Reading International Inc · NASDAQ:RDI
Reading International — Shareholder Meeting (May 2014)
60 slides from Reading International's shareholder meeting presentation, May 16, 2014
Slide 1: Annual Shareholders Meeting
Annual Shareholders Meeting * INTERNATIONAL Presented on May 15, 2014
Slide 2: Safe Harbor Statement
Safe Harbor Statement 1 Naa 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 Litigation Ref
Slide 3: Financial Reconciliations: Use of EBITDA
READING Financial Reconciliations aueras Use of EBITDA; We use EBITDA in our evaluation of our 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 industry comparati
Slide 4: Our Business
Our Business nna Develop, own, and operate internationally diversified entertainment and real property assets Q Cinema Exhibition LJ Real Estate > Real estate development
Slide 5: Our Business
READING Our Business nna Cinema Exhibition: > 56 Cinemas, 467 of screens > 12" largest by market share in U.S., 26 Cinemas / 249 screens > 4" largest by market share in Australia, 21 Cinemas / 165 screens > 3" largest by market share in New Zealand, 9 Cinemas / 53 screens Real Estate: > Undeveloped
Slide 6: Business Synergies
READING Business Synergies ini Our two business segments complement one another : () Comparatively consistent Cinema cash flows allow opportunistic acquisition and holding of real estate assets. Q) Comparatively consistent Cinema cash flows help fund front-end real estate development cash demands. O
Slide 7: Cinema Exhibition
Cinema Exhibition 1 Naa We manage our worldwide cinema exhibition businesses under various different brands: Angelika Film Center USA SD) ANcEUKAR LU CENTER Rialto Cinemas NZ RULTOCINEMAS
Slide 8: Real Estate
Real Estate Q READING INTERNATIONAL the ownership of fee or long-term leasehold interests in properties used in our cinema exhibition activities or which were acquired for the development of cinemas or cinema-based real estate development projects; the leasing to shows of our live theaters; and the
Slide 9: Equity Snapshot
READING Equity Snapshot READING ¢ 22.0 mil shares Class A Nonvoting Common, ¢ 1.5 mil shares Class B Voting Common NASDAQ Listed: This Year Prior Year RDI RDI Price (Class A and B) (05/14/2014) vs. (05/14/2013): $7.54 $955 $603 $650 Market Cap (Class A and B) (05/14/2014) vs. (05/14/2013): $180.2 mi
Slide 10: Business Mix
| 7 READING Business Mix 1 Naa Assets by Business Revenue by Business — Total: $386.8 Million Total: $258.2 Million (12/31/13)
Slide 11: Geographic Mix
Geographic Mix Se Australia 39% [42%] Australia 51% [53%] Total: $386.8 Million Total: $258.2 Million
Slide 12: Cinema Exhibition Valuation
Cinema Exhibition Valuation READING (as of 5/07/2014) ; Cinema Cinema Cinema EBITDA Ticker Name #ofScreen Revenue EBITDA est. / Screen (ttm) (mil) (ttm) (mil) (ttm) RDI Reading International 438 $ 238.1 $ 32.8 $ 74,929 Market Price/ Ev/ EBITDA/ Ticker Name # of Screen Cap Book EV/Rev EBITDA EBITDA S
Slide 13: Real Estate Valuation
Real Estate Valuation READING (as of 5/07/2014) Property Propert Ticker Name Revenue EBITDAest. (ttm) (ttm) RDI Reading International $ 18.6 $ 3.2 ; Market Ca Price/ Book EV/Rev EV/EBITDA EBITDA Ticker Name (mil) P (rq (tm) (ttm) ttm) AHD Amalgamated Holdings Limited $ 1,450 1.6 1.7 18 $ 117.3 AEC A
Slide 14: Cinema Exhibition
5 e e,e READING Cinema Exhibition remeron Country Wholly Con Un Man Total Angelika Film Center US& Ee Australia - Cinemas 18 2 1 0 21 “TW cC I. Screens 138 11 16 0 165 yn) na (ONSOL ule THEATRES New Zealand - Cinemas 7 0 2 0 9 Screens 40 0 13 0 53 United States - Cinemas 24 1 0 1 26 Screens 242 3 6)
Slide 15: Box Office Revenue
READING Box Office Revenue sees United States Australia and New Zealand jamal Industry - CAGR 3.55% fi>Reading - CAGR 10.96% ; eat! 12.0 180.0 a i A ———— 160.0 « aa we 140.0 Pa ‘ 2 8.0 120.0 & © & a 3 - 100.0 & * 5 60 g y 80.0 3 5 e & Ss 40 - - 60.0 % =< ES $ 40.0 ~ 20 +4 20.0
Slide 16: US Cinemas
US Cinemas US Box Office (US $B) United States Box Office Revenue Industry - CAGR 3.18% =@=Reading - CAGR 12.43% 10.0 100.0 9.0 90.0 8.0 80.0 7.0 70.0 6.0 60.0 5.0 50.0 4.0 40.0 3.0 30.0 2.0 20.0 1.0 10.0 (HI $ SN) e240 xog Bulpesy 26 Cinemas a PF a: READING 1 Freehold Cinemas INTERNATIONALE 25 Leas
Slide 17: Australia Cinemas
20 Cinemas A | oo ss > 2Freehold ETRC icrarrs In e m a S > 3 Freehold Cinemas > 15 Leasehold Cinemas Australia Box Office Revenue alndustry - CAGR 7.22% Reading - CAGR 8.37% 14 80.0 Bw; \ can 1.2 Mi 70.0 “ > fownsville 60.0 Bundaberg 1.0 A= = | 2 a a 5 ; West L ® estern : 4 50.0 rd \ INVGEATER Redba
Slide 18: NZ Cinemas
NZ Cinemas NZ Box Office (US $B) 0.2 New Zealand Box Office Revenue (Industry - CAGR 8.69% 18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 Reading - CAGR 15.02% (HIN $ S/n) 22440 Xog Sulpeey 7 Cinemas ee READING > 1 Freehold ETRC INTERNATIONAL > 3 Freehold Cinemas > 3 Leasehold Cinemas Wasay or istanos , w
Slide 19: Cinema Growth Strategy
Cinema Growth Strategy Ward Q Large Circuit Acquisition Q Largest Grossing Box Office in Hawaii Q = 16 Screens - 100% digitalized ¥ 7 Dolby Digital 3D v¥ TITAN XC Screen vy DOLBY ATMOS v Reserved seating Cal Oaks Q Single Cinema Acquisition Q = Acquired end of July 2011 Q $4.2M Q = 17Screens - 100%
Slide 20: Australia, New Zealand, United States
be New Zealand United States =e Australia ‘yw a r _ _ ll Y ’ _ 7 ~~. q ~ A, % f |
Slide 21: Australia Asset Base
Australia Asset Base Australia Freehold % RR RH RK Auburn ETRC Parti Belmont ETRC Bundaberg Maitland Melbourne Office Newmarket Waurn Ponds - Ground Lease KERR ERR KERR KKK READING INTERNATIONAL Australia Leasehold Charlestown Chirnside Park Dandenong Dubbo Elizabeth Epping Harbourtown Mandurah Melt
Slide 22: Australia Asset Base
READING Australia Asset Base [iawiai Cinema Assets > 21 Cinemas / 165 screens — = ZS Real Estate: > Undeveloped Real Estate Properties > Acreage 56.5 > Gross Book Value $59.4Mil > Developed Real Estate Properties > Rental 168,000 square footage > Entertainment 124,000 square footage > Parking Struct
Slide 23: Auburn ETRC
Auburn ETRC READING Bought the property in 1998 Opened 2000 Real Estate Development Properties QO 2.6 acres; Book Value $1.8Mil Income Producing Real Estate Holdings QO 60,000 rental and 57,000 entertainment Q Book Value $30.6Mil 9 Screens, Gold Lounge, Dolby Digital 3D Stores are Fully leased
Slide 24: Burwood property
= 4 READING INTERNATIONAL Bought the property in 1996 former quarry and brick manufacturing plant Located within a Major Activity Centre and identified by Whitehorse City Council as Priority Development. 50.6 acres ; AUS$52.1Mil Book Value
Slide 25: Reading International Announces AUS$65.0 million Burwood Property Sale
Reading International Announces AUS$65.0 million Burwood, Australia Property Sale — 4 READING INTERNATIONAL Los Angeles, California, - (BUSINESS WIRE) — May 12, 2014 - Reading International, Inc. (NASDAQ:RDJ) announced today that we have entered into a contract to sell our undeveloped 50.6 acre parc
Slide 26: Newmarket
Newmarket Se es se os se es nats dat
Slide 27: AU Cinemas Non Financial Statistics Summary
AU Cinemas Non Financial Statistics Summary (Theater Name #of Auditorium Stadium Auditorium Titan XC Digital 3D Digitalized Auburn Belmont Bundaberg Charlestown Chirnside Park Dandenong Dubbo Elizabeth Epping Harbourtown Maitland Mandurah Melton Redbank Rhodes Rouse Hill Sunbury Townsville Waurn Pon
Slide 28: New Zealand Asset Base
New Zealand Asset Base ail New Zealand Freehold New Zealand Leasehold Courtenay Central ETRC : v Palms (Christchurch) Invercargill v Porirua = Manukau Napier ¥ Queenstown Rotorua Lake Taupo KRNNNNLN A
Slide 29: New Zealand Asset Base
New Zealand Asset Base ail Cinema Assets > 9 Cinemas / 53 screens : ie Ee | Real Estate: fi ic yf > Undeveloped Real Estate Properties > Acreage 72 > Gross Book Value $21.8Mil > Developed Real Estate Properties Rental 63,000 square footage Entertainment 137,000 square footage Parking Structure Space
Slide 30: Courtenay Central ETRC
Courtenay Central ETRC | High Quality Entertainment and Retail Centre Bought the property in 1998 Opened 2002 Valea re Wr) One of the largest grossing cinemas in New Zealand : is 10 Screens, Gold Lounge, TITAN XC, Dolby Digital 3D Income Producing Real Estate Holdings QO) 33,000 rental and 76,000 en
Slide 31: Courtenay Central Car Parks
Courtenay Central Car Parks agen Multi Story/Surface Parking QO) Existing car park produces strong cash flow; integration into development Q) Planned supermarket would fill current under utilized ground surface parking lot QO Following the recent earthquake in Wellington, New Zealand which resulted
Slide 32: Courtenay Central supermarket project
oO Oo oO 43 a ‘ 0 OO Project will open in late 2015 or early 2016 42,000 sq. ft. Countdown Supermarket The countdown brand is operated by Progressive Enterprises, who are owned by Woolworths, one of the largest and most solid companies in Australia. Reconfigures about 10,000 sq. ft. of existing spac
Slide 33: READING
READING INTERNATIONAL Endo, 28228 05 Mediate
Slide 34: NZ Cinemas Non Financial Statistics Summary
NZ Cinemas Non Financial Statistics Summary (Theater Name # of Auditorium Stadium Auditorium Titan XC Digital 3D Digitalized Courtenay Invercargill Napier Palms Porirua Rotorua Queenstown [Total NZ Owned Cinemas READING INTERNATIONAL DAWN'PLANETIApES:
Slide 35: States Asset Base
States Asset Base sans USA Freehold Cinema 123 Coachella Minetta Lane Orpheum Old Railroad Properties Royal George Theatre Union Square AAA A AA USA Leasehold Mainland AFC Dallas AFC Mosaic AFC NY AFC Plano Beekman Cal Oaks Carmel Mtn. Gaslamp Grossmont Manville Paris Rohnert Park Tower Town Square
Slide 36: United States Asset Base
United States Asset Base metus Cinema Assets > 26 Cinemas / 249 screens Real Estate: > Undeveloped Real Estate Properties > Acreage 202 > Gross Book Value $4.0Mil >» Developed Real Estate Properties > Rental 59,000 square footage > Entertainment 75,000 square footage > Parking Structure Space 55 > G
Slide 37: Cinemas 1, 2 & 3
READING Cinemas 123 Currently sans Bought the property in 2005 3 screens, two of which are 3D Ooo Currently zoned for Restricted Central Commercial and General Residents Q 21,000 sq. ft.; Book Value $23.8Mil REGENCY Sib Fc < HOSP 61 61 E61 TSTTSS ee Re) 77 15395561 44 CHILDREN'S — E e — ALLDAYSCH 69
Slide 38: Cinemas 1, 2 & 3 Development Example
Cinemas 123 READING Development Example We are currently studying the feasibility of redeveloping our Cinemas 1, 2 & 3 property into a commercial and/or residential high rise. Located in the Upper East of the Borough of Manhattan Neighborhood is Manhattan’s premier luxury retail and residential comm
Slide 39: Union Square
READING INTERNATIONAL Union Square QO Bought the property in 2001 QO) Live theatre with 499 seat, and varies retail tenants U1 21,000 sq. ft. rental; 17,000 sq. ft. of entertainment; Book Value $8.9Mil 140 FIFTH 134 FIFTH | 130 FIFTH 122 FIFTH 118-20 FIFTH 14 FIFTH F 110 FIFTH a 104 FIFTH fioo FIFTH
Slide 40: Union Square Development Example
Union Square READING Development Example Heart of the Union Square neighborhood, with unobstructed view of the Union Square Park. Landmarked on October 29, 2013 We are currently studying the feasibility of redeveloping our : Union square property within the constrains of the ge ae landmarking of the
Slide 41: Coachella
Coachella READING Looking Southwest toward Parcel 17 (Route 86-S Westerly Border) Palm Springs Thousand Palms Cathedral City Bermuda Dunes Palm Desert Fa indian Wels indo. \@ J m 8 La Quinta Coachella mies BINe
Slide 42: US Cinemas Non Financial Statistics Summary
US Cinemas READING Non Financial Statistics Summary INTERNATIONAL Digitalization| [Theater Name Digital 3D | Digitalized |over the Next 12Mth AFC - Dallas AFC - Mosaic AFC - New York AFC - Plano Beekman Cal Oaks Carmel Mountain Cinemas 1,2 3 Gaslamp Grossmont Kaahumanu Kahala Kapolei Koko Marina Ko
Slide 43: US Arts Circuit vs. First Run Split
US Arts Circuit vs. First Run Split (Theatre Name US Art US First Run AFC - Dallas AFC - Mosaic AFC - New York AFC - Plano Beekman Cal Oaks Carmel Mountain. Cinemas 1,2 3 Gaslamp Grossmont Kaahumanu Kahala Kapolei Koko Marina Ko Olau Manville Mililani Town Center Paris Pearlridge West Rohnert Park T
Slide 44: Unlocking Value
= Unlocking Value - Moonee Ponds AU$23.0 Mil - Burwood AU$65.0 Mil = Investor Presentations - IDEAS Investor Conference Aug 27, 2013 - Wedbush Securities California Dreamin’ Consumer Management Access Conference Dec 10, 2013 « Gabelli & Company 6th Annual Movie & Entertainment Conference June 5, 201
Slide 45: 2013 Financial Results
2013 Financial Results INTERNATIONAL
Slide 46: Twelve Month 2013 Highlights
READING Twelve Month 2013 Highlights Invenmarionat our revenue for the 2013 Twelve Months was $258.2 million compared to $254.4 million in the 2012 Twelve Months, an increase of $3.8 million or 1.5%, driven primarily by increased revenue from our U.S. cinema operations; " our EBITDA for the 2013 Qua
Slide 47: Twelve Month 2013 Highlights
READING Twelve Month 2013 Highlights mrennariewat we paid off our $9.0 million loan with Sutton Hill Capital, LLC which had an interest of 8.25%. = in October 2013, we entered into a definitive purchase and sale agreement for the sale of our properties located in Moonee Ponds, Victoria, Australia.
Slide 48: Summary Financial Data
READING Summary Financial Data merenwarionss Income Statement Year Ended December 31, ($ in thousands) 2013 2012 Revenues $ 258,221 $ 254,430 Operating expenses 237,286 235,303 Operating income 20,935 19,127 Net income (loss) from continuing operations 12,718 2,282 Net income (loss) applicable to co
Slide 49: Reconciliation of EBITDA to Net Income
Reconciliation of EBITDA READING INTERNATIONAL to Net Income Twelve Months Ended December 31, ($ in thousands) 2013 2012 EBITDA $ 39,217 $ 36,800 Interest expense, net (10,037) (16,426) Income tax benefit (expense) (4,942) (4,904) Depreciation & amortization (15,197) (16,049) Adjustment for disconti
Slide 50: Summary Balance Sheet
Summary Balance Sheet nnapine ($ in thousands) 12/31/2013 12/31/2012 Cash and Cash Equivalents and Time Deposits $ 37,696 $ 46,531 Receivables 9,087 8,514 Other Current Assets 8,334 10,673 Total Current Assets 55,117 65,718 Operating property, net 191,660 202,778 Land held for sale 11,052 Investment
Slide 51: First Quarter 2014 Financial Results
First Quarter 2014 INTERNATIONAL Financial Results
Slide 52: First Quarter 2014 Highlights
First Quarter 2014 Highlights mreuaans = Our EBITDA for the 2014 Quarter was $7.5 million compared to $6.9 million for the 2013 quarter representing an increase of $595,000 or 8.6%. to | |= Our aggregate indebtedness decreased from $201.2 million at March 31, 2014 to $168.9 million at March 31, 2014
Slide 53: Summary Financial Data
READING Summary Financial Data freauarions Income Statement Three Months Ended Mar 31, ($ in thousands) 2014 2013 Revenues $ 58,053 $ 59,567 Operating expenses 55,472 57,033 Operating income 2,581 2,534 Net loss applicable to common shareholders (215) (668) Loss Per Share from continuing ops — Basic
Slide 54: Reconciliation of EBITDA to Net Loss
Reconciliation of EBITDA READING INTERNATIONAL to Net Loss Three Months Ended Mar 31, ($ in thousands) 2014 2013 EBITDA $ 7,479 $ 6,884 Interest expense, net (2,297) (2,673) Income tax provision (1,592) (889) Depreciation & amortization (3,805) (3,990) Net loss $ (215) $ (668)
Slide 55: Summary Balance Sheet
Summary Balance Sheet nnapine ($ in thousands) 03/31/2014 12/31/2013 Cash and Cash Equivalents $ 33,594 $ 37,696 Receivables 7,979 9,087 Other Current Assets 8,179 8,334 Total Current Assets 49,752 55,117 Operating property, net 194,490 191,660 Land held for sale 11,479 11,052 Investment and Develop
Slide 56: Financial Trend
Financial Trend INTERNATIONAL
Slide 57: 2013 Q1 vs. 2014 Q1
2013 Q1 vs. 2014 Q1 Revenue and Adj EBITDA $450,000 $400,000 $350,000 $300,000 $250,000 (000's) $200,000 $150,000 $100,000 $50,000 $- Asset and Debt Assets Debt Qi 2013 wQi 2014 $427,367 $387,395 $200,446 $168,074 (000's) $70,000 $60,000 | — $50,000 +—— $40,000 $30,000 }— $20,000 +—— $10,000 $- +— R
Slide 58: 2001 to 2013 Yearly Financial Trend
2001 to 2013 Yearly Financial Trend In USS READING INTERNATIONAL Revenue & Adj EBITDA (000's) $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $(50,000) La Assets Sea Debt =o Revenue 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Proforma $170,595 | $182,772 $222,866 | $230,227
Slide 59: Selected Financial Data
READING Selected Financial Data mates YTD March As of or for the Year Ended December 31, 2014 2013 2013 2012 2011 2010 Revenue $ 58,053 $ 59,567 $ 258,221 $ 254,430 $ 244,979 $ 229,322 (Operating income $ 2,581 $ 2,534 $ 20,935 $ 19,127 $ 18,178 $ 13,069 Income (loss) from discontinued operations $
Slide 60: Thank You
THANK YOU INTERNATIONAL
Reading International — Shareholder Meeting (May 2014) on 6ix