| Business Segments |
Note 3 – Business Segments
We organize our operations into two reportable business segments within the meaning of FASB ASC 280-10 - Segment Reporting. Our reportable segments are (1) cinema exhibition and (2) real estate. The cinema exhibition segment is engaged in the development, ownership, and operation of multiplex cinemas. The real estate segment is engaged in the development, ownership, and operation of commercial properties. Incident to our real estate operations we have acquired, and continue to hold, raw land in urban and suburban centers in Australia, New Zealand, and the United States.
The tables below summarize the results of operations for each of our principal business segments for the three and six months ended June 30, 2013 and 2012, respectively. Operating expense includes costs associated with the day-to-day operations of the cinemas and the management of rental properties including our live theater assets (dollars in thousands):
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Three Months Ended June 30, 2013
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Cinema Exhibition
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Real Estate
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Intersegment Eliminations
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Total
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Revenue
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$
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64,659
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$
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6,896
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$
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(1,913)
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$
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69,642
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Operating expense
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53,008
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2,730
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(1,913)
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53,825
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Depreciation and amortization
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2,525
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1,015
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--
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3,540
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General and administrative expense
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801
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214
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--
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1,015
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Segment operating income
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$
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8,325
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$
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2,937
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$
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--
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$
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11,262
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Three Months Ended June 30, 2012
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Cinema Exhibition
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Real Estate
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Intersegment Eliminations
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Total
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Revenue
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$
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57,988
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$
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6,841
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$
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(1,882)
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$
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62,947
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Operating expense
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48,347
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2,582
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(1,882)
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49,047
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Depreciation and amortization
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2,733
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1,087
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--
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3,820
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General and administrative expense
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782
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146
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--
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928
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Segment operating income
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$
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6,126
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$
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3,026
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$
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--
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$
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9,152
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Reconciliation to net income attributable to Reading International, Inc. shareholders:
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2013 Quarter
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2012 Quarter
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Total segment operating income
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$
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11,262
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$
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9,152
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Non-segment:
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Depreciation and amortization expense
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110
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97
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General and administrative expense
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3,386
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3,398
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Operating income
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7,766
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5,657
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Interest expense, net
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(2,636)
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(5,683)
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Other income
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113
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68
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Loss on sale of assets
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--
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(2)
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Income tax expense
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(1,500)
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(259)
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Equity earnings of unconsolidated joint ventures and entities
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432
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399
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Income from discontinued operations
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--
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44
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Net income
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$
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4,175
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$
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224
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Net (income) loss attributable to noncontrolling interests
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(40)
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15
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Net income attributable to Reading International, Inc. common shareholders
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$
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4,135
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$
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239
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Six Months Ended June 30, 2013
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Cinema Exhibition
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Real Estate
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Intersegment Eliminations
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Total
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Revenue
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$
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119,429
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$
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13,606
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$
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(3,826)
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$
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129,209
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Operating expense
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100,956
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5,399
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(3,826)
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102,529
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Depreciation and amortization
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5,285
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2,134
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--
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7,419
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General and administrative expense
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1,571
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334
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--
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1,905
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Segment operating income
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$
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11,617
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$
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5,739
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$
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--
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$
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17,356
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Six Months Ended June 30, 2012
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Cinema Exhibition
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Real Estate
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Intersegment Eliminations
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Total
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Revenue
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$
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115,390
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$
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13,753
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$
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(3,765)
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$
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125,378
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Operating expense
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96,563
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5,326
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(3,765)
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98,124
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Depreciation and amortization
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5,563
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2,222
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--
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7,785
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General and administrative expense
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1,484
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325
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--
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1,809
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Segment operating income
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$
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11,780
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$
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5,880
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$
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--
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$
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17,660
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Reconciliation to net income attributable
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2013 Six
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2012 Six
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to Reading International, Inc. shareholders:
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Months
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Months
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Total segment operating income
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$
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17,356
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$
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17,660
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Non-segment:
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Depreciation and amortization expense
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221
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236
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General and administrative expense
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6,833
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6,937
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Operating income
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10,302
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10,487
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Interest expense, net
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(5,309)
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(9,443)
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Other income
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128
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23
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Loss on sale of assets
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(7)
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(2)
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Income tax expense
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(2,389)
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(1,884)
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Equity earnings of unconsolidated joint ventures and entities
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779
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812
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Income from discontinued operations
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--
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120
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Net income
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$
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3,504
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$
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113
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Net income attributable to noncontrolling interests
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(36)
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(116)
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Net income (loss) attributable to Reading International, Inc. common shareholders
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$
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3,468
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$
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(3)
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