Reading International Announces Australian Property Sale
LOS ANGELES -- November 29, 2012
Reading International, Inc. (NASDAQ: RDI) announced today the sale, for $12.2
million (AUS$11.8 million) of its Indooroopilly property in Brisbane,
On November 21, 2012, we settled the sale of our 7-story office building in
Indooroopilly, Brisbane for a sale price of $12.2 million (AUS$11.8 million).
In line with an agreement with our bankers in Australia, National Australia
Bank (NAB), 50% of the proceeds were to be used to pay down our outstanding
term loan with NAB. As a result of our $6.2 million (AUS$6.0 million)
repayment, our outstanding debt balance at November 30, 2012 will be $77.4
million (AUS$74.8 million).
In the coming weeks, the remaining sale proceeds will be used to further
reduce our debt obligations. It is estimated that the reduction in rental
revenue precipitated by the sale of this non-core asset, will be offset by a
reduction in interest expense as a result of the envisaged loan reductions.
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);
*in New Zealand, under the
*Reading (http://www.readingcinemas.co.nz) and
*Rialto (http://www.rialto.co.nz) brands.
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
*With respect to our cinema operations:
*The number and attractiveness to movie goers of the films released in
*The amount of money spent by film distributors to promote their
*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;
*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
*The relative values of the currency used in the countries in which we
*Changes in government regulation, including by way of example, the
costs resulting from the implementation of the requirements of
*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
*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
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
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.
Andrzej Matyczynski, Chief Financial Officer
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