Exhibit 99.1
PRESS RELEASE
SEACOR HOLDINGS ANNOUNCES SECOND QUARTER RESULTS
HOUSTON, TEXAS
August 9, 2005
FOR IMMEDIATE RELEASE -- SEACOR Holdings Inc. (NYSE:CKH) announced net earnings
for the second quarter ended June 30, 2005 of $25.1 million, or $1.20 per
diluted share, on operating revenues of $177.8 million. For the six months ended
June 30, 2005, net earnings were $43.7 million, or $2.11 per diluted share, on
operating revenues of $343.0 million.
For the second quarter ended June 30, 2004, net earnings were $0.2 million, or
$0.01 per diluted share, on operating revenues of $97.4 million. For the six
months ended June 30, 2004, net losses were $2.8 million, or $0.15 per diluted
share, on operating revenues of $193.4 million.
For the immediately preceding quarter ended March 31, 2005, the Company reported
net earnings of $18.6 million, or $0.90 per diluted share, on operating revenues
of $165.2 million.
Financial results for the second quarter ended June 30, 2005 as compared to the
immediately preceding quarter ended March 31, 2005 were impacted by a variety of
factors highlighted below.
o INCREASED OPERATING REVENUES. Operating revenues for the quarter were
$177.8 million, an increase of $12.6 million from the previous
quarter. Results improved due primarily to increased flight hours in
Helicopter Services that included seasonal flight-seeing activities in
Alaska, higher rates per day worked and utilization for vessels in
Offshore Marine Services and fleet growth in Inland River Services.
Operating revenues earned by Environmental Services remained constant
between quarters.
o DECREASED OPERATING INCOME. Operating income for the quarter was $24.6
million, a decrease of $1.7 million from the previous quarter. This
decline was largely due to $11.7 million less in gain on asset sales,
primarily related to the disposition of offshore support vessels.
In the second quarter, improved results from helicopter and vessel
operations, excluding the effect of asset sales, were partly offset by
reduced earnings in environmental and inland river transportation
activities. Results of Helicopter Services improved due to increased
flight activities and decreased maintenance expenses. Cost and
expenses of Offshore Marine Services remained steady against rising
revenues. Spill response profit margins declined in Environmental
Services. Margins for Inland River Services declined from the prior
quarter in keeping with typical seasonal patterns. Revenues did
increase due to the addition of small numbers of barges, but rates did
not compensate for increased expenses.
o DECREASED DERIVATIVE LOSSES, NET. Derivative transactions, primarily
consisting of foreign currency contracts, resulted in losses for the
current quarter of $0.2 million as compared to losses for the prior
quarter of $1.6 million.
o INCREASED FOREIGN CURRENCY TRANSACTION GAINS, NET. Foreign currency
transaction gains for the current quarter were $4.4 million as
compared to losses of $0.5 million in the previous quarter. Gains and
losses resulted from the effect of currency exchange rate changes with
respect to loans between SEACOR and certain of its foreign
subsidiaries and other transactions denominated in currencies other
than the functional currency of various subsidiaries.
o INCREASED MARKETABLE SECURITIES SALE GAINS, NET. Marketable securities
sale transactions resulted in net gains of $8.5 million, an increase
of $2.3 million from the previous quarter.
As previously announced, on July 1, 2005, the Company acquired Seabulk
International, Inc. pursuant to the Agreement and Plan of Merger dated March 16,
2005, among the Company, SBLK Acquisition Corp., CORBULK LLC, and Seabulk
International, Inc. Seabulk will be filing a separate Quarterly Report on Form
10-Q for the period ended June 30, 2005. The Company also sold its "fixed wing"
operations which were previously held for sale through the sale of all the
outstanding shares of capital stock of Era Aviation, Inc. to Era Aviation
Investment Group LLC for $15 million in cash.
During the quarter, the Company purchased additional dry cargo covered hopper
barges, chemical tank barges and offshore support vessels for aggregate
consideration of $107.3 million. At June 30, 2005, capital commitments for
helicopters, dry cargo covered hopper barges, offshore support vessels and other
equipment aggregated $342.7 million. In addition, the Company placed revocable
orders for additional helicopters.
At June 30, 2005, the Company's cash, marketable securities and construction
reserve funds totaled $533.4 million, a decrease of $82.0 million from the prior
quarter, and long-term debt totaled $597.5 million. The Company has remaining
authority of $37.7 million available for future purchases of the Company's
common stock and its 5.875% and 7.2% notes.
SEACOR is a global provider of marine support and transportation service,
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, the operation of
Offshore Marine Services and Helicopter Services in a highly competitive
environment, changes in foreign political, military and economic conditions, the
dependence of Offshore Marine Services and Helicopter Services on several
customers, industry fleet capacity, 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, safety record requirements
related to Offshore Marine Services and Helicopter Services, changes in foreign
and domestic oil and gas exploration and production activity, vessel and
helicopter-related risks of Offshore Marine Services and Helicopter Services,
effects of adverse weather conditions and seasonality on Helicopter Services,
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, 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, liability in connection with providing spill response services, the
effect of international economic and political factors in inland river
operations, the intense competition faced by Inland River Services, adequacy of
insurance coverage, currency exchange fluctuations, the attraction and retention
of qualified personnel by the Company, 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 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.
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SEACOR HOLDINGS INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA, UNAUDITED)
Three Months Ended Six Months Ended
June 30, June 30,
---------------------------- ---------------------------
2005 2004 2005 2004
------------- ------------- ------------ -------------
Operating Revenues $ 177,831 $ 97,403 $ 343,016 $ 193,377
------------- ------------- ------------ -------------
Costs and Expenses:
Operating expenses 117,179 73,759 232,780 148,789
Administrative and general 19,329 13,857 37,824 28,933
Depreciation and amortization 18,492 14,156 36,774 28,117
------------- ------------- ------------ -------------
155,000 101,772 307,378 205,839
------------- ------------- ------------ -------------
Gains on Asset Sales 1,812 6,117 15,328 9,755
------------- ------------- ------------ -------------
Operating Income (Loss) 24,643 1,748 50,966 (2,707)
------------- ------------- ------------ -------------
Other Income (Expense):
Interest income 4,484 1,663 8,163 3,042
Interest expense (7,550) (5,388) (15,141) (10,766)
Derivative loss, net (178) (560) (1,768) (481)
Foreign currency transaction gains (losses), net 4,401 (689) 3,852 (223)
Marketable securities sale gains, net 8,502 2,753 14,736 5,502
Other, net 440 233 640 352
------------- ------------- ------------ -------------
10,099 (1,988) 10,482 (2,574)
------------- ------------- ------------ -------------
Income (Loss) Before Income Tax Expense (Benefit),
Minority Interest and Equity in Earnings of 50% or
Less Owned Companies 34,742 (240) 61,448 (5,281)
Income Tax Expense (Benefit) 12,448 169 22,188 (1,333)
------------- ------------- ------------ -------------
Income (Loss) Before Minority Interest and Equity in
Earnings of 50% or Less Owned Companies 22,294 (409) 39,260 (3,948)
Minority Interest in Income of Subsidiaries (154) (91) (120) (86)
Equity in Earnings of 50% or Less Owned Companies 2,594 673 4,211 1,243
------------- ------------- ------------ -------------
Income (Loss) From Continuing Operations 24,734 173 43,351 (2,791)
Income from Discontinued Operations, net of taxes 390 - 364 -
------------- ------------- ------------ -------------
Net Income (Loss) $ 25,124 $ 173 $ 43,715 $ (2,791)
============= ============= ============ =============
Basic Earnings (Loss) Per Common Share:
Income (Loss) from Continuing Operations $ 1.35 $ 0.01 $ 2.37 $ (0.15)
Income from Discontinued Operations 0.02 - 0.02
------------- ------------- ------------ -------------
Net Income (Loss) $ 1.37 $ 0.01 $ 2.39 $ (0.15)
============= ============= ============ =============
Diluted Earnings (Loss) Per Common Share:
Income (Loss) from Continuing Operations (1) $ 1.18 $ 0.01 $ 2.09 $ (0.15)
Income from Discontinued Operations 0.02 - 0.02 -
------------- ------------- ------------ -------------
Net Income (Loss) (1) $ 1.20 $ 0.01 $ 2.11 $ (0.15)
============= ============= ============ =============
Weighted Average Common Shares Outstanding:
Basic 18,349 18,347 18,299 18,407
Diluted (1) 21,924 18,476 21,916 18,407
(1) Outstanding stock options and restricted stock have been excluded from the
computations of diluted loss per common share and diluted weighted average
common shares for the six months ended June 30, 2004 as the effect was
anti-dilutive.
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SEACOR HOLDINGS INC. AND SUBSIDIARIES
SUPPLEMENTAL DATA
(IN THOUSANDS, EXCEPT PER SHARE DATA, UNAUDITED)
Three Months Ended
-------------------------------------------------------------
Jun. 30, Mar. 31, Dec. 31, Sep. 30, Jun. 30,
2005 2005 2004 2004 2004
---------- ---------- ----------- ---------- ----------
STATEMENTS OF OPERATIONS:
Operating Revenues $ 177,831 $ 165,185 $ 181,997 $ 116,486 $ 97,403
---------- ---------- ----------- ---------- ----------
Cost and Expenses:
Operating expenses 117,179 115,601 126,240 79,134 73,759
Administrative and general 19,329 18,495 17,592 14,900 13,857
Depreciation and amortization 18,492 18,282 15,365 14,352 14,156
---------- ---------- ----------- ---------- ----------
155,000 152,378 159,197 108,386 101,772
---------- ---------- ----------- ---------- ----------
Gains (Losses) on Asset Sales 1,812 13,516 598 (119) 6,117
---------- ---------- ----------- ---------- ----------
Operating Income 24,643 26,323 23,398 7,981 1,748
---------- ---------- ----------- ---------- ----------
Other Income (Expense):
Interest income 4,484 3,679 3,200 2,180 1,663
Interest expense (7,550) (7,591) (6,154) (5,565) (5,388)
Derivative income (loss), net (178) (1,590) 1,787 (140) (560)
Foreign currency transaction gains (losses), net 4,401 (549) 1,944 (184) (689)
Marketable securities sale gains (losses), net 8,502 6,234 1,689 (756) 2,753
Other, net 440 200 108 79 233
---------- ---------- ----------- ---------- ----------
10,099 383 2,574 (4,386) (1,988)
---------- ---------- ----------- ---------- ----------
Income (Loss) Before Taxes, Minority Interest and
Equity in Earnings of 50% or Less Owned Companies 34,742 26,706 25,972 3,595 (240)
Income Tax Expense 12,448 9,740 8,395 1,511 169
---------- ---------- ----------- ---------- ----------
Income (Loss) Before Minority Interest and Equity
in Earnings of 50% or Less Owned Companies 22,294 16,966 17,577 2,084 (409)
Minority Interest in (Income) Loss of Subsidiaries (154) 34 (289) (108) (91)
Equity in Earnings of 50% or Less Owned Companies 2,594 1,617 2,028 1,388 673
---------- ---------- ----------- ---------- ----------
Income from Continuing Operations 24,734 18,617 19,316 3,364 173
Income (Loss) from Discontinued Operations, net of
tax 390 (26) - - -
---------- ---------- ----------- ---------- ----------
Net Income $ 25,124 $ 18,591 $ 19,316 $ 3,364 $ 173
========== ========== =========== ========== ==========
BASIC EARNINGS PER COMMON SHARE:
Income from Continuing Operations $ 1.35 $ 1.02 $ 1.06 $ 0.18 $ 0.01
Income (Loss) from Discontinued Operations 0.02 - - - -
---------- ---------- ----------- ---------- ----------
Net Income $ 1.37 $ 1.02 $ 1.06 $ 0.18 $ 0.01
========== ========== =========== ========== ==========
DILUTED EARNINGS PER COMMON SHARE:
Income from Continuing Operations $ 1.18 $ 0.90 $ 1.03 $ 0.18 $ 0.01
Income (Loss) from Discontinued Operations 0.02 - - - -
---------- ---------- ----------- ---------- ----------
Net Income $ 1.20 $ 0.90 $ 1.03 $ 0.18 $ 0.01
========== ========== =========== ========== ==========
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic 18,349 18,249 18,203 18,211 18,347
Diluted 21,924 21,908 18,973 18,357 18,476
COMMON SHARES OUTSTANDING AT PERIOD END 18,466 18,442 18,307 18,292 18,313
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SEACOR HOLDINGS INC. AND SUBSIDIARIES
SUPPLEMENTAL DATA
(UNAUDITED)
Three Months Ended
---------------------------------------------------------------------
Jun. 30, Mar. 31, Dec. 31, Sep. 30, Jun. 30,
2005 2005 2004 2004 2004
------------ ------------ ------------ ------------ ------------
BALANCE SHEET DATA, AT PERIOD END (IN THOUSANDS):
Cash, Securities and Construction Reserve Funds $ 533,417 $ 615,153 $ 495,387 $ 440,091 $ 441,805
Total Assets 1,798,967 1,778,953 1,766,009 1,456,536 1,394,902
Total Long-term Debt 597,467 582,416 582,367 382,319 342,271
Stockholders' Equity 831,254 811,932 793,757 766,763 757,886
OPERATING REVENUES BY SEGMENT (IN THOUSANDS):
Offshore Marine Services $ 84,043 $ 80,350 $ 80,841 $ 72,825 $ 67,039
Environmental Services 35,635 35,893 62,824 21,144 14,654
Inland River Services 27,333 25,530 31,878 16,076 10,038
Helicopter Services 27,692 21,599 7,188 7,485 6,680
Intersegment Eliminations and Other 3,128 1,813 (734) (1,044) (1,008)
------------ ------------ ------------ ------------ ------------
$ 177,831 $ 165,185 $ 181,997 $ 116,486 $ 97,403
============ ============ ============ ============ ============
OPERATING INCOME (LOSS) BY SEGMENT (IN THOUSANDS):
Offshore Marine Services $ 15,887 $ 22,252 $ 9,870 $ 6,360 $ 4,677
Environmental Services 3,375 4,564 7,473 2,742 816
Inland River Services 7,092 7,664 11,795 3,153 932
Helicopter Services 1,738 (4,395) (668) (475) (1,308)
Corporate Expenses and Other (3,449) (3,762) (5,072) (3,799) (3,369)
------------ ------------ ------------ ------------ ------------
$ 24,643 $ 26,323 $ 23,398 $ 7,981 $ 1,748
============ ============ ============ ============ ============
OFFSHORE MARINE VESSELS - AVAILABLE DAYS(1):
Anchor Handling Towing Supply -
Domestic 576 470 276 276 273
Foreign 728 704 736 759 741
Supply -
Domestic 369 548 644 644 731
Foreign 450 620 738 828 910
Towing -
Domestic 364 360 276 275 182
Foreign 811 810 748 736 837
Crew 6,697 6,783 6,446 6,024 5,921
Mini-supply 2,427 2,464 2,576 2,619 2,708
Other 91 90 92 50 -
Standby Safety 1,911 1,890 1,932 1,932 1,911
------------ ------------ ------------ ------------ ------------
14,424 14,739 14,464 14,143 14,214
============ ============ ============ ============ ============
- -------------
(1) Excludes vessels that are bareboat chartered-out, vessels owned by
corporations that participate in pooling arrangements with the Company,
minority owned joint venture vessels and managed vessels.
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SEACOR HOLDINGS INC. AND SUBSIDIARIES
SUPPLEMENTAL DATA
(UNAUDITED)
Three Months Ended
--------------------------------------------------------------------
Jun. 30, Mar. 31, Dec. 31, Sep. 30, Jun. 30,
2005 2005 2004 2004 2004
----------- ----------- ----------- ----------- ------------
OFFSHORE MARINE VESSELS - RATES PER DAY WORKED(1) (2):
Anchor Handling Towing Supply -
Domestic $ 23,850 $ 20,226 $ 18,815 $ 22,009 $ 19,115
Foreign 10,228 10,848 9,964 9,534 9,539
Supply -
Domestic 7,255 7,924 7,769 6,720 5,994
Foreign 9,350 13,789 16,124 10,095 9,729
Towing -
Domestic 10,083 9,061 8,209 6,118 6,040
Foreign 7,581 6,959 7,096 6,769 6,775
Crew 4,171 3,996 3,745 3,458 3,314
Mini-supply 3,352 3,111 3,051 2,937 2,932
Other - 17,000 14,000 14,000 -
Standby Safety 8,228 8,229 8,127 7,839 7,719
OFFSHORE MARINE VESSELS - UTILIZATION(2):
Anchor Handling Towing Supply -
Domestic 83.9% 91.3% 98.0% 85.2% 68.3%
Foreign 75.3% 73.2% 82.3% 90.4% 63.9%
Supply -
Domestic 95.9% 74.5% 73.8% 68.9% 76.1%
Foreign 78.5% 68.8% 75.2% 86.9% 72.8%
Towing -
Domestic 91.0% 83.9% 97.9% 64.3% 91.8%
Foreign 96.0% 90.5% 78.8% 61.7% 61.8%
Crew 89.0% 86.1% 91.6% 93.5% 89.0%
Mini-supply 89.9% 78.0% 88.7% 90.9% 86.7%
Other 0.0% 33.3% 64.9% 50.0% -
Standby Safety 88.8% 90.2% 91.9% 89.7% 85.9%
Overall Utilization 87.9% 83.5% 88.4% 88.2% 83.2%
Utilization Lost to Market Conditions 7.6% 12.4% 7.5% 7.9% 12.9%
Utilization Lost to Operating Conditions 4.5% 4.1% 4.1% 3.9% 3.9%
HELICOPTER FLIGHT HOURS 14,188 9,448 6,453 7,431 6,714
- -------------
(1) Revenues for certain vessels, primarily North Sea standby safety, are
earned in foreign currencies, principally British Pounds Sterling. These
revenues have been converted to U.S. dollars at the weighted average
exchange rate for the periods indicated.
(2) Excludes vessels that are bareboat chartered-out, vessels owned by
corporations that participate in pooling arrangements with the Company,
minority owned joint venture vessels and managed vessels.
6
SEACOR HOLDINGS INC. AND SUBSIDIARIES
SUPPLEMENTARY DATA
(UNAUDITED)
June 30, 2005
---------------------------------------------------
Joint Pooled/ Mar. 31 Dec. 31, Sep. 30, Jun. 30,
Owned Leased-in Ventured Managed Total 2005 2004 2004 2004
-------- ----------- ---------- ---------- -------- ----------- --------- --------- ----------
OFFSHORE MARINE FLEET COUNT:
DOMESTIC OPERATIONS -
Anchor Handling Towing Supply 6 1 1 - 8 7 4 4 4
Crew 37 19 1 - 57 58 58 54 49
Mini-supply 21 4 - - 25 25 26 26 26
Supply 2 2 - 1 5 6 8 8 8
Towing 2 2 - - 4 4 4 3 2
-------- ----------- ---------- ---------- -------- ----------- --------- --------- ----------
68 28 2 1 99 100 100 95 89
-------- ----------- ---------- ---------- -------- ----------- --------- --------- ----------
FOREIGN OPERATIONS -
Anchor Handling Towing Supply 11 - 2 - 13 14 14 13 14
Crew 19 - 5 - 24 23 24 23 26
Mini-supply 2 - 2 - 4 4 4 4 5
Other 1 - 1 - 2 2 2 2 1
Standby Safety 19 - 3 5 27 27 27 27 27
Supply 4 1 4 - 9 8 12 13 14
Towing 8 - 20 - 28 29 29 30 31
-------- ----------- ---------- ---------- -------- ----------- --------- --------- ----------
64 1 37 5 107 107 112 112 118
-------- ----------- ---------- ---------- -------- ----------- --------- --------- ----------
WORLDWIDE OPERATIONS -
Anchor Handling Towing Supply 17 1 3 - 21 21 18 17 18
Crew 56 19 6 - 81 81 82 77 75
Mini-supply 23 4 2 - 29 29 30 30 31
Other 1 - 1 - 2 2 2 2 1
Standby Safety 19 - 3 5 27 27 27 27 27
Supply 6 3 4 1 14 14 20 21 22
Towing 10 2 20 - 32 33 33 33 33
-------- ----------- ---------- ---------- -------- ----------- --------- --------- ----------
132 29 39 6 206 207 212 207 207
======== =========== ========== ========== ======== =========== ========= ========= ==========
INLAND BARGES
Dry Cargo Hopper 719 182 6 207 1,114 1,097 1,072 1,029 911
Chemical Tank 36 - - - 36 27 20 14 1
-------- ----------- ---------- ---------- -------- ----------- --------- --------- ----------
755 182 6 207 1,150 1,124 1,092 1,043 912
======== =========== ========== ========== ======== =========== ========= ========= ==========
HELICOPTERS 99 16 - 1 116 120 127 44 43
======== =========== ========== ========== ======== =========== ========= ========= ==========
7