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SEC Filings

S-4/A
KEY ENERGY SERVICES INC filed this Form S-4/A on 03/08/1996
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Operating Income

         Fiscal 1995 revenues of $44,689,000  increased  $10,068,000 or 29% over
fiscal 1994 revenues of $34,621,000.  Fiscal 1995 revenues  increased due to the
acquisition  of oil and gas  producing  properties  by Odessa  Exploration,  the
operation of the assets of WellTech West Texas (which  included twelve months of
fiscal 1995 and seven months of fiscal 1994),  and the additional  revenues from
Clint Hurt (which was acquired in March 1995).  In  addition,  Key  continued to
expand its services offering oil well fishing tools, blow-out preventers and oil
well frac tanks.

         Fiscal 1995 costs and expenses of $41,361,000  increased  $9,035,000 or
28% over fiscal 1994 costs and  expenses of  $32,326,000.  Fiscal 1995 costs and
expenses  increased  primarily due to the  operations of WellTech West Texas and
the  acquisition of Clint Hurt as well as increased lease operating costs due to
acquisitions of oil and gas producing properties by Odessa Exploration.

         Income before income taxes was $3,328,000 for fiscal 1995,  which was a
45%  increase  from  $2,295,000  in fiscal 1994.  The increase in income  before
income taxes was due to the  increase in revenues  for the current  fiscal year,
the acquisition by Odessa  Exploration of producing oil and gas properties,  the
operations of WellTech West Texas and the acquisition of Clint Hurt.

Interest Expense

         Interest  expense   increased  from  $830,000  during  fiscal  1994  to
$1,478,000  during  fiscal  1995,  primarily as a result of  borrowings  for the
acquisition  and  drilling  of  oil  and  gas  producing  properties  by  Odessa
Exploration and the acquisition of Clint Hurt.

General and Administrative Expenses

         General  and  administrative  expenses  increased  23% or  $812,000  to
$4,352,000 during fiscal 1995 from $3,540,000 during fiscal 1994,  primarily due
to increased  expenses of Odessa  Exploration  and the acquisition of Clint Hurt
and  WellTech  West  Texas.  However,  as a percent  of  revenues,  general  and
administrative  expenses  decreased from 10.2% of revenues during fiscal 1994 to
9.7% of revenues during fiscal 1995.

Depreciation and Depletion Expense

         Depreciation  and  depletion  expense  increased  100% to $2,738,000 in
fiscal  1995  from  $1,371,000  in  fiscal  1994 due  mainly  to the  additional
depreciation  expense associated with the acquisition of the WellTech West Texas
oil  field  service  equipment  and  subsequent  capital  expenditures  on  such
equipment.

Income Taxes

         Income  tax  expense  of  $1,150,000  for fiscal  1995  increased  from
$950,000 in income tax expense for fiscal 1994. The increase in income taxes was
primarily due to the increase in operating income.  However, Key does not expect
to be required to remit a significant amount of the $1,150,000 in federal income
taxes in cash during fiscal 1996,  because of the  availability of net operating
loss carry forwards.
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