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SEACOR Holdings Announces Results for Its First Quarter Ended March 31, 2013

FORT LAUDERDALE, FL--(Marketwired - Apr 29, 2013) - SEACOR Holdings Inc. ( NYSE : CKH ) today announced its results for its first quarter ended March 31, 2013. For the quarter ended March 31, 2013, net loss attributable to SEACOR Holdings Inc. was $10.9 million, or $0.55 per diluted share.

Executive Chairman of the Board, Charles Fabrikant, commented: "We are very unhappy with our results for both this quarter and the fourth quarter of 2012. As noted in the discussion of highlights that follow, these disappointing results resulted primarily because of four factors: (i) a large seasonal swing in revenues and expenses that negatively impacted our lift boat business; (ii) reduced barge activity levels for our inland group's dry cargo fleet; (iii) an impairment charge for two harbor tugs; and (iv) poor results from our ethanol investment. We believe the outlook for offshore activity in the U.S. Gulf of Mexico is positive, however, and we are also evaluating various paths to return our ethanol operation to profitability."

For the preceding quarter ended December 31, 2012, the Company reported a net loss attributable to SEACOR Holdings Inc. of $2.6 million, or $0.13 per diluted share, including a loss from continuing operations of $12.2 million, or $0.61 per diluted share.

A comparison of results for the quarter ended March 31, 2013 with the preceding quarter ended December 31, 2012 is included in "Highlights for the Quarter" discussion below.

For the quarter ended March 31, 2012, net income attributable to SEACOR Holdings Inc. was $36.5 million, or $1.75 per diluted share, including income from continuing operations of $21.3 million, or $1.02 per diluted share.

Highlights for the Quarter

Offshore Marine Services - Operating income was $5.2 million on operating revenues of $124.0 million compared with operating income of $19.3 million on operating revenues of $141.1 million in the preceding quarter.

In the U.S. Gulf of Mexico, operating revenues were $2.5 million lower in the first quarter. Time charter revenues for the Company's liftboat fleet were $8.2 million lower primarily due to the seasonal downturn for that fleet. The decrease was partially offset by increased time charter revenues of $5.5 million for the Company's anchor handling towing supply vessels primarily due to increased utilization in support of platform supply activities. The number of out of service days attributable to drydockings increased by 292, or 230%, during the first quarter. Utilization was 73.7% compared with 77.1% in the preceding quarter and average day rates increased from $14,404 to $15,119 per day. As of March 31, 2013, the Company had one vessel cold-stacked in the U.S. Gulf of Mexico.

In International regions, excluding the contribution of the wind farm utility vessels, operating revenues were $13.2 million lower in the first quarter. In Mexico, Central and South America, time charter revenues were $5.6 million lower, primarily due to an increase in out-of-service days attributable to drydocking activity and weak spot market conditions in Brazil. In Asia, time charter revenues were $5.1 million lower, primarily due to the sale of a vessel to one of the Company's joint ventures and lower utilization following the conclusion of a term charter for a vessel operating in Sakhalin. Time charter revenues were lower in other geographical regions primarily due to weaker market conditions and the weakening of the pound sterling against the U.S. dollar. Utilization was 83.2% compared with 88.9% in the preceding quarter and average day rates decreased from $12,372 per day to $10,942 per day.

Operating expenses were $1.4 million lower in the first quarter. Personnel expenses and the cost of fuel, lubes and supplies were lower consistent with reduced utilization levels and fewer days in the quarter. These reductions were partially offset by higher drydocking expenses primarily due to an extensive drydocking program during the seasonal downturn of the liftboat fleet. During the first quarter, drydocking costs were $11.2 million compared with $7.3 million in the preceding quarter. The number of out-of-service days attributable to drydockings was 645 days compared with 323 days in the preceding quarter.

Administration and general expenses were $4.6 million lower in the first quarter primarily due to additional compensation expenses incurred during the preceding quarter arising from the acceleration of restricted stock awards originally scheduled to vest in 2013 and 2014.

In the first quarter, the total number of days available for charter for the Company's fleet, excluding wind farm utility vessels, decreased by 408 days, or 4% primarily due to fewer days in the quarter. Overall utilization, excluding wind farm utility vessels, decreased from 83.0% to 79.0% and overall average day rates, excluding wind farm utility vessels, decreased by 3% from $13,306 per day to $12,878 per day. Time charter operating data by vessel class is presented in the table included herein.

Inland River Services - Operating income was $3.3 million on operating revenues of $50.1 million compared with operating income of $8.9 million on operating revenues of $66.5 million in the preceding quarter. First quarter results included $0.7 million of gains on asset dispositions compared with $1.4 million in gains in the preceding quarter. Operating results for the pooled hopper barge fleet were lower in the first quarter primarily due to weak demand for barge freight as a consequence of lower grain exports resulting in idling a portion of the fleet. United States grain exports are not currently competitive in the global market.

Shipping Services - Operating income was $3.8 million on operating revenues of $46.5 million compared with operating income of $5.7 million on operating revenues of $46.3 million in the preceding quarter. Operating results for petroleum transportation were $3.1 million higher in the first quarter primarily due to less out-of-service time and lower drydocking expenses. Operating results for harbor towing and bunkering were $5.4 million lower in the first quarter primarily due to higher repairs and maintenance and drydocking expenses, and an impairment charge of $3.0 million for two harbor tugs. Operating results for short-sea and liner transportation were $0.4 million higher primarily due to improved operational efficiencies and lower repairs and maintenance expenses. Equity in losses in both quarters were primarily attributable to losses in the Company's Jones Act liner transportation joint venture.

Ethanol and Industrial Alcohol - Ethanol and Industrial Alcohol reported a segment loss of $3.3 million on operating revenues of $32.8 million compared with a segment loss of $2.2 million on operating revenues of $42.3 million in the preceding quarter. Operating results in both quarters were negatively impacted by higher corn prices.

Other - Other reported a segment profit of $2.4 million during the first quarter primarily due to a gain on the sale of real property. In the preceding quarter, segment loss included equity in losses of $9.2 million primarily due to the one-time recognition of deferred tax liabilities on the deconsolidation of non-deductible goodwill upon the contribution of O'Brien's Response Management Inc. in exchange for an equity interest in Witt O'Brien's LLC.

Corporate and Eliminations - Administrative and general expenses were $9.3 million compared with $18.2 million in the preceding quarter. The decrease was primarily due to $6.8 million of expense recorded in the preceding quarter associated with the acceleration of restricted stock awards originally scheduled to vest in 2013 and 2014 and lower accruals for bonuses.

Interest Expense - Interest expense was $12.8 million compared with $7.8 million in the preceding quarter primarily due to higher borrowing costs following the issuance of the Company's 2.5% Senior Convertible Notes, partially offset by the repayment of borrowings on the SEACOR revolving credit facility in the preceding quarter.

Foreign Currency - Foreign currency losses, net of $4.0 million during the first quarter were primarily due to the weakening of the pound sterling against the euro and U.S. dollar.

Discontinued Operations - On January 31, 2013, the Company completed the spin-off Era Group Inc. ("Era Group"), the entity that operated the Company's Aviation Services business segment, by means of a dividend to SEACOR's stockholders of all the issued and outstanding common stock of Era Group, which is now a stand-alone public company. Discontinued operations includes the results of Era Group as well as 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.

Capital Commitments - As of March 31, 2013, the Company's unfunded capital commitments were $151.8 million and included: 14 offshore support vessels for $106.1 million; seven inland river tank barges for $15.0 million; five inland river towboats for $12.7 million; four harbor tugs for $7.4 million; and other equipment and improvements for $8.0 million. In addition, the Company notified a lessor of its intent to purchase two harbor tugs currently operating under capital leases for $2.6 million. Of these commitments, $97.8 million is payable during 2013 with the balance payable through 2015. Subsequent to March 31, 2013, the Company committed to purchase additional equipment for $49.7 million.

As of March 31, 2013, the Company held balances of cash, cash equivalents, restricted cash, marketable securities, construction reserve funds and Title XI reserve funds totaling $557.2 million.

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, Inland River 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 preceding 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.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(in thousands, except share data, unaudited)
 
   
    Three Months Ended  
    March 31,  
    2013     2012  
Operating Revenues   $ 267,064     $ 297,849  
Costs and Expenses:                
    Operating     200,913       208,419  
    Administrative and general     35,645       34,991  
    Depreciation and amortization     33,548       29,702  
      270,106       273,112  
Gains on Asset Dispositions and Impairments, Net     2,015       3,777  
Operating Income (Loss)     (1,027 )     28,514  
Other Income (Expense):                
  Interest income     3,167       2,643  
  Interest expense     (12,840 )     (9,987 )
  Debt extinguishment losses, net     --       (160 )
  Marketable security gains, net     3,995       3,358  
  Derivative losses, net     (2,107 )     (2,958 )
  Foreign currency gains (losses), net     (4,011 )     1,661  
  Other, net     3       (84 )
      (11,793 )     (5,527 )
Income (Loss) from Continuing Operations Before Income Tax Expense (Benefit) and Equity In Earnings (Losses) of 50% or Less Owned Companies     (12,820 )     22,987  
Income Tax Expense (Benefit)     (2,653 )     9,460  
Income (Loss) from Continuing Operations Before Equity in Earnings (Losses) of 50% or Less Owned Companies     (10,167 )     13,527  
Equity in Earnings (Losses) of 50% or Less Owned Companies, Net of Tax     (869 )     7,661  
Income (Loss) from Continuing Operations     (11,036 )     21,188  
Income (Loss) from Discontinued Operations, Net of Tax     (211 )     15,185  
Net Income (Loss)     (11,247 )     36,373  
Net Loss attributable to Noncontrolling Interests in Subsidiaries     (373 )     (115 )
Net Income (Loss) attributable to SEACOR Holdings Inc.   $ (10,874 )   $ 36,488  
                 
Net Income (Loss) attributable to SEACOR Holdings Inc.:                
  Continuing operations   $ (10,763 )   $ 21,303  
  Discontinued operations     (111 )     15,185  
    $ (10,874 )   $ 36,488  
Basic Earnings (Loss) Per Common Share of SEACOR Holdings Inc.:                
  Continuing operations   $ (0.55 )   $ 1.04  
  Discontinued operations     --       0.74  
    $ (0.55 )   $ 1.78  
Diluted Earnings (Loss) Per Common Share of SEACOR Holdings Inc.:                
  Continuing operations   $ (0.55 )   $ 1.02  
  Discontinued operations     --       0.73  
    $ (0.55 )   $ 1.75  
Weighted Average Common Shares Outstanding:                
  Basic     19,738,930       20,519,660  
  Diluted     19,738,930       20,893,210  
                   
                   
                   
SEACOR HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(in thousands, except per share data, unaudited)
 
   
    Three Months Ended  
    Mar. 31, 2013     Dec. 31, 2012     Sep. 30, 2012     Jun. 30, 2012     Mar. 31, 2012  
Operating Revenues   $ 267,064     $ 362,368     $ 338,855     $ 309,225     $ 297,849  
Costs and Expenses:                                        
  Operating     200,913       270,500       254,005       244,545       208,419  
  Administrative and general     35,645       55,942       39,509       36,301       34,991  
  Depreciation and amortization     33,548       34,398       34,347       33,220       29,702  
      270,106       360,840       327,861       314,066       273,112  
Gains on Asset Dispositions and Impairments, Net     2,015       7,804       9,064       3,342       3,777  
Operating Income (Loss)     (1,027 )     9,332       20,058       (1,499 )     28,514  
Other Income (Expense):                                        
  Interest income     3,167       3,435       3,890       7,392       2,643  
  Interest expense     (12,840 )     (7,816 )     (10,076 )     (10,012 )     (9,987 )
  Debt extinguishment losses, net     --       --       --       --       (160 )
  Marketable security gains (losses), net     3,995       (333 )     (1,730 )     11,596       3,358  
  Derivative gains (losses), net     (2,107 )     (378 )     (2,030 )     2,554       (2,958 )
  Foreign currency gains (losses), net     (4,011 )     (34 )     1,028       (1,024 )     1,661  
  Other, net     3       (309 )     7,098       443       (84 )
      (11,793 )     (5,435 )     (1,820 )     10,949       (5,527 )
Income (Loss) from Continuing Operations Before Income Tax Expense (Benefit) and Equity In Earnings (Losses) of 50% or Less Owned Companies     (12,820 )     3,897       18,238       9,450       22,987  
Income Tax Expense (Benefit)     (2,653 )     3,769       7,702       3,250       9,460  
Income (Loss) from Continuing Operations Before Equity in Earnings (Losses) of 50% or Less Owned Companies     (10,167 )     128       10,536       6,200       13,527  
Equity in Earnings (Losses) of 50% or Less Owned Companies, Net of Tax     (869 )     (12,423 )     (1,297 )     295       7,661  
Income (Loss) from Continuing Operations     (11,036 )     (12,295 )     9,239       6,495       21,188  
Income (Loss) from Discontinued Operations, Net of Tax     (211 )     9,578       6,265       4,804       15,185  
Net Income (Loss)     (11,247 )     (2,717 )     15,504       11,299       36,373  
Net Income (Loss) attributable to Noncontrolling Interests in Subsidiaries     (373 )     (93 )     (598 )     50       (115 )
Net Income (Loss) attributable to SEACOR Holdings Inc.   $ (10,874 )   $ (2,624 )   $ 16,102     $ 11,249     $ 36,488  
                                         
Net Income (Loss) attributable to SEACOR Holdings Inc.:                                        
  Continuing operations   $ (10,763 )   $ (12,242 )   $ 9,837     $ 6,445     $ 21,303  
  Discontinued operations     (111 )     9,618       6,265       4,804       15,185  
    $ (10,874 )   $ (2,624 )   $ 16,102     $ 11,249     $ 36,488  
Basic Earnings (Loss) Per Common Share of SEACOR Holdings Inc.:                                        
  Continuing operations   $ (0.55 )   $ (0.61 )   $ 0.48     $ 0.31     $ 1.04  
  Discontinued operations     --       0.48       0.31       0.24       0.74  
    $ (0.55 )   $ (0.13 )   $ 0.79     $ 0.55     $ 1.78  
Diluted Earnings (Loss) Per Common Share of SEACOR Holdings Inc.:                                        
  Continuing operations   $ (0.55 )   $ (0.61 )   $ 0.47     $ 0.31     $ 1.02  
  Discontinued operations     --       0.48       0.31       0.23       0.73  
    $ (0.55 )   $ (0.13 )   $ 0.78     $ 0.54     $ 1.75  
Weighted Average Common Shares of Outstanding:                                        
  Basic     19,739       20,173       20,433       20,585       20,520  
  Diluted     19,739       20,173       20,740       20,871       20,893  
Common Shares Outstanding at Period End     20,106       19,888       20,851       20,948       21,114  
Special Cash Dividend Declared and Paid Per Common Share of SEACOR Holdings Inc.   $ --     $ 5.00     $ --     $ --     $ --  
                                         
                                         
                                         
SEACOR HOLDINGS INC.
SEGMENT INFORMATION
(in thousands, unaudited)
 
   
    Three Months Ended  
    Mar. 31, 2013     Dec. 31, 2012     Sep. 30, 2012     Jun. 30, 2012     Mar. 31, 2012  
Offshore Marine Services                                        
Operating Revenues   $ 124,016     $ 141,133     $ 134,322     $ 123,276     $ 121,086  
Costs and Expenses:                                        
  Operating     90,031       91,414       88,842       94,084       75,340  
  Administrative and general     14,827       19,456       14,795       13,146       11,856  
  Depreciation and amortization     16,287       16,750       16,051       15,859       12,882  
      121,145       127,620       119,688       123,089       100,078  
Gains on Asset Dispositions     2,339       5,822       6,585       624       1,845  
Operating Income     5,210       19,335       21,219       811       22,853  
Other Income (Expense):                                        
  Derivative gains (losses), net     150       (243 )     --       --       --  
  Foreign currency gains (losses), net     (3,264 )     (409 )     717       (354 )     1,123  
  Other, net     --       (9 )     --       11       --  
Equity in Earnings of 50% or Less Owned Companies, Net of Tax     1,313       1,146       1,238       1,001       1,829  
Segment Profit   $ 3,409     $ 19,820     $ 23,174     $ 1,469     $ 25,805  
                                         
OIBDA(1)   $ 21,497     $ 36,085     $ 37,270     $ 16,670     $ 35,735  
Drydocking expenditures (included in operating costs and expenses)   $ 11,225     $ 7,261     $ 4,343     $ 10,810     $ 5,329  
Out-of-service days for drydockings     645       323       315       795       378  
                                         
Inland River Services                                        
Operating Revenues   $ 50,077     $ 66,476     $ 53,293     $ 53,302     $ 53,490  
Costs and Expenses:                                        
  Operating     36,389       47,630       38,320       37,463       35,183  
  Administrative and general     4,024       4,689       3,480       3,773       3,982  
  Depreciation and amortization     7,084       6,684       7,335       7,244       7,007  
      47,497       59,003       49,135       48,480       46,172  
Gains on Asset Dispositions     697       1,378       3,503       858       1,927  
Operating Income     3,277       8,851       7,661       5,680       9,245  
Other Income (Expense):                                        
  Foreign currency gains (losses), net     (137 )     144       33       (71 )     (22 )
  Other, net     --       (1 )     --       --       --  
Equity in Earnings (Losses) of 50% or Less Owned Companies, Net of Tax     (2,387 )     (1,772 )     (2,227 )     439       250  
Segment Profit   $ 753     $ 7,222     $ 5,467     $ 6,048     $ 9,473  
                                         
OIBDA(1)   $ 10,361     $ 15,535     $ 14,996     $ 12,924     $ 16,252  
                                         
                                         
                                         
...
SEACOR HOLDINGS INC.
SEGMENT INFORMATION (continued)
(in thousands, unaudited)
 
   
    Three Months Ended  
    Mar. 31, 2013     Dec. 31, 2012     Sep. 30, 2012     Jun. 30, 2012     Mar. 31, 2012  
Shipping Services                                        
Operating Revenues   $ 46,476     $ 46,322     $ 45,157     $ 42,824     $ 45,733  
Costs and Expenses:                                        
  Operating     26,614       28,250       28,089       28,214       27,572  
  Administrative and general     5,177       5,614       6,567       5,505       4,867  
  Depreciation and amortization     7,797       7,880       7,776       7,362       7,617  
      39,588       41,744       42,432       41,081       40,056  
Gains (Losses) on Asset Dispositions and Impairments, Net     (3,069 )     1,123       145       1,860       --  
Operating Income     3,819       5,701       2,870       3,603       5,677  
Other Income (Expense):                                        
  Foreign currency gains (losses), net     (7 )     (11 )     8       (4 )     13  
  Other, net     14       20       7,145       257       30  
Equity in Losses of 50% or Less Owned Companies, Net of Tax     (1,505 )     (2,606 )     (551 )     (774 )     (217 )
Segment Profit   $ 2,321     $ 3,104     $ 9,472     $ 3,082     $ 5,503  
                                         
OIBDA(1)   $ 11,616     $ 13,581     $ 10,646     $ 10,965     $ 13,294  
Drydocking expenditures for U.S.-flag product tankers (included in operating costs and expenses)   $ 74     $ 2,137     $ --     $ --     $ --  
Out-of-service days for drydockings of U.S.-flag product tankers     1       27       --       --       --  
                                         
Ethanol and Industrial Alcohol                                        
Operating Revenues   $ 32,849     $ 42,280     $ 47,813     $ 58,938     $ 39,619  
Costs and Expenses:                                        
  Operating     34,045       43,364       45,472       57,201       37,405  
  Administrative and general     661       516       545       434       425  
  Depreciation and amortization     1,489       1,549       1,578       1,578       1,052  
      36,195       45,429       47,595       59,213       38,882  
Operating Income (Loss)     (3,346 )     (3,149 )     218       (275 )     737  
Other Income (Expense):