Earnings Review and Free Research Report: KLX’s Revenue Grew 13.6%; Adjusted EPS Soared 62.2%

Research Desk Line-up: American Outdoor Brands Post Earnings Coverage

LONDON, UK / ACCESSWIRE / September 13, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on KLX Inc. (NASDAQ: KLXI), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=KLX, following the Company’s posting of its second quarter fiscal 2017 financial results on August 23, 2017. The aerospace products and energy services Company met revenue expectations and provided an outlook for the fiscal year. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member’s account at:

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Get more of our free earnings reports coverage from other constituents of the Aerospace/Defense Products & Services industry. Pro-TD has currently selected American Outdoor Brands Corporation (NASDAQ: AOBC) for due-diligence and potential coverage as the Company announced on September 07, 2017, its financial results for Q1 FY18 which ended on July 31, 2017. Register for a free membership today, and be among the early birds that get access to our report on American Outdoor Brands when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on KLXI; also brushing on AOBC. With the links below you can directly download the report of your stock of interest free of charge at:

http://protraderdaily.com/optin/?symbol=KLXI

http://protraderdaily.com/optin/?symbol=AOBC

Earnings Reviewed

For the quarter ended July 31, 2017, KLX’s consolidated revenues grew 13.6% to $430.6 million compared to $378.9 million in Q2 2016; driven by organic revenue growth in the Aerospace Solutions Group segment (ASG) and 126.9% revenue growth in the Energy Services Group segment (ESG). The Company’s revenue number met analysts’ estimates of $430.6 million.

During Q2 2017, KLX’s consolidated operating earnings surged 61.4% to $52.3 million compared to $32.4 million in Q2 2016.

For Q2 2017, KLX recorded net earnings of $20.7 million, or $0.40 per diluted share, compared to net earnings of $8.0 million, or $0.15 per diluted share, in Q2 2016. The Company’s adjusted net earnings and adjusted net earnings per diluted share were $37.8 million and $0.73, representing increases of 60.9% and 62.2%, respectively, on a y-o-y basis. KLX’s earnings missed Wall Street’s estimates of $0.74 per share.

Segment Results

For the three months ended July 31, 2017, ASG’s revenues of $357.1 million increased 3.1% compared to $346.5 million in Q2 2016. The increase in revenues was driven by an approximate mid-single digit percentage increase in demand from commercial aerospace manufacturing customers, partially offset by a decrease in business jet and military manufacturing demand. The segment’s operating earnings of $60.1 million grew 7.5% from $55.9 million in the prior year’s comparable quarter on the 3.1% increase in revenues, as a result of a 70 basis point expansion in operating margin to 16.8%. ASG’s adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) for the reported quarter was $72.1 million, or 20.2% of revenues, up 8.3% on a y-o-y basis.

For Q2 2017, ESG’s revenues surged 126.9% to $73.5 million from $32.4 million in Q2 2016. The segment’s operating loss decreased 66.8% to $7.8 million compared to a loss of $23.5 million and adjusted EBITDA of $3.8 million improved by $15.9 million from negative adjusted EBITDA of $12.1 million.

Liquidity

For the six-month period ended July 31, 2017, KLX’s cash flow provided by operations was $53.3 million and reflects an increase in accounts receivable related to the 15.1% increase in consolidated revenues, as well as an increase in inventories associated with provisioning for new contract awards.

The Company’s capital expenditure was $32.6 million, reflecting significant investment related to the build-out of KLX’s new ASG global headquarters and discrete investments within the ESG business. As of July 31, 2017, the Company’s cash on hand was approximately $276 million. The Company’s total long-term debt of $1.2 billion less cash resulted in net debt of $924 million, and the Company’s net debt to net capital ratio was approximately 29%. There were no borrowings outstanding under the Company’s $750.0 million credit facility. KLX repurchased approximately $30 million of its common stock during H1 2017 at an average price of $49.05 per share.

Outlook

For FY17, KLX’s revenues are expected to increase approximately 17% to $1.75 billion. The Company’s operating earnings are expected to grow approximately 72% to $222 million. KLX’s adjusted net earnings are expected to increase approximately 68% to $157 million and adjusted net earnings per diluted share are expected to increase approximately 68% to $3.00 per diluted share.

For FY17, KLX’s ASG’s revenues are expected to increase by a high-single digit percentage, reflecting acceleration in growth in H2 2017. ESG’s revenues are expected to increase by more than 70% during the fiscal year.

Stock Performance

On Tuesday, September 12, 2017, the stock closed the trading session at $46.77, slightly slipping 0.21% from its previous closing price of $46.87. A total volume of 485.81 thousand shares have exchanged hands, which was higher than the 3-month average volume of 400.91 thousand shares. KLX Inc.’s stock price soared 2.97% in the past six months and 33.55% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have gained 3.68%. The stock is trading at a PE ratio of 33.87. At Tuesday’s closing price, the stock’s net capitalization stands at $2.43 billion.

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