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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

 
 
 


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 third quarter 2017 and prior comparable quarterly periods:
 
 
Successor
 
 
Predecessor
 
 
Three Months Ended September 30, 2017
 
Three Months Ended June 30, 2017
 
 
Three Months Ended September 30, 2016
Revenues
 
$
110.7

 
$
107.8

 
 
$
102.4

Net loss
 
(38.2
)
 
(13.2
)
 
 
(130.8
)
Diluted loss per share
 
(1.90
)
 
(0.66
)
 
 
(0.81
)
Adjusted EBITDA*
 
0.6

 
(0.7
)
 
 
(14.4
)
*  Adjusted EBITDA does not exclude costs incurred in connection with the Company’s FCPA investigations completed in 2016.
U.S. Results
Third quarter 2017 U.S. Rig Services revenues of $61.9 million were up 0.2% as compared to second quarter 2017 revenues of $61.8 million, with rig hours declining approximately 1% to 161,725 hours. While revenue was up less than 1% quarter on quarter, revenue per workday was up 8% in the last month of the quarter as compared to the first month of the quarter with hours per workday up 3% in the last month of the quarter as compared to the first month of the quarter. Completions activity was up 200 basis points quarter on quarter comprising 17% of the well service rig hours in the third quarter of 2017. Margins were reduced 200 basis points in the third quarter of 2017 from the second quarter of 2017 due to adding personnel associated with increasing activity.
Third quarter 2017 Fluid Management Services revenues of $20.7 million were up 9.8% as compared to second quarter 2017 revenues of $18.9 million. Third quarter truck hours were up 7% quarter on quarter with hours per calendar day up 14% in the last month of the quarter as compared to the first month of the quarter, largely on higher completion driven demand. Fluid Management

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