EXHIBIT 99.1
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[SEACOR LOGO] PRESS RELEASE
SEACOR HOLDINGS ANNOUNCES SECOND QUARTER RESULTS
Fort Lauderdale, Florida
July 26, 2007
FOR IMMEDIATE RELEASE -- SEACOR Holdings Inc. (NYSE:CKH) announced net income
for the second quarter ended June 30, 2007 of $65.3 million, or $2.41 per
diluted share, on operating revenues of $325.5 million. For the six months ended
June 30, 2007, net income was $103.4 million, or $3.80 per diluted share, on
operating revenues of $636.2 million.
For the second quarter ended June 30, 2006, net income was $62.8 million, or
$2.24 per diluted share, on operating revenues of $331.0 million. For the six
months ended June 30, 2006, net income was $112.9 million, or $4.04 per diluted
share, on operating revenues of $636.9 million.
For the preceding quarter ended March 31, 2007, net income was $38.2 million, or
$1.40 per diluted share, on operating revenues of $310.8 million.
HIGHLIGHTS FOR THE QUARTER
OFFSHORE MARINE SERVICES - Operating income in the second quarter was $95.0
million on operating revenues of $171.4 million compared to operating income of
$56.7 million on operating revenues of $170.9 million in the preceding quarter.
Second quarter results included $38.5 million in gains on asset dispositions
compared to $8.3 million in gains in the preceding quarter.
The number of days available for charter in the second quarter decreased 752, or
4.0%, primarily as a result of a net decrease in fleet count. Overall average
day rates decreased from $11,209 to $10,948 per day. Overall utilization
increased from 79.2% to 84.0%.
Operating expenses were lower primarily as a result of fewer dockings in the
second quarter, lower expenditures for vessel mobilizations and lower
depreciation expense reflecting the impact of vessel sales and certain Seabulk
vessels having been fully depreciated.
MARINE TRANSPORTATION SERVICES - Marine Transportation Services reported an
operating loss in the second quarter of $8.0 million on operating revenues of
$25.9 million compared to an operating loss of $1.6 million on operating
revenues of $30.6 million in the preceding quarter.
Operating results in the second quarter were significantly impacted by three
vessels being off-hire for various periods. Two vessels were undergoing a
retrofit to a double-hull configuration, one of which was off-hire for the
entire preceding quarter and a portion of the second quarter prior to returning
to service in early June. The other was off-hire beginning in early March and is
expected to return to service in the fourth quarter. Additionally, one vessel
reached its OPA 90 mandated retirement date at the end of the preceding quarter.
INLAND RIVER SERVICES - Operating income in the second quarter was $11.2 million
on operating revenues of $28.0 million compared to operating income of $13.7
million on operating revenues of $26.7 million in the preceding quarter. Second
quarter results included $2.6 million in gains on asset dispositions compared to
$3.6 million in gains in the preceding quarter.
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The decline in operating income before gains on asset dispositions was primarily
due to reduced activity on the river, manifested in lower rates for shipping
grain and reduced demurrage revenues. In addition, fewer covered hopper barges
were in service during the period following their sale or contribution to joint
ventures. These declines were partially offset by higher revenues attained on
equipment leased to third parties.
AVIATION SERVICES - Operating income in the second quarter was $5.1 million on
operating revenues of $55.9 million compared to an operating loss of $1.2
million on operating revenues of $45.4 million in the preceding quarter. Second
quarter results included $1.5 million in gains on asset dispositions compared to
$0.2 million in gains in the preceding quarter.
The improvement in operating results was primarily due to increased flight hours
in support of increased oil and gas activity in the U.S. Gulf of Mexico and
Alaska and the resumption of flightseeing activity in Alaska.
ENVIRONMENTAL SERVICES - Operating income in the second quarter was $3.0 million
on operating revenues of $32.2 million compared to an operating loss of $0.5
million on operating revenues of $26.5 million in the preceding quarter.
The improvement in operating results was primarily due to increased retainer
service contracts, project management services, consulting activity and
equipment sales.
MARKETABLE SECURITY TRANSACTIONS - Marketable security transactions resulted in
losses of $9.4 million in the second quarter compared to losses of $4.7 million
in the preceding quarter.
EQUITY IN EARNINGS OF 50% OR LESS OWNED COMPANIES - Equity earnings from joint
ventures were $7.8 million in the second quarter compared to earnings of $2.4
million in the preceding quarter. The increase is primarily due to the Company's
gain of $4.1 million, net of tax, relating to the sale of its Offshore Marine
Services' joint venture in Egypt and improved earnings in an Inland River
Services' joint venture.
CAPITAL COMMITMENTS - The Company's unfunded capital commitments as of June 30,
2007 consisted primarily of marine service vessels, harbor tugs, helicopters,
barges and capital improvements to certain of its existing marine transportation
fleet and totaled $516.4 million, of which $178.8 million is payable during the
remainder of 2007 and the balance payable through 2010. Of these commitments,
approximately $152.4 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 property and equipment for $102.5 million and sold certain purchase
contracts reducing its unfunded capital commitments by $12.3 million. As of June
30, 2007, the Company held balances of Cash, Cash Equivalents, Restricted Cash,
Securities, Construction Reserve Funds and Title XI Reserve Funds totaling
$921.6 million.
OTHER - As described in our press release dated June 28, 2007 SEACOR Holdings
Inc. and Nabors Industries Ltd. signed a letter of intent to form a new company
to own and operate a fleet of 20 offshore support vessels currently owned by a
Nabors affiliate. The letter of intent is no longer in effect as the parties
were unable to agree on the terms of a material definitive agreement for the new
company.
* * * * *
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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, 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, operational risks of Offshore Marine Services, Marine
Transportation Services, Harbor and Offshore Towing Services and Aviation
Services, effects of adverse weather conditions and seasonality on Aviation
Services, decreased demand for Marine Transportation Services and Harbor and
Offshore 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
Services, 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 Service's
operations, 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
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.
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SEACOR HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS, EXCEPT PER SHARE DATA, UNAUDITED)
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
----------------------- -----------------------
2007 2006 2007 2006
------------------------------------------------
Operating Revenues $ 325,454 $ 330,986 $ 636,217 $ 636,901
--------- --------- --------- ---------
Costs and Expenses:
Operating expenses 198,818 187,149 387,476 356,793
Administrative and general 33,937 32,865 68,337 64,358
Depreciation and amortization 38,055 42,318 76,930 85,578
--------- --------- --------- ---------
270,810 262,332 532,743 506,729
--------- --------- --------- ---------
Gains on Asset Dispositions and Impairments, Net 42,540 24,089 54,697 44,966
--------- --------- --------- ---------
Operating Income 97,184 92,743 158,171 175,138
--------- --------- --------- ---------
Other Income (Expense):
Interest income 11,456 9,086 23,680 16,222
Interest expense (12,108) (12,847) (25,376) (26,915)
Derivative transaction gains (losses), net (254) 3,084 (124) 272
Foreign currency transaction gains (losses), net 460 1,217 (130) 1,376
Marketable security transaction losses, net (9,430) (3,341) (14,118) (6,926)
Other, net 639 595 596 623
--------- --------- --------- ---------
(9,237) (2,206) (15,472) (15,348)
--------- --------- --------- ---------
Income Before Income Tax Expense, Minority Interest in Income of 87,947 90,537 142,699 159,790
Subsidiaries and Equity In Earnings of 50% or Less Owned
Companies
Income Tax Expense 30,206 33,703 49,048 59,134
--------- --------- --------- ---------
Income Before Minority Interest in Income of Subsidiaries and 57,741 56,834 93,651 100,656
Equity in Earnings of 50% or Less Owned Companies
Minority Interest in Income of Subsidiaries (304) (104) (482) (187)
Equity in Earnings of 50% or Less Owned Companies 7,829 6,031 10,249 12,400
--------- --------- --------- ---------
Net Income $ 65,266 $ 62,761 $ 103,418 $ 112,869
========= ========= ========= =========
Basic Earnings Per Common Share $ 2.73 $ 2.52 $ 4.29 $ 4.55
Diluted Earnings Per Common Share $ 2.41 $ 2.24 $ 3.80 $ 4.04
Weighted Average Common Shares Outstanding:
Basic 23,886 24,869 24,119 24,828
Diluted 27,582 28,568 27,832 28,542
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SEACOR HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS, EXCEPT PER SHARE DATA, UNAUDITED)
THREE MONTHS ENDED
-------------------------------------------------------------
JUN. 30, MAR. 31, DEC. 31, SEP. 30, JUN. 30,
2007 2007 2006 2006 2006
--------- --------- --------- --------- ---------
Operating Revenues $ 325,454 $ 310,763 $ 337,183 $ 349,361 $ 330,986
--------- --------- --------- --------- ---------
Costs and Expenses:
Operating expenses 198,818 188,658 189,799 196,608 187,149
Administrative and general 33,937 34,400 35,522 30,880 32,865
Depreciation and amortization 38,055 38,875 40,159 40,977 42,318
--------- --------- --------- --------- ---------
270,810 261,933 265,480 268,465 262,332
--------- --------- --------- --------- ---------
Gains on Asset Dispositions and Impairments, Net 42,540 12,157 20,957 12,054 24,089
--------- --------- --------- --------- ---------
Operating Income 97,184 60,987 92,660 92,950 92,743
--------- --------- --------- --------- ---------
Other Income (Expense):
Interest income 11,456 12,224 11,492 10,279 9,086
Interest expense (12,108) (13,268) (13,457) (13,307) (12,847)
Derivative transaction gains (losses), net (254) 130 3,258 2,813 3,084
Foreign currency transaction gains (losses), net 460 (590) 332 650 1,217
Marketable security transaction gains (losses), net (9,430) (4,688) (6,626) 4,549 (3,341)
Other, net 639 (43) 207 117 595
--------- --------- --------- --------- ---------
(9,237) (6,235) (4,794) 5,101 (2,206)
--------- --------- --------- --------- ---------
Income Before Income Tax Expense, Minority Interest in 87,947 54,752 87,866 98,051 90,537
Income of Subsidiaries and Equity In Earnings
(Losses) of 50% or Less Owned Companies
Income Tax Expense 30,206 18,842 28,949 37,037 33,703
--------- --------- --------- --------- ---------
Income Before Minority Interest in Income of 57,741 35,910 58,917 61,014 56,834
Subsidiaries and Equity in Earnings (Losses) of 50%
or Less Owned Companies
Minority Interest in Income of Subsidiaries (304) (178) (367) (451) (104)
Equity in Earnings (Losses) of 50% or Less Owned
Companies 7,829 2,420 (195) 2,607 6,031
--------- --------- --------- --------- ---------
Net Income $ 65,266 $ 38,152 $ 58,355 $ 63,170 $ 62,761
========= ========= ========= ========= =========
Basic Earnings Per Common Share $ 2.73 $ 1.57 $ 2.40 $ 2.57 $ 2.52
Diluted Earnings Per Common Share $ 2.41 $ 1.40 $ 2.12 $ 2.28 $ 2.24
Weighted Average Common Shares Outstanding:
Basic 23,886 24,354 24,311 24,575 24,869
Diluted 27,582 28,077 28,053 28,282 28,568
Common Shares Outstanding at Period End 23,895 24,181 24,519 24,457 24,801
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SEACOR HOLDINGS INC.
OPERATING INCOME (LOSS) BY LINE OF BUSINESS
(IN THOUSANDS, UNAUDITED)
THREE MONTHS ENDED
-----------------------------------------------------------
JUN. 30, MAR. 31, DEC. 31, SEP. 30, JUN. 30,
2007 2007 2006 2006 2006
--------- --------- --------- --------- ---------
OFFSHORE MARINE SERVICES
- ------------------------
Operating Revenues $ 171,442 $ 170,928 $ 174,753 $ 179,687 $ 168,285
--------- --------- --------- --------- ---------
Costs and Expenses:
Operating expenses 88,596 92,999 82,988 89,791 86,695
Administrative and general 11,893 13,023 13,101 10,118 11,470
Depreciation and amortization 14,515 16,524 17,239 19,353 21,793
--------- --------- --------- --------- ---------
115,004 122,546 113,328 119,262 119,958
--------- --------- --------- --------- ---------
Gains on Asset Dispositions and Impairments, Net 38,546 8,294 13,797 10,168 22,489
--------- --------- --------- --------- ---------
Operating Income $ 94,984 $ 56,676 $ 75,222 $ 70,593 $ 70,816
========= ========= ========= ========= =========
MARINE TRANSPORTATION SERVICES
- ------------------------------
Operating Revenues $ 25,924 $ 30,556 $ 34,408 $ 35,617 $ 37,446
--------- --------- --------- --------- ---------
Costs and Expenses:
Operating expenses 22,865 20,849 20,941 21,017 18,064
Administrative and general 1,236 1,186 1,096 1,064 1,049
Depreciation and amortization 9,790 10,158 10,159 10,159 10,162
--------- --------- --------- --------- ---------
33,891 32,193 32,196 32,240 29,275
--------- --------- --------- --------- ---------
Gains on Asset Dispositions -- -- -- -- --
--------- --------- --------- --------- ---------
Operating Income (Loss) $ (7,967) $ (1,637) $ 2,212 $ 3,377 $ 8,171
========= ========= ========= ========= =========
INLAND RIVER SERVICES
- ---------------------
Operating Revenues $ 28,020 $ 26,722 $ 37,841 $ 38,798 $ 36,339
--------- --------- --------- --------- ---------
Costs and Expenses:
Operating expenses 13,056 12,305 16,752 18,563 18,649
Administrative and general 2,101 877 1,330 1,013 829
Depreciation and amortization 4,332 3,499 3,755 3,804 3,267
--------- --------- --------- --------- ---------
19,489 16,681 21,837 23,380 22,745
--------- --------- --------- --------- ---------
Gains on Asset Dispositions 2,622 3,622 84 -- --
--------- --------- --------- --------- ---------
Operating Income $ 11,153 $ 13,663 $ 16,088 $ 15,418 $ 13,594
========= ========= ========= ========= =========
AVIATION SERVICES
- -----------------
Operating Revenues $ 55,861 $ 45,433 $ 38,858 $ 43,799 $ 39,903
--------- --------- --------- --------- ---------
Costs and Expenses:
Operating expenses 41,212 36,225 32,818 33,269 29,137
Administrative and general 4,439 4,521 3,880 3,413 4,158
Depreciation and amortization 6,601 6,079 5,847 5,264 4,591
--------- --------- --------- --------- ---------
52,252 46,825 42,545 41,946 37,886
--------- --------- --------- --------- ---------
Gains on Asset Dispositions 1,505 227 7,065 1,880 1,818
--------- --------- --------- --------- ---------
Operating Income (Loss) $ 5,114 $ (1,165) $ 3,378 $ 3,733 $ 3,835
========= ========= ========= ========= =========
ENVIRONMENTAL SERVICES
- ----------------------
Operating Revenues $ 32,168 $ 26,492 $ 40,762 $ 38,885 $ 36,946
--------- --------- --------- --------- ---------
Costs and Expenses:
Operating expenses 23,605 20,753 29,931 26,370 26,345
Administrative and general 4,323 5,301 5,101 5,931 5,156
Depreciation and amortization 1,100 909 1,153 731 741
--------- --------- --------- --------- ---------
29,028 26,963 36,185 33,032 32,242
--------- --------- --------- --------- ---------
Gains (Losses) on Asset Dispositions and
Impairments, Net (133) (16) 11 6 (215)
--------- --------- --------- --------- ---------
Operating Income (Loss) $ 3,007 $ (487) $ 4,588 $ 5,859 $ 4,489
========= ========= ========= ========= =========
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SEACOR HOLDINGS INC.
OPERATING INCOME (LOSS) BY LINE OF BUSINESS (CONTINUED)
(IN THOUSANDS, UNAUDITED)
THREE MONTHS ENDED
--------------------------------------------------------
JUN. 30, MAR. 31, DEC. 31, SEP. 30, JUN. 30,
2007 2007 2006 2006 2006
-------- -------- -------- -------- --------
HARBOR AND OFFSHORE TOWING SERVICES
- -----------------------------------
Operating Revenues $ 12,538 $ 11,682 $ 11,632 $ 12,552 $ 12,156
-------- -------- -------- -------- --------
Costs and Expenses:
Operating expenses 10,003 6,568 7,252 7,744 8,336
Administrative and general 1,999 2,182 2,089 1,662 1,851
Depreciation and amortization 1,264 1,264 1,264 1,265 1,275
-------- -------- -------- -------- --------
13,266 10,014 10,605 10,671 11,462
-------- -------- -------- -------- --------
Gains on Asset Dispositions -- 30 -- -- --
-------- -------- -------- -------- --------
Operating Income (Loss) $ (728) $ 1,698 $ 1,027 $ 1,881 $ 694
======== ======== ======== ======== ========
OTHER
- -----
Operating Revenues $ 204 $ -- $ -- $ -- $ --
-------- -------- -------- -------- --------
Costs and Expenses:
Operating expenses 174 9 -- -- --
Administrative and general 207 3 -- 6 2
Depreciation and amortization -- -- -- -- --
-------- -------- -------- -------- --------
381 12 -- -- 2
-------- -------- -------- -------- --------
Gains on Asset Dispositions -- -- -- -- --
-------- -------- -------- -------- --------
Operating Loss $ (177) $ (12) $ -- $ (6) $ (2)
======== ======== ======== ======== ========
CORPORATE AND ELIMINATIONS
- --------------------------
Operating Revenues $ (703) $ (1,050) $ (1,071) $ 23 $ (89)
-------- -------- -------- -------- --------
Costs and Expenses:
Operating expenses (693) (1,050) (883) (146) (77)
Administrative and general 7,739 7,307 8,925 7,673 8,350
Depreciation and amortization 453 442 742 401 489
-------- -------- -------- -------- --------
7,499 6,699 8,784 7,928 8,762
-------- -------- -------- -------- --------
Losses on Asset Dispositions -- -- -- -- (3)
-------- -------- -------- -------- --------
Operating Loss $ (8,202) $ (7,749) $ (9,855) $ (7,905) $ (8,854)
======== ======== ======== ======== ========
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SEACOR HOLDINGS INC.
SELECTED CONSOLIDATED BALANCE SHEET DATA
(IN THOUSANDS, UNAUDITED)
JUN. 30, MAR. 31, DEC. 31, SEP. 30, JUN. 30,
2007 2007 2006 2006 2006
---------- ---------- ---------- ---------- ----------
Cash, Cash Equivalents, Restricted Cash,
Securities, Construction Reserve Funds and
Title XI Reserve Funds $ 921,617 $ 815,928 $ 925,725 $ 839,057 $ 803,360
Receivables 292,159 300,847 312,956 282,040 278,000
Current Assets 924,792 815,534 938,369 893,813 915,245
Net Property and Equipment 1,855,641 1,882,731 1,770,210 1,764,990 1,737,811
Total Assets 3,371,798 3,271,047 3,252,982 3,076,296 3,014,963
Current Portion of Long-term Debt and Capital
Lease Obligations 12,407 11,736 11,708 10,443 8,970
Current Liabilities 353,303 314,012 295,509 287,872 287,797
Long-term Debt & Capital Lease Obligations 943,758 959,007 961,003 964,567 955,567
Stockholders' Equity 1,597,143 1,554,233 1,557,078 1,493,036 1,458,302
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