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SEC Filings

10-Q
KEY ENERGY SERVICES INC filed this Form 10-Q on 08/10/2017
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which represented a decrease of $3.2 million, or 4.9%, compared to $65.2 million for the same period in 2016. These expenses decreased primarily as a result of reduced depreciation expense and a decrease in employee compensation on a per hour basis as we sought to reduce our cost structure.
Fluid Management Services
Revenues for our Fluid Management Services segment decreased $0.7 million, or 3.7%, to $18.9 million for the three months ended June 30, 2017, compared to $19.6 million for the three months ended June 30, 2016. The decrease for this segment is primarily due to our exit from unprofitable locations.
Operating expenses for our Fluid Management Services segment were $22.1 million during the three months ended June 30, 2017, which represented a decrease of $5.1 million, or 18.6%, compared to $27.1 million for the same period in 2016. These expenses decreased primarily as a result of a decrease in employee compensation costs and equipment expense as we sought to reduce our cost structure.
Coiled Tubing Services
Revenues for our Coiled Tubing Services segment increased $1.5 million, or 20.3%, to $9.2 million for the three months ended June 30, 2017, compared to $7.6 million for the three months ended June 30, 2016. The increase for this segment is primarily due to an increase in drilling and completion spending from our customers as they plan for continuing recovery of commodity prices.
Operating expenses for our Coiled Tubing Services segment were $8.8 million during the three months ended June 30, 2017, which represented a decrease of $4.8 million, or 35.4%, compared to $13.7 million for the same period in 2016. These expenses decreased primarily as a result of reduced depreciation expense and a decrease in employee compensation costs and equipment expense as we sought to reduce our cost structure.
Fishing and Rental Services
Revenues for our Fishing and Rental Services segment increased $2.4 million, or 17.6%, to $15.8 million for the three months ended June 30, 2017, compared to $13.4 million for the three months ended June 30, 2016. The increase for this segment is primarily due to an increase in completion and production spending from our customers as they plan for continuing recovery of commodity prices.
Operating expenses for our Fishing and Rental Services segment were a gain of $1.7 million during the three months ended June 30, 2017, which represented a decrease of $23.9 million, or 107.7%, compared to $22.2 million for the same period in 2016. These expenses decreased primarily due to a $21.0 million gain on the sale of certain assets, as a result of reduced depreciation expense and a decrease in and a decrease in employee compensation on a per hour basis as we sought to reduce our cost structure.
International
Revenues for our International segment decreased $0.7 million, or 24.9%, to $2.2 million for the three months ended June 30, 2017, compared to $2.9 million for the three months ended June 30, 2016. The decrease was primarily attributable to lower customer activity in Russia and exit from operations in Mexico.
Operating expenses for our International segment decreased $4.3 million, or 54.8%, to $3.5 million for the three months ended June 30, 2017, compared to $7.8 million for the three months ended June 30, 2016. These expenses decreased primarily as a result of a decrease in employee compensation costs and equipment expense primarily as a result of the exit of our operations in Mexico.
Functional Support
Operating expenses for Functional Support, which represent expenses associated with managing our U.S. and International reporting segments, decreased $10.1 million, or 33.5%, to $20.1 million (18.6% of consolidated revenues) for the three months ended June 30, 2017 compared to $30.2 million (31.8% of consolidated revenues) for the same period in 2016. The decrease is primarily due to decrease of $9.5 million in professional fees related to the 2016 corporate restructuring.
Consolidated Results of Operations — Six Months Ended June 30, 2017 and 2016
Revenues
Our revenues for the six months ended June 30, 2017 increased $3.1 million, or 1.5%, to $209.2 million from $206.1 million for the six months ended June 30, 2016, due to an increase in spending from our customers as they plan for continuing recovery of commodity prices. Internationally, we had lower revenue as a result of the sale our operations in Mexico and a decrease in activity in Russia. See “Segment Operating Results — Six Months Ended June 30, 2017 and 2016 below for a more detailed discussion of the change in our revenues.

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