Restricted Net Assets and Parent Company Condensed Financial Information

12 Months Ended

Dec. 31, 2014

Restricted Net Assets and Parent Company Condensed Financial Information

Restricted Net Assets and Parent Company Condensed Financial Information

19. Restricted Net Assets and Parent Company Condensed Financial Information

        Agreements with the HPUC and the debt agreements of Hawaiian Telcom Communications, Inc. limit the ability of the Company's subsidiaries to pay dividends to the parent company and restrict the net assets of all of the Company's subsidiaries.

        The following condensed financial information for Hawaiian Telcom Holdco, Inc. reflects parent company financial information only. Such financial information should be read in conjunction with the consolidated financial statements of the Company.

        The parent company has accounted for its investment in its consolidated subsidiary on the equity method of accounting. No dividends were paid by the subsidiaries to the parent company at any time during the existence of the parent company.

Hawaiian Telcom Holdco, Inc.
(Parent Company Only)
Condensed Statements of Income and Comprehensive Income (Loss)
(Dollars in Thousands)

	For the Year Ended December 31,
	2014			2013		2012
Equity in earnings of Hawaiian Telcom Communications, Inc.	$	8,099		$	10,488	$	109,982
Income tax expense		—			—		—
Net income		8,099			10,488		109,982
Other comprehensive income (loss), net of tax		(19,231	)		23,734		29,068
Comprehensive income (loss)	$	(11,132	)	$	34,222	$	139,050

Hawaiian Telcom Holdco, Inc.
(Parent Company Only)
Condensed Balance Sheets
(Dollars in Thousands)

	December 31, 2014			December 31, 2013
Assets
Investment in Hawaiian Telcom
Communications, Inc.	$	304,534		$	313,012
Total assets	$	304,534		$	313,012
Stockholders' Equity
Common stock, par value $0.01 per share, 245,000,000 shares authorized and 10,673,292 and 10,495,856 shares issued and outstanding	$	107		$	105
Additional paid-in capital		170,521			167,869
Accumulated other comprehensive loss		(23,947	)		(4,716	)
Retained earnings		157,853			149,754
Total stockholders' equity	$	304,534		$	313,012

Hawaiian Telcom Holdco, Inc.
(Parent Company Only)
Condensed Statements of Cash Flows
(Dollars in Thousands)

	For the Year Ended December 31,
	2014			2013			2012
Net income	$	8,099		$	10,488		$	109,982
Undistributed earnings of Hawaiian Telcom Communications, Inc.		(8,099	)		(10,488	)		(109,982	)
Net cash provided by operating activities,net change in cash and ending balance of cash	$	—		$	—		$	—