FORT LAUDERDALE, FL--(Marketwire - February 19, 2008) - SEACOR Holdings Inc. (
NYSE:
CKH)
announced net income for the fourth quarter ended December 31, 2007 of
$67.9 million, or $2.62 per diluted share, on operating revenues of $363.1
million. For the twelve months ended December 31, 2007, net income was
$241.6 million, or $9.04 per diluted share, on operating revenues of
$1,359.2 million.
For the fourth quarter ended December 31, 2006, net income was $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 preceding quarter ended September 30, 2007, net income was $70.3
million, or $2.66 per diluted share, on operating revenues of $360.0
million.
Highlights for the Quarter
Offshore Marine Services - Operating income in the fourth quarter was $66.1
million on operating revenues of $170.4 million compared to operating
income of $70.3 million on operating revenues of $179.6 million in the
preceding quarter. Fourth quarter results included gains on asset
dispositions of $22.5 million compared to $13.2 million in the preceding
quarter.
The number of days available for charter in the fourth quarter decreased by
366, or 2.1%, due to a net reduction in fleet count. Overall average day
rates increased from $11,769 to $12,262 per day. Overall utilization
decreased from 83.6% to 75.8%, primarily due to a softening of the shelf
market in the U.S. Gulf of Mexico and increased out-of-service time for
vessels undergoing drydocking and repairs.
Operating expenses in the fourth quarter were higher, primarily due to
increased regulatory drydocking activity, higher repair and insurance
costs, and increased costs to charter-in third party vessels. Payroll
related expenses were lower, primarily due to a $3.9 million pension charge
in the prior quarter for the United Kingdom Merchant Navy Officers Pension
Fund.
Marine Transportation Services - Marine Transportation Services reported an
operating loss in the fourth quarter of $6.5 million on operating revenues
of $31.8 million compared to an operating loss of $2.2 million on operating
revenues of $27.7 million in the preceding quarter.
Operating results were negatively impacted by one vessel being off-hire for
31 days while undergoing a regulatory drydocking and by another vessel
being off-hire for 49 days while completing a retrofit to a double-hull
configuration before returning to service in November. These two vessels
accounted for operating losses of $11.1 million in the fourth quarter.
Operating revenues and operating expenses were higher in the fourth quarter
due to two vessels being contracted to transport grain cargos under the
World Food Program before being sold in January 2008. These vessels
accounted for operating losses of $1.6 million in the fourth quarter.
Inland River Services - Operating income in the fourth quarter was $34.4
million on operating revenues of $33.9 million compared to operating income
of $12.0 million on operating revenues of $32.7 million in the preceding
quarter. Fourth quarter results included gains on asset dispositions of
$22.7 million compared to $1.6 million in the preceding quarter.
Excluding the impact of gains on asset dispositions, operating income was
$1.3 million higher in the fourth quarter primarily due to lower equipment
maintenance costs in the unit tow liquid cargo business. Operating income
in the dry cargo fleet was slightly lower due to a reduction in charter-out
activity following the sale of barges to third parties.
Aviation Services - Operating income in the fourth quarter was $2.0 million
on operating revenues of $51.3 million compared to operating income of
$13.5 million on operating revenues of $62.4 million in the preceding
quarter. Fourth quarter results included gains on asset dispositions of
$2.0 million compared to $4.3 million in the preceding quarter.
The decrease in operating income from flight operations was primarily due
to lower activity from seasonal contracts and flightseeing operations in
Alaska, which were inactive in the fourth quarter, and a decrease in flight
hours in the U.S. Gulf of Mexico due to a reduction in drilling activity.
In addition, the air medical services business experienced a reduction in
operating income primarily due to fewer patient transfers.
Environmental Services - Operating income in the fourth quarter was $10.0
million on operating revenues of $55.9 million compared to operating income
of $5.0 million on operating revenues of $42.3 million in the preceding
quarter. The increase in operating income was primarily due to the impact
of a major spill response event in California during the fourth quarter.
Administrative and General - Expenses in the fourth quarter were $5.2
million higher than in the previous quarter, primarily due to increased
accruals for management bonuses, relocation and severance expenses and
additional reserves for doubtful accounts.
Derivatives - Derivative gains were $5.7 million in the fourth quarter
compared to gains of $5.2 million in the preceding quarter primarily as a
result of foreign currency forward contracts.
Marketable Security Transactions - Marketable security losses were $1.2
million in the fourth quarter compared to gains of $12.0 million in the
preceding quarter.
Equity in Earnings of 50% or Less Owned Companies - Equity in earnings from
joint ventures was $8.6 million in the fourth quarter compared to equity in
earnings of $3.2 million in the preceding quarter. During the fourth
quarter the Company disposed of its interest in certain South American
offshore marine services joint ventures resulting in earnings of $5.0
million, net of tax.
Capital Commitments - The Company's unfunded capital commitments as of
December 31, 2007 consisted primarily of marine service vessels, harbor
tugs, helicopters and barges and totaled $462.0 million, of which $332.4
million is payable in 2008, with the remaining balance payable through
2010. Of these commitments, approximately $86.0 million may be terminated
without further liability other than the payment of liquidated damages of
$7.3 million in the aggregate. Subsequent to the end of the year, the
Company committed to purchase additional equipment for $6.2 million and
sold a purchase contract reducing its unfunded capital commitments by $6.4
million. As of December 31, 2007, the Company held balances of Cash, Cash
Equivalents, Restricted Cash, Available-for-sale Securities, Construction
Reserve Funds and Title XI Reserve Funds totaling $1,001.7 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, aviation services, environmental services, and offshore and
harbor towing services. SEACOR is 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 and aircraft, 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, Marine Transportation 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 Marine Transportation
Services' double-bottom tanker, dependence of spill response revenue on the
number and size of spills and upon continuing government regulation in this
area and Environmental Services' ability to comply with such regulation and
other governmental regulation, changes in National Response Corporations'
Oil Spill Removal Organization 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 Services' 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 and factors, many of which are beyond the
Company's control. In addition, these statements constitute our cautionary
statements under the Private Securities Litigation Reform Act of 1995. It
is not possible to predict or identify all such factors. Consequently, the
following should not be considered 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. The Company 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 the Company's
businesses, particularly those mentioned under "Forward-Looking Statements"
in Item 7 on the Company's Form 10-K and SEACOR's periodic reporting on
Form 10-Q and Form 8-K (if any), which is incorporated 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 Twelve Months Ended
December 31, December 31,
----------------------- -----------------------
2007 2006 2007 2006
----------- ----------- ----------- -----------
Operating Revenues $ 363,090 $ 337,183 $ 1,359,230 $ 1,323,445
----------- ----------- ----------- -----------
Costs and Expenses:
Operating 230,935 189,799 832,403 743,200
Administrative and
general 42,097 35,522 147,317 130,760
Depreciation and
amortization 39,934 40,159 154,307 166,714
----------- ----------- ----------- -----------
312,966 265,480 1,134,027 1,040,674
----------- ----------- ----------- -----------
Gains on Asset Dispositions
and Impairments, Net 48,315 20,957 122,572 77,977
----------- ----------- ----------- -----------
Operating Income 98,439 92,660 347,775 360,748
----------- ----------- ----------- -----------
Other Income (Expense):
Interest income 10,219 11,492 45,173 37,993
Interest expense (13,129) (13,457) (49,360) (53,679)
Derivative gains, net 5,738 3,258 10,835 6,343
Foreign currency gains,
net 44 332 230 2,358
Marketable security
losses, net (1,233) (6,626) (3,391) (9,003)
Other, net 109 207 (11) 947
----------- ----------- ----------- -----------
1,748 (4,794) 3,476 (15,041)
----------- ----------- ----------- -----------
Income Before Income Tax
Expense, Minority Interest
in (Income) Loss of
Subsidiaries and Equity In
Earnings (Losses) of 50%
or Less Owned Companies 100,187 87,866 351,251 345,707
Income Tax Expense 41,054 28,949 130,441 125,120
----------- ----------- ----------- -----------
Income Before Minority
Interest in (Income) Loss
of Subsidiaries and Equity
in Earnings (Losses) of
50% or Less Owned
Companies 59,133 58,917 220,810 220,587
Minority Interest in
(Income) Loss of
Subsidiaries 182 (367) (1,227) (1,005)
Equity in Earnings (Losses)
of 50% or Less Owned
Companies 8,633 (195) 22,065 14,812
----------- ----------- ----------- -----------
Net Income $ 67,948 $ 58,355 $ 241,648 $ 234,394
=========== =========== =========== ===========
Basic Earnings Per Common
Share $ 2.99 $ 2.40 $ 10.26 $ 9.52
Diluted Earnings Per Common
Share $ 2.62 $ 2.12 $ 9.04 $ 8.44
Weighted Average Common
Shares Outstanding:
Basic 22,738 24,311 23,548 24,634
Diluted 26,439 28,053 27,267 28,350
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,
2007 2007 2007 2007 2006
---------- ---------- ---------- ---------- ----------
Operating Revenues $ 363,090 $ 359,923 $ 325,454 $ 310,763 $ 337,183
---------- ---------- ---------- ---------- ----------
Costs and
Expenses:
Operating 230,935 213,992 198,818 188,658 189,799
Administrative
and general 42,097 36,883 33,937 34,400 35,522
Depreciation and
amortization 39,934 37,443 38,055 38,875 40,159
---------- ---------- ---------- ---------- ----------
312,966 288,318 270,810 261,933 265,480
---------- ---------- ---------- ---------- ----------
Gains on Asset
Dispositions and
Impairments, Net 48,315 19,560 42,540 12,157 20,957
---------- ---------- ---------- ---------- ----------
Operating Income 98,439 91,165 97,184 60,987 92,660
---------- ---------- ---------- ---------- ----------
Other Income
(Expense):
Interest
income 10,219 11,274 11,456 12,224 11,492
Interest
expense (13,129) (10,855) (12,108) (13,268) (13,457)
Derivative gains
(losses), net 5,738 5,221 (254) 130 3,258
Foreign currency
gains (losses),
net 44 316 460 (590) 332
Marketable
security gains
(losses), net (1,233) 11,960 (9,430) (4,688) (6,626)
Other, net 109 (716) 639 (43) 207
---------- ---------- ---------- ---------- ----------
1,748 17,200 (9,237) (6,235) (4,794)
---------- ---------- ---------- ---------- ----------
Income Before
Income Tax
Expense, Minority
Interest in
(Income) Loss of
Subsidiaries and
Equity In
Earnings (Losses)
of 50% or Less
Owned Companies 100,187 108,365 87,947 54,752 87,866
Income Tax Expense 41,054 40,339 30,206 18,842 28,949
---------- ---------- ---------- ---------- ----------
Income Before
Minority Interest
in (Income) Loss
of Subsidiaries
and Equity in
Earnings (Losses)
of 50% or Less
Owned Companies 59,133 68,026 57,741 35,910 58,917
Minority Interest
in (Income) Loss
of Subsidiaries 182 (927) (304) (178) (367)
Equity in Earnings
(Losses) of 50%
or Less Owned
Companies 8,633 3,183 7,829 2,420 (195)
---------- ---------- ---------- ---------- ----------
Net Income $ 67,948 $ 70,282 $ 65,266 $ 38,152 $ 58,355
========== ========== ========== ========== ==========
Basic Earnings Per
Common Share $ 2.99 $ 3.02 $ 2.73 $ 1.57 $ 2.40
Diluted Earnings
Per Common Share $ 2.62 $ 2.66 $ 2.41 $ 1.40 $ 2.12
Weighted Average
Common Shares
Outstanding:
Basic 22,738 23,234 23,886 24,354 24,311
Diluted 26,439 26,905 27,582 28,077 28,053
Common Shares
Outstanding at
Period End 22,575 23,157 23,895 24,181 24,519
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,
2007 2007 2007 2007 2006
---------- ---------- ---------- ---------- ---------
Offshore Marine
Services
Operating Revenues $ 170,430 $ 179,618 $ 171,442 $ 170,928 $ 174,753
---------- ---------- ---------- ---------- ---------
Costs and Expenses:
Operating 97,534 95,345 88,596 92,999 82,988
Administrative
and general 13,855 13,137 11,893 13,023 13,101
Depreciation and
amortization 15,415 14,069 14,515 16,524 17,239
---------- ---------- ---------- ---------- ---------
126,804 122,551 115,004 122,546 113,328
---------- ---------- ---------- ---------- ---------
Gains on Asset
Dispositions 22,472 13,222 38,546 8,294 13,797
---------- ---------- ---------- ---------- ---------
Operating Income $ 66,098 $ 70,289 $ 94,984 $ 56,676 $ 75,222
========== ========== ========== ========== =========
Marine
Transportation
Services
Operating Revenues $ 31,827 $ 27,730 $ 25,924 $ 30,556 $ 34,408
---------- ---------- ---------- ---------- ---------
Costs and Expenses:
Operating 27,781 19,207 22,865 20,849 20,941
Administrative
and general 1,737 1,150 1,236 1,186 1,096
Depreciation and
amortization 8,764 9,536 9,790 10,158 10,159
---------- ---------- ---------- ---------- ---------
38,282 29,893 33,891 32,193 32,196
---------- ---------- ---------- ---------- ---------
Gains on Asset
Dispositions -- -- -- -- --
---------- ---------- ---------- ---------- ---------
Operating Income
(Loss) $ (6,455) $ (2,163) $ (7,967) $ (1,637) $ 2,212
========== ========== ========== ========== =========
Inland River
Services
Operating Revenues $ 33,850 $ 32,656 $ 28,020 $ 26,722 $ 37,841
---------- ---------- ---------- ---------- ---------
Costs and Expenses:
Operating 15,863 16,234 13,056 12,305 16,752
Administrative
and general 2,076 1,753 2,101 877 1,330
Depreciation and
amortization 4,220 4,256 4,332 3,499 3,755
---------- ---------- ---------- ---------- ---------
22,159 22,243 19,489 16,681 21,837
---------- ---------- ---------- ---------- ---------
Gains on Asset
Dispositions 22,726 1,592 2,622 3,622 84
---------- ---------- ---------- ---------- ---------
Operating Income $ 34,417 $ 12,005 $ 11,153 $ 13,663 $ 16,088
========== ========== ========== ========== =========
Aviation Services
Operating Revenues $ 51,296 $ 62,449 $ 55,861 $ 45,433 $ 38,858
---------- ---------- ---------- ---------- ---------
Costs and Expenses:
Operating 38,156 41,647 41,212 36,225 32,818
Administrative
and general 5,315 4,590 4,439 4,521 3,880
Depreciation and
amortization 7,866 7,015 6,601 6,079 5,847
---------- ---------- ---------- ---------- ---------
51,337 53,252 52,252 46,825 42,545
---------- ---------- ---------- ---------- ---------
Gains on Asset
Dispositions 1,996 4,304 1,505 227 7,065
---------- ---------- ---------- ---------- ---------
Operating Income
(Loss) $ 1,955 $ 13,501 $ 5,114 $ (1,165) $ 3,378
========== ========== ========== ========== =========
Environmental
Services
Operating Revenues $ 55,879 $ 42,287 $ 32,168 $ 26,492 $ 40,762
---------- ---------- ---------- ---------- ---------
Costs and Expenses:
Operating 36,623 30,316 23,605 20,753 29,931
Administrative
and general 7,755 5,931 4,323 5,301 5,101
Depreciation and
amortization 1,748 1,096 1,100 909 1,153
---------- ---------- ---------- ---------- ---------
46,126 37,343 29,028 26,963 36,185
---------- ---------- ---------- ---------- ---------
Gains (Losses) on
Asset Dispositions 249 75 (133) (16) 11
---------- ---------- ---------- ---------- ---------
Operating Income
(Loss) $ 10,002 $ 5,019 $ 3,007 $ (487) $ 4,588
========== ========== ========== ========== =========
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,
2007 2007 2007 2007 2006
-------- -------- -------- -------- --------
Harbor and Offshore
Towing Services
Operating Revenues $ 13,461 $ 12,351 $ 12,538 $ 11,682 $ 11,632
-------- -------- -------- -------- --------
Costs and Expenses:
Operating 8,053 8,797 10,003 6,568 7,252
Administrative and
general 1,882 1,769 1,999 2,182 2,089
Depreciation and
amortization 1,714 1,264 1,264 1,264 1,264
-------- -------- -------- -------- --------
11,649 11,830 13,266 10,014 10,605
-------- -------- -------- -------- --------
Gains (Losses) on Asset
Dispositions and
Impairments, Net -- (100) -- 30 --
-------- -------- -------- -------- --------
Operating Income (Loss) $ 1,812 $ 421 $ (728) $ 1,698 $ 1,027
======== ======== ======== ======== ========
Other
Operating Revenues $ 6,338 $ 3,058 $ 204 $ -- $ --
-------- -------- -------- -------- --------
Costs and Expenses:
Operating 6,902 2,646 174 9 --
Administrative and
general 874 333 207 3 --
Depreciation and
amortization -- -- -- -- --
-------- -------- -------- -------- --------
7,776 2,979 381 12 --
-------- -------- -------- -------- --------
Gains on Asset
Dispositions 873 467 -- -- --
-------- -------- -------- -------- --------
Operating Income (Loss) $ (565) $ 546 $ (177) $ (12) $ --
======== ======== ======== ======== ========
Corporate and
Eliminations
Operating Revenues $ 9 $ (226) $ (703) $ (1,050) $ (1,071)
-------- -------- -------- -------- --------
Costs and Expenses:
Operating 23 (200) (693) (1,050) (883)
Administrative and
general 8,603 8,220 7,739 7,307 8,925
Depreciation and
amortization 207 207 453 442 742
-------- -------- -------- -------- --------
8,833 8,227 7,499 6,699 8,784
-------- -------- -------- -------- --------
Losses on Asset
Dispositions (1) -- -- -- --
-------- -------- -------- -------- --------
Operating Loss $ (8,825) $ (8,453) $ (8,202) $ (7,749) $ (9,855)
======== ======== ======== ======== ========
Contact Information: For additional information, contact
Timothy McKeand
Vice President
(954) 627-6380
www.seacorholdings.com