Exhibit 99.1
PRESS RELEASE
SEACOR HOLDINGS ANNOUNCES FIRST QUARTER RESULTS
Fort Lauderdale, Florida
May 5, 2006
FOR IMMEDIATE RELEASE -- SEACOR Holdings Inc. (NYSE:CKH) announced net income
for the first quarter ended March 31, 2006 of $50.1 million, or $1.80 per
diluted share, on operating revenues of $305.9 million. For the comparable
quarter ended March 31, 2005, net income was $18.6 million, or $0.90 per diluted
share, on operating revenues of $165.2 million. The results for the quarter
ended March 31, 2005 do not include Seabulk International, Inc. which was
acquired by the Company on July 1, 2005.
For the immediately preceding quarter ended December 31, 2005, the Company
reported net income of $106.5 million, or $3.76 per diluted share, on operating
revenues of $334.1 million. For the quarter ended December 31, 2005, the
Company's income tax benefit included a benefit of $46.2 million, or $1.61 per
diluted share, relating to the repatriation of foreign earnings under the
provisions of the American Job Creation Act of 2004. In addition, the results
for the fourth quarter of 2005 included a foreign currency translation gain of
$10.6 million, net of tax, or $0.37 per diluted share related to the disposition
of certain British Pound denominated assets.
HIGHLIGHTS FOR THE QUARTER
OFFSHORE MARINE SERVICES - Operating income(1) in the first quarter was $66.1
million on operating revenues of $159.9 million compared to $54.4 million on
operating revenue of $168.8 million in the preceding quarter. First quarter
results included $20.6 million in gains on asset sales compared to $6.6 million
in gains in the preceding quarter.
Demand for all classes of equipment remained strong throughout the quarter,
particularly in the U.S. Gulf of Mexico in response to continued high levels of
drilling activity and ongoing re-construction work following the hurricanes of
2005.
Operating revenues between the quarters decreased primarily as a result of fewer
available vessel days by virtue of asset dispositions and a shorter quarter.
Furthermore, there was less revenue from brokered vessel activity and
mobilizations.
Overall fleet utilization was slightly lower in the first quarter at 85.3%
compared to 88.0% in the preceding quarter. The reduction in revenue arising
from the utilization change was offset by an improvement in average day rates
from $7,705 per day to $8,006 per day.
MARINE TRANSPORTATION SERVICES - Operating income in the first quarter was $5.1
million on operating revenues of $37.7 million compared to operating income of
$6.4 million on operating revenues of $36.6 million in the preceding quarter.
The increase in operating revenues was due to increased demurrage revenue for
vessels operating under contracts of affreightment and dayrate increases for two
vessels operating under term contracts. Fuel and port charges climbed in the
quarter by virtue of three vessels operating on voyage charters compared to two
in the fourth quarter of 2005.
Operating income was lower than in the preceding quarter primarily due to
expenditures related to one vessel which was drydocked following a grounding in
Alaska.
INLAND RIVER SERVICES - Operating income in the first quarter was $14.8 million
on operating revenues of $34.5 million compared to operating income of $18.0
million on operating revenues of $40.7 million in the preceding quarter. The
decrease was primarily the result of reduced levels of barge activity compared
to the preceding quarter.
- -------------------------
(1) See attached schedule "OPERATING INCOME (LOSS) BY LINE OF BUSINESS" for
components of operating income.
The fourth quarter of each year is typically the strongest for Inland River
Services as a result of the seasonal impact of the grain harvest. In the latter
half of 2005 the Company also experienced higher rates for barge movements in
response to the logistical problems caused by the hurricanes.
In the corresponding quarter of 2005, Inland River Services reported operating
income of $7.7 million on operating revenue of $25.5 million.
AVIATION SERVICES - Aviation Services reported an operating loss of $0.3 million
for the first quarter on operating revenues of $33.5 million compared to
operating income of $10.2 million on operating revenues of $38.9 million in the
preceding quarter. First quarter results included $0.3 million in gains on asset
sales as compared to $7.0 million of gains in the preceding quarter.
The reduction in operating revenue between quarters was primarily due to the
seasonal effect of reduced hours of daylight and thus reduced available flying
time together with a reduction in activity for post-hurricane support in the
U.S. Gulf of Mexico. Operating expenses were only slightly lower than the
preceding quarter as the Company used the time available to invest in
maintenance to ready helicopters for summer flight seeing activities in Alaska
and for the generally higher levels of activity in the Gulf of Mexico during the
summer months.
In the corresponding quarter of 2005, Aviation Services reported an operating
loss of $4.0 million on operating revenues of $23.8 million.
ENVIRONMENTAL SERVICES - Operating income in the first quarter was $2.3 million
on operating revenues of $27.9 million compared to operating income of $10.4
million on operating revenues of $37.6 million in the preceding quarter. The
decrease was primarily due to reduced response activity. Operating income from
emergency response activities was $2.4 million on operating revenues of $5.3
million in the first quarter compared to operating income of $6.4 million on
operating revenues of $12.7 million in the preceding quarter. In addition,
margins for spill response activity were generally lower and retainer fees were
reduced.
DERIVATIVE TRANSACTIONS - Derivative transactions, primarily consisting of
interest rate swaps and foreign currency contracts, resulted in losses of $2.8
million in the first quarter as compared to losses of $0.9 million in the
preceding quarter.
FOREIGN CURRENCY TRANSACTIONS - Foreign currency transaction gains were $0.2
million in the first quarter compared to gains of $16.9 million in the preceding
quarter. As part of the fourth quarter repatriation of foreign earnings under
the American Jobs Creation Act of 2004, the Company recognized a $16.4 million
foreign currency gain relating to the revaluation of certain British Pound
denominated assets. Following the payment of dividends, the subsidiaries that
owned these assets were deemed to be substantially liquidated and the
accumulated currency translation adjustment previously recorded in stockholders'
equity was reclassified to foreign currency translation gains.
MARKETABLE SECURITY TRANSACTIONS - Marketable security and short sale
transactions resulted in losses of $3.6 million in the first quarter as compared
to gains of $3.0 million in the preceding quarter.
EQUITY EARNINGS - Equity in earnings of 50% or less owned companies was $6.4
million in the first quarter compared to $1.3 million in the preceding quarter.
Effective March 6, 2006, the Company disposed of its interest in Maritima
Mexicana S.A. de C.V., a Mexican joint venture through which it has participated
in the Mexican offshore market since 1994. Equity earnings included an after-tax
gain of $4.5 million in respect of the difference between the proceeds of the
sale and the carrying value of the Company's equity investment.
WEIGHTED AVERAGE SHARES OUTSTANDING - Weighted average diluted shares
outstanding were 28,495,296 for the quarter ended March 31, 2006 compared to
21,908,283 for the quarter ended March 31, 2005. The increase was mainly due to
the issuance of 6,354,642 shares as part of the acquisition of Seabulk
International, Inc. on July 1, 2005.
CAPITAL COMMITMENTS - The Company's unfunded capital commitments as of March 31,
2006 consisted primarily of marine service vessels, helicopters and barges and
totaled $669.0 million, of which $498.0 million is payable in 2006 and 2007,
with the remaining balance payable through 2009. Of these commitments,
approximately $141.0 million may be terminated without further liability other
than the payment of liquidated damages of $2.5 million in the aggregate.
Subsequent to the end of the quarter, the Company committed to purchase
additional equipment including a barge, a supply vessel and a helicopter in the
aggregate amount of $6.7 million. As of March 31, 2006 the Company held balances
of Cash, Restricted Cash, Securities, Construction Reserve Funds and Title XI
Reserve Funds totaling $764.6 million.
2
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.
3
SEACOR HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS, EXCEPT PER SHARE DATA, UNAUDITED)
THREE MONTHS ENDED
MARCH 31,
--------------------------
2006 2005
--------------------------
Operating Revenues $ 305,915 $ 165,185
------------- ------------
Costs and Expenses:
Operating expenses 169,644 115,601
Administrative and general 31,493 18,495
Depreciation and amortization 43,260 18,282
------------- ------------
244,397 152,378
------------- ------------
Gains on Asset Sales 20,877 13,516
------------- ------------
Operating Income 82,395 26,323
------------- ------------
Other Income (Expense):
Interest income 7,136 3,679
Interest expense (14,068) (7,591)
Derivative loss, net (2,812) (1,590)
Foreign currency transaction gains (losses), net 159 (549)
Marketable securities sale gains (losses), net (3,585) 6,234
Other, net 28 200
------------- ------------
(13,142) 383
------------- ------------
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 69,253 26,706
Income Tax Expense 25,431 9,740
------------- ------------
Income from Continuing Operations Before Minority Interest in (Income) Loss
of Subsidiaries and Equity in Earnings of 50% or Less Owned Companies 43,822 16,966
Minority Interest in (Income) Loss of Subsidiaries (83) 34
Equity in Earnings of 50% or Less Owned Companies 6,369 1,617
------------- -------------
Income from Continuing Operations 50,108 18,617
Loss from Discontinued Operations - (26)
------------- -------------
Net Income $ 50,108 $ 18,591
============= =============
Basic Earnings Per Common Share:
Income from Continuing Operations $ 2.02 $ 1.02
Loss from Discontinued Operations -- --
------------- ------------
Net Income $ 2.02 $ 1.02
============= ============
Diluted Earnings Per Common Share:
Income from Continuing Operations $ 1.80 $ 0.90
Loss from Discontinued Operations -- --
------------- ------------
Net Income $ 1.80 $ 0.90
============= ============
Weighted Average Common Shares Outstanding:
Basic 24,767 18,249
Diluted 28,495 21,908
4
SEACOR HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS, EXCEPT PER SHARE DATA, UNAUDITED)
THREE MONTHS ENDED
------------------------------------------------------------------------------
MAR. 31, DEC. 31, SEP. 30, JUN. 30, MAR. 31,
2006 2005 2005 2005 2005
---------------- --------------- -------------- -------------- ---------------
Operating Revenues $ 305,915 $ 334,119 $ 294,869 $ 177,831 $ 165,185
---------------- --------------- -------------- -------------- ---------------
Costs and Expenses:
Operating expenses 169,644 177,012 180,136 117,179 115,601
Administrative and general 31,493 36,256 31,115 19,329 18,495
Depreciation and amortization 43,260 44,405 46,535 18,492 18,282
---------------- --------------- -------------- -------------- ---------------
244,397 257,673 257,786 155,000 152,378
Gains (Losses) on Asset Sales and Impairments, Net 20,877 13,575 (618) 1,812 13,516
---------------- --------------- -------------- -------------- ---------------
Operating Income 82,395 90,021 36,465 24,643 26,323
---------------- --------------- -------------- -------------- ---------------
Other Income (Expense):
Interest income 7,136 6,284 4,754 4,484 3,679
Interest expense (14,068) (16,470) (16,541) (7,550) (7,591)
Derivative loss, net (2,812) (881) (4,425) (178) (1,590)
Foreign currency transaction gains (losses),
net 159 16,895 2,436 4,401 (549)
Marketable securities sale gains (losses), net (3,585) 2,957 10,388 8,502 6,234
Other, net 28 176 891 440 200
---------------- --------------- -------------- -------------- ---------------
(13,142) 8,961 (2,497) 10,099 383
---------------- --------------- -------------- -------------- ---------------
Income from Continuing Operations Before Income
Tax Expense (Benefit), Minority Interest in
(Income) Loss of Subsidiaries and Equity In
Earnings of 50% or Less Owned Companies 69,253 98,982 33,968 34,742 26,706
Income Tax Expense (Benefit) 25,431 (6,336) 13,894 12,448 9,740
---------------- --------------- -------------- -------------- ---------------
Income from Continuing Operations Before Minority
Interest in (Income) Loss of Subsidiaries and
Equity in Earnings of 50% or Less Owned
Companies 43,822 105,318 20,074 22,294 16,966
Minority Interest in (Income) Loss of Subsidiaries (83) (71) 223 (154) 34
Equity in Earnings of 50% or Less Owned Companies 6,369 1,250 200 2,594 1,617
---------------- --------------- -------------- -------------- ---------------
Income from Continuing Operations 50,108 106,497 20,497 24,734 18,617
Income (loss) from Discontinued Operations -- -- -- 390 (26)
---------------- --------------- -------------- -------------- ---------------
Net Income $ 50,108 $ 106,497 $ 20,497 $ 25,124 $ 18,591
================ =============== ============== ============== ===============
Basic Earnings Per Common Share:
Income from Continuing Operations $ 2.02 $ 4.28 $ 0.83 $ 1.35 $ 1.02
Income (loss) from Discontinued Operations -- -- -- 0.02 --
---------------- --------------- -------------- -------------- ---------------
Net Income $ 2.02 $ 4.28 $ 0.83 $ 1.37 $ 1.02
================ =============== ============== ============== ===============
Diluted Earnings Per Common Share:
Income from Continuing Operations $ 1.80 $ 3.76 $ 0.76 $ 1.18 $ 0.90
Income (loss) from Discontinued Operations -- -- -- 0.02 --
---------------- --------------- -------------- -------------- ---------------
Net Income $ 1.80 $ 3.76 $ 0.76 $ 1.20 $ 0.90
================ =============== ============== ============== ===============
Weighted Average Common Shares Outstanding:
Basic 24,767 24,884 24,789 18,349 18,249
Diluted 28,495 28,618 28,562 21,924 21,908
Common Shares Outstanding at Period End 25,076 24,819 25,009 18,466 18,442
5
SEACOR HOLDINGS INC.
OPERATING INCOME (LOSS) BY LINE OF BUSINESS
(IN THOUSANDS, UNAUDITED)
THREE MONTHS ENDED
---------------------------------------------------------------------------
MAR. 31, DEC. 31, SEP. 30, JUN. 30, MAR. 31,
2006 2005 2005 2005 2005
-------------- -------------- -------------- --------------- --------------
OFFSHORE MARINE SERVICES
Operating Revenues $ 159,852 $ 168,823 $ 146,842 $ 84,043 $ 80,350
-------------- -------------- -------------- --------------- --------------
Costs and Expenses:
Operating expenses 79,506 85,377 82,726 50,735 52,850
Administrative and general 11,688 12,809 11,290 8,241 7,501
Depreciation and amortization 23,127 22,772 25,040 10,950 10,670
-------------- -------------- -------------- --------------- --------------
114,321 120,958 119,056 69,926 71,021
-------------- -------------- -------------- --------------- --------------
Gains (Losses) on Asset Sales and Impairments, Net 20,552 6,578 (905) 1,770 12,923
-------------- -------------- -------------- --------------- --------------
Operating Income $ 66,083 $ 54,443 $ 26,881 $ 15,887 $ 22,252
============== ============== ============== =============== ==============
MARINE TRANSPORTATION SERVICES
Operating Revenues $ 37,724 $ 36,625 $ 35,723 -- --
-------------- -------------- -------------- --------------- --------------
Costs and Expenses:
Operating expenses 21,471 17,677 24,692 -- --
Administrative and general 964 874 705 -- --
Depreciation and amortization 10,185 11,641 11,663 -- --
-------------- -------------- -------------- --------------- --------------
32,620 30,192 37,060 -- --
-------------- -------------- -------------- --------------- --------------
Gains on Asset Sales -- -- -- -- --
-------------- -------------- -------------- --------------- --------------
Operating Income (Loss) $ 5,104 $ 6,433 $ (1,337) -- --
============== ============== ============== =============== ==============
INLAND RIVER SERVICES
Operating Revenues $ 34,488 $ 40,666 $ 29,702 $ 27,333 $ 25,530
-------------- -------------- -------------- --------------- --------------
Costs and Expenses:
Operating expenses 15,395 18,498 17,203 16,880 14,772
Administrative and general 816 691 644 570 508
Depreciation and amortization 3,474 3,479 3,151 2,791 2,597
-------------- -------------- -------------- --------------- --------------
19,685 22,668 20,998 20,241 17,877
-------------- -------------- -------------- --------------- --------------
Gains on Asset Sales -- -- -- -- 11
-------------- -------------- -------------- --------------- --------------
Operating Income $ 14,803 $ 17,998 $ 8,704 $ 7,092 $ 7,664
============== ============== ============== =============== ==============
AVIATION SERVICES
Operating Revenues $ 33,454 $ 38,856 $ 43,949 $ 30,949 $ 23,801
-------------- -------------- -------------- --------------- --------------
Costs and Expenses:
Operating expenses 26,345 26,960 30,583 22,346 21,713
Administrative and general 3,494 4,571 3,579 1,858 2,581
Depreciation and amortization 4,254 4,199 4,212 3,940 4,066
-------------- -------------- -------------- --------------- --------------
34,093 35,730 38,374 28,144 28,360
-------------- -------------- -------------- --------------- --------------
Gains on Asset Sales 325 7,024 306 -- 585
-------------- -------------- -------------- --------------- --------------
Operating Income (Loss) $ (314) $ 10,150 $ 5,881 $ 2,805 $ (3,974)
============== ============== ============== =============== ==============
ENVIRONMENTAL SERVICES
Operating Revenues $ 27,923 $ 37,583 $ 27,466 $ 35,635 $ 35,893
-------------- -------------- -------------- --------------- --------------
Costs and Expenses:
Operating expenses 20,508 21,852 17,400 27,347 26,655
Administrative and general 4,405 4,669 4,546 4,177 3,811
Depreciation and amortization 733 664 901 778 860
-------------- -------------- -------------- --------------- --------------
25,646 27,185 22,847 32,302 31,326
-------------- -------------- -------------- --------------- --------------
Gains (Losses) on Asset Sales -- (27) (19) 42 (3)
-------------- -------------- -------------- --------------- --------------
Operating Income $ 2,277 $ 10,371 $ 4,600 $ 3,375 $ 4,564
============== ============== ============== =============== ==============
6
SEACOR HOLDINGS INC.
OPERATING INCOME (LOSS) BY LINE OF BUSINESS (CONTINUED)
(IN THOUSANDS, UNAUDITED)
THREE MONTHS ENDED
-----------------------------------------------------------------------------
MAR. 31, DEC. 31, SEP. 30, JUN. 30, MAR. 31,
2006 2005 2005 2005 2005
--------------- -------------- --------------- --------------- --------------
HARBOR AND OFFSHORE TOWING SERVICES
Operating Revenues $ 12,884 $ 11,949 $ 11,343 -- --
--------------- -------------- --------------- --------------- --------------
Costs and Expenses:
Operating expenses 6,841 7,043 7,673 -- --
Administrative and general 1,604 1,663 1,333 -- --
Depreciation and amortization 1,259 1,303 1,226 -- --
--------------- -------------- --------------- --------------- --------------
9,704 10,009 10,232 -- --
--------------- -------------- --------------- --------------- --------------
Gains on Asset Sales -- -- -- -- --
--------------- -------------- --------------- --------------- --------------
Operating Income $ 3,180 $ 1,940 $ 1,111 -- --
=============== ============== =============== =============== ==============
CORPORATE AND ELIMINATIONS
Operating Revenues $ (410) $ (383) $ (156) $ (129) $ (389)
--------------- -------------- --------------- --------------- --------------
Costs and Expenses:
Operating expenses (422) (395) (141) (129) (389)
Administrative and general 8,522 10,979 9,018 4,483 4,094
Depreciation and amortization 228 347 342 33 89
--------------- -------------- --------------- --------------- --------------
8,328 10,931 9,219 4,387 3,794
--------------- -------------- --------------- --------------- --------------
Gains on Asset Sales -- -- -- -- --
--------------- -------------- --------------- --------------- --------------
Operating Loss $ (8,738) $ (11,314) $ (9,375) $ (4,516) $ (4,183)
=============== ============== =============== =============== ==============
7
SEACOR HOLDINGS INC.
SELECTED CONSOLIDATED BALANCE SHEET DATA
(IN THOUSANDS, UNAUDITED)
MAR. 31, DEC. 31, SEP. 30, JUN. 30, MAR. 31,
2006 2005 2005 2005 2005
-------------- ------------- ------------- ------------- -------------
Cash, Restricted Cash, Securities,
Construction Reserve Funds, and Title
XI Reserve Funds $ 764,649 $ 684,521 $ 664,164 $ 533,417 $ 615,153
Receivables 270,794 260,831 267,108 200,476 164,848
Current Assets 900,488 839,091 867,290 664,839 689,255
Net Property and Equipment 1,733,757 1,759,393 1,784,083 934,213 845,386
Total Assets 2,961,627 2,885,141 2,959,169 1,798,967 1,778,953
Current Liabilities 280,279 247,906 209,396 125,114 143,697
Total Long-term Debt & Capital Lease
Obligations 964,096 977,635 1,126,431 597,467 582,416
Stockholders' Equity 1,418,190 1,361,305 1,280,028 831,254 811,932
8