Market Overview

Record First Quarter 2018 Results Announced by Reading International


Earnings Call Webcast to Discuss 2018 First Quarter Financial Results
Scheduled to Post to Corporate Website on Monday, May 14, 2018

  • Achieves All-Time Record Quarterly Revenue of $75.8 million
  • First Quarter Operating Income of $5.6 million, Represents Highest
    First Quarter on Record
  • Basic EPS of $0.13, Tied First Quarter Record
  • First Quarter Net Income of $3.0 million, Second Highest First Quarter
    on Record
  • First Quarter EBITDA of $11.0 million, Second Highest First Quarter on

Reading International, Inc. (NASDAQ:RDI) today announced record results
for the first quarter ended March 31, 2018. The Company reported Basic
Earnings per Share ("EPS") of $0.13 for the quarter ended March 31,
2018, tying the prior year period, which was itself a record first
quarter. Revenue represented an all-time quarterly record for the
Company, while Operating Income represented an all-time first quarter
record. Net Income and EBITDA were both the second highest first
quarters on record.

Ellen Cotter, Chair, President and Chief Executive Officer, said, "We
are pleased with the record results we delivered in the first quarter,
which reflect the strong progress we are making on our three-year
business strategy and the healthy state of the global cinema
industry. This positive momentum in our cinema business has continued
through April, and we are confident that this segment will continue to
benefit from the existing and upcoming summer movies from the major
studios. During the first quarter, we also enhanced our real estate
portfolio by strategically acquiring an approximately 16,830-square-foot
building in Australia, which increases our Redyard entertainment
center's uninterrupted frontage on Parramatta Road, one of Sydney's
busiest arterial roads, by 182 feet. We believe that Reading is
well-positioned to drive long-term stockholder value as we continue
developing our real estate portfolio and executing our global cinema
strategy to elevate the guest experience."

Consolidated revenue for the first quarter of 2018, increased by 9% (or
$6.3 million) compared to the first quarter of 2017, primarily driven
by: (i) the opening of our new state-of-the-art eight screen Reading
Cinema on December 14, 2017 in Newmarket, Australia; (ii) the re-opening
of our Courtenay Central Cinema in Wellington, New Zealand, on March 29,
2017; (iii) increases in average ticket prices ("ATP") in our U.S. and
Australian Cinemas; and (iv) an increase in the Food & Beverage spend
per patron ("SPP") across all markets.

The following table summarizes the first quarter for 2018 and 2017:

Three Months Ended
% Change
(Dollars in millions, except EPS) March 31,
March 31,
Revenue $ 75.8 $ 69.5 9 %
- US 38.6 36.9 5 %
- Australia 29.1 27.2 7 %
- New Zealand 8.1 5.4 50 %
Segment operating income (1) $ 11.9 $ 10.4 14 %
Net income(2) $ 3.0 $ 3.0 - %
EBITDA (1) $ 11.0 $ 10.5 5 %
Adjusted EBITDA (1) $ 12.5 $ 11.2 12 %
Basic EPS (2) $ 0.13 $ 0.13 - %



Aggregate segment operating income, earnings before interest
expense (net of interest income), income tax expense, depreciation
and amortization expense ("EBITDA") and adjusted EBITDA are
non-GAAP financial measures. See the discussion of non-GAAP
financial measures that follows.


Reflect amounts attributable to stockholders of Reading
International, Inc., i.e. after deduction of noncontrolling



  • Operating Results: We
    achieved the following results for the quarter ended March 31, 2018:
1. Revenue of $75.8 million, up $6.3 million from the prior year;
2. EBITDA of $11.0 million compared to $10.5 million in 2017;
3. Net income of $3.0 million compared to $3.0 million in 2017; and
4. Basic EPS of $0.13 per share compared to $0.13 per share in 2017.
  • Capex program: During
    the first quarter of 2018, we invested $23.2 million in capital
    improvements to our cinemas (which included the purchase of digital
    projectors in the U.S. that had previously been subject to an
    equipment lease, and the continued investment in the upgrading of
    select cinemas) and real estate properties.
  • Cinema activities: During
    the first quarter of 2018, we completed the renovation of our Reading
    Cinemas in Murrieta, CA, and, on March 30, 2018, we launched
    "Spotlight", our new dine-in concept, in six auditoriums of that
    cinema. We also continued renovation of our Reading Cinemas in
    Manville, New Jersey, and by April 2018 had installed recliner seats
    in all auditoriums. Refurbishment work at our Charlestown and
    Elizabeth cinemas in Australia was finished in March and April 2018,
    respectively. We continue to upgrade our food and beverage ("F&B")
    offerings and, as of March 31, 2018, we have obtained liquor licenses
    for 26 of our existing cinemas in the U.S., Australia and New Zealand.
    Our cinema pipeline includes three new cinemas in Australia and New
    Zealand that have been approved by our Board of Directors and which we
    anticipate bringing on line in 2019/2020.

    Our online ticket
    sales achieved a record first quarter in all countries, led by Black
    and Jumanji: Welcome to the Jungle, exceeding
    previous first quarter records by as much as 54%. With the launch of
    branded ticketing apps in the U.S. and improved online sales
    infrastructure to better serve high sales volume, Black Panther
    set daily and weekly online record ticket sales in all countries. To
    further improve our guests' online experience, we launched electronic
    gift card sales, guest enabled online refunds and social sharing on
    our U.S. branded web sites during the quarter.
  • Real estate activities:
    • Union Square Redevelopment (New York,
      – We continued to advance the construction of our
      44 Union Square re-development project having now poured five of
      the six floors. We are preparing to install the dome and
      anticipate that the project will be ready for tenant fit-out in
      the fourth quarter of this year. Retail and office leasing
      interest is strong and we are in discussions with a variety of
      quality tenants, including potential full building users. As of
      March 31, 2018, we have invested a total of $37.5 million in the
      property's redevelopment out of a total projected investment of
      $74.5 million.
    • Strategic Redyard Acquisition on
      Parramatta Road (Sydney, Australia)
      – We recently
      purchased a property at 98 Parramatta Road, located adjacent to
      our Entertainment Themed Center ("ETC") in Auburn, for $3.5
      million (AU$4.5 million). The property consists of an
      approximately 16,830 square feet office building located on an
      estimated 20,870 square foot lot, with approximately 182 feet of
      frontage to Parramatta Road. The transaction is subject to a
      leaseback to Telstra Corporation through September 2022. The
      property borders our Redyard center in Auburn on three boundaries
      to the east, west and south. Including this acquisition, our
      Redyard center represents approximately 519,992 square feet
      (48,309 square meters) of land, with approximately 1,620 feet (498
      meters) of uninterrupted frontage to Parramatta Road, a major
      Sydney arterial motorway.
    • Newmarket Village Expansion (Brisbane,
      – The first full quarter of operation of our
      Newmarket Village expansion, which was completed in December 2017.
      The expansion included the addition of a new eight screen Reading
      Cinema with both a TITAN LUXE and a Gold Lounge offer and
      delivered approximately 10,150 square feet of new F&B retail space
      along with a further 124 parking spaces. As of March 31, 2018,
      approximately 93% of the new retail space had been leased.
    • Belmont (Perth, Australia)
      In the first quarter 2018, we continued with the repositioning of
      our ETC in Belmont (a suburb of Perth), which features new F&B
      offerings and a Reading Cinema with TITAN LUXE. By the third
      quarter of 2018, we anticipate opening our third new restaurant,
      the Asian inspired Tao Café (with approximately 3,190 square feet)
      joining our existing restaurants, Dome Café and Tavolo.
    • Manukau Land Re-zoning (Auckland, New
      – We are continuing to work with the adjacent
      landowners of our properties in Manukau to develop an
      infrastructure plan for the approximate 355 acres of rezoned land
      of which 70.4 acres is our property.


The following table summarizes the first quarter segment operating
results for 2018 and 2017:

Three Months Ended
% Change
(Dollars in thousands) March 31,
March 31,
Segment revenue


United States $ 37,987 $ 36,235 5 %
Australia 26,717 24,957 7 %
New Zealand   7,551     5,368   41 %
Total $ 72,255   $ 66,560   9 %

Real estate

United States $ 655 $ 586 12 %
Australia 4,104 3,586 14 %
New Zealand   1,199     325   269 %
Total $ 5,958 $ 4,497 32 %
Inter-segment elimination   (2,391 )   (1,603 ) (49 )%
Total segment revenue $ 75,822   $ 69,454   9 %
Segment operating income


United States $ 3,000 $ 2,507 20 %
Australia 5,916 5,945 - %
New Zealand   1,369     641   114 %
Total $ 10,285   $ 9,093   13 %

Real estate

United States $ (293 ) $ 28 nm
Australia 1,465 1,408 4 %
New Zealand   459     (142 ) 423 %
Total $ 1,631   $ 1,294   26 %
Total segment operating income (1) $ 11,916   $ 10,387   15 %

"nm" – not meaningful for further analysis



Aggregate segment operating income is a non-GAAP financial
measure. See the discussion of non-GAAP financial measures that


Cinema Exhibition

First Quarter Results:

Cinema segment operating income increased by 13%, or $1.2 million, to
$10.3 million for the quarter ended March 31, 2018 compared to March 31,
2017. The primary driver was the re-opening of our Courtenay Central
Cinema in Wellington, New Zealand, as well as increased operating income
in the U.S. due to a higher ATP and a higher SPP across the circuit. For
the first quarter:

  • Revenue in the United States increased by 5%, or $1.8 million, due to
    a 9% increase in ATP and a 2% increase in SPP offset by a 2% decrease
    in attendance.
  • Australia's cinema revenue increased by 7%, or $1.8 million, primarily
    due to a 5% increase in ATP, a 6% increase in SPP and a 2% increase
    due to a more favorable foreign exchange rate, offset by a 2% decrease
    in attendance.
  • In New Zealand, our cinema revenue increased by 41%, or $2.2 million,
    resulting from a 34% increase in attendance, a 12% increase in SPP and
    a 4% increase due to a more favorable foreign exchange rate, offset by
    a slight decrease in ATP.

The top three grossing films for the first quarter 2018 were "Black
" "Jumanji: Welcome to the Jungle" and "The
Greatest Showman,"
representing approximately 32% of Reading's
worldwide admission revenues for the quarter. The top three grossing
films in the first quarter of 2017 for Reading's worldwide cinema
circuits were "Beauty and the Beast," "Logan" and "Lion,"
which represented approximately 21% of Reading's admission revenues for
the first quarter of 2017.

Real Estate

First Quarter Results:

Real estate segment operating income increased by 26%, or $337,000, to
$1.6 million for the quarter ended March 31, 2018 compared to March 31,
2017, primarily attributable to increased operating revenue from our
Courtenay Central ETC, due to the full quarter of operations in 2018
compared to only a few days in 2017 due to the November 2016 earthquake,
as well as the increased income from the expansion of our Newmarket and
Auburn ETCs in Australia. This was partially offset by an increase in
depreciation due to our occupation of our headquarters building in
Culver City and a decline in lease revenue due to a fire at our property
in Chicago.


The first quarter consolidated and non-segment results for 2018 and 2017
are summarized as follows:

Three Months Ended
% Change
(Dollars in thousands) March 31,
March 31,
Segment operating income $ 11,916   $ 10,387   15 %
Non-segment income and expenses:
General and administrative expense (6,156 ) (4,753 ) (30 )%
Interest expense, net (1,594 ) (1,860 ) 14 %
Other   58     970   94 %
Total non-segment income and expenses $ (7,692 ) $ (5,643 ) (36 )%
Income before income taxes 4,224 4,744 11 %
Income tax expense   (1,155 )   (1,703 ) 32 %
Net income $ 3,069 $ 3,041 1 %
Less: net income (loss) attributable to noncontrolling interests   22     12   nm
Net income attributable to RDI common stockholders $ 3,047   $ 3,029   1 %

"nm" – not meaningful for further analysis

First Quarter Net Results

Net income attributable to RDI common stockholders increased by 1%, or
$18,000, to $3.0 million, principally due to an increase in the Cinema
Exhibition segment operating income. This increase was due to the
re-opening of our Courtenay Central ETC in Wellington New Zealand, which
was closed for the majority of Q1 2017 due to the November 2016
earthquake, along with increased operating income from our U.S.
operations. These were offset by increased non-segment G&A expenses as
well lower other income due to the one-off gain in 2017 from a foreign
exchange gain on short-term funds held in our foreign operations that
did not repeat in 2018. EPS for the quarter ended March 31, 2018
remained consistent when compared to the prior-year quarter at $0.13.

Non-Segment General & Administrative Expenses

G&A expense for the quarter ended March 31, 2018 increased by 30% or
$1.4 million compared to the prior year period. This increase primarily
relates to higher non-recurring legal expenses incurred on the
Derivative Litigation, the Cotter Employment Arbitration and other
Cotter litigation matters, and higher compensation costs, due to
headcount and the timing of annual salary increases as well as the
timing of recording increases in variable compensation costs.

Income Tax Expense

Income tax expense for the quarter ended March 31, 2018 decreased by
$548,000 compared to equivalent prior-year period. The change between
2018 and 2017 is mainly related to: (i) lower pretax income, (ii) the
reduction of the U.S. statutory corporate tax rate as the result of tax
reform, and (iii) a net increase in the foreign tax credit.


Balance Sheet and Liquidity

Total assets increased by $3.5 million, to $426.6 million at March 31,
2018, compared to $423.0 million at December 31, 2017. This was
primarily driven by increases in our operating and investment properties
relating to capital enhancements in our existing cinemas and capital
investments relating to major real estate projects, primarily (i) the
redevelopment of our Union Square property in New York; (ii) the
expansion of our Newmarket property in Brisbane, Australia; and (iii)
the purchase of our previously leased digital projectors in the United
States. Available cash resources generated from operations and proceeds
received from borrowings funded these capital investments.

Cash and cash equivalents at March 31, 2018 were $8.7 million, including
$5.4 million in the U.S., $1.9 million in Australia, and $1.4 million in
New Zealand. We manage our cash, investments and capital structure so we
are able to meet short-term and long-term obligations for our business,
while maintaining financial flexibility and liquidity.

As part of our operating cycle, we utilize cash collected from (i) our
cinema business when selling tickets and food and beverage items, and
(ii) rental income typically received in advance, to reduce our
long-term borrowings and realize savings on interest charges. We then
settle our operating expenses generally with a lag within traditional
trade terms. This generates a temporary working capital deficit. As
discussed previously, we review the maturities of our borrowings and
negotiate for renewals and extensions, as necessary for liquidity
purposes. We believe the cash flow generated from our operations coupled
with our ability to renew loans when due will provide sufficient
liquidity in the upcoming year.

The table below presents the changes in our total available resources
(cash and borrowings), debt-to-equity ratio, working capital and other
relevant information addressing our liquidity for the three months ended
March 31, 2018 and preceding four years:


As of and for the
3-Months Ended

Year Ended December 31
($ in thousands) 3/31/2018 2017 2016 2015 2014
Total Resources (cash and borrowings)
Cash and cash equivalents (unrestricted) $ 8,668 $ 13,668 $ 19,017 $ 19,702 $ 50,248
Unused borrowing facility 125,326 137,231 117,599 70,134 45,700
Restricted for capital projects(1) 61,375 62,280 62,024 10,263 --
Unrestricted capacity 63,951 74,951 55,575 59,871 45,700
Total resources at period end 133,994 150,899 136,616 89,836 95,948
Total unrestricted resources at period end 72,619 88,619 74,592 79,573 95,948
Debt-to-Equity Ratio
Total contractual facility $ 275,511 $ 271,732 $ 266,134 $ 207,075 $ 201,318
Total debt (gross of deferred financing costs) 150,185 134,501 148,535 130,941 164,036
Current 10,544 8,109 567 15,000 38,104
Non-current 139,641 126,392 147,968 115,941 125,932
Total book equity 183,755 181,241 146,615 138,951 133,716
Debt-to-equity ratio 0.82 0.74 1.01 0.94 1.23
Changes in Working Capital
Working capital (deficit) $ (40,530 ) $ (46,971 ) $ 6,655 $ (35,581 ) $ (15,119 )
Current ratio 0.39 0.42 1.10 0.51 0.84
Capital Expenditures (including acquisitions) $ 23,231 $ 76,708 $ 49,166 $ 53,119 $ 14,914



This relates to the construction facilities specifically
negotiated for: (i) Union Square redevelopment project, obtained
in December 2016, and (ii) New Zealand construction projects,
obtained in May 2015.


Below is a summary of the available credit facilities as of March 31,

As of March 31, 2018
(Dollars in thousands)




Restricted for
Capital Projects


Bank of America Credit Facility (USA) $ 55,000 $ 31,000 $ 24,000 $ -- $ 24,000
Bank of America Line of Credit (USA) 5,000 -- 5,000 -- 5,000
Union Square Construction Financing (USA) 57,500 9,155 48,345 48,345 --
NAB Corporate Term Loan (AU) (1) 51,139 41,525 9,614 -- 9,614
Westpac Bank Corporate (general/non-construction) Credit Facility
(NZ) (1)
25,337 -- 25,337 -- 25,337
Westpac Bank Corporate (construction) Credit Facility (NZ) (1)   13,030   --   13,030   13,030   --
Total $ 207,006 $ 81,680 $ 125,326 $ 61,375 $ 63,951



The borrowings are denominated in foreign currency. The
contractual capacity and capacity used were translated into U.S.
dollars based on the applicable exchange rates as of March 31,


The $61.4 million representing borrowings restricted for capital
projects is composed of the $48.3 million and $13.0 million
(NZ$18.0 million) unused capacity for the Union Square development and
construction funding for New Zealand operations, respectively. Our
Minetta & Orpheum Theatres Loan will become due within one year.
Currently, we are negotiating with our lender to renew this borrowing on
a long-term basis.

Our overall global operating strategy is to conduct business mostly on a
self-funding basis by country (except for funds used to pay an
appropriate share of our U.S. corporate overhead). However, we may, from
time to time, move funds between jurisdictions where circumstances merit
such action as part of our goal to minimize our cost of capital.

Non-GAAP Financial Measures

This earnings release presents aggregate segment operating income, and
EBITDA, which are important financial measures for the Company, but are
not financial measures defined by U.S. GAAP.

These measures should be reviewed in conjunction with the relevant U.S.
GAAP financial measures and are not presented as alternative measures of
EPS, cash flows or net income as determined in accordance with US GAAP.
Aggregate segment operating income and EBITDA, as we have calculated
them, may not be comparable to similarly titled measures reported by
other companies.

Aggregate segment operating income – we evaluate the
performance of our business segments based on segment operating income,
and management uses aggregate segment operating income as a measure of
the performance of operating businesses separate from non-operating
factors. We believe that information about aggregate segment operating
income assists investors by allowing them to evaluate changes in the
operating results of the Company's business separate from
non-operational factors that affect net income, thus providing separate
insight into both operations and the other factors that affect reported
results. Refer to "Consolidated and Non-Segment Results" for a
reconciliation of segment operating income to net income.

EBITDA – we present EBITDA as a supplemental measure of
its performance, which is commonly used in our industry. We define
EBITDA as net income adjusted for interest expense (net of interest
income), income tax expense, depreciation and amortization expense, and
an adjustment of interest expense, depreciation, and amortization for
discontinued operations, if any. EBITDA is a non-GAAP financial measure
commonly used in our industry and should not be construed as an
alternative to net earnings (loss) as an indicator of operating
performance or as an alternative to cash flow provided by operating
activities as a measure of liquidity (as determined in accordance with
U.S. GAAP). We have included EBITDA in this Earnings Release, as we
believe that it provides management and our investors with additional
information necessary to properly measure our performance and liquidity,
estimate our value and evaluate our ability to service debt.

Adjusted EBITDA – using the principles we
consistently apply to determine our EBITDA, we further adjusted the
EBITDA for certain items we believe are appropriate adjustable items,
described as follows:

  • Legal expenses relating to the Derivative litigation, the James J.
    Cotter, Jr. employment arbitration and other Cotter litigation matters
    while we started to incur expenses in relation to these legal matters
    in 2015, we believe that the majority of these costs were thrust upon
    the Company as it became necessary to defend the Company's position in
    the Derivative litigation and related matters, to resolve Mr. Cotter,
    Jr.'s claims relating to his termination, and to protect our Company's
    interests, and that of our shareholders in light of Mr. Cotter, Jr.'s
    efforts to effect a change of control of our Company. For this reason,
    we believe these costs should also be treated as non-recurring in
    nature and accordingly, an adjustable item for purposes of determining
    our Adjusted EBITDA.

In cases of property sales, we have not made adjustments for any gains,
in line with our overall business strategy that at any time, we may
decide to dispose of any property when we believe that an asset has
reached the highest value that we could reasonably achieve without
investing substantial additional sums for land use planning,
construction and marketing.

Reconciliation of EBITDA to net income is presented below:

Three Months Ended
March 31 March 31
(Dollars in thousands) 2018 2017
Net Income $ 3,047 $ 3,029
Add: Interest expense, net 1,594 1,860
Add: Income tax expense 1,155 1,703
Add: Depreciation and amortization   5,250   3,934
EBITDA $ 11,046 $ 10,526
Legal expenses relating to the derivative ligation, the Cotter
employment arbitration and other Cotter litigation matters
  1,448   645
Adjusted EBITDA $ 12,494 $ 11,171

Conference Call and Webcast

We plan to post our pre-recorded conference call and audio webcast on
our corporate website on May 14, 2018, that will feature prepared
remarks from Ellen Cotter, President & Chief Executive Officer; Dev
Ghose, Executive Vice President & Chief Financial Officer; and Andrzej
Matyczynski, Executive Vice President - Global Operations.

A pre-recorded question and answer session will follow our formal
remarks. Questions and topics for consideration should be submitted to
on May 11, 2018 by 5:00 p.m. Eastern Daylight Time. The audio webcast
can be accessed by visiting

About Reading International, Inc.

Reading International Inc. (NASDAQ:RDI) is a leading entertainment and
real estate company, engaging in the development, ownership and
operation of multiplex cinemas and retail and commercial real estate in
the United States, Australia, and New Zealand.

The family of Reading brands includes cinema brands Reading Cinemas,
Angelika Film Centers, Consolidated Theatres, and City Cinemas; live
theaters operated by Liberty Theatres in the United States; and
signature property developments, including Newmarket Village, Auburn Red
Yard and Cannon Park in Australia, Courtenay Central in New Zealand and
44 Union Square in New York City.

Additional information about Reading can be obtained from the Company's

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.
guarantees can be given that our expectations 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;
    • the extent to which we encounter competition from other cinema
      exhibitors, from other sources of outside-the-home entertainment,
      and from inside-the-home entertainment options, such as "home
      theaters" and competitive film product distribution technology
      such as, by way of example, cable, satellite broadcast and DVD
      rentals and sales, and online streaming;
    • the cost and impact of improvements to our cinemas, such as
      improved seating, enhanced food and beverage offerings and other
    • service disruption during theater improvements; and
    • the extent to and the efficiency with which we are able to
      integrate acquisitions of cinema circuits with our existing
  • 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
    • the extent to which we can obtain on a timely basis the various
      land use approvals and entitlements needed to develop our
    • the risks and uncertainties associated with real estate
    • the availability and cost of labor and materials;
    • the ability to obtain all permits to construct improvements;
    • the ability to finance improvements;
    • the disruptions from construction;
    • the possibility of construction delays, work stoppage and material
    • competition for development sites and tenants;
    • environmental remediation issues;
    • the extent to which our cinemas can continue to serve as an anchor
      tenant that will, in turn, be influenced by the same factors as
      will influence generally the results of our cinema operations;
    • the ability to negotiate and execute joint venture opportunities
      and relationships; and
    • certain of our activities are in geologically active areas,
      creating a risk of damage and/or disruption of real estate and/or
      cinema businesses from earthquakes.
  • with respect to our operations generally as an international company
    involved in both the development and operation of cinemas and the
    development and operation of real estate; and previously engaged for
    many years in the railroad business in the United States:
    • our ability to renew, extend or renegotiate our loans that mature
      in 2018;
    • our ongoing access to borrowed funds and capital and the interest
      that must be paid on that debt and the returns that must be paid
      on such capital;
    • expenses, management and Board distraction and other effects of
      the litigation efforts mounted by James Cotter, Jr. against the
      Company, including his efforts to cause a sale of voting control
      of the Company;
    • the relative values of the currency used in the countries in which
      we operate;
    • changes in government regulation, including by way of example, the
      costs resulting from the implementation of the requirements of
    • our labor relations and costs of labor (including future
      government requirements with respect to pension liabilities,
      disability insurance and health coverage, and vacations and leave);
    • our exposure from time to time to legal claims and to uninsurable
      risks such as those related to our historic railroad operations,
      including potential environmental claims and health-related claims
      relating to alleged exposure to asbestos or other substances now
      or in the future recognized as being possible causes of cancer or
      other health related problems;
    • our exposure to cyber-security risks, including misappropriation
      of customer information or other breaches of information security;
    • changes in future effective tax rates and the results of currently
      ongoing and future potential audits by taxing authorities having
      jurisdiction over our various companies; and
    • changes in applicable accounting policies and practices.

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

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

In addition to the forward-looking factors set forth above, we
encourage you to review Item 1A. "Risk Factors," from our Company's
Annual Report on SEC Form 10-K for the Year Ended December 31, 2017.

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

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

Reading International, Inc. and Subsidiaries
Unaudited Consolidated Statements of Operations

(Unaudited; U.S. dollars in thousands, except per share data)

Three Months Ended
March 31, March 31,


Cinema $ 72,255 $ 66,560
Real estate     3,567       2,894  
Total revenue     75,822       69,454  
Costs and expenses
Cinema (54,948 ) (51,782 )
Real estate (2,384 ) (2,036 )
Depreciation and amortization (5,250 ) (3,934 )
General and administrative     (7,597 )     (6,174 )
Total costs and expenses     (70,179 )     (63,926 )
Operating income 5,643 5,528
Interest expense, net (1,594 ) (1,860 )
Other income (expense)     (82 )     821  
Income before income tax expense and equity earnings of
unconsolidated joint ventures
3,967 4,489
Equity earnings of unconsolidated joint ventures     257       255  
Income before income taxes 4,224 4,744
Income tax expense     (1,155 )     (1,703 )
Net income $ 3,069 $ 3,041
Less: net income (loss) attributable to noncontrolling interests     22       12  
Net income attributable to Reading International, Inc. common
  $ 3,047     $ 3,029  
Basic earnings per share attributable to Reading International,
Inc. shareholders
  $ 0.13     $ 0.13  
Diluted earnings per share attributable to Reading International,
Inc. shareholders
  $ 0.13     $ 0.13  
Weighted average number of shares outstanding–basic 22,967,237 23,168,351
Weighted average number of shares outstanding–diluted     23,132,989       23,465,176  



Certain prior period amounts have been reclassified to conform
to the current period presentation.

Reading International, Inc. and Subsidiaries
Consolidated Balance Sheets

(Unaudited; U.S. dollars in thousands, except share information)

  March 31,   December 31,
    2018   2017
ASSETS (unaudited)
Current Assets:
Cash and cash equivalents $ 8,668 $ 13,668
Receivables 8,922 13,050
Inventory 1,342 1,432
Prepaid and other current assets     6,713       5,325  
Total current assets 25,645 33,475
Operating property, net 269,578 264,724
Investment and development property, net 66,944 61,254
Investment in unconsolidated joint ventures 5,283 5,304
Goodwill 20,383 20,276
Intangible assets, net 8,227 8,542
Deferred tax asset, net 24,834 24,908
Other assets     5,661       4,543  
Total assets   $ 426,555     $ 423,026  
Current Liabilities:
Accounts payable and accrued liabilities $ 27,101 $ 34,359
Film rent payable 7,708 13,511
Debt – current portion 10,544 8,109
Taxes payable – current 3,031 2,938
Deferred current revenue 8,276 9,850
Other current liabilities     9,515       11,679  
Total current liabilities 66,175 80,446
Debt – long-term portion 108,322 94,862
Subordinated debt, net 27,564 27,554
Noncurrent tax liabilities 12,186 12,274
Other liabilities     28,553       26,649  
Total liabilities     242,800       241,785  

Commitments and contingencies

Stockholders' equity:

Class A non-voting common stock, par value $0.01, 100,000,000
shares authorized, 33,082,295 issued and 21,295,031 outstanding at
March 31, 2018, and 33,019,565 issued and 21,251,291 outstanding
at December 31, 2017

232 231

Class B voting common stock, par value $0.01, 20,000,000 shares
authorized and 1,680,590 issued and outstanding at March 31, 2018
and December 31, 2017

17 17

Nonvoting preferred stock, par value $0.01, 12,000 shares
authorized and no issued or outstanding shares at March 31, 2018
and December 31, 2017

-- --
Additional paid-in capital 146,236 145,898
Retained earnings 35,920 32,679
Treasury shares (23,223 ) (22,906 )
Accumulated other comprehensive income     20,241       20,991  
Total Reading International, Inc. stockholders' equity 179,423 176,910
Noncontrolling interests     4,332       4,331  
Total stockholders' equity     183,755       181,241  
Total liabilities and stockholders' equity   $ 426,555     $ 423,026  

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