Published 1 April 2007
Los Angeles-based cinema company Reading International Inc increased revenue from continuing operations by 8.2%, net income by 290% & ebitda by 32.2% in 2006.
Reading has cinema & land interests in New Zealand as well as the US & Canada.
Revenue from continuing operations increased to $US106.1 million, net income to $US3.9 million, ebitda to $US25.9 million.
Reading formed Landplan Property Partners Ltd in Australia, and Landplan Property Partners NZ Ltd in November (originally with Reading in the name, but that was dropped in February) “to identify, acquire & develop or redevelop properties in Australia & New Zealand on an opportunistic basis”.
By 14 March these new companies had acquired 2 such properties, one in Australia & one in New Zealand, for a total investment of $US6.7 million. The 4000mÂ² Auckland property, bought in February, cost $NZ7.1 million.
To consolidate & rationalise its holdings, Reading sold its 50% joint-venture interests in 3 mainstream Berkeley cinemas in Auckland (aggregating 13 screens) to its partner, Everard Entertainment, and acquired Everard’s 50% of their 8-screen Christchurch joint venture. The Rialto art house cinema in Newmarket, held in a 50:50 unconsolidated joint venture with SkyCity Leisure Ltd, was refurbished, expanded & reopened. And Reading acquired an existing 3-screen leasehold cinema in Queenstown.
Reading owns & operates cinemas and develops, owns & operates retail & commercial real estate assets in the US, Australia & New Zealand, including entertainment-themed retail centres in Australia & New Zealand and live theatre assets in Chicago & Manhattan.
Since the December balance date, the company has completed the placement of $US50 million in trust preferred securities. No principal payments are due until maturity in 2027.
This transaction closed on 5 February 5 and Reading used the funds principally to pay off its New Zealand bank debt ($US34.4 million, $NZ50 million) and to pay down its Australian debt (by $US5.8 million, $A7.4 million). The company has left a $US42.3 million ($NZ60 million) line of credit in place in New Zealand and increased its borrowing ability in Australia to $US10.9 million ($A13.9 million).
Websites: Reading International
Attribution: Company release, story written by Bob Dey for this website.