Net income for fiscal 1995 was $2,178,000 compared to $1,345,000 for
fiscal 1994, a 62% increase, as a consequence of the foregoing factors.
Net cash provided by operating activities increased 77% or $1,416,000,
from $1,842,000 during the 1994 fiscal year to $3,258,000 for the 1995 fiscal
period. The increase was attributable primarily to an increase in net income.
Net cash used in investing activities increased 28% from $5,608,000 for
fiscal 1994 to $7,154,000 for fiscal 1995. The increase was primarily the result
of increased capital expenditures for oil and gas properties and costs
associated with the acquisition of Clint Hurt. This increase was partially
offset by a decrease in oil field service capital expenditures. The capital
expenditures for the oil field service operations during fiscal 1994 were
primarily the result of the improvements necessary for the WellTech West Texas
Net cash provided by financing activities was $3,998,000 for the 1995
fiscal year as compared to $4,316,000 for fiscal 1994. The decrease was
primarily the result of increased principal payments during fiscal 1995. This
increase in principal payments was somewhat off-set by an increase in proceeds
from long-term debt during fiscal 1995 as the result of the financing of the
improvement costs to the equipment of the West Texas operations of WellTech, the
purchase of oil and gas properties by Odessa Exploration and the acquisition of
Fiscal Year Ended June 30, 1994 Compared to Fiscal Year Ended June 30, 1993
Results of operations for the fiscal year ended June 30, 1994 include
Key's oil field well service operations and its oil and gas operations. Results
of operations for the five months ended November 30, 1992 (prior to emergence
from bankruptcy) and the seven months ended June 30, 1993 have been combined for
fiscal 1993 for comparison to fiscal 1994.
Fiscal 1994 revenues of $34,621,000 increased $9,932,000 or 40% over
fiscal 1993 revenues of $24,689,000 due to the acquisition of Odessa Exploration
and the operation of the assets of WellTech West Texas. In addition, Yale E. Key
expanded its services to offer oil well fishing tools, blow-out preventors and
oil well frac tanks.