SEACOR Holdings Inc. Provides Historical Financial Information to Present Era Group Inc. as a Discontinued Operation

Marketwired

FORT LAUDERDALE, FL--(Marketwired - Apr 11, 2013) - On January 31, 2013, SEACOR Holdings Inc. ("SEACOR") (NYSE: CKH) completed the spin-off of its former aviation services business segment by means of a dividend to SEACOR's stockholders of all the issued and outstanding common stock (the "Spin-off") of Era Group Inc. ("Era Group"). Era Group filed a Registration Statement on Form 10 with the Securities and Exchange Commission ("SEC") that was declared effective on January 14, 2013. Prior to the Spin-off, SEACOR and Era Group entered into a Distribution Agreement and several other agreements that govern the post-Spin-off relationship. Era Group is now an independent public company whose common stock is listed on the New York Stock Exchange under the symbol "ERA."

For informational purposes, the accompanying consolidated balance sheets of SEACOR as of December 31, 2012, 2011, 2010, 2009 and 2008, and the related consolidated statements of income and cash flows for each of the five years in the period ended December 31, 2012, present Era Group as a discontinued operation in addition to the operations previously reported as discontinued in SEACOR's most recent Annual Report on Form 10-K filed with the SEC on February 27, 2013.

SEACOR is a global provider of equipment and services primarily supporting the offshore oil and gas and marine transportation industries. SEACOR offers customers a diversified suite of services including offshore marine, inland river and shipping. SEACOR is focused on providing highly responsive local service combined with the highest safety standards, innovative technology, modern, efficient equipment and dedicated professional employees. SEACOR is publicly traded on the New York Stock Exchange (NYSE) under the symbol CKH.

Certain statements discussed in this release as well as in other reports, materials and oral statements that the Company releases from time to time to the public constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Generally, words such as "anticipate," "estimate," "expect," "project," "intend," "believe," "plan," "target," "forecast" and similar expressions are intended to identify forward-looking statements. Such forward-looking statements concern management's expectations, strategic objectives, business prospects, anticipated economic performance and financial condition and other similar matters. These statements are not guarantees of future performance and actual events or results may differ significantly from these statements. Actual events or results are subject to significant known and unknown risks, uncertainties and other important factors, including decreased demand and loss of revenues as a result of U.S. government implemented moratoriums directing operators to cease certain drilling activities and any extension of such moratoriums (the "Moratoriums"), weakening demand for the Company's services as a result of unplanned customer suspensions, cancellations, rate reductions or non-renewals of vessel charters or failures to finalize commitments to charter vessels in response to Moratoriums, increased government legislation and regulation of the Company's businesses could increase cost of operations, increased competition if the Jones Act is repealed, liability, legal fees and costs in connection with the provision of emergency response services, including the Company's involvement in response to the oil spill as a result of the sinking of the Deepwater Horizon in April 2010, decreased demand for the Company's services as a result of declines in the global economy, declines in valuations in the global financial markets and a lack of liquidity in the credit sectors, including, interest rate fluctuations, availability of credit, inflation rates, change in laws, trade barriers, commodity prices and currency exchange fluctuations, the cyclical nature of the oil and gas industry, activity in foreign countries and changes in foreign political, military and economic conditions, changes in foreign and domestic oil and gas exploration and production activity, safety record requirements related to Offshore Marine Services and Shipping Services, decreased demand for Shipping 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, compliance with U.S. and foreign government laws and regulations, including environmental laws and regulations, the dependence of Offshore Marine Services and Shipping Services on several customers, consolidation of the Company's customer base, the ongoing need to replace aging vessels, industry fleet capacity, restrictions imposed by the Shipping Acts on the amount of foreign ownership of the Company's Common Stock, operational risks of Offshore Marine Services and Shipping Services, effects of adverse weather conditions and seasonality, 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 Services' operations, sudden and unexpected changes in commodity prices, futures and options, global weather conditions, political instability, changes in currency exchanges rates, and product availability in agriculture commodity trading and logistics activities, adequacy of insurance coverage, the attraction and retention of qualified personnel by the Company, and various other matters and factors, many of which are beyond the Company's control as well as those discussed in Item 1A (Risk Factors) of the Company's Annual report on Form 10-K. In addition, these statements constitute the Company's cautionary statements under the Private Securities Litigation Reform Act of 1995. It should be understood that it is not possible to predict or identify all such factors. Consequently, the following should not be considered to be a complete discussion of all potential risks or uncertainties. Forward-looking statements speak only as of the date of the document in which they are made. The Company disclaims any obligation or undertaking to provide any updates or revisions to any forward-looking statement to reflect any change in the Company's expectations or any change in events, conditions or circumstances on which the forward-looking statement is based, except as required by law. It is advisable, however, to consult any further disclosures the Company makes on related subjects in its filings with the Securities and Exchange Commission, including Quarterly Reports on Form 10-Q and Current Reports on Form 8-K (if any).

   
SEACOR HOLDINGS INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, unaudited)
 
       
    December 31,  
    2012   2011   2010   2009   2008  
ASSETS                                
Current Assets:                                
  Cash and cash equivalents   $ 248,204   $ 381,482   $ 354,563   $ 451,041   $ 264,761  
  Restricted cash     28,285     21,281     12,651     34,014     20,787  
  Marketable securities     21,668     66,898     147,409     68,139     53,817  
  Receivables:                                
    Trade, net of allowance for doubtful accounts     224,944     231,288     216,297     231,698     204,814  
    Other     45,334     43,631     63,442     68,817     33,680  
  Inventories     25,787     12,958     9,927     36,837     44,716  
  Deferred income taxes     3,530     9,007     4,127     3,158     4,363  
  Prepaid expenses and other     12,719     7,311     7,729     6,470     6,559  
  Discontinued operations     108,153     266,691     328,657     143,743     115,981  
    Total current assets     718,624     1,040,547     1,144,802     1,043,917     749,478  
Property and Equipment:                                
  Historical cost     2,238,383     1,986,731     1,873,001     2,050,713     1,988,093  
  Accumulated depreciation     (763,803 )   (665,553 )   (620,161 )   (586,118 )   (473,571 )
      1,474,580     1,321,178     1,252,840     1,464,595     1,514,522  
  Construction in progress     110,296     119,479     70,123     57,738     97,145  
  Net property and equipment     1,584,876     1,440,657     1,322,963     1,522,333     1,611,667  
Investments, at Equity, and Advances to 50% or Less Owned Companies     272,535     199,490     152,315     158,306     120,808  
Construction Reserve Funds & Title XI Reserve Funds     195,629     259,974     323,885     289,750     305,757  
Goodwill     17,978     56,702     53,413     46,205     43,119  
Intangible Assets, Net     15,305     21,528     19,745     23,430     28,250  
Other Assets     55,123     86,961     50,256     37,704     33,148  
Discontinued Operations     840,724     822,275     693,010     601,974     567,427  
    $ 3,700,794   $ 3,928,134   $ 3,760,389   $ 3,723,619   $ 3,459,654  
LIABILITIES AND EQUITY                                
Current Liabilities:                                
  Current portion of long-term debt   $ 21,920   $ 38,304   $ 11,928   $ 36,231   $ 33,257  
  Current portion of capital lease obligations     2,900     2,368     1,030     966     907  
  Accounts payable and accrued expenses     107,892     133,743     146,479     113,049     80,819  
  Accrued wages and benefits     19,303     26,924     27,053     21,164     26,187  
  Accrued interest     5,226     7,722     7,611     8,364     9,938  
  Accrued income taxes     8,089     15,842     15,042     16,977     16,862  
  Short sales of marketable securities     8,277     22,612     36,076     18,442     2,938  
  Accrued capital, repair and maintenance expenditures     8,013     7,490     7,462     7,522     15,528  
  Deferred revenues     6,592     9,845     20,829     12,906     3,083  
  Other current liabilities     37,593     47,112     49,003     37,723     44,052  
  Discontinued operations     39,836     89,564     213,000     41,768     43,230  
    Total current liabilities     265,641     401,526     535,513     315,112     276,801  
Long-Term Debt     655,309     710,352     661,542     748,503     895,296  
Capital Lease Obligations     59     3,068     5,493     6,624     7,685  
Deferred Income Taxes     426,027     420,591     434,043     486,724     459,683  
Deferred Gains and Other Liabilities     120,342     134,925     147,477     103,568     112,738  
Discontinued Operations     490,741     449,609     178,956     97,197     65,223  
    Total liabilities     1,958,119     2,120,071     1,963,024     1,757,728     1,817,426  
Equity:                                
  SEACOR Holdings Inc. stockholders' equity:                                
    Preferred stock     --     --     --     --     --  
    Common stock     367     364     361     356     324  
    Additional paid-in capital     1,330,324     1,256,209     1,225,296     1,182,023     956,457  
    Retained earnings     1,473,509     1,512,679     1,471,623     1,546,581     1,402,771  
    Shares held in treasury, at cost     (1,088,560 )   (971,687 )   (903,004 )   (768,438 )   (724,357 )
    Accumulated other comprehensive loss, net of tax     (1,986 )   (7,958 )   (7,039 )   (3,260 )   (5,045 )
      1,713,654     1,789,607     1,787,237     1,957,262     1,630,150  
  Noncontrolling interests in subsidiaries     29,021     18,456     10,128     8,629     12,078  
    Total equity     1,742,675     1,808,063     1,797,365     1,965,891     1,642,228  
    $ 3,700,794   $ 3,928,134   $ 3,760,389   $ 3,723,619   $ 3,459,654  
                                 
                                 
   
SEACOR HOLDINGS INC.
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except share data, unaudited)
 
   
  For the years ended December 31,  
  2012   2011   2010   2009   2008  
Operating Revenues $ 1,308,297   $ 1,032,497   $ 1,173,502   $ 1,109,641   $ 1,218,013  
Costs and Expenses:                              
    Operating   977,469     745,553     719,941     704,920     728,206  
    Administrative and general   166,743     131,772     140,665     119,728     134,619  
    Depreciation and amortization   131,667     106,873     113,774     117,419     114,910  
    1,275,879     984,198     974,380     942,067     977,735  
Gains on Asset Dispositions and Impairments, Net   23,987     18,839     43,977     27,557     84,256  
Operating Income   56,405     67,138     243,099     195,131     324,534  
Other Income (Expense):                              
  Interest income   17,360     12,879     8,740     4,148     19,470  
  Interest expense   (37,891 )   (39,759 )   (43,776 )   (58,939 )   (59,729 )
  Debt extinguishment gains (losses), net   (160 )   (99 )   (1,460 )   (5,587 )   6,265  
  Marketable security gains (losses), net   12,891     (7,893 )   (2,159 )   24,059     30,105  
  Derivative gains (losses), net   (2,812 )   (30,055 )   6,842     7,288     (13,433 )
  Foreign currency gains (losses), net   1,631     540     (4,551 )   6,569     (7,798 )
  Other, net   7,148     1,018     3,659     244     275  
    (1,833 )   (63,369 )   (32,705 )   (22,218 )   (24,845 )
Income from Continuing Operations Before Income Tax Expense (Benefit) and Equity in Earnings (Losses) of 50% or Less Owned Companies   54,572     3,769     210,394     172,913     299,689  
Income Tax Expense (Benefit):                              
    Current   47,582     30,569     133,734     36,429     84,422  
    Deferred   (23,401 )   (27,259 )   (53,929 )   30,056     19,218  
    24,181     3,310     79,805     66,485     103,640  
Income from Continuing Operations Before Equity in Earnings (Losses) of 50% or Less Owned Companies   30,391     459     130,589     106,428     196,049  
Equity in Earnings (Losses) of 50% or Less Owned Companies, Net of Tax   (5,764 )   9,908     12,633     12,843     11,914  
Income from Continuing Operations   24,627     10,367     143,222     119,271     207,963  
Income from Discontinued Operations, Net of Tax   35,832     31,783     102,762     25,832     11,460  
Net Income   60,459     42,150     245,984     145,103     219,423  
Net Income (Loss) attributable to Noncontrolling Interests in Subsidiaries   (756 )   1,094     1,260     1,293     880  
Net Income attributable to SEACOR Holdings Inc. $ 61,215   $ 41,056   $ 244,724   $ 143,810   $ 218,543  
                               
Net Income attributable to SEACOR Holdings Inc.:                              
  Continuing operations $ 25,343   $ 9,273   $ 141,962   $ 117,978   $ 207,083  
  Discontinued operations   35,872     31,783     102,762     25,832     11,460  
  $ 61,215   $ 41,056   $ 244,724   $ 143,810   $ 218,543  
Basic Earnings Per Common Share of SEACOR Holdings Inc.:                              
  Continuing operations $ 1.24   $ 0.44   $ 6.63   $ 5.91   $ 9.91  
  Discontinued operations   1.76     1.50     4.80     1.30     0.55  
  $ 3.00   $ 1.94   $ 11.43   $ 7.21   $ 10.46  
Diluted Earnings Per Common Share of SEACOR Holdings Inc.:                              
  Continuing operations $ 1.22   $ 0.43   $ 6.52   $ 5.47   $ 8.79  
  Discontinued operations   1.73     1.48     4.73     1.10     0.46  
  $ 2.95   $ 1.91   $ 11.25   $ 6.57   $ 9.25  
Weighted Average Common Shares Outstanding:                              
  Basic   20,426,770     21,119,461     21,402,441     19,950,702     20,893,390  
  Diluted   20,775,896     21,466,843     21,757,217     23,388,168     24,699,181  
Common Shares Outstanding at Period End   19,887,933     20,933,116     21,399,508     22,612,826     20,017,547  
Special Cash Dividend Declared and Paid Per Common Share of SEACOR Holdings Inc. $ 5.00   $ --   $ 15.00   $ --   $ --  
                               
                               
   
SEACOR HOLDINGS INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands, unaudited)
 
   
    For the years ended December 31,  
    2012   2011   2010   2009   2008  
Cash Flows from Operating Activities of Continuing Operations:                                
  Income from Continuing Operations   $ 24,627   $ 10,367   $ 143,222   $ 119,271   $ 207,963  
  Adjustments to reconcile income from continuing operations to net cash provided by operating activities of continuing operations:                                
    Depreciation and amortization     131,667     106,873     113,774     117,419     114,910  
    Amortization of deferred gains on sale and leaseback transactions     (16,652 )   (22,191 )   (17,819 )   (16,960 )   (16,552 )
    Debt discount amortization, net     1,266     828     768     7,448     5,852  
    Amortization of share awards     32,930     21,589     19,254     12,993     12,199  
    Director stock awards     357     359     303     380     450  
    Bad debt expense (income)     1,311     (56 )   304     2,194     1,446  
    Gains on asset dispositions and impairments, net     (23,987 )   (18,839 )   (43,977 )   (27,557 )   (84,256 )
    Debt extinguishment (gains) losses, net     160     99     1,460     5,587     (6,265 )
    Marketable security (gains) losses, net     (12,891 )   7,893     2,159     (24,059 )   (30,105 )
    Purchases of marketable securities     (40,396 )   (117,145 )   (107,716 )   (35,523 )   (60,288 )
    Proceeds from sale of marketable securities     36,537     178,016     44,992     61,595     24,168  
    Derivative (gains) losses, net     2,812     30,055     (6,842 )   (7,288 )   13,433  
    Cash settlements on derivative transactions, net     (11,868 )   (20,636 )   (6,858 )   5,956     (11,310 )
    Foreign currency (gains) losses, net     (1,631 )   (540 )   4,551     (6,569 )   7,798  
    Deferred income tax expense (benefit)     (23,401 )   (27,259 )   (53,929 )   30,056     19,218  
    Equity in (earnings) losses of 50% or less owned companies, net of tax     5,764     (9,908 )   (12,633 )   (12,843 )   (11,914 )
    Dividends received from 50% or less owned companies     6,606     8,346     17,912     15,920     10,384  
    Other, net     542     484     (280 )   1,068     1,041  
    Changes in operating assets and liabilities:                                
      (Increase) decrease in receivables     18,775     (18,562 )   25,147     (55,029 )   8,518  
      (Increase) decrease in prepaid expenses and other assets     6,655     (1,672 )   26,536     11,618     19,271  
      Increase (decrease) in accounts payable, accrued expenses and other liabilities     (57,696 )   (13,473 )   67,020     21,156     6,644  
        Net cash provided by operating activities of continuing operations     81,487     114,628     217,348     226,833     232,605  
Cash Flows from Investing Activities of Continuing Operations:                                
  Purchases of property and equipment     (239,350 )   (165,264 )   (112,629 )   (82,407 )   (198,913 )
  Proceeds from disposition of property and equipment     114,032     75,733     359,414     77,124     154,520  
  Purchases of marketable securities     --     --     --     --     (212,590 )
  Proceeds from sale of marketable securities     --     --     --     --     141,886  
  Cash settlements on derivative transactions, net     --     --     --     --     (1,245 )
  Investments in and advances to 50% or less owned companies     (45,572 )   (41,313 )   (55,462 )   (27,453 )   (14,043 )
  Return of investments and advances from 50% or less owned companies     87,275     22,422     14,160     1,922     2,212  
  Proceeds on sale of investments in 50% or less owned companies     --     --     --     136     --  
  Net advances on revolving credit line to 50% or less owned companies     (300 )   (4,339 )   (9,067 )   --     --  
  (Advances) principal payments on third party notes receivable, net     32,634     (35,724 )   (5,342 )   2,433     (6,222 )
  Net (increase) decrease in restricted cash     (7,004 )   (8,630 )   21,363     (13,227 )   9,837  
  Net (increase) decrease in construction reserve funds and title XI funds     64,345     63,911     (34,135 )   16,007     99,243  
  Repayments on (investments in) leases, net     3,399     8,982     (15,031 )   (1,667 )   59  
  Business acquisitions, net of cash acquired     (148,088 )   (90,588 )   (5,602 )   (4,112 )   (5,622 )
  Cash disposed on sale of subsidiary, net of cash proceeds on sale     --     --     --     (154 )   --  
        Net cash provided by (used in) investing activities of continuing operations     (138,629 )   (174,810 )   157,669     (31,398 )   (30,878 )
Cash Flows from Financing Activities of Continuing Operations:                                
  Payments on long-term debt and capital lease obligations     (484,153 )   (36,898 )   (92,755 )   (311,814 )   (177,030 )
  Net borrowings (repayments) under inventory financing arrangements     (14,600 )   20,210     (21,647 )   2,200     --  
  Proceeds from issuance of long-term debt, net of offering costs     414,051     52,877     --     349,297     111,250  
  Purchase of conversion option in convertible debt     --     --     --     (2,030 )   --  
  Proceeds from issuance of conversion option in convertible debt, net of offering costs     48,245     --     --     --     --  
  Special Cash Dividend     (100,385 )   --     (319,682 )   --     --  
  Common stock acquired for treasury     (119,551 )   (71,290 )   (137,068 )   (45,854 )   (240,069 )
  Proceeds and tax benefits from share award plans     11,683     11,888     26,225     5,742     6,655  
  Purchase of subsidiary shares from noncontrolling interests     --     (1,149 )   (39 )   (1,210 )   --  
  Cash received from (dividends paid to) noncontrolling interests, net     (2,818 )   (915 )   285     (2,257 )   1,632  
        Net cash used in financing activities of continuing operations     (247,528 )   (25,277 )   (544,681 )   (5,926 )   (297,562 )
Effects of Exchange Rate Changes on Cash and Cash Equivalents     2,087     1,517     (6,314 )   2,169     (8,355 )
Net Increase (Decrease) in Cash and Cash Equivalents from Continuing Operations     (302,583 )   (83,942 )   (175,978 )   191,678     (104,190 )
Cash Flows from Discontinued Operations:                                
  Operating Activities     189,216     21,305     181,467     66,603     54,693  
  Investing Activities     (7,665 )   (157,146 )   (138,441 )   (70,302 )   (215,546 )
  Financing Activities     (12,919 )   246,260     38,170     (401 )   (898 )
  Effect of Exchange Rate Changes on Cash and Cash Equivalents     673     442     (1,696 )   (1,298 )   (248 )
Net Increase (Decrease) in Cash and Cash Equivalents from Discontinued Operations     169,305     110,861     79,500     (5,398 )   (161,999 )
Net Increase (Decrease) in Cash and Cash Equivalents     (133,278 )   26,919     (96,478 )   186,280     (266,189 )
Cash and Cash Equivalents, Beginning of Year     381,482     354,563     451,041     264,761     530,950  
Cash and Cash Equivalents, End of Year   $ 248,204   $ 381,482   $ 354,563   $ 451,041   $ 264,761  
                                 
Contact:
For additional information, contact:
Molly Hottinger
(954) 627-5278
www.seacorholdings.com
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