EXHIBIT 99.1
[Logo]
PRESS RELEASE
SEACOR SMIT ANNOUNCES FIRST QUARTER RESULTS
HOUSTON, TEXAS
April 25, 2003
FOR IMMEDIATE RELEASE -- SEACOR SMIT Inc. (NYSE:CKH) announced net earnings for
the first quarter ended March 31, 2003 of $4,344,000, or $0.22 per diluted
share, on operating revenues of $96,860,000. In the comparable quarter ended
March 31, 2002, SEACOR earned $11,406,000, or $0.55 per diluted share, on
operating revenues of $103,643,000.
Net earnings in the immediately preceding quarter ended December 31, 2002 were
$1,638,000, or $0.08 per diluted share, on operating revenues of $99,708,000.
The financial results for the first quarter ended March 31, 2003 as compared to
the immediately preceding quarter ended December 31, 2002 were impacted, on a
pre-tax basis, by a variety of factors highlighted below:
o DECREASED VESSEL UTILIZATION AND RATES PER DAY WORKED. Lower
utilization and rates per day worked resulted in an approximate $7.9
million decline in operating revenues.
o CHANGE IN FLEET SIZE AND COMPOSITION. Net vessel dispositions resulted
in a $0.5 million decline in operating revenues.
o DECREASED VESSEL OPERATING EXPENSES. Reduced utilization and lower
engine repair costs resulted in a $5.6 million decline in operating
expenses.
o DECREASED ADMINISTRATIVE EXPENSES. Excluding expenses associated with
Tex-Air Helicopters, Inc. ("Tex-Air"), a company acquired on December
31, 2002, administrative expenses decreased $0.9 million largely due
to lower performance based compensation costs. Included in the current
quarter was severance benefit expense of $0.3 million.
o OFFSHORE AVIATION BUSINESS. The acquisition of Tex-Air increased
operating revenues and operating expenses by $5.1 million and $4.5
million, respectively.
o INLAND RIVER BUSINESS. Operating income earned by the Company's inland
river business segment ("SCF Marine") declined $0.7 million due
primarily to seasonality. SCF Marine took delivery of thirty-one newly
constructed barges during the quarter.
o ENVIRONMENTAL SERVICE BUSINESS. The Company's environmental service
segment incurred an operating loss of $0.4 million in the first
quarter as compared to earning operating income of $0.2 million in the
fourth quarter. The decline was due to reduced spill response and
related activities.
o DEBT EXTINGUISHMENT EXPENSES. The write-off of unamortized deferred
financing costs and repayment premium associated with the redemption
of the Company's 5 3/8% Notes totaled $1.1 million.
o INCREASED INCOME FROM EQUIPMENT SALES. The sale of eight vessels
contributed to an income increase of $2.1 million.
o IMPROVED RESULTS FROM DERIVATIVE TRANSACTIONS. The mark-to-market
accounting of certain costless collar transactions and other
derivative activities increased income by $4.2 million.
o INCREASED GAINS FROM THE SALE OF MARKETABLE SECURITIES. Gains from the
sale of marketable securities, reported in "Other, net," increased
$1.7 million.
Overall operating revenues decreased $2,848,000, or 2.9%, from the fourth
quarter. Reduced vessel utilization and rates per day worked and the effect of
the Tex-Air acquisition, as previously described, were the most significant
factors impacting operating revenues. Demand for vessels in the U.S. Gulf of
Mexico further declined during the first quarter of 2003 due to low levels of
exploration activities. All U.S. vessel classes worked fewer days, and a large
anchor handling towing supply vessel experienced downtime due to major repairs.
Rates per day worked were lower in the U.S. for anchor handling towing supply
and supply and towing supply vessels. Utilization and rates per day worked for
North Sea vessels also declined between quarters. Two large North Sea anchor
handling towing supply vessels were sold in the first quarter.
Overall fleet utilization declined from 76.8% in the fourth quarter to 76.2% in
the current period. An overall improvement in anchor handling towing supply,
crew, and mini-supply vessel classes was offset by a decline in supply and
towing supply, standby safety, and utility vessel classes. At March 31, 2003,
the Company had 35 vessels out of service: 17 utility, 9 crew, 5 supply, and one
each of the anchor handling towing supply, standby safety, mini-supply, and
geophysical classes.
The Company's offshore marine fleet declined from 301 vessels at the end of the
prior quarter to 288 at March 31, 2003. Eight vessels were sold, one of which
was acquired by a joint venture, and the Company took delivery of a new crew
vessel. One vessel chartered-in by the Company was redelivered, and joint
ventures sold or redelivered 3 vessels. At the beginning of the quarter, the
Company retired 3 additional utility vessels from service.
The Company's inland river barge fleet increased by 31 units in the current
quarter, but operating revenues decreased $155,000 to $4,840,000, or 3.1%, from
the fourth quarter due to lower seasonal freight rates. Operating income
declined $696,000 to $884,000, or 44.1% from the prior quarter due to the
reduction in revenue and higher administrative and general and depreciation
expense.
Overall operating income declined $2,698,000, or 72.1%, from the fourth quarter
due primarily to those factors as detailed above.
Net interest expense remained constant between quarters as lower interest income
was offset by lower interest expense. In the first quarter, the Company retired
$58,633,000 of debt; and following quarter end, additional debt was repaid,
totaling (pound)7,500,000, or $11,712,000.
In order to partially hedge the fluctuation in market value for part of the
Company's common stock position in ENSCO International Incorporated ("ENSCO")
that resulted from the merger of Chiles Offshore Inc. and ENSCO, the Company
entered into various transactions (commonly known as "costless collars") during
2002 with a major financial institution on 1,000,000 shares of ENSCO common
stock. The effect of these transactions is that the Company will be guaranteed a
minimum and maximum value per share of ENSCO, at expiration. The Company
establishes the fair value of the costless collar at the end of each reporting
period, and the change in value is reported as derivative income or loss. The
change in the value of these costless collars increased derivative income
between quarters by $5,334,000.
Equity interest in the earnings of 50% or less owned companies increased
$249,000 between quarters. The Company's interest in the net losses of Globe
Wireless, L.L.C., a marine telecommunications investment, totaled $353,000, or
$0.02 per diluted share.
During the first quarter of 2003, the Company acquired a total of 403,990 shares
of its common stock for treasury at an aggregate cost of $14,310,000. At March
31, 2003, cash and cash equivalents, marketable securities and construction
reserve funds totaled $498,000,000. Long-term debt was $343,000,000.
SEACOR and its subsidiaries are engaged in the operation of a diversified fleet
of offshore support vessels that service oil and gas exploration and development
activities in the U.S. Gulf of Mexico, the North Sea, West Africa, Asia, Latin
America and other international regions. Other business activities include
environmental services, inland river operations and helicopter transportation
services to the oil and gas industry mainly in the U.S. Gulf of Mexico.
This release includes "forward-looking statements" as described in the Private
Securities Litigation Reform Act of 1995. Statements herein that describe the
Company's expectations, strategic objectives, business prospects, anticipated
economic performance and financial condition and other similar matters involve
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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: general economic and business
conditions, the cyclical nature of our business, adequacy of insurance coverage,
currency exchange fluctuations, changes in foreign political, military and
economic conditions, the ongoing need to replace aging vessels, 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, industry fleet capacity, changes
in foreign and domestic oil and gas exploration and production activity,
competition, regulatory initiatives, customer preferences, marine-related risks,
effects of adverse weather conditions and seasonality on the Company's offshore
aviation business, helicopter related risks, effects of adverse weather and
river conditions and seasonality on inland river operations, the level of grain
export volume, variability in freight rates for inland river barges and various
other matters, many of which are beyond the Company's control and other factors.
The words "estimate," "project," "intend," "believe," "plan" and similar
expressions are intended to identify forward-looking statements. Forward-looking
statements included in this release speak only as of the date of this release
and SEACOR 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 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 Randall Blank, Executive Vice President and
Chief Financial Officer, at (281) 899-4800 or (212) 307-6633 or visit SEACOR's
website at www.seacorsmit.com.
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SEACOR SMIT INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT SHARE DATA, UNAUDITED)
Three Months Ended
March 31,
-----------------------------------
2003 2002
-------------- --------------
Operating Revenues $ 96,860 $ 103,643
-------------- --------------
Costs and Expenses:
Operating expenses 67,100 57,156
Administrative and general 14,079 12,360
Depreciation and amortization 14,636 13,876
-------------- --------------
95,815 83,392
-------------- --------------
Operating Income 1,045 20,251
-------------- --------------
Other Income (Expense):
Interest on debt (5,506) (4,001)
Interest income 2,556 1,867
Debt extinguishment (1,125) -
Income from equipment sales or retirements, net 5,147 2,299
Derivative income (loss), net 1,749 (772)
Other, net 2,729 (4,325)
-------------- --------------
5,550 (4,932)
-------------- --------------
Income Before Income Taxes, Minority Interest and Equity in Earnings
of 50% or Less Owned Companies 6,595 15,319
Income Tax Expense 2,399 5,243
-------------- --------------
Income Before Minority Interest and Equity in Earnings of 50% or Less
Owned Companies 4,196 10,076
Minority Interest in Net Income of Subsidiaries (98) (93)
Equity in Earnings of 50% or Less Owned Companies 246 1,423
-------------- --------------
Net Income $ 4,344 $ 11,406
============== ==============
Basic Earnings Per Common Share $ 0.22 $ 0.57
============== ==============
Diluted Earnings Per Common Share $ 0.22 $ 0.55
============== ==============
Weighted Average Common Shares:
Basic 19,775,194 20,039,130
Diluted 20,362,120 21,350,345
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OFFSHORE MARINE FLEET
OPERATING STATISTICS
Three Months Ended
March 31,
----------------------------------
2003 2002
-------------- ---------------
RATES PER DAY WORKED - WORLDWIDE ($):
Supply and Towing Supply 7,712 7,986
Anchor Handling Towing Supply 11,963 13,108
Crew 3,158 3,293
Standby Safety 6,537 5,404
Utility 1,767 1,753
Mini-Supply 3,102 2,737
Geophysical, Freight and Other(1) - -
OVERALL UTILIZATION - WORLDWIDE (%):
Supply and Towing Supply 79.9 88.8
Anchor Handling Towing Supply 82.6 87.2
Crew 78.9 85.4
Standby Safety 81.6 88.0
Utility(2) 55.1 59.6
Mini-Supply 86.8 85.4
Geophysical, Freight and Other(1) - -
Overall Offshore Marine Fleet 76.2 80.6
FLEET COMPOSITION AT PERIOD END:
Supply and Towing Supply 69 77
Anchor Handling Towing Supply 26 34
Crew 92 95
Standby Safety 26 31
Utility(2) 41 49
Mini-Supply 32 26
Geophysical, Freight and Other 2 3
-------------- ---------------
Total Offshore Marine Fleet 288 315
============== ===============
--------------------------
(1) Vessels in this class were out of service during all reported periods.
(2) Statistics exclude vessels retired from service in the applicable
periods - 16 utility vessels at March 31, 2003.
OTHER BUSINESS SEGMENTS
Three Months Ended
March 31,
----------------------------------
2003 2002
--------------- ---------------
INLAND RIVER SEGMENT - NO. OF BARGES:
Owned 326 133
Joint Ventured 11 11
Managed 225 202
--------------- ---------------
Total Barge Fleet 562 346
=============== ===============
OFFSHORE AVIATION SEGMENT: - NO. OF HELICOPTERS:
Single engine 31 n.a.
Twin engine 4 n.a.
--------------- ---------------
Total Helicopter Fleet 35 n.a.
=============== ===============
Total Flight Hours 5,061 n.a.
=============== ===============
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SEACOR SMIT INC. AND SUBSIDIARIES
SUPPLEMENTARY FINANCIAL AND OPERATIONAL DATA
(IN THOUSANDS, EXCEPT SHARE AND OPERATIONAL DATA, UNAUDITED)
Quarter Ended
-----------------------------------------------------------------------------------------
Mar. 31, Dec. 31, Sep. 30, Jun. 30, Mar. 31,
INCOME STATEMENT: 2003 2002 2002 (1) 2002 2002
-------------- ---------------- -------------- -------------- --------------
Operating Revenues $ 96,860 $ 99,708 $ 102,137 $ 97,670 $ 103,643
-------------- ---------------- -------------- -------------- --------------
Cost and Expenses:
Operating Expenses 67,100 67,306 64,297 61,133 57,156
Administrative and General 14,079 14,668 13,434 12,803 12,360
Depreciation and Amortization 14,636 13,991 14,381 13,996 13,876
-------------- ---------------- -------------- -------------- --------------
95,815 95,965 92,112 87,932 83,392
-------------- ---------------- -------------- -------------- --------------
Operating Income 1,045 3,743 10,025 9,738 20,251
Net Interest Expense (2,950) (2,943) (1,460) (1,694) (2,134)
Debt Extinguishment (1,125) - (2,339) - -
Income from Equipment Sales, net 5,147 3,077 2,321 938 2,299
Gain from Chiles Merger - - 19,719 - -
Derivative Income (Loss), net 1,749 (2,424) (3,251) 1,404 (772)
Other, net 2,729 1,486 5,584 6,898 (4,325)
-------------- ---------------- -------------- -------------- --------------
Income Before Income Taxes, Minority
Interest and Equity Earnings 6,595 2,939 30,599 17,284 15,319
Income Tax Expense 2,399 1,266 10,368 6,156 5,243
-------------- ---------------- -------------- -------------- --------------
Income Before Minority Interest and
Equity Earnings 4,196 1,673 20,231 11,128 10,076
Minority Interest (98) (32) (6) (95) (93)
Equity Earnings 246 (3) 1,070 1,215 1,423
-------------- ---------------- -------------- -------------- --------------
Net Income $ 4,344 $ 1,638 $ 21,295 $ 12,248 $ 11,406
============== ================ ============== ============== ==============
WEIGHTED AVERAGE COMMON SHARES:
Basic 19,775,194 19,823,095(2) 20,051,743 20,078,231 20,039,130
Diluted 20,362,120 20,032,229(2) 21,186,390 21,393,472 21,350,345
DILUTED EARNINGS PER COMMON SHARE $ 0.22 $ 0.08 $ 1.02 $ 0.59 $ 0.55
BALANCE SHEET:
Cash, Marketable Securities and
Construction Reserve Funds $ 498,076 $ 525,931 $ 536,950 $ 260,321 $ 264,305
Total Assets 1,398,641 1,487,107 1,467,396 1,293,455 1,283,952
Long-term Debt 343,058 402,118 401,347 257,383 256,572
Stockholders' Equity 789,971 804,951 804,227 784,127 765,979
RATES PER DAY WORKED - WORLDWIDE ($):
Supply and Towing Supply 7,712 7,834 8,153 7,964 7,986
Anchor Handling Towing Supply 11,963 14,109 13,144 12,103 13,108
Crew 3,158 3,148 3,200 3,224 3,293
Standby Safety 6,537 6,288 6,268 5,726 5,404
Utility 1,767 1,762 1,761 1,744 1,753
Mini-Supply 3,102 2,983 2,918 2,749 2,737
Geophysical, Freight and Other (3) - - - - -
OVERALL UTILIZATION - WORLDWIDE (%):(4)
Supply and Towing Supply 79.9 85.7 88.9 89.0 88.8
Anchor Handling Towing Supply 82.6 73.1 72.9 79.1 87.2
Crew 78.9 78.3 76.3 81.8 85.4
Standby Safety 81.6 88.5 88.2 84.8 88.0
Utility 55.1 58.0 62.4 62.3 59.6
Mini-Supply 86.8 86.2 90.0 85.9 85.4
Geophysical, Freight and Other (3) - - - - -
Overall Offshore Marine Fleet 76.2 76.8 77.7 79.1 80.6
FLEET COMPOSITION AT PERIOD END:(4)
Supply and Towing Supply 69 71 69 74 77
Anchor Handling Towing Supply 26 28 30 32 34
Crew 92 96 95 95 95
Standby Safety 26 26 28 28 31
Utility 41 45 48 48 49
Mini-Supply 32 33 28 26 26
Geophysical, Freight and Other 2 2 2 3 3
-------------- ---------------- -------------- -------------- --------------
Total Offshore Marine Fleet 288 301 300 306 315
============== ================ ============== ============== ==============
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(1) A previously reported extraordinary loss resulting from the extinguishment
of debt has been reclassified to operating results pursuant to Statement of
Financial Accounting Standards No. 145.
(2) The assumed conversion of the Company's convertible notes into shares of
common stock has been excluded from the computation of diluted earnings per
share in the three month period ended December 31, 2002 as the effect was
antidilutive. In the same period, such shares were also excluded from the
calculation of diluted weighted average common shares outstanding.
(3) Vessels in this class were out of service during all reported periods.
(4) Statistics exclude vessels retired from service in the applicable periods -
16 utility vessels at March 31, 2003.
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