EXHIBIT 99.1
PRESS RELEASE
SEACOR SMIT ANNOUNCES THIRD QUARTER RESULTS
HOUSTON, TEXAS
November 4, 2003
FOR IMMEDIATE RELEASE -- SEACOR SMIT Inc. (NYSE:CKH) announced net earnings for
the third quarter ended September 30, 2003 of $2.9 million, or $0.15 per diluted
share, on operating revenues of $103.2 million. For the nine months ended
September 30, 2003, net earnings were $13.7 million, or $0.71 per diluted share,
on operating revenues of $305.3 million.
For the third quarter ended September 30, 2002, net earnings were $21.3 million,
or $1.02 per diluted share, on operating revenues of $102.1 million. For the
nine months ended September 30, 2002, net earnings were $44.9 million, or $2.16
per diluted share, on operating revenues of $303.5 million.
For the quarter ended June 30, 2003, net earnings were $6.4 million, or $0.33
per diluted share, on operating revenues of $105.2 million.
Financial results for the third quarter ended September 30, 2003 as compared to
the immediately preceding quarter were impacted, on a pre-tax basis, by a
variety of factors highlighted below and described in greater detail in
subsequent paragraphs and tables in this release.
o DECREASED OPERATING REVENUES. Operating revenues decreased $1.9
million. Reduced fees and services provided on a major environmental
project that began in the first quarter and lower demand for
helicopter services decreased revenues. These declines were
partially offset by higher revenues earned by barges and offshore
marine vessels added to the Company's fleet.
o DECREASED OPERATING INCOME. Operating income decreased $4.8 million.
In addition to those factors affecting revenues, operating income
declined in part due to higher North Sea crew wage costs,
unscheduled repair costs mostly reflecting insurance deductibles,
additional expenses associated with planned overhauls and "start-up"
costs associated with the charter-in of 166 additional barges.
o DECREASED DEBT EXTINGUISHMENT EXPENSE. Prior quarter results
included a $1.0 million charge against income for the write-off of
unamortized discount upon debt repayment.
o INCREASED INCOME FROM EQUIPMENT SALES. The sale of additional
vessels in the third quarter resulted primarily in the $1.9 million
increase in equipment sale income.
o DECREASED RESULTS FROM DERIVATIVE TRANSACTIONS. The mark-to-market
accounting of derivative transactions decreased other income by $3.1
million.
o OTHER, NET. Other income declined $1.1 million resulting primarily
from foreign currency accounting losses, partially offset by higher
security sale gains and the non-recurrence of an investment
impairment charge of the prior quarter.
The Company's offshore marine fleet declined from 283 vessels at the end of the
prior quarter to 279 at September 30, 2003. During the quarter, the Company sold
11 vessels, 4 of which were leased-back, and took delivery of 2 newly
constructed crew vessels. Additional fleet change information is described in
the attached supplementary operational data schedule.
The Company's inland river hopper barge fleet grew from 559 units at the end of
the prior quarter to 735 units at September 30, 2003 primarily due to the
charter-in of 166 barges in the current quarter.
Derivative results in the second and third quarters primarily related to swap
agreements with respect to $41.0 million notional amount of the Company's 7.2%
Senior Notes due 2009. The Company recognizes unrealized income or loss based on
the fair value of such swap agreements.
Equity in earnings of 50% or less owned companies increased $0.6 million between
quarters. Offshore marine and marine telecommunication joint venture earnings
were higher and a newly formed offshore marine joint venture commenced
operations. Third quarter results included a $1.0 million charge against equity
earnings for U.S. income taxes payable on dividends received from a foreign
joint venture.
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
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 Nine Months Ended
September 30, September 30,
--------------------------------- ------------------------------
2003 2002 2003 2002
--------------- --------------- ------------- --------------
Operating Revenues.......................................... $ 103,234 $ 102,137 $ 305,253 $ 303,450
--------------- --------------- ------------- --------------
Costs and Expenses:
Operating expenses....................................... 72,264 64,297 208,786 182,586
Administrative and general............................... 13,676 13,434 41,146 38,597
Depreciation and amortization............................ 13,411 14,381 41,755 42,253
--------------- --------------- ------------- --------------
99,351 92,112 291,687 263,436
--------------- --------------- ------------- --------------
Operating Income............................................ 3,883 10,025 13,566 40,014
--------------- --------------- ------------- --------------
Other Income (Expense):
Interest on debt......................................... (4,603) (3,503) (14,528) (11,300)
Interest income.......................................... 1,540 2,043 5,966 6,012
Debt extinguishments..................................... - (2,338) (2,091) (2,338)
Income from equipment sales or retirements, net.......... 2,349 2,321 7,910 5,558
Gain from Chiles Merger.................................. - 19,719 - 19,719
Gain (loss) from derivative transactions, net............ (443) (3,251) 3,930 (2,619)
Gain (loss) from foreign currency transactions, net...... (1,714) 2,203 115 5,454
Gain (loss) from sale of marketable securities, net...... 2,411 3,377 5,852 2,699
Other, net............................................... (15) 4 (759) 4
--------------- --------------- ------------- --------------
(475) 20,575 6,395 23,189
--------------- --------------- ------------- --------------
Income Before Taxes, Minority Interest and Equity Earnings. 3,408 30,600 19,961 63,203
Income Tax Expense.......................................... 1,334 10,369 7,329 21,768
--------------- --------------- ------------- --------------
Income Before Minority Interest and Equity Earnings......... 2,074 20,231 12,632 41,435
Minority Interest in Income of Subsidiaries................. (112) (6) (451) (194)
Equity in Earnings of 50% or Less Owned Companies........... 935 1,070 1,503 3,708
--------------- --------------- ------------- --------------
Net Income.................................................. $ 2,897 $ 21,295 $ 13,684 $ 44,949
=============== =============== ============= ==============
Basic Earnings Per Common Share............................. $ 0.16 $ 1.06 $ 0.71 $ 2.24
=============== =============== ============= ==============
Diluted Earnings Per Common Share........................... $ 0.15 $ 1.02 $ 0.71 $ 2.16
=============== =============== ============= ==============
Weighted Average Common Shares:
Basic..................................................... 18,629,664 20,051,743 19,182,564 20,056,435
Diluted................................................... 18,785,256 21,186,390 19,479,462 21,325,804
3
SEACOR SMIT INC. AND SUBSIDIARIES
SUPPLEMENTARY FINANCIAL AND OPERATIONAL DATA
(IN THOUSANDS, EXCEPT SHARE AND OPERATIONAL DATA, UNAUDITED)
Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30,
STATEMENTS OF OPERATIONS: 2003 2003 2003 2002 2002
-------------- ------------- -------------- ---------------- --------------
Operating Revenues..................... $ 103,234 $ 105,159 $ 96,860 $ 99,708 $ 102,137
-------------- ------------- -------------- ---------------- --------------
Cost and Expenses:
Operating expenses.................. 72,264 69,422 67,100 67,306 64,297
Administrative and general.......... 13,676 13,391 14,079 14,668 13,434
Depreciation and amortization....... 13,411 13,708 14,636 13,991 14,381
-------------- ------------- -------------- ---------------- --------------
99,351 96,521 95,815 95,965 92,112
-------------- ------------- -------------- ---------------- --------------
Operating Income....................... 3,883 8,638 1,045 3,743 10,025
Net Interest Expense................... (3,063) (2,549) (2,950) (2,943) (1,460)
Debt Extinguishment.................... - (966) (1,125) - (2,338)
Income from Equipment Sales, net....... 2,349 414 5,147 3,077 2,321
Gain from Chiles Merger................ - - - - 19,719
Derivative Transactions, net........... (443) 2,624 1,749 (2,424) (3,251)
Other, net............................. 682 1,797 2,729 1,486 5,584
-------------- ------------- -------------- ---------------- --------------
Income Before Taxes, Minority
Interest and Equity Earnings........ 3,408 9,958 6,595 2,939 30,600
Income Tax Expense..................... 1,334 3,596 2,399 1,266 10,369
-------------- ------------- -------------- ---------------- --------------
Income Before Minority Interest and
Equity Earnings..................... 2,074 6,362 4,196 1,673 20,231
Minority Interest...................... (112) (241) (98) (32) (6)
Equity Earnings........................ 935 322 246 (3) 1,070
-------------- ------------- -------------- ---------------- --------------
Net Income............................. $ 2,897 $ 6,443 $ 4,344 $ 1,638 $ 21,295
============== ============= ============== ================ ==============
WEIGHTED AVERAGE COMMON SHARES:
Basic.................................. 18,629,664 19,155,421 19,775,194 19,823,095 20,051,743
Diluted................................ 18,785,256 19,315,817 20,362,120 20,032,229(1) 21,186,390
DILUTED EARNINGS PER COMMON SHARE......... $ 0.15 $ 0.33 $ 0.22 $ 0.08(1) $ 1.02
BALANCE SHEET:
Cash, Marketable Securities and
Construction Reserve Funds.......... $ 428,372 $ 431,796 $ 498,075 $ 525,931 $ 536,950
Total Assets........................... 1,370,630 1,379,700 1,401,710 1,487,107 1,467,396
Total Long-term Debt................... 332,213 332,187 343,058 402,118 401,347
Stockholders' Equity................... 768,530 772,563 789,971 804,951 804,227
MARINE FLEET RATES PER DAY WORKED ($)(2):
Anchor Handling Towing Supply.......... 12,650 12,258 11,963 14,109 13,144
Crew................................... 3,257 3,153 3,158 3,148 3,200
Geophysical, Freight and Other(3)...... - - - - -
Mini-Supply............................ 2,998 3,027 3,102 2,983 2,918
Standby Safety......................... 6,733 6,559 6,537 6,288 6,268
Supply and Towing Supply............... 7,470 7,648 7,712 7,834 8,153
Utility................................ 1,774 1,792 1,767 1,762 1,761
MARINE FLEET UTILIZATION (%)(2) :
Anchor Handling Towing Supply.......... 76.9 76.7 82.6 73.1 72.9
Crew................................... 75.9 79.9 78.9 78.3 76.3
Geophysical, Freight and Other(3)...... - - - - -
Mini-Supply............................ 91.6 89.4 86.8 86.2 90.0
Standby Safety......................... 89.9 89.5 81.6 88.5 88.2
Supply and Towing Supply............... 82.8 81.6 79.9 85.7 88.9
Utility................................ 58.7 56.7 55.1 58.0 62.4
Overall Offshore Marine Fleet....... 77.5 77.8 76.2 76.8 77.7
MARINE FLEET AT PERIOD END(2) :
Anchor Handling Towing Supply......... 26 25 26 28 30
Crew.................................. 90 92 92 96 95
Geophysical, Freight and Other........ 2 2 2 2 2
Mini-Supply........................... 32 32 32 33 28
Standby Safety........................ 26 26 26 26 28
Supply and Towing Supply.............. 67 66 69 71 69
Utility............................... 36 40 41 45 48
-------------- ------------- -------------- ---------------- --------------
Total Offshore Marine Fleet......... 279 283 288 301 300
============== ============= ============== ================ ==============
INLAND BARGE FLEET AT PERIOD END.......... 735 559 562 535 482
HELICOPTER FLEET AT PERIOD END............ 36 36 36 36 n.a.
HELICOPTER FLIGHT HOURS................... 5,131 5,889 5,061 n.a. n.a.
- --------------------
(1) 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 this same period, such shares were also excluded from
the calculation of diluted weighted average common shares outstanding.
(2) Statistics exclude vessels retired from service in the applicable periods
- 12 utility vessels at September 30, 2003.
(3) Vessels in this class were out of service during all reported periods.
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SEACOR SMIT INC. AND SUBSIDIARIES
SUPPLEMENTARY OPERATIONAL DATA
(UNAUDITED)
As of
June 30,
As of September 30, 2003 2003
------------------------------------------------------------------------ ----------
Joint Pooled/
Owned Leased-in Subtotal Ventured Managed Total Total
---------- --------- ---------- ----------- ----------- -------- ----------
OFFSHORE MARINE FLEET
ANCHOR HANDLING TOWING SUPPLY:
Domestic........................ 3 2 5 - - 5 5
Foreign......................... 15 - 15 6 - 21 20
---------- --------- ---------- ----------- ----------- -------- ----------
18 2 20 6 - 26 25
---------- --------- ---------- ----------- ----------- -------- ----------
CREW:
Domestic........................ 33 23 56 1 - 57 60
Foreign......................... 21 - 21 12 - 33 32
---------- --------- ---------- ----------- ----------- -------- ----------
54 23 77 13 - 90 92
---------- --------- ---------- ----------- ----------- -------- ----------
GEOPHYSICAL, FREIGHT AND OTHER:
Domestic........................ 1 - 1 - - 1 1
Foreign......................... - - - 1 - 1 1
---------- --------- ---------- ----------- ----------- -------- ----------
1 - 1 1 - 2 2
---------- --------- ---------- ----------- ----------- -------- ----------
MINI-SUPPLY:
Domestic........................ 25 3 28 - - 28 28
Foreign......................... 2 - 2 2 - 4 4
---------- --------- ---------- ----------- ----------- -------- ----------
27 3 30 2 - 32 32
---------- --------- ---------- ----------- ----------- -------- ----------
STANDBY SAFETY:
Domestic........................ - - - - - - -
Foreign......................... 18 - 18 3 5 26 26
---------- --------- ---------- ----------- ----------- -------- ----------
18 - 18 3 5 26 26
---------- --------- ---------- ----------- ----------- -------- ----------
SUPPLY AND TOWING SUPPLY:
Domestic........................ 3 7 10 2 1 13 13
Foreign......................... 26 3 29 25 - 54 53
---------- --------- ---------- ----------- ----------- -------- ----------
29 10 39 27 1 67 66
---------- --------- ---------- ----------- ----------- -------- ----------
UTILITY:
Domestic........................ 34 - 34 - - 34 37
Foreign......................... 1 - 1 1 - 2 3
---------- --------- ---------- ----------- ----------- -------- ----------
35 - 35 1 - 36 40
---------- --------- ---------- ----------- ----------- -------- ----------
WORLDWIDE FLEET:
Domestic........................ 99 35 134 3 1 138 144
Foreign......................... 83 3 86 50 5 141 139
---------- --------- ---------- ----------- ----------- -------- ----------
182 38 220 53 6 279 283
========== ========= ========== =========== =========== ======== ==========
INLAND BARGE FLEET
Domestic...................... 332 166 498 6 231 735 559
========== ========= ========== =========== =========== ======== ==========
HELICOPTER FLEET
Domestic...................... 19 16 35 - 1 36 36
========== ========= ========== =========== =========== ======== ==========
5