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

9 Months Ended

Sep. 30, 2017

As of September 30, 2017

(in thousands)

ASSETS	Parent		Combined Subsidiary Guarantors			Consolidating Adjustments and Other			Total Consolidated Amounts
Cash and cash equivalents	$	20,122	$	22,613		$	—		$	42,735
Accounts receivable, net of allowance		190,866		347,066			(296,789	)		241,143
Prepaid expenses and other current assets		2,583		23,597			(6,002	)		20,178
Total current assets		213,571		393,276			(302,791	)		304,056
Property and equipment, net		2,477,110		322,366			—			2,799,476
Goodwill		23,832		14,896			—			38,728
Non-current deferred tax assets		—		15,955			(495	)		15,460
Other assets		405,683		64,472			(385,109	)		85,046
Total assets	$	3,120,196	$	810,965		$	(688,395	)	$	3,242,766
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued expenses	$	235,716	$	333,480		$	(302,791	)	$	266,405
Income taxes payable		1,945		(777	)		—			1,168
Current portion of long-term debt		10,000		—			—			10,000
Total current liabilities		247,661		332,703			(302,791	)		277,573
Long-term debt, net		1,412,060		114,150			(115,000	)		1,411,210
Non-current deferred tax liabilities		495		—			(495	)		—
Deferred revenue		—		43,143			—			43,143
Other liabilities		1,299		50,860			—			52,159
Total liabilities		1,661,515		540,856			(418,286	)		1,784,085

Total stockholders' equity		1,458,681		270,109			(270,109	)		1,458,681
Total liabilities and stockholders' equity	$	3,120,196	$	810,965		$	(688,395	)	$	3,242,766

CONDENSED CONSOLIDATING BALANCE SHEET

As of December 31, 2016

(in thousands)

ASSETS	Parent		Combined Subsidiary Guarantors		Consolidating Adjustments and Other			Total Consolidated Amounts
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

For the three months ended September 30, 2017

(in thousands)

	Parent			Combined Subsidiary Guarantors			Consolidating Adjustments and Other			Total Consolidated Amounts
REVENUES	$	297,856		$	368,507		$	(223,518	)	$	442,845
EXPENSES:
Operating		231,528			308,855			(223,518	)		316,865
General and administrative		9,823			18,480			—			28,303
Depreciation and amortization		22,147			14,360			—			36,507
Asset impairments		300			55			—			355
		263,798			341,750			(223,518	)		382,030
OPERATING INCOME		34,058			26,757			—			60,815
OTHER (INCOME) EXPENSE:
Interest expense, net		14,046			2,983			—			17,029
Other (income) expense		(96	)		21			10			(65	)
		13,950			3,004			10			16,964
INCOME BEFORE INCOME TAXES		20,108			23,753			(10	)		43,851
Income tax expense		(541	)		(2,132	)		—			(2,673	)
INCOME BEFORE EQUITY IN SUBSIDIARIES		19,567			21,621			(10	)		41,178
Income from equity in subsidiaries		21,611			—			(21,611	)		—
NET INCOME	$	41,178		$	21,621		$	(21,621	)	$	41,178

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the three months ended September 30, 2016

(in thousands)

	Parent			Combined Subsidiary Guarantors			Consolidating Adjustments and Other			Total Consolidated Amounts
REVENUES	$	298,659		$	398,617		$	(222,341	)	$	474,935
EXPENSES:
Operating		230,244			318,446			(222,341	)		326,349
General and administrative		9,326			18,373			—			27,699
Depreciation and amortization		21,321			21,603			—			42,924
Restructuring charges		197			3,813			—			4,010
		261,088			362,235			(222,341	)		400,982
OPERATING INCOME		37,571			36,382			—			73,953
OTHER (INCOME) EXPENSE:
Interest expense, net		12,975			3,962			—			16,937
Other (income) expense		115			(57	)		(4	)		54
		13,090			3,905			(4	)		16,991
INCOME BEFORE INCOME TAXES		24,481			32,477			4			56,962
Income tax expense		(512	)		(1,110	)		—			(1,622	)
INCOME BEFORE EQUITY IN SUBSIDIARIES		23,969			31,367			4			55,340
Income from equity in subsidiaries		31,371			—			(31,371	)		—
NET INCOME	$	55,340		$	31,367		$	(31,367	)	$	55,340

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the nine months ended September 30, 2017

(in thousands)

	Parent			Combined Subsidiary Guarantors			Consolidating Adjustments and Other			Total Consolidated Amounts
REVENUES	$	885,271		$	1,094,805		$	(655,154	)	$	1,324,922
EXPENSES:
Operating		679,458			915,761			(655,154	)		940,065
General and administrative		26,630			52,916			—			79,546
Depreciation and amortization		65,206			44,358			—			109,564
Asset impairments		300			314			—			614
		771,594			1,013,349			(655,154	)		1,129,789
OPERATING INCOME		113,677			81,456			—			195,133
OTHER (INCOME) EXPENSE:
Interest expense, net		41,219			8,922			—			50,141
Other (income) expense		(248	)		109			31			(108	)
		40,971			9,031			31			50,033
INCOME BEFORE INCOME TAXES		72,706			72,425			(31	)		145,100
Income tax expense		(1,711	)		(6,689	)		—			(8,400	)
INCOME BEFORE EQUITY IN SUBSIDIARIES		70,995			65,736			(31	)		136,700
Income from equity in subsidiaries		65,705			—			(65,705	)		—
NET INCOME	$	136,700		$	65,736		$	(65,736	)	$	136,700

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the nine months ended September 30, 2016

(in thousands)

	Parent			Combined Subsidiary Guarantors			Consolidating Adjustments and Other			Total Consolidated Amounts
REVENUES	$	876,697		$	1,162,834		$	(653,880	)	$	1,385,651
EXPENSES:
Operating		676,997			933,596			(653,880	)		956,713
General and administrative		27,352			54,191			—			81,543
Depreciation and amortization		63,267			64,061			—			127,328
Restructuring charges		197			3,813			—			4,010
		767,813			1,055,661			(653,880	)		1,169,594
OPERATING INCOME		108,884			107,173			—			216,057
OTHER (INCOME) EXPENSE:
Interest expense, net		38,845			12,432			—			51,277
Other (income) expense		516			(401	)		(12	)		103
		39,361			12,031			(12	)		51,380
INCOME BEFORE INCOME TAXES		69,523			95,142			12			164,677
Income tax expense		(1,393	)		(4,054	)		—			(5,447	)
INCOME BEFORE EQUITY IN SUBSIDIARIES		68,130			91,088			12			159,230
Income from equity in subsidiaries		91,100			—			(91,100	)		—
NET INCOME	$	159,230		$	91,088		$	(91,088	)	$	159,230

For the nine months ended September 30, 2017

(in thousands)

	Parent			Combined Subsidiary Guarantors			Consolidating Adjustments And Other		Total Consolidated Amounts
Net cash provided by operating activities	$	239,662		$	24,473		$	—	$	264,135
Net cash used in investing activities		(50,216	)		(31,544	)		—		(81,760	)
Net cash provided by (used in) financing activities		(180,702	)		3,351			—		(177,351	)
Net increase (decrease) in cash and cash equivalents		8,744			(3,720	)		—		5,024
CASH AND CASH EQUIVALENTS, beginning of period		11,378			26,333			—		37,711
CASH AND CASH EQUIVALENTS, end of period	$	20,122		$	22,613		$	—		42,735

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the nine months ended September 30, 2016

(in thousands)

	Parent			Combined Subsidiary Guarantors			Consolidating Adjustments And Other		Total Consolidated Amounts
Net cash provided by operating activities	$	271,286		$	29,901		$	—	$	301,187
Net cash used in investing activities		(35,510	)		(60,453	)		—		(95,963	)
Net cash provided by (used in) financing activities		(228,738	)		954			—		(227,784	)
Net increase (decrease) in cash and cash equivalents		7,038			(29,598	)		—		(22,560	)
CASH AND CASH EQUIVALENTS, beginning of period		15,666			49,625			—		65,291
CASH AND CASH EQUIVALENTS, end of period	$	22,704		$	20,027		$	—	$	42,731