form8k.htm

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934

Date of report (Date of earliest event reported):  May 26, 2010

Reading International, Inc.
(Exact Name of Registrant as Specified in its Charter)

Nevada
1-8625
95-3885184
(State or Other Jurisdiction
of Incorporation)
(Commission
File Number)
(IRS Employer
Identification No.)
     
500 Citadel Drive, Suite 300, Commerce, California
90040
(Address of Principal Executive Offices)
(Zip Code)

Registrant's telephone number, including area code:  (213) 235-2240

N/A
 (Former Name or Former Address, if Changed Since Last Report)


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


 
 
 
 
Item 8.01.  Other Events.

Change in Composition of Reportable Segments

As of January 1, 2010, we changed our reporting for intercompany property rent where our cinema operations were substantially the only tenant of such property by eliminating the intersegment revenue and expense relating to the intercompany rent, and transferring the third party lease costs from the real estate segment to the cinema segment.  This was a change in the composition of management’s reportable segments which requires retrospective adjustments to prior period presentations of segment information to correspond to the new segment reporting structure.  This filing provides the retrospective presentation of segment information for the years ended December 31, 2009, 2008, and 2007, which decreases intersegment revenue and expense by the intercompany rent of $4.2 million, $1.8 million, and $439,000, respectively.  The overall results of these changes decreases real estate segment revenues and expense by $4.2 million, $1.8 million, and $439,000 for the years ended December 31, 2009, 2008, and 2007, respectively.  These changes also result in a reduction of real estate operating expenses and an increase of cinema operating expenses of $4.2 million, $1.8 million, and $439,000 on our Consolidated Statements of Operations for the years ended December 31, 2009, 2008, and 2007, respectively, which represent the transfer of the third party lease costs from the real estate segment to the cinema segment.

The tables below set forth the retrospective presentation of our segment information concerning our cinema operations and our real estate operations (which includes information relating to both our real estate development, retail rental and live theater rental activities) for the three years ended December 31, 2009 (dollars in thousands):

Year Ended December 31, 2009
  
Cinema Exhibition
    
Real Estate
    
Intersegment Eliminations
    
Total
  
Revenue
   $ 201,388     $ 21,085     $ (5,459 )   $ 217,014  
Operating expense
     165,707       7,810       (5,459 )     168,058  
Depreciation & amortization
     10,816       3,686       --       14,502  
Loss on transfer of real estate held for sale to continuing operations
     --       549       --       549  
Impairment expense
     --       3,217       --       3,217  
Contractual commitment loss
     --       1,092       --       1,092  
General & administrative expense
     2,645       1,063               3,708  
Segment operating income
   $ 22,220     $ 3,668     $ --     $ 25,888  
                                 
 
Year Ended December 31, 2008
  
Cinema Exhibition
    
Real Estate
    
Intersegment Eliminations
    
Total
  
Revenue
   $ 181,188     $ 21,885     $ (6,019 )   $ 197,054  
Operating expense
     153,064       7,982       (6,019 )     155,027  
Depreciation & amortization
     13,702       4,200       --       17,902  
Impairment expense
     351       3,968       --       4,319  
General & administrative expense
     3,834       1,121       --       4,955  
Segment operating income
   $ 10,237     $ 4,614     $ --     $ 14,851  
                                 
Year Ended December 31, 2007
  
Cinema Exhibition
    
Real Estate
    
Intersegment Eliminations
    
Total
  
Revenue
   $ 103,467     $ 21,448     $ (5,680 )   $ 119,235  
Operating expense
     83,875       7,885       (5,680 )     86,080  
Depreciation & amortization
     6,942       4,418       --       11,360  
General & administrative expense
     3,195       831       --       4,026  
Segment operating income
   $ 9,455     $ 8,314     $ --     $ 17,769  
 
 
-1-
 
 
Reconciliation to net income (loss):
  
2009
    
2008
    
2007
  
Total segment operating income
   $ 25,888     $ 14,851     $ 17,769  
Non-segment:
                        
Depreciation and amortization expense
     666       656       561  
General and administrative expense
     13,851       16,483       12,059  
Other operating income
     (2,551 )     --       --  
Operating income (loss)
     13,922       (2,288 )     5,149  
Interest expense, net
     (14,572 )     (15,740 )     (8,163 )
Other income (expense)
     (2,015 )     991       (505 )
Gain on disposal of discontinued operations
     --       --       1,912  
Income tax expense
     (1,952 )     (2,099 )     (2,038 )
Equity earnings of unconsolidated joint ventures  and entities
     117       497       2,545  
Gain on sale of unconsolidated joint venture
     268       2,450       --  
Gain on extinguishment of debt
     10,714       --       --  
Net income (loss)
   $ 6,482     $ (16,189 )   $ (1,100 )
Net income attributable to noncontrolling interests
     (388 )     (620 )     (1,003 )
Net income (loss) attributable to Reading International, Inc. common shareholders
   $ 6,094     $ (16,809 )   $ (2,103 )
 
 
-2-
 
 
SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 
READING INTERNATIONAL, INC.
     
Date: May 26, 2010
By:
/s/ Andrzej Matyczynski
 
Name:
Andrzej Matyczynski
 
Title:
Chief Financial Officer
 
 
-3-