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):  November 12, 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 November 12, 2018, SEACOR Marine Holdings Inc. (the "Company") issued a press release setting forth its earnings for the three months ended September 30, 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 November 12, 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.

  

 

 

 

 

November 13, 2018

 

By:

 

/s/ Jesús Llorca

 

 

 

 

 

 

 

 

 

Name: Jesús Llorca

 

 

 

 

Title: Executive Vice President and Chief Financial Officer

 

 

ex_111237.htm

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       3,780       3,864       3,885  

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

    131       53       109       155       208  

Out-of-service days for cold-stacked status

    1,037       1,191       1,253       1,324       1,447  

Operating revenues:

                                       

Time charter

  $ 15,678     $ 16,488     $ 15,427     $ 14,845     $ 15,271  

Other marine services

    (834 )     (505 )     (656 )     (399

)

    (410

)

      14,844       15,983       14,771       14,446       14,861  

Direct operating expenses:

                                       

Personnel

    5,826       5,258       4,756       5,717       5,405  

Repairs and maintenance

    2,641       3,406       2,544       1,853       2,680  

Drydocking

    432       115       (9 )     684       247  

Insurance and loss reserves

    407       314       324       129       297  

Fuel, lubes and supplies

    1,016       1,015       795       849       975  

Other

    1,718       1,466       1,460       2,356       1,610  
      12,040       11,574       9,870       11,588       11,214  

Direct Vessel Profit 

  $ 2,804     $ 4,409     $ 4,901     $ 2,858     $ 3,647  
                                         

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

  $ 342     $ 342     $ 342     $ 343     $ 343  

Depreciation and amortization

  $ 5,780     $ 6,585     $ 6,585     $ 6,521     $ 5,000  

 

13

 

 

SEACOR MARINE HOLDINGS INC.

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

(in thousands, except statistics)

 

   

Three Months Ended

 
   

Sep. 30,

2018

   

Jun. 30,

2018

   

Mar. 31,

2018

   

Dec. 31,

2017

   

Sep. 30,

2017

 

Supply

                                       

Time Charter Statistics:

                                       

Average rates per day worked

  $ 7,410     $ 7,174     $ 6,454     $ 5,222     $ 6,279  

Fleet utilization

    82 %     69 %     73 %     81

%

    65

%

Fleet available days

    565       637       633       594       507  

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

                16       2       36  

Out-of-service days for cold-stacked status

          19       68       25       99  

Operating revenues:

                                       

Time charter

  $ 3,442     $ 3,149     $ 3,002     $ 2,527     $ 2,062  

Other marine services

    2,234       1,195       1,125       1,122       1,079  
      5,676       4,344       4,127       3,649       3,141  

Direct operating expenses:

                                       

Personnel

    1,976       1,999       1,956       1,604       1,321  

Repairs and maintenance

    549       259       445       266       321  

Drydocking

    1,624       585                    

Insurance and loss reserves

    145       134       102       210       26  

Fuel, lubes and supplies

    391       317       694       632       194  

Other

    254       1,048       719       348       158  
      4,939       4,342       3,916       3,060       2,020  

Direct Vessel Profit

  $ 737     $ 2     $ 211     $ 589     $ 1,121  
                                         

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

  $ 34     $     $     $     $  

Depreciation and amortization

  $ 1,173     $ 1,394     $ 2,743     $ 3,566     $ 1,226  
                                         

Standby safety

                                       

Time Charter Statistics:

                                       

Average rates per day worked

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

Fleet utilization

    77 %     80 %     78 %     82

%

    84

%

Fleet available days

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

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

    117       46       87       78       96  

Operating revenues:

                                       

Time charter

  $ 12,036     $ 12,791     $ 13,051     $ 12,921     $ 13,328  

Other marine services

    50       39       40       38       32  
      12,086       12,830       13,091       12,959       13,360  

Direct operating expenses:

                                       

Personnel

    5,855       8,148       6,938       6,901       6,955  

Repairs and maintenance

    1,627       1,464       1,554       1,570       1,943  

Drydocking

    1,156       624       1,741       919       960  

Insurance and loss reserves

    234       143       138       106       116  

Fuel, lubes and supplies

    975       843       991       894       723  

Other

    351       144       161       220       156  
      10,198       11,366       11,523       10,610       10,853  

Direct Vessel Profit

  $ 1,888     $ 1,464     $ 1,568     $ 2,349     $ 2,507  
                                         

Depreciation and amortization

  $ 945     $ 681     $ 694     $ 769     $ 578  

 

14

 

 

 SEACOR MARINE HOLDINGS INC.

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

(in thousands, except statistics)

 

   

 

 Three Months Ended

 
   

Sep. 30,

2018

   

Jun. 30,

2018

   

Mar. 31,

2018

   

Dec. 31,

2017

   

Sep. 30,

2017

 

Specialty

                                       

Time Charter Statistics:

                                       

Average rates per day worked

  $     $     $     $     $  

Fleet utilization

    %     %     %    

%

   

%

Fleet available days

    92       91       90       276       276  

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

                      24       25  

Out-of-service days for cold-stacked status

    92       91       90       160       159  

Operating revenues:

                                       

Time charter

  $     $     $     $ (1

)

  $  

Other marine services

                      1       268  
                              268  

Direct operating expenses:

                                       

Personnel

    64       79       164       472       413  

Repairs and maintenance

    31       13       37       77       40  

Drydocking

                (6 )     (136

)

    736  

Insurance and loss reserves

    41       25       10       102       21  

Fuel, lubes and supplies

    65       (29 )     83       20       92  

Other

    67       93       104       85       84  
      268       181       392       620       1,386  

Direct Vessel Loss

  $ (268 )   $ (181 )   $ (392 )   $ (620

)

  $ (1,118

)

                                         

Depreciation and amortization

  $ 282     $ 283     $ 282     $ 283     $ 579  
                                         

Liftboats

                                       

Time Charter Statistics:

                                       

Average rates per day worked

  $ 18,993     $ 19,225     $ 16,068     $ 16,662     $ 11,899  

Fleet utilization

    60 %     43 %     30 %     30

%

    28

%

Fleet available days

    1,932       1,911       1,659       1,380       1,380  

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

    86       266       116       92       174  

Out-of-service days for cold-stacked status

    554       708       933       771       551  

Operating revenues:

                                       

Time charter

  $ 22,171     $ 15,788     $ 8,126     $ 6,954     $ 4,659  

Other marine services

    2,922       1,569       756       393       447  
      25,093       17,357       8,882       7,347       5,106  

Direct operating expenses:

                                       

Personnel

    5,621       4,671       3,461       2,577       3,394  

Repairs and maintenance

    1,827       1,553       1,134       990       1,288  

Drydocking

    433       842       51       1       211  

Insurance and loss reserves

    630       889       651       722       684  

Fuel, lubes and supplies

    1,482       1,153       668       632       646  

Other

    620       336       417       333       352  
      10,613       9,444       6,382       5,255       6,575  

Direct Vessel Profit (Loss)

  $ 14,480     $ 7,913     $ 2,500     $ 2,092     $ (1,469

)

                                         

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

  $ 641     $ 644     $ 638     $ 626     $ 627  

Depreciation and amortization

  $ 6,188     $ 6,333     $ 5,025     $ 3,160     $ 3,045  

 

15

 

 

SEACOR MARINE HOLDINGS INC.

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

(in thousands, except statistics)

 

   

Three Months Ended

 
   

Sep. 30,

2018

   

Jun. 30,

2018

   

Mar. 31,

2018

   

Dec. 31,

2017

   

Sep. 30,

2017

 

Wind farm utility

                                       

Time Charter Statistics:

                                       

Average rates per day worked

  $ 2,253     $ 2,330     $ 2,305     $ 2,318     $ 2,220  

Fleet utilization

    89 %     73 %     62 %     72

%

    89

%

Fleet available days

    3,498       3,457       3,330       3,404       3,404  

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

    123       31       113       171       14  

Out-of-service days for cold-stacked status

    61             40       92       99  

Operating revenues:

                                       

Time charter

  $ 6,983     $ 5,898     $ 4,749     $ 5,650     $ 6,748  

Other marine services

    657       563       429       295       688  
      7,640       6,461       5,178       5,945       7,436  

Direct operating expenses:

                                       

Personnel

    2,471       2,295       2,222       2,295       2,265  

Repairs and maintenance

    806       987       825       969       575  
Drydocking     9       1                    

Insurance and loss reserves

    130       93       103       74       89  

Fuel, lubes and supplies

    163       219       144       146       93  

Other

    104       173       96       121       87  
      3,683       3,768       3,390       3,605       3,109  

Direct Vessel Profit

  $ 3,957     $ 2,693     $ 1,788     $ 2,340     $ 4,327  
                                         

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

  $ (22 )   $ 22     $     $     $  

Depreciation and amortization

  $ 2,093     $ 2,380     $ 2,428     $ 2,903     $ 2,293  
                                         

Other Activity

                                       

Operating revenues:

                                       

Other marine services

  $ 1,080     $ 1,105     $ 1,447     $ 1,450     $ 530  
                                         

Direct operating expenses:

                                       

Personnel

    1,541       690       782       6       38  

Repairs and maintenance

    102       107       140       2       (2

)

Insurance and loss reserves

    (12 )     71       (229 )     (95

)

    (13

)

Fuel, lubes and supplies

    16       18       17       1       (1

)

Other

    (644 )     (940 )     (802 )     6       1  
      1,003       (54 )     (92 )     (80

)

    23  

Direct Vessel Profit

  $ 77     $ 1,159     $ 1,539     $ 1,530     $ 507  
                                         
Leased-in equipment (included in operating costs and expenses)   $ (21 )   $ (23 )     (13 )            

Depreciation and amortization

  $ 192     $ 218     $ 265     $ 389     $ 482  

 

16

 

 

 SEACOR MARINE HOLDINGS INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (NON-GAAP PRESENTATION)

(in thousands)

 

   

Three Months Ended

 
   

Sep. 30,

2018

   

Jun. 30,

2018

   

Mar. 31,

2018

   

Dec. 31,

2017

   

Sep. 30,

2017

 

Cash Flows from Operating Activities:

                                       

DVP

  $ 21,657     $ 14,721     $ 13,373     $ 11,694     $ 9,391  

Operating, leased-in equipment (excluding amortization of deferred gains)

    (4,834 )     (4,850 )     (4,834 )     (4,840

)

    (4,845

)

Administrative and general (excluding provisions for bad debts and amortization of share awards)

    (11,452 )     (14,076 )     (12,357 )     (12,091

)

    (11,139

)

SEACOR Holdings management and guarantee fees

    (5 )     (7 )     (12 )     (29

)

    (21

)

Other, net (excluding non-cash losses)

    249                   (5

)

     

Dividends received from 50% or less owned companies

          1,324             200       800  
      5,615       (2,888 )     (3,830 )     (5,071

)

    (5,814

)

Changes in operating assets and liabilities before interest and income taxes

    (16,587 )     (14,575 )     (4,938 )     9,003       (14,428

)

Director share awards           893                    
Restricted stock vesting     (32 )     (51 )                  

Cash settlements on derivative transactions, net

    102       (21 )     (129 )     (140

)

    (184

)

Interest paid, excluding capitalized interest

    (5,498 )     (5,875 )     (2,828 )     (4,471

)

    (1,119

)

Interest received

    309       352       216       326       354  

Income taxes (paid) refunded, net

    (344 )     (12 )           (52

)

    2,599  

Net cash used in operating activities (GAAP Measure)

    (16,435 )     (22,177 )     (11,509 )     (405

)

    (18,592

)

Cash Flows from Investing Activities:

                                       

Purchases of property and equipment, excluding capitalized interest

    (21,601 )     (5,983 )     (8,557 )     (16,105

)

    (22,796

)

Capitalized interest paid

    (614 )     (1,008 )           (563

)

    (754

)

Cash settlements on derivative transactions, net

                            (45

)

Proceeds from disposition of property and equipment

    1,858       3,244       282       1,046       248  

Construction reserve funds withdrawals, net

    2,556       7,209             94       22,344  

Net investing activities in property and equipment

    (17,801 )     3,462       (8,275 )     (15,528

)

    (1,003

)

Net investing activities in 50% or less owned companies

    1,770       (5,610 )     (19,950 )     (366

)

    (773

)

Sale of subsidiary to joint venture     8,017                          

Net investing activities in third party notes receivable

                99              

Net cash used in investing activities (GAAP Measure)

    (8,014 )     (2,148 )     (28,126 )     (15,894

)

    (1,776

)

Cash Flows from Financing Activities:

                                       

Payments on long-term debt

    (2,851 )     (6,395 )     (28,807 )     (3,354

)

    (4,599

)

Proceeds from issuance of debt, net of issue costs

    43,882             18,471       (300

)

    3,622  
Proceeds from exercise of stock options and warrants           813                    
Proceeds from issuance of stock           54,012       1,793              

Net cash provided by (used in) financing activities (GAAP Measure)

    41,031       48,430       (8,543 )     (3,654

)

    (977

)

Effects of Exchange Rate Changes on Cash and Cash Equivalents

    (253 )     (970 )     682       528       539  

Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash

    16,329       23,135       (47,496 )     (19,425

)

    (20,806

)

Cash, Cash Equivalents and Restricted Cash, Beginning of Period

    88,190       65,055       112,551       131,976       152,782  

Cash, Cash Equivalents and Restricted Cash, End of Period

  $ 104,519     $ 88,190     $ 65,055     $ 112,551     $ 131,976  

 

17

 

 

SEACOR MARINE HOLDINGS INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

 

   

Sep. 30,

2018

   

Jun. 30,

2018

   

Mar. 31,

2018

   

Dec. 31,

2017

   

Sep. 30,

2017

 

ASSETS

                                       

Current Assets:

                                       

Cash and cash equivalents

  $ 102,864     $ 86,239     $ 62,738     $ 110,234     $ 130,357  

Restricted cash

    1,655       1,951       2,316       2,317       1,619  

Receivables:

                                       

Trade, net of allowance for doubtful accounts

    75,349       57,658       45,664       45,616       54,124  

Other

    16,552       16,039       17,039       12,341       8,942  

Inventories

    3,646       3,666       3,975       3,756       3,786  

Prepaid expenses and other

    2,692       4,090       3,613       3,026       3,364  

Total current assets

    202,758       169,643       135,345       177,290       202,192  

Property and Equipment:

                                       

Historical cost

    1,279,000       1,287,855       1,320,496       1,179,836       1,204,409  

Accumulated depreciation

    (568,752 )     (564,477 )     (580,461 )     (560,160

)

    (558,919

)

      710,248       723,378       740,035       619,676       645,490  

Construction in progress

    82,953       82,274       80,682       70,157       60,597  

Net property and equipment

    793,201       805,652       820,717       689,833       706,087  

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

    120,340       115,424       112,219       92,169       89,984  

Construction Reserve Funds

    35,596       38,152       45,361       45,361       45,455  

Other Assets

    3,582       3,667       3,736       3,851       6,213  
    $ 1,155,477     $ 1,132,538     $ 1,117,378     $ 1,008,504     $ 1,049,931  

LIABILITIES AND EQUITY

                                       

Current Liabilities:

                                       

Current portion of long-term debt

  $ 17,426     $ 22,858     $ 22,858     $ 22,858       30,858  

Accounts payable and accrued expenses

    20,480       23,774       25,551       24,024       23,487  

Due to SEACOR Holdings

    463       746       1,583       1,358       663  

Other current liabilities

    63,772       56,469       55,365       50,978       54,210  

Total current liabilities

    102,141       103,847       105,357       99,218       109,218  

Long-Term Debt

    397,738       348,912       405,234       292,041       285,869  

Conversion Option Liability on Convertible Senior Notes

    17,928       21,886       18,991       6,832       14,135  

Deferred Income Taxes

    46,120       49,789       56,024       55,506       106,389  

Deferred Gains and Other Liabilities

    26,662       27,289       28,600       31,741       36,314  

Total liabilities

  $ 590,589     $ 551,723     $ 614,206     $ 485,338     $ 551,925  

Equity:

                                       

SEACOR Marine Holdings Inc. stockholders’ equity:

                                       

Common stock

  $ 204     $ 204     $ 178     $ 177     $ 177  

Additional paid-in capital

    414,460       413,754       306,639       303,996       302,952  

Retained earnings

    134,628       150,585       175,609       216,511       187,550  
Shares held in treasury     (86 )     (54 )                  

Accumulated other comprehensive loss, net of tax

    (13,945 )     (13,129 )     (10,424 )     (12,493

)

    (8,685

)

      535,261       551,360       472,002       508,191       481,994  

Noncontrolling interests in subsidiaries

    29,627       29,455       31,170       14,975       16,012  

Total equity

    564,888       580,815       503,172       523,166       498,006  
    $ 1,155,477     $ 1,132,538     $ 1,117,378     $ 1,008,504     $ 1,049,931  

 

18

 

 

SEACOR MARINE HOLDINGS INC.

UNAUDITED FLEET COUNTS

 

   

Sep. 30,

2018

   

Jun. 30,

2018(1)

   

Mar. 31,

2018

   

Dec. 31,

2017

   

Sep. 30,

2017

 

Anchor handling towing supply

    13       13       19       23       23  

Fast support

    47       49       50       50       50  

Supply

    29       29       29       31       27  

Standby safety

    20       21       22       20       21  

Specialty

    4       4       4       4       6  

Liftboats

    21       21       21       15       15  

Wind farm utility

    42       42       41       41       41  
      176       179       186       184       183  

 

______________________

(1)

Excludes six owned and one leased-in offshore support vessels that have been retired and removed from service.

 

19

 

 

SEACOR MARINE HOLDINGS INC.

UNAUDITED EXPECTED FLEET DELIVERIES

 

   

2018

   

2019

   

2020

                 
   

Q4

   

Q1

   

Q2

   

Q3

   

Q4

   

Q1

Q2 Q3 Q4    

Deferred

   

Total

 

Fast support

          1                         1       2       4  

Supply

          1             1             1             3  

Wind farm utility

    1             1                               2  

 

 

20