SEACOR Holdings Announces Third Quarter Results
FORT LAUDERDALE, FL--(Marketwire - October 25, 2007) - SEACOR Holdings Inc. (NYSE: CKH) announced net income for the third quarter ended September 30, 2007 of $70.3 million, or $2.66 per diluted share, on operating revenues of $360.0 million. For the nine months ended September 30, 2007, net income was $173.7 million, or $6.44 per diluted share, on operating revenues of $996.1 million.
For the third quarter ended September 30, 2006, net income was $63.2 million, or $2.28 per diluted share, on operating revenues of $349.4 million. For the nine months ended September 30, 2006, net income was $176.0 million, or $6.32 per diluted share, on operating revenues of $986.3 million.
For the preceding quarter ended June 30, 2007, net income was $65.3 million, or $2.41 per diluted share, on operating revenues of $325.5 million.
Highlights for the Quarter
Offshore Marine Services -- Operating income in the third quarter was $70.3 million on operating revenues of $179.6 million compared to operating income of $95.0 million on operating revenues of $171.4 million in the preceding quarter. Third quarter results included $13.2 million in gains on asset dispositions compared to $38.5 million in gains in the preceding quarter.
The number of days available for charter in the third quarter decreased 571, or 3.2% due to a net reduction in fleet count. Overall average day rates increased from $10,948 to $11,769 per day. Overall utilization decreased from 84.0% to 83.6%.
Operating expenses in the third quarter were higher due to wage increases in the North Sea region following an annual rate review and the addition of one new vessel to the North Sea fleet. In the Far East region, additional costs were incurred to charter-in third party vessels in order to provide cover for vessels undergoing dockings. Additionally, during the third quarter SEACOR was invoiced and recognized $3.9 million for its share of a funding deficit arising from the March 2006 actuarial valuation of the United Kingdom Merchant Navy Officers Pension Fund.
Marine Transportation Services -- Marine Transportation Services reported an operating loss in the third quarter of $2.2 million on operating revenues of $27.7 million compared to an operating loss of $8.0 million on operating revenues of $25.9 million in the preceding quarter.
Operating results in the third quarter were positively impacted by the return to service of a vessel which had recently undergone a retrofit to a double-hull configuration. The vessel was on-hire for the entire third quarter as compared to 23 days in the prior quarter.
Operating results in the third quarter were also affected by two vessels being off-hire for various periods. One of these vessels was off-hire for the entire quarter while undergoing a retrofit to a double-hull configuration and is expected to return to service in the fourth quarter. The other vessel was off-hire for 25 days in August 2007 while undergoing a regulatory docking.
Inland River Services -- Operating income in the third quarter was $12.0 million on operating revenues of $32.7 million compared to operating income of $11.2 million on operating revenues of $28.0 million in the preceding quarter. Third quarter results included $1.6 million in gains on asset dispositions compared to $2.6 million in gains in the preceding quarter.
The improvement in operating income before gains on asset dispositions was generally due to higher freight rates, partially offset by higher towboat repair and maintenance costs.
Aviation Services -- Operating income in the third quarter was $13.5 million on operating revenues of $62.4 million compared to operating income of $5.1 million on operating revenues of $55.9 million in the preceding quarter. Third quarter results included $4.3 million in gains on asset dispositions compared to $1.5 million in gains in the preceding quarter.
The improvement in operating income before gains on asset dispositions was primarily due to increased support of oil and gas activity and seasonal flightseeing in Alaska. Additionally, operating income improved due to better performance of the air medical group and hurricane related insurance recoveries.
Environmental Services -- Operating income in the third quarter was $5.0 million on operating revenues of $42.3 million compared to operating income of $3.0 million on operating revenues of $32.2 million in the preceding quarter.
The improvement in operating results was primarily due to increased response and project management activity and consulting services.
Derivatives -- Derivative gains were $5.2 million in the third quarter compared to losses of $0.3 million in the preceding quarter primarily as a result of foreign currency forward contracts.
Marketable Securities -- Marketable security gains were $12.0 million in the third quarter compared to losses of $9.4 million in the preceding quarter.
Equity in Earnings of 50% or Less Owned Companies -- Equity earnings from joint ventures were $3.2 million in the third quarter compared to earnings of $7.8 million in the preceding quarter. In the preceding quarter, the Company sold its Offshore Marine Services' joint venture in Egypt for a gain of $4.1 million, net of tax.
Capital Commitments -- The Company's unfunded capital commitments as of September 30, 2007 consisted primarily of marine service vessels, harbor tugs, helicopters, barges and capital improvements to certain of its existing marine transportation fleet and totaled $527.5 million, of which $109.1 million is payable during the remainder of 2007 and the balance payable through 2010. Of these commitments, approximately $122.6 million may be terminated without further liability other than the payment of liquidated damages of $10.1 million in the aggregate. Subsequent to the end of the quarter, the Company committed to purchase additional property and equipment for $6.2 million. As of September 30, 2007, the Company held balances of Cash, Cash Equivalents, Restricted Cash, Securities, Construction Reserve Funds and Title XI Reserve Funds totaling $876.5 million.
SEACOR is a global provider of marine support and transportation service, primarily to the energy and chemical industries. SEACOR and its subsidiaries provide customers with a full suite of marine-related services including offshore services, U.S. coastwise shipping, inland river services, helicopter services, environmental services, and offshore and harbor towing services. SEACOR is uniquely focused on providing highly responsive local service, combined with the highest safety standards, innovative technology, modern efficient equipment, and dedicated, professional employees.
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, activity in foreign countries and changes in foreign political, military and economic conditions, the dependence of Offshore Marine Services, Marine Transportation Services and Aviation Services on several customers, industry fleet capacity, consolidation of our customer base, the ongoing need to replace aging vessels, restrictions imposed by the Shipping Acts and Aviation Acts on the amount of foreign ownership of the Company's Common Stock, increased competition if the Jones Act is repealed, safety record requirements related to Offshore Marine Services and Aviation Services, changes in foreign and domestic oil and gas exploration and production activity, operational risks of Offshore Marine Services, Marine Transportation Services, Harbor and Offshore Towing Services and Aviation Services, effects of adverse weather conditions and seasonality on Aviation Services, decreased demand for Marine Transportation Services and Harbor and Offshore Towing 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, future phase-out of our single-hull tankers, 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, changes in NRC's OSRO classification, liability in connection with providing spill response services, effects of adverse weather and river conditions and seasonality on Inland River Services, 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 in Inland River Service's operations, adequacy of insurance coverage, compliance with government regulation, including environmental laws and regulations, currency exchange fluctuations, the attraction and retention of qualified personnel by the Company and various other matters, many of which are beyond the Company's control and other factors. In addition, these statements constitute our cautionary statements under the Private Securities Litigation Reform Act of 1995. You should understand that it is not possible to predict or identify all such factors. Consequently, you should not consider the following to be a complete discussion of all potential risks or uncertainties. 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 Timothy McKeand, Vice President, at (954) 627-6380 or visit SEACOR's website at www.seacorholdings.com.
SEACOR HOLDINGS INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share data, unaudited) Three Months Ended Nine months Ended September 30, September 30, -------------------- -------------------- 2007 2006 2007 2006 --------- --------- --------- --------- Operating Revenues $ 359,923 $ 349,361 $ 996,140 $ 986,262 --------- --------- --------- --------- Costs and Expenses: Operating 213,992 196,608 601,468 553,401 Administrative and general 36,883 30,880 105,220 95,238 Depreciation and amortization 37,443 40,977 114,373 126,555 --------- --------- --------- --------- 288,318 268,465 821,061 775,194 --------- --------- --------- --------- Gains on Asset Dispositions and Impairments, Net 19,560 12,054 74,257 57,020 --------- --------- --------- --------- Operating Income 91,165 92,950 249,336 268,088 --------- --------- --------- --------- Other Income (Expense): Interest income 11,274 10,279 34,954 26,501 Interest expense (10,855) (13,307) (36,231) (40,222) Derivative gains, net 5,221 2,813 5,097 3,085 Foreign currency gains, net 316 650 186 2,026 Marketable security gains (losses), net 11,960 4,549 (2,158) (2,377) Other, net (716) 117 (120) 740 --------- --------- --------- --------- 17,200 5,101 1,728 (10,247) --------- --------- --------- --------- Income Before Income Tax Expense, Minority Interest in Income of Subsidiaries and Equity In Earnings of 50% or Less Owned Companies 108,365 98,051 251,064 257,841 Income Tax Expense 40,339 37,037 89,387 96,171 --------- --------- --------- --------- Income Before Minority Interest in Income of Subsidiaries and Equity in Earnings of 50% or Less Owned Companies 68,026 61,014 161,677 161,670 Minority Interest in Income of Subsidiaries (927) (451) (1,409) (638) Equity in Earnings of 50% or Less Owned Companies 3,183 2,607 13,432 15,007 --------- --------- --------- --------- Net Income $ 70,282 $ 63,170 $ 173,700 $ 176,039 ========= ========= ========= ========= Basic Earnings Per Common Share $ 3.02 $ 2.57 $ 7.29 $ 7.11 Diluted Earnings Per Common Share $ 2.66 $ 2.28 $ 6.44 $ 6.32 Weighted Average Common Shares Outstanding: Basic 23,234 24,575 23,821 24,743 Diluted 26,905 28,282 27,525 28,448 SEACOR HOLDINGS INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share data, unaudited) Three Months Ended ----------------------------------------------------- Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30, 2007 2007 2007 2006 2006 --------- --------- --------- --------- --------- Operating Revenues $ 359,923 $ 325,454 $ 310,763 $ 337,183 $ 349,361 --------- --------- --------- --------- --------- Costs and Expenses: Operating 213,992 198,818 188,658 189,799 196,608 Administrative and general 36,883 33,937 34,400 35,522 30,880 Depreciation and amortization 37,443 38,055 38,875 40,159 40,977 --------- --------- --------- --------- --------- 288,318 270,810 261,933 265,480 268,465 --------- --------- --------- --------- --------- Gains on Asset Dispositions and Impairments, Net 19,560 42,540 12,157 20,957 12,054 --------- --------- --------- --------- --------- Operating Income 91,165 97,184 60,987 92,660 92,950 --------- --------- --------- --------- --------- Other Income (Expense): Interest income 11,274 11,456 12,224 11,492 10,279 Interest expense (10,855) (12,108) (13,268) (13,457) (13,307) Derivative gains (losses), net 5,221 (254) 130 3,258 2,813 Foreign currency gains (losses), net 316 460 (590) 332 650 Marketable security gains (losses), net 11,960 (9,430) (4,688) (6,626) 4,549 Other, net (716) 639 (43) 207 117 --------- --------- --------- --------- --------- 17,200 (9,237) (6,235) (4,794) 5,101 --------- --------- --------- --------- --------- Income Before Income Tax Expense, Minority Interest in Income of Subsidiaries and Equity In Earnings (Losses) of 50% or Less Owned Companies 108,365 87,947 54,752 87,866 98,051 Income Tax Expense 40,339 30,206 18,842 28,949 37,037 --------- --------- --------- --------- --------- Income Before Minority Interest in Income of Subsidiaries and Equity in Earnings (Losses) of 50% or Less Owned Companies 68,026 57,741 35,910 58,917 61,014 Minority Interest in Income of Subsidiaries (927) (304) (178) (367) (451) Equity in Earnings (Losses) of 50% or Less Owned Companies 3,183 7,829 2,420 (195) 2,607 --------- --------- --------- --------- --------- Net Income $ 70,282 $ 65,266 $ 38,152 $ 58,355 $ 63,170 ========= ========= ========= ========= ========= Basic Earnings Per Common Share $ 3.02 $ 2.73 $ 1.57 $ 2.40 $ 2.57 Diluted Earnings Per Common Share $ 2.66 $ 2.41 $ 1.40 $ 2.12 $ 2.28 Weighted Average Common Shares Outstanding: Basic 23,234 23,886 24,354 24,311 24,575 Diluted 26,905 27,582 28,077 28,053 28,282 Common Shares Outstanding at Period End 23,157 23,895 24,181 24,519 24,457 SEACOR HOLDINGS INC. OPERATING INCOME (LOSS) BY LINE OF BUSINESS (in thousands, unaudited) Three Months Ended --------------------------------------------------- Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30, 2007 2007 2007 2006 2006 --------- --------- --------- --------- --------- Offshore Marine Services Operating Revenues $ 179,618 $ 171,442 $ 170,928 $ 174,753 $ 179,687 --------- --------- --------- --------- --------- Costs and Expenses: Operating 95,345 88,596 92,999 82,988 89,791 Administrative and general 13,137 11,893 13,023 13,101 10,118 Depreciation and amortization 14,069 14,515 16,524 17,239 19,353 --------- --------- --------- --------- --------- 122,551 115,004 122,546 113,328 119,262 --------- --------- --------- --------- --------- Gains on Asset Dispositions 13,222 38,546 8,294 13,797 10,168 --------- --------- --------- --------- --------- Operating Income $ 70,289 $ 94,984 $ 56,676 $ 75,222 $ 70,593 ========= ========= ========= ========= ========= Marine Transportation Services Operating Revenues $ 27,730 $ 25,924 $ 30,556 $ 34,408 $ 35,617 --------- --------- --------- --------- --------- Costs and Expenses: Operating 19,207 22,865 20,849 20,941 21,017 Administrative and general 1,150 1,236 1,186 1,096 1,064 Depreciation and amortization 9,536 9,790 10,158 10,159 10,159 --------- --------- --------- --------- --------- 29,893 33,891 32,193 32,196 32,240 --------- --------- --------- --------- --------- Gains on Asset Dispositions -- -- -- -- -- --------- --------- --------- --------- --------- Operating Income (Loss) $ (2,163) $ (7,967) $ (1,637) $ 2,212 $ 3,377 ========= ========= ========= ========= ========= Inland River Services Operating Revenues $ 32,656 $ 28,020 $ 26,722 $ 37,841 $ 38,798 --------- --------- --------- --------- --------- Costs and Expenses: Operating 16,234 13,056 12,305 16,752 18,563 Administrative and general 1,753 2,101 877 1,330 1,013 Depreciation and amortization 4,256 4,332 3,499 3,755 3,804 --------- --------- --------- --------- --------- 22,243 19,489 16,681 21,837 23,380 --------- --------- --------- --------- --------- Gains on Asset Dispositions 1,592 2,622 3,622 84 -- --------- --------- --------- --------- --------- Operating Income $ 12,005 $ 11,153 $ 13,663 $ 16,088 $ 15,418 ========= ========= ========= ========= ========= Aviation Services Operating Revenues $ 62,449 $ 55,861 $ 45,433 $ 38,858 $ 43,799 --------- --------- --------- --------- --------- Costs and Expenses: Operating 41,647 41,212 36,225 32,818 33,269 Administrative and general 4,590 4,439 4,521 3,880 3,413 Depreciation and amortization 7,015 6,601 6,079 5,847 5,264 --------- --------- --------- --------- --------- 53,252 52,252 46,825 42,545 41,946 --------- --------- --------- --------- --------- Gains on Asset Dispositions 4,304 1,505 227 7,065 1,880 --------- --------- --------- --------- --------- Operating Income (Loss) $ 13,501 $ 5,114 $ (1,165) $ 3,378 $ 3,733 ========= ========= ========= ========= ========= Environmental Services Operating Revenues $ 42,287 $ 32,168 $ 26,492 $ 40,762 $ 38,885 --------- --------- --------- --------- --------- Costs and Expenses: Operating 30,316 23,605 20,753 29,931 26,370 Administrative and general 5,931 4,323 5,301 5,101 5,931 Depreciation and amortization 1,096 1,100 909 1,153 731 --------- --------- --------- --------- --------- 37,343 29,028 26,963 36,185 33,032 --------- --------- --------- --------- --------- Gains (Losses) on Asset Dispositions and Impairments, Net 75 (133) (16) 11 6 --------- --------- --------- --------- --------- Operating Income (Loss) $ 5,019 $ 3,007 $ (487) $ 4,588 $ 5,859 ========= ========= ========= ========= ========= Harbor and Offshore Towing Services Operating Revenues $ 12,351 $ 12,538 $ 11,682 $ 11,632 $ 12,552 --------- --------- --------- -------- -------- Costs and Expenses: Operating 8,797 10,003 6,568 7,252 7,744 Administrative and general 1,769 1,999 2,182 2,089 1,662 Depreciation and amortization 1,264 1,264 1,264 1,264 1,265 --------- --------- --------- -------- -------- 11,830 13,266 10,014 10,605 10,671 --------- --------- --------- -------- -------- Gains (Losses) on Asset Dispositions and Impairments, Net (100) -- 30 -- -- --------- --------- --------- -------- -------- Operating Income (Loss) $ 421 $ (728) $ 1,698 $ 1,027 $ 1,881 ========= ========= ========= ======== ======== Other Operating Revenues $ 3,058 $ 204 $ -- $ -- $ -- --------- --------- --------- -------- -------- Costs and Expenses: Operating 2,646 174 9 -- -- Administrative and general 333 207 3 -- 6 Depreciation and amortization -- -- -- -- -- --------- --------- --------- -------- -------- 2,979 381 12 -- -- --------- --------- --------- -------- -------- Gains on Asset Dispositions 467 -- -- -- -- --------- --------- --------- -------- -------- Operating Income (Loss) $ 546 $ (177) $ (12) $ -- $ (6) ========= ========= ========= ======== ======== Corporate and Eliminations Operating Revenues $ (226) $ (703) $ (1,050) $ (1,071) $ 23 --------- --------- --------- -------- -------- Costs and Expenses: Operating (200) (693) (1,050) (883) (146) Administrative and general 8,220 7,739 7,307 8,925 7,673 Depreciation and amortization 207 453 442 742 401 --------- --------- --------- -------- -------- 8,227 7,499 6,699 8,784 7,928 --------- --------- --------- -------- -------- Gains on Asset Dispositions -- -- -- -- -- --------- --------- --------- -------- -------- Operating Loss $ (8,453) $ (8,202) $ (7,749) $ (9,855) $ (7,905) ========= ========= ========= ======== ======== SEACOR HOLDINGS INC. SELECTED CONSOLIDATED BALANCE SHEET DATA (in thousands, unaudited) Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30, 2007 2007 2007 2006 2006 --------- --------- --------- --------- --------- Cash, Cash Equivalents, Restricted Cash, Securities, Construction Reserve Funds and Title XI Reserve Funds $ 876,468 $ 921,617 $ 815,928 $ 925,725 $ 839,057 Receivables 333,634 292,159 300,847 312,956 282,040 Current Assets 874,607 924,792 815,534 938,369 893,813 Net Property and Equipment 1,951,744 1,855,641 1,882,731 1,770,210 1,764,990 Total Assets 3,460,430 3,371,798 3,271,047 3,252,982 3,076,296 Current Portion of Long-term Debt and Capital Lease Obligations 28,569 12,407 11,736 11,708 10,443 Current Liabilities 405,953 353,303 314,012 295,509 287,872 Long-term Debt & Capital Lease Obligations 942,188 943,758 959,007 961,003 964,567 Stockholders' Equity 1,604,371 1,597,143 1,554,233 1,557,078 1,493,036