WELLINGTON, Fla., April 04, 2017 (GLOBE NEWSWIRE) -- KLX Inc. (the “Company”) (NASDAQ:KLXI), a leading distributor and value added service provider of aerospace fasteners and consumables, and a provider of services and products to the oil and gas exploration and production industry, today announced that the Company has filed a Form 12b-25, Notification of Late Filing with the U.S. Securities and Exchange Commission which automatically extends the deadline to file its Form 10-K (the “Fiscal 2016 Form 10-K”) for its fiscal year ended January 31, 2017 (“Fiscal 2016”) for fifteen calendar days. The Company expects that it will file its Form 10-K no later than the fifteenth day following the prescribed due date.
Although the Company’s analysis is still ongoing, the Company expects it will report that it had a material weakness in its internal controls associated with revenues related to a claim on a single end of program/end of life long-term contract, which expired on December 31, 2016 and which has now been replaced by a new long-term contract. There is no impact on the Company’s cash balances. The Company expects the receivables associated with this single end of contract claim to be recognized as revenue during 2017.
Primarily due to the issue described above, the Company expects it will report quarterly adjustments to revenues, earnings, receivables and inventory as well as adjustments to its full year results as compared to its March 7, 2017 news release. At this time, management believes any such adjustments will be immaterial both individually, and in the aggregate.
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements involve risks and uncertainties. The Company’s actual experience and results may differ materially from the experience and results anticipated in such statements. Factors that might cause such a difference include those discussed in the Company’s filings with the Securities and Exchange Commission (“SEC”), which include its Annual Report on Form 10-K and Current Reports on Form 8-K, as well as but not limited to, any further delay in the filing of the Fiscal 2016 Form 10-K, which, if longer than the fifteen calendar day extension period described above, would result in the suspension of the Company’s eligibility to use Form S-3 registration statements, which could increase the time and expense associated with accessing the capital markets, if the Company chooses to do so. For more information, see the section entitled “Forward -Looking Statements” contained in the Company’s Annual Report on Form 10-K and in other filings. The forward-looking statements included in this news release are made only as of the date of this news release and, except as required by federal securities laws and rules and regulations of the SEC, the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
About KLX Inc.
KLX Inc., through its two operating segments, provides mission critical products and complex logistical solutions to support its customers’ high value assets. KLX serves its customers in demanding environments that face high cost of downtime and require dependable, high quality just-in-time customer support. The Aerospace Solutions Group is a leading distributor and value added service provider of aerospace fasteners and consumables offering the broadest range of aerospace hardware and consumables and inventory management services worldwide. The Energy Services Group provides vital services and products to the oil and gas industry on an episodic, 24/7 basis. For more information, visit the KLX website at www.klx.com.