EX-99.2 4 a2065040zex-99_2.htm EXHIBIT 99.2 Prepared by MERRILL CORPORATION
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Exhibit 99.2

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: October 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: November 19, 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. 10
FOR THE MONTH ENDING: October 31, 2001


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

1. TOTAL RECEIPTS PER ALL PRIOR GENERAL ACCOUNT REPORTS   14,398,492.59

2. LESS: TOTAL DISBURSEMENTS PER ALL PRIOR GENERAL ACCOUNT REPORTS
 
14,489,742.37

3. BEGINNING BALANCE
 
(91,249.78)

4. RECEIPTS DURING CURRENT PERIOD
 
 

 
 
ACCOUNTS RECEIVABLE—PRE-FILING
 
0.00

 
 
ACCOUNTS RECEIVABLE—POST-FILING
 
0.00

 
 
GENERAL SALES
 
1,044,070.10

 
 
OTHER (SPECIFY) Advanced ticket sales, Mexico mgmnt fees
 
162,563.82

 
 
OTHER ** (SPECIFY) New Equity Contribution
 
1,000,000.00

 
 
TOTAL RECEIPTS THIS PERIOD
 
2,206,633.92

5. BALANCE:
 
 
 
 
 
2,115,384.14

6. LESS: TOTAL DISBURSEMENTS DURING CURRENT PERIOD
(Total from Page 2)
 
1,824,867.29

7. ENDING BALANCE
 
290,516.85

8. GENERAL ACCOUNT NUMBER
 
 
 
 
 
DEPOSITORY NAME AND LOCATION
 
0700494381
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                    
10/1/01   17311   THE COUDURES FAMILY LIMITED   Rent   40,321.79    
10/1/01   17312   MISSION GROVE THEATER   Rent   64,443.41    
10/1/01   17313   MISSION GROVE THEATERS II   Rent   32,355.40    
10/1/01   17314   OCEANSIDE MISSION MARKET PLACE   Rent   66,947.53    
10/1/01   17315   REDEVELOPMENT AGENCY CITY OF   Rent   82,000.00    
10/1/01   17316   REDEVELOPMENT AGENCY CITY OF   Rent   12,500.00    
10/1/01   17317   UNITED TITLE COMPANY   Rent   4,983.30    
10/2/01   17318   20TH CENTURY FOX   Film Payable   208.95    
10/2/01   17319   BUENA VISTA   Film Payable   1,208.71    
10/2/01   17320   LIONS GATE   Film Payable   13,528.98    
10/2/01   17321   MGM FILMS   Film Payable   3,700.82    
10/2/01   17322   MIRAMAX FILMS   Film Payable   2,211.83    
10/2/01   17323   NEW LINE PICTURES   Film Payable   3,660.46    
10/2/01   17324   PARAMOUNT PICTURES   Film Payable   18,636.91    
10/2/01   17325   UNIVERSAL FILM EXCHANGES, INC.   Film Payable   7,249.95    
10/2/01   17326   WARNER BROTHERS   Film Payable   2,840.75    
10/2/01   17327   FASHION SEAL UNIFORMS   Uniforms   1,963.32    
9/4/01   17328   AIRBORNE EXPRESS   Film transport   236.60    
9/4/01   17329   CITY OF RIVERSIDE   Utilities   197.80    
9/4/01   17330   D.C. ELECTRONICS TWO, INC.   R&M   310.00    
9/4/01   17331   FALLBROOK AWARDS   Corp. Events   21.45    
9/4/01   17332   HARPSTER ASSOCIATES   Advertising   65.00    
9/4/01   17333   JANITORIAL MAINTENANCE   Janitorial   1,800.00    
9/4/01   17334   MICHAEL F. KERR   R&M   584.00    
9/4/01   17335   MEGAPATH NETWORKS INC.   Computer   162.63    
9/4/01   17336   OPTIMAL INTEGRATED SOLUTIONS   Computer   50    
9/4/01   17337   PARAMOUNT PICTURES   Film Payable   194.00    
9/4/01   17338   PRO-TEC LOCK & SAFE   R&M   100.31    

3

9/4/01   17339   PROVIDENCE   Emp. Benefits   85.00    
9/4/01   17340   QUIEL BROS. SIGN CO., INC.   R&M   844.76    
9/4/01   17341   SAN DIEGO GAS & ELECTRIC   Utilities   9,002.07    
        ELECTRIC            
9/4/01   17342   SOLOMON FRIEDMAN   Outside Services   100.00    
9/4/01   17343   STRUCTURAL TERMITE & PEST   R&M   85.00    
10/9/01   17344   20TH CENTURY FOX   Film Payable   7,959.61    
10/9/01   17345   BUENA VISTA   Film Payable   1,122.75    
10/9/01   17346   LIONS GATE   Film Payable   1,779.08    
10/9/01   17347   MGM FILMS   Film Payable   2,745.87    
10/9/01   17348   MIRAMAX FILMS   Film Payable   2,853.38    
10/9/01   17349   NEW LINE PICTURES   Film Payable   4,027.81    
10/9/01   17350   PARAMOUNT PICTURES   Film Payable   13,770.93    
10/9/01   17351   UNIVERSAL FILM EXCHANGES, INC.   Film Payable   5,040.01    
10/9/01   17352   WARNER BROTHERS   Film Payable   1,837.80    
10/10/01   17353   AIRBORNE EXPRESS   Film transport   200.20    
10/10/01   17354   AON RISK SERVICES, INC.   Insurance   112,500.00    
10/10/01   17355   ARMORED TRANSPORT   Security   905.69    
10/10/01   17356   BRAKE WATER TRANSPORT, INC.   Film transport   769.00    
10/10/01   17357   DAN CAHILL   Travel expenses   80.92    
10/10/01   17358   CALIFORNIA CHOICE BENEFIT ADM   Emp. Benefits   6,735.24    
10/10/01   17359   CITY OF RIVERSIDE   Utilities   15,560.38    
10/10/01   17360   CITY OF SAN BERNARDINO   Utilities   1,095.57    
10/10/01   17361   CONTINENTAL STOCK TRANSFER   Outside Services   802.09    
10/10/01   17362   CR&R INC.   Utilities   1,272.18    
10/10/01   17363   ENERGI   Emp. Benefits   52.50    
10/10/01   17364   GENESYS CONFERENCING   Outside Services   368.02    
10/10/01   17365   THE GUARDIAN   Advertising   1,347.94    
10/10/01   17366   INLAND LIGHTING SUPPLIES, INC.   R&M   457.41    
10/10/01   17367   JANITORIAL MAINTENANCE   Janitorial   15,132.00    
10/10/01   17368   PACIFIC BELL   Telephone   1,346.49    
10/10/01   17369   PAUL LASLO & ASSOC.   Uniforms   2,108.66    
10/10/01   17370   PROCTOR COMPANIES   R&M   92.92    
10/10/01   17371   PURE FLO WATER   Office supplies   29.75    
10/10/01   17372   REEL SOURCE, INC.   R&M   175.00    

4

10/10/01   17373   R & J FIAL ENTERPRISES   Janitorial   10.62    
10/10/01   17374   SOURCE ONE   R&M   262.40    
10/10/01   17375   STATE COMPENSATION INS. FUND   Emp. Benefits   6,941.36    
10/10/01   17376   STRUCTURAL TERMITE & PEST   R&M   85.00    
10/10/01   17377   THERMAL-COOL   R&M   110.53    
10/10/01   17378   VERIZON CALIFORNIA   Telephone   304.89    
10/10/01   17379   VISION SERVICE PLAN- (CA)   Emp. Benefits   396.96    
10/10/01   17380   WAXIE SANITARY SUPPLY   Janitorial   3,675.91    
10/10/01   17381   WESTERN MUNICIPAL WATER DIST.   Utilities   397.41    
10/10/01   17382   KIM ZOLNA   Travel expenses   215.12    
10/10/01   17383   AIRGAS   Concessions   50.00    
10/10/01   17384   HERITAGE FOODS LLC   Concessions   410.00    
10/16/01   17385   20TH CENTURY FOX   Film Payable   30,065.20    
10/16/01   17386   ARTISAN RELEASING INC.   Film Payable   4,543.33    
10/16/01   17387   MGM FILMS   Film Payable   1,461.16    
10/16/01   17388   MIRAMAX FILMS   Film Payable   2,575.58    
10/16/01   17389   NEW LINE PICTURES   Film Payable   2,450.18    
10/16/01   17390   PARAMOUNT PICTURES   Film Payable   25,411.70    
10/16/01   17391   UNIVERSAL FILM EXCHANGES, INC.   Film Payable   1,882.14    
10/16/01   17392   WARNER BROTHERS   Film Payable   10,743.86    
10/18/01   17393   ADVANCED COMMUNICATIONS SYSTEM   R&M   517.31    
10/18/01   17394   AIRBORNE EXPRESS   Film transport   345.80    
10/18/01   17395   AMERICAN EXPRESS   Misc.   2,211.18    
10/18/01   17396   ANDY'S GLASS CO., INC.   R&M   181.84    
10/18/01   17397   ARMORED TRANSPORT   Security   144.45    
10/18/01   17398   CITY OF OCEANSIDE   Utilities   1,637.41    
10/18/01   17399   CITY OF SAN BERNARDINO   Utilities   627.00    
10/18/01   17400   DE LAGE LANDEN   Telephone   77.43    
10/18/01   17401   THE DEPOSITORY TRUST CO.   Outside Services   90.00    
10/18/01   17402   EASTERN MUNICIPAL WATER DIST.   Utilities   75.11    

5

10/18/01   17403   EMERITUS COMMUNICATIONS   Telephone   302.47    
10/18/01   17404   MANULIFE FINANCIAL   Emp. Benefits   5,673.57    
10/18/01   17405   MIRAMAX FILMS   Film Payable   142.34    
10/18/01   17406   NORTH COUNTY TIMES   Advertising   3,006.95    
10/18/01   17407   OFFICE DEPOT, INC   Office supplies   272.66    
10/18/01   17408   PACIFIC BELL   Telephone   414.36    
10/18/01   17409   THE PRESS ENTERPRISE CO.   Advertising   15,689.65    
10/18/01   17410   PROCTOR COMPANIES   R&M   190.37    
10/18/01   17411   QUIEL BROS. SIGN CO., INC.   R&M   33.80    
10/18/01   17412   SAN BERNARDINO COUNTY SUN   Advertising   6,594.23    
10/18/01   17413   SOUTHERN CALIFORNIA EDISON   Utilities   28,204.79    
10/18/01   17414   STAPLES CREDIT PLAN   Office supplies   507.59    
10/18/01   17415   SUPERIOR UNIFORM GROUP, INC.   Uniforms   1,861.11    
10/18/01   17416   UNION TRIBUNE   Advertising   790.20    
10/18/01   17417   VERIZON CALIFORNIA   Telephone   547.75    
10/18/01   17418   WARNER BROTHERS   Film Payable   450.00    
10/18/01   17419   WAXIE SANITARY SUPPLY   Janitorial   263.43    
10/18/01   17420   HERITAGE FOODS LLC   Concessions   541.75    
10/18/01   17421   METROPOLITAN PROVISIONS   Concessions   765.30    
10/18/01   17422   METROPOLITAN PROVISIONS   Concessions   6,118.75    
10/18/01   17423   PEPSI-COLA COMPANY   Concessions   3,933.80    
10/23/01   17424   20TH CENTURY FOX   Film Payable   22,166.09    
10/23/01   17425   BUENA VISTA   Film Payable   8,553.81    
10/23/01   17426   MGM FILMS   Film Payable   643.43    
10/23/01   17427   MIRAMAX FILMS   Film Payable   11,564.85    
10/23/01   17428   NEW LINE PICTURES   Film Payable   978.08    
10/23/01   17429   PARAMOUNT PICTURES   Film Payable   11,034.58    
10/23/01   17430   WARNER BROTHERS   Film Payable   46,195.71    
10/26/01   17431   AIRBORNE EXPRESS   Film transport   182.00    
10/26/01   17432   CALIFORNIA TILE & FLOOR COVERING   MG Lobby   11,000.00    

6

10/26/01   17433   CONTINENTAL STOCK TRANSFER   Outside Services   528.36    
10/26/01   17434   CT CORPORATION SYSTEM   Computer   460.00    
10/26/01   17435   DREAM WORKS DISTRIBUTION, LLC   Film Payable   175.14    
10/26/01   17436   GENESYS CONFERENCING   Outside Services   186.00    
10/26/01   17437   MANULIFE FINANCIAL   Emp. Benefits   2,713.67    
10/26/01   17438   MCCANN-ERICKSON, INC.   Advertising   1,249.45    
10/26/01   17439   MERRILL COMMUNICATIONS L.L.C.   Public Relations   3,018.00    
10/26/01   17440   TERRY MILLIMAN   R&M   40.00    
10/26/01   17441   MURPHY'S PRINTING   Ticket Stock   12,040.00    
10/26/01   17442   PACIFIC BELL   Telephone   29.19    
10/26/01   17443   PARAMOUNT PICTURES   Film Payable   518.00    
10/26/01   17444   PC CONNECTION SALES CORP   Computer   382.26    
10/26/01   17445   PRUDENTIAL   Emp. Benefits   253.10    
10/26/01   17446   R & J FIAL ENTERPRISES   Janitorial   37.23    
10/26/01   17447   ROCKY MOUNTAIN EMPLOYEE BENE.   Emp. Benefits   618.75    
10/26/01   17448   SKY COURIER   Film transport   145.60    
10/26/01   17449   SOLOMON FRIEDMAN   Advertising   400.00    
10/26/01   17450   SOURCE ONE   R&M   136.03    
10/26/01   17451   STAPLES CREDIT PLAN   Office supplies   186.87    
10/26/01   17452   STRUCTURAL TERMITE & PEST   R&M   85.00    
10/26/01   17453   UNIVERSAL PICTURES   Film Payable   709.04    
10/26/01   17454   U.S. TRUSTEE   Outside Services   10,000.00    
10/26/01   17455   ROY M. VAN ASCH, JANITORIAL   Janitorial   1,875.80    
10/26/01   17456   WAXIE SANITARY SUPPLY   Janitorial   579.00    
10/26/01   17457   WARNER BROTHERS   Film Payable   3,000.00    
10/26/01   17458   HERITAGE FOODS LLC   Concessions   845.56    
10/26/01   17459   ICEE—USA CORP.   Concessions   4,693.20    
10/26/01   17460   METROPOLITAN PROVISIONS   Concessions   9,946.64    
10/26/01   17461   OTIS SPUNKMEYER, INC.   Concessions   378.50    

7

10/26/01   17462   PEPSI-COLA COMPANY   Concessions   2,943.55    
10/29/01   17463   COCA-COLA ENTERPRISES   Concessions   5,000.00    
10/30/01   17464   20TH CENTURY FOX   Film Payable   11,444.11    
10/30/01   17465   BUENA VISTA   Film Payable   23,943.03    
10/30/01   17466   IDP DISTRIBUTION   Film Payable   5,903.78    
10/30/01   17467   MGM FILMS   Film Payable   8,510.71    
10/30/01   17468   MIRAMAX FILMS   Film Payable   14,728.70    
10/30/01   17469   NEW LINE PICTURES   Film Payable   352.95    
10/30/01   17470   PARAMOUNT PICTURES   Film Payable   5,029.42    
10/30/01   17471   WARNER BROTHERS   Film Payable   20,380.16    
                    1,014,761.03
Wire Transfers                
10/1/01   431   PEPSI-COLA COMPANY   Concessions   2,872.26    
10/1/01   432   METROPOLITAN PROVISIONS   Concessions   4,854.01    
10/11/01   433   PEPSI-COLA COMPANY   Concessions   539.55    
10/11/01   434   METROPOLITAN PROVISIONS   Concessions   8,538.16    
10/15/01   435   SONY PICTURES   Film payable   30,500.00    
10/24/01   436   TREASURER AND TAX COLLECTOR   MG18 Property Tax   53,776.18    
10/29/01   437   SONY PICTURES   Film payable   44,000.00    
                    145,080.16
Direct Debits to Union Bank of California Acct # 0700494381    
1-Oct       UBOC Loan Payment       117,452.33    
5-Oct       ADP Fees       735.77    
19-Oct       ADP Fees       616.13    
25-Oct       Bank Service Charges       1.43    
26-Oct       ADP Payroll Fees       7.00    
29-Oct       Sales Tax Payment       14,170.00    
31-Oct       Internet Service Fees & Postage       81.88    
31-Oct       Bank Service Charges       3,569.74    
        Net Purchase of Change       10,500.00    
31-Oct                    
                    147,134.28
Disbursements for Cinemas            
30-Oct       Balance of account transferred to Theater's Master acct.       2,104.46    
                    2,104.46
Disbursements from Elective Creditor
Distribution Fund		        
24-Oct   2001   MIDLAND BANK       325,000.00    

8

24-Oct   2002   MELLOW MANOR PRODUCTIONS INC.       1,595.54    
24-Oct   2003   SOURCE ONE       2,381.08    
24-Oct   2004   ARTHUR ANDERSEN LLP       7,995.00    
24-Oct   2005   MEDIA TECHNOLOGY SOURCE, INC.       9,815.74    
                    346,787.36
Intercompany Transfers            
9-Oct       To UBOC Acct. # 07007494365   Payroll   55,000.00    
10-Oct       To UBOC Acct. # 2180038712   Payroll   10,000.00    
23-Oct       To UBOC Acct. # 07007494365   Payroll   104,000.00    
                    169,000.00
TOTAL ACCOUNTS PAYABLE DISBURSEMENTS           1,824,867.29


B. (PAYROLL ACCOUNT)

1. TOTAL RECEIPTS PER ALL PRIOR PAYROLL ACCOUNT REPORTS   1,956,535.93

2. LESS: TOTAL DISBURSEMENTS PER ALL PRIOR PAYROLL ACCOUNT REPORTS
 
1,973,567.90

3. BEGINNING BALANCE
 
(17,031.97)

4. RECEIPTS DURING CURRENT PERIOD TRANSFERRED FROM GENERAL ACCOUNT
 
169,000.00

5. BALANCE:
 
 
 
151,968.03

6. LESS: TOTAL DISBURSEMENTS DURING CURRENT PERIOD
 
192,291.90

7. ENDING BALANCE
 
(40,323.87)

8. PAYROLL ACCOUNT NUMBER
 
07007494365

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

9


TOTAL DISBURSEMENTS DURING CURRENT PERIOD (Payroll Account)

October 12, 2001 Payroll Run—Summary of Expense

    
    
  Wages Earned—Normal Recurring   70,485.22    
  Wages Earned—Adjustments & Voids   760.14    
  Wage Garnishments   148.38    
  Federal Income Taxes   16,269.47    
  Social Security   8,765.00    
  Medicare   2,970.05    
  State Unemployment Taxes—Employer   849.95    
  Federal Unemployment Taxes   219.34    
  State Unemployment Taxes—Employee   541.12    
  State Income Taxes   3,723.50    
    104,732.17    
October 12, 2001 Payroll Run—Summary of Disbursements        
  ADP Checks Issued [Net salary plus tax]   103,972.03    
  Manual Checks, etc.   760.14    
          104,732.17
October 26, 2001 Payroll Run—Summary of Expense        
  Wages Earned—Normal Recurring   61,863.91    
  Wages Earned—Adjustments & Voids   1,311.33    
  Wage Garnishments   212.00    
  Federal Income Taxes   8,892.53    
  Social Security   9,297.06    
  Medicare   2,398.08    
  State Unemployment Taxes—Employer   876.27    
  Federal Unemployment Taxes   226.13    
  State Unemployment Taxes—Employee   554.81    
  State Income Taxes   1,927.61    
    87,559.73    

October 26, 2001 Payroll Run—Summary of Disbursements
 
 
 
 
  ADP Checks Issued [Net salary plus tax]   86,248.40    
  Manual Checks Issued   1,311.33    
        87,559.73
TOTAL PAYROLL ACCOUNT DISBURSEMENTS   192,291.90

10


B. (TAX ACCOUNT)

1.   TOTAL RECEIPTS PER ALL PRIOR TAX ACCOUNT REPORTS   159,000.00

2.
 
LESS: TOTAL DISBURSEMENTS PER ALL PRIOR TAX ACCOUNT REPORTS
 
131,257.29

3.
 
BEGINNING BALANCE
 
27,742.71

4.
 
RECEIPTS DURING CURRENT PERIOD TRANSFERRED FROM GENERAL ACCOUNT
 
0.00

5.
 
BALANCE:
 
27,742.71

6.
 
LESS: TOTAL DISBURSEMENTS DURING CURRENT PERIOD
Date: 10/29/01, wire transfer, To: CA State Board of Equalization
 
14,170.00

 
 
    TOTAL DISBURSEMENTS THIS PERIOD
 
14,170.00

7.
 
ENDING BALANCE
 
13,572.71
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
 
290,516.85
 
  PAYROLL ACCOUNT   (40,323.87 )
  TAX ACCOUNT   13,572.71  
  OTHER ACCOUNTS*:   2,095,522.70  
  OTHER MONIES*:   0.00  
  PETTY CASH**   0.00  

TOTAL CASH AVAILABLE
 
1,359,288.39
 
*
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

11


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   1,217,741.15
  Merchant   0700494-357   207,908.60
  Moviefone   0700494-146   0.00
  Elective Creditor Distribution Fund   457000-1170   669,872.95
  FOB Cinemastar Luxury Cinemas, Inc.   0700494-373   0.00
Total       2,095,522.70


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   10   $ 17,646.36

12


III. TAX LIABILITIES

FOR THE REPORTING PERIOD:    
  GROSS SALES SUBJECT TO SALES TAX   111,592.92
  TOTAL WAGES PAID   192,291.90
 
  

 
   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   8,369.48   0.00    
REAL PROPERTY   17,445.59   17,445.59   4/10/01
OTHER (SPECIFY)            

TOTAL
 
25,815.07
 
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   53,447.25        
31-60 days   200.00        
61-90 days            
91-120 days            
Over 120 days            
TOTALS:   53,647.25        


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   11/30/01
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

13


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
9/30/01   6,430,686.00   10,000.00   10/26/01   10,000.00   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.

14

VII. PROFIT AND LOSS STATEMENT (ACCRUAL BASIS ONLY)

 
   Current Month
   Cumulative
Post-Petition
  
Admission Revenue   746,299   10,713,555  
Concession Revenue   287,124   4,213,607  
Video Revenue   16,863   218,253  
Screen Advertising   10,366   92,654  
Other Revenues   4,028   32,652  
   
 
 
Theater Revenue   1,064,679   15,270,720  

Film Rental Expense
 
456,529
 
5,826,177
 
Concession COGS   44,956   622,358  
   
 
 
Theater Cost of Goods Sold   501,485   6,448,536  
   
 
 
Theater Gross Margin   563,194   8,822,184  
   
 
 
Salaries   120,500   1,419,939  
Payroll Taxes   11,530   149,534  
Rent Expense   268,111   2,801,347  
CAM Expense   31,257   316,960  
Utility Expense   68,230   647,773  
Advertising Expense   19,993   202,121  
Co-op Advertising Expense   7,496   76,371  
Repairs & Maint Expense   15,366   128,073  
Janitorial Services   21,491   218,886  
Janitorial Supplies Expense   4,901   62,210  
Insurance Expense   4,814   173,768  
Property Taxes   18,396   275,175  
Security Expense   3,113   39,627  
Travel & Entertainment   215   4,059  
Vehicle Expense   0   0  
Supplies Expense   9,417   94,562  
Banking Fees   844   67,287  
Equipment Rental Expense   0   11,152  
Outside Services Expense   0   7  
Other Theater Expense   4,659   61,514  
Pre-Opening Expense   0   0  
   
 
 
Theater Operating Expenses   610,333   6,750,364  
   
 
 
Operating Income   (47,138 ) 2,071,820  
   
 
 
General & Administrative Expenses   184,154   1,333,135  
Deprec & Amortization   209,927   1,362,519  
Interest Expense   33,611   438,801  
Interest/Dividend Income   (156 ) (17,070 )
Taxes   482   4,817  
Non-Recurring Income/Expense   (21,398 ) (106,936 )
   
 
 
Non-Operating (Income)/Expense   406,619   3,015,266  
   
 
 
Net Income   (453,758 ) (943,446 )
   
 
 

15

VIII. BALANCE SHEET (ACCRUAL BASIS ONLY)

 
   Current Month End
  
Cash   2,744,817  
Accts Receivable   591  
Conc Inventory   28,910  
Concession Rebates   7,869  
Supplies Inventory   9,044  
Prepaids   870,353  
   
 
Current Assets   916,768  

Fixed Assets
 
24,370,063
 
Accumulated Depreciation   (13,805,349 )
   
 
Net Fixed Assets   10,564,714  

Deposits—Leases
 
0
 
Deposits—Concession   890  
Deposits   0  
Investment CLT SA de CV   22,875  
Investment in Mexico   339,643  
Goodwill—Mexico   (160,350 )
   
 
Other Assets   199,396  
   
 
Assets   14,425,695  
   
 
Accounts Payable   2,174,959  
Accrued Payroll   245,240  
Other Accruals   1,554,085  
Deferred Revenue   487,410  
Concession Advances   (16,283 )
Short Term Notes Payable   0  
   
 
Current Liabilities   4,445,411  

Capital Leases
 
(10,401
)
Credit Facility Debt   1,198,000  
Notes Payable   1,717,721  
   
 
Debt and Capital Leases   2,905,321  

Deferred Rent Accrual
 
4,254,227
 
Intercompany Accounts   2,139,979  
   
 
Long-Term Liabilities   6,394,207  

Common Stock
 
62,892
 
Additional Paid In Capital   29,642,292  
Treasury Stock   0  
Retained Earnings   (26,278,047 )
Current Year Retained Earnings   (3,763,039 )
Current Year Dividends   0  
   
 
Shareholders' Equity   680,758  
   
 
Liabilities & Equity   14,425,695  
   
 

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 became effective on October 18, 2001.

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: November 19, 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)
IX. QUESTIONNAIRE