EX-99.1 3 a2065040zex-99_1.htm EXHIBIT 99.1 Prepared by MERRILL CORPORATION
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Exhibit 99.1

Kathryn M.S. Catherwood, State Bar # 131688
Luce, Forward, Hamilton & Scripps, LLP
600 West Broadway, Suite 2600
San Diego, CA 92101
Attorney for Debtor-In-Possession

UNITED STATES BANKRUPTCY COURT
SOUTHERN DISTRICT OF CALIFORNIA

In Re: CinemaStar Luxury Theaters, Inc., Debtor(s)
CASE NUMBER: 01-00110-JM11
CHAPTER 11
DEBTOR-IN-POSSESSION MONTHLY OPERATING REPORT
FOR THE MONTH OF: September 2001

TO:   THE HONORABLE Judge Myers
UNITED STATES BANKRUPTCY JUDGE

    The Debtor-In-Possession hereby files its Monthly Operating Report pursuant to the United States Trustee's Operating and Reporting Requirements for Chapter 11 cases.

DATED: October 18, 2001    

 
 
/s/ KATHRYN M.S. CATHERWOOD   
Attorney for Debtor-In-Possession

UNITED STATES DEPARTMENT OF JUSTICE
OFFICE OF THE UNITED STATES TRUSTEE
SOUTHERN DISTRICT OF CALIFORNIA

In Re: CinemaStar Luxury Theaters, Inc., Debtor(s)
CHAPTER 11 (BUSINESS)
CASE NO. 01-00110-JM11
OPERATING REPORT NO. 9
FOR THE MONTH ENDING: September 30, 2001


I. CASH RECEIPTS AND DISBURSEMENTS
A. (GENERAL ACCOUNT*)

1.   TOTAL RECEIPTS PER ALL PRIOR GENERAL ACCOUNT REPORTS   13,290,168.46  

2.
 
LESS: TOTAL DISBURSEMENTS PER ALL PRIOR GENERAL ACCOUNT REPORTS
 
12,645,806.85
 

3.
 
BEGINNING BALANCE
 
644,361.61
 

4.
 
RECEIPTS DURING CURRENT PERIOD
 
 
 

 
 
        ACCOUNTS RECEIVABLE—PRE-FILING
 
0.00
 
            ACCOUNTS RECEIVABLE—POST-FILING   0.00  
            GENERAL SALES   1,076,833.14  
            OTHER (SPECIFY) Advanced ticket sales, Mexico mgmnt fees   31,490.99  
            OTHER** (SPECIFY)      

 
 
 
 
TOTAL RECEIPTS THIS PERIOD
 
1,108,324.13
 

5.
 
BALANCE:
 
1,752,655.74
 

6.
 
LESS: TOTAL DISBURSEMENTS DURING CURRENT PERIOD (Total from Page 2)
 
1,843,935.52
 

7.
 
ENDING BALANCE
 
(91,249.78
)

8.
 
GENERAL ACCOUNT NUMBER
 
0700494381
 
 
 
    DEPOSITORY NAME AND LOCATION   Union Bank of California
445 South Figueroa St., Los Angeles, CA 90051		  
*
All receipts must be deposited into the general account
**
Include the receipts from the sale of any real or personal property out of the ordinary course of business; attach an exhibit specifying what was sold, to whom, terms, and date of Court Order or Report of Sale.

2


TOTAL DISBURSEMENTS DURING CURRENT PERIOD (General Account)

Date
 #
   Payee
   Purpose
   Amount
    
Checks                  
9/1/01 17111   THE COUDURES FAMILY LIMITED   Rent   40,321.79    
9/1/01 17112   MISSION GROVE THEATER   Rent   64,443.41    
9/1/01 17113   MISSION GROVE THEATERS II   Rent   32,355.40    
9/1/01 17114   OCEANSIDE MISSION MARKET PLACE   Rent   66,947.53    
9/1/01 17115   REDEVELOPMENT AGENCY CITY OF   Rent   12,500.00    
9/1/01 17116   REDEVELOPMENT AGENCY CITY OF   void   98,700.00    
9/1/01 17116   REDEVELOPMENT AGENCY CITY OF   void   -98,700.00    
9/1/01 17117   UNITED TITLE COMPANY   Rent   4,983.30    
9/1/01 17118   REDEVELOPMENT AGENCY CITY OF   Rent   82,000.00    
9/5/01 17119   MGM FILMS   Film payable   1,102.58    
9/6/01 17120   ACCOUNTANTS ON CALL   Temp. staffing   183.92    
9/6/01 17121   ADVANCED COMMUNICATIONS SYSTEM   R&M   282.95    
9/6/01 17122   AIRBORNE EXPRESS   Film transport   145.60    
9/6/01 17123   BUTTERBALL TURKEY GIFT PROGRAM   Corp. Events   425.25    
9/6/01 17124   CALIFORNIA CHOICE BENEFIT ADM   Staff Benefits   7,339.47    
9/6/01 17125   CITY CLERK   Licenses and Permits   1,365.43    
9/6/01 17126   CITY OF SAN BERNARDINO   Utilities   1,305.36    
9/6/01 17127   CITY OF SAN BERNARDINO   Utilities   622.50    
9/6/01 17128   CROWN POINT DESIGN & EMBROIDER   Uniforms   202.69    
9/6/01 17129   D.C. ELECTRONICS TWO, INC.   R&M   195.00    
9/6/01 17130   THE GUARDIAN   Advertising   1,473.63    
9/6/01 17131   AARON HERNANDEZ   Equip.—copier   500.00    
9/6/01 17132   IDP   Advertising   100.00    
9/6/01 17133   LIONS GATE FILMS   Film payable   50.00    
9/6/01 17134   MURPHY'S PRINTING   Printing   368.19    
9/6/01 17135   NATIONAL PRODUCTS   R&M   315.70    
9/6/01 17136   PROCTOR COMPANIES   R&M   56.59    
9/6/01 17137   PRUDENTIAL   Staff benefits   1,473.47    
9/6/01 17138   R.E. ROSS   R&M   850.00    
9/6/01 17139   SECRETARY OF STATE   Filing fees   20.00    
9/6/01 17140   SOURCE ONE   R&M   253.44    
9/6/01 17141   STAPLES CREDIT PLAN   Office supplies   649.03    
9/6/01 17142   STATE COMPENSATION INS. FUND   Workers Comp. Insurance   13,370.97    
9/6/01 17143   UNITED PARCEL SERVICE   Shipping   14.68    
9/6/01 17144   VERIZON CALIFORNIA   Telephone   246.27    
9/6/01 17145   VISION SERVICE PLAN—(CA)   Staff Benefits   401.51    

3

9/6/01 17146   WARNER BROTHERS   Film payable   350.57    
9/6/01 17147   WESCO   R&M   940.63    
9/6/01 17148   KIM ZOLNA   travel expenses   120.07    
9/6/01 17149   HERITAGE FOODS LLC   Concessions   238.92    
9/6/01 17150   JAVA CITY   Concessions   1,775.98    
9/11/01 17151   AS YOU LIKE IT CATERERS   Corp. Events   160.00    
9/13/01 17152   AIRBORNE EXPRESS   Film transport   455.00    
9/13/01 17153   ANTHONY'S SEAFOOD GROUP   Concessions   28.00    
9/13/01 17154   AON RISK SERVICES, INC.   Insurance   4,162.00    
9/13/01 17155   ARMORED TRANSPORT   Security   905.69    
9/13/01 17156   BANK OF AMERICA   Bank Fees   155.25    
9/13/01 17157   BRAKE WATER TRANSPORT, INC.   Film transport   1,273.00    
9/13/01 17158   BUENA VISTA PICTURES DISTR.   Film payable   100.00    
9/13/01 17159   CITY OF RIVERSIDE   Utilities   16,615.96    
9/13/01 17160   CITY OF SAN BERNARDINO   Property tax and CAM   3,459.17    
9/13/01 17161   CROWN POINT DESIGN & EMBROIDER   Uniforms   539.40    
9/13/01 17162   CR&R INC.   Utilities   1,466.59    
9/13/01 17163   DE LAGE LANDEN   Telephone   81.43    
9/13/01 17164   EASTERN MUNICIPAL WATER DIST.   Utilities   118.51    
9/13/01 17165   EVENLITE, INC   R&M   29.65    
9/13/01 17166   GENESYS CONFERENCING   R&M   97.08    
9/13/01 17167   HOSTING.COM   Outside Services   218.71    
9/13/01 17168   IDP   Advertising   100.00    
9/13/01 17169   JANITORIAL MAINTENANCE   Janitorial   18,181.00    
9/13/01 17170   LIONS GATE FILMS   Film payable   123.00    
9/13/01 17171   LOS ANGELES TIMES   Advertising   48.00    
9/13/01 17172   MITCHELL GLASS CO.   R & M   325.00    
9/13/01 17173   NORTH COUNTY TIMES   Advertising   4,328.45    
9/13/01 17174   PACIFIC BELL   Telephone   971.32    
9/13/01 17175   THE PRESS ENTERPRISE CO.   Advertising   18,157.32    
9/13/01 17176   PRINTEK BUSINESS SOLUTIONS   Printing   211.42    
9/13/01 17177   PROCTOR COMPANIES   R&M   407.04    
9/13/01 17178   QUALITY INSTALLATIONS   R&M   120.00    
9/13/01 17179   REEL SOURCE, INC.   Outside Services   175.00    
9/13/01 17180   R&J FIAL ENTERPRISES   Janitorial   19.49    
9/13/01 17181   SAN BERNARDINO COUNTY SUN   Advertising   6,444.09    
9/13/01 17182   SKY COURIER   Film transport   54.60    
9/13/01 17183   STRUCTURAL TERMITE & PEST   R&M   85.00    
9/13/01 17184   THEATRICAL DISTRIBUTION SERV.   Advertising   20.91    
9/13/01 17185   UNION TRIBUNE   Advertising   566.40    
9/13/01 17186   UNIVERSAL PICTURES   Film payable   3,849.70    
9/13/01 17187   VARIETY—THE CHILDREN'S CHARITY   Charitable Contributions   250.00    

4

9/13/01 17188   VERIZON CALIFORNIA   Telephone   535.48    
9/13/01 17193   WARNER BROTHERS   Film payable   50.00    
9/13/01 17194   WAXIE SANITARY SUPPLY   Janitorial   2,988.18    
9/13/01 17195   AIRGAS   Concessions   50.00    
9/13/01 17196   HERITAGE FOODS LLC   Concessions   609.64    
9/17/01 17207   20TH CENTURY FOX   Film payable   1,697.10    
9/17/01 17208   BUENA VISTA   Film payable   7,705.01    
9/17/01 17209   MGM FILMS   Film payable   36,768.83    
9/17/01 17210   MIRAMAX FILMS   Film payable   12,234.69    
9/17/01 17211   NEW LINE PICTURES   Film payable   12,696.32    
9/17/01 17212   PARAMOUNT PICTURES   Film payable   6,787.93    
9/17/01 17213   UNIVERSAL FILM EXCHANGES, INC.   Film payable   10,100.54    
9/17/01 17214   WARNER BROTHERS   Film payable   7,610.35    
9/20/01 17215   AIRBORNE EXPRESS   Film transport   509.60    
9/20/01 17216   ALLSTATE INSURANCE   GMT's refund   103.50    
9/20/01 17217   AMERICAN EXPRESS   Miscellaneous   4,454.99    
9/20/01 17218   ARMORED TRANSPORT   Security   50.40    
9/20/01 17219   C.A.P.S.   Security   75.00    
9/20/01 17220   CITY OF OCEANSIDE   Utilities   1,846.82    
9/20/01 17221   EMERITUS COMMUNICATIONS   Telephone   377.27    
9/20/01 17222   GLOBE TICKET AND LABEL CO.   Printing   2,856.60    
9/20/01 17223   INLAND POWER WASH   R&M   75.00    
9/20/01 17224   INLAND LIGHTING SUPPLIES, INC.   R&M   767.55    
9/20/01 17225   MANULIFE FINANCIAL   Staff Benefits   3,102.13    
9/20/01 17226   NATIONAL SCREEN SERVICE   Advertising   101.95    
9/20/01 17227   PACIFIC BELL   Telephone   376.02    
9/20/01 17228   PLUSH APPEAL, L.L.C.   Video Game COS   1,098.58    
9/20/01 17229   PROCTOR COMPANIES   R&M   143.68    
9/20/01 17230   PURE FLO WATER   Office supplies   19.43    
9/20/01 17231   R&J FIAL ENTERPRISES   Janitorial   54.96    
9/20/01 17232   SOLOMON FRIEDMAN   Advertising   200.00    
9/20/01 17233   SOURCE ONE   R&M   4,218.15    
9/20/01 17234   SOUTHERN CALIFORNIA EDISON   Utilities   35,895.64    
9/20/01 17235   WAXIE SANITARY SUPPLY   Janitorial   649.32    
9/20/01 17236   W.K. GRAFF CO.   R&M   180.00    
9/20/01 17237   HERITAGE FOODS LLC   Concessions   787.60    
9/24/01 17238   RIVERSIDE COUNTY TREASURER   Replace 16850 (issued 7/12/01)   42,683.56    
9/25/01 17239   20TH CENTURY FOX   Film payable   743.85    
9/25/01 17240   BUENA VISTA   Film payable   1,824.91    
9/25/01 17241   MGM FILMS   Film payable   8,531.70    
9/25/01 17242   MIRAMAX FILMS   Film payable   4,506.48    
9/25/01 17243   NEW LINE PICTURES   Film payable   4,722.91    
9/25/01 17244   PARAMOUNT PICTURES   Film payable   2,809.82    
9/25/01 17245   UNIVERSAL FILM EXCHANGES, INC.   Film payable   19,171.10    
9/26/01 17246   PACER CATS   Computer support   18,217.76    

5

      *** VOID CHECKS *** 17247 through 17268   void        
9/28/01 17269   AIRBORNE EXPRESS   Film transport   309.40    
9/28/01 17270   BLYTHECO   Computer support   60.75    
9/28/01 17271   DAN CAHILL   travel expenses   48.75    
9/28/01 17272   CINEMASTAR LUXURY THEATERS   Petty cash   596.54    
9/28/01 17273   CROWN POINT DESIGN & EMBROIDER   Uniforms   381.38    
9/28/01 17274   DREAM WORKS DISTRIBUTION, LLC   Film payable   1,431.81    
9/28/01 17275   GRAINGER   R&M   394.80    
9/28/01 17276   HARPSTER ASSOCIATES   Advertising   100.00    
      *** VOID CHECKS *** 17277 through 17291   void        
9/28/01 17292   IDP   Advertising   368.00    
9/28/01 17293   MANULIFE FINANCIAL   Staff Benefits   2,818.05    
9/28/01 17294   MCCANN-ERICKSON, INC.   Advertising   745.17    
9/28/01 17295   PACIFIC BELL   Telephone   28.10    
9/28/01 17296   PARAMOUNT PICTURES   Film payable   289.00    
9/28/01 17297   PITNEY BOWES INC.   Equipment   189.51    
9/28/01 17298   QUILL CORPORATION   Office supplies   160.14    
9/28/01 17299   SEATING CONCEPTS   R&M   211.25    
9/28/01 17300   SKY COURIER   Film transport   236.60    
9/28/01 17301   SOURCE ONE   R&M   370.16    
9/28/01 17302   SOUTHERN CALIFORNIA EDISON   Utilities   10,984.29    
9/28/01 17303   STAPLES CREDIT PLAN   Office supplies   517.87    
9/28/01 17304   STRUCTURAL TERMITE & PEST   R&M   170.00    
9/28/01 17305   UNIVERSAL PICTURES   Film payable   2,080.34    
9/28/01 17306   ROY M. VAN ASCH, JANITORIAL   Janitorial   1,875.80    
9/28/01 17307   VERIZON CALIFORNIA   Telephone   214.75    
9/28/01 17308   WARNER BROTHERS   Film payable   265.57    
9/28/01 17309   W.K. GRAFF CO.   R&M   180.00    
9/28/01 17310   HERITAGE FOODS LLC   Concessions   159.28    
                  710,772.67

Wire Transfers
 
 
 
 
9/5/01 407   20TH CENTURY FOX   Concessions   5,981.48    
9/5/01 408   BUENA VISTA   Film payable   12,644.28    
9/5/01 409   MIRAMAX FILMS   Film payable   16,248.11    
9/5/01 410   NEW LINE PICTURES   Film payable   33,534.11    
9/5/01 411   PARAMOUNT PICTURES   Film payable   19,460.48    
9/5/01 412   UNIVERSAL FILM EXCHANGES, INC.   Film payable   35,742.65    
9/5/01 413   WARNER BROTHERS   Film payable   22,758.12    
9/4/01 414   SONY PICTURES   Film payable   14,500.00    
9/6/01 415   PEPSI-COLA COMPANY   Concessions   6,633.74    
9/6/01 416   METROPOLITAN PROVISIONS   Concessions   4,998.85    
9/10/01 417   SONY PICTURES   Film payable   15,000.00    
9/12/01 418   20TH CENTURY FOX   Film payable   2,835.63    
9/12/01 419   BUENA VISTA   Film payable   11,119.69    

6

9/12/01 420   MIRAMAX FILMS   Film payable   19,463.46    
9/12/01 421   NEW LINE PICTURES   Film payable   13,485.56    
9/12/01 422   PARAMOUNT PICTURES   Film payable   10,242.97    
9/12/01 423   UNIVERSAL FILM EXCHANGES, INC.   Film payable   14,391.39    
9/12/01 424   WARNER BROTHERS   Film payable   3,052.72    
9/13/01 425   PEPSI-COLA COMPANY   Concessions   5,018.86    
9/13/01 426   METROPOLITAN PROVISIONS   Concessions   10,400.55    
9/20/01 427   PEPSI-COLA COMPANY   Concessions   693.80    
9/20/01 428   METROPOLITAN PROVISIONS   Concessions   6,429.20    
9/27/01 429   PEPSI-COLA COMPANY   Concessions   2,885.99    
9/27/01 430   METROPOLITAN PROVISIONS   Concessions   3,347.51    
                  290,869.15

Direct Debits to Union Bank of California Acct # 0700494381
 
 
 
 
09/07/01     ADP Fees       745.24    
09/10/01     Cashier's Check for Union Bank of CA       600,000.00    
09/20/01     Sales Tax Payment       26,234.00    
09/21/01     ADP Fees       614.52    
09/24/01     Voided check # 16850 (issued 7/12/01)   (42,683.56 )  
09/30/01     Bank Service Charges       7,063.60    
09/30/01     Postage & Internet Service Fees       343.90    
09/30/01     Net Purchase of Change       (11,024.00 )  
                  581,293.70

Disbursements for Cinemas
 
0.00
 
 
                  0.00

Intercompany Transfers
 
 
 
 
09/10/01     To UBOC Acct. # 07007494365   Payroll   115,000.00    
09/10/01     To UBOC Acct. # 2180038712   Tax payable   26,000.00    
09/25/01     To UBOC Acct. # 07007494365   Payroll   100,000.00    
09/25/01     To UBOC Acct. # 2180038712   Tax payable   20,000.00    
                  261,000.00
TOTAL ACCOUNTS PAYABLE DISBURSEMENTS   1,843,935.52

7


B. (PAYROLL ACCOUNT)

1.   TOTAL RECEIPTS PER ALL PRIOR PAYROLL ACCOUNT REPORTS   1,741,535.93  

2.
 
LESS: TOTAL DISBURSEMENTS PER ALL PRIOR PAYROLL ACCOUNT REPORTS
 
1,796,525.10
 

3.
 
BEGINNING BALANCE
 
(54,989.17
)

4.
 
RECEIPTS DURING CURRENT PERIOD TRANSFERRED FROM GENERAL ACCOUNT
 
215,000.00
 

5.
 
BALANCE:
 
160,010.83
 

6.
 
LESS: TOTAL DISBURSEMENTS DURING CURRENT PERIOD
 
177,042.80
 

7.
 
ENDING BALANCE
 
(17,031.97
)

8.
 
PAYROLL ACCOUNT NUMBER
 
07007494365
 
 
 
    DEPOSITORY NAME AND LOCATION   Union Bank of California
445 South Figueroa St., Los Angeles, CA 90051		  

8


TOTAL DISBURSEMENTS DURING CURRENT PERIOD (Payroll Account)

Payroll Disbursements for September 1-30, 2001

September 14, 2001 Payroll Run—Summary of Expense        
  Wages Earned—Normal Recurring   68,888.45    
  Wages Earned—Adjustments & Voids   1,019.13    
  Wage Garnishments   175.61    
  Federal Income Taxes   8,977.84    
  Social Security   10,550.69    
  Medicare   2,629.97    
  State Unemployment Taxes—Employer   1,203.54    
  Federal Unemployment Taxes   310.59    
  State Unemployment Taxes—Employee   696.60    
  State Income Taxes   1,700.14    
    96,152.56    
September 14, 2001 Payroll Run—Summary of Disbursements        
  ADP Checks Issued [Net salary plus tax]   95,133.43    
  Manual Checks, etc.   1,019.13    
        96,152.56
September 28, 2001 Payroll Run—Summary of Expense        
  Wages Earned—Normal Recurring   58,576.25    
  Wages Earned—Adjustments & Voids   604.78    
  Wage Garnishments   148.38    
  Federal Income Taxes   7,274.32    
  Social Security   8,905.22    
  Medicare   2,216.49    
  State Unemployment Taxes—Employer   887.66    
  Federal Unemployment Taxes   229.07    
  State Unemployment Taxes—Employee   570.51    
  State Income Taxes   1,477.56    
    80,890.24    
September 28, 2001 Payroll Run—Summary of Disbursements        
  ADP Checks Issued [Net salary plus tax]   80,285.46    
  Manual Checks Issued   604.78    
        80,890.24
TOTAL PAYROLL ACCOUNT DISBURSEMENTS       177,042.80

9


B. (TAX ACCOUNT)

1.   TOTAL RECEIPTS PER ALL PRIOR TAX ACCOUNT REPORTS   113,000.00

2.
 
LESS: TOTAL DISBURSEMENTS PER ALL PRIOR TAX ACCOUNT REPORTS
 
105,023.29

3.
 
BEGINNING BALANCE
 
7,976.71

4.
 
RECEIPTS DURING CURRENT PERIOD TRANSFERRED FROM GENERAL ACCOUNT
 
46,000.00

5.
 
BALANCE:
 
53,976.71

6.
 
LESS: TOTAL DISBURSEMENTS DURING CURRENT PERIOD
Date: 9/20/01, wire transfer,
To: CA State Board of Equalization
 
26,234.00
 
 
 
  TOTAL DISBURSEMENTS THIS PERIOD
 
26,234.00

7.
 
ENDING BALANCE
 
27,742.71

8.
 
TAX ACCOUNT NUMBER
 
02180038712

 
 
DEPOSITORY NAME AND LOCATION
 
Union Bank of California
445 South Figueroa St., Los Angeles, CA 90051


D. SUMMARY SCHEDULE OF CASH

ENDING BALANCE FOR PERIOD      
 
GENERAL ACCOUNT
 
(91,249.78
)
  PAYROLL ACCOUNT   (17,031.97 )
  TAX ACCOUNT   27,742.71  
  OTHER ACCOUNTS *:   1,438,426.60  
  OTHER MONIES *:   0.00  
  PETTY CASH **   0.00  
TOTAL CASH AVAILABLE   1,407,887.56  
*
Specify the fund and the type of holding (i.e., CD, Savings Account, Investment securities, etc.) and the depository name, location, and account number

**
Attach exhibit itemizing all petty cash transactions

NOTE:  Attach copies of all monthly accounts from financial institutions for each account

10


OTHER ACCOUNTS (Supplement to schedule I.D.)

Bank / Account Type
   Account #
   Balance
Bank of America        
  Master Concentration   14501-09188   0.00
  Merchant   14501-09189   0.00
  Moviefone   14502-09192   0.00

Union Bank of California
 
 
 
 
  Master Concentration   0700494-349   1,288,159.18
  Merchant   0700494-357   190,696.34
  Moviefone   0700494-146   0.00
  Elective Creditor Distribution Fund   457000-1170   7,466.62
  FOB Cinemastar Luxury Cinemas, Inc.   0700494-373   2,104.46
Total       1,488,426.60


II. STATUS OF PAYMENTS TO SECURED CREDITORS, LESSORS,
AND OTHER PARTIES TO EXECUTORY CONTRACTS

Creditor, Lessor, ETC.
   Frequency of Payments (Mo./Qtr.)
   Amount of Payment
   Post-Petition Payments
Not Made (Number)
   Total Due
Oceanside Mission Market Place (Lessor MM 13 Theater)   Monthly   $ 57,678.10   0   $ 0.00
Coudres Family Ptrship (Lessor PR 10 Theater)   Monthly   $ 35,740.55   0   $ 0.00
MDA—San Bernardino (Lessor SB20 Thtr)   Monthly   $ 96,851.61   0   $ 0.00
Mission Grove Theater Properties I&II (Lessor MG 18 Theater)   Monthly   $ 89,050.40   0   $ 0.00
United Title Company
(Lessor—Corp Offices)		   Monthly   $ 4,983.40   0   $ 0.00
Union Bank of California ($2,000,000 loan, principal and interest)   Monthly   $ 57,472.22   0   $ 0.00
Midland Loan Services (Mortgage Note on Chula Vista Property)   Monthly   $ 17,646.36   9   $ 17,646.36

11


III. TAX LIABILITIES

FOR THE REPORTING PERIOD:    
  GROSS SALES SUBJECT TO SALES TAX   130,711.96
  TOTAL WAGES PAID   177,042.80
 
   Total Post-Petition
Amounts Owing
   Amount Delinquent
   Date Delinquent Amount Due
FEDERAL WITHHOLDING            
STATE WITHHOLDING            
FICA-EMPLOYER'S SHARE            
FICA—EMPLOYEE'S SHARE            
FEDERAL UNEMPLOYMENT            
STATE WITHHOLDING            
SALES AND USE   9,803.39   0.00    
REAL PROPERTY   17,445.59   17,445.59   4/10/01
OTHER (SPECIFY)            
TOTAL   27,248.98   17,445.59    


IV. AGING OF ACCOUNTS PAYABLE AND ACCOUNTS RECEIVABLE

 
    
   Accounts Receivable
 
   Accounts Payable *
(Post-Petition Only)
 
   Pre-Petition
   Post-Petition
30 days or less   787.32        
31-60 days   160.00        
61-90 days            
91-120 days            
Over 120 days            
TOTALS:   947.32        


V. INSURANCE COVERAGE

 
   Name of Carrier
   Amount of Coverage
   Policy Expiration Date
   Premium Paid Through:
General Liability   Royal Insurance of America   $ 2,000,000   10/14/01   12/14/01
Umbrella Liability   St. Paul's Insurance Company   $ 10,000,000   10/14/01   12/14/01
Automobile Liability   Royal Insurance of America   $ 1,000,000   10/14/01   12/14/01
Directors & Officers Liability   National Union Fire Insurance Company   $ 5,000,000   6/20/01   11/15/01
Workers Compensation   State (of CA) Compensation Insurance Fund     Variable   n/a   10/30/01
Property   Royal Insurance of America   $ 35,212,960   10/14/01   12/14/01
Vacant Property   Royal Indemnity Company   $ 1,500,000   12/14/01   12/14/01
Foreign Package   ACE USA   $ 1,000,000   10/15/01   12/14/01

12


VI. UNITED STATES TRUSTEE QUARTERLY FEES
(TOTAL PAYMENTS)

Qtrly Period
Ending
   Total Disbursements
   Qtrly Fees
   Date Paid
   Amount Paid
   Qtrly Fee Still
Owing
3/31/01   3,552,815.00   8,000.00   5/17/01   8,000.00   0.00
6/30/01   4,473,768.00   8,000.00   7/11/01   8,000.00   0.00
*
Post-Petition Accounts Payable should not include professionals' fees and expenses which have been incurred but not yet awarded by the Court. Post-Petition Accounts Payable should include professionals' fees and expenses authorized by Court Order but which remain unpaid as of the close of the period of the report.

13


VII. PROFIT AND LOSS STATEMENT (ACCRUAL BASIS ONLY)

 
   Current Month
   Cumulative
Post-Petition
  
Admission Revenue   762,116   9,967,256  
Concession Revenue   304,378   3,926,483  
Video Revenue   17,912   201,390  
Screen Advertising   10,366   82,288  
Other Revenues   7,557   28,624  
   
 
 
Theater Revenue   1,102,328   14,206,041  

Film Rental Expense
 
292,573
 
5,369,648
 
Concession COGS   53,411   577,403  
   
 
 
Theater Cost of Goods Sold   345,984   5,947,051  
   
 
 
Theater Gross Margin   756,345   8,258,990  
   
 
 
Salaries   114,384   1,299,439  
Payroll Taxes   10,796   138,018  
Rent Expense   268,111   2,533,236  
CAM Expense   33,462   285,702  
Utility Expense   78,489   601,524  
Advertising Expense   20,228   182,128  
Co-op Advertising Expense   6,162   68,875  
Repairs & Maint Expense   14,627   112,707  
Janitorial Services   21,857   197,395  
Janitorial Supplies Expense   3,741   57,308  
Insurance Expense   23,630   175,699  
Property Taxes   18,581   269,514  
Security Expense   3,231   36,515  
Travel & Entertainment   292   3,844  
Vehicle Expense   0   0  
Supplies Expense   11,076   85,145  
Banking Fees   7,916   66,444  
Equipment Rental Expense   0   11,152  
Outside Services Expense   0   7  
Other Theater Expense   3,429   56,819  
Pre-Opening Expense   0   0  
   
 
 
Theater Operating Expenses   640,010   6,181,472  
   
 
 
Operating Income   116,335   2,077,518  
   
 
 
General & Administrative Expenses   52,304   672,455  
Deprec & Amortization   209,927   1,152,592  
Interest Expense   38,254   405,190  
Interest/Dividend Income   (0 ) (16,913 )
Taxes   482   4,335  
Non-Recurring Income/Expense   0   607,968  
   
 
 
Non-Operating (Income)/Expense   300,967   2,825,626  
   
 
 
Net Income   (184,633 ) (748,108 )
   
 
 

14


VIII. BALANCE SHEET (ACCRUAL BASIS ONLY)

 
   Current Month End
  
Cash   2,005,341  
Accts Receivable   (6,981 )
Conc Inventory   37,781  
Concession Rebates   7,299  
Supplies Inventory   9,044  
Prepaids   622,627  
   
 
Current Assets   669,771  

Fixed Assets
 
23,299,007
 
Accumulated Depreciation   (13,236,577 )
   
 
Net Fixed Assets   10,062,430  

Deposits—Leases
 
0
 
Deposits—Concession   865  
Deposits   0  
Investment CLT SA de CV   22,875  
Investment in Mexico   339,643  
Goodwill—Mexico   (156,306 )
   
 
Other Assets   207,077  
   
 
Assets   12,944,619  
   
 
Accounts Payable   2,155,352  
Accrued Payroll   222,780  
Other Accruals   911,652  
Deferred Revenue   482,976  
Concession Advances   (12,636 )
Short Term Notes Payable   0  
   
 
Current Liabilities   3,760,125  

Capital Leases
 
(10,401
)
Credit Facility Debt   1,233,000  
Notes Payable   1,717,721  
   
 
Debt and Capital Leases   2,940,321  

Deferred Rent Accrual
 
4,240,278
 
Intercompany Accounts   2,144,460  
   
 
Long-Term Liabilities   6,384,738  

Common Stock
 
62,892
 
Additional Paid In Capital   29,642,292  
Treasury Stock   0  
Retained Earnings   (26,278,047 )
Current Year Retained Earnings   (3,567,701 )
Current Year Dividends   0  
   
 
Shareholders' Equity   (140,564 )
   
 
Liabilities & Equity   12,944,619  
   
 

15


STATEMENT OF CASH FLOWS (Supplement to Balance Sheet)

 
   Current Month
  

CASH FLOW FROM OPERATIONS
 
 
 
Net Income / (Loss)   (184,633 )
Depreciation & Amortization   209,927  
Non-Cash Loss on Sale of Equipment   0  
Deferred Rent   13,950  
Changes in Operating Assets & Liabilities:      
  Change in Current Assets   (4,796 )
  Change in Other Assets   25  
  Change in Accounts Payable   (9,811 )
  Change in Other Liabilities   (9,865 )
   
 
Net Cash Provided By / (Used In) Operations   14,797  

CASH FLOW FROM INVESTING ACTIVITIES
 
 
 
Purchase of Property   0  
Sale of Property   0  
   
 
Net Cash Provided By / (Used In) Investing Activities   0  

CASH FLOW FROM FINANCING ACTIVITIES
 
 
 
Payment of Debt & Capital Lease Obligations   (707,000 )
Proceeds from Debt Issuance / Drawdown   0  
Proceeds from Issuance of Common Stock   0  
   
 
Net Cash Provided By / (Used In) Financing Activities   (707,000 )
   
 
Net Increase / (Decrease) in Cash   (692,203 )
   
 
Beginning of Period Cash Balance   2,697,544  
   
 
End of Period Cash Balance   2,005,341  
   
 

16


IX. QUESTIONNAIRE

1.
Has the debtor-in-possession made any payments on its pre-petition unsecured debt, except as has been authorized by the court?

    No /x/
    Yes / /
    Explain:

2.
Has the debtor-in-possession during this reporting period provided compensation or remuneration to any officers, directors, principals or other insiders without appropriate authorization?

    No /x/
    Yes / /
    Amount, to whom, and for what period:

3.
State what progress was made during the reporting period toward filing a plan of reorganization: Plan confirmed on October 5, 2001, effective October 18, 2001. No appeals were filed.

4.
Describe potential future events which may have a significant impact on the case.

5.
Attach copies of all Orders granting relief from the automatic stay that were entered during the reporting period.

6.
Did you receive any exempt income this month, which is not set forth in the operating report?

    No /x/
    Yes / /
    If yes, please set forth the amounts and the source of the income.

I, Donald H. Harnois, Jr., Chief Financial Officer, declare under penalty of perjury that I have fully read and understood the foregoing debtor-in-possession operating report and that the information contained herein is true and complete to the best of my knowledge.

Date: October 18, 2001    

 
 
s/ DONALD H. HARNOIS, JR.
Principal for debtor-in-possession

17



QuickLinks

I. CASH RECEIPTS AND DISBURSEMENTS A. (GENERAL ACCOUNT*)
TOTAL DISBURSEMENTS DURING CURRENT PERIOD (General Account)
B. (PAYROLL ACCOUNT)
TOTAL DISBURSEMENTS DURING CURRENT PERIOD (Payroll Account)
B. (TAX ACCOUNT)
D. SUMMARY SCHEDULE OF CASH
OTHER ACCOUNTS (Supplement to schedule I.D.)
II. STATUS OF PAYMENTS TO SECURED CREDITORS, LESSORS, AND OTHER PARTIES TO EXECUTORY CONTRACTS
III. TAX LIABILITIES
IV. AGING OF ACCOUNTS PAYABLE AND ACCOUNTS RECEIVABLE
V. INSURANCE COVERAGE
VI. UNITED STATES TRUSTEE QUARTERLY FEES (TOTAL PAYMENTS)
VII. PROFIT AND LOSS STATEMENT (ACCRUAL BASIS ONLY)
VIII. BALANCE SHEET (ACCRUAL BASIS ONLY)
STATEMENT OF CASH FLOWS (Supplement to Balance Sheet)
IX. QUESTIONNAIRE