EX-99.1 4 exhibit991.htm SELECTED FINANCIAL INFORMATION Exhibit 99.1


Exhibit 99.1

Item 6. Selected Financial Data

The following table summarizes certain selected financial data and should be read in conjunction with our consolidated financial statements and related notes thereto and "Management's Discussion and Analysis of Financial Condition and Results of Operations" included as Exhibit 99.3 and Exhibit 99.2. All amounts disclosed herein relate to our continuing operations unless otherwise stated.

Five-Year Summary of Selected Financial Data
(in thousands, except per share data)
 
 
Successor Company (1)
 
 
Predecessor Company (1)
 
 
Year Ended December 31, 2010
 
For the Period April 24 to December 31, 2009
 
 
For the Period January 1 to April 23, 2009
 
 
 
 
 
 
(In thousands)
 
 
 
 
 
Year Ended December 31,
Consolidated Statements of Operations:
 
 
 
 
 
2008
 
2007
 
2006
Revenue
 
$
196,986

 
$
119,851

 
 
$
63,996

 
$
209,532

 
$
218,939

 
$
246,317

Operating costs
 
187,053

 
111,621

 
 
65,197

 
196,615

 
190,894

 
207,795

Depreciation and amortization
 
5,943

 
6,128

 
 
1,105

 
4,932

 
12,885

 
13,303

Corporate general and administrative
   expenses
 
11,076

 
9,822

 
 
4,092

 
15,001

 
9,809

 
14,618

Goodwill impairment
 

 

 
 

 
126,423

 

 
154,775

Restructuring charges
 
269

 
507

 
 
1,057

 
10,590

 

 

Special charges
 
5,448

 
3,033

 
 
12,699

 
11,624

 
4,626

 
1,579

Operating (loss) income
 
(12,803
)
 
(11,260
)
 
 
(20,154
)
 
(155,653
)
 
725

 
(145,753
)
Interest expense
 
7,624

 
2,726

 
 
1,331

 
10,633

 
17,607

 
19,571

Other expense (income)
 
1,688

 
(5
)
 
 
(295
)
 
(208
)
 
(318
)
 
(926
)
Income tax (benefit) expense
   from continuing operations
 
(7,922
)
 
(10,431
)
 
 
(5,985
)
 
(43,149
)
 
(6,496
)
 
3,144

Net loss from continuing operations
 
$
(14,193
)
 
$
(3,550
)
 
 
$
(15,205
)
 
$
(122,929
)
 
$
(10,068
)
 
$
(167,542
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Successor Company (1)
 
 
 
 
Predecessor Company (1)
 
 
As of December 31,
 
 
 
 
As of December 31,
 
 
2010
 
2009 (1)
 
 
 
 
2008
 
2007
 
2006
Consolidated Balance Sheet Data:
 
 
 
 
 
 
 
 
 
 
 
 
 
Current assets continuing operations
 
$
69,193

 
$
76,785

 
 
 
 
$
80,336

 
$
79,438

 
$
77,988

Working capital continuing operations (2)
 
14,229

 
11,474

 
 
 
 
(231,604
)
 
4,397

 
3,099

Total assets continuing operations
 
146,395

 
156,113

 
 
 
 
113,440

 
174,273

 
249,905

Total assets
 
288,274

 
307,318

 
 
 
 
205,088

 
669,757

 
696,701

Long-term debt (2)
 
136,407

 
122,262

 
 
 
 

 
345,244

 
366,860

Due to Gores
 
10,222

 
11,165

 
 
 
 

 

 

Total stockholders' (deficit) equity
 
(5,992
)
 
17,984

 
 
 
 
(203,145
)
 
227,631

 
202,931


(1)
As a result of the Refinancing, we adopted the acquisition method of accounting effective April 23, 2009. Accordingly, we have revalued our assets and liabilities using our best estimate of current fair value. Our consolidated financial statements which present periods prior to the closing of the Refinancing reflect the historical accounting basis in our assets and liabilities and are labeled Predecessor Company, while the periods subsequent to the Refinancing are labeled Successor Company and reflect the push down basis of accounting for the fair values which were allocated to our segments based on the business enterprise value of each segment. Deferred tax liabilities have been recorded as a part of acquisition accounting to reflect the future taxable income to be recognized relating to the cancellation of indebtedness income as well as the deferred tax liability related to the acquisition accounting.

(2)
On November 30, 2008, we failed to make the interest payment on our outstanding indebtedness which constituted an event of default under the credit agreements that pertain to the long-term debt outstanding at that time. Accordingly, $249,053 of debt previously considered long-term was then re-classified as short-term debt, which decreased our long-term debt and decreased our working capital.

1