KLX Inc. (KLX), incorporated on July 31, 2014, is the distributor and service provider of aerospace ...

1. KLX Inc (KLXI.O) Company Profile
KLX Inc. (KLX), incorporated on July 31, 2014, is the distributor and service provider of aerospace
fasteners and consumables. The Company offers ranges of aerospace hardware and consumables
and inventory management services across the world. The Company operates in two segments:
Aerospace Solutions Group (ASG) segment and Energy Services Group (ESG) segment. Its customers
include oil and gas companies that are engaged in the exploration and production (E&P) and
development of oil and gas properties. Through the Company's global facilities network and
information technology systems, it offers unparalleled service to commercial airlines, business jet
and defense original equipment manufacturers and their subcontractors (OEMs), maintenance,
repair and overhaul (MRO) operators, and fixed base operators (FBOs). Its systems support both
internal distribution processes, along with customer services, including just-in-time (JIT) deliveries
and kitting solutions. With a diverse global customer base, including commercial airlines, business
jet and defense OEMs, OEM subcontractors and MRO operators across five continents, it provides
access to over one million stock keeping units (SKUs).
Aerospace Solutions Group
The Company's all-inclusive portfolio consists of Fasteners, Chemicals, Honeywell Proprietary Parts,
and Bearings, Electrical, Clamps and Lighting. The Company stocks inventory to support all
commercial and military aircraft, business jets and helicopters. Its inventory position is diversified in
the industry, supplying bolts, clips, hinges, rings, screws, carbon-faced seals, gaskets, O-rings and
more. It stocks 100,000 chemical SKUs from 100 manufacturers, which it distributes to over 750
customers across the globe. Among these products are chemicals, sealants and adhesives,
lubricants, paints, cleaners and degreasers.
The Company holds an exclusive 20-year license (with 14 years remaining on the original license), on
over 36,000 Honeywell proprietary parts. Among the product lines supported by these parts are
auxiliary power units, propulsion engines, electrical/electro-mechanical and airframe and engine
accessories. The Company is also the primary supplier of these parts to Honeywell for their use
during the manufacturing of the aforementioned products. It sells lighting products to both OEMs
and aftermarket customers. Other product families also include bearings, tooling, electrical
components and clamps.
The Company's core services include sales and technical support, delegated inspection authority,
electronic data interchange (EDI), symphony direct ship and e-commerce. It routinely sources
alternate replacement parts, support part standardization, support its customers by avoiding stock
outs, mitigating obsolete parts, actively defining and planning new products, locating suppliers who
produce these engineered parts and increasing cost savings and operational and logistics readiness.
Delegated Inspection Authority service eliminates receiving inspection and reduces costs through
lower record retention expenses, lower inspection expenses and less peer-to-peer engineering
support and supplier oversight. EDI reduces costs as it automatically places orders, processes
documents, reduces lead times and stockholding and eliminates data entry errors. The Company
offers two different systems, which are designed for specific customer types and/or their specific
needs.
Customers can place orders with the Company and then Symphony, its inventory management
system, routes these orders automatically to the appropriate supplier of these parts. The supplier
ships the parts directly to the customer by the date requested, eliminating a process queue and thus

2. allowing for a database to be built over time. Products are stocked based on historical usage and
forecasts. It offers order and billing process, while allowing traceability of parts. E-Commerce
service provides its customers with real-time connection to its systems and inventory, where they
can cross-reference part numbers and also see product price and availability. E-Commerce also
allows customers to view usage reports for part planning and forecasting.
The Company competes with Wesco Aircraft, Pattonair, Align, AAA, Adept, Herndon, Boeing, Airbus,
PCC, Alcoa, Wencor, Champion, Heico, Jamaica Bearings, Avnet and Avio.
Energy Services Group
The Company serves energy industry
customers who focus on developing and
producing oil and gas onshore in North
America. The Company's products and
services include onshore completion
services, wireline services, fishing services
and tools, pressure control,
remanufacturing shops and accommodation
and related surface rental equipment.
Onshore Completion Services includes a variety of services and equipment related to the initial well
stimulation, completion and production. These services include the placement and removal of flow
control nipples and valves, completion packers, bridge plugs and composite flow through frac plugs,
as well as a full line of downhole services tools to optimize oil and gas recovery.
The wireline services are provided through mobile units that contain spools of wire. This spool of
wire spools and unspools, which in turn allows tools and equipment to be conveyed in and out of a
wellbore. These wireline units and personnel provide a variety of different downhole services. These
services include composite frac plug pump downs, pipe recovery and perforation, as well as well
evaluation and logging services.
Fishing Services and Tools provide a range of tools and services to assist the Company's clients
when intervention is required at the wellsite. Through the use of overshots, spears, jarring
equipment, internal and external cutters, Venturi tools, magnets and wash over equipment, it
provides solutions for its customers. In addition to its fishing services, it also provides drill-out
services to its clients consisting of downhole motors used to drill out frac plugs and sliding sleeves.
Pressure Control offers a line of pressure control services and rental equipment. The Company
provides a line of hydraulic and manual equipment. The Company also provides rental pipe, power
swivels, reverse units and other equipment used to perform well service operations.
Remanufacturing Shop offers machine shop services which consist of computer numerical control
(CNC) lathes, milling machines, spindle lathes and other machining equipment to rework and rectify
damaged equipment.
Accommodations and related surface rental equipment provides a variety of mobile, customizable
workforce accommodations and offices and associated rental equipment. The Company provides a
range of offerings, including workforce housing and office systems, light towers, generators,
pressure washers, pumps, fork lifts, manlifts, transformers, satellite systems, water and sewer
systems and waste management. It also provides on-site customer service.

3. The Company competes with Weatherford, Schlumberger, Halliburton, Baker Hughes, Superior
Energy Services, Stallion Oilfield Services and HB Rentals.
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