SEC Filing | SEACOR Marine Holdings Inc.

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10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark One)


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2023 or


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 1-37966

SEACOR Marine Holdings Inc.

(Exact Name of Registrant as Specified in Its Charter)


Delaware		47-2564547
(State or Other Jurisdiction of Incorporation or Organization)		(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

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

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☐	Accelerated filer	☒	Non-accelerated filer	☐	Smaller reporting company	☒	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. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The total number of shares of common stock, par value $.01 per share (“Common Stock”), outstanding as of July 28, 2023 was 27,159,485. The registrant has no other class of common stock outstanding.

SEACOR MARINE HOLDINGS INC.

Table of Contents


Part I.	Financial Information		1

	Item 1.	Financial Statements (Unaudited)	1

		Condensed Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022	1
		Condensed Consolidated Statements of Income (Loss) for the Three and Six Months Ended June 30, 2023 and 2022	2

		Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three and Six Months Ended June 30, 2023 and 2022	3

		Condensed Consolidated Statements of Changes in Equity for the Three and Six Months Ended June 30, 2023 and 2022	4

		Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2023 and 2022	6

		Notes to Condensed Consolidated Financial Statements	7

	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	23

	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	45

	Item 4.	Controls and Procedures	45

Part II.	Other Information		46

	Item 1.	Legal Proceedings	46

	Item 1A.	Risk Factors	46

	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	46

	Item 3.	Default Upon Senior Securities	46

	Item 4.	Mine Safety Disclosures	46

	Item 5.	Other Information	46

	Item 6.	Exhibits	47

PART I—FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

SEACOR MARINE HOLDINGS INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)


	June 30, 2023			December 31, 2022
ASSETS
Current Assets:
Cash and cash equivalents	$	40,750		$	39,963
Restricted cash		2,796			3,082
Receivables:
Trade, net of allowance for credit loss accounts of $4,309 and $1,650 as of June 30, 2023 and December 31, 2022, respectively		60,022			54,388
Other		12,295			7,638
Note receivable		5,000			15,000
Tax receivable		445			578
Inventories		1,653			2,123
Prepaid expenses and other		3,112			3,054
Assets held for sale		—			6,750
Total current assets		126,073			132,576
Property and Equipment:
Historical cost		966,338			967,683
Accumulated depreciation		(334,678	)		(310,778	)
		631,660			656,905
Construction in progress		8,876			8,111
Net property and equipment		640,536			665,016
Right-of-use asset - operating leases		5,703			6,206
Right-of-use asset - finance leases		6,495			6,813
Investments, at equity, and advances to 50% or less owned companies		3,253			3,024
Other assets		2,139			1,995
Total assets	$	784,199		$	815,630
LIABILITIES AND EQUITY
Current Liabilities:
Current portion of operating lease liabilities	$	1,792		$	2,358
Current portion of finance lease liabilities		611			468
Current portion of long-term debt:
Recourse		63,959			61,512
Accounts payable and accrued expenses		39,012			37,954
Due to SEACOR Holdings		264			264
Accrued wages and benefits		2,449			4,361
Accrued interest		1,511			2,305
Deferred revenue and unearned revenue		3,643			2,333
Accrued capital, repair, and maintenance expenditures		4,370			2,748
Accrued insurance deductibles and premiums		2,517			2,428
Accrued professional fees		1,124			1,114
Other current liabilities		5,413			3,580
Total current liabilities		126,665			121,425
Long-term operating lease liabilities		4,030			4,739
Long-term finance lease liabilities		6,462			6,781
Long-term Debt:
Recourse		238,474			254,653
Non-recourse		5,486			5,466
Deferred income taxes		34,038			40,779
Deferred gains and other liabilities		2,189			2,641
Total liabilities		417,344			436,484
Equity:
SEACOR Marine Holdings Inc. stockholders’ equity:
Common stock, $.01 par value, 60,000,000 shares authorized; 27,640,483 and 26,950,799 shares issued as of June 30, 2023 and December 31, 2022, respectively		280			272
Additional paid-in capital		469,618			466,669
Accumulated deficit		(107,271	)		(93,111	)
Shares held in treasury of 480,998 and 248,638 as of June 30, 2023 and December 31, 2022, respectively, at cost		(4,221	)		(1,852	)
Accumulated other comprehensive income, net of tax		8,128			6,847
		366,534			378,825
Noncontrolling interests in subsidiaries		321			321
Total equity		366,855			379,146
Total liabilities and equity	$	784,199		$	815,630

The accompanying notes are an integral part of these condensed consolidated financial statements and should be read in conjunction herewith.

SEACOR MARINE HOLDINGS INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)

(in thousands, except share data)


	Three Months Ended June 30,						Six Months Ended June 30,
	2023			2022			2023			2022
Operating Revenues	$	66,891		$	54,017		$	126,864		$	99,608
Costs and Expenses:
Operating		36,302			44,145			73,575			83,641
Administrative and general		13,704			10,210			25,336			20,134
Lease expense		698			1,008			1,418			2,068
Depreciation and amortization		13,575			14,208			27,337			28,579
		64,279			69,571			127,666			134,422
Gains on Asset Dispositions and Impairments, Net		265			25			3,864			2,164
Operating Income (Loss)		2,877			(15,529	)		3,062			(32,650	)
Other Income (Expense):
Interest income		422			190			882			219
Interest expense		(8,736	)		(6,989	)		(17,524	)		(13,616	)
Derivative gains (losses), net		—			33			—			(1	)
Foreign currency (losses) gains, net		(603	)		1,170			(1,428	)		1,991
Other, net		—			(41	)		—			(41	)
		(8,917	)		(5,637	)		(18,070	)		(11,448	)
Loss Before Income Tax (Benefit) Expense and Equity in Earnings of 50% or Less Owned Companies		(6,040	)		(21,166	)		(15,008	)		(44,098	)
Income Tax (Benefit) Expense		(1,096	)		(1,634	)		61			(4,055	)
Loss Before Equity in Earnings of 50% or Less Owned Companies		(4,944	)		(19,532	)		(15,069	)		(40,043	)
Equity in Earnings of 50% or Less Owned Companies		373			415			909			6,089
Net Loss		(4,571	)		(19,117	)		(14,160	)		(33,954	)
Net Income attributable to Noncontrolling Interests in Subsidiaries		—			3			—			3
Net Loss attributable to SEACOR Marine Holdings Inc.	$	(4,571	)	$	(19,120	)	$	(14,160	)	$	(33,957	)

Net Loss Per Share:
Basic	$	(0.17	)	$	(0.72	)	$	(0.52	)	$	(1.28	)
Diluted		(0.17	)		(0.72	)		(0.52	)		(1.28	)
Weighted Average Common Stock and Warrants Outstanding:
Basic		27,137,873			26,664,745			26,981,004			26,522,808
Diluted		27,137,873			26,664,745			26,981,004			26,522,808

The accompanying notes are an integral part of these condensed consolidated financial statements and should be read in conjunction herewith.

SEACOR MARINE HOLDINGS INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(in thousands)


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2023			2022			2023			2022
Net Loss	$	(4,571	)	$	(19,117	)	$	(14,160	)	$	(33,954	)
Other Comprehensive Income (Loss):
Foreign currency translation gains (losses)		932			(3,849	)		1,600			(4,563	)
Derivative gains on cash flow hedges		39			351			53			1,156
Reclassification of derivative (losses) gains on cash flow hedges to interest expense		(206	)		267			(372	)		637
Reclassification of derivative gains on cash flow hedges to equity in earnings of 50% or less owned companies		—			338			—			675
		765			(2,893	)		1,281			(2,095	)
Income Tax Expense		—			—			—			—
		765			(2,893	)		1,281			(2,095	)
Comprehensive Loss		(3,806	)		(22,010	)		(12,879	)		(36,049	)
Comprehensive Income Attributable to Noncontrolling Interests in Subsidiaries		—			3			—			3
Comprehensive Loss Attributable to SEACOR Marine Holdings Inc.	$	(3,806	)	$	(22,013	)	$	(12,879	)	$	(36,052	)

The accompanying notes are an integral part of these condensed consolidated financial statements and should be read in conjunction herewith.

SEACOR MARINE HOLDINGS INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(in thousands, except share data)


	Shares of Common Stock Outstanding		Common Stock		Additional Paid-In Capital		Shares Held in Treasury		Treasury Stock			Accumulated Deficit			Accumulated Other Comprehensive Income		Non- Controlling Interests In Subsidiaries	Total Equity
For the Six Months Ended June 30, 2023
December 31, 2022		26,702,161	$	272	$	466,669		248,638	$	(1,852	)	$	(93,111	)	$	6,847