SOURCE: SEACOR Holdings Inc.

February 22, 2007 19:30 ET

SEACOR Holdings Announces Fourth Quarter Results

FORT LAUDERDALE, FL -- (MARKET WIRE) -- February 22, 2007 -- SEACOR Holdings Inc. (NYSE: CKH) announced net income for the fourth quarter ended December 31, 2006 of $58.4 million, or $2.12 per diluted share, on operating revenues of $337.2 million. For the twelve months ended December 31, 2006, net income was $234.4 million, or $8.44 per diluted share, on operating revenues of $1,323.4 million.

For the fourth quarter ended December 31, 2005, net income was $106.5 million, or $3.76 per diluted share, on operating revenues of $334.1 million. For the twelve months ended December 31, 2005, net income was $170.7 million, or $6.95 per diluted share, on operating revenues of $972.0 million.

As a result of the repatriation of foreign earnings under the provisions of the American Job Creation Act of 2004, net income for the fourth quarter ended December 31, 2005 included a $46.2 million income tax benefit, or $1.61 per diluted share, and a foreign currency gain of $10.7 million, net of tax, or $0.37 per diluted share.

For the immediately preceding quarter ended September 30, 2006, the Company reported net income of $63.2 million, or $2.28 per diluted share, on operating revenues of $349.4 million.

Highlights for the Quarter

Offshore Marine Services -- Operating income in the fourth quarter was $75.2 million on operating revenues of $174.8 million compared to operating income of $70.6 million on operating revenues of $179.7 million in the preceding quarter. Fourth quarter results included $13.8 million in gains on asset dispositions compared to $10.2 million in gains in the preceding quarter.

Overall average day rates continued to improve increasing from $9,564 per day to $10,447 per day. The most significant improvements were in the Gulf of Mexico and West Africa, where average day rates increased by 13.9% and 4.7%, respectively. Average rates were also significantly higher in the Middle East due to more sophisticated equipment operating in that region.

The number of days worked in the fourth quarter declined by 1,977 or 10.9%. This was due to a combination of lower overall utilization, which fell from 87.7% to 82.3%, and a 1,065, or 5.1% reduction in the number of days available for charter, as a result of a net decrease in fleet count.

Utilization improved in all international regions except in West Africa where there was a heavy drydock and repair schedule in the fourth quarter. In the Gulf of Mexico demand for anchor handling, supply and towing supply vessels remained at high levels with most vessels remaining fully utilized except for reasons of survey or repair. Demand for crew boats and mini-supply vessels decreased due to a reduction in shelf activity and a seasonal decline in construction activity.

Marine Transportation Services -- Operating income in the fourth quarter was $2.2 million on operating revenues of $34.4 million compared with operating income of $3.4 million on operating revenues of $35.6 million in the preceding quarter.

The decrease in operating income was primarily due to one vessel being off-hire for the entire quarter while undergoing a retrofit to a double-hull configuration and completing a regulatory dry-docking.

Inland River Services -- Operating income in the fourth quarter was $16.1 million on operating revenues of $37.8 million compared with operating income of $15.4 million on operating revenues of $38.8 million in the preceding quarter.

Operating revenues were slightly lower due to a reduction in available barge days following the return of 20 barges that had been chartered-in on a multi year arrangement and the contribution of 27 barges into a new joint venture company.

The improvement in operating income was primarily due to a reduction in towing costs because of lower fuel prices and the reduction in fleet size.

Aviation Services -- Operating income in the fourth quarter was $3.4 million on operating revenues of $38.9 million compared to an operating income of $3.7 million on operating revenues of $43.8 million in the preceding quarter. Fourth quarter results included $7.1 million in gains on asset dispositions compared to $1.9 million in gains in the preceding quarter.

The decrease in operating income was primarily due to seasonal factors affecting revenues generated from flightseeing operations in Alaska which were inactive in the fourth quarter together with a decrease in flight hours in the Gulf of Mexico because of adverse weather conditions.

Environmental Services -- Operating income in the fourth quarter was $4.6 million on operating revenues of $40.8 million compared to operating income of $5.9 million on operating revenues of $38.9 million in the preceding quarter. The decrease in operating income was primarily due to lower revenues from retainer service contracts and response services, partially offset by higher revenues from project management and consulting activity.

Derivative Transactions -- Derivative transactions, primarily consisting of interest rate swaps and foreign currency contracts, resulted in gains of $3.3 million in the fourth quarter compared to gains of $2.8 million in the preceding quarter.

Foreign Currency Transactions -- Foreign currency transaction gains were $0.3 million in the fourth quarter compared to $0.7 million in the preceding quarter.

Marketable Security Transactions -- Marketable security and short sale transactions resulted in losses of $6.6 million in the fourth quarter compared to gains of $4.5 million in the preceding quarter.

Equity in Earnings (Losses) of 50% or Less Owned Companies -- Equity losses from joint ventures were $0.2 million in the fourth quarter compared to earnings of $2.6 million in the preceding quarter. During the fourth quarter the Company provided $7.0 million for income taxes on the accumulated earnings of certain foreign joint ventures which had previously been deemed permanently reinvested overseas. Additionally, the Company recognized earnings of $5.0 million, net of tax, on the fourth quarter disposition of an asset from one of its foreign joint ventures.

Capital Commitments -- The Company's unfunded capital commitments as of December 31, 2006 consisted primarily of marine service vessels, harbor tugs, helicopters, barges and capital improvements to certain of the existing marine transportation fleet and totaled $567.9 million, of which $335.9 million is payable in 2007, with the remaining balance payable through 2009. Of these commitments, approximately $177.3 million may be terminated without further liability other than the payment of liquidated damages of $26.9 million in the aggregate. Subsequent to the end of the quarter the Company committed to purchase additional property and equipment for $70.1 million. As of December 31, 2006 the Company held balances of Cash, Cash Equivalents, Restricted Cash, Securities, Construction Reserve Funds and Title XI Reserve Funds totaling $925.7 million.

* * * * *

SEACOR is a global provider of marine support and transportation services, 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 Helicopter Services, changes in foreign and domestic oil and gas exploration and production activity, vessel and helicopter-related risks of Offshore Marine Services and Aviation Services, effects of adverse weather conditions and seasonality on Aviation Services, decreased demand for our tanker and 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 operations, 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 operations, the intense competition faced by Inland River Services, 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, our integration of the internal controls and procedures of Seabulk International, Inc. to continue our compliance with the Sarbanes-Oxley Act of 2002 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        Twelve Months Ended
                            December 31,               December 31,
                        ------------------------  ------------------------
                            2006         2005         2006         2005
                        -----------  -----------  -----------  -----------

Operating Revenues      $   337,183  $   334,119  $ 1,323,445  $   972,004
                        -----------  -----------  -----------  -----------

Costs and Expenses:
  Operating expenses        189,799      177,012      743,200      589,928
  Administrative and
   general                   35,522       36,256      130,760      105,195
  Depreciation and
   amortization              40,159       44,405      166,714      127,714
                        -----------  -----------  -----------  -----------
                            265,480      257,673    1,040,674      822,837
                        -----------  -----------  -----------  -----------

Gains on Asset
 Dispositions and
 Impairments, Net            20,957       13,575       77,977       28,285
                        -----------  -----------  -----------  -----------

Operating Income             92,660       90,021      360,748      177,452
                        -----------  -----------  -----------  -----------

Other Income (Expense):
  Interest income            11,492        6,284       37,993       19,201
  Interest expense          (13,457)     (16,470)     (53,679)     (48,152)
  Derivative
   transaction gains
   (losses), net              3,258         (881)       6,343       (7,074)
  Foreign currency
   transaction gains,
   net                          332       16,895        2,358       23,183
  Marketable security
   transaction gains
   (losses), net             (6,626)       2,957       (9,003)      28,081
  Other, net                    207          176          947        1,707
                        -----------  -----------  -----------  -----------
                             (4,794)       8,961      (15,041)      16,946
                        -----------  -----------  -----------  -----------
Income from Continuing
 Operations Before
 Income Tax Expense
 (Benefit), Minority
 Interest in (Income)
 Loss of Subsidiaries
 and Equity In Earnings
 (Losses) of 50% or
 Less Owned Companies        87,866       98,982      345,707      194,398
Income Tax Expense
 (Benefit)                   28,949       (6,336)     125,120       29,746
                        -----------  -----------  -----------  -----------
Income from Continuing
 Operations Before
 Minority Interest in
 (Income) Loss of
 Subsidiaries and
 Equity in Earnings
 (Losses) of 50% or
 Less Owned Companies        58,917      105,318      220,587      164,652
Minority Interest in
 (Income) Loss of
 Subsidiaries                  (367)         (71)      (1,005)          32
Equity in Earnings
 (Losses) of 50% or
 Less Owned Companies          (195)       1,250       14,812        5,661
                        -----------  -----------  -----------  -----------
Income from Continuing
 Operations                  58,355      106,497      234,394      170,345
Income from
 Discontinued
 Operations                       -            -            -          364
                        -----------  -----------  -----------  -----------
Net Income              $    58,355  $   106,497  $   234,394  $   170,709
                        ===========  ===========  ===========  ===========

Basic Earnings Per
 Common Share:
  Income from
   Continuing
   Operations           $      2.40  $      4.28  $      9.52  $      7.89
  Income from
   Discontinued
   Operations                     -            -            -         0.02
                        -----------  -----------  -----------  -----------
  Net Income            $      2.40  $      4.28  $      9.52  $      7.91
                        ===========  ===========  ===========  ===========

Diluted Earnings Per
 Common Share:
  Income from
   Continuing
   Operations           $      2.12  $      3.76  $      8.44  $      6.93
  Income from
   Discontinued
   Operations                     -            -            -         0.02
                        -----------  -----------  -----------  -----------
  Net Income            $      2.12  $      3.76  $      8.44  $      6.95
                        ===========  ===========  ===========  ===========

Weighted Average Common
 Shares Outstanding:
  Basic                      24,311       24,884       24,634       21,595
  Diluted                    28,053       28,618       28,350       25,273



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


                                       Three Months Ended
                     -----------------------------------------------------
                     Dec. 31,    Sep. 30,   Jun. 30,   Mar. 31,   Dec. 31,
                       2006       2006        2006      2006       2005
                     ---------  ---------  ---------  ---------  ---------

Operating Revenues   $ 337,183  $ 349,361  $ 330,986  $ 305,915  $ 334,119
                     ---------  ---------  ---------  ---------  ---------

Costs and Expenses:
  Operating expenses   189,799    196,608    187,149    169,644    177,012
  Administrative and
   general              35,522     30,880     32,865     31,493     36,256
  Depreciation and
   amortization         40,159     40,977     42,318     43,260     44,405
                     ---------  ---------  ---------  ---------  ---------
                       265,480    268,465    262,332    244,397    257,673
                     ---------  ---------  ---------  ---------  ---------

Gains on Asset
 Dispositions and
 Impairments, Net       20,957     12,054     24,089     20,877     13,575
                     ---------  ---------  ---------  ---------  ---------

Operating Income        92,660     92,950     92,743     82,395     90,021
                     ---------  ---------  ---------  ---------  ---------

Other Income
 (Expense):
  Interest income       11,492     10,279      9,086      7,136      6,284
  Interest
   expense             (13,457)   (13,307)   (12,847)   (14,068)   (16,470)
  Derivative
   transaction gains
   (losses), net         3,258      2,813      3,084     (2,812)      (881)
  Foreign currency
   transaction
   gains, net              332        650      1,217        159     16,895
  Marketable
   security
   transaction gains
   (losses), net        (6,626)     4,549     (3,341)    (3,585)     2,957
  Other, net               207        117        595         28        176
                     ---------  ---------  ---------  ---------  ---------
                        (4,794)     5,101     (2,206)   (13,142)     8,961
                     ---------  ---------  ---------  ---------  ---------
Income Before Income
 Tax Expense
 (Benefit), Minority
 Interest in Income
 of Subsidiaries and
 Equity In Earnings
 (Losses) of 50% or
 Less Owned
 Companies              87,866     98,051     90,537     69,253     98,982
Income Tax Expense
 (Benefit)              28,949     37,037     33,703     25,431     (6,336)
                     ---------  ---------  ---------  ---------  ---------
Income Before
 Minority Interest
 in Income of
 Subsidiaries and
 Equity in Earnings
 (Losses) of 50% or
 Less Owned
 Companies              58,917     61,014     56,834     43,822    105,318
Minority Interest in
 Income of
 Subsidiaries             (367)      (451)      (104)       (83)       (71)
Equity in Earnings
 (Losses) of 50% or
 Less Owned
 Companies                (195)     2,607      6,031      6,369      1,250
                     ---------  ---------  ---------  ---------  ---------
Net Income           $  58,355  $  63,170  $  62,761  $  50,108  $ 106,497
                     =========  =========  =========  =========  =========

Basic Earnings Per
 Common Share        $    2.40  $    2.57  $    2.52  $    2.02  $    4.28

Diluted Earnings Per
 Common Share        $    2.12  $    2.28  $    2.24  $    1.80  $    3.76

Weighted Average
 Common Shares
 Outstanding:
  Basic                 24,311     24,575     24,869     24,767     24,884
  Diluted               28,053     28,282     28,568     28,495     28,618
Common Shares
 Outstanding at
 Period End             24,519     24,457     24,801     25,076     24,819







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


                                      Three Months Ended
                     -----------------------------------------------------
                     Dec. 31,    Sep. 30,   Jun. 30,   Mar. 31,   Dec. 31,
                       2006       2006        2006      2006       2005
                     ---------  ---------  ---------  ---------  ---------

Offshore Marine
 Services
Operating Revenues   $  174,753 $  179,687 $ 168,285  $ 159,852  $ 168,823
                     ---------- ---------- ---------  ---------  ---------
Costs and Expenses:
  Operating expenses     82,988     89,791    86,695     79,506     85,377
  Administrative and
   general               13,101     10,118    11,470     11,688     12,809
  Depreciation and
   amortization          17,239     19,353    21,793     23,127     22,772
                     ---------- ---------- ---------  ---------  ---------
                        113,328    119,262   119,958    114,321    120,958
                     ---------- ---------- ---------  ---------  ---------

Gains on Asset
 Dispositions and
 Impairments, Net        13,797     10,168    22,489     20,552      6,578
                     ---------- ---------- ---------  ---------  ---------
Operating Income     $   75,222 $   70,593 $  70,816  $  66,083  $  54,443
                     ========== ========== =========  =========  =========

Marine
 Transportation
 Services
Operating Revenues   $   34,408 $   35,617 $  37,446  $  37,724  $  36,625
                     ---------- ---------- ---------  ---------  ---------
Costs and Expenses:
  Operating expenses     20,941     21,017    18,064     21,471     17,677
  Administrative and
   general                1,096      1,064     1,049        964        874
  Depreciation and
   amortization          10,159     10,159    10,162     10,185     11,641
                     ---------- ---------- ---------  ---------  ---------
                         32,196     32,240    29,275     32,620     30,192
                     ---------- ---------- ---------  ---------  ---------

Gains on Asset
 Dispositions                 -          -         -          -          -
                     ---------- ---------- ---------  ---------  ---------
Operating Income     $    2,212 $    3,377 $   8,171  $   5,104  $   6,433
                     ========== ========== =========  =========  =========

Inland River
 Services
Operating Revenues   $   37,841 $   38,798 $  36,339  $  34,488  $  40,666
                     ---------- ---------- ---------  ---------  ---------
Costs and Expenses:
  Operating expenses     16,752     18,563    18,649     15,395     18,498
  Administrative and
   general                1,330      1,013       829        816        691
  Depreciation and
   amortization           3,755      3,804     3,267      3,474      3,479
                     ---------- ---------- ---------  ---------  ---------
                         21,837     23,380    22,745     19,685     22,668
                     ---------- ---------- ---------  ---------  ---------

Gains on Asset
 Dispositions                84          -         -          -          -
                     ---------- ---------- ---------  ---------  ---------
Operating Income     $   16,088 $   15,418 $  13,594  $  14,803  $  17,998
                     ========== ========== =========  =========  =========

Aviation Services
Operating Revenues   $   38,858 $   43,799 $  39,903  $  33,454  $  38,856
                     ---------- ---------- ---------  ---------  ---------
Costs and Expenses:
  Operating expenses     32,818     33,269    29,137     26,345     26,960
  Administrative and
   general                3,880      3,413     4,158      3,494      4,571
  Depreciation and
   amortization           5,847      5,264     4,591      4,254      4,199
                     ---------- ---------- ---------  ---------  ---------
                         42,545     41,946    37,886     34,093     35,730
                     ---------- ---------- ---------  ---------  ---------

Gains on Asset
 Dispositions             7,065      1,880     1,818        325      7,024
                     ---------- ---------- ---------  ---------  ---------
Operating Income
 (Loss)              $    3,378 $    3,733 $   3,835  $    (314) $  10,150
                     ========== ========== =========  =========  =========

Environmental
 Services
Operating Revenues   $   40,762 $   38,885 $  36,946  $  27,923  $  37,583
                     ---------- ---------- ---------  ---------  ---------
Costs and Expenses:
  Operating expenses     29,931     26,370    26,345     20,508     21,852
  Administrative and
   general                5,101      5,931     5,156      4,405      4,669
  Depreciation and
   amortization           1,153        731       741        733        664
                     ---------- ---------- ---------  ---------  ---------
                         36,185     33,032    32,242     25,646     27,185
                     ---------- ---------- ---------  ---------  ---------

Gains (Losses) on
 Asset Dispositions
 and Impairments,
 Net                         11          6      (215)         -        (27)
                     ---------- ---------- ---------  ---------  ---------
Operating Income     $    4,588 $    5,859 $   4,489  $   2,277  $  10,371
                     ========== ========== =========  =========  =========



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


                                       Three Months Ended
                     -----------------------------------------------------
                     Dec. 31,    Sep. 30,   Jun. 30,   Mar. 31,   Dec. 31,
                       2006       2006        2006      2006       2005
                     ---------  ---------  ---------  ---------  ---------

Harbor and Offshore
 Towing  Services
Operating Revenues   $  11,632  $  12,552  $  12,156  $  12,884  $  11,949
                     ---------  ---------  ---------  ---------  ---------
Costs and Expenses:
  Operating expenses     7,252      7,744      8,336      6,841      7,043
  Administrative and
   general               2,089      1,662      1,851      1,604      1,663
  Depreciation and
   amortization          1,264      1,265      1,275      1,259      1,303
                     ---------  ---------  ---------  ---------  ---------
                        10,605     10,671     11,462      9,704     10,009
                     ---------  ---------  ---------  ---------  ---------

Gains on Asset
 Dispositions                -          -          -          -          -
                     ---------  ---------  ---------  ---------  ---------
Operating Income     $   1,027  $   1,881  $     694  $   3,180  $   1,940
                     =========  =========  =========  =========  =========

Corporate and
 Eliminations
Operating Revenues   $  (1,071) $      23  $     (89) $    (410) $    (383)
                     ---------  ---------  ---------  ---------  ---------
Costs and Expenses:
  Operating expenses      (883)      (146)       (77)      (422)      (395)
  Administrative and
   general               8,925      7,679      8,352      8,522     10,979
  Depreciation and
   amortization            742        401        489        228        347
                     ---------  ---------  ---------  ---------  ---------
                         8,784      7,934      8,764      8,328     10,931
                     ---------  ---------  ---------  ---------  ---------

Losses on Asset
 Dispositions                -          -         (3)         -          -
                     ---------  ---------  ---------  ---------  ---------
Operating Loss       $  (9,855) $  (7,911) $  (8,856) $  (8,738) $ (11,314)
                     =========  =========  =========  =========  =========



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


                     Dec. 31,    Sep. 30,   Jun. 30,   Mar. 31,   Dec. 31,
                       2006       2006        2006      2006       2005
                     ---------  ---------  ---------  ---------  ---------

Cash, Cash
 Equivalents,
 Restricted Cash,
 Securities,
 Construction
 Reserve Funds, and
 Title XI Reserve
 Funds               $  925,725 $  839,057 $  803,360 $  764,649 $  684,521
Receivables             312,956    282,040    278,000    270,794    260,831
Current Assets          938,369    893,813    915,245    900,488    839,091
Net Property and
 Equipment            1,770,210  1,764,990  1,737,811  1,733,757  1,759,393
Total Assets          3,252,982  3,076,296  3,014,963  2,961,627  2,885,141
Current Portion of
 Long-term Debt and
 Capital Lease
 Obligations             11,708     10,443      8,970     10,420     10,505
Current Liabilities     295,509    287,872    287,797    280,279    247,906
Long-term Debt &
 Capital Lease
 Obligations            961,003    964,567    955,567    964,096    977,635
Stockholders' Equity  1,557,078  1,493,036  1,458,302  1,418,190  1,361,305

Contact Information

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

    Visit SEACOR's website at www.seacorholdings.com.