EXHIBIT 99.2
PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET AFTER EQUITY FINANCING
(UNAUDITED)
On December 15, 1997, Registrant consummated a financing transaction
(the "Closing") whereby CinemaStar Acquisition Partners, L.L.C. ("CAP")
acquired a majority equity interest in Registrant through a $15 million
purchase of newly issued shares of Registrant's common stock. Such purchase
was completed pursuant to the terms of a Stock Purchase Agreement, dated as
of September 23, 1997. At the Closing, CAP purchased 17,684,464 shares of
common stock for a purchase price of $0.848202 per share. CAP also received
at Closing, for an aggregate purchase price of $1,000, warrants to purchase
1,630,624 shares of common stock at an exercise price of $0.848202 per share.
The accompanying condensed consolidated balance sheet is based on the
historical balance sheet of the Company as of November 30, 1997 and assumes
that the $15 million equity financing was completed, and the net proceeds
from such transaction applied as described in the notes thereto, on that date.
CINEMASTAR LUXURY THEATERS, INC. AND SUBSIDIARIES
PROFORMA CONDENSED CONSOLIDATED BALANCE SHEET AFTER EQUITY FINANCING
UNAUDITED
30-NOV PROFORMA AFTER
1997 EQUITY FINANCING
($'000) ADJUSTMENTS ($'000)
ASSETS
CURRENT ASSETS
Cash 615 4,221 (note 1) 4,836
Commissions & other receivables 285 285
Prepaid expenses 287 287
Other current assets 606 (300) (note 2) 306
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TOTAL CURRENT ASSETS 1,793 3,921 5,714
Property and equipment, net 13,361 125 (note 3) 13,486
Deposits and other assets 670 670
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TOTAL ASSETS 15,824 4,046 19,870
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Current portion of long-term debt and
capital lease obligations 4,772 (4,447) (note 4) 325
Accounts payable 2,751 (1,100) (note 5) 1,651
Accrued expenses 292 292
Deferred revenue 186 186
Advanced from stockholders 94 (94) (note 6) -
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TOTAL CURRENT LIABILITIES 8,095 (5,641) 2,454
Long term debt and capital lease
obligations, net of current portion 3,821 (2,438) (note 4) 1,383
Deferred rent liability 2,873 2,873
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TOTAL LIABILITIES 14,789 (8,079) 6,710
STOCKHOLDERS' EQUITY 1,035 12,125 (note 7) 13,160
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 15,824 4,046 19,870
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NOTE 1
CHANGE IN CASH REFLECTS THE FOLLOWING ADJUSTMENTS:
Proceeds of equity financing 15,000
Repayment of debt (6,885)
Reduction in accounts payable (1,100)
Penalty / termination fees pursuant
to concession agreements (1,825)
Fixed asset purchase pursuant
to concession agreements (125)
Fees related to equity financing (750)
Repayment of shareholder notes (94)
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NET CHANGE IN CASH 4,221
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NOTE 2
Represents expensing of prepayments for professional fees pursuant to
the equity financing agreement.
NOTE 3
Represents fixed assets acquired pursuant to the notice of termination of
the concession agreements issued by the Company.
NOTE 4
CURRENT NON-CURRENT TOTAL
Debt & capital lease obligations at 11/30/97 4,772 3,821 8,593
Notes repaid from proceeds
PCI (1,235) (1,436) (2,671)
Reel Partners (3,000) 0 (3,000)
First National Bank (212) (1,002) (1,214)
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Total - Notes Repaid (4,447) (2,438) (6,885)
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Balance after repayment of notes above 325 1,383 1,708
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NOTE 5
Represents use of proceeds of equity financing for reduction of accounts
payable.
NOTE 6
Represents use of proceeds of equity financing for repayment of notes
from shareholders.
NOTE 7
Adjustments to stockholders' equity are as follows:
Proceeds of issuance of stock 15,000
Penalties / termination fees (1,825)
Fees paid pursuant to equity financing (750)
Prepayments expensed (300)
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12,125
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