Exhibit 99.1

 

PRESS RELEASE

                                  

 

SEACOR MARINE ANNOUNCES THIRD QUARTER 2018 RESULTS 

 

CONTINUED IMPROVEMENT IN OPERATING PERFORMANCE 

 

STRENGTHENED BALANCE SHEET

 

Houma, Louisiana

November 12, 2018

 

 

FOR IMMEDIATE RELEASE - SEACOR Marine Holdings Inc. (NYSE:SMHI) (the “Company” or “SEACOR Marine”), 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 third quarter and nine months ended September 30, 2018.

 

For the third quarter and nine months ended September 30, 2018, net loss attributable to SEACOR Marine was $16.0 million ($0.71 per diluted share) and $69.8 million ($3.42 per diluted share), respectively, and operating loss was $10.2 million and $55.6 million, respectively.

 

For the third quarter and nine months ended September 30, 2017, net loss attributable to SEACOR Marine was $20.5 million ($1.25 per diluted share) and $61.9 million ($3.51 per diluted share), respectively, and operating loss was $29.1 million and $92.5 million, respectively.  Net Loss attributable to SEACOR Marine Holdings Inc. for the preceding quarter ended June 30, 2018 was $25.0 million ($1.19 per diluted share). 

 

Chief Executive Officer John Gellert commented on third quarter results:

 

“The improved performance of our business continued as the Company delivered its third consecutive quarter of higher direct vessel profit (“DVP”).  The standout performer was liftboats, generating approximately two-thirds of our DVP for the quarter.  Windfarm utility boats also had a strong quarter, contributing approximately 18% of quarterly DVP. The Gulf of Mexico region achieved a $4.8 million improvement in DVP from the preceding quarter, due primarily to improved utilization.

 

Further, we increased our financial capacity with the completion of a $130 million corporate loan facility, which extended maturities, reduced debt service and provided additional liquidity.

 

As part of our commitment to actively managing our fleet, we sold five vessels in the third quarter, sold a 51% interest in one of our 15 PSVs and added two AHTS vessels to our fleet. As of September 30, 2018, the net book value of our property and equipment was approximately $793.2 million, a growth of approximately $104 million this year. 

 

Collectively, the sale transactions in the third quarter generated a net gain of approximately $0.6 million. Subsequent to quarter end, we concluded additional sales which, as of today, generated an additional net gain of approximately $5.1 million.

 

Successfully raising both equity and debt in 2018 demonstrates broad support for our platform and this quarter began to demonstrate the value of that platform.  We ended the quarter with more than $100 million in cash, which provides a strong base to both prepare our fleet for 2019 and selectively pursue opportunities for growth.”

 

Third quarter highlights include:

 

  47.6% increase in consolidated direct vessel profit (“DVP”)(1) to $21.7 million from $14.7 million in second quarter 2018, and an increase of 130.6% from $9.4 million in third quarter 2017.  DVP measures operational performance (operating revenues less direct operating costs, excluding leased-in equipment). DVP has increased steadily over the past five quarters, with increases experienced across most of the Company's regions.

 

  Continued improvement in fleet utilization to 68% from 62% in second quarter 2018 and 60% in third quarter 2017; average day rates were flat at $7,323 compared to the prior quarter and up 21.9% from $6,006 in third quarter 2017.

 

 

Completed a refinancing transaction with a new $130.0 million loan facility, consolidating multiple facilities into a more efficient single credit facility, improving the Company's capital structure and addressing near-term maturities. 

 

 

The Company used $101.3 million of gross proceeds from the credit facility to pay in full three credit agreements and the remaining $28.7 million is available for general corporate purposes, including acquisitions.

 

 

• 

   The refinanced debt reduced required principal payments through 2019 by $37.2 million and extended the final balloon payment until 2023.

 

A comparison of results for the third quarter ended September 30, 2018 with the preceding quarter ended June 30, 2018 is included below.

 

1

 

 

Operating Revenues. Time charter revenues were $6.1 million higher compared with the preceding quarter. On a total fleet basis, time charter revenues increased by $3.1 million from improved utilization, $0.9 million from net fleet additions and $4.2 million due to the repositioning of vessels between geographic regions. This increase was partially offset by $1.3 million due to a reduction in average rates per day worked and $0.8 million due to unfavorable changes in currency exchange rates.  Other marine services revenues were $3.5 million higher compared with the preceding quarter.

 

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 58% to 60%, and average rates per day worked increased from $9,742 to $10,186. Days available for charter were 1% higher in the third quarter primarily due to net fleet additions. This release includes a table presenting time charter operating data by vessel class.

 

Direct Vessel Profit (“DVP”)(1) by Region. DVP generated by the Company’s operating regions was $21.7 million compared with $14.7 million in the preceding quarter, an increase of $7.0 million. Improvements in operating revenues of $9.6 million were partly offset by increased direct operating expenses of $2.6 million. Drydocking expenses were $1.7 million higher due to timing of dockings. Results by region are as follows:

 

United States, primarily Gulf of Mexico. DVP was $6.6 million compared with $1.8 million in the preceding quarter, a $4.8 million improvement. Time charter revenues were $3.7 million higher compared with the preceding quarter, including $4.4 million from the liftboat fleet, primarily due to improved utilization. Other marine services revenues were $1.1 million higher. On a total fleet basis, including cold-stacked vessels, utilization of the fleet increased from 23% to 30%, and average rates per day worked increased from $10,503 to $12,476. Days available for charter decreased by 7% primarily due to net fleet dispositions and the repositioning of vessels between geographic regions. Operating expenses were flat. As of September 30, 2018, the Company had 22 of 38 owned and leased-in vessels cold-stacked in the U.S. (six anchor handling towing supply vessels, nine fast support vessels, six liftboats and one specialty vessel) compared with 25 of 38 vessels as of June 30, 2018. As of September 30, 2018, the Company had five vessels retired and removed from service in this region (four anchor handling towing supply vessels and one supply).

 

Africa, primarily West Africa. DVP was $2.3 million compared with $2.0 million in the preceding quarter, a $0.3 million increase. Time charter revenues were $0.1 million higher compared with the preceding quarter. On a total fleet basis, including cold-stacked vessels, utilization of the fleet decreased from 88% to 82%, and average rates per day worked decreased from $9,509 to $9,315. Days available for charter increased by 11% primarily due to net fleet additions and the repositioning of vessels between geographic regions. Other marine services revenues were $1.4 million higher compared with the preceding quarter, primarily due to the collection and recognition of revenue previously deferred because of collection concerns.  Operating expenses (excluding leased-in equipment) were $1.2 million higher compared with the preceding quarter primarily due to repositioning of vessels between geographic regions, and an increase in repair costs of $0.8 million. As of September 30, 2018, the Company had one specialty vessel retired and removed from service in this region.

 

Middle East and Asia. DVP was $3.5 million compared with $3.0 million in the preceding quarter, a $0.5 million improvement. Time charter revenues were $1.0 million lower compared with the preceding quarter, primarily as a result of reduced utilization and a reduction in average rates per day worked by the active fleet. Other marine services revenues were $0.7 million higher. On a total fleet basis, including cold-stacked vessels, utilization of the fleet decreased from 82% to 76%, and average rates per day worked decreased from $8,226 to $8,156. Days available for charter increased by 1% primarily due to net fleet additions. Operating expenses (excluding leased-in equipment) were $0.8 million lower compared with the preceding quarter, primarily due to the replacement, in the preceding quarter, of main engines in two fast support vessels. As of September 30, 2018, the Company had one of 22 owned and leased-in vessels cold-stacked in the Middle East and Asia (one anchor handling towing supply vessel) compared with one of 21 vessels as of June 30, 2018. As of September 30, 2018, the Company had one specialty vessel retired and removed from service in this region. 

 

Brazil, Mexico, Central and South America. DVP was $6.1 million compared with $4.3 million in the preceding quarter, an increase of $1.8 million. Time charter revenues were $2.9 million higher compared with the preceding quarter, primarily due to the repositioning of vessels between geographic regions. On a total fleet basis, including cold-stacked vessels, utilization of the fleet increased from 57% to 80% and average rates per day worked decreased from $19,127 to $17,604. Days available for charter increased by 28% driven by repositioning of vessels between geographic regions, primarily liftboats. Operating expenses (excluding leased-in equipment) were $0.7 million higher compared with the preceding quarter. As of September 30, 2018, the Company had one of six owned and leased-in vessels cold-stacked.

 

Europe, primarily North Sea.  DVP was $3.2 million compared with $3.6 million in the preceding quarter, a decrease of $0.4 million. Time charter revenues were $0.3 million higher, primarily due to a seasonal increase in utilization of the wind farm utility vessels. For the standby safety fleet, utilization decreased from 80% to 77%, and average rates per day worked decreased from $9,157 to $8,692. For the windfarm utility vessels, utilization increased from 76% to 91%, and average rates per day worked decreased from $2,342 to $2,260, primarily due to a lower exchange ratio of the Pound Sterling. Operating expenses (excluding leased-in equipment) were $1.4 million lower compared with the preceding quarter primarily due to drydockings. As of September 30, 2018, the Company had one of 55 owned and leased-in vessels cold-stacked in Europe (one windfarm utility vessel).

 

___________________

(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. Third quarter 2018 administrative and general expenses were $3.3 million lower compared with the preceding quarter primarily due to lower legal and professional fees, stock awards granted to both employees and non-employee directors, and 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 third quarter, the Company sold two fast support vessels, two windfarm utility vessels, one platform supply vessel, one safety standby vessel and other equipment for net proceeds of $1.1 million and a gain of $0.6 million, all of which was recognized currently. During the preceding 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, all of which was recognized during the preceding quarter.

 

Derivative gains (losses). Net derivative gains during third quarter 2018 of $4.4 million, and net derivative losses during the preceding quarter of $2.7 million, are primarily due to a decrease in the fair value of the Company's conversion option derivative liability embedded in its Convertible Senior Notes.

 

Income tax benefit.   The Company's year-to-date effective income tax rate of 15.5% was primarily due to taxes not provided for income attributable to non-controlling interest, foreign source income not subject to U.S. income taxes, a return-to-provision adjustment and a reversal of an unrecognized benefit. 

 

Equity in earnings (losses) of 50% or less owned companies. Equity losses in the third quarter 2018 were $1.0 million compared with equity losses of $0.7 million in the preceding quarter. The increase in the equity losses was primarily due to decreased utilization in the MexMar fleet. 

 

Capital Commitments. As of September 30, 2018, the Company had unfunded capital commitments of $34.5 million that included two fast support vessels, three supply vessels and two wind farm utility vessels. The Company’s capital commitments by year of expected payment are as follows (in thousands):

 

2018

    2,734  

2019

    17,243  

2020

    14,552  
    $ 34,529  

 

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 September 30, 2018, the Company's balances of cash, cash equivalents, restricted cash, and construction reserve funds totaled $140.1 million and its total outstanding debt was $415.2 million (net of $39.5 million in discount and issuance costs). As of September 30, 2018, construction reserve funds of $35.6 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 $2.5 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 September 30,

    Nine Months Ended September 30,  
   

2018

   

2017

    2018     2017  

Operating Revenues

  $ 70,255     $ 47,813     $ 182,677     $ 124,440  

Costs and Expenses:

                               

Operating

    51,423       41,258       141,416       119,119  

Administrative and general

    12,234       10,318       40,573       43,849  

Depreciation and amortization

    17,342       15,622       55,260       42,758  
      80,999       67,198       237,249       205,726  

Gains (Losses) on Asset Dispositions and Impairments, Net

    586       (9,744 )     (1,002 )     (11,243 )

Operating Loss

    (10,158 )     (29,129 )     (55,574 )     (92,529 )

Other Income (Expense):

                               

Interest income

    309       354       877       1,479  

Interest expense

    (7,761 )     (4,295 )     (20,383 )     (12,023 )

SEACOR Holdings management fees

                      (3,208 )

SEACOR Holdings guarantee fees

    (5 )     (21 )     (24 )     (172 )
Loss on debt extinguishment      (638 )           (638 )      

Marketable security (losses) gains, net

          (698 )           10,931  

Derivative gains (losses), net

    4,387       13,022       (9,797 )     12,720  

Foreign currency losses, net

    (302 )     (106 )     (981 )     (1,389 )

Other, net

    678             678       (1 )
      (3,332 )     8,256       (30,268 )     8,337  

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

    (13,490 )     (20,873 )     (85,842 )     (84,192 )

Income Tax Expense (Benefit)

    1,249       (5,823 )     (13,299 )     (23,045 )

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

    (14,739 )     (15,050 )     (72,543 )     (61,147 )

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

    (1,027 )     (7,306 )     (1,540 )     (5,297 )

Net Loss

    (15,766 )     (22,356 )     (74,083 )     (66,444 )

Net Income (Loss) attributable to Noncontrolling Interests in Subsidiaries

    191       (1,881 )     (4,269 )     (4,582 )

Net Loss attributable to SEACOR Marine Holdings Inc.

  $ (15,957 )   $ (20,475 )   $ (69,814 )   $ (61,862 )
                                 

Loss Per Common Share of SEACOR Marine Holdings Inc.

                               
Basic   $ (0.71 )   $ (1.17 )   $ (3.42 )   $ (3.51 )
Diluted   $ (0.71 )   $ (1.25 )   $ (3.42 )   $ (3.51 )
                                 

Weighted Average Common Shares Outstanding:

                               
Basic     22,512,886       17,550,663       20,391,297       17,617,420  
Diluted     22,512,886       21,621,163       20,391,297       17,617,420  

 

5

 

 

SEACOR MARINE HOLDINGS INC.

UNAUDITED CONSOLIDATED RESULTS OF OPERATIONS

(in thousands, except share data)

 

   

Three Months Ended September 30,

   

Nine Months Ended September 30,

 
    2018     2017     2018     2017  

Time Charter Statistics:

                                                       

Average Rates Per Day Worked (excluding wind farm)

  $ 10,186           $ 8,565           $ 9,697           $ 8,439        

Average Rates Per Day

  $ 7,323           $ 6,006           $ 7,229           $ 5,806        

Fleet Utilization (excluding wind farm)

          60 %           49 %           56 %           43 %

Fleet Utilization

          68 %           60 %           61 %           54 %

Fleet Available Days (excluding wind farm)

    9,119             9,176             27,461             26,608        

Fleet Available Days

    12,617             12,580             37,746             36,709        

Operating Revenues:

                                                       

Time charter

  $ 62,902     90 %   $ 45,267     95 %   $ 166,870     92 %   $ 114,800     92 %

Bareboat charter

    1,168     1 %     1,168     2 %     3,467     2 %     3,467     3 %

Other marine services

    6,185     9 %     1,378     3 %     12,340     6 %     6,173     5 %
      70,255     100 %     47,813     100 %     182,677     100 %     124,440     100 %

Costs and Expenses:

                                                       

Operating:

                                                       

Personnel

    25,021     35 %     22,178     46 %     71,430     39 %     59,546     48 %

Repairs and maintenance

    9,208     13 %     7,411     15 %     25,351     14 %     21,431     17 %

Drydocking

    4,822     7 %     2,278     5 %     10,191     5 %     7,597     6 %

Insurance and loss reserves

    1,857     3 %     1,396     3 %     4,981     3 %     5,081     4 %

Fuel, lubes and supplies

    4,690     7 %     2,880     6 %     12,357     7 %     8,412     7 %

Other

    3,000     4 %     2,278     5 %     8,616     5 %     6,935     6 %

Leased-in equipment

    2,825     4 %     2,837     6 %     8,490     5 %     10,117     8 %
      51,423     73 %     41,258     86 %     141,416     78 %     119,119     96 %

Administrative and general

    12,234     17 %     10,318     22 %     40,573     22 %     43,849     35 %

Depreciation and amortization

    17,342     25 %     15,622     33 %     55,260     30 %     42,758     34 %
      80,999     115 %     67,198     141 %     237,249     130 %     205,726     165 %

Gains (Losses) on Asset Dispositions and Impairments, Net

    586     1 %     (9,744 )   (20 )%     (1,002 )   %     (11,243 )   (9 )%

Operating Loss

    (10,158 )   (14 )%     (29,129 )   (61 )%     (55,574 )   (30) %     (92,529 )   (74 )%

 

6

 

 

SEACOR MARINE HOLDINGS INC.

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME (LOSS)

(in thousands, except statistics and per share data)

 

    Three Months Ended  
   

Sep. 30,

2018

   

Jun. 30,

2018

   

Mar. 31,

2018

   

Dec. 31,

2017

   

Sep. 30,

2017

 

Time Charter Statistics:

                                       

Average Rates Per Day Worked (excluding wind farm utility)

  $ 10,186     $ 9,742     $ 9,071     $ 8,583     $ 8,565  

Average Rates Per Day Worked

  $ 7,323     $ 7,324     $ 7,001     $ 6,435     $ 6,006  

Fleet Utilization (excluding wind farm utility)

    60 %     58 %     50 %     51

%

    49

%

Fleet Utilization

    68 %     62 %     53 %     56

%

    60

%

Fleet Available Days (excluding wind farm utility)

    9,119       9,071       9,271       9,224       9,176  

Fleet Available Days

    12,617       12,528       12,601       12,628       12,580  

Operating Revenues:

                                       

Time charter

  $ 62,902     $ 56,826     $ 47,142     $ 45,745     $ 45,267  

Bareboat charter

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

Other marine services

    6,185       2,719       3,436       2,429       1,378  
      70,255       60,701       51,721       49,343       47,813  

Costs and Expenses:

                                       

Operating:

                                       
Personnel     25,021       24,733       21,676       21,953       22,179  
Repairs and maintenance     9,208       9,070       7,073       6,225       7,410  
Drydocking     4,822       3,112       2,257       1,438       2,279  
Insurance and loss reserves     1,857       1,934       1,190       1,443       1,396  
Fuel, lubes and supplies     4,690       4,122       3,545       3,620       2,880  
Other     3,000       3,009       2,607       2,970       2,278  
      48,598       45,980       38,348       37,649       38,422  
Direct Vessel Profit     21,657       14,721       13,373       11,694       9,391  
Other Costs and Expenses:                                        
Operating:                                        
Leased-in expense     2,825       2,840       2,825       2,831       2,836  

Administrative and general

    12,234       15,532       12,807       12,368       10,318  

Depreciation and amortization

    17,342       18,406       19,512       20,021       15,622  
      32,401       36,778       35,144       35,220       28,776  

Gains (Losses) on Asset Dispositions and Impairments, Net

    586       1,055       (2,643 )     (12,304

)

    (9,744

)

Operating Loss

    (10,158 )     (21,002 )     (24,414 )     (35,830

)

    (29,129

)

Other Income (Expense):

                                       

Interest income

    309       352       216       326       354  

Interest expense

    (7,761 )     (6,489 )     (6,133 )     (4,509

)

    (4,295

)

SEACOR Holdings management fees

    —                           

SEACOR Holdings guarantee fees

    (5 )     (7 )     (12 )     (29

)

    (21

)

Debt extinguishment loss     (638 )                                

Marketable security losses, net

                            (698

)

Derivative gains (losses), net

    4,387       (2,668 )     (11,516 )     7,536       13,022  

Foreign currency (losses) gains, net

    (302 )     (818 )     139       (320

)

    (106

)

Other, net

    678                   (5

)

     
      (3,332 )     (9,630 )     (17,306 )     2,999       8,256  

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

    (13,490 )     (30,632 )     (41,720 )     (32,831

)

    (20,873

)

Income Tax Expense (Benefit)

    1,249       (4,724 )     (9,824 )     (51,361

)

    (5,823

)

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

    (14,739 )     (25,908 )     (31,896 )     18,530       (15,050

)

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

    (1,027 )     (721 )     208       9,374       (7,306

)

Net (Loss) Income

    (15,766 )     (26,629 )     (31,688 )     27,904       (22,356

)

Net Income (Loss) attributable to Noncontrolling Interests in Subsidiaries

    191       (1,605 )     (2,855 )     (1,057

)

    (1,881

)

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

  $ (15,957 )   $ (25,024 )   $ (28,833 )   $ 28,961     $ (20,475

)

                                         

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

                                       

Basic

  $ (0.71 )   $ (1.19 )   $ (1.64 )   $ 1.65     $ (1.17

)

Diluted

  $ (0.71 )   $ (1.19 )   $ (1.64 )   $ 1.20     $ (1.25

)

Weighted Average Common Shares and Warrants Outstanding:

                                       

Basic

    22,513       21,035       17,571       17,552       17,551  

Diluted

    22,513       21,035       17,571       21,629       21,621  

Common Shares and Warrants Outstanding at Period End

    22,709       22,709       17,787       17,675       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 September 30, 2018                                                
Time Charter Statistics:                                                
Average Rates Per Day    $ 12,476      $ 9,315      $ 8,156      $ 17,60      $ 4,287      $ 7,323  
Fleet Utilization     30     82 %     76     80     85 %     68 %
Fleet Available Days      3,433       1,475       2,024       531       5,154       12,617  

Operating Revenues:

                                               
Time charter    $ 12,800      $ 11,201       $ 12,590      $ 7,479      $ 18,832      $ 62,902  
Bareboat charter            —        —       1,168        —       1,168  
Other marine services      2,722       1,777       (83 )     416       1,353       6,185  
      15,522       12,978       12,507       9,063       20,185       70,255  
Direct Costs and Expenses:                                                
Operating:                                                
Personnel     4,853       4,486       4,361       1,662       9,659       25,021  
Repairs and maintenance     1,801       2,438       2,091       312       2,566       9,208  
Drydocking     375       1,201       352       103       2,791       4,822  
Insurance and loss reserves     612       323       385       163       374       1,857  
Fuel, lubes and supplies     1,120       1,081       892       427       1,170       4,690  
Other     154       1,103       952       350       441       3,000  
      8,915       10,632       9,033       3,017       17,001       48,598  
Direct Vessel Profit    $  6,607      $ 2,346      $  3,474      $ 6,046      $ 3,184       21,657  
Other Costs and Expenses:                                                
Operating:                                                
Leased-in equipment    $ 1,853      $ 960      $  —      $      $ 12       2,825  
Administrative and general                                             12,234  
Depreciation and amortization    $ 5,227      $ 2,381      $ 4,207      $ 2,521      $ 3,006       17,342  
                                              32,401  
Gains on Asset Dispositions and Impairments                                             586  
Operating Loss                                            $ (10,158 )

 

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 Nine Months Ended September 30, 2018                                                
Time Charter Statistics:                                                
Average Rates Per Day   $ 10,832     11,614     8,156     17,807     4,721     7,229  
Fleet Utilization     23      86     75     65      77      61
Fleet Available Days     11,193       4,066       6,161       1,166       15,159       37,746  

Operating Revenues:

                                               
Time charter   27,834     33,117     37,555     13,409     54,955     166,870  
Bareboat charter     —        —        —        3,467       —        3,467  
Other marine services     6,053       3,414       (1,005 )     1,371       2,507       12,340  
      33,887       36,531       36,550       18,247       57,462       182,677  
Direct Costs and Expenses:                                                
Operating:                                                
Personnel     13,481       12,873       12,452       3,257       29,367       71,430  
Repairs and maintenance     4,024       5,457       8,095       649       7,126       25,351  
Drydocking      1,810       2,113       413       114       5,741       10,191  
Insurance and loss reserves     1,948       789       982       399       863       4,981  
Fuel, lubes and supplies     2,513       2,650       2,848       841       3,505       12,357  
Other     208       3,541       2,996       898       973       8,616  
      23,984       27,423       27,786       6,158       47,575       132,926  
Direct Vessel Profit   9,903     9,108     8,764      12,089     9,887       49,751  
Other Costs and Expenses:                                                
Operating:                                                
Leased-in equipment   5,571     2,885     —       —      34       8,490  
Administrative and general                                             40,573  
Depreciation and amortization   17,677     8,112     14,608     6,020     8,843       55,260  
                                              104,323  
Losses on Asset Dispositions and Impairments                                             (1,002
Operating Loss                                           (55,574
                                                 
As of September 30, 2018                                                
Property and Equipment:                                                
Historical cost   479,303     186,729     310,110     102,776     200,082     1,279,000  
Accumulated depreciation     (242,364 )     (53,498 )     (81,121 )     (47,374 )     (144,395 )     (568,752
     $ 236,939      $ 133,231      $ 228,989      $ 55,402      $ 55,687      $ 710,248  

 

9

 

 

SEACOR MARINE HOLDINGS INC.

UNAUDITED DIRECT VESSEL PROFIT (“DVP”) BY REGION

(in thousands, except statistics)

 

    Three Months Ended  
   

Sep. 30,

2018

   

Jun. 30,

2018

   

Mar. 31,

2018

   

Dec. 31,

2017

   

Sep. 30,

2017

 

United States, primarily Gulf of Mexico

                                       

Time Charter Statistics:

                                       

Average rates per day worked

  $ 12,476     $ 10,503     $ 8,775     $ 8,027     $ 7,212  

Fleet utilization

    30 %     23 %     17 %     18

%

    16

%

Fleet available days

    3,433       3,710       4,050       3,864       3,859  

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

    147       292       219       139       338  

Out-of-service days for cold-stacked status

    2,101       2,435       3,111       3,010       2,746  

Operating revenues:

                                       

Time charter

  $ 12,800     $ 9,052     $ 5,982     $ 5,608     $ 4,587  

Other marine services

    2,722       1,676       1,655       1,077       1,116  
      15,522       10,728       7,637       6,685       5,703  

Direct operating expenses:

                                       

Personnel

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

Repairs and maintenance

    1,801       1,529       694       631       1,289  

Drydocking

    375       910       525       (164

)

    1,109  

Insurance and loss reserves

    612       902       434       678       598  

Fuel, lubes and supplies

    1,120       900       493       381       249  

Other

    154       29       25       3       123  
      8,915       8,906       6,163       5,382       7,823  

Direct Vessel Profit (Loss)

  $ 6,607     $ 1,822     $ 1,474     $ 1,303     $ (2,120

)

                                         

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

    1,853       1,856     $ 1,862     $ 1,866     $ 1,870  

Depreciation and amortization

    5,227       5,915     $ 6,535     $ 5,487     $ 5,224  
                                         

Africa, primarily West Africa

                                       

Time Charter Statistics:

                                       

Average rates per day worked

  $ 9,315     $ 9,509     $ 9,455     $ 10,517     $ 10,611  

Fleet utilization

    82 %     88 %     91 %     75

%

    71

%

Fleet available days

    1,475       1,331       1,260       1,207       1,283  

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

    92       46       31       34       79  

Out-of-service days for cold-stacked status

                      92       184  

Operating revenues:

                                       

Time charter

  $ 11,201     $ 11,122     $ 10,794     $ 9,533     $ 9,700  

Other marine services

    1,777       350       1,287       983       (310

)

      12,978       11,472       12,081       10,516       9,390  

Direct operating expenses:

                                       

Personnel

    4,486       4,314       4,073       3,795       3,588  

Repairs and maintenance

    2,438       1,663       1,356       855       1,324  

Drydocking

    1,201       910       2       129       311  

Insurance and loss reserves

    323       248       218       (19

)

    157  

Fuel, lubes and supplies

    1,081       900       669       859       693  

Other

    1,103       1,402       1,036       1,098       704  
      10,632       9,437       7,354       6,717       6,777  

Direct Vessel Profit 

  $ 2,346     $ 2,035     $ 4,727     $ 3,799     $ 2,613  
                                         

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

  $ 960     $ 962     $ 963     $ 965     $ 966  

Depreciation and amortization

  $ 2,381     $ 2,924     $ 2,807     $ 3,175     $ 2,456  

 

10

 

 

SEACOR MARINE HOLDINGS INC.

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

(in thousands, except statistics)

 

   

 

 

 

Three Months Ended

 
   

Sep. 30,

2018

   

Jun. 30,

2018

   

Mar. 31,

2018

   

Dec. 31,

2017

   

Sep. 30,

2017

 

Middle East and Asia

                                       

Time Charter Statistics:

                                       

Average rates per day worked

  $ 8,156     $ 8,226     $ 8,072     $ 6,784     $ 7,138  

Fleet utilization

    76 %     82 %     66 %     68

%

    61

%

Fleet available days

    2,024       2,005       2,132       2,331       2,194  

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

    76       4       151       104       95  

Out-of-service days for cold-stacked status

    92       91       130       119       184  

Operating revenues:

                                       

Time charter

  $ 12,590     $ 13,591     $ 11,374     $ 10,682     $ 9,490  

Other marine services

    (83 )     (792 )     (130 )     (171

)

    (341

)

      12,507       12,799       11,244       10,511       9,149  

Direct operating expenses:

                                       

Personnel

    4,361       4,069       4,022       4,882       4,731  

Repairs and maintenance

    2,091       3,576       2,428       2,205       2,309  

Drydocking

    352       72       (11 )     554       (102

)

Insurance and loss reserves

    385       361       236       382       363  

Fuel, lubes and supplies

    892       922       1,034       1,180       1,115  

Other

    952       836       1,208       1,522       1,192  
      9,033       9,836       8,917       10,725       9,608  

Direct Vessel Profit (Loss)

  $ 3,474     $ 2,963     $ 2,327     $ (214

)

  $ (459

)

                                         

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

  $     $     $     $     $  

Depreciation and amortization

  $ 4,207     $ 4,311     $ 6,090     $ 6,898     $ 4,320  
                                         

Brazil, Mexico, Central and South America

                                       

Time Charter Statistics:

                                       

Average rates per day worked

  $ 17,604     $ 19,127     $ 15,272     $ 16,718     $ 16,060  

Fleet utilization

    80 %     57 %     41 %     50

%

    49

%

Fleet available days

    531       416       219       184       184  

Out-of-service days for cold-stacked status

    92       91       90       92       92  

Operating revenues:

                                       

Time charter

  $ 7,479     $ 4,556     $ 1,374     $ 1,538     $ 1,439  

Bareboat charter

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

Other marine services

    416       845       110       156       159  
      9,063       6,557       2,627       2,863       2,766  

Direct operating expenses:

                                       

Personnel

    1,662       1,219       376       322       326  

Repairs and maintenance

    312       32       305       44       110  
Drydocking     103       11                    

Insurance and loss reserves

    163       169       67       230       75  

Fuel, lubes and supplies

    427       349       65       163       33  

Other

    350       488       60       44       69  
      3,017       2,268       873       803       613  

Direct Vessel Profit

  $ 6,046     $ 4,289     $ 1,754     $ 2,060     $ 2,153  
                                         

Depreciation and amortization

  $ 2,521     $ 2,280     $ 1,219     $ 1,134     $ 1,025  

 

11

 

 

SEACOR MARINE HOLDINGS INC.

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

(in thousands, except statistics)

 

    Three Months Ended  
   

Sep. 30,

2018

   

Jun. 30,

2018

   

Mar. 31,

2018

   

Dec. 31,

2017

   

Sep. 30,

2017

 

Europe, primarily North Sea

                                       

Time Charter Statistics:

                                       

Average rates per day worked - Standby safety

  $ 8,692     $ 9,157     $ 9,058     $ 8,660     $ 8,650  

Fleet utilization - Standby safety

    77 %     80 %     78 %     82

%

    84

%

Fleet available days - Standby safety

    1,809       1,746       1,849       1,822       1,840  

Average rates per day worked - Wind farm utility

    2,260       2,342       2,317       2,330       2,221  

Fleet utilization - Wind farm utility

    91 %     76 %     64 %     73

%

    94

%

Fleet available days - Wind farm utility

    3,314       3,228       3,091       3,220       3,220  

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

    240       77       137       249       110  
Out-of-service days for cold-stacked status      61                          

Operating revenues:

                                       

Time charter

  $ 18,832     $ 18,505     $ 17,618     $ 18,384     $ 20,051  

Other marine services

    1,353       640       514       384       754  
      20,185       19,145       18,132       18,768       20,805  

Direct operating expenses:

                                       

Personnel

    9,659       10,495       9,213       9,101       9,079  

Repairs and maintenance

    2,566       2,270       2,290       2,490       2,378  

Drydocking

    2,791       1,209       1,741       919       961  

Insurance and loss reserves

    374       254       235       172       203  

Fuel, lubes and supplies

    1,170       1,051       1,284       1,037       790  

Other

    441       254       278       303       190  
      17,001       15,533       15,041       14,022       13,601  

Direct Vessel Profit

  $ 3,184     $ 3,612     $ 3,091     $ 4,746     $ 7,204  
                                         

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

  $ 12     $ 22     $     $     $  

Depreciation and amortization

  $ 3,006     $ 2,976     $ 2,861     $ 3,327     $ 2,597  

 

12

 

 

SEACOR MARINE HOLDINGS INC.

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

(in thousands, except statistics)

 

   

 

 

   Three Months Ended

 
   

Sep. 30,

2018

   

Jun. 30,

2018

   

Mar. 31,

2018

   

Dec. 31,

2017

   

Sep. 30,

2017

 

Anchor handling towing supply

                                       

Time Charter Statistics:

                                       

Average rates per day worked

  $ 9,269     $ 13,381     $ 10,322     $ 10,322     $ 9,766  

Fleet utilization

    28 %     23 %     21 %     21

%

    25

%

Fleet available days

    1,012       866       1,260       1,288       1,288  

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

    100       23       36       5       69  

Out-of-service days for cold-stacked status

    602       608       947       943       851  

Operating revenues:

                                       

Time charter

  $ 2,592     $ 2,712     $ 2,787     $ 2,849     $ 3,199  

Other marine services

    1,244       (91 )     1,438       698       (88

)

      3,836       2,621       4,225       3,547       3,111  

Direct operating expenses:

                                       

Personnel

    1,667       1,593       1,397       2,381       2,388  

Repairs and maintenance

    1,625       1,281       394       498       565  

Drydocking

    1,168       945       480       (30

)

    125  

Insurance and loss reserves

    282       265       91       195       176  

Fuel, lubes and supplies

    582       586       153       446       158  

Other

    530       689       452       (499

)

    (170

)

      5,854       5,359       2,967       2,991       3,242  

Direct Vessel (Loss) Profit

  $ (2,018 )   $ (2,738 )   $ 1,258     $ 556     $ (131

)

                                         

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

  $ 1,851     $ 1,855     $ 1,858     $ 1,862     $ 1,866  

Depreciation and amortization

  $ 689     $ 532     $ 1,490     $ 2,430     $ 2,419  
                                         

Fast support

                                       

Time Charter Statistics:

                                       

Average rates per day worked

  $ 7,148     $ 6,963     $ 7,746     $ 7,414     $ 7,999  

Fleet utilization

    59 %     62 %     53 %     52

%

    49

%

Fleet available days

    3,709       3,820