Restricted Net Assets and Parent Company Condensed Financial Information

12 Months Ended

Dec. 31, 2015

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 For the Year Ended
	December 31,
	2015		2014		2013
Equity in earnings of Hawaiian Telcom Communications, Inc.	$	1,100	$	8,099	$	10,488
Income tax expense		—		—		—
Net income		1,100		8,099		10,488
Other comprehensive income (loss), net of tax		(5,441)		(19,231)		23,734
Comprehensive income (loss)	$	(4,341)	$	(11,132)	$	34,222

Hawaiian Telcom Holdco, Inc.

(Parent Company Only)

Condensed Balance Sheets

(Dollars in Thousands)

	December 31,
	2015		2014
Assets
Investment in Hawaiian Telcom Communications, Inc.	$	307,699	$	304,534
Total assets	$	307,699	$	304,534
Stockholders’ Equity
Common stock, par value $0.01 per share, 245,000,000 shares authorized and 11,466,398 and 10,673,292 shares issued and outstanding	$	115	$	107
Additional paid-in capital		178,019		170,521
Accumulated other comprehensive loss		(29,388)		(23,947)
Retained earnings		158,953		157,853
Total stockholders’ equity	$	307,699	$	304,534

Hawaiian Telcom Holdco, Inc.

(Parent Company Only)

Condensed Statements of Cash Flows

(Dollars in Thousands)

	For the For the Year Ended
	December 31,
	2015		2014		2013
Net income	$	1,100	$	8,099	$	10,488
Undistributed earnings of Hawaiian Telcom Communications, Inc.		(1,100)		(8,099)		(10,488)
Net cash provided by operating activities, net change in cash and ending balance of cash	$	—	$	—	$	—