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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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Depreciation Expense

         Depreciation  expense  increased  by $0.3  million  or 13.3%  from $2.2
million for the nine months  ended  September  30, 1994 to $2.5  million for the
comparable  fiscal 1995 period  primarily  as a result of the  consolidation  of
Servicios in 1995.

General and Administrative Expense

         General and administrative expenses increased from $5.9 million to $7.6
million,  an  increase  of $1.7  million  or 29% during  the nine  months  ended
September  30, 1995  compared  with the nine months  ended  September  30, 1994.
Approximately  53% of this increase related to the consolidation of Servicios in
1995.  The  remaining  increase  was the  result  of  increases  in  several  of
WellTech's  operating  areas  including  drilling   ($319,000),   Mid  Continent
($554,000) and Eastern  ($175,000)  partially  offset by cost  reductions at the
corporate level.

Interest Expense

         Interest expense  increased from $550,000 to $1.4 million,  an increase
of $850,000 or 155%,  during the nine months ended  September  30, 1995 compared
with the  nine  months  ended  September  30,  1994,  primarily  due to the bank
financing which was completed in January 1995  ($535,000) and the  consolidation
of Servicios during the nine months ended September 30, 1995 ($325,000).

Gain on Disposition of Assets

         The gain on  disposition  of assets  decreased to $390,000 for the nine
months ended September 30, 1995 compared with $2,499,000 for the comparable 1994
period because the gain of approximately  $3.0 million from the sale of the West
Texas  operations  to Key was  included in the nine months ended  September  30,
1994.

Cash Flow

         Net cash provided by operating activities decreased by $2.4 million, to
$(1.8)  million,  during the nine  months  ended  September  30,  1995 from $0.6
million for the  comparable  1994 period.  Of this decrease $4.0 million was the
result of changes in working  capital  components  offset by $1.5 million higher
cashflows from  operations  during the 1995 period.  Net cashflows  required for
investing activities  decreased $4.0 million,  from $7.7 million in 1994 to $3.7
million in 1995 primarily due to a decrease in contributions  to  unconsolidated
operations ($1.2 million) and a decrease in capital expenditures ($4.0 million).
These were offset by a decrease in proceeds from asset sales ($1.1 million). Net
cash from financing  activities decreased by $2.0 million during the 1995 period
versus the 1994  period.  While  there was no new equity in 1995 as  compared to
$4.6 million in 1994 there was an increase in the  additions to new debt of $5.6
million in 1995.  This net increase was offset by an increase in debt repayments
of $2.7 million.

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