KLX Energy Services Holdings Inc. (KLXE) Misses Q1 EPS by $2.09, Revenues Miss

KLX Energy Services Holdings Inc. (NASDAQ: KLXE) reported Q1 EPS of ($4.41), $2.09 worse than the analyst estimate of ($2.32). Revenue for the quarter came in at $90.8 million versus the consensus estimate of $95.1 million.

Fiscal First Quarter 2021 Highlights

• Fiscal first quarter 2021 revenue of $90.8 million increased $4.0 million, or 4.6%, sequentially from the fiscal fourth quarter 2020
• Fiscal first quarter 2021 net loss was $36.8 million compared to $30.5 million for the fiscal fourth quarter 2020
• Fiscal first quarter 2021 net loss and Adjusted EBITDA loss were primarily driven by "white space" on the calendar resulting from Winter Storm Uri and customer scheduling issues
• Ended fiscal first quarter 2021 with $37.9 million in cash and a liquidity position of $79.3 million

Chris Baker, President and Chief Executive Officer of KLXE, stated, "While our fiscal first quarter 2021 results were down due to Winter Storm Uri and customer scheduling issues, we were able to identify an additional $4.4 million in cost savings during the quarter. This $4.4 million in cost savings is on top of the $46.0 million in synergies that we have already achieved since closing the Quintana Energy Services ("QES") merger (the "Merger") last year, and the incremental savings will begin benefiting our fiscal second quarter results and beyond.

"Looking forward, we expect stronger results in the second quarter and further improvement through the balance of the year. This is supported by higher activity levels and slightly improved pricing across many of our service lines, which is estimated to result in a sequential increase in fiscal second quarter revenue between 15% to 20%. Combining the recovering top line with the full impact of the $46.0 million in annualized merger synergies, the incremental $4.4 million in annualized cost savings, and modest pricing improvement, we believe we will return to breakeven Adjusted EBITDA in the fiscal second quarter 2021 for the first time since pre-Covid," concluded Baker.

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

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