SOURCE: SEACOR Holdings Inc.

April 26, 2007 19:57 ET

SEACOR Holdings Announces First Quarter Results

FORT LAUDERDALE, FL -- (MARKET WIRE) -- April 26, 2007 -- SEACOR Holdings Inc. (NYSE: CKH) announced net income for the first quarter ended March 31, 2007 of $38.2 million, or $1.40 per diluted share, on operating revenues of $310.8 million. For the quarter ended March 31, 2006, net income was $50.1 million, or $1.80 per diluted share, on operating revenues of $305.9 million.

For the preceding quarter ended December 31, 2006, net income was $58.4 million, or $2.12 per diluted share, on operating revenues of $337.2 million.

Highlights for the Quarter

Offshore Marine Services - Operating income in the first quarter was $56.7 million on operating revenues of $170.9 million compared to operating income of $75.2 million on operating revenues of $174.8 million in the preceding quarter. First quarter results included $8.3 million in gains on asset dispositions compared to $13.8 million in gains in the preceding quarter.

The number of days available for charter in the first quarter decreased by 860 or 4.4% as a result of a net decrease in fleet count and a shorter quarter. Overall utilization fell from 82.3% to 79.2% primarily due to a higher level of downtime for repairs and dockings than in the preceding quarter, predominantly in the U.S. Gulf of Mexico. The resulting decline in operating revenues was partially offset by an improvement in overall average day rates from $10,447 to $11,209 per day.

Operating income was also adversely affected by higher repair and maintenance costs, mainly in the U.S. Gulf of Mexico, increased mobilization costs and higher insurance costs.

Marine Transportation Services - Marine Transportation Services reported an operating loss in the first quarter of $1.6 million on operating revenues of $30.6 million compared to operating income of $2.2 million on operating revenues of $34.4 million in the preceding quarter.

Operating results in the first quarter were significantly affected by three vessels being off-hire for various periods. Two vessels were undergoing conversion to a double-hull configuration, one of which was off-hire for the entire quarter while the other was off-hire beginning in early March. These vessels are expected to return to service in April and September, respectively. The remaining vessel was off-hire while undergoing survey and repairs prior to commencing a multi-year bareboat charter in March.

Inland River Services - Operating income in the first quarter was $13.7 million on operating revenues of $26.7 million compared to operating income of $16.1 million on operating revenues of $37.8 million in the preceding quarter. First quarter results included $3.6 million in gains on asset dispositions compared to $0.1 million in gains in the preceding quarter.

The decrease in operating income was due to lower spot rates for grain and non-grain cargoes and fewer barges in service following the disposition of equipment. In addition, extremely cold conditions resulted in ice delays and closures on the upper river systems for much of February resulting in fewer tons loaded.

Aviation Services - Aviation Services reported an operating loss in the first quarter of $1.2 million on operating revenues of $45.4 million compared to operating income of $3.4 million on operating revenues of $38.9 million in the preceding quarter. First quarter results included $0.2 million in gains on asset dispositions compared to $7.1 million in gains in the preceding quarter.

The increase in operating revenues was primarily due to the addition of a medical flight services business which contributed $7.6 million. Operating revenues from the support of oil and gas activities decreased due to fewer flight hours as a consequence of adverse weather conditions in the U.S. Gulf of Mexico.

Excluding gains on asset dispositions in the current and preceding quarters, operating results improved primarily due to lower repair and maintenance costs.

Environmental Services - Environmental Services reported an operating loss in the first quarter of $0.5 million on operating revenues of $26.5 million compared to operating income of $4.6 million on operating revenues of $40.8 million in the preceding quarter.

The decrease in operating results was primarily due to a reduction in project management and spill response activity. In addition, operating results were impacted by lower revenues from retainer service contracts, consulting activity and equipment sales.

Derivative Transactions - Derivative transactions, primarily consisting of interest rate swaps and foreign currency contracts, resulted in gains of $0.1 million in the first quarter compared to gains of $3.3 million in the preceding quarter.

Marketable Security Transactions - Marketable security transactions resulted in losses of $4.7 million in the first quarter compared to losses of $6.6 million in the preceding quarter.

Equity in Earnings (Losses) of 50% or Less Owned Companies - Equity earnings from joint ventures were $2.4 million in the first quarter compared to losses of $0.2 million in the preceding quarter.

Capital Commitments - The Company's unfunded capital commitments as of March 31, 2007, consisted primarily of marine service vessels, harbor tugs, helicopters, barges and capital improvements to certain of the existing marine transportation fleet and totaled $560.1 million, of which $290.0 million is payable during the remainder of 2007 and the balance payable through 2009. Of these commitments, approximately $159.3 million may be terminated without further liability other than the payment of liquidated damages of $3.0 million in the aggregate. Subsequent to the end of the quarter the Company committed to purchase additional property and equipment for $26.5 million. As of March 31, 2007, the Company held balances of Cash, Cash Equivalents, Restricted Cash, Securities, Construction Reserve Funds and Title XI Reserve Funds totaling $815.9 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.



                       SEACOR HOLDINGS INC.
           CONDENSED CONSOLIDATED STATEMENTS OF INCOME
          (in thousands, except per share data, unaudited)


                                                       Three Months Ended
                                                            March 31,
                                                      --------------------
                                                        2007       2006
                                                      ---------  ---------

Operating Revenues                                    $ 310,763  $ 305,915
                                                      ---------  ---------

Costs and Expenses:
  Operating expenses                                    188,658    169,644
  Administrative and general                             34,400     31,493
  Depreciation and amortization                          38,875     43,260
                                                      ---------  ---------
                                                        261,933    244,397
                                                      ---------  ---------

Gains on Asset Dispositions and Impairments, Net         12,157     20,877
                                                      ---------  ---------

Operating Income                                         60,987     82,395
                                                      ---------  ---------

Other Income (Expense):
  Interest income                                        12,224      7,136
  Interest expense                                      (13,268)   (14,068)
  Derivative transaction gains (losses), net                130     (2,812)
  Foreign currency transaction gains (losses), net         (590)       159
  Marketable security transaction losses, net            (4,688)    (3,585)
  Other, net                                                (43)        28
                                                      ---------  ---------
                                                         (6,235)   (13,142)
                                                      ---------  ---------
Income Before Income Tax Expense, Minority Interest
 in Income of Subsidiaries and Equity In Earnings of
 50% or Less Owned Companies                             54,752     69,253
Income Tax Expense                                       18,842     25,431
                                                      ---------  ---------
Income Before Minority Interest in Income of
 Subsidiaries and Equity in Earnings of 50% or Less
 Owned Companies                                         35,910     43,822
Minority Interest in Income of Subsidiaries                (178)       (83)
Equity in Earnings of 50% or Less Owned Companies         2,420      6,369
                                                      ---------  ---------
Net Income                                            $  38,152  $  50,108
                                                      =========  =========

Basic Earnings Per Common Share                       $    1.57  $    2.02

Diluted Earnings Per Common Share                     $    1.40  $    1.80

Weighted Average Common Shares Outstanding:
  Basic                                                  24,354     24,767
  Diluted                                                28,077     28,495




                       SEACOR HOLDINGS INC.
            CONDENSED CONSOLIDATED STATEMENTS OF INCOME
         (in thousands, except per share data, unaudited)


                                       Three Months Ended
                     -----------------------------------------------------
                     Mar. 31,   Dec. 31,   Sep. 30,   Jun. 30,   Mar. 31,
                       2007       2006       2006       2006       2006
                     ---------  ---------  ---------  ---------  ---------

Operating Revenues   $ 310,763  $ 337,183  $ 349,361  $ 330,986  $ 305,915
                     ---------  ---------  ---------  ---------  ---------

Costs and Expenses:
  Operating expenses   188,658    189,799    196,608    187,149    169,644
  Administrative and
   general              34,400     35,522     30,880     32,865     31,493
  Depreciation and
   amortization         38,875     40,159     40,977     42,318     43,260
                     ---------  ---------  ---------  ---------  ---------
                       261,933    265,480    268,465    262,332    244,397
                     ---------  ---------  ---------  ---------  ---------

Gains on Asset
 Dispositions and
 Impairments, Net       12,157     20,957     12,054     24,089     20,877
                     ---------  ---------  ---------  ---------  ---------

Operating Income        60,987     92,660     92,950     92,743     82,395
                     ---------  ---------  ---------  ---------  ---------

Other Income
 (Expense):
  Interest income       12,224     11,492     10,279      9,086      7,136
  Interest expense     (13,268)   (13,457)   (13,307)   (12,847)   (14,068)
  Derivative
   transaction gains
   (losses), net           130      3,258      2,813      3,084     (2,812)
  Foreign currency
   transaction gains
   (losses), net          (590)       332        650      1,217        159
  Marketable
   security
   transaction gains
   (losses), net        (4,688)    (6,626)     4,549     (3,341)    (3,585)
  Other, net               (43)       207        117        595         28
                     ---------  ---------  ---------  ---------  ---------
                        (6,235)    (4,794)     5,101     (2,206)   (13,142)
                     ---------  ---------  ---------  ---------  ---------
Income Before Income
 Tax Expense,
 Minority Interest
 in Income of
 Subsidiaries and
 Equity In Earnings
 (Losses) of 50% or
 Less Owned
 Companies              54,752     87,866     98,051     90,537     69,253
Income Tax Expense      18,842     28,949     37,037     33,703     25,431
                     ---------  ---------  ---------  ---------  ---------
Income Before
 Minority Interest
 in Income of
 Subsidiaries and
 Equity in Earnings
 (Losses) of 50% or
 Less Owned
 Companies              35,910     58,917     61,014     56,834     43,822
Minority Interest in
 Income of
 Subsidiaries             (178)      (367)      (451)      (104)       (83)
Equity in Earnings
 (Losses) of 50% or
 Less Owned
 Companies               2,420       (195)     2,607      6,031      6,369
                     ---------  ---------  ---------  ---------  ---------
Net Income           $  38,152  $  58,355  $  63,170  $  62,761  $  50,108
                     =========  =========  =========  =========  =========

Basic Earnings Per
 Common Share        $    1.57  $    2.40  $    2.57  $    2.52  $    2.02

Diluted Earnings Per
 Common Share        $    1.40  $    2.12  $    2.28  $    2.24  $    1.80

Weighted Average
 Common Shares
 Outstanding:
  Basic                 24,354     24,311     24,575     24,869     24,767
  Diluted               28,077     28,053     28,282     28,568     28,495
Common Shares
 Outstanding at
 Period End             24,181     24,519     24,457     24,801     25,076



                               SEACOR HOLDINGS INC.
                  OPERATING INCOME (LOSS) BY LINE OF BUSINESS
                            (in thousands, unaudited)


                                       Three Months Ended
                     -----------------------------------------------------
                     Mar. 31,   Dec. 31,   Sep. 30,   Jun. 30,   Mar. 31,
                       2007       2006       2006       2006       2006
                     ---------  ---------- ---------- ---------  ---------

Offshore Marine
 Services
Operating Revenues   $ 170,928  $  174,753 $  179,687 $ 168,285  $ 159,852
                     ---------  ---------- ---------- ---------  ---------
Costs and Expenses:
  Operating expenses    92,999      82,988     89,791    86,695     79,506
  Administrative and
   general              13,023      13,101     10,118    11,470     11,688
  Depreciation and
   amortization         16,524      17,239     19,353    21,793     23,127
                     ---------  ---------- ---------- ---------  ---------
                       122,546     113,328    119,262   119,958    114,321
                     ---------  ---------- ---------- ---------  ---------

Gains on Asset
 Dispositions and
 Impairments, Net        8,294      13,797     10,168    22,489     20,552
                     ---------  ---------- ---------- ---------  ---------
Operating Income     $  56,676  $   75,222 $   70,593 $  70,816  $  66,083
                     =========  ========== ========== =========  =========

Marine
 Transportation
 Services
Operating Revenues   $  30,556  $   34,408 $   35,617 $  37,446  $  37,724
                     ---------  ---------- ---------- ---------  ---------
Costs and Expenses:
  Operating expenses    20,849      20,941     21,017    18,064     21,471
  Administrative and
   general               1,186       1,096      1,064     1,049        964
  Depreciation and
   amortization         10,158      10,159     10,159    10,162     10,185
                     ---------  ---------- ---------- ---------  ---------
                        32,193      32,196     32,240    29,275     32,620
                     ---------  ---------- ---------- ---------  ---------

Gains on Asset
 Dispositions               --          --         --        --         --
                     ---------  ---------- ---------- ---------  ---------
Operating Income
 (Loss)              $  (1,637) $    2,212 $    3,377 $   8,171  $   5,104
                     =========  ========== ========== =========  =========

Inland River
 Services
Operating Revenues   $  26,722  $   37,841 $   38,798 $  36,339  $  34,488
                     ---------  ---------- ---------- ---------  ---------
Costs and Expenses:
  Operating expenses    12,305      16,752     18,563    18,649     15,395
  Administrative and
   general                 877       1,330      1,013       829        816
  Depreciation and
   amortization          3,499       3,755      3,804     3,267      3,474
                     ---------  ---------- ---------- ---------  ---------
                        16,681      21,837     23,380    22,745     19,685
                     ---------  ---------- ---------- ---------  ---------

Gains on Asset
 Dispositions            3,622          84         --        --         --
                     ---------  ---------- ---------- ---------  ---------
Operating Income     $  13,663  $   16,088 $   15,418 $  13,594  $  14,803
                     =========  ========== ========== =========  =========

Aviation Services
Operating Revenues   $  45,433  $   38,858 $   43,799 $  39,903  $  33,454
                     ---------  ---------- ---------- ---------  ---------
Costs and Expenses:
  Operating expenses    36,225      32,818     33,269    29,137     26,345
  Administrative and
   general               4,521       3,880      3,413     4,158      3,494
  Depreciation and
   amortization          6,079       5,847      5,264     4,591      4,254
                     ---------  ---------- ---------- ---------  ---------
                        46,825      42,545     41,946    37,886     34,093
                     ---------  ---------- ---------- ---------  ---------

Gains on Asset
 Dispositions              227       7,065      1,880     1,818        325
                     ---------  ---------- ---------- ---------  ---------
Operating Income
 (Loss)              $  (1,165) $    3,378 $    3,733 $   3,835  $    (314)
                     =========  ========== ========== =========  =========

Environmental
 Services
Operating Revenues   $  26,492  $   40,762 $   38,885 $  36,946  $  27,923
                     ---------  ---------- ---------- ---------  ---------
Costs and Expenses:
  Operating expenses    20,753      29,931     26,370    26,345     20,508
  Administrative and
   general               5,301       5,101      5,931     5,156      4,405
  Depreciation and
   amortization            909       1,153        731       741        733
                     ---------  ---------- ---------- ---------  ---------
                        26,963      36,185     33,032    32,242     25,646
                     ---------  ---------- ---------- ---------  ---------

Gains (Losses) on
 Asset Dispositions
 and Impairments,
 Net                       (16)         11          6      (215)        --
                     ---------  ---------- ---------- ---------  ---------
Operating Income
 (Loss)              $    (487) $    4,588 $    5,859 $   4,489  $   2,277
                     =========  ========== ========== =========  =========



                               SEACOR HOLDINGS INC.
             OPERATING INCOME (LOSS) BY LINE OF BUSINESS (continued)
                             (in thousands, unaudited)


                                         Three Months Ended
                          ------------------------------------------------
                          Mar. 31,  Dec. 31,  Sep. 30,  Jun. 30,  Mar. 31,
                            2007      2006      2006      2006      2006
                          --------  --------  --------  --------  --------

Harbor and Offshore
 Towing  Services
Operating Revenues        $ 11,682  $ 11,632  $ 12,552  $ 12,156  $ 12,884
                          --------  --------  --------  --------  --------
Costs and Expenses:
  Operating expenses         6,568     7,252     7,744     8,336     6,841
  Administrative and
   general                   2,182     2,089     1,662     1,851     1,604
  Depreciation and
   amortization              1,264     1,264     1,265     1,275     1,259
                          --------  --------  --------  --------  --------
                            10,014    10,605    10,671    11,462     9,704
                          --------  --------  --------  --------  --------

Gains on Asset
 Dispositions                   30        --        --        --        --
                          --------  --------  --------  --------  --------
Operating Income          $  1,698  $  1,027  $  1,881  $    694  $  3,180
                          ========  ========  ========  ========  ========

Corporate, Other and
 Eliminations
Operating Revenues        $ (1,050) $ (1,071) $     23  $    (89) $   (410)
                          --------  --------  --------  --------  --------
Costs and Expenses:
  Operating expenses        (1,041)     (883)     (146)      (77)     (422)
  Administrative and
   general                   7,310     8,925     7,679     8,352     8,522
  Depreciation and
   amortization                442       742       401       489       228
                          --------  --------  --------  --------  --------
                             6,711     8,784     7,934     8,764     8,328
                          --------  --------  --------  --------  --------

Losses on Asset
 Dispositions                   --        --        --        (3)       --
                          --------  --------  --------  --------  --------
Operating Loss            $ (7,761) $ (9,855) $ (7,911) $ (8,856) $ (8,738)
                          ========  ========  ========  ========  ========




                              SEACOR HOLDINGS INC.
                   SELECTED CONSOLIDATED BALANCE SHEET DATA
                          (in thousands, unaudited)

                      Mar. 31,   Dec. 31,   Sep. 30,   Jun. 30,   Mar. 31,
                       2007       2006       2006       2006       2006
                     ---------- ---------- ---------- ---------- ----------
Cash, Cash
 Equivalents,
 Restricted Cash,
 Securities,
 Construction
 Reserve Funds and
 Title XI Reserve
 Funds               $  815,928 $  925,725 $  839,057 $  803,360 $  764,649
Receivables             300,847    312,956    282,040    278,000    270,794
Current Assets          815,534    938,369    893,813    915,245    900,488
Net Property and
 Equipment            1,882,731  1,770,210  1,764,990  1,737,811  1,733,757
Total Assets          3,271,047  3,252,982  3,076,296  3,014,963  2,961,627
Current Portion of
 Long-term Debt and
 Capital Lease
 Obligations             11,736     11,708     10,443      8,970     10,420
Current Liabilities     314,012    295,509    287,872    287,797    280,279
Long-term Debt &
 Capital Lease
 Obligations            959,007    961,003    964,567    955,567    964,096
Stockholders' Equity  1,554,233  1,557,078  1,493,036  1,458,302  1,418,190

Contact Information

  • For additional information, contact:
    Timothy McKeand
    Vice President
    (954) 627-6380

    Visit SEACOR's website at www.seacorholdings.com