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Reading International Announces 4th Quarter and Full Year 2012 Results



  Reading International Announces 4th Quarter and Full Year 2012 Results

  Revenue for the 2012 Quarter at $65.1 million compared to $57.4 million in
                           2011, up 13.4% over 2011

   Revenue for the 2012 Twelve Months at $254.4 million compared to $245.0
                      million in 2011, up 3.9% over 2011

 EBITDA^(1) for the 2012 Quarter at $8.8 million compared to $4.5 million in
                           2011, up 95.6% over 2011

   EBITDA^(1) for the 2012 Twelve Months at $36.8 million compared to $35.6
                      million in 2011, up 3.3% over 2011

Business Wire

LOS ANGELES -- March 18, 2013

Reading International, Inc. (NASDAQ: RDI) announced today results for its
quarter and year ended December 31, 2012.

2012 Twelve Month Highlights

  * our revenue for the 2012 Twelve Months was $254.4 million compared to
    $245.0 million in the 2011 Twelve Months, an increase of $9.5 million or
    3.9%, driven primarily by a $9.5 million increase in the U.S.;
  * our EBITDA^(1) for the 2012 Twelve Months was $36.8 million compared to
    $35.6 million in the 2011 Twelve Months, an increase of $1.2 million or
    3.3% driven primarily by the $1.6 million increase in other income
    (expense);
  * our revenue for the 2012 Quarter was $65.1 million compared to $57.4
    million in the 2011 Quarter, an increase of $7.7 million or 13.4%, driven
    primarily by a $4.0 million increase in the U.S.;
  * our EBITDA^(1) for the 2012 Quarter was $8.8 million compared to $4.5
    million in the 2011 Quarter, an increase of $4.3 million or 95.6%, driven
    primarily by a $4.0 million increase in New Zealand;
  * 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;
  * 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;
  * 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;
  * 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 and
    renewed and increased our existing $3.0 million line of credit with Bank
    of America to $5.0 million;
  * on December 1, 2012, we entered into a master operating equipment lease
    financing agreement with Banc of America Leasing to finance the
    acquisition of up to $15.5 million in digital projection equipment.

_____________________

^(1) 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 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).

Fourth Quarter 2012 Discussion

Revenue from operations increased from $57.4 million in the 2011 Quarter to
$65.1 million in the same Quarter in 2012, a $7.7 million or a 13.4% increase.

Cinema segment revenue increased by $7.8 million or 14.9% primarily due to an
increase in our worldwide box office admissions of 477,000 and a increase in
the U.S. average price per ticket of 1.9%; offset by, decrease in our
Australian and New Zealand average ticket prices of 3.2% and 7.3%,
respectively. The New Zealand and U.S. box office admissions increased
resulting from the reopening of an earthquake damaged New Zealand multiplex in
early January 2012, and the opening of our U.S. AFC Mosaic cinema in the
greater Washington D.C. metropolitan area in September 2012. Both the
Australian and New Zealand results were affected by an increase in the value
of the Australian and New Zealand dollars compared to the U.S. dollar, in the
2012 period compared to the same period in 2011.

The top three grossing films for the 2012 Quarter in our worldwide cinema
circuit were “Skyfall” “The Twilight Saga: Breaking Dawn Part 2” and “Taken
2.” These three films accounted for approximately 30.1% of our cinema box
office revenue. The top three grossing films for the 2011 Quarter in our
worldwide cinema circuit were “The Twilight Saga: Breaking Dawn Part I,” “Real
Steel,” and “Puss in Boots.” These three films accounted for approximately
21.3% of our 2011 Quarter cinema box office revenue.

Our 2012 quarterly real estate segment revenue decreased by $98,000 in the
2012 Quarter primarily related to a decrease in rental income from our live
theatre venues in the U.S. in 2012 compared to the same period in 2011; offset
by, higher rents and occupancy associated with our Australian and New Zealand
retail properties. As indicated above, both the Australian and New Zealand
results were also affected by an increase in the value of the Australian and
New Zealand dollars compared to the U.S. dollar in the 2012 period compared to
the same period in 2011.

As a percentage of revenue, operating expense was 79.4% of revenue in the 2012
Quarter compared to 81.2% in the 2011 Quarter, primarily related to our
revenues increasing while rent and labor costs remained somewhat fixed.

Depreciation expense decreased for the 2012 Quarter by $119,000 or 2.9%
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.

We recorded a real estate impairment loss in 2012 of $1.5 million related to
our Coachella property. As noted above, this property is 50% owned by Mr.
James J. Cotter who shares in any impairment loss to the extent of his
ownership interest. In 2011, we recorded a $369,000 impairment loss in related
to our Taringa real estate property. We subsequently sold the Taringa property
on February 21, 2012 for $1.9 million (AUS$1.8 million).

General and administrative expense decreased by $853,000 or 20.0% 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, as well
as some cost savings resulting from the synergies gained as a result of this
move.

Driven by the above factors, our operating income for the 2012 Quarter
increased by $2.5 million to an operating income of $4.5 million compared to
an operating income of $2.0 million in the same quarter last year.

Net interest expense decreased by $1.6 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, unless we
choose to fix the rate again.

For the 2012 Quarter, we recorded a $176,000 other loss which consisted of
approximately $705,000 of other asset losses principally from the write off of
deferred financing costs associated with our GE Capital term loan; offset by,
$531,000 in income from unconsolidated entities. For the 2011 Quarter, we
recorded a $1.6 million other loss which consisted of $2.6 million in losses
from unconsolidated entities primarily related to an impairment charge related
to our investment in Rialto Entertainment of $2.9 million; offset by, a $1.1
million gain primarily related to an initial insurance payment received
against our business interruption claim for the temporary closure of our
cinema in Christchurch, New Zealand.

For the 2012 Quarter, our income tax expense increased by $2.3 million
compared to the 2011 Quarter primarily associated with the reduction of
deferred tax assets in our Reading Australia operations.

For the 2012 Quarter, we recorded a loss from discontinued operations of
$284,000 and, for the 2011 Quarter, we recorded an income from discontinued
operations of $62,000 associated with our Indooroopilly property which was
sold for $12.4 million in November 2012.

Noncontrolling interest income (expense) increased from an expense of $273,000
for the 2011 Quarter to an income of $641,000 for the 2012 Quarter primarily
related to the $1.5 million impairment loss of our Coachella property in which
the minority shareholder participates to the extent of his 50% ownership.

As a result of the above, we reported a net loss of $1.3 million for the 2012
Quarter compared to a net loss of $5.0 million in the 2011 Quarter.

Our EBITDA^(1) at $8.8 million for the 2012 Quarter was $4.3 million or 95.6%
higher than the EBITDA^(1) for the 2011 Quarter of $4.5 million, driven
primarily by the $2.5 million increase in operating income and by the
aforementioned $1.6 million other loss in the 2011.

Our adjusted EBITDA^(1) for the 2012 Quarter was $10.2 million after
excluding:

  * the $1.5 million impairment expense related to our Coachella property.

Our adjusted EBITDA^(1) for 2011 Quarter was $7.8 million after excluding:

  * the $2.9 million impairment loss on our interest in Rialto Entertainment
    and
  * the $369,000 impairment loss associated with the impairment of our
    Taringa, Australia real estate property.

This resulted in a increase of $2.4 million in adjusted EBITDA^(1) or 31.3%,
from the 2011 Quarter to the 2012 Quarter.

Twelve Months 2012 Summary

Revenue from operations increased from $245.0 million in 2011 to $254.4
million in 2012, a $9.5 million or a 3.9% increase.

Cinema segment revenue increased $8.9 million driven by an increase in U.S.
and New Zealand box office admissions of 722,000 and 236,000, respectively.
The uplift in box office admissions in the U.S. was primarily from the
acquisition of a cinema from a third party in August 2011 and our newly opened
AFC Mosaic Cinema in the greater Washington D.C. metropolitan area 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 $7.0 million and an increase
in concessions and other revenue of $4.9 million. Our Australian cinema
revenue decreased by $3.0 million primarily relating to an 91,000 decrease in
box office admissions coupled with a 3.9% decrease in the average ticket price
per admission resulting from a more competitive ticket pricing model. This
decrease included the temporary closure of our Townsville cinema in Australia
due to the renovation of the cinema during the second quarter. Our Australian
and New Zealand revenue was also impacted by a slight increase in the value of
the Australian and New Zealand dollar compared to the U.S. dollar for the 2012
Twelve Months compared to the same period in 2011.

The top three grossing films for the Twelve Months in our worldwide cinema
circuit were “The Avengers,” “The Dark Knight Rises,” and “Skyfall.” These
three films accounted for approximately 10.8% of our cinema box office
revenue. The top three grossing films for the 2011 twelve months in our
worldwide cinema circuit were “Harry Potter and the Deathly Hallows Part II,”
“Transformers 3: Dark of the Moon,” and “The Hangover 2.” These three films
accounted for approximately 10.6% of our 2011 cinema box office revenue.

Additionally, our real estate segment revenue increased by $597,000 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. Our U.S. real estate revenue decreased by $115,000 relating to
a decrease in rental income from our live theater venues.

As a percentage of revenue, operating expense at 79.3% of revenue in 2012
increased compared to the 78.5% in 2011, primarily driven by the real estate
segment which had higher repair, maintenance, and insurance costs for our
operating properties, coupled with legal costs incurred in 2012 associated
with protecting the property rights of our Burwood property and with our
residual railroad properties.

Depreciation expense decreased for the 2012 Twelve Months by $546,000 or 3.3%
compared to the same period in 2011 due to certain Australian cinema assets
coming to the end of their depreciable lives in 2011.

We recorded a real estate impairment loss in 2012 of $1.5 million related to
our Coachella property as discussed above.

General and administrative expense decreased by $1.3 million or 7.5%,
primarily related to the same reasons noted above for the quarterly results.

Driven by the above factors, our operating income for the Twelve Months of
2012 increased by $949,000 to $19.1 million compared to $18.2 million in the
same period last year.

Net interest expense decreased by $4.6 million for the 2012 Twelve Months
compared to the 2011 Twelve Months. The decrease in interest expense during
the 2012 Twelve Months was due to the same reasons noted above for the
quarterly results.

For the 2012 Twelve Months, we recorded $1.2 million in other income which
consisted of approximately $1.6 million of income from unconsolidated
entities; offset by, $418,000 of other asset losses principally from the write
off of deferred financing costs associated with our GE Capital term loan. For
the 2011 Twelve Months, we recorded a $462,000 other loss which consists of
$1.6 million in losses from unconsolidated entities primarily related to an
impairment charge to our investment in Rialto Entertainment of $2.9 million;
offset by $1.1 million of other income primarily related to an initial
insurance payment received against our business interruption claim for the
temporary closure of our cinema in Christchurch, New Zealand.

The 2012 Twelve Months income tax expense was $4.9 million compared to an
income tax benefit of $12.3 million for the 2011 Twelve Months. The year over
year change was primarily related to a reduction in deferred tax assets in
Australia, caused by the sale of certain assets, plus a reduction in loss
carryforwards available to offset future Australia taxable income. For 2011,
the change was primarily 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 Twelve Months, we recorded income (loss) from
discontinued operations of ($405,000) and $1.9 million, respectively,
associated with our Indooroopilly property and with a gain on the sale of a
discontinued cinema operation for the 2011 Twelve Months. The 2012 Twelve
Months loss from discontinued operations includes a $318,000 impairment loss
for the sale of our Indooroopilly property on November 2012 for $12.4 million.

Noncontrolling interest income (expense) increased from an expense of $940,000
for the 2011 Twelve Months to an income of $492,000 for the 2012 Twelve Months
due to the same reasons noted above for the 2012 Quarter.

As a result of the above, we reported a net loss of $914,000 for the Twelve
Months of 2012 compared to a net income of $10.0 million in 2011, driven
primarily by the $14.4 million 2011 tax benefit relating to the valuation
allowance adjustment.

Our EBITDA^(1) at $36.8 million for the 2012 Twelve Months was $1.2 million or
3.3% higher than the EBITDA^(1) for the 2011 Twelve Months of $35.6 million,
driven primarily by the $1.6 million increase in other income (expense).

Our adjusted EBITDA^(1) for the 2012 Twelve Months was $38.6 million after
excluding:

  * the $1.5 million impairment expense related to our Coachella property; and
  * the $318,000 impairment expense related to our sold Indooroopilly
    property.

Our adjusted EBITDA^(1) for 2011 Twelve Months was $37.3 million after
excluding:

  * the $1.7 million gain on sale of assets of our Elsternwick Cinema in
    Melbourne, Australia;
  * the $2.9 million impairment loss on our interest in Rialto Entertainment;
    and
  * the $369,000 impairment loss associated with the discontinuation of our
    Taringa, Australia real estate development project.

This resulted in an increase in our adjusted EBITDA^(1) of $1.3 million or
3.5%, from the 2011 Twelve Months to the 2012 Twelve Months.

Balance Sheet and Liquidity

Our total assets at December 31, 2012 were $428.6 million compared to $430.8
million at December 31, 2011. The currency exchange rates for Australia and
New Zealand as of December 31, 2012 were $1.0393 and $0.8267, respectively,
and as of December 31, 2011, these rates were $1.0251 and $0.7805,
respectively. As a result, currency had a positive effect on the balance sheet
at December 31, 2012 when 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
2.00%. 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
1.00% 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.

On October 31, 2012, we replaced our GE Capital Term Loan of $27.7 million
with a new credit facility from Bank of America (the “BofA Revolver”) of $30.0
million with an interest rate of between 2.50% and 3.00% above LIBOR and an
expiration date of October 31, 2017. Although the BofA Revolver does not
require a fixed interest swap agreement, we will continue to use our existing
fixed interest rate swap of $29.1 million until its term date of December 31,
2013. The BofA Revolver requires principal payments of $3.0 million per year
with a balloon payment of $18.0 million at the expiration date. The BofA
Revolver contains other customary terms and conditions, including
representations and warranties, affirmative and negative covenants, events of
default and indemnity provisions. The most restrictive covenant of the
facility requires that we must maintain a fixed charge coverage ratio at a
certain level.

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.

Our cash position at December 31, 2012 was $46.5 million including an $8.0
million time deposit in Australia. Of the $46.5 million, $17.5 million was in
Australia, $22.7 million was in the U.S., and $6.3 million was in New Zealand.
As part of our main credit facilities in Australia, New Zealand and the U.S.,
we are subject to certain debt covenants which limit the transfer or use of
cash outside of the various regional subsidiaries in which the cash is held.
As such, at December 31, 2012 we have approximately $7.5 million of cash
worldwide that is not restricted by loan covenants.

At December 31, 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 $3.0 million available under our Bank of America 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 $46.5 million
cash balance including $8.0 million of time deposits, to meet our anticipated
short-term working capital requirements.

Our working capital at December 31, 2012 was a negative $21.4 million compared
to a negative $12.8 million at December 31, 2011. This increase in negative
working capital resulted primarily from our Village East option liability
becoming a current liability during 2012.

Stockholders’ equity was $131.0 million at December 31, 2012 compared to
$125.0 million at December 31, 2011, primarily related to a $2.9 million
increase in noncontrolling interest and an increase in accumulated other
comprehensive income of $2.4 million primarily associated with the increase in
foreign currency exchange noted above.

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.

                                                                  
Reading International, Inc. and Subsidiaries
Supplemental Data
Reconciliation of EBITDA to Net (Loss) Income
(dollars in thousands, except per share amounts)
                                                                      
                       Three Months Ended            Twelve Months Ended
                       December 31,                  December 31,
                       2012           2011           2012            2011     
                                                                      
Revenue              $ 65,117       $ 57,421       $ 254,430       $ 244,979
Operating
expense
Cinema/real            51,725         46,623         201,674         192,405
estate
Depreciation and       4,033          4,152          16,049          16,595
amortization
Impairment             1,463          369            1,463           369
expense
General and            3,416          4,269          16,117          17,432   
administrative
                                                                      
Operating income       4,480          2,008          19,127          18,178
                                                                      
Interest               (2,818 )       (4,422 )       (16,426 )       (21,038 )
expense, net
Other income           (176   )       (1,562 )       1,202           (462    )
(expense)
Income tax
benefit                (3,120 )       (847   )       (4,904  )       12,330
(expense)
Income (loss)
from                   (284   )       62             (405    )       1,888
discontinued
operations
Noncontrolling
interest income        641            (273   )       492             (940    )
(expense)
Net income             (1,277 )       (5,034 )       (914    )       9,956
(loss)
                                                                      
Basic earnings       $ (0.06  )     $ (0.21  )     $ (0.04   )     $ 0.44     
(loss) per share
Diluted earnings     $ (0.06  )     $ (0.22  )     $ (0.04   )     $ 0.43     
(loss) per share
                                                                      
EBITDA*              $ 8,755        $ 4,477        $ 36,800        $ 35,624   
                                                      
EBITDA* change         $4,278                        $1,176                   
                                                                              

*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            Twelve Months Ended
                        December 31,                  December 31,
                        2012           2011           2012           2011     
                                                                      
Net income (loss)     $ (1,277 )     $ (5,034 )     $ (914   )     $ 9,956
Add: Interest           2,818          4,422          16,426         21,038
expense, net
Add: Income tax         3,120          847            4,904          (12,330 )
benefit (expense)
Add: Depreciation       4,033          4,152          16,049         16,595
and amortization
Adjustment for
discontinued            61             90             335            365      
operations
                                                                      
EBITDA                $ 8,755        $ 4,477        $ 36,800       $ 35,624   

                                                               
Reading International, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(U.S. dollars in thousands, except per share amounts)
                                                                   
                            Year Ended December 31,
                            2012               2011               2010        
                                                                   
Operating revenue
Cinema                    $ 234,703          $ 225,849          $ 211,073
Real estate                 19,727             19,130             18,249      
Total operating             254,430            244,979            229,322     
revenue
                                                                   
Operating expense
Cinema                      190,511            182,215            171,795
Real estate                 11,163             10,190             9,049
Depreciation and            16,049             16,595             15,563
amortization
General and                 16,117             17,432             17,607
administrative
Impairment expense          1,463              369                2,239       
Total operating             235,303            226,801            216,253     
expense
                                                                   
Operating income            19,127             18,178             13,069
                                                                   
Interest income             800                1,482              1,351
Interest expense            (17,226    )       (22,520    )       (13,637    )
Net gain (loss) on          144                (67        )       352
sale of assets
Other income                (563       )       1,157              (347       )
(expense)
Income (loss) before
income tax expense
and equity earnings         2,282              (1,770     )       788
of unconsolidated
joint ventures and
entities
Income tax benefit          (4,904     )       12,330             (14,264    )
(expense)
Income (loss) before
equity earnings of          (2,622     )       10,560             (13,476    )
unconsolidated joint
ventures and entities
Equity earnings
(loss) of                   1,621              (1,552     )       1,345       
unconsolidated joint
ventures and entities
Income (loss) before
discontinued                (1,001     )       9,008              (12,131    )
operations
Income (loss) from
discontinued                (85        )       232                97
operations, net of
tax
Gain (loss) on sale
of discontinued             (320       )       1,656              --          
operations
Net income (loss)         $ (1,406     )     $ 10,896           $ (12,034    )
Net (income) loss
attributable to             492                (940       )       (616       )
noncontrolling
interests
Net income (loss)
attributable to
Reading                   $ (914       )     $ 9,956            $ (12,650    )
International, Inc.
common shareholders
                                                                   
Basic income (loss)
per common share
attributable to
Reading
International, Inc.
shareholders:
Earnings (loss) from      $ (0.02      )     $ 0.36             $ (0.56      )
continuing operations
Earnings (loss) from
discontinued                (0.02      )       0.08               --          
operations, net
Basic income (loss)
per share
attributable to           $ (0.04      )     $ 0.44             $ (0.56      )
Reading
International, Inc.
shareholders
                                                                   
Diluted income (loss)
per common share
attributable to
Reading
International, Inc.
shareholders:
Earnings (loss) from      $ (0.02      )     $ 0.35             $ (0.56      )
continuing operations
Earnings (loss) from
discontinued                (0.02      )       0.08               --          
operations, net
Diluted income (loss)
per share
attributable to           $ (0.04      )     $ 0.43             $ (0.56      )
Reading
International, Inc.
shareholders
Weighted average
number of shares            23,028,596         22,764,666         22,781,392
outstanding–basic
Weighted average
number of shares            23,028,596         22,993,135         22,781,392  
outstanding–diluted

                                                                  
Reading International, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(U.S. dollars in thousands)
                                                    
                                                   December 31,
                                                     2012            2011     
ASSETS
Current Assets:
Cash and cash equivalents                          $ 38,531        $ 31,597
Time deposits                                        8,000           --
Receivables                                          8,514           6,973
Inventory                                            918             1,035
Investment in marketable securities                  55              2,874
Restricted cash                                      2,465           2,379
Deferred tax asset                                   3,659           1,985
Prepaid and other current assets                     3,576           3,781
Assets held for sale                                 --              14,495   
Total current assets                                 65,718          65,119
                                                                      
Operating property, net                              202,778         203,780
Investment and development property, net             94,922          90,699
Investment in unconsolidated joint ventures          7,715           7,839
and entities
Investment in Reading International Trust I          838             838
Goodwill                                             22,898          22,277
Intangible assets, net                               15,661          17,999
Deferred tax asset, net                              8,989           12,399
Other assets                                         9,069           9,814    
Total assets                                       $ 428,588       $ 430,764  
                                                                      
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued liabilities           $ 18,909        $ 16,905
Film rent payable                                    6,657           6,162
Notes payable – current portion                      19,714          29,630
Notes payable to related party – current             9,000           --
portion
Taxes payable                                        15,234          14,858
Deferred current revenue                             11,587          10,271
Other current liabilities                            6,032           137      
Total current liabilities                            87,133          77,963
                                                                      
Notes payable – long-term portion                    139,970         143,071
Notes payable to related party – long-term           --              9,000
portion
Subordinated debt                                    27,913          27,913
Noncurrent tax liabilities                           8,859           12,191
Other liabilities                                    33,759          35,639   
Total liabilities                                    297,634         305,777  
Commitments and contingencies (Note 19)
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         223             220
at December 31, 2012 and 31,675,518 issued and
21,311,348 outstanding at December 31, 2011
Class B voting common stock, par value $0.01,
20,000,000 shares authorized and 1,495,490           15              15
issued and outstanding at December 31, 2012
and at December 31, 2011
Nonvoting preferred stock, par value $0.01,
12,000 shares authorized and no issued or            --              --
outstanding shares at December 31, 2012 and
December 31, 2011
Additional paid-in capital                           136,754         135,171
Accumulated deficit                                  (66,993 )       (66,079 )
Treasury shares                                      (4,512  )       (4,512  )
Accumulated other comprehensive income               61,369          58,937   
Total Reading International, Inc.                    126,856         123,752
stockholders’ equity
Noncontrolling interests                             4,098           1,235    
Total stockholders’ equity                           130,954         124,987  
Total liabilities and stockholders’ equity         $ 428,588       $ 430,764  

Contact:

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