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 NEW BRUNSWICK, N.J., Feb. 1 /PRNewswire/ -- Key Energy Group, Inc. (AMEX: KEG) has announced that net income for the six months ended Dec. 31, 1992, was $5.2 million ($1.01 per share).
 Net income included extraordinary gains of $2.9 million and $1.9 million of income resulting from the company's successful reorganization, completed on Dec. 4, 1992.
 As reported on Dec. 7, 1992, Key Energy Group completed its Chapter 11 Pre-Packaged Plan of Reorganization. As a result, approximately $8.5 million of debt and 1.2 million shares of Preferred Stock with a redemption value of approximately $11.2 million was converted into common stock equity. In addition, the company successfully completed a common stock rights offering in which 970,000 shares of common stock were issued at $1.90 per share for approximately $1.8 million in cash. The company's shareholders' equity increased from a negative $5 million at June 30, 1992, to a positive $6.2 million as of Dec. 4, 1992. The company has 5.1 million common shares outstanding.
 Assuming the Pre-Packaged Bankruptcy Plan had occurred on July 1, 1992, the company would have reported income from continuing operations of $870,000 ($.17 per share) for the six months ended Dec. 31, 1992.
 Revenues were $6.1 million and $6.4 million for the quarters ended Sept. 30 and Dec. 31, 1992, respectively. Six-month revenues increased 19 percent from the comparable period ended Dec. 31, 1991.
 As a result of the consummation of the Pre-Packaged Plan, the company will issue a separate audited balance sheet as of Dec. 4, 1992, on a "fresh-start" reporting basis as required by GAAP. The company's much-improved, post-restructured balance sheet, is summarized as follows:
 Audited Audited
 (In millions) 6/30/92 12/4/92
 Cash and current assets $3.2 $5.8
 Long-term assets 9.0 10.3
 Total assets 12.2 16.1
 Current liabilities 5.3 5.3
 Long-term debt 11.9 4.6
 Stockholders' equity (5.0) 6.2
 Total liabilities and equity 12.2 16.1
 For the fiscal year ended June 30, 1992 (prior to the filing and completion of the Pre-Packaged Plan of Reorganization), the company reported income from continuing operations of $.4 million and net loss applicable to common stock of $.6 million. Both income from continuing operations and net loss included substantial changes related to the company's Pre-Packaged Plan of Reorganization required asset revaluation and write-off of discontinued operations assets.
 Francis D. John, president and chief executive officer, stated, "The company's equipment utilization has been very strong for the first half of the fiscal year, substantially ahead of the industry average for West Texas. The company has been very successful during the past six months with the completion of the Reorganization Plan while at the same time improving revenues and operating results."
 Key Energy provides oilfield well services for major and independent oil producers in West Texas.
 (In thousands, except per-share data)
 Periods ended Three months Six months
 Dec. 31 1992 1991 1992 1991
 Revenues $6,416 $5,283 $12,508 $10,545
 Costs and expenses 6,049 5,044 11,887 10,075
 Income before reorganization
 items, income taxes and
 extraordinary items 367 239 621 470
 Reorganization items:
 Reorganization costs (150) --- (150) ---
 Adjust accounts to fair value 1,868 --- 1,868 ---
 Income before income taxes and
 extraordinary items 2,085 239 2,339 470
 Income tax expense 18 81 30 160
 Income before extraordinary
 items 2,067 158 2,309 310
 Extraordinary gain on discharge
 of prepetition liabilities 2,868 --- 2,868 ---
 Extraordinary tax credits --- 73 --- 144
 Net income 4,935 231 5,177 454
 Preferred stock dividends --- 50 --- 151
 Net income applicable
 to common stock 4,935 181 5,177 303
 Earnings per common share:
 Income from continuing
 operations before
 extraordinary items $.07 $.01 $.12 $.01
 Income (loss) before
 extraordinary items .40 .01 .45 .01
 Net income .96 .01 1.01 .02
 Assuming full dilution:
 Income from continuing
 operations before
 extraordinary items .07 .00(A) .12 .00(A)
 Income (loss) before
 extraordinary items .40 .00(A) .45 .00(A)
 Net income .96 .01 1.01 .01
 Average common shares outstanding:
 Primary 5,124 15,524 5,124 15,120
 Assuming full dilution 5,138 36,010 5,138 35,606
 (A) Earnings per common share less than $.01.
 -0- 2/1/93
 /CONTACT: Diane Mack of Key Energy Group, 908-247-4822/

CO: Key Energy Group, Inc. ST: New Jersey, Texas IN: SU: ERN

MK-LJ -- PH012 -- 1294 02/01/93 10:57 EST
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Publication:PR Newswire
Date:Feb 1, 1993

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