Reading International Provides COVID-19-Related Business Update
March 26 2020 - 8:00PM
Business Wire
Reading International, Inc. (NASDAQ: RDI), an internationally
diversified cinema and real estate company with operations and
assets in the United States, Australia and New Zealand, today
announced business updates in response to the continued impact of
COVID-19, or coronavirus.
As of March 23, 2020, all of the Company’s cinemas in the United
States, Australia, and New Zealand are temporarily closed in
accordance with the directions and recommendations of the relevant
federal, state and local authorities. With respect to the Company’s
real estate operations in Australia and New Zealand (which include
the following centers: Newmarket Village (Queensland), Auburn
Redyard (New South Wales), Cannon Park (Queensland), The Belmont
Common (Western Australia) and Courtenay Central (New Zealand), the
majority of the tenants operating at each of these centers prior to
the COVID-19 crisis, have temporarily suspended operations at the
direction and recommendation of the local governmental
authorities.
In light of the temporary closures of most of its cinema and
real estate operations, and due to the continued uncertainty in the
market due to COVID-19, the Company took swift action to increase
the Company’s financial flexibility, including renewing and
amending credit facilities and drawing funds under certain of the
credit facilities, thereby increasing cash on hand. In addition,
the Company has implemented actions to further improve liquidity by
reducing non-essential capital expenditures and operating expenses,
as well as other actions.
“While this is a challenging time, I strongly believe in the
long-term opportunities for our cinema and real estate businesses
and remain optimistic that the COVID-19 impacts on our businesses
are temporary,” commented Reading’s President and Chief Executive
Officer, Ellen Cotter.
Ms. Cotter continued: “Reading’s internationally diversified
cinema and real estate portfolio, which includes valuable real
estate in New York City, Australia, and New Zealand, combined with
the proactive actions we have taken and our current cash on hand,
buttresses our confidence that we will be able to navigate the
current crisis. In Reading’s proud history, we have successfully
led our business through various global challenges. Our current
actions are prudent based on what we see happening around the world
and will support our stability, while positioning us for the coming
economic recovery.”
Separately, as has been publicly reported, Ellen Cotter and Vice
Chair and Executive Vice President, Margaret Cotter have incurred,
and continue to incur, significant legal costs and expenses in
litigation relating to matters concerning the estate of their
father, James J. Cotter, Sr., and the Living Trust and Voting Trust
established by their father. To fund these legal costs and
expenses, Ellen Cotter and Margaret Cotter sold some of their
personal Class A shares to meet litigation expense commitments.
After such sales, Ellen Cotter and Margaret Cotter continue to own
substantial Class A shares and Class B shares, and together with
the fiduciary positions they hold, continue to beneficially own in
excess of 70% of the Class B voting shares of the Company.
Ellen Cotter and Margaret Cotter made the following statement:
“The highest expression of our confidence in the future of Reading
is our willingness to devote significant personal assets to support
Reading’s long-term business strategy by protecting the Estate’s
and Trust’s controlling position in Reading through the
litigation.”
About Reading International, Inc.
Reading International Inc. (NASDAQ: RDI) an internationally
diversified cinema and real estate company 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, City
Cinemas, and State Cinema; live theatres operated by Liberty
Theatres in the United States; and signature property developments,
including Newmarket Village, Auburn Redyard, Cannon Park, and The
Belmont Common 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
This press release contains certain statements that are
"forward-looking statements" within the meaning of Section 27A of
the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. Such statements are qualified by the inherent
risks and uncertainties surrounding future expectations generally
and also may materially differ from actual future experience
involving any one or more of such statements. Such risks and
uncertainties include the impact of the currently expanding
outbreak of the COVID-19, or coronavirus; the disruptions or
reductions in the utilization of entertainment, hospitality and
travel venues, as well as in our operations, due to pandemics,
epidemics, widespread health emergencies, or outbreaks of
infectious diseases such as the coronavirus; the potential impacts
of cessation of our operations on covenants under our credit
facilities and other agreements to which we are subject, and these
and other risks and uncertainties set forth from time to time in
Reading's filings with the Securities and Exchange Commission. The
inclusion of a forward-looking statement in this press release
should not be regarded as a representation by Reading that its
objectives will be achieved. Reading undertakes no obligation to
publicly update forward-looking statements, whether as a result of
new information, future events, or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20200326005791/en/
Reading International, Inc. Gilbert Avanes, Executive Vice
President, Chief Financial Officer and Treasurer Andrzej
Matyczynski, Executive Vice President for Global Operations (213)
235-2240
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