SEACOR SMIT Announces Third Quarter Results

HOUSTON--(BUSINESS WIRE)--Nov. 4, 2003--SEACOR SMIT Inc. (NYSE:CKH) announced net earnings for the third quarter ended September 30, 2003 of $2.9 million, or $0.15 per diluted share, on operating revenues of $103.2 million. For the nine months ended September 30, 2003, net earnings were $13.7 million, or $0.71 per diluted share, on operating revenues of $305.3 million.

For the third quarter ended September 30, 2002, net earnings were $21.3 million, or $1.02 per diluted share, on operating revenues of $102.1 million. For the nine months ended September 30, 2002, net earnings were $44.9 million, or $2.16 per diluted share, on operating revenues of $303.5 million.

For the quarter ended June 30, 2003, net earnings were $6.4 million, or $0.33 per diluted share, on operating revenues of $105.2 million.

Financial results for the third quarter ended September 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.

-- Decreased operating revenues. Operating revenues decreased $1.9 million. Reduced fees and services provided on a major environmental project that began in the first quarter and lower demand for helicopter services decreased revenues. These declines were partially offset by higher revenues earned by barges and offshore marine vessels added to the Company's fleet.

-- Decreased operating income. Operating income decreased $4.8 million. In addition to those factors affecting revenues, operating income declined in part due to higher North Sea crew wage costs, unscheduled repair costs mostly reflecting insurance deductibles, additional expenses associated with planned overhauls and "start-up" costs associated with the charter-in of 166 additional barges.

-- Decreased debt extinguishment expense. Prior quarter results included a $1.0 million charge against income for the write-off of unamortized discount upon debt repayment.

-- Increased income from equipment sales. The sale of additional vessels in the third quarter resulted primarily in the $1.9 million increase in equipment sale income.

-- Decreased results from derivative transactions. The mark-to-market accounting of derivative transactions decreased other income by $3.1 million.

-- Other, net. Other income declined $1.1 million resulting primarily from foreign currency accounting losses, partially offset by higher security sale gains and the non-recurrence of an investment impairment charge of the prior quarter.

The Company's offshore marine fleet declined from 283 vessels at the end of the prior quarter to 279 at September 30, 2003. During the quarter, the Company sold 11 vessels, 4 of which were leased-back, and took delivery of 2 newly constructed crew vessels. Additional fleet change information is described in the attached supplementary operational data schedule.

The Company's inland river hopper barge fleet grew from 559 units at the end of the prior quarter to 735 units at September 30, 2003 primarily due to the charter-in of 166 barges in the current quarter.

Derivative results in the second and third quarters primarily related to swap agreements with respect to $41.0 million notional amount of the Company's 7.2% Senior Notes due 2009. The Company recognizes unrealized income or loss based on the fair value of such swap agreements.

Equity in earnings of 50% or less owned companies increased $0.6 million between quarters. Offshore marine and marine telecommunication joint venture earnings were higher and a newly formed offshore marine joint venture commenced operations. Third quarter results included a $1.0 million charge against equity earnings for U.S. income taxes payable on dividends received from a foreign joint venture.

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
 September 30,
 -----------------------
 2003 2002
 ----------- -----------
Operating Revenues $ 103,234 $ 102,137
 ----------- -----------
Costs and Expenses:
Operating expenses 72,264 64,297
Administrative and general 13,676 13,434
Depreciation and amortization 13,411 14,381
 ----------- -----------
 99,351 92,112
 ----------- -----------
Operating Income 3,883 10,025
 ----------- -----------
Other Income (Expense):
Interest on debt (4,603) (3,503)
Interest income 1,540 2,043
Debt extinguishments - (2,338)
Income from equipment sales or retirements, 
 net 2,349 2,321
Gain from Chiles Merger - 19,719
Gain (loss) from derivative transactions, net (443) (3,251)
Gain (loss) from foreign currency 
 transactions, net (1,714) 2,203
Gain (loss) from sale of marketable 
 securities, net 2,411 3,377
Other, net (15) 4
 ----------- -----------
 (475) 20,575
 ----------- -----------
Income Before Taxes, Minority Interest and
 Equity Earnings 3,408 30,600
Income Tax Expense 1,334 10,369
 ----------- -----------
Income Before Minority Interest and Equity
 Earnings 2,074 20,231
Minority Interest in Income of Subsidiaries (112) (6)
Equity in Earnings of 50% or Less Owned
 Companies 935 1,070
 ----------- -----------
Net Income $ 2,897 $ 21,295
 =========== ===========

Basic Earnings Per Common Share $ 0.16 $ 1.06
 =========== ===========

Diluted Earnings Per Common Share $ 0.15 $ 1.02
 =========== ===========

Weighted Average Common Shares:
Basic 18,629,664 20,051,743
Diluted 18,785,256 21,186,390


 Nine Months Ended
 September 30,
 -----------------------
 2003 2002
 ----------- -----------
Operating Revenues $ 305,253 $ 303,450
 ----------- -----------
Costs and Expenses:
 Operating expenses 208,786 182,586
 Administrative and general 41,146 38,597
 Depreciation and amortization 41,755 42,253
 ----------- -----------
 291,687 263,436
 ----------- -----------
Operating Income 13,566 40,014
 ----------- -----------
Other Income (Expense):
 Interest on debt (14,528) (11,300)
 Interest income 5,966 6,012
 Debt extinguishments (2,091) (2,338)
 Income from equipment sales or retirements,
 net 7,910 5,558
 Gain from Chiles Merger - 19,719
 Gain (loss) from derivative transactions, net 3,930 (2,619)
 Gain (loss) from foreign currency
 transactions, net 115 5,454
 Gain (loss) from sale of marketable
 securities, net 5,852 2,699
 Other, net (759) 4
 ----------- -----------
 6,395 23,189
 ----------- -----------
Income Before Taxes, Minority Interest and
 Equity Earnings 19,961 63,203
Income Tax Expense 7,329 21,768
 ----------- -----------
Income Before Minority Interest and Equity
 Earnings 12,632 41,435
Minority Interest in Income of Subsidiaries (451) (194)
Equity in Earnings of 50% or Less Owned
 Companies 1,503 3,708
 ----------- -----------
Net Income $ 13,684 $ 44,949
 =========== ===========

Basic Earnings Per Common Share $ 0.71 $ 2.24
 =========== ===========

Diluted Earnings Per Common Share $ 0.71 $ 2.16
 =========== ===========

Weighted Average Common Shares:
 Basic 19,182,564 20,056,435
 Diluted 19,479,462 21,325,804

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

 Sep. 30, Jun. 30, Mar. 31,
Statements of Operations: 2003 2003 2003
 ----------- ----------- -----------
 Operating Revenues $ 103,234 $ 105,159 $ 96,860
 ----------- ----------- -----------
 Cost and Expenses:
 Operating expenses 72,264 69,422 67,100
 Administrative and general 13,676 13,391 14,079
 Depreciation and amortization 13,411 13,708 14,636
 ----------- ----------- -----------
 99,351 96,521 95,815
 ----------- ----------- -----------
 Operating Income 3,883 8,638 1,045
 Net Interest Expense (3,063) (2,549) (2,950)
 Debt Extinguishment - (966) (1,125)
 Income from Equipment Sales, net 2,349 414 5,147
 Gain from Chiles Merger - - -
 Derivative Transactions, net (443) 2,624 1,749
 Other, net 682 1,797 2,729
 ----------- ----------- -----------
 Income Before Taxes, Minority
 Interest and Equity Earnings 3,408 9,958 6,595
 Income Tax Expense 1,334 3,596 2,399
 ----------- ----------- -----------
 Income Before Minority Interest
 and
 Equity Earnings 2,074 6,362 4,196
 Minority Interest (112) (241) (98)
 Equity Earnings 935 322 246
 ----------- ----------- -----------
 Net Income $ 2,897 $ 6,443 $ 4,344
 =========== =========== ===========

Weighted Average Common Shares:
 Basic 18,629,664 19,155,421 19,775,194
 Diluted 18,785,256 19,315,817 20,362,120

Diluted Earnings Per Common Share $ 0.15 $ 0.33 $ 0.22

Balance Sheet:
 Cash, Marketable Securities and
 Construction Reserve Funds $ 428,372 $ 431,796 $ 498,075
 Total Assets 1,370,630 1,379,700 1,401,710
 Total Long-term Debt 332,213 332,187 343,058
 Stockholders' Equity 768,530 772,563 789,971

Marine Fleet Rates Per Day Worked
 ($)(2):
 Anchor Handling Towing Supply 12,650 12,258 11,963
 Crew 3,257 3,153 3,158
 Geophysical, Freight and Other(3) - - -
 Mini-Supply 2,998 3,027 3,102
 Standby Safety 6,733 6,559 6,537
 Supply and Towing Supply 7,470 7,648 7,712
 Utility 1,774 1,792 1,767
Marine Fleet Utilization (%)(2) :
 Anchor Handling Towing Supply 76.9 76.7 82.6
 Crew 75.9 79.9 78.9
 Geophysical, Freight and Other(3) - - -
 Mini-Supply 91.6 89.4 86.8
 Standby Safety 89.9 89.5 81.6
 Supply and Towing Supply 82.8 81.6 79.9
 Utility 58.7 56.7 55.1
 Overall Offshore Marine Fleet 77.5 77.8 76.2
Marine Fleet at Period End(2) :
Anchor Handling Towing Supply 26 25 26
Crew 90 92 92
Geophysical, Freight and Other 2 2 2
Mini-Supply 32 32 32
Standby Safety 26 26 26
Supply and Towing Supply 67 66 69
Utility 36 40 41
 ----------- ----------- -----------
 Total Offshore Marine Fleet 279 283 288
 =========== =========== ===========

Inland Barge Fleet at Period End 735 559 562

Helicopter Fleet at Period End 36 36 36

Helicopter Flight Hours 5,131 5,889 5,061


 Dec. 31, Sep. 30,
Statements of Operations: 2002 2002
 ------------- -----------
 Operating Revenues $ 99,708 $ 102,137
 ------------- -----------
 Cost and Expenses:
 Operating expenses 67,306 64,297
 Administrative and general 14,668 13,434
 Depreciation and amortization 13,991 14,381
 ------------- -----------
 95,965 92,112
 ------------- -----------
 Operating Income 3,743 10,025
 Net Interest Expense (2,943) (1,460)
 Debt Extinguishment - (2,338)
 Income from Equipment Sales, net 3,077 2,321
 Gain from Chiles Merger - 19,719
 Derivative Transactions, net (2,424) (3,251)
 Other, net 1,486 5,584
 ------------- -----------
 Income Before Taxes, Minority
 Interest and Equity Earnings 2,939 30,600
 Income Tax Expense 1,266 10,369
 ------------- -----------
 Income Before Minority Interest and
 Equity Earnings 1,673 20,231
 Minority Interest (32) (6)
 Equity Earnings (3) 1,070
 ------------- -----------
 Net Income $ 1,638 $ 21,295
 ============= ===========

Weighted Average Common Shares:
 Basic 19,823,095 20,051,743
 Diluted 20,032,229(1) 21,186,390

Diluted Earnings Per Common Share $ 0.08(1)$ 1.02

Balance Sheet:
 Cash, Marketable Securities and
 Construction Reserve Funds $ 525,931 $ 536,950
 Total Assets 1,487,107 1,467,396
 Total Long-term Debt 402,118 401,347
 Stockholders' Equity 804,951 804,227

Marine Fleet Rates Per Day Worked ($)(2):
 Anchor Handling Towing Supply 14,109 13,144
 Crew 3,148 3,200
 Geophysical, Freight and Other(3) - -
 Mini-Supply 2,983 2,918
 Standby Safety 6,288 6,268
 Supply and Towing Supply 7,834 8,153
 Utility 1,762 1,761
Marine Fleet Utilization (%)(2) :
 Anchor Handling Towing Supply 73.1 72.9
 Crew 78.3 76.3
 Geophysical, Freight and Other(3) - -
 Mini-Supply 86.2 90.0
 Standby Safety 88.5 88.2
 Supply and Towing Supply 85.7 88.9
 Utility 58.0 62.4
 Overall Offshore Marine Fleet 76.8 77.7
Marine Fleet at Period End(2) :
Anchor Handling Towing Supply 28 30
Crew 96 95
Geophysical, Freight and Other 2 2
Mini-Supply 33 28
Standby Safety 26 28
Supply and Towing Supply 71 69
Utility 45 48
 ------------- -----------
 Total Offshore Marine Fleet 301 300
 ============= ===========

Inland Barge Fleet at Period End 535 482

Helicopter Fleet at Period End 36 n.a.

Helicopter Flight Hours n.a. n.a.

(1) 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.

(2) Statistics exclude vessels retired from service in the applicable
 periods - 12 utility vessels at September 30, 2003.

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

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

 
 As 
 of 
 June
 As of September 30, 2003 30,
 Joint Pooled/ 2003
 Owned Leased- Subtotal Ventured Managed Total Total
 in
 ------------------------------------------- -----

Offshore Marine
 Fleet
 Anchor Handling Towing
 Supply:
 Domestic 3 2 5 - - 5 5
 Foreign 15 - 15 6 - 21 20
 ----- ----- -------- -------- ------- ----- -----
 18 2 20 6 - 26 25
 ----- ----- -------- -------- ------- ----- -----
 Crew:
 Domestic 33 23 56 1 - 57 60
 Foreign 21 - 21 12 - 33 32
 ----- ----- -------- -------- ------- ----- -----
 54 23 77 13 - 90 92
 ----- ----- -------- -------- ------- ----- -----
 Geophysical, Freight
 and Other:
 Domestic 1 - 1 - - 1 1
 Foreign - - - 1 - 1 1
 ----- ----- -------- -------- ------- ----- -----
 1 - 1 1 - 2 2
 ----- ----- -------- -------- ------- ----- -----
 Mini-Supply:
 Domestic 25 3 28 - - 28 28
 Foreign 2 - 2 2 - 4 4
 ----- ----- -------- -------- ------- ----- -----
 27 3 30 2 - 32 32
 ----- ----- -------- -------- ------- ----- -----
 Standby Safety:
 Domestic - - - - - - -
 Foreign 18 - 18 3 5 26 26
 ----- ----- -------- -------- ------- ----- -----
 18 - 18 3 5 26 26
 ----- ----- -------- -------- ------- ----- -----
 Supply and Towing
 Supply:
 Domestic 3 7 10 2 1 13 13
 Foreign 26 3 29 25 - 54 53
 ----- ----- -------- -------- ------- ----- -----
 29 10 39 27 1 67 66
 ----- ----- -------- -------- ------- ----- -----
 Utility:
 Domestic 34 - 34 - - 34 37
 Foreign 1 - 1 1 - 2 3
 ----- ----- -------- -------- ------- ----- -----
 35 - 35 1 - 36 40
 ----- ----- -------- -------- ------- ----- -----
 Worldwide Fleet:
 Domestic 99 35 134 3 1 138 144
 Foreign 83 3 86 50 5 141 139
 ----- ----- -------- -------- ------- ----- -----
 182 38 220 53 6 279 283
 ===== ===== ======== ======== ======= ===== =====

Inland Barge Fleet
 Domestic: 332 166 498 6 231 735 559
 ===== ===== ======== ======== ======= ===== =====

Helicopter Fleet
 Domestic 19 16 35 - 1 36 36
 ===== ===== ======== ======== ======= ===== =====