Thank you for joining Reading International's earnings call to discuss our 2018 fourth quarter and full year results. My name is Andrzej Matyczynski. I'm Reading's Executive Vice President of Global Operations. With me are Ellen Cotter, our CEO; and Gilbert Avanes, our Interim Chief Financial Officer and Treasurer. Before we begin the substance of the call, I'll start by stating, as usual, that in accordance with 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 fourth quarter and full year 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-K. So with that behind us, Gilbert will be talking to us about our financial results for the fourth quarter and full year a little later. But first, I'll turn the call over to Ellen, who will update us on the company's 2018 operations for what has turned out to be another great year for Reading.

Thanks, Andrzej, and thank you, everyone, for joining us today and sending in your questions. Like we've done in the past, we've tried to address many of your questions in our prepared remarks. Before we start today, I also want to introduce Gilbert Avanes, who's been with Reading for over 12 years and was recently appointed our Interim Chief Financial Officer and Treasurer. As most of you know, Dev Ghose retired from Reading in late January of this year after having served as our CFO and Treasurer for almost 4 years. I want to personally thank Dev for his service to Reading, which experienced significant growth during his tenure. We're pleased to have Gilbert step into the interim role. You'll be hearing from Gilbert shortly, and he'll provide a more detailed financial review following my remarks. Now let's turn to our fourth quarter and full year results. We were all very pleased with the company's 2018 results, as we set numerous records across our cinema and real estate businesses and footprint. Reading's 2018 total revenues of $309.4 million, which increased 11% from 2017, set an all-time record high. Our operating income of $24.1 million, which increased 16% from 2017, also represented a record high. Our 2018 EBITDA was $46.9 million. 2018 net income was $14.4 million, and earnings per share was $0.62 per share. Each of these 3 metrics would have been a record had it not been for nonrecurring gains or tax benefits reflected in 2014, 2015 and 2017. Taking into account these nonrecurring events in prior years, Reading had a stellar operational year in 2018. Our strong execution on our global cinema strategy helped drive our record results and was supported by an amazing and diverse slate of major studio movies and independent films. In 2018, in native…

Thanks, Ellen. As we noted, on a fourth quarter basis, we set records for the highest operating revenue, operating income and EBITDA compared to all other fourth quarters in company history. For the full year, we had the highest operating revenue and operating income ever in company history. Consolidated revenues for the fourth quarter 2018 increased by $3.1 million to $75 million. This is primarily driven by increases in attendance, box office and food and beverage revenue in U.S., Australia and New Zealand cinemas compared to the fourth quarter of 2017, primarily due to our cinema capital investment and the opening of our new state-of-the-art 8-screen Reading Cinema on December 14, 2017, at Newmarket Village. These results were achieved notwithstanding a 6.6% decline in Australian dollar and a 3.6% decline in New Zealand dollar for the quarter ended December 31, 2018, compared to the quarter ended December 31, 2017. Our revenues for the full year 2018 increased by $29.5 million to $309.4 million. The revenue increase was due to: one, increased attendance across all jurisdictions, particularly in the U.S.; two, higher box office and food and beverage revenue, likewise across all jurisdictions; three, a strong film slate from the major studios compared to 2017; four, the full year operations from our cinema and a dining precinct at Newmarket Village; and five, the result of our capital investment in our cinema upgrades, including recliner seating and TITAN screens, which were offset by a onetime, nonrecurring $1.8 million settlement payment booked with respect to the STOMP arbitration recognized in 2017 and a weaker Australia and New Zealand dollar. Net income attributable to RDI common stockholders decreased by $2.5 million to $5 million for the fourth quarter 2018 and decreased by $16.7 million to $14.4 million for the full year ended December 31,…

Thanks, Gilbert. First, I'd like to thank our stockholders for forwarding questions to our Investor Relations e-mail. We've compiled a set of questions and answers representing the most common questions and recurring themes e-mailed to us. As always, we are available after the webcast to address any additional questions and encourage you to continue reaching out to us. So the first question. You have done great work advancing the company's cinema and real estate growth through your capital improvements and strategy. In 2017, RDI repurchased shares around the prices we are at today, and 2018 has seen a slowdown in the buybacks. Can you help us understand what caused the slowdown in the buybacks despite the attractive share price and an operationally stronger company? I think I can field that one. In 2018, we evaluated a number of transactions or projects that might have increased our capital needs, which caused us to be conservative in the repurchasing of shares. Also, legal restrictions and blackout periods have materially limited our activity in the market. With that said, on March 14, 2019, our Board of Directors extended our company's stock buyback program for 2 further years through March 2, 2021. The board did not increase the authorized amount, which was initially fixed at $25 million. At the present time, $16.2 million of that authorization remains available to repurchase Class A common stock. The next question. Can you help us understand what drove the weaker U.S. cinema operating margins compared to history? We'll give that one to Ellen to field.

So looking back over the last 3 years, the U.S. cinema division's 2018 operating margin, defined as U.S. cinema operating income as a percentage to U.S. cinema total revenue, increased compared to 2017. However, we did experience a dip in our 2018 operating margin compared to 2016. And this decrease is primarily due to higher depreciation and amortization as a result of the significant capital invested in our U.S. cinema portfolio. Regarding fourth quarter comparisons, U.S. cinema operating margin for Q4 2018 exceeded Q4 2017 results. But again, our Q4 2018 fell short compared to results in Q4 2016. I'll note that in 2016, we had a record year at the box office with a very strong slate of films, whereas 2018's Q4 film slate was not as strong. Also, one of our strongest cinemas closed for renovation during Q4 2018.

Thanks, Ellen. The third question, how much additional debt of the $30.3 million in unused capacity will be drawn down before Union Square is complete? Gilbert?

We are anticipating using the remaining Union Square capacity during 2019 to complete the project. The total of that is expected to be $57.5 million, and the balance would be the company's equity contribution.

Thanks, Gilbert. While you're there, perhaps you can address the next question. Can you provide an update on the status or any appeals in the matters related to James J. Cotter matters?

As we have previously reported, Jim Cotter, Jr.'s derivative litigation against all directors was dismissed with prejudice against all directors early in 2018, and the Nevada District Court awarded a cost judgment against Mr. Cotter in favor of the company in the amount of $1.55 million. Additionally, the company's application for attorney fee was denied. All the issues relating to the derivative case are on appeal and are currently being briefed. No date for the oral argument in Nevada has been set. Our most recent public filing contain an update on the employment arbitration involving Mr. Cotter. The arbitrator entered a final decision with respect to the case and the award of the attorney fees. Reading has paid the compensatory award. Regarding Mr. Cotter's ex parte motion in the California Superior Court seeking appointment of a temporary trustee ad litem to solicit offer to purchase the voting stock owned by the Cotter Trust, Ellen and Margaret Cotter appealed the order of the Superior Court issued March of 2018. In response to their appeal, in early 2018, the California Appellate Court issued an order to show cause and a stay in all of the proceedings. Ellen Cotter and Margaret Cotter on one hand and Mr. Cotter, on the other hand, had submitted briefing papers to the California Appellate Court. Earlier this month, the California Appellate Court put the parties on notice that a hearing is scheduled in Los Angeles on April 5, 2019.

Thanks, Gilbert, for that comprehensive update. The next question, how is the new cinema in Newmarket Village faring versus your expectations? What was the return expected? And is it being achieved? When is the competitor theater at the old roller rink that Reading delayed going to open? Ellen, perhaps you can address.

Our Reading Cinema at Newmarket Village didn't open as strongly as we had initially hoped. However, it does take time to fully establish new venues, and we do not believe that year 1 results are indicative of the overall long-term investment. With 20/20 hindsight, we might have made modifications to our original launch plan. And we have since made certain programming changes. The positive news is the theater continues to strengthen month after month. Although we did not publicly disclose the returns on specific projects, we remain comfortable with our investment as the cinema continues to widen its audience. Also, it is generating increasing customer traffic for our new and established tenants at Newmarket Village. Our investment in Reading Cinemas at Newmarket is a situation where we're realizing the benefits of being both the cinema operator and the landlord of the cinema at our shopping center. This is a compelling point of difference for our company and differentiates us from other cinema companies. We do not know the schedule of the opening of the planned 5-star cinema at the corner of Waterworks Road and Enoggera Terrace in Brisbane.

Thanks, Ellen. So to wrap up this call, I'll deal with the last question, which is since your April 2016 purchase, none of the corporate HQ building's leasable space is under contract. Will this be -- building being leveled up with debt? Please explain management's plan. Well, in early 2019, we terminated the exclusive leasing agreement with Coleus. We are now handling the activation of the space with internal resources. As the Culver City and Playa Vista areas around our office building continue to strengthen, we are currently exploring whether a coworking strategy would meet our required investment criteria. In the interim, based on our conversation with brokers, the growth and importance of Culver City and Playa Vista to the media and technology industries has resulted in favorable appreciation in the building's value over the last few years. So with that, it marks the conclusion of the call. As usual, we are available for any follow-up calls, so please do not hesitate to reach out to us. Once again, we appreciate you for listening to the call today and thank you for your attention.