Press Releases

SEACOR Marine Announces Results for Its Second Quarter and Six Months Ended June 30, 2017

HOUMA, La., Aug. 10, 2017 (GLOBE NEWSWIRE) -- 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);

  • 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 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 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.

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.

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.

 
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  

 
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  

 
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  

 
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  

 
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  

 
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  

 
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.

 
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       550,155       612,494       641,007  
      $ 1,092,255       $ 1,095,823       $ 1,015,119       $ 1,086,927       $ 1,125,880  

 
SEACOR MARINE HOLDINGS INC.
FLEET COUNTS
(unaudited)
 
      Jun. 30,
2017(1)
    Mar. 31,
2017(1)
    Dec. 31,
2016(2)
    Sep. 30,
2016
    Jun. 30,
2016
                               
Anchor handling towing supply     25       25       25       27       27  
Fast support     49       51       48       50       39  
Supply     26       28       28       31       33  
Standby safety     21       21       21       21       23  
Specialty     6       6       6       7       7  
Liftboats     15       15       15       15       15  
Wind farm utility     40       40       40       40       39  
      182       186       183       191       183  

______________________

(1) Excludes six offshore support vessels retired and removed from service.
(2) Excludes eight offshore support vessels retired and removed from service.

 
SEACOR MARINE HOLDINGS INC.
EXPECTED FLEET DELIVERIES
AS OF JUNE 30, 2017
(unaudited)
  2017     2018     2019     2020      
        Q3     Q4     Q1     Q2     Q3     Q4     Q1     Q2     Q3     Q4     Q1     Q2     Total
                                                                                 
Fast support       2                               1             1             1             1       6  
Supply(1)                   1             1             1                                     3  
Wind farm utility             1                                                                   1  

______________________

(1) Includes one vessel that may be assumed by a third party at their option.

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Source: SEACOR Marine Holdings Inc.