Earnings Call Webcast to Discuss 2019 Third
Quarter Financial Results to Post to Corporate Website on
Thursday, November 14, 2019
Reading International, Inc. (NASDAQ: RDI) today announced
results for the quarter ended September 30, 2019. Our Company
reported Basic Earnings per Share (“EPS”) of $0.04 and $0.05 for
the quarter and nine months ended September 30, 2019 respectively,
compared to $0.06 and $0.41 in the corresponding prior year
periods. At $70.5 million, our Consolidated Revenue for the third
quarter of 2019 decreased by 5%, or $3.8 million, compared to the
third quarter of 2018. Our revenue decrease was primarily impacted
by three factors:
(i) A decrease in cinema attendance due
primarily to (a) a weaker slate of film from arthouse/specialty
distributors in the U.S., (b) the outperformance during the third
quarter of 2018 of Crazy Rich Asians at our Consolidated Theatres
in Hawaii and (c) the 2019 closures due to the expiration of leases
underlying three of our cinemas in New York City, offset by our
acquisition of one cinema in Australia and the opening of one
cinema in New Zealand; (ii) The continuing closure (that began in
January 2019) of our Reading Cinema and certain retail areas at
Courtenay Central in Wellington, New Zealand as a result of seismic
concerns; and (iii) Adverse foreign exchange impact with a 6.2%
decline in the Australian dollar and a 3.0% decline in the New
Zealand dollar.
Throughout the quarter, we continued to execute on our strategic
priorities of upgrading our cinemas through the addition of
recliner seating, converting screens to TITAN LUXE or TITAN XC,
improving our Food & Beverage (“F&B”) programs and
expanding and improving our proprietary online ticketing programs
(generating service fee income). Our solid execution of these
strategic priorities mitigated the impact of our attendance
decline. Notwithstanding the media coverage about the popularity of
streaming, the overall exhibition industry enjoyed a box office
increase for the quarter demonstrating the continuing strength and
vitality of our industry. Our U.S. cinema circuit is unique in that
we are dependent on both strong art and specialty film and
commercial movies. Reflecting the content ebbs and flows, in 2019,
the arthouse/specialty distributors have delivered a particularly
weak film line-up.
During the first nine-months, we entered into or acquired leases
for two new cinemas in Australia and one new cinema in New Zealand.
Two of these cinemas (representing seven screens) are now
operational. The other cinema is anticipated to launch operations
during 2020. Subsequent to the end of the quarter, we entered into
an additional lease agreement with respect to a cinema under
development in Australia. In the U.S., we exercised our option to
acquire the ground lessee’s interest in the land and improvements
at our Village East Cinema in New York City. The exercise price
(payable upon the closing, currently contemplated for the second
quarter of 2020) is $5.9 million.
At our Tammany Hall/44 Union Square project in New York City, we
installed the last of the glass panels in the iconic dome. While no
assurances can be given, we anticipate filing for a core and shell
temporary certificate of occupancy for the building by the end of
2019. Lease negotiations continue with our anticipated principal
tenant that are expected to account for over 90% of the building,
and a variety of retail tenants continue to evaluate the remainder
of the space.
In addition, during the quarter, we made progress on the
planning of our re-development projects at Courtenay Central in
Wellington, New Zealand and Cannon Park in Townsville, Australia.
We also continued to work with various public and private
stakeholders on the infrastructure work for our 70.4 acre
industrial site in the Manukau/Wiri area of Auckland, New
Zealand.
Ellen Cotter, Chair, President and Chief Executive Officer said,
“During the third quarter, the Reading team delivered impressive
results at our Australian cinema and real estate and U.S. Live
Theatre divisions, each of which delivered quarterly revenues and
cash flow, in their respective functional currency, ranking first
or second best for any third quarter. In New Zealand, the
continuing closure of Courtenay Central due to seismic issues
caused declines in our overall cinema and real estate divisions in
that country. And, our U.S. Cinemas were negatively impacted, not
only by closures of three NYC theaters due to lease expirations,
but also a weaker slate of arthouse/specialty film and film of the
type appealing to our Consolidated Theatres audience in Hawaii.
Despite challenged attendance and box office result for our U.S.
Cinemas, we continued to execute well on our strategic initiatives,
including Food & Beverage and online ticketing. Looking
forward, we are excited not only about the highly anticipated
fourth quarter commercial line up, including Star Wars: The Rise of
Skywalker in December, but also specialty films like Little Women
by Greta Gerwig, Dark Waters by Todd Haynes and A Hidden Life by
Terrence Malick.”
Cotter continued, “We made good progress on our strategic value
creation projects, including 44 Union Square in New York City and
Courtenay Central in Wellington, New Zealand, each of which will
create long term value for our stockholders when the developments
are completed. Tammany Hall has turned out to be even more
impressive than we had hoped, and the views of Union Square from
our iconic glass dome are magnificent. I encourage people to look
at the photos posted @44UnionSquare on Instagram.”
Reading International, Inc. also announced today the appointment
of Gilbert Avanes as its Executive Vice President, Chief Financial
Officer and Treasurer effective November 5, 2019. Since January
2019, Mr. Avanes has held the role of Interim Chief Financial
Officer and Treasurer.
"We're delighted that Gilbert will take on the position of Chief
Financial Officer," said Ellen Cotter. "Gilbert has played a
critical role in the growth of Reading since joining in 2007. His
strategic financial, planning and analysis expertise, coupled with
his deep knowledge of our Company’s assets and their potential,
make Gilbert an ideal fit for this position. Margaret and I and the
rest of the Board and management team look forward to continue
working with Gilbert to continue to capitalize on our growth
opportunities ahead."
Over his 12 years with the Company, Mr. Avanes has held a
variety of positions of increasing responsibility on the Company’s
finance team, including: Senior Director of Financial Planning and
Analysis; Director of Financial Planning and Analysis; Senior
Finance Manager; and his current position of Vice President,
Financial Planning and Analysis. Prior to joining Reading, Mr.
Avanes served in various finance and accounting roles over the
course of a decade at Toronto-Dominion Bank Financial Group. Mr.
Avanes received his M.B.A. from Laurentian University and a
Bachelor of Commerce in Accounting from Ryerson University,
Toronto.
The following table summarizes the results for the third quarter
and nine months of the year results for 2019 and 2018,
respectively:
Quarter Ended
Nine Months Ended
September 30,
% Change Favorable/
September 30,
% Change Favorable/
(Dollars in millions, except EPS)
2019
2018
(Unfavorable)
2019
2018
(Unfavorable)
Revenue
$
70.5
$
74.3
(5
)%
$
208.1
$
234.4
(11
)%
- US
37.8
40.8
(7
)%
112.7
124.9
(10
)%
- Australia
26.7
26.0
3
%
78.5
84.9
(8
)%
- New Zealand
6.0
7.5
(20
)%
16.9
24.6
(31
)%
Operating expense
$
(67.5
)
$
(69.7
)
3
%
$
(200.7
)
$
(215.5
)
7
%
Segment operating income (1)
$
7.5
$
9.5
(21
)%
$
21.9
$
35.9
(39
)%
Net income/(loss)(2)
$
0.9
$
1.3
(31
)%
$
1.2
$
9.4
(87
)%
EBITDA (1)
$
9.0
$
10.4
(13
)%
$
25.2
$
35.9
(30
)%
Adjusted EBITDA (1)
$
9.2
$
10.9
(16
)%
$
26.0
$
39.0
(33
)%
Basic EPS (2)
$
0.04
$
0.06
(33
)%
$
0.05
$
0.41
(88
)%
(1) Aggregate segment operating income, earnings before interest
expense (net of interest income), income tax expense, depreciation
and amortization expense (“EBITDA”) and adjusted EBITDA are
non-GAAP financial measures. See the discussion of non-GAAP
financial measures that follows. (2) Reflect amounts attributable
to stockholders of Reading International, Inc., i.e. after
deduction of noncontrolling interests.
COMPANY HIGHLIGHTS
- Operating Results: For the
quarter ended September 30, 2019, our worldwide revenue was $70.5
million, a decrease of 5%, or $3.8 million, from the same quarter
in the prior year. Our operating results were negatively impacted
by (i) a decrease in cinema attendance resulting primarily from the
U.S. where the third quarter 2019 slate of film proved to be less
attractive to movie goers in our specialized markets than that
available for the comparable period in 2018, (ii) the continuing
closure due to seismic concerns of a majority of the net rentable
area of Courtenay Central in Wellington (NZ), including our Reading
Cinema at that location, and (iii) the adverse foreign currency
exchange impact of the weakening Australian and New Zealand
dollars.
Our cinema results were supported by solid
execution on our strategic initiatives. Each of our cinema circuits
in the U.S., Australia and New Zealand, in their functional
currency, set records for the highest third quarter F&B spends
per patron (“SPP”).
We continue to improve and expand our
self-ticketing capabilities through our global cinema circuit. We
achieved a third quarter record for online ticket revenue, beating
the third quarter in 2018 by a combined 20% increase over the
previous record third quarter. Online sales consisted of 26.4% of
our global box office revenue, which is a record and represents an
increase of 6-percentage points from the prior year period. Our
continued improvements to our websites and apps and improved global
online sales infrastructure are enabling us to better serve high
sales volumes.
Due to the continued weakening of the
Australian and New Zealand currencies, the financial contributions
of our cinema circuits in Australia and New Zealand to our overall
results of operation have decreased.
- Capex program: During the
third quarter of 2019, we invested $10.0 million in capital
improvements, including our continued investment in the
redevelopment of 44 Union Square in New York City, as well as the
upgrading of certain of our cinemas:
(i) At our Reading Cinemas in West Lakes
(Australia), we converted two screens to TITAN LUXE and added a
Gold Lounge screen, each with recliner seating; (ii) At our Reading
Cinemas in Harbour Town (Australia), we converted two screens to
TITAN LUXE, each with recliner seating; and (iii) At our Reading
Cinemas in Rohnert Park (California), we converted an auditorium to
TITAN XC with Dolby ATMOS.
- Cinema Additions and
Pipeline: In early 2019, we purchased a well-established
four-screen cinema in Devonport, Tasmania. Also, to mitigate the
temporary closure of Reading Cinemas at Courtenay Central, we
leased a three-screen cinema space in Lower Hutt, adjacent to
Wellington, New Zealand. This cinema, which trades as The Hutt Pop
Up by Reading Cinemas, began operations in late June 2019. These
additions bring our operating global cinema count to 58 and global
screen count to 480, net of the three City Cinemas (Paris, Beekman,
and 86th Street) closed during the second and third quarter in the
U.S. as a result of lease expirations. But for the lease
expirations of these New York City cinemas, we would not have
closed these profitable cinemas.
We have five cinemas with 31 screens in the
pipeline. We expect our Reading Cinemas in Burwood (Melbourne, VIC)
to open in 2019 in time for Star Wars: The Rise of Skywalker. The
six-screen cinema will be the first all reclining cinema we have in
Melbourne and will feature a TITAN LUXE and an elevated F&B
program. Additionally, we have signed four lease agreements for new
build cinemas (comprising 25 screens) due to come online over the
next two years.
Real estate activities:
- Re-Development of 44 Union Square (New
York, U.S.) During July 2019, we topped out the steel dome
capping our redevelopment of historic Tammany Hall at 44 Union
Square and the last of the glass was installed last month. We
anticipate filing for our core and shell temporary certificate of
occupancy in December 2019 and are in final negotiations of a long
term lease for approximately 90% of the net rentable area of the
building. This lease would be for office use, and the remaining
7,200 square feet of ground floor space (facing onto Union Square)
continues to be marketed for retail use by Newmark.
- Minetta Lane Theatre (New York,
U.S.) In April 2019, we negotiated an extension through
March 2020 (with an option to extend our licensee for an additional
year through March 2021) of our Minetta Lane Theatre license
agreement with Audible, Inc., a subsidiary of Amazon. Audible will
continue to use our theatre as the location for its production of
various plays featuring one or two actors, to be recorded before a
live theatre audience, and offered on Audible.com.
- Village East Cinema (New York,
U.S.) In August 2019, we exercised our option to acquire the
lessee’s interest in the ground lease and improvements constituting
our Village East cinema in the East Village of New York City. The
exercise price (payable upon the closing, currently contemplated
for the second quarter of next year) is $5.9 million. The
acquisition clears the way for our renovation of this cinema, which
is currently planned for next year. As the transaction was a
related party transaction, the option exercise was reviewed and
approved by our Board’s Audit and Conflicts Committee and supported
by a third party valuation, which showed substantial value in the
option.
- Courtenay Central Re-Development
(Wellington, New Zealand) Located in the heart of Wellington
- New Zealand’s capital city, this center is comprised of 161,071
square feet of land situated proximate to the Te Papa Tongarewa
Museum (attracting over 1.5 million visitors annually), across the
street from the site of Wellington’s newly announced convention
center (estimated to open its doors in 2022) and at a major public
transit hub. Damage from the 2016 earthquake necessitated
demolition of our nine-story parking garage at the site. Further,
unrelated seismic issues have caused us to close the existing
cinema and significant portions of the retail structure while we
re-evaluate the property for redevelopment as an entertainment
themed urban center with a major food, beverage and grocery
component.
During the quarter, we continued to work
through the re-development details of the Courtenay Central
building, which we anticipate will feature a variety of uses to
complement and build upon the “destination quality” of this
location
Wellington continues to be rated as one of
the top cities in the world in which to live. Earlier this year,
UNESCO named Wellington as a UNESCO Creative City of Film. We
continue to believe that the Courtenay Central site is located in
one of the most vibrant and growing commercial and entertainment
precincts of New Zealand.
SEGMENT RESULTS
The following table summarizes the third quarter and nine months
segment operating results for 2019 and 2018, respectively:
Quarter Ended
Nine Months Ended
September 30,
% Change Favorable/
September 30,
% Change Favorable/
(Dollars in thousands)
2019
2018
(Unfavorable)
2019
2018
(Unfavorable)
Segment revenue
Cinema
United States
$
36,750
$
40,038
(8)
%
$
109,743
$
122,437
(10)
%
Australia
24,279
23,659
3
%
71,318
77,513
(8)
%
New Zealand
5,704
6,974
(18)
%
16,040
23,159
(31)
%
Total
$
66,733
$
70,671
(6)
%
$
197,101
$
223,109
(12)
%
Real
estate
United States
$
1,006
$
805
25
%
$
2,873
$
2,410
19
%
Australia
3,905
3,847
2
%
11,873
12,305
(4)
%
New Zealand
620
1,119
(45)
%
1,779
3,489
(49)
%
Total
$
5,531
$
5,771
(4)
%
$
16,525
$
18,204
(9)
%
Inter-segment elimination
(1,808)
(2,181)
17
%
(5,524)
(6,918)
20
%
Total segment revenue
$
70,456
$
74,261
(5)
%
$
208,102
$
234,395
(11)
%
Segment operating income
Cinema
United States
$
437
$
2,310
(81)
%
$
2,772
$
10,008
(72)
%
Australia
4,671
4,678
—
%
12,909
16,642
(22)
%
New Zealand
913
1,214
(25)
%
2,250
4,333
(48)
%
Total
$
6,021
$
8,202
(27)
%
$
17,931
$
30,983
(42)
%
Real
estate
United States
$
212
$
(154)
>100
%
$
163
$
(514)
>100
%
Australia
1,405
980
43
%
4,153
4,071
2
%
New Zealand
(132)
434
(>100)
%
(329)
1,339
(>100)
%
Total
$
1,485
$
1,260
18
%
$
3,987
$
4,896
(19)
%
Total segment operating income
(1)
$
7,506
$
9,462
(21)
%
$
21,918
$
35,879
(39)
%
(1) Aggregate segment operating income is a non-GAAP financial
measure. See the discussion of non-GAAP financial measures that
follows.
Cinema Exhibition
Third Quarter Results:
Cinema segment operating income decreased by $2.2 million, or
27%, to $6.0 million for the quarter ended September 30, 2019,
compared to September 30, 2018. The decrease was due to a decline
in attendance in all three circuits. However, such attendance
decreases were offset by increases in average ticket price (“ATP”)
and SPP (each in functional currency) in our U.S., Australia and
New Zealand circuits.
- Revenue in the U.S. decreased by 8%, or $3.3 million, to $36.8
million, due to a 14% decrease in attendance; offset by a 13%
increase in SPP, while ATP remained flat.
- Australia’s cinema revenue increased by 3%, or $0.6 million, to
$24.3 million, primarily due to a 4% increase in SPP and a 3%
increase in ATP, offset by a 2% decrease in attendance.
- New Zealand’s cinema revenue decreased by 18%, or $1.3 million,
to $5.7 million, due to a 24% decrease in attendance (principally
due to the closure of our Courtenay Central Cinema pending
redevelopment), offset by a 13% increase in SPP and a 10% increase
in ATP.
The top three grossing films for the third quarter of 2019 were
The Lion King, Spider-Man: Far From Home, and Toy Story 4,
representing approximately 37% of our worldwide admission revenues
for the quarter. The top three grossing films in the third quarter
of 2018 for our worldwide cinema circuits were Crazy Rich Asians,
Ant-Man and the Wasp, and Mission Impossible – Fallout, which
represented approximately 24% of our worldwide admission
revenues.
Nine Month Results:
Cinema segment operating income declined 42%, or $13.1 million,
to $17.9 million for the nine months ended September 30, 2019
compared to September 30, 2018, primarily driven by a 72% operating
income decline in the U.S. market, a decline in attendance
worldwide and adverse foreign exchange impacts. However, such
attendance decreases were offset to some extent by increases in ATP
and SPP:
- Revenue in the U.S. decreased by 10%, or $12.7 million, to
$109.7 million, primarily due to a 16% decrease in attendance
(principally due to a film slate that was less appealing to our
specialized audiences and the closure of three cinemas due to lease
expirations), offset by a 11% increase in SPP and a 2% increase in
ATP.
- Australia’s cinema revenue decreased by 8%, or $6.2 million, to
$71.3 million, primarily due to a 7% decrease in attendance and a
3% decrease in SPP, while ATP remained flat.
- New Zealand cinema revenue decreased by 31%, or $7.1 million,
to $16.0 million, primarily due to a 32% decrease in attendance,
(significantly due to the closure of our Courtenay Central Cinema
pending redevelopment); offset by a 5% increase in ATP and a 4%
increase in SPP.
The top three grossing films for the nine months of 2019 were
Avengers: Endgame, The Lion King, and Captain Marvel representing
approximately 20% of our worldwide admission revenues, compared to
the top three grossing films a year ago: Avengers: Infinity War,
Black Panther, and Incredibles 2, which represented approximately
18% of our admission revenues for the same period in 2018.
Real Estate
Third Quarter and Nine Month Results:
Real estate segment operating income increased by 18%, or $0.2
million, to $1.5 million for the quarter ended September 30, 2019,
compared to the third quarter ended September 30, 2018, primarily
due to a decrease in operating expenses in all three circuits,
offset by a decrease in revenue in the New Zealand operations, due
specifically to the ongoing closure of most of the net rentable
area of Courtenay Central. Real estate revenue for the third
quarter of 2019, decreased by 4%, or $0.2 million, to $5.5 million
compared to the third quarter of 2018, due also to a decrease in
revenues from our New Zealand segment related to the closure of a
majority of the rentable square footage at Courtenay Central.
For the nine months ended September 30, 2019, the real estate
segment operating income decreased by 19%, or $0.9 million, to $4.0
million compared to the nine months ended September 30, 2018
primarily attributable to an operating loss in the New Zealand
portfolio of $0.3 million for 2019, compared to an operating gain
of $1.3 million for the nine months ended September 30, 2018. Real
estate revenue decreased by 9%, or $1.7 million, to $16.5 million,
compared to the same period in 2018. This was primarily
attributable to the partial closure due to seismic concerns of a
majority of the net rentable area of Courtenay Central during the
first nine months of 2019, compared to same period in 2018.
Our third quarter 2019 Australian real estate segment reported
its highest ever third quarter revenues, reflecting improved
leasing at our centers in Australia, including Newmarket Village
and Auburn Redyard, at $3.9 million.
CONSOLIDATED AND NON-SEGMENT RESULTS
The third quarter and nine month consolidated and non-segment
results for 2019 and 2018 are summarized as follows:
Quarter Ended
Nine Months Ended
September 30,
% Change Favorable/
September 30,
% Change Favorable/
(Dollars in thousands)
2019
2018
(Unfavorable)
2019
2018
(Unfavorable)
Segment operating income
$
7,506
$
9,462
(21)
%
$
21,918
$
35,879
(39)
%
Non-segment income and expenses:
General and administrative expense
(4,493)
(4,831)
7
%
(14,205)
(16,717)
15
%
Interest expense, net
(1,871)
(1,748)
(7)
%
(5,924)
(5,132)
(15)
%
Other
257
(142)
>100
%
483
81
>100
%
Total non-segment income and
expenses
$
(6,107)
$
(6,721)
9
%
$
(19,647)
$
(21,768)
10
%
Income before income taxes
1,399
2,741
(49)
%
2,271
14,111
(84)
%
Income tax benefit (expense)
(547)
(1,482)
63
%
(1,159)
(4,618)
75
%
Net income/(loss)
$
852
$
1,259
(32)
%
$
1,112
$
9,493
(88)
%
Less: net income (loss) attributable to
noncontrolling interests
(50)
(38)
(32)
%
(103)
88
(>100)
%
Net income (loss) attributable to RDI
common stockholders
$
902
$
1,297
(30)
%
$
1,215
$
9,405
(87)
%
Third Quarter and Nine Month
Results
Net income attributable to RDI common stockholders declined by
30%, or $0.4 million, to $0.9 million for the quarter ended
September 30, 2019, compared to the same period prior year. Basic
EPS for the quarter ended September 30, 2019 decreased by $0.02, to
$0.04 from $0.06 in the prior-year quarter, mainly attributable to
a significant decrease in revenue from our Cinema business
segment.
Net income attributable to RDI common stockholders decreased by
87%, or $8.2 million, to $1.2 million for the nine months ended
September 30, 2019, compared to the same period in the prior year.
Basic EPS for the first nine months of 2019 decreased by $0.36, to
$0.05 from $0.41 in the prior year period, mainly attributable to a
significant decrease in revenue from both our Cinema and Real
Estate business segments.
Non-Segment General &
Administrative Expenses
Our non-segment general and administrative expense for the
quarter ended September 30, 2019 compared to the same period in the
prior year decreased by 7%, or $0.3 million, to $4.5 million. The
quarterly decrease mainly relates to lower legal expenses,
consulting fees, and various compensation costs.
Non-segment general and administrative expense for the nine
months ended September 30, 2019, decreased by 15%, or $2.5 million,
to $14.2 million, compared to the nine-month period ending
September 30, 2018, primarily related to lower legal expenses.
Income Tax Expense
Income tax expense for the quarter and nine months ended
September 30, 2019, decreased by $0.9 million and $3.5 million,
respectively, compared to the equivalent prior-year period. The
change between 2019 and 2018 is primarily related to lower pretax
income for the quarter and first nine months of 2019.
OTHER FINANCIAL INFORMATION
Balance Sheet and Liquidity
Total assets increased by $218.8 million, to $657.8 million at
September 30, 2019, compared to $439.0 million at December 31,
2018. This was primarily driven by the implementation of the lease
accounting standard effective January 1, 2019, which also resulted
in a similar increase in our liabilities. Additionally, assets
increased due to the capital investments relating to major real
estate projects, primarily the redevelopment of 44 Union Square in
New York, and to cinema improvements in (i) the U.S. at our
Consolidated Theatres in Mililani (Hawaii), (ii) New Zealand at the
Reading Cinemas at The Palms, and (iii) Australia at the Reading
Cinemas at Maitland, Waurn Ponds, West Lakes and Harbour Town.
Cash and cash equivalents at September 30, 2019 were $8.7
million, including approximately $4.9 million in the U.S., $2.7
million in Australia, and $1.1 million in New Zealand. We manage
our cash, investments and capital structure so we are able to meet
short-term and long-term obligations for our business, while
maintaining financial flexibility and liquidity.
As part of our operating cycle, we utilize cash collected from
(i) our cinema business when selling tickets and F&B items, and
(ii) rental income typically received in advance to reduce our
long-term borrowings and realize savings on interest charges. We
then settle our operating expenses generally with a lag within
traditional trade terms. This generates a temporary working capital
deficit. We review the maturities of our borrowings and negotiate
for renewals and extensions, as necessary for liquidity purposes.
We believe the cash flow generated from our operations coupled with
our ability to renew and extend our credit facilities will provide
sufficient liquidity in the upcoming year.
OTHER INFORMATION
Stock Repurchase Program
At September 30, 2019, the Company had used $20.1 million of the
$25.0 million authorized by the Company’s Board of Directors in
2017 to repurchase Class A Non-Voting Common Stock. During the nine
months ended September 30, 2019, the Company invested $11.3 million
to repurchase 856,563 shares of Class A Non-Voting Common Stock, of
which $7.8 million was paid in cash and $3.5 million through the
issuance of a purchase money promissory note, accruing interest at
5%, payable in equal quarterly installments of principal plus
accrued interest, all due and payable on September 18, 2024. The
Stock Repurchase Program allows Reading to repurchase its Class A
Non-Voting Common Stock from time to time in accordance with the
requirements of the Securities and Exchange Commission on the open
market, in block trades and in privately negotiated transactions,
depending on market conditions and other factors.
Certain Potential Cotter Family Stock
Sales
We are advised that the Estate of James J. Cotter, Sr. (the
“Estate”), has entered into an
agreement with the Internal Revenue Service to pay its estate taxes
over the next ten years. That agreement has been collateralized
through the grant of a security interest in certain Class A
Non-Voting Common Stock currently owned by The James J. Cotter
Living Trust (the "Living Trust"). It
is anticipated that it may be necessary from time to time for the
Estate or the Living Trust to sell Class A Non-Voting Common Stock
to pay that debt.
Consistent with the agreement with the IRS, on September 23,
2019, Ellen Cotter, the President and Chief Executive Officer of
Reading International, Inc., and Margaret Cotter, the Executive
Vice President – Real Estate Management and Development of the
Company, in their capacity as co-trustees of the Living Trust,
entered into a 10b5-1 trading plan (the "10b5-1 Plan"). Under the 10b5-1 Plan, a
broker-dealer has been authorized to sell up to 40,000 shares of
the Class A Non-Voting Common Stock held by the Living Trust over a
period from December 9, 2019 through January 28, 2020, or such
earlier date as all such shares are sold, unless the 10b5-1 Plan is
terminated earlier pursuant to its terms. The Company is advised
that the purpose of the anticipated sales under the 10b5-1 Plan is
to provide liquidity to pay certain estate taxes of the Estate
pursuant to the terms of the Estate's agreement with the Internal
Revenue Service, as well as to pay other state taxes and
expenses.
Similarly, we are advised that Margaret Cotter is the Trustee of
an operational trust established by her father for the benefit of
her children, which is funded entirely with Class A Non-Voting
Common Stock. In her capacity as trustee of this trust, Margaret
Cotter has advised the Company that it will be necessary for that
trust to, from time to time, sell shares of Class A Non-Voting
Common Stock for her children’s educational, medical and other
expenses.
Ellen Cotter and Margaret Cotter have advised our Company that
as a consequence of the litigation between their brother (James J.
Cotter, Jr.) and themselves relating to matters concerning the
estate of their father (James J. Cotter, Sr.) and the Living Trust
and the Voting Trust established by their father, they have
incurred and continue to incur significant legal costs and expenses
and that they may find it necessary to sell Class A Shares held in
their personal capacity to fund the future costs of defending the
intention of their father to preserve control of our Company in the
Cotter Family.
Trust Litigation
In a matter potentially impacting the control of our Company,
but to which our Company is not a party (In re: James J. Cotter
Living Trust dated August 1, 2000 (Case No. BP159755) (the “Trust
Case”)), the California Court of Appeals on April 15, 2019, struck
down the California Trial Court’s order appointing a trustee ad
litem to solicit offers for the purchase of a controlling interest
in our Company. The basis for that disposition was the Appeals
Court’s determination that Mr. James J. Cotter, Jr. lacks standing
to seek the appointment of such a trustee ad litem. The Appeals
Court noted that Mr. Cotter, Jr. is neither a trustee of nor a
beneficiary of the trust established to hold such controlling
interest (the “Voting Trust”) and accordingly, determined that he
lacked any standing to bring before the trial court matters
relating to the internal affairs of that trust, such as the
appointment of a trustee ad litem. The Court of Appeals also noted,
in an observation not material to the specific grounds on which the
California Trial Court’s order was struck down, that “the plain
language [of the Trust Document] appears to show that the settlor
[Mr. Cotter, Sr.] instructed the Trustee [Margaret Cotter] not to
diversify [i.e. not to sell the voting shares held by the Voting
Trust].” The Trust Document directs the Trustee of the Voting Trust
that this voting stock is “to be retained for as long as
possible.”
On remand, Margaret Cotter and Ellen Cotter filed a peremptory
challenge to the original Los Angeles Superior Court judge
continuing to preside over the matter. That challenge was denied
and Margaret and Ellen petitioned the California Court of Appeal
for a writ of mandate. The California Court of Appeal declined to
hear that writ petition and Margaret Cotter and Ellen Cotter have
petitioned the California Supreme Court for review. That petition
remains pending.
The Guardian Ad Litem, appointed by the court to protect the
interests of Mr. Cotter Sr.’s grandchildren, has stated his view
that, notwithstanding the above referenced direction to retain the
Voting Stock as long as possible and the Court of Appeals statement
regarding that direction, diversification of the assets of the
Voting Trust would be in the best interests of the
grandchildren.
The Guardian Ad Litem has petitioned to split the Voting Trust
into two separate trusts and to diversify that portion of any
Voting Stock allocated to any separate trust set up for the
children of Mr. Cotter, Jr. and for authority to retain a valuation
expert. The Guardian Ad Litem has no authority over the Voting
Stock to be vested in the Voting Trust. This authority remains
vested with Margaret Cotter as the Sole Trustee of the Voting Trust
and, until the Voting Stock is transferred into the Voting Trust,
in Ellen Cotter and Margaret Cotter as the Co-Executors of the
Estate of James J. Cotter, Sr. and the Co-Trustees of the Living
Trust.
Ellen Cotter and Margaret Cotter, as Trustees of the James J.
Cotter, Sr. Living Trust, and Margaret Cotter, as Trustee of the
Voting Trust, oppose the Guardian Ad Litem’s petitions on various
grounds including the Guardian Ad Litem’s irreconcilable conflict
of interest. It is the Company’s understanding that no decision
will be made by the Superior Court to split the trust or to
diversify the Voting Trust (or any successor trusts) until there
has been discovery and a trial on the merits as to the intentions
of James J. Cotter, Sr. in this regard. No discovery or trial
schedule is currently in place and no hearing date has been set for
the Guardian Ad Litem’s petitions to retain a valuation expert or
to split the Voting Trust.
Ellen Cotter and Margaret Cotter have advised the Company that
while they oppose any sale of the Voting Stock as being
inconsistent with the intentions of Mr. Cotter, Sr., as set out in
the Trust Document, if there is such a sale, they intend to be the
buyers and to retain control of the Company in the Cotter Family.
They have further advised the Issuer that as the Estate is not yet
closed, it is uncertain that any shares of Voting Stock will be
transferred from the Estate to the Voting Trust in the near
term.
The table below presents the changes in our working capital
position and other relevant information addressing our liquidity as
of and for the nine months ended September 30, 2019 and the
preceding four years:
As of and for the 9-Months
Ended
Year Ended December 31
($ in thousands)
September 30, 2019
2018
2017
2016
2015 (2)
Total Resources (cash and
borrowings)
Cash and cash equivalents
(unrestricted)
$
8,708
$
13,127
$
13,668
$
19,017
$
19,702
Unused borrowing facility
84,149
85,886
137,231
117,599
70,134
Restricted for capital projects (1)
17,650
30,318
62,280
62,024
10,263
Unrestricted capacity
66,499
55,568
74,951
55,575
59,871
Total resources at period end
92,857
99,013
150,899
136,616
89,836
Total unrestricted resources at period
end
75,207
68,695
88,619
74,592
79,573
Debt-to-Equity Ratio
Total contractual facility
$
279,215
$
252,929
$
271,732
$
266,134
$
207,075
Total debt (gross of deferred financing
costs)
195,311
167,043
134,501
148,535
130,941
Current
34,374
30,393
8,109
567
15,000
Non-current
160,692
136,650
126,392
147,968
115,941
Finance lease liabilities
245
—
—
—
—
Total book equity
163,713
180,547
181,618
146,890
138,951
Debt-to-equity ratio
1.19
0.93
0.74
1.01
0.94
Changes in Working Capital
Working capital (deficit) (3)
$
(76,065)
$
(55,270)
$
(46,971)
$
6,655
$
(35,581)
Current ratio
0.25
0.35
0.42
1.10
0.51
Capital Expenditures (including
acquisitions)
$
34,585
$
56,827
$
76,708
$
49,166
$
53,119
(1) This relates to the construction facilities specifically
negotiated for: (i) 44 Union Square redevelopment project, obtained
in December 2016, and (ii) New Zealand construction projects,
obtained in May 2015. The New Zealand construction loan expired
December 31, 2018. (2) Certain 2015 balances included the
restatement impact as a result of a change in accounting principle
(see Note 2 – Summary of Significant Accounting Policies –
Accounting Changes). Certain 2017 and 2016 balances included the
restatement impact as a result of a prior period financial
statement correction of immaterial errors (see Note 2 – Summary of
Significant Accounting Policies – Prior Period Financial Statement
Correction of Immaterial Errors). (3) Typically our working capital
(deficit) is negative as we receive revenue from our cinema
business ahead of the time that we have to pay our associated
liabilities. We use the money we receive to pay down our borrowings
in the first instance.
Below is a summary of the available credit facilities as of
September 30, 2019:
As of September 30,
2019
(Dollars in thousands)
Available Contractual
Capacity
Capacity Used
Unused Capacity
Restricted for Capital
Projects
Unrestricted Capacity
Bank of America Credit Facility (USA)
$
55,000
$
27,000
$
28,000
$
—
$
28,000
Bank of America Line of Credit (USA)
5,000
5,000
—
—
—
Union Square Construction Financing
(USA)
50,000
32,350
17,650
17,650
—
NAB Corporate Term Loan (AU) (1)
80,952
54,977
25,975
—
25,975
Westpac Bank Corporate (NZ) (1)
20,038
7,514
12,524
—
12,524
Total
$
210,990
$
126,841
$
84,149
$
17,650
$
66,499
(1) The borrowings are denominated in foreign currency. The
contractual capacity and capacity used were translated into U.S.
dollars based on the applicable exchange rates as of September 30,
2019.
The $17.7 million representing borrowings restricted for capital
projects is wholly composed of the $17.7 million of unused capacity
for our 44 Union Square development and construction.
Our overall global operating strategy is to conduct business
mostly on a self-funding basis by country (except for funds used to
pay an appropriate share of our U.S. corporate overhead). However,
we may, from time to time, move funds between jurisdictions where
circumstances merit such action as part of our goal to minimize our
cost of capital.
Non-GAAP Financial Measures
This earnings release presents aggregate segment operating
income, and EBITDA, which are important financial measures for the
Company, but are not financial measures defined by U.S. GAAP.
These measures should be reviewed in conjunction with the
relevant U.S. GAAP financial measures and are not presented as
alternative measures of EPS, cash flows or net income as determined
in accordance with U.S. GAAP. Aggregate segment operating income
and EBITDA, as we have calculated them, may not be comparable to
similarly titled measures reported by other companies.
Aggregate segment operating income – We evaluate the
performance of our business segments based on segment operating
income, and management uses aggregate segment operating income as a
measure of the performance of operating businesses separate from
non-operating factors. We believe that information about aggregate
segment operating income assists investors by allowing them to
evaluate changes in the operating results of the Company’s business
separate from non-operational factors that affect net income, thus
providing separate insight into both operations and the other
factors that affect reported results. Refer to “Consolidated and
Non-Segment Results” for a reconciliation of segment operating
income to net income.
EBITDA – We use EBITDA in the evaluation of our Company’s
performance since we believe that EBITDA provides a useful measure
of financial performance and value. We believe this principally for
the following reasons:
We believe that EBITDA is an accepted industry-wide comparative
measure of financial performance. It is, in our experience, a
measure commonly adopted by analysts and financial commentators who
report upon the cinema exhibition and real estate industries, and
it is also a measure used by financial institutions in underwriting
the creditworthiness of companies in these industries. Accordingly,
our management monitors this calculation as a method of judging our
performance against our peers, market expectations and our
creditworthiness. It is widely accepted that analysts, financial
commentators and persons active in the cinema exhibition and real
estate industries typically value enterprises engaged in these
businesses at various multiples of EBITDA. Accordingly, we find
EBITDA valuable as an indicator of the underlying value of our
businesses. We expect that investors may use EBITDA to judge our
ability to generate cash, as a basis of comparison to other
companies engaged in the cinema exhibition and real estate
businesses and as a basis to value our company against such other
companies.
EBITDA is not a measurement of financial performance under
generally accepted accounting principles in the United States of
America and it should not be considered in isolation or construed
as a substitute for net income or other operations data or cash
flow data prepared in accordance with generally accepted accounting
principles in the United States for purposes of analyzing our
profitability. The exclusion of various components, such as
interest, taxes, depreciation and amortization, limits the
usefulness of these measures when assessing our financial
performance, as not all funds depicted by EBITDA are available for
management’s discretionary use. For example, a substantial portion
of such funds may be subject to contractual restrictions and
functional requirements to service debt, to fund necessary capital
expenditures and to meet other commitments from time to time.
EBIT and EBITDA also fail to take into account the cost of
interest and taxes. Interest is clearly a real cost that for us is
paid periodically as accrued. Taxes may or may not be a current
cash item but are nevertheless real costs that, in most situations,
must eventually be paid. A company that realizes taxable earnings
in high tax jurisdictions may, ultimately, be less valuable than a
company that realizes the same amount of taxable earnings in a low
tax jurisdiction. EBITDA fails to take into account the cost of
depreciation and amortization and the fact that assets will
eventually wear out and have to be replaced.
Adjusted EBITDA – using the principles we consistently
apply to determine our EBIDTA, we further adjusted the EBIDTA for
certain items we believe to be external to our business and not
reflective of our costs of doing business or results of operation.
Specifically, we have adjusted for (i) gains on insurance
recoveries, (ii) legal expenses relating to extraordinary
litigation, (iii) adjustments for gains/losses relating to property
sales, and (iv) any other items that can be considered
non-recurring in accordance with the 2-year SEC requirement for
determining an item is non-recurring, infrequent or unusual in
nature.
Reconciliation of EBITDA to net income is presented below:
Quarter Ended
Nine Months Ended
September 30,
September 30,
(Dollars in thousands)
2019
2018
2019
2018
Net Income/(loss)
$
902
$
1,297
$
1,215
$
9,405
Add: Interest expense, net
1,871
1,748
5,924
5,132
Add: Income tax expense
547
1,482
1,159
4,618
Add: Depreciation and amortization
5,704
5,829
16,870
16,705
EBITDA
$
9,024
$
10,356
$
25,168
$
35,860
Adjustments for:
Legal expenses relating to the derivative
litigation, the Cotter employment arbitration and other Cotter
litigation matters
184
505
782
3,146
Adjusted EBITDA
$
9,208
$
10,861
$
25,950
$
39,006
Conference Call and Webcast
We plan to post our pre-recorded conference call and audio
webcast on our corporate website on November 14, 2019, that will
feature prepared remarks from Ellen Cotter, Chief Executive
Officer; Gilbert Avanes, Chief Financial Officer; and Andrzej
Matyczynski, Executive Vice President - Global Operations.
A pre-recorded question and answer session will follow our
formal remarks. Questions and topics for consideration should be
submitted to InvestorRelations@readingrdi.com by November 13,
2019, 5:00 p.m. Eastern Standard Time. The audio webcast can be
accessed by visiting http://www.readingrdi.com/about/#earnings-call.
About Reading International,
Inc.
Reading International, Inc. (NASDAQ: RDI) is a leading
entertainment and real estate company, engaging in the development,
ownership and operation of multiplex cinemas and retail and
commercial real estate in the United States, Australia, and New
Zealand.
The family of Reading brands includes cinema brands: Reading
Cinemas, Angelika Film Centers, Consolidated Theatres, and City
Cinemas; live theatres operated by Liberty Theatres in the United
States; and signature property developments, including Newmarket
Village, Auburn Redyard, and Cannon Park in Australia, Courtenay
Central in New Zealand and 44 Union Square in New York City.
Additional information about Reading can be obtained from the
Company's website: http://www.readingrdi.com.
Forward-Looking
Statements
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 and outside the home
environment;
- the extent to which we encounter competition from other cinema
exhibitors, from other sources of outside-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 and
Blu-ray/DVD rentals and sales, and so called “movies on
demand”;
- the impact of certain competitors’ subscription or advance pay
programs;
- the cost and impact of improvements to our cinemas, such as
improved seating, enhanced food and beverage offerings and other
improvements;
- disruptions during theater improvements;
- the extent to and the efficiency with which we are able to
integrate acquisitions of cinema circuits with our existing
operations; and
- certain of our activities are in geologically active areas,
creating a risk of damage and/or disruption of real estate and/or
cinema businesses from earthquakes.
- 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 ability to negotiate and execute lease agreements with
material tenants;
- the extent to which we can obtain on a timely basis the various
land use approvals and entitlements needed to develop our
properties;
- the risks and uncertainties associated with real estate
development;
- the availability and cost of labor and materials;
- the ability to obtain all permits to construct
improvements;
- the ability to finance improvements;
- the disruptions from construction;
- the possibility of construction delays, work stoppage and
material shortage;
- competition for development sites and tenants;
- environmental remediation issues;
- the extent to which our cinemas can continue to serve as an
anchor tenant that will, in turn, be influenced by the same factors
as will influence generally the results of our cinema
operations;
- the increased depreciation and amortization expense as
construction projects transition to leased real property;
- the ability to negotiate and execute joint venture
opportunities and relationships; and
- certain of our activities are in geologically active areas,
creating a risk of damage and/or disruption of real estate and/or
cinema businesses from earthquakes.
- 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 ability to renew, extend or renegotiate our loans that
mature in 2020;
- our ability to grow our Company and provide value to our
stockholders;
- 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;
- expenses, management and Board distraction and other effects of
the litigation efforts mounted by James Cotter, Jr. against the
Company, including his efforts to cause a sale of voting control of
the Company;
- 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 minimum wages, shift
scheduling, the use of consultants, 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, and class
actions and private attorney general wage and hour based
claims;
- our exposure to cyber-security risks, including
misappropriation of customer information or other breaches of
information security;
- 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,
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.
In addition to the forward-looking factors set forth above, we
encourage you to review Item 1A. “Risk Factors,” from our Company’s
Annual Report on SEC Form 10-K for the Year Ended December 31,
2018, as well as the risk factors set forth in any other filings
made under the Securities Act of 1934, as amended, including any of
our Quarterly Report of Form 10-Q.
Finally, 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.
Reading International, Inc. and
Subsidiaries
Unaudited Consolidated Statements of
Operations
(Unaudited; U.S. dollars in thousands,
except per share data)
Quarter Ended
Nine Months Ended
September 30,
September 30,
2019
2018
2019
2018
Revenue
Cinema
$
66,733
$
70,671
$
197,101
$
223,109
Real estate
3,723
3,590
11,001
11,286
Total revenue
70,456
74,261
208,102
234,395
Costs and expenses
Cinema
(53,709
)
(54,929
)
(158,273
)
(170,183
)
Real estate
(2,225
)
(2,475
)
(7,108
)
(7,408
)
Depreciation and amortization
(5,704
)
(5,829
)
(16,870
)
(16,705
)
General and administrative
(5,908
)
(6,489
)
(18,426
)
(21,250
)
Total costs and expenses
(67,546
)
(69,722
)
(200,677
)
(215,546
)
Operating income
2,910
4,539
7,425
18,849
Interest expense, net
(1,871
)
(1,748
)
(5,924
)
(5,132
)
Gain (loss) on sale of assets
(1
)
—
(1
)
—
Other income (expense)
141
(130
)
190
(273
)
Income (loss) before income tax expense
and equity earnings of unconsolidated joint ventures
1,179
2,661
1,690
13,444
Equity earnings of unconsolidated joint
ventures
220
80
581
667
Income (loss) before income
taxes
1,399
2,741
2,271
14,111
Income tax benefit (expense)
(547
)
(1,482
)
(1,159
)
(4,618
)
Net income (loss)
$
852
$
1,259
$
1,112
$
9,493
Less: net income (loss) attributable to
noncontrolling interests
(50
)
(38
)
(103
)
88
Net income (loss) attributable to
Reading International, Inc. common shareholders
$
902
$
1,297
$
1,215
$
9,405
Basic earnings (loss) per share
attributable to Reading International, Inc. shareholders
$
0.04
$
0.06
$
0.05
$
0.41
Diluted earnings (loss) per share
attributable to Reading International, Inc. shareholders
$
0.04
$
0.06
$
0.05
$
0.41
Weighted average number of shares
outstanding–basic
22,546,827
23,006,040
22,791,530
22,988,227
Weighted average number of shares
outstanding–diluted
22,688,230
23,197,924
22,952,838
23,185,021
Reading International, Inc. and
Subsidiaries
Consolidated Balance Sheets
(U.S. dollars in thousands, except share
information)
September 30,
December 31,
2019
2018
ASSETS
(unaudited)
Current Assets:
Cash and cash equivalents
$
8,708
$
13,127
Receivables
4,363
8,045
Inventory
1,195
1,419
Prepaid and other current assets
10,831
7,667
Total current assets
25,097
30,258
Operating property, net
248,100
257,667
Operating lease right-of-use assets
216,963
—
Investment and development property,
net
107,292
86,804
Investment in unconsolidated joint
ventures
4,721
5,121
Goodwill
19,913
19,445
Intangible assets, net
3,607
7,369
Deferred tax asset, net
25,959
26,235
Other assets
6,164
6,129
Total assets
$
657,816
$
439,028
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current Liabilities:
Accounts payable and accrued
liabilities
$
24,318
$
26,154
Film rent payable
6,430
8,661
Debt - current portion
34,374
30,393
Derivative financial instruments - current
portion
105
41
Taxes payable - current
611
1,710
Deferred current revenue
6,406
9,264
Operating lease liabilities - current
portion
19,579
—
Other current liabilities
9,339
9,305
Total current liabilities
101,162
85,528
Debt - long-term portion
131,681
106,286
Derivative financial instruments -
non-current portion
291
145
Subordinated debt, net
26,255
26,061
Noncurrent tax liabilities
11,647
11,530
Operating lease liabilities - non-current
portion
210,737
—
Other liabilities
12,330
28,931
Total liabilities
494,103
258,481
Commitments and contingencies
Stockholders’ equity:
Class A non-voting common stock, par value
$0.01, 100,000,000 shares authorized,
32,963,489 issued and 20,404,573
outstanding at September 30, 2019 and
33,112,337 issued and 21,194,748
outstanding at December 31, 2018
231
232
Class B voting common stock, par value
$0.01, 20,000,000 shares authorized and
1,680,590 issued and outstanding at
September 30, 2019 and December 31, 2018
17
17
Nonvoting preferred stock, par value
$0.01, 12,000 shares authorized and no issued
or outstanding shares at September 30,
2019 and December 31, 2018
—
—
Additional paid-in capital
148,236
147,452
Retained earnings
48,859
47,616
Treasury shares
(36,541
)
(25,222)
Accumulated other comprehensive income
(1,288
)
6,115
Total Reading International, Inc.
stockholders’ equity
159,514
176,210
Noncontrolling interests
4,199
4,337
Total stockholders’ equity
163,713
180,547
Total liabilities and stockholders’
equity
$
657,816
$
439,028
View source
version on businesswire.com: https://www.businesswire.com/news/home/20191113005183/en/
Gilbert Avanes, Chief Financial Officer Andrzej Matyczynski,
Executive Vice President for Global Operations Reading
International, Inc. (213) 235-2240
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