KLX Energy Services Holdings Inc. (KLXE) Misses Q4 EPS by 55c, Revenues Beat

KLX Energy Services Holdings Inc. (NASDAQ: KLXE) reported Q4 EPS of ($3.69), $0.55 worse than the analyst estimate of ($3.14). Revenue for the quarter came in at $86.8 million versus the consensus estimate of $78.95 million.

Fiscal Fourth Quarter 2020 Highlights

• Revenue of $86.8 million increased $15.9 million, or 22.4% sequentially from the fiscal third quarter 2020
• Net loss of $30.5 million decreased $7.8 million, or 20.4% sequentially from the fiscal third quarter 2020
• Adjusted EBITDA loss of $2.6 million improved $2.8 million, compared to the fiscal third quarter 2020
• Ended the fiscal fourth quarter with $47.1 million in cash and $82.0 million in total liquidity
• As of April 2021, successfully integrated the QES merger and fully implemented at least $46.0 million of cost synergies

Chris Baker, President and Chief Executive Officer of KLXE, stated, "We are pleased to report that despite the overhanging issues brought about by COVID-19, we saw broad-based macroeconomic improvement that benefited all our business lines in our fiscal fourth quarter, and this is directly reflected in our financial results. 2020 fiscal fourth quarter revenues were up approximately 22% sequentially to $87 million and Adjusted EBITDA improved approximately $3 million.

"I'm also pleased to report that following the QES merger, the integration of our operations was successfully completed ahead of schedule," continued Baker. "With the closure of our Florida legacy corporate headquarters and the relocation of all key functions to Houston having been completed in the third quarter, we then undertook eliminating redundancies and duplicative functions throughout our operations in the fourth quarter. In May 2020, we stated that we expected to generate annualized cost synergies of $40.0 million within twelve months. As part of the integration process, during the third quarter, we identified additional cost savings and have now fully realized a total of $46.0 million in projected savings, approximately six months ahead of schedule. I'm very proud of the team and would like to thank the tireless efforts of our employees in bringing the integration to a successful conclusion.

"With our merger integration now largely complete, we return our focus on continuing to pursue organic margin enhancing initiatives and continuing to lead the effort to consolidate the oilfield service industry in 2021 and beyond," added Baker. "Given our history of successfully executing on mergers and acquisitions, we have shown that we can increase economies of scale, enhance operating efficiencies, and drive meaningful shareholder value through consolidation. It remains a fundamental part of our strategy to become a low-cost-structure provider of high-quality drilling, completion and production services.

"Turning to fiscal 2021, KLXE, like most of our peers, experienced a material slow down due to the unprecedented Winter Storm Uri and its aftermath in February. Despite the extremely challenging start to our fiscal first quarter, we believe we are well positioned to strongly rebound for the remainder of fiscal year 2021," concluded Baker.

For earnings history and earnings-related data on KLX Energy Services Holdings Inc. (KLXE) click here.

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