Key Energy Services Inc. announced unaudited consolidated earnings results for the second quarter and six months ended June 30, 2018. For the quarter, the company reported revenues of $144,405,000 compared to $107,780,000 for the same period a year ago. Operating loss was $8,913,000 compared to $7,024,000 for the same period a year ago. Loss before tax income taxes was $16,734,000 compared to $14,036,000 for the same period a year ago. Net loss was $16,895,000 compared to $13,183,000 for the same period a year ago. Loss per share, basic and diluted was $0.84 compared to $0.66 for the same period a year ago. EBITDA was $12,362,000 compared to $14,591,000 for the same period a year ago. Adjusted EBITDA was $11,953,000 compared to LBITDA of $657,000 for the same period a year ago. Capital expenditures were $7.7 million. Cash flow from operations was $8.2 million in the second quarter.

For the six months, the company reported revenues of $269,721,000 compared to $209,232,000 for the same period a year ago. Operating loss was $26,738,000 compared to $45,362,000 for the same period a year ago. Loss before tax income taxes was $41,696,000 compared to $61,184,000 for the same period a year ago. Net loss was $41,858,000 compared to $60,042,000 for the same period a year ago. Loss per share, basic and diluted was $2.07 compared to $2.99 for the same period a year ago. Capital expenditures was $17.2 million. Cash flow from operations use of cash over the first 6 months of 2018 was $15.2 million.

For the fourth quarter, the company expects revenue growth in the low to mid-single digit next quarter, driven mostly by activity with some price improvement. Margins next quarter will be impacted by some transitory costs, largely due to large worker's compensation charges steming from a vehicular incident last month, along with some customer transition. With those impacts, the company might see margins falling out to 100 basis point, when otherwise the company expects an improvement of around 100 basis points.