Restricted Net Assets and Parent Company Condensed Financial Information

12 Months Ended

Dec. 31, 2017

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 (Loss) and Comprehensive Income (Loss)

(Dollars in Thousands)

	For the For the Year Ended
	December 31,
	2017		2016		2015
Equity in earnings (loss) of Hawaiian Telcom Communications, Inc.	$	(107,241)	$	1,106	$	1,100
Income tax provision		—		—		—
Net income (loss)		(107,241)		1,106		1,100
Other comprehensive income (loss), net of tax		19,254		(5,830)		(5,441)
Comprehensive loss	$	(87,987)	$	(4,724)	$	(4,341)

Hawaiian Telcom Holdco, Inc.

(Parent Company Only)

Condensed Balance Sheets

(Dollars in Thousands)

	December 31,
	2017		2016
Assets
Investment in Hawaiian Telcom Communications, Inc.	$	220,209	$	304,914
Total assets	$	220,209	$	304,914
Stockholders’ Equity
Common stock, par value of $0.01 per share, 245,000,000 shares authorized and 11,587,963 and 11,513,279 shares issued and outstanding at December 31, 2017 and 2016, respectively	$	116	$	115
Additional paid-in capital		182,689		179,958
Accumulated other comprehensive loss		(15,964)		(35,218)
Retained earnings		53,368		160,059
Total stockholders’ equity	$	220,209	$	304,914

Hawaiian Telcom Holdco, Inc.

(Parent Company Only)

Condensed Statements of Cash Flows

(Dollars in Thousands)

	For the For the Year Ended
	December 31,
	2017		2016		2015
Net income (loss)	$	(107,241)	$	1,106	$	1,100
Undistributed earnings (loss) of Hawaiian Telcom Communications, Inc.		107,241		(1,106)		(1,100)
Net cash provided by operating activities, net change in cash and ending balance of cash	$	—	$	—	$	—