Reading International Inc · NASDAQ:RDI
Reading International — Shareholder Meeting (December 2020)
56 slides from Reading International's shareholder meeting presentation, Dec 11, 2020
Slide 1: 2020 Annual Stockholders Meeting
2020 ANNUAL STOCKHOLDERS MEETING DECEMBER 8, 2020 Reading International 1
Slide 2: Disclaimers
Reading International DISCLAIMERS Our comments today may contain forward-looking statements and management may make additional forward-looking statements in response to your questions. Such written and oral disclosures are made pursuant to the Safe Harbor provision of the Private Securities Litigati
Slide 3: Financial Reconciliations
FINANCIAL RECONCILIATIONS We use EBITDA in the evaluation of our Company’s performance since we believe that EBITDA provides a useful measure of financial performance and value. We believe this principally for the following reasons: We believe that EBITDA is an accepted industry-wide comparative mea
Slide 4: Diversified Owner/Operator of Real Estate & Cinema Assets in Three Countries
DIVERSIFIED OWNER/OPERATOR OF REAL ESTATE & CINEMA ASSETS IN THREE COUNTRIES Real Estate Portfolio AUSTRALIA 549,580 SF 5 mixed-use centers anchored by Reading Cinemas and 83 other third- party tenants 113,947 SF undeveloped land adjacent to Auburn/Redyard 88,824 SF 2 parcels improved with Reading C
Slide 5: Real Estate & Cinema Revenue: Diversification Supports Through COVID-19
REAL ESTATE & CINEMA REVENUE SYNERGISTIC DIVERSIFICATION STRATEGY SUPPORTS THROUGH COVID-19 2019 2019 *Global Property 8% 92% *Global Cinema United States 55% Australia 37% New Zealand 8% Q3 2020 29% *Global Cinema 71% *Global Property 71% Australia 19% New Zealand 10% United States *Includes inter-
Slide 6: Our Mission: Real Estate & Cinema
Reading International OUR MISSION REAL ESTATE & CINEMA While working to restore our Cinema business, We'll prudently use equity built up in our Real Estate to bridge OUR liquidity needs. We'll use undeveloped non-cash flowing assets THAT WOULD Require material capital to build value, But which have
Slide 7: Committed to Preserving Long Term Stockholder Value
COMMITTED TO PRESERVING LONG TERM STOCKHOLDER VALUE Dual Business Strategy Cinemas & Real Estate Pre-COVID, our relatively stable cinema cash flow allowed us to grow our real estate portfolio without disproportionately increasing our debt levels. Without our historic cinema cash flows, we’re rethink
Slide 8: We Continue to Believe in the Industry
WE CONTINUE TO BELIEVE IN THE INDUSTRY LIKE IT HAS DONE SINCE THE BIRTH OF TELEVISION, THE CINEMA INDUSTRY WILL SURVIVE COVID-19 AND STREAMING Reports indicate moviegoers want to and will return to cinemas post COVID-19. Recent vaccine news should accelerate moviegoers return. Global moviegoers
Slide 9: Strong Response to Unprecedented COVID-19 Crisis
STRONG RESPONSE TO UNPRECEDENTED COVID-19 CRISIS Re-negotiated, or are in the process of re-negotiating, virtually all 48 third party leases, as cinema tenant, to defer/abate occupancy costs As of 11/1/2020, deferred $12.3 million of occupancy costs with repayment terms up to 48 months As of 11/1/20
Slide 10: Global Real Estate Strategy 2021-2022
GLOBAL REAL ESTATE STRATEGY 2021-2022 Considering the impacts of COVID-19, prioritize the health, safety and wellbeing of our customers, tenants, employees and communities to preserve the value of our real estate assets. Develop leasing and capital investment strategies that account for COVID-19 imp
Slide 11: AU/NZ Real Estate Portfolio
AU/NZ REAL ESTATE PORTFOLIO 8 multi-tenanted properties featuring 365,114 RSF (33,920 m2) of third-party space 89 existing third-party tenants occupying 348,098 SF (32,339 m2) 11 current vacant third-party tenant spaces 12,060 SF (1,120 m2) (excludes NZ vacancies) 16 third party leases, 43,691 SF (4
Slide 12: Newmarket Village
newmarket VILLAGE Mixed-use development In affluent Brisbane suburb NEWMARKET VILLAGE ANCHORS AU REAL ESTATE PORTFOLIO 25.6% Reading Cinemas 22.5% Grocery & Drug store 19.3% Food & Beverage 12.6% Office 7.9% Medical related 6.9% Other Retail 3.5% Other Leisure 1.8% Vacant PROPERTY STATISTICS Third P
Slide 13: Auburn/Redyard
AUBURN/REDYARD Mixed-use development in Auburn (SUBURB of SYDNEY) LOCATED ON PARRAMATTA ROAD, MAJOR EAST/WEST ARTERY OF SYDNEY 38.1% Reading Cinemas 30.0% Apparel Retail 11.4% Office 9.5% Gym 6.1% Food and Beverage 4.2% Government Tenant 0.7% Vacant PROPERTY STATISTICS Third Party Tenants 14 Net Ren
Slide 14: Cannon Park
CANNON PARK CINEMA ANCHORED CENTER IN TOWNSVILLE (QLD) 43.6% Leisure 20.9% Reading Cinemas 19.6% Food & Beverage 8.1% Service 3.2% Government Tenant l 4.6% Vacant PROPERTY STATISTICS Third Party Tenants 14 Net Rentable Square Feet 132,440 SF (12,304 m2)* Average Occupancy as of 9/30/2020 95.4%* Weig
Slide 15: The Belmont Common
The Belmont Common CINEMA anchored CENT E R In perth (wa) 75.0% Reading Cinemas 21.7% Food & Beverage 3.3% Vacant PROPERTY STATISTICS Third Party Tenants 4 Net Rentable Square Feet 60,118 SF (5,585 m2)* Average Occupancy as of 9/30/2020 96.7%* Weighted Average Lease Term 4.02 years** * Includes Read
Slide 16: Australian Real Estate Portfolio: COVID-19 and Code of Conduct
Australian Real Estate Portfolio COVID-19 AND CODE OF CONDUCT 84 third party tenants in AU portfolio Commencing in Q2 2020, proactively engaged with third party tenants impacted by COVID-19 by entering rental abatement and deferral deals in line with the Code of Conduct enacted by all AU states THIR
Slide 17: Community Engagement Remains Core to Portfolio Strategy
elevating community BY engagement remains core to portfolio strategy Despite the impacts and uncertainty of COVID-19, continue to execute on our community engagement strategy. Give back to our local community and loyal customers by marketing to their needs by creating memorable in-center experiences
Slide 18: Courtenay Central
Courtenay Central CINEMA ANCHORED CENTER including 84,185 SF OF PARKING Wellington, New Zealand’s capital city Reading owns on a consolidated basis through various subsidiaries, 161,071 square feet of land area. Wellington, a resilient global city, is positively recovering from a short-term softenin
Slide 19: 70.4 Acres of Industrial Land in Manukau/Wiri
70.4 ACRES OF INDUSTRIAL LAND IN MANUKAU/WIRI NEAR AUCKLAND AIRPORT, NEW ZEALAND Two Parcels Light Industrial 64.0 acres (or 2,785,698 SF) of gross undeveloped land Heavy Industrial 6.4 acres (or 277,041 SF) of gross undeveloped land DEVELOPMENT STATUS The Auckland Unitary Plan, which took effect in
Slide 20: U.S. Real Estate Portfolio
U.S. REAL ESTATE PORTFOLIO 73,113 SF of net leasable area (inclusive of anticipated BOMA adjustments) comprised of retail & office 75% interest in a 21,000 SF NYC cinema building and development potential of 80,000 SF, plus potential for additional 16,000 SF of air rights - Cinemas 123 9,000 SF Off
Slide 21: Union Square
44 Union Square 73,113 SF of retail /office space in UNION SQUARE AREA OF New York City Reading has completed construction (subject to punch list items) following the relaxation of COVID-19 shutdown. Project was temporarily paused on March 22, 2020 due to New York State executive orders. Work resume
Slide 22: Cinemas 1,2,3 and Reading Viaduct
CINEMAS 123 New YORK CITY property across from Bloomingdales 7,900 SF gross land area With inclusionary rights, we can build maximum of approximately 96,000 RSF As we wait for COVID-19 conditions to subside, our development plans are on hold New York City has historically shown ability to weather sh
Slide 23: Acres in Coachella, CA
202 ACRES IN COACHELLA, CA planned primarily for residential As of today, the Shadow View Specific Plan calls for a residential community with commercial elements. RDI owns 50% of the 202 acres Strategically located south of Dillon Road between I-10 and Highway 86S in the highly rated Desert Sands S
Slide 24: 5995 Sepulveda
5995 Sepuleda 24,000 SF Office Building Culver city, California Culver City and neighboring Playa Vista are now home to Google, Apple, Amazon, HBO and TikTok One full floor serves as RDI corporate headquarters Second floor (12,152 SF) leased to WWP Inc., a leading beauty and personal care packaging
Slide 25: Three Live Off-Broadway Theatres
Three Live Off-Broadway Theatres New York City & Chicago Property under all live theatres owned in fee Since March 202 0, all have been closed by government directive due to COVID-19 New York City theaters expected to reopen in Q2 2021 Chicago theater expected to reopen Q1 2021 Minetta Lane Theatre
Slide 26: Global Cinema Strategy 2021-2022
GLOBAL CINEMA STRATEGY 2021-2022 Build long term guest confidence in safe and responsible cinema operations following 2020’s COVID-19 crisis Grow cinema portfolio through a measured and disciplined approach to future renovations and new opportunities Improve operating income by focusing on strategic
Slide 27: Global Cinema Portfolio
GLOBAL CINEMA PORTFOLIO 60 movie theaters (498 screens) across Australia, New Zealand and the United States AUSTRALIA 24 locations/190 screens 2019 – 4th largest exhibitor in terms of box office* Operations began in 1996 – over 24 years of operating experience NEW ZEALAND 12 locations/70 screens 201
Slide 28: Unique Cinema Portfolio Characteristics vs. Cinema Peers
Unique Cinema Portfolio Characteristics vs. Cinema Peers INTERNATIONAL PORTFOLIO AU AND NZ ARE TWO STABLE ECONOMIES WITH STRONG LOCAL FILM PRODUCTION SUPPORTING A PROGRAMMING SLATED LED BY HOLLYWOOD MOVIES • 48% of our Total Theater Revenues generated in Australia and New Zealand* OWNERSHIP VS. LEAS
Slide 29: Global Cinemas 2020 Timeline: COVID-19 Closures and Reopenings
Global Cinemas 2020 Timeline - COVID-19 related TEMPORARY closures and reopenings* Closure MAR 16 – MAY 27 All 60 global cinemas closed Reopening MAY 27 – JUN 3 All NZ reopened with social distancing** Social distancing restriction removed on Jun 8. Reopening JUN 10 – JUL 1 All AU reopened with soci
Slide 30: Enhanced Health and Safety Measures
READING’s Global Cinemas have implemented enhanced health and safety measures AS a result of COVID-19 Masks required by all employees and guests U.S. – All reopened theaters AU – Not applicable NZ – Not applicable Social Distancing in auditoriums (seating capacity reduced in line with local regulati
Slide 31: No Outbreak of COVID-19 Traced to Cinemas
AS OF OCTOBER 19, 2020, PAtrick von SYCHOWSKI Reported "An Extensive study undertaken by celluloid junkie has found that not A SINGLE OUTBREAK OF COVID-19 ANYWHERE ACROSS THE GLOBE CAN BE TRACED TO A CINEMA, MULTIPLEX OR PUBLIC SCREENING VENUE." Source: CJ Analysis: the number of COVID-19 Outbreaks
Slide 32: China's 2020 Box Office Provides Confidence in Recovery
CHINA’S 2020 BOX OFFICE PROVIDES CONFIDENCE IN COVID-19 RECOVERY As we look to China's 2020 Box Office recovery, we are confident in the future recovery of the U.S. Box Office. Effectively containing COVID-19, China has reopened cinemas at 75% of seating capacity. Chinese filmgoers have returned to
Slide 33: Global Cinema Strategy: Evolving Theatrical Window
GLOBAL CINEMA STRATEGY EVOLVING THEATRICAL WINDOW COVID-19 has caused material disruption to the distribution of entertainment, including the theatrical release of movies. Today, both film companies and exhibitors are making decisions that reflect the extraordinary circumstances. Our booking decisio
Slide 34: Global Cinema Strategy: Evolving Theatrical Window
GLOBAL CINEMA STRATEGY EVOLVING THEATRICAL WINDOW Major Studios/Specialty Distributors continue to publicly and privately recognize that the event of watching a movie in a Big Screen environment with a shared audience has played and will continue to play an essential part in the distribution of ente
Slide 35: Angelika: Our Specialty Brand
ANGELIKA OUR SPECIALTY BRAND Inspired by the Angelika Film Center in NYC, the programming of our Angelika brand focuses on International and independent films and documentaries. The December 201 9 acquisition of the State Cinema in Tasmania, the fifth highest grossing arthouse in AU, supports an Int
Slide 36: Significant Investment in Cinema Portfolio, Ready for Recovery
After SIGNIFICANT investment in CINEMA POR T FOLIO OVER THE LAST FIVE YEARS, READY FOR POST COVID-19 RECOVERY RECLINER SEATING 39% of U.S. screens feature Luxury Recliner Seating 26% of AU/NZ screens feature Luxury Recliner Seating PREMIUM SCREENS – TITAN LUXE OR TITAN XC 33% of US theaters feature
Slide 37: Comscore analyst quote on the cinema experience
“The immersive bigger-than-life movie theatre experience remains a singular, essential and relevant part of the entertainment diet of consumers around the world. The gold standard experience created by cinemas combined with amazing studio films will continue to draw enthusiastic crowds now and in th
Slide 38: Investment in Cinema Portfolio: Acquisitions and New Cinemas
After SIGNIFICANT investment in CINEMA POR T FOLIO OVER THE LAST FIVE YEARS, READY FOR POST COVID-19 RECOVERY ACQUISITIONS/LEASED EXISTING CINEMA SPACES December 201 9 – acquired the iconic State Cinema featuring 10 screens, a rooftop cinema and bar, a large café, and a bookstore. The State Cinema,
Slide 39: New Reading Cinemas Opens in Queensland on Boxing Day 2020
Continued execution OF global cinema strategy through COVID-19 PERIOD NEW STATE-OF-THE-ART READING CINEMAS OPENS IN QUEENSLAND ON BOXING DAY 2020 Despite COVID-19 impacts, together with our landlord, we worked to complete the fit-out of our new Reading Cinemas at DFO Jindalee 6 screens with luxury r
Slide 40: New Initiatives Supporting Post COVID-19 Growth
While closed, we developed new initiatives that will support post covid-19 growth ANGELIKA ANYWHERE Launching streaming service with arthouse focus EATS AT HOME Began food delivery service from key F&B cinemas PRE-ORDER F&B ON APP To promote contactless experience, soft launched F & B ordering app P
Slide 41: Launching Angelika Anywhere
We’re launching Angelika Anywhere a streaming service and digital video store curated for film lovers and inspired by the community that, for the last 30 years, has supported New York City’s Angelika Film Center, the most recognized dedicated arthouse in the world. Service will offer transactional v
Slide 42: Cinema Eats at Home Service
EARLY IN COVID-19 PANDEMIC, we LAUNCHED CINEMA EATS AT HOME SERVICE To maintain brand awareness, including promoting our elevated F&B offers, and to assist with retained staff payroll costs, select U.S. cinemas offered cinema food favorites for take-out or delivery to home via Uber Eats app. Reading
Slide 43: F&B Menu Ordering from App
To promote contactless experience, soft launched F&B MENU from APP To provide contactless experience during COVID-19 and to improve operational efficiency, soft launched full F&B menu ordering from Angelika app – Q3 2020 By end of Q4 2020, roll out to other U.S. cinemas By end of Q1 2021, will offer
Slide 44: Drive-In Development
DRIVE-IN DEVELOPMENT COVID-19 social distancing requirements have led to the resurgence of the Drive-in experience We are in the final planning stages of launching a drive-in at one of our existing theaters in California Capacity – approximately 90 cars Limited capital investment City requires tempo
Slide 45: Bespoke Private Theater Rentals
LAUNCHED bespoke private THEATER RENTALS EARLY IN COVID-19 CRISIS To cater to friends & family only groups As communities faced COVID-19 challenges, we took into account the varying comfort levels of different audience members Private VIP screenings of library titles selected by guests Private audit
Slide 46: Creative Programming
RELEASE SCHEDULE CHANGES LEAD to OUR CREATIVE PROGRAMMING Due to lack of content from the major studios during COVID-19, our global programming teams were able to create programs or series based on library titles from the major studios to keep audiences engaged with our brands during the early days
Slide 47: Financial Review
FINANCIAL REVIEW Gilbert Avanes Executive Vice President, Chief Financial Officer & Treasurer Reading International 47
Slide 48: Covenant Modifications with Principal Lenders
FOLLOWING ONSET OF COVID-19, WORKED WITH PRINCIPAL LENDERS TO Obtain COVENANT modifications Bank of America – U.S. Certain financial covenants modified and temporarily suspended testing of other covenant tests through measurement period ending September 30, 2021 New covenant test added requiring mai
Slide 49: Summary Financial Data: Year Ended December 31
SUMMARY FINANCIAL DATA STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, ($ in thousands, except per share data) 2019 2018 Revenues $ 276,768 $ 308,931 Operating Income 9,123 23,624 Interest Expense, net 7,904 6,837 Income Tax Expense 28,837 3,298 Net Income (Loss) Attributable to Common Shareholders
Slide 50: Summary Financial Data: Nine Months Ended September 30
SUMMARY FINANCIAL DATA STATEMENT OF OPERATIONS NINE MONTHS ENDED SEPTEMBER 30, ($ in thousands, except per share data) 2020 2019 Revenues $ 62,841 $ 207,886 Operating Income (Loss) (46,610) 7,209 Interest Expense, net 6,176 5,924 Income Tax Expense (Benefit) (5,070) 1,101 Net Income (Loss) Attributa
Slide 51: Summary Balance Sheet
SUMMARY BALANCE SHEET ($ in thousands) 9/30/2020 12/31/2019 12/31/2018 Cash and Cash Equivalents $ 27,775 $ 12,135 $ 13,127 Receivables 3,300 7,085 8,045 Other Current Assets 11,072 7,779 9,086 Total Current Assets 42,147 26,999 30,258 Operating Property, Net 340,167 258,138 257,667 Operating Lease
Slide 52: Reading International Debt Summary, December 31, 2019
READING INTERNATIONAL DEBT Debt Summary AS OF DECEMBER 31, 2019 ($ in thousands) Corporate and/or Property Debt Expiration Year Contractual Capacity Capacity Used Unused Capacity Trust Preferred Securities C 2027 $ 27,913 $ 27,913 $ - U.S. Corporate Office P 2027 9,260 9,260 - Union Square Construct
Slide 53: Reading International Debt Summary, September 30, 2020
READING INTERNATIONAL DEBT Debt Summary AS OF SEPTEMBER 30, 2020 ($ in thousands) Corporate and/or Property Debt Expiration Year Contractual Capacity Capacity Used Unused Capacity Trust Preferred Securities C 2027 $ 27,913 $ 27,913 $ - U.S. Corporate Office P 2027 9,246 9,246 - Union Square Construc
Slide 54: 2001-Sep 2020 TTM Yearly Financial Trend
2001-SEP 2020 TTM YEARLY FINANCIAL TREND in US$ Notes: Data presented above have been adjusted to reflect adjustments, if any, to prior years based on the latest K’s and Q’s. *Asset Value reflects amounts set forth in Reading public filings (10-Ks and 10-Qs). In many instances, the amounts do not re
Slide 55: Core Values & Guiding Principles
THE CORE VALUES & GUIDING PRINCIPLES INSPIRED BY OUR FOUNDER WILL SUPPORT US THROUGH THE COVID-19 CRISIS AND RECOVERY JAMES J. COTTER SR. ENTREPRENEURIAL approach to our business EDUCATED analysis underpins our strategies ENGAGING our guests is paramount to our success EXECUTION is a focus of our t
Slide 56: Thank You
THANK YOU WE ARE STILL HERE OUR REAL ESTATE IS STRONG OUR CINEMAS ARE READY TO GO! Reading International 56
Reading International — Shareholder Meeting (December 2020) on 6ix