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

9 Months Ended

Sep. 30, 2019

CONDENSED CONSOLIDATING BALANCE SHEET (Unaudited)

CONDENSED CONSOLIDATING BALANCE SHEET

As of September 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	$	18,481	$	28,164	$	892		$	—		$	47,537
Restricted cash		—		4		25,537			—			25,541
Accounts receivable, net of allowance		167,096		558,325		(157	)		(453,670	)		271,594
Prepaid expenses and other current assets		3,210		33,281		3,540			(4,058	)		35,973
Total current assets		188,787		619,774		29,812			(457,728	)		380,645
Real estate and related assets:
Property and equipment, net		2,234,415		273,315		329,111			—			2,836,841
Other real estate assets		239,149		—		—			—			239,149
Goodwill		33,057		15,112		—			—			48,169
Non-current deferred tax assets		—		16,982		2,250			(281	)		18,951
Other assets		593,681		147,211		36,230			(552,032	)		225,090
Total assets	$	3,289,089	$	1,072,394	$	397,403		$	(1,010,041	)	$	3,748,845
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued expenses	$	315,790	$	409,644	$	104,670		$	(457,693	)	$	372,411
Current portion of long-term debt, net		335,909		47,937		6,545			(48,000	)		342,391
Total current liabilities		651,699		457,581		111,215			(505,693	)		714,802
Long-term debt, net		1,235,797		66,658		286,330			(67,000	)		1,521,785
Non-current deferred tax liabilities		281		—		—			(281	)		—
Deferred revenue		—		15,877		—			—			15,877
Other liabilities		18,111		95,069		—			—			113,180
Total liabilities		1,905,888		635,185		397,545			(572,974	)		2,365,644
Total stockholders' equity		1,383,201		437,209		(142	)		(437,067	)		1,383,201
Total liabilities and stockholders' equity	$	3,289,089	$	1,072,394	$	397,403		$	(1,010,041	)	$	3,748,845

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 September 30, 2019

(Unaudited and in thousands)

	Parent			Combined Subsidiary Guarantors			Non- Guarantor Subsidiaries		Consolidating Adjustments and Other			Total Consolidated Amounts
REVENUES	$	352,054		$	419,407		$	6,146	$	(269,085	)	$	508,522
EXPENSES:
Operating		277,142			358,237			2,441		(269,085	)		368,735
General and administrative		10,546			21,492			—		—			32,038
Depreciation and amortization		23,604			11,098			1,952		—			36,654
		311,292			390,827			4,393		(269,085	)		437,427
OPERATING INCOME		40,762			28,580			1,753		—			71,095
OTHER (INCOME) EXPENSE:
Interest expense, net		17,820			1,462			1,693		—			20,975
Other (income) expense		(95	)		(73	)		16		(208	)		(360	)
		17,725			1,389			1,709		(208	)		20,615
INCOME BEFORE INCOME TAXES		23,037			27,191			44		208			50,480
Income tax expense		(476	)		(1,010	)		—		—			(1,486	)
INCOME BEFORE EQUITY IN SUBSIDIARIES		22,561			26,181			44		208			48,994
Income from equity in subsidiaries		26,433			—			—		(26,433	)		—
NET INCOME	$	48,994		$	26,181		$	44	$	(26,225	)	$	48,994

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the three months ended September 30, 2018

(Unaudited and in thousands)

	Parent			Combined Subsidiary Guarantors			Non- Guarantor Subsidiaries		Consolidating Adjustments and Other			Total Consolidated Amounts
REVENUES	$	322,872		$	381,594		$	2,497	$	(244,235	)	$	462,728
EXPENSES:
Operating		253,267			323,765			962		(244,235	)		333,759
General and administrative		8,686			16,399			—		—			25,085
Depreciation and amortization		23,475			15,349			641		—			39,465
		285,428			355,513			1,603		(244,235	)		398,309
OPERATING INCOME		37,444			26,081			894		—			64,419
OTHER (INCOME) EXPENSE:
Interest expense, net		16,962			2,825			747		—			20,534
Other (income) expense		42			(20	)		27		—			49
		17,004			2,805			774		—			20,583
INCOME BEFORE INCOME TAXES		20,440			23,276			120		—			43,836
Income tax expense		(332	)		(2,510	)		—		—			(2,842	)
INCOME BEFORE EQUITY IN SUBSIDIARIES		20,108			20,766			120		—			40,994
Income from equity in subsidiaries		20,886			—			—		(20,886	)		—
NET INCOME	$	40,994		$	20,766		$	120	$	(20,886	)	$	40,994

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the nine months ended September 30, 2019

(Unaudited and in thousands)

	Parent			Combined Subsidiary Guarantors			Non-Guarantor Subsidiaries			Consolidating Adjustments and Other			Total Consolidated Amounts
REVENUES	$	1,026,761		$	1,208,274		$	17,583		$	(769,738	)	$	1,482,880
EXPENSES:
Operating		795,055			1,028,064			6,865			(769,738	)		1,060,246
General and administrative		32,710			62,137			—			—			94,847
Depreciation and amortization		69,999			31,955			5,814			—			107,768
Asset impairments		4,706			—			—			—			4,706
		902,470			1,122,156			12,679			(769,738	)		1,267,567
OPERATING INCOME		124,291			86,118			4,904			—			215,313
OTHER (INCOME) EXPENSE:
Interest expense, net		53,768			4,218			5,087			—			63,073
Other (income) expense		(368	)		(102	)		64			(208	)		(614	)
		53,400			4,116			5,151			(208	)		62,459
INCOME BEFORE INCOME TAXES		70,891			82,002			(247	)		208			152,854
Income tax expense		(1,049	)		(4,893	)		—			—			(5,942	)
INCOME BEFORE EQUITY IN SUBSIDIARIES		69,842			77,109			(247	)		208			146,912
Income from equity in subsidiaries		77,070			—			—			(77,070	)		—
NET INCOME	$	146,912		$	77,109		$	(247	)	$	(76,862	)	$	146,912

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the nine months ended September 30, 2018

(Unaudited and in thousands)

	Parent			Combined Subsidiary Guarantors			Non- Guarantor Subsidiaries		Consolidating Adjustments and Other			Total Consolidated Amounts
REVENUES	$	944,064		$	1,119,524		$	2,497	$	(712,512	)	$	1,353,573
EXPENSES:
Operating		739,305			945,694			962		(712,512	)		973,449
General and administrative		26,618			50,976			—		—			77,594
Depreciation and amortization		68,921			46,552			641		—			116,114
Asset impairments		1,580			—			—		—			1,580
		836,424			1,043,222			1,603		(712,512	)		1,168,737
OPERATING INCOME		107,640			76,302			894		—			184,836
OTHER (INCOME) EXPENSE:
Interest expense, net		49,705			8,156			747		—			58,608
Expenses associated with debt refinancing transactions		1,016			—			—		—			1,016
Other (income) expense		62			(107	)		84		0			39
		50,783			8,049			831		—			59,663
INCOME BEFORE INCOME TAXES		56,857			68,253			63		—			125,173
Income tax expense		(1,097	)		(6,108	)		—		—			(7,205	)
INCOME BEFORE EQUITY IN SUBSIDIARIES		55,760			62,145			63		—			117,968
Income from equity in subsidiaries		62,208			—			—		(62,208	)		—
NET INCOME	$	117,968		$	62,145		$	63	$	(62,208	)	$	117,968

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (Unaudited)

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the nine months ended September 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	$	270,007		$	27,748		$	6,317		$	—	$	304,072
Net cash used in investing activities		(38,762	)		(78,381	)		(80,911	)		—		(198,054	)
Net cash provided by (used in) financing activities		(223,873	)		38,453			78,343			—		(107,077	)
Net increase (decrease) in cash, cash equivalents and    restricted cash		7,372			(12,180	)		3,749			—		(1,059	)
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	$	18,481		$	28,168		$	26,429		$	—	$	73,078

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the nine months ended September 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	$	255,765		$	19,472		$	9,334		$	—		$	284,571
Net cash used in investing activities		(178,280	)		(23,098	)		(124,178	)		94,920			(230,636	)
Net cash provided by (used in) financing activities		(34,631	)		1,852			126,309			(94,920	)		(1,390	)
Net increase (decrease) in cash, cash equivalents and    restricted cash		42,854			(1,774	)		11,465			—			52,545
CASH, CASH EQUIVALENTS AND RESTRICTED    CASH, beginning of period		25,745			26,438			—			—			52,183
CASH, CASH EQUIVALENTS AND RESTRICTED    CASH, end of period	$	68,599		$	24,664		$	11,465		$	—		$	104,728