KLX Energy Services (KLXE) 10-Q 22 Aug 19 2019 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jul. 31, 2019	Aug. 19, 2019
Document And Entity Information
Document Type	10-Q
Document Period End Date	Jul. 31, 2019
Entity Registrant Name	KLX Energy Services Holdings, Inc.
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		23,604,867
Current Fiscal Year End Date	--01-31
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Entity Central Index Key	0001738827
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Jul. 31, 2019	Jan. 31, 2019
Current assets:
Cash and cash equivalents	$ 92.4	$ 163.8
Accounts receivable–trade, less allowance for doubtful accounts ($4.9 at Julyl 31, 2019 and $3.1 at January 31, 2019)	153.4	119.6
Inventories, net	16.1	15.4
Other current assets	7.7	9.5
Total current assets	269.6	308.3
Property and equipment, net of accumulated depreciation ($178.5 at July 31, 2019 and $152.7 at January 31, 2019)	329.7	271.9
Goodwill	70.2	43.2
Identifiable intangible assets, net	47.9	30.3
Other assets	15.9	19.1
Total assets	733.3	672.8
Current liabilities:
Accounts payable	48.9	47.3
Accrued interest	7.2	7.2
Accrued liabilities	26.2	30.7
Total current liabilities	82.3	85.2
Long-term debt	242.6	242.2
Deferred income taxes	6.5
Other non-current liabilities	5.8	4.7
Commitments, contingencies and off-balance sheet arrangements (Note 10)
Parent company equity:
Common stock, $0.01 par value; 110.0 million shares authorized; 23.6 million shares issued as of July 31, 2019 and 22.6 shares issued as of January 31, 2019	0.2	0.2
Additional paid-in capital	403.3	345
Treasury stock: 0.1 million shares as of July 31, 2019 and 0 shares as of January 31, 2019	(1.4)
Accumulated deficit	(6)	(4.5)
Total stockholders' equity	396.1	340.7
Total liabilities and equity	$ 733.3	$ 672.8

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS - Parenthetical - USD ($) shares in Millions, $ in Millions	Jul. 31, 2019	Jan. 31, 2019
CONDENSED CONSOLIDATED BALANCE SHEETS
Accounts receivable - trade, allowance for doubtful accounts	$ 4.9	$ 3.1
Property and equipment, accumulated depreciation	$ 178.5	$ 152.7
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	110	110
Common stock, shares issued	23.6	22.6
Treasury stock	0.1	0

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF (LOSS) EARNINGS - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2019	Jul. 31, 2018
CONDENSED CONSOLIDATED STATEMENTS OF (LOSS) EARNINGS
Service revenues	$ 164.9	$ 117.9	$ 310.7	$ 228.2
Cost of sales	129.4	85.7	248.3	167.7
Selling, general and administrative	23.7	17.9	47.5	39.7
Research and development costs	0.8	0.6	1.5	1.3
Operating earnings (loss)	11	13.7	13.4	19.5
Interest expense, net	7.4		14.5
Earnings (loss) before income taxes	3.6	13.7	(1.1)	19.5
Income tax expense	0.1	0.1	0.4	0.1
Net earnings (loss)	$ 3.5	$ 13.6	$ (1.5)	$ 19.4
Net earnings (loss) per share - basic	$ 0.16	$ 0.68	$ (0.07)	$ 0.97
Net earnings (loss) per share - diluted	$ 0.16	$ 0.68	$ (0.07)	$ 0.97

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Millions, $ in Millions	Common Stock	Additional Paid-in Capital	Treasury Stock	Former Parent Company Investment	Accumulated Earnings (Deficit)	Total
Balance at Jan. 31, 2018				$ 1,025.8	$ (801.2)	$ 224.6
Net (loss) earnings					5.8	5.8
Net transfers from Former Parent				16.5		16.5
Balance at Apr. 30, 2018				1,042.3	(795.4)	246.9
Balance at Jan. 31, 2018				1,025.8	(801.2)	224.6
Net (loss) earnings						19.4
Balance at Jul. 31, 2018				1,036.7	(781.8)	254.9
Balance at Apr. 30, 2018				1,042.3	(795.4)	246.9
Net (loss) earnings					13.6	13.6
Net transfers from Former Parent				(5.6)		(5.6)
Balance at Jul. 31, 2018				$ 1,036.7	(781.8)	254.9
Balance at Jan. 31, 2019	$ 0.2	$ 345			(4.5)	340.7
Balance (shares) at Jan. 31, 2019	22.6
Restricted stock, net of forfeitures		4.4				4.4
Issuance of shares as a component of acquisition price		12.1				12.1
Issuance of shares as a component of acquisition price (in shares)	0.5
Shares reserved as a component of Red Bone acquisition		36.4				36.4
Escrowed shares related to Tecton acquisition			$ (1.4)			(1.4)
Net (loss) earnings					(5)	(5)
Balance at Apr. 30, 2019	$ 0.2	397.9	(1.4)		(9.5)	387.2
Balance (shares) at Apr. 30, 2019	23.1
Balance at Jan. 31, 2019	$ 0.2	345			(4.5)	340.7
Balance (shares) at Jan. 31, 2019	22.6
Net (loss) earnings						(1.5)
Balance at Jul. 31, 2019	$ 0.2	403.3	(1.4)		(6)	396.1
Balance (shares) at Jul. 31, 2019	23.6
Balance at Apr. 30, 2019	$ 0.2	397.9	(1.4)		(9.5)	387.2
Balance (shares) at Apr. 30, 2019	23.1
Sale of stock under employee stock purchase plan		0.9				0.9
Sale of stock under employee stock purchase plan (in shares)	0.1
Restricted stock, net of forfeitures		4.5				4.5
Issuance of shares as a component of acquisition price (in shares)	0.4
Net (loss) earnings					3.5	3.5
Balance at Jul. 31, 2019	$ 0.2	$ 403.3	$ (1.4)		$ (6)	$ 396.1
Balance (shares) at Jul. 31, 2019	23.6

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Jul. 31, 2019	Jul. 31, 2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) earnings	$ (1.5)	$ 19.4
Adjustments to reconcile net (loss) earnings to net cash flows provided by operating activities:
Depreciation and amortization	31.3	18.2
Non-cash compensation	9.1	5.1
Amortization of deferred financing fees	0.5
Provision for inventory reserve	0.7	0.7
Change in allowance for doubtful accounts	1.8	0.5
Loss on disposal of property, equipment and other	1.4	0.4
Changes in operating assets and liabilities:
Accounts receivable	(26.5)	(11.3)
Inventories	1.4	(1.9)
Other current and non-current assets	0.6	(3.8)
Accounts payable	(0.2)	3.6
Other current and non-current liabilities	(6.7)	(1.2)
Net cash flows provided by operating activities	11.9	29.7
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures	(56.8)	(36.2)
Proceeds from sale of assets	0.3	0.7
Acquisitions, net of cash acquired	(27.6)
Net cash flows used in investing activities	(84.1)	(35.5)
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash proceeds from stock issuance	0.8
Net transfers from Former Parent (pre spin-off)		5.8
Net cash flows provided by financing activities	0.8	5.8
Net change in cash and cash equivalents	(71.4)	0
Cash and cash equivalents, beginning of period	163.8	0
Cash and cash equivalents, end of period	92.4	0
Cash paid during period for:
Change in deposits on capital expenditures	(4.5)
Income taxes paid, net of refunds	1
Interest	14.7
Supplemental schedule of non-cash activities:
Accrued capital expenditures	$ 8.4	$ 3.8

Description of Business and Bas

Description of Business and Basis of Presentation	6 Months Ended
	Jul. 31, 2019
Description of Business and Basis of Presentation
Description of Business and Basis of Presentation	Note 1. Description of Business and Basis of Presentation Description of Business On September 14, 2018, KLX Inc. (the “Former Parent” or “KLX”) created an independent, publicly-traded company through a spin-off of its Energy Services Group business to Former Parent’s stockholders (the “Spin-Off”). As a result of the Spin-Off, KLX Energy Services Holdings, Inc. (the “Company” or “KLX Energy Services”) now operates as an independent, publicly-traded company. The July 31, 2018 basic and diluted earnings per common share and the average number of common shares outstanding were calculated using the number of KLX Energy Services common shares outstanding immediately following the Spin-Off. The Company is a provider of completion, intervention and production services and products to the major onshore oil and gas producing regions of the United States. Basis of Presentation Prior to the Spin-Off on September 14, 2018, the Company’s unaudited condensed financial statements were derived from the Former Parent’s condensed consolidated financial statements and accounting records as if it was operated on a stand-alone basis and were prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). All intercompany transactions and account balances within the Company have been eliminated. The condensed consolidated statements of earnings (loss) for periods prior to the Spin-Off reflect allocations of general corporate expenses from the Former Parent, including, but not limited to, executive management, finance, legal, information technology, human resources, employee benefits administration, treasury, risk management, procurement and other shared services. The allocations were made on a direct usage basis when identifiable, with the remainder allocated on the basis of revenues generated, costs incurred, headcount or other measures. Management of the Company considers these allocations to be a reasonable reflection of the utilization of services by, or the benefits provided to, the Company. The allocations may not, however, reflect the expense the Company would have incurred as a stand-alone company for the periods presented. Actual costs that may have been incurred if the Company had been a stand-alone company would depend on a number of factors, including the chosen organizational structure, what functions were outsourced or performed by employees and strategic decisions made in areas such as information technology and infrastructure. Former Parent Company Investment – Former Parent company investment in the condensed consolidated statement of stockholders’ equity for the three and six months ended July 31, 2018 represents Former Parent’s historical investment in the Company, the net effect of cost allocations from transactions with Former Parent and net transfers of cash and assets from Former Parent. See Note 6 for a further description of the transactions between the Company and Former Parent. Financial Statement Preparation – The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with GAAP for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. All adjustments which, in the opinion of the Company’s management, are considered necessary for a fair presentation of the results of operations for the periods shown are of a normal recurring nature and have been reflected in the condensed consolidated financial statements. The results of operations for the periods presented are not necessarily indicative of the results expected for the full fiscal year or for any future period.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	6 Months Ended
	Jul. 31, 2019
Recent Accounting Pronouncements
Recent Accounting Pronouncements	Note 2. Recent Accounting Pronouncements In January 2017, the Financial Accounting Standards Board (“FASB”) issued ASU 2017-01, Business Combinations. This update clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The adoption of ASU 2017-01 did not have a material impact on the Company’s condensed consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments related to how certain cash receipts and payments are presented and classified in the statement of cash flows. These cash flow issues include debt prepayment or extinguishment costs, settlement of zero-coupon debt, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate-owned life insurance policies, distributions received from equity method investees, beneficial interests in securitization transactions, and separately identifiable cash flows. This ASU is effective for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019, with early adoption permitted, and should be applied retrospectively. The Company does not expect a material impact upon adoption of this ASU to its condensed consolidated financial statements as the Company’s condensed consolidated statements of cash flows are not impacted by the eight issues listed above. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting, which amends ASC Topic 718, Compensation—Stock Compensation. The ASU includes multiple provisions intended to simplify various aspects of the accounting for share-based payments, including that excess tax benefits and shortfalls be recorded as income tax benefit or expense in the statement of earnings, rather than equity, and requires excess tax benefits from stock-based compensation to be classified in cash flows from operations. The guidance is effective for annual periods beginning after December 15, 2017, and interim periods within annual periods beginning after December 15, 2018. Early adoption is permitted in any interim or annual period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period. The adoption of this ASU did not have a material impact on the Company’s condensed consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases, which supersedes ASC Topic 840, Leases, and creates a new topic, ASC Topic 842, Leases. This update is effective for fiscal years beginning after December 15, 2019 and interim periods within fiscal years beginning after December 15, 2020. Earlier adoption is permitted. ASU 2016-02 requires lessees to recognize a lease liability and a lease asset for all leases, including operating leases, with a term greater than 12 months on its balance sheet. The update also expands the required quantitative and qualitative disclosures surrounding leases. ASU 2016-02 will be applied using a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. To assess the impact of this guidance, the Company has established a cross functional implementation project team and is currently in the process of accumulating and evaluating all the necessary information required to properly account for its lease portfolio under the new standard. The Company is in the process of developing its new accounting policies and determining the potential aggregate impact this guidance is likely to have on its financial statements as of its adoption date. In May 2014, FASB issued ASU 2014-09, Revenue from Contracts with Customers, which updated the guidance in ASC Topic 606, Revenue Recognition. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should identify the contract(s) with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract and recognize revenue when (or as) the entity satisfies a performance obligation. In August 2015, the FASB deferred the effective date for implementation of ASU 2014-09 by one year and during 2016, the FASB issued various related accounting standard updates, which clarified revenue accounting principles and provided supplemental adoption guidance. The guidance under ASU 2014-09 is effective for fiscal years beginning after December 15, 2018 and interim periods within annual reporting periods beginning after December 15, 2019. To assess the impact of this guidance, the Company established a cross functional implementation project team, inventoried its revenue streams and contracts with customers and applied the principles of the guidance against a selection of contracts to assist in the determination of potential revenue accounting differences. No individually significant implementation matters were identified, and revenue is recognized on a “point-in-time” basis for product revenues and over time for service revenues under the new standard, which is consistent with current practice. The Company implemented internal controls, policies and processes to comply with the new standard. The Company adopted ASC Topic 606 in the first quarter of fiscal 2019 using the modified retrospective method of adoption, which resulted in no changes to the opening balance sheet as of February 1, 2019. Prior period statements of earnings (loss) will remain unchanged.

Business Combinations

Business Combinations	6 Months Ended
	Jul. 31, 2019
Business Combinations
Business Combinations	Note 3. Business Combinations On November 5, 2018, the Company acquired Motley Services, LLC (“Motley”), a premier provider of well completion and intervention services for complex, long lateral, horizontal wells, for $140.0 in cash (net of cash acquired) and $9.0 of shares of the Company’s common stock payable to certain employees of Motley. Based on the Company’s purchase price allocation, the excess of the purchase price over the fair value of the identifiable assets acquired approximated $71.8, of which $28.3 was allocated to identifiable intangible assets consisting of customer contracts and relationships and covenants not to compete, and $43.5 is included in goodwill. The useful life assigned to the customer contracts and relationships is 20 years, and the covenants not to compete are being amortized over their contractual periods of three years. On March 15, 2019, the Company acquired Tecton Energy Services (“Tecton”), a leading provider of flowback, drill-out and production testing services, operating primarily in the greater Rocky Mountains. On March 19, 2019, the Company acquired Red Bone Services LLC (“Red Bone”), a premier provider of oilfield services primarily in the Mid-Continent, providing fishing, non-frac high pressure pumping, thru-tubing and certain other services. The aggregate acquisition price of the acquisitions was approximately $74.6, comprised of approximately $47.0 in shares of the Company’s common stock issuable over time at a fixed price and approximately $27.6 in cash to the sellers and for the retirement of debt. The Company issued shares in a subsidiary company to effect the Red Bone acquisition, which become exchangeable for KLXE common stock over specified dates between the acquisition date and September 19, 2021. The Company issued shares in its common stock to effect the Tecton acquisition, a portion of which is not included in purchase consideration as the shares were escrowed and held as treasury stock to satisfy identified future tax obligations through cancellation of the shares. The shares issued to the sellers of Tecton and Red Bone are subject to restrictions on public re-sale from a minimum of six months to a maximum of 24 months, subject to acceleration upon the occurrence of certain events. Based on the Company’s preliminary purchase price allocation, the excess of the purchase price over the fair value of the identifiable assets acquired approximated $46.1, of which $19.4 was allocated to identifiable intangible assets consisting of customer contracts and relationships and covenants not to compete and $26.7 is included in goodwill. The useful life assigned to the customer contracts and relationships is 20 years, and the covenants not to compete are being amortized over their contractual periods of 18 months and three years for Tecton and Red Bone, respectively. The Motley, Tecton and Red Bone acquisitions were accounted for as purchases under FASB ASC 805, Business Combinations (“ASC 805”). The assets purchased and liabilities assumed have been reflected, as of the respective dates of acquisition, in the accompanying condensed consolidated balance sheet as of July 31, 2019 and January 31, 2019. The results of operations for the Motley, Tecton and Red Bone acquisitions are included in the accompanying condensed consolidated statements of earnings (loss) from the respective dates of acquisition. The valuation of certain assets, principally intangible assets including goodwill and identified intangible assets related to the Tecton and Red Bone acquisitions, is not yet complete, and as such, the Company has not yet finalized its allocation of the purchase price for the acquisitions. The following table summarizes the fair values of assets acquired and liabilities assumed in the Motley acquisition, and the current estimates of fair values of assets acquired and liabilities assumed in the Tecton and Red Bone acquisitions, which are currently recorded based on management’s estimates in accordance with ASC 805: Motley Tecton Red Bone Accounts receivable-trade $ 23.2 $ 2.1 $ 7.2 Inventories - - 2.7 Other current and non-current assets 9.4 0.1 0.1 Property and equipment 56.3 6.2 23.6 Goodwill 43.5 10.8 15.9 Identified intangibles 28.3 6.2 13.2 Accounts payable (6.0) (0.7) (3.3) Accrued liabilities (5.7) (2.1) (0.9) Other current and non-current liabilities - - (6.5) Total consideration paid $ 149.0 $ 22.6 $ 52.0 The majority of goodwill and intangible assets for Motley are expected to be deductible for tax purposes. The majority of goodwill and intangible assets for Tecton and Red Bone are not expected to be deductible for tax purposes. The Company has substantially integrated Motley and Red Bone and, as a result, it is not practicable to report stand-alone revenues and operating earnings of the acquired businesses since the acquisition date. The amount of Tecton revenues included in the Company’s results was approximately $6.0 and $9.1 for the three and six months ended July 31, 2019, respectively. It is not practicable to report stand-alone operating earnings of Tecton since the acquisition date. On a pro forma basis to give effect to the Motley, Tecton and Red Bone acquisitions, as if they occurred on February 1, 2018, revenues, net earnings (loss) and earnings (loss) per diluted share for the three and six months ended July 31, 2019 and 2018 would have been as follows: UNAUDITED THREE MONTHS ENDED SIX MONTHS ENDED July 31, 2019 July 31, 2018 July 31, 2019 July 31, 2018 Pro forma Pro forma Pro forma Pro forma Revenues $ 164.9 $ 169.6 $ 318.4 $ 326.4 Net earnings (loss) 3.5 16.2 (1.0) 22.2 Earnings (loss) per diluted share 0.16 0.73 (0.05) 1.00

Property and Equipment, Net

Property and Equipment, Net	6 Months Ended
	Jul. 31, 2019
Property and Equipment, Net
Property and Equipment, Net	Note 4. Property and Equipment, Net Property and equipment consist of the following: Useful July 31, January 31, Life (Years) 2019 2019 Land, buildings and improvements 1 - 40 $ 36.4 $ 32.3 Machinery 1 - 20 256.9 202.2 Furniture and equipment 1 - 10 214.9 190.1 508.2 424.6 Less accumulated depreciation 178.5 152.7 $ 329.7 $ 271.9 Depreciation expense was $15.4 and $9.3 for the three months ended July 31, 2019 and 2018, respectively, and $29.4 and $18.1 for the six months ended July 31, 2019 and 2018, respectively.

Goodwill and Long-Lived Assets,

Goodwill and Long-Lived Assets, Net	6 Months Ended
	Jul. 31, 2019
Goodwill and Long-Lived Assets, Net
Goodwill and Long-Lived Assets, Net	Note 5. Goodwill and Long-Lived Assets, Net The following sets forth the intangible assets by major asset class, all of which were acquired through business purchase transactions: July 31, 2019 January 31, 2019 Useful Life Original Accumulated Net Book Original Accumulated Net Book (Years) Cost Amortization Value Cost Amortization Value Customer contracts and relationships 20 $ 43.0 $ 1.2 $ 41.8 $ 24.9 $ 0.3 $ 24.6 Covenants not to compete 1.5 - 3 4.7 1.1 3.6 3.4 0.3 3.1 Developed technologies 15 3.3 0.8 2.5 3.3 0.7 2.6 $ 51.0 $ 3.1 $ 47.9 $ 31.6 $ 1.3 $ 30.3 Amortization expense of intangible assets was $1.1 and $0.1 for the three months ended July 31, 2019 and 2018, respectively, and $1.9 and $0.1 for the six months ended July 31, 2019 and 2018, respectively. The Company currently expects to recognize amortization expense related to intangible assets of approximately $4.0 in each of the next five fiscal years. The future amortization amounts are estimates. Actual future amortization expense may be different due to future acquisitions, impairments, changes in amortization periods or other factors. Goodwill increased $27.0 as compared to January 31, 2019, primarily as a result of the acquisitions of Tecton and Red Bone.

Related Party Transactions

Related Party Transactions	6 Months Ended
	Jul. 31, 2019
Related Party Transactions
Related Party Transactions	Note 6. Related Party Transactions The condensed consolidated statements of earnings (loss) for the three and six months ended July 31, 2018 include an allocation of general corporate expenses from our former parent, KLX. These costs were allocated to the Company on a systematic and reasonable basis utilizing a direct usage basis when identifiable, with the remainder allocated on the basis of revenue generated, costs incurred, headcount or other measures. Allocations for general corporate expenses, including management costs and corporate support services provided to the Company, totaled $5.7 and $13.4 for the three and six months ended July 31, 2018, respectively and were reported in the Company’s selling, general and administrative expenses on its condensed consolidated statements of earnings (loss). These amounts include costs for allocations related to Former Parent’s strategic alternatives review process in the first quarter of Fiscal 2018, the Company’s Spin-Off process in the second quarter of Fiscal 2018 as well as for functions including executive management, finance, legal, information technology, human resources, employee benefits administration, treasury, risk management, procurement and other shared services. In connection with the consummation of the Spin-Off, KLX Energy Services entered into a number of agreements with KLX, including a transition services agreement, distribution agreement, an employee matters agreement and an Intellectual Property (“IP”) matters agreement. These agreements govern the relationship between us and KLX and provide for the allocation between us and KLX of various assets, liabilities and obligations (including employee benefits, information technology and insurance). All services under the transition services agreement with Former Parent were terminated in the prior fiscal year.

Accrued Liabilities

Accrued Liabilities	6 Months Ended
	Jul. 31, 2019
Accrued Liabilities
Accrued Liabilities	Note 7. Accrued Liabilities Accrued liabilities consist of the following: July 31, January 31, 2019 2019 Accrued salaries, vacation and related benefits $ 13.2 $ 13.9 Accrued incentive compensation 3.0 9.1 Accrued property taxes 2.9 1.9 Other accrued liabilities 7.1 5.8 $ 26.2 $ 30.7

Long-Term Debt

Long-Term Debt	6 Months Ended
	Jul. 31, 2019
Long-Term Debt
Long-Term Debt	Note 8. Long-Term Debt As of July 31, 2019, long-term debt consisted of $250.0 principal amount of 11.5% senior secured notes due 2025 (the “Notes”) offered pursuant to Rule 144A under the Securities Act and to certain non-U.S. persons outside the United States in compliance with Regulation S under the Securities Act. On a net basis, after taking into consideration the debt issue costs for the Notes, total debt as of July 31, 2019 was $242.6. As of July 31, 2019, the Company also had a $100.0 asset-based revolving credit facility pursuant to a senior secured credit agreement dated August 10, 2018 (the “ABL Facility”). The ABL Facility became effective on September 14, 2018, the date of the Spin-Off, and matures in September 2023. On October 22, 2018, the ABL Facility was amended primarily to permit the Company to issue the Notes and acquire Motley and the definition of the required ratio (as defined in the ABL Facility) was also amended as a result of the Notes issuance. Borrowings under the ABL Facility bear interest at a rate equal to the London Interbank Offered Rate plus the applicable margin (as defined in the ABL Facility). No amounts were outstanding under the ABL Facility as of July 31, 2019. The ABL Facility is tied to a borrowing base formula and has no maintenance financial covenants. The ABL Facility is secured by, among other things, a first priority lien on our accounts receivable and inventory and contains customary conditions precedent to borrowing and affirmative and negative covenants, all of which were met as of July 31, 2019. Letters of credit issued under the ABL Facility aggregated $0.8 at July 31, 2019.

Fair Value Information

Fair Value Information	6 Months Ended
	Jul. 31, 2019
Fair Value Information
Fair Value Information	Note 9. Fair Value Information All financial instruments are carried at amounts that approximate estimated fair value. The fair value is the price at which an asset could be exchanged in a current transaction between knowledgeable, willing parties. Assets measured at fair value are categorized based upon the lowest level of significant input to the valuations. Level 1 – quoted prices in active markets for identical assets and liabilities. Level 2 – quoted prices for identical assets and liabilities in markets that are not active or observable inputs other than quoted prices in active markets for identical assets and liabilities. Level 3 – unobservable inputs in which there is little or no market data available, which require the reporting entity to develop its own assumptions. The carrying amounts of cash and cash equivalents, accounts receivable-trade and accounts payable represent their respective fair values due to their short-term nature. There was no debt outstanding under the ABL Facility as of July 31, 2019. The fair value of the Company’s Notes, based on market prices for publicly-traded debt (which the Company classifies as Level 2 inputs), was $244.4 and $254.1 as of July 31, 2019 and January 31, 2019, respectively.

Commitments, Contingencies and

Commitments, Contingencies and Off-Balance Sheet Arrangements	6 Months Ended
	Jul. 31, 2019
Commitments, Contingencies and Off-Balance Sheet Arrangements
Commitments, Contingencies and Off-Balance-Sheet Arrangements	Note 10. Commitments, Contingencies and Off-Balance-Sheet Arrangements Lease Commitments – The Company finances its use of certain facilities and equipment under committed lease arrangements provided by various institutions. Since the terms of these arrangements meet the accounting definition of operating lease arrangements, the aggregate sum of future minimum lease payments is not reflected on the condensed consolidated balance sheets. At July 31, 2019, future minimum lease payments under these arrangements approximated $52.0, of which $22.9 is related to long-term real estate leases. Litigation – The Company is a defendant in various legal actions arising in the normal course of business, the outcomes of which, in the opinion of management, neither individually nor in the aggregate are likely to result in a material adverse effect on the Company’s condensed consolidated financial statements. Indemnities, Commitments and Guarantees – During its normal course of business, the Company has made certain indemnities, commitments and guarantees under which it may be required to make payments in relation to certain transactions. These indemnities include indemnities to various lessors in connection with facility leases for certain claims arising from such facility or lease and indemnities to other parties to certain acquisition agreements. The duration of these indemnities, commitments and guarantees varies, and in certain cases, is indefinite. Many of these indemnities, commitments and guarantees provide for limitations on the maximum potential future payments the Company could be obligated to make. However, the Company is unable to estimate the maximum amount of liability related to its indemnities, commitments and guarantees because such liabilities are contingent upon the occurrence of events that are not reasonably determinable. Management believes that any liability for these indemnities, commitments and guarantees would not be material to the accompanying condensed consolidated financial statements. Accordingly, no significant amounts have been accrued for indemnities, commitments and guarantees.

Accounting for Stock-Based Comp

Accounting for Stock-Based Compensation	6 Months Ended
	Jul. 31, 2019
Accounting for Stock-Based Compensation
Accounting for Stock-Based Compensation	Note 11. Accounting for Stock-Based Compensation The Company has a Long-Term Incentive Plan (“LTIP”) under which its Compensation Committee has the authority to grant stock options, stock appreciation rights, restricted stock, restricted stock units or other forms of equity based or equity related awards. Compensation cost is generally recorded on a straight-line basis over the vesting term of the shares based on the grant date value using the closing trading price. Compensation cost recognized during the three and six months ended July 31, 2019 and 2018 primarily related to grants of restricted stock and restricted stock units granted or approved by our Compensation Committee and Former Parent, respectively. As a result, share based compensation was $4.6 and $2.5 for the three months ended July 31, 2019 and 2018, respectively, and $9.0 and $4.9 for the six months ended July 31, 2019 and 2018, respectively. Unrecognized compensation cost related to restricted stock awards made by the Company was $56.7 at July 31, 2019. The Company has established a qualified Employee Stock Purchase Plan, the terms of which allow for qualified employees (as defined in the Plan) to participate in the purchase of designated shares of the Company’s common stock at a price equal to 85% of the closing price on the last business day of each semi-annual stock purchase period. The fair value of the employee purchase rights represents the difference between the closing price of the Company’s shares on the date of purchase and the purchase price of the shares. Compensation cost was immaterial and $0.1 for the three and six months ended July 31, 2018, respectively, and relates to the Former Parent’s employee stock purchase plan. The Company’s first option period began on January 1, 2019. Compensation cost was immaterial and $0.1 for the three and six months ended July 31, 2019, respectively.

Income Taxes

Income Taxes	6 Months Ended
	Jul. 31, 2019
Income Taxes
Income Taxes	Note 12. Income Taxes Income tax expense was $0.1 and $0.4 for the three and six months ended July 31, 2019, respectively, and was comprised primarily of state and local taxes, compared to $0.1 and $0.1 for the three and six months ended July 31, 2018, respectively. Due to the fact the Company has a valuation allowance against its deferred tax balances, it was unable to recognize a tax benefit at the federal statutory rate of 21% on its year to date losses. The Company has established a valuation allowance against the majority of its deferred tax balances with a net deferred tax liability remaining related to the Red Bone acquisition.

Segment Reporting

Segment Reporting	6 Months Ended
	Jul. 31, 2019
Segment Reporting
Segment Reporting	Note 13. Segment Reporting The Company is organized on a geographic basis. The Company’s reportable segments, which are also its operating segments, are comprised of the Southwest (the Permian Basin and the Eagle Ford), the Rocky Mountains (the Bakken, Williston, DJ, Uinta, Powder River, Piceance and Niobrara basins) and the Northeast/Mid-Con (the Marcellus and Utica as well as the Mid-Continent STACK and SCOOP and Haynesville). The segments regularly report their results of operations and make requests for capital expenditures and acquisition funding to the Company’s chief operational decision-making group (“CODM”). This group is comprised of the Chairman and Chief Executive Officer and the Senior Vice President and Chief Financial Officer. As a result, the CODM has determined the Company has three reportable segments. The following table presents revenues and operating earnings (losses) by reportable segment: Three Months Ended Six Months Ended July 31, July 31, July 31, July 31, 2019 2018 2019 2018 Revenues Southwest $ 53.3 $ 40.6 $ 111.3 $ 80.4 Rocky Mountains 63.5 47.8 112.1 88.0 Northeast/Mid-Con 48.1 29.5 87.3 59.8 Total revenues 164.9 117.9 310.7 228.2 Operating earnings (loss) (1) Southwest (1.6) 3.1 (5.6) 5.2 Rocky Mountains 8.7 5.3 11.6 6.5 Northeast/Mid-Con 3.9 5.3 7.4 7.8 Total operating earnings 11.0 13.7 13.4 19.5 Interest expense 7.4 - 14.5 - Earnings (loss) before income taxes $ 3.6 $ 13.7 $ (1.1) $ 19.5 (1) Operating earnings (loss) include an allocation of employee benefits and general and administrative costs primarily based on each segment’s percentage of total revenues for the three and six months ended July 31, 2019 and 2018. The following table presents revenues by service offering by reportable segment: Three Months Ended July 31, 2019 July 31, 2018 Rocky Northeast Rocky Northeast Southwest Mountains /Mid-Con Total Southwest Mountains /Mid-Con Total Completion revenues $ 38.0 $ 37.5 $ 20.0 $ 95.5 $ 22.5 $ 25.3 $ 13.9 $ 61.7 Intervention revenues 9.8 13.0 18.0 40.8 11.3 10.6 7.7 29.6 Production revenues 5.5 13.0 10.1 28.6 6.8 11.9 7.9 26.6 Total revenues $ 53.3 $ 63.5 $ 48.1 $ 164.9 $ 40.6 $ 47.8 $ 29.5 $ 117.9 Six Months Ended July 31, 2019 July 31, 2018 Rocky Northeast Rocky Northeast Southwest Mountains /Mid-Con Total Southwest Mountains /Mid-Con Total Completion revenues $ 78.6 $ 65.0 $ 38.3 $ 181.9 $ 45.3 $ 44.5 $ 29.7 $ 119.5 Intervention revenues 20.0 23.6 26.6 70.2 22.2 21.9 15.6 59.7 Production revenues 12.7 23.5 22.4 58.6 12.9 21.6 14.5 49.0 Total revenues $ 111.3 $ 112.1 $ 87.3 $ 310.7 $ 80.4 $ 88.0 $ 59.8 $ 228.2 The following table presents capital expenditures by reportable segment: Three Months Ended Six Months Ended July 31, July 31, July 31, July 31, 2019 2018 2019 2018 Southwest $ 9.6 $ 4.6 $ 15.0 $ 7.4 Rocky Mountains 11.2 4.9 22.7 13.6 Northeast/Mid-Con 6.4 7.1 19.1 15.2 $ 27.2 $ 16.6 $ 56.8 $ 36.2 Capital expenditures for the administrative office and functions have been allocated to the above segments based on each segment’s percentage of total capital expenditures. The following table presents total assets by reportable segment: July 31, January 31, 2019 2019 Southwest $ 246.3 $ 319.9 Rocky Mountains 237.7 208.0 Northeast/Mid-Con 249.3 144.9 $ 733.3 $ 672.8 Assets for the administrative office and functions have been allocated to the above segments based on each segment’s percentage of total assets. The following table presents total goodwill by reportable segment: July 31, January 31, 2019 2019 Southwest $ 22.4 $ 22.1 Rocky Mountains 24.0 13.2 Northeast/Mid-Con 23.8 7.9 $ 70.2 $ 43.2

Net Earnings Per Common Share

Net Earnings Per Common Share	6 Months Ended
	Jul. 31, 2019
Net Earnings Per Common Share
Net Earnings Per Common Share	Note 14. Net Earnings Per Common Share Basic net earnings (loss) per common share is computed using the weighted average common shares outstanding during the period, and includes 1.7 shares issued in a subsidiary company to effect the Red Bone acquisition, which become exchangeable for KLXE common stock over specified dates between the acquisition date and September 19, 2021. Such shares are included in the computation of basic weighted average common shares from the date of the acquisition. Diluted net earnings (loss) per common share is computed by using the weighted average common shares outstanding including the dilutive effect of restricted shares based on an average share price during the period. For the three months ended July 31, 2019 and 2018, 2.2 and no shares of the Company’s common stock, respectively, and for the six months ended July 31, 2019 and 2018, 2.4 and no shares, respectively, were excluded from the determination of diluted net earnings (loss) per common share because their effect would have been anti-dilutive. An additional 0.1 shares of the Company’s common stock were excluded from the determination of diluted net earnings (loss) per common share for the six months ended July 31, 2019 as their effect would have been anti-dilutive in a net loss position. The computations of basic and diluted net earnings (loss) per share for the three and six months ended July 31, 2019 and 2018 are as follows: Three Months Ended Six Months Ended July 31, July 31, July 31, July 31, 2019 2018 2019 2018 Net earnings (loss) $ 3.5 $ 13.6 $ (1.5) $ 19.4 (Shares in millions) Basic weighted average common shares 22.3 20.1 21.8 20.1 Effect of dilutive securities - dilutive securities - - - - Diluted weighted average common shares 22.3 20.1 21.8 20.1 Basic net earnings (loss) per common share (1) $ 0.16 $ 0.68 $ (0.07) $ 0.97 Diluted net earnings (loss) per common share (1) $ 0.16 $ 0.68 $ (0.07) $ 0.97 (1) On September 14, 2018, the distribution date, KLX stockholders of record as of the close of business on September 3, 2018 received 0.4 shares of KLX Energy Services common stock for every 1.0 share of KLX common stock held as of the record date. July 31, 2018 basic and diluted earnings per common share and the average number of common shares outstanding were calculated using the number of KLX Energy Services common shares outstanding immediately following the distribution.

Description of Business and B_2

Description of Business and Basis of Presentation (Policies)	6 Months Ended
	Jul. 31, 2019
Description of Business and Basis of Presentation
Basis of Presentation	Basis of Presentation Prior to the Spin-Off on September 14, 2018, the Company’s unaudited condensed financial statements were derived from the Former Parent’s condensed consolidated financial statements and accounting records as if it was operated on a stand-alone basis and were prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). All intercompany transactions and account balances within the Company have been eliminated. The condensed consolidated statements of earnings (loss) for periods prior to the Spin-Off reflect allocations of general corporate expenses from the Former Parent, including, but not limited to, executive management, finance, legal, information technology, human resources, employee benefits administration, treasury, risk management, procurement and other shared services. The allocations were made on a direct usage basis when identifiable, with the remainder allocated on the basis of revenues generated, costs incurred, headcount or other measures. Management of the Company considers these allocations to be a reasonable reflection of the utilization of services by, or the benefits provided to, the Company. The allocations may not, however, reflect the expense the Company would have incurred as a stand-alone company for the periods presented. Actual costs that may have been incurred if the Company had been a stand-alone company would depend on a number of factors, including the chosen organizational structure, what functions were outsourced or performed by employees and strategic decisions made in areas such as information technology and infrastructure. Former Parent Company Investment – Former Parent company investment in the condensed consolidated statement of stockholders’ equity for the three and six months ended July 31, 2018 represents Former Parent’s historical investment in the Company, the net effect of cost allocations from transactions with Former Parent and net transfers of cash and assets from Former Parent. See Note 6 for a further description of the transactions between the Company and Former Parent. Financial Statement Preparation – The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with GAAP for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. All adjustments which, in the opinion of the Company’s management, are considered necessary for a fair presentation of the results of operations for the periods shown are of a normal recurring nature and have been reflected in the condensed consolidated financial statements. The results of operations for the periods presented are not necessarily indicative of the results expected for the full fiscal year or for any future period.

Business Combinations (Tables)

Business Combinations (Tables)	6 Months Ended
	Jul. 31, 2019
Business Combinations
Schedule of Fair Values of Assets Acquired and Liabilities Assumed	Motley Tecton Red Bone Accounts receivable-trade $ 23.2 $ 2.1 $ 7.2 Inventories - - 2.7 Other current and non-current assets 9.4 0.1 0.1 Property and equipment 56.3 6.2 23.6 Goodwill 43.5 10.8 15.9 Identified intangibles 28.3 6.2 13.2 Accounts payable (6.0) (0.7) (3.3) Accrued liabilities (5.7) (2.1) (0.9) Other current and non-current liabilities - - (6.5) Total consideration paid $ 149.0 $ 22.6 $ 52.0
Schedule of proforma information of revenues and net earnings (loss)	UNAUDITED THREE MONTHS ENDED SIX MONTHS ENDED July 31, 2019 July 31, 2018 July 31, 2019 July 31, 2018 Pro forma Pro forma Pro forma Pro forma Revenues $ 164.9 $ 169.6 $ 318.4 $ 326.4 Net earnings (loss) 3.5 16.2 (1.0) 22.2 Earnings (loss) per diluted share 0.16 0.73 (0.05) 1.00

Property and Equipment, Net (Ta

Property and Equipment, Net (Tables)	6 Months Ended
	Jul. 31, 2019
Property and Equipment, Net
Property and Equipment	Useful July 31, January 31, Life (Years) 2019 2019 Land, buildings and improvements 1 - 40 $ 36.4 $ 32.3 Machinery 1 - 20 256.9 202.2 Furniture and equipment 1 - 10 214.9 190.1 508.2 424.6 Less accumulated depreciation 178.5 152.7 $ 329.7 $ 271.9

Goodwill and Intangible Assets,

Goodwill and Intangible Assets, Net (Tables)	6 Months Ended
	Jul. 31, 2019
Goodwill and Long-Lived Assets, Net
Intangible Assets by Major Asset Class	July 31, 2019 January 31, 2019 Useful Life Original Accumulated Net Book Original Accumulated Net Book (Years) Cost Amortization Value Cost Amortization Value Customer contracts and relationships 20 $ 43.0 $ 1.2 $ 41.8 $ 24.9 $ 0.3 $ 24.6 Covenants not to compete 1.5 - 3 4.7 1.1 3.6 3.4 0.3 3.1 Developed technologies 15 3.3 0.8 2.5 3.3 0.7 2.6 $ 51.0 $ 3.1 $ 47.9 $ 31.6 $ 1.3 $ 30.3

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)	6 Months Ended
	Jul. 31, 2019
Accrued Liabilities
Accrued Liabilities	July 31, January 31, 2019 2019 Accrued salaries, vacation and related benefits $ 13.2 $ 13.9 Accrued incentive compensation 3.0 9.1 Accrued property taxes 2.9 1.9 Other accrued liabilities 7.1 5.8 $ 26.2 $ 30.7

Segment Reporting (Tables)

Segment Reporting (Tables)	6 Months Ended
	Jul. 31, 2019
Segment Reporting
Revenues and Other Financial Information by Business Segment	Three Months Ended Six Months Ended July 31, July 31, July 31, July 31, 2019 2018 2019 2018 Revenues Southwest $ 53.3 $ 40.6 $ 111.3 $ 80.4 Rocky Mountains 63.5 47.8 112.1 88.0 Northeast/Mid-Con 48.1 29.5 87.3 59.8 Total revenues 164.9 117.9 310.7 228.2 Operating earnings (loss) (1) Southwest (1.6) 3.1 (5.6) 5.2 Rocky Mountains 8.7 5.3 11.6 6.5 Northeast/Mid-Con 3.9 5.3 7.4 7.8 Total operating earnings 11.0 13.7 13.4 19.5 Interest expense 7.4 - 14.5 - Earnings (loss) before income taxes $ 3.6 $ 13.7 $ (1.1) $ 19.5 (1) Operating earnings (loss) include an allocation of employee benefits and general and administrative costs primarily based on each segment’s percentage of total revenues for the three and six months ended July 31, 2019 and 2018.
Schedule of revenues by service offering by reportable segment	Three Months Ended July 31, 2019 July 31, 2018 Rocky Northeast Rocky Northeast Southwest Mountains /Mid-Con Total Southwest Mountains /Mid-Con Total Completion revenues $ 38.0 $ 37.5 $ 20.0 $ 95.5 $ 22.5 $ 25.3 $ 13.9 $ 61.7 Intervention revenues 9.8 13.0 18.0 40.8 11.3 10.6 7.7 29.6 Production revenues 5.5 13.0 10.1 28.6 6.8 11.9 7.9 26.6 Total revenues $ 53.3 $ 63.5 $ 48.1 $ 164.9 $ 40.6 $ 47.8 $ 29.5 $ 117.9 Six Months Ended July 31, 2019 July 31, 2018 Rocky Northeast Rocky Northeast Southwest Mountains /Mid-Con Total Southwest Mountains /Mid-Con Total Completion revenues $ 78.6 $ 65.0 $ 38.3 $ 181.9 $ 45.3 $ 44.5 $ 29.7 $ 119.5 Intervention revenues 20.0 23.6 26.6 70.2 22.2 21.9 15.6 59.7 Production revenues 12.7 23.5 22.4 58.6 12.9 21.6 14.5 49.0 Total revenues $ 111.3 $ 112.1 $ 87.3 $ 310.7 $ 80.4 $ 88.0 $ 59.8 $ 228.2
Capital Expenditures by Reportable Segment	Three Months Ended Six Months Ended July 31, July 31, July 31, July 31, 2019 2018 2019 2018 Southwest $ 9.6 $ 4.6 $ 15.0 $ 7.4 Rocky Mountains 11.2 4.9 22.7 13.6 Northeast/Mid-Con 6.4 7.1 19.1 15.2 $ 27.2 $ 16.6 $ 56.8 $ 36.2
Total Assets by Reportable Segment	July 31, January 31, 2019 2019 Southwest $ 246.3 $ 319.9 Rocky Mountains 237.7 208.0 Northeast/Mid-Con 249.3 144.9 $ 733.3 $ 672.8
Goodwill by Reportable Segment	July 31, January 31, 2019 2019 Southwest $ 22.4 $ 22.1 Rocky Mountains 24.0 13.2 Northeast/Mid-Con 23.8 7.9 $ 70.2 $ 43.2

Net Earnings Per Common Share (

Net Earnings Per Common Share (Tables)	6 Months Ended
	Jul. 31, 2019
Net Earnings Per Common Share
Computation of Basic and Diluted Net Earnings Per Share	Three Months Ended Six Months Ended July 31, July 31, July 31, July 31, 2019 2018 2019 2018 Net earnings (loss) $ 3.5 $ 13.6 $ (1.5) $ 19.4 (Shares in millions) Basic weighted average common shares 22.3 20.1 21.8 20.1 Effect of dilutive securities - dilutive securities - - - - Diluted weighted average common shares 22.3 20.1 21.8 20.1 Basic net earnings (loss) per common share (1) $ 0.16 $ 0.68 $ (0.07) $ 0.97 Diluted net earnings (loss) per common share (1) $ 0.16 $ 0.68 $ (0.07) $ 0.97 (1) On September 14, 2018, the distribution date, KLX stockholders of record as of the close of business on September 3, 2018 received 0.4 shares of KLX Energy Services common stock for every 1.0 share of KLX common stock held as of the record date. July 31, 2018 basic and diluted earnings per common share and the average number of common shares outstanding were calculated using the number of KLX Energy Services common shares outstanding immediately following the distribution.

Business Combinations (Details)

Business Combinations (Details) - USD ($) $ in Millions	Mar. 19, 2019	Nov. 05, 2018	Jul. 31, 2019	Jul. 31, 2019	Jan. 31, 2019
Business Combinations
Purchase price, net of cash acquired				$ 27.6
Goodwill			$ 70.2	70.2	$ 43.2
Goodwill			70.2	70.2	$ 43.2
Motley
Business Combinations
Common stock value issued as consideration		$ 9
Purchase price, net of cash acquired		140
Identified intangible assets including goodwill		71.8
Identified intangibles		28.3	28.3	28.3
Goodwill		43.5	43.5	43.5
Goodwill		$ 43.5	43.5	43.5
Tecton and Red Bone
Business Combinations
Total consideration	$ 74.6
Cash paid for acquisition	27.6
Common stock value issued as consideration	47
Goodwill	26.7
Excess of purchase price over the fair market value of identifiable assets.	46.1
Identifiable intangible assets	19.4
Goodwill	$ 26.7
Acquisitions revenues			6	9.1
Tecton and Red Bone | Minimum
Business Combinations
Restriction period on re-sale of shares	6 months
Tecton and Red Bone | Maximum
Business Combinations
Restriction period on re-sale of shares	24 months
Tecton
Business Combinations
Identified intangibles			6.2	6.2
Goodwill			10.8	10.8
Goodwill			10.8	10.8
Red Bone
Business Combinations
Identified intangibles			13.2	13.2
Goodwill			15.9	15.9
Goodwill			$ 15.9	$ 15.9
Customer contracts and relationships
Business Combinations
Useful Life (years)				20 years
Customer contracts and relationships | Motley
Business Combinations
Useful Life (years)		20 years
Customer contracts and relationships | Tecton and Red Bone
Business Combinations
Useful Life (years)	20 years
Covenants not to compete | Minimum
Business Combinations
Useful Life (years)				1 year 6 months
Covenants not to compete | Maximum
Business Combinations
Useful Life (years)				3 years
Covenants not to compete | Motley
Business Combinations
Useful Life (years)		3 years
Covenants not to compete | Tecton and Red Bone | Minimum
Business Combinations
Useful Life (years)	18 months
Covenants not to compete | Tecton and Red Bone | Maximum
Business Combinations
Useful Life (years)	3 years

Business Combinations (Assets A

Business Combinations (Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2019	Jul. 31, 2018	Mar. 19, 2019	Jan. 31, 2019	Nov. 05, 2018
Business Combination, Separately Recognized Transactions [Line Items]
Goodwill	$ 70.2		$ 70.2			$ 43.2
Pro forma
Revenues	164.9	$ 169.6	318.4	$ 326.4
Net earnings (loss)	$ 3.5	$ 16.2	$ (1)	$ 22.2
Earnings (loss) per diluted share	$ 0.16	$ 0.73	$ (0.05)	$ 1
Motley
Business Combination, Separately Recognized Transactions [Line Items]
Accounts receivable-trade	$ 23.2		$ 23.2
Other current and non-current assets	9.4		9.4
Property and equipment	56.3		56.3
Goodwill	43.5		43.5				$ 43.5
Identified intangibles	28.3		28.3				$ 28.3
Accounts payable	(6)		(6)
Accrued liabilities	(5.7)		(5.7)
Total consideration paid	149		149
Tecton and Red Bone
Business Combination, Separately Recognized Transactions [Line Items]
Goodwill					$ 26.7
Pro forma
Revenues included in the Company's results	6		9.1
Tecton
Business Combination, Separately Recognized Transactions [Line Items]
Accounts receivable-trade	2.1		2.1
Other current and non-current assets	0.1		0.1
Property and equipment	6.2		6.2
Goodwill	10.8		10.8
Identified intangibles	6.2		6.2
Accounts payable	(0.7)		(0.7)
Accrued liabilities	(2.1)		(2.1)
Total consideration paid	22.6		22.6
Red Bone
Business Combination, Separately Recognized Transactions [Line Items]
Accounts receivable-trade	7.2		7.2
Inventories	2.7		2.7
Other current and non-current assets	0.1		0.1
Property and equipment	23.6		23.6
Goodwill	15.9		15.9
Identified intangibles	13.2		13.2
Accounts payable	(3.3)		(3.3)
Accrued liabilities	(0.9)		(0.9)
Other current and non-current liabilities	(6.5)		(6.5)
Total consideration paid	$ 52		$ 52

Property and Equipment, Net (Pr

Property and Equipment, Net (Property and Equipment) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2019	Jul. 31, 2018	Jan. 31, 2019
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 508.2		$ 508.2		$ 424.6
Less accumulated depreciation	178.5		178.5		152.7
Property, Plant and Equipment, Net, Total	329.7		329.7		271.9
Depreciation expense	15.4	$ 9.3	29.4	$ 18.1
Land, buildings and improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	36.4		$ 36.4		32.3
Land, buildings and improvements | Minimum
Property, Plant and Equipment [Line Items]
Useful Life			P1Y
Land, buildings and improvements | Maximum
Property, Plant and Equipment [Line Items]
Useful Life			P40Y
Machinery
Property, Plant and Equipment [Line Items]
Property and equipment, gross	256.9		$ 256.9		202.2
Machinery | Minimum
Property, Plant and Equipment [Line Items]
Useful Life			P1Y
Machinery | Maximum
Property, Plant and Equipment [Line Items]
Useful Life			P20Y
Furniture and equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 214.9		$ 214.9		$ 190.1
Furniture and equipment | Minimum
Property, Plant and Equipment [Line Items]
Useful Life			P1Y
Furniture and equipment | Maximum
Property, Plant and Equipment [Line Items]
Useful Life			P10Y

Goodwill and Long-Lived Assets

Goodwill and Long-Lived Assets (Major Asset Classes) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2019	Jul. 31, 2018	Jan. 31, 2019
Goodwill and Intangible Assets Disclosure [Line Items]
Original Cost	$ 51	$ 31.6	$ 51	$ 31.6
Accumulated Amortization	3.1	1.3	3.1	1.3
Net Book Value	47.9	30.3	47.9	30.3	$ 30.3
Amortization expense of intangible assets	1.1	0.1	1.9	0.1
Goodwill increase during period			27
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract]
Expected amortization expenses in year one	4		4
Expected amortization expenses in year two	4		4
Expected amortization expenses in year three	4		4
Expected amortization expenses in year four	4		4
Expected amortization expenses in year five	4		$ 4
Customer contracts and relationships
Goodwill and Intangible Assets Disclosure [Line Items]
Useful Life (years)			20 years
Original Cost	43	24.9	$ 43	24.9
Accumulated Amortization	1.2	0.3	1.2	0.3
Net Book Value	41.8	24.6	41.8	24.6
Covenants not to compete
Goodwill and Intangible Assets Disclosure [Line Items]
Original Cost	4.7	3.4	4.7	3.4
Accumulated Amortization	1.1	0.3	1.1	0.3
Net Book Value	3.6	3.1	$ 3.6	3.1
Covenants not to compete | Minimum
Goodwill and Intangible Assets Disclosure [Line Items]
Useful Life (years)			1 year 6 months
Covenants not to compete | Maximum
Goodwill and Intangible Assets Disclosure [Line Items]
Useful Life (years)			3 years
Developed Technologies
Goodwill and Intangible Assets Disclosure [Line Items]
Useful Life (years)			15 years
Original Cost	3.3	3.3	$ 3.3	3.3
Accumulated Amortization	0.8	0.7	0.8	0.7
Net Book Value	$ 2.5	$ 2.6	$ 2.5	$ 2.6

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jul. 31, 2018	Jul. 31, 2018
Related Party Transactions
Allocations for general corporate expenses, including management costs and corporate support services	$ 5.7	$ 13.4

Accrued Liabilities (Details)

Accrued Liabilities (Details) - USD ($) $ in Millions	Jul. 31, 2019	Jan. 31, 2019
Accrued Liabilities
Accrued salaries, vacation and related benefits	$ 13.2	$ 13.9
Accrued interest	7.2	7.2
Accrued incentive compensation	3	9.1
Accrued property taxes	2.9	1.9
Other accrued liabilities	7.1	5.8
Total accrued liabilities	$ 26.2	$ 30.7

Long-Term Debt (Details)

Long-Term Debt (Details) - USD ($) $ in Millions	Jul. 31, 2019	Jan. 31, 2019
Debt Instrument [Line Items]
Long-term debt	$ 242.6	$ 242.2
Asset based revolving line of credit
Debt Instrument [Line Items]
Amount outstanding	0
Revolving credit facility	100
Outstanding letter of credit amount	0.8
Senior Secured Notes 11.5 Percent Due 2025
Debt Instrument [Line Items]
Principle amount	$ 250
Debt instrument, stated interest rate (as a percent)	11.50%
Long term debt outstanding	$ 242.6

Fair Value Information (Details

Fair Value Information (Details) - USD ($) $ in Millions	Jul. 31, 2019	Jan. 31, 2019
Asset based revolving line of credit
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Amount outstanding	$ 0
Fair Value, Inputs, Level 2 | Senior Secured Notes 11.5 Percent Due 2025
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Senior secured notes, fair value	$ 244.4	$ 254.1

Commitments, Contingencies an_2

Commitments, Contingencies and Off-Balance Sheet Arrangements (Details) $ in Millions	Jul. 31, 2019USD ($)
Future minimum lease payments	$ 52
Real Estate
Future minimum lease payments	$ 22.9

Accounting for Stock-Based Co_2

Accounting for Stock-Based Compensation (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2019	Jul. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation	$ 4.6	$ 2.5	$ 9	$ 4.9
Unrecognized compensation cost	$ 56.7		56.7
Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation			$ 0.1	$ 0.1
Qualified employees purchase of stock at a price equal to percentage of closing price			85.00%

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2019	Jul. 31, 2018
Income Taxes
Income Tax Expense Benefit	$ 0.1	$ 0.1	$ 0.4	$ 0.1
Effective U.S. federal income tax rate			21.00%

Segment Reporting (Revenues and

Segment Reporting (Revenues and Operating Earnings (Losses) by Reportable Segment) (Details) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 31, 2019USD ($)	Jul. 31, 2018USD ($)	Jul. 31, 2019USD ($)segment	Jul. 31, 2018USD ($)
Reportable Segments [Abstract]
Number of reportable segments | segment			3
Revenues	$ 164.9	$ 117.9	$ 310.7	$ 228.2
Operating earnings (loss)	11	13.7	13.4	19.5
Interest expense	7.4		14.5
Earnings (loss) earnings before income taxes	3.6	13.7	(1.1)	19.5
Southwest
Reportable Segments [Abstract]
Revenues	53.3	40.6	111.3	80.4
Operating earnings (loss)	(1.6)	3.1	(5.6)	5.2
Rocky Mountains
Reportable Segments [Abstract]
Revenues	63.5	47.8	112.1	88
Operating earnings (loss)	8.7	5.3	11.6	6.5
Northeast
Reportable Segments [Abstract]
Revenues	48.1	29.5	87.3	59.8
Operating earnings (loss)	$ 3.9	$ 5.3	$ 7.4	$ 7.8

Segment Reporting (Revenues by

Segment Reporting (Revenues by Service Offering by Reportable Segment) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2019	Jul. 31, 2018
Segment Reporting Information [Line Items]
Revenues	$ 164.9	$ 117.9	$ 310.7	$ 228.2
Southwest
Segment Reporting Information [Line Items]
Revenues	53.3	40.6	111.3	80.4
Rocky Mountains
Segment Reporting Information [Line Items]
Revenues	63.5	47.8	112.1	88
Northeast
Segment Reporting Information [Line Items]
Revenues	48.1	29.5	87.3	59.8
Completion revenues
Segment Reporting Information [Line Items]
Revenues	95.5	61.7	181.9	119.5
Completion revenues | Southwest
Segment Reporting Information [Line Items]
Revenues	38	22.5	78.6	45.3
Completion revenues | Rocky Mountains
Segment Reporting Information [Line Items]
Revenues	37.5	25.3	65	44.5
Completion revenues | Northeast
Segment Reporting Information [Line Items]
Revenues	20	13.9	38.3	29.7
Intervention revenues
Segment Reporting Information [Line Items]
Revenues	40.8	29.6	70.2	59.7
Intervention revenues | Southwest
Segment Reporting Information [Line Items]
Revenues	9.8	11.3	20	22.2
Intervention revenues | Rocky Mountains
Segment Reporting Information [Line Items]
Revenues	13	10.6	23.6	21.9
Intervention revenues | Northeast
Segment Reporting Information [Line Items]
Revenues	18	7.7	26.6	15.6
Production revenues
Segment Reporting Information [Line Items]
Revenues	28.6	26.6	58.6	49
Production revenues | Southwest
Segment Reporting Information [Line Items]
Revenues	5.5	6.8	12.7	12.9
Production revenues | Rocky Mountains
Segment Reporting Information [Line Items]
Revenues	13	11.9	23.5	21.6
Production revenues | Northeast
Segment Reporting Information [Line Items]
Revenues	$ 10.1	$ 7.9	$ 22.4	$ 14.5

Segment Reporting (Capital Expe

Segment Reporting (Capital Expenditures by Reportable Segment) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2019	Jul. 31, 2018
Property, Plant and Equipment [Line Items]
Capital expenditures	$ 27.2	$ 16.6	$ 56.8	$ 36.2
Southwest
Property, Plant and Equipment [Line Items]
Capital expenditures	9.6	4.6	15	7.4
Rocky Mountains
Property, Plant and Equipment [Line Items]
Capital expenditures	11.2	4.9	22.7	13.6
Northeast
Property, Plant and Equipment [Line Items]
Capital expenditures	$ 6.4	$ 7.1	$ 19.1	$ 15.2

Segment Reporting (Total Assets

Segment Reporting (Total Assets by Reportable Segment) (Details) - USD ($) $ in Millions	Jul. 31, 2019	Jan. 31, 2019
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	$ 733.3	$ 672.8
Southwest
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	246.3	319.9
Rocky Mountains
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	237.7	208
Northeast
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	$ 249.3	$ 144.9

Segment Reporting (Goodwill by

Segment Reporting (Goodwill by Reportable Segment) (Details) - USD ($) $ in Millions	Jul. 31, 2019	Jan. 31, 2019
Goodwill [Line Items]
Goodwill	$ 70.2	$ 43.2
Southwest
Goodwill [Line Items]
Goodwill	22.4	22.1
Rocky Mountains
Goodwill [Line Items]
Goodwill	24	13.2
Northeast
Goodwill [Line Items]
Goodwill	$ 23.8	$ 7.9

Net Earnings Per Common Share_2

Net Earnings Per Common Share (Details) - shares shares in Millions	3 Months Ended		6 Months Ended
	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2019	Jul. 31, 2018
Shares included in weighted average common shares outstanding, acquisitions			1.7
Anti-dilutive securities excluded from determination of diluted earnings per common share			0.1
Restricted Stock
Anti-dilutive securities excluded from determination of diluted earnings per common share	2.2	0	2.4	0

Net Earnings Per Common Share_3

Net Earnings Per Common Share (Computations of Basic and Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended				6 Months Ended
	Jul. 31, 2019	Apr. 30, 2019	Jul. 31, 2018	Apr. 30, 2018	Jul. 31, 2019	Jul. 31, 2018	Sep. 14, 2018
Net Earnings Per Common Share
Net (loss) earnings	$ 3.5	$ (5)	$ 13.6	$ 5.8	$ (1.5)	$ 19.4
Basic weighted average common shares	22,300,000		20,100,000		21,800,000	20,100,000
Diluted weighted average common shares	22,300,000		20,100,000		21,800,000	20,100,000
Basic net earnings (loss) per common share (in dollars per share)	$ 0.16		$ 0.68		$ (0.07)	$ 0.97
Diluted net earnings (loss) per common share (in dollars per share)	$ 0.16		$ 0.68		$ (0.07)	$ 0.97
Number of shares received for each share of former parent entity							0.4
Number of shares of former parent used in share distribution calculation							1