KLX Energy Services(KLXE) - 2025 Q1 - Quarterly Report

Revenue Performance - For the three months ended March 31, 2025, total revenue was $154.0 million, a decrease of$20.7 million or 11.8% compared to the same period in 2024[103]. - Revenue from the Rocky Mountains segment increased by $2.2 million or 4.8$4.2 million or 6.1%, attributed solely to a decrease in weighted average volume[103]. - The Northeast/Mid-Con segment revenue decreased by $18.7 million or 31.3$71.78 per barrel during the three months ended March 31, 2025, compared to $70.81 per barrel in the previous quarter[94]. - The company anticipates that customers will continue to cautiously allocate capital and operating expenses due to volatile commodity prices[96]. Financial Performance - For the quarter ended March 31, 2025, cost of sales was$123.8 million, representing 80.4% of sales, a decrease from 82.4% in the prior year period[104]. - Selling, general and administrative expenses (SG&A) were $21.6 million, or 14.0$17.7 million, compared to a loss of $13.1 million in the prior year, reflecting reduced activity and pricing[107]. - The net loss for the quarter was$27.9 million, an increase from a net loss of $22.2 million in the prior year, primarily due to lower revenues[110]. Liquidity and Capital Structure - As of March 31, 2025, the company had$14.6 million in cash and cash equivalents, with total liquidity of $58.1 million[111]. - The company completed a refinancing on March 12, 2025, issuing approximately$232.2 million in 2030 Senior Notes and exchanging $143.6 million of 2025 Senior Notes[115][126]. - The New ABL Facility has a commitment of$125.0 million and includes a first-in-last-out asset-based credit facility with a $10.0 million commitment[119]. - The effective interest rate under the New ABL Facility was approximately 9.06$231.0 million, with total debt related to these notes at $206.0 million after adjustments[132]. - The effective interest rate for the 2030 Senior Notes was approximately 12.83$15.0 million, an increase from $13.5 million in the same period of 2024, with expectations of total capital expenditures between$40.0 million and $50.0 million for the year ending December 31, 2025[137]. - Cash flows used in operating activities for the three months ended March 31, 2025, were approximately$37.6 million, compared to $10.8 million for the same period in 2024[143]. - The company had$14.6 million in cash and cash equivalents and $8.1 million in restricted cash as of March 31, 2025, reflecting a decrease of$68.9 million in cash on hand[144]. - Net cash used in financing activities was $21.1 million for the three months ended March 31, 2025, compared to$6.6 million for the same period in 2024, influenced by refinancing activities[148]. - The company sold 142,769 shares of common stock during the three months ended March 31, 2025, generating gross proceeds of approximately $0.5 million[141]. - The company expects to incur additional pari passu indebtedness of up to$150.0 million within twelve months of refinancing, subject to certain conditions[131]. - Total letters of credit outstanding under the New ABL Facility were $6.4 million as of March 31, 2025[133]. Strategic Initiatives - The company expects to continue pursuing strategic, accretive acquisitions to strengthen competitive positioning and drive efficiencies[85]. - The company has developed tools covered by 37 patents and 7 pending patent applications, enhancing its competitive edge in the market[90]. - The company is focused on maintaining a solid balance sheet and sufficient operating liquidity while managing capital expenditures prudently[101].