Press Releases

SEACOR Marine Announces Results for Its Third Quarter and Nine Months Ended September 30, 2017

HOUMA, La.--(BUSINESS WIRE)-- SEACOR Marine Holdings Inc. (NYSE:SMHI) (the “Company”), a leading provider of global marine and support transportation services to offshore oil and gas exploration, development and production facilities worldwide, today announced results for its third quarter and nine months ended September 30, 2017.

For the third quarter and nine months ended September 30, 2017, net loss attributable to SEACOR Marine Holdings Inc. was $20.5 million ($1.25 per diluted share) and $61.9 million ($3.51 per diluted share), respectively.

For the third quarter and nine months ended September 30, 2016, net loss attributable to SEACOR Marine Holdings Inc. was $27.9 million ($1.58 per diluted share) and $70.5 million ($3.99 per diluted share), respectively. Net loss attributable to SEACOR Marine Holdings Inc. for the preceding quarter ended June 30, 2017 was $34.0 million ($1.93 per diluted share).

Results for the third quarter ended September 30, 2017 included the following:

  • Improved direct vessel profit (“DVP”) generated by operating regions of $9.4 million compared with $1.5 million in the preceding quarter primarily due to higher operating revenues.
  • A reduction in administrative and general expenses to $10.3 million compared with $21.7 million in the preceding quarter primarily due to $10.1 million of one-time costs incurred in the preceding quarter associated with the Company’s spin-off from SEACOR Holdings Inc. (the Company’s former parent company, “SEACOR Holdings”) on June 1, 2017.
  • Impairment charges of $9.9 million primarily associated with fully writing down two in-service specialty vessels to scrap value.
  • An impairment charge of $8.3 million, net of tax, related to the Company’s investment in a jack-up drilling rig owned by Dynamic Offshore Drilling.

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

“Results for the quarter improved and we remain optimistic for our future prospects. Higher oil and gas prices are generating positive cash flow for our customers and should build a foundation for an eventual recovery in offshore activity.

Our fleet is focused on passenger transport via high speed, aluminum hull fast support vessels and on platform and well maintenance services utilizing liftboats. On a fleet-wide basis, we are currently transporting over 30,000 passengers per month in offshore markets worldwide. Our customers’ focus on cost control continues to drive demand for our vessels as a cost effective alternative to helicopters.

Our liftboat results reflect an improved summer season in the U.S. Gulf of Mexico and include the commencement of long-term charters for two liftboats, one in Mexico and one in the Middle East. The long-term charters should buffer our results as we enter the winter months in the U.S. Gulf of Mexico, a period of seasonally lower activity, especially for liftboats.

The quarter included costs to mobilize and re-activate vessels to position our fleet to capture opportunities. Consistent with our financial discipline, we fully expense these costs as incurred instead of amortizing them.

We continue to actively manage our assets by pruning our fleet of vessels which we do not believe will be competitive in our markets. Optimizing the size and mix of our fleet, operating expenses and shore side support infrastructure within a highly variable market is a balance we continue to manage.

The market for offshore vessel services remains challenging. Because of the diversity and versatility of our fleet, our active fleet management, our financial discipline and our strong liquidity position, we believe that we are well positioned.”

A comparison of results for the third quarter ended September 30, 2017 with the preceding quarter ended June 30, 2017 is included below.

Operating Revenues. Time charter revenues were $6.5 million higher compared with the preceding quarter. On a total fleet basis, time charter revenues increased by $2.8 million from improved utilization, $2.7 million from net fleet additions, $0.9 million due to the repositioning of vessels between geographic regions, and $0.5 million due to favorable changes in currency exchange rates. Time charter revenues decreased by $0.4 million due to a reduction in average rates per day worked. Other marine services revenues were $1.0 million lower compared with the preceding quarter.

During the six months ended September 30, 2017 (the period over which the comparisons in this release are presented), the Company acquired seven fast support vessels (including Sea-Cat Crewzers’ four high speed catamarans resulting from the Company’s acquisition in the preceding quarter of its partners’ 50% interests), acquired one supply vessel and sold one supply vessel. In addition, the Company reactivated nine vessels from cold-stacked status, cold-stacked six previously active vessels and removed from service two previously cold-stacked vessels.

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 43% to 49%, and average rates per day worked increased by 2% from $8,431 to $8,565. Days available for charter were 2% higher primarily due to net fleet additions and more operating days during the quarter. This release includes a table presenting time charter statistics by vessel class.

Direct Vessel Profit (“DVP”) by Region. DVP generated by the Company’s operating regions was $9.4 million compared with $1.5 million in the preceding quarter, an improvement of $7.9 million. In addition to improved operating revenues of $5.5 million, operating expenses (excluding leased-in equipment) were $2.4 million lower compared with the preceding quarter. As compared with the preceding quarter, third quarter results included higher personnel costs of $0.6 million associated with net fleet additions, higher repairs, maintenance and drydocking costs of $1.3 million associated with the net reactivation of cold-stacked vessels and lower insurance and loss reserve costs of $0.7 million. In addition, the preceding quarter results included the replacement of main engines in two fast support vessels for $4.0 million. Results by region were as follows:

United States, primarily Gulf of Mexico. Direct vessel loss was $2.1 million compared with $1.1 million in the preceding quarter, a $1.0 million decline. On a total fleet basis, including cold-stacked vessels, utilization of the fleet increased from 13% to 16%, and average rates per day worked decreased by 25% from $9,619 to $7,212. Days available for charter decreased by 5% primarily due to the repositioning of vessels between geographic regions. Operating expenses (excluding leased-in equipment) were $0.6 million higher compared with the preceding quarter primarily due to higher personnel costs of $0.4 million associated with fleet additions, higher repairs, maintenance and drydocking costs of $1.1 million associated with the net reactivation of cold-stacked vessels and $0.3 million associated with the active fleet, lower insurance and loss reserve costs of $0.6 million and lower running costs of $0.7 million associated with the repositioning of vessels between geographic regions. As of September 30, 2017, the Company had 31 of 42 owned and leased-in vessels cold-stacked in the U.S. (nine anchor handling towing supply vessels, 12 fast support vessels, nine liftboats and one specialty vessel) compared with 32 of 42 vessels as of June 30, 2017. As of September 30, 2017, the Company had one anchor handling towing supply vessel, one fast support vessel and one supply vessel retired and removed from service in this region.

Africa, primarily West Africa. DVP was $2.6 million compared with a direct vessel loss of $1.3 million in the preceding quarter, a $3.9 million improvement. Time charter revenues were $1.9 million higher primarily due to fleet additions of $1.6 million. On a total fleet basis, including cold-stacked vessels, utilization of the fleet increased from 67% to 71%, and average rates per day worked increased by 3% from $10,348 to $10,611. Days available for charter increased by 14% primarily due to fleet additions. Operating expenses (excluding leased-in equipment) were $2.5 million lower compared with the preceding quarter primarily due to the replacement of main engines in one fast support vessel during the preceding quarter for $2.0 million. As of September 30, 2017, the Company had one of 14 owned and leased-in vessels cold-stacked in Africa (one specialty vessel) compared with one of 14 vessels as of June 30, 2017. As of September 30, 2017, the Company had one fast support vessel retired and removed from service in this region.

Middle East and Asia. Direct vessel loss was $0.5 million compared with $3.3 million in the preceding quarter, a $2.8 million improvement. Time charter revenues were $2.1 million higher primarily due to increased utilization of $1.6 million. On a total fleet basis, including cold-stacked vessels, utilization of the fleet increased from 55% to 61%, and average rates per day worked increased by 8% from $6,580 to $7,138. Days available for charter increased by 6% primarily due to fleet additions and the repositioning of vessels between geographic regions. Operating expenses (excluding leased-in equipment) were $1.2 million lower compared with the preceding quarter primarily due to the replacement of main engines in one fast support vessel during the preceding quarter for $2.0 million. As of September 30, 2017, the Company had one of 25 owned and leased-in vessels cold-stacked in the Middle East and Asia (one windfarm utility vessel) compared with three of 23 vessels as of June 30, 2017.

Brazil, Mexico, Central and South America. DVP was $2.2 million compared with $1.0 million in the preceding quarter, a $1.2 million improvement. Time charter revenues were $1.4 million higher due to the repositioning of vessels between geographic regions. On a total fleet basis, including cold-stacked vessels, utilization of the fleet increased from 0% to 49%, and average rates per day worked increased from $0 to $16,060. Days available for charter increased by 75% primarily due to the repositioning of vessels between geographic regions. Operating expenses (excluding leased-in equipment) were $0.3 million higher compared with the preceding quarter due to the repositioning of vessels between geographic regions. As of September 30, 2017, the Company had one of four owned and leased-in vessels cold-stacked in Brazil, Mexico, Central and South America (one fast support vessel) compared with one of four vessels as of June 30, 2017. As of September 30, 2017, the Company had one supply vessel retired and removed from service in this region.

Europe, primarily North Sea. DVP was $7.2 million compared with $6.2 million in the preceding quarter, a $1.0 million improvement. Time charter revenues were $1.3 million higher primarily as a result of improved utilization of $0.7 million and favorable changes in currency exchange rates of $0.5 million. For the standby safety fleet, utilization increased from 80% to 84%, and average rates per day worked increased from $8,457 to $8,650. For the windfarm utility vessels, utilization decreased from 95% to 94%, and average rates per day worked increased from $2,124 to $2,221.

Administrative and general. Administrative and general expenses were $11.4 million lower compared with the preceding quarter primarily due to one-time costs associated with the Company’s spin-off from SEACOR Holdings on June 1, 2017. During the preceding quarter, the Company incurred additional expenses of $6.7 million on the accelerated vesting of share awards previously granted to Company personnel by SEACOR Holdings and an additional expense of $3.4 million resulting from non-deductible spin-off related expenses reimbursed to SEACOR Holdings.

Asset Dispositions and Impairments. During the third quarter, the Company recognized impairment charges of $9.9 million associated with one fast support vessel removed from service and two specialty vessels. In addition, the Company sold two offshore support vessels previously retired and removed from service and other equipment for net proceeds of $0.2 million and gains of $0.2 million.

During the preceding quarter, the Company recognized impairment charges of $5.7 million primarily associated with one leased-in supply vessel removed from service as it is not expected to be marketed prior to the expiration of its lease. In addition, the Company sold one supply vessel, two offshore support vessels previously retired and removed from service and other equipment for net proceeds of $1.3 million and losses of $0.6 million.

Derivative gains (losses). Net derivative gains during the third quarter were due to a $13.0 million reduction in the fair value of the Company’s conversion option liability on its 3.75% Convertible Senior Notes. The reduction in the conversion option liability was primarily the result of declines in the Company’s share price and estimated credit spread.

Income tax benefit. The Company’s effective income tax rate was 27.9% in the third quarter and 26.6% in the preceding quarter primarily due to losses of foreign subsidiaries not benefited and non-deductible expenses associated with the Company’s participation in SEACOR Holdings’ share award plans. In addition, the preceding quarter included non-deductible spin-off related expenses reimbursed to SEACOR Holdings.

Equity in earnings (losses) of 50% or less owned companies. Equity losses were $7.3 million compared with equity earnings of $1.6 million in the preceding quarter primarily due to an impairment charge of $8.3 million, net of tax, related to the Company’s investment in Dynamic Offshore Drilling. The Company recognized an other than temporary decline in the fair value of its equity investment upon Dynamic Offshore’s unsuccessful bid on a charter renewal for its jack-up drilling rig with a customer during the third quarter. Its existing charter terminates in February 2018.

Capital Commitments. As of September 30, 2017, the Company had unfunded capital commitments of $68.9 million that included four 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):

       
Remainder of 2017 5,195
2018 40,932
2019 21,106
2020 1,645
$ 68,878
 

Liquidity and Debt. As of September 30, 2017, the Company’s balances of cash, cash equivalents, restricted cash, and construction reserve funds totaled $177.4 million and its total outstanding debt was $316.7 million (net of $34.4 million in discount and issue costs).

SEACOR Marine provides global marine and support transportation services to offshore oil and gas exploration, development and production facilities worldwide. SEACOR Marine currently operates 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; provides 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.

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, including as a result of the recent vote in the U.K. to leave 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 to remediate the material weaknesses the Company has identified in its internal controls over financial reporting, 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 “Risk Factors” included in the Information Statement filed as Exhibit 99.1 to Amendment No. 3 to the Company’s Registration Statement on Form 10 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. Forward-looking statements speak only as of the date of the document in which they are made. The Company disclaims any obligation or undertaking to provide any updates or revisions to any forward-looking statement to reflect any change in the Company’s expectations or any change in events, conditions or circumstances on which the forward-looking statement is based, except as required by law. It is advisable, however, to consult any further disclosures the Company makes on related subjects in its filings with the Securities and Exchange Commission, including Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K (if any). These statements constitute the Company’s cautionary statements under the Private Securities Litigation Reform Act of 1995.

Please visit SEACOR Marine’s website at www.seacormarine.com for additional information.

For all other requests, contact Erica Bartsch at (212) 446-1875 or ebartsch@seacormarine.com.

 

SEACOR MARINE HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF LOSS
(in thousands, except share data, unaudited)

 
    Three Months Ended   Nine Months Ended
September 30, September 30,
2017   2016 2017   2016
Operating Revenues $ 47,813   $ 54,125   $ 124,440   $ 171,275  
Costs and Expenses:
Operating 41,258 41,159 119,119 134,254
Administrative and general 10,318 10,588 43,849 34,915
Depreciation and amortization 15,622   14,213   42,758   44,305  
67,198   65,960   205,726   213,474  
Losses on Asset Dispositions and Impairments, Net (9,744 ) (29,233 ) (11,243 ) (49,970 )
Operating Loss (29,129 ) (41,068 ) (92,529 ) (92,169 )
Other Income (Expense):
Interest income 354 973 1,479 3,371
Interest expense (4,295 ) (2,512 ) (12,023 ) (7,455 )
SEACOR Holdings management fees (1,925 ) (3,208 ) (5,775 )
SEACOR Holdings guarantee fees (21 ) (80 ) (172 ) (237 )
Marketable security gains (losses), net (698 ) 1,619 10,931 (4,458 )
Derivative gains, net 13,022 16 12,720 3,077
Foreign currency losses, net (106 ) (1,084 ) (1,389 ) (3,463 )
Other, net   1   (1 ) 266  
8,256   (2,992 ) 8,337   (14,674 )
Loss Before Income Tax Benefit and Equity in Earnings (Losses) of 50% or Less Owned Companies (20,873 ) (44,060 ) (84,192 ) (106,843 )
Income Tax Benefit (5,823 ) (15,263 ) (23,045 ) (35,831 )
Loss Before Equity in Earnings (Losses) of 50% or Less Owned Companies (15,050 ) (28,797 ) (61,147 ) (71,012 )
Equity in Earnings (Losses) of 50% or Less Owned Companies, Net of Tax (7,306 ) 790   (5,297 ) (364 )
Net Loss (22,356 ) (28,007 ) (66,444 ) (71,376 )
Net Loss attributable to Noncontrolling Interests in Subsidiaries (1,881 ) (74 ) (4,582 ) (904 )
Net Loss attributable to SEACOR Marine Holdings Inc. $ (20,475 ) $ (27,933 ) $ (61,862 ) $ (70,472 )
 
Basic Loss Per Common Share of SEACOR Marine Holdings Inc. $ (1.17 ) $ (1.58 ) $ (3.51 ) $ (3.99 )
Diluted Loss Per Common Share of SEACOR Marine Holdings Inc. $ (1.25 ) $ (1.58 ) $ (3.51 ) $ (3.99 )
 
Weighted Average Common Shares Outstanding:
Basic 17,550,663 17,671,356 17,617,420 17,671,356
Diluted 21,621,163 17,671,356 17,617,420 17,671,356
 
 

SEACOR MARINE HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF LOSS
(in thousands, except per share data, unaudited)

 
  Three Months Ended

Sep. 30,
2017

 

Jun. 30,
2017

 

Mar. 31,
2017

 

Dec. 31,
2016

 

Sep. 30,
2016

Operating Revenues:
Time charter $ 45,267 $ 38,803 $ 30,730 $ 38,047 $ 47,473
Bareboat charter 1,168 1,156 1,143 1,169 1,967
Other marine services 1,378   2,364   2,431   5,145   4,685  
47,813   42,323   34,304   44,361   54,125  
Costs and Expenses:
Operating, excluding leased-in equipment 38,422 40,792 29,788 28,459 36,628
Operating, leased-in equipment 2,836 3,690 3,591 4,212 4,531
Administrative and general 10,318 21,705 11,826 14,393 10,588
Depreciation and amortization 15,622   14,633   12,503   13,764   14,213  
67,198   80,820   57,708   60,828   65,960  
Gains (Losses) on Asset Dispositions and Impairments, Net (9,744 ) (6,318 ) 4,819   (66,252 ) (29,233 )
Operating Loss (29,129 ) (44,815 ) (18,585 ) (82,719 ) (41,068 )
Other Income (Expense):
Interest income 354 275 850 1,087 973
Interest expense (4,295 ) (4,546 ) (3,182 ) (2,553 ) (2,512 )
SEACOR Holdings management fees (1,283 ) (1,925 ) (1,925 ) (1,925 )
SEACOR Holdings guarantee fees (21 ) (75 ) (76 ) (78 ) (80 )
Marketable security gains (losses), net (698 ) (109 ) 11,738 4,413 1,619
Derivative gains (losses), net 13,022 (213 ) (89 ) (82 ) 16
Foreign currency gains (losses), net (106 ) (1,094 ) (189 ) 151 (1,084 )
Other, net     (1 ) (1,756 ) 1  
8,256   (7,045 ) 7,126   (743 ) (2,992 )
Loss Before Income Tax Benefit and Equity in Earnings (Losses) of 50% or Less Owned Companies (20,873 ) (51,860 ) (11,459 ) (83,462 ) (44,060 )
Income Tax Benefit (5,823 ) (13,800 ) (3,422 ) (27,638 ) (15,263 )
Loss Before Equity in Earnings (Losses) of 50% or Less Owned Companies (15,050 ) (38,060 ) (8,037 ) (55,824 ) (28,797 )
Equity in Earnings (Losses) of 50% or Less Owned Companies, Net of Tax (7,306 ) 1,571   438   (5,950 ) 790  
Net Loss (22,356 ) (36,489 ) (7,599 ) (61,774 ) (28,007 )
Net Loss attributable to Noncontrolling Interests in Subsidiaries (1,881 ) (2,497 ) (204 ) (199 ) (74 )
Net Loss attributable to SEACOR Marine Holdings Inc. $ (20,475 ) $ (33,992 ) $ (7,395 ) $ (61,575 ) $ (27,933 )
 
Basic Loss Per Common Share of SEACOR Marine Holdings Inc. $ (1.17 ) $ (1.93 ) $ (0.42 ) $ (3.48 ) $ (1.58 )
Diluted Loss Per Common Share of SEACOR Marine Holdings Inc. $ (1.25 ) $ (1.93 ) $ (0.42 ) $ (3.48 ) $ (1.58 )
 
Weighted Average Common Shares of Outstanding:
Basic 17,551 17,632 17,671 17,671 17,671
Diluted 21,621 17,632 17,671 17,671 17,671
Common Shares Outstanding at Period End 17,671 17,671 17,671 17,671 17,671
 
 
 

SEACOR MARINE HOLDINGS INC.
TIME CHARTER STATISTICS
(unaudited)

 
    Three Months Ended

Sep. 30,
2017

 

Jun. 30,
2017

 

Mar. 31,
2017

 

Dec. 31,
2016

 

Sep. 30,
2016

Rates Per Day Worked:
Anchor handling towing supply $ 9,766 $ 10,774 $ 13,341 $ 13,686 $ 16,469
Fast support 7,999 8,086 7,417 7,875 7,848
Supply 6,279 6,028 11,707 6,298 5,935
Standby safety 8,650 8,457 8,131 8,284 8,904
Specialty 12,000 37,024 30,593
Liftboats 11,899 10,315 9,782 13,486 16,822
Overall Average Rates Per Day Worked

(excluding wind farm utility)

8,565 8,431 8,272 9,093 10,089
Wind farm utility 2,220 2,124 2,005 2,104 2,260
Overall Average Rates Per Day Worked 6,006 5,649 5,726 6,308 6,834
 
Utilization:
Anchor handling towing supply 25 % 24 % 15 % 20 % 27 %
Fast support 49 % 43 % 44 % 47 % 62 %
Supply 65 % 48 % 20 % 19 % 31 %
Standby safety 84 % 80 % 80 % 81 % 78 %
Specialty % 5 % % 23 % 58 %
Liftboats 28 % 16 % 1 % 1 % 8 %
Overall Fleet Utilization (excluding wind farm utility) 49 % 43 % 38 % 39 % 47 %
Wind farm utility 89 % 90 % 65 % 71 % 86 %
Overall Fleet Utilization 60 % 56 % 46 % 47 % 58 %
 
Available Days:
Anchor handling towing supply 1,288 1,274 1,260 1,564 1,483
Fast support 3,885 3,684 3,212 3,312 2,389
Supply 507 580 630 953 1,109
Standby safety 1,840 1,820 1,800 1,840 1,989
Specialty 276 273 270 337 276
Liftboats 1,380   1,365   1,265   1,380   1,380  
Overall Fleet Available Days

(excluding wind farm utility)

9,176 8,996 8,437 9,386 8,626
Wind farm utility 3,404   3,367   3,330   3,404   3,345  
Overall Fleet Available Days 12,580   12,363   11,767   12,790   11,971  
 
 

SEACOR MARINE HOLDINGS INC.
DIRECT VESSEL PROFIT (“DVP”) BY REGION
(in thousands, except for statistics, unaudited)

 
    Three Months Ended

Sep. 30,
2017

 

Jun. 30,
2017

 

Mar. 31,
2017

 

Dec. 31,
2016

 

Sep. 30,
2016

United States, primarily Gulf of Mexico
Operating revenues:
Time charter $ 4,587 $ 4,889 $ 2,995 $ 2,694 $ 6,440
Other marine services 1,116   1,198   826   906   1,083  
5,703   6,087   3,821   3,600   7,523  
 
Personnel 4,455 4,183 3,130 3,310 4,865
Repairs and maintenance 1,289 937 737 551 768
Drydocking 1,109 310 573 19 (8 )
Insurance and loss reserves 598 1,205 805 484 1,200
Fuel, lubes and supplies 249 545 310 112 533
Other 123   51   72   (36 ) 118  
7,823   7,231   5,627   4,440   7,476  
Direct Vessel Profit (Loss) $ (2,120 ) $ (1,144 ) $ (1,806 ) $ (840 ) $ 47  
 
Leased-in equipment (included in operating costs and expenses) $ 1,870   $ 2,205   $ 2,211   $ 2,215   $ 2,040  
Time Charter Statistics:
Overall average rates per day worked $ 7,212 $ 9,619 $ 10,133 $ 9,316 $ 13,810
Overall fleet utilization 16 % 13 % 7 % 7 % 14 %
Overall fleet available days 3,859 4,063 3,998 4,169 3,264
Out-of-service days for repairs, maintenance and drydockings 338 221 159 32 8
Out-of-service days for cold-stacked status 2,746 3,070 3,456 3,794 2,466
 
Africa, primarily West Africa
Operating revenues:
Time charter $ 9,700 $ 7,786 $ 5,847 $ 8,072 $ 8,593
Other marine services (310 ) 215   192   582   238  
9,390   8,001   6,039   8,654   8,831  
Direct operating expenses:
Personnel 3,588 3,428 2,608 3,024 3,195
Repairs and maintenance 1,324 3,234 544 694 441
Drydocking 311 683 1,057 (103 ) 617
Insurance and loss reserves 157 357 182 144 147
Fuel, lubes and supplies 693 704 559 790 748
Other 704   871   646   221   890  
6,777   9,277   5,596   4,770   6,038  
Direct Vessel Profit (Loss) $ 2,613   $ (1,276 ) $ 443   $ 3,884   $ 2,793  
 
Leased-in equipment (included in operating costs and expenses) $ 966   $ 969   $ 970   $ 972   $ 974  
Time Charter Statistics:
Overall average rates per day worked $ 10,611 $ 10,348 $ 9,388 $ 10,511 $ 9,858
Overall fleet utilization 71 % 67 % 61 % 53 % 62 %
Overall fleet available days 1,283 1,123 1,019 1,445 1,401
Out-of-service days for repairs, maintenance and drydockings 79 125 19 56 58
Out-of-service days for cold-stacked status 184 91 180 507 289
 
 
SEACOR MARINE HOLDINGS INC.

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

(in thousands, except for statistics, unaudited)

 
    Three Months Ended

Sep. 30,
2017

 

Jun. 30,
2017

 

Mar. 31,
2017

 

Dec. 31,
2016

 

Sep. 30,
2016

Middle East and Asia
Operating revenues:
Time charter $ 9,490 $ 7,415 $ 5,823 $ 10,187 $ 12,763
Other marine services (341 ) 109   877   2,935   2,566  
9,149   7,524   6,700   13,122   15,329  
Direct operating expenses:
Personnel 4,731 4,147 3,123 4,367 4,778
Repairs and maintenance 2,309 3,947 576 1,539 1,394
Drydocking (102 ) 358 158 5 719
Insurance and loss reserves 363 353 346 118 199
Fuel, lubes and supplies 1,115 908 524 802 961
Other 1,192   1,061   1,465   851   790  
9,608   10,774   6,192   7,682   8,841  
Direct Vessel Profit (Loss) $ (459 ) $ (3,250 ) $ 508   $ 5,440   $ 6,488  
 
Leased-in equipment (included in operating costs and expenses) $   $ 516   $ 346   $ 836   $ 1,254  
Time Charter Statistics:
Overall average rates per day worked $ 7,138 $ 6,580 $ 7,017 $ 9,083 $ 10,179
Overall fleet utilization 61 % 55 % 49 % 58 % 63 %
Overall fleet available days 2,194 2,067 1,710 1,932 1,988
Out-of-service days for repairs, maintenance and drydockings 95 122 50 3 24
Out-of-service days for cold-stacked status 184 304 320 186
 
Brazil, Mexico, Central and South America
Operating revenues:
Time charter $ 1,439 $ $ $ $
Bareboat charter 1,168 1,156 1,143 1,169 1,967
Other marine services 159   162   75   76   220  
2,766   1,318   1,218   1,245   2,187  
Direct operating expenses:
Personnel 326 148 13 24 198
Repairs and maintenance 110 116 4 5 20
Insurance and loss reserves 75 4 7 6
Fuel, lubes and supplies 33 27 (172 )
Other 69   3   1     (56 )
613   298   25   (137 ) 162  
Direct Vessel Profit $ 2,153   $ 1,020   $ 1,193   $ 1,382   $ 2,025  
 
Leased-in equipment (included in operating costs and expenses) $   $   $   $ (1 ) $ 180  
Time Charter Statistics:
Overall average rates per day worked $ 16,060 $ $ $ $
Overall fleet utilization 49 % % % % %
Overall fleet available days 184 105 90 184 170
Out-of-service days for cold-stacked status 92 91 90 184 170
 
 
SEACOR MARINE HOLDINGS INC.

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

(in thousands, except for statistics, unaudited)

 
    Three Months Ended

Sep. 30,
2017

 

Jun. 30,
2017

 

Mar. 31,
2017

 

Dec. 31,
2016

 

Sep. 30,
2016

Europe, primarily North Sea
Operating revenues:
Time charter $ 20,051 $ 18,713 $ 16,065 $ 17,094 $ 19,677
Other marine services 754   680   461   646   578  
20,805   19,393   16,526   17,740   20,255  
Direct operating expenses:
Personnel 9,079 8,671 7,917 8,157 9,827
Repairs and maintenance 2,378 2,191 1,734 1,955 2,194
Drydocking 961 900 1,279 210 696
Insurance and loss reserves 203 207 219 240 163
Fuel, lubes and supplies 790 1,006 949 907 957
Other 190   237   250   235   274  
13,601   13,212   12,348   11,704   14,111  
Direct Vessel Profit $ 7,204   $ 6,181   $ 4,178   $ 6,036   $ 6,144  
 
Leased-in equipment (included in operating costs and expenses) $   $   $ 64   $ 190   $ 83  
Time Charter Statistics:
Average rates per day worked - Standby safety $ 8,650 $ 8,457 $ 8,131 $ 8,284 $ 8,904
Fleet utilization - Standby safety 84 % 80 % 80 % 81 % 78 %
Fleet available days - Standby safety 1,840 1,820 1,800 1,840 1,989
Average rates per day worked - Wind farm utility $ 2,221 $ 2,124 $ 2,005 $ 1,991 $ 2,083
Fleet utilization - Wind farm utility 94 % 95 % 69 % 73 % 89 %
Fleet available days - Wind farm utility 3,220 3,185 3,150 3,220 3,161
Out-of-service days for repairs, maintenance and drydockings 110 124 173 130 136
 
 

SEACOR MARINE HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (NON-GAAP PRESENTATION)
(in thousands, unaudited)

 
  Three Months Ended

Sep. 30,
2017

 

Jun. 30,
2017

 

Mar. 31,
2017

 

Dec. 31,
2016

 

Sep. 30,
2016

Cash Flows from Operating Activities:
Regional DVP(1) $ 9,391 $ 1,531 $ 4,516 $ 15,902 $ 17,497
Operating, leased-in equipment (excluding amortization of deferred gains) (4,845 ) (5,740 ) (5,641 ) (6,262 ) (6,580 )
Administrative and general (excluding provisions for bad debts and amortization of restricted stock) (11,139 ) (22,596 ) (10,267 ) (10,113 ) (10,588 )
SEACOR Holdings management and guarantee fees (21 ) (1,358 ) (2,001 ) (2,003 ) (2,005 )
Other, net (excluding non-cash losses) (1 ) (272 ) 1
Dividends received from 50% or less owned companies 800   1,642     406    
(5,814 ) (26,521 ) (13,394 ) (2,342 ) (1,675 )
Changes in operating assets and liabilities before interest and income taxes (14,428 ) 18,635 24,903 (14,377 ) (8,383 )
Purchases of marketable securities (14,321 ) (286 )
Proceeds from sale of marketable securities 51,877
Cash settlements on derivative transactions, net (184 ) (166 ) (22 ) (285 ) (80 )
Interest paid, excluding capitalized interest (1,119 ) (3,626 ) (2,280 ) 1,238
Interest received 354 275 2,372 (291 ) 1,832
Income taxes (paid) refunded, net 2,599   (157 ) (440 ) 21,208   (204 )
Net cash provided by (used in) operating activities (GAAP Measure) (18,592 ) (11,560 ) 65,296   (12,688 ) (7,558 )
Cash Flows from Investing Activities:
Purchases of property and equipment, excluding capitalized interest (22,796 ) (17,006 ) (9,484 ) (16,153 ) (35,202 )
Capitalized interest paid (754 ) (1,654 ) (659 ) (1,925 ) (1,764 )
Cash settlements on derivative transactions, net (45 ) (324 ) (342 ) (31 )
Proceeds from disposition of property and equipment 248 1,252 8,297 37,800 980
Construction reserve funds (deposits) withdrawals, net 22,344   15,678   (5,268 ) (16,310 ) 6  
Net investing activities in property and equipment (1,003 ) (1,730 ) (7,438 ) 3,070 (36,011 )
Net investing activities in 50% or less owned companies (773 ) (1,733 ) 4,956 (8,661 ) (2,008 )
Net investing activities in third party notes receivable (380 )
Net decrease (increase) in restricted cash 205 (13 ) (349 ) (67 ) (1,120 )
Cash assumed on consolidation of 50% or less owned companies 1,943
Business acquisitions, net of cash acquired   (9,751 )      
Net cash used in investing activities (GAAP Measure) (1,571 ) (13,227 ) (888 ) (6,038 ) (39,139 )
Cash Flows from Financing Activities:
Payments on long-term debt (4,599 ) (2,800 ) (1,173 ) (2,027 ) (487 )
Proceeds from issuance of debt, net of issue costs 3,622 (173 ) 3,396 6,564 13,920
Distribution of SEACOR Marine restricted stock to Company personnel by SEACOR Holdings (2,656 )
Purchase of subsidiary shares from noncontrolling interests   (3,693 )      
Net cash provided by (used in) financing activities (GAAP Measure) (977 ) (9,322 ) 2,223   4,537   13,433  
Effects of Exchange Rate Changes on Cash and Cash Equivalents 539   858   269   (979 ) (385 )
Net Increase (Decrease) in Cash and Cash Equivalents (20,601 ) (33,251 ) 66,900   (15,168 ) (33,649 )
Cash and Cash Equivalents, Beginning of Period 150,958   184,209   117,309   132,477   166,126  
Cash and Cash Equivalents, End of Period $ 130,357   $ 150,958   $ 184,209   $ 117,309   $ 132,477  
 
______________________
(1)   Direct vessel profit (defined as operating revenues less operating expenses excluding leased-in equipment and as presented in the preceding table, “DVP”) is our measure of segment profitability when applied to individual segments and a non-GAAP measure when applied on a consolidated basis for the combined fleet. We believe that DVP is a critical financial measure to analyze and compare the operating performance of our individual vessels, fleet categories 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 our fleet’s 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 operation of our fleet, and it should not be considered in isolation or used as a substitute for our results as reported under GAAP.
 
 
SEACOR MARINE HOLDINGS INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, unaudited)

 
   

Sep. 30,
2017

 

Jun. 30,
2017

 

Mar. 31,
2017

 

Dec. 31,
2016

 

Sep. 30,
2016

ASSETS
Current Assets:
Cash and cash equivalents $ 130,357 $ 150,958 $ 184,209 $ 117,309 $ 132,477
Restricted cash 1,619 1,824 1,811 1,462 1,120
Marketable securities 688 785 40,139 22,894
Receivables:
Trade, net of allowance for doubtful accounts 54,124 43,475 48,044 44,830 62,326
Due from SEACOR Holdings 19,102
Other 8,942 11,957 11,701 21,316 18,864
Inventories 3,786 3,376 3,421 3,058 3,165
Prepaid expenses and other 3,364   3,719   3,068   3,349   2,460  
Total current assets 202,192   215,997   253,039   250,565   243,306  
Property and Equipment:
Historical cost 1,204,409 1,155,155 1,089,176 958,759 1,058,048
Accumulated depreciation (558,919 ) (543,822 ) (534,522 ) (540,619 ) (552,018 )
645,490 611,333 554,654 418,140 506,030
Construction in progress 60,597   90,335   83,710   123,801   122,633  
Net property and equipment 706,087   701,668   638,364   541,941   628,663  
Investments, at Equity, and Advances to 50% or Less Owned Companies 89,984 100,719 114,767 138,311 133,011
Construction Reserve Funds 45,455 67,799 83,477 78,209 61,899
Other Assets 6,213   6,072   6,176   6,093   20,048  
$ 1,049,931   $ 1,092,255   $ 1,095,823   $ 1,015,119   $ 1,086,927  
 
LIABILITIES AND EQUITY
Current Liabilities:
Current portion of long-term debt $ 30,858 81,593 $ 26,600 $ 20,400 $ 20,351
Accounts payable and accrued expenses 23,487 23,436 26,399 25,969 27,029
Due to SEACOR Holdings 663 3,519 1,827 2,497
Other current liabilities 54,210   47,014   46,055   34,647   39,233  
Total current liabilities 109,218   155,562   100,881   81,016   89,110  
Long-Term Debt 285,869 233,904 274,408 217,805 209,724
Conversion Option Liability on 3.75% Convertible Senior Notes 14,135 27,109
Deferred Income Taxes 106,389 117,332 121,028 124,945 131,225
Deferred Gains and Other Liabilities 36,314   39,324   38,820   41,198   44,374  
Total liabilities 551,925   573,231   535,137   464,964   474,433  
Equity:
SEACOR Marine Holdings Inc. stockholders’ equity:
Preferred stock
Common stock 177 177 177 177 177
Additional paid-in capital 302,952 302,678 306,359 306,359 306,359
Retained earnings 187,550 208,025 242,017 249,412 310,987
Accumulated other comprehensive loss, net of tax (8,685 ) (9,690 ) (10,679 ) (11,337 ) (11,024 )
481,994 501,190 537,874 544,611 606,499
Noncontrolling interests in subsidiaries 16,012   17,834   22,812   5,544   5,995  
Total equity 498,006   519,024   560,686   550,155   612,494  
$ 1,049,931   $ 1,092,255   $ 1,095,823   $ 1,015,119   $ 1,086,927  
 

SEACOR MARINE HOLDINGS INC.
FLEET COUNTS
(unaudited)

 
   

Sep. 30,
2017(1)

 

Jun. 30,
2017

 

Mar. 31,
2017

 

Dec. 31,
2016

 

Sep. 30,
2016

 
Anchor handling towing supply 23 25 25 25 27
Fast support 50 49 51 48 50
Supply 27 26 28 28 31
Standby safety 21 21 21 21 21
Specialty 6 6 6 6 7
Liftboats 15 15 15 15 15
Wind farm utility 41   40   40   40   40
183   182   186   183   191
______________________
(1)   Excludes four owned and one leased-in offshore support vessels that have been retired and removed from service.
 
 

SEACOR MARINE HOLDINGS INC.
EXPECTED FLEET DELIVERIES
AS OF SEPTEMBER 30, 2017
(unaudited)

 
      2018   2019   2020  
Q1   Q2   Q3   Q4 Q1   Q2   Q3   Q4 Q1   Q2 Total
 
Fast support 1 1 1 1 4
Supply 1 1 1 3
Wind farm utility 1 1 2
 
 

For SEACOR Marine Holdings Inc.
Erica Bartsch, 212-446-1875
ebartsch@seacormarine.com

Source: SEACOR Marine Holdings Inc.