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SEC Filings

8-K
KEY ENERGY SERVICES INC filed this Form 8-K on 11/09/2017
Entire Document
 


 
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November 8, 2017

 
 
 


 
Three Months Ended June 30, 2017
 
U.S. Rig Services
 
Fluid Management Services
 
Coiled Tubing Services
 
Fishing and Rental Services
 
International
 
Functional Support
 
Total
Net loss
$
(19
)
 
$
(3,071
)
 
$
330

 
$
17,514

 
$
(1,074
)
 
$
(26,863
)
 
$
(13,183
)
Income tax benefit

 

 

 

 
31

 
(884
)
 
(853
)
Interest expense, net of amounts capitalized

 

 

 

 

 
7,872

 
7,872

Interest income

 

 

 

 
(18
)
 
(137
)
 
(155
)
Depreciation and amortization
7,895

 
5,469

 
1,284

 
5,850

 
32

 
380

 
20,910

EBITDA
$
7,876

 
$
2,398

 
$
1,614

 
$
23,364

 
$
(1,029
)
 
$
(19,632
)
 
$
14,591

    % of revenues
12.7
%
 
12.7
%
 
17.6
%
 
148.1
%
 
(47.4
)%
 
%
 
13.5
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Severance costs
855

 
29

 
11

 
94

 

 
661

 
1,650

Stock-based compensation
641

 
55

 
54

 

 

 
3,219

 
3,969

Restructuring cost, net

 

 

 

 

 
101

 
101

(Gain) loss on sales of assets
(357
)
 
(239
)
 
(8
)
 
(20,711
)
 
338

 
9

 
(20,968
)
Adjusted EBITDA*
$
9,015

 
$
2,243

 
$
1,671

 
$
2,747

 
$
(691
)
 
$
(15,642
)
 
$
(657
)
    % of revenues
14.6
%
 
11.9
%
 
18.2
%
 
17.4
%
 
(31.8
)%
 
%
 
(0.6
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
$
61,802

 
$
18,867

 
$
9,165

 
$
15,776

 
$
2,170

 
$

 
$
107,780

*  Adjusted EBITDA does not exclude costs incurred in connection with the Company’s FCPA investigations completed in 2016.

“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 statements, such as investors, primarily to compare the Company’s core operating and financial performance from period to period without regard to the many non-cash accounting charges or unusual expenses that have impacted the Company’s GAAP operating income and net income due to the severe downturn in the company’s business.

9