Exhibit 99.1
PRESS RELEASE
SEACOR HOLDINGS ANNOUNCES THIRD QUARTER RESULTS
Fort Lauderdale, Florida
November 9, 2005
FOR IMMEDIATE RELEASE -- SEACOR Holdings Inc. (NYSE:CKH) announced net earnings
for the third quarter ended September 30, 2005 of $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 earnings were $64.2 million, or $2.81 per diluted
share, on operating revenues of $637.9 million.
For the third quarter ended September 30, 2004, net earnings were $3.4 million,
or $0.18 per diluted share, on operating revenues of $116.5 million. For the
nine months ended September 30, 2004, net earnings were $0.6 million, or $0.03
per diluted share, on operating revenues of $309.9 million.
For the previous quarter ended June 30, 2005, the Company reported net earnings
of $25.1 million, or $1.20 per diluted share, on operating revenues of $177.8
million.
IMPACT OF THE SEABULK ACQUISITION - The third quarter included, for the first
time, the result of Seabulk International, Inc. ("Seabulk"), a company acquired
by SEACOR on July 1, 2005. Seabulk's operating revenues for the quarter totaled
$97.9 million compared to $96.7 million in the previous quarter (prior to its
acquisition by SEACOR). Seabulk's business segments produced operating results
consistent with Seabulk's second quarter.
The Seabulk acquisition was accounted for as a purchase under current accounting
guidelines, which required that the Seabulk assets and liabilities were subject
to fair valuation on the date of acquisition. The preliminary fair value of
Seabulk's vessels resulted in an increase in their book value of $385.7 million,
which coupled with SEACOR's policy regarding asset useful lives, resulted in
additional depreciation expense of $16.4 million over Seabulk's previous
quarter.
During the third quarter, Seabulk's result was impacted by a derivative loss of
$4.1 million, related to an interest rate swap. Consistent with SEACOR's
accounting treatment of other derivative instruments, changes in fair value are
reflected in the statement of operations. Prior to its acquisition, Seabulk had
designated this swap as a hedge.
Seabulk's result for the quarter, including the additional depreciation expense
and the derivative impact, was a net loss of $6.9 million or $0.24 per diluted
share.
PRE-EXISTING SEACOR BUSINESS SEGMENTS - Excluding Seabulk's result, net income
from pre-existing SEACOR business segments was $27.4 million on operating
revenues of $197.0 million, compared to $25.1 million on operating revenues of
$177.8 million in the previous quarter. The improvement in results was primarily
attributed to revenue increases and improved operating margins.
Revenue increases were mainly due to higher demand for all classes of equipment
in Offshore Marine Services and Helicopter Services. Business activity in the
third quarter was generally brisk due to increased drilling in the Gulf of
Mexico and damage assessment and re-construction of offshore installations
following Hurricanes Katrina and Rita. Environmental Services also experienced
increased demand due to remediation work required to address the aftermath of
Hurricanes Katrina and Rita. Inland River Services' activity levels were
slightly reduced due to closing the port of New Orleans and logistics
disruptions associated with hurricanes and low water in the river system.
Improvements in freight rates compensated for reduction in loadings and cargo.
Offshore Marine Services recorded a $4.4 million charge relating to a funding
deficit in a UK multi-company pension fund in which the company is deemed to be
a participating employer. Offshore Marine Services was also affected by
hurricane damage to certain Gulf Coast facilities of its logistics business
resulting in a write-off of certain tangible assets and a goodwill impairment
charge totaling $1.6 million. In all other respects, costs and expenses
generally increased in response to the higher levels of business activity.
Excluding Seabulk's result, operating income for the quarter was $32.3 million,
an increase of $7.7 million over the previous quarter. Operating income improved
in Offshore Marine Services, Helicopter Services and Inland River Services in
response to the improvements in revenues. Environmental Services achieved
improved operating income despite an overall reduction in spill activity.
Excluding Seabulk's result, foreign currency transaction gains for the current
quarter were $2.4 million, compared to gains of $4.4 million in the previous
quarter. Marketable securities transactions resulted in net gains of $10.4
million, compared to gains of $8.5 million in the previous quarter.
SEACOR recognized an impairment charge of $2.7 million, net of tax, with respect
to one of its equity investments.
CAPITAL COMMITMENTS - As of November 9, 2005, capital commitments in respect of
all classes of assets aggregated $563.8 million.
QUARTERLY REPORT FILING - SEACOR was unable to file its Quarterly Report on Form
10-Q for the quarter ended September 30, 2005 on today's due date without
unreasonable effort and expense due to damage caused by Hurricane Wilma.
SEACOR's principal accounting functions are based in Ft. Lauderdale, Florida.
From October 24, 2005 through November 1, 2005, due to damage caused by
Hurricane Wilma, its Ft. Lauderdale office was effectively closed, with no
water, limited generator power, limited fuel and limited access by office
personnel, delaying SEACOR's ability to compile the required information and
complete the preparation of its Quarterly Report on Form 10-Q for the quarter
ended September 30, 2005. SEACOR expects to file its Form 10-Q on Monday,
November 14, 2005 within the five day extension period allowed by Securities and
Exchange Commission Rule 12b-25.
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.
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.
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA, UNAUDITED)
Three Months Ended Nine Months Ended
September 30, September 30,
---------------------------- ----------------------------
2005 2004 2005 2004
------------ ------------- ------------- -------------
Operating Revenues $ 294,869 $ 116,486 $ 637,885 $ 309,863
------------ ------------- ------------- -------------
Costs and Expenses:
Operating expenses 180,136 79,134 412,916 227,923
Administrative and general 31,115 14,900 68,939 43,833
Depreciation and amortization 46,535 14,352 83,309 42,469
------------ ------------- ------------- -------------
257,786 108,386 565,164 314,225
------------ ------------- ------------- -------------
Gains (Losses) on Asset Sales and Impairments (618) (119) 14,710 9,636
------------ ------------- ------------- -------------
Operating Income 36,465 7,981 87,431 5,274
------------ ------------- ------------- -------------
Other Income (Expense):
Interest income 4,754 2,180 12,917 5,222
Interest expense (16,541) (5,565) (31,682) (16,331)
Derivative loss, net (4,425) (140) (6,193) (621)
Foreign currency transaction gains (losses), net 2,436 (184) 6,288 (407)
Marketable securities sale gains (losses), net 10,388 (756) 25,124 4,746
Other, net 891 79 1,531 431
------------ ------------- ------------- -------------
(2,497) (4,386) 7,985 (6,960)
------------ ------------- ------------- -------------
Income (Loss) Before Income Tax Expense, Minority
Interest in (Income) Loss of Subsidiaries and
Equity in Earnings of 50% or Less Owned
Companies 33,968 3,595 95,416 (1,686)
Income Tax Expense 13,894 1,511 36,082 178
------------ ------------- ------------- -------------
Income (Loss) Before Minority Interest in (Income)
Loss of Subsidiaries and Equity in Earnings of
50% or Less Owned Companies 20,074 2,084 59,334 (1,864)
Minority Interest in (Income) Loss of Subsidiaries 223 (108) 103 (194)
Equity in Earnings of 50% or Less Owned Companies 200 1,388 4,411 2,631
------------ ------------- ------------- -------------
Income From Continuing Operations 20,497 3,364 63,848 573
Income from Discontinued Operations, net of tax - - 364 -
------------ ------------- ------------- -------------
Net Income $ 20,497 $ 3,364 $ 64,212 $ 573
============ ============= ============= =============
BASIC EARNINGS PER COMMON SHARE:
Income from Continuing Operations $ 0.83 $ 0.18 $ 3.12 $ 0.03
Income from Discontinued Operations - - 0.01 -
------------ ------------- ------------- -------------
Net Income $ 0.83 $ 0.18 $ 3.13 $ 0.03
============ ============= ============= =============
DILUTED EARNINGS PER COMMON SHARE:
Income from Continuing Operations $ 0.76 $ 0.18 $ 2.79 $ 0.03
Income from Discontinued Operations - - 0.02 -
------------ ------------- ------------- -------------
Net Income $ 0.76 $ 0.18 $ 2.81 $ 0.03
============ ============= ============= =============
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic 24,789 18,211 20,486 18,341
Diluted 28,562 18,357 24,151 18,496
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SEACOR HOLDINGS INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA, UNAUDITED)
Three Months Ended
-----------------------------------------------------------------
Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30,
2005 2005 2005 2004 2004
----------- ----------- ----------- ----------- -----------
Operating Revenues $ 294,869 $ 177,831 $ 165,185 $ 181,997 $ 116,486
----------- ----------- ----------- ----------- -----------
Cost and Expenses:
Operating expenses 180,136 117,179 115,601 126,240 79,134
Administrative and general 31,115 19,329 18,495 17,592 14,900
Depreciation and amortization 46,535 18,492 18,282 15,365 14,352
----------- ----------- ----------- ----------- -----------
257,786 155,000 152,378 159,197 108,386
----------- ----------- ----------- ----------- -----------
Gains (Losses) on Asset Sales and Impairments (618) 1,812 13,516 598 (119)
----------- ----------- ----------- ----------- -----------
Operating Income 36,465 24,643 26,323 23,398 7,981
----------- ----------- ----------- ----------- -----------
Other Income (Expense):
Interest income 4,754 4,484 3,679 3,200 2,180
Interest expense (16,541) (7,550) (7,591) (6,154) (5,565)
Derivative income (loss), net (4,425) (178) (1,590) 1,787 (140)
Foreign currency transaction gains (losses), net 2,436 4,401 (549) 1,944 (184)
Marketable securities sale gains (losses), net 10,388 8,502 6,234 1,689 (756)
Other, net 891 440 200 108 79
----------- ----------- ----------- ----------- -----------
(2,497) 10,099 383 2,574 (4,386)
----------- ----------- ----------- ----------- -----------
Income Before Income Tax Expense, Minority Interest
in (Income) Loss of Subsidiaries and Equity in
Earnings of 50% or less Owned Companies 33,968 34,742 26,706 25,972 3,595
Income Tax Expense 13,894 12,448 9,740 8,395 1,511
----------- ----------- ----------- ----------- -----------
Income Before Minority Interest in (Income) Loss of
Subsidiaries and Equity in Earnings of 50% or
Less Owned Companies 20,074 22,294 16,966 17,577 2,084
Minority Interest in (Income) Loss of Subsidiaries 223 (154) 34 (289) (108)
Equity in Earnings of 50% or Less Owned Companies 200 2,594 1,617 2,028 1,388
----------- ----------- ----------- ----------- -----------
Income from Continuing Operations 20,497 24,734 18,617 19,316 3,364
Income (Loss) from Discontinued Operations, net of
tax - 390 (26) - -
----------- ----------- ----------- ----------- -----------
Net Income $ 20,497 $ 25,124 $ 18,591 $ 19,316 $ 3,364
=========== =========== =========== =========== ===========
BASIC EARNINGS PER COMMON SHARE:
Income from Continuing Operations $ 0.83 $ 1.35 $ 1.02 $ 1.06 $ 0.18
Income (Loss) from Discontinued Operations - 0.02 - - -
----------- ----------- ----------- ----------- -----------
Net Income $ 0.83 $ 1.37 $ 1.02 $ 1.06 $ 0.18
=========== =========== =========== =========== ===========
DILUTED EARNINGS PER COMMON SHARE:
Income from Continuing Operations $ 0.76 $ 1.18 $ 0.90 $ 1.03 $ 0.18
Income (Loss) from Discontinued Operations - 0.02 - - -
----------- ----------- ----------- ----------- -----------
Net Income $ 0.76 $ 1.20 $ 0.90 $ 1.03 $ 0.18
=========== =========== =========== =========== ===========
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic 24,789 18,349 18,249 18,203 18,211
Diluted 28,562 21,924 21,908 18,973 18,357
COMMON SHARES OUTSTANDING AT PERIOD END 25,009 18,466 18,442 18,307 18,292
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SEACOR HOLDINGS INC.
SUPPLEMENTAL FINANCIAL DATA
(IN THOUSANDS, UNAUDITED)
Three Months Ended
---------------------------------------------------------------------
Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30,
2005 2005 2005 2004 2004
------------ ------------ ------------- ------------ ------------
SELECTED BALANCE SHEET DATA, AT PERIOD END:
Cash, Securities and Construction Reserve Funds $ 650,805 $ 533,417 $ 615,153 $ 495,387 $ 440,091
Total Assets 2,959,169 1,798,967 1,778,953 1,766,009 1,456,536
Total Long-term Debt & Capital Lease Obligations 1,126,431 597,467 582,416 582,367 382,319
Stockholders' Equity 1,280,028 831,254 811,932 793,757 766,763
OPERATING REVENUES BY SEGMENT:
Offshore Marine Services $ 146,842 $ 84,043 $ 80,350 $ 80,841 $ 72,825
Marine Transportation Services 35,723 - - - -
Environmental Services 27,466 35,635 35,893 62,824 21,144
Inland River Services 29,702 27,333 25,530 31,878 16,076
Helicopter Services 40,024 27,692 21,599 7,188 7,485
Other and Intersegment Eliminations 15,112 3,128 1,813 (734) (1,044)
------------ ------------ ------------- ------------ ------------
$ 294,869 $ 177,831 $ 165,185 $ 181,997 $ 116,486
============ ============ ============= ============ ============
OPERATING INCOME (LOSS) BY SEGMENT:
Offshore Marine Services $ 26,881 $ 15,887 $ 22,252 $ 9,870 $ 6,360
Marine Transportation Services (1,337) - - - -
Environmental Services 4,600 3,375 4,564 7,473 2,742
Inland River Services 8,704 7,092 7,664 11,795 3,153
Helicopter Services 5,516 1,738 (4,395) (668) (475)
Corporate Expenses and Other (7,899) (3,449) (3,762) (5,072) (3,799)
------------ ------------ ------------- ------------ ------------
$ 36,465 $ 24,643 $ 26,323 $ 23,398 $ 7,981
============ ============ ============= ============ ============
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