SEACOR Holdings Announces Results for the Year and fourth Quarter Ended December 31, 2018
FORT LAUDERDALE, Fla., Feb. 27, 2019 (GLOBE NEWSWIRE) -- SEACOR Holdings Inc. (NYSE:CKH) (the “Company”) today announced:
- For the year ended December 31, 2018, net income from continuing operations was $58.1 million ($3.04 per diluted share) including a net gain of $42.6 million ($2.18 per diluted share) related to the sale of the Company’s interest in Hawker Pacific Airservices. This compares with $82.8 million ($4.24 per diluted share) for the year ended December 31, 2017.
- For the year ended December 31, 2018, operating income before depreciation and amortization (“OIBDA”)1 was $160.6 million, compared with $125.5 million for the year ended December 31, 2017.
- For the year ended December 31, 2018, OIBDA1 excluding the share attributable to noncontrolling interests was $119.8 million compared with $83.7 million for the year ended December 31, 2017.
- For the fourth quarter, net loss from continuing operations was $4.7 million ($0.26 per diluted share) compared with net income of $17.1 million ($0.88 per diluted share) in the preceding quarter and $73.3 million ($3.37 per diluted share) in the fourth quarter of 2017.
- For the fourth quarter, OIBDA1 was $42.8 million compared with $52.7 million in the preceding quarter and $43.4 million in the fourth quarter of 2017.
- For the fourth quarter, OIBDA1 excluding the share attributable to noncontrolling interests was $29.8 million compared with $38.6 million in the preceding quarter and $31.8 million in the fourth quarter of 2017.
Charles Fabrikant, Executive Chairman and Chief Executive Officer, commented:
“I am very pleased with our results for the year 2018. Even putting aside the benefit of a one off event such as the sale of Hawker Pacific, results were considerably better this year than 2017, although that is not apparent from headline GAAP numbers. Our Inland Services and Witt O’Brien’s businesses performed notably better in 2018. In the case of Inland Services, it enjoyed improved results in the current quarter compared with the preceding quarter and the fourth quarter of 2017. Witt O’Brien’s results in the current year quarter were more than 50% higher than the fourth quarter of 2017 and essentially comparable with results in the preceding quarter. Unfortunately our Ocean Transportation and Logistics Group’s results were hobbled in the current quarter by extensive out of service days and significant costs associated with two major regulatory dockings.
There are a host of factors that have impacted our results in 2017 and 2018, which are of a non-recurring nature. These factors are outliers, unlike gains on the sale of equipment, regulatory docking of assets, or movement in exchange rates, which are routine operating variables. We have included two tables; the first provides a summary of impacts for all of 2018 and 2017 and the second a summary of impacts showing sequential quarters and also the fourth quarter in 2017. In judging our operating performance I believe these items should be noted in order to have meaningful comparisons of period results. In the aggregate, for 2018, these outliers contributed losses per basic share of $0.44 compared with their positive contribution to earnings of $4.51 per basic share in 2017.”
The following table lists the impacts to net income for the periods indicated (in thousands):
| Years Ended December 31, | |||||||
| 2018 | 2017 | ||||||
| Impacts to Net Income (net of tax, except tax benefit): | |||||||
| Acceleration of non-cash deferred gains(1) | $ | 11,040 | $ | — | |||
| Debt extinguishment losses(2) | (9,185 | ) | (532 | ) | |||
| Marketable security losses on Dorian LPG Ltd. | (9,818 | ) | (794 | ) | |||
| Derivative gains on SMHI Spin-off | — | 12,634 | |||||
| Benefit from changes in the U.S. income tax code | — | 66,946 | |||||
____________________
| (1) | Acceleration of non-cash deferred gains following a change in the lease term for one U.S.-flag petroleum carrier (included in gains on asset dispositions and impairments, net and operating costs and expenses). The pre-tax and OIBDA impact of this acceleration was $14.0 million. |
| (2) | Primarily relates to the early redemption of the Company’s 7.375% Senior Notes. |
The following table lists the impacts to net income for the periods indicated (in thousands):
| For the three months ended | |||||||||||
| December 31, 2018 | September 30, 2018 | December 31, 2017 | |||||||||
| Impacts to Net Income (net of tax, except tax benefit) | |||||||||||
| Acceleration of non-cash deferred gains(1) | $ | 5,520 | $ | 5,520 | $ | — | |||||
| Debt extinguishment losses(2) | (4,753 | ) | (126 | ) | (471 | ) | |||||
| Marketable security gains (losses) on Dorian LPG Ltd. | (8,791 | ) | 1,356 | 7,498 | |||||||
| Benefit from changes in the U.S. income tax code | — | — | 66,946 | ||||||||
____________________
| (1) | Acceleration of non-cash deferred gains following a change in the lease term for one U.S.-flag petroleum carrier (included in gains on asset dispositions and impairments, net and operating costs and expenses). The pre-tax and OIBDA impact of this acceleration was $7.0 million in both periods. |
| (2) | For the current quarter, primarily relates to the early redemption of the Company’s 7.375% Senior Notes. |
Continuing Operation Discussion
Ocean Transportation & Logistics Services - Operating income was $17.8 million ($10.8 million excluding the impact of the acceleration of deferred gains) in the current year quarter compared with $30.3 million ($23.3 million excluding the impact of the acceleration of deferred gains) in the preceding quarter and $26.1 million in the fourth quarter of 2017. OIBDA1 excluding the share attributable to noncontrolling interests in SEA-Vista was $15.6 million in the current year quarter compared with $27.6 million in the preceding quarter and $27.8 million in the fourth quarter of 2017.
Operating results in the current year quarter were impacted by $6.7 million of regulatory dry-docking costs and 147 days of out-of-service time for one U.S.-flag bulk carrier and one PCTC (Pure Car/Truck Carrier). This compares with $1.9 million and $0.4 million of regulatory dry-docking costs in the preceding quarter and fourth quarter of 2017, respectively. There was no out-of-service time in either of those periods.
Revenues for the Company’s Jones Act tanker business joint venture (SEA-Vista) have generally been stable, anchored by long term charters. During the third and fourth quarters of 2018 and the latter part of 2017, SEA-Vista only had one vessel in the spot market.
Equity in earnings of 50% or less owned companies were break even in the current quarter compared with equity earnings of $2.1 million in the preceding quarter and equity losses of $0.5 million in the fourth quarter of 2017.
Inland Transportation & Logistics Services - Operating income was $8.3 million in the current year quarter compared with $4.3 million in the preceding quarter and $5.9 million in the fourth quarter of 2017. OIBDA1 was $13.8 million in the current year quarter compared with $10.5 million in the preceding quarter and $12.4 million in the fourth quarter of 2017.
Operating results are typically dominated by barge pool earnings. The fourth quarter and first calendar quarter of each year usually reflect a surge in demand to move grain that follows the fall grain harvest. Notwithstanding the reduced export of soybeans in 2018 - due to the trade dispute with China - pool results in the current year quarter and the fourth quarter of 2017 were similar.
Results from 50% or less owned companies were $2.6 million of losses in the current year quarter compared with $1.2 million of losses in the preceding quarter and $0.3 million of losses in the fourth quarter of 2017. The primary contributor to equity losses in each period was SCFCo,which operates barges in the Parana-Paraguay River in South America.
Foreign currency losses of $2.2 million in the current year quarter are primarily due to unfavorable movements in the exchange rates of the Colombian peso in relation to the U.S. dollar.
Witt O’Brien’s - Operating income was $5.9 million in the current year quarter compared with $6.1 million in the preceding quarter and $3.9 million in the fourth quarter of 2017. The Company continues to support the recovery efforts in the U.S. Virgin Islands.
Corporate - Corporate administrative and general expenses were $5.8 million in the current year quarter compared with $5.7 million in the preceding quarter and $12.4 million in the fourth quarter of 2017. The fourth quarter of 2017 was impacted by the acceleration of share award vesting in advance of changes in the U.S. federal income tax code.
Capital Commitments - The Company’s capital commitments as of December 31, 2018 were $30.2 million.
Liquidity and Debt - As of December 31, 2018, the Company’s balances of cash, cash equivalents, restricted cash, restricted cash equivalents, marketable securities and construction reserve funds totaled $181.4 million. Total outstanding debt was $354.6 million including $88.0 million of SEA-Vista debt that is non-recourse to the Company. SEA-Vista is a consolidated venture and had $94.0 million of borrowing capacity under its credit facility as of December 31, 2018.
During the fourth quarter, the Company repurchased $4.6 million in principal amount of its 3.0% Convertible Senior Notes for $4.4 million and redeemed the remaining principal balance of $147.4 million of its 7.375% Senior Notes for $153.0 million including a make whole payment of $5.6 million. These transactions resulted in debt extinguishment losses of $6.0 million.
Adoption of Revenue Recognition Accounting Standard - On January 1, 2018, the Company adopted Financial Accounting Standard Board Topic 606, Revenue from Contracts with Customers (“Topic 606”). As a consequence of adopting Topic 606, the Company now recognizes all of the operating revenues and expenses associated with the barge pools it manages along with additional operating expenses reflective of barge pool earnings attributable to third party barge owners and not the Company in its capacity as manager. Previously, the Company recognized operating revenues and expenses only for its proportionate share of the barge pools in which it participated. All prior period results have been adjusted to reflect the retrospective adoption of Topic 606. The adoption of Topic 606 had no impact on previously reported operating income, segment profit, net income or earnings per share.
| 1 | See disclosure related to Non-GAAP measures in the statements of income (loss) and segment information tables herein. |
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, 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 (LOSS) (in thousands, except share data, unaudited) | |||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||
| December 31, | December 31, | ||||||||||||||
| 2018 | 2017 | 2018 | 2017 | ||||||||||||
| As Adjusted | As Adjusted | ||||||||||||||
| Operating Revenues | $ | 213,838 | $ | 209,352 | $ | 835,750 | $ | 650,847 | |||||||
| Costs and Expenses: | |||||||||||||||
| Operating | 150,374 | 132,562 | 591,848 | 433,837 | |||||||||||
| Administrative and general | 26,718 | 34,157 | 102,907 | 103,106 | |||||||||||
| Depreciation and amortization | 17,510 | 20,369 | 74,579 | 75,058 | |||||||||||
| 194,602 | 187,088 | 769,334 | 612,001 | ||||||||||||
| Gains on Asset Dispositions and Impairments, Net | 6,014 | 719 | 19,583 | 11,637 | |||||||||||
| Operating Income | 25,250 | 22,983 | 85,999 | 50,483 | |||||||||||
| Other Income (Expense): | |||||||||||||||
| Interest income | 2,245 | 1,896 | 8,730 | 8,547 | |||||||||||
| Interest expense | (6,181 | ) | (10,429 | ) | (31,683 | ) | (41,530 | ) | |||||||
| Debt extinguishment losses, net | (6,017 | ) | (725 | ) | (11,626 | ) | (819 | ) | |||||||
| Marketable security gains (losses), net | (11,128 | ) | 11,534 | (12,431 | ) | (1,782 | ) | ||||||||
| Derivative gains, net | — | — | — | 19,727 | |||||||||||
| Foreign currency gains (losses), net | (2,280 | ) | (575 | ) | (2,264 | ) | 323 | ||||||||
| Other, net | 13 | 188 | 54,964 | 256 | |||||||||||
| (23,348 | ) | 1,889 | 5,690 | (15,278 | ) | ||||||||||
| Income from Continuing Operations Before Income Tax Expense (Benefit) and Equity in Earnings (Losses) of 50% or Less Owned Companies | 1,902 | 24,872 | 91,689 | 35,205 | |||||||||||
| Income Tax Expense (Benefit) | (4,519 | ) | (54,626 | ) | 8,415 | (67,189 | ) | ||||||||
| Income from Continuing Operations Before Equity in Earnings (Losses) of 50% or Less Owned Companies | 6,421 | 79,498 | 83,274 | 102,394 | |||||||||||
| Equity in Earnings (Losses) of 50% or Less Owned Companies, Net of Tax | (1,987 | ) | 23 | (72 | ) | 2,952 | |||||||||
| Net Income from Continuing Operations | 4,434 | 79,521 | 83,202 | 105,346 | |||||||||||
| Loss from Discontinued Operations, Net of Tax | — | (487 | ) | — | (23,637 | ) | |||||||||
| Net Income | 4,434 | 79,034 | 83,202 | 81,709 | |||||||||||
| Net Income attributable to Noncontrolling Interests in Subsidiaries | 9,120 | 6,227 | 25,054 | 20,066 | |||||||||||
| Net Income (Loss) attributable to SEACOR Holdings Inc. | $ | (4,686 | ) | $ | 72,807 | $ | 58,148 | $ | 61,643 | ||||||
| Basic Earnings (Loss) Per Common Share of SEACOR Holdings Inc.: | |||||||||||||||
| Continuing operations | $ | (0.26 | ) | $ | 4.15 | $ | 3.22 | $ | 4.77 | ||||||
| Discontinued operations | — | (0.03 | ) | — | (1.22 | ) | |||||||||
| $ | (0.26 | ) | $ | 4.12 | $ | 3.22 | $ | 3.55 | |||||||
| Diluted Earnings (Loss) Per Common Share of SEACOR Holdings Inc.: | |||||||||||||||
| Continuing operations | $ | (0.26 | ) | $ | 3.37 | $ | 3.04 | $ | 4.24 | ||||||
| Discontinued operations | — | (0.02 | ) | — | (0.93 | ) | |||||||||
| $ | (0.26 | ) | $ | 3.35 | $ | 3.04 | $ | 3.31 | |||||||
| Weighted Average Common Shares Outstanding: | |||||||||||||||
| Basic | 18,165,361 | 17,673,547 | 18,080,778 | 17,368,081 | |||||||||||
| Diluted | 18,165,361 | 22,711,085 | 19,575,689 | 22,934,158 | |||||||||||
| OIBDA(1) | $ | 42,760 | $ | 43,352 | $ | 160,578 | $ | 125,541 | |||||||
| OIBDA attributable to noncontrolling interests(1) | $ | 12,938 | $ | 11,589 | $ | 40,825 | $ | 41,797 | |||||||
______________________
- Non-GAAP Financial Measure. The Company, from time to time, discloses and discusses OIBDA, a non-GAAP financial measure, 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 the Company’s 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 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 STATEMENTS OF INCOME (LOSS) (in thousands, except per share data, unaudited) | |||||||||||||||||||
| Three Months Ended | |||||||||||||||||||
| Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |||||||||||||||
| As Adjusted | |||||||||||||||||||
| Operating Revenues | $ | 213,838 | $ | 220,257 | $ | 216,831 | $ | 184,824 | $ | 209,352 | |||||||||
| Costs and Expenses: | |||||||||||||||||||
| Operating | 150,374 | 147,529 | 162,168 | 131,777 | 132,562 | ||||||||||||||
| Administrative and general | 26,718 | 26,083 | 24,311 | 25,795 | 34,157 | ||||||||||||||
| Depreciation and amortization | 17,510 | 18,616 | 18,844 | 19,609 | 20,369 | ||||||||||||||
| 194,602 | 192,228 | 205,323 | 177,181 | 187,088 | |||||||||||||||
| Gains on Asset Dispositions | 6,014 | 6,018 | 506 | 7,045 | 719 | ||||||||||||||
| Operating Income | 25,250 | 34,047 | 12,014 | 14,688 | 22,983 | ||||||||||||||
| Other Income (Expense): | |||||||||||||||||||
| Interest income | 2,245 | 2,450 | 2,179 | 1,856 | 1,896 | ||||||||||||||
| Interest expense | (6,181 | ) | (8,335 | ) | (8,604 | ) | (8,563 | ) | (10,429 | ) | |||||||||
| Debt extinguishment losses, net | (6,017 | ) | (160 | ) | (5,407 | ) | (42 | ) | (725 | ) | |||||||||
| Marketable security gains (losses), net | (11,128 | ) | 1,713 | 782 | (3,798 | ) | 11,534 | ||||||||||||
| Foreign currency gains (losses), net | (2,280 | ) | (328 | ) | (1,346 | ) | 1,690 | (575 | ) | ||||||||||
| Other, net | 13 | 357 | 54,311 | 283 | 188 | ||||||||||||||
| (23,348 | ) | (4,303 | ) | 41,915 | (8,574 | ) | 1,889 | ||||||||||||
| Income from Continuing Operations Before Income Tax Expense (Benefit) and Equity in Earnings (Losses) of 50% or Less Owned Companies | 1,902 | 29,744 | 53,929 | 6,114 | 24,872 | ||||||||||||||
| Income Tax Expense (Benefit) | (4,519 | ) | 3,362 | 9,853 | (281 | ) | (54,626 | ) | |||||||||||
| Income from Continuing Operations Before Equity in Earnings (Losses) of 50% or Less Owned Companies | 6,421 | 26,382 | 44,076 | 6,395 | 79,498 | ||||||||||||||
| Equity in Earnings (Losses) of 50% or Less Owned Companies, Net of Tax | (1,987 | ) | 821 | 1,931 | (837 | ) | 23 | ||||||||||||
| Net Income from Continuing Operations | 4,434 | 27,203 | 46,007 | 5,558 | 79,521 | ||||||||||||||
| Loss from Discontinued Operations, Net of Tax | — | — | — | — | (487 | ) | |||||||||||||
| Net Income | 4,434 | 27,203 | 46,007 | 5,558 | 79,034 | ||||||||||||||
| Net Income attributable to Noncontrolling Interests in Subsidiaries | 9,120 | 10,136 | 881 | 4,917 | 6,227 | ||||||||||||||
| Net Income (Loss) attributable to SEACOR Holdings Inc. | $ | (4,686 | ) | $ | 17,067 | $ | 45,126 | $ | 641 | $ | 72,807 | ||||||||
| Basic Earnings (Loss) Per Common Share of SEACOR Holdings Inc.: | |||||||||||||||||||
| Continuing operations | $ | (0.26 | ) | $ | 0.94 | $ | 2.50 | $ | 0.04 | $ | 4.15 | ||||||||
| Discontinued operations | — | — | — | — | (0.03 | ) | |||||||||||||
| $ | (0.26 | ) | $ | 0.94 | $ | 2.50 | $ | 0.04 | $ | 4.12 | |||||||||
| Diluted Earnings (Loss) Per Common Share of SEACOR Holdings Inc.: | |||||||||||||||||||
| Continuing operations | $ | (0.26 | ) | $ | 0.88 | $ | 2.14 | $ | 0.04 | $ | 3.37 | ||||||||
| Discontinued operations | — | — | — | — | (0.02 | ) | |||||||||||||
| $ | (0.26 | ) | $ | 0.88 | $ | 2.14 | $ | 0.04 | $ | 3.35 | |||||||||
| Weighted Average Common Shares of Outstanding: | |||||||||||||||||||
| Basic | 18,165 | 18,108 | 18,077 | 17,970 | 17,674 | ||||||||||||||
| Diluted | 18,165 | 21,193 | 22,588 | 18,179 | 22,711 | ||||||||||||||
| Common Shares Outstanding at Period End | 18,330 | 18,243 | 18,224 | 18,165 | 17,940 | ||||||||||||||
| OIBDA(1) | $ | 42,760 | $ | 52,663 | $ | 30,858 | $ | 34,297 | $ | 43,352 | |||||||||
| OIBDA attributable to noncontrolling interests(1) | $ | 12,938 | $ | 14,033 | $ | 4,880 | $ | 8,973 | $ | 11,589 | |||||||||
______________________
- Non-GAAP Financial Measure. The Company, from time to time, discloses and discusses OIBDA, a non-GAAP financial measure, 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 the Company’s 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 Company officers and other shore-based employees; and (iii) to compare to the OIBDA of other companies when evaluating potential acquisitions.
| SEACOR HOLDINGS INC. SEGMENT INFORMATION (in thousands, unaudited) | |||||||||||||||||||
| Three Months Ended | |||||||||||||||||||
| Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |||||||||||||||
| Ocean Transportation & Logistics Services | |||||||||||||||||||
| Operating Revenues | $ | 97,366 | $ | 109,939 | $ | 105,155 | $ | 102,384 | $ | 109,434 | |||||||||
| Costs and Expenses: | |||||||||||||||||||
| Operating | 64,234 | 64,683 | 75,044 | 65,333 | 58,215 | ||||||||||||||
| Administrative and general | 10,132 | 9,170 | 10,328 | 10,549 | 11,820 | ||||||||||||||
| Depreciation and amortization | 10,707 | 11,298 | 11,620 | 12,645 | 13,281 | ||||||||||||||
| 85,073 | 85,151 | 96,992 | 88,527 | 83,316 | |||||||||||||||
| Gains on Asset Dispositions | 5,496 | 5,505 | 3 | 1,883 | 19 | ||||||||||||||
| Operating Income | 17,789 | 30,293 | 8,166 | 15,740 | 26,137 | ||||||||||||||
| Other Income (Expense): | |||||||||||||||||||
| Foreign currency losses, net | (17 | ) | (24 | ) | (76 | ) | (51 | ) | (138 | ) | |||||||||
| Other, net | (15 | ) | (96 | ) | 398 | 283 | 209 | ||||||||||||
| Equity in Earnings (Losses) of 50% or Less Owned Companies, Net of Tax | (23 | ) | 2,073 | 1,267 | 315 | (486 | ) | ||||||||||||
| Segment Profit(1) | $ | 17,734 | $ | 32,246 | $ | 9,755 | $ | 16,287 | $ | 25,722 | |||||||||
| OIBDA(2) | $ | 28,496 | $ | 41,591 | $ | 19,786 | $ | 28,385 | $ | 39,418 | |||||||||
| Dry-docking expenditures for U.S.-flag petroleum and chemical carriers, dry bulk carriers and PCTC’s (included in operating costs and expenses) | $ | 6,430 | $ | 399 | $ | 5,291 | $ | 1,988 | $ | (34 | ) | ||||||||
| Out-of-service days for dry-dockings of U.S.-flag petroleum and chemical carriers, dry bulk carriers and PCTC’s | 147 | — | 47 | 47 | — | ||||||||||||||
| Dry-docking expenditures for all other equipment | $ | 269 | $ | 1,489 | $ | 2,139 | $ | 178 | $ | 466 | |||||||||
| Inland Transportation & Logistics Services | As Adjusted | ||||||||||||||||||
| Operating Revenues | $ | 77,513 | $ | 78,845 | $ | 73,409 | $ | 55,921 | $ | 74,412 | |||||||||
| Costs and Expenses: | |||||||||||||||||||
| Operating | 60,801 | 65,667 | 62,361 | 48,181 | 57,858 | ||||||||||||||
| Administrative and general | 3,381 | 3,230 | 3,216 | 3,312 | 4,900 | ||||||||||||||
| Depreciation and amortization | 5,490 | 6,197 | 6,243 | 6,234 | 6,448 | ||||||||||||||
| 69,672 | 75,094 | 71,820 | 57,727 | 69,206 | |||||||||||||||
| Gains on Asset Dispositions | 481 | 513 | 503 | 5,162 | 700 | ||||||||||||||
| Operating Income | 8,322 | 4,264 | 2,092 | 3,356 | 5,906 | ||||||||||||||
| Other Income (Expense): | |||||||||||||||||||
| Foreign currency gains (losses), net | (2,240 | ) | (282 | ) | (1,183 | ) | 1,703 | (458 | ) | ||||||||||
| Other, net | 37 | — | 14 | — | — | ||||||||||||||
| Equity in Earnings (Losses) of 50% or Less Owned Companies, Net of Tax | (2,571 | ) | (1,245 | ) | 584 | (2,454 | ) | (314 | ) | ||||||||||
| Segment Profit(1) | $ | 3,548 | $ | 2,737 | $ | 1,507 | $ | 2,605 | $ | 5,134 | |||||||||
| OIBDA(2) | $ | 13,812 | $ | 10,461 | $ | 8,335 | $ | 9,590 | $ | 12,354 | |||||||||
| SEACOR HOLDINGS INC. SEGMENT INFORMATION (continued) (in thousands, unaudited) | |||||||||||||||||||
| Three Months Ended | |||||||||||||||||||
| Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |||||||||||||||
| Witt O’Brien’s | |||||||||||||||||||
| Operating Revenues | $ | 37,702 | $ | 30,267 | $ | 37,308 | $ | 26,432 | $ | 25,406 | |||||||||
| Costs and Expenses: | |||||||||||||||||||
| Operating | 24,258 | 16,240 | 24,399 | 18,306 | 16,534 | ||||||||||||||
| Administrative and general | 6,876 | 7,389 | 5,140 | 5,367 | 4,797 | ||||||||||||||
| Depreciation and amortization | 660 | 492 | 491 | 301 | 206 | ||||||||||||||
| 31,794 | 24,121 | 30,030 | 23,974 | 21,537 | |||||||||||||||
| Operating Income | 5,908 | 6,146 | 7,278 | 2,458 | 3,869 | ||||||||||||||
| Other Income (Expense): | |||||||||||||||||||
| Foreign currency gains (losses), net | (1 | ) | (12 | ) | (17 | ) | 2 | (12 | ) | ||||||||||
| Equity in Earnings (Losses) of 50% or Less Owned Companies, Net of Tax | 113 | (13 | ) | (32 | ) | 135 | (63 | ) | |||||||||||
| Segment Profit(1) | $ | 6,020 | $ | 6,121 | $ | 7,229 | $ | 2,595 | $ | 3,794 | |||||||||
| OIBDA(2) | $ | 6,568 | $ | 6,638 | $ | 7,769 | $ | 2,759 | $ | 4,075 | |||||||||
| Other | |||||||||||||||||||
| Operating Revenues | $ | 1,290 | $ | 1,214 | $ | 969 | $ | 116 | $ | 116 | |||||||||
| Costs and Expenses: | |||||||||||||||||||
| Operating | 1,106 | 957 | 392 | — | — | ||||||||||||||
| Administrative and general | 551 | 606 | 498 | 186 | 272 | ||||||||||||||
| Depreciation and amortization | 237 | 202 | 62 | — | — | ||||||||||||||
| 1,894 | 1,765 | 952 | 186 | 272 | |||||||||||||||
| Gains on Asset Dispositions | 37 | — | — | — | — | ||||||||||||||
| Operating Income (Loss) | (567 | ) | (551 | ) | 17 | (70 | ) | (156 | ) | ||||||||||
| Other Income (Expense): | |||||||||||||||||||
| Foreign currency gains (losses), net | (4 | ) | — | 1 | — | 18 | |||||||||||||
| Other, net | (105 | ) | 452 | 53,902 | — | (1 | ) | ||||||||||||
| Equity in Earnings of 50% or Less Owned Companies, Net of Tax | 494 | 6 | 112 | 1,167 | 886 | ||||||||||||||
| Segment Profit (Loss)(1) | $ | (182 | ) | $ | (93 | ) | $ | 54,032 | $ | 1,097 | $ | 747 | |||||||
| Corporate and Eliminations | |||||||||||||||||||
| Operating Revenues | $ | (33 | ) | $ | (8 | ) | $ | (10 | ) | $ | (29 | ) | $ | (16 | ) | ||||
| Costs and Expenses: | |||||||||||||||||||
| Operating | (25 | ) | (18 | ) | (28 | ) | (43 | ) | (45 | ) | |||||||||
| Administrative and general | 5,778 | 5,688 | 5,129 | 6,381 | 12,368 | ||||||||||||||
| Depreciation and amortization | 416 | 427 | 428 | 429 | 434 | ||||||||||||||
| 6,169 | 6,097 | 5,529 | 6,767 | 12,757 | |||||||||||||||
| Operating Loss | $ | (6,202 | ) | $ | (6,105 | ) | $ | (5,539 | ) | $ | (6,796 | ) | $ | (12,773 | ) | ||||
| Other Income (Expense): | |||||||||||||||||||
| Foreign currency gains (losses), net | $ | (18 | ) | $ | (10 | ) | $ | (71 | ) | $ | 36 | $ | 15 | ||||||
| Other, net | 96 | 1 | (3 | ) | — | (20 | ) | ||||||||||||
______________________
- Includes amounts attributable to both SEACOR and noncontrolling interests.
- 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) for the applicable segment 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 the Company’s 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 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) | |||||||||||||||||||
| Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |||||||||||||||
| ASSETS | |||||||||||||||||||
| Current Assets: | |||||||||||||||||||
| Cash and cash equivalents | $ | 144,221 | $ | 324,564 | $ | 317,389 | $ | 272,522 | $ | 239,246 | |||||||||
| Restricted cash and restricted cash equivalents | 2,991 | 2,990 | 2,989 | 2,982 | 2,982 | ||||||||||||||
| Marketable securities | 30,316 | 41,445 | 39,745 | 38,963 | 42,761 | ||||||||||||||
| Receivables: | |||||||||||||||||||
| Trade, net of allowance for doubtful accounts | 171,828 | 151,217 | 142,474 | 111,083 | 110,465 | ||||||||||||||
| Other | 38,881 | 45,197 | 41,960 | 41,061 | 33,870 | ||||||||||||||
| Inventories | 4,530 | 5,139 | 4,690 | 3,821 | 4,377 | ||||||||||||||
| Prepaid expenses and other | 5,382 | 6,087 | 5,940 | 4,572 | 6,594 | ||||||||||||||
| Total current assets | 398,149 | 576,639 | 555,187 | 475,004 | 440,295 | ||||||||||||||
| Property and Equipment: | |||||||||||||||||||
| Historical cost | 1,407,329 | 1,403,886 | 1,393,514 | 1,370,517 | 1,380,469 | ||||||||||||||
| Accumulated depreciation | (560,819 | ) | (545,179 | ) | (527,814 | ) | (510,418 | ) | (502,544 | ) | |||||||||
| Net property and equipment | 846,510 | 858,707 | 865,700 | 860,099 | 877,925 | ||||||||||||||
| Investments, at Equity, and Advances to 50% or Less Owned Companies | 156,886 | 149,184 | 150,158 | 170,305 | 173,441 | ||||||||||||||
| Construction Reserve Funds | 3,908 | 5,908 | 16,142 | 36,790 | 51,339 | ||||||||||||||
| Goodwill | 32,708 | 32,767 | 32,774 | 32,807 | 32,761 | ||||||||||||||
| Intangible Assets, Net | 24,551 | 25,724 | 26,898 | 28,072 | 28,106 | ||||||||||||||
| Other Assets | 8,312 | 8,938 | 9,065 | 9,396 | 9,469 | ||||||||||||||
| $ | 1,471,024 | $ | 1,657,867 | $ | 1,655,924 | $ | 1,612,473 | $ | 1,613,336 | ||||||||||
| LIABILITIES AND EQUITY | |||||||||||||||||||
| Current Liabilities: | |||||||||||||||||||
| Current portion of long-term debt | $ | 8,497 | $ | 155,737 | $ | 8,925 | $ | 77,634 | $ | 77,842 | |||||||||
| Accounts payable and accrued expenses | 59,607 | 56,533 | 61,732 | 40,844 | 44,013 | ||||||||||||||
| Other current liabilities | 55,659 | 66,179 | 68,102 | 59,651 | 57,330 | ||||||||||||||
| Total current liabilities | 123,763 | 278,449 | 138,759 | 178,129 | 179,185 | ||||||||||||||
| Long-Term Debt | 346,128 | 372,657 | 530,909 | 495,863 | 501,505 | ||||||||||||||
| Deferred Income Taxes | 94,420 | 99,565 | 97,767 | 102,084 | 101,422 | ||||||||||||||
| Deferred Gains and Other Liabilities | 52,871 | 60,502 | 70,653 | 74,923 | 77,863 | ||||||||||||||
| Total liabilities | 617,182 | 811,173 | 838,088 | 850,999 | 859,975 | ||||||||||||||
| Equity: | |||||||||||||||||||
| SEACOR Holdings Inc. stockholders’ equity: | |||||||||||||||||||
| Preferred stock | — | — | — | — | — | ||||||||||||||
| Common stock | 390 | 389 | 389 | 389 | 387 | ||||||||||||||
| Additional paid-in capital | 1,596,642 | 1,593,430 | 1,592,375 | 1,576,657 | 1,573,013 | ||||||||||||||
| Retained earnings | 474,809 | 479,495 | 462,428 | 417,302 | 419,128 | ||||||||||||||
| Shares held in treasury, at cost | (1,366,773 | ) | (1,366,773 | ) | (1,367,433 | ) | (1,367,433 | ) | (1,368,300 | ) | |||||||||
| Accumulated other comprehensive income (loss), net of tax | (914 | ) | (444 | ) | (385 | ) | 96 | (545 | ) | ||||||||||
| 704,154 | 706,097 | 687,374 | 627,011 | 623,683 | |||||||||||||||
| Noncontrolling interests in subsidiaries | 149,688 | 140,597 | 130,462 | 134,463 | 129,678 | ||||||||||||||
| Total equity | 853,842 | 846,694 | 817,836 | 761,474 | 753,361 | ||||||||||||||
| $ | 1,471,024 | $ | 1,657,867 | $ | 1,655,924 | $ | 1,612,473 | $ | 1,613,336 | ||||||||||
| SEACOR HOLDINGS INC. FLEET COUNTS (unaudited) | |||||||||
| Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |||||
| Ocean Transportation & Logistics Services | |||||||||
| Bulk Transportation Services: | |||||||||
| Petroleum and chemical carriers - U.S.-flag | 10 | 10 | 10 | 10 | 11 | ||||
| Bulk carriers - U.S.-flag | 2 | 2 | 2 | 2 | 2 | ||||
| Port & Infrastructure Services: | |||||||||
| Harbor tugs - U.S.-flag | 24 | 24 | 24 | 23 | 23 | ||||
| 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 | ||||
| Logistics Services: | |||||||||
| PCTC(1) - U.S.-flag | 4 | 4 | 4 | 4 | 4 | ||||
| Short-sea container/RORO(2) vessels - Foreign-flag | 9 | 9 | 9 | 9 | 7 | ||||
| RORO(2) & deck barges - U.S.-flag | 7 | 7 | 7 | 7 | 7 | ||||
| Rail ferries - Foreign-flag | 2 | 2 | 2 | 2 | 2 | ||||
| 73 | 73 | 73 | 72 | 71 | |||||
| Inland Transportation & Logistics Services | |||||||||
| Bulk Transportation Services: | |||||||||
| Dry-cargo barges | 1,372 | 1,372 | 1,378 | 1,378 | 1,413 | ||||
| Liquid tank barges | 20 | 20 | 20 | 20 | 20 | ||||
| Specialty barges(3) | 5 | 5 | 5 | 5 | 7 | ||||
| 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 | 17 | 15 | ||||
| Less than 1,100 hp | 6 | 6 | 6 | 7 | 9 | ||||
| Logistics Services: | |||||||||
| Dry-cargo barges | 35 | 35 | 30 | 30 | 26 | ||||
| 1,479 | 1,479 | 1,480 | 1,480 | 1,513 | |||||
______________________
- Pure Car/Truck Carrier.
- Roll On/Roll Off.
- Includes non-certificated 10,000 and 30,000 barrel inland river liquid tank barges.
