Earnings Call Webcast to Discuss 2019 First Quarter Financial Results
Scheduled to Post to Corporate Website on Tuesday, May 14, 2019
Reading International, Inc. (NASDAQ: RDI) today announced results for
the first quarter ended March 31, 2019. Our Company reported Basic
Earnings (Loss) per Share (“EPS”) of $(0.09), for the quarter ended
March 31, 2019 compared to an EPS of $0.13 for the same period in the
prior year, which was primarily driven by a weaker film slate in the
first quarter compared to the same period last year. The success of
films such as “Black Panther,” “Jumanji: Welcome to the Jungle,” and
“The Greatest Showman” during the first quarter of 2018 was not
repeated by the films offered in the first quarter of 2019. Cinema
segment revenues for the first three months of 2019 decreased by 20%, or
$14.3 million, to $58.0 million, compared to $72.3 million for the first
three months of 2018. We believe that our cinema results for the quarter
were similarly impacted as those of our competitors.
On the real estate front, our signature U.S. redevelopment project – the
historic Tammany Hall at 44 Union Square in Manhattan nears completion.
While no assurances can be given, we are in lease negotiations with a
credit tenant with respect to approximately 90% of the net rentable area
of the project. The prospective tenant has begun preparation of drawings
for the fit-out of the space and we have reached an agreement in
principle with respect to the key economic points. Drafts of the lease
have been exchanged. We anticipate that the project will be ready for
the commencement of tenant improvement work this quarter.
Ellen Cotter, Chair, President and Chief Executive Officer, said, “We
anticipated that when compared to the first quarter of 2018 the Black
Panther box office would be tough to match. However, the recent
blockbuster success of Avengers: Endgame again re-affirms our
confidence in the cinema industry and we look forward to that box office
momentum continuing through 2019.
“Also, we are pleased with the progress we have made on our 44 Union
Square project – the historic Tammany Hall in New York City and believe
this signature project, when completed, will unlock the long term value
in this one-time theatre property.”
Consolidated revenue for the first quarter of 2019 decreased by 19%, or
$14.3 million, to $61.6 million compared to the first quarter of 2018,
primarily due to a decreased attendance resulting from the weaker film
slate. These results were additionally negatively impacted by a
9.4% decline in the Australian dollar and a 6.3% decline in the New
Zealand dollar for the quarter ended March 31, 2019, compared to the
quarter ended March 31, 2018. Our New Zealand results were also
negatively impacted by the closure, due to seismic concerns, of our
Courtenay Central cinema in Wellington, which has historically been our
top performer in New Zealand.
The following table summarizes the first quarter results for 2019 and
2018:
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
March 31,
|
|
|
|
% Change Favorable/
|
(Dollars in millions, except EPS)
|
|
|
|
2019
|
|
|
|
2018
|
|
|
|
(Unfavorable)
|
Revenue
|
|
|
|
$
|
|
|
61.6
|
|
|
|
|
$
|
|
|
75.9
|
|
|
|
|
(19
|
)
|
%
|
- US
|
|
|
|
|
|
|
33.1
|
|
|
|
|
|
|
|
38.7
|
|
|
|
|
(14
|
)
|
%
|
- Australia
|
|
|
|
|
|
|
23.8
|
|
|
|
|
|
|
|
29.1
|
|
|
|
|
(18
|
)
|
%
|
- New Zealand
|
|
|
|
|
|
|
4.7
|
|
|
|
|
|
|
|
8.1
|
|
|
|
|
(42
|
)
|
%
|
Operating expense
|
|
|
|
$
|
|
|
(62.9
|
)
|
|
|
|
$
|
|
|
(70.2
|
)
|
|
|
|
(10
|
)
|
%
|
Segment operating income (1)
|
|
|
|
$
|
|
|
3.8
|
|
|
|
|
$
|
|
|
12.0
|
|
|
|
|
(68
|
)
|
%
|
Net income/(loss) (2)
|
|
|
|
$
|
|
|
(2.1
|
)
|
|
|
|
$
|
|
|
3.1
|
|
|
|
|
(168
|
)
|
%
|
EBITDA (1)
|
|
|
|
$
|
|
|
4.3
|
|
|
|
|
$
|
|
|
11.1
|
|
|
|
|
(61
|
)
|
%
|
Adjusted EBITDA (1)
|
|
|
|
$
|
|
|
4.8
|
|
|
|
|
$
|
|
|
12.5
|
|
|
|
|
(62
|
)
|
%
|
Basic EPS (2)
|
|
|
|
$
|
|
|
(0.09
|
)
|
|
|
|
$
|
|
|
0.13
|
|
|
|
|
(169
|
)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 March 31, 2019, we had worldwide revenue of
$61.6 million, down $14.3 million from the prior year. Our operating
results were negatively impacted by (i) a weaker film slate worldwide,
(ii) a weaker film slate from the specialty distribution companies in
the U.S., and (iii) the closure of a majority of the net rentable area
of Courtenay Central, including our Reading Cinema at that location,
due to seismic concerns.
-
Capex program: During
the first quarter of 2019, we invested $11.4 million in capital
improvements, including our continued investment in the redevelopment
of Tammany Hall, the upgrading of our multiplex cinemas (Harbour Town
in Australia and Mililani in the U.S.) and the lease acquisition of an
existing cinema in Devonport, Tasmania.
-
Cinema Additions and Pipeline:
In early 2019, we purchased a well-established four-screen
cinema in Devonport, Tasmania. This lease acquisition brings our
global cinema count to 60 and our global screen count to 484. In
addition, we currently have signed lease agreements for four new
cinemas in Australia representing an additional 25 screens, which we
anticipate opening between 2019 and 2021.
-
Building new revenue sources:
We continue to focus on the development of our self-ticketing
capabilities. We achieved a first quarter record for U.S. online
revenue, beating the prior year first quarter record by 14%. Online
sales consisted of 25% of our global box office revenue, which is a
first quarter record and represents an 18% increase from the prior
year period. Our continued improvements to our websites and apps in
the U.S. and improved global online sales infrastructure are enabling
us to better serve high sales volume.
Real estate activities:
-
44 Union Square Redevelopment (New York, U.S.)
– Our signature U.S. redevelopment project – the historic Tammany Hall
at 44 Union Square in Manhattan – is nearing completion. While
no assurances can be given, we are in negotiations on a lease with a
credit tenant for approximately 90% of the net rentable area of the
project. We anticipate that our project will be ready for the
commencement of tenant improvement work this quarter.
-
Minetta Lane Theatre (New York, U.S.)
– In April, we negotiated an extension through March 2020 (with an
option to extend 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.
-
Courtenay Central Redesign/Expansion
(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 more than 1.5 million visitors annually),
across the street from the site of Wellington’s newly announced
convention center (estimated to open 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 portions of the existing cinema
and retail structure while we reevaluate the property for
redevelopment as an entertainment themed urban center with a major
food and grocery component. Wellington continues to be rated as one of
the top cities in the world in which to live, and we continue to
believe that Courtenay Central is located in one of the most vibrant
and growing commercial and entertainment precincts of New Zealand.
SEGMENT RESULTS
The following table summarizes the first quarter segment operating
results for 2019 and 2018:
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
March 31,
|
|
|
|
% Change Favorable/
|
(Dollars in thousands)
|
|
|
|
2019
|
|
|
|
2018
|
|
|
|
(Unfavorable)
|
Segment revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cinema
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
|
|
$
|
|
|
32,033
|
|
|
|
|
$
|
|
|
37,987
|
|
|
|
|
(16
|
)
|
%
|
Australia
|
|
|
|
|
|
|
21,441
|
|
|
|
|
|
|
|
26,717
|
|
|
|
|
(20
|
)
|
%
|
New Zealand
|
|
|
|
|
|
|
4,512
|
|
|
|
|
|
|
|
7,551
|
|
|
|
|
(40
|
)
|
%
|
Total
|
|
|
|
$
|
|
|
57,986
|
|
|
|
|
$
|
|
|
72,255
|
|
|
|
|
(20
|
)
|
%
|
Real estate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
|
|
$
|
|
|
988
|
|
|
|
|
$
|
|
|
655
|
|
|
|
|
51
|
|
%
|
Australia
|
|
|
|
|
|
|
3,916
|
|
|
|
|
|
|
|
4,154
|
|
|
|
|
(6
|
)
|
%
|
New Zealand
|
|
|
|
|
|
|
527
|
|
|
|
|
|
|
|
1,199
|
|
|
|
|
(56
|
)
|
%
|
Total
|
|
|
|
$
|
|
|
5,431
|
|
|
|
|
$
|
|
|
6,008
|
|
|
|
|
(10
|
)
|
%
|
Inter-segment elimination
|
|
|
|
|
|
|
(1,866
|
)
|
|
|
|
|
|
|
(2,391
|
)
|
|
|
|
22
|
|
%
|
Total segment revenue
|
|
|
|
$
|
|
|
61,551
|
|
|
|
|
$
|
|
|
75,872
|
|
|
|
|
(19
|
)
|
%
|
Segment operating income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cinema
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
|
|
$
|
|
|
(765
|
)
|
|
|
|
$
|
|
|
3,000
|
|
|
|
|
(125
|
)
|
%
|
Australia
|
|
|
|
|
|
|
3,102
|
|
|
|
|
|
|
|
5,916
|
|
|
|
|
(48
|
)
|
%
|
New Zealand
|
|
|
|
|
|
|
305
|
|
|
|
|
|
|
|
1,369
|
|
|
|
|
(78
|
)
|
%
|
Total
|
|
|
|
$
|
|
|
2,643
|
|
|
|
|
$
|
|
|
10,285
|
|
|
|
|
(74
|
)
|
%
|
Real estate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
|
|
$
|
|
|
27
|
|
|
|
|
$
|
|
|
(293
|
)
|
|
|
|
109
|
|
%
|
Australia
|
|
|
|
|
|
|
1,305
|
|
|
|
|
|
|
|
1,515
|
|
|
|
|
(14
|
)
|
%
|
New Zealand
|
|
|
|
|
|
|
(174
|
)
|
|
|
|
|
|
|
459
|
|
|
|
|
(138
|
)
|
%
|
Total
|
|
|
|
$
|
|
|
1,158
|
|
|
|
|
$
|
|
|
1,681
|
|
|
|
|
(31
|
)
|
%
|
Total segment operating income (1)
|
|
|
|
$
|
|
|
3,801
|
|
|
|
|
$
|
|
|
11,966
|
|
|
|
|
(68
|
)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
“nm” – not meaningful for further analysis
|
(1)
|
|
|
Aggregate segment operating income is a non-GAAP financial
measure. See the discussion of non-GAAP financial measures that
follows.
|
|
|
|
|
Consolidated and Non-Segment Results:
1st
Quarter Net Results
Compared to the quarter ended March 31, 2018, cinema segment operating
income decreased by 74%, or $7.6 million, to $2.6 million for the
quarter ended March 31, 2019, primarily driven by a decrease in
operating income in U.S., Australia, and New Zealand. The decrease was
due to a decrease in cinema attendance worldwide (principally due to a
weaker film slate), and fluctuations in average ticket price (“ATP”) and
spend per patron (“SPP”) as outlined below:
-
Revenue in the U.S. decreased by 16%, or $6.0 million, to
$32.0 million, due to a 22% decrease in attendance, offset partially
by a 12% increase in SPP and a 4% increase in ATP.
-
Australia’s cinema revenue decreased by 20%, or $5.3 million, to $21.4
million primarily due to a 15% decrease in attendance, a 4% decrease
in ATP, and a decrease of 9% in SPP.
-
New Zealand’s cinema revenue decreased by 40%, or $3.0 million versus
the same period in 2018. Attendance decreased by 40%, while ATP and
SPP percentages remained relatively flat compared to the same period
in the prior year. Not only did the weaker film slate from the major
studios impact our results, but our New Zealand cinema revenues were
also adversely impacted by the January 2019 closure of our Courtenay
Central cinema in Wellington due to seismic concerns.
The top three grossing films for the first quarter of 2019 were “Captain
Marvel,” “Aquaman,” and “How to Train Your Dragon: The
Hidden World,” representing approximately 29% of Reading’s worldwide
admission revenues for the quarter. The top three grossing films in the
first quarter of 2018 for Reading’s worldwide cinema circuits were “Black
Panther,” “Jumanji: Welcome to the Jungle,” and “The
Greatest Showman,” which represented approximately 32% of Reading’s
worldwide admission revenues for the quarter.
Real Estate
Segment Operating Income and Revenues:
Real estate segment operating income decreased by 31%, or $0.5 million,
to $1.2 million for the quarter ended March 31, 2019 compared to
March 31, 2018. For the quarter ended March 31, 2019, the real estate
segment revenue decreased by 10%, or $0.6 million, to $5.4 million,
compared to the same period in 2018. This was primarily attributable to
the closure due to seismic concerns of a majority of the net rentable
area of our Courtenay Central ETC during the first quarter of 2019,
compared to same period in 2018, which had a full quarter of operations,
offset by an increase in revenue at our Live Theatres.
CONSOLIDATED AND NON-SEGMENT RESULTS
The first quarter consolidated and non-segment results for 2019 and 2018
are summarized as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
% Change Favorable/
|
(Dollars in thousands)
|
|
|
|
|
|
2019
|
|
|
|
|
|
2018
|
|
|
|
|
|
(Unfavorable)
|
Segment operating income
|
|
|
|
|
|
$
|
3,801
|
|
|
|
|
|
|
$
|
11,966
|
|
|
|
|
|
|
(68
|
)
|
%
|
Non-segment income and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative expense
|
|
|
|
|
|
|
(5,041
|
)
|
|
|
|
|
|
|
(6,156
|
)
|
|
|
|
|
|
18
|
|
%
|
Interest expense, net
|
|
|
|
|
|
|
(1,852
|
)
|
|
|
|
|
|
|
(1,594
|
)
|
|
|
|
|
|
(16
|
)
|
%
|
Other
|
|
|
|
|
|
|
(47
|
)
|
|
|
|
|
|
|
58
|
|
|
|
|
|
|
181
|
|
%
|
Total non-segment income and expenses
|
|
|
|
|
|
$
|
(6,940
|
)
|
|
|
|
|
|
$
|
(7,692
|
)
|
|
|
|
|
|
10
|
|
%
|
Income before income taxes
|
|
|
|
|
|
|
(3,139
|
)
|
|
|
|
|
|
|
4,274
|
|
|
|
|
|
|
173
|
|
%
|
Income tax benefit (expense)
|
|
|
|
|
|
|
1,042
|
|
|
|
|
|
|
|
(1,170
|
)
|
|
|
|
|
|
189
|
|
%
|
Net income/(loss)
|
|
|
|
|
|
$
|
(2,097
|
)
|
|
|
|
|
|
$
|
3,104
|
|
|
|
|
|
|
(168
|
)
|
%
|
Less: net income (loss) attributable to noncontrolling interests
|
|
|
|
|
|
|
(16
|
)
|
|
|
|
|
|
|
22
|
|
|
|
|
|
|
nm
|
|
|
Net income (loss) attributable to RDI common
stockholders
|
|
|
|
|
|
$
|
(2,081
|
)
|
|
|
|
|
|
$
|
3,082
|
|
|
|
|
|
|
(168
|
)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
“nm” – not meaningful for further analysis
|
|
First Quarter Net Results
Net income attributable to RDI common stockholders was down $5.2 million
to a loss of $(2.1) million for the first quarter March 31, 2019,
compared to the same period prior year. Basic EPS for the quarter ended
March 31, 2019 decreased by $0.22 to a loss per share of $(0.09) from
the prior-year quarter, mainly attributable to a significant decrease in
revenue from both our Cinema and Real Estate business segments.
Non-Segment General & Administrative Expenses
Non-segment general and administrative expense for the quarter ended
March 31, 2019 compared to the same period of the prior year decreased
by 18%, or $1.1 million, to $5.0 million. The quarterly decrease mainly
relates to lower legal expenses for the quarter ending March 31, 2019 of
$1.0 million compared to the same period last year.
Income Tax Expense
Income tax expense for the quarter ended March 31, 2019, decreased 189%,
or $2.2 million, compared to the equivalent prior year period. The
change between 2019 and 2018 is primarily related to the pretax loss in
2019.
OTHER FINANCIAL INFORMATION
Balance Sheet and Liquidity
Total assets increased by $235.5 million, to $674.5 million at March 31,
2019, compared to $439.0 million at December 31, 2018. This was
primarily driven by the implementation of the lease accounting standards
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 (i) the
redevelopment of our Union Square property in New York, and (ii)
improvements at our Mililani and Harbour Town cinemas. These were
partially offset by a reduction in our foreign-operation asset values
due to a decrease in the foreign exchange rates relative to the U.S.
dollar.
Cash and cash equivalents at March 31, 2019 were $12.6 million,
including approximately $8.8 million in the U.S., $3.2 million in
Australia, and $0.7 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
Our Stock Repurchase Program that expired on March 2, 2019, has been
extended by our Board of Directors through March 2, 2021. $16.2 million
remains available under that extended program. This will allow Reading
to repurchase its Class A 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.
On March 14, 2019, our Board of Directors approved the Company’s
three-year Strategic Plan to focus across the U.S., Australia, and New
Zealand on the upgrading of our existing cinemas to add luxury recliner
seating, TITAN branded auditoriums and enhanced F&B options, the
development in appropriate markets of new cinema opportunities, and the
continued development and/or redevelopment of our current real estate
assets.
After considering the approval of the Strategic Plan, our Board
concluded that the interests of our Company and our stockholders would
be best served by the continued pursuit of our Strategic Plan as an
independent company and that it had no interest in considering any sale
process at this time. Accordingly, we have advised Patton Vision that
our Board does not have any present interest in engaging in discussions
regarding their unsolicited indication of interest in the sale of our
Company. Our controlling stockholders are in agreement with this
approach.
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, but nevertheless likely
to be given weight by the court below, 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.”
Ms. Margaret Cotter has advised the Board that she does not intend to
sell the controlling interest in our Company at this time, and that it
is her current intention that the Voting Trust hold such controlling
interest as provided in the Trust Document “as long as possible.”
We are informed that the Court of Appeal’s Order becomes final 30 days
after issuance.
The table below presents the changes in our working capital position and
other relevant information addressing our liquidity as of and for the
three months ended March 31, 2019 and preceding four years:
|
|
|
|
As of and for the 3-Months Ended
|
|
|
|
Year Ended December 31
|
($ in thousands)
|
|
|
|
3/31/2019
|
|
|
|
2018
|
|
|
|
2017
|
|
|
|
2016
|
|
|
|
2015( (2))
|
Total Resources (cash and borrowings)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents (unrestricted)
|
|
|
|
$
|
12,648
|
|
|
|
|
$
|
13,127
|
|
|
|
|
$
|
13,668
|
|
|
|
|
$
|
19,017
|
|
|
|
$
|
19,702
|
|
Unused borrowing facility
|
|
|
|
|
107,111
|
|
|
|
|
|
85,886
|
|
|
|
|
|
137,231
|
|
|
|
|
|
117,599
|
|
|
|
|
70,134
|
|
Restricted for capital projects (1)
|
|
|
|
|
23,566
|
|
|
|
|
|
30,318
|
|
|
|
|
|
62,280
|
|
|
|
|
|
62,024
|
|
|
|
|
10,263
|
|
Unrestricted capacity
|
|
|
|
|
83,545
|
|
|
|
|
|
55,568
|
|
|
|
|
|
74,951
|
|
|
|
|
|
55,575
|
|
|
|
|
59,871
|
|
Total resources at period end
|
|
|
|
|
119,759
|
|
|
|
|
|
99,013
|
|
|
|
|
|
150,899
|
|
|
|
|
|
136,616
|
|
|
|
|
89,836
|
|
Total unrestricted resources at period end
|
|
|
|
|
96,193
|
|
|
|
|
|
68,695
|
|
|
|
|
|
88,619
|
|
|
|
|
|
74,592
|
|
|
|
|
79,573
|
|
Debt-to-Equity Ratio
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total contractual facility
|
|
|
|
$
|
290,879
|
|
|
|
|
$
|
252,929
|
|
|
|
|
$
|
271,732
|
|
|
|
|
$
|
266,134
|
|
|
|
$
|
207,075
|
|
Total debt (gross of deferred financing costs)
|
|
|
|
|
184,099
|
|
|
|
|
|
167,043
|
|
|
|
|
|
134,501
|
|
|
|
|
|
148,535
|
|
|
|
|
130,941
|
|
Current
|
|
|
|
|
40,077
|
|
|
|
|
|
30,393
|
|
|
|
|
|
8,109
|
|
|
|
|
|
567
|
|
|
|
|
15,000
|
|
Non-current
|
|
|
|
|
143,691
|
|
|
|
|
|
136,650
|
|
|
|
|
|
126,392
|
|
|
|
|
|
147,968
|
|
|
|
|
115,941
|
|
Finance lease liabilities
|
|
|
|
|
331
|
|
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
—
|
|
Total book equity(2)
|
|
|
|
|
179,946
|
|
|
|
|
|
180,547
|
|
|
|
|
|
181,618
|
|
|
|
|
|
146,890
|
|
|
|
|
138,951
|
|
Debt-to-equity ratio
|
|
|
|
|
1.02
|
|
|
|
|
|
0.93
|
|
|
|
|
|
0.74
|
|
|
|
|
|
1.01
|
|
|
|
|
0.94
|
|
Changes in Working Capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Working capital (deficit) (3)
|
|
|
|
$
|
(77,236
|
)
|
|
|
|
$
|
(55,270
|
)
|
|
|
|
$
|
(46,971
|
)
|
|
|
|
$
|
6,655
|
|
|
|
$
|
(35,581
|
)
|
Current ratio
|
|
|
|
|
0.28
|
|
|
|
|
|
0.35
|
|
|
|
|
|
0.42
|
|
|
|
|
|
1.10
|
|
|
|
|
0.51
|
|
Capital Expenditures (including acquisitions)
|
|
|
|
$
|
11,476
|
|
|
|
|
$
|
56,827
|
|
|
|
|
$
|
76,708
|
|
|
|
|
$
|
49,166
|
|
|
|
$
|
53,119
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
|
This relates to the construction facilities specifically negotiated
for: (i) 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 March 31,
2019:
|
|
|
|
|
|
|
|
|
As of March 31, 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
|
|
|
|
$
|
30,000
|
|
|
|
$
|
25,000
|
|
|
|
$
|
—
|
|
|
|
$
|
25,000
|
Bank of America Line of Credit (USA)
|
|
|
|
|
5,000
|
|
|
|
|
3,500
|
|
|
|
|
1,500
|
|
|
|
|
—
|
|
|
|
|
1,500
|
Union Square Construction Financing (USA)
|
|
|
|
|
57,500
|
|
|
|
|
33,934
|
|
|
|
|
23,566
|
|
|
|
|
23,566
|
|
|
|
|
—
|
NAB Corporate Term Loan (AU) (1)
|
|
|
|
|
85,248
|
|
|
|
|
40,138
|
|
|
|
|
45,110
|
|
|
|
|
—
|
|
|
|
|
45,110
|
Westpac Bank Corporate (NZ) (1)
|
|
|
|
|
21,824
|
|
|
|
|
9,889
|
|
|
|
|
11,935
|
|
|
|
|
—
|
|
|
|
|
11,935
|
Total
|
|
|
|
$
|
224,572
|
|
|
|
$
|
117,461
|
|
|
|
$
|
107,111
|
|
|
|
$
|
23,566
|
|
|
|
$
|
83,545
|
|
|
|
|
|
(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 March 31,
2019.
|
|
|
|
|
|
|
|
|
|
The $23.6 million representing borrowings restricted for capital
projects is wholly composed of the $23.6 million of unused capacity for
the 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.
Trust Preferred Securities – On October 11, 2018, Reading secured a
waiver that provides significant additional financial flexibility
through the elimination of financial covenants with respect to our Trust
Preferred Securities through the end of the term loan in consideration
of payments totaling $1.6 million, consisting of an initial payment of
$1.1 million paid on October 31, 2018, and a contractual obligation to
pay $270,000 in October 2021 and $225,000 in October 2025.
Minetta/Orpheum Loan – On October 12, 2018, the Minetta and Orpheum
Theatres loan of $7.5 million was increased to $8.0 million and the
maturity extended to November 1, 2023.
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:
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
|
|
March 31,
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
2019
|
|
|
|
|
|
2018
|
Net Income/(loss)
|
|
|
|
|
|
|
|
|
$
|
(2,081
|
)
|
|
|
|
|
|
$
|
3,082
|
Add: Interest expense, net
|
|
|
|
|
|
|
|
|
|
1,852
|
|
|
|
|
|
|
|
1,594
|
Add: Income tax expense
|
|
|
|
|
|
|
|
|
|
(1,042
|
)
|
|
|
|
|
|
|
1,170
|
Add: Depreciation and amortization
|
|
|
|
|
|
|
|
|
|
5,594
|
|
|
|
|
|
|
|
5,250
|
EBITDA
|
|
|
|
|
|
|
|
|
$
|
4,323
|
|
|
|
|
|
|
$
|
11,096
|
Adjustments for:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Legal expenses relating to the derivative ligation, the Cotter
employment arbitration and other Cotter litigation matters
|
|
|
|
|
|
|
|
|
|
427
|
|
|
|
|
|
|
|
1,448
|
Adjusted EBITDA
|
|
|
|
|
|
|
|
|
$
|
4,750
|
|
|
|
|
|
|
$
|
12,544
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Conference Call and Webcast
We plan to post our pre-recorded conference call and audio webcast on
our corporate website on May 14, 2019, that will feature prepared
remarks from Ellen Cotter, Chief Executive Officer; Gilbert Avanes,
Interim 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
on May 13, 2019 by 5:00p.m. Eastern Daylight 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 Red
Yard 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 cost and impact of improvements to our cinemas, such as
improve seating, enhanced food and beverage offerings and other
improvements;
-
disruptions during theater improvements; and
-
the extent to and the efficiency with which we are able to
integrate acquisitions of cinema circuits with our existing
operations.
-
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 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 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 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;
-
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.
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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
|
|
|
|
2019
|
|
|
|
|
|
2018 (1)
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cinema
|
|
|
|
|
|
|
|
|
$
|
57,986
|
|
|
|
|
|
|
$
|
72,255
|
|
Real estate
|
|
|
|
|
|
|
|
|
|
3,565
|
|
|
|
|
|
|
|
3,617
|
|
Total revenue
|
|
|
|
|
|
|
|
|
|
61,551
|
|
|
|
|
|
|
|
75,872
|
|
Costs and expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cinema
|
|
|
|
|
|
|
|
|
|
(48,329
|
)
|
|
|
|
|
|
|
(54,948
|
)
|
Real estate
|
|
|
|
|
|
|
|
|
|
(2,445
|
)
|
|
|
|
|
|
|
(2,384
|
)
|
Depreciation and amortization
|
|
|
|
|
|
|
|
|
|
(5,594
|
)
|
|
|
|
|
|
|
(5,250
|
)
|
General and administrative
|
|
|
|
|
|
|
|
|
|
(6,484
|
)
|
|
|
|
|
|
|
(7,597
|
)
|
Total costs and expenses
|
|
|
|
|
|
|
|
|
|
(62,852
|
)
|
|
|
|
|
|
|
(70,179
|
)
|
Operating income
|
|
|
|
|
|
|
|
|
|
(1,301
|
)
|
|
|
|
|
|
|
5,693
|
|
Interest expense, net
|
|
|
|
|
|
|
|
|
|
(1,852
|
)
|
|
|
|
|
|
|
(1,594
|
)
|
Other income (expense)
|
|
|
|
|
|
|
|
|
|
(20
|
)
|
|
|
|
|
|
|
(82
|
)
|
Income (loss) before income tax expense and equity earnings of
unconsolidated joint ventures
|
|
|
|
|
|
|
|
|
|
(3,173
|
)
|
|
|
|
|
|
|
4,017
|
|
Equity earnings of unconsolidated joint ventures
|
|
|
|
|
|
|
|
|
|
34
|
|
|
|
|
|
|
|
257
|
|
Income (loss) before income taxes
|
|
|
|
|
|
|
|
|
|
(3,139
|
)
|
|
|
|
|
|
|
4,274
|
|
Income tax benefit (expense)
|
|
|
|
|
|
|
|
|
|
1,042
|
|
|
|
|
|
|
|
(1,170
|
)
|
Net income (loss)
|
|
|
|
|
|
|
|
|
$
|
(2,097
|
)
|
|
|
|
|
|
$
|
3,104
|
|
Less: net income attributable to noncontrolling interests
|
|
|
|
|
|
|
|
|
|
(16
|
)
|
|
|
|
|
|
|
22
|
|
Net income (loss) attributable to Reading International, Inc.
common shareholders
|
|
|
|
|
|
|
|
|
$
|
(2,081
|
)
|
|
|
|
|
|
$
|
3,082
|
|
Basic earnings (loss) per share attributable to Reading
International, Inc. shareholders
|
|
|
|
|
|
|
|
|
$
|
(0.09
|
)
|
|
|
|
|
|
$
|
0.13
|
|
Diluted earnings (loss) per share attributable to Reading
International, Inc. shareholders
|
|
|
|
|
|
|
|
|
$
|
(0.09
|
)
|
|
|
|
|
|
$
|
0.13
|
|
Weighted average number of shares outstanding–basic
|
|
|
|
|
|
|
|
|
|
22,920,486
|
|
|
|
|
|
|
|
22,967,237
|
|
Weighted average number of shares outstanding–diluted
|
|
|
|
|
|
|
|
|
|
23,124,106
|
|
|
|
|
|
|
|
23,132,989
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
|
Certain prior period amounts have been reclassified to conform
to the current period presentation.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reading International, Inc. and Subsidiaries
Consolidated Balance Sheets
(Unaudited; U.S. dollars in thousands, except share information)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
December 31,
|
|
|
|
|
|
|
|
|
|
2019
|
|
|
|
|
|
2018
|
ASSETS
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
Current Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
|
|
|
|
|
$
|
12,648
|
|
|
|
|
|
|
$
|
13,127
|
|
Receivables
|
|
|
|
|
|
|
|
|
|
7,094
|
|
|
|
|
|
|
|
8,045
|
|
Inventory
|
|
|
|
|
|
|
|
|
|
1,165
|
|
|
|
|
|
|
|
1,419
|
|
Prepaid and other current assets
|
|
|
|
|
|
|
|
|
|
9,642
|
|
|
|
|
|
|
|
7,667
|
|
Total current assets
|
|
|
|
|
|
|
|
|
|
30,549
|
|
|
|
|
|
|
|
30,258
|
|
Operating property, net
|
|
|
|
|
|
|
|
|
|
257,402
|
|
|
|
|
|
|
|
257,667
|
|
Operating lease right-of-use assets
|
|
|
|
|
|
|
|
|
|
229,266
|
|
|
|
|
|
|
|
—
|
|
Investment and development property, net
|
|
|
|
|
|
|
|
|
|
95,156
|
|
|
|
|
|
|
|
86,804
|
|
Investment in unconsolidated joint ventures
|
|
|
|
|
|
|
|
|
|
4,958
|
|
|
|
|
|
|
|
5,121
|
|
Goodwill
|
|
|
|
|
|
|
|
|
|
20,836
|
|
|
|
|
|
|
|
19,445
|
|
Intangible assets, net
|
|
|
|
|
|
|
|
|
|
3,694
|
|
|
|
|
|
|
|
7,369
|
|
Deferred tax asset, net
|
|
|
|
|
|
|
|
|
|
26,483
|
|
|
|
|
|
|
|
26,235
|
|
Other assets
|
|
|
|
|
|
|
|
|
|
6,199
|
|
|
|
|
|
|
|
6,129
|
|
Total assets
|
|
|
|
|
|
|
|
|
$
|
674,543
|
|
|
|
|
|
|
$
|
439,028
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities
|
|
|
|
|
|
|
|
|
$
|
23,492
|
|
|
|
|
|
|
$
|
26,154
|
|
Film rent payable
|
|
|
|
|
|
|
|
|
|
6,559
|
|
|
|
|
|
|
|
8,661
|
|
Debt - current portion
|
|
|
|
|
|
|
|
|
|
40,077
|
|
|
|
|
|
|
|
30,393
|
|
Derivative financial instruments - current portion
|
|
|
|
|
|
|
|
|
|
52
|
|
|
|
|
|
|
|
41
|
|
Taxes payable - current
|
|
|
|
|
|
|
|
|
|
571
|
|
|
|
|
|
|
|
1,710
|
|
Deferred current revenue
|
|
|
|
|
|
|
|
|
|
7,712
|
|
|
|
|
|
|
|
9,264
|
|
Operating lease liabilities - current portion
|
|
|
|
|
|
|
|
|
|
19,797
|
|
|
|
|
|
|
|
—
|
|
Other current liabilities
|
|
|
|
|
|
|
|
|
|
9,525
|
|
|
|
|
|
|
|
9,305
|
|
Total current liabilities
|
|
|
|
|
|
|
|
|
|
107,785
|
|
|
|
|
|
|
|
85,528
|
|
Debt - long-term portion
|
|
|
|
|
|
|
|
|
|
113,816
|
|
|
|
|
|
|
|
106,286
|
|
Derivative financial instruments - non-current portion
|
|
|
|
|
|
|
|
|
|
203
|
|
|
|
|
|
|
|
145
|
|
Subordinated debt, net
|
|
|
|
|
|
|
|
|
|
26,116
|
|
|
|
|
|
|
|
26,061
|
|
Noncurrent tax liabilities
|
|
|
|
|
|
|
|
|
|
11,737
|
|
|
|
|
|
|
|
11,530
|
|
Operating lease liabilities - non-current portion
|
|
|
|
|
|
|
|
|
|
222,594
|
|
|
|
|
|
|
|
—
|
|
Other liabilities
|
|
|
|
|
|
|
|
|
|
12,346
|
|
|
|
|
|
|
|
28,931
|
|
Total liabilities
|
|
|
|
|
|
|
|
|
|
494,597
|
|
|
|
|
|
|
|
258,481
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A non-voting common stock, par value $0.01, 100,000,000
shares authorized, 33,172,823 issued and 21,249,935 outstanding at
March 31, 2019 and 33,112,337 issued and 21,194,748 outstanding at
December 31, 2018
|
|
|
|
|
|
|
|
|
|
233
|
|
|
|
|
|
|
|
232
|
|
Class B voting common stock, par value $0.01, 20,000,000 shares
authorized and 1,680,590 issued and outstanding at March 31, 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 March 31, 2019
and December 31, 2018
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
—
|
|
Additional paid-in capital
|
|
|
|
|
|
|
|
|
|
147,472
|
|
|
|
|
|
|
|
147,452
|
|
Retained earnings
|
|
|
|
|
|
|
|
|
|
45,563
|
|
|
|
|
|
|
|
47,616
|
|
Treasury shares
|
|
|
|
|
|
|
|
|
|
(25,231
|
)
|
|
|
|
|
|
|
(25,222
|
)
|
Accumulated other comprehensive income
|
|
|
|
|
|
|
|
|
|
7,625
|
|
|
|
|
|
|
|
6,115
|
|
Total Reading International, Inc. stockholders’ equity
|
|
|
|
|
|
|
|
|
|
175,679
|
|
|
|
|
|
|
|
176,210
|
|
Noncontrolling interests
|
|
|
|
|
|
|
|
|
|
4,267
|
|
|
|
|
|
|
|
4,337
|
|
Total stockholders’ equity
|
|
|
|
|
|
|
|
|
|
179,946
|
|
|
|
|
|
|
|
180,547
|
|
Total liabilities and stockholders’ equity
|
|
|
|
|
|
|
|
|
$
|
674,543
|
|
|
|
|
|
|
$
|
439,028
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20190510005109/en/
Copyright Business Wire 2019