Note 5 – Earnings (Loss) Per Share

Basic earnings (loss) per share is computed by dividing the net income (loss) attributable to Reading International, Inc. common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings (loss) per share is computed by dividing the net income (loss) attributable to Reading International, Inc. common shareholders by the weighted average number of common shares outstanding during the period after giving effect to all potentially dilutive common shares that would have been outstanding if the dilutive common shares had been issued. Stock options and non-vested stock awards give rise to potentially dilutive common shares. In accordance with FASB ASC 260-10 - Earnings Per Share, these shares are included in the diluted earnings per share calculation under the treasury stock method. The following is a calculation of earnings (loss) per share (dollars in thousands, except share data):



		Three Months Ended June 30,				Six Months Ended June 30,
		2013		2012		2013		2012
Net income (loss) from continuing operations	$	4,135	$	195	$	3,468	$	(123)
Income from discontinued operations		--		44		--		120
Net income (loss) attributable to Reading International, Inc. common shareholders		4,135		239		3,468		(3)
Basic earnings (loss) per common share attributable to Reading International, Inc. shareholders:
Earnings (loss) from continuing operations	$	0.18	$	0.01	$	0.15	$	(0.01)
Earnings from discontinued operations, net		0.00		0.00		0.00		0.01
Basic earnings per share attributable to Reading International, Inc. shareholders	$	0.18	$	0.01	$	0.15	$	0.00
Diluted earnings (loss) per common share attributable to Reading International, Inc. shareholders:
Earnings (loss) from continuing operations	$	0.18	$	0.01	$	0.15	$	(0.01)
Earnings from discontinued operations, net		0.00		0.00		0.00		0.01
Diluted earnings per share attributable to Reading International, Inc. shareholders	$	0.18	$	0.01	$	0.15	$	0.00
Weighted average shares of common stock – basic		23,344,057		23,009,209		23,305,466		22,969,392
Weighted average shares of common stock – diluted		23,447,250		23,177,815		23,408,659		22,969,392

For the three and six months ended June 30, 2013, the weighted average common stock – diluted included 103,193 of common stock compensation and in-the-money incremental stock options and for the three months ended June 30, 2012, the weighted average common stock – diluted included 168,606 of common stock compensation and in-the-money incremental stock options. For the six months ended June 30, 2012, we recorded losses from continuing operations; therefore, we excluded 168,606 of in-the-money incremental stock options from the computation of diluted loss per share because they were anti-dilutive. In addition, 741,861 of out-of-the-money stock options were excluded from the computation of diluted earnings (loss) per share for the three and six months ended June 30, 2013, and 692,789 of out-of-the-money stock options were excluded from the computation of diluted earnings (loss) per share for the three and six months ended June 30, 2012.