Theatre Acquisitions

9 Months Ended

Sep. 30, 2012

Theatre Acquisitions [Abstract]

THEATRE ACQUISITIONS

NOTE 11—THEATRE ACQUISITIONS

On March 30, 2012, the Company completed its purchase of certain assets from Destinta Theatres for approximately $700. The acquisition consisted of a seven screen theatre in Clarion, Pennsylvania. The Company has accounted for this transaction as an asset acquisition. The purchase price was allocated to the assets acquired, primarily leasehold improvements, based on their respective fair values.

On September 28, 2012, the Company entered into a definitive purchase agreement with Rave, pursuant to which, subject to satisfaction of certain conditions, the Company will acquire all of the membership units of Rave for approximately $19,000, subject to customary working capital and other adjustments. The Company will assume certain liabilities, including certain lease obligations which, upon closing, will be reflected on the Company’s consolidated balance sheet as capital lease and financing obligations, in the amount of approximately $100,400, subject to customary accounting adjustments to reflect the acquisition date fair value of such obligations. Rave operates 16 theatres located in 7 states. The Company is expected to complete the transaction in the fourth quarter of 2012. In accordance with the acquisition method of accounting, the acquired net assets will be recorded at fair value as of the date of the acquisition. The results of operations of Rave will be included in the Company’s consolidated statement of operations beginning on the date of the acquisition.