Restricted Net Assets and Parent Company Condensed Financial Information

12 Months Ended

Dec. 31, 2016

Restricted Net Assets and Parent Company Condensed Financial Information

Restricted Net Assets and Parent Company Condensed Financial Information

18. 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,
	2016		2015		2014
Equity in earnings of Hawaiian Telcom Communications, Inc.	$	1,106	$	1,100	$	8,099
Income tax expense		—		—		—
Net income		1,106		1,100		8,099
Other comprehensive loss, net of tax		(5,830)		(5,441)		(19,231)
Comprehensive loss	$	(4,724)	$	(4,341)	$	(11,132)

Hawaiian Telcom Holdco, Inc.

(Parent Company Only)

Condensed Balance Sheets

(Dollars in Thousands)

	December 31,
	2016		2015
Assets
Investment in Hawaiian Telcom Communications, Inc.	$	304,914	$	307,699
Total assets	$	304,914	$	307,699
Stockholders’ Equity
Common stock, par value $0.01 per share, 245,000,000 shares authorized and 11,513,279 and 11,466,398 shares issued and outstanding	$	115	$	115
Additional paid-in capital		179,958		178,019
Accumulated other comprehensive loss		(35,218)		(29,388)
Retained earnings		160,059		158,953
Total stockholders’ equity	$	304,914	$	307,699

Hawaiian Telcom Holdco, Inc.

(Parent Company Only)

Condensed Statements of Cash Flows

(Dollars in Thousands)

	For the For the Year Ended
	December 31,
	2016		2015		2014
Net income	$	1,106	$	1,100	$	8,099
Undistributed earnings of Hawaiian Telcom Communications, Inc.		(1,106)		(1,100)		(8,099)
Net cash provided by operating activities, net change in cash and ending balance of cash	$	—	$	—	$	—