Exhibit 99.1

 

PRESS RELEASE

                                  

 

SEACOR MARINE ANNOUNCES SECOND QUARTER 2018 RESULTS 

CONTINUED IMPROVEMENT IN OPERATING PERFORMANCE 

STRENGTHENED BALANCE SHEET

 

Houma, Louisiana

August 9, 2018

 

 

FOR IMMEDIATE RELEASE - SEACOR Marine Holdings Inc. (NYSE:SMHI) (the “Company”), a leading provider of marine and support transportation services to offshore oil and natural gas and wind farm facilities worldwide, today announced results for its second quarter ended June 30, 2018.

 

Second quarter 2018 net loss attributable to SEACOR Marine Holdings Inc. improved to $25.0 million ($1.25 per diluted share) from a net loss of $28.8 million ($1.64 per diluted share) in the first quarter 2018 and a net loss of $34.0 million ($1.93 per diluted share) in the second quarter 2017 due primarily to increases in fleet utilization from rising customer demand, as well as higher average day rates.

 

Non-cash charges included $18.4 million of depreciation and amortization expense and a $2.9 million mark-to-market adjustment on convertible senior notes in the second quarter 2018 compared to $19.5 million of depreciation and amortization expense and a $12.2 million mark-to-market adjustment on the derivative liability embedded in the convertible senior notes in the first quarter 2018. Second quarter 2017 results included $14.6 million of depreciation and amortization expense and a $0.01 million mark-to-market adjustment on the derivative liability embedded in the convertible senior notes. 

 

Second quarter highlights include:

 

 

10.1% increase in consolidated direct vessel profit (“DVP”)(1) to $14.7 million from $13.4 million in first quarter 2018, and up from $1.5 million in second quarter 2017.  DVP measures operational performance (operating revenues less direct operating costs, excluding leased-in equipment). DVP has increased steadily over the past four quarters, and these increases have been broad based across most regions.

 

 

Continued improvement in fleet utilization to 62% from 53% in first quarter 2018 and 56% in second quarter 2017; average day rate increased 5% to $7,324 from first quarter 2018 and 30% from second quarter 2017.

 

 

A full quarter of results from the previously announced Falcon Global Holdings joint venture transaction completed on February 8, 2018 increased revenue and DVP by $8.5 million and $5.4 million, respectively, compared to first quarter 2018.

 

 

Strengthened balance sheet by improving the ratio of long-term debt as a percentage of total capital to 37% at June 30, 2018 from 45% as of March 31, 2018 and extending debt maturities:

 

 

 Raised aggregate gross proceeds of $56.9 million from successful private placement of common stock and warrants

 

 

 •

Completed conversion of $50.0 million aggregate principal of the Convertible Senior Notes into warrants for the purchase of 1,886,792 common shares and extended the maturities of the remaining $125.0 million aggregate principal by one year into 2023

 

 

Multiple vessels were repositioned for new, long-term contracts in Africa, Latin America, Middle East, Gulf of Mexico and the North Sea. Increased repositioning and reactivation costs related to these contracts were approximately $3.9 million in second quarter 2018, as the Company expenses these costs as incurred.

 

Chief Executive Officer John Gellert commented on second quarter results:

 

“We improved our operating performance for the fourth consecutive quarter, strengthened our balance sheet and continued to upgrade our fleet. For the first time since the second and third quarters of 2016, all of our operating regions achieved positive DVP for two consecutive quarters.  Liftboats were the largest contributor to increased direct vessel profit, headlined by additional contracts in Mexico supporting pipeline construction and platform maintenance projects.  The Middle East region achieved fleet utilization of 82%, the highest since 2013, aided by the commencement of several long-term charters and a seasonal uptick in construction activity.

 

To meet customer demand for new long-term contracts that we believe will boost future utilization and direct vessel profits, we incurred upfront costs to reactivate and reposition vessels. While these costs can fluctuate, as market conditions improve with longer contract terms and higher utilization, we expect these unreimbursed expenses incurred to reposition vessels will become less prevalent. 

 

We sold five vessels during the quarter with an average age of 20 years at a gain, and in early July we added two AHTS vessels built in 2013.  Both have customer contracts. Such active fleet management is central to our approach to running the business.

 

Finally, we significantly improved our financial position as we reduced leverage and extended debt maturities. We added more than $100.0 million in net equity during the quarter, putting us in a stronger position. We enter the second half of the year with cautious optimism for continued market improvement as tendering activity and customer inquiries rise."

 

A comparison of results for the second quarter ended June 30, 2018 with the preceding quarter ended March 31, 2018 is included below.

 

1

 

 

Operating Revenues. Operating revenues increased 17.4% to $60.7 million from $51.7 million in first quarter 2018, and 43.5% from $42.3 million a year ago. These increases in revenues were primarily driven by higher utilization, as well as higher day rates.

 

Direct Vessel Profit (“DVP”)(1) by Region. Total DVP increased 10.1% to $14.7 million from $13.4 million in the preceding quarter, and grew from $1.5 million in second quarter 2017.

 

Compared to first quarter 2018, the $9.0 million increase in operating revenues was partly offset by a $7.6 million increase in direct operating expenses. Personnel costs were $3.1 million higher primarily due to increased utilization. Repairs and maintenance expenses were $2.0 million higher primarily due to costs to replace main engines in two fast support vessels. Results by region are as follows:

 

United States, primarily Gulf of Mexico. DVP rose to $1.8 million compared with $1.5 million in the preceding quarter, a $0.3 million improvement. Time charter revenues were $3.1 million higher compared with the preceding quarter, including $2.8 million from the liftboat fleet, primarily due to increased utilization. Including cold-stacked vessels, utilization increased to 23% from 17% in the first quarter 2018, and average rates per day worked increased to $10,503 from $8,775. Days available for charter decreased by 8% primarily due to the removal from service of four anchor handling towing supply vessels in the preceding quarter. Improvements in operating revenues of $3.1 million were offset by increased direct operating expenses of $2.7 million, primarily due to increased utilization and reactivation costs. As of June 30, 2018, the Company had 25 of 38 owned and leased-in vessels cold-stacked in the U.S. (six anchor handling towing supply vessels, 12 fast support vessels, six liftboats and one specialty vessel) compared with 33 of 43 vessels as of March 31, 2018. As of June 30, 2018, the Company had five vessels retired and removed from service in this region.

 

Africa, primarily West Africa. DVP was $2.0 million compared with $4.7 million in the preceding quarter, a $2.7 million decline primarily due to first quarter 2018 benefitting from the recognition of previously deferred revenues. Time charter revenues were $0.3 million higher compared with the preceding quarter. Including cold-stacked vessels, utilization of this region's fleet decreased to 88% from 91% in the first quarter 2018, and average rates per day worked increased to $9,509 from $9,455 in first quarter 2018. Days available for charter increased by 6% primarily due to the repositioning of vessels between geographic regions. Operating expenses (excluding leased-in equipment) were $2.1 million higher compared with the preceding quarter primarily due to the repositioning of vessels between geographic regions that increased drydocking and other expenses. As of June 30, 2018, the Company had one specialty vessel retired and removed from service in this region.

 

Middle East and Asia. DVP increased to $3.0 million compared with $2.3 million in the preceding quarter, a $0.7 million improvement. Time charter revenues were $2.2 million higher compared with the preceding quarter, primarily as a result of improved utilization of the active fleet. Including cold-stacked vessels, utilization of this region's fleet increased to 82% from 66% in the first quarter 2018, and average rates per day worked increased to $8,226 from $8,072 in first quarter 2018. Days available for charter decreased by 6% primarily due to net fleet dispositions. Operating expenses (excluding leased-in equipment) were $0.9 million higher compared with the preceding quarter, primarily due to the replacement of main engines in two fast support vessels. As of June 30, 2018, the Company had one of 21 owned and leased-in vessels cold-stacked in the Middle East and Asia (one anchor handling towing supply vessel) compared with one of 23 vessels as of March 31, 2018. As of June 30, 2018, the Company had one specialty vessel retired and removed from service in this region.

 

Brazil, Mexico, Central and South America. DVP rose to $4.3 million compared with $1.8 million in the preceding quarter, an increase of $2.5 million primarily due to liftboat activity. Time charter revenues were $3.2 million higher compared with the preceding quarter, primarily due to higher utilization and day rates and net fleet additions from the repositioning of vessels between geographic regions. Including cold-stacked vessels, utilization increased to 57% from 41% in the first quarter 2018, and average rates per day worked increased from $15,272 to $19,127. Days available for charter increased by 90% primarily due to net fleet additions and the repositioning of vessels between geographic regions. Operating expenses (excluding leased-in equipment) were $1.4 million higher compared with the preceding quarter primarily due to higher utilization and fleet additions and mobilization costs. As of June 30, 2018, the Company had one of eight owned and leased-in vessels cold-stacked in Brazil, Mexico, Central and South America (one fast support vessel) compared with one of five vessels as of March 31, 2018

 

Europe, primarily North Sea. DVP increased to $3.6 million compared with $3.1 million in the preceding quarter, an increase of $0.5 million. Time charter revenues were $0.9 million higher, primarily due to a seasonal increase in utilization of the wind farm utility vessels. For the standby safety fleet, utilization increased from 78% in the first quarter 2018 to 80%, and average rates per day worked increased to $9,157 from $9,058 in first quarter 2018. For the windfarm utility vessels, utilization increased to 76% from 64% in the first quarter 2018, and average rates per day worked increased to $2,342 from $2,317 in the prior quarter. Operating expenses (excluding leased-in equipment) were $0.5 million higher compared with the preceding quarter due mostly to higher utilization.

___________________

(1)

Direct vessel profit (defined as operating revenues less operating expenses excluding leased-in equipment, “DVP”) is the Company’s measure of segment profitability when applied to reportable segments and a non-GAAP measure when applied to individual vessels, fleet categories or the combined fleet. DVP is a critical financial measure used by the Company to analyze and compare the operating performance of its individual vessels, fleet categories, regions 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 the Company’s fleet 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 ownership and operation of our fleet, and it should not be considered in isolation or used as a substitute for our results as reported under GAAP. See page 8 for reconciliation of DVP to GAAP Operating Income (Loss), its most comparable GAAP measure.

 

2

 

 

 

 

Administrative and general. Second quarter 2018 administrative and general expenses were $2.7 million higher compared with the preceding quarter primarily due to termination costs, stock awards granted to both employees and non-employee directors, as well as director compensation.

 

Depreciation and amortization. Depreciation and amortization costs were $1.1 million lower compared with the preceding quarter primarily due to net asset dispositions.

 

Asset Dispositions and Impairments. During the second quarter, the Company recognized impairment charges of $0.1 million associated with two permanently deferred hull projects.  In addition, the Company sold one offshore support vessel and two supply vessels previously retired and removed from service, one standby safety vessel and one fast support vessel, property and other equipment for net proceeds of $2.2 million and a gain of $1.2 million. During the preceding quarter, the Company recognized impairment charges of $2.9 million associated with the Company's anchor handling towing supply fleet. In addition, the Company sold one platform support vessel and other equipment for net proceeds of $0.4 million and a gain of $0.3 million.

 

Derivative gains (losses). Net derivative losses during second quarter 2018 of $2.7 million, and net derivative losses during the preceding quarter of $11.5 million, are principally due to changes in the fair value of the Company's conversion option liability on its convertible senior notes as a consequence of changes in the Company's share price and estimated credit spread.

 

Income tax benefit.   The Company's year-to-date effective income tax rate of 20.1% was primarily due to taxes not provided for income attributable to non-controlling interest, foreign source income not subject to U.S. income taxes and a reversal of an unrecognized benefit. 

 

Equity in earnings (losses) of 50% or less owned companies. Equity losses in the second quarter 2018 were $0.7 million compared with equity earnings of $0.2 million in the preceding quarter. The increase in the equity losses was primarily due to the Company's 50% investment in SEACOSCO joint venture. 

 

Capital Commitments. As of June 30, 2018, the Company had unfunded capital commitments of $43.3 million that included two fast support vessels, three supply vessels and three wind farm utility vessels. The Company’s capital commitments by year of expected payment are as follows (in thousands):

 

2018

    12,706  

2019

    21,620  

2020

    8,970  
    $ 43,296  

 

In addition, the Company has indefinitely deferred an additional $20.8 million of orders with respect to two fast support vessels, which the Company had previously reported as unfunded capital commitments.

 

Liquidity and Debt. As of June 30, 2018, the Company's balances of cash, cash equivalents, restricted cash, and construction reserve funds totaled $126.3 million and its total outstanding debt was $371.8 million (net of $39.9 million in discount and issuance costs). As of June 30, 2018, construction reserve funds of $38.2 million were classified as non-current assets in the accompanying condensed consolidated balance sheets as the Company has the intent and ability to use the funds to acquire equipment. Additionally, the Company had $7.3 million available under subsidiary credit facilities for future capital commitments.

 

* * * * *

 

SEACOR Marine provides global marine and support transportation services to offshore oil and natural gas and windfarm facilities worldwide. SEACOR Marine and its joint ventures operate 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; provide 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, safety support and emergency response services.

 

3

 

 

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, 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, changes to the status of applicable trade treaties including as a result of the U.K.’s impending exit from 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 of the Company to maintain effective internal controls over financial reporting in accordance with Section 404 of the Sarbanes-Oxley Act, the attraction and retention of qualified personnel by the Company, and various other matters and factors, many of which are beyond the Company’s control as well as those discussed in Item 1A (Risk Factors) of the Company’s Annual Report on Form 10-K 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 and investors and analysts should not place undue reliance on forward-looking statements. 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.

 

 

 

Please visit SEACOR Marine’s website at www.seacormarine.com for additional information.

For all other requests, contact Connie Morinello at (985) 858 – 6400 or InvestorRelations@seacormarine.com

 

4

 

 

SEACOR MARINE HOLDINGS INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)

(in thousands, except share data)

 

   

Three Months Ended June 30,

    Six Months Ended June 30,  
   

2018

   

2017

    2018     2017  

Operating Revenues

  $ 60,701     $ 42,323     $ 112,422     $ 76,627  

Costs and Expenses:

                               

Operating

    48,820       44,482       89,993       77,861   

Administrative and general

    15,532       21,705       28,339        33,531   

Depreciation and amortization

    18,406       14,633       37,918        27,136   
      82,758       80,820       156,250       138,528   

Gains (Losses) on Asset Dispositions and Impairments, Net

    1,055       (6,318     (1,588 )       (1,499

Operating Loss

    (21,002 )     (44,815 )     (45,416 )      (63,400

Other Income (Expense):

                               

Interest income

    352       275       568        1,125   

Interest expense

    (6,489 )     (4,546 )     (12,622     (7,728 )  

SEACOR Holdings management fees

          (1,283 )     —        (3,208 )  

SEACOR Holdings guarantee fees

    (7 )     (75 )     (19     (151 )  

Marketable security (losses) gains, net

          (109      —       11,629   

Derivative losses, net

    (2,668 )     (213 )      (14,184     (302 )  

Foreign currency losses, net

    (818     (1,094 )      (679     (1,283 )  

Other, net

                 —       (1 )  
      (9,630 )     (7,045     (26,936     81   

Loss Before Income Tax Benefit and Equity in Earnings of 50% or Less Owned Companies

    (30,632 )     (51,860 )     (72,352 )     (63,319 )  

Income Tax Benefit

    (4,724 )     (13,800 )     (14,548     (17,222 )  

Loss Before Equity in Earnings of 50% or Less Owned Companies

    (25,908 )     (38,060 )      (57,804 )     (46,097 )  

Equity in (Losses) Earnings of 50% or Less Owned Companies, Net of Tax

    (721     1,571        (513     2,009   

Net Loss

    (26,629 )     (36,489 )      (58,317     (44,088 )  

Net Loss attributable to Noncontrolling Interests in Subsidiaries

    (1,605 )     (2,497 )      (4,460     (2,701 )  

Net Loss attributable to SEACOR Marine Holdings Inc.

  $ (25,024 )   $ (33,992 )    $ (53,857    $  (41,387
                                 

Basic and Diluted Loss Per Common Share of SEACOR Marine Holdings Inc.

  $ (1.25 )   $ (1.93 )    $ (3.00    $ (2.34
                                 

Basic and Diluted Weighted Average Common Shares Outstanding:

    19,978,516       17,631,567       17,967,242         17,651,352  

 

5

 

 

SEACOR MARINE HOLDINGS INC.

UNAUDITED CONSOLIDATED RESULTS OF OPERATIONS

(in thousands, except share data)

 

   

Three Months Ended June 30,

   

Six Months Ended June 30,

 
    2018     2017     2018     2017  

Time Charter Statistics:

                                                               

Average Rates Per Day Worked (excluding wind farm)

  $ 9,742             $ 8,431             $ 9,425             $ 8,359          

Average Rates Per Day

  $ 7,324             $ 5,649             $ 7,174             $ 5,683          

Fleet Utilization (excluding wind farm)

    58 %             43 %             54 %             40 %        

Fleet Utilization

    62 %             56 %             58 %             51 %        

Fleet Available Days (excluding wind farm)

    9,071               8,996               18,342               17,433          

Fleet Available Days

    12,528               12,363               25,129               24,130          

Operating Revenues:

                                                               

Time charter

  $ 56,826       94 %   $ 38,803       92 %   $ 103,968       92 %   $ 69,533       91 %

Bareboat charter

    1,156       2 %     1,156       3 %     2,299       2 %     2,299       3 %

Other marine services

    2,719       4 %     2,364       5 %     6,155       6 %     4,795       6 %
      60,701       100 %     42,323       100 %     112,422       100 %     76,627       100 %

Costs and Expenses:

                                                               

Operating:

                                                               

Personnel

    24,733       41 %     20,577       49 %     46,409       41 %     37,368       49 %

Repairs and maintenance

    9,070       15 %     10,425       25 %     16,143       14 %     14,020       18 %

Drydocking

    3,112       5 %     2,251       5 %     5,369       4 %     5,318       7 %

Insurance and loss reserves

    1,934       3 %     2,126       5 %     3,124       3 %     3,685       5 %

Fuel, lubes and supplies

    4,122       7 %     3,190       7 %     7,667       7 %     5,532       7 %

Other

    3,009       5 %     2,223       5 %     5,616       5 %     4,657       6 %

Leased-in equipment

    2,840       4 %     3,690       9 %     5,665       5 %     7,281       10 %
      48,820       80 %     44,482       105 %     89,993       79 %     77,861       102 %

Administrative and general

    15,532       26 %     21,705       51 %     28,339       25 %     33,531       44 %

Depreciation and amortization

    18,406       30 %     14,633       35 %     37,918       34 %     27,136       35 %
      82,758       136 %     80,820       191 %     156,250       138 %     138,528       181 %

Gains (Losses) on Asset Dispositions and Impairments, Net

    1,055       2 %     (6,318 )     (15 )%     (1,588 )     (2 )%     (1,499 )     (2 )%

Operating Loss

    (21,002 )     (34 )%     (44,815 )     (106 )%     (45,416 )     (40 )%     (63,400 )     (83 )%

 

6

 

 

SEACOR MARINE HOLDINGS INC.

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME (LOSS)

(in thousands, except statistics and per share data)

 

    Three Months Ended  
   

Jun. 30,

2018

   

Mar. 31,

2018

   

Dec. 31,

2017

   

Sep. 30,

2017

   

Jun. 30,

2017

 

Time Charter Statistics:

                                       

Average Rates Per Day Worked (excluding wind farm utility)

  $ 9,742     $ 9,071     $ 8,583     $ 8,565     $ 8,431  

Average Rates Per Day Worked

  $ 7,324     $ 7,001     $ 6,435     $ 6,006     $ 5,649  

Fleet Utilization (excluding wind farm utility)

    58 %     50 %     51

%

    49

%

    43

%

Fleet Utilization

    62 %     53 %     56

%

    60

%

    56

%

Fleet Available Days (excluding wind farm utility)

    9,071       9,271       9,224       9,176       8,996  

Fleet Available Days

    12,528       12,601       12,628       12,580       12,363  

Operating Revenues:

                                       

Time charter

  $ 56,826     $ 47,142     $ 45,745     $ 45,267     $ 38,803  

Bareboat charter

    1,156       1,143       1,169       1,168       1,156  

Other marine services

    2,719       3,436       2,429       1,378       2,364  
      60,701       51,721       49,343       47,813       42,323  

Costs and Expenses:

                                       

Operating:

                                       
Personnel     24,733        21,676        21,953        22,179        20,577  
Repairs and maintenance     9,070        7,073        6,225        7,410        10,425  
Drydocking     3,112        2,257        1,438        2,279        2,251  
Insurance and loss reserves     1,934        1,190        1,443        1,396        2,126  
Fuel, lubes and supplies     4,122        3,545        3,620        2,880        3,190  
Other     3,009        2,607        2,970        2,278        2,223  

 

    45,980       38,348       37,649       38,422       40,792  
Direct Vessel Profit     14,721       13,373       11,694       9,391       1,531  
Other Costs and Expenses:                                        
Operating:                                        
Leased-in expense     2,840       2,825       2,831       2,836       3,690  

Administrative and general

    15,532       12,807       12,368       10,318       21,705  

Depreciation and amortization

    18,406       19,512       20,021       15,622       14,633  
      36,778       35,144       35,220       28,776       40,028  

Gains (Losses) on Asset Dispositions and Impairments, Net

    1,055       (2,643 )     (12,304

)

    (9,744

)

    (6,318

)

Operating Loss

    (21,002 )     (24,414 )     (35,830

)

    (29,129

)

    (44,815

)

Other Income (Expense):

                                       

Interest income

    352       216       326       354       275  

Interest expense

    (6,489 )     (6,133 )     (4,509

)

    (4,295

)

    (4,546

)

SEACOR Holdings management fees

                            (1,283

)

SEACOR Holdings guarantee fees

    (7 )     (12 )     (29

)

    (21

)

    (75

)

Marketable security losses, net

                      (698

)

    (109

)

Derivative (losses) gains, net

    (2,668 )     (11,516 )     7,536       13,022       (213

)

Foreign currency (losses) gains, net

    (818 )     139       (320

)

    (106

)

    (1,094

)

Other, net

                (5

)

           
      (9,630 )     (17,306 )     2,999       8,256       (7,045

)

Loss Before Income Tax Benefit and Equity in (Losses) Earnings of 50% or Less Owned Companies

    (30,632 )     (41,720 )     (32,831

)

    (20,873

)

    (51,860

)

Income Tax Benefit

    (4,724 )     (9,824 )     (51,361

)

    (5,823

)

    (13,800

)

(Loss) Income Before Equity in Earnings (Losses) of 50% or Less Owned Companies

    (25,908 )     (31,896 )     18,530       (15,050

)

    (38,060

)

Equity in (Losses) Earnings of 50% or Less Owned Companies, Net of Tax

    (721 )     208       9,374       (7,306

)

    1,571  

Net (Loss) Income

    (26,629 )     (31,688 )     27,904       (22,356

)

    (36,489

)

Net Loss attributable to Noncontrolling Interests in Subsidiaries

    (1,605 )     (2,855 )     (1,057

)

    (1,881

)

    (2,497

)

Net (Loss) Income attributable to SEACOR Marine Holdings Inc.

  $ (25,024 )   $ (28,833 )   $ 28,961     $ (20,475

)

  $ (33,992

)

                                         

(Loss) Income Per Common Share and Warrants of SEACOR Marine Holdings Inc.:

                                       

Basic

  $ (1.25 )   $ (1.64 )   $ 1.65     $ (1.17

)

  $ (1.93

)

Diluted

  $ (1.25 )   $ (1.64 )   $ 1.20     $ (1.25

)

  $ (1.93

)

Weighted Average Common Shares and Warrants Outstanding:

                                       

Basic

    19,979       17,571       17,552       17,551       17,632  

Diluted

    19,979       17,571       21,629       21,621       17,632  

Common Shares and Warrants Outstanding at Period End

    20,442       17,787       17,675       17,671       17,671  

 

7

 

 

SEACOR MARINE HOLDINGS INC.

UNAUDITED DIRECT VESSEL PROFIT (“DVP”) BY REGION

(in thousands, except share data)

 

    United States (primarily Gulf of Mexico)     Africa (primarily West Africa)     Middle East and Asia     Brazil, Mexico, Central and South America     Europe (primarily North Sea)     Total  
For the Three Months Ended June 30, 2018                                                
Time Charter Statistics:                                                
Average Rates Per Day    $ 10,503      $ 9,509      $  8,226      $  19,127      $  4,823      $  7,324  
Fleet Utilization     23     88 %     82     57     76 %     62 %
Fleet Available Days      3,710        1,331        2,005        416        5,066        12,528  

Operating Revenues:

                                               
Time charter    $  9,052      $  11,122      $  13,591      $  4,556      $  18,505      $  56,826  
Bareboat charter            —        —        1,156        —        1,156  
Other marine services      1,676        350        (792      845        640        2,719  
       10,728        11,472        12,799        6,557        19,145        60,701  
Direct Costs and Expenses:                                                
Operating:                                                
Personnel      4,636        4,314        4,069        1,219        10,495        24,733  
Repairs and maintenance      1,529        1,663        3,576        32        2,270        9,070  
Drydocking      910        910        72        11        1,209        3,112  
Insurance and loss reserves      902        248        361        169        254        1,934  
Fuel, lubes and supplies      900        900        922        349        1,051        4,122  
Other      29        1,402        836        488        254        3,009  
       8,906        9,437        9,836        2,268        15,533        45,980  
Direct Vessel Profit    $  1,822      $  2,035      $  2,963      $  4,289      $  3,612        14,721  
Other Costs and Expenses:                                                
Operating:                                                
Leased-in equipment    $  1,856      $  962      $  —      $      $  22        2,840  
Administrative and general                                              15,532  
Depreciation and amortization    $  5,915      $  2,924      $  4,311      $  2,280      $  2,976        18,406  
                                               36,778  
Gains on Asset Dispositions and Impairments                                              1,055  
Operating Loss                                            $ (21,002 )

 

8

 

 

SEACOR MARINE HOLDINGS INC.

UNAUDITED DIRECT VESSEL PROFIT (“DVP”) BY REGION

(in thousands, except share data)

 

    United States (primarily Gulf of Mexico)     Africa (primarily West Africa)     Middle East and Asia     Brazil, Mexico, Central and South America     Europe (primarily North Sea)     Total  
For the Six Months Ended June 30, 2018                                                
Time Charter Statistics:                                                
Average Rates Per Day   $ 9,740      9,482      8,155      18,069      4,984      7,174   
Fleet Utilization      20      89      74      52      72      58 
Fleet Available Days      7,760        2,591         4,137       635        10,006        25,129   

Operating Revenues:

                                               
Time charter   15,034      21,916      24,965      5,930      36,123      103,968   
Bareboat charter     —        —        —        2,229        —        2,299   
Other marine services     3,331        1,637        (922      955        1,154        6,155   
      18,365        23,553         24,043       9,184        37,277        112,422   
Direct Costs and Expenses:                                                
Operating:                                                
Personnel     8,628        8,387        8,091        1,595        19,708        46,409   
Repairs and maintenance     2,223        3,019        6,004        337        4,560        16,143   
Drydocking      1,435        912        61        11        2,950        5,369   
Insurance and loss reserves     1,336        466        597        236        489        3,124   
Fuel, lubes and supplies     1,393        1,569        1,956        414        2,335        7,667   
Other     54        2,438        2,044        548        532        5,616   
      15,069        16,791        18,753        3,141        30,574        84,328   
Direct Vessel Profit   3,296      6,762      5,290      6,043      6,703        28,094   
Other Costs and Expenses:                                                
Operating:                                                
Leased-in equipment   3,718      1,925      —       —      22        5,665   
Administrative and general                                             28,339   
Depreciation and amortization   12,450      5,731      10,401      3,499      5,837        37,918   
                                              71,922   
Losses on Asset Dispositions and Impairments                                             (1,588 
Operating Loss                                           (45,416 
                                                 
As of June 30, 2018                                                
Property and Equipment:                                                
Historical cost   439,026      184,037      317,536      165,145      182,111      1,287,855   
Accumulated depreciation     (225,116      (57,909      (86,239      (58,078      (137,135      (564,477 
     $  213,910       $ 126,128       $ 231,297       $ 107,067       $ 44,976       $ 723,378   

 

9

 

 

SEACOR MARINE HOLDINGS INC.

UNAUDITED DIRECT VESSEL PROFIT (“DVP”) BY REGION

(in thousands, except statistics)

 

 

    Three Months Ended  
   

Jun. 30,

2018

   

Mar. 31,

2018

   

Dec. 31,

2017

   

Sep. 30,

2017

   

Jun. 30,

2017

 

United States, primarily Gulf of Mexico

                                       

Time Charter Statistics:

                                       

Average rates per day worked

  $ 10,503     $ 8,775     $ 8,027     $ 7,212     $ 9,619  

Fleet utilization

    23 %     17 %     18

%

    16

%

    13

%

Fleet available days

    3,710       4,050       3,864       3,859       4,063  

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

    292       219       139       338       221  

Out-of-service days for cold-stacked status

    2,435       3,111       3,010       2,746       3,070  

Operating revenues:

                                       

Time charter

  $ 9,052     $ 5,982     $ 5,608     $ 4,587     $ 4,889  

Other marine services

    1,676       1,655       1,077       1,116       1,198  
      10,728       7,637       6,685       5,703       6,087  

Direct operating expenses:

                                       

Personnel

    4,636       3,992       3,853       4,455       4,183  

Repairs and maintenance

    1,529       694       631       1,289       937  

Drydocking

    910       525       (164

)

    1,109       310  

Insurance and loss reserves

    902       434       678       598       1,205  

Fuel, lubes and supplies

    900       493       381       249       545  

Other

    29       25       3       123       51  
      8,906       6,163       5,382       7,823       7,231  

Direct Vessel Profit (Loss)

  $ 1,822     $ 1,474     $ 1,303     $ (2,120

)

  $ (1,144

)

                                         

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

    1,856     $ 1,862     $ 1,866     $ 1,870     $ 2,205  

Depreciation and amortization

    5,915     $ 6,535     $ 5,487     $ 5,224     $ 5,749  
                                         

Africa, primarily West Africa

                                       

Time Charter Statistics:

                                       

Average rates per day worked

  $ 9,509     $ 9,455     $ 10,517     $ 10,611     $ 10,348  

Fleet utilization

    88 %     91 %     75

%

    71

%

    67

%

Fleet available days

    1,331       1,260       1,207       1,283       1,123  

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

    46       31       34       79       125  

Out-of-service days for cold-stacked status

                92       184       91  

Operating revenues:

                                       

Time charter

  $ 11,122     $ 10,794     $ 9,533     $ 9,700     $ 7,786  

Other marine services

    350       1,287       983       (310

)

    215  
      11,472       12,081       10,516       9,390       8,001  

Direct operating expenses:

                                       

Personnel

    4,314       4,073       3,795       3,588       3,428  

Repairs and maintenance

    1,663       1,356       855       1,324       3,234  

Drydocking

    910       2       129       311       683  

Insurance and loss reserves

    248       218       (19

)

    157       357  

Fuel, lubes and supplies

    900       669       859       693       704  

Other

    1,402       1,036       1,098       704       871  
      9,437       7,354       6,717       6,777       9,277  

Direct Vessel Profit (Loss)

  $ 2,035     $ 4,727     $ 3,799     $ 2,613     $ (1,276

)

                                         

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

  $ 962     $ 963     $ 965     $ 966     $ 969  

Depreciation and amortization

  $ 2,924     $ 2,807     $ 3,175     $ 2,456     $ 2,059  

 

10

 

 

SEACOR MARINE HOLDINGS INC.

 UNAUDITED DIRECT VESSEL PROFIT (“DVP”) BY REGION (continued)

(in thousands, except statistics)

 

   

Three Months Ended

 
   

Jun. 30,

2018

   

Mar. 31,

2018

   

Dec. 31,

2017

   

Sep. 30,

2017

   

Jun. 30,

2017

 

Middle East and Asia

                                       

Time Charter Statistics:

                                       

Average rates per day worked

  $ 8,226     $ 8,072     $ 6,784     $ 7,138     $ 6,580  

Fleet utilization

    82 %     66 %     68

%

    61

%

    55

%

Fleet available days

    2,005       2,132       2,331       2,194       2,067  

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

    4       151       104       95       122  

Out-of-service days for cold-stacked status

    91       130       119       184       304  

Operating revenues:

                                       

Time charter

  13,591     $ 11,374     $ 10,682     $ 9,490     $ 7,415  

Other marine services

    (792 )     (130 )     (171

)

    (341

)

    109  
      12,799       11,244       10,511       9,149       7,524  

Direct operating expenses:

                                       

Personnel

    4,069       4,022       4,882       4,731       4,147  

Repairs and maintenance

    3,576       2,428       2,205       2,309       3,947  

Drydocking

    72       (11 )     554       (102

)

    358  

Insurance and loss reserves

    361       236       382       363       353  

Fuel, lubes and supplies

    922       1,034       1,180       1,115       908  

Other

    836       1,208       1,522       1,192       1,061  
      9,836       8,917       10,725       9,608       10,774  

Direct Vessel Profit (Loss)

   $ 2,963     $ 2,327     $ (214

)

  $ (459

)

  $ (3,250

)

                                         

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

   $     $     $     $     $ 516  

Depreciation and amortization

   $ 4,311     $ 6,090     $ 6,898     $ 4,320     $ 3,979  
                                         

Brazil, Mexico, Central and South America

                                       

Time Charter Statistics:

                                       

Average rates per day worked

  $ 19,127     $ 15,272     $ 16,718     $ 16,060     $  

Fleet utilization

    57 %     41 %     50

%

    49

%

   

%

Fleet available days

    416       219       184       184       105  

Out-of-service days for cold-stacked status

    91       90       92       92       91  

Operating revenues:

                                       

Time charter

  $ 4,556     $ 1,374     $ 1,538     $ 1,439     $  

Bareboat charter

    1,156       1,143       1,169       1,168       1,156  

Other marine services

    845       110       156       159       162  
      6,557       2,627       2,863       2,766       1,318  

Direct operating expenses:

                                       

Personnel

    1,219       376       322       326       148  

Repairs and maintenance

    32       305       44       110       116  
Drydocking     11       —        —        —        —   

Insurance and loss reserves

    169       67       230       75       4  

Fuel, lubes and supplies

    349       65       163       33       27  

Other

    488       60       44       69       3  
      2,268       873       803       613       298  

Direct Vessel Profit

   $ 4,289     $ 1,754     $ 2,060     $ 2,153     $ 1,020  
                                         

Depreciation and amortization

   $ 2,280     $ 1,219     $ 1,134     $ 1,025     $ 784  

 

11

 

 

SEACOR MARINE HOLDINGS INC.

 UNAUDITED DIRECT VESSEL PROFIT (“DVP”) BY REGION (continued)

(in thousands, except statistics)

 

    Three Months Ended  
   

Jun. 30,

2018

   

Mar. 31,

2018

   

Dec. 31,

2017

   

Sep. 30,

2017

   

Jun. 30,

2017

 

Europe, primarily North Sea

                                       

Time Charter Statistics:

                                       

Average rates per day worked - Standby safety

  $ 9,157     $ 9,058     $ 8,660     $ 8,650     $ 8,457  

Fleet utilization - Standby safety

    80 %     78 %     82

%

    84

%

    80

%

Fleet available days - Standby safety

    1,746       1,849       1,822       1,840       1,820  

Average rates per day worked - Wind farm utility

    2,342       2,317       2,330       2,221       2,124  

Fleet utilization - Wind farm utility

    76 %     64 %     73

%

    94

%

    95

%

Fleet available days - Wind farm utility

    3,228       3,091       3,220       3,220       3,185  

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

    77       137       249       110       124  

Operating revenues:

                                       

Time charter

  $ 18,505     $ 17,618     $ 18,384     $ 20,051     $ 18,713  

Other marine services

    640       514       384       754       680  
      19,145       18,132       18,768       20,805       19,393  

Direct operating expenses:

                                       

Personnel

    10,495       9,213       9,101       9,079       8,671  

Repairs and maintenance

    2,270       2,290       2,490       2,378       2,191  

Drydocking

    1,209       1,741       919       961       900  

Insurance and loss reserves

    254       235       172       203       207  

Fuel, lubes and supplies

    1,051       1,284       1,037       790       1,006  

Other

    254       278       303       190       237  
      15,533       15,041       14,022       13,601       13,212  

Direct Vessel Profit

  $ 3,612     $ 3,091     $ 4,746     $ 7,204     $ 6,181  
                                         

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

  $ 22     $     $     $     $  

Depreciation and amortization

  $ 2,976      $ 2,861     $ 3,327     $ 2,597     $ 2,062  

 

12

 

 

SEACOR MARINE HOLDINGS INC.

UNAUDITED DIRECT VESSEL PROFIT (“DVP”) BY VESSEL CLASS

(in thousands, except statistics)

 

   

Three Months Ended

 
   

Jun. 30,

2018

   

Mar. 31,

2018

   

Dec. 31,

2017

   

Sep. 30,

2017

   

Jun. 30,

2017

 

Anchor handling towing supply

                                       

Time Charter Statistics:

                                       

Average rates per day worked

  $ 13,381     $ 10,322     $ 10,322     $ 9,766     $ 10,774  

Fleet utilization

    23 %     21 %     21

%

    25

%

    24

%

Fleet available days

    866       1,260       1,288       1,288       1,274  

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

    23       36       5       69       43  

Out-of-service days for cold-stacked status

    608       947       943       851       856  

Operating revenues:

                                       

Time charter

  $ 2,712     $ 2,787     $ 2,849     $ 3,199     $ 3,299  

Other marine services

    (91 )     1,438       698       (88

)

    (50

)

      2,621       4,225       3,547       3,111       3,249  

Direct operating expenses: