SYNIVERSE HOLDINGS INC

CIK:0001169264|SEC Filings

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Income Statement [Abstract]
Revenues	$ 202,700	$ 207,009	$ 582,199	$ 587,364
Costs and expenses:
Cost of operations (excluding depreciation and amortization shown separately below)	90,580	90,483	259,531	265,010
Sales and marketing	18,073	17,295	54,090	54,059
General and administrative	26,389	24,638	85,370	71,876
Depreciation and amortization	37,197	49,834	115,114	145,271
Employee termination benefits	415	457	5,735	609
Restructuring charges	8,294	1,097	8,510	5,126
Total costs and expenses	180,948	183,804	528,350	541,951
Operating income	21,752	23,205	53,849	45,413
Other income (expense), net:
Interest expense, net	(40,855)	(30,959)	(122,348)	(101,041)
Gain (Loss) on Extinguishment of Debt	0	(56)	(4,868)	306
Equity loss in investees	(1,020)	(125)	(1,848)	(639)
Other, net	1,124	(896)	1,876	(2,137)
Total other income (expense), net	(40,751)	(32,036)	(127,188)	(103,511)
Loss before (benefit from) provision for income taxes	(18,999)	(8,831)	(73,339)	(58,098)
(Benefit from) provision for income taxes	(229)	16,125	7,485	6,493
Net loss	(18,770)	(24,956)	(80,824)	(64,591)
Net income attributable to noncontrolling interest	190	809	460	2,199
Net loss attributable to Syniverse Holdings, Inc.	$ (18,960)	$ (25,765)	$ (81,284)	$ (66,790)

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash flows from operating activities
Net loss	$ (80,824)	$ (64,591)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	115,114	145,271
Amortization of original issue discount and deferred financing costs	6,728	9,859
Allowance for credit memos and uncollectible accounts	8,906	8,837
Deferred income tax expense	3,032	5,648
Debt modification costs	9,646	9,780
Gain (Loss) on Extinguishment of Debt	4,868	(306)
Stock-based compensation	12,417	11,209
Other, net	2,958	1,328
Changes in operating assets and liabilities:
Accounts receivable	(10,218)	(11,336)
Income taxes receivable or payable	(3,529)	(2,001)
Prepaid and other current assets	(10,220)	(3,679)
Accounts payable	18,563	(4,539)
Accrued liabilities and deferred revenues	(10,735)	(22,045)
Other assets and other long-term liabilities	(5,534)	3,043
Net cash provided by operating activities	61,172	86,478
Cash flows from investing activities
Capital expenditures	(46,648)	(50,167)
Net cash used in investing activities	(46,648)	(50,167)
Cash flows from financing activities
Proceeds from issuance of long-term debt	1,922,000	0
Principal payments on long-term debt	(1,930,510)	(25,032)
Payments of Debt Issuance Costs	0	(1,143)
Debt modification costs paid	(40,446)	(9,768)
Payments on capital lease and financing obligations	(6,859)	(14,464)
Distribution to Syniverse Corporation	(3,989)	(3,079)
Distribution to noncontrolling interest	(3,588)	(2,311)
Net cash used in financing activities	(63,392)	(55,797)
Effect of exchange rate changes on cash	(2,834)	4,050
Net decrease in cash, cash equivalents and restricted cash	(51,702)	(15,436)
Cash, cash equivalents and restricted cash at beginning of period	128,677	137,690
Cash, cash equivalents and restricted cash at end of period	76,975	122,254
Supplemental noncash investing and financing activities
Assets acquired under capital lease and non-cash financing obligations	9,229	5,929
Supplemental cash flow information
Interest paid	115,516	92,516
Income taxes paid	$ 7,900	$ 2,809

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 75,684	$ 127,677
Accounts receivable, net of allowances of $16,693 and $16,486, respectively	168,331	168,149
Income taxes receivable	4,645	4,134
Prepaid and other current assets	30,607	23,204
Total current assets	279,267	323,164
Property and equipment, net	84,429	93,203
Capitalized software, net	91,018	102,454
Goodwill	2,301,320	2,314,281
Identifiable intangibles, net	215,981	258,986
Deferred tax assets	3,242	3,608
Investment in unconsolidated subsidiaries	45,259	47,258
Other assets	16,901	4,972
Total assets	3,037,417	3,147,926
Current liabilities:
Accounts payable	39,225	20,837
Income taxes payable	2,370	4,784
Accrued liabilities	83,401	89,249
Deferred revenues	8,282	5,997
Current portion of capital lease obligation	5,310	6,410
Current portion of long-term debt, net of original issue discount and deferred financing costs	58,315	2,595
Total current liabilities	196,903	129,872
Long-term liabilities:
Deferred tax liabilities	75,724	73,793
Deferred Revenue, Noncurrent	1,908	2,096
Long-term capital lease obligation, less current portion	1,350	4,340
Long-term debt, net of current portion, original issue discount and deferred financing costs	1,857,550	1,940,613
Other long-term liabilities	38,512	36,805
Total liabilities	2,171,947	2,187,519
Commitments and contingencies (Note 10)
Stockholder equity:
Common stock $0.01 par value; one thousand shares authorized, issued and outstanding as of September 30, 2018 and December 31, 2017	0	0
Additional paid-in capital	1,284,372	1,275,944
Accumulated deficit	(345,031)	(261,615)
Accumulated other comprehensive loss	(79,677)	(63,226)
Total Syniverse Holdings, Inc. stockholder equity	859,664	951,103
Noncontrolling interest	5,806	9,304
Total equity	865,470	960,407
Total liabilities and stockholder equity	$ 3,037,417	$ 3,147,926