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70 S 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

(Mark One)

x

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2016

OR

¨

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                     

Commission File Number: 1-13395

 

SONIC AUTOMOTIVE, INC.

(Exact name of registrant as specified in its charter)

 

 

Delaware

 

56-2010790

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer

Identification No.)

 

4401 Colwick Road

Charlotte, North Carolina

 

28211

(Address of principal executive offices)

 

(Zip Code)

(704) 566-2400

(Registrant’s telephone number, including area code)

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

x

  

Accelerated filer

 

¨

 

 

 

 

Non-accelerated filer

 

¨  (Do not check if a smaller reporting company)

  

Smaller reporting company

 

¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  x

As of July 19, 2016, there were 33,418,455 shares of Class A common stock and 12,029,375 shares of Class B common stock outstanding.

 

 

 

 

 

 


 

Uncertainty of Forward-Looking Statements and Information

This Quarterly Report on Form 10-Q contains, and written or oral statements made from time to time by us or by our authorized officers may contain, “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements address our future objectives, plans and goals, as well as our intent, beliefs and current expectations regarding future operating performance, results and events, and can generally be identified by words such as “may,” “will,” “should,” “believe,” “expect,” “estimate,” “anticipate,” “intend,” “plan,” “foresee” and other similar words or phrases.

These forward-looking statements are based on our current estimates and assumptions and involve various risks and uncertainties. As a result, you are cautioned that these forward-looking statements are not guarantees of future performance, and that actual results could differ materially from those projected in these forward-looking statements. Factors which may cause actual results to differ materially from our projections include those risks described in “Item 1A: Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2015 and elsewhere in this report, as well as:

 

·

the number of new and used vehicles sold in the United States as compared to our expectations and the expectations of the market;

 

·

our ability to generate sufficient cash flows or obtain additional financing to fund our EchoPark® expansion, our One Sonic-One Experience initiative, capital expenditures, our share repurchase program, dividends on our common stock, acquisitions and general operating activities;

 

·

our business and growth strategies, including, but not limited to, our EchoPark® initiative and our One Sonic-One Experience initiative;

 

·

the reputation and financial condition of vehicle manufacturers whose brands we represent, the financial incentives vehicle manufacturers offer and their ability to design, manufacture, deliver and market their vehicles successfully;

 

·

our relationships with manufacturers, which may affect our ability to obtain desirable new vehicle models in inventory or complete additional acquisitions;

 

·

adverse resolution of one or more significant legal proceedings against us or our dealerships or EchoPark® stores;

 

·

changes in laws and regulations governing the operation of automobile franchises, accounting standards, taxation requirements and environmental laws;

 

·

general economic conditions in the markets in which we operate, including fluctuations in interest rates, employment levels, the level of consumer spending and consumer credit availability;

 

·

high competition in the automotive retailing industry, which not only creates pricing pressures on the products and services we offer, but also on businesses we may seek to acquire;

 

·

our ability to successfully integrate potential future acquisitions; and

 

·

the rate and timing of overall economic recovery or decline.

These forward-looking statements speak only as of the date of this report or when made, and we undertake no obligation to revise or update these statements to reflect subsequent events or circumstances, except as required under the federal securities laws and the rules and regulations of the Securities and Exchange Commission.

 

 


 

 

 

 

SONIC AUTOMOTIVE, INC.

FORM 10-Q

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2016

INDEX

 

 

  

Page

 

 

 

 

 

 

PART I – FINANCIAL INFORMATION

  

 

1

  

 

 

 

Item 1.

  

Financial Statements (unaudited)

  

 

1

  

 

 

 

 

  

Condensed Consolidated Statements of Income

  

 

1

  

 

 

 

 

  

Condensed Consolidated Statements of Comprehensive Income

  

 

2

  

 

 

 

 

  

Condensed Consolidated Balance Sheets

  

 

3

  

 

 

 

 

  

Condensed Consolidated Statement of Stockholders’ Equity

  

 

4

  

 

 

 

 

  

Condensed Consolidated Statements of Cash Flows

  

 

5

  

 

 

 

 

  

Notes to Condensed Consolidated Financial Statements

  

 

6

 

 

 

 

Item 2.

  

Management’s Discussion and Analysis of Financial Condition and Results of Operations

  

 

18

  

 

 

 

Item 3.

  

Quantitative and Qualitative Disclosures About Market Risk

  

 

43

  

 

 

 

Item 4.

  

Controls and Procedures

  

 

45

  

 

 

PART II – OTHER INFORMATION

  

 

46

  

 

 

 

Item 1.

  

Legal Proceedings

  

 

46

  

 

 

 

 

 

 

 

Item 1A.

 

Risk Factors

 

 

47

 

 

 

 

Item 2.

  

Unregistered Sales of Equity Securities and Use of Proceeds

  

 

48

  

 

 

 

Item 6.

  

Exhibits

  

 

49

  

 

 

Signatures

  

 

50

  

 

 

Exhibit Index

  

 

51

  

 

 

 

 

 


 

PART I FINANCIAL INFORMATION

 

Item 1. Financial Statements.

SONIC AUTOMOTIVE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2016

 

 

2015

 

 

2016

 

 

2015

 

 

 

(Dollars and shares in thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

New vehicles

 

$

1,286,464

 

 

$

1,295,288

 

 

$

2,451,034

 

 

$

2,497,610

 

Used vehicles

 

 

622,186

 

 

 

658,794

 

 

 

1,220,540

 

 

 

1,252,536

 

Wholesale vehicles

 

 

38,245

 

 

 

41,131

 

 

 

82,620

 

 

 

82,789

 

Total vehicles

 

 

1,946,895

 

 

 

1,995,213

 

 

 

3,754,194

 

 

 

3,832,935

 

Parts, service and collision repair

 

 

351,329

 

 

 

346,164

 

 

 

697,384

 

 

 

669,358

 

Finance, insurance and other, net

 

 

84,088

 

 

 

82,363

 

 

 

165,361

 

 

 

156,963

 

Total revenues

 

 

2,382,312

 

 

 

2,423,740

 

 

 

4,616,939

 

 

 

4,659,256

 

Cost of Sales:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

New vehicles

 

 

(1,220,598

)

 

 

(1,230,352

)

 

 

(2,326,744

)

 

 

(2,369,325

)

Used vehicles

 

 

(585,217

)

 

 

(618,098

)

 

 

(1,143,041

)

 

 

(1,170,996

)

Wholesale vehicles

 

 

(40,084

)

 

 

(43,807

)

 

 

(85,537

)

 

 

(85,673

)

Total vehicles

 

 

(1,845,899

)

 

 

(1,892,257

)

 

 

(3,555,322

)

 

 

(3,625,994

)

Parts, service and collision repair

 

 

(183,108

)

 

 

(175,929

)

 

 

(363,162

)

 

 

(342,749

)

Total cost of sales

 

 

(2,029,007

)

 

 

(2,068,186

)

 

 

(3,918,484

)

 

 

(3,968,743

)

Gross profit

 

 

353,305

 

 

 

355,554

 

 

 

698,455

 

 

 

690,513

 

Selling, general and administrative expenses

 

 

(277,204

)

 

 

(284,661

)

 

 

(561,580

)

 

 

(555,523

)

Impairment charges

 

 

(151

)

 

 

(10,469

)

 

 

(151

)

 

 

(16,661

)

Depreciation and amortization

 

 

(18,905

)

 

 

(17,294

)

 

 

(37,374

)

 

 

(33,703

)

Operating income (loss)

 

 

57,045

 

 

 

43,130

 

 

 

99,350

 

 

 

84,626

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, floor plan

 

 

(6,690

)

 

 

(5,345

)

 

 

(13,126

)

 

 

(10,123

)

Interest expense, other, net

 

 

(12,205

)

 

 

(13,054

)

 

 

(24,544

)

 

 

(26,274

)

Other income (expense), net

 

 

6

 

 

 

10

 

 

 

110

 

 

 

100

 

Total other income (expense)

 

 

(18,889

)

 

 

(18,389

)

 

 

(37,560

)

 

 

(36,297

)

Income (loss) from continuing operations before taxes

 

 

38,156

 

 

 

24,741

 

 

 

61,790

 

 

 

48,329

 

Provision for income taxes for continuing operations - benefit (expense)

 

 

(15,113

)

 

 

(9,649

)

 

 

(24,283

)

 

 

(18,848

)

Income (loss) from continuing operations

 

 

23,043

 

 

 

15,092

 

 

 

37,507

 

 

 

29,481

 

Discontinued operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from discontinued operations before taxes

 

 

(362

)

 

 

(509

)

 

 

(100

)

 

 

(1,200

)

Provision for income taxes for discontinued operations - benefit (expense)

 

 

141

 

 

 

198

 

 

 

39

 

 

 

468

 

Income (loss) from discontinued operations

 

 

(221

)

 

 

(311

)

 

 

(61

)

 

 

(732

)

Net income (loss)

 

$

22,822

 

 

$

14,781

 

 

$

37,446

 

 

$

28,749

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings (loss) per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per share from continuing operations

 

$

0.50

 

 

$

0.30

 

 

$

0.81

 

 

$

0.58

 

Earnings (loss) per share from discontinued operations

 

 

-

 

 

 

(0.01

)

 

 

-

 

 

 

(0.01

)

Earnings (loss) per common share

 

$

0.50

 

 

$

0.29

 

 

$

0.81

 

 

$

0.57

 

Weighted average common shares outstanding

 

 

45,731

 

 

 

50,784

 

 

 

46,340

 

 

 

50,819

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings (loss) per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per share from continuing operations

 

$

0.50

 

 

$

0.30

 

 

$

0.81

 

 

$

0.57

 

Earnings (loss) per share from discontinued operations

 

 

-

 

 

 

(0.01

)

 

 

(0.01

)

 

 

(0.01

)

Earnings (loss) per common share

 

$

0.50

 

 

$

0.29

 

 

$

0.80

 

 

$

0.56

 

Weighted average common shares outstanding

 

 

45,924

 

 

 

51,093

 

 

 

46,523

 

 

 

51,247

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends declared per common share

 

$

0.05

 

 

$

0.025

 

 

$

0.10

 

 

$

0.05

 

 

 

 

See notes to condensed consolidated financial statements.

1

 


 

SONIC AUTOMOTIVE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2016

 

 

2015

 

 

2016

 

 

2015

 

 

 

(Dollars in thousands)

 

Net income (loss)

 

$

22,822

 

 

$

14,781

 

 

$

37,446

 

 

$

28,749

 

Other comprehensive income (loss) before taxes:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in fair value of interest rate swap agreements

 

 

(2,798

)

 

 

1,439

 

 

 

(7,676

)

 

 

(50

)

Provision for income tax benefit (expense) related to

   components of other comprehensive income (loss)

 

 

1,063

 

 

 

(547

)

 

 

2,916

 

 

 

19

 

Other comprehensive income (loss)

 

 

(1,735

)

 

 

892

 

 

 

(4,760

)

 

 

(31

)

Comprehensive income (loss)

 

$

21,087

 

 

$

15,673

 

 

$

32,686

 

 

$

28,718

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See notes to condensed consolidated financial statements.

 

2

 


 

SONIC AUTOMOTIVE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

 

 

June 30,

 

 

December 31,

 

 

 

2016

 

 

2015

 

 

 

(Dollars in thousands)

 

ASSETS

 

Current Assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

2,419

 

 

$

3,625

 

Receivables, net

 

 

313,572

 

 

 

378,520

 

Inventories

 

 

1,590,216

 

 

 

1,599,581

 

Assets held for sale

 

 

6,347

 

 

 

-

 

Other current assets

 

 

54,681

 

 

 

101,386

 

Total current assets

 

 

1,967,235

 

 

 

2,083,112

 

Property and Equipment, net

 

 

951,838

 

 

 

886,902

 

Goodwill

 

 

471,493

 

 

 

471,493

 

Other Intangible Assets, net

 

 

80,555

 

 

 

80,876

 

Other Assets

 

 

40,104

 

 

 

39,998

 

Total Assets

 

$

3,511,225

 

 

$

3,562,381

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

Current Liabilities:

 

 

 

 

 

 

 

 

Notes payable - floor plan - trade

 

$

787,130

 

 

$

893,466

 

Notes payable - floor plan - non-trade

 

 

655,282

 

 

 

625,367

 

Trade accounts payable

 

 

129,944

 

 

 

131,204

 

Accrued interest

 

 

12,874

 

 

 

12,640

 

Other accrued liabilities

 

 

219,546

 

 

 

218,507

 

Current maturities of long-term debt

 

 

29,459

 

 

 

33,437

 

Total current liabilities

 

 

1,834,235

 

 

 

1,914,621

 

Long-Term Debt

 

 

848,802

 

 

 

781,145

 

Other Long-Term Liabilities

 

 

70,517

 

 

 

64,245

 

Deferred Income Taxes

 

 

82,743

 

 

 

73,322

 

Commitments and Contingencies

 

 

 

 

 

 

 

 

Stockholders’ Equity:

 

 

 

 

 

 

 

 

Class A convertible preferred stock, none issued

 

 

-

 

 

 

-

 

Class A common stock, $0.01 par value;  100,000,000 shares authorized;

   62,955,392 shares issued and 33,418,455 shares outstanding at

   June 30, 2016; 62,586,381 shares issued and 37,910,938 shares

   outstanding at December 31, 2015

 

 

630

 

 

 

626

 

Class B common stock, $0.01 par value; 30,000,000 shares authorized;

   12,029,375 shares issued and outstanding at June 30, 2016

   and December 31, 2015

 

 

121

 

 

 

121

 

Paid-in capital

 

 

718,390

 

 

 

713,118

 

Retained earnings

 

 

489,878

 

 

 

457,010

 

Accumulated other comprehensive income (loss)

 

 

(10,392

)

 

 

(5,632

)

Treasury stock, at cost; 29,536,937 Class A common stock shares held

   at June 30, 2016 and 24,675,443 Class A common stock shares

   held at December 31, 2015

 

 

(523,699

)

 

 

(436,195

)

Total Stockholders’ Equity

 

 

674,928

 

 

 

729,048

 

Total Liabilities and Stockholders’ Equity

 

$

3,511,225

 

 

$

3,562,381

 

 

 

 

See notes to condensed consolidated financial statements.

3

 


 

 

SONIC AUTOMOTIVE, INC.

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

Class A

 

 

Class A

 

 

Class B

 

 

 

 

 

 

 

 

 

 

Other

 

 

Total

 

 

 

Common Stock

 

 

Treasury Stock

 

 

Common Stock

 

 

Paid-In

 

 

Retained

 

 

Comprehensive

 

 

Stockholders’

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Earnings

 

 

Income (Loss)

 

 

Equity

 

 

 

(Dollars and shares in thousands)

 

Balance at December 31, 2015

 

 

62,586

 

 

$

626

 

 

 

(24,675

)

 

$

(436,195

)

 

 

12,029

 

 

$

121

 

 

$

713,118

 

 

$

457,010

 

 

$

(5,632

)

 

$

729,048

 

Shares awarded under stock compensation plans

 

 

369

 

 

 

4

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

2

 

 

 

-

 

 

 

-

 

 

 

6

 

Purchases of treasury stock

 

 

-

 

 

 

-

 

 

 

(4,862

)

 

 

(87,504

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(87,504

)

Income tax expense associated with stock compensation plans

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(364

)

 

 

-

 

 

 

-

 

 

 

(364

)

Change in fair value of interest rate swap agreements, net of tax benefit of $2,916

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(4,760

)

 

 

(4,760

)

Restricted stock amortization

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

5,634

 

 

 

-

 

 

 

-

 

 

 

5,634

 

Other

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Net income (loss)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

37,446

 

 

 

-

 

 

 

37,446

 

Dividends declared ($0.10 per share)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(4,578

)

 

 

-

 

 

 

(4,578

)

Balance at June 30, 2016

 

 

62,955

 

 

$

630

 

 

 

(29,537

)

 

$

(523,699

)

 

 

12,029

 

 

$

121

 

 

$

718,390

 

 

$

489,878

 

 

$

(10,392

)

 

$

674,928

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See notes to condensed consolidated financial statements.

4

 


 

 

 

SONIC AUTOMOTIVE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

 

Six Months Ended June 30,

 

 

 

2016

 

 

2015

 

 

 

(Dollars in thousands)

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

 

 

Net income (loss)

 

$

37,446

 

 

$

28,749

 

Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization of property, plant and equipment

 

 

37,371

 

 

 

33,701

 

Provision for bad debt expense

 

 

248

 

 

 

1,425

 

Other amortization

 

 

325

 

 

 

325

 

Debt issuance cost amortization

 

 

1,250

 

 

 

966

 

Debt discount amortization, net of premium amortization

 

 

150

 

 

 

83

 

Stock-based compensation expense

 

 

5,634

 

 

 

4,743

 

Deferred income taxes

 

 

11,192

 

 

 

8,396

 

Net distributions from equity investee

 

 

35

 

 

 

82

 

Asset impairment charges

 

 

151

 

 

 

16,661

 

Loss (gain) on disposal of dealerships and property and equipment

 

 

(149

)

 

 

(1,202

)

Loss (gain) on exit of leased dealerships

 

 

(139

)

 

 

707

 

Changes in assets and liabilities that relate to operations:

 

 

 

 

 

 

 

 

Receivables

 

 

70,389

 

 

 

65,824

 

Inventories

 

 

9,365

 

 

 

(129,446

)

Other assets

 

 

46,560

 

 

 

(4,163

)

Notes payable - floor plan - trade

 

 

(106,336

)

 

 

51,905

 

Trade accounts payable and other liabilities

 

 

(6,773

)

 

 

(24,422

)

Total adjustments

 

 

69,273

 

 

 

25,585

 

Net cash provided by (used in) operating activities

 

 

106,719

 

 

 

54,334

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

 

 

Purchases of land, property and equipment

 

 

(108,970

)

 

 

(82,922

)

Proceeds from sales of property and equipment

 

 

887

 

 

 

775

 

Proceeds from sales of dealerships

 

 

-

 

 

 

1,250

 

Net cash provided by (used in) investing activities

 

 

(108,083

)

 

 

(80,897

)

CASH  FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

Net (repayments) borrowings on notes payable - floor plan - non-trade

 

 

29,915

 

 

 

(5,217

)

Borrowings on revolving credit facilities

 

 

155,208

 

 

 

238,672

 

Repayments on revolving credit facilities

 

 

(159,411

)

 

 

(229,674

)

Proceeds from issuance of long-term debt

 

 

76,409

 

 

 

46,075

 

Debt issuance costs

 

 

(293

)

 

 

-

 

Principal payments on long-term debt

 

 

(9,633

)

 

 

(9,149

)

Purchases of treasury stock

 

 

(87,504

)

 

 

(14,766

)

Income tax benefit (expense) associated with stock compensation plans

 

 

(364

)

 

 

416

 

Issuance of shares under stock compensation plans

 

 

6

 

 

 

2,132

 

Dividends paid

 

 

(4,175

)

 

 

(2,556

)

Net cash provided by (used in) financing activities

 

 

158

 

 

 

25,933

 

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

 

 

(1,206

)

 

 

(630

)

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

 

 

3,625

 

 

 

4,182

 

CASH AND CASH EQUIVALENTS, END OF PERIOD

 

$

2,419

 

 

$

3,552

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SUPPLEMENTAL SCHEDULE OF NON-CASH FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

Change in fair value of cash flow interest rate swap agreements (net of tax benefit of $2,916 and

 

 

 

 

 

 

 

 

$19 in the six months ended June 30, 2016 and 2015, respectively)

 

$

(4,760

)

 

$

(31

)

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:

 

 

 

 

 

 

 

 

Cash paid (received) during the period for: