Reading International Announces 3rd Quarter 2011 Results

Reading International, Inc. (NASDAQ: RDI) announced today results for its quarter ended September 30, 2011.

2011 Highlights

• our revenue for the 2011 Quarter was $66.7 million, compared to $60.6 million in the 2010 Quarter, an increase of 10.1%, driven primarily by a $6.3 million increase in Australia;
• our revenue for the 2011 Nine Months was $187.9 million compared to $175.6 million in the 2010 Nine Months, an increase of 7.0%, driven primarily by a $16.1 million increase in Australia;
• our EBITDA ⁽¹⁾ for the 2011 Quarter was $11.6 million compared to $9.6 million in the 2010 Quarter, an increase of 20.7%;
• our EBITDA ⁽¹⁾ for the 2011 Nine Months was $31.1 million compared to $24.0 million in the 2010 Nine Months, an increase of 29.9%;
• on June 24, 2011, we replaced our Australian Corporate Credit Facility of $115.8 million (AUS$110.0 million) with BOS International (“BOSI”) with a new credit facility from National Australia Bank (“NAB”) of $110.5 million (AUS$105.0 million). NAB provided us term debt of $94.7 million (AUS$90.0 million) and $10.5 million (AUS$10.0 million) in revolver. Using the term debt and $9.5 million (AUS$9.0 million) of revolver, combined with our cash of $1.6 million (AUS$1.5 million), we paid off our $105.8 million (AUS$100.5 million) of outstanding BOSI debt. On August 2, 2011, we paid down our NAB revolver by $9.9 million (AUS$9.0 million) resulting in a zero balance on that date;
• on August 25, 2011, we purchased a 17-screen multiplex in Murrieta, California for $4.3 million; and
• During the year, we relocated substantial portions of our accounting and administrative operations to available space in our Courtenay Central property in Wellington, New Zealand.

Third Quarter 2011 Discussion

Revenue from operations increased from $60.6 million in the 2010 Quarter to $66.7 million in 2011, a $6.1 million or an 10.1% increase. The cinema revenue increase of $6.6 million or 11.9% was driven by an increase in revenue of $597,000 million in the U.S. and of $6.8 million in Australia offset by a decrease of $834,000 in New Zealand. The revenue increases were primarily related to an increase in box office attendance of 53,000 and 67,000, respectively, an increase in ticket prices in Australia, and an increase in the value of the Australian dollar compared to the U.S. dollar compared to the same period last year. Our New Zealand cinema revenue decreased by $834,000 primarily related to a 142,000 decrease in attendance which was exacerbated by the closure of our Christchurch New Zealand cinema since the February 22, 2011 earthquake in that city. This cinema is scheduled to reopen on November 17, 2011. This revenue decrease was somewhat offset by an increase in the value of the New Zealand dollar compared to the U.S. dollar. The top three grossing films for the quarter in our circuit worldwide were “ Harry Potter and the Deathly Hallows Part II,” “ Transformers 3: Dark of the Moon,” and “ Captain America: The First Avenger,” which among them accounted for approximately 28.0% of our cinema box office revenue. Additionally, our real estate segment revenue decreased by $305,000 due to a drop in live theater revenue in the U.S. for the 2011 Quarter and a nonrecurring adjustment to the Australian amortization of a tenant improvement and straight-line rent during the 2010 Quarter.

As a percentage of revenue, operating expense, at 76.7% in the 2011 Quarter was lower than the 77.5% in the 2010 Quarter.