SEACOR Holdings Announces Second Quarter Results
HOUSTON--(BUSINESS WIRE)--July 29, 2004--SEACOR Holdings Inc. (NYSE:CKH) announced net earnings for the second quarter ended June 30, 2004 of $0.2 million, or $0.01 per diluted share, on operating revenues of $97.4 million. For the six months ended June 30, 2004, net losses were $2.8 million, or $0.15 per diluted share, on operating revenues of $193.4 million.
For the second quarter ended June 30, 2003, net earnings were $6.4 million, or $0.33 per diluted share, on operating revenues of $105.2 million. For the six months ended June 30, 2003, net earnings were $10.8 million, or $0.55 per diluted share, on operating revenues of $202.0 million.
For the immediately proceeding quarter ended March 31, 2004, the Company reported a net loss of $3.0 million, or $0.16 per diluted share, on operating revenues of $96.0 million.
Financial results for the second quarter ended June 30, 2004 as compared to the immediately preceding quarter ended March 31, 2004 were impacted by a variety of factors highlighted below.
-- Increased operating revenues. Operating revenues for the quarter were $97.4 million, an increase of $1.4 million from the previous quarter. Newly constructed barges commenced operations and non-grain freight volumes increased in Inland River Services. Utilization improved for Offshore Marine Services' vessels working in the U.S. and Mexico. Flight hours increased in Aviation Services due to improved demand and increased customer familiarity with new aircraft models introduced by the Company in late 2003. These improvements were partly offset by reduced revenues from oil spill responses handled by Environmental Services.
-- Increased operating income. Operating income was $1.7 million for the quarter as compared to an operating loss of $4.5 million for the previous quarter. The improvement in income largely resulted from increased gains on asset sales, lower operating and administrative expenses in the Offshore Marine and Environmental Services segments and the improved revenues described above. Offsetting this improvement was lower demand for southbound grain movement, higher costs associated with seasonal operating patterns, and rising fuel expenses in Inland River Services.
-- Decreased income from derivative transactions. Derivative transactions resulted in a loss of $0.6 million for the quarter as compared to income of $0.1 million in the previous quarter.
-- Decreased gain from foreign currency transactions, net. Net foreign currency exchange loss was $0.7 million for the quarter as compared to a net foreign currency exchange gain of $0.5 million for the previous quarter. The net gain and loss resulted primarily from the revaluation of a loan made by the Company to a foreign subsidiary.
-- Increased equity earnings. Equity earnings for the quarter were $0.7 million, a modest increase from the previous quarter. Income in both periods resulted primarily from Offshore Marine Services' joint venture operations in Mexico and Latin America. Results for the second quarter included a $0.5 million loss from the sale of an interest in an Asian joint venture.
Drydock costs aggregated $2.3 million in the second quarter with 18 vessels completing repairs. Fourteen main propulsion engines were overhauled for aggregate costs of $0.6 million.
In the second quarter and for all other periods reported in this press release, the Company reclassified "Gains on Asset Sales" from "Other Income (Expense)" to "Operating Income (Loss)." Gains on asset sales totaled $6.1 million in the current quarter. Offshore Marine Services sold 30 vessels that had a carrying value of $45.5 million. Dispositions included the Company's 19 remaining "retired from service" vessels and 1 that was leased-back. Six vessels chartered-in pursuant to sale-leaseback transactions were redelivered to lessors.
Four new offshore support vessels, 125 new dry cargo hopper barges and 1 new chemical tank barge were delivered to the Company in the second quarter for aggregate consideration of $53.9 million.
Remaining capital commitments at June 30, 2004 for 5 new and 1 used vessel, 183 new dry cargo hopper barges, 39 new chemical tank barges, 7 new helicopters and other equipment aggregated $113.2 million. Deliveries are expected throughout 2004 and 2005. The Company also holds options to purchase 150 new dry cargo hopper barges for delivery in 2005.
In the quarter, the Company acquired 220,400 shares of its common stock for treasury at an aggregate cost of $8.7 million pursuant to a stock and debt repurchase plan. As of June 30, 2004, $45.4 million of authority remains available for future purchases of SEACOR's stock and 5-7/8% and 7.2% notes.
At June 30, 2004, the Company's cash, marketable securities, and construction reserve funds totaled $441.8 million, an increase of $0.3 million from the prior quarter. At June 30, 2004, the Company's long-term debt totaled $342.3 million, an increase of $10.1 million from the prior quarter.
SEACOR and its subsidiaries are engaged in the operation of a diversified fleet of offshore support vessels that service oil and gas exploration and development activities in the U.S. Gulf of Mexico, the North Sea, West Africa, Asia, Latin America and other international regions. Other business activities primarily include Environmental Services, Inland River Services, and Aviation Services.
This release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements concerning management's expectations, strategic objectives, business prospects, anticipated economic performance and financial condition and other similar matters involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of results to differ materially from any future results, performance or achievements discussed or implied by such forward-looking statements. Such risks, uncertainties and other important factors include, among others: the cyclical nature of the oil and gas industry, adequacy of insurance coverage, currency exchange fluctuations, changes in foreign political, military and economic conditions, the ongoing need to replace aging vessels, dependence of offshore marine operations on several customers, dependence of spill response revenue on the number and size of spills and upon continuing government regulation in this area and our ability to comply with such regulation and other governmental regulation, industry fleet capacity, changes in foreign and domestic oil and gas exploration and production activity, competition, vessel-related risks, effects of adverse weather conditions and seasonality on aviation services, helicopter related risks, effects of adverse weather and river conditions and seasonality on inland river operations, the level of grain export volume, the effect of fuel prices on barge towing costs, variability in freight rates for inland river barges, changes in the Company's environmental services segment OSRO classification, liability in connection with providing spill response services, restrictions imposed by the Shipping Act of 1916 and the Merchant Marine Act of 1920 on the amount of foreign ownership of the Company's common stock, the effect of international economic and political factors in inland river operations and various other matters, many of which are beyond the Company's control and other factors. The words "estimate," "project," "intend," "believe," "plan" and similar expressions are intended to identify forward-looking statements. Forward-looking statements speak only as of the date of the document in which they are made. We disclaim any obligation or undertaking to provide any updates or revisions to any forward-looking statement to reflect any change in our expectations or any change in events, conditions or circumstances on which the forward-looking statement is based. The forward-looking statements in this release should be evaluated together with the many uncertainties that affect our businesses, particularly those mentioned under "Forward-Looking Statements" in Item 7 of our Form 10-K and SEACOR's periodic reporting on Form 10-Q and Form 8-K (if any), which we incorporate by reference.
For additional information, contact Randall Blank, Executive Vice President and Chief Financial Officer, at (281) 899-4800 or (212) 307-6633 or visit SEACOR's website at www.seacorholdings.com.
SEACOR Holdings Inc. and Subsidiaries Consolidated Statements of Operations (in thousands, except share data, unaudited) Three Months Ended Six Months Ended June 30, June 30, ------------------------ ----------------------- 2004 2003 2004 2003 ----------- ------------ ----------- ----------- Operating Revenues $ 97,403 $ 105,159 $ 193,377 $ 202,019 ----------- ------------ ----------- ----------- Costs and Expenses: Operating expenses 73,759 69,422 148,789 136,522 Administrative and general 13,857 13,391 28,933 27,470 Depreciation and amortization 14,156 13,708 28,117 28,344 ----------- ------------ ----------- ----------- 101,772 96,521 205,839 192,336 ----------- ------------ ----------- ----------- Gains on Asset Sales(1) 6,117 414 9,755 5,561 ----------- ------------ ----------- ----------- Operating Income (Loss) 1,748 9,052 (2,707) 15,244 ----------- ------------ ----------- ----------- Other Income (Expense): Interest income 1,663 1,870 3,042 4,426 Interest expense (5,388) (4,419) (10,766) (9,925) Debt extinguishments - (966) - (2,091) Derivative income (loss), net (560) 2,624 (481) 4,373 Foreign currency transaction gains (losses), net (689) 1,294 (223) 1,829 Marketable securities sale gains, net 2,753 1,250 5,502 3,441 Other, net 233 (747) 352 (744) ----------- ------------ ----------- ----------- (1,988) 906 (2,574) 1,309 ----------- ------------ ----------- ----------- Income (Loss) Before Taxes, Minority Interest and Equity in Earnings of 50% or Less Owned Companies (240) 9,958 (5,281) 16,553 Income Taxes 169 3,596 (1,333) 5,995 ----------- ------------ ----------- ----------- Income (Loss) Before Minority Interest and Equity in Earnings of 50% or Less Owned Companies (409) 6,362 (3,948) 10,558 Minority Interest in Net Income of Subsidiaries (91) (241) (86) (339) Equity in Earnings of 50% or Less Owned Companies 673 322 1,243 568 ----------- ------------ ----------- ----------- Net Income (Loss) $ 173 $ 6,443 $ (2,791)$ 10,787 =========== ============ =========== =========== Earnings (Loss) Per Common Share: Basic $ 0.01 $ 0.34 $ (0.15)$ 0.55 Diluted (2) 0.01 0.33 (0.15) 0.55 Weighted Average Common Shares Outstanding: Basic 18,347,195 19,155,421 18,406,783 19,463,596 Diluted (2) 18,476,409 19,315,817 18,406,783 19,834,307 (1)Previously reported gains on asset sales have been reclassified from "Other Income (Expense)" to conform to the three and six months ended June 30, 2004 financial statement presentation. (2)Outstanding stock options and restricted stock have been excluded from the computations of diluted loss per common share and diluted weighted average common shares for the six months ended June 30, 2004 as the effect was anti-dilutive. SEACOR Holdings Inc. and Subsidiaries Supplemental Data (in thousands, except per share data, unaudited) Three Months Ended -------------------------------------------- Jun. 30, Mar. 31, Dec. 31, Sep. 30, Jun. 30, 2004 2004 2003 2003 2003 -------- -------- -------- -------- -------- Statements of Operations: Operating Revenues $ 97,403 $ 95,974 $100,956 $103,234 $105,159 -------- -------- -------- -------- -------- Cost and Expenses: Operating expenses 73,759 75,030 78,504 72,264 69,422 Administrative and general 13,857 15,076 16,538 13,676 13,391 Depreciation and amortization 14,156 13,961 13,751 13,411 13,708 -------- -------- -------- -------- -------- 101,772 104,067 108,793 99,351 96,521 -------- -------- -------- -------- -------- Gains on Asset Sales(1) 6,117 3,638 9,612 2,349 414 -------- -------- -------- -------- -------- Operating Income (Loss) 1,748 (4,455) 1,775 6,232 9,052 -------- -------- -------- -------- -------- Other Income (Expense): Interest income 1,663 1,379 1,565 1,540 1,870 Interest expense (5,388) (5,378) (4,785) (4,603) (4,419) Debt extinguishments - - - - (966) Derivative income (loss), net (560) 79 (1,541) (443) 2,624 Foreign currency transaction gains (losses), net (689) 466 3,625 (1,714) 1,294 Marketable securities sale gains, net 2,753 2,749 743 2,411 1,250 Other, net 233 119 106 (15) (747) -------- -------- -------- -------- -------- (1,988) (586) (287) (2,824) 906 -------- -------- -------- -------- -------- Income (Loss) Before Taxes, Minority Interest and Equity Earnings in 50% or Less Owned Companies (240) (5,041) 1,488 3,408 9,958 Income Taxes 169 (1,502) 3,067 1,334 3,596 -------- -------- -------- -------- -------- Income (Loss) Before Minority Interest and Equity Equity in 50% or Less Owned Companies (409) (3,539) (1,579) 2,074 6,362 Minority Interest in Net (Income) Loss of Subsidiaries (91) 5 (66) (112) (241) Equity in Earnings of 50% or less Owned Companies 673 570 (85) 935 322 -------- -------- -------- -------- -------- Net Income (Loss) $ 173 $ (2,964)$ (1,730)$ 2,897 $ 6,443 ======== ======== ======== ======== ======== Earnings (Loss) Per Common Share: Basic $ 0.01 $ (0.16)$ (0.09)$ 0.16 $ 0.34 Diluted(2) 0.01 (0.16) (0.09) 0.15 0.33 Weighted Average Common Shares Outstanding: Basic 18,347 18,468 18,509 18,630 19,155 Diluted(2) 18,476 18,468 18,509 18,785 19,316 Common Shares Outstanding at Period End 18,313 18,533 18,581 18,729 18,793 (1)Previously reported gains on asset sales have been reclassified from "Other Income (Expense)" to conform to the three months ended June 30, 2004 financial statement presentation. (2)Outstanding stock options and restricted stock have been excluded from the computation of diluted loss per common share and diluted weighted average common shares for each of the three month periods ended March 31, 2004 and December 31, 2003 as the effect was anti-dilutive. SEACOR Holdings Inc. and Subsidiaries Supplemental Data (unaudited) Three Months Ended ------------------------------------------------------ Jun 30, Mar. 31, Dec. 31, Sep. 30, Jun. 30, 2004 2004 2003 2003 2003 ---------- ---------- ---------- ---------- ---------- Balance Sheet Data, at period end (in thousands): Cash, Securities, Construction Reserve Funds$ 441,805 $ 441,502 $ 438,131 $ 428,372 $ 431,796 Total Assets 1,394,902 1,401,426 1,402,611 1,370,630 1,379,700 Total Long- term Debt 342,271 332,225 332,179 332,213 332,187 Stockholders' Equity 757,886 766,529 770,446 768,530 772,563 Operating Revenues by Segment (in thousands): Offshore Marine Services $ 67,039 $ 66,016 $ 74,262 $ 81,194 $ 79,553 Environmental Services 14,654 16,392 11,732 10,625 15,551 Inland River Services 10,038 8,576 10,728 7,247 5,044 Other(1) 6,680 5,827 5,328 4,803 5,422 Intersegment Eliminations (1,008) (837) (1,094) (635) (411) ---------- ---------- ---------- ---------- ---------- $ 97,403 $ 95,974 $ 100,956 $ 103,234 $ 105,159 ========== ========== ========== ========== ========== Operating Income (Loss) by Segment (in thousands): Offshore Marine Services $ 4,677 $ (1,525)$ 3,976 $ 5,779 $ 5,869 Environmental Services 816 954 894 3,421 5,213 Inland River Services 932 1,016 2,523 970 845 Other(1) (1,308) (1,895) (1,893) (1,122) (96) Corporate Expenses (3,369) (3,005) (3,725) (2,816) (2,779) ---------- ---------- ---------- ---------- ---------- $ 1,748 $ (4,455)$ 1,775 $ 6,232 $ 9,052 ========== ========== ========== ========== ========== Offshore Marine Vessels - Available Days(2): Anchor Handling Towing Supply - Domestic 273 304 460 460 455 Foreign 741 724 890 1,012 1,001 Supply - Domestic 731 790 831 920 1,026 Foreign 910 910 1,061 1,104 995 Towing - Domestic 182 273 184 184 253 Foreign 837 1,026 1,095 1,196 1,140 Crew 5,921 6,188 6,321 6,699 6,654 Geophysical, Freight and Other - 91 92 92 91 Mini-supply 2,708 2,730 2,760 2,760 2,730 Standby Safety 1,911 1,911 1,871 1,840 1,820 Utility - - 2,581 3,253 3,417 ---------- ---------- ---------- ---------- ---------- 14,214 14,947 18,146 19,520 19,582 ========== ========== ========== ========== ========== (1)Primarily includes Aviation Services. (2)Excludes vessels that are bareboat chartered-out, vessels owned by corporations that participate in pooling arrangements with the Company, minority owned joint venture vessels and managed vessels. SEACOR Holdings Inc. and Subsidiaries Supplemental Data (unaudited) Three Months Ended -------------------------------------------- Jun. 30, Mar. 31, Dec. 31, Sep. 30, Jun. 30, 2004 2004 2003 2003 2003 -------- -------- -------- -------- -------- Offshore Marine Vessels - Rates Per Day Worked(1) (2): Anchor Handling Towing Supply - Domestic $ 19,115 $ 15,888 $ 22,111 $ 20,095 $ 16,712 Foreign 9,539 8,524 9,212 9,927 10,593 Supply - Domestic 5,994 6,300 6,079 6,062 6,141 Foreign 9,729 9,067 8,860 8,926 9,615 Towing - Domestic 6,040 6,055 6,091 6,093 6,290 Foreign 6,775 6,586 6,577 7,236 7,050 Crew 3,314 3,297 3,323 3,257 3,153 Geophysical, Freight and Other - - - - - Mini-supply 2,932 2,976 2,992 2,998 3,027 Standby Safety 7,719 7,694 6,933 6,733 6,559 Utility - - 1,752 1,774 1,792 Offshore Marine Vessels - Utilization(2): Anchor Handling Towing Supply - Domestic 68.3% 68.2% 56.2% 65.9% 66.8% Foreign 63.9% 61.5% 72.8% 81.9% 81.2% Supply - Domestic 76.1% 71.7% 50.5% 72.7% 58.4% Foreign 72.8% 73.4% 86.1% 88.7% 93.9% Towing - Domestic 91.8% 56.7% 100.0% 100.0% 97.1% Foreign 61.8% 67.4% 75.0% 82.7% 88.2% Crew 89.0% 82.8% 78.5% 75.9% 79.9% Geophysical, Freight and Other - - - - - Mini-supply 86.7% 81.7% 86.3% 91.6% 89.4% Standby Safety 85.9% 87.0% 90.3% 89.9% 89.5% Utility - - 52.4% 58.7% 56.7% Overall Utilization 83.2% 78.6% 75.1% 77.5% 77.8% Utilization Lost to Market Conditions 12.9% 17.1% 21.4% 18.9% 18.8% Utilization Lost to Operating Conditions 3.9% 4.3% 3.5% 3.6% 3.4% Helicopter Flight Hours 6,714 5,750 5,422 5,131 5,889 (1)Revenues for certain vessels, primarily North Sea standby safety, are earned in foreign currencies, principally British Pounds Sterling. These revenues have been converted to U.S. dollars at the weighted average exchange rate for the periods indicated. (2)Excludes vessels that are bareboat chartered-out, vessels owned by corporations that participate in pooling arrangements with the Company, minority owned joint venture vessels and managed vessels. SEACOR Holdings Inc. and Subsidiaries Supplementary Data (unaudited) June 30, 2004 -------------------------------------- Owned Leased-in Joint Pooled/ Total Ventured Managed ----- --------- -------- ------- ----- Offshore Marine Fleet Count: Operated Domestic - Anchor Handling Towing Supply 1 2 1 - 4 Crew 29 19 1 - 49 Geophysical, Freight and Other - - - - - Mini-supply 22 4 - - 26 Standby Safety - - - - - Supply 3 2 2 1 8 Towing - 2 - - 2 Utility - - - - - ----- --------- -------- ------- ----- 55 29 4 1 89 ----- --------- -------- ------- ----- Operated Foreign - Anchor Handling Towing Supply 13 - 1 - 14 Crew 22 - 4 - 26 Geophysical, Freight and Other - - 1 - 1 Mini-supply 3 - 2 - 5 Standby Safety 19 - 3 5 27 Supply 7 2 5 - 14 Towing 10 - 21 - 31 Utility - - - - - ----- --------- -------- ------- ----- 74 2 37 5 118 ----- --------- -------- ------- ----- Worldwide Operations - Anchor Handling Towing Supply 14 2 2 - 18 Crew 51 19 5 - 75 Geophysical, Freight and Other - - 1 - 1 Mini-supply 25 4 2 - 31 Standby Safety 19 - 3 5 27 Supply 10 4 7 1 22 Towing 10 2 21 - 33 Utility - - - - - ----- --------- -------- ------- ----- 129 31 41 6 207 ===== ========= ======== ======= ===== Inland Barges, domestic Dry Cargo Hopper 513 182 6 210 911 Chemical Tank 1 - - - 1 ----- --------- -------- ------- ----- 514 182 6 210 912 ===== ========= ======== ======= ===== Helicopters, domestic 24 18 - 1 43 ===== ========= ======== ======= ===== SEACOR Holdings Inc. and Subsidiaries Supplementary Data (unaudited) Mar. 31, Dec. 31, Sep. 30, Jun. 30, 2004 2003 2003 2003 -------- -------- -------- -------- Offshore Marine Fleet Count: Operated Domestic - Anchor Handling Towing Supply 4 6 5 5 Crew 53 53 57 60 Geophysical, Freight and Other - 1 1 1 Mini-supply 27 27 28 28 Standby Safety - - - - Supply 10 9 11 11 Towing 2 2 2 2 Utility - - 34 37 -------- -------- -------- -------- 96 98 138 144 -------- -------- -------- -------- Operated Foreign - Anchor Handling Towing Supply 15 20 21 20 Crew 33 34 33 32 Geophysical, Freight and Other 2 3 1 1 Mini-supply 5 5 4 4 Standby Safety 27 27 26 26 Supply 15 17 18 17 Towing 35 31 36 36 Utility - - 2 3 -------- -------- -------- -------- 132 137 141 139 -------- -------- -------- -------- Worldwide Operations - Anchor Handling Towing Supply 19 26 26 25 Crew 86 87 90 92 Geophysical, Freight and Other 2 4 2 2 Mini-supply 32 32 32 32 Standby Safety 27 27 26 26 Supply 25 26 29 28 Towing 37 33 38 38 Utility - - 36 40 -------- -------- -------- -------- 228 235 279 283 ======== ======== ======== ======== Inland Barges, domestic Dry Cargo Hopper 792 784 735 559 Chemical Tank - - - - -------- -------- -------- -------- 792 784 735 559 ======== ======== ======== ======== Helicopters, domestic 43 41 36 36 ======== ======== ======== ========