SEACOR SMIT Announces Second Quarter Results

HOUSTON--(BUSINESS WIRE)--July 24, 2003--SEACOR SMIT Inc. (NYSE:CKH) announced net earnings for the second quarter ended June 30, 2003 of $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.

In the second quarter ended June 30, 2002, SEACOR net earnings were $12.2 million, or $0.59 per diluted share, on operating revenues of $97.7 million. For the six months ended June 30, 2002, net earnings were $23.7 million, or $1.15 per diluted share, on operating revenues of $201.3 million.

Net earnings in the quarter ended March 31, 2003 were $4.3 million, or $0.22 per diluted share, on operating revenues of $96.9 million.

The financial results for the second quarter ended June 30, 2003 as compared to the immediately preceding quarter were impacted, on a pre-tax basis, by a variety of factors highlighted below and described in greater detail in subsequent paragraphs and tables in this release:

-- Improved environmental service segment results. Operating revenues and profits increased $9.4 million and $5.5 million, respectively, due primarily to international oil spill response and remediation activities.

-- Improved marine service segment results. Operating profits increased $2.0 million despite a $1.6 million decline in operating revenues. Lower operating expenses from the sale of vessels and termination of certain charters and lower administrative expenses accounted for the improved results.

-- Decreased income from equipment sales. The Company sold fewer offshore vessels in the quarter, resulting in a $4.7 million decline in income from vessel sales.

-- Improved results from derivative transactions. The mark-to-market accounting of derivative transactions increased income by $0.9 million.

-- Other, net. Other income declined between quarters due to lower realized profits from the sale of securities and a decline in the value of certain investments.

The Company's offshore marine fleet declined from 288 vessels at the end of the prior quarter to 283 at June 30, 2003. During the quarter, the Company sold three vessels, one of which was acquired by a joint venture, and took delivery of one each newly constructed crew vessel, supply vessel and towing supply vessel. Four vessels chartered-in and one managed-in by the Company and an additional vessel chartered-in by a joint venture were redelivered to owners.

Operating revenues and profits of the inland river and offshore aviation business segments and the Company' equity interest in the earnings of 50% or less owned companies were generally constant between the first and second quarters of 2003.

In the second quarter of 2003, the Company repaid $11.9 million of debt, which resulted in the recognition of a pretax charge against income for the write-off of related unamortized discount of $1.0 million. In the second quarter of 2003, the Company acquired a total of 820,650 shares of its common stock for treasury at an aggregate cost of $31.0 million. At June 30, 2003, cash and cash equivalents, marketable securities and construction reserve funds totaled $431.8 million, and outstanding long-term debt was $332.2 million.

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.

 SEACOR SMIT Inc. and Subsidiaries
 Condensed Consolidated Statements of Operations
 (in thousands, except share data, unaudited)


 Three Months Ended Six Months Ended
 June 30, June 30,
 ------------------------- -------------------------
 2003 2002 2003 2002
 ------------ ------------ ------------ ------------
Operating Revenues $ 105,159 $ 97,670 $ 202,019 $ 201,313
 ------------ ------------ ------------ ------------
Costs and
 Expenses:
 Operating
 expenses 69,422 61,133 136,522 118,289
 Administrative
 and general 13,391 12,803 27,470 25,163
 Depreciation and
 amortization 13,708 13,996 28,344 27,872
 ------------ ------------ ------------ ------------
 96,521 87,932 192,336 171,324
 ------------ ------------ ------------ ------------
Operating Income 8,638 9,738 9,683 29,989
 ------------ ------------ ------------ ------------
Other Income
 (Expense):
 Interest on debt (4,419) (3,796) (9,925) (7,797)
 Interest income 1,870 2,102 4,426 3,969
 Debt
 extinguishment (966) - (2,091) -
 Income from
 equipment sales
 or retirements,
 net 414 938 5,561 3,237
 Derivative
 income, net 2,624 1,404 4,373 632
 Other, net 1,797 6,898 4,526 2,573
 ------------ ------------ ------------ ------------
 1,320 7,546 6,870 2,614
 ------------ ------------ ------------ ------------
Income Before
 Income Taxes,
 Minority Interest
 and Equity in
 Earnings of 50%
 or Less Owned
 Companies 9,958 17,284 16,553 32,603
Income Tax Expense 3,596 6,156 5,995 11,399
 ------------ ------------ ------------ ------------
Income Before
 Minority Interest
 and Equity in
 Earnings of
50% or Less Owned
 Companies 6,362 11,128 10,558 21,204
Minority Interest
 in Income of
 Subsidiaries (241) (95) (339) (188)
Equity in Earnings
 of 50% or Less
 Owned Companies 322 1,215 568 2,638
 ------------ ------------ ------------ ------------
Net Income $ 6,443 $ 12,248 $ 10,787 $ 23,654
 ============ ============ ============ ============

Basic Earnings Per
 Common Share $ 0.34 $ 0.61 $ 0.55 $ 1.18
 ============ ============ ============ ============

Diluted Earnings
 Per Common Share $ 0.33 $ 0.59 $ 0.55 $ 1.15
 ============ ============ ============ ============

Weighted Average
 Common Shares:
 Basic 19,155,421 20,078,231 19,463,596 20,058,824
 Diluted 19,315,817 21,393,472 19,834,307 21,373,534

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


 Jun. 30, Mar. 31, Dec. 31,
Statements of Operations: 2003 2003 2002
 ------------ ------------ ------------
 Operating Revenues $ 105,159 $ 96,860 $ 99,708
 ------------ ------------ ------------
 Cost and Expenses:
 Operating expenses 69,422 67,100 67,306
 Administrative and
 general 13,391 14,079 14,668
 Depreciation and
 amortization 13,708 14,636 13,991
 ------------ ------------ ------------
 96,521 95,815 95,965
 ------------ ------------ ------------
 Operating Income 8,638 1,045 3,743
 Net Interest Expense (2,549) (2,950) (2,943)
 Debt Extinguishment (966) (1,125) -
 Income from Equipment
 Sales, net 414 5,147 3,077
 Gain from Chiles Merger - - -
 Derivative Income (Loss),
 net 2,624 1,749 (2,424)
 Other, net 1,797 2,729 1,486
 ------------ ------------ ------------
 Income Before Income Taxes,
 Minority Interest and
 Equity Earnings 9,958 6,595 2,939
 Income Tax Expense 3,596 2,399 1,266
 ------------ ------------ ------------
 Income Before Minority
 Interest and
 Equity Earnings 6,362 4,196 1,673
 Minority Interest (241) (98) (32)
 Equity Earnings 322 246 (3)
 ------------ ------------ ------------
 Net Income $ 6,443 $ 4,344 $ 1,638
 ============ ============ ============

Weighted Average Common
 Shares:
 Basic 19,155,421 19,775,194 19,823,095
 Diluted 19,315,817 20,362,120 20,032,229 (2)

Diluted Earnings Per Common
 Share $ 0.33 $ 0.22 $ 0.08 (2)

 Balance Sheet:
 Cash, Marketable
 Securities and
 Construction Reserve
 Funds $ 431,796 $ 498,075 $ 525,931
 Total Assets 1,380,007 1,401,710 1,487,107
 Total Long-term Debt 332,187 343,058 402,118
 Stockholders' Equity 772,563 789,971 804,951

Marine Fleet Rates Per Day
 Worked ($) (3):
 Anchor Handling Towing
 Supply 12,258 11,963 14,109
 Crew 3,153 3,158 3,148
 Geophysical, Freight and
 Other (4) - - -
 Mini-Supply 3,027 3,102 2,983
 Standby Safety 6,559 6,537 6,288
 Supply and Towing Supply 7,648 7,712 7,834
 Utility 1,792 1,767 1,762
Marine Fleet
 Utilization (%) (3):
 Anchor Handling Towing
 Supply 76.7 82.6 73.1
 Crew 79.9 78.9 78.3
 Geophysical, Freight and
 Other (4) - - -
 Mini-Supply 89.4 86.8 86.2
 Standby Safety 89.5 81.6 88.5
 Supply and Towing Supply 81.6 79.9 85.7
 Utility 56.7 55.1 58.0
 Overall Offshore Marine
 Fleet 77.8 76.2 76.8
Marine Fleet at Period
 End (3):
Anchor Handling Towing
 Supply 25 26 28
Crew 92 92 96
Geophysical, Freight and
 Other 2 2 2
Mini-Supply 32 32 33
Standby Safety 26 26 26
Supply and Towing Supply 66 69 71
Utility 40 41 45
 ------------ ------------ ------------
 Total Offshore Marine
 Fleet 283 288 301
 ============ ============ ============

Inland Barge Fleet at Period
 End 559 562 535

Helicopter Fleet at Period
 End 36 36 36

Helicopter Flight Hours 5,889 5,061 n.a.



 Sep. 30, Jun. 30,
Statements of Operations: 2002 2002
 ------------ ------------
 Operating Revenues $ 102,137 $ 97,670
 ------------ ------------
 Cost and Expenses:
 Operating expenses 64,297 61,133
 Administrative and general 13,434 12,803
 Depreciation and amortization 14,381 13,996
 ------------ ------------
 92,112 87,932
 ------------ ------------
 Operating Income 10,025 9,738
 Net Interest Expense (1,460) (1,694)
 Debt Extinguishment (2,339)(1) -
 Income from Equipment Sales, net 2,321 938
 Gain from Chiles Merger 19,719 -
 Derivative Income (Loss), net (3,251) 1,404
 Other, net 5,584 6,898
 ------------ ------------
 Income Before Income Taxes, Minority
 Interest and Equity Earnings 30,599 17,284
 Income Tax Expense 10,368 6,156
 ------------ ------------
 Income Before Minority Interest and
 Equity Earnings 20,231 11,128
 Minority Interest (6) (95)
 Equity Earnings 1,070 1,215
 ------------ ------------
 Net Income $ 21,295 $ 12,248
 ============ ============

Weighted Average Common Shares:
 Basic 20,051,743 20,078,231
 Diluted 21,186,390 21,393,472

Diluted Earnings Per Common Share $ 1.02 $ 0.59

 Balance Sheet:
 Cash, Marketable Securities and
 Construction Reserve Funds $ 536,950 $ 260,321
 Total Assets 1,467,396 1,293,455
 Total Long-term Debt 401,347 257,383
 Stockholders' Equity 804,227 784,127

Marine Fleet Rates Per Day
 Worked ($) (3):
 Anchor Handling Towing Supply 13,144 12,103
 Crew 3,200 3,224
 Geophysical, Freight and Other (4) - -
 Mini-Supply 2,918 2,749
 Standby Safety 6,268 5,726
 Supply and Towing Supply 8,153 7,964
 Utility 1,761 1,744
Marine Fleet Utilization (%) (3):
 Anchor Handling Towing Supply 72.9 79.1
 Crew 76.3 81.8
 Geophysical, Freight and Other (4) - -
 Mini-Supply 90.0 85.9
 Standby Safety 88.2 84.8
 Supply and Towing Supply 88.9 89.0
 Utility 62.4 62.3
 Overall Offshore Marine Fleet 77.7 79.1
Marine Fleet at Period End (3):
Anchor Handling Towing Supply 30 32
Crew 95 95
Geophysical, Freight and Other 2 3
Mini-Supply 28 26
Standby Safety 28 28
Supply and Towing Supply 69 74
Utility 48 48
 ------------ ------------
 Total Offshore Marine Fleet 300 306
 ============ ============

Inland Barge Fleet at Period End 482 408

Helicopter Fleet at Period End n.a. n.a.

Helicopter Flight Hours n.a. n.a.

(1) A previously reported extraordinary loss from debt extinguishment
 was reclassified to operating results pursuant to FASB Statement
 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 this same
 period, such shares were also excluded from the calculation of
 diluted weighted average common shares outstanding.

(3) Statistics exclude vessels retired from service in the applicable
 periods - 14 utility vessels at June 30, 2003.

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

 SEACOR SMIT Inc. and Subsidiaries
 Supplementary Operational Data
 (unaudited)

 As
 of
 March
 31,
 As of June 30, 2003 2003
 -------------------------------------------------- -----
 Joint
 Owned Leased-in Subtotal Ventured Managed Total Total
 -------- --------- -------- -------- ------- ----- -----

Offshore
 Marine
 Fleet
 Anchor
 Handling
 Towing
 Supply:
 Domestic 3 2 5 - - 5 5
 Foreign 15 - 15 5 - 20 21
 -------- --------- -------- -------- ------- ----- -----
 18 2 20 5 - 25 26
 -------- --------- -------- -------- ------- ----- -----
 Crew:
 Domestic 40 20 60 - - 60 62
 Foreign 20 - 20 12 - 32 30
 -------- --------- -------- -------- ------- ----- -----
 60 20 80 12 - 92 92
 -------- --------- -------- -------- ------- ----- -----
 Geophysical,
 Freight
 and
 Other:
 Domestic 1 - 1 - - 1 1
 Foreign - - - 1 - 1 1
 -------- --------- -------- -------- ------- ----- -----
 1 - 1 1 - 2 2
 -------- --------- -------- -------- ------- ----- -----
 Mini-
 Supply:
 Domestic 26 2 28 - - 28 29
 Foreign 2 - 2 2 - 4 3
 -------- --------- -------- -------- ------- ----- -----
 28 2 30 2 - 32 32
 -------- --------- -------- -------- ------- ----- -----
 Standby
 Safety:
 Domestic - - - - - - -
 Foreign 20 - 20 1 5 26 26
 -------- --------- -------- -------- ------- ----- -----
 20 - 20 1 5 26 26
 -------- --------- -------- -------- ------- ----- -----
 Supply and
 Towing
 Supply:
 Domestic 6 7 13 - - 13 17
 Foreign 24 4 28 25 - 53 52
 -------- --------- -------- -------- ------- ----- -----
 30 11 41 25 - 66 69
 -------- --------- -------- -------- ------- ----- -----
 Utility:
 Domestic 37 - 37 - - 37 38
 Foreign 1 - 1 2 - 3 3
 -------- --------- -------- -------- ------- ----- -----
 38 - 38 2 - 40 41
 -------- --------- -------- -------- ------- ----- -----
 Worldwide
 Fleet:
 Domestic 113 31 144 - - 144 152
 Foreign 82 4 86 48 5 139 136
 -------- --------- -------- -------- ------- ----- -----
 195 (1) 35 230 48 5 283 288
 ======== ========= ======== ======== ======= ===== =====

Inland Barge
 Fleet
 Domestic 326 (2) - 326 11 (2) 222 559 562
 ======== ========= ======== ======== ======= ===== =====

U.S.
 Helicopter
 Fleet
 Domestic 18 17 35 - 1 36 36
 ======== ========= ======== ======== ======= ===== =====

(1) Two domestic supply, two foreign standby safety, and one crew
 vessel are majority-owned by the Company.

(2) Sixteen owned and five joint ventured barges were sold following
 June 30, 2003.