Key Energy Announces Record Earnings and EBITDA for Fourth Quarter and Fiscal 2001
MIDLAND, Texas--(BUSINESS WIRE)--Aug. 21, 2001--Key Energy Services, Inc. (NYSE: KEG) announced today that its financial and operating results for the quarter and fiscal year ended June 30, 2001 yielded the highest quarterly and annual net income and EBITDA in the Company's history and exceeded its prior June 2001 guidance.
Net income before extraordinary item for the quarter ended June 30, 2001 increased to approximately $26.1 million, or $0.25 per fully diluted share, compared to a loss of $1.3 million, or ($0.01) per fully diluted share, for the same period last year. Net income before extraordinary item for the fiscal year ended June 30, 2001 was approximately $62.3 million, or $0.61 per fully diluted share, compared to a loss of $20.6 million, or ($0.25) per fully diluted share, for the fiscal year ended June 30, 2000.
EBITDA for the June 2001 quarter reached record levels, rising to approximately $72.6 million, compared to approximately $34.7 million for the same period last year. EBITDA margins for the June 2001 quarter improved to approximately 29.0%, a 42.2% improvement over the 20.4% margin achieved in the June 2000 quarter. EBITDA for fiscal 2001 was approximately $232.3 million compared to approximately $116.6 million for fiscal 2000, an increase of nearly 100%.
The Company's strong operating performance enabled Key to greatly improve its balance sheet during the past year. As of August 21, 2001, net long-term funded debt decreased to $456.2 million, or 48.9% of total capitalization. This represents significant improvement from June 30, 2000 when net long-term funded debt totaled $534.8 million, or 58.3% of total capitalization. In addition, since March 31, 1999, the Company has reduced indebtedness by more than $386.0 million.
Prices for well service rigs and drilling rigs continued to increase during July 2001, with utilization of both remaining high and with backlogs at most of Key's 135 field locations. Key continued the most robust refurbishing program in industry history, having refurbished over 195 well service rigs during the past 18 months. In addition, the Company continued its significant investment in logistics technology systems which, when complete, will allow the Company to reduce operating costs through preventive maintenance programs, wireless communication and more efficient deployment of rigs and trucks.
Francis D. John, the Company's Chairman and Chief Executive Officer, stated, "The operating results of the past fiscal year and the vastly improved balance sheet clearly demonstrates the Company's industry-leading position. However, we are well aware that investors are focused more on the market outlook for the next 12 to 24 months. In that regard, we believe that oil and natural gas prices will remain at levels that will provide solid economic returns for oil and gas producers who will continue to provide strong demand for drilling and well service rigs and related equipment." |
