CONDENSED CONSOLIDATING FINANCIAL INFORMATION

3 Months Ended

Jun. 30, 2011

CONDENSED CONSOLIDATING FINANCIAL INFORMATION

CONDENSED CONSOLIDATING FINANCIAL INFORMATION

NOTE 10—CONDENSED CONSOLIDATING FINANCIAL INFORMATION

        The accompanying condensed consolidating financial information has been prepared and presented pursuant to SEC Regulation S-X Rule 3-10, Financial statements of guarantors and issuers of guaranteed securities registered or being registered. Each of the subsidiary guarantors are 100% owned by AMCE. The subsidiary guarantees of AMCE's Notes due 2014, Notes due 2019, and Notes due 2020 are full and unconditional and joint and several. There are significant restrictions on the Company's ability to obtain funds from any of its subsidiaries through dividends, loans or advances. The Company and its subsidiary guarantor's investments in its consolidated subsidiaries are presented under the equity method of accounting.

Thirteen weeks ended June 30, 2011:

(In thousands)			AMCE			Subsidiary Guarantors			Subsidiary Non-Guarantors			Consolidating Adjustments			Consolidated AMC Entertainment Inc.
Revenues
	Admissions		$	—		$	474,603		$	3,487		$	—		$	478,090
	Concessions			—			191,233			1,331			—			192,564
	Other theatre			—			19,172			310			—			19,482
		Total revenues		—			685,008			5,128			—			690,136
Operating Costs and Expenses
	Film exhibition costs			—			257,628			1,587			—			259,215
	Concession costs			—			25,994			262			—			26,256
	Operating expense			—			177,329			2,401			—			179,730
	Rent			—			115,944			1,313			—			117,257
	General and administrative:
		Merger, acquisition and transaction costs		—			612			—			—			612
		Management fee		—			1,250			—			—			1,250
		Other		—			14,414			36			—			14,450
	Depreciation and amortization			—			51,708			110			—			51,818
Operating costs and expenses				—			644,879			5,709			—			650,588
		Operating income (loss)		—			40,129			(581	)		—			39,548
Other expense (income)
	Equity in net loss of subsidiaries			2,946			846			—			(3,792	)		—
	Other income			—			(2,097	)		—			—			(2,097	)
	Interest expense:
		Corporate borrowings		39,874			50,936			—			(50,959	)		39,851
		Capital and financing lease obligations		—			1,498			—			—			1,498
	Equity in (earnings) losses of non-consolidated entities			(92	)		(669	)		265			—			(496	)
	Investment income			(43,538	)		(7,448	)		—			50,959			(27	)
Total other expense				(810	)		43,066			265			(3,792	)		38,729
Earnings (loss) from continuing operations before income taxes				810			(2,937	)		(846	)		3,792			819
Income tax provision				525			—			—			—			525
Earnings (loss) from continuing operations				285			(2,937	)		(846	)		3,792			294
Loss from discontinued operations, net of income taxes				—			(9	)		—			—			(9	)
Net earnings (loss)			$	285		$	(2,946	)	$	(846	)	$	3,792		$	285

Thirteen weeks ended July 1, 2010:

(In thousands)			AMCE			Subsidiary Guarantors			Subsidiary Non-Guarantors			Consolidating Adjustments			Consolidated AMC Entertainment Inc.
Revenues
	Admissions		$	—		$	445,870		$	2,727		$	—		$	448,597
	Concessions			—			174,976			983			—			175,959
	Other theatre			—			16,123			273			—			16,396
		Total revenues		—			636,969			3,983			—			640,952
Costs and Expenses
	Film exhibition costs			—			237,617			1,206			—			238,823
	Concession costs			—			20,259			237			—			20,496
	Operating expense			—			145,909			1,732			—			147,641
	Rent			—			112,794			1,760			—			114,554
	General and administrative:
		Merger, acquisition and transaction costs		—			5,756			—			—			5,756
		Management fee		—			1,250			—			—			1,250
		Other		—			13,062			9			—			13,071
Depreciation and amortization				—			48,548			55			—			48,603
Operating costs and expenses				—			585,195			4,999			—			590,194
		Operating income (loss)		—			51,774			(1,016	)		—			50,758
Other expense (income)
	Equity in net (earnings) losses of subsidiaries			(9,103	)		1,123			—			7,980			—
	Other income			—			(1,939	)		—			—			(1,939	)
	Interest expense:
		Corporate borrowings		33,021			42,178			—			(42,180	)		33,019
		Capital and financing lease obligations		—			1,383			—			—			1,383
	Equity in (earnings) losses of non-consolidated entities			(143	)		1,802			107			—			1,766
	Investment income			(36,087	)		(6,143	)		—			42,180			(50	)
Total other expense (income)				(12,312	)		38,404			107			7,980			34,179
Earnings (loss) from continuing operations before income taxes				12,312			13,370			(1,123	)		(7,980	)		16,579
Income tax provision				2,700			4,250			—			—			6,950
Earnings (loss) from continuing operations				9,612			9,120			(1,123	)		(7,980	)		9,629
Loss from discontinued operations, net of income taxes				—			(17	)		—			—			(17	)
Net earnings (loss)			$	9,612		$	9,103		$	(1,123	)	$	(7,980	)	$	9,612

As of June 30, 2011:

(In thousands)			AMCE			Subsidiary Guarantors			Subsidiary Non-Guarantors		Consolidating Adjustments		Consolidated AMC Entertainment Inc.
Assets
Current assets:
	Cash and equivalents		$	—		$	274,104		$	40,521	$	—	$	314,625
	Receivables, net			910			43,331			258		—		44,499
	Other current assets			—			91,237			2,186		—		93,423
		Total current assets		910			408,672			42,965		—		452,547
Investment in equity of subsidiaries				(243,823	)		79,145			—		164,678		—
Property, net				—			943,134			968		—		944,102
Intangible assets, net				—			146,048			—		—		146,048
Intercompany advances				2,676,391			(2,757,395	)		81,004		—		—
Goodwill				—			1,923,667			—		—		1,923,667
Other long-term assets				36,571			269,166			197		—		305,934
	Total assets		$	2,470,049		$	1,012,437		$	125,134	$	164,678	$	3,772,298
Liabilities and Stockholder's Equity
Current liabilities:
Accounts payable			$	—		$	201,269		$	1,153	$	—	$	202,422
Accrued expenses and other liabilities				13,631			118,409			1,476		—		133,516
Deferred revenues and income				—			150,871			542		—		151,413
Current maturities of corporate borrowings and capital and financing lease obligations				6,500			3,292			—		—		9,792
		Total current liabilities		20,131			473,841			3,171		—		497,143
Corporate borrowings				2,094,727			—			—		—		2,094,727
Capital and financing lease obligations				—			61,333			—		—		61,333
Deferred revenues—for exhibitor services agreement				—			332,534			—		—		332,534
Other long-term liabilities				—			388,552			42,818		—		431,370
		Total liabilities		2,114,858			1,256,260			45,989		—		3,417,107
		Stockholder's equity (deficit)		355,191			(243,823	)		79,145		164,678		355,191
		Total liabilities and stockholder's equity	$	2,470,049		$	1,012,437		$	125,134	$	164,678	$	3,772,298

As of March 31, 2011:

(In thousands)				AMCE			Subsidiary Guarantors			Subsidiary Non-Guarantors		Consolidating Adjustments		Consolidated AMC Entertainment Inc.
Assets
Current assets:
	Cash and equivalents			$	—		$	261,096		$	40,062	$	—	$	301,158
	Receivables, net				129			26,341			222		—		26,692
	Other current assets				—			85,987			2,162		—		88,149
		Total current assets			129			373,424			42,446		—		415,999
Investment in equity of subsidiaries					(235,409	)		79,567			—		155,842		—
Property, net					—			957,738			984		—		958,722
Intangible assets, net					—			149,493			—		—		149,493
Intercompany advances					2,694,299			(2,775,489	)		81,190		—		—
Goodwill					—			1,923,667			—		—		1,923,667
Other long-term assets					37,278			254,629			457		—		292,364
		Total assets		$	2,496,297		$	963,029		$	125,077	$	155,842	$	3,740,245
Liabilities and Stockholder's Equity
Current liabilities
	Accounts payable			$	—		$	164,553		$	863	$	—	$	165,416
	Accrued expenses and other liabilities				33,598			104,519			870		—		138,987
	Deferred revenues and income				—			140,766			471		—		141,237
	Current maturities of corporate borrowings and capital and financing lease obligations				6,500			3,455			—		—		9,955
			Total current liabilities		40,098			413,293			2,204		—		455,595
Corporate borrowings					2,096,040			—			—		—		2,096,040
Capital and financing lease obligations					—			62,220			—		—		62,220
Deferred revenues for exhibitor services agreement					—			333,792			—		—		333,792
Other long-term liabilities					—			389,133			43,306		—		432,439
		Total liabilities			2,136,138			1,198,438			45,510		—		3,380,086
		Stockholder's equity (deficit)			360,159			(235,409	)		79,567		155,842		360,159
		Total liabilities and stockholder's equity		$	2,496,297		$	963,029		$	125,077	$	155,842	$	3,740,245

Thirteen weeks ended June 30, 2011:

(In thousands)		AMCE			Subsidiary Guarantors			Subsidiary Non-Guarantors			Consolidating Adjustments		Consolidated AMC Entertainment Inc.
Cash flows from operating activities:
Net cash provided by operating activities		$	(22,656	)	$	97,371		$	612		$	—	$	75,327
Cash flows from investing activities:
	Capital expenditures		—			(31,931	)		(87	)		—		(32,018	)
	Proceeds from sale/leaseback transactions		—			953			—			—		953
	Investments in non-consolidated entities, net		—			(19,508	)		(1	)		—		(19,509	)
	Other, net		—			(1,180	)		—			—		(1,180	)
Net cash used in investing activities			—			(51,666	)		(88	)		—		(51,754	)
Cash flows from financing activities:
	Deferred financing costs		(231	)		—			—			—		(231	)
	Principal payments under capital and financing lease obligations		—			(1,050	)		—			—		(1,050	)
	Principle payments under Term Loan		(1,625	)		—			—			—		(1,625	)
	Change in construction payables		—			(6,913	)		—			—		(6,913	)
	Change in intercompany advances		24,512			(24,698	)		186			—		—
Net cash provided by (used in) financing activities			22,656			(32,661	)		186			—		(9,819	)
Effect of exchange rate changes on cash and equivalents			—			(36	)		(251	)		—		(287	)
Net increase in cash and equivalents			—			13,008			459			—		13,467
Cash and equivalents at beginning of period			—			261,096			40,062			—		301,158
Cash and equivalents at end of period		$	—		$	274,104		$	40,521		$	—	$	314,625

Thirteen weeks ended July 1, 2010:

(In thousands)		AMCE			Subsidiary Guarantors			Subsidiary Non-Guarantors			Consolidating Adjustments		Consolidated AMC Entertainment Inc.
Cash flows from operating activities:
Net cash provided by operating activities		$	5,961		$	29,113		$	225		$	—	$	35,299
Cash flows from investing activities:
	Capital expenditures		—			(13,945	)		(43	)		—		(13,988	)
	Acquisition of Kerasotes, net of cash acquired		—			(276,798	)		—			—		(276,798	)
	Proceeds from disposition of Cinemex		—			876			—			—		876
	Investments in non-consolidated entities, net		—			43			—			—		43
	Proceeds from the disposition of long-term assets		—			55,000			—			—		55,000
	Other, net		—			(28	)		—			—		(28	)
Net cash used in investing activities			—			(234,852	)		(43	)		—		(234,895	)
Cash flows from financing activities:
	Deferred financing costs		(95	)		—			—			—		(95	)
	Principal payments under capital and financing lease obligations		—			(990	)		—			—		(990	)
	Principal payments on Term Loan		(1,625	)		—			—			—		(1,625	)
	Change in construction payables		—			(7,737	)		—			—		(7,737	)
	Change in intercompany advances		(4,241	)		4,443			(202	)		—		—
Net cash used in financing activities			(5,961	)		(4,284	)		(202	)		—		(10,447	)
Effect of exchange rate changes on cash and equivalents			—			148			254			—		402
Net increase (decrease) in cash and equivalents			—			(209,875	)		234			—		(209,641	)
Cash and equivalents at beginning of period			—			455,242			40,101			—		495,343
Cash and equivalents at end of period		$	—		$	245,367		$	40,335		$	—	$	285,702