Welcome to Reading International's Third Quarter 2018 Earnings Call. Thank you for joining us to discuss our 2018 third quarter results. My name is Andrzej Matyczynski. I'm Reading's Executive Vice President of Global Operations. With me, as usual, are Ellen Cotter, our CEO; and Dev Ghose, our EVP and Chief Financial Officer. Before we begin the substance of the call, I'll start by stating that in accordance to the safe harbor provision of the Private Securities Litigation Reform Act of 1995, certain matters that will be addressed in this earnings call may constitute forward-looking statements. Such statements are subject to risks, uncertainties and other factors that may cause our actual performance to be materially different from the performance indicated or implied by such statements. Such risk factors are clearly set out in our SEC filings. We undertake no obligation to publicly update or revise any forward-looking statements. In addition, we will discuss non-GAAP financial measures on this call. Reconciliations and definitions of non-GAAP financial measures, which are segment operating income, EBITDA and adjusted EBITDA, are included in our recently issued 2018 third quarter earnings release on the company's website. In today's call, we also use an industry-accepted financial measure called theater level cash flow, which is theater level revenues less direct theater level expenses. Please note that our comments are necessarily summary in nature, and anything we say is qualified by the more detailed disclosure set forth in our Form 10-Q. So with that behind us, Dev will be talking to us about the financial results of the third quarter a little later. But first, I'll turn the call over to Ellen, who will update us on the company's operations for what has turned out to be an exciting quarter for the company.

Thanks, Andrzej, and thank you, everyone, for joining us today and sending in your questions. We've tried to address many of your questions in our prepared remarks. Before we start, I wanted to mention that on Wednesday, November 7, Reading held its 2018 Annual Stockholders' Meeting at our newly renovated Reading Cinemas in Murrieta, California. Management's presentation to its stockholders has now been posted to our website at readingrdi.com. Now let's turn to our third quarter results. Reading delivered another record-setting quarter. Our third quarter total revenues increased 12% to $74.3 million, which set an all-time record high for any third quarter. Our global cinema business drove these record revenues, which were generated not only by an amazing and diverse slate of movies from both the major studios and independent film companies but also by the effective execution of our global cinema strategy. During the third quarter of 2018, we continued to enhance the value of our existing assets, investing just under $9 million into the further upgrading of our cinema and real estate portfolios. The majority of those investment dollars went into the continued construction of our 44 Union Square project in New York City. First, let's look at our cinema business, which provides investors diversification and strategic benefits through operations in 3 stable economies: the United States, Australia and New Zealand. Here are some of the quarterly highlights. At $70.7 million, our quarterly total cinema revenues increased by 14% versus the third quarter in 2017. Our U.S. cinema division recorded the highest total revenue ever for a third quarter. We delivered this performance despite the fact that one of our stronger consolidated theaters on the island of Oahu was closed for renovation for half of the third quarter. Also, we were adversely affected by the strengthening of the…

Thank you, Ellen. Now I'll discuss the financial results for the third quarter ended September 30, 2018. Consolidated revenues for the third quarter of '18 increased by 12% to $74.3 million. This was primarily driven by: one, increases in attendance in our U.S., Australian and New Zealand cinemas; two, the U.S. cinema's increase in average ticket price; and three, the opening of our new state-of-the-art 8-screen Reading Cinema at Newmarket Village on December 14, 2017. These results were achieved in spite of a 7.4% decline in the value of the Australian dollar and an 8.5% decline in the New Zealand dollar for the quarter ended September 30, 2018, compared to the corresponding period the prior year. Our revenues for the first 9 months of 2018 also increased by 13% or $26.4 million to $234.4 million. The revenue increase for the 9 months ended September 30, 2018 compared to the corresponding period of the prior year was due to the cinema business segment growth and a slight increase in revenues from the real estate business segment, offset by the nonrecurring revenue derived in New Zealand from the receipt of business interruption proceeds in the second quarter of 2017, which was received in connection with the closure of our Courtenay Central entertainment-themed center. In addition, our live theater revenue decreased compared to the prior year due to recognition in 2017 of the nonrecurring settlement payment received by the company related to the STOMP arbitration. While the improvement in the cinema business has been positively impacted by the much better film slate this year, we believe that the results also demonstrate the impact of our renovations and refurbishments over the past couple of years. Net income attributable to RDI common shareholders decreased by $300,000 to $1.3 million for the third quarter of 2018…

Thanks, Dev. First, I'd like to thank our stockholders for forwarding questions to our Investor Relations email. We were very pleased with the number of inquiries. We've compiled the set of questions and answers that represents the most common questions and recurring themes that were emailed to us and incorporated some answers in the body of the call. As always, we are available after the webcast to address any additional questions and encourage you to continue reaching out. The first question: Can you provide somewhat of a worst-case scenario for Union Square on your tenant leasing decision? How long would you be willing to leave the property unoccupied if you do not see lease terms you prefer versus taking something less than desirable in order to get the property occupied? Ellen, would you like to field this?

Yes, Andrzej. As a company, while we perform sensitivity analysis on various potential scenarios for each capital project, we don't expect a worst-case scenario to occur for our Union Square project. Our brokers have consistently advised us that the leasing efforts would only start getting traction when the building was to take shape, so the potential tenants could get a clearer understanding of what their space would feel like and have certainty of delivery dates. We're encouraged with the project -- progress of the project and the tenant dialogue we're having and don't expect the property to sit unoccupied.

Okay. Another question. Now that the predevelopment agreement to codevelop Cinemas 1, 2 and 3 with its neighboring parcel has expired with mostly an initial feasibility study completed, what are the next steps and timing milestones on this real estate? Ellen?

The Cinema 1, 2 and 3 continues to be one of our principal assets. It continues to work for us now as a cinema while we progress its redevelopment into a higher and better use. As most of you know, we've tried for a while to work out a joint development deal with our neighbors on the north. We believe that the possible synergies for a combination -- from a combination of the 2 properties will benefit both them and Reading. To date, we haven't been able to reach agreement to a fair allocation of the JV ownership that's in the best interest of our stockholders, including with respect to the control of the development. Our inability to reach agreement on getting -- on these gating issues gives us concern as to the difficulties that we may face in making other fundamental development decisions. And therefore, we're now looking at developing our property on a stand-alone basis. Our footprint is just about 8,000 square feet, and we have the potential to increase the square footage to just over 90,000 square feet, with current zoning being commercial, residential or community facility. To be clear, while we work to negotiate a joint venture structure, we've not been standing still and have been addressing issues that will need to be resolved whether we proceed on a stand-alone development or as part of a joint venture. Our Cinema 1, 2 and 3 continues to deliver healthy cash flow. As 44 Union Square nears completion, we'll focus more of our domestic resources on advancing the redevelopment of the Cinema 1, 2 and 3. We have no plan to sell the asset as we believe it offers our company and our stockholders continuing cash flow plus the potential to build long-term sustainable tangible asset value. We look forward to keeping you updated.

Ellen, the third question: Can you remind us of Reading's long-term plan as it relates to growth in both real estate and all cinema exhibition? What growth rates are you targeting? And is there a specific growth metric, revenue growth, EBITDA growth, you are using as a benchmark to measure the success of your efforts? Dev, how about you?

Thanks, Andrzej. We started on a more in-depth review of our cinema investments in 2005 and have added recliner seats, premium screens and enhanced food and beverage options in select locations. In doing so, we have generated -- generally targeted mid-teens type returns on the cinema growth investments, recognizing that in a few such instances, investments have necessarily to be defensive in nature. On the real estate side, we look for returns in the high single digits on a stabilized cash-on-cash basis.

Dev, perhaps we can stick with you with the next question. With the expected maturity of U.S., New Zealand and Australia loans in 2019, are they going to be refinanced prior to adding to Reading's working capital deficit by allowing them to be classified as additional current maturities of long-term debt?

Andrzej, we are in advanced discussions with our credit sources in Australia, New Zealand and the U.S. with regard to renewing and refinancing our primary lines of credit for the next several years. We are encouraged by what we have been hearing and hope to be able to update our investors in early 2019 in connection with our 2018 year-end reporting. We've received indications that we have the flexibility to increase our credit facilities should we elect to do so.

And another question on our debt. The new Minetta Lane and Orpheum loans 1 or 2 and subject to prepayment penalties? Dev?

Andrzej, in October 2018, we closed on a new long-term loan covering the Minetta and Orpheum theaters. We will be able to repay the loan without penalty during the last year, year 5, of the loan. We do not currently anticipate any events for these 2 sites that would require a prepayment before that date. Naturally, the prepayment feature is just one element of an overall financial package and impacts the rate paid.

Then our last question: With a $25 million share buyback authorized and the company's management and board taking the position that RDI are undervalued, why is the company not repurchasing shares? I think I can answer that one. Our board has committed to the $25 million buyback. Today, just under $7 million of that authorization has been utilized. We are continuously evaluating our capital allocation needs as it relates to the buyback and our capital project -- projects. As you can see from the amount we recently invested in our existing portfolio, we have put our capital to good use. Additionally, in the past months, we've been evaluating certain transactions that might have increased our capital needs. And finally, legal restrictions and blackout periods have materially limited our activity in the market. Note that this has only been relatively recently that our stock price has fallen below our historic buyback pricing levels. With that said, our board and management remains committed to our buyback. That marks the conclusion of the call. As usual, we're available for any follow-up calls, so please do not hesitate to reach out. We appreciate you listening to the call today, and thank you for your attention.