SOURCE: SEACOR Holdings Inc.

October 25, 2007 16:05 ET

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

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