KLX Energy Services Holdings, Inc. (NASDAQ: KLXE) stumbled out of the gate Friday morning after reporting Q3 results.
The company, based in Wellington, Florida, reported Thursday that during the third quarter of 2018, management completed the merger of the Aerospace Solutions business of KLX Inc. with The Boeing Company (NYSE: BA), completed the spinoff of the Energy Services business into an independent public company, the amendment of its $100 million asset based lending facility, the issuance of $250 million of senior secured notes due 2025 and the acquisition of Motley Services, LLC, completed on November 5.
The Company incurred approximately $23 million of one-time costs associated with these activities and will therefore report both GAAP and adjusted financial results.
Revenues increased 38.1% to $123.2 million. Gross profit increased 101.2% to $33.0 million, or 26.8% of revenues. Adjusted operating earnings were $13.1 million, an increase of $14.9 million
Said CEO Amin Khoury, "We had an extraordinarily productive third quarter, with management completing the merger of the ASG business with The Boeing Company, spinning-off KLX’s Energy Services business into a public company…
"During this period, the Company also completed the establishment of all IT, legal, accounting, tax, treasury, risk management, internal audit and human resources functions to be able to operate as a stand-alone public company with robust financial and operating controls, and independent from our former parent, KLX Inc."
KLXE shares lost 33 cents, or 1.3%, to $24.90 Friday morning.
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