|
![]() |
| |
![]() |
|
|
Thomas P. McCaffrey
President, Chief Executive Officer and Chief Financial Officer KLX Energy Services Holdings, Inc. |
| |
Christopher J. Baker
President and Chief Executive Officer Quintana Energy Services Inc. |
|
| |
Your vote is very important. KLXE stockholders are requested to complete, date, sign and return the enclosed proxy card in the envelope provided, which requires no postage if mailed in the United States.
|
| |
| |
Your vote is very important. QES stockholders are requested to complete, date, sign and return the enclosed proxy card in the envelope provided, which requires no postage if mailed in the United States, or to submit their votes electronically through the Internet or by telephone.
|
| |
|
For KLXE stockholders:
|
| |
For QES stockholders:
|
|
|
KLX Energy Services Holdings, Inc.
1300 Corporate Center Way Wellington, Florida 33414 (561) 383-5100 Attention: Corporate Secretary |
| |
Quintana Energy Services Inc.
1415 Louisiana, Suite 2900 Houston, TX 77002 (832) 518-4094 Attention: Corporate Secretary |
|
|
Georgeson LLC
1290 Avenue of the Americas, 9th Floor New York, NY 10104 Stockholders, banks and brokers may call toll free: 1-800-509-1312 Or (781) 575-2137 (for all those outside of the U.S.) |
| | | |
| | |
Page
|
| |||
| | | | i | | | |
| | | | 1 | | | |
| | | | 1 | | | |
| | | | 1 | | | |
| | | | 2 | | | |
| | | | 2 | | | |
| | | | 3 | | | |
| | | | 3 | | | |
| | | | 4 | | | |
| | | | 4 | | | |
| | | | 5 | | | |
| | | | 5 | | | |
| | | | 6 | | | |
| | | | 7 | | | |
| | | | 7 | | | |
| | | | 8 | | | |
| | | | 8 | | | |
| | | | 8 | | | |
| | | | 9 | | | |
| | | | 9 | | | |
| | | | 10 | | | |
| | | | 10 | | | |
| | | | 10 | | | |
| | | | 12 | | | |
| | | | 12 | | | |
| | | | 13 | | | |
| | | | 13 | | | |
| | | | 14 | | | |
| | | | 15 | | | |
| | | | 15 | | | |
| | | | 16 | | | |
| | | | 16 | | | |
| | | | 16 | | | |
| | | | 16 | | | |
| | | | 16 | | | |
| | | | 16 | | | |
| | | | 17 | | | |
| | | | 17 | | | |
| | | | 17 | | |
| | |
Page
|
| |||
| | | | 17 | | | |
| | | | 17 | | | |
| | | | 18 | | | |
| | | | 19 | | | |
| | | | 22 | | | |
| | | | 24 | | | |
| | | | 25 | | | |
| | | | 27 | | | |
| | | | 28 | | | |
| | | | 28 | | | |
| | | | 35 | | | |
| | | | 36 | | | |
| | | | 44 | | | |
| | | | 44 | | | |
| | | | 45 | | | |
| | | | 47 | | | |
| | | | 47 | | | |
| | | | 47 | | | |
| | | | 47 | | | |
| | | | 48 | | | |
| | | | 49 | | | |
| | | | 49 | | | |
| | | | 49 | | | |
| | | | 49 | | | |
| | | | 50 | | | |
| | | | 50 | | | |
| | | | 50 | | | |
| | | | 51 | | | |
| | | | 51 | | | |
| | | | 52 | | | |
| | | | 52 | | | |
| | | | 52 | | | |
| | | | 53 | | | |
| | | | 53 | | | |
| | | | 54 | | | |
| | | | 54 | | | |
| | | | 54 | | | |
| | | | 54 | | | |
| | | | 54 | | | |
| | |
|
| | ||
| | | | 55 | | |
| | |
Page
|
| |||
| | |
|
| | ||
| | | | 57 | | | |
| | | | 57 | | | |
| | | | 57 | | | |
| | | | 57 | | | |
| | | | 59 | | | |
| | | | 59 | | | |
| | | | 60 | | | |
| | | | 60 | | | |
| | | | 60 | | | |
| | |
|
| | ||
| | | | 62 | | | |
| | | | 63 | | | |
| | | | 64 | | | |
| | | | 65 | | | |
| | | | 65 | | | |
| | | | 67 | | | |
| | | | 69 | | | |
| | |
|
| | ||
| | | | 70 | | | |
| | | | 71 | | | |
| | |
|
| | ||
| | | | 74 | | | |
| | | | 75 | | | |
| | | | 75 | | | |
| | | | 76 | | | |
| | | | 76 | | | |
| | | | 78 | | | |
| | | | 79 | | | |
| | |
|
| | ||
| | | | 80 | | | |
| | | | 81 | | | |
| | | | 81 | | | |
| | | | 81 | | | |
| | | | 81 | | | |
| | | | 81 | | | |
| | |
|
| | ||
| | | | 83 | | |
| | |
Page
|
| |||
| | | | 84 | | | |
| | | | 84 | | | |
| | | | 84 | | | |
| | | | 84 | | | |
| | | | 84 | | | |
| | | | 85 | | | |
| | | | 85 | | | |
| | | | 85 | | | |
| | | | 85 | | | |
| | | | 86 | | | |
| | | | 86 | | | |
| | | | 86 | | | |
| | | | 87 | | | |
| | | | 87 | | | |
| | | | 88 | | | |
| | | | 88 | | | |
| | | | 88 | | | |
| | | | 88 | | | |
| | | | 88 | | | |
| | |
|
| | ||
| | | | 89 | | | |
| | |
|
| | ||
| | | | 90 | | | |
| | | | 91 | | | |
| | | | 91 | | | |
| | | | 91 | | | |
| | | | 99 | | | |
| | | | 102 | | | |
| | | | 105 | | | |
| | | | 114 | | | |
| | | | 118 | | | |
| | | | 126 | | | |
| | | | 126 | | | |
| | | | 126 | | | |
| | | | 127 | | | |
| | | | 127 | | | |
| | | | 129 | | | |
| | | | 133 | | | |
| | | | 133 | | | |
| | | | 133 | | | |
| | | | 134 | | | |
| | | | 134 | | | |
| | | | 134 | | |
| | |
Page
|
| |||
| | | | 136 | | | |
| | | | 136 | | | |
| | | | 136 | | | |
| | | | 136 | | | |
| | | | 137 | | | |
| | | | 137 | | | |
| | | | 138 | | | |
| | | | 139 | | | |
| | | | 139 | | | |
| | | | 139 | | | |
| | | | 140 | | | |
| | | | 140 | | | |
| | | | 140 | | | |
| | | | 143 | | | |
| | | | 153 | | | |
| | | | 154 | | | |
| | | | 157 | | | |
| | | | 157 | | | |
| | | | 157 | | | |
| | | | 157 | | | |
| | | | 158 | | | |
| | | | 159 | | | |
| | | | 160 | | | |
| | | | 163 | | | |
| | | | 163 | | | |
| | | | 163 | | | |
| | | | 164 | | | |
| | | | 164 | | | |
| | | | 166 | | | |
| | | | 166 | | | |
| | | | 166 | | | |
| | | | 166 | | | |
| | | | 167 | | | |
| | | | 167 | | | |
| | | | 168 | | | |
| | | | 168 | | | |
| | | | 168 | | | |
| | | | 168 | | | |
| | | | 169 | | | |
| | | | 179 | | | |
| | | | 179 | | | |
| | | | 179 | | | |
| | | | 180 | | |
| | |
Page
|
| |||
| | | | 182 | | | |
| | | | 182 | | | |
| | | | 182 | | | |
| | | | 182 | | | |
| | | | 182 | | | |
| | | | 184 | | | |
| | | | 185 | | | |
| | | | 185 | | | |
| | | | 185 | | | |
| | | | 187 | | | |
| | | | 205 | | | |
| | | | 207 | | | |
| | | | 210 | | | |
| | | | 211 | | | |
| | | | 211 | | | |
| | | | 212 | | | |
| | | | 212 | | | |
| | | | 212 | | | |
| | | | 213 | | | |
| | |
|
| | ||
| | | | 214 | | | |
| | |
|
| | ||
| | |
|
| | ||
| | |
|
| | ||
| | |
|
| | ||
| | |
|
| | ||
| | |
|
| | ||
| | |
|
| | ||
| | |
|
| | ||
| | |
|
| | ||
| | |
|
| | ||
| | |
|
| | ||
| | |
|
| | ||
| | |
|
| | ||
| | |
|
| | ||
| | |
|
| | ||
| | |
|
| |
| | |
Page
|
| |||
| | |
|
| | ||
| | |
|
| | ||
| | |
|
| | ||
| | |
|
| | ||
| | |
|
| | ||
| | |
|
| |
|
if you are a KLXE stockholder, to:
|
| |
if you are a QES stockholder, to:
|
|
|
KLX Energy Services Holdings, Inc.
Attn: Corporate Secretary 1300 Corporate Center Way Wellington, Florida 33414 |
| |
Quintana Energy Services Inc.
Attn: Corporate Secretary 1415 Louisiana, Suite 2900 Houston, TX 77002 |
|
|
For KLXE stockholders:
|
| |
For QES stockholders:
|
|
|
KLX Energy Services Holdings, Inc.
1300 Corporate Center Way Wellington, Florida 33414 (561) 383-5100 Attention: Corporate Secretary |
| |
Quintana Energy Services Inc.
1415 Louisiana, Suite 2900 Houston, TX 77002 (832) 518-4094 Attention: Corporate Secretary |
|
|
Georgeson LLC
1290 Avenue of the America’s, 9th Floor New York, NY 10104 Stockholders, banks and brokers may call toll free: 1-800-509-1312 Or (781) 575-2137 (for all those outside of the U.S.) |
| |
| | |
Three Months Ended
|
| |
Year Ended
|
| ||||||||||||||||||||||||||||||||||||
| | |
April 30,
2020 |
| |
April 30,
2019 |
| |
January 31,
2020 |
| |
January 31,
2019 |
| |
January 31,
2018 |
| |
January 31,
2017 |
| |
January 31,
2016 |
| |||||||||||||||||||||
Statements of Earnings Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Service revenues
|
| | | $ | 83.0 | | | | | $ | 145.8 | | | | | $ | 544.0 | | | | | $ | 495.3 | | | | | $ | 320.5 | | | | | $ | 152.2 | | | | | $ | 251.2 | | |
Cost of sales(1)
|
| | | | 92.2 | | | | | | 118.9 | | | | | | 470.0 | | | | | | 370.4 | | | | | | 269.1 | | | | | | 181.3 | | | | | | 282.8 | | |
Selling, general and administrative(1)
|
| | | | 17.4 | | | | | | 23.8 | | | | | | 100.0 | | | | | | 100.4 | | | | | | 73.4 | | | | | | 60.1 | | | | | | 78.5 | | |
Research and development costs
|
| | | | 0.3 | | | | | | 0.7 | | | | | | 2.7 | | | | | | 2.4 | | | | | | 2.0 | | | | | | 0.3 | | | | | | — | | |
Goodwill impairment charge(2)(3)(4)
|
| | | | 28.3 | | | | | | — | | | | | | 47.0 | | | | | | — | | | | | | — | | | | | | — | | | | | | 310.4 | | |
Long-lived asset impairment charge(2)(4)
|
| | | | 180.4 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 329.8 | | |
Operating (loss) earnings
|
| | | | (235.6) | | | | | | 2.4 | | | | | | (75.7) | | | | | | 22.1 | | | | | | (24.0) | | | | | | (89.5) | | | | | | (750.3) | | |
Interest expense, net
|
| | | | 7.4 | | | | | | 7.1 | | | | | | 29.2 | | | | | | 7.1 | | | | | | — | | | | | | — | | | | | | — | | |
(Loss) earnings before income taxes
|
| | | | (243.0) | | | | | | (4.7) | | | | | | (104.9) | | | | | | 15.0 | | | | | | (24.0) | | | | | | (89.5) | | | | | | (750.3) | | |
Income tax (benefit) expense
|
| | | | 0.1 | | | | | | 0.3 | | | | | | (8.5) | | | | | | 0.6 | | | | | | 0.1 | | | | | | 0.1 | | | | | | 0.1 | | |
Net (loss) earnings
|
| | | $ | (243.1) | | | | | $ | (5.0) | | | | | $ | (96.4) | | | | | $ | 14.4 | | | | | $ | (24.1) | | | | | $ | (89.6) | | | | | $ | (750.4) | | |
Basic net (loss) earnings per share(5):
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net (loss) earnings
|
| | | $ | (10.52) | | | | | $ | (0.24) | | | | | $ | (4.32) | | | | | $ | 0.72 | | | | | $ | (1.20) | | | | | $ | (4.46) | | | | | $ | (37.33) | | |
Weighted average common shares
|
| | | $ | (10.52) | | | | | $ | (0.24) | | | | | | 22.3 | | | | | | 20.1 | | | | | | 20.1 | | | | | | 20.1 | | | | | | 20.1 | | |
Diluted net (loss) earnings per share(5):
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Balance Sheet Data (end of period):
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Working capital
|
| | | $ | 141.0 | | | | | $ | 163.7 | | | | | $ | 163.7 | | | | | $ | 223.1 | | | | | $ | 38.1 | | | | | $ | 14.8 | | | | | $ | 9.0 | | |
Goodwill, intangible and other assets, net
|
| | | | 15.7 | | | | | | 141.8 | | | | | | 88.1 | | | | | | 92.6 | | | | | | 8.2 | | | | | | 3.6 | | | | | | 6.1 | | |
Total assets
|
| | | | 378.2 | | | | | | 732.1 | | | | | | 623.4 | | | | | | 672.8 | | | | | | 273.8 | | | | | | 205.0 | | | | | | 234.8 | | |
Long-term debt
|
| | | | 243.2 | | | | | | 242.3 | | | | | | 243.0 | | | | | | 242.2 | | | | | | — | | | | | | — | | | | | | — | | |
Stockholders’ equity
|
| | | | 68.1 | | | | | | 387.2 | | | | | | 312.2 | | | | | | 340.7 | | | | | | 224.6 | | | | | | 178.0 | | | | | | 192.1 | | |
Other Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Depreciation and amortization
|
| | | | 16.2 | | | | | | 14.8 | | | | | | 64.1 | | | | | | 41.5 | | | | | | 33.5 | | | | | | 36.2 | | | | | | 46.6 | | |
| | |
Three Months Ended
|
| |
Year Ended
|
| ||||||||||||||||||||||||
| | |
March 31,
2020 |
| |
March 31,
2019 |
| |
December 31,
2019 |
| |
December 31,
2018 |
| |
December 31,
2017 |
| |||||||||||||||
Statement of Operations Data | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenues:
|
| | | $ | 92.8 | | | | | $ | 141.7 | | | | | $ | 484.3 | | | | | $ | 604.4 | | | | | $ | 438.0 | | |
Costs and expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Direct operating costs
|
| | | | 81.5 | | | | | | 121.6 | | | | | | 411.7 | | | | | | 503.0 | | | | | | 361.5 | | |
General and administrative
|
| | | | 12.1 | | | | | | 15.7 | | | | | | 55.1 | | | | | | 62.8 | | | | | | 44.0 | | |
Depreciation and amortization
|
| | | | 9.9 | | | | | | 12.4 | | | | | | 49.5 | | | | | | 46.7 | | | | | | 45.7 | | |
Gain on disposition of assets
|
| | | | (.03) | | | | | | (.02) | | | | | | (1.9) | | | | | | (2.4) | | | | | | (2.6) | | |
Impairment and other charges
|
| | | | 9.3 | | | | | | — | | | | | | 41.6 | | | | | | — | | | | | | — | | |
Operating loss
|
| | | | (19.9) | | | | | | (8.0) | | | | | | (71.7) | | | | | | (5.7) | | | | | | (10.5) | | |
Non-operating loss expense: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense
|
| | | | (0.73) | | | | | | (.67) | | | | | | (3.2) | | | | | | (11.8) | | | | | | (11.3) | | |
Other (expense) income
|
| | | | — | | | | | | — | | | | | | (0.04) | | | | | | — | | | | | | 0.7 | | |
Loss before income tax
|
| | | | (20.6) | | | | | | (8.7) | | | | | | (75.0) | | | | | | (17.6) | | | | | | (21.1) | | |
Income tax expense
|
| | | | (.08) | | | | | | (.18) | | | | | | (0.4) | | | | | | (0.6) | | | | | | (0.1) | | |
Net loss
|
| | | $ | (20.7) | | | | | $ | (8.9) | | | | | $ | (75.4) | | | | | $ | (18.1) | | | | | $ | (21.2) | | |
Balance Sheet Data
|
| |
March 31,
2020 |
| |
March 31,
2019 |
| |
December 31,
2019 |
| |
December 31,
2018 |
| |
December 31,
2017 |
| |||||||||||||||
Cash and cash equivalents
|
| | | $ | 23.2 | | | | | $ | 20.9 | | | | | $ | 14.7 | | | | | $ | 13.8 | | | | | $ | 8.8 | | |
Total current assets
|
| | | | 118.3 | | | | | | 156.5 | | | | | | 118.0 | | | | | | 160.1 | | | | | | 133.9 | | |
Total assets
|
| | | | 228.4 | | | | | | 345.7 | | | | | | 240.5 | | | | | | 324.6 | | | | | | 275.7 | | |
Total liabilities
|
| | | | 115.5 | | | | | | 151.4 | | | | | | 108.3 | | | | | | 122.7 | | | | | | 190.7 | | |
Total shareholders’ equity
|
| | | | 112.9 | | | | | | 194.3 | | | | | | 132.3 | | | | | | 201.8 | | | | | | 85.0 | | |
(in millions, except per share amounts)
|
| |
Three Months
Ended April 30, 2020 |
| |
Year Ended
January 31, 2020 |
| ||||||
Pro Forma Condensed Combined Statement of Loss Data: | | | | | | | | | | | | | |
Service revenues
|
| | | $ | 175.8 | | | | | $ | 1,028.3 | | |
Net loss
|
| | | $ | (262.3) | | | | | $ | (168.0) | | |
Net loss per share, basic
|
| | | $ | (63.98) | | | | | $ | (42.00) | | |
Net loss per share, diluted
|
| | | $ | (63.98) | | | | | $ | (42.00) | | |
(in millions)
|
| |
As of
April 30, 2020 |
| |||
Pro Forma Condensed Combined Balance Sheet Data: | | | | | | | |
Cash and cash equivalents
|
| | | $ | 116.8 | | |
Total assets
|
| | | $ | 563.9 | | |
Total liabilities
|
| | | $ | 390.7 | | |
Total stockholders’ equity
|
| | | $ | 173.2 | | |
| | |
Three Months Ended April 30, 2020
|
| |||||||||||||||||||||
| | |
KLXE
Historical(1) |
| |
QES
Historical(2) |
| |
Pro Forma
Combined |
| |
Pro Forma
Equivalent(3) |
| ||||||||||||
| | | | | | | | | | | | | | |
(unaudited)
|
| |
(unaudited)
|
| ||||||
Net Loss Per Share
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | $ | (10.52) | | | | | $ | (0.62) | | | | | $ | (63.98) | | | | | $ | (31.99) | | |
Diluted
|
| | | $ | (10.52) | | | | | $ | (0.62) | | | | | $ | (63.98) | | | | | $ | (31.99) | | |
Book Value Per Share
|
| | | $ | 3.0 | | | | | $ | 3.4 | | | | | $ | 42.0 | | | | | $ | 20.4 | | |
Cash Dividends Per Share
|
| | | $ | — | | | |