Quarterly report pursuant to Section 13 or 15(d)

Parent, Guarantor, Non-Guarantor Unaudited Consolidating Condensed Financial Statements

v2.4.0.8
Parent, Guarantor, Non-Guarantor Unaudited Consolidating Condensed Financial Statements
9 Months Ended
Sep. 30, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Parent, Guarantor, Non-Guarantor Unaudited Consolidating Condensed Financial Statements
Parent, Guarantor, Non-Guarantor Unaudited Consolidating Condensed Financial Statements
Set forth on the following pages are the consolidating condensed financial statements of Parker Drilling. The Company’s Secured Credit Agreement and Senior Notes are fully and unconditionally guaranteed by substantially all of our direct and indirect domestic subsidiaries other than immaterial subsidiaries and subsidiaries generating revenues primarily outside the United States, subject to the following customary release provisions:

in connection with any sale or other disposition of all or substantially all of the assets of that guarantor (including by way of merger or consolidation) to a person that is not (either before or after giving effect to such transaction) a subsidiary of the Company;
in connection with any sale of such amount of capital stock as would result in such guarantor no longer being a subsidiary to a person that is not (either before or after giving effect to such transaction) a subsidiary of the Company;
if the Company designates any restricted subsidiary that is a guarantor as an unrestricted subsidiary;
if the guarantee by a guarantor of all other indebtedness of the Company or any other guarantor is released, terminated or discharged, except by, or as a result of, payment under such guarantee; or
upon legal defeasance or covenant defeasance (satisfaction and discharge of the indenture).

There are currently no restrictions on the ability of the restricted subsidiaries to transfer funds to Parker Drilling in the form of cash dividends, loans or advances. Parker Drilling is a holding company with no operations, other than through its subsidiaries. Separate financial statements for each guarantor company are not provided as the Company complies with the exception to Rule 3-10(a)(1) of Regulation S-X, set forth in sub-paragraph (f) of such rule. All guarantor subsidiaries are owned 100 percent by the parent company.
We are providing unaudited consolidating condensed financial information of the parent, Parker Drilling, the guarantor subsidiaries, and the non-guarantor subsidiaries as of September 30, 2014 and December 31, 2013 and for the three and nine months ended September 30, 2014 and 2013. The consolidating condensed financial statements present investments in both consolidated and unconsolidated subsidiaries using the equity method of accounting.
PARKER DRILLING COMPANY AND SUBSIDIARIES
CONSOLIDATING CONDENSED BALANCE SHEET
(Dollars in Thousands)
(Unaudited)
 
 
September 30, 2014
 
Parent
 
Guarantor
 
Non-Guarantor
 
Eliminations
 
Consolidated
ASSETS
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
23,577

 
$
12,515

 
$
42,219

 
$

 
$
78,311

Accounts and notes receivable, net
(1
)
 
108,637

 
156,167

 

 
264,803

Rig materials and supplies

 
727

 
45,047

 

 
45,774

Deferred costs

 

 
6,857

 

 
6,857

Deferred income taxes

 
6,843

 
1,172

 

 
8,015

Other tax assets
55,782

 
(56,829
)
 
19,169

 

 
18,122

Other current assets

 
11,754

 
11,730

 

 
23,484

Total current assets
79,358

 
83,647

 
282,361

 

 
445,366

Property, plant and equipment, net
(19
)
 
599,251

 
313,621

 

 
912,853

Investment in subsidiaries and intercompany advances
2,822,265

 
1,232,241

 
2,273,328

 
(6,327,834
)
 

Other noncurrent assets
(482,689
)
 
533,446

 
233,349

 
(121,312
)
 
162,794

Total assets
$
2,418,915

 
$
2,448,585

 
$
3,102,659

 
$
(6,449,146
)
 
$
1,521,013

 
 
 
 
 
 
 
 
 
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
Current portion of long-term debt
$
10,000

 
$

 
$

 
$

 
$
10,000

Accounts payable and accrued liabilities
67,053

 
83,258

 
268,575

 
(258,175
)
 
160,711

Accrued income taxes
(5,548
)
 
11,327

 
5,974

 

 
11,753

Total current liabilities
71,505

 
94,585

 
274,549

 
(258,175
)
 
182,464

Long-term debt
607,500

 

 

 

 
607,500

Other long-term liabilities
2,866

 
6,636

 
8,405

 

 
17,907

Long-term deferred tax liability
(29
)
 
60,314

 
(5,745
)
 

 
54,540

Intercompany payables
1,082,870

 
1,017,037

 
999,057

 
(3,098,964
)
 

Total liabilities
1,764,712

 
1,178,572

 
1,276,266

 
(3,357,139
)
 
862,411

Total equity
654,203

 
1,270,013

 
1,826,393

 
(3,092,007
)
 
658,602

Total liabilities and stockholders’ equity
$
2,418,915

 
$
2,448,585

 
$
3,102,659

 
$
(6,449,146
)
 
$
1,521,013



PARKER DRILLING COMPANY AND SUBSIDIARIES
CONSOLIDATING CONDENSED BALANCE SHEET
(Dollars in Thousands)
(Unaudited)
 
 
December 31, 2013
 
Parent
 
Guarantor
 
Non-Guarantor
 
Eliminations
 
Consolidated
ASSETS
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
88,697

 
$
8,310

 
$
51,682

 
$

 
$
148,689

Accounts and notes receivable, net

 
101,299

 
156,590

 

 
257,889

Rig materials and supplies

 
3,002

 
38,779

 

 
41,781

Deferred costs

 

 
13,682

 

 
13,682

Deferred income taxes
(57
)
 
8,435

 
1,562

 

 
9,940

Other tax assets
54,524

 
(46,770
)
 
16,325

 

 
24,079

Other current assets

 
9,089

 
14,134

 

 
23,223

Total current assets
143,164

 
83,365

 
292,754

 

 
519,283

Property, plant and equipment, net
60

 
562,148

 
309,148

 

 
871,356

Investment in subsidiaries and intercompany advances
1,906,128

 
(336,570
)
 
1,667,937

 
(3,237,495
)
 

Other noncurrent assets
(457,954
)
 
468,864

 
250,983

 
(117,776
)
 
144,117

Total assets
$
1,591,398

 
$
777,807

 
$
2,520,822

 
$
(3,355,271
)
 
$
1,534,756

LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
Current portion of long-term debt
$
25,000

 
$

 
$

 
$

 
$
25,000

Accounts payable and accrued liabilities
75,268

 
92,546

 
261,436

 
(254,364
)
 
174,886

Accrued income taxes

 
725

 
6,541

 

 
7,266

Total current liabilities
100,268

 
93,271

 
267,977

 
(254,364
)
 
207,152

Long-term debt
628,781

 

 

 

 
628,781

Other long-term liabilities
5,037

 
6,743

 
15,134

 

 
26,914

Long-term deferred tax liability

 
51,747

 
(12,980
)
 

 
38,767

Intercompany payables
227,504

 
291,783

 
422,645

 
(941,932
)
 

Total liabilities
961,590

 
443,544

 
692,776

 
(1,196,296
)
 
901,614

Total equity
629,808

 
334,263

 
1,828,046

 
(2,158,975
)
 
633,142

Total liabilities and stockholders’ equity
$
1,591,398

 
$
777,807

 
$
2,520,822

 
$
(3,355,271
)
 
$
1,534,756

PARKER DRILLING COMPANY AND SUBSIDIARIES
CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS
(Dollars in Thousands)
(Unaudited)

 
Three months ended September 30, 2014
 
Parent
 
Guarantor
 
Non-Guarantor
 
Eliminations
 
Consolidated
 
 
 
 
 
 
 
 
 
 
Total revenues

 
$
129,935

 
$
156,495

 
$
(44,418
)
 
$
242,012

Operating expenses

 
65,369

 
139,846

 
(44,418
)
 
160,797

Depreciation and amortization

 
22,168

 
13,981

 

 
36,149

Total operating gross margin

 
42,398

 
2,668

 

 
45,066

General and administration expense (1)
110

 
(8,988
)
 
(492
)
 

 
(9,370
)
Gain (loss) on disposition of assets, net

 
91

 
(548
)
 

 
(457
)
Total operating income
110

 
33,501

 
1,628

 

 
35,239

Other income and (expense):
 
 
 
 
 
 
 
 
 
Interest expense
(11,529
)
 
(35
)
 
(1,943
)
 
2,659

 
(10,848
)
Interest income
98

 
176

 
2,421

 
(2,659
)
 
36

Other

 
675

 
(1,211
)
 

 
(536
)
Equity in net earnings of subsidiaries
19,442

 

 

 
(19,442
)
 

Total other income (expense)
8,011

 
816

 
(733
)
 
(19,442
)
 
(11,348
)
Income (benefit) before income taxes
8,121

 
34,317

 
895

 
(19,442
)
 
23,891

Total income tax expense (benefit)
(4,445
)
 
14,337

 
1,122

 

 
11,014

Net income (loss)
12,566

 
19,980

 
(227
)
 
(19,442
)
 
12,877

Less: Net income attributable to noncontrolling interest

 

 
311

 

 
311

Net income (loss) attributable to controlling interest
$
12,566

 
$
19,980

 
$
(538
)
 
$
(19,442
)
 
$
12,566


(1) General and administration expenses for field operations are included in operating expenses.


PARKER DRILLING COMPANY AND SUBSIDIARIES
CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS
(Dollars in Thousands)
(Unaudited)

 
Three Months Ended September 30, 2013
 
Parent
 
Guarantor
 
Non-Guarantor
 
Eliminations
 
Consolidated
 
 
 
 
 
 
 
 
 
 
Total revenues
$

 
$
119,223

 
$
170,609

 
$
(52,070
)
 
$
237,762

Operating expenses

 
64,297

 
140,920

 
(52,070
)
 
153,147

Depreciation and amortization

 
19,956

 
15,926

 

 
35,882

Total operating gross margin

 
34,970

 
13,763

 

 
48,733

General and administration expense (1)
(47
)
 
(14,103
)
 
(88
)
 

 
(14,238
)
Gain (loss) on disposition of assets, net

 
(34
)
 
1,128

 

 
1,094

Total operating income (loss)
(47
)
 
20,833

 
14,803

 

 
35,589

Other income and (expense):
 
 
 
 
 
 
 
 
 
Interest expense
(14,035
)
 
(107
)
 
(2,198
)
 
3,213

 
(13,127
)
Interest income
360

 
250

 
2,733

 
(3,213
)
 
130

Loss on extinguishment of debt
(5,218
)
 

 

 

 
(5,218
)
Other
(1
)
 
64

 
(207
)
 

 
(144
)
Equity in net earnings of subsidiaries
22,322

 

 

 
(22,322
)
 

Total other income (expense)
3,428

 
207

 
328

 
(22,322
)
 
(18,359
)
Income (loss) before income taxes
3,381

 
21,040

 
15,131

 
(22,322
)
 
17,230

Income tax expense (benefit)
(4,589
)
 
10,223

 
3,478

 

 
9,112

Net income (loss)
7,970

 
10,817

 
11,653

 
(22,322
)
 
8,118

Less: Net income attributable to noncontrolling interest

 

 
148

 

 
148

Net income (loss) attributable to controlling interest
$
7,970

 
$
10,817

 
$
11,505

 
$
(22,322
)
 
$
7,970


(1) General and administration expenses for field operations are included in operating expenses.





















PARKER DRILLING COMPANY AND SUBSIDIARIES
CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS
(Dollars in Thousands)
(Unaudited)

 
Nine Months Ended September 30, 2014
 
Parent
 
Guarantor
 
Non-Guarantor
 
Eliminations
 
Consolidated
 
 
 
 
 
 
 
 
 
 
Total revenues
$

 
396,536

 
461,460

 
(132,525
)
 
$
725,471

Operating expenses

 
222,846

 
411,070

 
(132,525
)
 
501,391

Depreciation and amortization

 
63,343

 
43,323

 

 
106,666

Total operating gross margin

 
110,347

 
7,067

 

 
117,414

General and administration expense (1)
(195
)
 
(23,806
)
 
(1,340
)
 

 
(25,341
)
Gain (loss) on disposition of assets, net
(79
)
 
522

 
(10
)
 

 
433

Total operating income (loss)
(274
)
 
87,063

 
5,717

 

 
92,506

Other income and (expense):
 
 
 
 
 
 
 
 
 
Interest expense
(35,542
)
 
(120
)
 
(6,356
)
 
8,532

 
(33,486
)
Interest income
632

 
553

 
7,503

 
(8,532
)
 
156

Loss on extinguishment of debt
(30,152
)
 

 

 

 
(30,152
)
Other

 
860

 
531

 

 
1,391

Equity in net earnings of subsidiaries
50,591

 

 

 
(50,591
)
 

Total other income (expense)
(14,471
)
 
1,293

 
1,678

 
(50,591
)
 
(62,091
)
Income (loss) before income taxes
(14,745
)
 
88,356

 
7,395

 
(50,591
)
 
30,415

Total Income tax expense (benefit)
(30,443
)
 
34,187

 
10,349

 

 
14,093

Net income (loss)
15,698

 
54,169

 
(2,954
)
 
(50,591
)
 
16,322

Less: Net income attributable to noncontrolling interest

 

 
624

 

 
624

Net income (loss) attributable to controlling interest
$
15,698

 
$
54,169

 
$
(3,578
)
 
$
(50,591
)
 
$
15,698


(1) General and administration expenses for field operations are included in operating expenses.





















PARKER DRILLING COMPANY AND SUBSIDIARIES
CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS
(Dollars in Thousands)
(Unaudited)

 
Nine Months Ended September 30, 2013
 
Parent
 
Guarantor
 
Non-Guarantor
 
Eliminations
 
Consolidated
 
 
 
 
 
 
 
 
 
 
Total revenues
$

 
$
345,367

 
$
388,912

 
$
(103,428
)
 
$
630,851

Operating expenses

 
186,708

 
330,014

 
(103,428
)
 
413,294

Depreciation and amortization

 
57,335

 
40,339

 

 
97,674

Total operating gross margin

 
101,324

 
18,559

 

 
119,883

General and administration expense (1)
(140
)
 
(48,861
)
 
(285
)
 

 
(49,286
)
Gain on disposition of assets, net

 
1,917

 
842

 

 
2,759

Total operating income (loss)
(140
)
 
54,380

 
19,116

 

 
73,356

Other income and (expense):
 
 
 
 
 
 
 
 
 
Interest expense
(36,734
)
 
(167
)
 
(9,494
)
 
12,521

 
(33,874
)
Interest income
3,366

 
1,584

 
9,963

 
(12,521
)
 
2,392

Loss on extinguishment of debt
(5,218
)
 

 

 

 
(5,218
)
Changes in fair value of derivative positions
54

 

 

 

 
54

Other

 
(192
)
 
(613
)
 

 
(805
)
Equity in net earnings of subsidiaries
36,330

 

 

 
(36,330
)
 

Total other income (expense)
(2,202
)
 
1,225

 
(144
)
 
(36,330
)
 
(37,451
)
Income (loss) before income taxes
(2,342
)
 
55,605

 
18,972

 
(36,330
)
 
35,905

Income tax expense (benefit)
(19,185
)
 
27,993

 
10,033

 

 
18,841

Net income (loss)
16,843

 
27,612

 
8,939

 
(36,330
)
 
17,064

Less: Net income attributable to noncontrolling interest

 

 
221

 

 
221

Net income (loss) attributable to controlling interest
$
16,843

 
$
27,612

 
$
8,718

 
$
(36,330
)
 
$
16,843


(1) General and administration expenses for field operations are included in operating expenses.
PARKER DRILLING COMPANY AND SUBSIDIARIES
CONSOLIDATING CONDENSED STATEMENT OF COMPREHENSIVE INCOME (LOSS)
(Dollars in Thousands)
(Unaudited)

 
Three Months Ended September 30, 2014
 
Parent
 
Guarantor
 
Non-Guarantor
 
Eliminations
 
Consolidated
Comprehensive income:
 
 
 
 
 
 
 
 
 
Net income (loss)
$
12,566

 
$
19,980

 
$
(227
)
 
$
(19,442
)
 
$
12,877

Other comprehensive income (loss), net of tax:

 

 

 

 

Currency translation difference on related borrowings

 

 
(1,780
)
 

 
(1,780
)
Currency translation difference on foreign currency net investments

 

 
615

 

 
615

Total other comprehensive income (loss), net of tax:

 

 
(1,165
)
 

 
(1,165
)
Comprehensive income (loss)
12,566

 
19,980

 
(1,392
)
 
(19,442
)
 
11,712

Comprehensive (income) attributable to noncontrolling interest

 

 
(289
)
 

 
(289
)
Comprehensive income (loss) attributable to controlling interest
$
12,566

 
$
19,980

 
$
(1,681
)
 
$
(19,442
)
 
$
11,423



PARKER DRILLING COMPANY AND SUBSIDIARIES
CONSOLIDATING CONDENSED STATEMENT OF COMPREHENSIVE INCOME (LOSS)
(Dollars in Thousands)
(Unaudited)

 
Three Months Ended September 30, 2013
 
Parent
 
Guarantor
 
Non-Guarantor
 
Eliminations
 
Consolidated
Comprehensive income:
 
 
 
 
 
 
 
 
 
Net income (loss)
$
7,970

 
$
10,817

 
$
11,653

 
$
(22,322
)
 
$
8,118

Other comprehensive income (loss), net of tax:

 

 

 

 

Currency translation difference on related borrowings

 

 
(577
)
 

 
(577
)
Currency translation difference on foreign currency net investments

 

 
2,098

 

 
$
2,098

Total other comprehensive income (loss), net of tax:

 

 
1,521

 

 
1,521

Comprehensive income (loss)
7,970

 
10,817

 
13,174

 
(22,322
)
 
9,639

Comprehensive (income) attributable to noncontrolling interest

 

 
(53
)
 

 
(53
)
Comprehensive income (loss) attributable to controlling interest
$
7,970

 
$
10,817

 
$
13,121

 
$
(22,322
)
 
$
9,586



PARKER DRILLING COMPANY AND SUBSIDIARIES
CONSOLIDATING CONDENSED STATEMENT OF COMPREHENSIVE INCOME (LOSS)
(Dollars in Thousands)
(Unaudited)

 
Nine Months Ended September 30, 2014
 
Parent
 
Guarantor
 
Non-Guarantor
 
Eliminations
 
Consolidated
Comprehensive income:
 
 
 
 
 
 
 
 
 
Net income (loss)
$
15,698

 
$
54,169

 
$
(2,954
)
 
$
(50,591
)
 
$
16,322

Other comprehensive income (loss), net of tax:
 
 
 
 
 
 
 
 
 
Currency translation difference on related borrowings

 

 
(2,248
)
 

 
(2,248
)
Currency translation difference on foreign currency net investments

 

 
1,126

 

 
1,126

Total other comprehensive income (loss), net of tax:

 

 
(1,122
)
 

 
(1,122
)
Comprehensive income
15,698

 
54,169

 
(4,076
)
 
(50,591
)
 
15,200

Comprehensive (income) attributable to noncontrolling interest

 

 
(523
)
 

 
(523
)
Comprehensive income attributable to controlling interest
$
15,698

 
$
54,169

 
$
(4,599
)
 
$
(50,591
)
 
$
14,677



PARKER DRILLING COMPANY AND SUBSIDIARIES
CONSOLIDATING CONDENSED STATEMENT OF COMPREHENSIVE INCOME (LOSS)
(Dollars in Thousands)
(Unaudited)

 
Nine Months Ended September 30, 2013
 
Parent
 
Guarantor
 
Non-Guarantor
 
Eliminations
 
Consolidated
Comprehensive income:
 
 
 
 
 
 
 
 
 
Net income (loss)
$
16,843

 
$
27,612

 
$
8,939

 
$
(36,330
)
 
$
17,064

Other comprehensive income (loss), net of tax:
 
 
 
 
 
 
 
 
 
Currency translation difference on related borrowings

 

 
(1,542
)
 

 
(1,542
)
Currency translation difference on foreign currency net investments

 

 
2,499

 

 
2,499

Total other comprehensive income (loss), net of tax:

 

 
957

 

 
957

Comprehensive income
16,843

 
27,612

 
9,896

 
(36,330
)
 
18,021

Comprehensive (income) attributable to noncontrolling interest

 

 
(83
)
 

 
(83
)
Comprehensive income attributable to controlling interest
$
16,843

 
$
27,612

 
$
9,813

 
$
(36,330
)
 
$
17,938

PARKER DRILLING COMPANY AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
(Unaudited)
 
 
Nine Months Ended September 30, 2014
 
Parent
 
Guarantor
 
Non-Guarantor
 
Eliminations
 
Consolidated
Cash flows from operating activities:
 
 
 
 
 
 
 
 
 
Net income (loss)
$
15,698

 
$
54,169

 
$
(2,954
)
 
$
(50,591
)
 
$
16,322

Adjustments to reconcile net income (loss):

 

 

 

 

Depreciation and amortization

 
63,343

 
43,323

 

 
106,666

Loss on extinguishment of debt
30,152

 

 

 

 
30,152

Gain on disposition of assets
79

 
(522
)
 
10

 

 
(433
)
Deferred income tax expense
(15,774
)
 
12,525

 
3,322

 

 
73

Expenses not requiring cash
9,940

 
(1,538
)
 
1,739

 

 
10,141

Equity in net earnings of subsidiaries
(50,591
)
 

 

 
50,591

 

Change in accounts receivable

 
(1,715
)
 
(3,473
)
 

 
(5,188
)
Change in other assets
43,412

 
(58,441
)
 
22,583

 

 
7,554

Change in accrued income taxes
(13,232
)
 
11,764

 
(8,929
)
 

 
(10,397
)
Change in liabilities
(8,213
)
 
(9,395
)
 
7,069

 

 
(10,539
)
Net cash provided by operating activities
11,471

 
70,190

 
62,690

 

 
144,351

 
 
 
 
 
 
 
 
 
 
Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
Capital expenditures

 
(107,137
)
 
(43,972
)
 

 
(151,109
)
Proceeds from the sale of assets

 
1,088

 
1,206

 

 
2,294

Acquisition of ITS, net of cash acquired

 

 

 

 

Net cash (used in) investing activities

 
(106,049
)
 
(42,766
)
 

 
(148,815
)
 
 
 
 
 
 
 
 
 
 
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
Proceeds from debt issuance
400,000

 

 

 

 
400,000

Repayments of long term debt
(425,000
)
 

 

 

 
(425,000
)
Paydown on term note
(7,500
)
 

 

 

 
(7,500
)
Payment of debt issuance costs
(7,630
)
 

 

 

 
(7,630
)
Payment of debt extinguishment costs
(26,214
)
 

 

 

 
(26,214
)
Excess tax benefit from stock-based compensation
430

 

 

 

 
430

Intercompany advances, net
(10,677
)
 
40,064

 
(29,387
)
 

 

Net cash provided by (used in) financing activities
(76,591
)
 
40,064

 
(29,387
)
 

 
(65,914
)
 
 
 
 
 
 
 
 
 
 
Net change in cash and cash equivalents
(65,120
)
 
4,205

 
(9,463
)
 

 
(70,378
)
Cash and cash equivalents at beginning of year
88,697

 
8,310

 
51,682

 

 
148,689

Cash and cash equivalents at end of year
$
23,577

 
$
12,515

 
$
42,219

 
$

 
$
78,311





PARKER DRILLING COMPANY AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
(Unaudited)
 
Nine Months Ended September 30, 2013
 
Parent
 
Guarantor
 
Non-Guarantor
 
Eliminations
 
Consolidated
Cash flows from operating activities:
 
 
 
 
 
 
 
 
 
Net income (loss)
$
16,843

 
$
27,612

 
$
8,939

 
$
(36,330
)
 
$
17,064

Adjustments to reconcile net income (loss)
 
 
 
 
 
 
 
 
 
Depreciation and amortization

 
57,335

 
40,339

 

 
97,674

Loss on extinguishment of debt
5,218

 

 

 

 
5,218

Gain on disposition of assets

 
(1,917
)
 
(842
)
 

 
(2,759
)
Deferred income tax expense
(2,860
)
 
10,479

 
5,253

 

 
12,872

Expenses not requiring cash
10,494

 
591

 
(1,157
)
 

 
9,928

Equity in net earnings of subsidiaries
(36,330
)
 

 

 
36,330

 

Change in accounts receivable
(899
)
 
(7,951
)
 
(19,755
)
 

 
(28,605
)
Change in other assets
3,045

 
4,580

 
(8,971
)
 

 
(1,346
)
Change in accrued income taxes
358

 
(85
)
 
2,604

 

 
2,877

Change in liabilities
14,222

 
(2,116
)
 
306

 

 
12,412

Net cash provided by operating activities
10,091

 
88,528

 
26,716

 

 
125,335

 
 
 
 
 
 
 
 
 
 
Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
Capital expenditures

 
(66,956
)
 
(35,900
)
 

 
(102,856
)
Proceeds from the sale of assets

 
2,751

 
2,782

 

 
5,533

Acquisition of ITS, net of cash acquired

 
(292
)
 
(117,699
)
 

 
(117,991
)
Net cash (used in) investing activities

 
(64,497
)
 
(150,817
)
 

 
(215,314
)
 
 
 
 
 
 
 
 
 
 
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
Proceeds from debt issuance
350,000

 

 

 

 
350,000

Repayments of long term debt
(125,000
)
 

 

 

 
(125,000
)
Paydown on term note
(50,000
)
 

 

 

 
(50,000
)
Payment of debt issuance costs
(10,981
)
 

 

 

 
(10,981
)
Payment of debt extinguishment costs

 

 

 

 

Excess tax benefit from stock-based compensation
531

 

 

 

 
531

Intercompany advances, net
(127,376
)
 
(13,781
)
 
141,157

 

 

Net cash provided by (used in) financing activities
37,174

 
(13,781
)
 
141,157

 

 
164,550

 
 
 
 
 
 
 
 
 
 
Net change in cash and cash equivalents
47,265

 
10,250

 
17,056

 

 
74,571

Cash and cash equivalents at beginning of year
42,251

 
11,023

 
34,612

 

 
87,886

Cash and cash equivalents at end of year
$
89,516

 
$
21,273

 
$
51,668

 
$

 
$
162,457