Guarantor/Non Guarantor Condensed Consolidating Financial Statements (Tables)

9 Months Ended

Sep. 30, 2018

Guarantor Non Guarantor Condensed Consolidated Financial Statements [Abstract]

CONDENSED CONSOLIDATING BALANCE SHEETS

(unaudited, in thousands)



	September 30, 2018
	Parent			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	48,404		$	—	$	3,064		$	—		$	51,468
Restricted cash	2,000			—		—			—			2,000
Receivables, net of allowance	5			105,907		32,981			787			139,680
Intercompany receivable (payable)	(26,935		)	66,100		(39,165		)	—			—
Inventory	—			9,636		9,356			—			18,992
Assets held for sale	—			6,102		—			—			6,102
Prepaid expenses and other current assets	1,988			1,846		1,800			—			5,634
Total current assets	25,462			189,591		8,036			787			223,876
Net property and equipment	2,098			497,418		27,744			—			527,260
Investment in subsidiaries	585,245			23,177		—			(608,422		)	—
Deferred income taxes	42,150			—		—			(42,150		)	—
Other noncurrent assets	636			482		621			—			1,739
Total assets	$	655,591		$	710,668	$	36,401		$	(649,785	)	$	752,875
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	1,643		$	26,834	$	6,270		$	—		$	34,747
Deferred revenues	—			1		1,129			—			1,130
Accrued expenses	10,214			51,603		5,344			787			67,948
Total current liabilities	11,857			78,438		12,743			787			103,825
Long-term debt, less unamortized discount and debt issuance costs	463,805			—		—			—			463,805
Deferred income taxes	—			45,494		—			(42,150		)	3,344
Other noncurrent liabilities	1,432			1,491		481			—			3,404
Total liabilities	477,094			125,423		13,224			(41,363		)	574,378
Total shareholders’ equity	178,497			585,245		23,177			(608,422		)	178,497
Total liabilities and shareholders’ equity	$	655,591		$	710,668	$	36,401		$	(649,785	)	$	752,875

	December 31, 2017
	Parent			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	70,377		$	—	$	3,263		$	—		$	73,640
Restricted cash	2,008			—		—			—			2,008
Receivables, net of allowance	7			93,866		19,174			(42		)	113,005
Intercompany receivable (payable)	(22,955		)	49,651		(26,696		)	—			—
Inventory	—			7,741		6,316			—			14,057
Assets held for sale	—			6,620		—			—			6,620
Prepaid expenses and other current assets	1,238			3,193		1,798			—			6,229
Total current assets	50,675			161,071		3,855			(42		)	215,559
Net property and equipment	2,011			521,080		26,532			—			549,623
Investment in subsidiaries	596,927			20,095		—			(617,022		)	—
Deferred income taxes	38,028			—		—			(38,028		)	—
Other noncurrent assets	496			788		403			—			1,687
Total assets	$	688,137		$	703,034	$	30,790		$	(655,092	)	$	766,869
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	286		$	24,174	$	5,078		$	—		$	29,538
Deferred revenues	—			97		808			—			905
Accrued expenses	12,504			37,814		4,195			(42		)	54,471
Total current liabilities	12,790			62,085		10,081			(42		)	84,914
Long-term debt, less unamortized discount and debt issuance costs	461,665			—		—			—			461,665
Deferred income taxes	—			41,179		—			(38,028		)	3,151
Other noncurrent liabilities	3,586			2,843		614			—			7,043
Total liabilities	478,041			106,107		10,695			(38,070		)	556,773
Total shareholders’ equity	210,096			596,927		20,095			(617,022		)	210,096
Total liabilities and shareholders’ equity	$	688,137		$	703,034	$	30,790		$	(655,092	)	$	766,869

Condensed Consolidating Statements of Operations

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited, in thousands)



	Three months ended September 30, 2018
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	—		$	126,202		$	23,130		$	—		$	149,332
Costs and expenses:
Operating costs	—			89,950			19,011			—			108,961
Depreciation and amortization	269			21,769			1,463			—			23,501
General and administrative	2,260			11,152			736			(105		)	14,043
Intercompany leasing	—			(1,215		)	1,215			—			—
Bad debt expense, net of recovery	—			111			—			—			111
Impairment	—			239			—			—			239
Gain on dispositions of property and equipment, net	—			(1,856		)	(5		)	—			(1,861		)
Total costs and expenses	2,529			120,150			22,420			(105		)	144,994
Income (loss) from operations	(2,529		)	6,052			710			105			4,338
Other income (expense):
Equity in earnings of subsidiaries	5,011			618			—			(5,629		)	—
Interest expense	(9,802		)	(12		)	3			—			(9,811		)
Other income	244			222			137			(105		)	498
Total other income (expense), net	(4,547		)	828			140			(5,734		)	(9,313		)
Income (loss) before income taxes	(7,076		)	6,880			850			(5,629		)	(4,975		)
Income tax (expense) benefit ¹	1,843			(1,869		)	(232		)	—			(258		)
Net income (loss)	$	(5,233	)	$	5,011		$	618		$	(5,629	)	$	(5,233	)


	Three months ended September 30, 2017
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	—		$	109,878		$	7,403		$	—		$	117,281
Costs and expenses:
Operating costs	—			80,054			6,615			—			86,669
Depreciation and amortization	313			22,882			1,428			—			24,623
General and administrative	5,737			11,445			505			(138		)	17,549
Intercompany leasing	—			(1,215		)	1,215			—			—
Bad debt expense, net of recovery	—			491			—			—			491
Gain on dispositions of property and equipment, net	—			(1,159		)	—			—			(1,159		)
Total costs and expenses	6,050			112,498			9,763			(138		)	128,173
Loss from operations	(6,050		)	(2,620		)	(2,360		)	138			(10,892		)
Other income (expense):
Equity in earnings of subsidiaries	(4,650		)	(2,393		)	—			7,043			—
Interest expense	(6,614		)	1			—			—			(6,613		)
Other income	9			220			204			(138		)	295
Total other income (expense), net	(11,255		)	(2,172		)	204			6,905			(6,318		)
Loss before income taxes	(17,305		)	(4,792		)	(2,156		)	7,043			(17,210		)
Income tax (expense) benefit ¹	78			142			(237		)	—			(17		)
Net loss	$	(17,227	)	$	(4,650	)	$	(2,393	)	$	7,043		$	(17,227	)

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 OPERATIONS

(unaudited, in thousands)



	Nine months ended September 30, 2018
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	—		$	386,077		$	62,515		$	—		$	448,592
Costs and expenses:
Operating costs	—			276,893			49,031			—			325,924
Depreciation and amortization	826			65,498			4,211			—			70,535
General and administrative	18,628			37,781			1,972			(315		)	58,066
Intercompany leasing	—			(3,645		)	3,645			—			—
Bad debt recovery, net of expense	—			(311		)	—			—			(311		)
Impairment	—			2,607			—			—			2,607
Gain on dispositions of property and equipment, net	—			(2,890		)	(32		)	—			(2,922		)
Total costs and expenses	19,454			375,933			58,827			(315		)	453,899
Income (loss) from operations	(19,454		)	10,144			3,688			315			(5,307		)
Other income (expense):
Equity in earnings of subsidiaries	10,081			3,305			—			(13,386		)	—
Interest expense	(28,963		)	(14		)	11			—			(28,966		)
Other income	405			664			292			(315		)	1,046
Total other income (expense), net	(18,477		)	3,955			303			(13,701		)	(27,920		)
Income (loss) before income taxes	(37,931		)	14,099			3,991			(13,386		)	(33,227		)
Income tax (expense) benefit ¹	3,407			(4,018		)	(686		)	—			(1,297		)
Net income (loss)	$	(34,524	)	$	10,081		$	3,305		$	(13,386	)	$	(34,524	)


	Nine months ended September 30, 2017
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	—		$	293,788		$	26,380		$	—		$	320,168
Costs and expenses:
Operating costs	—			218,281			20,175			—			238,456
Depreciation and amortization	921			69,027			4,407			—			74,355
General and administrative	16,507			33,881			1,431			(414		)	51,405
Intercompany leasing	—			(3,645		)	3,645			—			—
Bad debt recovery, net of expense	—			(98		)	—			—			(98		)
Impairment	—			795			—			—			795
Loss (gain) on dispositions of property and equipment, net	2			(2,126		)	(127		)	—			(2,251		)
Total costs and expenses	17,430			316,115			29,531			(414		)	362,662
Loss from operations	(17,430		)	(22,327		)	(3,151		)	414			(42,494		)
Other income (expense):
Equity in earnings of subsidiaries	(19,518		)	(3,924		)	—			23,442			—
Interest expense	(19,110		)	20			—			—			(19,090		)
Other income (expense)	37			678			(77		)	(414		)	224
Total other expense, net	(38,591		)	(3,226		)	(77		)	23,028			(18,866		)
Loss before income taxes	(56,021		)	(25,553		)	(3,228		)	23,442			(61,360		)
Income tax (expense) benefit ¹	(6,539		)	6,035			(696		)	—			(1,200		)
Net loss	$	(62,560	)	$	(19,518	)	$	(3,924	)	$	23,442		$	(62,560	)

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 Consolidating Statements of Cash Flows

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

(unaudited, in thousands)



	Nine months ended September 30, 2018
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities	$	(43,466	)	$	60,269		$	4,687		$	—		$	21,490

Cash flows from investing activities:
Purchases of property and equipment	(762		)	(43,374		)	(4,642		)	—			(48,778		)
Proceeds from sale of property and equipment	—			4,648			17			—			4,665
Proceeds from insurance recoveries	—			965			15			—			980
	(762		)	(37,761		)	(4,610		)	—			(43,133		)

Cash flows from financing activities:
Proceeds from exercise of options	12			—			—			—			12
Purchase of treasury stock	(549		)	—			—			—			(549		)
Intercompany contributions/distributions	22,784			(22,508		)	(276		)	—			—
	22,247			(22,508		)	(276		)	—			(537		)

Net decrease in cash, cash equivalents and restricted cash	(21,981		)	—			(199		)	—			(22,180		)
Beginning cash, cash equivalents and restricted cash	72,385			—			3,263			—			75,648
Ending cash, cash equivalents and restricted cash	$	50,404		$	—		$	3,064		$	—		$	53,468

	Nine months ended September 30, 2017
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities	$	(35,837	)	$	20,229		$	4,346		$	—		$	(11,262	)

Cash flows from investing activities:
Purchases of property and equipment	(563		)	(48,490		)	(4,023		)	270			(52,806		)
Proceeds from sale of property and equipment	—			10,528			149			(270		)	10,407
Proceeds from insurance recoveries	—			3,119			—			—			3,119
	(563		)	(34,843		)	(3,874		)	—			(39,280		)

Cash flows from financing activities:
Debt repayments	(13,267		)	—			—			—			(13,267		)
Proceeds from issuance of debt	65,000			—			—			—			65,000
Purchase of treasury stock	(533		)	—			—			—			(533		)
Intercompany contributions/distributions	(14,379		)	14,614			(235		)	—			—
	36,821			14,614			(235		)	—			51,200

Net increase (decrease) in cash and cash equivalents	421			—			237			—			658
Beginning cash and cash equivalents	9,134			—			1,060			—			10,194
Ending cash and cash equivalents	$	9,555		$	—		$	1,297		$	—		$	10,852