Key Energy Services Inc. (KEG, Financial) filed Quarterly Report for the period ended 2011-06-30.
Key Energy Svcs has a market cap of $2.37 billion; its shares were traded at around $16.63 with a P/E ratio of 47.5 and P/S ratio of 2.
General and administrative expenses increased $10.1 million, to $55.0 million (12.3% of revenues), for the three months ended June 30, 2011, compared to $44.9 million (16.8% of revenues) for the three months ended June 30, 2010. The second quarter increase was primarily due to the rescission of temporary employee compensation and benefit reductions as well as increased headcount due to our growth.
Interest expense decreased $0.7 million, or 6.4%, to $10.0 million for the three months ended June 30, 2011, compared to $10.7 million for the same period in 2010. We repurchased 99.2%, or $421.4 million, in aggregate principal amount of our 8.375% Notes due 2014 during the first quarter pursuant to a tender offer for the notes and simultaneously issued $475.0 million aggregate principal amount of 6.75% Notes due 2021, therefore decreasing interest expense due to the lower interest rate.
We recorded income tax expense of $20.8 million on pre-tax income of $57.2 million in the second quarter of 2011, compared to an income tax benefit of $5.9 million on a pre-tax loss of $16.9 million in the second quarter of 2010. Our effective tax rate was 36.4% for the three months ended June 30, 2011, compared to 34.8% for the three months ended June 30, 2010. Our effective tax rates for the periods differ from the U.S. statutory rate of 35% due to a number of factors, including the mix of profit and loss between various taxing jurisdictions and the impact of permanent items that affect book income but do not affect taxable income.
Depreciation and amortization expense increased $14.0 million, or 21.2%, to $79.8 million for the six months ended June 30, 2011, compared to $65.8 million for the six months ended June 30, 2010. The increase is primarily attributable to the increase in our fixed asset base through our acquisitions during 2010, as well as increased capital expenditures in 2010 and 2011.
General and administrative expenses increased $23.9 million, to $107.8 million (12.9% of revenues), for the six months ended June 30, 2011, compared to $83.9 million (16.1% of revenues) for the six months ended June 30, 2010. The increase for the first six months of 2011 was primarily due to an increase in employee compensation resulting from the rescission of temporary employee compensation and benefit reductions as well as increased headcount due to our growth. We also incurred additional professional fees related to acquisition activity.
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Key Energy Svcs has a market cap of $2.37 billion; its shares were traded at around $16.63 with a P/E ratio of 47.5 and P/S ratio of 2.
Highlight of Business Operations:
Depreciation and amortization expense increased $7.4 million, or 22.7%, to $39.9 million during the second quarter of 2011, compared to $32.5 million for the second quarter of 2010. The increase is primarily attributable to the increase in our fixed asset base through our acquisitions during 2010, as well as increased capital expenditures in 2010 and the first six months of 2011.General and administrative expenses increased $10.1 million, to $55.0 million (12.3% of revenues), for the three months ended June 30, 2011, compared to $44.9 million (16.8% of revenues) for the three months ended June 30, 2010. The second quarter increase was primarily due to the rescission of temporary employee compensation and benefit reductions as well as increased headcount due to our growth.
Interest expense decreased $0.7 million, or 6.4%, to $10.0 million for the three months ended June 30, 2011, compared to $10.7 million for the same period in 2010. We repurchased 99.2%, or $421.4 million, in aggregate principal amount of our 8.375% Notes due 2014 during the first quarter pursuant to a tender offer for the notes and simultaneously issued $475.0 million aggregate principal amount of 6.75% Notes due 2021, therefore decreasing interest expense due to the lower interest rate.
We recorded income tax expense of $20.8 million on pre-tax income of $57.2 million in the second quarter of 2011, compared to an income tax benefit of $5.9 million on a pre-tax loss of $16.9 million in the second quarter of 2010. Our effective tax rate was 36.4% for the three months ended June 30, 2011, compared to 34.8% for the three months ended June 30, 2010. Our effective tax rates for the periods differ from the U.S. statutory rate of 35% due to a number of factors, including the mix of profit and loss between various taxing jurisdictions and the impact of permanent items that affect book income but do not affect taxable income.
Depreciation and amortization expense increased $14.0 million, or 21.2%, to $79.8 million for the six months ended June 30, 2011, compared to $65.8 million for the six months ended June 30, 2010. The increase is primarily attributable to the increase in our fixed asset base through our acquisitions during 2010, as well as increased capital expenditures in 2010 and 2011.
General and administrative expenses increased $23.9 million, to $107.8 million (12.9% of revenues), for the six months ended June 30, 2011, compared to $83.9 million (16.1% of revenues) for the six months ended June 30, 2010. The increase for the first six months of 2011 was primarily due to an increase in employee compensation resulting from the rescission of temporary employee compensation and benefit reductions as well as increased headcount due to our growth. We also incurred additional professional fees related to acquisition activity.
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