SEACOR Holdings Announces Results For The Second Quarter Ended June 30, 2019

Seacor Holdings Press Release Jul 24 2019

FORT LAUDERDALE, Fla., July 24, 2019 (GLOBE NEWSWIRE) -- SEACOR Holdings Inc. (NYSE:CKH) (the “Company”) today announced its results for the quarter ended June 30, 2019:

  • Net income attributable to stockholders was $14.6 million ($0.76 per diluted share) compared with $45.1 million ($2.14 per diluted share) for the quarter ended June 30, 2018, which benefited from a net gain of $42.6 million ($1.89 per diluted share) related to the sale of the Company's interest in Hawker Pacific Airservices.
  • Operating income, excluding gains on asset dispositions, was $10.4 million, a $1.1 million decrease compared with the quarter ended June 30, 2018.
  • “Cash Earnings” were $32.9 million compared with $2.3 million for the quarter ended June 30, 2018.

The Company uses the non-GAAP financial measures "Cash Earnings" and OIBDA in this release; a reconciliation to their closest U.S. GAAP measure is included in "Use of non-GAAP Financial Measures" in this release.

Charles Fabrikant, Executive Chairman, commented:

"The flooding on the U.S. Inland Waterways in the second quarter was historic in both duration and breadth of the river system that was affected. The lower Mississippi River at Baton Rouge, LA has been above flood stage since January and likely won't fall below flood stage until late August exceeding a record that dates to the 1920's. The immediate impact from the high water was a 26% reduction of exports through the center Gulf in the second quarter compared with a year ago. The effects will continue as corn production is expected to decline due to the delay in planting the current year crop. We have already seen a spike in corn and bean prices, which negatively impacts the export market further. The flooding also significantly impacted the upper Mississippi, Illinois and Arkansas rivers, as well as the St. Louis harbor, which was closed for 45 days. Our terminal and fleeting locations in St. Louis lost business and incurred additional costs to prepare and secure our facilities and assets to prevent damage or loss. At present, certain portions of our operations are beginning to return to "normal," however, I suspect we will be feeling the effects of the flooding for some time to come."

Operating Discussion

Ocean Transportation & Logistics Services - Operating income and OIBDA attributable to SEACOR (excluding our partner’s noncontrolling interests in SEA-Vista) were $16.1 million and $23.2 million in the current year quarter compared with $6.5 million and $14.9 million in the prior year quarter, respectively.

Operating income in the current year quarter benefited from an increase in harbor towing activities, container and project cargo activity between the U.S., the Bahamas and the Caribbean and lower dry-docking costs.

Inland Transportation & Logistics Services - Operating income (loss) and OIBDA were $(1.5) million and $4.2 million in the current year quarter compared with $2.1 million and $8.3 million in the prior year quarter, respectively. Operating income (loss) and OIBDA included gains on asset dispositions of $0.3 million and $0.5 million in the current year quarter and prior year quarter, respectively.

Operating results in the current year quarter were impacted by prolonged flooding throughout the U.S. Inland Waterways resulting in a severe disruption to bulk transportation activities. Dry-cargo barge pool revenues declined year over year but were offset by lower operating expenses, primarily towing costs. Flooding closed the St. Louis harbor for 45 days during the current year quarter and restricted activity at the Company's terminal and fleeting locations; the volumes handled by the Company's terminals in the St. Louis area were approximately 60% lower in the current year quarter compared with the prior year quarter.

Witt O’Brien’s - Operating income and OIBDA were $1.0 million and $1.2 million in the current year quarter compared with $4.6 million and $4.8 million in the preceding quarter, and $7.3 million and $7.8 million in the prior year quarter, respectively. Operating income in the current year quarter was impacted by lower revenues following the successful completion of certain major task orders related to long-term recovery programs in Texas and the U.S. Virgin Islands, and the conclusion of disaster response work for multiple city and county governments. Results were also impacted by a bad debt charge. The quarter also included increased administrative and general expenses necessary to support the significant growth following the 2017 hurricanes and development of a broader range of post-disaster services.

Capital Commitments - The Company’s capital commitments as of June 30, 2019 were $28.9 million, including the Company's interest in two foreign-flag rail ferries, two inland river towboats, other equipment and vessel and terminal improvements.

Liquidity and Debt - During the current year quarter, the Company repurchased $13.3 million in principal amount of its 3.0% Convertible Senior Notes for $13.1 million resulting in debt extinguishment losses of $0.5 million.

As of June 30, 2019, the Company’s balances of cash, cash equivalents, restricted cash, restricted cash equivalents, marketable securities and construction reserve funds totaled $183.3 million. Total outstanding debt was $312.7 million, including $77.9 million of SEA-Vista debt that is non-recourse to the Company. SEA-Vista is a consolidated joint venture with $100.0 million of borrowing capacity under its credit facility as of June 30, 2019.

During the preceding quarter ended March 31, 2019, the Company entered into a new $125.0 million revolving credit facility. As of June 30, 2019, the Company had no borrowings outstanding under this facility.

Adoption of New Accounting Standards. On January 1, 2019, the Company adopted Financial Accounting Standards Board (“FASB”) Topic 842, Leases (“Topic 842”). Upon adoption, the Company recorded operating lease right-of-use assets and lease liabilities of $174.6 million for certain of its equipment, office, real property and land leases. In addition, the Company recognized a cumulative-effect adjustment of $25.4 million, net of tax, to the opening balance of retained earnings primarily for previously deferred gains related to sale-leaseback transactions.

SEACOR Holdings Inc. (“SEACOR”) is a diversified holding company with interests in domestic and international transportation and logistics and risk management consultancy. 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. Forward-looking statements are inherently uncertain and subject to a variety of assumptions, risks and uncertainties that could cause actual results to differ materially from those anticipated or expected by management of the Company. 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 risks relating to 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, increased government legislation and regulation of the Company’s businesses that could increase the cost of operations, increased competition if the Jones Act is repealed, liability, legal fees and costs in connection with the provision of emergency response services, 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, 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 Ocean Transportation & Logistics Services, decreased demand for Ocean Transportation & Logistics 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 Ocean Transportation & Logistics Services and Inland Transportation & Logistics Services on several key 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 Ocean Transportation & Logistics Services and Inland Transportation & Logistics 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 Transportation & Logistics Services’ operations, the ability to realize anticipated benefits from acquisitions and other strategic transactions, adequacy of insurance coverage, the attraction and retention of qualified personnel by the Company, changes in U.S. and international trade policies 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 and other reports filed by the Company with the Securities and Exchange Commission (“SEC”). 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. Given these risk factors, investors and analysts should not place undue reliance on forward-looking statements. 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 SEC, including Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K (if any). These statements constitute the Company’s cautionary statements under the Private Securities Litigation Reform Act of 1995.

For additional information, contact Investor Relations at (954) 627-5278 or visit SEACOR’s website at www.seacorholdings.com.

SEACOR HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except share data, unaudited)

Three Months Ended Six Months Ended
June 30, June 30,
2019 2018 2019 2018
Operating Revenues $ 197,023 $ 216,831 $ 406,547 $ 401,655
Costs and Expenses:
Operating 142,871 162,168 289,982 293,945
Administrative and general 26,714 24,311 53,460 50,106
Depreciation and amortization 17,009 18,844 34,145 38,453
186,594 205,323 377,587 382,504
Gains on Asset Dispositions, Net 677 506 1,114 7,551
Operating Income 11,106 12,014 30,074 26,702
Other Income (Expense):
Interest income 1,885 2,179 3,785 4,035
Interest expense (4,903) (8,604) (10,016) (17,167)
Debt extinguishment losses, net (503) (5,407) (1,296) (5,449)
Marketable security gains (losses), net 13,284 782 16,352 (3,016)
Foreign currency gains (losses), net (191) (1,346) 214 344
Other, net 25 54,311 (619) 54,594
9,597 41,915 8,420 33,341
Income Before Income Tax Expense and Equity in Earnings (Losses) of 50% or Less Owned Companies 20,703 53,929 38,494 60,043
Income Tax Expense 3,390 9,853 5,595 9,572
Income Before Equity in Earnings (Losses) of 50% or Less Owned Companies 17,313 44,076 32,899 50,471
Equity in Earnings (Losses) of 50% or Less Owned Companies, Net of Tax (312) 1,931 (2,830) 1,094
Net Income 17,001 46,007 30,069 51,565
Net Income Attributable to Noncontrolling Interests in Subsidiaries 2,448 881 7,783 5,798
Net Income Attributable to SEACOR Holdings Inc. $ 14,553 $ 45,126 $ 22,286 $ 45,767
Basic Earnings Per Common Share of SEACOR Holdings Inc. $ 0.80 $ 2.50 $ 1.22 $ 2.54
Diluted Earnings Per Common Share of SEACOR Holdings Inc. $ 0.76 $ 2.14 $ 1.17 $ 2.32
Weighted Average Common Shares Outstanding:
Basic 18,288,879 18,076,944 18,260,876 18,023,752
Diluted 19,633,523 22,587,543 19,599,990 22,462,300
OIBDA(1) $ 28,115 $ 30,858 $ 64,219 $ 65,155
OIBDA Attributable to SEACOR Holdings Inc.(1) $ 21,905 $ 25,978 $ 48,901 $ 53,143

______________________

  1. Non-GAAP Financial Measure. See explanation of use of non-GAAP financial measures included elsewhere in this release.


SEACOR HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(in thousands, except per share data, unaudited)

Three Months Ended
Jun. 30,
2019
Mar. 31,
2019
Dec. 31,
2018
Sep. 30,
2018
Jun. 30,
2018
Operating Revenues $ 197,023 $ 209,524 $ 213,838 $ 220,257 $ 216,831
Costs and Expenses:
Operating 142,871 147,111 150,374 147,529 162,168
Administrative and general 26,714 26,746 26,718 26,083 24,311
Depreciation and amortization 17,009 17,136 17,510 18,616 18,844
186,594 190,993 194,602 192,228 205,323
Gains on Asset Dispositions, Net 677 437 6,014 6,018 506
Operating Income 11,106 18,968 25,250 34,047 12,014
Other Income (Expense):
Interest income 1,885 1,900 2,245 2,450 2,179
Interest expense (4,903) (5,113) (6,181) (8,335) (8,604)
Debt extinguishment losses, net (503) (793) (6,017) (160) (5,407)
Marketable security gains (losses), net 13,284 3,068 (11,128) 1,713 782
Foreign currency gains (losses), net (191) 405 (2,280) (328) (1,346)
Other, net 25 (644) 13 357 54,311
9,597 (1,177) (23,348) (4,303) 41,915
Income Before Income Tax Expense (Benefit) and Equity in Earnings (Losses) of 50% or Less Owned Companies 20,703 17,791 1,902 29,744 53,929
Income Tax Expense (Benefit) 3,390 2,205 (4,519) 3,362 9,853
Income Before Equity in Earnings (Losses) of 50% or Less Owned Companies 17,313 15,586 6,421 26,382 44,076
Equity in Earnings (Losses) of 50% or Less Owned Companies, Net of Tax (312) (2,518) (1,987) 821 1,931
Net Income 17,001 13,068 4,434 27,203 46,007
Net Income attributable to Noncontrolling Interests in Subsidiaries 2,448 5,335 9,120 10,136 881
Net Income (Loss) attributable to SEACOR Holdings Inc. $ 14,553 $ 7,733 $ (4,686) $ 17,067 $ 45,126
Basic Earnings (Loss) Per Common Share of SEACOR Holdings Inc. $ 0.80 $ 0.42 $ (0.26) $ 0.94 $ 2.50
Diluted Earnings (Loss) Per Common Share of SEACOR Holdings Inc. $ 0.76 $ 0.41 $ (0.26) $ 0.88 $ 2.14
Weighted Average Common Shares Outstanding:
Basic 18,289 18,233 18,165 18,108 18,077
Diluted 19,634 19,571 18,165 21,193 22,588
Common Shares Outstanding at Period End 18,550 18,528 18,330 18,243 18,224
OIBDA(1) $ 28,115 $ 36,104 $ 42,760 $ 52,663 $ 30,858
OIBDA attributable to SEACOR Holdings Inc.(1) $ 21,905 $ 26,996 $ 29,822 $ 38,630 $ 25,978

______________________

  1. Non-GAAP Financial Measure. See explanation of use of non-GAAP financial measures included elsewhere in this release.


SEACOR HOLDINGS INC.
SEGMENT INFORMATION
(in thousands, unaudited)

Three Months Ended
Jun. 30,
2019
Mar. 31,
2019
Dec. 31,
2018
Sep. 30,
2018
Jun. 30,
2018
Ocean Transportation & Logistics Services
Operating Revenues $ 109,681 $ 109,272 $ 97,366 $ 109,939 $ 105,155
Costs and Expenses:
Operating 71,230 69,932 64,234 64,683 75,044
Administrative and general 9,423 10,198 10,132 9,170 10,328
Depreciation and amortization 10,230 10,337 10,707 11,298 11,620
90,883 90,467 85,073 85,151 96,992
Gains on Asset Dispositions 349 17 5,496 5,505 3
Operating Income 19,147 18,822 17,789 30,293 8,166
Other Income (Expense):
Foreign currency gains (losses), net 1 (47 ) (17 ) (24 ) (76 )
Other, net 28 (651 ) (15 ) (96 ) 398
Equity in Earnings (Losses) of 50% or Less Owned Companies, Net of Tax 700 111 (23 ) 2,073 1,267
Segment Profit(1) $ 19,876 $ 18,235 $ 17,734 $ 32,246 $ 9,755
OIBDA(2) $ 29,377 $ 29,159 $ 28,496 $ 41,591 $ 19,786
OIBDA(2) attributable to stockholders $ 23,167 $ 20,051 $ 15,558 $ 27,558 $ 14,906
Dry-docking expenditures for U.S.-flag petroleum and chemical
carriers, dry bulk carriers and PCTC’s (included in operating costs and expenses)
$ 1,925 $ 1,581 $ 6,430 $ 399 $ 5,291
Out-of-service days for dry-dockings of U.S.-flag petroleum and chemical carriers, dry bulk carriers and PCTC’s 30 15 147 47
Dry-docking expenditures for all other equipment $ 1,447 $ 1,250 $ 269 $ 1,489 $ 2,139
Inland Transportation & Logistics Services
Operating Revenues $ 61,455 $ 65,602 $ 77,513 $ 78,845 $ 73,409
Costs and Expenses:
Operating 54,486 54,245 60,801 65,667 62,361
Administrative and general 3,133 3,356 3,381 3,230 3,216
Depreciation and amortization 5,699 5,725 5,490 6,197 6,243
63,318 63,326 69,672 75,094 71,820
Gains on Asset Dispositions 330 420 481 513 503
Operating Income (Loss) (1,533 ) 2,696 8,322 4,264 2,092
Other Income (Expense):
Foreign currency gains (losses), net (191 ) 459 (2,240 ) (282 ) (1,183 )
Other, net 37 14
Equity in Earnings (Losses) of 50% or Less Owned Companies, Net of Tax (618 ) (2,472 ) (2,571 ) (1,245 ) 584
Segment Profit (Loss)(1) $ (2,342 ) $ 683 $ 3,548 $ 2,737 $ 1,507
OIBDA(2) $ 4,166 $ 8,421 $ 13,812 $ 10,461 $ 8,335

SEACOR HOLDINGS INC.
SEGMENT INFORMATION (continued)
(in thousands, unaudited)

Three Months Ended
Jun. 30,
2019
Mar. 31,
2019
Dec. 31,
2018
Sep. 30,
2018
Jun. 30,
2018
Witt O’Brien’s
Operating Revenues $ 23,753 $ 32,943 $ 37,702 $ 30,267 $ 37,308
Costs and Expenses:
Operating 15,691 21,772 24,258 16,240 24,399
Administrative and general 6,831 6,402 6,876 7,389 5,140
Depreciation and amortization 209 206 660 492 491
22,731 28,380 31,794 24,121 30,030
Operating Income 1,022 4,563 5,908 6,146 7,278
Other Income (Expense):
Foreign currency losses, net (1 ) (12 ) (17 )
Other, net (2 ) (3 )
Equity in Earnings (Losses) of 50% or Less Owned Companies, Net of Tax (128 ) (67 ) 113 (13 ) (32 )
Segment Profit $ 892 $ 4,493 $ 6,020 $ 6,121 $ 7,229
OIBDA(2) $ 1,231 $ 4,769 $ 6,568 $ 6,638 $ 7,769
Other
Operating Revenues $ 2,142 $ 1,805 $ 1,290 $ 1,214 $ 969
Costs and Expenses:
Operating 1,472 1,253 1,106 957 392
Administrative and general 837 839 551 606 498
Depreciation and amortization 493 489 237 202 62
2,802 2,581 1,894 1,765 952
Gains (Losses) on Asset Dispositions (2 ) 37
Operating Income (Loss) (662 ) (776 ) (567 ) (551 ) 17
Other Income (Expense):
Foreign currency gains (losses), net (4 ) 1
Other, net (105 ) 452 53,902
Equity in Earnings (Losses) of 50% or Less Owned Companies, Net of Tax (266 ) (90 ) 494 6 112
Segment Profit (Loss)(1) $ (928 ) $ (866 ) $ (182 ) $ (93 ) $ 54,032
Corporate and Eliminations
Operating Revenues $ (8 ) $ (98 ) $ (33 ) $ (8 ) $ (10 )
Costs and Expenses:
Operating (8 ) (91 ) (25 ) (18 ) (28 )
Administrative and general 6,490 5,951 5,778 5,688 5,129
Depreciation and amortization 378 379 416 427 428
6,860 6,239 6,169 6,097 5,529
Operating Loss $ (6,868 ) $ (6,337 ) $ (6,202 ) $ (6,105 ) $ (5,539 )
Other Income (Expense):
Foreign currency losses, net $ (1 ) $ (7 ) $ (18 ) $ (10 ) $ (71 )
Other, net (1 ) 10 96 1 (3 )

______________________

  1. Includes amounts attributable to both SEACOR and noncontrolling interests.
  2. Non-GAAP Financial Measure. See explanation of use of non-GAAP financial measures included elsewhere in this release.


SEACOR HOLDINGS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, unaudited)

Jun. 30,
2019
Mar. 31,
2019
Dec. 31,
2018
Sep. 30,
2018
Jun. 30,
2018
ASSETS
Current Assets:
Cash and cash equivalents $ 138,757 $ 141,152 $ 144,221 $ 324,564 $ 317,389
Restricted cash and restricted cash equivalents 1,221 2,992 2,991 2,990 2,989
Marketable securities 39,368 33,384 30,316 41,445 39,745
Receivables:
Trade, net of allowance for doubtful accounts 164,964 174,278 171,828 151,217 142,474
Other 38,297 32,635 38,881 45,197 41,960
Inventories 5,293 4,914 4,530 5,139 4,690
Prepaid expenses and other 5,640 5,809 5,382 6,087 5,940
Total current assets 393,540 395,164 398,149 576,639 555,187
Property and Equipment:
Historical cost 1,416,084 1,413,488 1,407,329 1,403,886 1,393,514
Accumulated depreciation (593,168) (577,136) (560,819) (545,179) (527,814)
Net property and equipment 822,916 836,352 846,510 858,707 865,700
Operating Lease Right-of-Use Assets 161,518 167,325
Investments, at Equity, and Advances to 50% or Less Owned Companies 155,645 155,290 156,886 149,184 150,158
Construction Reserve Funds 3,908 3,908 3,908 5,908 16,142
Goodwill 32,714 32,720 32,708 32,767 32,774
Intangible Assets, Net 22,773 23,662 24,551 25,724 26,898
Other Assets 10,376 7,385 8,312 8,938 9,065
$ 1,603,390 $ 1,621,806 $ 1,471,024 $ 1,657,867 $ 1,655,924
LIABILITIES AND EQUITY
Current Liabilities:
Current portion of long-term debt $ 78,301 $ 8,308 $ 8,497 $ 155,737 $ 8,925
Current portion of long-term operating lease liabilities 36,171 35,540
Accounts payable and accrued expenses 35,132 50,097 59,607 56,533 61,732
Other current liabilities 64,796 67,456 55,659 66,179 68,102
Total current liabilities 214,400 161,401 123,763 278,449 138,759
Long-Term Debt 234,445 315,303 346,128 372,657 530,909
Long-Term Operating Lease Liabilities 125,182 131,862
Deferred Income Taxes 99,938 97,758 94,420 99,565 97,767
Deferred Gains and Other Liabilities 20,768 20,688 52,871 60,502 70,653
Total liabilities 694,733 727,012 617,182 811,173 838,088
Equity:
SEACOR Holdings Inc. stockholders’ equity:
Preferred stock
Common stock 392 392 390 389 389
Additional paid-in capital 1,600,838 1,598,804 1,596,642 1,593,430 1,592,375
Retained earnings 512,618 498,065 474,809 479,495 462,428
Shares held in treasury, at cost (1,366,432) (1,366,267) (1,366,773) (1,366,773) (1,367,433)
Accumulated other comprehensive loss, net of tax (995) (903) (914) (444) (385)
746,421 730,091 704,154 706,097 687,374
Noncontrolling interests in subsidiaries 162,236 164,703 149,688 140,597 130,462
Total equity 908,657 894,794 853,842 846,694 817,836
$ 1,603,390 $ 1,621,806 $ 1,471,024 $ 1,657,867 $ 1,655,924

Use of non-GAAP Financial Measures

The information furnished in this release includes non-GAAP financial measures that differ from measures calculated in accordance with U.S. GAAP, including OIBDA and Cash Earnings.

The Company defines OIBDA as operating income (loss) plus depreciation and amortization. The Company includes maintenance and repair costs, including major overhauls and regulatory dry-dockings, and gains or losses (or impairments) on asset dispositions in OIBDA. The Company defines Cash Earnings as OIBDA further adjusted to exclude the amortization of non-cash deferred gains and amounts attributable to its minority partner in SEA-Vista as well as the gain or loss associated with marking-to-market securities held for investment, accrued net cash expense associated with interest on debt obligations, and the Company’s estimate of cash taxes. Other companies may calculate OIBDA and Cash Earnings differently than the Company, which may limit their usefulness as comparative measures. In addition, each of these measures does not necessarily represent funds available for discretionary use and are not measures of the Company’s ability to fund its cash needs. OIBDA and Cash Earnings are each financial metrics 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 Company officers and other shore-based employees; and (iii) to compare to the OIBDA and Cash Earnings of other companies when evaluating potential acquisitions. In addition, the Company believes Cash Earnings is meaningful to investors because it assists in evaluating the Company’s results of operations and net cash generated by business activities across previous and subsequent accounting periods and to better understand the long-term performance of the Company. The Company views OIBDA and Cash Earnings as measures of operating performance not liquidity.

The presentation of these non-GAAP financial measures is not intended to be considered in isolation from or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP.

The following tables reconcile these non-GAAP measures to their most closely comparable U.S. GAAP measures (amounts in thousands, except per share data).

Three Months Ended June 30, Six Months Ended June 30,
2019 2018 2019 2018
U.S. GAAP Measures
Net Income Attributable to Stockholders $ 14,553 $ 45,126 $ 22,286 $ 45,767
Diluted Earnings Per Common Share(1) $ 0.76 $ 2.14 $ 1.17 $ 2.32
Reconciliation of non-GAAP Financial Measures
Operating Income (U.S. GAAP) $ 11,106 $ 12,014 $ 30,074 $ 26,702
(+) Depreciation and amortization 17,009 18,844 34,145 38,453
OIBDA(2) 28,115 30,858 64,219 65,155
(–) Amortization of deferred gains(3) (330 ) (4,663 ) (661 ) (7,738 )
(–) OIBDA less amortization of deferred gains attributable to noncontrolling interests (6,210 ) (3,959 ) (15,318 ) (12,012 )
(–) Cash interest expense, net(4) (864 ) (3,708 ) (1,776 ) (7,729 )
(–) Income tax obligation (1,112 ) (16,965 ) (3,192 ) (17,795 )
(+/–) Marketable security gains (losses), net 13,284 782 16,352 (3,016 )
Cash Earnings $ 32,883 $ 2,345 $ 59,624 $ 16,865

______________________

  1. Includes diluted earnings per common share of $0.53 and $0.03 for the quarter ended June 30, 2019 and 2018, respectively, related to marking-to-market the Company’s marketable security portfolio. Includes diluted earnings per common share of $0.66 and diluted loss per common share of $0.11 for the six months ended June 30, 2019 and 2018, respectively, related to marking-to-market the Company’s marketable security portfolio.
  2. All references to OIBDA in this release are calculated in the same manner.
  3. For the three and six months ended June 30, 2019, amortization of deferred gains is included in gains on asset dispositions. For the three and six months ended June 30, 2018, amortization of deferred gains may be included in operating expenses as a reduction to rental expense and/or included in gains on asset dispositions.
  4. Amount is net of interest income, excludes capitalized interest, and is net of our partner’s portion of SEA-Vista interest expense of $0.5 million and $0.7 million for the three months ended June 30, 2019 and 2018, respectively, and $1.1 million and $1.4 million for the six months ended June 30, 2019 and 2018, respectively.


SEACOR HOLDINGS INC.
FLEET COUNTS
(unaudited)

Jun. 30, 2019 Mar. 31, 2019 Dec. 31, 2018 Sep. 30, 2018 Jun. 30, 2018
Ocean Transportation & Logistics Services
Bulk Transportation Services:
Petroleum and chemical carriers - U.S.-flag 9 9 10 10 10
Bulk carriers - U.S.-flag 2 2 2 2 2
Port & Infrastructure Services:
Harbor tugs - U.S.-flag 24 24 24 24 24
Harbor tugs - Foreign-flag 8 8 8 8 8
Offshore tug - U.S.-flag 1 1 1 1 1
Ocean liquid tank barges - U.S.-flag 5 5 5 5 5
Ocean liquid tank barges - Foreign-flag 1 1 1 1 1
Specialty vessel - Foreign-flag(1) 2 1
Logistics Services:
PCTC(2) - U.S.-flag 4 4 4 4 4
Short-sea container/RORO(3) vessels - Foreign-flag 9 9 9 9 9
RORO(3) & deck barges - U.S.-flag 7 7 7 7 7
Rail ferries - Foreign-flag 2 2 2 2 2
74 73 73 73 73
Inland Transportation & Logistics Services
Bulk Transportation Services:
Dry-cargo barges 1,374 1,374 1,372 1,372 1,378
Liquid tank barges 20 20 20 20 20
Specialty barges(4) 5 5 5 5 5
Towboats:
4,000 hp - 6,600 hp 18 18 18 18 18
3,300 hp - 3,900 hp 3 3 3 3 3
Less than 3,200 hp 2 2 2 2 2
Port & Infrastructure Services:
Harbor boats:
1,100 hp - 2,000 hp 18 18 18 18 18
Less than 1,100 hp 6 6 6 6 6
Logistics Services:
Dry-cargo barges 33 33 35 35 30
1,479 1,479 1,479 1,479 1,480

______________________

  1. Line handling vessel.
  2. Pure Car/Truck Carrier.
  3. Roll On/Roll Off.
  4. Includes non-certificated 10,000 and 30,000 barrel inland river liquid tank barges.


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Source: SEACOR Holdings Inc.

Date released: Jul 24 2019