Supplement Condensed Consolidating Financial Information (Tables)

SUPPLEMENTAL CONDENSED CONSOLIDATING BALANCE SHEET

AS OF JUNE 30, 2015

(in thousands)



	Parent			Guarantors			Non Guarantors			Eliminations			Condensed Consolidated
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	—		$	2,791		$	3,401		$	—		$	6,192
Trade receivables, net	—			28,009			743			—			28,752
Inventories	—			220			134			—			354
Prepaid expenses and other current assets	—			21,987			679			(5,487		)	17,179
Total current assets	—			53,007			4,957			(5,487		)	52,477
PROPERTY AND EQUIPMENT, NET:
Leasehold improvements	—			3,801			—			—			3,801
Furniture, fixtures and equipment	—			42,701			790			—			43,491
Less – accumulated depreciation	—			(31,299		)	(769		)	—			(32,068		)
Total property and equipment, net	—			15,203			21			—			15,224
OTHER ASSETS:
Deferred debt costs, net	5,772			—			—			—			5,772
Deferred rack costs, net	—			4,377			—			—			4,377
Investments in affiliates	621,272			(330		)	—			(620,136		)	806
Other long-term assets	—			3,160			—			—			3,160
Due from affiliates	—			308,648			—			(308,648		)	—
Total other assets	627,044			315,855			—			(928,784		)	14,115
GOODWILL AND OTHER IDENTIFIED INTANGIBLE ASSETS:
Goodwill	—			149,488			4,510			—			153,998
Other identified intangibles, net	—			214,345			6,000			—			220,345
Total goodwill and other identified intangible assets	—			363,833			10,510			—			374,343
TOTAL ASSETS	$	627,044		$	747,898		$	15,488		$	(934,271	)	$	456,159

LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY
Accounts payable
Accounts payable	$	—		$	16,009		$	401		$	—		$	16,410
Accrued expenses and other liabilities	—			32,236			4,138			(3,434		)	32,940
Accrued interest	2,799			—			—			—			2,799
Deferred revenues	—			24,194			3,243			—			27,437
Total current liabilities	2,799			72,439			7,782			(3,434		)	79,586
NON-CURRENT LIABILITIES:
Senior secured notes	307,808			—			—			—			307,808
Revolving credit facility	24,800			—			—			—			24,800
Other non-current liabilities	—			8,830			—			—			8,830
Deferred income taxes	—			47,041			26			(2,053		)	45,014
Due to affiliates	304,516			—			4,132			(308,648		)	—
Total liabilities	639,923			128,310			11,940			(314,135		)	466,038
COMMITMENTS AND CONTINGENCIES
Redeemable noncontrolling interests	—			—			3,000			—			3,000
STOCKHOLDERS' (DEFICIT) EQUITY:
Total stockholders' (deficit) equity	(12,879		)	619,588			548			(620,136		)	(12,879		)
TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY	$	627,044		$	747,898		$	15,488		$	(934,271	)	$	456,159

SUPPLEMENTAL CONDENSED CONSOLIDATING BALANCE SHEET

AS OF MARCH 31, 2015

(in thousands)



	Parent			Guarantors			Non Guarantors			Eliminations			Condensed Consolidated
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	—		$	1,040		$	2,412		$	—		$	3,452
Trade receivables, net	—			38,058			1,354			—			39,412
Inventories	—			739			134			—			873
Prepaid expenses and other current assets	—			16,207			636			(5,487		)	11,356
Total current assets	—			56,044			4,536			(5,487		)	55,093
PROPERTY AND EQUIPMENT, NET:
Leasehold improvements	—			3,801			—			—			3,801
Furniture, fixtures and equipment	—			43,189			790			—			43,979
Less – accumulated depreciation	—			(29,465		)	(765		)	—			(30,230		)
Total property and equipment, net	—			17,525			25			—			17,550
OTHER ASSETS:
Deferred debt costs, net	6,383			—			—			—			6,383
Deferred rack costs, net	—			4,824			—			—			4,824
Investments in affiliates	587,126			224			—			(586,547		)	803
Other long-term assets	—			3,193			—			—			3,193
Due from affiliates	—			300,246			—			(300,246		)	—
Total other assets	593,509			308,487			—			(886,793		)	15,203
GOODWILL AND OTHER IDENTIFIED INTANGIBLE ASSETS:
Goodwill	—			149,488			4,510			—			153,998
Other identified intangibles, net	—			218,181			6,000			—			224,181
Total goodwill and other identified intangible assets	—			367,669			10,510			—			378,179
TOTAL ASSETS	$	593,509		$	749,725		$	15,071		$	(892,280	)	$	466,025
LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY
CURRENT LIABILITIES:
Accounts payable	$	—		$	15,434		$	347		$	—		$	15,781
Accrued expenses and other liabilities	—			104,580			5,393			(65,958		)	44,015
Accrued interest	10,075			—			—			—			10,075
Deferred revenues	—			25,718			1,016			—			26,734
Total current liabilities	10,075			145,732			6,756			(65,958		)	96,605
NON-CURRENT LIABILITIES:
Senior secured notes	309,569			—			—			—			309,569
Revolving credit facility	14,700			—			—			—			14,700
Other non-current liabilities	—			8,352			—			—			8,352
Deferred income taxes	—			10,250			26			60,471			70,747
Due to affiliates	296,113			—			4,133			(300,246		)	—
Total liabilities	630,457			164,334			10,915			(305,733		)	499,973
COMMITMENTS AND CONTINGENCIES
Redeemable noncontrolling interests	—			—			3,000			—			3,000
STOCKHOLDERS' (DEFICIT) EQUITY:
Total stockholders' (deficit) equity	(36,948		)	585,391			1,156			(586,547		)	(36,948		)
TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY	$	593,509		$	749,725		$	15,071		$	(892,280	)	$	466,025

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF INCOME (LOSS)

AND COMPREHENSIVE INCOME (LOSS)

FOR THE THREE MONTHS ENDED JUNE 30, 2015

(in thousands)



	Parent			Guarantors			Non Guarantors			Eliminations			Condensed Consolidated
OPERATING REVENUES:
Circulation	$	—		$	36,140		$	22		$	—		$	36,162
Advertising	—			17,862			—			—			17,862
Other	—			2,059			25			—			2,084
Total operating revenues	—			56,061			47			—			56,108
OPERATING EXPENSES:
Editorial	—			5,798			122			—			5,920
Production	—			13,922			41			—			13,963
Distribution, circulation and other cost of sales	—			8,979			57			—			9,036
Selling, general and administrative	—			15,181			236			—			15,417
Depreciation and amortization	—			6,724			3			—			6,727
Total operating expenses	—			50,604			459			—			51,063
OPERATING INCOME	—			5,457			(412		)	—			5,045
OTHER EXPENSES:
Interest expense	(9,400		)	(3		)	—			—			(9,403		)
Amortization of deferred debt costs	(850		)	—			—			—			(850		)
Total other expense, net	(10,250		)	(3		)	—			—			(10,253		)
(LOSS) INCOME BEFORE PROVISION (BENEFIT) FOR INCOME TAXES, AND EQUITY IN EARNINGS OF CONSOLIDATED SUBSIDIARIES	(10,250		)	5,454			(412		)	—			(5,208		)
PROVISION FOR INCOME TAXES	—			(29,424		)	152			—			(29,272		)
EQUITY (LOSSES) IN EARNINGS OF CONSOLIDATED SUBSIDIARIES	34,320			(558		)	—			(33,762		)	—
NET INCOME (LOSS) FROM CONTINUING OPERATIONS	24,070			34,320			(564		)	(33,762		)	24,064
INCOME FROM DISCONTINUED OPERATIONS, NET OF INCOME TAXES	—			—			—			—			—
NET INCOME (LOSS)	24,070			34,320			(564		)	(33,762		)	24,064
LESS: NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS	—			—			6			—			6
NET INCOME (LOSS) ATTRIBUTABLE TO AMERICAN MEDIA, INC AND SUBSIDIARIES	$	24,070		$	34,320		$	(558	)	$	(33,762	)	$	24,070
	Parent			Guarantors			Non Guarantors			Eliminations			Condensed Consolidated
NET INCOME (LOSS)	$	24,070		$	34,320		$	(564	)	$	(33,762	)	$	24,064
Foreign currency translation adjustment	—			—			(1		)	—			(1		)
Comprehensive income (loss)	24,070			34,320			(565		)	(33,762		)	24,063
Less: comprehensive loss attributable to noncontrolling interests	—			—			6			—			6
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO AMERICAN MEDIA, INC. AND SUBSIDIARIES	$	24,070		$	34,320		$	(559	)	$	(33,762	)	$	24,069

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF INCOME (LOSS)

AND COMPREHENSIVE INCOME (LOSS)

FOR THE THREE MONTHS ENDED JUNE 30, 2014

(in thousands)



	Parent			Guarantors			Non Guarantors			Eliminations			Condensed Consolidated
OPERATING REVENUES:
Circulation	$	—		$	42,650		$	1,474		$	—		$	44,124
Advertising	—			15,845			1,506			—			17,351
Other	—			1,473			390			—			1,863
Total operating revenues	—			59,968			3,370			—			63,338
OPERATING EXPENSES:
Editorial	—			6,915			601			—			7,516
Production	—			15,504			845			—			16,349
Distribution, circulation and other cost of sales	—			9,102			719			—			9,821
Selling, general and administrative	—			21,586			789			—			22,375
Depreciation and amortization	—			3,097			24			—			3,121
Total operating expenses	—			56,204			2,978			—			59,182
OPERATING INCOME	—			3,764			392			—			4,156
OTHER EXPENSES:
Interest expense	(13,956		)	(17		)	(14		)	—			(13,987		)
Amortization of deferred debt costs	(434		)	—			—			—			(434		)
Other income	—			314			—			—			314
Total other income (expenses), net	(14,390		)	297			(14		)	—			(14,107		)
(LOSS) INCOME BEFORE PROVISION (BENEFIT) FOR INCOME TAXES, AND EQUITY IN EARNINGS OF CONSOLIDATED SUBSIDIARIES	(14,390		)	4,061			378			—			(9,951		)
PROVISION FOR INCOME TAXES	—			610			122			—			732
EQUITY IN EARNINGS OF CONSOLIDATED SUBSIDIARIES	2,422			361			—			(2,783		)	—
NET LOSS FROM CONTINUING OPERATIONS	(11,968		)	3,812			256			(2,783		)	(10,683		)
INCOME FROM DISCONTINUED OPERATIONS, NET OF INCOME TAXES	—			(1,355		)	—			—			(1,355		)
NET (LOSS) INCOME	(11,968		)	2,457			256			(2,783		)	(12,038		)
LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS	—			—			70			—			70
NET (LOSS) INCOME ATTRIBUTABLE TO AMERICAN MEDIA, INC AND SUBSIDIARIES	$	(11,968	)	$	2,457		$	326		$	(2,783	)	$	(11,968	)
	Parent			Guarantors			Non Guarantors			Eliminations			Condensed Consolidated
NET (LOSS) INCOME	$	(11,968	)	$	2,457		$	256		$	(2,783	)	$	(12,038	)
Foreign currency translation adjustment	—			—			18			—			18
Comprehensive (loss) income	(11,968		)	2,457			274			(2,783		)	(12,020		)
Less: comprehensive income attributable to noncontrolling interests	—			—			70			—			70
COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO AMERICAN MEDIA, INC. AND SUBSIDIARIES	$	(11,968	)	$	2,457		$	344		$	(2,783	)	$	(11,950	)

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE THREE MONTHS ENDED JUNE 30, 2015

(in thousands)



	Parent			Guarantors			Non Guarantors			Eliminations			Condensed Consolidated
Cash Flows from Operating Activities:
Net cash provided by (used in) operating activities	$	(16,384	)	$	10,504		$	1,039		$	—		$	(4,841	)
Cash Flows from Investing Activities:
Purchases of property and equipment	—			(147		)	—			—			(147		)
Purchase of intangible assets	—			(420		)	—			—			(420		)
Due from affiliates	—			(8,402		)	—			8,402			—
Other	—			2			—			—			2
Net cash provided by (used in) investing activities	—			(8,967		)	—			8,402			(565		)
Cash Flows from Financing Activities:
Proceeds from revolving credit facility	30,900			—			—			—			30,900
Repayment to revolving credit facility	(20,800		)	—			—			—			(20,800		)
Senior secured notes repurchases	(2,000		)	—			—			—			(2,000		)
Redemption premium payment	(118		)	—			—			—			(118		)
Payments to noncontrolling interest holder of Olympia	—			—			(50		)	—			(50		)
Due to affiliates	8,402			—			—			(8,402		)	—
Net cash provided by (used in) financing activities	16,384			—			(50		)	(8,402		)	7,932
Effect of exchange rate changes on cash	—			214			—			—			214
Net increase in cash and cash equivalents	—			1,751			989			—			2,740
Cash and cash equivalents, beginning of period	—			1,040			2,412			—			3,452
Cash and cash equivalents, end of period	$	—		$	2,791		$	3,401		$	—		$	6,192

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE THREE MONTHS ENDED JUNE 30, 2014

(in thousands)



	Parent			Guarantors			Non Guarantors		Eliminations			Condensed Consolidated
Cash Flows from Operating Activities:
Net cash provided by (used in) operating activities	$	(21,525	)	$	28,603		$	1,863	$	—		$	8,941
Cash Flows from Investing Activities:
Purchases of property and equipment	—			(2,541		)	—		—			(2,541		)
Purchase of intangible assets	—			(1,077		)	—		—			(1,077		)
Due from affiliates	—			(14,925		)	—		14,925			—
Other	—			5			—		—			5
Net cash provided by (used in) investing activities	—			(18,538		)	—		14,925			(3,613		)
Cash Flows from Financing Activities:
Proceeds from revolving credit facility	28,300			—			—		—			28,300
Repayment to revolving credit facility	(21,700		)	—			—		—			(21,700		)
Due to affiliates	14,925			—			—		(14,925		)	—
Net cash provided by (used in) financing activities	21,525			—			—		(14,925		)	6,600
Effect of exchange rate changes on cash	—			102			—		—			102
Net increase (decrease) in cash and cash equivalents	—			10,167			1,863		—			12,030
Cash and cash equivalents, beginning of period	—			415			2,615		—			3,030
Cash and cash equivalents, end of period	$	—		$	10,582		$	4,478	$	—		$	15,060