SOURCE: SEACOR Holdings Inc.

October 26, 2006 17:15 ET

SEACOR Holdings Announces Third Quarter Results

FORT LAUDERDALE, FL -- (MARKET WIRE) -- October 26, 2006 -- SEACOR Holdings Inc. (NYSE: CKH) announced net income for the third quarter ended September 30, 2006 of $63.2 million, or $2.28 per diluted share, on operating revenues of $349.4 million. For the nine months ended September 30, 2006, net income was $176.0 million, or $6.32 per diluted share, on operating revenues of $986.3 million.

For the third quarter ended September 30, 2005, net income was $20.5 million, or $0.76 per diluted share, on operating revenues of $294.9 million. For the nine months ended September 30, 2005, net income was $64.2 million, or $2.81 per diluted share, on operating revenues of $637.9 million. The results for the three and nine months ended September 30, 2005 include the 2005 third quarter results of Seabulk International, Inc. which was acquired by the Company on July 1, 2005.

For the immediately preceding quarter ended June 30, 2006, the Company reported net income of $62.8 million, or $2.24 per diluted share, on operating revenues of $331.0 million.

Highlights for the Quarter

Offshore Marine Services -- Operating Income in the third quarter was $70.6 million on operating revenues of $179.7 million compared to operating income of $70.8 million on operating revenues of $168.3 million in the preceding quarter. Third quarter results included $10.2 million in gains on asset dispositions compared to $22.5 million in gains in the preceding quarter.

Overall fleet utilization was slightly higher in the third quarter at 87.7% compared to 86.8% in the preceding quarter. In the third quarter the number of days available for charter was lower by 934 days, or 4.3% as a result of a net reduction in the overall fleet count.

The improvement in operating revenues was primarily driven by a 10.4% increase in average day rates from $8,663 per day to $9,564 per day. The most significant improvements were in the Gulf of Mexico and West Africa, where average day rates increased by 10.4% and 14.8%, respectively.

Operating expenses in the third quarter were $89.8 million, an increase of $3.1 million over the previous quarter. The majority of the increase related to higher insurance costs, expenses incurred in the mobilization of three vessels between regions and higher wage costs in the Gulf of Mexico.

Marine Transportation Services -- Operating income in the third quarter was $3.4 million on operating revenues of $35.6 million compared to operating income of $8.2 million on operating revenues of $37.4 million in the preceding quarter.

Operating revenues decreased primarily due to one vessel being off-hire for a regulatory docking and an overall decrease in contract of affreightment revenue.

Operating expenses increased $3.0 million primarily due to higher general maintenance and repair expenses and insurance costs and a $1.6 million regulatory docking during the quarter.

Inland River Services -- Operating income in the third quarter was $15.4 million on operating revenues of $38.8 million compared to operating income of $13.6 million on operating revenues of $36.3 million in the preceding quarter.

Operating revenues increased primarily due to improved spot and charter rates. Operating expenses were comparable with the preceding quarter as increased towing costs and vendor service charges were offset by a reduction in charter-in expenses. During the quarter the company returned 158 barges that had been chartered-in on a multi-year arrangement.

Aviation Services -- Operating income in the third quarter was $3.7 million on operating revenues of $43.8 million compared to an operating income of $3.8 million on operating revenues of $39.9 million in the preceding quarter. Third quarter results included $1.9 million in gains on asset dispositions compared to $1.8 million in gains in the preceding quarter.

Operating expenses increased $4.1 million primarily due to wage and training costs in preparation of new contracts, fuel costs due to increased flight hours and repair and maintenance expenses incurred for overhauls on major components completed in the third quarter.

Environmental Services -- Operating income in the third quarter was $5.9 million on operating revenues of $38.9 million compared to operating income of $4.5 million on operating revenues of $36.9 million in the preceding quarter.

The improvement in operating income was primarily due to higher revenues from retainer service contracts and increased project management and consulting activity.

Derivative Transactions -- Derivative transactions, primarily consisting of interest rate swaps and foreign currency contracts, resulted in gains of $2.8 million in the third quarter compared to gains of $3.1 million in the preceding quarter.

Foreign Currency Transactions -- Foreign currency transaction gains were $0.7 million in the third quarter compared to gains of $1.2 million in the preceding quarter.

Marketable Security Transactions -- Marketable security and short sale transactions resulted in gains of $4.5 million in the third quarter compared to losses of $3.3 million in the preceding quarter.

Equity in Earnings of 50% or Less owned Companies -- Earnings were $2.6 million in the third quarter compared to $6.0 million in the preceding quarter. In the second quarter one of the Company's offshore marine joint ventures sold a vessel to a third party and the Company's share of the gain on the sale was $4.2 million.

Capital Commitments -- The Company's unfunded capital commitments as of September 30, 2006 consisted primarily of marine service vessels, harbor tugs, helicopters, barges and capital improvements to certain of the existing marine transportation fleet and totaled $685.8 million, of which $474.8 million is payable in 2006 and 2007, with the remaining balance payable through 2009. Of these commitments, approximately $183.8 million may be terminated without further liability other than the payment of liquidated damages of $9.9 million in the aggregate. As of September 30, 2006 the Company held balances of Cash, Cash Equivalents, Restricted Cash, Securities, Construction Reserve Funds and Title XI Reserve Funds totaling $839.1 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 Aviation 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.

For additional information, contact Timothy McKeand, Vice President, at (954) 524-4200 ext. 820 or visit SEACOR's website at www.seacorholdings.com.

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


                           Three Months Ended      Nine Months Ended
                              September 30,          September 30,
                        ------------------------  -----------------------
                            2006         2005         2006        2005
                        -----------  -----------  -----------  -----------

Operating Revenues      $   349,361  $   294,869  $   986,262  $   637,885
                        -----------  -----------  -----------  -----------

Costs and Expenses:
  Operating expenses        196,608      180,136      553,401      412,916
  Administrative and
   general                   30,880       31,115       95,238       68,939
  Depreciation and
   amortization              40,977       46,535      126,555       83,309
                        -----------  -----------  -----------  -----------
                            268,465      257,786      775,194      565,164
                        -----------  -----------  -----------  -----------

Gains (Losses) on Asset
 Dispositions and
 Impairments, Net            12,054        (618)       57,020       14,710
                        -----------  -----------  -----------  -----------

Operating Income             92,950       36,465      268,088       87,431
                        -----------  -----------  -----------  -----------

Other Income (Expense):
  Interest income            10,279        4,754       26,501       12,917
  Interest expense          (13,307)     (16,541)     (40,222)     (31,682)
  Derivative
   transaction gains
   (losses), net              2,813       (4,425)        3,085      (6,193)
  Foreign currency
   transaction gains,
   net                          650        2,436        2,026        6,288
  Marketable security
   transaction gains
   (losses), net              4,549       10,388       (2,377)      25,124
  Other, net                    117          891          740        1,531
                        -----------  -----------  -----------  -----------
                              5,101       (2,497)     (10,247)       7,985
                        -----------  -----------  -----------  -----------
Income from Continuing
 Operations Before
 Income Tax Expense,
 Minority Interest in
 (Income) Loss of
 Subsidiaries and
 Equity In Earnings of
 50% or Less Owned
 Companies                   98,051       33,968      257,841       95,416
Income Tax Expense           37,037       13,894       96,171       36,082
                        -----------  -----------  -----------  -----------
Income from Continuing
 Operations Before
 Minority Interest in
 (Income) Loss of
 Subsidiaries and
 Equity in Earnings of
 50% or Less Owned
 Companies                   61,014       20,074      161,670       59,334
Minority Interest in
 (Income) Loss of
 Subsidiaries                  (451)         223         (638)         103
Equity in Earnings of
 50% or Less Owned
 Companies                    2,607          200       15,007        4,411
                        -----------  -----------  -----------  -----------
Income from Continuing
 Operations                  63,170       20,497      176,039       63,848
Income from
 Discontinued
 Operations, Net of Tax           —            —            —          364
                        -----------  -----------  -----------  -----------
Net Income              $    63,170  $    20,497  $   176,039  $    64,212
                        ===========  ===========  ===========  ===========

Basic Earnings Per
 Common Share:
  Income from
   Continuing
   Operations           $      2.57  $      0.83  $      7.11  $      3.12
  Income from
   Discontinued
   Operations                     —            —            —         0.01
                        -----------  -----------  -----------  -----------
  Net Income            $      2.57  $      0.83  $      7.11  $      3.13
                        ===========  ===========  ===========  ===========

Diluted Earnings Per
 Common Share:
  Income from
   Continuing
   Operations           $      2.28  $      0.76  $      6.32  $      2.79
  Income from
   Discontinued
   Operations                     —            —            —         0.02
                        -----------  -----------  -----------  -----------
  Net Income            $      2.28  $      0.76  $      6.32  $      2.81
                        ===========  ===========  ===========  ===========

Weighted Average Common
 Shares Outstanding:
  Basic                      24,575       24,789       24,743       20,486
  Diluted                    28,282       28,562       28,448       24,151



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



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

Operating Revenues   $ 349,361  $ 330,986  $ 305,915  $ 334,119  $ 294,869
                     ---------  ---------  ---------  ---------  ---------

Costs and Expenses:
  Operating expenses   196,608    187,149    169,644    177,012    180,136
  Administrative and
   general              30,880     32,865     31,493     36,256     31,115
  Depreciation and
   amortization         40,977     42,318     43,260     44,405     46,535
                     ---------  ---------  ---------  ---------  ---------
                       268,465    262,332    244,397    257,673    257,786
                     ---------  ---------  ---------  ---------  ---------

Gains (Losses) on
 Asset Dispositions
 and Impairments,Net    12,054     24,089     20,877     13,575       (618)
                     ---------  ---------  ---------  ---------  ---------

Operating Income        92,950     92,743     82,395     90,021     36,465
                     ---------  ---------  ---------  ---------  ---------

Other Income
 (Expense):
Interest income         10,279      9,086      7,136      6,284      4,754
Interest expense       (13,307)   (12,847)   (14,068)   (16,470)   (16,541)
  Derivative
   transaction gains
   (losses), net         2,813      3,084     (2,812)      (881)    (4,425)
  Foreign currency
   transaction
   gains, net              650      1,217        159     16,895      2,436
  Marketable
   security
   transaction gains
   (losses), net         4,549     (3,341)    (3,585)     2,957     10,388
  Other, net               117        595         28        176        891
                     ---------  ---------  ---------  ---------  ---------
                         5,101     (2,206)   (13,142)     8,961     (2,497)
                     ---------  ---------  ---------  ---------  ---------
Income Before Income
 Tax Expense
 (Benefit), Minority
 Interest in (Income)
 Loss of
 Subsidiaries and
 Equity In Earnings
 of 50% or Less
 Owned Companies        98,051     90,537     69,253     98,982     33,968
Income Tax Expense
 (Benefit)              37,037     33,703     25,431     (6,336)    13,894
                     ---------  ---------  ---------  ---------  ---------
Income Before
 Minority Interest
 in (Income) Loss of
 Subsidiaries and
 Equity in Earnings
 of 50% or Less
 Owned Companies        61,014     56,834     43,822    105,318     20,074
Minority Interest in
 (Income) Loss of
 Subsidiaries             (451)      (104)       (83)       (71)       223
Equity in Earnings
 of 50% or Less
 Owned Companies         2,607      6,031      6,369      1,250        200
                     ---------  ---------  ---------  ---------  ---------
Net Income           $  63,170  $  62,761  $  50,108  $ 106,497  $  20,497
                     =========  =========  =========  =========  =========

Basic Earnings Per
 Common Share        $    2.57  $    2.52  $    2.02  $    4.28  $    0.83

Diluted Earnings Per
 Common Share        $    2.28  $    2.24  $    1.80  $    3.76  $    0.76

Weighted Average
 Common Shares
 Outstanding:
  Basic                 24,575     24,869     24,767     24,884     24,789
  Diluted               28,282     28,568     28,495     28,618     28,562
Common Shares
 Outstanding at
 Period End             24,457     24,801     25,076     24,819     25,009



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


                                    Three Months Ended
                     ----------------------------------------------------
                      Sep. 30,  Jun. 30,   Mar. 31,   Dec. 31,   Sep. 30,
                        2006       2006       2006       2005      2005
                     ---------  ---------  ---------  ---------  ---------
Offshore Marine
 Services
Operating Revenues   $  179,687 $ 168,285  $ 159,852  $ 168,823  $ 146,842
                     ---------- ---------  ---------  ---------  ---------
Costs and Expenses:
  Operating expenses     89,791    86,695     79,506     85,377     82,726
  Administrative and
   general               10,118    11,470     11,688     12,809     11,290
  Depreciation and
   amortization          19,353    21,793     23,127     22,772     25,040
                     ---------- ---------  ---------  ---------  ---------
                        119,262   119,958    114,321    120,958    119,056
                     ---------- ---------  ---------  ---------  ---------

Gains on Asset
 Dispositions and
 Impairments, Net        10,168    22,489     20,552      6,578       (905)
                     ---------- ---------  ---------  ---------  ---------
Operating Income     $   70,593 $  70,816  $  66,083  $  54,443  $  26,881
                     ========== =========  =========  =========  =========

Marine
 Transportation
 Services
Operating Revenues   $   35,617 $  37,446  $  37,724  $  36,625  $  35,723
                     ---------- ---------  ---------  ---------  ---------
Costs and Expenses:
  Operating expenses     21,017    18,064     21,471     17,677     24,692
  Administrative and
   general                1,064     1,049        964        874        705
  Depreciation and
   amortization          10,159    10,162     10,185     11,641     11,663
                     ---------- ---------  ---------  ---------  ---------
                         32,240    29,275     32,620     30,192     37,060
                     ---------- ---------  ---------  ---------  ---------

Gains on Asset
 Dispositions                 —         —          —          —          —
                     ---------- ---------  ---------  ---------  ---------
Operating Income
 (Loss)              $    3,377 $   8,171  $   5,104  $   6,433  $  (1,337)
                     ========== =========  =========  =========  =========

Inland River
 Services
Operating Revenues   $   38,798 $  36,339  $  34,488  $  40,666  $  29,702
                     ---------- ---------  ---------  ---------  ---------
Costs and Expenses:
  Operating expenses     18,563    18,649     15,395     18,498     17,203
  Administrative and
   general                1,013       829        816        691        644
  Depreciation and
   amortization           3,804     3,267      3,474      3,479      3,151
                     ---------- ---------  ---------  ---------  ---------
                         23,380    22,745     19,685     22,668     20,998
                     ---------- ---------  ---------  ---------  ---------

Gains on Asset
 Dispositions                 —         —          —          —          —
                     ---------- ---------  ---------  ---------  ---------
Operating Income     $   15,418 $  13,594  $  14,803  $  17,998  $   8,704
                     ========== =========  =========  =========  =========

Aviation Services
Operating Revenues   $   43,799 $  39,903  $  33,454  $  38,856  $  43,949
                     ---------- ---------  ---------  ---------  ---------
Costs and Expenses:
  Operating expenses     33,269    29,137     26,345     26,960     30,583
  Administrative and
   general                3,413     4,158      3,494      4,571      3,579
  Depreciation and
   amortization           5,264     4,591      4,254      4,199      4,212
                     ---------- ---------  ---------  ---------  ---------
                         41,946    37,886     34,093     35,730     38,374
                     ---------- ---------  ---------  ---------  ---------

Gains on Asset
 Dispositions             1,880     1,818        325      7,024        306
                     ---------- ---------  ---------  ---------  ---------
Operating Income
 (Loss)              $    3,733 $   3,835  $    (314) $  10,150  $   5,881
                     ========== =========  =========  =========  =========

Environmental
 Services
Operating Revenues   $   38,885 $  36,946  $  27,923  $  37,583  $  27,466
                     ---------- ---------  ---------  ---------  ---------
Costs and Expenses:
  Operating expenses     26,370    26,345     20,508     21,852     17,400
  Administrative and
   general                5,931     5,156      4,405      4,669      4,546
  Depreciation and
   amortization             731       741        733        664        901
                     ---------- ---------  ---------  ---------  ---------
                         33,032    32,242     25,646     27,185     22,847
                     ---------- ---------  ---------  ---------  ---------

Gains (Losses) on
 Asset Dispositions
 and Impairments,
 Net                          6      (215)         —        (27)       (19)
                     ---------- ---------  ---------  ---------  ---------
Operating Income     $    5,859 $   4,489  $   2,277  $  10,371  $   4,600
                     ========== =========  =========  =========  =========



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

                                    Three Months Ended
                     ----------------------------------------------------
                      Sep. 30,  Jun. 30,   Mar. 31,   Dec. 31,   Sep. 30,
                        2006       2006       2006       2005      2005
                     ---------  ---------  ---------  ---------  ---------
Harbor and Offshore
 Towing  Services
Operating Revenues   $  12,552  $  12,156  $  12,884  $  11,949  $  11,343
                     ---------  ---------  ---------  ---------  ---------
Costs and Expenses:
  Operating expenses     7,744      8,336      6,841      7,043      7,673
  Administrative and
   general               1,662      1,851      1,604      1,663      1,333
  Depreciation and
   amortization          1,265      1,275      1,259      1,303      1,226
                     ---------  ---------  ---------  ---------  ---------
                        10,671     11,462      9,704     10,009     10,232
                     ---------  ---------  ---------  ---------  ---------

Gains on Asset
 Dispositions                —          —          —          —          —
                     ---------  ---------  ---------  ---------  ---------
Operating Income     $   1,881  $     694  $   3,180  $   1,940  $   1,111
                     =========  =========  =========  =========  =========

Corporate and
 Eliminations
Operating Revenues   $      23  $     (89) $    (410) $    (383) $    (156)
                     ---------  ---------  ---------  ---------  ---------
Costs and Expenses:
  Operating expenses      (146)       (77)      (422)      (395)      (141)
  Administrative and
   general               7,679      8,352      8,522     10,979      9,018
  Depreciation and
   amortization            401        489        228        347        342
                     ---------  ---------  ---------  ---------  ---------
                         7,934      8,764      8,328     10,931      9,219
                     ---------  ---------  ---------  ---------  ---------

Losses on Asset
 Dispositions                —         (3)         —          —          —
                     ---------  ---------  ---------  ---------  ---------
Operating Loss       $  (7,911) $  (8,856) $  (8,738) $ (11,314) $  (9,375)
                     =========  =========  =========  =========  =========




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


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

Cash, Cash Equivalents,
 Restricted
 Cash, Securities,
 Construction Reserve
 Funds, and Title
 XI Reserve Funds   $ 839,057 $ 803,360 $ 764,649 $ 684,521 $ 664,164
Receivables           282,040   278,000   270,794   260,831   267,108
Current Assets        893,813   915,245   900,488   839,091   867,290
Net Property and
 Equipment          1,764,990 1,737,811 1,733,757 1,759,393 1,784,083
Total Assets        3,076,296 3,014,963 2,961,627 2,885,141 2,959,169
Current Portion
 of Long-term
 Debt and
 Capital Lease
 Obligations           10,443     8,970    10,420    10,505    13,164
Current Liabilities   287,872   287,797   280,279   247,906   209,396
Long-term Debt
 & Capital
 Lease Obligations    964,567   955,567   964,096   977,635 1,126,431
Stockholders’
 Equity             1,493,036 1,458,302 1,418,190 1,361,305 1,280,028

Contact Information

  • For additional information, contact
    Timothy McKeand
    Vice President
    (954) 524-4200 ext. 820
    www.seacorholdings.com