SEACOR SMIT Announces First Quarter Results

HOUSTON--(BUSINESS WIRE)--April 25, 2003--SEACOR SMIT Inc. (NYSE:CKH) announced net earnings for the first quarter ended March 31, 2003 of $4,344,000, or $0.22 per diluted share, on operating revenues of $96,860,000. In the comparable quarter ended March 31, 2002, SEACOR earned $11,406,000, or $0.55 per diluted share, on operating revenues of $103,643,000.

Net earnings in the immediately preceding quarter ended December 31, 2002 were $1,638,000, or $0.08 per diluted share, on operating revenues of $99,708,000.

The financial results for the first quarter ended March 31, 2003 as compared to the immediately preceding quarter ended December 31, 2002 were impacted, on a pre-tax basis, by a variety of factors highlighted below:

-- Decreased vessel utilization and rates per day worked. Lower utilization and rates per day worked resulted in an approximate $7.9 million decline in operating revenues.

-- Change in fleet size and composition. Net vessel dispositions resulted in a $0.5 million decline in operating revenues.

-- Decreased vessel operating expenses. Reduced utilization and lower engine repair costs resulted in a $5.6 million decline in operating expenses.

-- Decreased administrative expenses. Excluding expenses associated with Tex-Air Helicopters, Inc. ("Tex-Air"), a company acquired on December 31, 2002, administrative expenses decreased $0.9 million largely due to lower performance based compensation costs. Included in the current quarter was severance benefit expense of $0.3 million.

-- Offshore aviation business. The acquisition of Tex-Air increased operating revenues and operating expenses by $5.1 million and $4.5 million, respectively.

-- Inland river business. Operating income earned by the Company's inland river business segment ("SCF Marine") declined $0.7 million due primarily to seasonality. SCF Marine took delivery of thirty-one newly constructed barges during the quarter.

-- Environmental service business. The Company's environmental service segment incurred an operating loss of $0.4 million in the first quarter as compared to earning operating income of $0.2 million in the fourth quarter. The decline was due to reduced spill response and related activities.

-- Debt extinguishment expenses. The write-off of unamortized deferred financing costs and repayment premium associated with the redemption of the Company's 5 3/8% Notes totaled $1.1 million.

-- Increased income from equipment sales. The sale of eight vessels contributed to an income increase of $2.1 million.

-- Improved results from derivative transactions. The mark-to-market accounting of certain costless collar transactions and other derivative activities increased income by $4.2 million.

-- Increased gains from the sale of marketable securities. Gains from the sale of marketable securities, reported in "Other, net," increased $1.7 million.

Overall operating revenues decreased $2,848,000, or 2.9%, from the fourth quarter. Reduced vessel utilization and rates per day worked and the effect of the Tex-Air acquisition, as previously described, were the most significant factors impacting operating revenues. Demand for vessels in the U.S. Gulf of Mexico further declined during the first quarter of 2003 due to low levels of exploration activities. All U.S. vessel classes worked fewer days, and a large anchor handling towing supply vessel experienced downtime due to major repairs. Rates per day worked were lower in the U.S. for anchor handling towing supply and supply and towing supply vessels. Utilization and rates per day worked for North Sea vessels also declined between quarters. Two large North Sea anchor handling towing supply vessels were sold in the first quarter.

Overall fleet utilization declined from 76.8% in the fourth quarter to 76.2% in the current period. An overall improvement in anchor handling towing supply, crew, and mini-supply vessel classes was offset by a decline in supply and towing supply, standby safety, and utility vessel classes. At March 31, 2003, the Company had 35 vessels out of service: 17 utility, 9 crew, 5 supply, and one each of the anchor handling towing supply, standby safety, mini-supply, and geophysical classes.

The Company's offshore marine fleet declined from 301 vessels at the end of the prior quarter to 288 at March 31, 2003. Eight vessels were sold, one of which was acquired by a joint venture, and the Company took delivery of a new crew vessel. One vessel chartered-in by the Company was redelivered, and joint ventures sold or redelivered 3 vessels. At the beginning of the quarter, the Company retired 3 additional utility vessels from service.

The Company's inland river barge fleet increased by 31 units in the current quarter, but operating revenues decreased $155,000 to $4,840,000, or 3.1%, from the fourth quarter due to lower seasonal freight rates. Operating income declined $696,000 to $884,000, or 44.1% from the prior quarter due to the reduction in revenue and higher administrative and general and depreciation expense.

Overall operating income declined $2,698,000, or 72.1%, from the fourth quarter due primarily to those factors as detailed above.

Net interest expense remained constant between quarters as lower interest income was offset by lower interest expense. In the first quarter, the Company retired $58,633,000 of debt; and following quarter end, additional debt was repaid, totaling (pound)7,500,000, or $11,712,000.

In order to partially hedge the fluctuation in market value for part of the Company's common stock position in ENSCO International Incorporated ("ENSCO") that resulted from the merger of Chiles Offshore Inc. and ENSCO, the Company entered into various transactions (commonly known as "costless collars") during 2002 with a major financial institution on 1,000,000 shares of ENSCO common stock. The effect of these transactions is that the Company will be guaranteed a minimum and maximum value per share of ENSCO, at expiration. The Company establishes the fair value of the costless collar at the end of each reporting period, and the change in value is reported as derivative income or loss. The change in the value of these costless collars increased derivative income between quarters by $5,334,000.

Equity interest in the earnings of 50% or less owned companies increased $249,000 between quarters. The Company's interest in the net losses of Globe Wireless, L.L.C., a marine telecommunications investment, totaled $353,000, or $0.02 per diluted share.

During the first quarter of 2003, the Company acquired a total of 403,990 shares of its common stock for treasury at an aggregate cost of $14,310,000. At March 31, 2003, cash and cash equivalents, marketable securities and construction reserve funds totaled $498,000,000. Long-term debt was $343,000,000.

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 include environmental services, inland river operations and helicopter transportation services to the oil and gas industry mainly in the U.S. Gulf of Mexico.

This release includes "forward-looking statements" as described in the Private Securities Litigation Reform Act of 1995. Statements herein that describe the Company'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: general economic and business conditions, the cyclical nature of our business, adequacy of insurance coverage, currency exchange fluctuations, changes in foreign political, military and economic conditions, the ongoing need to replace aging vessels, 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, regulatory initiatives, customer preferences, marine-related risks, effects of adverse weather conditions and seasonality on the Company's offshore aviation business, helicopter related risks, effects of adverse weather and river conditions and seasonality on inland river operations, the level of grain export volume, variability in freight rates for inland river barges 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 included in this release speak only as of the date of this release and SEACOR disclaims 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.seacorsmit.com. SEACOR SMIT Inc. and Subsidiaries Condensed Consolidated Statements of Operations (in thousands, except share data, unaudited)

 Three Months Ended
 March 31,
 ------------------------
 2003 2002
 ------------ -----------
Operating Revenues $ 96,860 $ 103,643
 ------------ -----------
Costs and Expenses:
 Operating expenses 67,100 57,156
 Administrative and general 14,079 12,360
 Depreciation and amortization 14,636 13,876
 ------------ -----------
 95,815 83,392
 ------------ -----------
Operating Income 1,045 20,251
 ------------ -----------
Other Income (Expense):
 Interest on debt (5,506) (4,001)
 Interest income 2,556 1,867
 Debt extinguishment (1,125) -
 Income from equipment sales or
 retirements, net 5,147 2,299
 Derivative income (loss), net 1,749 (772)
 Other, net 2,729 (4,325)
 ------------ -----------
 5,550 (4,932)
 ------------ -----------
Income Before Income Taxes, Minority Interest
 and Equity in Earnings
 of 50% or Less Owned Companies 6,595 15,319
Income Tax Expense 2,399 5,243
 ------------ -----------
Income Before Minority Interest and Equity in
 Earnings of 50% or Less
 Owned Companies 4,196 10,076
Minority Interest in Net Income of
 Subsidiaries (98) (93)
Equity in Earnings of 50% or Less Owned
 Companies 246 1,423
 ------------ -----------
Net Income $ 4,344 $ 11,406
 ============ ===========

Basic Earnings Per Common Share $ 0.22 $ 0.57
 ============ ===========

Diluted Earnings Per Common Share $ 0.22 $ 0.55
 ============ ===========

Weighted Average Common Shares:
 Basic 19,775,194 20,039,130
 Diluted 20,362,120 21,350,345

Offshore Marine Fleet Operating Statistics

 Three Months Ended
 March 31,
 -----------------------------
 2003 2002
 -----------------------------
Rates per Day Worked - Worldwide ($):
 Supply and Towing Supply 7,712 7,986
 Anchor Handling Towing Supply 11,963 13,108
 Crew 3,158 3,293
 Standby Safety 6,537 5,404
 Utility 1,767 1,753
 Mini-Supply 3,102 2,737
 Geophysical, Freight and Other(1) - -
Overall Utilization - Worldwide (%):
 Supply and Towing Supply 79.9 88.8
 Anchor Handling Towing Supply 82.6 87.2
 Crew 78.9 85.4
 Standby Safety 81.6 88.0
 Utility(2) 55.1 59.6
 Mini-Supply 86.8 85.4
 Geophysical, Freight and Other(1) - -
 Overall Offshore Marine Fleet 76.2 80.6
Fleet Composition at Period End:
 Supply and Towing Supply 69 77
 Anchor Handling Towing Supply 26 34
 Crew 92 95
 Standby Safety 26 31
 Utility(2) 41 49
 Mini-Supply 32 26
 Geophysical, Freight and Other 2 3
 -----------------------------
 Total Offshore Marine Fleet 288 315
 =============================

__________________________

(1) Vessels in this class were out of service during all reported periods.

(2) Statistics exclude vessels retired from service in the applicable periods - 16 utility vessels at March 31, 2003. Other Business Segments

 Three Months Ended
 March 31,
 -----------------------
 2003 2002
 -----------------------
Inland River Segment - No. of Barges:
 Owned 326 133
 Joint Ventured 11 11
 Managed 225 202
 -----------------------
 Total Barge Fleet 562 346
 =======================
Offshore Aviation Segment: - No. of
 Helicopters:
 Single engine 31 n.a.
 Twin engine 4 n.a.
 -----------------------
 Total Helicopter Fleet 35 n.a.
 =======================
 Total Flight Hours 5,061 n.a.
 =======================

SEACOR SMIT Inc. and Subsidiaries Supplementary Financial and Operational Data (in thousands, except share and operational data, unaudited)

 Quarter Ended
 -------------------------------------
 Mar. 31, Dec. 31, Sep. 30,
Income Statement: 2003 2002 2002 (1)
 ----------- ------------- -----------
Operating Revenues $ 96,860 $ 99,708 $ 102,137
 ----------- ------------- -----------
Cost and Expenses:
 Operating Expenses 67,100 67,306 64,297
 Administrative and General 14,079 14,668 13,434
 Depreciation and Amortization 14,636 13,991 14,381
 ----------- ------------- -----------
 95,815 95,965 92,112
 ----------- ------------- -----------
Operating Income 1,045 3,743 10,025
Net Interest Expense (2,950) (2,943) (1,460)
Debt Extinguishment (1,125) - (2,339)
Income from Equipment Sales, net 5,147 3,077 2,321
Gain from Chiles Merger - - 19,719
Derivative Income (Loss), net 1,749 (2,424) (3,251)
Other, net 2,729 1,486 5,584
 ----------- ------------- -----------
Income Before Income Taxes,
 Minority Interest
 and Equity Earnings 6,595 2,939 30,599
Income Tax Expense 2,399 1,266 10,368
 ----------- ------------- -----------
Income Before Minority
 Interest and
 Equity Earnings 4,196 1,673 20,231
Minority Interest (98) (32) (6)
Equity Earnings 246 (3) 1,070
 ----------- ------------- -----------
Net Income $ 4,344 $ 1,638 $ 21,295
 =========== ============= ===========
Weighted Average Common Shares:
 Basic 19,775,194 19,823,095(2) 20,051,743
 Diluted 20,362,120 20,032,229(2) 21,186,390
Diluted Earnings Per Common
 Share $ 0.22 $ 0.08 $ 1.02
Balance Sheet:
 Cash, Marketable Securities and
 Construction Reserve Funds $ 498,076 $ 525,931 $ 536,950
Total Assets 1,398,641 1,487,107 1,467,396
Long-term Debt 343,058 402,118 401,347
Stockholders' Equity 789,971 804,951 804,227
Rates Per Day Worked - Worldwide($):
 Supply and Towing Supply 7,712 7,834 8,153
 Anchor Handling Towing Supply 11,963 14,109 13,144
 Crew 3,158 3,148 3,200
 Standby Safety 6,537 6,288 6,268
 Utility 1,767 1,762 1,761
 Mini-Supply 3,102 2,983 2,918
 Geophysical, Freight 
 and Other (3) - - -
Overall Utilization - Worldwide
 (%):(4)
 Supply and Towing Supply 79.9 85.7 88.9
 Anchor Handling Towing Supply 82.6 73.1 72.9
 Crew 78.9 78.3 76.3
 Standby Safety 81.6 88.5 88.2
 Utility 55.1 58.0 62.4
 Mini-Supply 86.8 86.2 90.0
Geophysical, Freight 
 and Other (3) - - -
 Overall Offshore Marine Fleet 76.2 76.8 77.7
Fleet Composition at Period
 End:(4)
 Supply and Towing Supply 69 71 69
 Anchor Handling Towing Supply 26 28 30
 Crew 92 96 95
 Standby Safety 26 26 28
 Utility 41 45 48
 Mini-Supply 32 33 28
 Geophysical, Freight and Other 2 2 2
 ----------- ------------- -----------
 Total Offshore Marine Fleet 288 301 300
 =========== ============= ===========


 Quarter Ended
 ------------------------
 Jun. 30, Mar. 31,
Income Statement: 2002 2002
 ----------- -----------
Operating Revenues $ 97,670 $ 103,643
 ----------- -----------
Cost and Expenses:
 Operating Expenses 61,133 57,156
 Administrative and General 12,803 12,360
 Depreciation and Amortization 13,996 13,876
 ----------- -----------
 87,932 83,392
 ----------- -----------
Operating Income 9,738 20,251
Net Interest Expense (1,694) (2,134)
Debt Extinguishment - -
Income from Equipment Sales, net 938 2,299
Gain from Chiles Merger - -
Derivative Income (Loss), net 1,404 (772)
Other, net 6,898 (4,325)
 ----------- -----------
Income Before Income Taxes,
 Minority Interest
 and Equity Earnings 17,284 15,319
Income Tax Expense 6,156 5,243
 ----------- -----------
Income Before Minority
 Interest and
 Equity Earnings 11,128 10,076
Minority Interest (95) (93)
Equity Earnings 1,215 1,423
 ----------- -----------
Net Income $ 12,248 $ 11,406
 =========== ===========
Weighted Average Common Shares:
 Basic 20,078,231 20,039,130
 Diluted 21,393,472 21,350,345
Diluted Earnings Per Common Share $ 0.59 $ 0.55
Balance Sheet:
 Cash, Marketable Securities and
 Construction Reserve Funds $ 260,321 $ 264,305
 Total Assets 1,293,455 1,283,952
 Long-term Debt 257,383 256,572
 Stockholders' Equity 784,127 765,979
Rates Per Day Worked - Worldwide ($):
 Supply and Towing Supply 7,964 7,986
 Anchor Handling Towing Supply 12,103 13,108
 Crew 3,224 3,293
 Standby Safety 5,726 5,404
 Utility 1,744 1,753
 Mini-Supply 2,749 2,737
 Geophysical, Freight and Other (3) - -
Overall Utilization - Worldwide (%):(4)
 Supply and Towing Supply 89.0 88.8
 Anchor Handling Towing Supply 79.1 87.2
 Crew 81.8 85.4
 Standby Safety 84.8 88.0
 Utility 62.3 59.6
 Mini-Supply 85.9 85.4
 Geophysical, Freight and Other (3) - -
 Overall Offshore Marine Fleet 79.1 80.6
Fleet Composition at Period End:(4)
 Supply and Towing Supply 74 77
 Anchor Handling Towing Supply 32 34
 Crew 95 95
 Standby Safety 28 31
 Utility 48 49
 Mini-Supply 26 26
 Geophysical, Freight and Other 3 3
 ----------- -----------
 Total Offshore Marine Fleet 306 315
 =========== ===========

____________________

(1) A previously reported extraordinary loss resulting from the extinguishment of debt has been reclassified to operating results pursuant to Statement of Financial Accounting Standards No. 145.

(2) The assumed conversion of the Company's convertible notes into shares of common stock has been excluded from the computation of diluted earnings per share in the three month period ended December 31, 2002 as the effect was antidilutive. In the same period, such shares were also excluded from the calculation of diluted weighted average common shares outstanding.

(3) Vessels in this class were out of service during all reported periods.

(4) Statistics exclude vessels retired from service in the applicable periods - 16 utility vessels at March 31, 2003.