SEACOR Holdings Announces Results for Its Second Quarter Ended June 30, 2014
FORT LAUDERDALE, FL -- (Marketwired) -- 07/31/14 -- SEACOR Holdings Inc. (NYSE: CKH) (the "Company") today announced its results for its second quarter ended June 30, 2014.
For the quarter ended June 30, 2014, net income attributable to SEACOR Holdings Inc. was $21.1 million, or $0.98 per diluted share. For the six months ended June 30, 2014, net income attributable to SEACOR Holdings Inc. was $32.6 million, or $1.58 per diluted share.
For the preceding quarter ended March 31, 2014, the Company reported net income attributable to SEACOR Holdings Inc. of $11.5 million, or $0.56 per diluted share. A comparison of results for the quarter ended June 30, 2014 with the preceding quarter ended March 31, 2014 is included in the "Highlights for the Quarter" discussion below.
For the quarter ended June 30, 2013, net income attributable to SEACOR Holdings Inc. was $19.3 million, or $0.91 per diluted share. For the six months ended June 30, 2013, net loss attributable to SEACOR Holdings Inc. was $1.7 million, or $0.09 per diluted share, including income from continuing operations of $8.5 million, or $0.42 per diluted share.
Highlights for the Quarter
Offshore Marine Services - Operating revenues for the second quarter were $138.2 million compared with $129.0 million in the preceding quarter. Operating income in the second quarter was $18.1 million compared with $11.2 million in the preceding quarter, including gains on asset dispositions of $3.5 million in the second quarter and $7.7 million in the preceding quarter. This release includes a table presenting time charter operating data by vessel class.
In the U.S. Gulf of Mexico, operating revenues were $11.5 million higher in the second quarter. Time charter revenues for the Company's liftboat fleet were $7.1 million higher, primarily due to the seasonal improvement in utilization. During the second quarter, the number of out-of-service days attributable to the drydocking of liftboats was 101 compared with 349 in the preceding quarter, overall utilization was 80.2% compared with 60.2% in the preceding quarter, and average day rates increased from $22,219 per day to $23,017 per day. Time charter revenues for anchor handling towing supply vessels increased by $7.2 million, primarily due to increased utilization in support of platform supply activities and reduced drydocking activity. Time charter revenues for all other vessel classes were $3.5 million lower, primarily due to vessel dispositions and increased drydocking activity. On a total fleet basis, fleet utilization was 77.4% compared with 70.6% in the preceding quarter and average day rates increased from $17,010 per day to $19,736 per day. As of June 30, 2014, the Company had two vessels cold-stacked in the U.S. Gulf of Mexico.
In international regions, operating revenues were $2.3 million lower in the second quarter. Time charter revenues were $1.8 million lower, primarily due to the repositioning of three vessels into the U.S. Gulf of Mexico and increased drydocking activity partially offset by seasonally stronger market conditions for the Company's windfarm utility vessels and the commencement of a term charter in Asia. Excluding windfarm utility vessels, fleet utilization was 82.4% compared with 86.8% in the preceding quarter and average day rates decreased from $12,561 per day to $12,455 per day.
Administrative and general expenses were $1.7 million lower in the second quarter primarily due to a reduction in the provision for doubtful debts.
During the second quarter, the Company sold four offshore support vessels and other equipment for net proceeds of $50.5 million and gains of $14.5 million, of which $2.5 million was recognized currently and $12.0 million was deferred. In addition, the Company recognized previously deferred gains of $1.0 million. During the preceding quarter, the Company sold five offshore support vessels and other equipment for net proceeds of $10.2 million and gains of $7.7 million.
In the second quarter, the Company received net litigation settlement proceeds of $14.7 million from an equipment supplier relating to the May 2008 mechanical malfunction and fire onboard the SEACOR Sherman, an anchor handling towing supply vessel then under construction. Upon settlement of the litigation, the Company recognized a gain of $14.7 million included in other income (expense).
Inland River Services - Operating income was $0.4 million on operating revenues of $56.0 million in the second quarter compared with operating income of $7.4 million on operating revenues of $58.0 million in the preceding quarter.
Operating results from the dry-cargo barge pool were $5.4 million lower primarily due to lower rates, a seasonal reduction in activity levels and poor barge fleet logistics as a consequence of difficult operating conditions. Operating results for the 10,000 barrel liquid tank barge fleet were $0.6 million lower primarily due to the cost of U.S. Coast Guard inspections and related repair expenditures. Operating results for the liquid unit tow operation were $0.5 million lower primarily due to costs associated with placing two towboats into operation during the second quarter. Operating results for fleeting operations were $0.9 million lower primarily due to reduced activity as a result of flooding on the upper Mississippi.
During the second quarter, equity losses from 50% or less owned companies of $3.3 million were primarily due to continued intermediary operations following a structural failure of a terminal facility at the Port of Ibicuy, Argentina.
Shipping Services - Operating income was $13.0 million on operating revenues of $53.6 million in the second quarter compared with operating income of $11.8 million on operating revenues of $52.4 million in the preceding quarter.
The increase in operating income was primarily due to an increase in higher yield harbor traffic and lower leased-in equipment costs for harbor towing and bunkering and an improvement in cargo shipping demand for short-sea transportation.
Illinois Corn Processing - Segment profit was $13.5 million on operating revenues of $72.8 million in the second quarter compared with $10.8 million on operating revenues of $58.7 million in the preceding quarter. Operating results in both periods benefited from improved margins as corn prices declined and ethanol prices held firm due to increased export demand and rail delays.
Other - Segment loss was $9.0 million in the second quarter compared with a $3.9 million loss in the preceding quarter. The increase was primarily due to a $5.0 million provision for certain litigation matters related to the Deepwater Horizon oil spill.
Net Income attributable to Noncontrolling Interests in Subsidiaries - During the second quarter, the Company issued a 49% noncontrolling ownership interest in certain Company subsidiaries ("SEA-Vista") operating its fleet of seven U.S.-flag product tankers used for the U.S. coastwise trade of crude oil, petroleum and specialty chemical products as well as contracts for the construction of three U.S.-flag product tankers for $145.7 million, net of issuance costs. During the second quarter, the Company's net income attributable to noncontrolling interests in subsidiaries was primarily due to the noncontrolling interests' proportionate share in the consolidated earnings of Illinois Corn Processing and SEA-Vista.
Share Repurchases - During the quarter ended June 30, 2014, the Company purchased 493,032 shares of its common stock for an aggregate purchase price of $39.2 million. Subsequent to June 30, 2014 and through July 29, 2014, the Company purchased 321,377 shares of its common stock for an aggregate purchase price of $25.4 million. Effective at the close of business on July 31, 2014, the Board of Directors of the Company increased its authorization for repurchases of SEACOR's common stock for a total authorized expenditure of up to $150.0 million. The repurchase of securities may be conducted from time to time through open market purchases, privately negotiated transactions or otherwise depending on market conditions.
Capital Commitments - As of June 30, 2014, the Company's unfunded capital commitments were $412.8 million and included: $86.5 million for 13 offshore support vessels; $1.1 million for two inland river tank barges; $4.6 million for four inland river towboats; $230.2 million for three U.S.-flag product tankers; $78.4 million for one U.S.-flag articulated tug-barge; and $12.0 million for other equipment and improvements. These commitments are payable as follows: $99.7 million is payable during the remainder of 2014; $303.8 million is payable during 2015-2016; and $9.3 million is payable during 2017. This release includes a table detailing expected delivery by vessel class.
Liquidity and Debt - As of June 30, 2014, the Company's balances of cash, cash equivalents, restricted cash, marketable securities, construction reserve funds and Title XI reserve funds totaled $825.9 million and its total outstanding long-term debt was $873.9 million.
SEACOR and its subsidiaries are in the business of owning, operating, investing in and marketing equipment, primarily in the offshore oil and gas, shipping and logistics industries. SEACOR offers customers a diversified suite of services and equipment, including offshore marine, inland river storage and handling, distribution of petroleum, chemical and agricultural commodities, and shipping. SEACOR is dedicated to building innovative, modern, "next generation," efficient marine equipment while providing highly responsive service with the highest safety standards, and dedicated professional employees. SEACOR is publicly traded on the New York Stock Exchange (NYSE) under the symbol CKH.
Certain statements discussed in this release as well as in other reports, materials and oral statements that the Company releases from time to time to the public constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Generally, words such as "anticipate," "estimate," "expect," "project," "intend," "believe," "plan," "target," "forecast" and similar expressions are intended to identify forward-looking statements. Such forward-looking statements concern management's expectations, strategic objectives, business prospects, anticipated economic performance and financial condition and other similar matters. These statements are not guarantees of future performance and actual events or results may differ significantly from these statements. Actual events or results are subject to significant known and unknown risks, uncertainties and other important factors, including decreased demand and loss of revenues as a result of additional safety and certification requirements for drilling activities in the U.S. Gulf of Mexico and delayed approval of applications for such activities, the possibility of U.S. government implemented moratoriums directing operators to cease certain drilling activities in the U.S. Gulf of Mexico and any extension of such moratoriums (the "Moratoriums"), weakening demand for the Company's services as a result of unplanned customer suspensions, cancellations, rate reductions or non-renewals of vessel charters or failures to finalize commitments to charter vessels in response to Moratoriums, increased government legislation and regulation of the Company's businesses could increase cost of operations, increased competition if the Jones Act is repealed, liability, legal fees and costs in connection with the past provision of emergency response services, including the Company's involvement in response to the oil spill as a result of the sinking of the Deepwater Horizon in April 2010, decreased demand for the Company's services as a result of declines in the global economy, declines in valuations in the global financial markets and a lack of liquidity in the credit sectors, including, interest rate fluctuations, availability of credit, inflation rates, change in laws, trade barriers, commodity prices and currency exchange fluctuations, the cyclical nature of the oil and gas industry, activity in foreign countries and changes in foreign political, military and economic conditions, changes in foreign and domestic oil and gas exploration and production activity, safety record requirements related to Offshore Marine Services and Shipping Services, decreased demand for Shipping Services due to construction of additional refined petroleum product, natural gas or crude oil pipelines or due to decreased demand for refined petroleum products, crude oil or chemical products or a change in existing methods of delivery, compliance with U.S. and foreign government laws and regulations, including environmental laws and regulations and economic sanctions, the dependence of Offshore Marine Services and Shipping Services on several customers, consolidation of the Company's customer base, the ongoing need to replace aging vessels, industry fleet capacity, restrictions imposed by the Shipping Acts on the amount of foreign ownership of the Company's Common Stock, operational risks of Offshore Marine Services, Inland River Services and Shipping Services, effects of adverse weather conditions and seasonality, the level of grain export volume, the effect of fuel prices on barge towing costs, variability in freight rates for inland river barges, the effect of international economic and political factors on Inland River Services' operations, sudden and unexpected changes in commodity prices, futures and options, global weather conditions, political instability, changes in currency exchanges rates, and product availability in agriculture commodity trading and logistics activities, adequacy of insurance coverage, the potential for a material weakness in the Company's internal controls over financial reporting and the Company's ability to remediate such potential material weakness, the attraction and retention of qualified personnel by the Company, and various other matters and factors, many of which are beyond the Company's control as well as those discussed in Item 1A (Risk Factors) of the Company's Annual report on Form 10-K. In addition, these statements constitute the Company's cautionary statements under the Private Securities Litigation Reform Act of 1995. It should be understood that it is not possible to predict or identify all such factors. Consequently, the preceding should not be considered to be a complete discussion of all potential risks or uncertainties. Forward-looking statements speak only as of the date of the document in which they are made. The Company disclaims any obligation or undertaking to provide any updates or revisions to any forward-looking statement to reflect any change in the Company's expectations or any change in events, conditions or circumstances on which the forward-looking statement is based, except as required by law. It is advisable, however, to consult any further disclosures the Company makes on related subjects in its filings with the Securities and Exchange Commission, including Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K (if any).
| SEACOR HOLDINGS INC. | ||||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) | ||||||||||||||||||
| (in thousands, except share data, unaudited) | ||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||
| June 30, | June 30, | |||||||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||||
| Operating Revenues | $ | 328,224 | $ | 315,563 | $ | 638,241 | $ | 582,627 | ||||||||||
| Costs and Expenses: | ||||||||||||||||||
| Operating | 231,906 | 240,113 | 450,882 | 441,026 | ||||||||||||||
| Administrative and general | 34,686 | 34,718 | 72,763 | 70,363 | ||||||||||||||
| Depreciation and amortization | 33,220 | 33,783 | 66,612 | 67,331 | ||||||||||||||
| 299,812 | 308,614 | 590,257 | 578,720 | |||||||||||||||
| Gains on Asset Dispositions and Impairments, Net | 4,295 | 12,305 | 8,973 | 14,320 | ||||||||||||||
| Operating Income | 32,707 | 19,254 | 56,957 | 18,227 | ||||||||||||||
| Other Income (Expense): | ||||||||||||||||||
| Interest income | 6,030 | 3,218 | 10,073 | 6,385 | ||||||||||||||
| Interest expense | (10,458 | ) | (7,922 | ) | (21,861 | ) | (20,762 | ) | ||||||||||
| Marketable security gains, net | 731 | 6,557 | 5,801 | 10,552 | ||||||||||||||
| Derivative gains (losses), net | 94 | (825 | ) | (143 | ) | (2,932 | ) | |||||||||||
| Foreign currency gains (losses), net | 1,720 | (916 | ) | 1,521 | (4,927 | ) | ||||||||||||
| Other, net | 10,213 | 195 | 6,558 | 198 | ||||||||||||||
| 8,330 | 307 | 1,949 | (11,486 | ) | ||||||||||||||
| Income from Continuing Operations Before Income Tax Expense and Equity in Earnings (Losses) of 50% or Less Owned Companies | 41,037 | 19,561 | 58,906 | 6,741 | ||||||||||||||
| Income Tax Expense | 13,000 | 7,975 | 19,375 | 5,322 | ||||||||||||||
| Income from Continuing Operations Before Equity in Earnings (Losses) of 50% or Less Owned Companies | 28,037 | 11,586 | 39,531 | 1,419 | ||||||||||||||
| Equity in Earnings (Losses) of 50% or Less Owned Companies, Net of Tax | (512 | ) | 7,710 | 1,709 | 6,841 | |||||||||||||
| Income from Continuing Operations | 27,525 | 19,296 | 41,240 | 8,260 | ||||||||||||||
| Loss from Discontinued Operations, Net of Tax | -- | -- | -- | (10,325 | ) | |||||||||||||
| Net Income (Loss) | 27,525 | 19,296 | 41,240 | (2,065 | ) | |||||||||||||
| Net Income (Loss) attributable to Noncontrolling Interests in Subsidiaries | 6,458 | 25 | 8,664 | (348 | ) | |||||||||||||
| Net Income (Loss) attributable to SEACOR Holdings Inc. | $ | 21,067 | $ | 19,271 | $ | 32,576 | $ | (1,717 | ) | |||||||||
| Net Income (Loss) attributable to SEACOR Holdings Inc.: | ||||||||||||||||||
| Continuing operations | $ | 21,067 | $ | 19,271 | $ | 32,576 | $ | 8,508 | ||||||||||
| Discontinued operations | -- | -- | -- | (10,225 | ) | |||||||||||||
| $ | 21,067 | $ | 19,271 | $ | 32,576 | $ | (1,717 | ) | ||||||||||
| Basic Earnings (Loss) Per Common Share of SEACOR Holdings Inc.: | ||||||||||||||||||
| Continuing operations | $ | 1.05 | $ | 0.97 | $ | 1.62 | $ | 0.43 | ||||||||||
| Discontinued operations | -- | -- | -- | (0.52 | ) | |||||||||||||
| $ | 1.05 | $ | 0.97 | $ | 1.62 | $ | (0.09 | ) | ||||||||||
| Diluted Earnings (Loss) Per Common Share of SEACOR Holdings Inc.: | ||||||||||||||||||
| Continuing operations | $ | 0.98 | $ | 0.91 | $ | 1.58 | $ | 0.42 | ||||||||||
| Discontinued operations | -- | -- | -- | (0.51 | ) | |||||||||||||
| $ | 0.98 | $ | 0.91 | $ | 1.58 | $ | (0.09 | ) | ||||||||||
| Weighted Average Common Shares Outstanding: | ||||||||||||||||||
| Basic | 19,989,402 | 19,825,229 | 20,049,056 | 19,782,318 | ||||||||||||||
| Diluted | 24,584,494 | 24,392,312 | 24,665,869 | 20,114,904 | ||||||||||||||
| SEACOR HOLDINGS INC. | |||||||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||||||||
| (in thousands, except per share data, unaudited) | |||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||
| Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | |||||||||||||||||
| Operating Revenues | $ | 328,224 | $ | 310,017 | $ | 327,861 | $ | 336,784 | $ | 315,563 | |||||||||||
| Costs and Expenses: | |||||||||||||||||||||
| Operating | 231,906 | 218,976 | 228,305 | 239,540 | 240,113 | ||||||||||||||||
| Administrative and general | 34,686 | 38,077 | 39,522 | 31,463 | 34,718 | ||||||||||||||||
| Depreciation and amortization | 33,220 | 33,392 | 33,684 | 33,503 | 33,783 | ||||||||||||||||
| 299,812 | 290,445 | 301,511 | 304,506 | 308,614 | |||||||||||||||||
| Gains on Asset Dispositions and Impairments, Net | 4,295 | 4,678 | 3,957 | 19,230 | 12,305 | ||||||||||||||||
| Operating Income | 32,707 | 24,250 | 30,307 | 51,508 | 19,254 | ||||||||||||||||
| Other Income (Expense): | |||||||||||||||||||||
| Interest income | 6,030 | 4,043 | 4,802 | 4,280 | 3,218 | ||||||||||||||||
| Interest expense | (10,458 | ) | (11,403 | ) | (11,310 | ) | (10,520 | ) | (7,922 | ) | |||||||||||
| Marketable security gains (losses), net | 731 | 5,070 | (3,600 | ) | (1,149 | ) | 6,557 | ||||||||||||||
| Derivative gains (losses), net | 94 | (237 | ) | (5,088 | ) | (303 | ) | (825 | ) | ||||||||||||
| Foreign currency gains (losses), net | 1,720 | (199 | ) | (654 | ) | 2,230 | (916 | ) | |||||||||||||
| Other, net | 10,213 | (3,655 | ) | (89 | ) | 477 | 195 | ||||||||||||||
| 8,330 | (6,381 | ) | (15,939 | ) | (4,985 | ) | 307 | ||||||||||||||
| Income Before Income Tax Expense and Equity In Earnings (Losses) of 50% or Less Owned Companies | 41,037 | 17,869 | 14,368 | 46,523 | 19,561 | ||||||||||||||||
| Income Tax Expense | 13,000 | 6,375 | 5,441 | 15,984 | 7,975 | ||||||||||||||||
| Income Before Equity in Earnings (Losses) of 50% or Less Owned Companies | 28,037 | 11,494 | 8,927 | 30,539 | 11,586 | ||||||||||||||||
| Equity in Earnings (Losses) of 50% or Less Owned Companies, Net of Tax | (512 | ) | 2,221 | 193 | 230 | 7,710 | |||||||||||||||
| Net Income | 27,525 | 13,715 | 9,120 | 30,769 | 19,296 | ||||||||||||||||
| Net Income attributable to Noncontrolling Interests in Subsidiaries | 6,458 | 2,206 | 724 | 478 | 25 | ||||||||||||||||
| Net Income attributable to SEACOR Holdings Inc. | $ | 21,067 | $ | 11,509 | $ | 8,396 | $ | 30,291 | $ | 19,271 | |||||||||||
| Basic Earnings Per Common Share of SEACOR Holdings Inc. | $ | 1.05 | $ | 0.57 | $ | 0.42 | $ | 1.52 | $ | 0.97 | |||||||||||
| Diluted Earnings Per Common Share of SEACOR Holdings Inc. | $ | 0.98 | $ | 0.56 | $ | 0.41 | $ | 1.36 | $ | 0.91 | |||||||||||
| Weighted Average Common Shares of Outstanding: | |||||||||||||||||||||
| Basic | 19,989 | 20,109 | 20,043 | 19,965 | 19,825 | ||||||||||||||||
| Diluted | 24,584 | 20,546 | 20,530 | 24,602 | 24,392 | ||||||||||||||||
| Common Shares Outstanding at Period End | 20,144 | 20,597 | 20,382 | 20,332 | 20,184 | ||||||||||||||||
| SEACOR HOLDINGS INC. | |||||||||||||||||||||
| SEGMENT INFORMATION | |||||||||||||||||||||
| (in thousands, unaudited) | |||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||
| Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | |||||||||||||||||
| Offshore Marine Services | |||||||||||||||||||||
| Operating Revenues | $ | 138,247 | $ | 129,001 | $ | 148,371 | $ | 156,198 | $ | 138,678 | |||||||||||
| Costs and Expenses: | |||||||||||||||||||||
| Operating | 93,755 | 94,043 | 99,320 | 95,113 | 97,581 | ||||||||||||||||
| Administrative and general | 13,426 | 15,160 | 17,085 | 14,132 | 14,235 | ||||||||||||||||
| Depreciation and amortization | 16,448 | 16,304 | 16,207 | 16,470 | 16,460 | ||||||||||||||||
| 123,629 | 125,507 | 132,612 | 125,715 | 128,276 | |||||||||||||||||
| Gains on Asset Dispositions | 3,526 | 7,738 | 3,087 | 15,343 | 7,895 | ||||||||||||||||
| Operating Income | 18,144 | 11,232 | 18,846 | 45,826 | 18,297 | ||||||||||||||||
| Other Income (Expense): | |||||||||||||||||||||
| Derivative gains (losses), net | (70 | ) | (61 | ) | (274 | ) | 32 | 175 | |||||||||||||
| Foreign currency gains (losses), net | 1,322 | 107 | (49 | ) | 1,937 | (833 | ) | ||||||||||||||
| Other, net | 14,739 | -- | (8 | ) | -- | 11 | |||||||||||||||
| Equity in Earnings of 50% or Less Owned Companies, Net of Tax | 2,244 | 2,641 | 2,988 | 1,527 | 7,694 | ||||||||||||||||
| Segment Profit(1) | $ | 36,379 | $ | 13,919 | $ | 21,503 | $ | 49,322 | $ | 25,344 | |||||||||||
| OIBDA(2) | $ | 34,592 | $ | 27,536 | $ | 35,053 | $ | 62,296 | $ | 34,757 | |||||||||||
| Drydocking expenditures (included in operating costs and expenses) | $ | 10,887 | $ | 11,080 | $ | 11,899 | $ | 9,017 | $ | 14,804 | |||||||||||
| Out-of-service days for drydockings | 575 | 635 | 668 | 635 | 994 | ||||||||||||||||
| Inland River Services | |||||||||||||||||||||
| Operating Revenues | $ | 56,007 | $ | 57,959 | $ | 65,437 | $ | 52,742 | $ | 47,357 | |||||||||||
| Costs and Expenses: | |||||||||||||||||||||
| Operating | 45,047 | 39,674 | 42,472 | 38,473 | 35,193 | ||||||||||||||||
| Administrative and general | 3,835 | 4,337 | 4,034 | 3,431 | 3,921 | ||||||||||||||||
| Depreciation and amortization | 7,564 | 7,370 | 7,430 | 6,869 | 7,078 | ||||||||||||||||
| 56,446 | 51,381 | 53,936 | 48,773 | 46,192 | |||||||||||||||||
| Gains on Asset Dispositions | 810 | 853 | 779 | 783 | 4,296 | ||||||||||||||||
| Operating Income | 371 | 7,431 | 12,280 | 4,752 | 5,461 | ||||||||||||||||
| Other Income (Expense): | |||||||||||||||||||||
| Foreign currency gains (losses), net | 474 | (327 | ) | (160 | ) | (89 | ) | 219 | |||||||||||||
| Other, net | -- | (38 | ) | -- | -- | -- | |||||||||||||||
| Equity in Earnings (Losses) of 50% or Less Owned Companies, Net of Tax | (3,335 | ) | (412 | ) | (5,320 | ) | 80 | 1 | |||||||||||||
| Segment Profit (Loss)(1) | $ | (2,490 | ) | $ | 6,654 | $ | 6,800 | $ | 4,743 | $ | 5,681 | ||||||||||
| OIBDA(2) | $ | 7,935 | $ | 14,801 | $ | 19,710 | $ | 11,621 | $ | 12,539 | |||||||||||
| SEACOR HOLDINGS INC. | |||||||||||||||||||||
| SEGMENT INFORMATION (continued) | |||||||||||||||||||||
| (in thousands, unaudited) | |||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||
| Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | |||||||||||||||||
| Shipping Services | |||||||||||||||||||||
| Operating Revenues | $ | 53,575 | $ | 52,401 | $ | 51,405 | $ | 48,200 | $ | 48,103 | |||||||||||
| Costs and Expenses: | |||||||||||||||||||||
| Operating | 28,018 | 26,997 | 32,900 | 28,215 | 29,554 | ||||||||||||||||
| Administrative and general | 5,421 | 5,896 | 5,639 | 5,133 | 6,124 | ||||||||||||||||
| Depreciation and amortization | 7,115 | 7,754 | 7,754 | 7,841 | 7,907 | ||||||||||||||||
| 40,554 | 40,647 | 46,293 | 41,189 | 43,585 | |||||||||||||||||
| Gains (Losses) on Asset Dispositions | (41 | ) | -- | 91 | 3,104 | 114 | |||||||||||||||
| Operating Income | 12,980 | 11,754 | 5,203 | 10,115 | 4,632 | ||||||||||||||||
| Other Income (Expense): | |||||||||||||||||||||
| Foreign currency gains (losses), net | 1 | (10 | ) | (5 | ) | 6 | (8 | ) | |||||||||||||
| Other, net | 158 | (3,933 | ) | 18 | 540 | 188 | |||||||||||||||
| Equity in Earnings (Losses) of 50% or Less Owned Companies, Net of Tax | 1,564 | 753 | 376 | (1,413 | ) | (403 | ) | ||||||||||||||
| Segment Profit(1) | $ | 14,703 | $ | 8,564 | $ | 5,592 | $ | 9,248 | $ | 4,409 | |||||||||||
| OIBDA(2) | $ | 20,095 | $ | 19,508 | $ | 12,957 | $ | 17,956 | $ | 12,539 | |||||||||||
| Drydocking expenditures for U.S.-flag product tankers (included in operating costs and expenses) | $ | -- | $ | 42 | $ | 5,504 | $ | 664 | $ | 2,884 | |||||||||||
| Out-of-service days for drydockings of U.S.-flag product tankers | -- | -- | 26 | 5 | 34 | ||||||||||||||||
| Illinois Corn Processing | |||||||||||||||||||||
| Operating Revenues | $ | 72,798 | $ | 58,656 | $ | 46,875 | $ | 52,580 | $ | 61,378 | |||||||||||
| Costs and Expenses: | |||||||||||||||||||||
| Operating | 56,429 | 47,274 | 38,812 | 52,390 | 59,402 | ||||||||||||||||
| Administrative and general | 594 | 511 | 465 | 428 | 477 | ||||||||||||||||
| Depreciation and amortization | 1,010 | 990 | 1,330 | 1,489 | 1,489 | ||||||||||||||||
| 58,033 | 48,775 | 40,607 | 54,307 | 61,368 | |||||||||||||||||
| Operating Income (Loss) | 14,765 | 9,881 | 6,268 | (1,727 | ) | 10 | |||||||||||||||
| Other Income (Expense): | |||||||||||||||||||||
| Derivative gains (losses), net | (1,519 | ) | 718 | (3,719 | ) | 1,129 | 473 | ||||||||||||||
| Other, net | 300 | 193 | -- | -- | -- | ||||||||||||||||
| Segment Profit (Loss)(1) | $ | 13,546 | $ | 10,792 | $ | 2,549 | $ | (598 | ) | $ | 483 | ||||||||||
| SEACOR HOLDINGS INC. | |||||||||||||||||||||
| SEGMENT INFORMATION (continued) | |||||||||||||||||||||
| (in thousands, unaudited) | |||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||
| Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | |||||||||||||||||
| Other | |||||||||||||||||||||
| Operating Revenues | $ | 8,437 | $ | 12,992 | $ | 16,675 | $ | 27,881 | $ | 20,652 | |||||||||||
| Costs and Expenses: | |||||||||||||||||||||
| Operating | 9,464 | 11,936 | 15,665 | 26,141 | 18,960 | ||||||||||||||||
| Administrative and general | 3,449 | 3,111 | 1,888 | 1,429 | 1,323 | ||||||||||||||||
| Depreciation and amortization | 82 | 85 | 91 | 92 | 96 | ||||||||||||||||
| 12,995 | 15,132 | 17,644 | 27,662 | 20,379 | |||||||||||||||||
| Losses on Asset Dispositions and Impairments, Net | -- | (409 | ) | -- | -- | -- | |||||||||||||||
| Operating Income (Loss) | (4,558 | ) | (2,549 | ) | (969 | ) | 219 | 273 | |||||||||||||
| Other Income (Expense): | |||||||||||||||||||||
| Derivative gains (losses), net | 1,500 | (733 | ) | 198 | (380 | ) | (450 | ) | |||||||||||||
| Foreign currency gains (losses), net | 53 | 9 | (21 | ) | 15 | (169 | ) | ||||||||||||||
| Other, net | (5,013 | ) | 175 | (39 | ) | (3 | ) | -- | |||||||||||||
| Equity in Earnings (Losses) of 50% or Less Owned Companies, Net of Tax | (985 | ) | (761 | ) | 2,149 | 36 | 418 | ||||||||||||||
| Segment Profit (Loss)(1) | $ | (9,003 | ) | $ | (3,859 | ) | $ | 1,318 | $ | (113 | ) | $ | 72 | ||||||||
| Corporate and Eliminations | |||||||||||||||||||||
| Operating Revenues | $ | (840 | ) | $ | (992 | ) | $ | (902 | ) | $ | (817 | ) | $ | (605 | ) | ||||||
| Costs and Expenses: | |||||||||||||||||||||
| Operating | (807 | ) | (948 | ) | (864 | ) | (792 | ) | (577 | ) | |||||||||||
| Administrative and general | 7,961 | 9,062 | 10,411 | 6,910 | 8,638 | ||||||||||||||||
| Depreciation and amortization | 1,001 | 889 | 872 | 742 | 753 | ||||||||||||||||
| 8,155 | 9,003 | 10,419 | 6,860 | 8,814 | |||||||||||||||||
| Losses on Asset Dispositions and Impairments, Net | -- | (3,504 | ) | -- | -- | -- | |||||||||||||||
| Operating Loss | $ | (8,995 | ) | $ | (13,499 | ) | $ | (11,321 | ) | $ | (7,677 | ) | $ | (9,419 | ) | ||||||
| Other Income (Expense): | |||||||||||||||||||||
| Derivative gains (losses), net | $ | 183 | $ | (161 | ) | $ | (1,293 | ) | $ | (1,084 | ) | $ | (1,023 | ) | |||||||
| Foreign currency gains (losses), net | (130 | ) | 22 | (419 | ) | 361 | (125 | ) | |||||||||||||
| Other, net | 29 | (52 | ) | (60 | ) | (60 | ) | (4 | ) | ||||||||||||
______________________
| (1) | Includes amounts attributable to both SEACOR and noncontrolling interests. |
| (2) | Non-GAAP Financial Measure. The Company, from time to time, discloses and discusses OIBDA, a non-GAAP financial measure, for certain of its operating segments in its public releases and other filings with the Securities and Exchange Commission. The Company defines OIBDA as operating income (loss) plus depreciation and amortization. The Company's measure of OIBDA may not be comparable to similarly titled measures presented by other companies. Other companies may calculate OIBDA differently than the Company, which may limit its usefulness as a comparative measure. In addition, this measurement does not necessarily represent funds available for discretionary use and is not a measure of its ability to fund its cash needs. OIBDA is a financial metric used by management (i) as a supplemental internal measure for planning and forecasting overall expectations and for evaluating actual results against such expectations; (ii) as a criteria for annual incentive bonuses paid to the Company officers and other shore-based employees; and (iii) to compare to the OIBDA of other companies when evaluating potential acquisitions. |
| SEACOR HOLDINGS INC. | |||||||||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||||||||
| (in thousands, unaudited) | |||||||||||||||||
| Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | |||||||||||||
| ASSETS | |||||||||||||||||
| Current Assets: | |||||||||||||||||
| Cash and cash equivalents | $ | 453,415 | $ | 374,790 | $ | 527,435 | $ | 332,767 | $ | 394,783 | |||||||
| Restricted cash | 14,346 | 14,490 | 12,175 | 20,893 | 16,776 | ||||||||||||
| Marketable securities | 33,275 | 29,522 | 24,292 | 25,660 | 27,264 | ||||||||||||
| Receivables: | |||||||||||||||||
| Trade, net of allowance for doubtful accounts | 198,768 | 203,785 | 215,768 | 211,853 | 188,128 | ||||||||||||
| Other | 50,571 | 41,292 | 48,181 | 39,774 | 37,204 | ||||||||||||
| Inventories | 20,207 | 24,962 | 27,615 | 25,442 | 22,955 | ||||||||||||
| Deferred income taxes | 116 | 116 | 116 | 3,530 | 3,530 | ||||||||||||
| Prepaid expenses and other | 12,837 | 8,292 | 6,701 | 10,746 | 11,715 | ||||||||||||
| Total current assets | 783,535 | 697,249 | 862,283 | 670,665 | 702,355 | ||||||||||||
| Property and Equipment: | |||||||||||||||||
| Historical cost | 2,216,627 | 2,224,212 | 2,199,183 | 2,208,315 | 2,212,929 | ||||||||||||
| Accumulated depreciation | (888,442 | ) | (894,511 | ) | (866,330 | ) | (835,604 | ) | (806,672 | ) | |||||||
| 1,328,185 | 1,329,701 | 1,332,853 | 1,372,711 | 1,406,257 | |||||||||||||
| Construction in progress | 297,523 | 325,529 | 143,482 | 129,481 | 133,985 | ||||||||||||
| Net property and equipment | 1,625,708 | 1,655,230 | 1,476,335 | 1,502,192 | 1,540,242 | ||||||||||||
| Investments, at Equity, and Advances to 50% or Less Owned Companies | 484,164 | 456,446 | 440,853 | 365,891 | 293,793 | ||||||||||||
| Construction Reserve Funds & Title XI Reserve Funds | 324,856 | 264,339 | 261,739 | 229,021 | 150,375 | ||||||||||||
| Goodwill | 18,012 | 17,963 | 17,985 | 17,978 | 17,978 | ||||||||||||
| Intangible Assets, Net | 10,754 | 11,567 | 12,423 | 13,583 | 14,594 | ||||||||||||
| Other Assets | 48,964 | 42,241 | 44,615 | 52,394 | 48,996 | ||||||||||||
| $ | 3,295,993 | $ | 3,145,035 | $ | 3,116,233 | $ | 2,851,724 | $ | 2,768,333 | ||||||||
| LIABILITIES AND EQUITY | |||||||||||||||||
| Current Liabilities: | |||||||||||||||||
| Current portion of long-term debt | $ | 43,557 | $ | 49,171 | $ | 45,323 | $ | 26,973 | $ | 25,109 | |||||||
| Accounts payable and accrued expenses | 87,235 | 83,296 | 85,477 | 73,063 | 73,185 | ||||||||||||
| Other current liabilities | 119,501 | 132,190 | 123,619 | 124,788 | 122,434 | ||||||||||||
| Total current liabilities | 250,293 | 264,657 | 254,419 | 224,824 | 220,728 | ||||||||||||
| Long-Term Debt | 830,303 | 830,887 | 834,118 | 675,206 | 674,444 | ||||||||||||
| Deferred Income Taxes | 456,403 | 456,883 | 457,827 | 437,436 | 421,623 | ||||||||||||
| Deferred Gains and Other Liabilities | 175,229 | 145,483 | 144,441 | 133,525 | 115,102 | ||||||||||||
| Total liabilities | 1,712,228 | 1,697,910 | 1,690,805 | 1,470,991 | 1,431,897 | ||||||||||||
| Equity: | |||||||||||||||||
| SEACOR Holdings Inc. stockholders' equity: | |||||||||||||||||
| Preferred stock | -- | -- | -- | -- | -- | ||||||||||||
| Common stock | 375 | 374 | 372 | 372 | 370 | ||||||||||||
| Additional paid-in capital | 1,479,942 | 1,401,294 | 1,394,621 | 1,358,273 | 1,347,909 | ||||||||||||
| Retained earnings | 1,127,846 | 1,106,779 | 1,095,270 | 1,086,874 | 1,056,583 | ||||||||||||
| Shares held in treasury, at cost | (1,126,322 | ) | (1,087,101 | ) | (1,088,219 | ) | (1,088,219 | ) | (1,089,061 | ) | |||||||
| Accumulated other comprehensive income (loss), net of tax | 225 | (929 | ) | (1,192 | ) | (1,809 | ) | (4,243 | ) | ||||||||
| 1,482,066 | 1,420,417 | 1,400,852 | 1,355,491 | 1,311,558 | |||||||||||||
| Noncontrolling interests in subsidiaries | 101,699 | 26,708 | 24,576 | 25,242 | 24,878 | ||||||||||||
| Total equity | 1,583,765 | 1,447,125 | 1,425,428 | 1,380,733 | 1,336,436 | ||||||||||||
| $ | 3,295,993 | $ | 3,145,035 | $ | 3,116,233 | $ | 2,851,724 | $ | 2,768,333 | ||||||||
| SEACOR HOLDINGS INC. | |||||||||||
| FLEET COUNTS | |||||||||||
| (unaudited) | |||||||||||
| Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | |||||||
| Offshore Marine Services | |||||||||||
| Anchor handling towing supply | 18 | 18 | 18 | 18 | 18 | ||||||
| Crew | 38 | 39 | 42 | 43 | 45 | ||||||
| Mini-supply | 7 | 8 | 8 | 8 | 8 | ||||||
| Standby safety | 25 | 25 | 25 | 25 | 25 | ||||||
| Supply | 27 | 26 | 27 | 26 | 26 | ||||||
| Towing supply | 3 | 3 | 3 | 3 | 3 | ||||||
| Specialty | 9 | 9 | 12 | 12 | 12 | ||||||
| Liftboats | 15 | 15 | 15 | 15 | 17 | ||||||
| Wind farm utility | 35 | 34 | 34 | 33 | 32 | ||||||
| 177 | 177 | 184 | 183 | 186 | |||||||
| Inland River Services | |||||||||||
| Dry-cargo barges | 1,463 | 1,415 | 1,405 | 1,409 | 1,413 | ||||||
| Liquid tank barges | 74 | 74 | 74 | 75 | 75 | ||||||
| Deck barges | 20 | 20 | 20 | 20 | 20 | ||||||
| Towboats | 32 | 32 | 32 | 31 | 31 | ||||||
| Dry-cargo vessel | -- | -- | 1 | 1 | 1 | ||||||
| 1,589 | 1,541 | 1,532 | 1,536 | 1,540 | |||||||
| Shipping Services(1) | |||||||||||
| U.S.-flag: | |||||||||||
| Product tankers | 7 | 7 | 7 | 7 | 7 | ||||||
| RORO/deck barges | 7 | 7 | 7 | 7 | 7 | ||||||
| Dry-bulk articulated tug-barge | 1 | 1 | 1 | 1 | 1 | ||||||
| Harbor tugs | 24 | 24 | 24 | 24 | 24 | ||||||
| Ocean liquid tank barges | 5 | 5 | 5 | 5 | 5 | ||||||
| Foreign-flag: | |||||||||||
| Harbor tugs | 4 | 4 | 4 | 4 | 4 | ||||||
| Very large gas carriers | 3 | 3 | 3 | 3 | -- | ||||||
| Short-sea container/RORO | 7 | 8 | 8 | 7 | 8 | ||||||
| 58 | 59 | 59 | 58 | 56 | |||||||
______________________
| (1) | For each of the periods presented, the Company provided technical management services for two additional vessels. |
| SEACOR HOLDINGS INC. | ||||||||||||||||||||||||||
| EXPECTED FLEET DELIVERIES | ||||||||||||||||||||||||||
| (unaudited) | ||||||||||||||||||||||||||
| 2014 | 2015 | 2016 | 2017 | |||||||||||||||||||||||
| Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Total | ||||||||||||||
| Offshore Marine Services | ||||||||||||||||||||||||||
| Crew | 1 | 2 | -- | 1 | 2 | 2 | 1 | -- | -- | -- | -- | -- | 9 | |||||||||||||
| Supply(1) | 1 | -- | -- | 1 | -- | -- | -- | -- | -- | -- | -- | -- | 2 | |||||||||||||
| Wind farm utility | -- | 1 | -- | 1 | -- | -- | -- | -- | -- | -- | -- | -- | 2 | |||||||||||||
| Inland River Services | ||||||||||||||||||||||||||
| Liquid tank barges | -- | 1 | 1 | -- | -- | -- | -- | -- | -- | -- | -- | -- | 2 | |||||||||||||
| Towboats | -- | 2 | 1 | 1 | -- | -- | -- | -- | -- | -- | -- | -- | 4 | |||||||||||||
| Shipping Services | ||||||||||||||||||||||||||
| U.S.-flag product tankers | -- | -- | -- | -- | -- | -- | -- | 1 | -- | 1 | 1 | -- | 3 | |||||||||||||
| U.S.-flag articulated tug-barge | -- | -- | -- | -- | -- | -- | -- | -- | 1 | -- | -- | -- | 1 | |||||||||||||
______________________
| (1) | To be sold to SEACOR OSV Partners I LP, a 50% or less owned company, upon delivery. |
| SEACOR HOLDINGS INC. | |||||||||||||||||||||
| OFFSHORE MARINE SERVICES | |||||||||||||||||||||
| TIME CHARTER OPERATING DATA | |||||||||||||||||||||
| (unaudited) | |||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||
| Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | |||||||||||||||||
| Rates Per Day Worked: | |||||||||||||||||||||
| Anchor handling towing supply | $ | 25,796 | $ | 24,841 | $ | 26,773 | $ | 29,008 | $ | 23,635 | |||||||||||
| Crew | 9,222 | 8,664 | 8,627 | 8,553 | 7,719 | ||||||||||||||||
| Mini-supply | 6,627 | 7,148 | 7,805 | 8,048 | 7,721 | ||||||||||||||||
| Standby safety | 10,932 | 10,679 | 10,584 | 9,922 | 9,621 | ||||||||||||||||
| Supply | 16,948 | 17,156 | 16,906 | 17,541 | 16,864 | ||||||||||||||||
| Towing supply | 9,339 | 10,128 | 8,744 | 10,970 | 9,156 | ||||||||||||||||
| Specialty | 26,860 | 19,200 | 31,856 | 37,121 | 24,822 | ||||||||||||||||
| Liftboats | 23,017 | 22,219 | 26,072 | 25,001 | 22,062 | ||||||||||||||||
| Overall Average Rates Per Day Worked(excluding wind farm utility) | 15,470 | 14,324 | 15,355 | 15,677 | 13,588 | ||||||||||||||||
| Wind farm utility | 2,553 | 2,423 | 2,427 | 2,315 | 2,302 | ||||||||||||||||
| Overall Average Rates Per Day Worked | 12,259 | 11,659 | 12,279 | 12,454 | 11,010 | ||||||||||||||||
| Utilization: | |||||||||||||||||||||
| Anchor handling towing supply | 83 | % | 77 | % | 74 | % | 75 | % | 74 | % | |||||||||||
| Crew | 75 | % | 81 | % | 84 | % | 88 | % | 90 | % | |||||||||||
| Mini-supply | 81 | % | 92 | % | 94 | % | 96 | % | 97 | % | |||||||||||
| Standby safety | 88 | % | 88 | % | 88 | % | 88 | % | 86 | % | |||||||||||
| Supply | 82 | % | 86 | % | 82 | % | 75 | % | 83 | % | |||||||||||
| Towing supply | 74 | % | 92 | % | 84 | % | 83 | % | 79 | % | |||||||||||
| Specialty | 52 | % | 47 | % | 81 | % | 58 | % | 54 | % | |||||||||||
| Liftboats | 80 | % | 60 | % | 73 | % | 82 | % | 69 | % | |||||||||||
| Overall Fleet Utilization (excluding wind farm utility) | 80 | % | 80 | % | 82 | % | 83 | % | 82 | % | |||||||||||
| Wind farm utility | 91 | % | 81 | % | 90 | % | 95 | % | 93 | % | |||||||||||
| Overall Fleet Utilization | 83 | % | 80 | % | 84 | % | 86 | % | 84 | % | |||||||||||
| Available Days: | |||||||||||||||||||||
| Anchor handling towing supply | 1,547 | 1,530 | 1,564 | 1,564 | 1,547 | ||||||||||||||||
| Crew | 2,533 | 2,605 | 2,740 | 2,844 | 3,057 | ||||||||||||||||
| Mini-supply | 479 | 540 | 552 | 552 | 565 | ||||||||||||||||
| Standby safety | 2,184 | 2,160 | 2,208 | 2,208 | 2,184 | ||||||||||||||||
| Supply | 1,407 | 1,530 | 1,564 | 1,564 | 1,538 | ||||||||||||||||
| Towing supply | 182 | 180 | 184 | 184 | 182 | ||||||||||||||||
| Specialty | 273 | 270 | 276 | 327 | 364 | ||||||||||||||||
| Liftboats | 1,365 | 1,350 | 1,380 | 1,543 | 1,614 | ||||||||||||||||
| Overall Fleet Available Days(excluding wind farm utility) | 9,970 | 10,165 | 10,468 | 10,786 | 11,051 | ||||||||||||||||
| Wind farm utility | 2,912 | 2,863 | 2,959 | 2,978 | 2,889 | ||||||||||||||||
| Overall Fleet Available Days | 12,882 | 13,028 | 13,427 | 13,764 | 13,940 | ||||||||||||||||
For additional information, contact
Molly Hottinger
(954) 627-5278
or visit SEACOR's website at www.seacorholdings.com
Source: SEACOR Holdings Inc.