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

6 Months Ended

Jun. 30, 2018

CONDENSED CONSOLIDATING BALANCE SHEET

As of June 30, 2018

(Unaudited and in thousands)

ASSETS	Parent		Combined Subsidiary Guarantors		Non-Guarantor Subsidiaries			Consolidating Adjustments and Other			Total Consolidated Amounts
Cash and cash equivalents	$	41,992	$	29,376	$	—		$	—		$	71,368
Restricted cash		—		—		5,163			—			5,163
Accounts receivable, net of allowance		151,045		418,744		(1	)		(351,931	)		217,857
Prepaid expenses and other current assets		2,824		35,308		14			(5,745	)		32,401
Assets held for sale		12,600		—		—			—			12,600
Total current assets		208,461		483,428		5,176			(357,676	)		339,389
Property and equipment, net		2,470,999		324,477		6,670			—			2,802,146
Goodwill		33,057		10,939		—			—			43,996
Non-current deferred tax assets		—		12,010		—			(479	)		11,531
Other assets		488,835		52,397		—			(445,517	)		95,715
Total assets	$	3,201,352	$	883,251	$	11,846		$	(803,672	)	$	3,292,777
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued expenses	$	275,166	$	360,213	$	190		$	(357,641	)	$	277,928
Income taxes payable		21		179		—			—			200
Current portion of long-term debt		6,193		—		—			—			6,193
Total current liabilities		281,380		360,392		190			(357,641	)		284,321
Long-term debt, net		1,476,808		114,317		11,656			(115,000	)		1,487,781
Non-current deferred tax liabilities		479		—		—			(479	)		—
Deferred revenue		—		32,918		—			—			32,918
Other liabilities		14,767		45,072		—			—			59,839
Total liabilities		1,773,434		552,699		11,846			(473,120	)		1,864,859

Total stockholders' equity		1,427,918		330,552		—			(330,552	)		1,427,918
Total liabilities and stockholders' equity	$	3,201,352	$	883,251	$	11,846		$	(803,672	)	$	3,292,777

CONDENSED CONSOLIDATING BALANCE SHEET

As of December 31, 2017

(in thousands)

ASSETS	Parent		Combined Subsidiary Guarantors		Consolidating Adjustments and Other			Total Consolidated Amounts
Cash and cash equivalents	$	25,745	$	26,438	$	—		$	52,183
Accounts receivable, net of allowance		211,673		372,755		(330,240	)		254,188
Prepaid expenses and other current assets		1,835		24,986		(5,702	)		21,119
Total current assets		239,253		424,179		(335,942	)		327,490
Property and equipment, net		2,467,166		335,283		—			2,802,449
Goodwill		26,031		14,896		—			40,927
Non-current deferred tax assets		—		13,193		(379	)		12,814
Other assets		421,474		69,117		(401,873	)		88,718
Total assets	$	3,153,924	$	856,668	$	(738,194	)	$	3,272,398
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued expenses	$	251,011	$	362,701	$	(335,908	)	$	277,804
Income taxes payable		1,443		1,591		—			3,034
Current portion of long-term debt		10,000		—		—			10,000
Total current liabilities		262,454		364,292		(335,908	)		290,838
Long-term debt, net		1,437,982		114,205		(115,000	)		1,437,187
Non-current deferred tax liabilities		379		—		(379	)		—
Deferred revenue		—		39,735		—			39,735
Other liabilities		1,501		51,529		—			53,030
Total liabilities		1,702,316		569,761		(451,287	)		1,820,790

Total stockholders' equity		1,451,608		286,907		(286,907	)		1,451,608
Total liabilities and stockholders' equity	$	3,153,924	$	856,668	$	(738,194	)	$	3,272,398

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the three months ended June 30, 2018

(Unaudited and in thousands)

	Parent			Combined Subsidiary Guarantors			Consolidating Adjustments and Other			Total Consolidated Amounts
REVENUES	$	313,663		$	371,245		$	(234,979	)	$	449,929
EXPENSES:
Operating		243,853			311,665			(234,979	)		320,539
General and administrative		9,697			17,841			—			27,538
Depreciation and amortization		22,913			15,647			—			38,560
Asset impairments		1,580			—			—			1,580
		278,043			345,153			(234,979	)		388,217
OPERATING INCOME		35,620			26,092			—			61,712
OTHER (INCOME) EXPENSE:
Interest expense, net		16,566			2,472			—			19,038
Expenses associated with debt refinancing transactions		1,016			—			—			1,016
Other (income) expense		138			(145	)		40			33
		17,720			2,327			40			20,087
INCOME BEFORE INCOME TAXES		17,900			23,765			(40	)		41,625
Income tax expense		(342	)		(2,086	)		—			(2,428	)
INCOME BEFORE EQUITY IN SUBSIDIARIES		17,558			21,679			(40	)		39,197
Income from equity in subsidiaries		21,639			—			(21,639	)		—
NET INCOME	$	39,197		$	21,679		$	(21,679	)	$	39,197

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the three months ended June 30, 2017

(Unaudited and in thousands)

	Parent			Combined Subsidiary Guarantors			Consolidating Adjustments and Other			Total Consolidated Amounts
REVENUES	$	287,900		$	361,548		$	(213,055	)	$	436,393
EXPENSES:
Operating		221,293			299,659			(213,055	)		307,897
General and administrative		8,471			17,946			—			26,417
Depreciation and amortization		21,711			15,089			—			36,800
		251,475			332,694			(213,055	)		371,114
OPERATING INCOME		36,425			28,854			—			65,279
OTHER (INCOME) EXPENSE:
Interest expense, net		13,737			2,885			—			16,622
Other (income) expense		(123	)		52			11			(60	)
		13,614			2,937			11			16,562
INCOME BEFORE INCOME TAXES		22,811			25,917			(11	)		48,717
Income tax expense		(450	)		(2,792	)		—			(3,242	)
INCOME BEFORE EQUITY IN SUBSIDIARIES		22,361			23,125			(11	)		45,475
Income from equity in subsidiaries		23,114			—			(23,114	)		—
NET INCOME	$	45,475		$	23,125		$	(23,125	)	$	45,475

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the six months ended June 30, 2018

(Unaudited and in thousands)

	Parent			Combined Subsidiary Guarantors			Consolidating Adjustments and Other			Total Consolidated Amounts
REVENUES	$	621,192		$	737,930		$	(468,277	)	$	890,845
EXPENSES:
Operating		486,038			621,929			(468,277	)		639,690
General and administrative		17,932			34,577			—			52,509
Depreciation and amortization		45,446			31,203			—			76,649
Asset impairments		1,580			—			—			1,580
		550,996			687,709			(468,277	)		770,428
OPERATING INCOME		70,196			50,221			—			120,417
OTHER (INCOME) EXPENSE:
Interest expense, net		32,743			5,331			—			38,074
Expenses associated with debt refinancing transactions		1,016			—			—			1,016
Other (income) expense		20			(87	)		57			(10	)
		33,779			5,244			57			39,080
INCOME BEFORE INCOME TAXES		36,417			44,977			(57	)		81,337
Income tax expense		(765	)		(3,598	)		—			(4,363	)
INCOME BEFORE EQUITY IN SUBSIDIARIES		35,652			41,379			(57	)		76,974
Income from equity in subsidiaries		41,322			—			(41,322	)		—
NET INCOME	$	76,974		$	41,379		$	(41,379	)	$	76,974

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the six months ended June 30, 2017

(Unaudited and in thousands)

	Parent			Combined Subsidiary Guarantors			Consolidating Adjustments and Other			Total Consolidated Amounts
REVENUES	$	587,415		$	726,298		$	(431,636	)	$	882,077
EXPENSES:
Operating		447,930			606,906			(431,636	)		623,200
General and administrative		16,807			34,436			—			51,243
Depreciation and amortization		43,059			29,998			—			73,057
Asset impairments		—			259			—			259
		507,796			671,599			(431,636	)		747,759
OPERATING INCOME		79,619			54,699			—			134,318
OTHER (INCOME) EXPENSE:
Interest expense, net		27,173			5,939			—			33,112
Other (income) expense		(152	)		88			21			(43	)
		27,021			6,027			21			33,069
INCOME BEFORE INCOME TAXES		52,598			48,672			(21	)		101,249
Income tax expense		(1,170	)		(4,557	)		—			(5,727	)
INCOME BEFORE EQUITY IN SUBSIDIARIES		51,428			44,115			(21	)		95,522
Income from equity in subsidiaries		44,094			—			(44,094	)		—
NET INCOME	$	95,522		$	44,115		$	(44,115	)	$	95,522

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the six months ended June 30, 2018

(Unaudited and in thousands)

	Parent			Combined Subsidiary Guarantors			Non-Guarantor Subsidiaries			Consolidating Adjustments and Other		Total Consolidated Amounts
Net cash provided by operating activities	$	161,685		$	21,697		$	269		$	—	$	183,651
Net cash used in investing activities		(69,202	)		(20,221	)		(6,670	)		—		(96,093	)
Net cash provided by (used in) financing activities		(76,236	)		1,462			11,564			—		(63,210	)
Net increase in cash, cash equivalents and restricted cash		16,247			2,938			5,163			—		24,348
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period		25,745			26,438			—			—		52,183
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period	$	41,992		$	29,376		$	5,163		$	—		76,531

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the six months ended June 30, 2017

(Unaudited and in thousands)

	Parent			Combined Subsidiary Guarantors			Consolidating Adjustments and Other		Total Consolidated Amounts
Net cash provided by operating activities	$	168,002		$	14,781		$	—	$	182,783
Net cash used in investing activities		(32,647	)		(10,544	)		—		(43,191	)
Net cash used in financing activities		(130,655	)		(64	)		—		(130,719	)
Net increase in cash, cash equivalents and restricted cash		4,700			4,173			—		8,873
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period		11,378			26,333			—		37,711
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period	$	16,078		$	30,506		$	—	$	46,584