SOURCE: SEACOR Holdings Inc.

February 19, 2008 18:42 ET

SEACOR Holdings Announces Fourth Quarter Results

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)
                          ========  ========  ========  ========  ========

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