Key Energy Services Inc. Announces Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended June 30, 2017; Provides Financial Guidance for the Third Quarter and Full Year 2017
August 08, 2017 at 10:57 pm
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Key Energy Services Inc. announced unaudited consolidated earnings results for the second quarter and six months ended June 30, 2017. For the quarter, the company reported revenues of $107,780,000 compared to $95,012,000 for the same period a year ago. Operating loss was $7,024,000 compared to $71,166,000 for the same period a year ago. Loss before tax income taxes was $14,036,000 compared to $92,935,000 for the same period a year ago. Net loss was $13,183,000 compared to $92,802,000 for the same period a year ago. Loss per share, basic and diluted was $0.66 compared to $0.58 for the same period a year ago. LBITDA was $14,591,000 compared to $35,856,000 for the same period a year ago. Adjusted LBITDA was $657,000 compared to $24,358,000 for the same period a year ago. Cash flow generated in operations was $7 million for the second quarter as compared to $13 million used in the first quarter. Capital expenditures for the first quarter were $4.8 million. Additionally, the company generated $23 million from asset sales in the second quarter.
For the six months, the company reported revenues of $209,232,000 compared to $206,100,000 for the same period a year ago. Operating loss was $45,362,000 compared to $132,673,000 for the same period a year ago. Loss before tax income taxes was $61,184,000 compared to $174,795,000 for the same period a year ago. Net loss was $60,042,000 compared to $174,416,000 for the same period a year ago. Loss per share, basic and diluted was $2.99 compared to $1.09 for the same period a year ago.
Previously, the company stated that CapEx budget for the year was $10 million, but that amount could go up to $20 million depending on proceeds from asset sales. Depreciation and amortization expense was $20.9 million and interest expense was $7.9 million for the quarter. It expects run rate and these costs to be consistent with this for 2017. On taxes, it is not benefiting losses at this point.
Looking to next quarter with the market where it is, the company expects only low single-digit revenue growth and slight like 100, 200 basis point improvement in adjusted EBITDA margins at the U.S. operating segment level.
Key Energy Services, Inc. is an onshore, rig-based well servicing contractor. The Company provides a range of well services to oil companies and independent oil and natural gas production companies. The Company's segments include Rig Services, Fishing and Rental Services, and Coiled Tubing Services. The Rig Services segment includes the completion of newly drilled wells, workover and recompletion of existing oil and natural gas wells, well maintenance, and the plugging and abandonment of wells. The Fishing and Rental Services segment offers a line of fishing services and rental equipment designed for use in providing both onshore drilling and workover services. The Coiled Tubing Services segment involves the use of metal pipe spooled onto a large reel which is then deployed into oil and natural gas wells to perform various applications.
Key Energy Services Inc. Announces Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended June 30, 2017; Provides Financial Guidance for the Third Quarter and Full Year 2017
KEY ENERGY SERVICES, INC. 
