Condensed Consolidating Financial Statements of Company and Subsidiaries (Tables)

9 Months Ended

Sep. 30, 2013

Condensed Consolidating Balance Sheet

CONDENSED CONSOLIDATING BALANCE SHEET

As of September 30, 2013

(in thousands)

	Parent		Combined Subsidiary Guarantors		Consolidating Adjustments and Other			Total Consolidated Amounts
ASSETS
Cash and cash equivalents	$	51,008	$	19,086	$	—		$	70,094
Accounts receivable, net of allowance		178,973		175,227		(134,163	)		220,037
Current deferred tax assets		7		5,167		—			5,174
Prepaid expenses and other current assets		7,357		29,596		(9,519	)		27,434
Current assets of discontinued operations		—		541		—			541
Total current assets		237,345		229,617		(143,682	)		323,280
Property and equipment, net		2,450,227		96,677		—			2,546,904
Restricted cash		811		5,024		—			5,835
Investment in direct financing lease		5,994		—		—			5,994
Goodwill		—		17,229		—			17,229
Other assets		237,017		44,459		(215,520	)		65,956
Non-current deferred tax assets		—		3,516		(557	)		2,959
Non-current assets of discontinued operations		—		25		—			25
Total assets	$	2,931,394	$	396,547	$	(359,759	)	$	2,968,182
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable and accrued expenses	$	237,726	$	134,218	$	(143,648	)	$	228,296
Income taxes payable		—		964		—			964
Current liabilities of discontinued operations		—		1,066		—			1,066
Total current liabilities		237,726		136,248		(143,648	)		230,326
Long-term debt		1,185,000		115,000		(115,000	)		1,185,000
Deferred tax liabilities		557		—		(557	)		—
Other liabilities		1,163		44,745		—			45,908
Total liabilities		1,424,446		295,993		(259,205	)		1,461,234
Total stockholders’ equity		1,506,948		100,554		(100,554	)		1,506,948
Total liabilities and stockholders’ equity	$	2,931,394	$	396,547	$	(359,759	)	$	2,968,182

CONDENSED CONSOLIDATING BALANCE SHEET

As of December 31, 2012

(in thousands)

	Parent		Combined Subsidiary Guarantors		Consolidating Adjustments and Other			Total Consolidated Amounts
ASSETS
Cash and cash equivalents	$	—	$	62,804	$	—		$	62,804
Accounts receivable, net of allowance		136,128		249,512		(138,556	)		247,084
Deferred tax assets		137		7,885		—			8,022
Prepaid expenses and other current assets		1,766		34,499		(9,882	)		26,383
Current assets of discontinued operations		—		6,449		—			6,449
Total current assets		138,031		361,149		(148,438	)		350,742
Property and equipment, net		2,462,917		103,565		—			2,566,482
Restricted cash		—		5,022		—			5,022
Investment in direct financing lease		7,467		—		—			7,467
Goodwill		—		11,158		—			11,158
Other assets		191,502		114,922		(275,723	)		30,701
Non-current assets of discontinued operations		—		3,170		—			3,170
Total assets	$	2,799,917	$	598,986	$	(424,161	)	$	2,974,742
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable and accrued expenses	$	28,061	$	284,871	$	(148,403	)	$	164,529
Income taxes payable		—		102		—			102
Current liabilities of discontinued operations		—		1,827		—			1,827
Total current liabilities		28,061		286,800		(148,403	)		166,458
Long-term debt		1,111,545		100,000		(100,000	)		1,111,545
Deferred tax liabilities		138,691		835		—			139,526
Other liabilities		—		35,593		—			35,593
Total liabilities		1,278,297		423,228		(248,403	)		1,453,122
Total stockholders’ equity		1,521,620		175,758		(175,758	)		1,521,620
Total liabilities and stockholders’ equity	$	2,799,917	$	598,986	$	(424,161	)	$	2,974,742

Condensed Consolidating Statement of Operations

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the three months ended September 30, 2013

(in thousands)

	Parent			Combined Subsidiary Guarantors			Consolidating Adjustments and Other			Total Consolidated Amounts
REVENUES	$	312,837		$	337,548		$	(228,919	)	$	421,466
EXPENSES:
Operating		232,380			298,028			(228,919	)		301,489
General and administrative		6,954			16,616			—			23,570
Depreciation and amortization		19,268			8,883			—			28,151
Asset impairments		—			985			—			985
		258,602			324,512			(228,919	)		354,195
OPERATING INCOME		54,235			13,036			—			67,271
OTHER (INCOME) EXPENSES:
Interest expense, net		8,877			1,501			—			10,378
Other (income) expense		(275	)		111			(20	)		(184	)
		8,602			1,612			(20	)		10,194
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		45,633			11,424			20			57,077
Income tax (expense) benefit		(217	)		(4,354	)		—			(4,571	)
INCOME FROM CONTINUING OPERATIONS		45,416			7,070			20			52,506
Income from equity in subsidiaries		6,427			—			(6,427	)		—
Loss from discontinued operations, net of taxes		—			(663	)		—			(663	)
NET INCOME	$	51,843		$	6,407		$	(6,407	)	$	51,843

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the three months ended September 30, 2012

(in thousands)

	Parent			Combined Subsidiary Guarantors			Consolidating Adjustments and Other			Total Consolidated Amounts
REVENUES	$	357,515		$	82,668		$	(4,456	)	$	435,727
EXPENSES:
Operating		238,115			71,932			(4,456	)		305,591
General and administrative		17,524			4,491			—			22,015
Depreciation and amortization		18,805			9,583			—			28,388
		274,444			86,006			(4,456	)		355,994
OPERATING INCOME (LOSS)		83,071			(3,338	)		—			79,733
OTHER (INCOME) EXPENSES:
Interest expense, net		13,426			296			—			13,722
Expenses associated with debt refinancing transactions		168			—			—			168
Other income		(70	)		(1	)		(351	)		(422	)
		13,524			295			(351	)		13,468
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		69,547			(3,633	)		351			66,265
Income tax (expense) benefit		(24,828	)		803			—			(24,025	)
INCOME (LOSS) FROM CONTINUING OPERATIONS		44,719			(2,830	)		351			42,240
Loss from equity in subsidiaries		(2,380	)		—			2,380			—
Income from discontinued operations, net of taxes		—			99			—			99
NET INCOME (LOSS)	$	42,339		$	(2,731	)	$	2,731		$	42,339

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the nine months ended September 30, 2013

(in thousands)

	Parent		Combined Subsidiary Guarantors			Consolidating Adjustments and Other			Total Consolidated Amounts
REVENUES	$	945,213	$	1,007,279		$	(689,298	)	$	1,263,194
EXPENSES:
Operating		704,221		888,789			(689,298	)		903,712
General and administrative		24,649		55,513			—			80,162
Depreciation and amortization		56,855		26,348			—			83,203
Asset impairments		—		985			—			985
		785,725		971,635			(689,298	)		1,068,062
OPERATING INCOME		159,488		35,644			—			195,132
OTHER (INCOME) EXPENSES:
Interest expense, net		29,593		5,263			—			34,856
Expenses associated with debt refinancing transactions		28,563		7,965			—			36,528
Other (income) expense		45		(107	)		(58	)		(120	)
		58,201		13,121			(58	)		71,264
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		101,287		22,523			58			123,868
Income tax benefit (expense)		137,981		(4,728	)		—			133,253
INCOME FROM CONTINUING OPERATIONS		239,268		17,795			58			257,121
Income from equity in subsidiaries		14,096		—			(14,096	)		—
Loss from discontinued operations, net of taxes		—		(3,757	)		—			(3,757	)
NET INCOME	$	253,364	$	14,038		$	(14,038	)	$	253,364

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the nine months ended September 30, 2012

(in thousands)

	Parent			Combined Subsidiary Guarantors			Consolidating Adjustments and Other			Total Consolidated Amounts
REVENUES	$	1,063,159		$	246,254		$	(13,433	)	$	1,295,980
EXPENSES:
Operating		715,354			218,144			(13,433	)		920,065
General and administrative		53,292			13,658			—			66,950
Depreciation and amortization		55,515			29,141			—			84,656
		824,161			260,943			(13,433	)		1,071,671
OPERATING INCOME (LOSS)		238,998			(14,689	)		—			224,309
OTHER (INCOME) EXPENSES:
Interest expense, net		44,453			888			—			45,341
Expenses associated with debt refinancing transactions		1,996			—			—			1,996
Other income		(22	)		(36	)		(312	)		(370	)
		46,427			852			(312	)		46,967
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		192,571			(15,541	)		312			177,342
Income tax (expense) benefit		(68,748	)		3,114			—			(65,634	)
INCOME (LOSS) FROM CONTINUING OPERATIONS		123,823			(12,427	)		312			111,708
Loss from equity in subsidiaries		(12,470	)		—			12,470			—
Loss from discontinued operations, net of taxes		—			(355	)		—			(355	)
NET INCOME (LOSS)	$	111,353		$	(12,782	)	$	12,782		$	111,353

Condensed Consolidating Statement of Cash Flows

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the nine months ended September 30, 2013

(in thousands)

	Parent			Combined Subsidiary Guarantors			Consolidating Adjustments And Other			Total Consolidated Amounts
Net cash provided by operating activities	$	165,603		$	118,001		$	—		$	283,604
Net cash used in investing activities		(52,887	)		(44,681	)		15,000			(82,568	)
Net cash used in financing activities		(61,708	)		(117,002	)		(15,000	)		(193,710	)
Net Increase (Decrease) in Cash and Cash Equivalents		51,008			(43,682	)		—			7,326
CASH AND CASH EQUIVALENTS, beginning of period		—			62,897			—			62,897
CASH AND CASH EQUIVALENTS, end of period	$	51,008		$	19,215		$			$	70,223

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the nine months ended September 30, 2012

(in thousands)

	Parent			Combined Subsidiary Guarantors			Consolidating Adjustments And Other		Total Consolidated Amounts
Net cash provided by operating activities	$	202,674		$	20,377		$	—	$	223,051
Net cash used in investing activities		(35,307	)		(26,993	)		—		(62,300	)
Net cash used in financing activities		(167,367	)		10,026			—		(157,341	)
Net Increase in Cash and Cash Equivalents		—			3,410			—		3,410
CASH AND CASH EQUIVALENTS, beginning of period		—			55,832			—		55,832
CASH AND CASH EQUIVALENTS, end of period	$	—		$	59,242		$	—	$	59,242