Reading International Announces 3rd Quarter 2009 Results

http://www.businesswire.com/news/home/20091105006330/en

* Revenue from operations at $56.1 million, a new second highest ever reported
* Net Income of $3.1 million was $5.2 million higher than the $2.1 million loss
in the 2008 Quarter
* EBITDA(1)of $11.0 million was $3.4 million higher than the $7.7 million in the
2008 Quarter
* Net Worth increased to $113.2 million at September 30, 2009 from $69.4 million
at December 31, 2008

LOS ANGELES--(Business Wire)--
Reading International, Inc. (NASDAQ:RDI) announced today results for its quarter
ended September 30, 2009.

2009 Highlights

* our EBITDA(1) for the 2009 September quarter was $11.0 million compared to
$7.7 million in the 2008 quarter, an increase of 43.7%;
* for the 2009 nine months our EBITDA(1) was $33.0 million compared to $23.9
million in 2008, an increase of 38.2%;
* we continue to see local currency cinema revenue growth in both Australia and
New Zealand, with Australia showing a 9.8% increase and New Zealand a 1.4%
increase over the September quarter in 2008. In Australia, in local currency,
this quarter`s total as well as cinema revenue were again record highs, at
AUS$27.6 million and AUS$24.5 million, respectively;
* we reduced our general and administrative expenses by 4.3% for the quarter and
8.0% for the nine months, compared to prior year;
* our operating income for the quarter was $6.7 million compared to $3.4 million
in 2008, an increase of 97.4% and for the nine months at $13.2 million it was
207.0% above the $4.3 million for the 2008 nine months; and
* primarily as a result of the stronger operating income, the second quarter
2009 Trust Preferred Security ("TPS") gain, and the fact that both the
Australian dollar and the New Zealand dollar have recaptured some of their value
since year end, when such currencies traded at $0.6983 and $0.5815,
respectively, compared to $0.8824 and $0.7233 respectively at September 30,
2009, our stockholders` equity has risen to $113.2 million at September 30, 2009
compared to $69.4 million at December 31, 2008.

On July 2, 2009, as part of the terms of settlement, we and Magoon Acquisition
and Development, LLC ("Magoon LLC") closed on the sale of our respective
interests in Malulani Investments, Limited ("MIL") and The Malulani Group,
Limited (collectively, "MMG") and settled certain litigation with MMG and
certain of their officers and Directors. As a result of the sale and the
settlement (which was negotiated in March 2009), we received a total of $9.25
million consisting of $2.5 million in cash and $6.75 million in note receivable,
and a ten-year tail interest in MMG. Based on the receipt of the cash and note
receivable, we recognized an other operating income of $2.6 million and a gain
on the sale of investment in an unconsolidated entity of $268,000. Under the
terms of our Shareholders` Agreement with Magoon LLC, substantially all of the
proceeds of this sale and settlement will be allocated to us, until we have
recouped our initial investment in MIL and all costs advanced by us with respect
to the litigation.

_________________________
(1) The Company defines EBITDA as net income (loss) before net interest expense, income tax benefit, depreciation, and amortization. EBITDA is presented solely as a supplemental disclosure as we believe it to be a relevant and useful measure to compare operating results among our properties and competitors, as well as a measurement tool for evaluation of operating personnel. EBITDA is not a measure of financial performance under the promulgations of generally accepted accounting principles ("GAAP"). EBITDA
should not be considered in isolation from, or as a substitute for, net loss, operating loss or cash flows from operations determined in accordance with GAAP. Finally, EBITDA is not calculated in the same manner by all companies and accordingly, may not be an appropriate measure for comparing performance amongst different companies. See the "Supplemental Data" table attached for a reconciliation of EBITDA to net income (loss).

Third Quarter 2009 Discussion

Revenue from operations decreased from $57.9 million in the 2008 quarter to
$56.1 million in 2009, a 3.2% decrease. The cinema segment revenue decrease of
$1.7 million was driven by a $1.4 million decrease in the US, predominantly due
to recognition of screen advertising revenue for prior quarters in 2008,
recognized in the 3rd quarter of 2008, on the signing of the contract. The
results of Australia and New Zealand were affected negatively by currency
exchange movements even though we noted higher revenues in the local currencies
for the period in both Australia and New Zealand. The top 3 grossing films for
the quarter in our circuit worldwide were: "Harry Potter & the Half Blood
Prince," "Transformers: Revenge of the Fallen," and "Ice Age: Dawn of the
Dinosaurs," which between them accounted for approximately 25.5% of our cinema
box office revenue. Real estate segment revenue was down by $241,000 from
quarter to quarter, as a result of the negative currency exchange effects in
Australia and New Zealand as well as lower live theater rentals in the US. In
local currencies, real estate revenue was flat in both Australia and New
Zealand.

As a percentage of revenue, operating expense, at 77.9% in the 2009 quarter was
basically flat to last year`s quarter of 77.7%.

Depreciation and amortization decreased by $1.1 million, or 21.6%, from $5.1
million in the 2008 quarter to $4.0 million in the 2009 quarter, primarily due
to the effects of the purchase accounting finalization for our acquired
Consolidated Entertainment cinema assets.

General and administrative expense decreased by $190,000 or 4.3%, from $4.4
million to $4.2 million in the 2009 quarter. This decrease was primarily related
to cost cutting measures implemented worldwide.

We recorded $2.6 million as other operating income in the 2009 quarter
associated with our settlement of the MIL litigation for the recovery of
previously expensed litigation costs.

Driven by the above factors our operating income for the quarter increased by
$3.3 million to $6.7 million compared to $3.4 million in the same quarter last
year.

Interest expense decreased by $482,000 from $4.0 million in the 2008 quarter, to
$3.5 million in the 2009 quarter. This was primarily related to the
mark-to-market of our interest swaps and cap and decreased interest expense due
to the retirement of our trust preferred securities in the second quarter of
2009 which was offset by an interest expense increase due to our ceasing to
capitalize interest on our development properties, where development has been
substantially curtailed.

For the 2009 quarter, we recorded an other income of $178,000 compared to an
other loss of $739,000 for the 2008 quarter, a $917,000 change. For the 2009
quarter, the $178,000 was predominantly equity earnings of unconsolidated joint
ventures. The 2008 quarter other loss of $739,000 was primarily related to a
$1.0 million property impairment expense.

In 2009, we recorded a gain on the sale of an investment in an unconsolidated
entity of $268,000 related to the sale of our investment in MIL.

As a result of the above, we reported a net income of $3.1 million for the 2009
quarter compared to a net loss of $2.1 million in the 2008 quarter.

Our EBITDA(1) at $11.0 million for the 2009 quarter was $3.4 million higher than
the 2008 quarter of $7.7 million.

Our adjusted EBITDA(1) for the 2009 quarter was $8.2 million after excluding:

* the $268,000 other nonoperating gain on the sale of the MIL security; and
* the $2.6 million other operating income associated with our settlement of the
MIL litigation.

There were no significant adjustments to EBITDA(1) in the 2008 quarter.

Nine Months 2009 Summary

Revenue from operations increased from $151.4 million in 2008 to $157.6 million
in 2009, a 4.1% increase. The cinema segment revenue increase of $8.1 million
was driven by an increase of $12.3 million in the US primarily resulting from
revenue from our newly acquired Consolidated Entertainment cinemas and decreases
in Australia of $1.3 million and New Zealand of $2.8 million. The decreases in
Australia and New Zealand were currency exchange driven as the local currency
cinema revenues were up 17.9% in Australia and 2.6% in New Zealand, compared to
the 2008 nine months. The top 3 grossing films for the nine months in our
circuit worldwide were: "Transformers: Revenge of the Fallen," "Harry Potter &
the Half Blood Prince" and "The Hangover," which between them accounted for
approximately 12.6%of our cinema box office revenue. The real estate segment
revenue was down by $131,000 from 2008 to 2009, as a result of the negative
currency exchange effects in Australia and New Zealand as well as lower live
theater rentals in the US. In local currencies, real estate revenue was
basically flat in both Australia and New Zealand.

As a percentage of revenue, operating expense, at 77.7% in 2009 was lower than
the 78.3% of 2008. This decrease was primarily related to the final allocation
for accounting purposes of a greater portion of the purchase price paid for our
Consolidated Entertainment cinemas to goodwill and below market leases than
originally estimated. This change, effective in the fourth quarter of 2008,
resulted in higher straight-line rent and acquired lease costs in 2008 than in
2009.

Depreciation and amortization decreased by $3.3 million, or 23.0%, from $14.5
million in 2008 to $11.2 million in 2009, primarily due to the previously
mentioned purchase accounting adjustments for our acquired Consolidated
Entertainment cinema assets.

As the sale of our Auburn property is no longer proceeding, we have moved the
property back to continuing operations, and as a result we expensed $549,000 as
catch-up depreciation, classified as loss on transfer of real estate from held
for sale to continuing operations.

General and administrative expense decreased by $1.1 million or 8.0%, from $14.0
million to $12.9 million in 2009. This decrease was primarily related to cost
cutting measures implemented worldwide and the one-time 2008 purchase related
costs of our Consolidated Entertainment acquisition.

We recorded $2.6 million as other operating income in the 2009 nine months
associated with our settlement of the MIL litigation for the recovery of
previously expensed litigation costs.

Driven by the above factors, our operating income for the 2009 nine months
increased by $8.9 million to $13.2 million, from $4.3 million in the 2008 nine
months.

Interest expense increased by $905,000, from $9.8 million in the 2008 nine
months to $10.7 million in the 2009 nine months. This was primarily related to
our ceasing to capitalize interest on our development properties, where
development has been substantially curtailed, which resulted in an interest
expense increase, which was offset by decreased interest expense due to the
retirement of our trust preferred securities in the second quarter of 2009 and
the mark-to-market of our interest swaps and cap.

In 2009, we recorded an other loss of $1.9 million compared to an other income
of $2.9 million for the same period in 2008, a $4.7 million change. The 2009
other loss of $1.9 million included a $2.2 million loss on currency
transactions; a $2.1 million other-than-temporary loss on our Becker marketable
securities; offset by a $1.5 million gain on the Auburn option termination; and
$861,000 in equity earnings of unconsolidated joint ventures. The 2008 other
income of $2.9 million was primarily related to a gain on currency transactions
of $446,000; a $1.1 million receipt related to our Whitehorse Center litigation;
$910,000 of insurance proceeds related to damage caused by Hurricane Georges in
1998 to one of our previously owned cinemas in Puerto Rico; and the settlement
in our credit card dispute of $385,000.

During the 2009 nine months, we recorded a $10.7 million gain on retirement of
subordinated debt (TPS), net of a $749,000 loss on deferred financing costs
associated with the subordinated debt.

In 2009 and 2008 we recorded gains on the sale of investments in unconsolidated
entities of $268,000 and $2.5 million, respectively, from the sale of our
investments in MIL and the cinema at Botany Downs in Auckland, New Zealand.

As a result of the above, we reported a net income of $9.6 million for the 2009
nine months compared to a net loss of $2.0 million in the 2008 period.

Our EBITDA(1) at $33.0 million for the 2009 nine months was $9.1 million higher
than the 2008 nine months of $23.9 million, predominantly driven by better
operating margins (approximately $5.5 million) plus the gain on the TPS
retirement (approximately $10.7 million) offset by the other income (loss)
change (approximately $4.7 million) and the 2008 gain on sale (approximately
$2.5 million).

Our adjusted EBITDA(1) for the 2009 nine months was $22.9 million after
excluding:

* the $10.7 million gain on the retirement of our TPS debt;
* the $1.5 million gain from Auburn option payments;
* the $268,000 gain on the sale from our investment in MIL securities; and
* the $2.6 million other operating income associated with our settlement of the
MIL litigation

offset by

* the $549,000 loss on transfer of Auburn;
* the realized transactional currency loss of $2.2 million; and
* the $2.1 million other-than-temporary loss on our Becker available-for-sale
shares.

Our adjusted EBITDA(1) for the 2008 nine months was $18.6 million after
excluding:

* the $2.5 million gain on sale of Botany; and
* the $2.8 million in realized transactional currency gains and other one-time
gains.

Balance Sheet

Our total assets at September 30, 2009 were $402.2 million compared to $371.9
million at December 31, 2008. The currency exchange rates for Australia and New
Zealand as of September 30, 2009 were $0.8824 and $0.7233, respectively, and as
of December 31, 2008, these rates were $0.6983 and $0.5815, respectively. As a
result, currency had a positive effect on the balance sheet at September 30,
2009 compared to December 31, 2008.

Our cash position at September 30, 2009 was $19.3 million compared to $30.9
million at December 31, 2008, reflecting the $11.5 million used to effectively
repurchase $22.9 million of our TPS in the first quarter of 2009.

At the present time, we have approximately $4.9 million (AUS$5.5 million) in
undrawn funds under our Australian Corporate Credit Facility. During May 2009,
we extended the term of our New Zealand facility to March 31, 2012 and reduced
the available borrowing amount to $32.5 million (NZ$45.0 million). As a result,
we currently have undrawn funds of $21.7 million (NZ$30.0 million) available
under our line of credit in New Zealand. Accordingly, we believe that we have
sufficient borrowing capacity under our Australian Corporate Credit Facility and
our New Zealand line of credit to meet our anticipated short-term working
capital requirements.

Our working capital at September 30, 2009 was negative by $2.7 million compared
to a positive working capital of $12.5 million at December 31, 2008, again
driven by the $11.5 million TPS repurchase and a $7.0 million loan that has
become short-term in nature.

Stockholders` equity was $113.2 million at September 30, 2009 compared to $69.4
million at December 31, 2008.

About Reading International, Inc.

Reading International (http://www.readingrdi.com) is in the business of owning
and operating cinemas and developing, owning and operating real estate assets.
Our business consists primarily of:

* the development, ownership and operation of multiplex cinemas in the United
States, Australia and New Zealand; and
* the development, ownership and operation of retail and commercial real estate
in Australia, New Zealand and the United States, including entertainment-themed
retail centers ("ETRC") in Australia and New Zealand and live theater assets in
Manhattan and Chicago in the United States.

Reading manages its worldwide cinema business under various different brands:

* in the United States, under the

* Reading brand,
* Angelika Film Center brand (http://angelikafilmcenter.com/),
* Consolidated Theatres brand (http://www.consolidatedtheatres.com/), and
* City Cinemas brand;

* in Australia, under the Reading brand (http://www.readingcinemas.com.au/); and

* in New Zealand, under the

* Reading (http://www.readingcinemas.co.nz) and
* Rialto (http://www.rialto.co.nz) brands.

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 movie goers of the films released in future
periods;
* The amount of money spent by film distributors to promote their motion
pictures;
* The licensing fees and terms required by film distributors from motion picture
exhibitors in order to exhibit their films;
* The comparative attractiveness of motion pictures as a source of entertainment
and willingness and/or ability of consumers (i) to spend their dollars on
entertainment and (ii) to spend their entertainment dollars on movies in an
outside the home environment; and
* The extent to which we encounter competition from other cinema exhibitors,
from other sources of outside of the home entertainment, and from inside the
home entertainment options, such as "home theaters" and competitive film product
distribution technology such as, by way of example, cable, satellite broadcast,
DVD and VHS rentals and sales, and so called "movies on demand;"

* With respect to our real estate development and operation activities:

* The rental rates and capitalization rates applicable to the markets in which
we operate and the quality of properties that we own;
* The extent to which we can obtain on a timely basis the various land use
approvals and entitlements needed to develop our properties;
* the risks and uncertainties associated with real estate development;
* The availability and cost of labor and materials;
* Competition for development sites and tenants; and
* The extent to which our cinemas can continue to serve as an anchor tenant
which will, in turn, be influenced by the same factors as will influence
generally the results of our cinema operations;

* With respect to our operations generally as an international company involved
in both the development and operation of cinemas and the development and
operation of real estate; and previously engaged for many years in the railroad
business in the United States:

* Our ongoing access to borrowed funds and capital and the interest that must be
paid on that debt and the returns that must be paid on such capital;
* The relative values of the currency used in the countries in which we operate;
* Changes in government regulation, including by way of example, the costs
resulting from the implementation of the requirements of Sarbanes-Oxley;
* Our labor relations and costs of labor (including future government
requirements with respect to pension liabilities, disability insurance and
health coverage, and vacations and leave);
* Our exposure from time to time to legal claims and to uninsurable risks such
as those related to our historic railroad operations, including potential
environmental claims and health related claims relating to alleged exposure to
asbestos or other substances now or in the future recognized as being possible
causes of cancer or other health-related problems;
* Changes in future effective tax rates and the results of currently ongoing and
future potential audits by taxing authorities having jurisdiction over our
various companies; and
* Changes in applicable accounting policies and practices.

The above list is not necessarily exhaustive, as business is by definition
unpredictable and risky, and subject to influence by numerous factors outside of
our control such as changes in government regulation or policy, competition,
interest rates, supply, technological innovation, changes in consumer taste and
fancy, weather, and the extent to which consumers in our markets have the
economic wherewithal to spend money on beyond-the-home entertainment.

Given the variety and unpredictability of the factors that will ultimately
influence our businesses and our results of operation, it naturally follows that
no guarantees can be given that any of our forward-looking statements will
ultimately prove to be correct.Actual results will undoubtedly vary and there is
no guarantee as to how our securities will perform either when considered in
isolation or when compared to other securities or investment opportunities.

Finally, please understand that we undertake no obligation to publicly update or
to revise any of our forward-looking statements, whether as a result of new
information, future events or otherwise, except as may be required under
applicable law.Accordingly, you should always note the date to which our
forward-looking statements speak.

Additionally, certain of the presentations included in this press release may
contain "pro forma" information or "non-US GAAP financial measures."In such
case, a reconciliation of this information to our US GAAP financial statements
will be made available in connection with such statements.

Reading International, Inc. and Subsidiaries
Supplemental Data
Reconciliation of EBITDA to Net Income (Unaudited)
(dollars in thousands, except per share amounts)

Statements of Operations Three Months Ended Nine Months Ended

September 30,
September 30,
2009 2008 2009 2008

Revenue $ 56,067 $ 57,891 $ 157,567 $ 151,368
Operating expense
Cinema/real estate 43,681 44,984 122,369 118,579
Depreciation and amortization 4,001 5,101 11,169 14,511
Loss on transfer of real estate from held for sale to continuing operations -- -- 549 --
General and administrative 4,206 4,396 12,875 13,993
Other operating income (2,551 ) -- (2,551 ) --

Operating income 6,730 3,410 13,156 4,285

Interest expense, net (3,476 ) (3,958 ) (10,737 ) (9,832 )
Other income (loss) 178 (739 ) (1,879 ) 2,850
Gain on retirement of subordinated debt -- -- 10,714 --
Gain on sale of investments in unconsolidated entities 268 -- 268 2,450
Income tax expense (424 ) (689 ) (1,422 ) (1,513 )
Net loss attributable to noncontrolling interest (133 ) (85 ) (460 ) (246 )

Net income (loss) $ 3,143 $ (2,061 ) $ 9,640 $ (2,006 )

Basic and diluted earnings (loss) per share $ 0.14 $ (0.09 ) $ 0.43 $ (0.09 )

EBITDA* $ 11,044 $ 7,687 $ 32,968 $ 23,850

EBITDA* change $3,357 $9,118

* EBITDA presented above is net income adjusted for interest expense (net of interest income), income tax expense, depreciation and amortization expense, and an adjustment for discontinued operations (this includes interest expense and depreciation and amortization for the discontinued operations).

Reconciliation of EBITDA to the net income (loss) is presented below:

Three Months Ended Nine Months Ended

September 30,
September 30,
2009 2008 2009 2008

Net income (loss) $ 3,143 $ (2,061 ) $ 9,640 $ (2,006 )
Add: Interest expense, net 3,476 3,958 10,737 9,832
Add: Income tax provision 424 689 1,422 1,513
Add: Depreciation and amortization 4,001 5,101 11,169 14,511

EBITDA $ 11,044 $ 7,687 $ 32,968 $ 23,850

Reading International, Inc. and Subsidiaries
Supplemental Data
Segment Reporting (Unaudited)
(dollars in thousands)

Three months ended September 30, 2009 Cinema Real Estate Intersegment Total

Eliminations
Revenue $ 52,340 $ 6,349 $ (2,622 ) $ 56,067
Operating expense 43,166 3,137 (2,622 ) 43,681
Depreciation & amortization 2,723 1,039 -- 3,762
General & administrative expense 608 195 -- 803
Segment operating income $ 5,843 $ 1,978 $ -- $ 7,821

Three months ended September 30, 2008 Cinema Real Estate Intersegment Total

Eliminations
Revenue $ 54,036 $ 6,108 $ (2,253 ) $ 57,891
Operating expense 44,744 2,493 (2,253 ) 44,984
Depreciation & amortization 3,848 1,090 -- 4,938
General & administrative expense 1,106 255 -- 1,361
Segment operating income $ 4,338 $ 2,270 $ -- $ 6,608

Reconciliation to net income attributable to Reading International, Inc. shareholders: 2009 2008

Quarter
Quarter
Total segment operating income $ 7,821 $ 6,608
Non-segment:
Depreciation and amortization expense 239 163
General and administrative expense 3,403 3,035
Other operating income (2,551 ) --
Operating income 6,730 3,410
Interest expense, net (3,476 ) (3,958 )
Other loss (24 ) (1,009 )
Income tax expense (424 ) (689 )
Equity earnings of unconsolidated joint ventures and entities 202 270
Gain on sale of investments in unconsolidated entities 268 --
Net income (loss) 3,276 (1,976 )
Net income attributable to the noncontrolling interest (133 ) (85 )
Net income (loss) attributable to Reading International, Inc. common shareholders $ 3,143 $ (2,061 )

Reading International, Inc. and Subsidiaries
Supplemental Data
Segment Reporting (Unaudited)
(dollars in thousands)

Nine months ended September 30, 2009 Cinema Real Estate Intersegment Total

Eliminations
Revenue $ 146,991 $ 17,739 $ (7,163 ) $ 157,567
Operating expense 120,762 8,770 (7,163 ) 122,369
Depreciation & amortization 8,208 2,474 -- 10,682
Loss on transfer of real estate held for sale to continuing operations -- 549 -- 549
General & administrative expense 2,176 564 -- 2,740
Segment operating income $ 15,845 $ 5,382 $ -- $ 21,227

Nine months ended September 30, 2008 Cinema Real Estate Intersegment Total

Eliminations
Revenue $ 138,867 $ 17,870 $ (5,369 ) $ 151,368
Operating expense 117,045 6,903 (5,369 ) 118,579
Depreciation & amortization 10,516 3,472 -- 13,988
General & administrative expense 3,005 853 -- 3,858
Segment operating income $ 8,301 $ 6,642 $ -- $ 14,943

Reconciliation to net income attributable to Reading International, Inc. shareholders: 2009 Nine 2008 Nine

Months
Months
Total segment operating income $ 21,227 $ 14,943
Non-segment:
Depreciation and amortization expense 487 523
General and administrative expense 10,135 10,135
Other operating income (2,551 ) --
Operating income 13,156 4,285
Interest expense, net (10,737 ) (9,832 )
Gain on retirement of subordinated debt (trust preferred securities) 10,714 --
Other income (loss) (2,740 ) 2,033
Income tax expense (1,422 ) (1,513 )
Equity earnings of unconsolidated joint ventures and entities 861 817
Gain on sale of investments in unconsolidated entities 268 2,450
Net income (loss) 10,100 (1,760 )
Net income attributable to the noncontrolling interest (460 ) (246 )
Net income (loss) attributable to Reading International, Inc. common shareholders $ 9,640 $ (2,006 )

Reading International, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations (Unaudited)
(U.S. dollars in thousands, except per share amounts)

Three Months Ended Nine Months Ended
September 30, September 30,
2009 2008 2009 2008
Revenue
Cinema $ 52,340 $ 54,036 $ 146,991 $ 138,867
Real estate 3,727 3,855 10,576 12,501
Total operating revenue 56,067 57,891 157,567 151,368
Operating expense
Cinema 40,544 42,491 113,599 111,676
Real estate 3,137 2,493 8,770 6,903
Depreciation and amortization 4,001 5,101 11,169 14,511
Loss on transfer of real estate held for sale to continuing operations -- -- 549 --
General and administrative 4,206 4,396 12,875 13,993
Other operating income (2,551 ) -- (2,551 ) --
Total operating expense 49,337 54,481 144,411 147,083

Operating income 6,730 3,410 13,156 4,285

Interest income 143 225 880 829
Interest expense (3,619 ) (4,183 ) (11,617 ) (10,661 )
Gain on retirement of subordinated debt (trust preferred securities) -- -- 10,714 --
Other income (loss) (24 ) (1,009 ) (2,740 ) 2,033
Income (loss) before income tax expense and equity earnings of unconsolidated joint ventures and entities 3,230 (1,557 ) 10,393 (3,514 )
Income tax expense (424 ) (689 ) (1,422 ) (1,513 )
Income (loss) before equity earnings of unconsolidated joint ventures and entities 2,806 (2,246 ) 8,971 (5,027 )
Equity earnings of unconsolidated joint ventures and entities 202 270 861 817
Gain on sale of investments in unconsolidated entities 268 -- 268 2,450
Net income (loss) $ 3,276 $ (1,976 ) $ 10,100 $ (1,760 )
Net income attributable to noncontrolling interest (133 ) (85 ) (460 ) (246 )
Net income (loss) attributable to Reading International, Inc. common shareholders $ 3,143 $ (2,061 ) $ 9,640 $ (2,006 )

Basic and diluted earnings (loss) per share attributable to Reading International, Inc. common shareholders $ 0.14 $ (0.09 ) $ 0.43 $ (0.09 )
Weighted average number of shares outstanding - basic 22,594,517 22,476,904 22,562,309 22,476,514
Weighted average number of shares outstanding - dilutive 22,662,306 22,476,904 22,630,097 22,476,514

Reading International, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)
(U.S. dollars in thousands)

September 30, December 31,

2009
2008
ASSETS
Current Assets:
Cash and cash equivalents $ 19,253 $ 30,874
Receivables 6,294 7,868
Inventory 733 797
Investment in marketable securities 2,516 3,100
Restricted cash 1,339 1,656
Prepaid and other current assets 3,810 2,324
Total current assets 33,945 46,619
Property held for and under development 77,468 69,016
Property & equipment, net 203,985 173,662
Investments in unconsolidated joint ventures and entities 10,879 11,643
Investment in Reading International Trust I 838 1,547
Goodwill 37,312 34,964
Intangible assets, net 23,310 25,118
Other assets 14,498 9,301
Total assets $ 402,235 $ 371,870

LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued liabilities $ 12,467 $ 13,170
Film rent payable 4,720 7,315
Notes payable - current portion 7,934 1,347
Taxes payable 6,231 6,425
Deferred current revenue 5,165 5,645
Other current liabilities 141 201
Total current liabilities 36,658 34,103
Notes payable - long-term portion 176,976 172,268
Notes payable to related party - long-term portion 14,000 14,000
Subordinated debt - trust preferred securities 27,913 51,547
Noncurrent tax liabilities 6,729 6,347
Deferred non-current revenue 595 554
Other liabilities 26,148 23,604
Total liabilities 289,019 302,423
Commitments and contingencies
Stockholders` equity:
Class A Nonvoting Common Stock, par value $0.01, 100,000,000 shares authorized, 35,706,806 issued and 21,129,582 outstanding at September 30, 2009 and 35,564,339 issued and 20,987,115 outstanding at December 31, 2008 216 216
Class B Voting Common Stock, par value $0.01, 20,000,000 shares authorized and 1,495,490 issued and outstanding at September 30, 2009 and at December 31, 2008 15 15
Nonvoting Preferred Stock, par value $0.01, 12,000 shares authorized and no outstanding shares -- --
Additional paid-in capital 134,300 133,906
Accumulated deficit (59,837 ) (69,477 )
Treasury shares (4,306 ) (4,306 )
Accumulated other comprehensive income 40,954 7,276
Total Reading International, Inc. stockholders` equity 111,342 67,630
Noncontrolling interest 1,874 1,817
Total stockholders` equity 113,216 69,447
Total liabilities and stockholders` equity $ 402,235 $ 371,870

Reading International, Inc.
Andrzej Matyczynski, Chief Financial Officer
213-235-2240

Copyright Business Wire 2009