Non-GAAP Reconciliation
Supplemental Information to Bear Stearns 12th Annual Global Credit Conference Presentation 6/3/2003

		TTM 6/30/2000					12/31/2002					3/31/2003
Total Revenue		$	478,198				$	507,188				$	103,214
EBITDA/EBITDAR Reconciliation (pages 7 & 9)
Operating Income (Loss)		$	(2,881	)			$	68,787				$	12,562
	Plus Depreciation & Amortization		43,461					32,079					7,711
	Plus Impairment charge		32,993					—					—
	Plus Deferred Compensation		—					3,612					1,298
	Plus Expenses related to stock offering		—					552					—
	Plus Franchise Taxes		—					950					255
	Less Gain on Real Estate Sales included in Revenue		(3,048	)				(878	)				—
EBITDA		$	70,525		14.7	%	$	105,102		20.7	%	$	21,826		21.1	%
	Plus Rental Obligations		49,544					52,308					12,851
EBITDAR		$	120,069		25.1	%	$	157,410		31.0	%	$	34,677		33.6	%
Screens			2,815					2,262					2,251
EBITDA per screen		$	25.1				$	46.5				$	9.7
EBITDAR per screen		$	42.7				$	69.6				$	15.4
Theatre Cash Flow Reconciliation (page 7 & 9)
Operating Income (Loss)		$	(2,881	)			$	68,787				$	12,562
	Plus Depreciation & Amortization		43,461					32,079					7,711
	Plus Impairment charge		32,993					—					—
	Plus General and Administrative		7,114					14,983					3,346
Theatre Cash Flow		$	80,687				$	115,849				$	23,619
Theatre Cash Flow per screen		$	28.7				$	51.2				$	10.5
Free Cash Flow Reconciliation (page 9)
Operating Income (Loss)		$	(2,881	)			$	68,787				$	12,562
	Plus Depreciation & Amortization		43,461					32,079					7,711
	Plus Impairment charge		32,993					—					—
	Plus Deferred Compensation		—					3,612					1,298
	Plus Expenses related to stock offering		—					552					—
	Less Contractual Interest Expense		(39,682	)				(47,468	)				(10,340	)
Free Cash Flow		$	33,891				$	57,562				$	11,231

EBITDA and EBITDAR are supplemental non-GAAP financial measures. EBITDA is defined as operating income (loss) plus (a) depreciation & amortization, (b) impairment charge, (c) deferred compensation, (d) expenses related to stock offering and (e) franchise taxes; less gain on real estate sales included in revenue. EBITDAR is defined as EBITDA plus rental obligations. Theatre cash flow is defined as operating income (loss) plus (a) depreciation & amortization, (b) impairment charge and (c) general & administrative. Free cash flow is defined as operating income (loss) plus (a) depreciation & amortization, (b) impairment charge, (c) deferred compensation and (d) expenses related to stock offering; less contractual interest expense. We have presented EBITDA and EBITDAR, theatre cash flow and free cash flow because we believe they are widely accepted financial indicators of a company’s ability to service indebtedness and are used by investors and analysts to evaluate companies in the motion picture exhibition industry. (EBITDA is also used as a measure for certain covenants under our revolving credit facility and the indenture governing the notes.)

However, EBITDA and EBITDAR: (a) do not represent net income or cash flow from operations as defined by generally accepted accounting principles, (b) are not necessarily indicative of cash available to fund our cash flow needs, (c) should not be considered as alternatives to operating income, net income or cash flows from operating activities as determined in accordance with generally accepted accounting principles, and (d) should not be construed as a measure of our operating performance, profitability or liquidity. EBITDA and EBITDAR as calculated by us are not necessarily comparable to similarly titled measures reported by other companies.