Reading International Sells Puerto Rico Movie Theater Circuit
LOS ANGELES, June 16 /PRNewswire-FirstCall/ -- Reading International, Inc. (AMEX:RDI) announced today the sale of our Puerto Rico movie theater circuit
and the purchase of the land interest underlying our Cinemas 1, 2 & 3 in
Manhattan.
(Logo: http://www.newscom.com/cgi-bin/prnh/20030403/LATH058LOGO ) Consistent with our previously stated business plan of moving out of Puerto
Rico and focusing on our businesses in Australia, New Zealand and the United
States, we have now closed the acquisition of the land interest underlying our
Cinemas 1, 2 & 3 in Manhattan for approximately $12.2 million.
Consistent with that same business plan, our Puerto Rican subsidiary has sold
for $2.1 million, plus the assumption of certain employee related liabilities,
its interest in the cinemas and assets comprising the CineVista cinema circuit
in Puerto Rico. These CineVista assets were carried on our books at $1.9
million, and include six leasehold cinemas. In 2004, these CineVista cinemas
produced gross revenues of approximately $12.9 million, but a negative
EBITDA(1) of $214,000.
In connection with the CineVista sale, the litigation with Plaza Las Americas
was settled for no additional compensation. The litigation with Caribbean
Cinemas and certain of its affiliates continues. This litigation is described
in greater detail in our annual report filed with the Securities and Exchange
Commission with respect to our year ended December 31, 2004.
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 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
* Reading brand,
* Angelika Film Center brand (http://angelikafilmcenter.com/), and
* City Cinemas brand (http://citycinemas.moviefone.com/); * in Australia, under the
* Reading brand (http://www.readingcinemas.com.au/); and * in New Zealand, under the
* Reading (http://www.readingcinemas.co.nz/) and
* 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 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 and VHS rentals and sales, and so called "movies on demand;" * 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 availability and cost of labor and materials; * Competition for development sites and tenants; and * 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: * 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, 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 (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 management believes it to be a
relevant and useful measure to compare operating results among its 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. http://www.newscom.com/cgi-bin/prnh/20030403/LATH058LOGO http://photoarchive.ap.org/ DATASOURCE: Reading International, Inc.
CONTACT: Andrzej Matyczynski, Chief Financial Officer of Reading International, Inc., +1-213-235-2240 Web site: http://www.readingcinemas.com.au/
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