
|
22,486,395
|
22,628,505
|
||||||||||||
-8-
Reading
International, Inc. and Subsidiaries
Consolidated
Balance Sheets (Unaudited)
(U.S.
dollars in thousands)
|
September
30, 2007
|
December
31, 2006
|
|||||||
|
ASSETS
|
||||||||
|
Current
Assets:
|
||||||||
|
Cash
and cash equivalents
|
$ |
27,148
|
$ |
11,008
|
||||
|
Receivables
|
4,484
|
6,612
|
||||||
|
Inventory
|
531
|
606
|
||||||
|
Investment
in marketable securities
|
4,575
|
8,436
|
||||||
|
Restricted
cash
|
243
|
1,040
|
||||||
|
Prepaid
and other current assets
|
2,074
|
2,589
|
||||||
|
Total
current
assets
|
39,055
|
30,291
|
||||||
|
Land
held for sale
|
1,955
|
--
|
||||||
|
Property
held for development
|
10,951
|
1,598
|
||||||
|
Property
under development
|
64,267
|
38,876
|
||||||
|
Property
& equipment, net
|
180,330
|
170,667
|
||||||
|
Investment
in unconsolidated joint ventures and entities
|
15,670
|
19,067
|
||||||
|
Investment
in Reading International Trust I
|
1,547
|
--
|
||||||
|
Goodwill
|
19,006
|
17,919
|
||||||
|
Intangible
assets, net
|
7,903
|
7,954
|
||||||
|
Other
assets
|
6,125
|
2,859
|
||||||
|
Total
assets
|
$ |
346,809
|
$ |
289,231
|
||||
|
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
||||||||
|
Current
Liabilities:
|
||||||||
|
Accounts
payable and accrued liabilities
|
$ |
11,542
|
$ |
13,539
|
||||
|
Film
rent payable
|
3,504
|
4,642
|
||||||
|
Notes
payable – current portion
|
2,081
|
2,237
|
||||||
|
Note
payable to related party – current portion
|
5,000
|
5,000
|
||||||
|
Current
tax liabilities
|
4,401
|
9,128
|
||||||
|
Deferred
current revenue
|
2,144
|
2,565
|
||||||
|
Other
current liabilities
|
239
|
177
|
||||||
|
Total
current
liabilities
|
28,911
|
37,288
|
||||||
|
Notes
payable – long-term portion
|
110,508
|
113,975
|
||||||
|
Note
payable to related parties
|
9,000
|
9,000
|
||||||
|
Subordinated
debt
|
51,547
|
--
|
||||||
|
Noncurrent
tax liabilities
|
5,082
|
--
|
||||||
|
Deferred
non-current revenue
|
589
|
528
|
||||||
|
Other
liabilities
|
15,249
|
18,178
|
||||||
|
Total
liabilities
|
220,886
|
178,969
|
||||||
|
Commitments
and contingencies
|
--
|
--
|
||||||
|
Minority
interest in consolidated affiliates
|
2,453
|
2,603
|
||||||
|
Stockholders’
equity:
|
||||||||
|
Class
A Nonvoting Common Stock, par value $0.01, 100,000,000 shares authorized,
35,575,927 issued and 20,998,703 outstanding
at
September 30, 2007 and 35,558,089 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 September 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
|
131,711
|
128,399
|
||||||
|
Accumulated
deficit
|
(48,709 | ) | (50,058 | ) | ||||
|
Treasury
shares
|
(4,306 | ) | (4,306 | ) | ||||
|
Accumulated
other comprehensive income
|
44,543
|
33,393
|
||||||
|
Total
stockholders’ equity
|
123,470
|
107,659
|
||||||
|
Total
liabilities and stockholders’ equity
|
$ |
346,809
|
$ |
289,231
|
||||
-9-