Reading International Inc · NASDAQ:RDI
Reading International — San Diego Investment Conference (November 2011)
75 slides from Reading International's conference presentation, Nov 17, 2011
Slide 1: San Diego Investment Conference
7 Z READING INTERNATIONAL San Diego Investment Conference November 12, 2001
Slide 2: Safe Harbor Statement
Safe Harbor Statement TQeseees 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
Slide 3: Financial Reconciliations
Financial Reconciliations é; Use of EBITDA; ‘We use EBITDA in our evaluation of our performance since we believe that EBITDA provides a usefil measure of financial performance and value. We believe this principally for the following reasons We believe that EBITDA is an industry comparative measure o
Slide 4: Our Business
READIN Our Business READING We are an internationally diversified company principally focused on the development, ownership, and operation of entertainment and real property assets in the United States, Australia, and New Zealand. Currently, we operate in two business segments: e Cinema Exhibition,
Slide 5: We conduct our cinema operations on four basic premises
z > We conduct our cinema operations on READIN four basic and rather simple premises: ¢ first, notwithstanding the enormous advances that have been made in home entertainment technology, humans are essentially social beings, and will continue to want to go beyond the home for their entertainment, pr
Slide 6: Our real estate activities have historically consisted principally of
Our real estate activities have Trees historically consisted principally of: e 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; e the ac
Slide 7: We manage our worldwide cinema exhibition businesses under various brands
We manage our worldwide cinema exhibition businesses under various different brands: * in the US, under the Reading, Angelika Film Center, Rag Consolidated Amusements, and City Cinemas SH anceuna brands; ¢ in Australia, under the Reading brand; and * in New Zealand, under the Reading and Rialto bran
Slide 8: Titan XC
Titan XC Trees Extreme Cinema ¢ All Digital Projection with the most advanced 3D * 75,000 watt Digital Sound System with 32 surround speakers ¢ First Class Leather Rocking Seats throughout theatre ¢ Reserved Seating * Colossal Screens
Slide 9: Equity Snapshot
Equity Snapshot wai * 21.4 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) (11/02/2011) vs (11/02/2010): $4.18 $609 $496 $7.77 Market Cap (Class A and B) (11/02/2011) vs (11/02/2010): $96.0 mil $117.3mil Sh
Slide 10: Revenue by Business, Revenue by Region
Revenue by Business Revenue by Region Real Esta 8% Total: $229.8 Million Total: $229.8 Million YTD to 12/31/10)
Slide 11: Real Estate
Real Estate 43% Total: $430.3 Million Total: $430.3 Million (As of 12/31/10)
Slide 12: Cinema Exhibition Business
Cinema Exhibition Business Wholly Country Con Un Man Total Owned Australia - Cinemas 18 2 il lo) 21 Screens 138 11 16 ie) 165 New Zealand— Cinemas 8 fe) 2 t°) 10 Screens 44 0 13 ie) 57 United States — Cinemas 23 1 (0) 2 26 Screens 234 6 ie) 9 249 Total - Cinemas 49 3 3 2 57 Screens 416 17 29 9 471 R
Slide 13: Cinema Exhibition Valuation
READING Cinema Exhibition Valuation mnApine (11/02/2011) Ticker Name # of Screen baie are EViRev (ttm) er EBITDA (ttm) RGC Regal Entertainment 6,605, $2,110 NIA 15 88 $464.0 ucs Marcus Corporation 684 $347 1.0 13 73 $67.4 CKEC Carmike Cinemas 2,215 $85 NIA 08 61 $64.0 NK —_Cinemark Holdings 4,983 $2
Slide 14: Real Estate Valuation
READING Real Estate Valuation REARING (as of 11/02/2011) Price/ Ticker Name Market Book Ev/Rev EV/EBITDA EBITDA Cap (mil) (mrq) (ttm) (ttm) (ttm) RDI Reading International $ 96 0.7 1.4 89 $ 37.0 AKR Acadia Realty Trust $ 831 23 9.0 16.5 92.2 ADC Agree Realty Corp. $ 231 14 79 10.9 278 AEC Associated
Slide 15: World Wide Asset Base
World Wide Asset Base Trees New Zealand Australia ie , =" di iZ : a United States
Slide 16: New Zealand Asset Base
New Zealand Asset Base a New Zealand Freehold New Zealand Leasehold ¥ Courtney Central ETRC Y Hastings v Invercargill Palms (Christchurch) Y Lake Taupo - Sails Motor Lodge Porirua ¥ Manukau Queenstown, v¥ Napier Y Rotorua
Slide 17: New Zealand Freehold
New Zealand Freehold US $ values @ 12/31/2010 Real Estate Development Properties Gross Book Value Property[1] Square Footage! Acreage USES) Courtenay Central, Wellington, New Zealand 09 acre s 3,326,000 Lake Taupo, Taupo, New Zealand 05 acre 1,974,000 ‘Manukau, Auckland, New Zealand OS cen contd Aan
Slide 18: oh il
oh il i sid i Pele u. <a wv Vv Theatres - 10 ¥ Titan XC - 1 ¥ 3D Screens - 4
Slide 19: Courtney Central ETRC
Slide 20: Courtney Central ETRC
Slide 21: Lake Taupo - Sails Motor Lodge
Slide 22: Manukau
Manukau Trees
Slide 23: NZ Cinemas
NZ Cinemas Trees Non Financial Statistics Summary Courtenay 10 10 1 4 Hastings Invercargill Napier Palms (Christchurch) Porirua Rotorua Queenstown wBunohu sd wuuno hu N Total NZ Owned Cinemas 44 40 au it
Slide 24: Palms (Christchurch)
Palms (Christchurch) Before the Earthquake v Theatres - 8 ¥ 3D Screens - 2
Slide 25: Palms (Christchurch) After the Earthquake
Palms (Christchurch) Trees After the Earthquake
Slide 26: Queenstown
Queenstown Trees —— ¥ Theatres - 3
Slide 27: Australia Asset Base
Australia Asset Base Australia Freehold CER RR KERR KKK Auburn ETRC v Belmont ETRC v Bundaberg v Burwood v Indooroopilly v Maitland y Melbourne Office y Moonee Ponds v Newnurket v Taringa ohh Waur Ponds - Ground v v v v v we READING Australia Leasehold Charlestown Chimside Park Dandenong Dubbo Eliza
Slide 28: Australia Freehold
Australia Freehold US $ values @ 12/31/2010 Real Estate Development Properties anes EL feel Aart as ar Donel tas Ava seus — on lite Asa a _— mtn, hosing Ava sa rant Tag oe Ana = sss Income Producing Real Estate Holdings Square Feet of improvements Gross Book Vale despa ty: (rental/entertainment) GUS
Slide 29: Auburn ETRC
Auburn ETRC Trees v Theatres - 10 ¥ 3D Screens - 1
Slide 30: Belmont
3elmont v Theatres - 10 ¥ Titan XC - 1 ¥ 3D Screens - 3
Slide 31: Burwood
Slide 32: Indooroopilly
Indooroopilly Eigeeeenme
Slide 33: Newmarket
READING Newmarket
Slide 34: Waurn Ponds
Waurn Ponds a Ne ath EE PLA rt v Theatres - 8 Y 3D Screens - 2
Slide 35: AU Cinemas
AU Cinemas Non Financial Statistics Summary Auburn Belmont Bundaberg Charlestown Chirnside Park Dandenong Dubbo Elizabeth Epping Harbourtown Maitland Mandurah Melton Redbank Rhodes Rouse Hill Sunbury Townsville Waurn Ponds West Lakes NOE DUNoHDOUDRA RE OUHD OO HKES 10 READING [Total AU Owned Cinemas
Slide 36: Chirnside
Chirnside Trees v Theatres - 8 ¥ 3D Screens - 1
Slide 37: Epping
Epping TQeseees ¥ Theatres - 10 ¥ 3D Screens - 1
Slide 38: Harbourtown
Harbourtown es | —_ v Theatres — 14 ¥ 3D Screens - 2
Slide 39: Westlakes
Westlakes v Theatres — 7 ¥ 3D Screens - 1
Slide 40: United States Asset Base
United States Asset Base USA Leashold USA Freehold - \ Mainland a — v AFC Dallas Y Cinema 123 — | % ERY ¥ — Doheney Condo 71 ¥ Beekman “Nii Tae 1 |“ Cal Oaks 7 v¥ Carmel Mtn, Y Orpheum |v Gaskmp Y — Old Railroad Properties ¥ Grossmont Y Royal George Theatre vy Manvi ¥ Paris ¥ — Union Square v Rohner
Slide 41: United States Freehold
United States Freehold US $ values @ 12/31/2010 Income Producing Real Estate Holdings READI Square Feet of Improvements Gross Book Value Property Percentage Leased (rentaV/entertainment) (a US. Dollars) Ginenas 1,23, USA 0/21,000 5 23,570,000 Minetta Lane Theate, USA. 0/9,000 §318,000 NA (Orpheum Th
Slide 42: Cinemas
Cinemas 123 By v Theatres - 3
Slide 43: Royal George
Slide 44: Union Square
Union Square
Slide 45: US Cinemas
US Cinemas Non Financial Statistics Summary "AFC - Dallas ARC- New York Beekman Cal Oats Came! Momtain Cinemas 1,2 3 Gaslamp Grossmont Kashumam Kahala Kapoki Kekso Marina KoOlau Kukui Mall Marie ‘Milani Town Center Paris Peatirdge West Rohnert Parks Tower Town Square ValeyPaza Vilage East Ward [Foti
Slide 46: US Arts Circuit vs. First Run Split
US Arts Circuit vs. First Run Split mnarine [Theatre Name ‘US Art US First Run Total US larC-Datlas 8 [AEC Naw York ‘ 6 Beeman 2 estas "7 7 fcarmel Movatain 2 2 1,23 2 3 aslamp 13 13 t 10 10 Kashomans ‘ ‘ Kahala 8 8 Kkapotei 16 16 co Marina 8 8 Olas 10 10 Hist Mal 4 4 Manville 2 2 (ills Town Cantar
Slide 47: AFC Dallas
AFC Dallas v Theatres - 8
Slide 48: v Theatres -
v Theatres - 6
Slide 49: AFC Plano
AFC Plano [ZA nsnpine Y Theatres - 5
Slide 50: Beekman
Beekman v Theatres - 2
Slide 51: Cal Oaks
Cal Oaks v Theatres - 17
Slide 52: Gaslamp
Gaslamp v Theatres - 15 ¥ 3D Screens - 1
Slide 53: v Theatres —
v Theatres — 12 ¥ 3D Screens - 2
Slide 54: Mililani
Mililani v Theatres — 14 ¥ 3D Screens - 2
Slide 55: Paris
Paris v Theatres - 1
Slide 56: v Theatres -
v Theatres - 16 v 3D Screens - 2
Slide 57: Village East
Village East v Theatres - 7 ¥ 3D Screens - 2
Slide 58: v Theatres -
v Theatres - 16 v¥ 3D Screens - 4
Slide 59: 2010
7 Z READING INTERNATIONAL 2010
Slide 60: Twelve Month 2010 Highlights
READI Twelve Month 2010 Highlights TQeseees = our revenue for the 2010 year was $229.8 million compared to $216.7 million in the 2009 year, an increase of $13.1 million or 6.1%, driven by a $13.4 million increase in Australia and a $2.6 million increase in New Zealand; = on April 30, 2010, we refina
Slide 61: Twelve Month 2010 Highlights
READI Twelve Month 2010 Highlights TQeseees = during July 2010, our wholly owned subsidiary, Craig Corporation, and the IRS agreed to file with the Tax Courta settlement of the IRS’s claim against Craig Corporation with respect to its 1997 tax year, where the IRS conceded 70% of its proposed adjustm
Slide 62: Twelve Month 2010 Highlights
READI Twelve Month 2010 Highlights 7@\"**""** = in 2010, we were advised by our principal lender in Australia that it was curtailing lending activities in that country, and would not be renewing our $111.3 million (AUS$110.0 million) credit facility. On March 9, 2011, we received credit approval fro
Slide 63: Summary Financial Data
Summary Financial Data READI Income Statement Year Ended December 31, ($ in thousands) Revenues Operating expenses Operating income Net income from continuing operations Net income (loss) applicable to common Earnings (loss) Per Share from continuing ops - fully diluted Earnings (loss) Per Share - f
Slide 64: Detailed Financial Data
READING Detailed Financial Data Statements of Operations Twelve Months Ended December 31, {$ in thousands) 2010 2009 Revenue $229,817 $216,685 Operating expense Cinemaireal estate 180,774 167,820 Depreciation and amortization 15,891 15,135 Loss on transfer of real estate from held for sale to contin
Slide 65: Reconciliation of EBITDA to Net Income
Reconciliation of EBITDA Trees to Net Income EBITDA $ 29,782 $ 37,786 Interest expense, net (12,286) (14,572) Income tax provision (14,232) (1,952) Depreciation & amortization (15,891) (15,135) Discontinued operations (23) (33) Net income (loss) $ (12,650) $ 6,094 Source: Company 10k December 31,201
Slide 66: Summary Balance Sheet
Summary Balance Sheet READI z > ($ in thousands) 12/31/2010 12/31/2009 Cash and Cash Equivalents $ 34,568 $ 24612 Receivables 5,470 9,458 Other Current Assets. 64,879 7,379 Total Current Assets 104,917 41,449 Property Held for and Under Development 35,702 78,676 Property & Equipment 220,250 200,749
Slide 67: Third Quarter 2011 Financial Results
Third Quarter 2011 Financial Results
Slide 68: Third Quarter 2011 Highlights
Third Quarter 2011 Highlights TQeseees e 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; e our revenue for the 2011 Nine Months was $187.9 million compared to $175.6 mil
Slide 69: Third Quarter 2011 Highlights
Third Quarter 2011 Highlights TQeseees * onJune 24, 2011, we replaced our Australian Corporate Credit Facility of $115.8 million (AUS$110.0 million) with BOS International (“BOSTI’) with a new credit facility from National Australia Bank (“NAB”) of $110.5 million (AUS$105.0 million). NAB provided us
Slide 70: Summary Financial Data
READI Summary Financial Data Ge maaan z > Income Statement Nine Months Ended Sep 30, ($ in thousands) 2011 2010 Revenues $ 187,909 $ 175,609 Operating expenses 171,604 163,377 Operating income 16,305 12,232 Net income (loss) applicable to common 14,990 (12,120) Earnings (loss) Per Share from continu
Slide 71: Detailed Financial Data
Detailed Financial Data READI z > Statements of Operations ($ in thousands) Nine Months Ended Revenue Operating expense Cinemaireal estate Depreciation and amortization Impairment expenses General and administrative Operating income Interest expense, net Other income Net gain (loss) on sale of asset
Slide 72: Reconciliation of EBITDA to Net Income
Reconciliation of EBITDA Trees to Net Income Nine Months Ended Sep 30, ($ in thousands) 2011 2010 EBITDA $ 31,147 $ 23,971 Interest expense, net (16,616) (10,779) Income tax provision 13,177 (13,669) Depreciation & amortization (12,718) (11,626) Discontinued operations - 17 Net income $ 14,990 $ (12
Slide 73: Summary Balance Sheet
READI Summary Balance Sheet . Naa z > ($ in thousands) 09/30/2011 12/31/2010 Cash and Cash Equivalents $ 26,757 $ 34,568 Receivables 4,664 5,470 Other Current Assets. 14,582 64,879 Total Current Assets 46,003 104,917 Property Held for and Under Development 85,791 35,702 Property & Equipment 212,985
Slide 74: 2001 to 2010 Yearly Financial Trend
2001 to 2010 Yearly Financial Trend In US$ READING $250,000 $200,000 < A £150,000 a ar 28 & S $100,000 22 g z 5 E ssamo & $150,000) | — pot | 2002 2008 2004 2005 2006 2007 2008 2008 2010 lmimAssets $170,595 | $182,772 | $222,866 | $230,227 | $253,057 | $289,231 | $346,071 | $370,076 | $406,417 | $43
Slide 75: Thank You
Reading International — San Diego Investment Conference (November 2011) on 6ix