Key Energy Services Inc. (KEG, Financial) filed Quarterly Report for the period ended 2012-06-30.
Key Energy Services, Inc. has a market cap of $1.25 billion; its shares were traded at around $7.77 with a P/E ratio of 8 and P/S ratio of 0.7.
Operating expenses for Functional Support, which represent expenses associated with managing our U.S. and International operating segments, increased $4.5 million, or 13.6%, to $37.1 million (7.2% of consolidated revenues) for the three months ended June 30, 2012 compared to $32.7 million (7.9% of consolidated revenues) for the same period in 2011. The increase in costs primarily relates to higher consulting and legal fees. In addition, prior year expenses were offset by a legal settlement of $5.5 million.
We recorded income tax expense of $36.2 million on pre-tax income from continuing operations of $101.4 million for the six months ended June 30, 2012, compared to income tax expense of $11.6 million on pre-tax income from continuing operations of $35.2 million for the six months ended June 30, 2011. Our effective tax rate on continuing operations was 35.7% for the six months ended June 30, 2012, compared to 33.0% for the six months ended June 30, 2011. 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.
Operating expenses for Functional Support, which represent expenses associated with managing our U.S. and International operating segments, increased $9.4 million, or 14.2%, to $75.8 million (7.6% of consolidated revenues) for the six months ended June 30, 2012 compared to $66.4 million (8.5% of consolidated revenues) for the same period in 2011. The increase in costs primarily relates to higher legal and professional fees. In addition, prior year expenses were offset by a legal settlement of $5.5 million.
As of June 30, 2012, we had cash and cash equivalents of $28.3 million. Our adjusted working capital (working capital excluding the current portion of capital lease obligations) was $287.3 million as of June 30, 2012, compared to $312.8 million as of December 31, 2011. Our adjusted working capital decreased from the prior year end primarily as a result of higher accrued expenses and accounts payable related to increased activity. Partially offsetting the impact of increases in liabilities were higher accounts receivable due to incremental revenue and activity in oil markets during the six months ended June 30, 2012. Our total outstanding debt (including capital leases) was $874.5 million, and we have no significant debt maturities until 2016. As of June 30, 2012, we have $190.0 million in borrowings and $59.0 million in committed letters of credit outstanding under our 2011 Credit Facility (defined below), leaving $301.0 million of available borrowing capacity.
Read the The complete Report
Key Energy Services, Inc. has a market cap of $1.25 billion; its shares were traded at around $7.77 with a P/E ratio of 8 and P/S ratio of 0.7.
Highlight of Business Operations:
We recorded income tax expense of $17.4 million on pre-tax income from continuing operations of $49.1 million in the second quarter of 2012, compared to income tax expense of $20.8 million on pre-tax income from continuing operations of $61.2 million in the second quarter of 2011. Our effective tax rate on continuing operations was 35.5% for the three months ended June 30, 2012, compared to 34.0% for the three months ended June 30, 2011. 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.Operating expenses for Functional Support, which represent expenses associated with managing our U.S. and International operating segments, increased $4.5 million, or 13.6%, to $37.1 million (7.2% of consolidated revenues) for the three months ended June 30, 2012 compared to $32.7 million (7.9% of consolidated revenues) for the same period in 2011. The increase in costs primarily relates to higher consulting and legal fees. In addition, prior year expenses were offset by a legal settlement of $5.5 million.
We recorded income tax expense of $36.2 million on pre-tax income from continuing operations of $101.4 million for the six months ended June 30, 2012, compared to income tax expense of $11.6 million on pre-tax income from continuing operations of $35.2 million for the six months ended June 30, 2011. Our effective tax rate on continuing operations was 35.7% for the six months ended June 30, 2012, compared to 33.0% for the six months ended June 30, 2011. 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.
Operating expenses for Functional Support, which represent expenses associated with managing our U.S. and International operating segments, increased $9.4 million, or 14.2%, to $75.8 million (7.6% of consolidated revenues) for the six months ended June 30, 2012 compared to $66.4 million (8.5% of consolidated revenues) for the same period in 2011. The increase in costs primarily relates to higher legal and professional fees. In addition, prior year expenses were offset by a legal settlement of $5.5 million.
As of June 30, 2012, we had cash and cash equivalents of $28.3 million. Our adjusted working capital (working capital excluding the current portion of capital lease obligations) was $287.3 million as of June 30, 2012, compared to $312.8 million as of December 31, 2011. Our adjusted working capital decreased from the prior year end primarily as a result of higher accrued expenses and accounts payable related to increased activity. Partially offsetting the impact of increases in liabilities were higher accounts receivable due to incremental revenue and activity in oil markets during the six months ended June 30, 2012. Our total outstanding debt (including capital leases) was $874.5 million, and we have no significant debt maturities until 2016. As of June 30, 2012, we have $190.0 million in borrowings and $59.0 million in committed letters of credit outstanding under our 2011 Credit Facility (defined below), leaving $301.0 million of available borrowing capacity.
Read the The complete Report
