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SEC Filings

8-K
KEY ENERGY SERVICES INC filed this Form 8-K on 08/09/2017
Entire Document
 


 
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August 8, 2017

 
 
 


 
Three Months Ended March 31, 2017
 
U.S. Rig Services
 
Fluid Management Services
 
Coiled Tubing Services
 
Fishing and Rental Services
 
International
 
Functional Support
 
Total
Net loss
$
(2,091
)
 
$
(7,165
)
 
$
(2,278
)
 
$
(3,674
)
 
$
(1,952
)
 
$
(29,699
)
 
$
(46,859
)
Income tax benefit

 

 

 

 
(292
)
 
3

 
(289
)
Interest expense, net of amounts capitalized

 

 

 

 

 
7,710

 
7,710

Interest income

 

 

 

 
(30
)
 
(168
)
 
(198
)
Depreciation and amortization
7,324

 
5,808

 
1,413

 
5,950

 
525

 
281

 
21,301

EBITDA
$
5,233

 
$
(1,357
)
 
$
(865
)
 
$
2,276

 
$
(1,749
)
 
$
(21,873
)
 
$
(18,335
)
    % of revenues
8.7
%
 
(7.6
)%
 
(16.2
)%
 
14.4
%
 
(84.5
)%
 
%
 
(18.1
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Severance costs
10

 
7

 
63

 
52

 
286

 
55

 
473

Stock-based compensation
438

 
54

 
53

 

 

 
3,155

 
3,700

Restructuring cost, net

 

 

 

 

 
1,340

 
1,340

Impairment expense

 

 

 

 
187

 

 
187

(Gain) loss on sales of assets

 
(66
)
 

 
(135
)
 
54

 

 
(147
)
Restructuring professional fees

 

 

 

 

 
1,780

 
1,780

Adjusted EBITDA*
$
5,681

 
$
(1,362
)
 
$
(749
)
 
$
2,193

 
$
(1,222
)
 
$
(15,543
)
 
$
(11,002
)
    % of revenues
9.4
%
 
(7.6
)%
 
(14.0
)%
 
13.8
%
 
(59.0
)%
 
%
 
(10.8
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
$
60,291

 
$
17,895

 
$
5,341

 
$
15,855

 
$
2,070

 
$

 
$
101,452

* Adjusted EBITDA does not exclude costs incurred in connection with the Company’s FCPA investigations.

“EBITDA” is defined as income or loss attributable to Key before interest, taxes, depreciation, and amortization.

“Adjusted EBITDA” is EBITDA as further adjusted for certain non-recurring or extraordinary items such as impairment expense, severance expense, loss on debt extinguishment, gains or losses on asset sales, asset retirements and impairments, and certain non-recurring transaction or other costs.

EBITDA and Adjusted EBITDA are non-GAAP measures that are used as supplemental financial measures by the Company’s management and directors and by external users of the Company’s financial statements, such as investors, to assess:

The financial performance of the Company’s assets without regard to financing methods, capital structure or historical cost basis;
The ability of the Company’s assets to generate cash sufficient to pay interest on its indebtedness;
The Company’s operating performance and return on invested capital as compared to those of other companies in the well services industry, without regard to financing methods and capital structure; and
The Company’s operating trends underlying the items that tend to be of a non-recurring nature.

Normalized operating loss is a non-GAAP financial measure and is defined as operating loss plus or minus certain items such as impairment expense, severance expense, FCPA settlement costs and FCPA investigation costs. Normalized operating loss is used as a supplemental financial measure by the Company’s management and directors and by external users of the Company’s financial

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