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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 Expenses

         Operating  expenses  represented  81.1% of the  revenues in 1993 versus
78.4% in 1992. This increase was the result of lower insurance costs in 1992 and
additional  costs incurred in connection with the expansion of the Mid Continent
and Eastern operations during 1993.

General and Administrative Expenses

         General and administrative expenses decreased by $2.2 million or 19% in
1993 versus 1992.  This decrease was due to the  contribution  of the Gulf Coast
operation  into Dawson in late 1992 and  extensive  cost cutting  efforts at the
corporate  level.  This was offset by a slight  increase due to the expansion of
the Mid Continent operations during 1993.

Depreciation Expense


         The 13 % decrease in depreciation expense from 1992 to 1993 of $477,000
related to the  contribution of the Gulf Coast operation into Dawson in November
1992.


Investment Valuation Provision


         In 1992,  WellTech  reassessed  the  carrying  value of  certain of its
non-well servicing investments and recorded a provision of $2.4 million to write
these  investments  down to their  estimated net  realizable  value.  In 1993, a
similar assessment was made and a provision of $582,000 was recorded.


Cash Flow

         Net cash provided by operating  activities  increased $1.8 million from
($824,000) in 1992 to $933,000 in 1993. Of this  increase,  $2.0 million was the
result of changes in working  capital  components  offset by $300,000 lower cash
flows from operations in 1993. Net cashflows  required for investing  activities
decreased  in  1993  by  $3.3  million  primarily  due  to  a  decrease  in  the
contributions  to  unconsolidated  operations  ($2.1 million) and an increase in
distributions  from  Dawson  ($775,000).  Net  cash  from  financing  activities
decreased by $2.7  million from 1992 to 1993 due to a decrease in proceeds  from
the  issuance  of debt  ($2.3  million)  and an  increase  in  payments  on debt
($366,000).

Liquidity And Capital Resources

         During  1993,   capital   expenditures   were   generally   limited  to
refurbishments  and  improvements  to existing  machinery and equipment and were
funded  with the  proceeds  from the sale of  obsolete  or unused  property  and
equipment.   The  cash   provided  by  operating   activities   along  with  the
distributions from Dawson funded the contributions to unconsolidated  operations
and the debt service requirements.

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