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Reading International, Inc. Message Board

  • everaertmich everaertmich Aug 4, 2011 6:42 PM Flag

    Earnings

    Operating results were good (as hinted by RGC)

    The rise in Australia is impressive and july box office in Australia is up big compared to last year. Also US july box office biggest receipt ever. Both of these bode well for the next quarter.
    Strong rise in stockholder equity and net tangible assets.
    Paying down debt by 9 mill AUD on the 2nd of august, good sign. Use cash to pay down debt, hence saving 495.000 AUD in intrest costs over a 1 year period. (9 million AUD * 5,5% intrest if my memory serves me right)

    Activation of an Australian tax asset of 13,8 mill AUD. They expect good things to continue over there.

    Removal of Burwood as asset held for sale is the riddle. I hope some explanation in the 10Q. They were hinting at keeping Burwood but in the mean time doing a deal with a developer and then releasing the land as the development is ongoing. Maybe it has to do with this?

    Looks like they repurchased some 100k worth of shares or is this a miss on my part? (look at the growth in treasury shares)

    Two good quarters (i already include next quarter given the very strong month of july) make a big difference for a company like reading. They have in my opinion enhanced its financial flexibility (evidenced by the paying down of the 9 mill aussie debt). I would like them to stay on the same track : paying down debt and buying up stock.

    Hope to see some indication in the 10Q as to how much the insurance claim will be on their Christchurch NZD property?

    Shares still look cheap on my book and it offers a very nice hideout in current stock markets.

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    • See my replies in CAPS, below. Let me know if this answers your q's and is helpful.
      ---------------

      Activation of an Australian tax asset of 13,8 mill AUD. They expect good things to continue over there.YES NOTE THE ABOVE DISCUSSION ON THE $58.5MM AUSSIE NOL AND NOTE UNLIKE US , THERE IS NO EXPIRATION DATE ON AUSSIE NOL'S

      Removal of Burwood as asset held for sale is the riddle. I hope some explanation in the 10Q.
      THAT RIDDLE WAS JUST ANSWERED FOR YOU. SEE CORRECTING RELEASE RDI PUT OUT ON BURWOOD AT http://www.businesswire.com/news/home/20110804007076/en/Reading-International-Clarifies-Burwood-Position FURTHER CONFIRMING PARCEL STILL FOR SALE AND FMV > BOOK VALUE

      THE ASSET MOVEMENT TO NEW CATEGORY WAS GAAP THING AND NOT A CHANGE IN THEIR PLANS FROM THE ANNUAL MEETING. NOTE AT THE ANNUAL MEETING COTTER DID SAY THEIR PLAN TO SELL THE WHOLE THING WAS CHANGING TO A SALE OR DEVELOPMENT OF THE PARCEL IN 3 COLOR ZONES FOUND IN MAP AT http://www.readingrdi.com/pdf/Burwood%20Plan.pdf
      AND REFERRED TO IN ANNUAL MEETING SUMMARY PRESS RELEASE FOUND AT http://www.readingrdi.com/pdf/2011-05-24%20Annual%20Meeting%20Press%20Release.pdf
      THE GREEN ZONE IS WHAT THEY REFER TO AS RESIDENTIAL APPRAISED AT AUS$1.7MM/ACRE; THE BLUE ZONE IS WHAT IS REFERRED TO AS COMMERCIAL/RESIDENTIAL AND APPRAISED AT AUS$11.5MM. THE YELLOW ZONE IS THE RETAIL/ENTERTAINMENT SECTION THAT READING IS PLANNING TO PRIMARILY DEVELOP, EITHER ON THEIR OWN OR WITH JV PARTNER

      They were hinting at keeping Burwood but in the mean time doing a deal with a developer and then releasing the land as the development is ongoing. Maybe it has to do with this? SEE ABOVE - THE PLAN TO RELEASE LAND AS DEVELOPMENT BUILT OUT AND SOLD TO END BUYERS AND SELLER INSTALLMENT NOTE WAS PAID DOWN WAS TO AVOID A LARGE AUSSIE PARCEL TRANSFER TAX BEING PAID TWICE.

      Looks like they repurchased some 100k worth of shares or is this a miss on my part? (look at the growth in treasury shares) I SAW THE LIKELY BUYBACK AS WELL. 10Q WILL HAVE TO HAVE MORE DETAIL. NOT ALOT TO JUMP OVER AND NOTE NEW LOAN COVENANTS WILL LIMIT THIS FROM BEING BIG ACTIVITY

      Two good quarters (i already include next quarter given the very strong month of july) make a big difference for a company like reading.
      YES
      They have in my opinion enhanced its financial flexibility (evidenced by the paying down of the 9 mill aussie debt). I would like them to stay on the same track : paying down debt and buying up stock.NOTE NEW LOAN COVENANTS WILL LIMIT BUYBACK FROM BEING BIG ACTIVITY

      Hope to see some indication in the 10Q as to how much the insurance claim will be on their Christchurch NZD property? ME TOO BUT DON'T KNOW IF THEY HAVE ASSESSMENT YET GIVEN THE AFTERSHOCK

      Shares still look cheap on my book and it offers a very nice hideout in current stock markets. SHARES DEFINITELY CHEAP BUT STOCK SOLD OFF PRETTY HARD IN JULY AND EARLIER THIS WEEK. DOWN 14% YTD

      HOPE THIS WAS HELPFUL TO YOU AND OTHERS

    • See my replies in CAPS, below. Let me know if this answers your q's and is helpful.
      ---------------

      Is what i wrote on yahoo boards about correct regarding the recently released quarterly of RDI. MOSTLY YES - SEE MY COMMENTS BELOW

      Operating results were good (as hinted by RGC) - INDEED YES. I THINK BOTH RDI AND TOMORROW CNK WILL SHOW THE BENEFIT OF INT'L SCREEN EXPOSURE. UNFORTUNATELY RDI GETS NO ATTN FROM CINEMA ANALYSTS. ITS INT'L EXPOSURE IS ONE REASON THEY SHOULD COVER RDI OVER CKEC

      The rise in Australia is impressive and july box office in Australia is up big compared to last year. YES - THIS IS ATTENDANCE IN ADDITION TO CURRENCY AND AVG TICKET PRICE

      Also US july box office biggest receipt ever. Both of these bode well for the next quarter. YES BUT INDUSTRY MAY NOT BE AS STRONG Y/Y IN AUG AND SEPT BUT JULY MOST IMPORTANT OF Q3'S MONTHS.

      Strong rise in stockholder equity and net tangible assets. YES AND AN ARGUMENT CAN BE MADE THAT DEFERRED TAX ASSET SHOULD BE GIVEN WEIGHTING IN TANGIBLE BOOK VALUE CALCULATION - IN ANY LIQUIDATION THE NOL WOULD BE USABLE TO SHIELD SUBSTANTIAL GAINS ON THE SALE OF RDI ASSETS. IN ADDITION IF, IN AUSTRALIA, UNLIKE THE US, THERE IS NO CHANGE OF CONTROL TRIGGER REDUCING THE USE OF NOL TO CORPORATE BUYER, THE SIZABLE $58.5MM READING AUSSIE NOL (THE SUBJECT OF Q2'S TAX ASSET WRITEUP) WOULD ALSO HAVE VALUE.

      Paying down debt by 9 mill AUD on the 2nd of august, good sign.
      YES
      Use cash to pay down debt, hence saving 495.000 AUD in intrest costs over a 1 year period. (9 million AUD * 5,5% intrest if my memory serves me right)- THIS YOU DO HAVE WRONG IN THAT THE INTEREST SAVINGS IS HIGHER THE RATE ONTHE AUSSIE DEBT IS FIXED MARGIN ABOVE VARIABLE BBSY BASE RATE. IT WAS THE BBSY BASE RATE THAT GOT FIXED WITH SWAP AT 5.5% PER THE RECENT 8-K THE MARGIN STARTS AT 2.9% AND DROPS TOWARD 2.15% SO WE ARE TALKING ABOUT RATE ON LOAN AT 8.4-7.65% AS PRINCIPAL GETS PAID DOWN AND INTEREST COVERAGE INCREASES.

 
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