EX-99.1 3 a2072590zex-99_1.htm EXHIBIT 99.1
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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: January 2002

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: February 18, 2002   /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. 13
FOR THE MONTH ENDING: January 31, 2002


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

1.   TOTAL RECEIPTS PER ALL PRIOR GENERAL ACCOUNT REPORTS   20,583,891.03
2.   LESS: TOTAL DISBURSEMENTS PER ALL PRIOR GENERAL ACCOUNT REPORTS   20,122,150.46
3.   BEGINNING BALANCE   461,740.57
4.   RECEIPTS DURING CURRENT PERIOD    
            ACCOUNTS RECEIVABLE—PRE-FILING   0.00
            ACCOUNTS RECEIVABLE—POST-FILING   0.00
            GENERAL SALES   1,363,602.99
            OTHER (SPECIFY) Advanced ticket sales, Mexico mgmnt fees   82,118.93
            OTHER ** (SPECIFY)    
    TOTAL RECEIPTS THIS PERIOD   1,445,721.92
5.   BALANCE:   1,907,462.49
6.   LESS: TOTAL DISBURSEMENTS DURING CURRENT PERIOD
    (Total from Page 2)		   1,854,562.91
7.   ENDING BALANCE   52,899.58
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.

1


TOTAL DISBURSEMENTS DURING CURRENT PERIOD (General Account)

Date
   #
   Payee
   Purpose
   Amount
    
Checks—Union Bank of California Acct # 0700494381
1/2/02   17839   THE COUDURES FAMILY LIMITED   Rent   42,998.02    
1/2/02   17840   FRANK MISSION MARKETPLACE, LLC   Rent   53,078.09    
1/2/02   17841   MISSION GROVE THEATER   Rent   65,486.04    
1/2/02   17842   MISSION GROVE THEATERS II   Rent   32,786.24    
1/2/02   17843   REDEVELOPMENT AGENCY CITY OF   Rent   82,000.00    
1/2/02   17844   REDEVELOPMENT AGENCY CITY OF   Rent   12,500.00    
1/2/02   17845   UNITED TITLE COMPANY   Rent   4,983.30    
1/2/02   17846   20TH CENTURY FOX   Film Payable   9,017.39    
1/2/02   17847   BUENA VISTA   Film Payable   4,330.15    
1/2/02   17848   PARAMOUNT PICTURES   Film Payable   16,312.30    
1/2/02   17849   UNIVERSAL FILM EXCHANGES, INC.   Film Payable   1,977.10    
1/2/02   17850   WARNER BROTHERS   Film Payable   21,837.55    
1/4/02   17851   CITY OF SAN BERNARDINO   Film Payable   737.90    
1/4/02   17852   PRUDENTIAL   Emp. Benefits   494.14    
1/4/02   17853   STRUCTURAL TERMITE & PEST   R & M   85.00    
1/4/02   17854   ROY M. VAN ASCH, JANITORIAL   Janitorial   1,875.80    
1/4/02   17855   COCA-COLA ENTERPRISES   Concession Inventory   9,069.75    
1/4/02   17856   HERITAGE FOODS LLC   Concession Inventory   299.88    
1/8/02   17857   20TH CENTURY FOX   Film Payable   12,625.35    
1/8/02   17858   BUENA VISTA   Film Payable   3,484.95    
1/8/02   17859   NEW LINE PICTURES   Film Payable   112,246.48    
1/8/02   17860   PARAMOUNT PICTURES   Film Payable   45,897.53    
1/8/02   17861   UNIVERSAL FILM EXCHANGES, INC.   Film Payable   15,254.88    
1/8/02   17862   WARNER BROTHERS   Film Payable   28,811.01    
1/11/02   17863   AIRBORNE EXPRESS   Film Transport   364.00    
1/11/02   17864   EMPERATRIZ ALEJANDRE   Tuition   81.28    
1/11/02   17865   ALL AMERICAN PURE BEVERAGE   R & M   423.55    
1/11/02   17866   ARMORED TRANSPORT   Security   898.07    
1/11/02   17867   CITY OF RIVERSIDE   Utilities   257.74    

2

1/11/02   17868   CITY OF SAN BERNARDINO   Security   979.02    
1/11/02   17869   CT CORPORATION SYSTEM   Dues   195.00    
1/11/02   17870   D.C. ELECTRONICS TWO, INC.   Security   215.00    
1/11/02   17871   ENERGI   Emp. Benefits   120.50    
1/11/02   17872   EXECUTIVE SAFE & SECURITY CORP   R & M   268.75    
1/11/02   17873   INLAND LIGHTING SUPPLIES, INC.   R & M   560.12    
1/11/02   17874   LOS ANGELES TIMES   Advertising   48.00    
1/11/02   17875   MANULIFE FINANCIAL   Emp. Benefits   5,823.26    
1/11/02   17876   NORTH COUNTY TIMES   Advertising   2,711.78    
1/11/02   17877   PACIFIC BELL   Telephone   299.27    
1/11/02   17878   PIZZA PRESS EXPRESS   Advertising   2,700.00    
1/11/02   17879   THE PRESS ENTERPRISE CO.   Advertising   14,853.25    
1/11/02   17880   PURE FLO WATER   Office Supplies   37.28    
1/11/02   17881   QUALITY INSTALLATIONS   R & M   240.00    
1/11/02   17882   QUIEL BROS. SIGN CO., INC.   R & M   654.48    
1/11/02   17883   REEL SOURCE, INC.   Outside Svcs   175.00    
1/11/02   17884   RIVER VILLAGE PROPERTIES   Rent   17,807.04    
1/11/02   17885   R & J FIAL ENTERPRISES   Uniforms   18.41    
1/11/02   17886   ROTO-ROOTER—RIVERSIDE #54   R & M   87.75    
1/11/02   17887   SAN BERNARDINO COUNTY SUN   Advertising   6,318.40    
1/11/02   17888   SAN DIEGO GAS & ELECTRIC   Utilities   2,820.11    
1/11/02   17889   SKY COURIER   Film Transport   109.20    
1/11/02   17890   SOUTHERN CALIFORNIA EDISON   Utilities   7,974.20    
1/11/02   17891   TRICO DISPOSAL, INC.   Utilities   697.71    
1/11/02   17892   UNION TRIBUNE   Dues   87.20    
1/11/02   17893   WARNER BROTHERS   Film Payable   941.28    
1/11/02   17894   WRS MAINTENANCE & JANITORIAL   Janitorial   8,000.00    
1/11/02   17895   KIM ZOLNA   Travel   247.65    
1/11/02   17896   COCA-COLA ENTERPRISES   Concession Inventory   5,556.44    
1/11/02   17897   HERITAGE FOODS LLC   Concession Inventory   128.80    
1/11/02   17898   ICEE—USA CORP.   Concession Inventory   450.56    
1/11/02   17899   METROPOLITAN PROVISIONS   Concession Inventory   12,365.40    

3

1/15/02   17900   20TH CENTURY FOX   Film Payable   12,169.35    
1/15/02   17901   ARTISAN RELEASING INC.   Film Payable   470.22    
1/15/02   17902   BUENA VISTA   Film Payable   2,906.81    
1/15/02   17903   DREAM WORKS DISTRIBUTION, LLC   Film Payable   2,559.36    
1/15/02   17904   LIONS GATE   Film Payable   18,655.30    
1/15/02   17905   MIRAMAX FILMS   Film Payable   7,083.12    
1/15/02   17906   NEW LINE PICTURES   Film Payable   87,011.51    
1/15/02   17907   PARAMOUNT PICTURES   Film Payable   42,482.63    
1/15/02   17908   UNIVERSAL FILM EXCHANGES, INC.   Film Payable   8,536.40    
1/15/02   17909   WARNER BROTHERS   Film Payable   34,131.76    
1/18/02   17910   Imperial A.I. Credit Companies   Insurance   4,433.60    
1/18/02   17911   AIRBORNE EXPRESS   Film Transport   473.20    
1/18/02   17912   AMERICAN EXPRESS   Miscellaneous   3,463.60    
1/18/02   17913   ARMORED TRANSPORT   Security   20.40    
1/18/02   17914   CAL EXPRESS   Postage   28.50    
1/18/02   17915   CALIFORNIA CHOICE BENEFIT ADM.   Emp. Benefits   7,731.54    
1/18/02   17916   CITY OF OCEANSIDE   Utilities   1,160.15    
1/18/02   17917   CITY OF SAN BERNARDINO   Utilities   975.50    
1/18/02   17918   CR&R INC.   Utilities   512.01    
1/18/02   17919   DE LAGE LANDEN   Equipment rental   77.43    
1/18/02   17920   EASTERN MUNICIPAL WATER DIST.   Utilities   173.58    
1/18/02   17921   EMERITUS COMMUNICATIONS   Telephone   425.52    
1/18/02   17922   FRANCHISE TAX BOARD   Tax   737.00    
1/18/02   17923   THE GUARDIAN   Advertising   1,335.06    
1/18/02   17924   HOSTING.COM   Computer   284.93    
1/18/02   17925   MARSH USA INC.   Insurance   139,731.54    
1/18/02   17926   MURPHY'S PRINTING   Printing   38.79    
1/18/02   17927   IMPERIAL CREDIT INDUSTRIES INC   Back Rent   7,676.28    
1/18/02   17928   OFFICE DEPOT CREDIT PLAN   Office Supplies   1,204.12    
1/18/02   17929   PACIFIC BELL   Telephone   922.90    
1/18/02   17930   SKY COURIER   Film Transport   72.80    
1/18/02   17931   STATE COMPENSATION INS. FUND   Workers Comp.   9,267.86    
1/18/02   17932   STRUCTURAL TERMITE & PEST   R & M   170.00    
1/18/02   17933   VERIZON CALIFORNIA   Telephone   576.67    
1/18/02   17934   VISION SERVICE PLAN-(CA)   Emp. Benefits   447.12    

4

1/18/02   17935   WARNER BROTHERS   Film Payable   593.64    
1/18/02   17936   WESTERN MUNICIPAL WATER DIST.   Utilities   471.37    
1/18/02   17937   COCA-COLA ENTERPRISES   Concession Inventory   6,060.42    
1/18/02   17938   HERITAGE FOODS LLC   Concession Inventory   535.85    
1/18/02   17939   ICEE—USA CORP.   Concession Inventory   1,599.85    
1/18/02   17940   METROPOLITAN PROVISIONS   Concession Inventory   18,560.63    
1/22/02   17941   20TH CENTURY FOX   Film Payable   4,822.39    
1/22/02   17942   BUENA VISTA   Film Payable   2,333.85    
1/22/02   17943   MIRAMAX FILMS   Film Payable   9,844.70    
1/22/02   17944   NEW LINE PICTURES   Film Payable   30,642.08    
1/22/02   17945   PARAMOUNT PICTURES   Film Payable   11,261.92    
1/22/02   17946   UNIVERSAL FILM EXCHANGES, INC.   Film Payable   18,772.14    
1/22/02   17947   WARNER BROTHERS   Film Payable   10,326.37    
1/25/02   17948   ALL AMERICAN PURE BEVERAGE   R & M   269.38    
1/25/02   17949   ARCHER'S PLUMBING SERVICE   R & M   600.00    
1/25/02   17950   CITY OF RIVERSIDE   Utilities   12,723.82    
1/25/02   17951   CITY OF SAN BERNARDINO   R & M   735.00    
1/25/02   17952   PACIFIC BELL   Telephone   395.27    
1/25/02   17953   SAN BERNARDINO & RIVERSIDE   R & M   113.14    
1/25/02   17954   SKY COURIER   Film Transport   36.40    
1/25/02   17955   SOLOMON FRIEDMAN   Advertising   200.00    
1/25/02   17956   STAPLES CREDIT PLAN   Office Supplies   405.63    
1/25/02   17957   WARNER BROTHERS   Film Payable   1,199.50    
1/25/02   17958   W.K. GRAFF CO.   R & M   608.15    
1/25/02   17959   WRS MAINTENANCE & JANITORIAL   Janitorial   8,000.00    
1/25/02   17960   HERITAGE FOODS LLC   Concession Inventory   952.73    
1/25/02   17961   METROPOLITAN PROVISIONS   Concession Inventory   6,255.23    
1/25/02   17962   OTIS SPUNKMEYER, INC.   Concession Inventory   133.00    
1/25/02   17963   CINEMASTAR LUXURY THEATERS   Miscellaneous   709.44    
1/28/02   17964   20TH CENTURY FOX   Film Payable   2,799.39    
1/28/02   17965   BUENA VISTA   Film Payable   1,143.68    
1/28/02   17966   MIRAMAX FILMS   Film Payable   3,857.48    
1/28/02   17967   NEW LINE PICTURES   Film Payable   15,913.51    
1/28/02   17968   PARAMOUNT PICTURES   Film Payable   27,734.28    
1/28/02   17969   UNIVERSAL FILM EXCHANGES, INC.   Film Payable   12,033.88    

5

1/28/02   17970   WARNER BROTHERS   Film Payable   5,739.47    
1/31/02   17971   AIRBORNE EXPRESS   Film Transport   199.44    
1/31/02   17972   ALL AMERICAN PURE BEVERAGE   R & M   385.75    
1/31/02   17973   BRAKE WATER TRANSPORT, INC.   Film Transport   1,108.00    
1/31/02   17974   CITY OF SAN BERNARDINO   Licenses and Security   150.00    
1/31/02   17975   DIB'S SAFE AND LOCK SERVICE   R & M   142.73    
1/31/02   17976   IMAGE COM   R & M   1,100.00    
1/31/02   17977   MICHAEL F. KERR   R & M   3,102.38    
1/31/02   17978   LORMAN EDUCATION SERVICES   Tuition   279.00    
1/31/02   17979   MANULIFE FINANCIAL   Emp. Benefits   7,221.26    
1/31/02   17980   MCCANN-ERICKSON, INC.   Advertising   1,193.30    
1/31/02   17981   MIRAMAX FILMS   Film Payable   383.07    
1/31/02   17982   MITCHELL GLASS CO.   R & M   90.00    
1/31/02   17983   PROCTOR COMPANIES   R & M   114.03    
1/31/02   17984   PURE FLO WATER   Office Supplies   31.34    
1/31/02   17985   QUIEL BROS. SIGN CO., INC.   R & M   575.77    
1/31/02   17986   SAN BERNARDINO & RIVERSIDE   R & M   87.43    
1/31/02   17987   SKY COURIER   Film Transport   36.40    
1/31/02   17988   SOLOMON FRIEDMAN   Advertising   325.00    
1/31/02   17989   SOURCE ONE   R & M   4,759.23    
1/31/02   17990   SOUTHERN CALIFORNIA EDISON   Utilities   22,681.82    
1/31/02   17991   STATE BOARD OF EQUALIZATION   Tax   1,631.00    
1/31/02   17992   STRUCTURAL TERMITE & PEST   R & M   85.00    
1/31/02   17993   UNION TRIBUNE   Advertising   221.08    
1/31/02   17994   UNION TRIBUNE   Advertising   886.80    
1/31/02   17995   ROY M. VAN ASCH, JANITORIAL   Janitorial   1,875.80    
1/31/02   17996   VERIZON CALIFORNIA   Telephone   246.89    
1/31/02   17997   WARNER BROTHERS   Film Payable   1,016.12    
1/31/02   17998   WAXIE SANITARY SUPPLY   Janitorial   6,092.20    
1/31/02   17999   WEST COAST SERVICES   Video Game Cost   2,092.34    
1/31/02   18000   COCA-COLA ENTERPRISES   Concession Inventory   4,662.59    
1/31/02   18001   HERITAGE FOODS LLC   Concession Inventory   131.75    
1/31/02   18002   ICEE—USA CORP.   Concession Inventory   1,557.10    
1/31/02   18003   METROPOLITAN PROVISIONS   Concession Inventory   9,767.13    

6

Wire Transfers—Union Bank of California Acct # 0700494381
1/15/02   440   SONY PICTURES   Film Payable   92,500.00    
1/22/02   441   SONY PICTURES   Film Payable   24,000.00    
1/28/02   442   SONY PICTURES   Film Payable   21,000.00    
1/30/02   443   TREASURER AND TAX COLLECTOR   Property Tax   53,776.18    
                    1,555,542.43
Direct Debits—Union Bank of California Acct # 0700494381
1/4/02       ADP   Payroll Fees   139.95    
1/11/02       ADP   Payroll Fees   555.94    
1/18/02       ADP   Payroll Fees   7.00    
1/25/02       ADP   Payroll Fees   669.04    
1/25/02       UBOC   Bank Service Charge   771.12    
1/31/02       UBOC   Bank Service Charge   7,909.20    
1/28/02       State Board of Equalization   Sales Tax Payment   17,518.00    
1/31/02       UBOC   Loan Payment   39,666.98    
1/31/02       UBOC   Net Change Purchase   1,500.00    
1/31/02       UBOC   Tax account bank fees   1.37    
1/31/02       USPS   Postage   281.88    
                    69,020.48
Checks—Semi-Annual Distribution Fund—Union Bank of California Acct # 4570001189
                    0.00
Checks—Elective Creditor Distribution Fund—Union Bank of California Acct # 4570001170
                    0.00
Intercompany Transfers
1/4/02       To UBOC Acct. # 07007494365   Payroll   130,000.00    
1/31/02       To UBOC Acct. # 07007494365   Payroll   100,000.00    
                    230,000.00
TOTAL ACCOUNTS PAYABLE DISBURSEMENTS   1,854,562.91

7


I. CASH RECEIPTS AND DISBURSEMENTS (Continued)
B. (PAYROLL ACCOUNT)

1.   TOTAL RECEIPTS PER ALL PRIOR PAYROLL ACCOUNT REPORTS   2,650,535.93
2.   LESS: TOTAL DISBURSEMENTS PER ALL PRIOR PAYROLL ACCOUNT REPORTS   2,660,390.49
3.   BEGINNING BALANCE   50,145.44
4.   RECEIPTS DURING CURRENT PERIOD TRANSFERRED FROM GENERAL ACCOUNT   230,000.00
5.   BALANCE:   280,145.44
6.   LESS: TOTAL DISBURSEMENTS DURING CURRENT PERIOD   215,303.30
7.   ENDING BALANCE   64,842.14
8.   PAYROLL ACCOUNT NUMBER
DEPOSITORY NAME AND LOCATION		   07007494365
Union Bank of California
445 South Figueroa St., Los Angeles, CA 90051

8


TOTAL DISBURSEMENTS DURING CURRENT PERIOD (Payroll Account)

January 4, 2002   Payroll Run—Summary of Expense        
    Wages Earned—Normal Recurring   66,447.02    
    Wages Earned—Adjustments & Voids   3,466.03    
    Wage Garnishments   193.43    
    Federal Income Taxes   7,433.31    
    Social Security   11,104.47    
    Medicare   2,596.97    
    State Unemployment Taxes—Employer   2,776.12    
    Federal Unemployment Taxes   716.42    
    State Unemployment Taxes—Employee   806.05    
    State Income Taxes   1,655.98    
        97,195.80    
January 4, 2002   Payroll Run—Summary of Disbursements        
    ADP Checks Issued [Net salary plus tax]   93,729.77    
    Manual Checks, etc.   3,466.03    
            97,195.80
January 18, 2002   Payroll Run—Summary of Expense        
    Wages Earned—Normal Recurring   74,500.03    
    Wages Earned—Adjustments & Voids   10,833.56    
    Wage Garnishments   177.42    
    Federal Income Taxes   9,210.66    
    Social Security   13,494.67    
    Medicare   3,156.07    
    State Unemployment Taxes—Employer   3,073.66    
    Federal Unemployment Taxes   793.20    
    State Unemployment Taxes—Employee   979.42    
    State Income Taxes   1,888.81    
        118,107.50    
January 18, 2002   Payroll Run—Summary of Disbursements        
    ADP Checks Issued [Net salary plus tax]   107,273.94    
    Manual Checks Issued   10,833.56    
            118,107.50
TOTAL PAYROLL ACCOUNT DISBURSEMENTS   215,303.30

9


I. CASH RECEIPTS AND DISBURSEMENTS (Continued)
B. (TAX ACCOUNT)

1.   TOTAL RECEIPTS PER ALL PRIOR TAX ACCOUNT REPORTS   199,000.00
2.   LESS: TOTAL DISBURSEMENTS PER ALL PRIOR TAX ACCOUNT REPORTS   176,020.29
3.   BEGINNING BALANCE   22,979.71
4.   RECEIPTS DURING CURRENT PERIOD TRANSFERRED FROM GENERAL ACCOUNT   0.00
5.   BALANCE:   22,979.71
6.   LESS: TOTAL DISBURSEMENTS DURING CURRENT PERIOD
Date: 1/28/02, wire transfer, To: CA State Board of Equalization		   17,518.00
    TOTAL DISBURSEMENTS THIS PERIOD   17,518.00
7.   ENDING BALANCE   5,461.71
8.   TAX ACCOUNT NUMBER
DEPOSITORY NAME AND LOCATION		   02180038712
Union Bank of California
445 South Figueroa St., Los Angeles, CA 90051


D. SUMMARY SCHEDULE OF CASH

ENDING BALANCE FOR PERIOD    
  GENERAL ACCOUNT   52,899.58
  PAYROLL ACCOUNT   64,842.14
  TAX ACCOUNT   5,461.71
  OTHER ACCOUNTS *:   1,875,788.12
  OTHER MONIES *:   0.00
  PETTY CASH **   0.00
TOTAL CASH AVAILABLE   1,998,991.55
*
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   948,822.17
  Merchant   0700494-357   119,648.04
  Moviefone   0700494-146   0.00
  Elective Creditor Distribution Fund   457000-1170   553,155.32
  Semi-Annual Distribution Fund   457000-1189   4,162.59
  FOB Cinemastar Luxury Cinemas, Inc.   0700494-373   0.00
  Working Capital Account   457000-1197   250,000.00

Total
 
 
 
1,875,788.12


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

11


III. TAX LIABILITIES

FOR THE REPORTING PERIOD:    
  GROSS SALES SUBJECT TO SALES TAX   201,494.55
  TOTAL WAGES PAID   215,303.30

 
 
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   14,492.62   0.00    
REAL PROPERTY            
OTHER (SPECIFY)            

TOTAL
 
14,492.62
 
0.00
 
 


IV. AGING OF ACCOUNTS PAYABLE AND ACCOUNTS RECEIVABLE

 
    
   Accounts Receivable
 
   Accounts Payable *
(Post-Petition Only)
 
   Pre-Petition
   Post-Petition
30 days or less   234,174.64        
31-60 days   6,238.28        
61-90 days            
91-120 days            
Over 120 days            
   
 
 
TOTALS:   240,412.92        


V. INSURANCE COVERAGE

 
   Name of Carrier
   Amount of Coverage
   Policy Expiration Date
   Premium Paid Through:
Directors & Officers Liability   Gulf Insurance Company   $ 3,000,000   10/18/02   10/18/02
General Liability   Royal and Sun Alliance   $ 2,000,000   12/19/02   10/18/02
Automobile Liability   Royal and Sun Alliance   $ 1,000,000   12/19/02   10/18/02
Crime   Royal and Sun Alliance   $ 100,000   12/19/02   10/18/02
Property   Royal and Sun Alliance   $ 35,212,960   12/19/02   10/18/02
Umbrella Liability   Zurich   $ 10,000,000   12/19/02   10/18/02
Workers Compensation   State (of CA) Compensation Insurance Fund     Variable   n/a   3/31/02
Foreign Package   ACE USA   $ 1,000,000   10/15/02   10/14/02

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
9/30/01   6,430,686.00   10,000.00   10/26/01   10,000.00   0.00
12/31/01   5,059,043.00   10,000.00   2/7/02   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.

13


VII. PROFIT AND LOSS STATEMENT (ACCRUAL BASIS ONLY)

 
   Current Month
   Cumulative
Post-Petition
  
Admission Revenue   983,416   14,188,233  
Concession Revenue   391,921   5,619,672  
Video Revenue   17,646   279,782  
Screen Advertising   10,366   123,750  
Other Revenues   1,790   39,792  
   
 
 
Theater Revenue   1,405,138   20,251,229  
Film Rental Expense   635,726   7,779,098  
Concession COGS   62,412   875,374  
   
 
 
Theater Cost of Goods Sold   698,138   8,654,471  
   
 
 
Theater Gross Margin   707,000   11,596,757  
   
 
 
Salaries   166,414   1,897,994  
Payroll Taxes   18,662   198,017  
Rent Expense   271,163   3,593,795  
CAM Expense   32,987   412,461  
Utility Expense   58,304   824,110  
Advertising Expense   18,216   269,970  
Co-op Advertising Expense   7,078   103,826  
Repairs & Maint Expense   16,738   172,516  
Janitorial Services   21,576   283,420  
Janitorial Supplies Expense   6,144   78,053  
Insurance Expense   57,715   303,483  
Property Taxes   18,187   333,476  
Security Expense   2,906   48,767  
Travel & Entertainment   532   5,378  
Vehicle Expense   0   0  
Supplies Expense   5,241   100,624  
Banking Fees   7,849   88,658  
Equipment Rental Expense   0   11,621  
Outside Services Expense   221   431  
Other Theater Expense   9,042   86,585  
Pre-Opening Expense   0   0  
   
 
 
Theater Operating Expenses   718,974   8,813,184  
   
 
 
Operating Income   (11,973 ) 2,783,573  
   
 
 
General & Administrative Expenses   171,461   1,821,217  
Deprec & Amortization   209,494   1,991,001  
Interest Expense   9,617   272,941  
Interest/Dividend Income   (0 ) (17,079 )
Taxes   737   6,036  
Non-Recurring Income/Expense   42,998   (107,193 )
   
 
 
Non-Operating (Income)/Expense   434,307   3,966,924  
   
 
 
Net Income   (446,280 ) (1,183,351 )
   
 
 

14


VIII. BALANCE SHEET (ACCRUAL BASIS ONLY)

 
   Current Month End
  
Cash   2,295,007  
Accts Receivable   11,805  
Conc Inventory   61,721  
Concession Rebates   7,660  
Supplies Inventory   13,099  
Prepaids   1,252,500  
   
 
Current Assets   1,346,785  
Fixed Assets   24,367,206  
Accumulated Depreciation   (14,404,970 )
   
 
Net Fixed Assets   9,962,236  
Deposits-Leases   0  
Deposits-Concession   2,615  
Deposits   0  
Investment CLT SA de CV   22,875  
Investment in Mexico   339,643  
Goodwill—Mexico   (172,480 )
   
 
Other Assets   192,653  
   
 
Assets   13,796,681  
   
 
Accounts Payable   1,879,809  
Accrued Payroll   175,878  
Other Accruals   996,856  
Deferred Revenue   532,962  
Concession Advances   (18,926 )
Short Term Notes Payable   0  
   
 
Current Liabilities   3,566,580  
Capital Leases   (10,401 )
Credit Facility Debt   1,093,000  
Notes Payable   2,303,656  
   
 
Debt and Capital Leases   3,386,255  
Deferred Rent Accrual   4,318,940  
Intercompany Accounts   2,084,053  
   
 
Long-Term Liabilities   6,402,993  
Common Stock   62,892  
Additional Paid In Capital   29,642,292  
Treasury Stock   0  
Retained Earnings   (26,278,047 )
Current Year Retained Earnings   (4,002,944 )
Current Year Dividends   0  
   
 
Shareholders' Equity   440,853  
   
 
Liabilities & Equity   13,796,681  
   
 

15


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 ý
Yes o
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 ý
Yes o
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 ý
Yes o
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: February 18, 2002

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

16



QuickLinks

UNITED STATES DEPARTMENT OF JUSTICE OFFICE OF THE UNITED STATES TRUSTEE SOUTHERN DISTRICT OF CALIFORNIA
I. CASH RECEIPTS AND DISBURSEMENTS A. (GENERAL ACCOUNT *)
TOTAL DISBURSEMENTS DURING CURRENT PERIOD (General Account)
I. CASH RECEIPTS AND DISBURSEMENTS (Continued) B. (PAYROLL ACCOUNT)
TOTAL DISBURSEMENTS DURING CURRENT PERIOD (Payroll Account)
I. CASH RECEIPTS AND DISBURSEMENTS (Continued) 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)
IX. QUESTIONNAIRE