- Revenue from operations for the year was up 68.7% over 2007, to
$191.3 million LOS ANGELES, March 16 /PRNewswire-FirstCall/ --
Reading International, Inc. (NYSE Alternext US: RDI) announced
today results for its year and fourth quarter ended December 31,
2008. (Logo:
http://www.newscom.com/cgi-bin/prnh/20030403/LATH058LOGO) Twelve
Month 2008 Highlights With respect to our cinema activities: -- On
February 22, 2008, we acquired 15 cinemas with 181 screens in
Hawaii and California, the "Consolidated Entertainment"
acquisition. The initial purchase price was $70.2 million, but
allowed for certain post-closing purchase price adjustments to be
made. The adjusted purchase price is currently $63.9 million; -- On
June 6, 2008, we sold our 50% interest in the 8-screen Botany Downs
cinema in Auckland, New Zealand, to our joint venture partner. The
sale price was $3.3 million in cash plus the assumption of our 50%
share of the outstanding debt, which amounted to $1.0 million; and
-- We took a $2.1 million impairment charge relative to certain of
our New Zealand cinemas. With respect to our real estate
activities: -- In the first quarter of 2008, we acquired or entered
into agreements to acquire four contiguous properties in Brisbane,
Australia. We acquired three properties for $2.5 million and
conditionally agreed to purchase a fourth property for $7.6
million; -- On September 16, 2008, we entered into a sale option
agreement to sell our Auburn property located in Sydney, Australia.
The option sale price is $28.5 million and comes to term on
November 1, 2009, following non-refundable option payments of $2.8
million; -- On September 18, 2006, we acquired a 0.3 acre property
in Brisbane, Australia, for $1.8 million. The six-story office
building with two basement levels of parking that is being
constructed on that site is anticipated to be completed in March
2009; -- At December 31, 2007, we had sold of all 67 residential
units of the Place 57 residential condominium tower in Manhattan,
in which we own a 25% interest. The one retail unit which had
remained unsold was sold in February 2009. Based on the closing
statements of the sale, our share of the earnings will be
approximately $800,000; and -- We took a $4.0 million impairment
charge relative to certain parcels of land held for development in
Australia and New Zealand. Which resulted in: -- revenue growth of
68.7% to $191.3 million, compared to $113.4 million in 2007; -- an
operating loss of $4.6 million, compared to income of $5.2 million
in 2007; -- net loss for the 2008 year of $18.5 million compared to
a loss of $2.1 million in 2007; -- EBITDA(1) of $17.9 million in
2008 compared to $20.0 million in 2007; and -- adjusted EBITDA(1)
of $21.3 million in 2008 compared to $18.9 million in 2007. Fourth
Quarter 2008 Discussion Revenue from operations increased from
$26.5 million in Q4 2007 to $43.8 million in 2008, a 65.6%
increase, or $17.4 million. Cinema segment revenue increased by
$18.7 million and was predominantly in the U.S., which was $18.8
million higher than last year. This increase in the U.S. was driven
by our Consolidated Entertainment acquisition. The quarter also
reflected a good product mix, which included "Quantum of Solace,"
"Madagascar: Escape 2 Africa" and "Twilight." These top 3 grossing
films for our worldwide circuit accounted for approximately 17.8%
of our cinema box office revenue. The decrease in real estate
revenue was predominantly in the U.S. and driven by a reduction in
rental revenue from our live theatres, which contributed to a
decrease in real estate revenue by $1.2 million, to $2.4 million in
2008. As a percent of revenue, cinema/real estate segment operating
expense, at 79.4% in the 2008 quarter, was higher than the 72.1% 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 a 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 prior to
the acquisition. Depreciation and amortization increased by $1.3
million or 46.0%, from $2.8 million in the 2007 quarter to $4.0
million in the 2008 quarter, primarily related to our newly
acquired Consolidated Entertainment cinema assets. During the
fourth quarter, we recorded asset impairment charges of $5.3
million, compared to no charge in the 2007 quarter. The impairment
of our real estate assets, which accounted for $3.2 million of this
amount, was driven by reduced market capitalization rates; whereas
the $2.1 million associated with our cinema assets was a mixture of
reduced cash flow from our New Zealand cinemas and reductions in
market value multiples. These impairments are non-cash charges to
earnings and did not affect the company's liquidity or cash flow
from operations. General and administrative expense increased by
$2.8 million or 59.7%, from $4.7 million to $7.4 million in the
2008 quarter. This increase was primarily due to additional
compensation expense of $125,000 relating to hiring our Chief Legal
Officer, additional audit costs from a stand-alone audit of the
entity that holds our Consolidated Entertainment acquisition;
expensing of executive stock grants of $700,000, legal and
professional fees of $450,000 associated principally with our real
estate investment activities and the defense of the IRS claim; and
a $710,000 write down in the value recoverable on our Malulani
investment. Net interest expense increased by $3.7 million to $5.9
million, primarily related to an increase in interest expense of
$2.3 million in the 2008 quarter, compared to a decrease of
interest expense of $506,000 for the 2007 quarter, relating to our
interest rate swap contracts; this was in addition to higher
outstanding loan balances in 2008 compared to 2007, primarily
relating to our current year Consolidated Entertainment
acquisition. Other expense (which includes equity earnings from
unconsolidated entities) increased by $527,000 as a result of a
decrease in equity earnings from unconsolidated joint ventures and
entities primarily relating to a $307,000 impairment of one of our
joint venture investments, a write-off of acquired development
plans as part of our 2005 Movieland acquisition of $173,000, a
final settlement expense relating to New Zealand litigation of
$158,000, and an impairment charge of $130,000 relating to some of
our historical properties in Philadelphia. These amounts were
offset by a decrease in mark-to-market expense for our Becker
securities of $314,000 ($810,000 in the 2007 quarter and $496,000
in the 2008 quarter). As a result of the above, we reported a net
loss of $16.5 million for the 2008 quarter compared to a net loss
of $4.0 million in the 2007 quarter. Our EBITDA(1) of negative $6.0
million for the 2008 quarter was $7.8 million lower than the 2007
quarter of positive $1.8 million. However, adjusting 2008 for: --
the write-offs and impairment charges of $5.9 million; -- the
Becker available-for-sale shares mark-to-market expense of
$496,000; and -- the write-down of the amount recoverable on our
Malulani investment of $710,000, our adjusted EBITDA(1) for the
2008 quarter was $1.1 million. Adjusting the 2007 quarter for: --
the Becker available-for-sale shares mark-to-market expense of
$810,000, our adjusted EBITDA(1) for the 2007 quarter was $2.6
million. Twelve Month 2008 Summary Revenue from operations
increased by 68.7% or $77.9 million, to $191.3 million in the
twelve months of 2008 compared to 2007. This increase was driven by
an increase in cinema segment revenue for 2008 of $77.6 million or
77.8%. The 2008 increase was primarily a result of $66.9 million of
revenue from our newly acquired Consolidated Entertainment cinemas
and improved results from our Australia operations of $9.5 million.
Strong circuit-wide showings of "The Dark Knight," "Iron Man" and
"Indiana Jones: Kingdom of the Crystal Skull" accounted for 11.5%
of our worldwide cinema box office revenue. The real estate segment
revenue increase of $2.0 million came predominantly from the U.S.,
driven by rental revenues from our acquisition of the Consolidated
Entertainment cinemas that have ancillary real estate associated
with them, and Australia. As a percent of revenue, cinema/real
estate segment operating expense, at 78.7% in the 2008 twelve
months, was higher than the 71.8% of the 2007 twelve months. The
primary drivers were the same factors that drove the 2008 quarter,
as stated above. Depreciation and amortization increased by $7.1
million to $17.9 million in 2008 from $10.7 million in 2007, driven
primarily by our acquisition of the Consolidated Entertainment
cinema assets in 2008. During 2008, we recorded asset impairment
charges of $6.0 million, compared to no charge in 2007. The
impairment of our real estate assets, which accounted for $4.0
million of this amount, was driven by reduced market capitalization
rates, whereas the $2.1 million associated with our cinema assets
was a mixture of reduced cash flow from our New Zealand cinemas and
reductions in market value multiples. Again, these impairments are
non-cash charges to earnings and did not affect the company's
liquidity or cash flows from operations. General and administrative
expense increased by $5.3 million to $21.4 million in 2008 from
$16.1 million in 2007. The significant drivers of this increase
were $1.2 million in executive stock bonus expense, additional
compensation expense related to our newly hired CLO of $240,000,
additional directors' fees of $150,000, acquisition related
one-time charges of $300,000 and on-going audit charges of $125,000
related to the acquisition of the Consolidated Entertainment
assets, additional legal fees related to our investment activities
and the IRS tax case of $1.3 million, and a $710,000 write down in
the value recoverable on our Malulani investment. Net interest
expense increased by $7.6 million in the 2008 year, to $15.7
million, primarily related to higher outstanding loan balances in
2008 compared to 2007 predominantly relating to our Consolidated
Entertainment acquisition in February 2008, combined with an
increase in interest expense of $2.1 million for 2008 compared to a
decrease in interest expense of $320,000 for 2007, relating to our
interest rate swap contracts. Other income (which includes equity
earnings from unconsolidated entities) decreased by $552,000 to
$1.5 million in 2008, primarily due to our Burstone litigation
settlement receipts totaling $1.2 million, insurance proceeds of
$910,000 related to damage caused by Hurricane George in 1998 to
one of our previously owned cinemas in Puerto Rico. This income was
offset by 2008 write-off and impairment expenses of $173,000,
$307,000, and $130,000 as described in the quarter discussion
above, a $158,000 final litigation settlement described above; and
equity earnings from unconsolidated joint ventures and entities
which decreased by $2.0 million primarily due to lower earnings
from our Place 57 investment. During 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. During 2008, we recorded a gain of $2.5
million on the sale of our 50% share of the 8-screen Botany Downs
cinema in Auckland, New Zealand, to our joint venture partner. As a
result, we reported a net loss of $18.5 million for the 2008 twelve
months compared to a net loss of $2.1 million in the 2007 twelve
months. Our reported EBITDA(1) at $17.9 million for the twelve
months of 2008 was $2.1 million lower than the $20.0 million in the
2007 twelve months. However, adjusting 2008 for: -- the write-offs
and impairment charges of $6.7 million; -- the Becker shares
mark-to-market expense of $496,000; and -- the write-down of the
amount recoverable on our Malulani investment of $710,000; offset
by -- the Botany Downs gain on sale of $2.5 million; and --
litigation settlements and insurance claim recoveries of $2.1
million, our adjusted EBITDA(1) for 2008 was $21.3 million.
Adjusting 2007 for: -- the Becker shares mark-to-market expense of
$810,000; -- the Sutton Hill Capital, L.L.C. Cinemas 1, 2, & 3
option mark-to-market expense of $950,000; and -- $391,000 of
expensed director stock option costs; offset by -- the release of
the deferred gain on sale of $1.9 million; and -- Place 57 earnings
of $1.3 million, our adjusted EBITDA(1) for 2007 was $18.9 million.
The result is that our adjusted EBITDA(1) from operations in the
2008 twelve months was $2.4 million higher than the 2007 twelve
months. Balance Sheet and Liquidity Our total assets at December
31, 2008 were $370.1 million compared to $346.1 million at December
31, 2007. The currency exchange rates for Australia and New Zealand
as of December 31, 2008 were $0.6983 and $0.5815, respectively, and
as of December 31, 2007, these rates were $0.8776 and $0.7678,
respectively. As a result, currency had a significant negative
effect on the balance sheet at December 31, 2008 compared to
December 31, 2007. Our cash position at December 31, 2008 was $30.9
million compared to $20.8 million at December 31, 2007. In June
2008, we negotiated an extension of our Australia Corporate Credit
Facility of $76.8 million (AUS$110.0 million), through to June 30,
2011 and thereafter one year rolling extensions based on a yearly
review. At December 31, 2008, we had drawn a total of $70.2 million
(AUS$100.5 million) against this facility and issued lease
guarantees as the lessee of $2.8 million (AUS$4.0 million) leaving
an available, undrawn balance of $3.8 million (AUS$5.5 million). On
June 29, 2007, we finalized the renegotiation of our New Zealand
Corporate Credit Facility as a $34.9 million (NZ$60.0 million) line
of credit together with an extension of the facility through to
November 23, 2010. At December 31, 2008 we had drawn only $8.7
million (NZ$15.0 million) against this line of credit, leaving an
available undrawn balance of $26.2 million (NZ$45.0 million).
Accordingly, we believe that we have sufficient borrowing capacity
under our New Zealand and Australian corporate facilities to meet
our anticipated short-term working capital requirements. Our
positive working capital at December 31, 2008 was $32.6 million
compared to a positive working capital of $32.3 million at December
31, 2007. The increase in 2008 and the reclassification in 2007 was
a result of characterizing our Auburn, Sydney, Australia property
as an asset held for sale. Stockholders' equity was $65.8 million
at December 31, 2008 compared to $121.4 at December 31, 2007. The
significant movement was due to the currency rates at the relevant
year-ends, which adjusted the stockholders' equity negatively by
$39.1 million. Based upon the current levels of the consolidated
operations, further anticipated cost savings and future growth, we
believe our cash flow from operations, together with both the
existing and anticipated lines-of-credit and other sources of
liquidity, will be adequate to meet our anticipated requirements
for interest payments and other debt service obligations, working
capital, capital expenditures, and other operating needs. Recent
and Subsequent Events Trust Preferred Securities ("TRUPS")
Redemption: In a series of transactions between December 31, 2008
and February 3, 2009 we: -- On December 31, 2008, secured a waiver
of all financial covenants with respect to our TRUPS for a period
of nine years, in consideration of the payment of $1.6 million,
consisting of an initial payment of $1.1 million and a contractual
obligation to pay $270,000 in December 2011 and $270,000 in
December 2014. In the event these payments are not made, the only
remedy is the termination of the waiver; and -- took advantage of
the current market illiquidity for securities such as our TRUPS to
effectively repurchase $22.9 million of these securities for $11.5
million. The resultant gain on forgiveness of debt will be
recognized once the securities are cancelled, which is scheduled
for April 30, 2009. Place 57 Retail Condominium Sale: At December
31, 2007, we had sold all 67 residential units of the Place 57
residential condominium tower in Manhattan, in which we own a 25%
interest. The one retail unit which had remained unsold was sold in
February 2009 for approximately $4.0 million. Based on the closing
statements of the sale, our share of the earnings will be
approximately $800,000. Malulani Investments Litigation: In
December 2006, we commenced a lawsuit against certain officers and
directors of Malulani Investments Limited ("MIL") alleging various
direct and derivative claims for breach of fiduciary duty and waste
and seeking, among other things, access to various company books
and records. As certain of these claims were brought derivatively,
MIL was also named as a defendant in that litigation. On March 11,
2009, we and Magoon LLC agreed to terms of settlement (the
"Settlement Terms") with respect to this lawsuit. Under the
Settlement Terms, we and Magoon LLC will receive $2.5 million in
cash, a $6.75 million three-year 6.25% secured promissory note
(issued by TMG), and a ten year "tail interest" in MIL and TMG
which allows us, in effect, to participate in certain distributions
made or received by MIL, TMG and/or, in certain cases, the
shareholders of TMG. However, the tail interest continues only for
a period of ten years and no assurances can be given that we will
in fact receive any distributions with respect to this Tail
Interest. 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 -- Reading
brand, -- Angelika Film Center brand
(http://angelikafilmcenter.com/), -- City Cinemas brand
(http://citycinemas.moviefone.com/), and -- Consolidated brand
(http://www.consolidatedtheatres.com/); -- in Australia under the
Reading brand (http://www.readingcinemas.com.au/); and -- in New
Zealand under the -- Reading brand
(http://www.readingcinemas.co.nz/) and -- Rialto brand
(http://www.rialto.co.nz/). 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 moviegoers 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-U.S. GAAP
financial measures." In such case, a reconciliation of this
information to our U.S. GAAP financial statements will be made
available in connection with such statements. 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 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). [TABLES FOLLOW] Reading International, Inc.
and Subsidiaries Supplemental Data Reconciliation of EBITDA to Net
Income (Loss) (Unaudited) (dollars in thousands, except per share
amounts) Three Months Ended Twelve Months Ended Statements of
Operations December 31, December 31, ------------- -------------
2008 2007 2008 2007 Revenue $43,814 $26,455 $191,286 $113,404
Operating expense Cinema/real estate 34,780 19,077 150,515 81,416
Depreciation and amortization 4,039 2,767 17,868 10,737 Impairment
expense 6,045 -- 6,045 -- General and administrative 7,441 4,660
21,434 16,085 Operating income (loss) (8,491) (49) (4,576) 5,166
Interest expense, net (5,908) (2,183) (15,740) (8,161) Other income
(expense) (1,362) (835) 1,488 2,040 Gain on disposal of business
operation -- -- -- 1,912 Gain (loss) from discontinued operations,
net of tax 191 49 562 (19) Gain on sale of unconsolidated entity --
-- 2,450 -- Income tax expense (586) (595) (2,099) (2,038) Minority
interest expense (374) (346) (620) (1,003) Net loss $(16,530)
$(3,959) $(18,535) $(2,103) Basic loss per share $(0.73) $(0.17)
$(0.82) $(0.09) Diluted loss per share $(0.73) $(0.17) $(0.82)
$(0.09) EBITDA(1) $(5,990) $1,819 $17,862 $20,019 EBITDA(1) change
(7,809) (2,157) (1) 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 Twelve Months Ended December 31, December
31, ------------- ------------- 2008 2007 2008 2007 Net loss
$(16,530) $(3,959) $(18,535) $(2,103) Add: Interest expense, net
5,908 2,183 15,740 8,161 Add: Income tax provision 586 595 2,099
2,038 Add: Depreciation and amortization 4,039 2,767 17,868 10,737
Adjustment for discontinued operations 7 233 690 1,186 EBITDA
$(5,990) $1,819 $17,862 $20,019 Reading International, Inc. and
Subsidiaries Consolidated Statements of Operations for the Three
Years Ended December 31, 2008 (U.S. dollars in thousands, except
per share amounts) Year Ended December 31, -----------------------
2008 2007 2006 Operating revenue Cinema $177,256 $99,703 $90,504
Real estate 14,030 13,701 10,346 Total operating revenue 191,286
113,404 100,850 Operating expense Cinema 141,761 74,051 66,736 Real
estate 8,754 7,365 6,558 Depreciation and amortization 17,868
10,737 11,912 Impairment expense 6,045 -- -- General and
administrative 21,434 16,085 12,991 Total operating expense 195,862
108,238 98,197 Operating income (loss) (4,576) 5,166 2,653 Interest
income 1,009 798 306 Interest expense (16,749) (8,959) (6,903) Net
loss on sale of assets -- (185) (45) Other income (expense) 991
(320) (1,953) Loss before minority interest, discontinued
operations, income tax expense and equity earnings of
unconsolidated joint ventures and entities (19,325) (3,500) (5,942)
Minority interest (620) (1,003) (672) Loss before discontinued
operations, income tax expense, and equity earnings of
unconsolidated joint ventures and entities (19,945) (4,503) (6,614)
Gain on sale of a discontinued operation, net of tax -- 1,912 --
Income (loss) from discontinued operations, net of tax 562 (19)
(249) Loss before income tax expense and equity earnings of
unconsolidated joint ventures and entities (19,383) (2,610) (6,863)
Income tax expense (2,099) (2,038) (2,270) Loss before equity
earnings of unconsolidated joint ventures and entities (21,482)
(4,648) (9,133) Equity earnings of unconsolidated joint ventures
and entities 497 2,545 9,547 Gain on sale of unconsolidated joint
venture 2,450 -- 3,442 Net income (loss) $(18,535) $(2,103) $3,856
Earnings (loss) per common share - basic: Earnings (loss) from
continuing operations $(0.84) $(0.18) $0.18 Earnings (loss) from
discontinued operations, net 0.02 0.09 (0.01) Basic earnings (loss)
per share $(0.82) $(0.09) $0.17 Weighted average number of shares
outstanding - basic 22,477,471 22,478,145 22,425,941 Earnings
(loss) per common share - diluted: Earnings (loss) from continuing
operations $(0.84) $(0.18) $0.18 Earnings (loss) from discontinued
operations, net 0.02 0.09 (0.01) Diluted earnings (loss) per share
$(0.82) $(0.09) $0.17 Weighted average number of shares outstanding
- diluted 22,477,471 22,478,145 22,674,818 Reading International,
Inc. and Subsidiaries Consolidated Balance Sheets as of December
31, 2008 and 2007 (U.S. dollars in thousands) December 31,
------------ 2008 2007 ASSETS Current Assets: Cash and cash
equivalents $30,874 $20,782 Receivables 7,868 5,671 Inventory 797
654 Investment in marketable securities 3,100 4,533 Restricted cash
1,656 59 Assets held for sale 20,119 25,941 Prepaid and other
current assets 2,324 3,800 Total current assets 66,738 61,440 Land
held for sale -- 1,984 Property held for development 9,005 9,289
Property under development 58,595 66,787 Property & equipment,
net 153,165 154,012 Investment in unconsolidated joint ventures and
entities 11,643 15,480 Investment in Reading International Trust I
1,547 1,547 Goodwill 34,964 19,100 Intangible assets, net 25,118
8,448 Other assets 9,301 7,984 Total assets $370,076 $346,071
LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts
payable and accrued liabilities $13,170 $12,331 Film rent payable
7,315 3,275 Notes payable - current portion 1,347 395 Note payable
to related party - current portion -- 5,000 Taxes payable 6,425
4,770 Deferred current revenue 5,645 3,214 Other current
liabilities 201 169 Total current liabilities 34,103 29,154 Notes
payable - long-term portion 172,268 111,253 Notes payable to
related party - long-term portion 14,000 9,000 Subordinated debt
51,547 51,547 Noncurrent tax liabilities 6,347 5,418 Deferred
non-current revenue 554 566 Other liabilities 23,604 14,936 Total
liabilities 302,423 221,874 Commitments and contingencies Minority
interest in consolidated affiliates 1,817 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 December 31, 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 December 31,
2008 and at December 31, 2007 15 15 Nonvoting Preferred Stock, par
value $0.01, 12,000 shares authorized and no issued or outstanding
shares at December 31, 2008 and 2007 -- -- Additional paid-in
capital 133,906 131,930 Accumulated deficit (71,205) (52,670)
Treasury shares (4,306) (4,306) Accumulated other comprehensive
income 7,210 46,177 Total stockholders' equity 65,836 121,362 Total
liabilities and stockholders' equity $370,076 $346,071
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.readingrdi.com/
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