KLX Inc. Announces Filing of Extension for Form 10-K

KLX Inc., 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, 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a claim on a single end of program/end of life long-term contract, which expired on December 31, 2016 and which has now been replaced by a new long-term contract.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.