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 7, 2008
Reading International,
Inc.
(Exact
Name of Registrant as Specified in its Charter)
|
Nevada
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1-8625
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95-3885184
|
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(State
or Other Jurisdiction
of
Incorporation)
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(Commission
File
Number)
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(IRS
Employer
Identification
No.)
|
|
500 Citadel Drive, Suite 300, Commerce,
California
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90040
|
|
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(Address
of Principal Executive Offices)
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(Zip
Code)
|
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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 7, 2008, Reading
International, Inc. issued a press release announcing information regarding its
results of operations and financial condition for the quarter ended September
30, 2008, 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,
2008.
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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 7, 2008
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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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Title:
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Chief
Financial Officer
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EXHIBIT 99.1
Reading
International Announces 3rd Quarter
2008 Results
·
Revenue from continuing operations for the quarter was up 81.9% over the 2007
quarter, to $56.5 million
Los Angeles, California, - (PR
NEWSWIRE) – November 7, 2008 – Reading International, Inc. (NYSE
Alternext US: RDI) announced today results for its quarter and nine months ended
September 30, 2008.
Third
Quarter 2008 Highlights
Our
year-to-year results of operations were principally impacted by the
following:
|
·
|
the
acquisition on February 22, 2008, of 15 cinemas with 181 screens in Hawaii
and California, the “Consolidated Entertainment”
acquisition;
|
|
·
|
the
recognition of a gain on the sale of our unconsolidated 50% interest in
the cinema at Botany Downs, Auckland, New
Zealand;
|
|
·
|
the
receipt of litigation and insurance proceeds offset by the non-recurrence
of sale revenues with respect to our Place 57 residential
condominium project. All of the condominium units in that
project have now been sold, with the exception of one retail unit;
and
|
|
·
|
the
decline in the value of the Australian and New Zealand dollars vis-à-vis
the US dollar from $0.8855 and $0.7568, respectively, as of September 30,
2007 to $0.7904 and $0.6690, respectively, as of September 30,
2008.
|
which
resulted in:
|
·
|
revenue
growth of $25.5 million or 81.9% to $56.5 million, compared to $31.0
million in the 2007 quarter;
|
|
·
|
net
loss from continuing operations of $2.1 million in the 2008 quarter
compared to net income from continuing operations of $870,000 in the 2007
quarter; but
|
|
·
|
an
EBITDA(1) of
$7.7 million in the 2008 quarter compared to $6.6 million in the 2007
quarter, an increase of 17.3%.
|
Third
Quarter 2008 Discussion
Revenue from continuing operations increased from
$31.1 million in the 2007 quarter to $56.5 million in 2008, an 81.9%
increase. Cinema segment revenue increased for the 2008 quarter by
$24.9 million or 88.9% compared to the same period in 2007. The
increase was primarily a result of $21.1 million of revenue from our newly
acquired Consolidated Entertainment cinemas and improved results from our
Australia operations including $2.9 million from admissions and $973,000 from
concessions and other revenues, offset by lower cinema revenues from our New
Zealand operations of $680,000. The top 3 grossing films in our
circuit worldwide were “The Dark
Night,” “Mamma
Mia!” and
“Hancock,” which
between them accounted for approximately 32.5% of our cinema box office
revenue. Real estate segment revenue increased for the 2008 Quarter
by $730,000 or 15.0% compared to the same period in 2007. The
increase was primarily related to rental revenues from our newly acquired
Consolidated Entertainment cinemas that have ancillary real estate associated
with them.
-1-
As
a percent of revenue, cinema/real estate segment operating expense, at 77.9% in
the 2008 quarter, was higher than the 71.1% of the 2007 quarter. The
primary driver for this was an increase in cinema costs primarily related to
higher film rent expense incurred in the United States as the result of the
acquisition of the Consolidated Entertainment cinemas. Since
Consolidated Entertainment cinemas are commercial houses, their film product is
more expensive than the art and specialty film featured at the art cinemas,
which made up the bulk of our US cinema assets.
Depreciation
and amortization increased by $2.2 million or 84.2%, from $2.6 million in the
2007 quarter, to $4.9 million in the 2008 quarter, primarily related to our
newly acquired Consolidated Entertainment cinema assets.
General
and administrative expense increased by $526,000 or 13.6%, from $3.9 million to
$4.4 million in the 2008 quarter. This increase was primarily due to
additional pension costs in 2008 for our Chief Operating Officer, cost related
to the Supplemental Executive Retirement Plan, and legal and professional fees
associated principally with our real estate investment activities.
Net interest expense increased by $1.7
million or 74.0% for the 2008 quarter compared to last year, primarily related
to higher outstanding loan balances during the 2008 quarter compared to the 2007
quarter associated with our current year’s
acquisitions.
Other
income decreased by $2.0 million for the 2008 quarter compared to last
year. The primary reasons were a $1.0 million impairment charge
against our Lake Taupo asset in New Zealand, a $549,000 gain on sale of
marketable securities in 2007, not repeated in 2008, and the completion of the
sale phase of the residential condominiums in our Place 57
project. During 2007 and 2006, all of the residential condominiums
were sold and only the retail condominium is still available for
sale. During 2007, the partnership closed on the sale of one
condominium during the three months ended September 30, 2007, resulting in gross
sales of $3.4 million and equity earnings from unconsolidated joint ventures and
entities to us of $201,000.
As
a result of the above, we reported a net loss of $2.1 million for the 2008
quarter compared to a net income of $870,000 in the 2007 quarter.
Our
EBITDA(1)
at $7.7 million for the 2008 quarter was $1.1 million higher than the 2007
quarter of $6.6 million, driven exclusively by better operating margins
(approximately $3.0 million) and offset by the reduction in other income
(approximately $2.0 million) as described above.
-2-
Nine
Months 2008 Summary
Revenue from continuing operations increased by
69.6% or $60.5 million, to $147.5 million in the nine months of 2008 compared to
2007. This increase was driven by an increase in cinema segment
revenue for the 2008 period of $58.9 million or 76.6% compared to the same
period in 2007. The 2008 increase was primarily a result of $49.0
million of revenue from our newly acquired Consolidated Entertainment cinemas
and improved results from our Australia operations including $6.3 million from
admissions and $2.6 million from concessions and other revenues, offset slightly
by New Zealand. The top three grossing films in our circuit
worldwide, for the nine months of 2008, were “The Dark
Night,” “Iron
Man” and “Indiana Jones
and the Kingdom of the Crystal Skull” accounting
for 15.3% of our cinema box office revenue. The real estate segment
revenue increase of $2.1 million or 14.7% was driven by the same reasons as for
the quarter, together with increases in revenues in Australia and New
Zealand.
As
a percent of revenue, cinema/real estate segment operating expense, at 78.5% in
the 2008 nine months, was higher than the 71.7% of the 2007 nine
months. The primary drivers were the same factors that drove the 2008
quarter, above.
Depreciation
and amortization increased by $5.9 million to $13.8 million in 2008 from $8.0
million in 2007, driven primarily by our newly acquired Consolidated
Entertainment cinema assets, added during the 2008 period.
General
and administrative expense increased by $2.6 million in the 2008 nine months
compared to the 2007 period. As for the quarter, this increase was
primarily due to additional pension costs in 2008 for our Chief Operating
Officer, cost related to the Supplemental Executive Retirement Plan, and legal
and professional fees associated principally with our real estate acquisition
and investment activities.
Net
interest expense increased by $3.9 million for the 2008 nine months compared to
last year, primarily related to higher outstanding loan balances during the 2008
period compared to 2007 associated with our current year’s
acquisitions.
Other
income was flat for the 2008 nine months compared to last
year. Increases to other income were primarily related to insurance
proceeds of $910,000, coupled with cumulative year-to-date settlements on our
Burstone litigation of $1.2 million and credit card dispute of
$385,000. These were offset by the $1.0 million impairment charge
against our Lake Taupo asset in New Zealand and the changing sales activity in
our investment related to 205-209 East 57th Street Associates, LLC, as described
above. During 2007, the partnership closed on the sale of eight
condominiums during the nine months ended September 30, 2007, resulting in gross
sales of $26.0 million, and equity earnings from unconsolidated joint ventures
and entities to us of $1.6 million.
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
2008 we recorded a gain on sale of unconsolidated entities of $2.5 million from
the sale of our 50% interest in the cinema at Botany Downs in Auckland, New
Zealand.
As
a result, we reported a net loss of $2.0 million for the 2008 nine months
compared to a net income of $1.9 million in the 2007 nine months.
Our EBITDA(1)
at $23.9 million for the 2008 nine months was $5.6 million higher than the 2007
nine months of $18.2 million, driven predominantly by better operating margins
(approximately $4.6 million), and the gain on sale of an unconsolidated entity
($2.5 million) offset by the non-recurring gain on sale of discontinued
operations in the 2007 quarter ($1.9 million).
-3-
Balance
Sheet
Our
total assets at September 30, 2008 were $392.1 million compared to $346.1
million at December 31, 2007. The currency exchange rates for
Australia and New Zealand as of September 30, 2008 were $0.7904 and $0.6690,
respectively, and as of December 31, 2007, these rates were $0.8776 and $0.7678,
respectively. As a result, currency had a negative effect on the
balance sheet at September 30, 2008 compared to December 31, 2007.
Our
cash position at September 30, 2008 was $25.1 million compared to $20.8 million
at December 31, 2007.
In
addition, we have approximately $4.3 million (AUS$5.5 million) in undrawn funds
under our Australian Corporate Credit Facility, $38.0 million (NZ$56.8 million)
under our New Zealand Line of Credit, and $5.0 million under our GECC Line of
Credit, to meet our anticipated short-term working capital
requirements.
Our
positive working capital at September 30, 2008 was $35.3 million compared to
$32.3 million at December 31, 2007. The increase in the September
number and the reclassification of the December 2007 number was as a result of
the movement of our Auburn, Australia property, to an asset held for sale (see
below - Real Estate
Update).
Stockholders’
equity was $99.3 million at September 30, 2008 compared to $121.4 million at
December 31, 2007 due principally to the strengthening of the US dollar compared
to the Australian dollar and the New Zealand dollar.
Real
Estate Update
On
September 16, 2008, we entered into a sale option agreement to sell our Auburn
real estate property and cinema for $28.5 million (AUS$36.0
million). The sale option agreement calls for an initial option
payment of $948,000 (AUS$1.2 million), received on the agreement date, and four
option installment payments of $316,000 (AUS$400,000), $316,000 (AUS$400,000),
$316,000 (AUS$400,000), and $948,000 (AUS$1.2 million) payable over the
subsequent 9 months. The option comes to term on November 1, 2009 at
which time the balance of $25.6 million (AUS$32.4 million) is due and
payable. At any time during the 13-month option, the buyer may
decline to move further in the sale process resulting in a forfeiture of all
previous option payments.
Subsequent
Event
In
October 2008, Prime Media of Australia announced that it is offering stock at
ratio of 0.257 shares of Prime Media for each share of Broadcast Production
Services (formerly Becker Group). We currently hold 12,768,106 shares
of Broadcast Production Services. We are currently evaluating whether
or not we will participate in this offering.
-4-
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.
|
Reading
manages its worldwide cinema business under various different
brands:
|
·
|
in
the United States, under the
|
|
o
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Reading
brand,
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|
o
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Angelika
Film Center brand (http://angelikafilmcenter.com/),
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|
o
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Consolidated
Theatres brand (http://www.consolidatedtheatres.com/),
and
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|
o
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City
Cinemas brand;
|
|
·
|
in
Australia, under the Reading brand (http://www.readingcinemas.com.au/);
and
|
|
·
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in
New Zealand, under the
|
|
o
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Reading
(http://www.readingcinemas.co.nz)
and
|
|
o
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Rialto
(http://www.rialto.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
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The
number and attractiveness to movie goers of the films released in future
periods;
|
|
o
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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
|
-5-
|
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
risks and uncertainties associated with real estate
development;
|
|
o
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The
availability and cost of labor and
materials;
|
|
o
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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
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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
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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
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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
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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
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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.
-6-
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
-7-
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,
|
|||||
|
2008
|
2007
|
2008
|
2007
|
||||
|
Revenue
|
$56,528
|
$31,077
|
$147,472
|
$86,949
|
|||
|
Operating
expense
|
|||||||
|
Cinema/real
estate
|
44,018
|
|
22,085
|
|
115,736
|
62,340
|
|
|
Depreciation
and amortization
|
4,877
|
2,647
|
13,829
|
7,970
|
|||
|
General
and administrative
|
4,397
|
3,871
|
13,993
|
11,424
|
|||
|
Operating income
|
3,236
|
2,474
|
3,914
|
5,215
|
|||
|
Interest
expense, net
|
(3,962)
|
(2,277)
|
(9,832)
|
(5,978)
|
|||
|
Other
income
|
(739)
|
1,291
|
2,850
|
2,876
|
|||
|
Gain
on sale of discontinued operations
|
178
|
45
|
371
|
1,845
|
|||
|
Gain
on sale of unconsolidated entity
|
--
|
--
|
2,450
|
--
|
|||
|
Income
tax expense
|
(689)
|
(501)
|
(1,513)
|
(1,443)
|
|||
|
Minority
interest expense
|
(85)
|
(162)
|
(246)
|
(657)
|
|||
|
Net (loss) income
|
$(2,061)
|
$
870
|
$ (2,006)
|
$
1,858
|
|||
|
Basic
(loss) earnings per share
|
$ (0.09)
|
$
0.04
|
$ (0.09)
|
$
0.08
|
|||
|
Diluted
(loss) earnings per share
|
$ (0.09)
|
$
0.04
|
$ (0.09)
|
$
0.08
|
|||
|
EBITDA*
|
$7,686
|
$ 6,555
|
$
23,851
|
$18,202
|
|||
|
EBITDA*
change
|
$
1,131
|
$
5,649
|
|||||
|
*
|
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,
|
|||||||||||||||
|
2008
|
2007
|
2008
|
2007
|
|||||||||||||
|
Net
(loss) income
|
$ | (2,061 | ) | $ | 870 | $ | (2,006 | ) | $ | 1,858 | ||||||
|
Add:Interest
expense, net
|
3,962 | 2,277 | 9,832 | 5,978 | ||||||||||||
|
Add:Income
tax provision
|
689 | 501 | 1,513 | 1,443 | ||||||||||||
|
Add:Depreciation
and amortization
|
4,877 | 2,647 | 13,829 | 7,970 | ||||||||||||
|
Add: EBITDA
adjustment for discontinued operations
|
219 | 260 | 683 | 953 | ||||||||||||
|
EBITDA
|
$ | 7,686 | $ | 6,555 | $ | 23,851 | $ | 18,202 | ||||||||
-8-
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,
|
|||||||||||||||
|
2008
|
2007
|
2008
|
2007
|
|||||||||||||
|
Revenue
|
||||||||||||||||
|
Cinema
|
$ | 52,909 | $ | 28,009 | $ | 135,693 | $ | 76,825 | ||||||||
|
Real
estate
|
3,619 | 3,068 | 11,779 | 10,124 | ||||||||||||
| 56,528 | 31,077 | 147,472 | 86,949 | |||||||||||||
|
Operating
expense
|
||||||||||||||||
|
Cinema
|
41,765 | 20,041 | 109,597 | 56,878 | ||||||||||||
|
Real
estate
|
2,253 | 2,044 | 6,139 | 5,462 | ||||||||||||
|
Depreciation
and amortization
|
4,877 | 2,647 | 13,829 | 7,970 | ||||||||||||
|
General
and administrative
|
4,397 | 3,871 | 13,993 | 11,424 | ||||||||||||
| 53,292 | 28,603 | 143,558 | 81,734 | |||||||||||||
|
Operating
income
|
3,236 | 2,474 | 3,914 | 5,215 | ||||||||||||
|
Interest
income
|
221 | 329 | 829 | 558 | ||||||||||||
|
Interest
expense
|
(4,183 | ) | (2,606 | ) | (10,661 | ) | (6,536 | ) | ||||||||
|
Loss
on sale of assets
|
-- | -- | -- | (185 | ) | |||||||||||
|
Other
income
|
(1,009 | ) | 707 | 2,033 | 435 | |||||||||||
|
Income
(loss) before minority interest expense, discontinued operations, income
tax expense, and equity earnings of unconsolidated joint ventures and
entities
|
(1,735 | ) | 904 | (3,885 | ) | (513 | ) | |||||||||
|
Minority
interest expense
|
(85 | ) | (162 | ) | (246 | ) | (657 | ) | ||||||||
|
Income
(loss) before discontinued operations, income tax expense, and equity
earnings of unconsolidated joint ventures and entities
|
(1,820 | ) | 742 | (4,131 | ) | (1,170 | ) | |||||||||
|
Gain
on sale of a discontinued operation, net of tax
|
-- | -- | -- | 1,912 | ||||||||||||
|
Income
(loss) from discontinued operations, net of tax
|
178 | 45 | 371 | (67 | ) | |||||||||||
|
Income
(loss) before income tax expense and equity earnings of unconsolidated
joint ventures and entities
|
(1,642 | ) | 787 | (3,760 | ) | 675 | ||||||||||
|
Income
tax expense
|
(689 | ) | (501 | ) | (1,513 | ) | (1,443 | ) | ||||||||
|
Income
(loss) before equity earnings of unconsolidated joint ventures and
entities
|
(2,331 | ) | 286 | (5,273 | ) | (768 | ) | |||||||||
|
Equity
earnings of unconsolidated joint ventures and entities
|
270 | 584 | 817 | 2,626 | ||||||||||||
|
Gain
on sale of unconsolidated entity
|
-- | -- | 2,450 | -- | ||||||||||||
|
Net
income (loss)
|
$ | (2,061 | ) | $ | 870 | $ | (2,006 | ) | $ | 1,858 | ||||||
|
Earnings
(loss) per common share – basic and diluted:
|
||||||||||||||||
|
Earnings (loss) from continuing
operations
|
$ | (0.10 | ) | $ | 0.04 | $ | (0.11 | ) | $ | 0.00 | ||||||
|
Earnings from discontinued
operations
|
0.01 | 0.00 | 0.02 | 0.08 | ||||||||||||
|
Basic
and diluted earnings (loss) per share
|
$ | (0.09 | ) | $ | 0.04 | $ | (0.09 | ) | $ | 0.08 | ||||||
|
Weighted
average number of shares outstanding – basic
|
22,476,904 | 22,487,943 | 22,476,514 | 22,486,395 | ||||||||||||
|
Weighted
average number of shares outstanding – dilutive
|
22,476,904 | 22,761,270 | 22,476,514 | 22,759,723 | ||||||||||||
-9-
Reading
International, Inc. and Subsidiaries
Consolidated
Balance Sheets (Unaudited)
(U.S.
dollars in thousands)
|
September
30,
2008
|
December
31,
2007
|
|||||||
|
ASSETS
|
||||||||
|
Current
Assets:
|
||||||||
|
Cash
and cash equivalents
|
$ | 25,119 | $ | 20,783 | ||||
|
Receivables
|
7,220 | 5,670 | ||||||
|
Inventory
|
695 | 654 | ||||||
|
Investment
in marketable securities
|
4,085 | 4,533 | ||||||
|
Restricted
cash
|
-- | 59 | ||||||
|
Assets
held for sale
|
22,775 | 25,942 | ||||||
|
Prepaid
and other current assets
|
2,334 | 3,799 | ||||||
|
Total
current assets
|
62,228 | 61,440 | ||||||
|
Land
held for sale
|
-- | 1,984 | ||||||
|
Property
held for development
|
7,304 | 9,289 | ||||||
|
Property
under development
|
69,387 | 66,787 | ||||||
|
Property
& equipment, net
|
179,789 | 154,011 | ||||||
|
Investments
in unconsolidated joint ventures and entities
|
13,603 | 15,480 | ||||||
|
Investment
in Reading International Trust I
|
1,547 | 1,547 | ||||||
|
Goodwill
|
23,808 | 19,100 | ||||||
|
Intangible
assets, net
|
23,999 | 8,448 | ||||||
|
Other
assets
|
10,483 | 7,985 | ||||||
|
Total
assets
|
$ | 392,148 | $ | 346,071 | ||||
|
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
||||||||
|
Current
Liabilities:
|
||||||||
|
Accounts
payable and accrued liabilities
|
$ | 11,634 | $ | 12,331 | ||||
|
Film
rent payable
|
4,326 | 3,275 | ||||||
|
Notes
payable – current portion
|
1,533 | 395 | ||||||
|
Note
payable to related party – current portion
|
-- | 5,000 | ||||||
|
Taxes
payable
|
6,115 | 4,770 | ||||||
|
Deferred
current revenue
|
3,130 | 3,214 | ||||||
|
Liabilities
of assets held for sale
|
-- | -- | ||||||
|
Other
current liabilities
|
202 | 169 | ||||||
|
Total
current liabilities
|
26,940 | 29,154 | ||||||
|
Notes
payable – long-term portion
|
173,774 | 111,253 | ||||||
|
Notes
payable to related party – long-term portion
|
14,000 | 9,000 | ||||||
|
Subordinated
debt
|
51,547 | 51,547 | ||||||
|
Noncurrent
tax liabilities
|
6,070 | 5,418 | ||||||
|
Deferred
non-current revenue
|
609 | 566 | ||||||
|
Other
liabilities
|
17,654 | 14,936 | ||||||
|
Total
liabilities
|
290,594 | 221,874 | ||||||
|
Commitments
and contingencies
|
||||||||
|
Minority
interest in consolidated affiliates
|
2,288 | 2,835 | ||||||
|
Stockholders’
equity:
|
||||||||
|
Class
A Nonvoting Common Stock, par value $0.01, 100,000,000 shares authorized,
35,564,339 issued and 20,987,115 outstanding at September 30, 2008 and at
December 31, 2007
|
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, 2008 and at December 31,
2007
|
15 | 15 | ||||||
|
Nonvoting
Preferred Stock, par value $0.01, 12,000 shares authorized and no
outstanding shares
|
-- | -- | ||||||
|
Additional
paid-in capital
|
132,838 | 131,930 | ||||||
|
Accumulated
deficit
|
(54,676 | ) | (52,670 | ) | ||||
|
Treasury
shares
|
(4,306 | ) | (4,306 | ) | ||||
|
Accumulated
other comprehensive income
|
25,179 | 46,177 | ||||||
|
Total
stockholders’ equity
|
99,266 | 121,362 | ||||||
|
Total
liabilities and stockholders’ equity
|
$ | 392,148 | $ | 346,071 | ||||
-10-