Key Energy Services Inc. Announces Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended June 30, 2018; Provides Revenue Guidance for the Fourth Quarter of 2018
August 09, 2018 at 06:11 am EDT
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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.
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, 2018; Provides Revenue Guidance for the Fourth Quarter of 2018