Reading International Inc · NASDAQ:RDI
Reading International — Shareholder Meeting (November 2015)
46 slides from Reading International's shareholder meeting presentation, Nov 10, 2015
Slide 1: 2015 Annual Stockholders Meeting
Slide 2: James J. Cotter, Sr. (1938 - 2014)
JAMES J. COTTER, Sr. (1938 - 2014)
Slide 3: Slide 3
Slide 4: Safe Harbor Statement
SAFE HARBOR STATEMENT 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 Reform A
Slide 5: 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 6: Business Review
seem IN j BUSINESS REVIEW Ellen Cotter, Interim President & CEO ‘This presentation is intendedto set outa summary of the projects on which management is currently working and management's plan for moving our Company forward. Manyof the projects are in their early stages and will be subject to variou
Slide 7: Company Snapshot
COMPANY SNAPSHOT two businesses in three countries Cinemas - US, AU, NZ—57 theaters (468 screens)" Real Estate Development & Management - US, AU, NZ * 5 Key Value Creation Projects + 11 Operating Properties + 3 Future Development Projects NASDAQ: RDI &RDIB Market Cap: $377 million (as of 11/06/2015)
Slide 8: 2001 - 2015 Yearly Financial Trend in US$
2001 - 2015 YEARLY FINANCIAL TREND in Uss $200,000 $250,000 $500,000 ii $200,000 150,000, | $100,000 REVENUE & ADJ EBITDA (000'S) $50,000 | eb t t | t [ | I stsoo00) | 1 oper | zon | 200 | 2008 | 2008 | 2008 | 2007 | 2008 | 2009 | 2010 oz | ro | aoe | 208 | dium |piawe (Rao |S |p | Hagart [TAO | Hos
Slide 9: Stockholder Returns
STOCKHOLDER RETURNS’ 250% 200% 150% 100% 50% 0% 50% ‘The Company has been included in the Russell 2000 index since June 2012 Class A Stock price has increased 195% over the last 40 months Closing price on November 6, 2015: $16.21, READING INTERNATIONAL ——RUSSELL 2000 ——NASDAQ CAPITAL MARKET COMPOSIT
Slide 10: Synergistic Business Plan
SYNERGISTIC BUSINESS PLAN We synergistically bring together real estate based entertainment & real estate. * Ourcinemas provide steady cash flow to support our real estate development activities.
Slide 11: Core Values & Guiding Principles
CORE VALUES & GUIDING PRINCIPLES ENTREPRENEURIAL approach to our business EDUCATED analysis EXECUTION — driven to successfully connect people to our assets ENJOYMENT — we're passionate about our businesses & want our guests to enjoy them as much as we do EXTENDED VIEW — we have a long-term strategy
Slide 12: Highly Experienced Management Team
HIGHLY EXPERIENCED MANAGEMENT TEAM | ©*?srienced & nimbleteam who understands our existing portfolio, together with new management bringing experience and fresh perspective nane/title ELLEN COTTER Chairmanof soma 5 eG Interim CEO & Present Chief Operating Oficer (US Cinemes) € —— Q DEV GHOSE 25 mont
Slide 13: Snapshot of Global Exhibition Segment - US Cinemas
SNAPSHOT OF GLOBAL EXHIBITION SEGMENT 11 largest US exhibitor by box office ‘Theaters: 27 ‘Screens: 252 (under operation) Brands we Operate: Angelika Film Centers, Reading Cinemas, City Cinemas, Consolidated Theatres Diverse programming: 11 specialty theaters 16 first-run commercial theaters Locatio
Slide 14: Snapshot of Global Exhibition Segment - Australia and New Zealand
SNAPSHOT OF nuns EXHIBITION SEGMENT - : SS, — ——s. »/ a4}. AUSTRALIAN CINEMAS NEW ZEALAND CINEMAS 4* largest exhibitor in Australiaby screen count 3° largest exhibitor in New Zealand byscreen count Theaters: 8 eens: 46 Brands we Operate: Reading Cinemas Locations: North Island & South Island ‘Own 5
Slide 15: Global Cinema Strategy: Inspiring Experiences Maximize Guest Returns
GLOBAL CINEMA STRATEGY: INSPIRING EXPERIENCES MAXIMIZE GUEST RETURNS CREATE ing. 7& ANNUAL STOCKHOLDERS MEETING
Slide 16: T&
T& ANNUAL STOCKHOLDERS MEETING
Slide 17: Cinematic Presentation
GLOBAL COUNT 7 TITAN XC CINEMATIC PRESENTATION see & hear it on the big screen + TITANXC—Company-branded Premium Large Format Auditoriums + IMAX + Dolby Atmos—Immersive Sound COMPANY'S FIRST IMAX AT VALLEY PLAZA IMIAX — IS BELIEVING’— BAKERSFIELD, CA 1] DOLBY ATMOS" FEEL EVERY DIMENSION”
Slide 18: Uniquely Designed Venues
UNIQUELY DESIGNED VENUES ee | <> : ‘+ Design spaces that connect guests to ourbrands and inspire longer visits, + Our signature aestheticiskey to oursite design T& ANNUAL STOCKHOLDERS MEETING
Slide 19: Curated Film & Event Programming
CURATED FILM & EVENT PROGRAMMING + Angelika—Strength in quality film programming + AlternativeContent programming + Create live events around film ANNUAL STOCKHOLDERS MEETING
Slide 20: Crafted Food & Beverage Options
CRAFTED FOOD & BEVERAGE OPTIONS + Offeringcraft beer, wine & cocktails + Freshly prepared small-bite options + Concessions witha creative twist + Dine-in options
Slide 21: Value Pricing Model
VALUE PRICING MODEL Attractive pricing and special offers generateattendance and goodwill ‘SESSIONS FROM THU OCT 29 UNTIL WED NOV 4, ~ COMFORT & VALUE loner "9 (RD, NG (0 APPS 1 OnE PRCA TEUSTweNaTER 9 || RAYON PO riences |/erecnm tec Boo ca saris 1a 090 Ha ‘eons oon) 70) Burs consts || fis we Son B
Slide 22: Engaging & Convenient Virtual Interaction
ENGAGING & CONVENIENT VIRTUAL INTERACTION website traffic mobile usage social media engagement * Australia up 44% YoY * Australia up 73% YoY * Facebook ‘Likes’ up forall brands + NewZealand up 33% YoY + NewZealand up 74% YoY * US Circuit on Instagram * United States up 27% YoY * United States up 31%
Slide 23: Reinvesting in Existing Cinema Portfolio
7» th i REINVESTING IN EXISTING CINEMA PORTFOLIO Over the nextthree years, we will maximize value of our existing cinema assets by pursuingan aggressive capital expenditure plan. US Cinemas Spend $40 ~ $43mm overnext three years Australian Cinemas Spend $16 ~$18mm* overnextthree years NewZealand Cin
Slide 24: Continue to Pursue Selective New Opportunities
CONTINUE TO PURSUE SELECTIVE NEW OPPORTUNITIES ‘+ We will continue to pursue new build opportunities in strategic markets + New build opportunities must meet targeted returns + Our global cinema strategy will enhance ournew build opportunities + Evaluate cinema acquisitions offering synergistic bene
Slide 25: Snapshot of Global Real Estate Segment
SNAPSHOT OF GLOBAL REAL ESTATE SEGMENT Value Creation Projects: Union Square — 17th Street & Park Avenue/Union Square Park, New York City Cinemas 1, 2 & 3—Upper East Side, New York City Operating Properties: Minetta Lane Theatre — West Village, New York City + Live theatre use Orpheum Theatre — East
Slide 26: Snapshot of Global Real Estate Segment - Australia and New Zealand
TTT SNAPSHOT OF GLOBAL REAL ESTATE SEGMENT Ml i HAN WEWETT CMe ceeen sine nhy lewmarket/suburb of Brisbane, Queensland NEW ZEALAND REAL ESTATE sydney, New South Wales
Slide 27: Global Real Estate Strategy: Maximize Existing Portfolio & Search for New Opportunities
GLOBAL REAL ESTATE STRATEGY: MAXIMIZE EXISTING PORTFOLIO & SEARCH FOR NEW OPPORTUNITIES DESIGN SPACES & COMMUNITIES THAT INSPIRE & CONNECT UNLOCK EMBEDDED VALUE IN EXISTING PORTFOLIO LONG. TERM VALUE for stockholders SEARCH FOR ACQUISITIONS THAT FIT WITHIN CORE REAL ESTATE ASSETS FOCUS ON PROPERTY M
Slide 28: Value Creation: Reading Newmarket
VALUE CREATION: READING NEWMARKET Newmarket, affluent suburb 2 miles from downtown Brisbane, Queensland, Australia As of today: ‘Total SF: Approximately 205,000 Percentage Leased: 100% ‘Annual Net Income: $3.65m Median Household Income (Newmarket Catchment): ‘AUS81,320 per year, which is 57%above Au
Slide 29: Value Creation: Reading Newmarket
VALUE CREATION: READING NEWMARKET + Adding9,600 SF specialty retail + Constructingstate-of the-art eight screen Reading Cinema ‘Adding 134 additional parking spaces ‘+ Upgrading of common areas to furtherimprove ‘enrich the customers experience + Allnecessary town planning approvals issued PROJECTED
Slide 30: Value Creation: Red Yard
VALUE CREATION: RED YARD ‘Auburn, suburb 12 miles west of downtown Sydney, New South Wales, Australia As of today: ‘Total SE: Approximately 500,000 Percentage Leased: 100% ‘Annual Net Income: $1.54m Median Household income (Auburn City Council Catchment): AU$5O,336 per year, which is 3% below Austra
Slide 31: Value Creation: Red Yard
VALUE CREATION: RED YARD + Permits approved for an additional22,000F of income-generating retail space + Adding 9,000 SF of additional restaurant & specialty retaill around Telstra Building + Adding two new restaurants (Red Rooster & Oporto, owned by QSR Restaurants) in existing parkinglot + Adding
Slide 32: Value Creation: Courtenay Central
VALUE CREATION: COURTENAY CENTRAL Wellington, capital of New Zealand As of today: ‘Total SF: Approximately 150,000 in Shopping Center Percentage Leased: Substantially leased. Property undergoing. transitionalre-leasing. ‘AnnualNet Income: $1.3m Population (Wellington Catchment): 203,800 persons Medi
Slide 33: Value Creation: Courtenay Central
VALUE CREATION: COURTENAY CENTRAL PROJECTED DEVELOPMENT BUDGET RANGE: Us$22-25m Hl
Slide 34: Value Creation: Union Square Property
VALUE CREATION: UNION SQUARE PROPERTY Park Avenue &17" St. across from Union Square Park, NYC In March 2015, Landmark Preservation Commission approved a glass dome above the exterior landmarked building addingan additional 23,000 square feet to the existing building, Variance filed with Board of Sta
Slide 35: Value Creation: Union Square Property
VALUE CREATION: UNION SQUARE PROPERTY 7& ANNUAL STOCKHOLDERS MEETING 35
Slide 36: Value Creation: Cinemas 1, 2 & 3
VALUE CREATION: CINEMAS 1, 2 & 3 34 Avenue & 60" St. across from Bloomingdales, NYC + This development inthe heart of midtown Manhattan is inthe early stages of development + Company's minority partner approved re-development of the property + Adjacent property owners (corner of 60% & 3%) and Compan
Slide 37: Future Development Opportunities: Shadow View
FUTURE DEVELOPMENT OPPORTUNITIES: SHADOW VIEW City of Coachella, Riverside County, CA Approximately 200 acres of undeveloped property Current use: agriculture Located immediately south of interstate 10 and east of Highway 86 in Coachella Valley Part ofan approved master planned community in the nort
Slide 38: Future Development Opportunities: Manukau
FUTURE DEVELOPMENT OPPORTUNITIES: MANUKAU ‘Auckland, New Zealand + Approximately 70 acres of undeveloped land + Located immediately adjacent to Auckland International Airport + Currentinvestment of $12.7 million. Land purchased in 2007/2010. + Company working collaboratively with adjacent landowners
Slide 39: Financial Review
FINANCIAL REVIEW presented by Dev Ghose, Chief Financial Officer
Slide 40: Summary Financial Data
SUMMARY FINANCIAL DATA ‘STATEMENT OF OPERATIONS (in thousands) YEAR ENDED DECEMBER 31 2014 Revenues Operating expenses Operating income Net Income from continuing operations Net Income applicable to common stockholders Earnings Per Share - from continuing ops - basic Earnings Per Share - fully dilut
Slide 41: Reconciliation of EBITDA to Net Income
RECONCILIATION OF EBITDA TO NET INCOME (in thousands) TWELVE MONTHS ENDED DECEMBER 31, EBITDA $40,384 $ 39,217 Interest expense, net (9,000) (10,037) Income tax benefit (expense) 9,785 (4,942) Depreciation & amortization (15,468) (15,197) Net Income $ 25,701 $9,041 Source: Form:10K for year ended De
Slide 42: Summary Balance Sheet
SUMMARY BALANCE SHEET ($ in thousands) 12/31/2014 12/31/2013 Cash and Cash Equivalents $50,248 $37,696 Receivables 11,348 9,087 Other Current Assets 22,335 8,334 Total Current Assets 83,931 55,117 Operating property, net 186,889 191,660 Land held for sale 42,588 11,052 Investment and Development Pro
Slide 43: Summary Financial Data
SUMMARY FINANCIAL DATA ‘STATEMENT OF OPERATIONS ($ in thousands) QUARTER TO DATE SEPTEMBER 30, 2015 YEAR TO DATE SEPTEMBER 30, 2015 Revenues Operating expenses Operating income Net income applicable to common stockholders Earnings Per Share from continuing ops - basic Earnings Per Share - fully dilu
Slide 44: Reconciliation of EBITDA to Net Income
RECONCILIATION OF EBITDA TO NET INCOME (Sin thousands) THREE MONTHS ENDED SEPTEMBER 30, NINE MONTHS ENDED SEPTEMBER 30, EBITDA, $ 6,293 $ 10,483 $ 40,940 $ 31,255 Interest expense, net (1,894) (1,411) (6,070) (6,537) Income tax benefit (expense) (517) (1,312) (4,605) (4,747) Depreciation & amortizat
Slide 45: Summary Balance Sheet
SUMMARY BALANCE SHEET ($ in thousands) 9/30/2015 12/31/2014 Cash and Cash Equivalents and Time Deposits $62,081 $ 50,248 Receivables 8,017 11,348 Other Current Assets 7,462 22,335, Total Current Assets, 77,560 83,931 Operating property, net 170,259 186,889 Land held for sale 36,580 42,588 Investment
Slide 46: Thank You
Reading International — Shareholder Meeting (November 2015) on 6ix