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SEC Filings

8-K
KEY ENERGY SERVICES INC filed this Form 8-K on 02/27/2018
Entire Document
 


 
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February 26, 2017

 
 
 


 
Twelve Months Ended December 31, 2017
 
U.S. Rig Services
 
Fluid Management Services
 
Coiled Tubing Services
 
Fishing and Rental Services
 
International
 
Functional Support
 
Total
Net income (loss)
$
(3,449
)
 
$
(19,537
)
 
$
1,643

 
$
7,748

 
$
60

 
$
(107,054
)
 
$
(120,589
)
Income tax benefit

 

 

 

 
(360
)
 
(1,342
)
 
(1,702
)
Interest expense, net of amounts capitalized

 

 

 

 

 
31,797

 
31,797

Interest income

 

 

 

 
(49
)
 
(662
)
 
(711
)
Depreciation and amortization
31,493

 
21,917

 
5,187

 
23,454

 
791

 
1,700

 
84,542

EBITDA
$
28,044

 
$
2,380

 
$
6,830

 
$
31,202

 
$
442

 
$
(75,561
)
 
$
(6,663
)
    % of revenues
11.3
%
 
2.9
%
 
16.3
%
 
52.7
%
 
7.9
 %
 
%
 
(1.5
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Severance costs
1,067

 
36

 
78

 
146

 
286

 
879

 
2,492

Stock-based compensation expense
1,001

 
(6
)
 
97

 

 

 
5,918

 
7,010

Restructuring items, net

 

 

 

 

 
1,501

 
1,501

Impairment expense

 

 

 

 
187

 

 
187

(Gain) loss on sales of assets
(1,064
)
 
(485
)
 
9

 
(21,283
)
 
392

 
9

 
(22,422
)
Gain on sale of Russia

 

 

 

 
(4,677
)
 

 
(4,677
)
Restructuring professional fees

 

 

 

 

 
1,780

 
1,780

Legal settlements

 
4,000

 

 

 

 
7,562

 
11,562

Adjusted EBITDA
$
29,048

 
$
5,925

 
$
7,014

 
$
10,065

 
$
(3,370
)
 
$
(57,912
)
 
$
(9,230
)
    % of revenues
11.7
%
 
7.3
%
 
16.8
%
 
17.0
%
 
(60.5
)%
 
%
 
(2.1
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
$
248,830

 
$
80,726

 
$
41,866

 
$
59,172

 
$
5,571

 
$

 
$
436,165

        
“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

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