CONDENSED CONSOLIDATING FINANCIAL STATEMENTS OF THE COMPANY AND SUBSIDIARIES (Tables)

6 Months Ended

Jun. 30, 2016

CONDENSED CONSOLIDATING BALANCE SHEET

CONDENSED CONSOLIDATING BALANCE SHEET

As of June 30, 2016

(in thousands)

	Parent		Combined Subsidiary Guarantors		Consolidating Adjustments and Other			Total Consolidated Amounts
ASSETS
Cash and cash equivalents	$	20,641	$	50,202	$	—		$	70,843
Accounts receivable, net of allowance		262,953		234,914		(276,440	)		221,427
Prepaid expenses and other current assets		3,836		35,345		(6,186	)		32,995
Total current assets		287,430		320,461		(282,626	)		325,265
Property and equipment, net		2,506,346		363,804		—			2,870,150
Restricted cash		218		—		—			218
Goodwill		23,260		15,155		—			38,415
Non-current deferred tax assets		—		8,085		(311	)		7,774
Other assets		305,404		59,140		(278,616	)		85,928
Total assets	$	3,122,658	$	766,645	$	(561,553	)	$	3,327,750
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable and accrued expenses	$	218,944	$	396,542	$	(282,627	)	$	332,859
Income taxes payable		908		231		—			1,139
Current portion of long-term debt		7,500		—		—			7,500
Total current liabilities		227,352		396,773		(282,627	)		341,498
Long-term debt, net		1,449,270		113,872		(115,000	)		1,448,142
Non-current deferred tax liabilities		311		—		(311	)		—
Deferred revenue		—		45,608		—			45,608
Other liabilities		1,098		46,777		—			47,875
Total liabilities		1,678,031		603,030		(397,938	)		1,883,123
Total stockholders’ equity		1,444,627		163,615		(163,615	)		1,444,627
Total liabilities and stockholders’ equity	$	3,122,658	$	766,645	$	(561,553	)	$	3,327,750

CONDENSED CONSOLIDATING BALANCE SHEET

As of December 31, 2015

(in thousands)

	Parent		Combined Subsidiary Guarantors		Consolidating Adjustments and Other			Total Consolidated Amounts
ASSETS
Cash and cash equivalents	$	15,666	$	49,625	$	—		$	65,291
Restricted cash		637		240		—			877
Accounts receivable, net of allowance		300,632		159,286		(225,462	)		234,456
Prepaid expenses and other current assets		3,760		43,706		(6,032	)		41,434
Total current assets		320,695		252,857		(231,494	)		342,058
Property and equipment, net		2,526,278		356,782		—			2,883,060
Restricted cash		131		—		—			131
Investment in direct financing lease		684		—		—			684
Goodwill		20,402		15,155		—			35,557
Non-current deferred tax assets		—		10,217		(393	)		9,824
Other assets		241,510		57,120		(213,926	)		84,704
Total assets	$	3,109,700	$	692,131	$	(445,813	)	$	3,356,018
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable and accrued expenses	$	191,600	$	357,569	$	(231,494	)	$	317,675
Income taxes payable		—		1,920		—			1,920
Current portion of long-term debt		5,000		—		—			5,000
Total current liabilities		196,600		359,489		(231,494	)		324,595
Long-term debt, net		1,448,316		113,761		(115,000	)		1,447,077
Non-current deferred tax liabilities		393		—		(393	)		—
Deferred revenue		—		63,289		—			63,289
Other liabilities		1,643		56,666		—			58,309
Total liabilities		1,646,952		593,205		(346,887	)		1,893,270
Total stockholders’ equity		1,462,748		98,926		(98,926	)		1,462,748
Total liabilities and stockholders’ equity	$	3,109,700	$	692,131	$	(445,813	)	$	3,356,018

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the three months ended June 30, 2016

(in thousands)

	Parent			Combined Subsidiary Guarantors			Consolidating Adjustments and Other			Total Consolidated Amounts
REVENUES	$	293,314		$	386,740		$	(216,723	)	$	463,331
EXPENSES:
Operating		224,689			308,480			(216,723	)		316,446
General and administrative		8,832			18,532			—			27,364
Depreciation and amortization		21,055			21,290			—			42,345
		254,576			348,302			(216,723	)		386,155
OPERATING INCOME		38,738			38,438			—			77,176
OTHER (INCOME) EXPENSE:
Interest expense, net		12,868			3,928			—			16,796
Other (income) expense		289			(153	)		(4	)		132
		13,157			3,775			(4	)		16,928
INCOME BEFORE INCOME TAXES		25,581			34,663			4			60,248
Income tax expense		(515	)		(2,150	)		—			(2,665	)
INCOME BEFORE EQUITY IN SUBSIDIARIES		25,066			32,513			4			57,583
Income from equity in subsidiaries		32,517			—			(32,517	)		—
NET INCOME	$	57,583		$	32,513		$	(32,513	)	$	57,583

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the three months ended June 30, 2015

(in thousands)

	Parent			Combined Subsidiary Guarantors			Consolidating Adjustments and Other			Total Consolidated Amounts
REVENUES	$	302,374		$	372,948		$	(216,027	)	$	459,295
EXPENSES:
Operating		221,956			312,106			(216,027	)		318,035
General and administrative		6,699			16,408			—			23,107
Depreciation and amortization		20,275			18,125			—			38,400
Asset impairments		—			—			—			—
		248,930			346,639			(216,027	)		379,542
OPERATING INCOME		53,444			26,309			—			79,753
OTHER (INCOME) EXPENSE:
Interest expense, net		8,254			3,507			—			11,761
Other (income) expense		(211	)		111			136			36
		8,043			3,618			136			11,797
INCOME BEFORE INCOME TAXES		45,401			22,691			(136	)		67,956
Income tax expense		(345	)		(2,308	)		—			(2,653	)
INCOME BEFORE EQUITY IN SUBSIDIARIES		45,056			20,383			(136	)		65,303
Income from equity in subsidiaries		20,247			—			(20,247	)		—
NET INCOME	$	65,303		$	20,383		$	(20,383	)	$	65,303

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the six months ended June 30, 2016

(in thousands)

	Parent			Combined Subsidiary Guarantors			Consolidating Adjustments and Other			Total Consolidated Amounts
REVENUES	$	578,038		$	764,217		$	(431,539	)	$	910,716
EXPENSES:
Operating		446,753			615,150			(431,539	)		630,364
General and administrative		18,026			35,818			—			53,844
Depreciation and amortization		41,946			42,458			—			84,404
		506,725			693,426			(431,539	)		768,612
OPERATING INCOME		71,313			70,791			—			142,104
OTHER (INCOME) EXPENSE:
Interest expense, net		25,870			8,470			—			34,340
Other (income) expense		401			(344	)		(8	)		49
		26,271			8,126			(8	)		34,389
INCOME BEFORE INCOME TAXES		45,042			62,665			8			107,715
Income tax expense		(881	)		(2,944	)		—			(3,825	)
INCOME BEFORE EQUITY IN SUBSIDIARIES		44,161			59,721			8			103,890
Income from equity in subsidiaries		59,729			—			(59,729	)		—
NET INCOME	$	103,890		$	59,721		$	(59,721	)	$	103,890

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the six months ended June 30, 2015

(in thousands)

	Parent			Combined Subsidiary Guarantors			Consolidating Adjustments and Other			Total Consolidated Amounts
REVENUES	$	605,414		$	708,171		$	(428,290	)	$	885,295
EXPENSES:
Operating		443,633			603,354			(428,290	)		618,697
General and administrative		15,499			34,480			—			49,979
Depreciation and amortization		40,344			26,741			—			67,085
Asset impairments		—			955			—			955
		499,476			665,530			(428,290	)		736,716
OPERATING INCOME		105,938			42,641			—			148,579
OTHER (INCOME) EXPENSE:
Interest expense, net		16,681			5,270			—			21,951
Other (income) expense		(40	)		(10	)		60			10
		16,641			5,260			60			21,961
INCOME BEFORE INCOME TAXES		89,297			37,381			(60	)		126,618
Income tax expense		(521	)		(3,517	)		—			(4,038	)
INCOME BEFORE EQUITY IN SUBSIDIARIES		88,776			33,864			(60	)		122,580
Income from equity in subsidiaries		33,804			—			(33,804	)		—
NET INCOME	$	122,580		$	33,864		$	(33,864	)	$	122,580

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the six months ended June 30, 2016

(in thousands)

	Parent			Combined Subsidiary Guarantors			Consolidating Adjustments And Other		Total Consolidated Amounts
Net cash provided by operating activities	$	158,035		$	55,291		$	—	$	213,326
Net cash used in investing activities		(20,643	)		(51,899	)		—		(72,542	)
Net cash used in financing activities		(132,417	)		(2,815	)		—		(135,232	)
Net increase in cash and cash equivalents		4,975			577			—		5,552
CASH AND CASH EQUIVALENTS, beginning of period		15,666			49,625			—		65,291
CASH AND CASH EQUIVALENTS, end of period	$	20,641		$	50,202		$	—		70,843

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the six months ended June 30, 2015

(in thousands)

	Parent			Combined Subsidiary Guarantors			Consolidating Adjustments And Other			Total Consolidated Amounts
Net cash provided by operating activities	$	100,465		$	114,782		$	—		$	215,247
Net cash used in investing activities		(19,214	)		(55,143	)		(84,999	)		(159,356	)
Net cash provided by (used in) financing activities		(92,032	)		(82,182	)		84,999			(89,215	)
Net decrease in cash and cash equivalents		(10,781	)		(22,543	)		—			(33,324	)
CASH AND CASH EQUIVALENTS, beginning of period		12,337			62,056			—			74,393
CASH AND CASH EQUIVALENTS, end of period	$	1,556		$	39,513		$	—		$	41,069