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

6 Months Ended

Jun. 30, 2019

CONDENSED CONSOLIDATING BALANCE SHEET (Unaudited)

CONDENSED CONSOLIDATING BALANCE SHEET

As of June 30, 2019

(Unaudited and in thousands)

ASSETS	Parent		Combined Subsidiary Guarantors		Non-Guarantor Subsidiaries			Consolidating Adjustments and Other			Total Consolidated Amounts
Cash and cash equivalents	$	21,732	$	34,312	$	701		$	—		$	56,745
Restricted cash		—		4		30,146			—			30,150
Accounts receivable, net of allowance		194,790		505,880		(108	)		(428,139	)		272,423
Prepaid expenses and other current assets		3,434		33,337		167			(4,147	)		32,791
Total current assets		219,956		573,533		30,906			(432,286	)		392,109
Real estate and related assets:
Property and equipment, net		2,242,107		269,546		312,376			—			2,824,029
Other real estate assets		242,073		—		—			—			242,073
Goodwill		33,057		15,112		—			—			48,169
Non-current deferred tax assets		1,513		17,014		2,082			(1,751	)		18,858
Other assets		563,909		133,838		36,858			(520,952	)		213,653
Total assets	$	3,302,615	$	1,009,043	$	382,222		$	(954,989	)	$	3,738,891
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued expenses	$	263,198	$	390,837	$	108,665		$	(432,251	)	$	330,449
Current portion of long-term debt, net		335,719		47,905		5,528			(48,000	)		341,152
Total current liabilities		598,917		438,742		114,193			(480,251	)		671,601
Long-term debt, net		1,301,253		66,634		268,231			(67,000	)		1,569,118
Non-current deferred tax liabilities		1,751		—		—			(1,751	)		—
Deferred revenue		—		19,286		—			—			19,286
Other liabilities		18,103		78,192		—			—			96,295
Total liabilities		1,920,024		602,854		382,424			(549,002	)		2,356,300
Total stockholders' equity		1,382,591		406,189		(202	)		(405,987	)		1,382,591
Total liabilities and stockholders' equity	$	3,302,615	$	1,009,043	$	382,222		$	(954,989	)	$	3,738,891

CONDENSED CONSOLIDATING BALANCE SHEET

As of December 31, 2018

(in thousands)

ASSETS	Parent		Combined Subsidiary Guarantors		Non- Guarantor Subsidiaries		Consolidating Adjustments and Other			Total Consolidated Amounts
Cash and cash equivalents	$	11,109	$	40,348	$	1,345	$	—		$	52,802
Restricted cash		—		—		21,335		—			21,335
Accounts receivable, net of allowance		254,766		445,105		1,809		(431,083	)		270,597
Prepaid expenses and other current assets		4,412		26,939		1,951		(4,511	)		28,791
Total current assets		270,287		512,392		26,440		(435,594	)		373,525
Real estate and related assets:
Property and equipment, net		2,255,361		310,989		264,239		—			2,830,589
Other real estate assets		247,223		—		—		—			247,223
Goodwill		33,057		15,112		—		—			48,169
Non-current deferred tax assets		727		14,220		1,165		(1,165	)		14,947
Other assets		507,161		61,104		38,112		(465,170	)		141,207
Total assets	$	3,313,816	$	913,817	$	329,956	$	(901,929	)	$	3,655,660
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued expenses	$	294,474	$	377,699	$	115,661	$	(435,559	)	$	352,275
Current portion of long-term debt		8,720		—		5,401		—			14,121
Total current liabilities		303,194		377,699		121,062		(435,559	)		366,396
Long-term debt, net		1,579,273		114,428		208,854		(115,000	)		1,787,555
Non-current deferred tax liabilities		1,165		—		—		(1,165	)		—
Deferred revenue		—		26,102		—		—			26,102
Other liabilities		15,125		45,423		—		—			60,548
Total liabilities		1,898,757		563,652		329,916		(551,724	)		2,240,601
Total stockholders' equity		1,415,059		350,165		40		(350,205	)		1,415,059
Total liabilities and stockholders' equity	$	3,313,816	$	913,817	$	329,956	$	(901,929	)	$	3,655,660

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS (Unaudited)

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the three months ended June 30, 2019

(Unaudited and in thousands)

	Parent			Combined Subsidiary Guarantors			Non- Guarantor Subsidiaries			Consolidating Adjustments and Other			Total Consolidated Amounts
REVENUES	$	339,495		$	396,790		$	5,714		$	(251,705	)	$	490,294
EXPENSES:
Operating		260,420			334,832			2,132			(251,705	)		345,679
General and administrative		12,136			21,228			—			—			33,364
Depreciation and amortization		23,111			10,542			1,938			—			35,591
Asset impairments		4,706			—			—			—			4,706
		300,373			366,602			4,070			(251,705	)		419,340
OPERATING INCOME		39,122			30,188			1,644			—			70,954
OTHER (INCOME) EXPENSE:
Interest expense, net		17,662			1,303			1,697			—			20,662
Other (income) expense		(205	)		(69	)		16			—			(258	)
		17,457			1,234			1,713			—			20,404
INCOME BEFORE INCOME TAXES		21,665			28,954			(69	)		—			50,550
Income tax expense		(44	)		(1,928	)		—			—			(1,972	)
INCOME BEFORE EQUITY IN SUBSIDIARIES		21,621			27,026			(69	)		—			48,578
Income from equity in subsidiaries		26,957			—			—			(26,957	)		—
NET INCOME	$	48,578		$	27,026		$	(69	)	$	(26,957	)	$	48,578

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 six months ended June 30, 2019

(Unaudited and in thousands)

	Parent			Combined Subsidiary Guarantors			Non-Guarantor Subsidiaries			Consolidating Adjustments and Other			Total Consolidated Amounts
REVENUES	$	674,707		$	788,867		$	11,437		$	(500,653	)	$	974,358
EXPENSES:
Operating		517,913			669,827			4,424			(500,653	)		691,511
General and administrative		22,164			40,645			—			—			62,809
Depreciation and amortization		46,395			20,857			3,862			—			71,114
Asset impairments		4,706			—			—			—			4,706
		591,178			731,329			8,286			(500,653	)		830,140
OPERATING INCOME		83,529			57,538			3,151			—			144,218
OTHER (INCOME) EXPENSE:
Interest expense, net		35,948			2,756			3,394			—			42,098
Other (income) expense		(273	)		(29	)		48						(254	)
		35,675			2,727			3,442			—			41,844
INCOME BEFORE INCOME TAXES		47,854			54,811			(291	)		—			102,374
Income tax expense		(573	)		(3,883	)		—			—			(4,456	)
INCOME BEFORE EQUITY IN SUBSIDIARIES		47,281			50,928			(291	)		—			97,918
Income from equity in subsidiaries		50,637			—			—			(50,637	)		—
NET INCOME	$	97,918		$	50,928		$	(291	)	$	(50,637	)	$	97,918

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 CASH FLOWS (Unaudited)

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the six months ended June 30, 2019

(Unaudited and in thousands)

	Parent			Combined Subsidiary Guarantors			Non- Guarantor Subsidiaries			Consolidating Adjustments and Other		Total Consolidated Amounts
Net cash provided by operating activities	$	122,947		$	36,783		$	6,892		$	—	$	166,622
Net cash used in investing activities		(11,326	)		(76,563	)		(58,189	)		—		(146,078	)
Net cash provided by (used in) financing activities		(100,998	)		33,748			59,464			—		(7,786	)
Net increase (decrease) in cash, cash equivalents and    restricted cash		10,623			(6,032	)		8,167			—		12,758
CASH, CASH EQUIVALENTS AND RESTRICTED    CASH, beginning of period		11,109			40,348			22,680			—		74,137
CASH, CASH EQUIVALENTS AND RESTRICTED    CASH, end of period	$	21,732		$	34,316		$	30,847		$	—	$	86,895

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