ckhimagea01a06.jpgPRESS RELEASE

SEACOR MARINE ANNOUNCES RESULTS FOR ITS
SECOND QUARTER AND SIX MONTHS ENDED JUNE 30, 2017

Houma, Louisiana
August 10, 2017

FOR IMMEDIATE RELEASE - SEACOR Marine Holdings Inc. (NYSE:SMHI) (the “Company”) today announced its results for its second quarter and six months ended June 30, 2017.
For the second quarter and six months ended June 30, 2017, net loss attributable to SEACOR Marine Holdings Inc. was $34.0 million ($1.93 per diluted share) and $41.4 million ($2.34 per diluted share), respectively. For the second quarter and six months ended June 30, 2016, net loss attributable to SEACOR Marine Holdings Inc. was $30.6 million ($1.73 per diluted share) and $42.5 million ($2.41 per diluted share), respectively.
John Gellert, the Company’s Chief Executive Officer, commented:
“The second quarter of 2017 was transformational for SEACOR Marine. Following our spin-off from SEACOR Holdings, we are now a company with a single investment focus on offshore marine services. We are well-positioned for the future due to our financial stability and specialized fleet focused on production and maintenance services.
“Direct vessel profit (“DVP”) declined in the second quarter to $1.5 million from $4.5 million in the first quarter. Our six months results included reactivation and mobilization costs of $12.1 million on bringing cold-stacked vessels into active service plus main engine overhaul costs of $4.0 million. We believe the additional expenses (and use of cash) from reactivating equipment will prove worthwhile, and our active fleet experienced increased overall utilization in the second quarter, especially in our U.S. liftboat and North Sea windfarm operations. Although our business mix is increasingly seasonal and the outlook for platform supply and anchor handling towing supply vessels continues to be challenging, we believe that demand for our mix of assets is better today than last year and will continue to improve.
“Our balance sheet and operating results for the quarter reflect the consolidation of: (i) the Sea-Cat Crewzer joint ventures owning four catamarans following the acquisition of our partners’ 50% interest at the end of April and (ii) Falcon Global LLC (“Falcon Global”), our partnership owning two newbuild liftboats in the Middle East, when we obtained voting control at the end of the first quarter. The acquired interests in the catamarans and the newly delivered liftboats further diversify our asset base and, we believe, offer good prospects for the future.
“Finally, I am pleased to announce that one of our subsidiaries entered into a definitive agreement to create a joint venture with Montco Offshore, Inc. pursuant to which we and Montco would contribute in the aggregate 19 liftboat vessels to the venture, including Falcon Global’s two newbuild liftboats. Montco had previously filed a voluntary petition for relief under U.S. bankruptcy laws and today the bankruptcy court has approved our subsidiary as the sponsor of Montco’s plan of reorganization. Closing would occur after Montco’s plan of reorganization has been approved. Additional details about the transaction will be set forth in a Current Report on Form 8-K that we intend to file tomorrow.”
Net loss attributable to SEACOR Marine Holdings Inc. for the second quarter ended June 30, 2017 of $34.0 million ($1.93 per diluted share) compared with a net loss of $7.4 million ($0.42 per diluted share) for the first quarter ended March 31, 2017. Results for the second quarter ended June 30, 2017 included:
Reactivation and mobilization costs of $6.9 million on activating cold-stacked vessels;
Maintenance costs of $4.0 million on the replacement of main engines in two fast support vessels (expensed rather than capitalized in accordance with the Company’s capital expenditure policies);

1


Administrative and general expenses of $6.7 million on the accelerated vesting of share awards previously granted to Company personnel by SEACOR Holdings Inc. (the Company’s former parent company, “SEACOR Holdings”) upon the Company’s spin-off from SEACOR Holdings;
Administrative and general expenses of $3.4 million on non-deductible spin-off related expenses reimbursed to SEACOR Holdings upon the Company’s spin-off from SEACOR Holdings;
Non-cash impairment charges of $5.7 million primarily associated with one leased-in supply vessel removed from service as it is not expected to be marketed prior to being returned to its owner;
A full quarter’s results for the two foreign-flag liftboats owned and operated by Falcon Global, a 50% owned and consolidated subsidiary of the Company. During the preceding quarter, the Company’s partner declined to participate in a capital call from Falcon Global and, as a consequence, the Company obtained 100% voting control of Falcon Global and began to consolidate Falcon Global effective March 31, 2017, which at that time had cash on hand of $1.9 million and total debt of $58.3 million; and
Two month’s results for four high speed catamaran fast support vessels owned and operated by Sea-Cat Crewzer LLC and Sea-Cat Crewzer II LLC (collectively “Sea-Cat Crewzers”), each a 100% owned and consolidated subsidiary of the Company. On April 28, 2017, the Company acquired 100% controlling interests in Sea-Cat Crewzers through the acquisition of its partners’ 50% ownership interests for $15.7 million. At the time of acquisition, Sea-Cat Crewzers had cash on hand of $5.9 million and total debt of $41.2 million.
The Company’s reduced DVP for the six months ended June 30, 2017 and the one-time costs of $10.1 million associated with the Company’s spin-off from SEACOR Holdings significantly affected cash provided by operating activities. This release includes a table presenting cash from operating activities for the previous five quarters highlighting the impact.
A comparison of results for the second quarter ended June 30, 2017 with the preceding quarter ended March 31, 2017 is included below.
Operating Revenues. Time charter revenues were $8.1 million higher compared with the preceding quarter. On a total fleet basis, time charter revenues increased by $1.9 million from improved utilization on the active fleet, $3.4 million from improved utilization on the net reactivation of cold-stacked vessels, $2.2 million from net fleet additions (primarily due to Falcon Global and Sea-Cat Crewzers), and $0.6 million due to favorable changes in currency exchange rates.
During the six months ended June 30, 2017, the Company reactivated 13 vessels from cold-stacked status, cold-stacked five previously active vessels, sold two cold-stacked vessels and removed from service two cold-stacked vessels.
On a total fleet basis, excluding wind farm utility vessels but including cold-stacked vessels (those that are not currently available for active service), utilization of the fleet increased from 38% to 43%, and average rates per day worked increased by 2% from $8,272 to $8,431. Days available for charter were 7% higher in the second quarter primarily due to net fleet additions and more operating days during the quarter. This release includes a table presenting time charter statistics by vessel class.
Direct Vessel Profit (“DVP”) by Region. DVP generated by the Company’s operating regions was $1.5 million compared with $4.5 million in the preceding quarter, a $3.0 million decline. Improvements in operating revenues of $8.0 million were offset by increased direct operating costs of $11.0 million. Personnel costs were $3.8 million higher primarily from the net reactivation of cold-stacked vessels and net fleet additions. Repairs and maintenance costs were $6.8 million higher primarily from the replacement of main engines in two fast support vessels for $4.0 million. Results by region are as follows:
United States, primarily Gulf of Mexico. Direct vessel loss was $1.1 million compared with $1.8 million in the preceding quarter, a $0.7 million improvement. Time charter revenues were $1.9 million higher, including $2.2 million for the liftboat fleet, primarily from improved utilization on the net reactivation of cold-stacked vessels. On a total fleet basis, including cold-stacked vessels, utilization increased from 7% to 13%, and average rates per day worked decreased from $10,133 to $9,619. Days available for charter were 2% higher in the second quarter primarily due to more operating days during the quarter. Improvements in operating revenues of $2.3 million were offset by increased direct operating costs of $1.6 million. Personnel costs were $1.1 million higher primarily as the result of the net reactivation of cold-stacked vessels. As of June 30, 2017, the Company had 32 of 42 owned and leased-in vessels cold-stacked in the U.S. (ten anchor handling towing supply vessels, 16 fast support vessels, five liftboats and one specialty vessel) compared with 35 of 44 vessels as of March 31, 2017. As of June 30, 2017, the Company

2


had one anchor handling towing supply vessel, one fast support vessel and one supply vessel retired and removed from service in this region.
Africa, primarily West Africa. Direct vessel loss was $1.3 million compared with DVP of $0.4 million in the preceding quarter, a $1.7 million decline. Time charter revenues were $1.9 million higher primarily due to net fleet additions. On a total fleet basis, including cold-stacked vessels, utilization increased from 61% to 67%, and average rates per day worked increased from $9,388 to $10,348. Days available for charter were 10% higher in the second quarter primarily due to net fleet additions and more operating days during the quarter. Improvements in operating revenues of $2.0 million were more than offset by increased direct operating costs of $3.7 million. Repairs and maintenance costs were $2.7 million higher primarily from the replacement of main engines in one fast support vessel for $2.0 million. As of June 30, 2017, the Company had one of 14 owned and leased-in vessels cold-stacked in Africa (one specialty vessel) compared with one of 13 vessels as of March 31, 2017. As of June 30, 2017, the Company had two fast support vessels retired and removed from service in this region.
Middle East and Asia. Direct vessel loss was $3.3 million compared with DVP of $0.5 million in the preceding quarter, a $3.8 million decline. Time charter revenues were $1.6 million higher primarily as the result of improved utilization of the active fleet, improved utilization on the net reactivation of cold-stacked vessels and net fleet additions. On a total fleet basis, including cold-stacked vessels, utilization increased from 49% to 55%, and average rates per day worked decreased from $7,017 to $6,580. Days available for charter were 21% higher in the second quarter primarily due to net fleet additions and more operating days during the quarter. Improvements in operating revenues of $0.8 million were offset by increased direct operating costs of $4.6 million. Personnel costs were $1.0 million higher primarily due to net fleet additions. Repairs and maintenance costs were $3.4 million higher primarily from the replacement of main engines in one fast support vessel for $2.0 million. As of June 30, 2017, the Company had three of 23 owned vessels cold-stacked in the Middle East and Asia (one supply vessel and two windfarm utility vessels) compared with two of 21 vessels as of March 31, 2017.
Brazil, Mexico, Central and South America. DVP was $1.0 million compared with $1.2 million in the preceding quarter. As of June 30, 2017, the Company had one of four owned vessels cold-stacked in Brazil, Mexico, Central and South America (one fast support vessel) compared with one of three vessels as of March 31, 2017. As of June 30, 2017, the Company had one supply vessel retired and removed from service in this region.
Europe, primarily North Sea. DVP was $6.2 million compared with $4.2 million in the preceding quarter, a $2.0 million improvement. Time charter revenues were $2.6 million higher, including $2.1 million from the wind farm utility fleet on seasonally improved market conditions, as a result of improved utilization of the active fleet of $2.0 million and favorable changes in currency exchange rates of $0.6 million. For the standby safety fleet, utilization was unchanged at 80%, and average rates per day worked increased from $8,131 to $8,457. For the wind farm utility fleet, utilization increased from 69% to 95%, and average rates per day worked increased from $2,005 to $2,124.
Administrative and general. Administrative and general expenses were $9.9 million higher compared with the preceding quarter primarily due to one-time costs associated with the Company’s spin-off from SEACOR Holdings on June 1, 2017. The Company incurred an additional expense of $6.7 million on the accelerated vesting of share awards previously granted to Company personnel by SEACOR Holdings and an additional expense of $3.4 million on non-deductible spin-off related expenses reimbursed to SEACOR Holdings.
Depreciation and amortization. Depreciation expenses were $2.1 million higher compared with the preceding quarter primarily due to net fleet additions.
Asset Dispositions and Impairments. During the second quarter, the Company recognized impairment charges of $5.7 million primarily associated with one leased-in supply vessel removed from service as it is not expected to be marketed prior to being returned to its owner and sold one supply vessel, two offshore support vessels previously retired and removed from service, and other equipment for net proceeds of $1.2 million and losses of $0.6 million. During the preceding quarter, the Company sold two liftboats, two offshore support vessels previously retired and removed from service, and other equipment for net proceeds of $8.8 million ($8.3 million in cash and $0.5 million of previously received deposits) and gains of $4.8 million.
Interest expense. Interest expense was $1.4 million higher compared with the preceding quarter primarily due to the debt facilities of Falcon Global and Sea-Cat Crewzers.
Marketable security activities. During the preceding quarter, marketable security gains of $11.7 million were primarily due to realized gains on a long security position exited by the Company.

3


Equity in earnings of 50% or less owned companies. Equity earnings were $1.1 million higher compared with the preceding quarter primarily due to equity losses recognized during the preceding quarter from Falcon Global.
Capital Commitments. As of June 30, 2017, the Company had unfunded capital commitments of $76.4 million that included six fast support vessels, three supply vessels and one wind farm utility vessel. These commitments included $15.4 million for one supply vessel that may be assumed by a third party at their option. The Company’s capital commitments by year of expected payment are as follows (in thousands):
Remainder of 2017
$
10,457

2018
50,960

2019
13,219

2020
1,800

 
$
76,436

Subsequent to June 30, 2017, the Company committed to purchase additional equipment for $12.3 million.
Liquidity and Debt. As of June 30, 2017, the Company’s balances of cash, cash equivalents, restricted cash, marketable securities and construction reserve funds totaled $221.3 million and its total outstanding debt was $315.5 million (net of $35.7 million in discount and issue costs).

* * * * *
SEACOR Marine is among the leading providers of global marine and support transportation services to offshore oil and gas exploration, development and production facilities worldwide. SEACOR Marine currently operates a diverse fleet of offshore support and specialty vessels that deliver cargo and personnel to offshore installations; handle anchors and mooring equipment required to tether rigs to the seabed; tow rigs and assist in placing them on location and moving them between regions; provides construction, well workover and decommissioning support; and carry and launch equipment used underwater in drilling and well installation, maintenance and repair. Additionally, SEACOR Marine’s vessels provide accommodations for technicians and specialists, and provide safety support and emergency response services.

4


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 a decline in the price of oil and resulting decrease in capital spending by oil and gas companies, an oversupply of newly built offshore support vessels, additional safety and certification requirements for drilling activities in the U.S. Gulf of Mexico and delayed approval of applications for such activities, the possibility of U.S. government implemented moratoriums directing operators to cease certain drilling activities in the U.S. Gulf of Mexico and any extension of such 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 a decline in the price of oil, an oversupply of newly built offshore support vessels, increased government legislation and regulation of the Company’s businesses could increase cost of operations, increased competition if the Jones Act and related regulations are repealed, liability, legal fees and costs in connection with the provision of emergency response services, such as the 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, including as a result of the recent vote in the U.K. to leave the European Union, changes in foreign and domestic oil and gas exploration and production activity, safety record requirements, compliance with U.S. and foreign government laws and regulations, including environmental laws and regulations and economic sanctions, the dependence on several key customers, consolidation of the Company’s customer base, the ongoing need to replace aging vessels, industry fleet capacity, restrictions imposed by the Jones Act and related regulations on the amount of foreign ownership of the Company’s Common Stock, operational risks, effects of adverse weather conditions and seasonality, adequacy of insurance coverage, the ability to remediate the material weaknesses the Company has identified in its internal controls over financial reporting, 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 “Risk Factors” included in the Information Statement filed as Exhibit 99.1 to Amendment No. 3 to the Company’s Registration Statement on Form 10 and other reports filed by the Company with the SEC. 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 Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K (if any). These statements constitute the Company’s cautionary statements under the Private Securities Litigation Reform Act of 1995.

For additional information, contact Jesus Llorca, Executive Vice President - Corporate Development and Secretary, at (985) 876-5400 or visit SEACOR Marine’s website at www.seacormarine.com.

5


SEACOR MARINE HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF LOSS
(in thousands, except share data, unaudited)
 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
 
2017
 
2016
 
2017
 
2016
Operating Revenues
$
42,323

 
$
57,271

 
$
76,627

 
$
117,150

Costs and Expenses:
 
 
 
 
 
 
 
Operating
44,482

 
44,245

 
77,861

 
93,095

Administrative and general
21,705

 
11,929

 
33,531

 
24,327

Depreciation and amortization
14,633

 
15,254

 
27,136

 
30,092

 
80,820

 
71,428

 
138,528

 
147,514

Losses on Asset Dispositions and Impairments, Net
(6,318
)
 
(20,357
)
 
(1,499
)
 
(20,737
)
Operating Loss
(44,815
)
 
(34,514
)
 
(63,400
)
 
(51,101
)
Other Income (Expense):
 
 
 
 
 
 
 
Interest income
275

 
987

 
1,125

 
2,398

Interest expense
(4,546
)
 
(2,585
)
 
(7,728
)
 
(4,943
)
SEACOR Holdings management fees
(1,283
)
 
(1,925
)
 
(3,208
)
 
(3,850
)
SEACOR Holdings guarantee fees
(75
)
 
(31
)
 
(151
)
 
(157
)
Marketable security gains (losses), net
(109
)
 
(2,492
)
 
11,629

 
(6,077
)
Derivative gains (losses), net
(213
)
 
163

 
(302
)
 
3,061

Foreign currency losses, net
(1,094
)
 
(819
)
 
(1,283
)
 
(2,379
)
Other, net

 

 
(1
)
 
265

 
(7,045
)
 
(6,702
)
 
81

 
(11,682
)
Loss Before Income Tax Benefit and Equity in Earnings (Losses) of 50% or Less Owned Companies
(51,860
)
 
(41,216
)
 
(63,319
)
 
(62,783
)
Income Tax Benefit
(13,800
)
 
(13,742
)
 
(17,222
)
 
(20,568
)
Loss Before Equity in Earnings (Losses) of 50% or Less Owned Companies
(38,060
)
 
(27,474
)
 
(46,097
)
 
(42,215
)
Equity in Earnings (Losses) of 50% or Less Owned Companies, Net of Tax
1,571

 
(3,315
)
 
2,009

 
(1,154
)
Net Loss
(36,489
)
 
(30,789
)

(44,088
)

(43,369
)
Net Loss attributable to Noncontrolling Interests in Subsidiaries
(2,497
)
 
(209
)
 
(2,701
)
 
(830
)
Net Loss attributable to SEACOR Marine Holdings Inc.
$
(33,992
)
 
$
(30,580
)
 
$
(41,387
)
 
$
(42,539
)
 
 
 
 
 
 
 
 
Basic and Diluted Losses Per Common Share of SEACOR Marine Holdings Inc.
$
(1.93
)
 
$
(1.73
)
 
$
(2.34
)
 
$
(2.41
)
 
 
 
 
 
 
 
 
Basic and Diluted Weighted Average Common Shares Outstanding
17,631,567

 
17,671,356

 
17,651,352

 
17,671,356


6


SEACOR MARINE HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF LOSS
(in thousands, except per share data, unaudited)
 
Three Months Ended
 
Jun. 30, 2017
 
Mar. 31, 2017
 
Dec. 31, 2016
 
Sep. 30, 2016
 
Jun. 30, 2016
Operating Revenues:
 
 
 
 
 
 
 
 
 
Time charter
$
38,803

 
$
30,730

 
$
38,047

 
$
47,473

 
$
49,234

Bareboat charter
1,156

 
1,143

 
1,169

 
1,967

 
3,045

Other marine services
2,364

 
2,431

 
5,145

 
4,685

 
4,992

 
42,323

 
34,304

 
44,361

 
54,125

 
57,271

Costs and Expenses:
 
 
 
 
 
 
 
 
 
Operating, excluding leased-in equipment
40,792

 
29,788

 
28,459

 
36,628

 
39,793

Operating, leased-in equipment
3,690

 
3,591

 
4,212

 
4,531

 
4,452

Administrative and general
21,705

 
11,826

 
14,393

 
10,588

 
11,929

Depreciation and amortization
14,633

 
12,503

 
13,764

 
14,213

 
15,254

 
80,820

 
57,708

 
60,828

 
65,960

 
71,428

Gains (Losses) on Asset Dispositions and Impairments, Net
(6,318
)
 
4,819

 
(66,252
)
 
(29,233
)
 
(20,357
)
Operating Loss
(44,815
)
 
(18,585
)
 
(82,719
)
 
(41,068
)
 
(34,514
)
Other Income (Expense):
 
 
 
 
 
 
 
 
 
Interest income
275

 
850

 
1,087

 
973

 
987

Interest expense
(4,546
)
 
(3,182
)
 
(2,553
)
 
(2,512
)
 
(2,585
)
SEACOR Holdings management fees
(1,283
)
 
(1,925
)
 
(1,925
)
 
(1,925
)
 
(1,925
)
SEACOR Holdings guarantee fees
(75
)
 
(76
)
 
(78
)
 
(80
)
 
(31
)
Marketable security gains (losses), net
(109
)
 
11,738

 
4,413

 
1,619

 
(2,492
)
Derivative gains (losses), net
(213
)
 
(89
)
 
(82
)
 
16

 
163

Foreign currency gains (losses), net
(1,094
)
 
(189
)
 
151

 
(1,084
)
 
(819
)
Other, net

 
(1
)
 
(1,756
)
 
1

 

 
(7,045
)
 
7,126

 
(743
)
 
(2,992
)
 
(6,702
)
Loss Before Income Tax Benefit and Equity in Earnings (Losses) of 50% or Less Owned Companies
(51,860
)
 
(11,459
)
 
(83,462
)
 
(44,060
)
 
(41,216
)
Income Tax Benefit
(13,800
)
 
(3,422
)
 
(27,638
)
 
(15,263
)
 
(13,742
)
Loss Before Equity in Earnings (Losses) of 50% or Less Owned Companies
(38,060
)
 
(8,037
)
 
(55,824
)
 
(28,797
)
 
(27,474
)
Equity in Earnings (Losses) of 50% or Less Owned Companies, Net of Tax
1,571

 
438

 
(5,950
)
 
790

 
(3,315
)
Net Loss
(36,489
)
 
(7,599
)
 
(61,774
)
 
(28,007
)
 
(30,789
)
Net Loss attributable to Noncontrolling Interests in Subsidiaries
(2,497
)
 
(204
)
 
(199
)
 
(74
)
 
(209
)
Net Loss attributable to SEACOR Marine Holdings Inc.
$
(33,992
)
 
$
(7,395
)
 
$
(61,575
)
 
$
(27,933
)
 
$
(30,580
)
 
 
 
 
 
 
 
 
 
 
Basic and Diluted Losses Per Common Share of SEACOR Marine Holdings Inc.
$
(1.93
)
 
$
(0.42
)
 
$
(3.48
)
 
$
(1.58
)
 
$
(1.73
)
 
 
 
 
 
 
 
 
 
 
Basic and Diluted Weighted Average Common Shares of Outstanding
17,632

 
17,671

 
17,671

 
17,671

 
17,671

Common Shares Outstanding at Period End
17,671

 
17,671

 
17,671

 
17,671

 
17,671


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SEACOR MARINE HOLDINGS INC.
TIME CHARTER STATISTICS
(unaudited)
 
Three Months Ended
 
Jun. 30, 2017
 
Mar. 31, 2017
 
Dec. 31, 2016
 
Sep. 30, 2016
 
Jun. 30, 2016
Rates Per Day Worked:
 
 
 
 
 
 
 
 
 
Anchor handling towing supply
$
10,774

 
$
13,341

 
$
13,686

 
$
16,469

 
$
20,828

Fast support
8,086

 
7,417

 
7,875

 
7,848

 
7,636

Supply
6,028

 
11,707

 
6,298

 
5,935

 
5,709

Standby safety
8,457

 
8,131

 
8,284

 
8,904

 
9,632

Specialty
12,000

 

 
37,024

 
30,593

 
18,642

Liftboats
10,315

 
9,782

 
13,486

 
16,822

 
11,852

Overall Average Rates Per Day Worked
(excluding wind farm utility)
8,431

 
8,272

 
9,093

 
10,089

 
10,354

Wind farm utility
2,124

 
2,005

 
2,104

 
2,260

 
2,394

Overall Average Rates Per Day Worked
5,649

 
5,726

 
6,308

 
6,834

 
7,352

 
 
 
 
 
 
 
 
 
 
Utilization:
 
 
 
 
 
 
 
 
 
Anchor handling towing supply
24
%
 
15
%
 
20
%
 
27
%
 
33
%
Fast support
43
%
 
44
%
 
47
%
 
62
%
 
69
%
Supply
48
%
 
20
%
 
19
%
 
31
%
 
27
%
Standby safety
80
%
 
80
%
 
81
%
 
78
%
 
77
%
Specialty
5
%
 
%
 
23
%
 
58
%
 
81
%
Liftboats
16
%
 
1
%
 
1
%
 
8
%
 
6
%
Overall Fleet Utilization (excluding wind farm utility)
43
%
 
38
%
 
39
%
 
47
%
 
50
%
Wind farm utility
90
%
 
65
%
 
71
%
 
86
%
 
77
%
Overall Fleet Utilization
56
%
 
46
%
 
47
%
 
58
%
 
57
%
 
 
 
 
 
 
 
 
 
 
Available Days:
 
 
 
 
 
 
 
 
 
Anchor handling towing supply
1,274

 
1,260

 
1,564

 
1,483

 
1,365

Fast support
3,684

 
3,212

 
3,312

 
2,389

 
2,174

Supply
580

 
630

 
953

 
1,109

 
1,140

Standby safety
1,820

 
1,800

 
1,840

 
1,989

 
2,104

Specialty
273

 
270

 
337

 
276

 
273

Liftboats
1,365

 
1,265

 
1,380

 
1,380

 
1,365

Overall Fleet Available Days
(excluding wind farm utility)
8,996

 
8,437

 
9,386

 
8,626

 
8,421

Wind farm utility
3,367

 
3,330

 
3,404

 
3,345

 
3,276

Overall Fleet Available Days
12,363

 
11,767

 
12,790

 
11,971

 
11,697


8


SEACOR MARINE HOLDINGS INC.
DIRECT VESSEL PROFIT (“DVP”) BY REGION
(in thousands, except for statistics, unaudited)
 
Three Months Ended
 
Jun. 30, 2017
 
Mar. 31, 2017
 
Dec. 31, 2016
 
Sep. 30, 2016
 
Jun. 30, 2016
United States, primarily Gulf of Mexico
 
 
 
 
 
 
 
 
 
Operating revenues:
 
 
 
 
 
 
 
 
 
Time charter
$
4,889

 
$
2,995

 
$
2,694

 
$
6,440

 
$
8,726

Other marine services
1,198

 
826

 
906

 
1,083

 
1,054

 
6,087

 
3,821

 
3,600

 
7,523

 
9,780

Direct operating expenses:
 
 
 
 
 
 
 
 
 
Personnel
4,183

 
3,130

 
3,310

 
4,865

 
6,368

Repairs and maintenance
937

 
737

 
551

 
768

 
643

Drydocking
310

 
573

 
19

 
(8
)
 
175

Insurance and loss reserves
1,205

 
805

 
484

 
1,200

 
680

Fuel, lubes and supplies
545

 
310

 
112

 
533

 
234

Other
51

 
72

 
(36
)
 
118

 
28

 
7,231

 
5,627

 
4,440

 
7,476

 
8,128

Direct Vessel Profit (Loss)
$
(1,144
)
 
$
(1,806
)
 
$
(840
)
 
$
47

 
$
1,652

 
 
 
 
 
 
 
 
 
 
Leased-in equipment (included in operating costs and expenses)
$
2,205

 
$
2,211

 
$
2,215

 
$
2,040

 
$
1,858

Time Charter Statistics:
 
 
 
 
 
 
 
 
 
Overall average rates per day worked
$
9,619

 
$
10,133

 
$
9,316

 
$
13,810

 
$
17,109

Overall fleet utilization
13
%
 
7
%
 
7
%
 
14
%
 
17
%
Overall fleet available days
4,063

 
3,998

 
4,169

 
3,264

 
3,040

Out-of-service days for repairs, maintenance and drydockings
221

 
159

 
32

 
8

 
69

Out-of-service days for cold-stacked status
3,070

 
3,456

 
3,794

 
2,466

 
2,188

 
 
 
 
 
 
 
 
 
 
Africa, primarily West Africa
 
 
 
 
 
 
 
 
 
Operating revenues:
 
 
 
 
 
 
 
 
 
Time charter
$
7,786

 
$
5,847

 
$
8,072

 
$
8,593

 
$
8,902

Other marine services
215

 
192

 
582

 
238

 
131

 
8,001

 
6,039

 
8,654

 
8,831

 
9,033

Direct operating expenses:
 
 
 
 
 
 
 
 
 
Personnel
3,428

 
2,608

 
3,024

 
3,195

 
3,324

Repairs and maintenance
3,234

 
544

 
694

 
441

 
522

Drydocking
683

 
1,057

 
(103
)
 
617

 
426

Insurance and loss reserves
357

 
182

 
144

 
147

 
36

Fuel, lubes and supplies
704

 
559

 
790

 
748

 
598

Other
871

 
646

 
221

 
890

 
883

 
9,277

 
5,596

 
4,770

 
6,038

 
5,789

Direct Vessel Profit (Loss)
$
(1,276
)
 
$
443

 
$
3,884

 
$
2,793

 
$
3,244

 
 
 
 
 
 
 
 
 
 
Leased-in equipment (included in operating costs and expenses)
$
969

 
$
970

 
$
972

 
$
974

 
$
975

Time Charter Statistics:
 
 
 
 
 
 
 
 
 
Overall average rates per day worked
$
10,348

 
$
9,388

 
$
10,511

 
$
9,858

 
$
9,938

Overall fleet utilization
67
%
 
61
%
 
53
%
 
62
%
 
65
%
Overall fleet available days
1,123

 
1,019

 
1,445

 
1,401

 
1,373

Out-of-service days for repairs, maintenance and drydockings
125

 
19

 
56

 
58

 
37

Out-of-service days for cold-stacked status
91

 
180

 
507

 
289

 
273


9


SEACOR MARINE HOLDINGS INC.
DIRECT VESSEL PROFIT (“DVP”) BY REGION (continued)
(in thousands, except for statistics, unaudited)
 
Three Months Ended
 
Jun. 30, 2017
 
Mar. 31, 2017
 
Dec. 31, 2016
 
Sep. 30, 2016
 
Jun. 30, 2016
Middle East and Asia
 
 
 
 
 
 
 
 
 
Operating revenues:
 
 

 
 
 
 
 
 
Time charter
$
7,415

 
$
5,823

 
$
10,187

 
$
12,763

 
$
10,554

Other marine services
109

 
877

 
2,935

 
2,566

 
2,641

 
7,524

 
6,700

 
13,122

 
15,329

 
13,195

Direct operating expenses:
 
 
 
 
 
 
 
 
 
Personnel
4,147

 
3,123

 
4,367

 
4,778

 
5,058

Repairs and maintenance
3,947

 
576

 
1,539

 
1,394

 
1,659

Drydocking
358

 
158

 
5

 
719

 
(284
)
Insurance and loss reserves
353

 
346

 
118

 
199

 
151

Fuel, lubes and supplies
908

 
524

 
802

 
961

 
1,498

Other
1,061

 
1,465

 
851

 
790

 
827

 
10,774

 
6,192

 
7,682

 
8,841

 
8,909

Direct Vessel Profit (Loss)
$
(3,250
)
 
$
508

 
$
5,440

 
$
6,488

 
$
4,286

 


 


 


 


 


Leased-in equipment (included in operating costs and expenses)
$
516

 
$
346

 
$
836

 
$
1,254

 
$
1,123

Time Charter Statistics:
 
 
 
 
 
 
 
 
 
Overall average rates per day worked
$
6,580

 
$
7,017

 
$
9,083

 
$
10,179

 
$
8,649

Overall fleet utilization
55
%
 
49
%
 
58
%
 
63
%
 
61
%
Overall fleet available days
2,067

 
1,710

 
1,932

 
1,988

 
2,002

Out-of-service days for repairs, maintenance and drydockings
122

 
50

 
3

 
24

 
73

Out-of-service days for cold-stacked status
304

 
320

 
186

 

 
47

 
 
 
 
 
 
 
 
 
 
Brazil, Mexico, Central and South America
 
 
 
 
 
 
 
 
 
Operating revenues:
 
 
 
 
 
 
 
 
 
Bareboat charter
$
1,156

 
$
1,143

 
$
1,169

 
$
1,967

 
$
3,045

Other marine services
162

 
75

 
76

 
220

 
498

 
1,318

 
1,218

 
1,245

 
2,187

 
3,543

Direct operating expenses:
 
 
 
 
 
 
 
 
 
Personnel
148

 
13

 
24

 
198

 
367

Repairs and maintenance
116

 
4

 
5

 
20

 
59

Insurance and loss reserves
4

 
7

 
6

 

 
(12
)
Fuel, lubes and supplies
27

 

 
(172
)
 

 
112

Other
3

 
1

 

 
(56
)
 
75

 
298

 
25

 
(137
)
 
162

 
601

Direct Vessel Profit
$
1,020

 
$
1,193

 
$
1,382

 
$
2,025

 
$
2,942

 
 
 
 
 
 
 
 
 
 
Leased-in equipment (included in operating costs and expenses)
$

 
$

 
$
(1
)
 
$
180

 
$
367

Time Charter Statistics:
 
 
 
 
 
 
 
 
 
Overall average rates per day worked
$

 
$

 
$

 
$

 
$

Overall fleet utilization
%
 
%
 
%
 
%
 
%
Overall fleet available days
105

 
90

 
184

 
170

 
83

Out-of-service days for cold-stacked status
91

 
90

 
184

 
170

 
83


10


SEACOR MARINE HOLDINGS INC.
DIRECT VESSEL PROFIT (“DVP”) BY REGION (continued)
(in thousands, except for statistics, unaudited)
 
Three Months Ended
 
Jun. 30, 2017
 
Mar. 31, 2017
 
Dec. 31, 2016
 
Sep. 30, 2016
 
Jun. 30, 2016
Europe, primarily North Sea
 
 
 
 
 
 
 
 
 
Operating revenues:
 
 
 
 
 
 
 
 
 
Time charter
$
18,713

 
$
16,065

 
$
17,094

 
$
19,677

 
$
21,052

Other marine services
680

 
461

 
646

 
578

 
668

 
19,393

 
16,526

 
17,740

 
20,255

 
21,720

Direct operating expenses:
 
 
 
 
 
 
 
 
 
Personnel
8,671

 
7,917

 
8,157

 
9,827

 
10,724

Repairs and maintenance
2,191

 
1,734

 
1,955

 
2,194

 
2,544

Drydocking
900

 
1,279

 
210

 
696

 
1,646

Insurance and loss reserves
207

 
219

 
240

 
163

 
248

Fuel, lubes and supplies
1,006

 
949

 
907

 
957

 
911

Other
237

 
250

 
235

 
274

 
293

 
13,212

 
12,348

 
11,704

 
14,111

 
16,366

Direct Vessel Profit
$
6,181

 
$
4,178

 
$
6,036

 
$
6,144

 
$
5,354

 
 
 
 
 
 
 
 
 
 
Leased-in equipment (included in operating costs and expenses)
$

 
$
64

 
$
190

 
$
83

 
$
129

Time Charter Statistics:
 
 
 
 
 
 
 
 
 
Average rates per day worked - Standby safety
$
8,457

 
$
8,131

 
$
8,284

 
$
8,904

 
$
9,632

Fleet utilization - Standby safety
80
%
 
80
%
 
81
%
 
78
%
 
77
%
Fleet available days - Standby safety
1,820

 
1,800

 
1,840

 
1,989

 
2,104

Average rates per day worked - Wind farm utility
$
2,124

 
$
2,005

 
$
1,991

 
$
2,083

 
$
2,235

Fleet utilization - Wind farm utility
95
%
 
69
%
 
73
%
 
89
%
 
79
%
Fleet available days - Wind farm utility
3,185

 
3,150

 
3,220

 
3,161

 
3,094

Out-of-service days for repairs, maintenance and drydockings
124

 
173

 
130

 
136

 
211


11


SEACOR MARINE HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (NON-GAAP PRESENTATION)
(in thousands, unaudited)
 
Three Months Ended
 
Jun. 30, 2017
 
Mar. 31, 2017
 
Dec. 31, 2016
 
Sep. 30, 2016
 
Jun. 30, 2016
Cash Flows from Operating Activities:
 
 
 
 
 
 
 
 
 
Regional DVP(1)
$
1,531

 
$
4,516

 
$
15,902

 
$
17,497

 
$
17,478

Operating, leased-in equipment (excluding amortization of deferred gains)
(5,740
)
 
(5,641
)
 
(6,262
)
 
(6,580
)
 
(6,502
)
Administrative and general (excluding provisions for bad debts and amortization of restricted stock)
(22,596
)
 
(10,267
)
 
(10,113
)
 
(10,588
)
 
(11,929
)
SEACOR Holdings management and guarantee fees
(1,358
)
 
(2,001
)
 
(2,003
)
 
(2,005
)
 
(1,956
)
Other, net (excluding non-cash losses)

 
(1
)
 
(272
)
 
1

 

Dividends received from 50% or less owned companies
1,642

 

 
406

 

 
371

 
(26,521
)
 
(13,394
)
 
(2,342
)
 
(1,675
)
 
(2,538
)
Changes in operating assets and liabilities before interest and income taxes
18,635

 
24,903

 
(14,377
)
 
(8,383
)
 
(6,369
)
Purchases of marketable securities

 

 
(14,321
)
 
(286
)
 
(1,658
)
Proceeds from sale of marketable securities

 
51,877

 

 

 

Cash settlements on derivative transactions, net
(166
)
 
(22
)
 
(285
)
 
(80
)
 
(216
)
Interest paid, excluding capitalized interest
(3,626
)
 

 
(2,280
)
 
1,238

 
(1,656
)
Interest received
275

 
2,372

 
(291
)
 
1,832

 
126

Income taxes (paid) refunded, net
(157
)
 
(440
)
 
21,208

 
(204
)
 
2,493

Net cash provided by (used in) operating activities (GAAP Measure)
(11,560
)
 
65,296

 
(12,688
)
 
(7,558
)
 
(9,818
)
Cash Flows from Investing Activities:
 
 
 
 
 
 
 
 
 
Purchases of property and equipment, excluding capitalized interest
(17,006
)
 
(9,484
)
 
(16,153
)
 
(35,202
)
 
(23,380
)
Capitalized interest paid
(1,654
)
 
(659
)
 
(1,925
)
 
(1,764
)
 
(1,553
)
Cash settlements on derivative transactions, net

 
(324
)
 
(342
)
 
(31
)
 

Proceeds from disposition of property and equipment
1,252

 
8,297

 
37,800

 
980

 
2,901

Construction reserve funds (deposits) withdrawals, net
15,678

 
(5,268
)
 
(16,310
)
 
6

 
76,683

Net investing activities in property and equipment
(1,730
)
 
(7,438
)
 
3,070

 
(36,011
)
 
54,651

Net investing activities in 50% or less owned companies
(1,733
)
 
4,956

 
(8,661
)
 
(2,008
)
 
(1,891
)
Net investing activities in third party notes receivable

 

 
(380
)
 

 
50

Net increase in restricted cash
(13
)
 
(349
)
 
(67
)
 
(1,120
)
 

Cash assumed on consolidation of 50% or less owned companies

 
1,943

 

 

 

Business acquisitions, net of cash acquired
(9,751
)
 
 
 

 

 

Net cash provided by (used in) investing activities (GAAP Measure)
(13,227
)
 
(888
)
 
(6,038
)
 
(39,139
)
 
52,810

Cash Flows from Financing Activities:
 
 
 
 
 
 
 
 
 
Payments on long-term debt
(2,800
)
 
(1,173
)
 
(2,027
)
 
(487
)
 
(22,498
)
Proceeds from issuance of debt, net of issue costs
(173
)
 
3,396

 
6,564

 
13,920

 
22,463

Distribution of SEACOR Marine restricted stock to Company personnel by SEACOR Holdings
(2,656
)
 

 

 

 

Purchase of subsidiary shares from noncontrolling interests
(3,693
)
 

 

 

 

Net cash provided by (used in) financing activities (GAAP Measure)
(9,322
)
 
2,223

 
4,537

 
13,433

 
(35
)
Effects of Exchange Rate Changes on Cash and Cash Equivalents
858

 
269

 
(979
)
 
(385
)
 
(829
)
Net Increase (Decrease) in Cash and Cash Equivalents
(33,251
)
 
66,900

 
(15,168
)
 
(33,649
)
 
42,128

Cash and Cash Equivalents, Beginning of Year
184,209

 
117,309

 
132,477

 
166,126

 
123,998

Cash and Cash Equivalents, End of Year
$
150,958

 
$
184,209

 
$
117,309

 
$
132,477

 
$
166,126

______________________
(1)
Direct vessel profit (defined as operating revenues less operating expenses excluding leased-in equipment and as presented in the preceding table, “DVP”) is our measure of segment profitability when applied to individual segments and a non-GAAP measure when applied on a consolidated basis for the combined fleet. We believe that DVP is a critical financial measure to analyze and compare the operating performance of our individual vessels, fleet categories and combined fleet, without regard to financing decisions (depreciation for owned vessels vs. leased-in expense for leased-in vessels). DVP is also useful when comparing our fleet’s performance against those of our competitors who may have differing fleet financing structures. DVP has material limitations as an analytical tool in that it does not reflect all of the costs associated with the operation of our fleet, and it should not be considered in isolation or used as a substitute for our results as reported under GAAP.

12


SEACOR MARINE HOLDINGS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, unaudited)
 
Jun. 30, 2017
 
Mar. 31, 2017
 
Dec. 31, 2016
 
Sep. 30, 2016
 
Jun. 30, 2016
ASSETS
 
 
 
 
 
 
 
 
 
Current Assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
150,958

 
$
184,209

 
$
117,309

 
$
132,477

 
$
166,126

Restricted cash
1,824

 
1,811

 
1,462

 
1,120

 

Marketable securities
688

 
785

 
40,139

 
22,894

 
22,221

Receivables:
 
 
 
 
 
 
 
 
 
Trade, net of allowance for doubtful accounts
43,475

 
48,044

 
44,830

 
62,326

 
61,533

Due from SEACOR Holdings

 

 
19,102

 

 

Other
11,957

 
11,701

 
21,316

 
18,864

 
13,701

Inventories
3,376

 
3,421

 
3,058

 
3,165

 
3,219

Prepaid expenses and other
3,719

 
3,068

 
3,349

 
2,460

 
3,141

Total current assets
215,997

 
253,039

 
250,565

 
243,306

 
269,941

Property and Equipment:
 
 
 
 
 
 
 
 
 
Historical cost
1,155,155

 
1,089,176

 
958,759

 
1,058,048

 
1,098,914

Accumulated depreciation
(543,822
)
 
(534,522
)
 
(540,619
)
 
(552,018
)
 
(556,909
)
 
611,333

 
554,654

 
418,140

 
506,030

 
542,005

Construction in progress
90,335

 
83,710

 
123,801

 
122,633

 
101,914

Net property and equipment
701,668

 
638,364

 
541,941

 
628,663

 
643,919

Investments, at Equity, and Advances to 50% or Less Owned Companies
100,719

 
114,767

 
138,311

 
133,011

 
130,034

Construction Reserve Funds
67,799

 
83,477

 
78,209

 
61,899

 
61,905

Other Assets
6,072

 
6,176

 
6,093

 
20,048

 
20,081

 
$
1,092,255

 
$
1,095,823

 
$
1,015,119

 
$
1,086,927

 
$
1,125,880

 
 
 
 
 
 
 
 
 
 
LIABILITIES AND EQUITY
 
 
 
 
 
 
 
 
 
Current Liabilities:
 
 
 
 
 
 
 
 
 
Current portion of long-term debt
$
81,593

 
$
26,600

 
$
20,400

 
$
20,351

 
$
20,351

Accounts payable and accrued expenses
23,436

 
26,399

 
25,969

 
27,029

 
26,187

Due to SEACOR Holdings
3,519

 
1,827

 

 
2,497

 
2,838

Other current liabilities
47,014

 
46,055

 
34,647

 
39,233

 
44,707

Total current liabilities
155,562

 
100,881

 
81,016

 
89,110

 
94,083

Long-Term Debt
233,904

 
274,408

 
217,805

 
209,724

 
194,115

Conversion Option Liability on 3.75% Convertible Senior Notes
27,109

 

 

 

 

Deferred Income Taxes
117,332

 
121,028

 
124,945

 
131,225

 
148,307

Deferred Gains and Other Liabilities
39,324

 
38,820

 
41,198

 
44,374

 
48,368

Total liabilities
573,231

 
535,137

 
464,964

 
474,433

 
484,873

Equity:
 
 
 
 
 
 
 
 
 
SEACOR Marine Holdings Inc. stockholders’ equity:
 
 
 
 
 
 
 
 
 
Preferred stock

 

 

 

 

Common stock
177

 
177

 
177

 
177

 
177

Additional paid-in capital
302,678

 
306,359

 
306,359

 
306,359

 
306,359

Retained earnings
208,025

 
242,017

 
249,412

 
310,987

 
338,920

Accumulated other comprehensive loss, net of tax
(9,690
)
 
(10,679
)
 
(11,337
)
 
(11,024
)
 
(10,668
)
 
501,190

 
537,874

 
544,611

 
606,499

 
634,788

Noncontrolling interests in subsidiaries
17,834

 
22,812

 
5,544

 
5,995

 
6,219

Total equity
519,024

 
560,686