Guarantor/Non Guarantor Condensed Consolidated Financial Statements (Tables)

6 Months Ended

Jun. 30, 2016

Guarantor Non Guarantor Condensed Consolidated Financial Statements [Abstract]

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited, in thousands)



	June 30, 2016
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	10,528		$	(1,112	)	$	5,162		$	—		$	14,578
Receivables, net of allowance	363			55,960			2,556			—			58,879
Intercompany receivable (payable)	(24,837		)	31,628			(6,791		)	—			—
Inventory	—			5,128			3,512			—			8,640
Assets held for sale	—			4,513			—			—			4,513
Prepaid expenses and other current assets	1,645			3,038			1,206			—			5,889
Total current assets	(12,301		)	99,155			5,645			—			92,499
Net property and equipment	2,829			623,236			28,729			—			654,794
Investment in subsidiaries	606,157			32,981			—			(639,138		)	—
Intangible assets, net of accumulated amortization	—			1,166			—			—			1,166
Deferred income taxes	85,759			—			15			(85,759		)	15
Other long-term assets	437			850			763			—			2,050
Total assets	$	682,881		$	757,388		$	35,152		$	(724,897	)	$	750,524
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	927		$	11,870		$	280		$	—		$	13,077
Deferred revenues	—			2,446			402			—			2,848
Accrued expenses	8,266			33,949			1,079			—			43,294
Total current liabilities	9,193			48,265			1,761			—			59,219
Long-term debt, less debt issuance costs	387,551			—			—			—			387,551
Deferred income taxes	—			100,859			—			(85,759		)	15,100
Other long-term liabilities	991			2,107			410			—			3,508
Total liabilities	397,735			151,231			2,171			(85,759		)	465,378
Total shareholders’ equity	285,146			606,157			32,981			(639,138		)	285,146
Total liabilities and shareholders’ equity	$	682,881		$	757,388		$	35,152		$	(724,897	)	$	750,524

	December 31, 2015
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	17,221		$	(5,612	)	$	2,551		$	—		$	14,160
Receivables, net of allowance	74			67,174			12,568			—			79,816
Intercompany receivable (payable)	(24,836		)	31,108			(6,272		)	—			—
Inventory	—			5,591			3,671			—			9,262
Assets held for sale	—			4,619			—			—			4,619
Prepaid expenses and other current assets	1,200			4,767			1,444			—			7,411
Total current assets	(6,341		)	107,647			13,962			—			115,268
Net property and equipment	3,311			667,321			31,953			—			702,585
Investment in subsidiaries	657,090			42,240			—			(699,330		)	—
Intangible assets, net of accumulated amortization	—			1,944			—			—			1,944
Deferred income taxes	84,989			—			18			(84,989		)	18
Other long-term assets	512			962			704			—			2,178
Total assets	$	739,561		$	820,114		$	46,637		$	(784,319	)	$	821,993
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	616		$	14,628		$	1,707		$	—		$	16,951
Deferred revenues	—			5,570			652			—			6,222
Accrued expenses	8,373			37,023			1,473			—			46,869
Total current liabilities	8,989			57,221			3,832			—			70,042
Long-term debt, less debt issuance costs	387,217			—			—			—			387,217
Deferred income taxes	—			102,509			—			(84,989		)	17,520
Other long-term liabilities	712			3,294			565			—			4,571
Total liabilities	396,918			163,024			4,397			(84,989		)	479,350
Total shareholders’ equity	342,643			657,090			42,240			(699,330		)	342,643
Total liabilities and shareholders’ equity	$	739,561		$	820,114		$	46,637		$	(784,319	)	$	821,993

Condensed Consolidated Statements of Operations

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited, in thousands)



	Three months ended June 30, 2016
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	—		$	62,029		$	261		$	—		$	62,290
Costs and expenses:
Operating costs	—			42,395			1,120			—			43,515
Depreciation and amortization	325			26,867			1,730			—			28,922
General and administrative	5,393			9,496			507			(138		)	15,258
Intercompany leasing	—			(1,215		)	1,215			—			—
Bad debt expense	—			112			—			—			112
Loss (gain) on dispositions of property and equipment, net	—			514			(6		)	—			508
Total costs and expenses	5,718			78,169			4,566			(138		)	88,315
Income (loss) from operations	(5,718		)	(16,140		)	(4,305		)	138			(26,025		)
Other income (expense):
Equity in earnings of subsidiaries	(18,210		)	(4,344		)	—			22,554			—
Interest expense	(6,325		)	(52		)	2			—			(6,375		)
Loss on extinguishment of debt	(299		)	—			—			—			(299		)
Other	5			685			166			(138		)	718
Total other income (expense)	(24,829		)	(3,711		)	168			22,416			(5,956		)
Income (loss) before income taxes	(30,547		)	(19,851		)	(4,137		)	22,554			(31,981		)
Income tax (expense) benefit ¹	556			1,641			(207		)	—			1,990
Net income (loss)	$	(29,991	)	$	(18,210	)	$	(4,344	)	$	22,554		$	(29,991	)



	Three months ended June 30, 2015
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	—		$	120,933		$	14,078		$	—		$	135,011
Costs and expenses:
Operating costs	—			74,904			11,017			—			85,921
Depreciation and amortization	346			34,367			3,776			—			38,489
General and administrative	5,685			12,118			698			(138		)	18,363
Intercompany leasing	—			(1,215		)	1,215			—			—
Bad debt expense	—			394			—			—			394
Impairment charges	—			15,447			56,632			(750		)	71,329
Gain on dispositions of property and equipment, net	—			(4,356		)	(21		)	—			(4,377		)
Total costs and expenses	6,031			131,659			73,317			(888		)	210,119
Income (loss) from operations	(6,031		)	(10,726		)	(59,239		)	888			(75,108		)
Other income (expense):
Equity in earnings of subsidiaries	(70,508		)	(62,574		)	—			133,082			—
Interest expense	(5,135		)	(118		)	8			—			(5,245		)
Other	(2		)	419			207			(138		)	486
Total other income (expense)	(75,645		)	(62,273		)	215			132,944			(4,759		)
Income (loss) before income taxes	(81,676		)	(72,999		)	(59,024		)	133,832			(79,867		)
Income tax (expense) benefit ¹	3,645			2,491			(3,550		)	—			2,586
Net income (loss)	$	(78,031	)	$	(70,508	)	$	(62,574	)	$	133,832		$	(77,281	)

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited, in thousands)



	Six months ended June 30, 2016
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	—		$	135,885		$	1,357		$	—		$	137,242
Costs and expenses:
Operating costs	—			92,705			3,099			—			95,804
Depreciation and amortization	657			54,598			3,491			—			58,746
General and administrative	11,278			20,044			720			(276		)	31,766
Intercompany leasing	—			(2,430		)	2,430			—			—
Bad debt expense	—			57			—			—			57
Gain on dispositions of property and equipment, net	—			(41		)	(51		)	—			(92		)
Total costs and expenses	11,935			164,933			9,689			(276		)	186,281
Income (loss) from operations	(11,935		)	(29,048		)	(8,332		)	276			(49,039		)
Other income (expense):
Equity in earnings of subsidiaries	(34,627		)	(9,190		)	—			43,817			—
Interest expense	(12,559		)	(74		)	4			—			(12,629		)
Loss on extinguishment of debt	(299		)	—			—			—			(299		)
Other	(2		)	1,005			(398		)	(276		)	329
Total other income (expense)	(47,487		)	(8,259		)	(394		)	43,541			(12,599		)
Income (loss) before income taxes	(59,422		)	(37,307		)	(8,726		)	43,817			(61,638		)
Income tax (expense) benefit ¹	1,732			2,680			(464		)	—			3,948
Net income (loss)	$	(57,690	)	$	(34,627	)	$	(9,190	)	$	43,817		$	(57,690	)


	Six months ended June 30, 2015
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	—		$	294,786		$	34,039		$	—		$	328,825
Costs and expenses:
Operating costs	—			190,443			26,542			—			216,985
Depreciation and amortization	695			72,044			7,532			—			80,271
General and administrative	10,760			28,373			1,366			(276		)	40,223
Intercompany leasing	—			(2,430		)	2,430			—			—
Bad debt expense	—			713			—			—			713
Impairment charges	—			21,437			56,632			(750		)	77,319
Gain on dispositions of property and equipment, net	—			(3,223		)	(21		)				(3,244		)
Total costs and expenses	11,455			307,357			94,481			(1,026		)	412,267
Income (loss) from operations	(11,455		)	(12,571		)	(60,442		)	1,026			(83,442		)
Other income (expense):
Equity in earnings of subsidiaries	(75,971		)	(67,163		)	—			143,134			—
Interest expense	(10,590		)	(122		)	12			—			(10,700		)
Other	7			871			(2,796		)	(276		)	(2,194		)
Total other income (expense)	(86,554		)	(66,414		)	(2,784		)	142,858			(12,894		)
Income (loss) before income taxes	(98,009		)	(78,985		)	(63,226		)	143,884			(96,336		)
Income tax (expense) benefit ¹	7,959			3,014			(3,937		)	—			7,036
Net income (loss)	$	(90,050	)	$	(75,971	)	$	(67,163	)	$	143,884		$	(89,300	)

¹ The income tax expense (benefit) reflected in each column does not include any tax effect of the equity in earnings (losses) of subsidiaries.

Condensed Consolidated Statements of Cash Flows

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited, in thousands)



	Six months ended June 30, 2016
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidated
Cash flows from operating activities	$	(22,636	)	$	33,298		$	2,934		$	13,596
Cash flows from investing activities:
Purchases of property and equipment	(148		)	(12,819		)	(273		)	(13,240		)
Proceeds from sale of property and equipment	—			761			51			812
	(148		)	(12,058		)	(222		)	(12,428		)
Cash flows from financing activities:
Debt issuance costs	(809		)	—			—			(809		)
Proceeds from exercise of options	183			—			—			183
Purchase of treasury stock	(124		)	—			—			(124		)
Intercompany contributions/distributions	16,841			(16,740		)	(101		)	—
	16,091			(16,740		)	(101		)	(750		)
Net increase (decrease) in cash and cash equivalents	(6,693		)	4,500			2,611			418
Beginning cash and cash equivalents	17,221			(5,612		)	2,551			14,160
Ending cash and cash equivalents	$	10,528		$	(1,112	)	$	5,162		$	14,578

	Six months ended June 30, 2015
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidated
Cash flows from operating activities	$	(24,993	)	$	137,663		$	9,101		$	121,771
Cash flows from investing activities:
Purchases of property and equipment	(268		)	(82,554		)	(1,205		)	(84,027		)
Proceeds from sale of property and equipment	22			34,487			29			34,538
Proceeds from insurance recoveries	—			227			—			227
	(246		)	(47,840		)	(1,176		)	(49,262		)
Cash flows from financing activities:
Debt repayments	(45,000		)	(2		)	—			(45,002		)
Debt issuance costs	(5		)	—			—			(5		)
Proceeds from exercise of options	753			—			—			753
Purchase of treasury stock	(711		)	—			—			(711		)
Intercompany contributions/distributions	100,200			(86,338		)	(13,862		)	—
	55,237			(86,340		)	(13,862		)	(44,965		)
Net increase (decrease) in cash and cash equivalents	29,998			3,483			(5,937		)	27,544
Beginning cash and cash equivalents	27,688			(5,516		)	12,752			34,924
Ending cash and cash equivalents	$	57,686		$	(2,033	)	$	6,815		$	62,468