Guarantor/Non Guarantor Condensed Consolidated Financial Statements (Tables)

9 Months Ended

Sep. 30, 2016

Guarantor Non Guarantor Condensed Consolidated Financial Statements [Abstract]

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited, in thousands)



	September 30, 2016
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	8,099		$	(1,022	)	$	2,626		$	—		$	9,703
Receivables, net of allowance	360			59,404			2,448			—			62,212
Intercompany receivable (payable)	(24,836		)	31,627			(6,791		)	—			—
Inventory	—			4,749			3,505			—			8,254
Assets held for sale	—			6,243			—			—			6,243
Prepaid expenses and other current assets	1,245			2,177			1,308			—			4,730
Total current assets	(15,132		)	103,178			3,096			—			91,142
Net property and equipment	2,700			599,473			26,991			—			629,164
Investment in subsidiaries	581,866			28,362			—			(610,228		)	—
Intangible assets, net of accumulated amortization	—			781			—			—			781
Other long-term assets	87,347			704			489			(86,830		)	1,710
Total assets	$	656,781		$	732,498		$	30,576		$	(697,058	)	$	722,797
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	379		$	12,201		$	434		$	—		$	13,014
Deferred revenues	—			706			451			—			1,157
Accrued expenses	4,407			35,297			1,134			—			40,838
Total current liabilities	4,786			48,204			2,019			—			55,009
Long-term debt, less debt issuance costs	399,508			—			—			—			399,508
Deferred income taxes	—			100,269			—			(86,830		)	13,439
Other long-term liabilities	1,383			2,159			195			—			3,737
Total liabilities	405,677			150,632			2,214			(86,830		)	471,693
Total shareholders’ equity	251,104			581,866			28,362			(610,228		)	251,104
Total liabilities and shareholders’ equity	$	656,781		$	732,498		$	30,576		$	(697,058	)	$	722,797

	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
Other long-term assets	85,501			962			722			(84,989		)	2,196
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 September 30, 2016
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	—		$	67,731		$	622		$	—		$	68,353
Costs and expenses:
Operating costs	—			50,061			1,627			—			51,688
Depreciation and amortization	303			26,659			1,701			—			28,663
General and administrative	5,046			9,017			387			(138		)	14,312
Intercompany leasing	—			(1,215		)	1,215			—			—
Bad debt expense	—			(359		)	—			—			(359		)
Impairment charges	—			4,262			—			—			4,262
Gain on dispositions of property and equipment, net	—			(325		)	(3		)	—			(328		)
Total costs and expenses	5,349			88,100			4,927			(138		)	98,238
Income (loss) from operations	(5,349		)	(20,369		)	(4,305		)	138			(29,885		)
Other income (expense):
Equity in earnings of subsidiaries	(23,794		)	(4,587		)	—			28,381			—
Interest expense	(6,661		)	(14		)	(3		)	—			(6,678		)
Other	14			217			152			(138		)	245
Total other income (expense)	(30,441		)	(4,384		)	149			28,243			(6,433		)
Income (loss) before income taxes	(35,790		)	(24,753		)	(4,156		)	28,381			(36,318		)
Income tax (expense) benefit ¹	1,170			959			(431		)	—			1,698
Net income (loss)	$	(34,620	)	$	(23,794	)	$	(4,587	)	$	28,381		$	(34,620	)



	Three months ended September 30, 2015
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	—		$	104,810		$	2,670		$	—		$	107,480
Costs and expenses:
Operating costs	—			67,682			3,964			—			71,646
Depreciation and amortization	325			32,797			2,135			—			35,257
General and administrative	4,864			11,543			417			(138		)	16,686
Intercompany leasing	—			(1,215		)	1,215			—			—
Bad debt expense	—			(1,071		)	—			—			(1,071		)
Impairment charges	—			2,329			—			—			2,329
Loss (gain) on dispositions of property and equipment, net	128			651			(174		)	—			605
Total costs and expenses	5,317			112,716			7,557			(138		)	125,452
Income (loss) from operations	(5,317		)	(7,906		)	(4,887		)	138			(17,972		)
Other income (expense):
Equity in earnings of subsidiaries	(11,208		)	(6,309		)	—			17,517			—
Interest expense	(4,983		)	2			6			—			(4,975		)
Loss on extinguishment of debt	(490		)	—			—			—			(490		)
Other	(21		)	472			(1,098		)	(138		)	(785		)
Total other income (expense)	(16,702		)	(5,835		)	(1,092		)	17,379			(6,250		)
Income (loss) before income taxes	(22,019		)	(13,741		)	(5,979		)	17,517			(24,222		)
Income tax (expense) benefit ¹	4,479			2,533			(330		)	—			6,682
Net income (loss)	$	(17,540	)	$	(11,208	)	$	(6,309	)	$	17,517		$	(17,540	)

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited, in thousands)



	Nine months ended September 30, 2016
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	—		$	203,616		$	1,979		$	—		$	205,595
Costs and expenses:
Operating costs	—			142,766			4,726			—			147,492
Depreciation and amortization	960			81,257			5,192			—			87,409
General and administrative	16,324			29,061			1,107			(414		)	46,078
Intercompany leasing	—			(3,645		)	3,645			—			—
Bad debt expense	—			(302		)	—			—			(302		)
Impairment charges	—			4,262			—			—			4,262
Gain on dispositions of property and equipment, net	—			(366		)	(54		)	—			(420		)
Total costs and expenses	17,284			253,033			14,616			(414		)	284,519
Income (loss) from operations	(17,284		)	(49,417		)	(12,637		)	414			(78,924		)
Other income (expense):
Equity in earnings of subsidiaries	(58,421		)	(13,777		)	—			72,198			—
Interest expense	(19,220		)	(88		)	1			—			(19,307		)
Loss on extinguishment of debt	(299		)	—			—			—			(299		)
Other	12			1,222			(246		)	(414		)	574
Total other income (expense)	(77,928		)	(12,643		)	(245		)	71,784			(19,032		)
Income (loss) before income taxes	(95,212		)	(62,060		)	(12,882		)	72,198			(97,956		)
Income tax (expense) benefit ¹	2,902			3,639			(895		)	—			5,646
Net income (loss)	$	(92,310	)	$	(58,421	)	$	(13,777	)	$	72,198		$	(92,310	)


	Nine months ended September 30, 2015
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	—		$	399,596		$	36,709		$	—		$	436,305
Costs and expenses:
Operating costs	—			258,125			30,506			—			288,631
Depreciation and amortization	1,020			104,841			9,667			—			115,528
General and administrative	15,624			39,916			1,783			(414		)	56,909
Intercompany leasing	—			(3,645		)	3,645			—			—
Bad debt expense	—			(358		)	—			—			(358		)
Impairment charges	—			23,766			56,632			(750		)	79,648
Gain on dispositions of property and equipment, net	128			(2,572		)	(195		)	—			(2,639		)
Total costs and expenses	16,772			420,073			102,038			(1,164		)	537,719
Income (loss) from operations	(16,772		)	(20,477		)	(65,329		)	1,164			(101,414		)
Other income (expense):
Equity in earnings of subsidiaries	(87,179		)	(73,472		)	—			160,651			—
Interest expense	(15,573		)	(120		)	18			—			(15,675		)
Loss on extinguishment of debt	(490		)	—			—			—			(490		)
Other	(14		)	1,343			(3,894		)	(414		)	(2,979		)
Total other income (expense)	(103,256		)	(72,249		)	(3,876		)	160,237			(19,144		)
Income (loss) before income taxes	(120,028		)	(92,726		)	(69,205		)	161,401			(120,558		)
Income tax (expense) benefit ¹	12,438			5,547			(4,267		)	—			13,718
Net income (loss)	$	(107,590	)	$	(87,179	)	$	(73,472	)	$	161,401		$	(106,840	)

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)



	Nine months ended September 30, 2016
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidated
Cash flows from operating activities	$	(37,104	)	$	44,422		$	326		$	7,644
Cash flows from investing activities:
Purchases of property and equipment	(352		)	(24,997		)	(235		)	(25,584		)
Proceeds from sale of property and equipment	—			2,689			54			2,743
	(352		)	(22,308		)	(181		)	(22,841		)
Cash flows from financing activities:
Debt repayments	(500		)	—			—			(500		)
Proceeds from issuance of debt	12,000			—			—			12,000
Debt issuance costs	(819		)	—			—			(819		)
Proceeds from exercise of options	183			—			—			183
Purchase of treasury stock	(124		)	—			—			(124		)
Intercompany contributions/distributions	17,594			(17,524		)	(70		)	—
	28,334			(17,524		)	(70		)	10,740
Net increase (decrease) in cash and cash equivalents	(9,122		)	4,590			75			(4,457		)
Beginning cash and cash equivalents	17,221			(5,612		)	2,551			14,160
Ending cash and cash equivalents	$	8,099		$	(1,022	)	$	2,626		$	9,703

	Nine months ended September 30, 2015
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidated
Cash flows from operating activities	$	7,109		$	114,977		$	16,979		$	139,065
Cash flows from investing activities:
Purchases of property and equipment	(437		)	(128,363		)	(1,590		)	(130,390		)
Proceeds from sale of property and equipment	22			37,557			224			37,803
Proceeds from insurance recoveries	—			227			—			227
	(415		)	(90,579		)	(1,366		)	(92,360		)
Cash flows from financing activities:
Debt repayments	(45,000		)	(3		)	—			(45,003		)
Debt issuance costs	(999		)	—			—			(999		)
Proceeds from exercise of options	781			—			—			781
Purchase of treasury stock	(729		)	—			—			(729		)
Intercompany contributions/distributions	37,914			(17,109		)	(20,805		)	—
	(8,033		)	(17,112		)	(20,805		)	(45,950		)
Net increase (decrease) in cash and cash equivalents	(1,339		)	7,286			(5,192		)	755
Beginning cash and cash equivalents	27,688			(5,516		)	12,752			34,924
Ending cash and cash equivalents	$	26,349		$	1,770		$	7,560		$	35,679