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Leverage And Liquidity
6 Months Ended
Jun. 30, 2015
Leverage And Liquidity [Abstract]  
Leverage And Liquidity

2.  Leverage and Liquidity

  

The Company is highly leveraged. As of June 30, 2015, the Company had approximately $1.0 billion of long-term debt outstanding.  The Company has experienced and continues to experience losses from its operations. The Company reported a net loss of approximately $349.3 million, $78.2 million and $151.1 million for the years ended December 31, 2014, 2013 and 2012, respectively, and $75.4 million and $233.8  million for the six month periods ended June 30, 2015 and 2014, respectively.

 

The Company’s high level of debt could have material adverse effects on its business and financial condition. Specifically, the Company’s high level of debt could have important consequences, including the following:

 

making it more difficult for the Company to satisfy its obligations with respect to debt;

 

limiting the Company’s ability to obtain additional financing to fund future working capital, capital expenditures, acquisitions or other general corporate requirements;

 

requiring a substantial portion of the Company’s cash flows to be dedicated to debt service payments instead of other purposes;

 

increasing the Company’s vulnerability to general adverse economic and industry conditions;

 

limiting the Company’s flexibility in planning for and reacting to changes in the industry in which the Company competes;

 

placing the Company at a disadvantage compared to other, less leveraged competitors; and

 

increasing the Company’s cost of borrowing.

As discussed in Note 15, the Company is involved in disputes, litigation, and regulatory matters incidental to its operations, including governmental investigations and other matters arising out of the normal conduct of business.  The resolution of these matters could have a material adverse effect on the Company’s business and financial position.

At June 30, 2015, the Company had $62 million of unrestricted cash and $122 million of availability under its revolver. The Company believes that it has sufficient liquidity to fund operations for the next year.