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SEC Filings

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

Investment Valuation Provision

         There  were no  investment  valuation  provisions  recorded  in 1994 as
compared to the $582,000 write down recorded in 1993.

Equity in (Earnings) Losses of Unconsolidated Affiliates

         The  $580,000  or  659%  decrease  in the  earnings  of  unconsolidated
affiliates  to a loss of $492,000 in 1994 compared to income of $88,000 in 1993,
related primarily to an increase in the losses from Servicios of $536,000.

Gain on Disposition of Assets

         The gain on disposition of assets of $2.9 million in 1994 compared with
$0.3 million in 1993,  related primarily to the gain recognized upon the sale of
WellTech's West Texas operations to Key.

Cash Flow

         Net cash  provided  by  operating  activities  of $4.6  million in 1994
increased by $3.7 million over the $933,000 generated in 1993. Of this increase,
$2.3 million was the result of changes in working  capital  components  with the
balance of $1.4 million due to increased cash flows from operations in 1994. Net
cash flows required for investing activities increased in 1994 by $14.1 million.
This increase was due to a substantial  increase in capital  expenditures ($12.0
million),  increased  contributions to unconsolidated  operations ($2.6 million)
and  reduced  distributions  from  Dawson  ($363,000)  offset by an  increase in
property  sales  proceeds of  $822,000.  The 1994 capital  expenditures  program
included  significant  capital  expenditures  related to  expansion,  consisting
primarily of expanded rig operations ($3.7 million),  drilling  operations ($1.8
million) and expansion into the trucking and disposal  business ($4.3  million).
The balance ($3.9 million) was primarily for  refurbishments and improvements to
existing machinery and equipment.  Net cash from financing  activities increased
by $10.0  million  from 1993 to 1994 due to an increase in debt  proceeds  ($5.5
million) and a sale of common stock ($4.5 million).  During 1993,  there were no
new equity proceeds and an insignificant amount of new debt proceeds.

Year Ended December 31, 1993 Versus Year Ended December 31, 1992

Results of Operations


         Revenues for 1993 were $2.5 million or 4% less than 1992. This decrease
was due to  WellTech's  contribution  of its Gulf Coast  operations  into Dawson
effective  November  1992.  WellTech's  investment in Dawson is accounted for in
accordance with the equity method.  This was partially offset by an increase due
to the expansion of the Mid Continent operations during 1993.