smhi20180425_8k.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported):  May 10, 2018

 

 
 

SEACOR Marine Holdings Inc.

(Exact Name of Registrant as Specified in Its Charter)

 

 

Delaware

001-37966

47-2564547

(State or Other Jurisdiction

of Incorporation)

(Commission

File Number)

(IRS Employer

Identification No.)

 

 

7910 Main Street, 2nd Floor, Houma LA

70360

(Address of Principal Executive Offices)

(Zip Code)

 

 

Registrant's telephone number, including area code

(985) 876-5400

 

 

Not Applicable

(Former Name or Former Address, if Changed Since Last Report) 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction  A.2. below):

 

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act  (17 CFR 240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☒

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☒

 

 

 

 

Item 2.02    Results of Operations and Financial Condition

 

The information set forth in (and incorporated by reference into) this Item 2.02 shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act") or otherwise subject to the liabilities of that Section. The information in this Item 2.02 shall not be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

 

On May 10, 2018, SEACOR Marine Holdings Inc. (the "Company") issued a press release setting forth its earnings for the three months ended March 31, 2018 (the "Earnings Release").

 

A copy of the Earnings Release is attached hereto as Exhibit 99.1 and hereby incorporated by reference.

 

Item 9.01   Financial Statements and Exhibits

 

(d) Exhibits

 

 

Exhibit No.

Description

   

99.1

Press Release of SEACOR Marine Holdings Inc. dated May 10, 2018

 

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 
         

 

 

 

 

 

 

 

SEACOR Marine Holdings Inc.

  

 

 

 

 

May 10, 2018

 

By:

 

/s/ Jesus Llorca

 

 

 

 

 

 

 

 

 

Name: Jesus Llorca

 

 

 

 

Title: Executive Vice President and Chief Financial Officer

 

 

ex_111237.htm

Exhibit 99.1

 

PRESS RELEASE

                                  

 

SEACOR MARINE ANNOUNCES RESULTS FOR ITS

FIRST QUARTER ENDED MARCH 31, 2018

 

Houma, Louisiana

May 10, 2018

 

 

FOR IMMEDIATE RELEASE - SEACOR Marine Holdings Inc. (NYSE:SMHI) (the “Company”), a leading provider of global marine and support transportation services to offshore oil and natural gas exploration, development and production facilities worldwide, today announced results for its quarter ended March 31, 2018.

 

Net loss attributable to SEACOR Marine Holdings Inc. was $28.8 million ($1.64 per diluted share) for the first quarter ended March 31, 2018. Operating Loss for the quarter was $24.4 million.

 

Highlights from the first quarter ended March 31, 2018 included the following:

 

 

Stronger operating results in almost all of the Company’s major geographic markets drove an improvement of 14.5% over prior quarter, and 197.8% over prior year quarter, in direct vessel profit for the worldwide fleet to $13.4 million as compared to $11.7 million in the prior quarter and $4.5 million in the prior year quarter;
     
  One-time charges and non-cash adjustments for the quarter included: $19.5 million of depreciation, $2.9 million of impairments and $12.2 million mark-to-market adjustment on the convertible senior notes, as well as a $3.9 million positive tax adjustment;
     
 

Total operating revenues increased 5% over prior quarter and 51% over prior year quarter. Approximately 30% of revenue increase driven by improved performance out of the Company's legacy fleet and remaining due to contributions from acquisitions when comparing to prior year quarter;

     
  Successful closing of previously reported Falcon Global Holdings transaction resulting in an $140.5 million increase in property, plant and equipment and approximately $20.0 million cash investment in SEACOSCO joint venture;
     
  The Company's liftboat fleet utilization increased 29% over prior year quarter following consummation of the Falcon Global Holdings transaction in early February; and
     
  The Company delivered an approximately 29% reduction of its unfunded capital commitments by indefinite deferral of over $20 million of vessel orders.

 

John Gellert, the Company’s Chief Executive Officer, commented:

 

“We had a very busy and productive first quarter. In what is historically a seasonally slow period for the maintenance of offshore oil and gas platforms and offshore wind farms supported by our fleet, we experienced sequential improvements in our operating results, reflecting contributions from recent acquisitions and improving market conditions.

 

We successfully closed on the Falcon Global Holdings and SEACOSCO transactions, substantially expanding our offerings in the liftboat and premium PSV markets. We renegotiated capital commitments for the construction of US flag FSV’s and PSV’s, re-profiling the capital required to fund the commitments over the next three years and indefinitely deferring over $20 million of commitments. We also experienced sequential improvements in our operating results, reflecting contributions from recent acquisitions and improving market conditions.

 

The increased activity experienced across the business this quarter has provided us with cautious optimism that the improved trends will continue throughout the year.

 

Additionally, in April we completed a private placement of $56.855 million of equity and the conversion of $50 million of our convertible senior notes into equity. These transactions not only strengthen our balance sheet, but also allow us to continue to pursue organic and inorganic opportunities to drive growth and create long term shareholder value.”

 

For the first quarter ended March 31, 2017, net loss attributable to SEACOR Marine Holdings Inc. was $7.4 million ($0.42 per diluted share).  Net income attributable to SEACOR Marine Holdings Inc. for the preceding quarter ended December 31, 2017 was $29.0 million ($1.20 per diluted share).

 

A comparison of results for the first quarter ended March 31, 2018 with the preceding quarter ended December 31, 2017 is included below.

 

1

 

 

Operating Revenues. Time charter revenues were $1.4 million higher compared with the preceding quarter. On a total fleet basis, time charter revenues increased by $4.1 million from net fleet additions, $0.8 million due to favorable changes in currency exchange rates and $0.3 million due to an increase in average rates per day worked, which increases were partially offset by decreases of $1.1 million due to reduced utilization of the active fleet, $2.0 million as a consequence of cold-stacking vessels and $0.7 million due to the repositioning of vessels between geographic regions. Other marine services revenues were $1.0 million higher compared with the preceding quarter primarily due to the collection in the first quarter of previously deferred revenues.

 

Excluding wind farm utility vessels, but including cold-stacked vessels (those that are not currently available for active service), utilization of the fleet decreased from 51% to 50%, and average rates per day worked increased from $8,583 to $9,071. Days available for charter were 1% higher in the first 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 was $13.4 million compared with $11.7 million in the preceding quarter, an increase of $1.7 million. Improved operating revenues of $2.4 million were offset by increased operating expenses (excluding leased-in equipment) of $0.7 million. Results by region are as follows:

 

United States, primarily Gulf of Mexico. DVP was $1.5 million compared with $1.3 million in the preceding quarter, a $0.2 million improvement. Time charter revenues were $0.4 million higher compared with the preceding quarter resulting from increased revenues of $2.0 million from fleet additions, which increase was partially offset by $1.5 million due to the cold-stacking of vessels, and $0.1 million lower due to reduced utilization. On a regional fleet basis, including cold-stacked vessels, utilization of the fleet decreased from 18% to 17%, and average rates per day worked improved by 9% from $8,027 to $8,775. Days available for charter were 5% higher in the first quarter primarily due to fleet additions. Other marine services revenues were $0.6 million higher primarily due to fleet additions. Operating expenses (excluding leased-in equipment) were $0.8 million higher primarily due to fleet additions. As of March 31, 2018, the Company had 33 of 43 owned and leased-in vessels cold-stacked in the U.S. (six anchor handling towing supply vessels, 13 fast support vessels, 12 liftboats, one supply vessel and one specialty vessel) compared with 34 of 42 vessels as of December 31, 2017. As of March 31, 2018, the Company had four anchor handling towing supply vessels and one supply vessel retired and removed from service in this region.

 

Africa, primarily West Africa. DVP was $4.7 million compared with $3.8 million in the preceding quarter, a $0.9 million improvement. Time charter revenues were $1.3 million higher compared with the preceding quarter reflecting an increase of $2.2 million due to fleet additions, which increase was partially offset by $0.2 million due to reduced utilization of the core fleet, $0.3 million due to a reduction in average day rates and $0.5 million due to the repositioning of vessels between geographic regions. On a regional fleet basis, including cold-stacked vessels, overall utilization of the fleet increased from 75% to 91%, primarily due to the impact of fleet additions, and average rates per day worked decreased by 10% from $10,517 to $9,455. Days available for charter increased by 4% in the first quarter primarily due to fleet additions. As of March 31, 2018, the Company had one specialty vessel retired and removed from service in this region.

 

Middle East and Asia. DVP was $2.3 million compared with direct vessel loss of $0.2 million in the preceding quarter, a $2.5 million improvement. Time charter revenues were $0.7 million higher compared with the preceding quarter. Time charter revenues were $0.3 million higher due to increased utilization of the core fleet and $1.1 million higher due to an increase in average day rates, which increases were partially offset by $0.5 million due to the effects of cold-stacking vessels and $0.2 million due to the repositioning of vessels between geographic regions. On a regional fleet basis, including cold-stacked vessels, utilization of the fleet decreased from 68% to 66%, and average rates per day worked improved by 19% from $6,784 to $8,072. Days available for charter decreased by 9% primarily due to the retirement and removal from service of two vessels during the first quarter. Operating expenses (excluding leased-in equipment) were $1.8 million lower compared with the preceding quarter, primarily due to a decrease in drydocking activity and reduced expenditure associated with the repositioning of vessels between geographic regions. As of March 31, 2018, the Company had one of 23 owned and leased-in vessels cold-stacked in the Middle East and Asia (one anchor handling supply vessel) compared with two of 25 vessels as of December 31, 2017. As of March 31, 2018, the Company had two supply vessels and one specialty vessel retired and removed from service in this region.

 

___________________

(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.

 

2

 

 

Brazil, Mexico, Central and South America. DVP was $1.8 million compared with $2.1 million in the preceding quarter, a decrease of $0.3 million. Time charter revenues were $0.2 million lower compared with the preceding quarter. On a regional fleet basis, including cold-stacked vessels, utilization of the fleet decreased from 50% to 41%, average rates per day worked decreased by 9% from $16,718 to $15,272 and days available for charter increased by 19% primarily due to repositioning of a vessel between geographic regions. As of March 31, 2018, the Company had one of three owned and leased-in vessels cold-stacked in Brazil, Mexico, Central and South America (one fast support vessel) compared with one of four vessels as of December 31, 2017.

 

Europe, primarily North Sea. DVP was $3.1 million compared with $4.7 million in the preceding quarter, a decrease of $1.6 million. Time charter revenues were $0.8 million lower, primarily due to a seasonal reduction in utilization of the wind farm utility vessels. For the standby safety fleet, utilization decreased from 82% to 78%, and average rates per day worked improved by 5% from $8,660 to $9,058. For the windfarm utility vessels, utilization decreased from 73% to 64%, and average rates per day worked decreased from $2,330 to $2,317. Operating expenses (excluding leased-in equipment) were $1.0 million higher compared with the preceding quarter primarily due to increased drydocking activity for the standby safety fleet.

 

Administrative and general. Administrative and general expenses were $0.4 million higher compared with the preceding quarter primarily due to a recovery of doubtful accounts reserved in the preceding quarter.

 

Depreciation and amortization. Depreciation and amortization costs were $0.5 million lower compared with the preceding quarter.

 

Asset Dispositions and Impairments. During the first 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 offshore support vessel and other equipment for net proceeds of $0.4 million and a gain of $0.3 million. During the preceding quarter, the Company recognized impairment charges of $11.8 million associated with the Company’s anchor handling towing supply fleet. In addition, the Company sold three offshore support vessels previously retired and removed from service and one other offshore support vessel for net proceeds of $0.7 million and losses of $0.5 million.

 

Derivative gains (losses). Net derivative losses during the first quarter of $11.5 million, and net derivative gains during the preceding quarter of $7.5 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 effective income tax rate of 23.8% for the quarter was more than the Company’s statutory rate of 21.0% primarily due to taxes not provided on income attributable to non-controlling interests, foreign source income not subject to U.S. income taxes, and a reversal of an unrecognized tax benefit.  During the preceding quarter, the Company recognized tax benefits of $43.7 million as a result of new U.S. tax legislation signed into law on December 22, 2017. The majority of the income tax benefits recognized were due to a reduction in U.S. tax rates from 35% to 21% applied to the Company’s domestic basis differences and the elimination of previously accrued deferred taxes on the unremitted earnings of the Company’s foreign subsidiaries.

 

3

 

 

Equity in earnings (losses) of 50% or less owned companies. Equity earnings in the first quarter were $0.2 million compared with equity earnings of $9.4 million in the preceding quarter. Equity earnings in the preceding quarter included the recognition of income tax benefits of $7.1 million as a result of new U.S. tax legislation. In addition, during the first quarter the Company recorded impairment charges of $1.2 million related to its investment in SEACOR Grant DIS.

 

Capital Commitments. As of March 31, 2018, the Company had unfunded capital commitments of $48.8 million that included two fast support vessels, three supply vessels and four wind farm utility vessels. The Company’s capital commitments by year of expected payment are as follows (in thousands):

 

2018

    18,852  

2019

    21,069  

2020

    8,951  
    $ 48,872  

 

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

 

Liquidity and Debt. As of March 31, 2018, the Company’s balances of cash, cash equivalents, restricted cash, and construction reserve funds totaled $110.4 million and its total outstanding debt was $428.1 million (net of $41.4 million in discount and issue costs). These amounts do not reflect the $56,855,000 in gross proceeds received by the Company in April 2018 from the private placement of shares of the Company's common stock.  As of March 31, 2018, construction reserve funds of $45.4 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 $7.5 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 exploration, development and production 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.

 

4

 

 

Certain statements discussed in this release as well as in other reports, materials and oral statements that the Company releases from time to time to the public constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Generally, words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “believe,” “plan,” “target,” “forecast” and similar expressions are intended to identify forward-looking statements. Such forward-looking statements concern management’s expectations, strategic objectives, business prospects, anticipated economic performance and financial condition and other similar matters. These statements are not guarantees of future performance and actual events or results may differ significantly from these statements. Actual events or results are subject to significant known and unknown risks, uncertainties and other important factors, including decreased demand and loss of revenues as a result of a decline in the price of oil and resulting decrease in capital spending by oil and gas companies, an oversupply of newly built offshore support vessels, additional safety and certification requirements for drilling activities in the U.S. Gulf of Mexico and delayed approval of applications for such activities, the possibility of U.S. government implemented moratoriums directing operators to cease certain drilling activities in the U.S. Gulf of Mexico and any extension of such moratoriums, weakening demand for the Company’s services as a result of unplanned customer suspensions, cancellations, rate reductions or non-renewals of vessel charters or failures to finalize commitments to charter vessels in response to a decline in the price of oil, 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 Erica Bartsch at (212) 446-1875 or ebartsch@seacormarine.com.

 

5

 

 

SEACOR MARINE HOLDINGS INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)

(in thousands, except share data)

 

   

Three Months Ended March 31,

 
   

2018

   

2017

 

Operating Revenues

  $ 51,721     $ 34,304  

Costs and Expenses:

               

Operating

    41,173       33,379  

Administrative and general

    12,807       11,826  

Depreciation and amortization

    19,512       12,503  
      73,492       57,708  

Gains (Losses) on Asset Dispositions and Impairments, Net

    (2,643 )     4,819  

Operating Loss

    (24,414 )     (18,585 )

Other Income (Expense):

               

Interest income

    216       850  

Interest expense

    (6,133 )     (3,182 )

SEACOR Holdings management fees

    -       (1,925 )

SEACOR Holdings guarantee fees

    (12 )     (76 )

Marketable security gains, net

    -       11,738  

Derivative losses, net

    (11,516 )     (89 )

Foreign currency gains (losses), net

    139       (189 )

Other, net

    -       (1 )
      (17,306 )     7,126  

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

    (41,720 )     (11,459 )

Income Tax Benefit

    (9,824 )     (3,422 )

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

    (31,896 )     (8,037 )

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

    208       438  

Net Loss

    (31,688 )     (7,599 )

Net Loss attributable to Noncontrolling Interests in Subsidiaries

    (2,855 )     (204 )

Net Loss attributable to SEACOR Marine Holdings Inc.

  $ (28,833 )   $ (7,395 )
                 

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

  $ (1.64 )   $ (0.42 )
                 

Basic and Diluted Weighted Average Common Shares Outstanding:

    17,571,490       17,671,356  

 

6

 

 

SEACOR MARINE HOLDINGS INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)

(in thousands, except statistics and per share data)

 

   

Three Months Ended

 
   

Mar. 31,

2018

   

Dec. 31,

2017

   

Sep. 30,

2017

   

Jun. 30,

2017

   

Mar. 31,

2017

 

Time Charter Statistics:

                                       

Average Rates Per Day Worked (excluding wind farm utility)

  $ 9,071     $ 8,583     $ 8,565     $ 8,431     $ 8,272  

Average Rates Per Day Worked

  $ 7,001     $ 6,435     $ 6,006     $ 5,649     $ 5,726  

Fleet Utilization (excluding wind farm utility)

    50 %       51

%

    49

%

    43

%

    38

%

Fleet Utilization

    53 %       56

%

    60

%

    56

%

    46

%

Fleet Available Days (excluding wind farm utility)

    9,271       9,224       9,176       8,996       8,437  

Fleet Available Days

    12,601       12,628       12,580       12,363       11,767  

Operating Revenues:

                                       

Time charter

  $ 47,142     $ 45,745     $ 45,267     $ 38,803     $ 30,730  

Bareboat charter

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

Other marine services

    3,436       2,429       1,378       2,364       2,431  
      51,721       49,343       47,813       42,323       34,304  

Costs and Expenses:

                                       

Operating, excluding leased-in equipment

    38,348       37,649       38,422       40,792       29,788  

Operating, leased-in equipment

    2,825       2,831       2,836       3,690       3,591  

Administrative and general

    12,807       12,368       10,318       21,705       11,826  

Depreciation and amortization

    19,512       20,021       15,622       14,633       12,503  
      73,492       72,869       67,198       80,820       57,708  

Gains (Losses) on Asset Dispositions and Impairments, Net

    (2,643)       (12,304

)

    (9,744

)

    (6,318

)

    4,819  

Operating Loss

    (24,414)       (35,830

)

    (29,129

)

    (44,815

)

    (18,585

)

Other Income (Expense):

                                       

Interest income

    216       326       354       275       850  

Interest expense

    (6,133)       (4,509

)

    (4,295

)

    (4,546

)

    (3,182

)

SEACOR Holdings management fees

    —                    (1,283

)

    (1,925

)

SEACOR Holdings guarantee fees

    (12)       (29

)

    (21

)

    (75

)

    (76

)

Marketable security gains (losses), net

                (698

)

    (109

)

    11,738  

Derivative gains (losses), net

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

)

    (89

)

Foreign currency gains (losses), net

    139       (320

)

    (106

)

    (1,094

)

    (189

)

Other, net

          (5

)

                (1

)

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

)

    7,126  

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

    (41,720)       (32,831

)

    (20,873

)

    (51,860

)

    (11,459

)

Income Tax Benefit

    (9,824)       (51,361

)

    (5,823

)

    (13,800

)

    (3,422

)

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

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

)

    (38,060

)

    (8,037

)

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

    208       9,374       (7,306

)

    1,571       438  

Net Income (Loss)

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

)

    (36,489

)

    (7,599

)

Net Loss attributable to Noncontrolling Interests in Subsidiaries

    (2,855)       (1,057

)

    (1,881

)

    (2,497

)

    (204

)

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

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

)

  $ (33,992

)

  $ (7,395

)

                                         

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

                                       

Basic

  $ (1.64 )   $ 1.65     $ (1.17

)

  $ (1.93

)

  $ (0.42

)

Diluted

  $ (1.64 )   $ 1.20     $ (1.25

)

  $ (1.93

)

  $ (0.42

)

Weighted Average Common Shares of Outstanding:

                                       

Basic

    17,571       17,552       17,551       17,632       17,671  

Diluted

    17,571       21,629       21,621       17,632       17,671  

Common Shares Outstanding at Period End

    17,787       17,675       17,671       17,671       17,671  

 

7

 

 

SEACOR MARINE HOLDINGS INC.

UNAUDITED DIRECT VESSEL PROFIT (“DVP”) BY REGION

(in thousands, except statistics)

 

   

Three Months Ended

 
   

Mar. 31,

2018

   

Dec. 31,

2017

   

Sep. 30,

2017

   

Jun. 30,

2017

   

Mar. 31,

2017

 

United States, primarily Gulf of Mexico

                                       

Time Charter Statistics:

                                       

Average rates per day worked

  $ 8,775     $ 8,027     $ 7,212     $ 9,619     $ 10,133  

Fleet utilization

    17%       18

%

    16

%

    13

%

    7

%

Fleet available days

    4,050       3,864       3,859       4,063       3,998  

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

    219       139       338       221       159  

Out-of-service days for cold-stacked status

    3,111       3,010       2,746       3,070       3,456  

Operating revenues:

                                       

Time charter

  $ 5,982     $ 5,608     $ 4,587     $ 4,889     $ 2,995  

Other marine services

    1,655       1,077       1,116       1,198       826  
      7,637       6,685       5,703       6,087       3,821  

Direct operating expenses:

                                       

Personnel

    3,992       3,853       4,455       4,183       3,130  

Repairs and maintenance

    694       631       1,289       937       737  

Drydocking

    525       (164

)

    1,109       310       573  

Insurance and loss reserves

    434       678       598       1,205       805  

Fuel, lubes and supplies

    493       381       249       545       310  

Other

    25       3       123       51       72  
      6,163       5,382       7,823       7,231       5,627  

Direct Vessel Profit (Loss)

  $ 1,474     $ 1,303     $ (2,120

)

  $ (1,144

)

  $ (1,806

)

                                         

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

  $ 1,862     $ 1,866     $ 1,870     $ 2,205     $ 2,211  

Depreciation and amortization

  $ 6,535     $ 5,487     $ 5,224     $ 5,749     $ 5,600  
                                         

Africa, primarily West Africa

                                       

Time Charter Statistics:

                                       

Average rates per day worked

  $ 9,455     $ 10,517     $ 10,611     $ 10,348     $ 9,388  

Fleet utilization

    91%       75

%

    71

%

    67

%

    61

%

Fleet available days

    1,260       1,207       1,283       1,123       1,019  

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

    31       34       79       125       19  

Out-of-service days for cold-stacked status

          92       184       91       180  

Operating revenues:

                                       

Time charter

  $ 10,794     $ 9,533     $ 9,700     $ 7,786     $ 5,847  

Other marine services

    1,287       983       (310

)

    215       192  
      12,081       10,516       9,390       8,001       6,039  

Direct operating expenses:

                                       

Personnel

    4,073       3,795       3,588       3,428       2,608  

Repairs and maintenance

    1,356       855       1,324       3,234       544  

Drydocking

    2       129       311       683       1,057  

Insurance and loss reserves

    218       (19

)

    157       357       182  

Fuel, lubes and supplies

    669       859       693       704       559  

Other

    1,036       1,098       704       871       646  
      7,354       6,717       6,777       9,277       5,596  

Direct Vessel Profit (Loss)

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

)

  $ 443  
                                         

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

  $ 963     $ 965     $ 966     $ 969     $ 970  

Depreciation and amortization

  $ 2,807     $ 3,175     $ 2,456     $ 2,059     $ 1,590  

 

8

 

 

SEACOR MARINE HOLDINGS INC.

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

(in thousands, except statistics)

 

   

Three Months Ended

 
   

Mar. 31,

2018

   

Dec. 31,

2017

   

Sep. 30,

2017

   

Jun. 30,

2017

   

Mar. 31,

2017

 

Middle East and Asia

                                       

Time Charter Statistics:

                                       

Average rates per day worked

  $ 8,072     $ 6,784     $ 7,138     $ 6,580     $ 7,017  

Fleet utilization

    66%       68

%

    61

%

    55

%

    49

%

Fleet available days

    2,132       2,331       2,194       2,067       1,710  

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

    151       104       95       122       50  

Out-of-service days for cold-stacked status

    130       119       184       304       320  

Operating revenues:

                                       

Time charter

  $ 11,374     $ 10,682     $ 9,490     $ 7,415     $ 5,823  

Other marine services

    (130)       (171

)

    (341

)

    109       877  
      11,244       10,511       9,149       7,524       6,700  

Direct operating expenses:

                                       

Personnel

    4,022       4,882       4,731       4,147       3,123  

Repairs and maintenance

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

Drydocking

    (11)       554       (102

)

    358       158  

Insurance and loss reserves

    236       382       363       353       346  

Fuel, lubes and supplies

    1,034       1,180       1,115       908       524  

Other

    1,208       1,522       1,192       1,061       1,465  
      8,917       10,725       9,608       10,774       6,192  

Direct Vessel Profit (Loss)

  $ 2,327     $ (214

)

  $ (459

)

  $ (3,250

)

  $ 508  
                                         

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

  $     $     $     $ 516     $ 346  

Depreciation and amortization

  $ 6,090     $ 6,898     $ 4,320     $ 3,979     $ 2,527  
                                         

Brazil, Mexico, Central and South America

                                       

Time Charter Statistics:

                                       

Average rates per day worked

  $ 15,272     $ 16,718     $ 16,060     $     $  

Fleet utilization

    41%       50

%

    49

%

   

%

   

%

Fleet available days

    219       184       184       105       90  

Out-of-service days for cold-stacked status

    90       92       92       91       90  

Operating revenues:

                                       

Time charter

  $ 1,374     $ 1,538     $ 1,439     $     $  

Bareboat charter

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

Other marine services

    110       156       159       162       75  
      2,627       2,863       2,766       1,318       1,218  

Direct operating expenses:

                                       

Personnel

    376       322       326       148       13  

Repairs and maintenance

    305       44       110       116       4  

Insurance and loss reserves

    67       230       75       4       7  

Fuel, lubes and supplies

    65       163       33       27        

Other

    60       44       69       3       1  
      873       803       613       298       25  

Direct Vessel Profit

  $ 1,754     $ 2,060     $ 2,153     $ 1,020     $ 1,193  
                                         

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

  $     $     $     $     $  

Depreciation and amortization

  $ 1,219     $ 1,134     $ 1,025     $ 784     $ 665  

 

9

 

 

SEACOR MARINE HOLDINGS INC.

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

(in thousands, except statistics)

 

    Three Months Ended  
   

Mar. 31,

2018

   

Dec. 31,

2017

   

Sep. 30,

2017

   

Jun. 30,

2017

   

Mar. 31,

2017

 

Europe, primarily North Sea

                                       

Time Charter Statistics:

                                       

Average rates per day worked - Standby safety

  $ 9,058     $ 8,660     $ 8,650     $ 8,457     $ 8,131  

Fleet utilization - Standby safety

    78%       82

%

    84

%

    80

%

    80

%

Fleet available days - Standby safety

    1,849       1,822       1,840       1,820       1,800  

Average rates per day worked - Wind farm utility

    2,317       2,330       2,221       2,124       2,005  

Fleet utilization - Wind farm utility

    64%       73

%

    94

%

    95

%

    69

%

Fleet available days - Wind farm utility

    3,091       3,220       3,220       3,185       3,150  

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

    137       249       110       124       173  

Operating revenues:

                                       

Time charter

  $ 17,618     $ 18,384     $ 20,051     $ 18,713     $ 16,065  

Other marine services

    514       384       754       680       461  
      18,132       18,768       20,805       19,393       16,526  

Direct operating expenses:

                                       

Personnel

    9,213       9,101       9,079       8,671       7,917  

Repairs and maintenance

    2,290       2,490       2,378       2,191       1,734  

Drydocking

    1,741       919       961       900       1,279  

Insurance and loss reserves

    235       172       203       207       219  

Fuel, lubes and supplies

    1,284       1,037       790       1,006       949  

Other

    278       303       190       237       250  
      15,041       14,022       13,601       13,212       12,348  

Direct Vessel Profit

  $ 3,091     $ 4,746     $ 7,204     $ 6,181     $ 4,178  
                                         

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

  $     $     $     $     $ 64  

Depreciation and amortization

  $ 2,861     $ 3,327     $ 2,597     $ 2,062     $ 2,121  

 

10

 

 

SEACOR MARINE HOLDINGS INC.

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

(in thousands, except statistics)

 

   

Three Months Ended

 
   

Mar. 31,

2018

   

Dec. 31,

2017

   

Sep. 30,

2017

   

Jun. 30,

2017

   

Mar. 31,

2017

 

Anchor handling towing supply

                                       

Time Charter Statistics:

                                       

Average rates per day worked

  $ 10,322     $ 10,322     $ 9,766     $ 10,774     $ 13,341  

Fleet utilization

    21%       21

%

    25

%

    24

%

    15

%

Fleet available days

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

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

    36       5       69       43       15  

Out-of-service days for cold-stacked status

    947       943       851       856       958  

Operating revenues:

                                       

Time charter

  $ 2,787     $ 2,849     $ 3,199     $ 3,299     $ 2,570  

Other marine services

    1,438       698       (88

)

    (50

)

    (163

)

      4,225       3,547       3,111       3,249       2,407  

Direct operating expenses:

                                       

Personnel

    1,397       2,381       2,388       2,745       2,494  

Repairs and maintenance

    394       498       565       990       497  

Drydocking

    480       (30

)

    125       62       348  

Insurance and loss reserves

    91       195       176       307       357  

Fuel, lubes and supplies

    153       446       158       317       416  

Other

    452       (499

)

    (170

)

    (425

)

    (284

)

      2,967       2,991       3,242       3,996       3,828  

Direct Vessel Profit (Loss)

  $ 1,258     $ 556     $ (131

)

  $ (747

)

  $ (1,421

)

                                         

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

  $ 1,858     $ 1,862     $ 1,866     $ 1,869     $ 1,873  

Depreciation and amortization

  $ 1,490     $ 2,430     $ 2,419     $ 2,418     $ 2,419  
                                         

Fast support

                                       

Time Charter Statistics:

                                       

Average rates per day worked

  $ 7,746     $ 7,414     $ 7,999     $ 8,086     $ 7,417  

Fleet utilization

    53%       52

%

    49

%

    43

%

    44

%

Fleet available days

    3,780       3,864       3,885       3,684       3,212  

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

    109       155       208       242       83  

Out-of-service days for cold-stacked status

    1,253       1,324       1,447       1,580       1,439  

Operating revenues:

                                       

Time charter

  $ 15,427     $ 14,845     $ 15,271     $ 12,712     $ 10,542  

Other marine services

    (656)       (399

)

    (410

)

    152       853  
      14,771       14,446       14,861       12,864       11,395  

Direct operating expenses:

                                       

Personnel

    4,756       5,717       5,405       4,815       4,010  

Repairs and maintenance

    2,544       1,853       2,680       5,893       709  

Drydocking

    (9)       684       247       979       1,010  

Insurance and loss reserves

    324       129       297       381       462  

Fuel, lubes and supplies

    795       849       975       990       612  

Other

    1,460       2,356       1,610       1,527       1,324  
      9,870       11,588       11,214       14,585       8,127  

Direct Vessel Profit (Loss)

  $ 4,901     $ 2,858     $ 3,647     $ (1,721

)

  $ 3,268  
                                         

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

  $ 342     $ 343     $ 343     $ 860     $ 690  

Depreciation and amortization

  $ 6,585     $ 6,521     $ 5,000     $ 4,403     $ 3,418  

 

11

 

 

SEACOR MARINE HOLDINGS INC.

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

(in thousands, except statistics)

 

   

Three Months Ended

 
   

Mar. 31,

2018

   

Dec. 31,

2017

   

Sep. 30,

2017

   

Jun. 30,

2017

   

Mar. 31,

2017

 

Supply

                                       

Time Charter Statistics:

                                       

Average rates per day worked

  $ 6,454     $ 5,222     $ 6,279     $ 6,028     $ 11,707  

Fleet utilization

    73%       81

%

    65

%

    48

%

    20

%

Fleet available days

    633       594       507       580       630  

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

    16       2       36       3        

Out-of-service days for cold-stacked status

    68       25       99       182       194  

Operating revenues:

                                       

Time charter

  $ 3,002     $ 2,527     $ 2,062     $ 1,679     $ 1,457  

Other marine services

    1,125       1,122       1,079       1,069       1,077  
      4,127       3,649       3,141       2,748       2,534  

Direct operating expenses:

                                       

Personnel

    1,956       1,604       1,321       1,198       1,055  

Repairs and maintenance

    445       266       321       362       200  

Insurance and loss reserves

    102       210       26       34       74  

Fuel, lubes and supplies

    694       632       194       156       171  

Other

    719       348       158       252       954  
      3,916       3,060       2,020       2,002       2,454  

Direct Vessel Profit

  $ 211     $ 589     $ 1,121     $ 746     $ 80  
                                         

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

  $     $     $     $ 331     $ 332  

Depreciation and amortization

  $ 2,743     $ 3,566     $ 1,226     $ 1,278     $ 1,295  
                                         

Standby safety

                                       

Time Charter Statistics:

                                       

Average rates per day worked

  $ 9,058     $ 8,660     $ 8,650     $ 8,457     $ 8,131  

Fleet utilization

    78%       82

%

    84

%

    80

%

    80

%

Fleet available days

    1,849       1,822       1,840       1,820       1,800  

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

            78       96       108       87  

Operating revenues:

                                       

Time charter

  $ 13,051     $ 12,921     $ 13,328     $ 12,279     $ 11,695  

Other marine services

    40       38       32       36       33  
      13,091       12,959       13,360       12,315       11,728  

Direct operating expenses:

                                       

Personnel

    6,938       6,901       6,955       6,698       6,334  

Repairs and maintenance

    1,554       1,570       1,943       1,610       1,208  

Drydocking

    1,741       919       960       900       1,280  

Insurance and loss reserves

    138       106       116       137       136  

Fuel, lubes and supplies

    991       894       723       844       825  

Other

    161       220       156       199       197  
      11,523       10,610       10,853       10,388       9,980  

Direct Vessel Profit

  $ 1,568     $ 2,349     $ 2,507     $ 1,927     $ 1,748  
                                         

Depreciation and amortization

  $ 694     $ 769     $ 578     $ 566     $ 559  

 

12

 

 

 SEACOR MARINE HOLDINGS INC.

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

(in thousands, except statistics)

 

   

Three Months Ended

 
   

Mar. 31,

2018

   

Dec. 31,

2017

   

Sep. 30,

2017

   

Jun. 30,

2017

   

Mar. 31,

2017

 

Specialty

                                       

Time Charter Statistics:

                                       

Average rates per day worked

  $     $     $     $ 12,000     $  

Fleet utilization

    %    

%

   

%

    5

%

   

%

Fleet available days

    90       276       276       273       270  

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

          24       25       7