Key Energy Services, Inc. provides Q2 2014 earnings

Key Energy Services, Inc. today provided the following updates for the second quarter 2014:

Key expects to report a second quarter 2014 loss in the range of US$ 0.14 - US$ 0.15, excluding goodwill and asset impairments and utilizing an effective tax rate of approximately 29%. Additionally:

Key expects its consolidated revenue to be down approximately 2% compared to the first quarter 2014; additionally, the Company expects its U.S. segment revenue to be approximately flat on a sequential basis as its production-driven businesses outside of California did not see sufficient activity increases to offset lower activity in California.

The Company expects to record a US$ 30 - US$ 35 million pre-tax charge for goodwill and other assets impairments related to its operations in Russia.

Pre-tax expenses of approximately US$ 5 million were incurred in connection with the previously disclosed Foreign Corrupt Practices Act investigations.

Redeployment and make-ready pre-tax costs of approximately US$ 2 million were incurred in association with the previously disclosed movement of rigs from Mexico to the US.

Pre-tax severance costs of approximately US$ 1 million were incurred in association with headcount reductions, primarily in Mexico.

Capital expenditures were US$ 41 million during the second quarter 2014; total debt at June 30, 2014 was US$ 719 million and the Company paid US$ 45 million towards its US$ 550 million senior secured credit facility leaving US$ 461 million undrawn.

Including an estimated goodwill and other assets impairments pre-tax charge of US$ 30 - US$ 35 million, Key expects to report a second quarter 2014 loss in the range of US$ 0.35 - US$ 0.38.

Adapted from a press release by David Bizley

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