| Type | Public (NASDAQ: RDI) |
|---|---|
| Industry | Motion Picture Exhibition |
| Headquarters | Commerce, California |
| Key people | James J. Cotter, Chairman and CEO John Hunter, COO |
| Website | http://www.readingrdi.com |
Reading Entertainment is a movie theater company which is part of Reading International, Inc., successor to the Reading Company, whose railroad properties were conveyed to government-owned Conrail in 1976. Most of its operations are in Australia, New Zealand, and United States under the Reading Cinemas trade name. Its logo is a film strip in the form of railroad turning into a film strip to tell the story of the history of the brand.
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Los Angeles company-based Pacific Theatres decided to sell 15 of the 29 theaters operated by Pacific Theatres Exhibition Corp. and its affiliates, comprising 181 screens in Hawaii and throughout California, outside of Los Angeles, as Pacific wanted to become an exclusive entertainment company primarily in Los Angeles. Reading International had interest in purchasing these theatres in late 2007, finally coming to an agreement in finalizing the purchase February 22, 2008. These theaters reportedly generate around $80 million in revenue annually. Nine of the theaters, comprising 98 screens, are located in Hawaii and operate under the Consolidated Theatres brand name and represented nearly 70% of the Hawaiian box office receipts reported in 2007. Six theaters, comprising 83 screens, in San Diego, Bakersfield, and Rohnert Park California, operated as Pacific Theatres have been converted to the Reading Cinema brand name. Reading's purchase was financed principally by a combination of debt financing from GE Capital Corporation and seller financing. During 2009 and 2010, much of the seller financing was forgiven as part of contingent purchase price adjustment terms and tests in the original purchase agreement.
In October 2008, Reading Entertainment and Screenvision entered into a long-term contract to provide digital, satellite-based pre show to all Reading Cinemas locations in the United States. Replacing traditional slide show presentation, the digital preshow by Screenvision would cover advertisements from television shows such as: E! Entertainment, ABC Family. and MTV, upcoming films, and business advertisements such as: Verizon Wireless, Dodge, and National Guard, pending on the movie's MPAA rating. The digital preshow would also cover local businesses who purchase time on the pre show.[1]. All Reading Cinemas locations in the United States officially began the digital preshow December 2008.
Reading Cinemas began installing digital projection in 4 of its theatres in the United States using DLP projection technology. These projectors are also capable of showing Digital 3-D presentations. Per Reading's 2009 10-K filing: By mid-year (2010), it anticipates Reading will have 3D projectors in not less than 28 out of the 53 cinema locations that it either wholly owns or consolidates.[2]