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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

 
 
 


Company offers today compared to the last market up-cycle. We believe when oil prices stabilize at a sufficiently economic level for our customers that activity will begin to ramp for our core production services.”
Financial Overview
Upon emergence from Chapter 11 bankruptcy on December 15, 2016, the Company adopted fresh start accounting, which resulted in the Company becoming a new entity for financial reporting purposes. References to "Successor" relate to the financial position of the reorganized Key as of and subsequent to December 16, 2016; references to "Predecessor" refer to the financial position of Key as of and prior to December 15, 2016 and the results of operations through December 15, 2016. References to fourth quarter 2016 will reflect pro-forma results for the Predecessor and Successor entities.
The following table sets forth summary data for the second quarter 2017 and prior comparable quarterly periods:
 
 
Successor
 
 
Predecessor
 
 
Three Months Ended June 30, 2017
 
Three Months Ended March 31, 2017
 
 
Three Months Ended June 30, 2016
Revenues
 
$
107.8

 
$
101.5

 
 
$
95.0

Net loss
 
(13.2
)
 
(46.9
)
 
 
(92.8
)
Diluted loss per share
 
(0.66
)
 
(2.33
)
 
 
(0.58
)
Adjusted EBITDA*
 
(0.7
)
 
(11.0
)
 
 
(24.4
)
* Adjusted EBITDA does not exclude costs incurred in connection with the Company’s FCPA investigations completed in 2016.
U.S. Results
Second quarter 2017 U.S. Rig Services revenues of $61.8 million were up 2.5% as compared to the first quarter 2017. Second quarter operating loss was $0.2 million, or -0.3% of revenue, which included severance of $0.9 million, stock-based compensation expense of $0.6 million and a gain on sale of assets of $0.4 million; excluding these items, normalized operating income was $1.0 million, or 1.6% of revenue. These results compare to first quarter operating loss of $2.1 million, or -3.5% of revenue, which included stock-based compensation expense of $0.4 million; excluding this item, normalized operating loss was $1.6 million, or -2.7% of revenue. The operating loss for the first quarter also included approximately $1.1 million of incremental employment related taxes and $1.1 million of equipment make-ready costs.

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