Reading International Announces 3rd Quarter 2012 Results

  Reading International Announces 3rd Quarter 2012 Results

 Net Income for the 2012 Quarter at $363,000 compared to $37,000 in 2011, up
                               881.1% over 2011

 Conversion to Digital:  Signed agreements to implement digital projectors in
                          U.S. cinemas by year-end.

Business Wire

LOS ANGELES -- November 08, 2012

Reading International, Inc. (NASDAQ: RDI) announced today results for its
quarter ended September 30, 2012.

2012 Nine Month Highlights

  *our revenue for the 2012 Nine Months was $189.3 million compared to $187.6
    million in the 2011 Nine Months, an increase of $1.7 million or 0.9%,
    driven primarily by a $5.5 million increase in the U.S.;
  *our net income for the 2012 Quarter increased to $363,000 compared to
    $37,000 in 2011, up 881.1% over 2011;
  *on January 10, 2012, Shadow View Land and Farming, LLC, a limited
    liability company managed by our Company and owned on a 50/50 basis with
    Mr. James J. Cotter, acquired for $5.5 million a 202-acre property, zoned
    for the development of up to 843 single-family residential units, located
    in the City of Coachella, California;
  *On February 8, 2012, we renewed our existing $36.9 million (NZ$45.0
    million) New Zealand credit facility with a 3-year credit facility through
    Westpac. The renewed facility calls for a decrease in the overall facility
    by $4.1 million ($5.0 million) to a $32.8 million (NZ$40.0 million) credit
    facility and an increase in the facility margin of 0.55% to 2.0%.
  *on June 28, 2012, Sutton Hill Properties LLC (“SHP”), one of our
    consolidated subsidiaries, paid off its Eurohypo AG, New York Branch loan
    with proceeds from a new $15.0 million term loan from Sovereign Bank,
    N.A.;
  *on September 21, 2012, we opened an 8-screen art cinema in the Mosaic
    District in the greater Washington D.C. metropolitan area; and
  *On September 30, 2012, we entered into an agreement with an affiliate of
    Cinedigm Digital Cinema Corp with respect to our conversion of
    substantially all of our U.S. cinemas which are not already equipped with
    digital projection to digital projection.

Third Quarter 2012 Discussion

Revenue from operations decreased from $66.5 million in the 2011 Quarter to
$63.9 million in the same Quarter in 2012, a $2.6 million or a 3.9% decrease.

Cinema segment revenue decreased by $2.6 million or 4.2% primarily due to a
decrease in Australian box office admissions of 120,000 and a decrease in the
Australian average price per ticket of $0.68, related to the available film
product in 2012 compared to the same period in 2011. Our U.S. and New Zealand
box office admissions increased by 70,000 resulting in an increase in revenue
of $439,000 primarily resulting from the reopening of an earthquake damaged
New Zealand multiplex in early January 2012, and the acquisition of a U.S.
cinema from a third party operator in August 2011. Both the Australian and New
Zealand results were negatively affected by a decrease in the value of the
Australian and New Zealand dollars compared to the U.S. dollar.

The top three grossing films for the 2012 Quarter in our worldwide cinema
circuit were “The Dark Knight Rises,” “TED,” and “Ice Age 4: Continental
Drift.” These three films accounted for approximately 30.0% of our cinema box
office revenue.

Our 2012 quarterly real estate segment revenue slightly increased in the 2012
Quarter primarily related to higher rents and occupancy associated with our
Australian retail properties; offset by, a decrease in New Zealand rental
income and live theatre revenue in the U.S. in 2012 compared to the same
period in 2011 and an adjustment to our intercompany real estate revenue
eliminations in the 2011 Quarter not repeated in 2012. As indicated above,
both the Australian and New Zealand results were also affected by a decrease
in the value of the Australian and New Zealand dollars compared to the U.S.
dollar in 2012 compared to the same period in 2011.

As a percentage of revenue, operating expense was 81.1% of revenue in the 2012
Quarter compared to 76.9% in the 2011 Quarter, primarily related an increase
to the cinema operating expense associated with the opening of a new cinema in
the U.S. on September 21, 2012, the acquisition in 2011 of an existing cinema
from a third party, and the anticipated closing of an older cinema in the U.S.
Additionally, real estate operating expense increased driven by higher
additional costs associated with our newly acquired 202 acre land parcel in
the U.S. and from legal costs incurred in 2012 associated with protecting the
property rights of our Burwood property. This increase in operating expense
was offset, in part by, a decrease in the value of the Australian and New
Zealand dollars compared to the U.S. dollar and by a decrease in Australian
cinema costs which followed the associated decrease in Australian cinema
revenue.

Depreciation expense decreased for the 2012 Quarter by $209,000 or 5.0%
compared to the same period in 2011 due to certain Australian and New Zealand
cinema assets coming to the end of their depreciable lives in 2011.

General and administrative expense decreased by $215,000 or 7.6% in the 2012
Quarter compared to the 2011 Quarter, primarily related to the one-time
additional labor costs incurred during 2011, associated with the transfer of
our accounting functions from the U.S. and Australia to New Zealand.

Driven by the above factors, our operating income for the 2012 Quarter
decreased by $2.6 million to $4.4 million compared to $7.0 million in the same
quarter last year.

Net interest expense decreased by $3.1 million for the 2012 Quarter compared
to the 2011 Quarter. The decrease in interest expense during the 2012 Quarter
was primarily due to a smaller increase in the fair value of our interest rate
swaps in 2012 than that noted for the same period in 2011 and to a decrease in
interest rates specifically from our Trust Preferred Securities. Effective May
1, 2012, that interest rate changed from a fixed rate of 9.22%, which was in
effect for the past five years, to a variable rate of 3-month LIBOR plus
4.00%, which will reset each quarter through to the end of the loan.

For the 2012 Quarter, our income tax benefit increased by $62,000 compared
2011 Quarter primarily associated with changes to the estimate of the
likelihood of realizing our deferred tax assets in our Reading Australia
operations.

For the 2012 and 2011 Quarters, we recorded income (loss) from discontinued
operations of ($241,000) and $55,000, respectively, associated with our
Indooroopilly property classified as held for sale at September 30, 2012. The
2012 Quarter loss from discontinued operations includes a $283,000 impairment
loss for the property. While no assurances can be given that a sale will be
ultimately be consummated, this property is currently under a contract to sell
for $12.4 million and is in its due diligence period.

As a result of the above, we reported a net income of $363,000 for the 2012
Quarter compared to a net income of $37,000 in the 2011 Quarter, driven
primarily by the decrease in interest expense; offset by, the decrease in the
operating income in the 2012 Quarter compared to the same period last year.

Our EBITDA^(1) at $8.5 million for the 2012 Quarter was $3.1 million lower
than the EBITDA for the 2011 Quarter of $11.6 million, driven primarily by the
$2.9 million decrease in operating income in the 2012 Quarter compared to the
2011.

Our adjusted EBITDA^(1) for the 2012 Quarter was $8.8 million after excluding:

  *the $283,000 impairment expense related to our held for sale Indooroopilly
    property;

We did not have any adjustments to EBITDA^(1) for the 2011 Quarter.

This resulted in a decrease of $2.8 million in adjusted EBITDA^(1) or 24.1%,
from the 2011 Quarter to the 2012 Quarter.

Nine Months 2012 Summary

Revenue from operations increased from $187.6 million in 2011 to $189.3
million in 2012, a $1.8 million or a 0.9% increase.

Cinema segment revenue increased $1.1 million driven by an increase in U.S.
and New Zealand box office admissions of 447,000 and 127,000, respectively.
The uplift in box office admissions in the U.S. was primarily from the
improved film product noted in the first quarter of 2012 and from the
acquisition of a cinema from a third party in August 2011 while the increase
in New Zealand was primarily as a result of the reopening of an earthquake
damaged New Zealand multiplex in early January 2012. These changes resulted in
an increase in box office revenue of $3.3 million and an increase in
concessions and other revenue of $2.9 million. Our New Zealand revenue was
also impacted by an increase in the value of the New Zealand dollar compared
to the U.S. dollar for the 2012 Nine Months compared to the same period in
2011. Our Australian cinema revenue decreased by $5.1 million primarily
relating to an 184,000 decrease in box office admissions coupled with a $0.54
decrease in the average ticket price per admission. This decrease included the
temporary closure of our Townsville cinema in Australia due to the renovation
of the cinema during the second quarter.

The top three grossing films for the Nine Months in our worldwide cinema
circuit were “The Avengers,” “The Dark Knight Rises,” and “The Hunger Games.”
These three films accounted for approximately 13.9% of our cinema box office
revenue.

Additionally, our real estate segment revenue increased by $695,000 compared
to the same period last year. Our Australian and New Zealand real estate
revenue increased primarily due to higher rents in 2012 compared to the same
period in 2011 coupled with a year over year increase in the value of the New
Zealand dollars compared to the U.S. dollar. Also, our U.S. real estate
revenue increased by $273,000 relating to improved results from our live
theater operations.

As a percentage of revenue, operating expense at 79.2% of revenue in 2012
increased compared to the 77.7% in 2011, primarily driven by increased cinema
operating expenses which followed the increased cinema revenues. In addition,
the real estate segment had higher repair, maintenance, and insurance costs
for our operating properties, from legal costs incurred in 2012 associated
with protecting the property rights of our Burwood property and with our
residual railroad properties. The operating expense was also impacted by the
increase in the value of the New Zealand dollar compared to the U.S. dollar.

Depreciation expense decreased for the 2012 Nine Months by $427,000 or 3.4%
compared to the same period in 2011 due to certain Australian cinema assets
coming to the end of their depreciable lives in 2011.

General and administrative expense decreased by $462,000 or 3.5%, primarily
related to the same reasons noted above for the quarterly results.

Driven by the above factors, our operating income for the Nine Months of 2012
decreased by $1.5 million to $14.6 million compared to $16.1 million in the
same period last year.

Net interest expense decreased by $3.0 million for the 2012 Nine Months
compared to the 2011 Nine Months. The decrease in interest expense during the
2012 Nine Months was due to the same reasons noted above for the quarterly
results.

The 2012 Nine Months income tax expense was $1.8 million compared to an income
tax benefit of $13.2 million for the 2011 Nine Months. The year over year
change primarily related to a one-time tax provision adjustment of $14.4
million in 2011 caused by a reduction in the valuation allowance related to
our Australian operations.

For the 2012 and 2011 Nine Months, we recorded income (loss) from discontinued
operations of ($121,000) and $1.8 million, respectively, associated with our
Indooroopilly property and with a gain on the sale of a discontinued cinema
operation for the 2011 Nine Months. The 2012 Nine Months loss from
discontinued operations includes a $283,000 impairment loss for the
Indooroopilly property. While no assurances can be given that a sale will be
ultimately be consummated, this property is currently under a contract to sell
for $12.4 million and is in its due diligence period.

As a result of the above, we reported a net income of $361,000 for the Nine
Months of 2012 compared to a net income of $15.0 million in 2011, driven
primarily by the 2011 $14.4 million tax benefit relating to the valuation
allowance adjustment.

Our EBITDA^(1) at $28.0 million for the 2012 Nine Months was $3.1 million
lower than the EBITDA for the 2011 Nine Months of $31.1 million, driven
primarily by the $1.5 million decrease in operating income in the 2012 Nine
Months compared to the same period in 2011, and the gain on the sale of an
Australian cinema of $1.7 million in the 2011 Nine Months.

Our adjusted EBITDA^(1) for the 2012 Nine Months was $28.3 million after
excluding:

  *the $283,000 impairment expense related to our held for sale Indooroopilly
    property;

Our adjusted EBITDA^(1) for 2011 Nine Months was $29.4 million after
excluding:

  *the $1.7 million gain on sale of assets of an Australian cinema;

This resulted in a decrease in our adjusted EBITDA^(1) of $1.1 million or
3.8%, from the 2011 Nine Months to the 2012 Nine Months.

Balance Sheet and Liquidity

Our total assets at September 30, 2012 were $430.2 million compared to $430.8
million at December 31, 2011. The currency exchange rates for Australia and
New Zealand as of September 30, 2012 were $1.0388 and $0.8293, respectively,
and as of December 31, 2011, these rates were $1.0251 and $0.7805,
respectively. As a result, there was an increase in the value of the
Australian dollar and the New Zealand dollar compared to the U.S. dollar on
the assets and liabilities of our balance sheet at September 30, 2012 compared
to December 31, 2011.

On February 8, 2012, we received an approved amendment from Westpac renewing
our existing $36.9 million (NZ$45.0 million) New Zealand credit facility with
a 3-year credit facility. The renewed facility calls for a decrease in the
overall facility by $4.1 million ($5.0 million) to $32.8 million (NZ$40.0
million) credit facility and an increase in the facility margin of 0.55% to
2.0%. No other significant changes to the facility were made.

On June 28, 2012, Sutton Hill Properties LLC (“SHP”), one of our consolidated
subsidiaries, paid off its Eurohypo AG, New York Branch loan with a new $15.0
million term loan (the “Sovereign Bank Loan”) from Sovereign Bank, N.A. The
Sovereign Bank Loan has a one-year term ending on June 27, 2013, with a one
year extension option to June 26, 2014 subject to an extension fee equal to 1%
of the ending principal balance and a compliance requirement with certain
special covenants. The terms of the loan require interest only payments at
LIBOR plus a 5.00% margin to be calculated and paid monthly. This loan is
secured by SHP’s interest in the Cinemas 1, 2, & 3 land and building. The loan
covenants include maintaining a loan to value ratio of at least 50% of fair
market value and an 11% debt yield (with a numerator of the cash available for
debt service and a denominator of the outstanding principal balance of the
loan). The Sovereign Bank Loan is further secured by a guaranty provided by
Reading International, Inc. and by its noncontrolling interest member, Sutton
Hill Capital, LLC.

At September 30, 2012, we had undrawn funds of $10.4 million (AUS$10.0
million) available under our NAB line of credit in Australia, $9.9 million
(NZ$12.0 million) available under our renewed New Zealand Corporate Credit
facility, and $5.0 million available under our GE Capital revolving loan
credit facility in the U.S. Accordingly, we believe that we have sufficient
borrowing capacity under our various credit facilities, together with our
$22.5 million cash balance and $8.0 million of time deposits, to meet our
anticipated short-term working capital requirements.

Our working capital at September 30, 2012 shows a negative $8.0 million
compared to a negative $12.8 million at December 31, 2011. This improvement to
our negative working capital is in part attributable to the aforementioned
refinancing of our Sovereign Bank Loan; offset by, our live theatre loans
being due on April 1, 2013.

Stockholders’ equity was $134.1 million at September 30, 2012 compared to
$125.0 million at December 31, 2011, primarily related to an increase in our
other comprehensive income associated with the increase in the value of our
Australian and New Zealand dollar denominated net assets and a $2.8 million
contribution of noncontrolling interest associated with Mr. James J. Cotter’s
interest in the land acquired by Shadow View Land and Farming, LLC in January
2012.

Subsequent Events

Indooroopilly Sale Agreement

On October 5, 2012, we entered into an agreement to sell our Indooroopilly
property for $12.4 million (AUS$12.0 million). As the book value at September
30, 2012 was $12.5 million (AUS$12.1 million) for this property, we recorded
an impairment expense of $283,000 (AUS$272,000) for the three and nine months
ended September 30, 2012. We anticipate the sale of the property to close by
the end of November 2012.

Bank of America Financing

On October 31, 2012, we replaced our GE Capital Term Loan of $27.7 million
with a new credit facility from Bank of America of $30.0 million with an
interest rate of between 2.50% and 3.00% above LIBOR. As part of this new
credit facility, Bank of America extended our existing $3.0 million line of
credit to $5.0 million. Although the new credit facility does not require a
fixed interest swap agreement, we will continue to use our existing fixed
interest rate swap of $30.2 million until its term date of December 31, 2013.
Additionally, we entered into a master operating equipment lease financing
agreement with Banc of America Leasing & Capital, LLC to finance the
acquisition of up to $15.5 million in digital projection equipment for our
U.S. cinema operations, with the intent to complete the implementation by the
end of this year.

Hurricane Sandy

As a result of Hurricane Sandy which made landfall on the eastern United
States on October 30, 2012, a number of our cinemas and theaters have
sustained damage and lost business. We are in the process of evaluating our
estimated costs to repair these locations and the extent of business loss
insurance that we will claim.

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 (http://www.readingcinemasus.com),
       *Angelika Film Center brand (http://www.angelikafilmcenter.com),
       *Consolidated Theatres brand (http://www.consolidatedtheatres.com),
       *City Cinemas brand (http://www.citycinemas.com),
       *Beekman Theatre brand (http://www.beekmantheatre.com),
       *The Paris Theatre brand (http://www.theparistheatre.com), and
       *Liberty Theatres brand (http://libertytheatresusa.com/);

  *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 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, 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, 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.

       The Company defines EBITDA as net income (loss) before net interest
       expense, income tax benefit, depreciation, and amortization. The
       company defines adjusted EBITDA as EBITDA adjusted for unusual or
       infrequent events or items that are of a non-cash nature. EBITDA and
       adjusted EBITDA are presented solely as supplemental disclosures as we
       believe they are relevant and useful measures to compare operating
       results among our properties and competitors, as well as measurement
       tools for the evaluation of operating personnel. EBITDA and adjusted
^(1)  EBITDA are not measures of financial performance under the
       promulgations of generally accepted accounting principles (“GAAP”).
       EBITDA and adjusted EBITDA should not be considered in isolation from,
       or as substitutes for, net loss, operating loss or cash flows from
       operations determined in accordance with GAAP. Finally, EBITDA and
       adjusted EBITDA are not calculated in the same manner by all companies
       and accordingly, may not be appropriate measures for comparing
       performance among different companies. See the “Supplemental Data”
       table attached for a reconciliation of EBITDA to net income (loss).
       

Reading International, Inc. and Subsidiaries

Supplemental Data

Reconciliation of EBITDA to Net (Loss) Income

(dollars in thousands, except per share amounts)
                                                    
Statements of          Three Months Ended                    Nine Months Ended
Operations
                       September 30,                         September 30,
                        2012         2011             2012          2011    
                                                                                 
Revenue                $ 63,934           $ 66,554           $ 189,313           $ 187,558
Operating
expense
Cinema/real              51,825             51,162             149,949             145,782
estate
Depreciation
and                      3,995              4,204              12,016              12,443
amortization
General and             3,957            4,172            12,701            13,163  
administrative
                                                                                 
Operating                4,157              7,016              14,647              16,170
income
                                                                                 
Interest                 (4,165 )           (7,280 )           (13,608 )           (16,616 )
expense, net
Other income             459                460                1,292               1,166
Net gain
(loss) on sale           86                 1                  84                  (66     )
of assets
Income tax
benefit                  100                38                 (1,784  )           13,177
(expense)
Income (loss)
from
discontinued             (241   )           55                 (121    )           1,826
operations,
net of tax
Net income
attributable
to                      (33    )          (253   )          (149    )          (667    )
noncontrolling
interest
                                                                                 
Net income             $ 363             $ 37              $ 361              $ 14,990  
                                                                                 
Basic earnings         $ 0.02            $ 0.00            $ 0.01             $ 0.66    
per share
Diluted
earnings per           $ 0.02            $ 0.00            $ 0.01             $ 0.65    
share
                                                                                 
EBITDA*                $ 8,515           $ 11,576          $ 28,043           $ 31,147  
                                                             
EBITDA* change         $(3,061)                             $(3,104)                      

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

Reconciliation of EBITDA to the net loss is presented below:

                     Three Months Ended                   Nine Months Ended
                                                
                     September 30,                        September 30,
                      2012        2011             2012        2011    
                                                                           
Net income           $ 363             $ 37               $ 361            $ 14,990
Add:
Interest               4,165             7,280              13,608           16,616
expense, net
Add: Income
tax                    (100  )           (38    )           1,784            (13,177 )
provision
Add:
Depreciation           3,995             4,204              12,016           12,443
and
amortization
Adjustments
for                   92              93               274             275     
discontinued
operations
                                                                           
EBITDA               $ 8,515          $ 11,576          $ 28,043         $ 31,147  
                                                                           

Reading International, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(U.S. dollars in thousands, except per share amounts)
                                                                             
                              Three Months Ended                        Nine Months Ended
                              September 30,                             September 30,
                        2012            2011            2012            2011       
                                                                                             
Operating revenue
Cinema                      $ 59,246             $ 61,867             $ 174,636            $ 173,577
Real estate              4,688           4,687           14,677          13,981     
Total operating          63,934          66,554          189,313         187,558    
revenue
                                                                                             
Operating expense
Cinema                        48,672               48,643               141,470              138,352
Real estate                   3,153                2,519                8,479                7,430
Depreciation and              3,995                4,204                12,016               12,443
amortization
General and              3,957           4,172           12,701          13,163     
administrative
Total operating          59,777          59,538          174,666         171,388    
expense
                                                                                             
Operating income              4,157                7,016                14,647               16,170
                                                                                             
Interest income               148                  466                  541                  1,307
Interest expense              (4,313     )         (7,746     )         (14,149    )         (17,923    )
Net gain (loss) on            86                   1                    84                   (66        )
sale of assets
Other expense            182             6               202             79         
Income (loss)
before income tax
expense and equity
earnings of                   260                  (257       )         1,325                (433       )
unconsolidated
joint ventures and
entities
Income tax benefit       100             38              (1,784     )     13,177     
(expense)
Income (loss)
before equity
earnings of                   360                  (219       )         (459       )         12,744
unconsolidated
joint ventures and
entities
Equity earnings of
unconsolidated           277             454             1,090           1,087      
joint ventures and
entities
Income before
discontinued                  637                  235                  631                  13,831
operations
Income (loss) from
discontinued                  (241       )         55                   (121       )         170
operations, net of
tax
Gain on sale of
discontinued             --              --              --              1,656      
operation
Net income                  $ 396                $ 290                $ 510                $ 15,657
Net income
attributable to          (33        )     (253       )     (149       )     (667       )
noncontrolling
interests
Net income
attributable to
Reading                 $ 363            $ 37             $ 361            $ 14,990     
International, Inc.
common shareholders
                                                                                             
Basic income per
common share
attributable to
Reading
International, Inc.
shareholders:
Earnings from
continuing                  $ 0.03               $ 0.00               $ 0.03               $ 0.58
operations
Earnings (loss)
from discontinued        (0.01      )     0.00            (0.01      )     0.08       
operations, net
Basic income per
share attributable
to Reading              $ 0.02           $ 0.00           $ 0.02           $ 0.66       
International, Inc.
shareholders
                                                                                             
Diluted income per
common share
attributable to
Reading
International, Inc.
shareholders:
Earnings from
continuing                  $ 0.03               $ 0.00               $ 0.03               $ 0.57
operations
Earnings (loss)
from discontinued        (0.01      )     0.00            (0.01      )     0.08       
operations, net
Diluted income per
share attributable
to Reading              $ 0.02           $ 0.00           $ 0.02           $ 0.65       
International, Inc.
shareholders
Weighted average
number of shares              23,071,846           22,782,534           23,007,787           22,759,488
outstanding–basic
Weighted average
number of shares         23,293,886      22,979,952      23,229,827      22,956,906 
outstanding–diluted
                                                                                             

Reading International, Inc. and
Subsidiaries

Condensed Consolidated Balance                          
Sheets

(U.S. dollars in thousands)
                                                                     
                                      September 30,     December 31,
                                            2012                  2011
ASSETS
Current Assets:
Cash and cash equivalents                   $  22,535             $  31,597
Time deposits                                  8,000                 --
Receivables                                    6,785                 6,973
Inventory                                      796                   1,035
Investment in marketable                       53                    2,874
securities
Restricted cash                                2,402                 2,379
Deferred tax asset                             3,605                 1,985
Prepaid and other current assets               4,353                 3,781
Assets held for sale                     12,258          14,495  
Total current assets                           60,787                65,119
                                                                     
Property held for and under                    98,788                90,699
development
Property and equipment, net                    200,943               203,780
Investment in unconsolidated                   7,632                 7,839
joint ventures and entities
Investment in Reading                          838                   838
International Trust I
Goodwill                                       22,927                22,277
Intangible assets, net                         16,221                17,999
Deferred tax asset, net                        11,301                12,399
Other assets                             10,720          9,814   
Total assets                           $  430,157       $  430,764 
                                                                     
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current Liabilities:
Accounts payable and accrued                $  17,933             $  16,905
liabilities
Film rent payable                              4,958                 6,162
Notes payable – current portion                22,136                29,630
Taxes payable                                  14,883                14,858
Deferred current revenue                       8,698                 10,271
Other current liabilities                174             137     
Total current liabilities                      68,782                77,963
                                                                     
Notes payable – long-term portion              143,263               143,071
Notes payable to related party –               9,000                 9,000
long-term portion
Subordinated debt                              27,913                27,913
Noncurrent tax liabilities                     9,697                 12,191
Other liabilities                        37,407          35,639  
Total liabilities                        296,062         305,777 
Commitments and contingencies
(Note 13)
Stockholders’ equity:
Class A non-voting common stock,
par value $0.01, 100,000,000
shares authorized,
31,951,945 issued and 21,587,775
outstanding at September 30, 2012
and 31,675,518
issued and 21,311,348 outstanding              221                   220
at December 31, 2011
Class B voting common stock, par
value $0.01, 20,000,000 shares
authorized and
1,495,490 issued and outstanding
at September 30, 2012 and at                   15                    15
December 31, 2011
Nonvoting preferred stock, par
value $0.01, 12,000 shares
authorized and no issued
or outstanding shares at
September 30, 2012 and December                --                    --
31, 2011
Additional paid-in capital                     135,718               135,171
Accumulated deficit                            (65,718  )            (66,079 )
Treasury shares                                (4,512   )            (4,512  )
Accumulated other comprehensive          63,632          58,937  
income
Total Reading International, Inc.              129,356               123,752
stockholders’ equity
Noncontrolling interests                 4,739           1,235   
Total stockholders’ equity               134,095         124,987 
Total liabilities and                  $  430,157       $  430,764 
stockholders’ equity

Contact:

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