Exhibit 99.1
PRESS RELEASE
SEACOR HOLDINGS ANNOUNCES FOURTH QUARTER RESULTS
Fort Lauderdale, Florida
February 22, 2007
FOR IMMEDIATE RELEASE -- SEACOR Holdings Inc. (NYSE:CKH) announced net income
for the fourth quarter ended December 31, 2006 of $58.4 million, or $2.12 per
diluted share, on operating revenues of $337.2 million. For the twelve months
ended December 31, 2006, net income was $234.4 million, or $8.44 per diluted
share, on operating revenues of $1,323.4 million.
For the fourth quarter ended December 31, 2005, net income was $106.5 million,
or $3.76 per diluted share, on operating revenues of $334.1 million. For the
twelve months ended December 31, 2005, net income was $170.7 million, or $6.95
per diluted share, on operating revenues of $972.0 million.
As a result of the repatriation of foreign earnings under the provisions of the
American Job Creation Act of 2004, net income for the fourth quarter ended
December 31, 2005 included a $46.2 million income tax benefit, or $1.61 per
diluted share and a foreign currency gain of $10.7 million, net of tax, or $0.37
per diluted share.
For the immediately preceding quarter ended September 30, 2006, the Company
reported net income of $63.2 million, or $2.28 per diluted share, on operating
revenues of $349.4 million.
HIGHLIGHTS FOR THE QUARTER
OFFSHORE MARINE SERVICES - Operating income in the fourth quarter was $75.2
million on operating revenues of $174.8 million compared to operating income of
$70.6 million on operating revenues of $179.7 million in the preceding quarter.
Fourth quarter results included $13.8 million in gains on asset dispositions
compared to $10.2 million in gains in the preceding quarter.
Overall average day rates continued to improve increasing from $9,564 per day to
$10,447 per day. The most significant improvements were in the Gulf of Mexico
and West Africa, where average day rates increased by 13.9% and 4.7%,
respectively. Average rates were also significantly higher in the Middle East
due to more sophisticated equipment operating in that region.
The number of days worked in the fourth quarter declined by 1,977 or 10.9%. This
was due to a combination of lower overall utilization, which fell from 87.7% to
82.3%, and a 1,065, or 5.1% reduction in the number of days available for
charter, as a result of a net decrease in fleet count.
Utilization improved in all international regions except in West Africa where
there was a heavy drydock and repair schedule in the fourth quarter. In the Gulf
of Mexico demand for anchor handling, supply and towing supply vessels remained
at high levels with most vessels remaining fully utilized except for reasons of
survey or repair. Demand for crew boats and mini-supply vessels decreased due to
a reduction in shelf activity and a seasonal decline in construction activity.
MARINE TRANSPORTATION SERVICES - Operating income in the fourth quarter was $2.2
million on operating revenues of $34.4 million compared with operating income of
$3.4 million on operating revenues of $35.6 million in the preceding quarter.
The decrease in operating income was primarily due to one vessel being off-hire
for the entire quarter while undergoing a retrofit to a double-hull
configuration and completing a regulatory dry-docking.
INLAND RIVER SERVICES - Operating income in the fourth quarter was $16.1 million
on operating revenues of $37.8 million compared with operating income of $15.4
million on operating revenues of $38.8 million in the preceding quarter.
Operating revenues were slightly lower due to a reduction in available barge
days following the return of 20 barges that had been chartered-in on a multi
year arrangement and the contribution of 27 barges into a new joint venture
company.
The improvement in operating income was primarily due to a reduction in towing
costs because of lower fuel prices and the reduction in fleet size.
AVIATION SERVICES - Operating income in the fourth quarter was $3.4 million on
operating revenues of $38.9 million compared to an operating income of $3.7
million on operating revenues of $43.8 million in the preceding quarter. Fourth
quarter results included $7.1 million in gains on asset dispositions compared to
$1.9 million in gains in the preceding quarter.
The decrease in operating income was primarily due to seasonal factors affecting
revenues generated from flightseeing operations in Alaska which were inactive in
the fourth quarter together with a decrease in flight hours in the Gulf of
Mexico because of adverse weather conditions.
ENVIRONMENTAL SERVICES - Operating income in the fourth quarter was $4.6 million
on operating revenues of $40.8 million compared to operating income of $5.9
million on operating revenues of $38.9 million in the preceding quarter. The
decrease in operating income was primarily due to lower revenues from retainer
service contracts and response services, partially offset by higher revenues
from project management and consulting activity.
DERIVATIVE TRANSACTIONS - Derivative transactions, primarily consisting of
interest rate swaps and foreign currency contracts, resulted in gains of $3.3
million in the fourth quarter compared to gains of $2.8 million in the preceding
quarter.
FOREIGN CURRENCY TRANSACTIONS - Foreign currency transaction gains were $0.3
million in the fourth quarter compared to $0.7 million in the preceding quarter.
MARKETABLE SECURITY TRANSACTIONS - Marketable security and short sale
transactions resulted in losses of $6.6 million in the fourth quarter compared
to gains of $4.5 million in the preceding quarter.
EQUITY IN EARNINGS (LOSSES) OF 50% OR LESS OWNED COMPANIES - Equity losses from
joint ventures were $0.2 million in the fourth quarter compared to earnings of
$2.6 million in the preceding quarter. During the fourth quarter the Company
provided $7.0 million for income taxes on the accumulated earnings of certain
foreign joint ventures which had previously been deemed permanently reinvested
overseas. Additionally, the Company recognized earnings of $5.0 million, net of
tax, on the fourth quarter disposition of an asset from one of its foreign joint
ventures.
CAPITAL COMMITMENTS - The Company's unfunded capital commitments as of December
31, 2006 consisted primarily of marine service vessels, harbor tugs,
helicopters, barges and capital improvements to certain of the existing marine
transportation fleet and totaled $567.9 million, of which $335.9 million is
payable in 2007, with the remaining balance payable through 2009. Of these
commitments, approximately $177.3 million may be terminated without further
liability other than the payment of liquidated damages of $26.9 million in the
aggregate. Subsequent to the end of the quarter the Company committed to
purchase additional property and equipment for $70.1 million. As of December 31,
2006 the Company held balances of Cash, Cash Equivalents, Restricted Cash,
Securities, Construction Reserve Funds and Title XI Reserve Funds totaling
$925.7 million.
* * * * *
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.
2
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
Helicopter 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)
627-6380 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 TWELVE MONTHS ENDED
DECEMBER 31, DECEMBER 31,
-------------------------- ---------------------------
2006 2005 2006 2005
------------------------------------------------------
Operating Revenues $ 337,183 $ 334,119 $ 1,323,445 $ 972,004
------------- ----------- ------------- ------------
Costs and Expenses:
Operating expenses 189,799 177,012 743,200 589,928
Administrative and general 35,522 36,256 130,760 105,195
Depreciation and amortization 40,159 44,405 166,714 127,714
------------- ----------- ------------- ------------
265,480 257,673 1,040,674 822,837
------------- ----------- ------------- ------------
Gains on Asset Dispositions and Impairments, Net 20,957 13,575 77,977 28,285
------------- ----------- ------------- ------------
Operating Income 92,660 90,021 360,748 177,452
------------- ----------- ------------- ------------
Other Income (Expense):
Interest income 11,492 6,284 37,993 19,201
Interest expense (13,457) (16,470) (53,679) (48,152)
Derivative transaction gains (losses), net 3,258 (881) 6,343 (7,074)
Foreign currency transaction gains, net 332 16,895 2,358 23,183
Marketable security transaction gains (losses), net (6,626) 2,957 (9,003) 28,081
Other, net 207 176 947 1,707
------------- ----------- ------------- ------------
(4,794) 8,961 (15,041) 16,946
------------- ----------- ------------- ------------
Income from Continuing Operations Before Income Tax
Expense (Benefit), Minority Interest in (Income) Loss
of Subsidiaries and Equity In Earnings (Losses) of 50%
or Less Owned Companies 87,866 98,982 345,707 194,398
Income Tax Expense (Benefit) 28,949 (6,336) 125,120 29,746
------------- ----------- ------------- ------------
Income from Continuing Operations Before Minority Interest
in (Income) Loss of Subsidiaries and Equity in Earnings
(Losses) of 50% or Less Owned Companies 58,917 105,318 220,587 164,652
Minority Interest in (Income) Loss of Subsidiaries (367) (71) (1,005) 32
Equity in Earnings (Losses) of 50% or Less Owned Companies (195) 1,250 14,812 5,661
------------- ----------- ------------- ------------
Income from Continuing Operations 58,355 106,497 234,394 170,345
Income from Discontinued Operations -- -- -- 364
------------- ----------- ------------- ------------
Net Income $ 58,355 $ 106,497 $ 234,394 $ 170,709
============= =========== ============= ============
Basic Earnings Per Common Share:
Income from Continuing Operations $ 2.40 $ 4.28 $ 9.52 $ 7.89
Income from Discontinued Operations -- -- -- 0.02
------------- ----------- ------------- ------------
Net Income $ 2.40 $ 4.28 $ 9.52 $ 7.91
============= =========== ============= ============
Diluted Earnings Per Common Share:
Income from Continuing Operations $ 2.12 $ 3.76 $ 8.44 $ 6.93
Income from Discontinued Operations -- -- -- 0.02
------------- ----------- ------------- ------------
Net Income $ 2.12 $ 3.76 $ 8.44 $ 6.95
============= =========== ============= ============
Weighted Average Common Shares Outstanding:
Basic 24,311 24,884 24,634 21,595
Diluted 28,053 28,618 28,350 25,273
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SEACOR HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS, EXCEPT PER SHARE DATA, UNAUDITED)
THREE MONTHS ENDED
--------------------------------------------------------------------------
DEC. 31, SEP. 30, JUN. 30, MAR. 31, DEC. 31,
2006 2006 2006 2006 2005
-------------- ------------ ------------- ------------- -------------
Operating Revenues $ 337,183 $ 349,361 $ 330,986 $ 305,915 $ 334,119
-------------- ------------ ------------- ------------- -------------
Costs and Expenses:
Operating expenses 189,799 196,608 187,149 169,644 177,012
Administrative and general 35,522 30,880 32,865 31,493 36,256
Depreciation and amortization 40,159 40,977 42,318 43,260 44,405
-------------- ------------ ------------- ------------- -------------
265,480 268,465 262,332 244,397 257,673
-------------- ------------ ------------- ------------- -------------
Gains on Asset Dispositions and Impairments, Net 20,957 12,054 24,089 20,877 13,575
-------------- ------------ ------------- ------------- -------------
Operating Income 92,660 92,950 92,743 82,395 90,021
-------------- ------------ ------------- ------------- -------------
Other Income (Expense):
Interest income 11,492 10,279 9,086 7,136 6,284
Interest expense (13,457) (13,307) (12,847) (14,068) (16,470)
Derivative transaction gains (losses), net 3,258 2,813 3,084 (2,812) (881)
Foreign currency transaction gains, net 332 650 1,217 159 16,895
Marketable security transaction gains (losses),
net (6,626) 4,549 (3,341) (3,585) 2,957
Other, net 207 117 595 28 176
-------------- ------------ ------------- ------------- -------------
(4,794) 5,101 (2,206) (13,142) 8,961
-------------- ------------ ------------- ------------- -------------
Income Before Income Tax Expense (Benefit),
Minority Interest in Income of Subsidiaries and
Equity In Earnings (Losses) of 50% or Less
Owned Companies 87,866 98,051 90,537 69,253 98,982
Income Tax Expense (Benefit) 28,949 37,037 33,703 25,431 (6,336)
-------------- ------------ ------------- ------------- -------------
Income Before Minority Interest in Income of
Subsidiaries and Equity in Earnings (Losses) of
50% or Less Owned Companies 58,917 61,014 56,834 43,822 105,318
Minority Interest in Income of Subsidiaries (367) (451) (104) (83) (71)
Equity in Earnings (Losses) of 50% or Less Owned
Companies (195) 2,607 6,031 6,369 1,250
v
Net Income $ 58,355 $ 63,170 $ 62,761 $ 50,108 $ 106,497
============== ============ ============= ============= =============
Basic Earnings Per Common Share $ 2.40 $ 2.57 $ 2.52 $ 2.02 $ 4.28
Diluted Earnings Per Common Share $ 2.12 $ 2.28 $ 2.24 $ 1.80 $ 3.76
Weighted Average Common Shares Outstanding:
Basic 24,311 24,575 24,869 24,767 24,884
Diluted 28,053 28,282 28,568 28,495 28,618
Common Shares Outstanding at Period End 24,519 24,457 24,801 25,076 24,819
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SEACOR HOLDINGS INC.
OPERATING INCOME (LOSS) BY LINE OF BUSINESS
(IN THOUSANDS, UNAUDITED)
THREE MONTHS ENDED
----------------------------------------------------------------------------
DEC. 31, SEP. 30, JUN. 30, MAR. 31, DEC. 31,
2006 2006 2006 2006 2005
------------ ---------------- ------------- -------------- -------------
OFFSHORE MARINE SERVICES
- ------------------------
Operating Revenues $ 174,753 $ 179,687 $ 168,285 $ 159,852 $ 168,823
------------ ---------------- ------------- -------------- -------------
Costs and Expenses:
Operating expenses 82,988 89,791 86,695 79,506 85,377
Administrative and general 13,101 10,118 11,470 11,688 12,809
Depreciation and amortization 17,239 19,353 21,793 23,127 22,772
------------ ---------------- ------------- -------------- -------------
113,328 119,262 119,958 114,321 120,958
------------ ---------------- ------------- -------------- -------------
Gains on Asset Dispositions and Impairments, Net 13,797 10,168 22,489 20,552 6,578
------------ ---------------- ------------- -------------- -------------
Operating Income $ 75,222 $ 70,593 $ 70,816 $ 66,083 $ 54,443
============ ================ ============= ============== =============
MARINE TRANSPORTATION SERVICES
- ------------------------------
Operating Revenues $ 34,408 $ 35,617 $ 37,446 $ 37,724 $ 36,625
------------ ---------------- ------------- -------------- -------------
Costs and Expenses:
Operating expenses 20,941 21,017 18,064 21,471 17,677
Administrative and general 1,096 1,064 1,049 964 874
Depreciation and amortization 10,159 10,159 10,162 10,185 11,641
------------ ---------------- ------------- -------------- -------------
32,196 32,240 29,275 32,620 30,192
------------ ---------------- ------------- -------------- -------------
Gains on Asset Dispositions -- -- -- -- --
------------ ---------------- ------------- -------------- -------------
Operating Income $ 2,212 $ 3,377 $ 8,171 $ 5,104 $ 6,433
============ ================ ============= ============== =============
INLAND RIVER SERVICES
- ---------------------
Operating Revenues $ 37,841 $ 38,798 $ 36,339 $ 34,488 $ 40,666
------------ ---------------- ------------- -------------- -------------
Costs and Expenses:
Operating expenses 16,752 18,563 18,649 15,395 18,498
Administrative and general 1,330 1,013 829 816 691
Depreciation and amortization 3,755 3,804 3,267 3,474 3,479
------------ ---------------- ------------- -------------- -------------
21,837 23,380 22,745 19,685 22,668
------------ ---------------- ------------- -------------- -------------
Gains on Asset Dispositions 84 -- -- -- --
------------ ---------------- ------------- -------------- -------------
Operating Income $ 16,088 $ 15,418 $ 13,594 $ 14,803 $ 17,998
============ ================ ============= ============== =============
AVIATION SERVICES
- -----------------
Operating Revenues $ 38,858 $ 43,799 $ 39,903 $ 33,454 $ 38,856
------------ ---------------- ------------- -------------- -------------
Costs and Expenses:
Operating expenses 32,818 33,269 29,137 26,345 26,960
Administrative and general 3,880 3,413 4,158 3,494 4,571
Depreciation and amortization 5,847 5,264 4,591 4,254 4,199
------------ ---------------- ------------- -------------- -------------
42,545 41,946 37,886 34,093 35,730
------------ ---------------- ------------- -------------- -------------
Gains on Asset Dispositions 7,065 1,880 1,818 325 7,024
------------ ---------------- ------------- -------------- -------------
Operating Income (Loss) $ 3,378 $ 3,733 $ 3,835 $ (314) $ 10,150
============ ================ ============= ============== =============
ENVIRONMENTAL SERVICES
- ----------------------
Operating Revenues $ 40,762 $ 38,885 $ 36,946 $ 27,923 $ 37,583
------------ ---------------- ------------- -------------- -------------
Costs and Expenses:
Operating expenses 29,931 26,370 26,345 20,508 21,852
Administrative and general 5,101 5,931 5,156 4,405 4,669
Depreciation and amortization 1,153 731 741 733 664
------------ ---------------- ------------- -------------- -------------
36,185 33,032 32,242 25,646 27,185
------------ ---------------- ------------- -------------- -------------
Gains (Losses) on Asset Dispositions and
Impairments, Net 11 6 (215) -- (27)
------------ ---------------- ------------- -------------- -------------
Operating Income $ 4,588 $ 5,859 $ 4,489 $ 2,277 $ 10,371
============ ================ ============= ============== =============
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SEACOR HOLDINGS INC.
OPERATING INCOME (LOSS) BY LINE OF BUSINESS (CONTINUED)
(IN THOUSANDS, UNAUDITED)
THREE MONTHS ENDED
----------------------------------------------------------------------------
DEC. 31, SEP. 30, JUN. 30, MAR. 31, DEC. 31,
2006 2006 2006 2006 2005
-------------- ------------- -------------- ------------- -------------
HARBOR AND OFFSHORE TOWING SERVICES
Operating Revenues $ 11,632 $ 12,552 $ 12,156 $ 12,884 $ 11,949
-------------- ------------- -------------- ------------- -------------
Costs and Expenses:
Operating expenses 7,252 7,744 8,336 6,841 7,043
Administrative and general 2,089 1,662 1,851 1,604 1,663
Depreciation and amortization 1,264 1,265 1,275 1,259 1,303
-------------- ------------- -------------- ------------- -------------
10,605 10,671 11,462 9,704 10,009
-------------- ------------- -------------- ------------- -------------
Gains on Asset Dispositions -- -- -- -- --
-------------- ------------- -------------- ------------- -------------
Operating Income $ 1,027 $ 1,881 $ 694 $ 3,180 $ 1,940
============== ============= ============== ============= =============
CORPORATE AND ELIMINATIONS
Operating Revenues $ (1,071) $ 23 $ (89) $ (410) $ (383)
-------------- ------------- -------------- ------------- -------------
Costs and Expenses:
Operating expenses (883) (146) (77) (422) (395)
Administrative and general 8,925 7,679 8,352 8,522 10,979
Depreciation and amortization 742 401 489 228 347
-------------- ------------- -------------- ------------- -------------
8,784 7,934 8,764 8,328 10,931
-------------- ------------- -------------- ------------- -------------
Losses on Asset Dispositions -- -- (3) -- --
-------------- ------------- -------------- ------------- -------------
Operating Loss $ (9,855) $ (7,911) $ (8,856) $ (8,738) $ (11,314)
============== ============= ============== ============= =============
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SEACOR HOLDINGS INC.
SELECTED CONSOLIDATED BALANCE SHEET DATA
(IN THOUSANDS, UNAUDITED)
DEC. 31, SEP. 30, JUN. 30, MAR. 31, DEC. 31,
2006 2006 2006 2006 2005
------------- ------------- ------------ ------------- ------------
Cash, Cash Equivalents, Restricted Cash,
Securities, Construction Reserve
Funds, and Title XI Reserve Funds $ 925,725 $ 839,057 $ 803,360 $ 764,649 $ 684,521
Receivables 312,956 282,040 278,000 270,794 260,831
Current Assets 938,369 893,813 915,245 900,488 839,091
Net Property and Equipment 1,770,210 1,764,990 1,737,811 1,733,757 1,759,393
Total Assets 3,252,982 3,076,296 3,014,963 2,961,627 2,885,141
Current Portion of Long-term Debt and
Capital Lease Obligations 11,708 10,443 8,970 10,420 10,505
Current Liabilities 295,509 287,872 287,797 280,279 247,906
Long-term Debt & Capital Lease Obligations 961,003 964,567 955,567 964,096 977,635
Stockholders' Equity 1,557,078 1,493,036 1,458,302 1,418,190 1,361,305
8