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

3 Months Ended

Mar. 31, 2017

CONDENSED CONSOLIDATING BALANCE SHEET

CONDENSED CONSOLIDATING BALANCE SHEET

As of March 31, 2017

(in thousands)

	Parent		Combined Subsidiary Guarantors			Consolidating Adjustments and Other			Total Consolidated Amounts
ASSETS
Cash and cash equivalents	$	16,482	$	26,682		$	—		$	43,164
Accounts receivable, net of allowance		218,412		279,745			(285,130	)		213,027
Prepaid expenses and other current assets		2,890		28,606			(6,105	)		25,391
Total current assets		237,784		335,033			(291,235	)		281,582
Property and equipment, net		2,487,309		335,496			—			2,822,805
Goodwill		23,231		14,896			—			38,127
Non-current deferred tax assets		—		12,365			(497	)		11,868
Other assets		358,111		62,692			(334,567	)		86,236
Total assets	$	3,106,435	$	760,482		$	(626,299	)	$	3,240,618
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable and accrued expenses	$	207,007	$	324,814		$	(291,235	)	$	240,586
Income taxes payable		2,826		(225	)		—			2,601
Current portion of long-term debt		10,000		—			—			10,000
Total current liabilities		219,833		324,589			(291,235	)		253,187
Long-term debt, net		1,422,144		114,038			(115,000	)		1,421,182
Non-current deferred tax liabilities		497		—			(497	)		—
Deferred revenue		—		50,006			—			50,006
Other liabilities		800		52,282			—			53,082
Total liabilities		1,643,274		540,915			(406,732	)		1,777,457
Total stockholders’ equity		1,463,161		219,567			(219,567	)		1,463,161
Total liabilities and stockholders’ equity	$	3,106,435	$	760,482		$	(626,299	)	$	3,240,618

CONDENSED CONSOLIDATING BALANCE SHEET

As of December 31, 2016

(in thousands)

	Parent		Combined Subsidiary Guarantors		Consolidating Adjustments and Other			Total Consolidated Amounts
ASSETS
Cash and cash equivalents	$	11,378	$	26,333	$	—		$	37,711
Accounts receivable, net of allowance		237,495		270,952		(278,562	)		229,885
Prepaid expenses and other current assets		7,582		30,123		(6,477	)		31,228
Total current assets		256,455		327,408		(285,039	)		298,824
Property and equipment, net		2,493,025		344,632		—			2,837,657
Goodwill		23,231		15,155		—			38,386
Non-current deferred tax assets		—		14,056		(321	)		13,735
Other assets		339,391		57,873		(314,262	)		83,002
Total assets	$	3,112,102	$	759,124	$	(599,622	)	$	3,271,604
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable and accrued expenses	$	203,074	$	342,072	$	(285,039	)	$	260,107
Income taxes payable		1,850		236		—			2,086
Current portion of long-term debt		10,000		—		—			10,000
Total current liabilities		214,924		342,308		(285,039	)		272,193
Long-term debt, net		1,436,186		113,983		(115,000	)		1,435,169
Non-current deferred tax liabilities		321		—		(321	)		—
Deferred revenue		—		53,437		—			53,437
Other liabilities		1,708		50,134		—			51,842
Total liabilities		1,653,139		559,862		(400,360	)		1,812,641
Total stockholders’ equity		1,458,963		199,262		(199,262	)		1,458,963
Total liabilities and stockholders’ equity	$	3,112,102	$	759,124	$	(599,622	)	$	3,271,604

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the three months ended March 31, 2017

(in thousands)

	Parent			Combined Subsidiary Guarantors			Consolidating Adjustments and Other			Total Consolidated Amounts
REVENUES	$	299,515		$	364,750		$	(218,581	)	$	445,684
EXPENSES:
Operating		226,637			307,247			(218,581	)		315,303
General and administrative		8,336			16,490			—			24,826
Depreciation and amortization		21,348			14,909			—			36,257
Asset impairments		—			259						259
		256,321			338,905			(218,581	)		376,645
OPERATING INCOME		43,194			25,845			—			69,039
OTHER (INCOME) EXPENSE:
Interest expense, net		13,436			3,054			—			16,490
Other (income) expense		(29	)		36			10			17
		13,407			3,090			10			16,507
INCOME BEFORE INCOME TAXES		29,787			22,755			(10	)		52,532
Income tax expense		(720	)		(1,765	)		—			(2,485	)
INCOME BEFORE EQUITY IN SUBSIDIARIES		29,067			20,990			(10	)		50,047
Income from equity in subsidiaries		20,980			—			(20,980	)		—
NET INCOME	$	50,047		$	20,990		$	(20,990	)	$	50,047

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the three months ended March 31, 2016

(in thousands)

	Parent			Combined Subsidiary Guarantors			Consolidating Adjustments and Other			Total Consolidated Amounts
REVENUES	$	284,724		$	377,477		$	(214,816	)	$	447,385
EXPENSES:
Operating		222,064			306,670			(214,816	)		313,918
General and administrative		9,194			17,286			—			26,480
Depreciation and amortization		20,891			21,168			—			42,059
		252,149			345,124			(214,816	)		382,457
OPERATING INCOME		32,575			32,353			—			64,928
OTHER (INCOME) EXPENSE:
Interest expense, net		13,002			4,542			—			17,544
Other (income) expense		112			(191	)		(4	)		(83	)
		13,114			4,351			(4	)		17,461
INCOME BEFORE INCOME TAXES		19,461			28,002			4			47,467
Income tax expense		(366	)		(794	)		—			(1,160	)
INCOME BEFORE EQUITY IN SUBSIDIARIES		19,095			27,208			4			46,307
Income from equity in subsidiaries		27,212			—			(27,212	)		—
NET INCOME	$	46,307		$	27,208		$	(27,208	)	$	46,307

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the three months ended March 31, 2017

(in thousands)

	Parent			Combined Subsidiary Guarantors			Consolidating Adjustments And Other		Total Consolidated Amounts
Net cash provided by operating activities	$	84,226		$	7,265		$	—	$	91,491
Net cash used in investing activities		(13,642	)		(5,688	)		—		(19,330	)
Net cash used in financing activities		(65,480	)		(1,228	)		—		(66,708	)
Net increase (decrease) in cash and cash equivalents		5,104			349			—		5,453
CASH AND CASH EQUIVALENTS, beginning of period		11,378			26,333			—		37,711
CASH AND CASH EQUIVALENTS, end of period	$	16,482		$	26,682		$	—	$	43,164

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the three months ended March 31, 2016

(in thousands)

	Parent			Combined Subsidiary Guarantors			Consolidating Adjustments And Other		Total Consolidated Amounts
Net cash provided by operating activities	$	117,248		$	3,061		$	—	$	120,309
Net cash used in investing activities		(9,174	)		(5,043	)		—		(14,217	)
Net cash used in financing activities		(113,751	)		(2,816	)		—		(116,567	)
Net decrease in cash and cash equivalents		(5,677	)		(4,798	)		—		(10,475	)
CASH AND CASH EQUIVALENTS, beginning of period		15,666			49,625			—		65,291
CASH AND CASH EQUIVALENTS, end of period	$	9,989		$	44,827		$	—	$	54,816