SEACOR Holdings Announces Third Quarter Results

FORT LAUDERDALE, Fla., Nov. 9 /PRNewswire-FirstCall/ -- SEACOR Holdings Inc. announced net earnings for the third quarter ended September 30, 2005 of $20.5 million, or $0.76 per diluted share, on operating revenues of $294.9 million. For the nine months ended September 30, 2005, net earnings were $64.2 million, or $2.81 per diluted share, on operating revenues of $637.9 million.

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For the third quarter ended September 30, 2004, net earnings were $3.4 million, or $0.18 per diluted share, on operating revenues of $116.5 million. For the nine months ended September 30, 2004, net earnings were $0.6 million, or $0.03 per diluted share, on operating revenues of $309.9 million.

For the previous quarter ended June 30, 2005, the Company reported net earnings of $25.1 million, or $1.20 per diluted share, on operating revenues of $177.8 million.

Impact of the Seabulk Acquisition -- The third quarter included, for the first time, the result of Seabulk International, Inc. ("Seabulk"), a company acquired by SEACOR on July 1, 2005. Seabulk's operating revenues for the quarter totaled $97.9 million compared to $96.7 million in the previous quarter (prior to its acquisition by SEACOR). Seabulk's business segments produced operating results consistent with Seabulk's second quarter.

The Seabulk acquisition was accounted for as a purchase under current accounting guidelines, which required that the Seabulk assets and liabilities were subject to fair valuation on the date of acquisition. The preliminary fair value of Seabulk's vessels resulted in an increase in their book value of $385.7 million, which coupled with SEACOR's policy regarding asset useful lives, resulted in additional depreciation expense of $16.4 million over Seabulk's previous quarter.

During the third quarter, Seabulk's result was impacted by a derivative loss of $4.1 million, related to an interest rate swap. Consistent with SEACOR's accounting treatment of other derivative instruments, changes in fair value are reflected in the statement of operations. Prior to its acquisition, Seabulk had designated this swap as a hedge.

Seabulk's result for the quarter, including the additional depreciation expense and the derivative impact, was a net loss of $6.9 million or $0.24 per diluted share.

Pre-existing SEACOR Business Segments -- Excluding Seabulk's result, net income from pre-existing SEACOR business segments was $27.4 million on operating revenues of $197.0 million, compared to $25.1 million on operating revenues of $177.8 million in the previous quarter. The improvement in results was primarily attributed to revenue increases and improved operating margins.

Revenue increases were mainly due to higher demand for all classes of equipment in Offshore Marine Services and Helicopter Services. Business activity in the third quarter was generally brisk due to increased drilling in the Gulf of Mexico and damage assessment and re-construction of offshore installations following Hurricanes Katrina and Rita. Environmental Services also experienced increased demand due to remediation work required to address the aftermath of Hurricanes Katrina and Rita. Inland River Services' activity levels were slightly reduced due to closing the port of New Orleans and logistics disruptions associated with hurricanes and low water in the river system. Improvements in freight rates compensated for reduction in loadings and cargo.

Offshore Marine Services recorded a $4.4 million charge relating to a funding deficit in a UK multi-company pension fund in which the company is deemed to be a participating employer. Offshore Marine Services was also affected by hurricane damage to certain Gulf Coast facilities of its logistics business resulting in a write-off of certain tangible assets and a goodwill impairment charge totaling $1.6 million. In all other respects, costs and expenses generally increased in response to the higher levels of business activity.

Excluding Seabulk's result, operating income for the quarter was $32.3 million, an increase of $7.7 million over the previous quarter. Operating income improved in Offshore Marine Services, Helicopter Services and Inland River Services in response to the improvements in revenues. Environmental Services achieved improved operating income despite an overall reduction in spill activity.

Excluding Seabulk's result, foreign currency transaction gains for the current quarter were $2.4 million, compared to gains of $4.4 million in the previous quarter. Marketable securities transactions resulted in net gains of $10.4 million, compared to gains of $8.5 million in the previous quarter.

SEACOR recognized an impairment charge of $2.7 million, net of tax, with respect to one of its equity investments.

Capital Commitments -- As of November 9, 2005, capital commitments in respect of all classes of assets aggregated $563.8 million.

Quarterly Report Filing -- SEACOR was unable to file its Quarterly Report on Form 10-Q for the quarter ended September 30, 2005 on today's due date without unreasonable effort and expense due to damage caused by Hurricane Wilma. SEACOR's principal accounting functions are based in Ft.Lauderdale, Florida. From October 24, 2005 through November 1, 2005, due to damage caused by Hurricane Wilma, its Ft. Lauderdale office was effectively closed, with no water, limited generator power, limited fuel and limited access by office personnel, delaying SEACOR's ability to compile the required information and complete the preparation of its Quarterly Report on Form 10-Q for the quarter ended September 30, 2005. SEACOR expects to file its Form 10-Q on Monday, November 14, 2005 within the five day extension period allowed by Securities and Exchange Commission Rule 12b-25.

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.

For additional information, contact Timothy McKeand, Vice President, at (954) 524-4200 ext. 820 or visit SEACOR's website at http://www.seacorholdings.com/ .

 SEACOR Holdings Inc.
 Consolidated Statements of Operations
 (in thousands, except per share data, unaudited)


 Three Months Ended Nine Months Ended
 September 30, September 30,
 2005 2004 2005 2004

 Operating Revenues $294,869 $116,486 $637,885 $309,863
 Costs and Expenses:
 Operating expenses 180,136 79,134 412,916 227,923
 Administrative and general 31,115 14,900 68,939 43,833
 Depreciation and amortization 46,535 14,352 83,309 42,469
 257,786 108,386 565,164 314,225
 Gains (Losses) on Asset Sales and
 Impairments (618) (119) 14,710 9,636
 Operating Income 36,465 7,981 87,431 5,274
 Other Income (Expense):
 Interest income 4,754 2,180 12,917 5,222
 Interest expense (16,541) (5,565) (31,682) (16,331)
 Derivative loss, net (4,425) (140) (6,193) (621)
 Foreign currency transaction
 gains (losses), net 2,436 (184) 6,288 (407)
 Marketable securities sale
 gains (losses), net 10,388 (756) 25,124 4,746
 Other, net 891 79 1,531 431
 (2,497) (4,386) 7,985 (6,960)
 Income (Loss) Before Income Tax
 Expense, Minority Interest in
 (Income) Loss of Subsidiaries
 and Equity in Earnings of 50%
 or Less Owned Companies 33,968 3,595 95,416 (1,686)
 Income Tax Expense 13,894 1,511 36,082 178
 Income (Loss) Before Minority
 Interest in (Income) Loss of
 Subsidiaries and Equity in
 Earnings of 50% or Less
 Owned Companies 20,074 2,084 59,334 (1,864)
 Minority Interest in (Income) Loss
 of Subsidiaries 223 (108) 103 (194)
 Equity in Earnings of 50% or Less
 Owned Companies 200 1,388 4,411 2,631
 Income From Continuing Operations 20,497 3,364 63,848 573
 Income from Discontinued
 Operations, net of tax -- -- 364 --
 Net Income $20,497 $3,364 $64,212 $573

 Basic Earnings Per Common Share:
 Income from Continuing
 Operations $0.83 $0.18 $3.12 $0.03
 Income from Discontinued
 Operations -- -- 0.01 --
 Net Income $0.83 $0.18 $3.13 $0.03
 Diluted Earnings Per Common Share:
 Income from Continuing
 Operations $0.76 $0.18 $2.79 $0.03
 Income from Discontinued
 Operations -- -- 0.02 --
 Net Income $0.76 $0.18 $2.81 $0.03
 Weighted Average Common Shares
 Outstanding:
 Basic 24,789 18,211 20,486 18,341
 Diluted 28,562 18,357 24,151 18,496







 SEACOR Holdings Inc.
 Consolidated Statements of Operations
 (in thousands, except per share data, unaudited)


 Three Months Ended
 Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30,
 2005 2005 2005 2004 2004

 Operating Revenues $294,869 $177,831 $165,185 $181,997 $116,486
 Cost and Expenses:
 Operating
 expenses 180,136 117,179 115,601 126,240 79,134
 Administrative
 and general 31,115 19,329 18,495 17,592 14,900
 Depreciation and
 amortization 46,535 18,492 18,282 15,365 14,352
 257,786 155,000 152,378 159,197 108,386
 Gains (Losses) on
 Asset Sales and
 Impairments (618) 1,812 13,516 598 (119)
 Operating Income 36,465 24,643 26,323 23,398 7,981
 Other Income
 (Expense):
 Interest income 4,754 4,484 3,679 3,200 2,180
 Interest expense (16,541) (7,550) (7,591) (6,154) (5,565)
 Derivative income
 (loss), net (4,425) (178) (1,590) 1,787 (140)
 Foreign currency
 transaction
 gains (losses),
 net 2,436 4,401 (549) 1,944 (184)
 Marketable
 securities sale
 gains (losses),
 net 10,388 8,502 6,234 1,689 (756)
 Other, net 891 440 200 108 79
 (2,497) 10,099 383 2,574 (4,386)
 Income Before Income
 Tax Expense,
 Minority Interest
 in (Income) Loss of
 Subsidiaries and
 Equity in Earnings
 of 50% or Less
 Owned Companies 33,968 34,742 26,706 25,972 3,595
 Income Tax Expense 13,894 12,448 9,740 8,395 1,511
 Income Before
 Minority Interest
 in (Income) Loss of
 Subsidiaries and
 Equity in Earnings
 of 50% or Less
 Owned Companies 20,074 22,294 16,966 17,577 2,084
 Minority Interest in
 (Income) Loss of
 Subsidiaries 223 (154) 34 (289) (108)
 Equity in Earnings
 of 50% or Less
 Owned Companies 200 2,594 1,617 2,028 1,388
 Income from
 Continuing
 Operations 20,497 24,734 18,617 19,316 3,364
 Income (Loss) from
 Discontinued
 Operations, net of
 tax -- 390 (26) -- --
 Net Income $20,497 $25,124 $18,591 $19,316 $3,364
 Basic Earnings Per
 Common Share:
 Income from
 Continuing
 Operations $0.83 $1.35 $1.02 $1.06 $0.18
 Income (Loss) from
 Discontinued
 Operations -- 0.02 -- -- --
 Net Income $0.83 $1.37 $1.02 $1.06 $0.18
 Diluted Earnings Per
 Common Share:
 Income from
 Continuing
 Operations $0.76 $1.18 $0.90 $1.03 $0.18
 Income (Loss) from
 Discontinued
 Operations -- 0.02 -- -- --
 Net Income $0.76 $1.20 $0.90 $1.03 $0.18
 Weighted Average
 Common Shares
 Outstanding:
 Basic 24,789 18,349 18,249 18,203 18,211
 Diluted 28,562 21,924 21,908 18,973 18,357
 Common Shares
 Outstanding at Period
 End 25,009 18,466 18,442 18,307 18,292




 SEACOR Holdings Inc.
 Supplemental Financial Data
 (in thousands, unaudited)


 Three Months Ended
 Sep. 30, Jun. 30, Mar. 31,
 2005 2005 2005
 Selected Balance Sheet Data, at period
 end:
 Cash, Securities and Construction
 Reserve Funds $ 650,805 $ 533,417 $ 615,153
 Total Assets 2,959,169 1,798,967 1,778,953
 Total Long-term Debt & Capital
 Lease Obligations 1,126,431 597,467 582,416
 Stockholders' Equity 1,280,028 831,254 811,932

 Operating Revenues by Segment:
 Offshore Marine Services $ 146,842 $ 84,043 $ 80,350
 Marine Transportation Services 35,723 -- --
 Environmental Services 27,466 35,635 35,893
 Inland River Services 29,702 27,333 25,530
 Helicopter Services 40,024 27,692 21,599
 Other and Intersegment Eliminations 15,112 3,128 1,813
 $ 294,869 $ 177,831 $ 165,185

 Operating Income (Loss) by Segment:
 Offshore Marine Services $ 26,881 $ 15,887 $ 22,252
 Marine Transportation Services (1,337) -- --
 Environmental Services 4,600 3,375 4,564
 Inland River Services 8,704 7,092 7,664
 Helicopter Services 5,516 1,738 (4,395)
 Corporate Expenses and Other (7,899) (3,449) (3,762)
 $ 36,465 $ 24,643 $ 26,323



 Three Months Ended
 Dec. 31, Sep. 30,
 2004 2004
 Selected Balance Sheet Data, at period
 end:
 Cash, Securities and Construction
 Reserve Funds $ 495,387 $ 440,091
 Total Assets 1,766,009 1,456,536
 Total Long-term Debt & Capital
 Lease Obligations 582,367 382,319
 Stockholders' Equity 793,757 766,763

 Operating Revenues by Segment:
 Offshore Marine Services $ 80,841 $ 72,825
 Marine Transportation Services -- --
 Environmental Services 62,824 21,144
 Inland River Services 31,878 16,076
 Helicopter Services 7,188 7,485
 Other and Intersegment Eliminations (734) (1,044)
 $ 181,997 $ 116,486

 Operating Income (Loss) by Segment:
 Offshore Marine Services $ 9,870 $ 6,360
 Marine Transportation Services -- --
 Environmental Services 7,473 2,742
 Inland River Services 11,795 3,153
 Helicopter Services (668) (475)
 Corporate Expenses and Other (5,072) (3,799)
 $ 23,398 $ 7,981

CONTACT: Timothy McKeand, Vice President, SEACOR, +1-954-524-4200, ext. 820