EXHIBIT 99.1

 

SEACOR HOLDINGS INC.

UNAUDITED PRO FORMA FINANCIAL INFORMATION

 

Introduction

 

On July 3, 2017, a subsidiary of SEACOR Holdings Inc. (“SEACOR Holdings”) completed the sale of its interest in Illinois Corn Processing, LLC as more fully described below.   The following unaudited pro forma financial statements are being filed in accordance with the requirements of Form 8-K and are derived from the SEACOR Holdings' historical financial statements. The pro forma adjustments give effect to the sale of the interest in ICP and also to the spin-off by SEACOR Holdings of SEACOR Marine Holdings, Inc. which was completed on June 1, 2017 and is more fully described below.

 

SEACOR Marine Spin-Off

 

At 11:59 p.m., New York City time, on June 1, 2017 (the “Distribution Date”), SEACOR Holdings Inc. (together with its subsidiaries, the “Company”) completed the spin-off (the “Spin-Off”) of SEACOR Marine Holdings Inc. (“SEACOR Marine”), the company that operated SEACOR Holdings’ offshore marine services business segment, by means of a dividend to SEACOR Holdings’ shareholders of all of the issued and outstanding common stock of SEACOR Marine. SEACOR Marine filed a Registration Statement on Form 10 with the Securities and Exchange Commission describing the Spin-Off that was declared effective on May 11, 2017. Prior to the completion of the Spin-Off, SEACOR Holdings and SEACOR Marine entered into a distribution agreement and several other agreements that will govern their post-Spin-Off relationship. SEACOR Marine is now an independent company with its common stock listed on the New York Stock Exchange under the symbol “SMHI”.

 

On the Distribution Date, SEACOR Holdings’ shareholders of record as of the close of business on May 22, 2017 received 1.005 shares of SEACOR Marine common stock for each share of SEACOR Holdings common stock held. SEACOR Holdings no longer beneficially owns any shares of SEACOR Marine common stock and will not consolidate SEACOR Marine’s financial results for periods after the Distribution Date.

 

Illinois Corn Processing Merger

 

On July 3, 2017, the closing of the transactions contemplated by the Agreement and Plan of Merger dated June 26, 2017 (the “Merger Agreement”), by and among, Illinois Corn Processing Holdings Inc. (“ICPH”), a wholly-owned subsidiary of SEACOR Holdings Inc. (the “Company”), MGPI Processing, Inc., (“MGP” and, together with ICPH, the “Sellers”), Illinois Corn Processing, LLC (“ICP”), Pacific Ethanol Central, LLC (“Buyer”), and ICP Merger Sub, LLC, a wholly-owned subsidiary of Buyer (“Merger Sub”), was consummated. As a result (a) Merger Sub merged with and into ICP (the “Merger”) with ICP being the surviving company and Buyer becoming the sole owner of ICP, and (b) the Sellers’ equity interests in ICP were converted into their respective proportionate percentages (i.e., 70% for ICPH and 30% for MGP) of merger consideration consisting of (i) $30.0 million in cash (the “Cash Consideration Amount”) and (ii) secured promissory notes of Merger Sub (which, pursuant to the Merger, became obligations of ICP) in the aggregate principal amount of approximately $46.7 million.

 

Accordingly, ICPH received a total of $21.0 million in cash and a promissory note in the principal amount of approximately $32.7 million in connection with the Merger. The principal amount of the promissory note is subject to a working capital adjustment, accrues interest at a rate per annum equal to three-month LIBOR plus an applicable margin of 5% for the first three months, 8% for the next three months and 10% thereafter, and matures on January 3, 2019.

 

Pro Forma Financial Information

 

The following unaudited pro forma financial statements are derived from SEACOR Holdings’ historical financial statements. The pro forma adjustments give effect to the Spin-Off and Merger as described in the notes to the unaudited pro forma financial statements. The unaudited pro forma statements of income for the fiscal year ended December 31, 2016 and for the three months ended March 31, 2017 give effect to the Spin-Off and Merger as if it had occurred immediately preceding the periods presented. The unaudited pro forma balance sheet as of March 31, 2017, gives effect to the Spin-Off and Merger as if it had occurred on March 31, 2017.

 

The pro forma adjustments are described in the accompanying notes, which should be read in conjunction with the unaudited pro forma financial statements. The assumptions used and pro forma adjustments derived from such assumptions are based on currently available information and expectations, and the Company believes such assumptions are reasonable under the circumstances.

 

In addition to the Spin-Off and Merger, the Company consummated a number of transactions subsequent to March 31, 2017 which are not reflected in the following unaudited pro forma financial statements, including:

 

 

The purchase of $7.6 million in principal amount of the Company’s 7.375% Senior Notes for $7.7 million in the aggregate.

 

 

The purchase of $48.4 million in principal amount of the Company’s 2.5% Convertible Senior Notes for $48.6 million in the aggregate.

 

 

The repurchase of 110,298 shares of SEACOR common stock for treasury for an aggregate purchase price of $7.6 million from its employees to cover their tax withholding obligations related to share award transactions.

  

 
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The unaudited pro forma financial statements are provided for illustrative and informational purposes only and are not necessarily indicative of and do not purport to represent, what SEACOR Holdings’ financial condition or operating results would have been had the Spin-Off and Merger occurred on the dates indicated or what SEACOR Holdings’ future financial condition or operating results will be after giving effect to the completion of the Spin-Off and Merger. The pro forma financial information also does not reflect certain financial and operating benefits SEACOR Holdings expects to realize as a result of the Spin-Off and Merger as such benefits are judgmental and not factually supportable. The pro forma financial information information was based on and derived from SEACOR Holdings’ audited consolidated financial statements and SEACOR Holdings’ unaudited condensed consolidated financial statements and should be read in conjunction with SEACOR Holdings’ historical financial statements and accompanying notes.

 

 
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SEACOR Holdings Inc.

Condensed Consolidated Statement of Income

Three months ended March 31, 2017

(in thousands, except share data, unaudited)

 

   

Actual

   

Spin

Distribution(1)

   

ICP Merger(3)

   

Pro forma

 

Operating Revenues

  $ 190,447     $ (34,304

)

  $ (38,385

)

  $ 117,758  

Costs and Expenses:

                               

Operating

    143,964       (33,379

)

    (36,101

)

    74,484  

Administrative and general

    35,427       (13,132

)

    (751

)

    21,544  

Depreciation and amortization

    30,397       (12,503

)

    (1,175

)

    16,719  
      209,788       (59,014

)

    (38,027

)

    112,747  

Gains (Losses) on Asset Dispositions and Impairments, Net

    4,631       (4,819

)

          (188

)

Operating Income (Loss)

    (14,710

)

    19,891       (358

)

    4,823  

Other Income (Expense):

                               

Interest income

    2,813       (850

)

    467       2,430  

Interest expense

    (13,474

)

    3,182       64       (10,228

)

Guarantee fees

          76             76  

Marketable security gains, net

    32,574       (11,738

)

          20,836  

Derivative gains, net

    3,075       89       (334

)

    2,830  

Foreign currency gains, net

    1,210       189             1,399  

Other, net

    194       1       (615

)

    (420

)

      26,392       (9,051

)

    (418

)

    16,923  

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

    11,682       10,840       (776

)

    21,746  

Income Tax Expense

    1,572       3,206       (232

)

    4,546  

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

    10,110       7,634       (544

)

    17,200  

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

    546       (438

)

          108  

Net Income

    10,656       7,196       (544

)

    17,308  

Net Income attributable to Noncontrolling Interests in Subsidiaries

    6,573       204       (376

)

    6,401  

Net Income attributable to SEACOR Holdings Inc.

  $ 4,083     $ 6,992     $ (168

)

  $ 10,907  
                                 

Basic Earnings Per Common Share of SEACOR Holdings Inc.

  $ 0.24                     $ 0.63  

Diluted Earnings Per Common Share of SEACOR Holdings Inc.

  $ 0.24                     $ 0.62  
                                 

Weighted Average Common Shares Outstanding:

                               

Basic

    17,074,043                       17,226,679  

Diluted

    17,363,839                       17,475,749  

 

 
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SEACOR Holdings Inc.

Condensed Consolidated Statement of Loss

Year ended December 31, 2016

(in thousands, except share data, unaudited)

 

   

Actual

   

Spin

Distribution(1)

   

ICP Merger(3)

   

Pro Forma

 

Operating Revenues

  $ 830,985     $ (215,636

)

  $ (177,401

)

  $ 437,948  

Costs and Expenses:

                               

Operating

    597,813       (166,925

)

    (158,495

)

    272,393  

Administrative and general

    138,581       (54,265

)

    (2,812

)

    81,504  

Depreciation and amortization

    124,933       (58,069

)

    (4,298

)

    62,566  
      861,327       (279,259

)

    (165,605

)

    416,463  

Losses on Asset Dispositions and Impairments, Net

    (142,205

)

    116,222             (25,983

)

Operating Income

    (172,547

)

    179,845       (11,796

)

    (4,498

)

Other Income (Expense):

                               

Interest income

    19,339       (4,458

)

    3,068       17,949  

Interest expense

    (49,726

)

    10,008       229       (39,489

)

Guarantee fees

          315             315  

Debt extinguishment gains, net

    5,184                   5,184  

Marketable security losses, net

    (32,199

)

    45             (32,154

)

Derivative losses, net

    (10,225

)

    (2,995

)

    (911

)

    (14,131

)

Foreign currency gains (losses), net

    (1,868

)

    3,312             1,444  

Other, net

    (20,206

)

    1,490             (18,716

)

      (89,701

)

    7,717       2,386       (79,598

)

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

    (262,248

)

    187,562       (9,410

)

    (84,096

)

Income Tax Benefit

    (93,830

)

    62,508       (2,554

)

    (33,876

)

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

    (168,418

)

    125,054       (6,856

)

    (50,220

)

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

    (27,354

)

    6,314             (21,040

)

Net Loss

    (195,772

)

    131,368       (6,856

)

    (71,260

)

Net Income attributable to Noncontrolling Interests in Subsidiaries

    20,125       1,103       (3,689

)

    17,539  

Net Loss attributable to SEACOR Holdings Inc.

  $ (215,897

)

  $ 130,265     $ (3,167

)

  $ (88,799

)

                                 

Basic Loss Per Common Share of SEACOR Holdings Inc.

  $ (12.76

)

                  $ (5.25

)

Diluted Loss Per Common Share of SEACOR Holdings Inc.

  $ (12.76

)

                  $ (5.25

)

                                 

Weighted Average Common Shares Outstanding:

                               

Basic

    16,914,928                       16,914,928  

Diluted

    16,914,928                       16,914,928  

  

 
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SEACOR Holdings Inc.

Condensed Consolidated Balance Sheet

March 31, 2017

(in thousands, unaudited)

 

   

Actual

   

Spin

Distribution(2)

   

ICP Merger(3)

   

Pro-forma

 

ASSETS

                               

Current Assets:

                               

Cash and cash equivalents

  $ 418,903     $ (184,209

)

  $ 12,855     $ 247,549  

Restricted cash

    4,065       (1,811

)

          2,254  

Marketable securities

    98,189       (785

)

          97,404  

Trade and other receivables

    196,519       (56,981

)

    (7,201

)

    132,337  

Receivable from SEACOR Marine

          9,495             9,495  

Receivable from ICP

                780       780  

Inventories

    19,385       (3,421

)

    (12,913

)

    3,051  

Prepaid expenses and other

    8,998       (3,068

)

    (1,316

)

    4,614  

Total current assets

    746,059       (240,780

)

    (7,795

)

    497,484  

Property and Equipment, Net

    1,687,451       (638,364

)

    (33,209

)

    1,015,878  

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

    297,162       (114,767

)

          182,395  

Construction Reserve Funds

    147,955       (83,477

)

          64,478  

Goodwill

    32,787                   32,787  

Intangible Assets, Net

    19,519                   19,519  

Other Assets

    24,045       (6,176

)

    32,686       50,555  
    $ 2,954,978     $ (1,083,564

)

  $ (8,318

)

  $ 1,863,096  

LIABILITIES AND EQUITY

                               

Current Liabilities:

                               

Current portion of long-term debt

  $ 364,583     $ (196,316

)

  $     $ 168,267  

Accounts payable and accrued expenses

    66,749       (26,399

)

    (2,353

)

    37,997  

Other current liabilities

    103,088       (43,291

)

    (903

)

    58,894  

Total current liabilities

    534,420       (266,006

)

    (3,256

)

    265,158  

Long-Term Debt

    733,214       (104,692

)

    101       628,623  

Exchange Option Liability

    16,809       (16,809

)

           

Deferred Income Taxes

    311,949       (116,880

)

    6,251       201,320  

Deferred Gains and Other Liabilities

    131,717       (38,820

)

          92,897  
      1,728,109       (543,207

)

    3,096       1,187,998  

Equity:

                               

SEACOR Holdings Inc. stockholders’ equity:

                               

Preferred stock

                       

Common stock

    380                   380  

Additional paid-in capital

    1,527,460       12,624             1,540,084  

Retained earnings

    914,806       (540,848

)

    11,608       385,566  

Shares held in treasury, at cost

    (1,364,172

)

                (1,364,172

)

Accumulated other comprehensive loss, net of tax

    (11,024

)

    10,679       (1

)

    (346

)

      1,067,450       (517,545

)

    11,607       561,512  

Noncontrolling interests in subsidiaries

    159,419       (22,812

)

    (23,021

)

    113,586  

Total equity

    1,226,869       (540,357

)

    (11,414

)

    675,098  
    $ 2,954,978     $ (1,083,564

)

  $ (8,318

)

  $ 1,863,096  

 

 
5

 

 

Notes to Unaudited Pro Forma Financial Data

 

 

(1)

Represents adjustments to reflect the consummation of the SEACOR Marine Holdings Inc. Spin-Off and related transactions.

 

 

(2)

Represents adjustments to reflect the consummation of the Spin-Off of SEACOR Marine and related transactions. In the Spin-Off, holders of SEACOR restricted stock that was issued under SEACOR’s stock plans were issued 1.005 shares of SEACOR Marine common stock even though the restrictions on their SEACOR restricted stock had not lapsed. These adjustments include the acceleration of compensation expense in connection with the issuance of such non-restricted shares of SEACOR Marine common stock to holders of SEACOR restricted stock awards.

 

 

(3)

Represents adjustments to reflect the consummation of the Merger of ICP and related transactions.

 

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