Print Page  Close Window

SEC Filings

S-4/A
KEY ENERGY SERVICES INC filed this Form S-4/A on 03/08/1996
Entire Document
 
<PAGE>

10.  LEASING ARRANGEMENTS

Among   other   leases,   Key  leases   certain   automotive   equipment   under
non-cancellable operating leases which expire at various dates through 1998. The
terms  of the  operating  leases  are  36  months  with  varying  payment  dates
throughout  each month.  In addition,  each lease includes an option to purchase
the equipment and an excess mileage charge as defined in the leases.

As of June 30, 1995, the future  minimum lease  payments  under  non-cancellable
operating leases, in thousands, are as follows:
                      Fiscal Year                    Lease
                   Ending June 30,                 Payments
                        1996                       $1,107
                        1997                          509
                        1998                          147
                        1999                           47
                                                   $1,810

Operating  lease expense was  approximately  $1,930,000  and  $1,640,000 for the
fiscal  years  ended June 30,  1995 and 1994,  respectively,  and  $529,000  and
$364,000  for the seven  months  ended June 30, 1993 and the five  months  ended
November 30, 1992, respectively.

11.  EMPLOYEE BENEFIT PLANS

Yale E. Key maintains a 401-(k) plan which plan covers  substantially all of its
employees.  Yale E. Key did not make a  contribution  to the 401-(k) plan during
the fiscal year ended June 30, 1994, the seven months ended June 30, 1993 or the
five months ended  November 30, 1992.  Beginning  July 1, 1994, it has agreed to
match up to 10% of the employees'  contributions,  which  contributions  totaled
approximately $20,000 for the year ended June 30, 1995.

12.  MAJOR CUSTOMERS

Sales to customers  representing  10% or more of  consolidated  revenues for the
years ended June 30, 1995, 1994 and 1993 were as follows:

                                   Fiscal Year Ended
                                        June 30,
                            1995        1994        1993
        Customer A          18%         15%          23%
        Customer B          10%         14%          26%

The  accounts  receivable  balance  for  customer A and B at June 30,  1995 were
$1,807,000 and $243,000, respectively.

                                      F-19