8-K
0001690334false00016903342023-05-032023-05-03

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 3, 2023

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.)

12121 Wickchester Lane, Suite 500, Houston, TX

77079

(Address of Principal Executive Offices)

(Zip Code)

 

 

 

 

Registrant's telephone number, including area code

(346) 980-1700

 

 

 

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))

 

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common stock, par value $0.01 per share

SMHI

New York Stock Exchange (“NYSE”)

 

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 3, 2023, SEACOR Marine Holdings Inc. ("SEACOR Marine") issued a press release setting forth its earnings for the three months ended March 31, 2023 (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 3, 2023

 

 

104

Cover Page Interactive Data File (embedded within the Inline XBRL document).

 


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 3, 2023

By:

/s/ John Gellert

Name: John Gellert

Title: President and Chief Executive Officer

 


EX-99

Exhibit 99.1

https://cdn.kscope.io/f3ec1fd6601ef096bdaee16dadbd8ad9-img10727850_0.jpg 

PRESS RELEASE

SEACOR MARINE ANNOUNCES FIRST QUARTER 2023 RESULTS

Houston, Texas

May 3, 2023

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 energy facilities worldwide, today announced results for its first quarter ended March 31, 2023.

 

SEACOR Marine’s consolidated operating revenues for the first quarter of 2023 were $60.0 million, operating income was $0.2 million, and direct vessel profit (“DVP”)(1) was $22.7 million. This compares to consolidated operating revenues of $45.6 million, operating loss of $17.1 million, and DVP of $6.1 million in the first quarter of 2022, and consolidated operating revenues of $57.9 million, operating loss of $10.5 million, and DVP of $13.6 million in the fourth quarter of 2022.

 

Notable first quarter items include:

31.5% improvement in revenues from the first quarter of 2022 and a 3.5% increase from the fourth quarter of 2022.
Average utilization rate of 76%, the highest for a first quarter since 2014, a 6.0% improvement from the first quarter of 2022, and flat from the fourth quarter of 2022.
Average day rates of $14,314, the highest since the fourth quarter of 2015, a 26.5% improvement from the first quarter of 2022, and a 3.8% increase from the fourth quarter of 2022.
DVP margin increased 272.4% from the first quarter of 2022 and increased 67.1% from the fourth quarter of 2022.

 

For the first quarter of 2023, net loss was $9.6 million ($0.36 loss per basic and diluted share). This compares to a net loss for the first quarter of 2022 of $14.8 million ($0.56 loss per basic and diluted share). Sequentially, first quarter 2023 results compare to a net loss of $13.3 million ($0.50 loss per basic and diluted share) in the fourth quarter of 2022.

 

Chief Executive Officer John Gellert commented:

 

“The Company’s first quarter demonstrated the building momentum in this cyclical recovery and was our fifth consecutive quarter of improved average day rates. Additionally, the first quarter produced higher revenues and DVP than each quarter of 2022, despite being the historically slowest quarterly period of activity.

 

The increase in DVP was primarily due to higher rates and utilization as well as lower operating expenses. This improvement demonstrates our ability to execute on the re-pricing opportunities in the market as contracts roll off from prior cycle commitments. All business segments and asset classes made positive contributions, despite the seasonally lower levels of activity in the first quarter and one of our premium liftboats in the US remaining offhire for previously reported extended repairs.

On April 21, 2023, the Company announced it was exploring a potential offering of new USD denominated 5-year senior secured bonds. The Company has determined not to pursue the bond offering at this time as the indicative terms and conditions were not sufficiently attractive for the Company. In the third and fourth quarter of 2022 the Company extended the maturity of its main senior secured and unsecured debt facilities to 2026, which has provided us with the flexibility needed to opportunistically pursue refinancing opportunities as the cycle evolves in order to ensure optimal terms and conditions for the Company.

 

I remain optimistic about 2023, as evidenced by the Company’s performance in the first quarter and the increased demand across all segments of our business.”

___________________

(1)

Direct vessel profit (defined as operating revenues less operating costs and expenses, “DVP”) is the Company’s measure of segment profitability. DVP is a critical financial measure used by the Company to analyze and compare the operating

 

1


 

performance of its regions, without regard to financing decisions (depreciation and interest expense for owned vessels vs. lease expense for lease vessels). DVP is also useful when comparing the Company’s global 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 4 for reconciliation of DVP to GAAP Operating Income (Loss), its most comparable GAAP measure.

* * * * *

SEACOR Marine provides global marine and support transportation services to offshore energy facilities worldwide. SEACOR Marine operates and manages a diverse fleet of offshore support vessels that deliver cargo and personnel to offshore installations, including offshore wind farms; assist offshore operations for production and storage facilities; provide construction, well work-over, offshore wind farm installation and decommissioning support; carry and launch equipment used underwater in drilling and well installation, maintenance, inspection and repair; and handle anchors and mooring equipment for offshore rigs and platforms. Additionally, SEACOR Marine’s vessels provide emergency response services and accommodations for technicians and specialists.

 

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. Forward-looking statements are inherently uncertain and subject to a variety of assumptions, risks and uncertainties that could cause actual results to differ materially from those anticipated or expected by the management of the Company. 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, many of which are beyond the Company’s control and are described in the Company’s filings with the SEC. It should be understood that it is not possible to predict or identify all such factors. Given these risk factors, 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 InvestorRelations@seacormarine.com

 

 

2


SEACOR MARINE HOLDINGS INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)

(in thousands, except share data)

 

 

 

Three Months Ended March 31,

 

 

 

2023

 

 

2022

 

Operating Revenues

 

$

59,973

 

 

$

45,591

 

Costs and Expenses:

 

 

 

 

 

 

Operating

 

 

37,273

 

 

 

39,496

 

Administrative and general

 

 

11,632

 

 

 

9,924

 

Lease expense

 

 

720

 

 

 

1,060

 

Depreciation and amortization

 

 

13,762

 

 

 

14,371

 

 

 

63,387

 

 

 

64,851

 

Gains on Asset Dispositions and Impairments, Net

 

 

3,599

 

 

 

2,139

 

Operating Income (Loss)

 

 

185

 

 

 

(17,121

)

Other Income (Expense):

 

 

 

 

 

 

Interest income

 

 

460

 

 

 

29

 

Interest expense

 

 

(8,788

)

 

 

(6,627

)

Derivative losses, net

 

 

 

 

 

(34

)

Foreign currency (losses) gains, net

 

 

(825

)

 

 

821

 

 

 

(9,153

)

 

 

(5,811

)

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

 

 

(8,968

)

 

 

(22,932

)

Income Tax Expense (Benefit)

 

 

1,157

 

 

 

(2,421

)

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

 

 

(10,125

)

 

 

(20,511

)

Equity in Earnings of 50% or Less Owned Companies

 

 

536

 

 

 

5,674

 

Net Loss Attributable to SEACOR Marine Holdings Inc.

 

$

(9,589

)

 

$

(14,837

)

 

 

 

 

 

 

Net Loss Per Share:

 

 

 

 

 

 

Basic

 

$

(0.36

)

 

$

(0.56

)

Diluted

 

 

(0.36

)

 

 

(0.56

)

Weighted Average Common Stock and Warrants Outstanding:

 

 

 

 

 

 

Basic

 

 

26,822,391

 

 

 

26,379,293

 

Diluted

 

 

26,822,391

 

 

 

26,379,293

 

 

 

3


SEACOR MARINE HOLDINGS INC.

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME (LOSS)

(in thousands, except statistics and per share data)

 

 

Three Months Ended

 

 

 

 

Mar. 31, 2023

 

 

Dec. 31, 2022

 

 

Sep. 30, 2022

 

 

Jun. 30, 2022

 

 

Mar. 31, 2022

 

 

Time Charter Statistics:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Rates Per Day

 

$

14,314

 

 

$

13,794

 

 

$

13,340

 

 

$

12,149

 

 

$

11,312

 

 

Fleet Utilization

 

 

76

%

 

 

76

%

 

 

79

%

 

 

77

%

 

 

70

%

 

Fleet Available Days

 

 

5,071

 

 

 

5,244

 

 

 

5,336

 

 

 

5,311

 

 

 

5,400

 

 

Operating Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Time charter

 

$

55,415

 

 

$

54,789

 

 

$

56,500

 

 

$

49,504

 

 

$

42,741

 

 

Bareboat charter

 

 

360

 

 

 

376

 

 

 

332

 

 

 

48

 

 

 

618

 

 

Other marine services

 

 

4,198

 

 

 

2,761

 

 

 

2,959

 

 

 

4,465

 

 

 

2,232

 

 

 

 

59,973

 

 

 

57,926

 

 

 

59,791

 

 

 

54,017

 

 

 

45,591

 

 

Costs and Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Personnel

 

 

19,803

 

 

 

20,849

 

 

 

20,152

 

 

 

18,346

 

 

 

18,435

 

 

Repairs and maintenance

 

 

6,011

 

 

 

8,948

 

 

 

7,377

 

 

 

8,380

 

 

 

6,791

 

 

Drydocking

 

 

13

 

 

 

1,667

 

 

 

5,046

 

 

 

6,474

 

 

 

4,973

 

 

Insurance and loss reserves

 

 

2,789

 

 

 

3,381

 

 

 

2,850

 

 

 

2,545

 

 

 

1,186

 

 

Fuel, lubes and supplies

 

 

4,819

 

 

 

5,794

 

 

 

5,416

 

 

 

4,350

 

 

 

3,729

 

 

Other

 

 

3,838

 

 

 

3,699

 

 

 

3,165

 

 

 

4,050

 

 

 

4,382

 

 

 

 

37,273

 

 

 

44,338

 

 

 

44,006

 

 

 

44,145

 

 

 

39,496

 

 

Direct Vessel Profit (1)

 

 

22,700

 

 

 

13,588

 

 

 

15,785

 

 

 

9,872

 

 

 

6,095

 

 

Other Costs and Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease expense

 

 

720

 

 

 

633

 

 

 

1,168

 

 

 

1,008

 

 

 

1,060

 

 

Administrative and general

 

 

11,632

 

 

 

10,799

 

 

 

9,978

 

 

 

10,210

 

 

 

9,924

 

 

Depreciation and amortization

 

 

13,762

 

 

 

13,624

 

 

 

13,754

 

 

 

14,208

 

 

 

14,371

 

 

 

 

26,114

 

 

 

25,056

 

 

 

24,900

 

 

 

25,426

 

 

 

25,355

 

 

Gains (Losses) on Asset Dispositions and Impairments, Net

 

 

3,599

 

 

 

1,017

 

 

 

(1,783

)

 

 

25

 

 

 

2,139

 

 

Operating Income (Loss)

 

 

185

 

 

 

(10,451

)

 

 

(10,898

)

 

 

(15,529

)

 

 

(17,121

)

 

Other Income (Expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

460

 

 

 

688

 

 

 

(123

)

 

 

190

 

 

 

29

 

 

Interest expense

 

 

(8,788

)

 

 

(8,456

)

 

 

(7,634

)

 

 

(6,989

)

 

 

(6,627

)

 

Derivative gains (losses), net

 

 

 

 

 

 

 

 

1

 

 

 

33

 

 

 

(34

)

 

Gain on debt extinguishment

 

 

 

 

 

10,429

 

 

 

 

 

 

 

 

 

 

 

Foreign currency (losses) gains, net

 

 

(825

)

 

 

(2,646

)

 

 

2,314

 

 

 

1,170

 

 

 

821

 

 

Other, net

 

 

 

 

 

137

 

 

 

659

 

 

 

(41

)

 

 

 

 

 

 

(9,153

)

 

 

152

 

 

 

(4,783

)

 

 

(5,637

)

 

 

(5,811

)

 

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

 

 

(8,968

)

 

 

(10,299

)

 

 

(15,681

)

 

 

(21,166

)

 

 

(22,932

)

 

Income Tax Expense (Benefit)

 

 

1,157

 

 

 

4,219

 

 

 

8,418

 

 

 

(1,634

)

 

 

(2,421

)

 

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

 

 

(10,125

)

 

 

(14,518

)

 

 

(24,099

)

 

 

(19,532

)

 

 

(20,511

)

 

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

 

 

536

 

 

 

1,176

 

 

 

(254

)

 

 

415

 

 

 

5,674

 

 

Net Loss

 

 

(9,589

)

 

 

(13,342

)

 

 

(24,353

)

 

 

(19,117

)

 

 

(14,837

)

 

Net (Loss) Income Attributable to Noncontrolling Interests in Subsidiaries

 

 

 

 

 

 

 

 

(2

)

 

 

3

 

 

 

 

 

Net Loss Attributable to SEACOR Marine Holdings Inc.

 

$

(9,589

)

 

$

(13,342

)

 

$

(24,351

)

 

$

(19,120

)

 

$

(14,837

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Loss Per Share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.36

)

 

$

(0.50

)

 

$

(0.91

)

 

$

(0.72

)

 

$

(0.56

)

 

Diluted

 

$

(0.36

)

 

$

(0.50

)

 

$

(0.91

)

 

$

(0.72

)

 

$

(0.56

)

 

Weighted Average Common Stock and Warrants Outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

26,822

 

 

 

26,728

 

 

 

26,728

 

 

 

26,665

 

 

 

26,379

 

 

Diluted

 

 

26,822

 

 

 

26,728

 

 

 

26,728

 

 

 

26,665

 

 

 

26,379

 

 

Common Shares and Warrants Outstanding at Period End

 

 

28,428

 

 

 

28,142

 

 

 

28,142

 

 

 

28,145

 

 

 

28,083

 

 

 

 

4


SEACOR MARINE HOLDINGS INC.

UNAUDITED DIRECT VESSEL PROFIT (“DVP”) BY SEGMENT

(in thousands, except statistics)

 

 

Three Months Ended

 

 

 

 

Mar. 31, 2023

 

 

Dec. 31, 2022

 

 

Sep. 30, 2022

 

 

Jun. 30, 2022

 

 

Mar. 31, 2022

 

 

United States, primarily Gulf of Mexico

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Time Charter Statistics:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average rates per day worked

 

$

18,359

 

 

$

22,563

 

 

$

21,551

 

 

$

17,792

 

 

$

15,595

 

 

Fleet utilization

 

 

35

%

 

 

57

%

 

 

58

%

 

 

43

%

 

 

38

%

 

Fleet available days

 

 

1,015

 

 

 

1,288

 

 

 

1,363

 

 

 

1,277

 

 

 

1,314

 

 

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

 

 

112

 

 

 

108

 

 

 

199

 

 

 

284

 

 

 

205

 

 

Out-of-service days for cold-stacked status

 

 

211

 

 

 

242

 

 

 

259

 

 

 

313

 

 

 

404

 

 

Operating Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Time charter

 

$

6,564

 

 

$

16,574

 

 

$

17,075

 

 

$

9,759

 

 

$

7,864

 

 

Other marine services

 

 

3,842

 

 

 

2,916

 

 

 

2,161

 

 

 

2,399

 

 

 

2,052

 

 

 

 

10,406

 

 

 

19,490

 

 

 

19,236

 

 

 

12,158

 

 

 

9,916

 

 

Direct Costs and Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Personnel

 

 

6,535

 

 

 

7,262

 

 

 

7,243

 

 

 

5,773

 

 

 

4,923

 

 

Repairs and maintenance

 

 

1,194

 

 

 

2,666

 

 

 

2,002

 

 

 

1,280

 

 

 

1,101

 

 

Drydocking

 

 

43

 

 

 

472

 

 

 

1,549

 

 

 

4,090

 

 

 

2,867

 

 

Insurance and loss reserves

 

 

1,041

 

 

 

2,022

 

 

 

1,382

 

 

 

1,198

 

 

 

229

 

 

Fuel, lubes and supplies

 

 

783

 

 

 

746

 

 

 

1,143

 

 

 

794

 

 

 

662

 

 

Other

 

 

223

 

 

 

416

 

 

 

314

 

 

 

281

 

 

 

224

 

 

 

 

9,819

 

 

 

13,584

 

 

 

13,633

 

 

 

13,416

 

 

 

10,006

 

 

Direct Vessel Profit (Loss) (1)

 

$

587

 

 

$

5,906

 

 

$

5,603

 

 

$

(1,258

)

 

$

(90

)

 

Other Costs and Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease expense

 

$

136

 

 

$

138

 

 

$

278

 

 

$

295

 

 

$

287

 

 

Depreciation and amortization

 

 

3,535

 

 

 

3,912

 

 

 

4,332

 

 

 

4,562

 

 

 

4,638

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Africa and Europe

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Time Charter Statistics:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average rates per day worked

 

$

12,835

 

 

$

11,241

 

 

$

11,813

 

 

$

11,279

 

 

$

10,006

 

 

Fleet utilization

 

 

87

%

 

 

82

%

 

 

91

%

 

 

85

%

 

 

82

%

 

Fleet available days

 

 

1,710

 

 

 

1,656

 

 

 

1,629

 

 

 

1,567

 

 

 

1,499

 

 

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

 

 

118

 

 

 

125

 

 

 

37

 

 

 

58

 

 

 

163

 

 

Operating Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Time charter

 

$

18,996

 

 

$

15,299

 

 

$

17,551

 

 

$

14,930

 

 

$

12,280

 

 

Other marine services

 

 

(834

)

 

 

(679

)

 

 

60

 

 

 

1,072

 

 

 

(616

)

 

 

 

18,162

 

 

 

14,620

 

 

 

17,611

 

 

 

16,002

 

 

 

11,664

 

 

Direct Costs and Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Personnel

 

 

4,505

 

 

 

4,680

 

 

 

4,694

 

 

 

3,526

 

 

 

3,536

 

 

Repairs and maintenance

 

 

2,553

 

 

 

2,902

 

 

 

2,110

 

 

 

2,638

 

 

 

1,579

 

 

Drydocking

 

 

1,184

 

 

 

678

 

 

 

383

 

 

 

134

 

 

 

1,144

 

 

Insurance and loss reserves

 

 

318

 

 

 

366