Key Energy Services Inc. (KEG, Financial) filed Annual Report for the period ended 2011-12-31.
Key Energy Svcs has a market cap of $2.69 billion; its shares were traded at around $17.06 with a P/E ratio of 19.6 and P/S ratio of 1.5.
General and administrative expenses increased $39.8 million, or 20.1%, to $238.1 million (12.9% of revenues) for the year ended December 31, 2011, compared to $198.3 million (17.2% of revenues) for the year ended December 31, 2010. Our general and administrative expenses increased due to an increase in employee compensation resulting from the rescission of temporary employee compensation and benefit reductions late in 2010 as well as increased headcount due to our growth.
Interest expense increased $0.6 million to $42.5 million (2.3% of revenues), for the year ended December 31, 2011, compared to $42.0 million (3.6% of revenues) for the same period in 2010. Overall, interest rates on our debt declined during 2011 due to the replacement of the 2014 Notes with our 6.75% Senior Notes due 2021 (the 2021 Notes) during the first quarter of 2011. However, this rate decline was offset by additional interest expense due to a greater aggregate principal amount outstanding of the 2021 Notes and additional borrowings under our amended 2011 Credit Facility (as defined below) to fund the acquisition of Edge.
Our direct operating expenses increased $159.1 million, or 23.5%, to $835.0 million (72.4% of revenues) for the year ended December 31, 2010, compared to $675.9 million (70.7% of revenues) for the year ended December 31, 2009 as a direct result of activity increases in our business as well as inflation in our operating costs. See Segment Operating Results Year Ended December 31, 2010 and 2009 below for a more detailed discussion of the change in our direct operating expenses.
Operating expenses for Functional Support increased $17.0 million, or 13.5%, to $142.8 million (7.7% of consolidated revenues) for the year ended December 31, 2011 compared to $125.7 million (10.9% of consolidated revenues) for the year ended December 31, 2010. The increase in costs relates to the reinstatement in late 2010 of certain employee compensation and benefits that had been suspended in 2009 as part of our cost savings effort.
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Key Energy Svcs has a market cap of $2.69 billion; its shares were traded at around $17.06 with a P/E ratio of 19.6 and P/S ratio of 1.5.
Highlight of Business Operations:
Our direct operating expenses increased $362.1 million, or 43.4%, to $1.2 billion (64.8% of revenues) for the year ended December 31, 2011, compared to $835.0 million (72.4% of revenues) for the year ended December 31, 2010 as a direct result of increased business activity as well as inflation in our operating costs. See Segment Operating Results Year Ended December 31, 2011 and 2010 below for a more detailed discussion of the change in our direct operating expenses.General and administrative expenses increased $39.8 million, or 20.1%, to $238.1 million (12.9% of revenues) for the year ended December 31, 2011, compared to $198.3 million (17.2% of revenues) for the year ended December 31, 2010. Our general and administrative expenses increased due to an increase in employee compensation resulting from the rescission of temporary employee compensation and benefit reductions late in 2010 as well as increased headcount due to our growth.
Interest expense increased $0.6 million to $42.5 million (2.3% of revenues), for the year ended December 31, 2011, compared to $42.0 million (3.6% of revenues) for the same period in 2010. Overall, interest rates on our debt declined during 2011 due to the replacement of the 2014 Notes with our 6.75% Senior Notes due 2021 (the 2021 Notes) during the first quarter of 2011. However, this rate decline was offset by additional interest expense due to a greater aggregate principal amount outstanding of the 2021 Notes and additional borrowings under our amended 2011 Credit Facility (as defined below) to fund the acquisition of Edge.
Our direct operating expenses increased $159.1 million, or 23.5%, to $835.0 million (72.4% of revenues) for the year ended December 31, 2010, compared to $675.9 million (70.7% of revenues) for the year ended December 31, 2009 as a direct result of activity increases in our business as well as inflation in our operating costs. See Segment Operating Results Year Ended December 31, 2010 and 2009 below for a more detailed discussion of the change in our direct operating expenses.
Operating expenses for Functional Support increased $17.0 million, or 13.5%, to $142.8 million (7.7% of consolidated revenues) for the year ended December 31, 2011 compared to $125.7 million (10.9% of consolidated revenues) for the year ended December 31, 2010. The increase in costs relates to the reinstatement in late 2010 of certain employee compensation and benefits that had been suspended in 2009 as part of our cost savings effort.
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