KLX Inc.

CIK:0001617898|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME (UNAUDITED) - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jul. 31, 2018	Jul. 31, 2017	Jul. 31, 2018	Jul. 31, 2017
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME (UNAUDITED)
Product revenues	$ 409.3	$ 357.1	$ 797.4	$ 704.6
Service revenues	117.9	73.5	228.9	137.3
Total revenues	527.2	430.6	1,026.3	841.9
Cost of sales - products	291.8	248.3	569.5	490.8
Cost of sales - services	85.7	63.7	167.7	119.6
Total cost of sales	377.5	312.0	737.2	610.4
Selling, general and administrative	85.7	66.3	163.9	130.6
Operating earnings	64.0	52.3	125.2	100.9
Interest expense	18.9	19.0	37.8	38.0
Earnings before income taxes	45.1	33.3	87.4	62.9
Income tax expense	10.3	12.6	20.9	23.8
Net earnings	34.8	20.7	66.5	39.1
Other comprehensive (loss) income:
Foreign currency translation adjustment	(15.2)	30.5	(28.1)	35.3
Comprehensive income	$ 19.6	$ 51.2	$ 38.4	$ 74.4
Net earnings per share - basic	$ 0.69	$ 0.41	$ 1.33	$ 0.77
Net earnings per share - diluted	$ 0.68	$ 0.40	$ 1.30	$ 0.76
Weighted average common shares - basic	50.2	50.9	50.1	51.0
Weighted average common shares - diluted	51.0	51.7	51.0	51.7

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions	6 Months Ended
	Jul. 31, 2018	Jul. 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings	$ 66.5	$ 39.1
Adjustments to reconcile net earnings to net cash flows provided by operating activities:
Depreciation and amortization	38.0	33.0
Deferred income taxes	19.6	21.0
Non-cash compensation	10.3	13.0
Amortization of deferred financing fees	2.3	2.2
Provision for inventory reserve	6.7	9.1
Change in allowance for doubtful accounts and sales returns	(0.2)	4.8
Loss on disposal of property and equipment	0.5	0.5
Changes in operating assets and liabilities, net of effects from acquisitions:
Accounts receivable	(36.9)	(54.8)
Inventories	(16.8)	(25.6)
Other current and non-current assets		(13.7)
Accounts payable	37.9	19.4
Other current and non-current liabilities	0.3	5.3
Net cash flows provided by operating activities	128.2	53.3
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures	(52.7)	(32.6)
Acquisitions, net of cash acquired	(2.4)
Net cash flows used in investing activities	(55.1)	(32.6)
CASH FLOWS FROM FINANCING ACTIVITIES:
Purchase of treasury stock and other	(0.2)	(29.6)
Cash proceeds from stock issuance	1.2	1.0
Net cash flows provided by (used in) financing activities	1.0	(28.6)
Effect of foreign exchange rate changes on cash and cash equivalents	(6.7)	6.4
Net increase (decrease) in cash and cash equivalents	67.4	(1.5)
Cash and cash equivalents, beginning of period	255.3	277.3
Cash and cash equivalents, end of period	322.7	275.8
Cash paid during period for:
Income taxes paid, net of refunds	3.3	0.1
Interest	36.2	36.2
Supplemental schedule of non-cash activities:
Accrued property additions	$ 6.6	$ 6.1

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions	Jul. 31, 2018	Jan. 31, 2018
Current assets:
Cash and cash equivalents	$ 322.7	$ 255.3
Accounts receivable-trade, less allowance for doubtful accounts ($12.0 at July 31, 2018 and January 31, 2018)	353.1	316.1
Inventories, net	1,418.0	1,407.9
Other current assets	46.9	51.7
Total current assets	2,140.7	2,031.0
Property and equipment, net of accumulated depreciation ($210.4 at July 31, 2018 and $191.1 at January 31, 2018)	310.2	286.4
Goodwill	1,038.4	1,056.8
Identifiable intangible assets, net	295.8	308.6
Deferred income taxes	55.3	74.5
Other assets	35.7	32.7
Total assets	3,876.1	3,790.0
Current liabilities:
Accounts payable	217.6	180.8
Accrued liabilities	103.4	106.7
Total current liabilities	321.0	287.5
Long-term debt	1,185.9	1,184.6
Deferred income taxes	5.5	5.9
Other non-current liabilities	44.1	42.1
Commitments, contingencies and off-balance sheet arrangements (Note 9)
Stockholders' equity:
Preferred stock, $0.01 par value; 1.0 million shares authorized; no shares outstanding
Common stock, $0.01 par value; 250.0 million shares authorized; 54.6 million shares issued as of July 31, 2018 and January 31, 2018	0.5	0.5
Additional paid-in capital	2,768.8	2,756.5
Treasury stock: 3.8 million shares as of July 31, 2018 and January 31, 2018	(183.0)	(182.7)
Accumulated deficit	(214.2)	(280.0)
Accumulated other comprehensive loss	(52.5)	(24.4)
Total stockholders' equity	2,319.6	2,269.9
Total liabilities and equity	$ 3,876.1	$ 3,790.0