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SEACOR Holdings Announces Results of Operations for Its Second Quarter Ended June 30, 2017 and Provides an Update on Recent Events and Transactions

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FORT LAUDERDALE, Fla., Aug. 03, 2017 (GLOBE NEWSWIRE) -- SEACOR Holdings Inc. (NYSE:CKH) (the “Company”) today announced its results for the second quarter ended June 30, 2017.  In connection with the release, Charles Fabrikant, the Company’s Executive Chairman, offered the following comment:

“This year has been transformative for SEACOR and in order to provide context this release follows a slightly different format.  The following comments are hopefully a useful update and perspective on recent transactions and our current business.  This release focuses on our continuing operations, inland river transport and logistics, and shipping services and provides results for the quarter.

As noted in the discussion of discontinued operations, in addition to the Spin-off of SEACOR Marine Holdings Inc., the Company’s former Offshore Marine Services segment, we sold Illinois Corn Processing after the close of the calendar quarter.  In addition to the gain of $11.6 million, net of tax, noted below, the Company also took out a final distribution of $17.3 million prior to the sale.  We acquired our initial 50% interest in ICP in 2009 for $15.0 million and purchased an additional 20% interest in 2012 for $9.1 million.  We received aggregate distributions of $42.6 million in addition to the proceeds from the sale and calculated that this investment produced an approximate 25% internal rate of return on capital.

The most important post-June 30, 2017 events are the acquisition of International Shipholding Corporation (“ISH”) and the execution of a series of amendments and charter extensions for several of SEA-Vista’s tankers resulting in a substantial increase to SEA-Vista’s backlog.

The new charter extensions add approximately $100 million in bareboat charter (net lease) revenue and increase SEA-Vista’s revenue backlog to approximately $450 million.  The backlog positions SEA-Vista to reduce debt and potentially capitalize on opportunity should the current oversupply of Jones Act coastwise equipment produce one.  SEA-Vista expects to place its multi-grade chemical carrier in service in the spot market this August, after which it has no spot exposure until mid-2018.

The most exciting development is the successful culmination of many months working with ISH, its creditors and advisors to complete its exit from chapter 11 bankruptcy as a subsidiary of SEACOR Holdings Inc.  This acquisition capitalizes on our shipping group’s technical management skills and, most importantly, diversifies our marine business.

  • United Ocean Services operates three Jones Act dry bulk carriers which support the cross-Gulf trade of fertilizer, phosphate rock, coal, and petroleum coke.  They are three of 17 Jones Act coastwise dry bulk carriers, but the largest in terms of cargo capacity and the most efficient to service their existing trade lanes.  The ships are chartered through February 2018.  Customers include Tampa Electric and the Mosaic Company. 
      
  • CG Rail Inc. (CGR) is a short line railroad that operates two rail ferries, each capable of loading 113 railcars.  CGR has terminal operations in Mobile and Coatzacoalcos, Mexico, allowing railcars to access its ships and transit more quickly than overland routes from the U.S. and Canada to Mexico.  CGR also has a full service rail car repair facility in Mobile, Alabama. 
      
  • Central Gulf Lines, Inc. and Waterman Steamship Company (“CGL”), two long-established U.S. based shipping lines, charter and operate U.S.-flag vessels which are enrolled in the U.S. government’s Maritime Security Program.  At present CGL is running four roll-on, roll-off vessels, generally referred to as “PCTC’s” (Pure-Car-Truck-Carriers), moving U.S. military cargo as well as commercial and U.S. government-impelled cargo.

The ISH assets and businesses are an excellent complement to SEACOR Holding’s other business lines including: Shipping Services’ Harbor Towing operations, SEACOR Island Lines, SEA-Vista’s tanker operations, Seabulk Fleet Management services, and our joint venture interest in Trailer Bridge, a regional Jones Act liner operation that primarily moves cargo from Jacksonville to Puerto Rico.”

SECOND QUARTER RESULTS

Discontinued Operations

Spin-off of SEACOR Marine - On June 1, 2017, the Company completed the spin-off of its Offshore Marine Services business segment (the “Spin-off”) by means of a dividend to its shareholders of all the issued and outstanding common stock of SEACOR Marine Inc. (“SEACOR Marine”).  SEACOR Marine is now a stand-alone public company whose common stock is listed on the New York Stock Exchange under the symbol “SMHI.”

Disposition of Illinois Corn Processing - On July 3, 2017, the Company effected the sale of its 70% interest in Illinois Corn Processing LLC (“ICP”) for $21.0 million in cash and a note from the buyer for $32.7 million, resulting in a third quarter gain of $11.6 million, net of tax.

As a result of the consummation of these transactions, historical results for all periods presented in the financial statements and tables in this release present the financial position, results of operations and cash flows of SEACOR Marine and ICP as discontinued operations.

Continuing Operations

The Company’s primary continuing operations include Inland River Services, Shipping Services and Witt O’Brien’s, which provides emergency management and risk consultancy services.

For the quarter ended June 30, 2017, net loss from continuing operations attributable to SEACOR Holdings Inc. was $6.8 million ($0.39 per diluted share) and includes:

  • a net loss of $14.0 million ($0.81 per diluted share) related to the Company’s investment in 9,177,135 shares of Dorian LPG Ltd. (“Dorian”); 
      
  • a net loss of $5.8 million ($0.34 per diluted share) primarily related to the accelerated vesting of share awards in connection with the Spin-off; 
      
  • net income of $10.9 million ($0.63 per diluted share) following the termination of the exchange option for the Company’s common stock (the “Exchange Option”) on SEACOR Marine’s convertible senior notes in connection with the Spin-off; and 
      
  • net income of $4.5 million ($0.26 per diluted share) for the Company’s proportionate share of a gain on the sale of a joint ventured dry-bulk articulated tug-barge.

For the six months ended June 30, 2017, net income from continuing operations attributable to SEACOR Holdings Inc. was $2.9 million ($0.17 per diluted share) and includes:

  • a net loss of $5.8 million ($0.33 per diluted share) primarily related to the accelerated vesting of share awards in connection with the Spin-off; and 
      
  • net income of $12.6 million ($0.72 per diluted share) following the termination of the Exchange Option on SEACOR Marine’s convertible senior notes in connection with the Spin-off.

For the preceding quarter ended March 31, 2017, net income from continuing operations attributable to SEACOR Holdings Inc. was $9.7 million ($0.56 per diluted share) and includes:

  • net income of $13.8 million ($0.80 per diluted share) related to the Company’s investment in Dorian; and 
      
  • net income of $1.7 million ($0.10 per diluted share) related to the change in fair value of the Exchange Option on SEACOR Marine’s convertible senior notes.

A comparison of results for the quarter ended June 30, 2017 with the preceding quarter ended March 31, 2017 is included in the “Highlights for the Quarter” discussion below.

Operating income before depreciation and amortization (“OIBDA” - see disclosure related to Non-GAAP measures in the statements of income (loss) and segment information tables herein) was $26.5 million in the second quarter compared with $20.1 million in the preceding quarter.

Highlights for the Quarter

Inland River Services - Operating income was $0.4 million compared with an operating loss of $0.1 million in the preceding quarter.  OIBDA was $6.9 million on operating revenues of $37.6 million compared with $6.5 million on operating revenues of $42.7 million in the preceding quarter.  Operating income and OIBDA for the second quarter included gains on asset dispositions of $5.9 million primarily related to the sale of one inland river towboat.  During the second quarter the Company also sold and leased back 50 dry-cargo barges resulting in a gain of $8.6 million of which $0.9 million was recognized currently and $7.7 million was deferred and will be recognized as a reduction of leased-in expense over the lease back period of 84 months.

Operating results, excluding gains (losses) on asset dispositions and impairments, were $5.2 million lower compared with the preceding quarter.  Operating results for the dry-cargo barge pools were lower primarily due to lower rates and reduced demand for grain exports.

Operating results for terminal operations were lower primarily due to extended closures of certain terminal locations as a consequence of high water and lower seasonal activity.

In addition, compensation costs were $0.8 million higher related to the accelerated vesting of share awards in connection with the Spin-off.

Foreign currency losses of $1.6 million were primarily due to the weakening of the Colombian peso in relation to the U.S. dollar underlying certain of the Company’s intercompany lease obligations.

Equity in losses of 50% or less owned companies of $1.3 million reflected an improvement in the operating results of SCFCo, the Company’s joint venture operating on the Parana-Paraguay River Waterway, as a consequence of improving market conditions for moving iron ore, industrial commodities and agricultural products.  The improvement in SCFCo was partially offset by losses from SCF Bunge Marine, the Company’s joint venture that operates six inland river towboats, primarily due to navigational restrictions and downtime from engine overhaul and related repairs for one of its towboats.

Shipping Services - Operating income was $20.0 million compared with $13.6 million in the preceding quarter.  OIBDA was $30.2 million on operating revenues of $72.0 million compared with $22.8 million on operating revenues of $67.6 million in the preceding quarter.  OIBDA in the first quarter included $11.3 million attributable to noncontrolling interests compared with $10.1 million in the preceding quarter.

Operating results were $6.4 million higher primarily due to the following:

  • lower drydocking and maintenance and repair costs for harbor towing and SEACOR Island Lines; 
      
  • the impact of a full quarter of operations from one U.S.-flag product tanker placed into service during March 2017; and 
      
  • higher demand for SEACOR Island Lines’ services.

These improvements were partially offset by $0.8 million of higher compensation costs related to the accelerated vesting of share awards in connection with the Spin-off.

Equity in earnings of 50% or less owned companies of $5.6 million primarily relates to a $4.5 million gain on the sale of a joint ventured dry-bulk articulated tug-barge and the operating results of Trailer Bridge, the Company’s joint venture operating in the Puerto Rico liner trade.

Corporate and Eliminations - Administrative and general expenses during the second quarter include $5.3 million of compensation costs primarily related to the accelerated vesting of share awards as a consequence of the Spin-off.

Derivative gains during the second quarter were primarily due to the termination of the Exchange Option on SEACOR Marine’s convertible senior notes in connection with the Company’s completion of the Spin-off.

Debt Extinguishment Losses - During the second quarter, the Company purchased $7.6 million in principal amount of its 7.375% Senior Notes for $7.7 million resulting in losses on debt extinguishment of $0.2 million and purchased $48.4 million in principal amount of its 2.5% Convertible Senior Notes for $48.6 million resulting in gains on debt extinguishment of $0.1 million.

Marketable Security Gains (Losses) - Marketable security results during the second quarter were primarily attributable to marking to market the Company’s investment in 9,177,135 shares of Dorian, a publicly traded company listed on the New York Stock Exchange under the symbol “LPG.”  The Company recognized unrealized losses related to Dorian of $21.6 million compared with gains of $21.3 million in the preceding quarter.  The closing share price of Dorian was $8.18 and $10.53 as of June 30, 2017 and March 31, 2017, respectively.  The Company’s cost basis in Dorian is $13.66 per share.  The closing share price of Dorian was $7.04 as of August 3, 2017.

Capital Commitments - The Company’s capital commitments as of June 30, 2017 by year of expected payment were as follows (in thousands):

  2017   2018   2019   Total
Shipping Services $ 8,356     $ 2,259     $     $ 10,615  
Inland River Services 11,780     926     463     13,169  
  $ 20,136     $ 3,185     $ 463     $ 23,784  
                               

Shipping Services’ capital commitments included one U.S.-flag chemical and petroleum articulated tug-barge and two U.S.-flag harbor tugs.  Inland River Services’ capital commitments included two inland river towboats and other equipment and improvements.

Liquidity and Debt - As of June 30, 2017, the Company’s balances of cash, cash equivalents, restricted cash, marketable securities and construction reserve funds totaled $365.9 million.  Total outstanding debt was $741.2 million, which includes $274.4 million of debt owed by SEA-Vista that is non-recourse to the Company and its subsidiaries other than SEA-Vista.  SEA-Vista’s debt was partially used to fund the construction of four product carriers in the U.S. coastwise tanker and chemical trades.  SEA-Vista is a consolidated venture and had $17.0 million of borrowing capacity under its credit facility as of June 30, 2017 .  Subsequent to June 30, 2017, SEA-Vista borrowed $11.0 million under its credit facility.

As of June 30, 2017, the remaining principal amount outstanding of the Company’s 2.5% Convertible Senior Notes of $108.7 million are included in current liabilities as the holders may require the Company to repurchase these notes on December 19, 2017.

SEACOR is a diversified holding company with interests in domestic and international transportation and logistics and risk management consultancy.  SEACOR is publicly traded on the New York Stock Exchange (NYSE) under the symbol CKH.

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 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, increased government legislation and regulation of the Company’s businesses could increase cost of operations, increased competition if the Jones Act is repealed, liability, legal fees and costs in connection with the provision of emergency response services, 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, activity in foreign countries and changes in foreign political, military and economic conditions, changes in foreign and domestic oil and gas exploration and production activity, safety record requirements related to Shipping Services, decreased demand for Shipping Services due to construction of additional refined petroleum product, natural gas or crude oil pipelines or due to decreased demand for refined petroleum products, crude oil or chemical products or a change in existing methods of delivery, compliance with U.S. and foreign government laws and regulations, including environmental laws and regulations and economic sanctions, the dependence of Inland River Services and Shipping Services 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 Shipping Acts on the amount of foreign ownership of the Company’s Common Stock, operational risks of Inland River Services and Shipping Services, effects of adverse weather conditions and seasonality, the level of grain export volume, the effect of fuel prices on barge towing costs, variability in freight rates for inland river barges, the effect of international economic and political factors on Inland River Services’ operations, adequacy of insurance coverage, the ability to recognize the anticipated benefits of the Spin-off, 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 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.  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.

For additional information, contact Molly Hottinger at (954) 627-5278 or visit SEACOR’s website at www.seacorholdings.com.

SEACOR HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(in thousands, except share data, unaudited)
  Three Months Ended   Six Months Ended
  June 30,   June 30,
  2017   2016   2017   2016
Operating Revenues $ 115,791     $ 99,647     $ 234,205     $ 204,699  
Costs and Expenses:              
Operating 69,686     64,027     144,898     127,063  
Administrative and general 25,540     21,361     48,418     44,037  
Depreciation and amortization 17,469     15,043     34,188     30,141  
  112,695     100,431     227,504     201,241  
Gains on Asset Dispositions and Impairments, Net 5,897     2,586     5,709     3,183  
Operating Income 8,993     1,802     12,410     6,641  
Other Income (Expense):              
Interest income 2,150     4,179     4,284     8,608  
Interest expense (11,676 )   (10,258 )   (21,980 )   (19,937 )
Debt extinguishment gains (losses), net (97 )   1,615     (97 )   4,838  
Marketable security losses, net (21,674 )   (21,459 )   (838 )   (42,970 )
Derivative gains (losses), net 16,897     (2,574 )   19,727     (2,665 )
Foreign currency gains (losses), net (1,470 )   797     (71 )   2,394  
Other, net 424     (7,652 )   4     (7,649 )
  (15,446 )   (35,352 )   1,029     (57,381 )
Income (Loss) from Continuing Operations Before Income Tax Expense (Benefit) and Equity in Earnings (Losses) of 50% or Less Owned Companies (6,453 )   (33,550 )   13,439     (50,740 )
Income Tax Expense (Benefit) (3,664 )   (13,633 )   232     (22,757 )
Income (Loss) from Continuing Operations Before Equity in Earnings (Losses) of 50% or Less Owned Companies (2,789 )   (19,917 )   13,207     (27,983 )
Equity in Earnings (Losses) of 50% or Less Owned Companies, Net of Tax 2,333     (3,847 )   2,441     (6,057 )
Net Income (Loss) from Continuing Operations (456 )   (23,764 )   15,648     (34,040 )
Loss from Discontinued Operations, Net of Tax (28,629 )   (27,169 )   (34,077 )   (37,417 )
Net Loss (29,085 )   (50,933 )   (18,429 )   (71,457 )
Net Income attributable to Noncontrolling Interests in Subsidiaries 3,723     4,226     10,296     10,888  
Net Loss attributable to SEACOR Holdings Inc. $ (32,808 )   $ (55,159 )   $ (28,725 )   $ (82,345 )
Basic Earnings (Loss) Per Common Share of SEACOR Holdings Inc.:            
Continuing operations $ (0.39 )   $ (1.61 )   $ 0.17     $ (2.63 )
Discontinued operations (1.52 )   (1.65 )   (1.85 )   (2.25 )
  $ (1.91 )   $ (3.26 )   $ (1.68 )   $ (4.88 )
Diluted Earnings (Loss) Per Common Share of SEACOR Holdings Inc.:            
Continuing operations $ (0.39 )   $ (1.61 )   $ 0.17     $ (2.63 )
Discontinued operations (1.52 )   (1.65 )   (1.82 )   (2.25 )
  $ (1.91 )   $ (3.26 )   $ (1.65 )   $ (4.88 )
Weighted Average Common Shares Outstanding:              
Basic 17,207,831     16,928,722     17,141,306     16,873,045  
Diluted 17,207,831     16,928,722     17,440,361     16,873,045  
               
OIBDA(1) $ 26,462     $ 16,845     $ 46,598     $ 36,782  
______________________                              
(1) Non-GAAP Financial Measure.  The Company, from time to time, discloses and discusses OIBDA, a non-GAAP financial measure, in its public releases and other filings with the Securities and Exchange Commission.  The Company defines OIBDA as operating income (loss) plus depreciation and amortization.  The Company’s measure of OIBDA may not be comparable to similarly titled measures presented by other companies.  Other companies may calculate OIBDA differently than the Company, which may limit its usefulness as a comparative measure.  In addition, this measurement does not necessarily represent funds available for discretionary use and is not a measure of the Company’s ability to fund its cash needs.  OIBDA is a financial metric used by management (i) as a supplemental internal measure for planning and forecasting overall expectations and for evaluating actual results against such expectations; (ii) as a criteria for annual incentive bonuses paid to Company officers and other shore-based employees; and (iii) to compare to the OIBDA of other companies when evaluating potential acquisitions.
                               

SEACOR HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(in thousands, except per share data, unaudited)
  Three Months Ended
  Jun. 30, 2017   Mar. 31, 2017   Dec. 31, 2016   Sep. 30, 2016   Jun. 30, 2016
Operating Revenues $ 115,791     $ 118,414     $ 126,196     $ 109,570     $ 99,647  
Costs and Expenses:                  
Operating 69,686     75,212     81,619     66,573     64,027  
Administrative and general 25,540     22,878     21,394     20,931     21,361  
Depreciation and amortization 17,469     16,719     16,560     15,864     15,043  
  112,695     114,809     119,573     103,368     100,431  
Gains (Losses) on Asset Dispositions and Impairments, Net 5,897     (188 )   (28,573 )   (593 )   2,586  
Operating Income (Loss) 8,993     3,417     (21,950 )   5,609     1,802  
Other Income (Expense):                  
Interest income 2,150     2,134     2,541     4,492     4,179  
Interest expense (11,676 )   (10,304 )   (9,912 )   (9,955 )   (10,258 )
Debt extinguishment gains (losses), net (97 )       (211 )   557     1,615  
Marketable security gains (losses), net (21,674 )   20,836     20,300     (9,484 )   (21,459 )
Derivative gains (losses), net 16,897     2,830     (10,604 )   (862 )   (2,574 )
Foreign currency gains (losses), net (1,470 )   1,399     (1,368 )   418     797  
Other, net 424     (420 )   (5,606 )   (5,461 )   (7,652 )
  (15,446 )   16,475     (4,860 )   (20,295 )   (35,352 )
Income (Loss) from Continuing Operations Before Income Tax Expense (Benefit) and Equity in Earnings (Losses) of 50% or Less Owned Companies (6,453 )   19,892     (26,810 )   (14,686 )   (33,550 )
Income Tax Expense (Benefit) (3,664 )   3,896     (6,804 )   (7,164 )   (13,633 )
Income (Loss) from Continuing Operations Before Equity in Earnings (Losses) of 50% or Less Owned Companies (2,789 )   15,996     (20,006 )   (7,522 )   (19,917 )
Equity in Earnings (Losses) of 50% or Less Owned Companies, Net of Tax 2,333     108     (13,871 )   (1,112 )   (3,847 )
Net Income (Loss) from Continuing Operations (456 )   16,104     (33,877 )   (8,634 )   (23,764 )
Loss from Discontinued Operations, Net of Tax (28,629 )   (5,448 )   (56,412 )   (25,392 )   (27,169 )
Net Income (Loss) (29,085 )   10,656     (90,289 )   (34,026 )   (50,933 )
Net Income attributable to Noncontrolling Interests in Subsidiaries 3,723     6,573     3,460     5,777     4,226  
Net Income (Loss) attributable to SEACOR Holdings Inc. $ (32,808 )   $ 4,083     $ (93,749 )   $ (39,803 )   $ (55,159 )
Basic Earnings (Loss) Per Common Share of SEACOR Holdings Inc.:                  
Continuing operations $ (0.39 )   $ 0.57     $ (2.11 )   $ (0.82 )   $ (1.61 )
Discontinued operations (1.52 )   (0.33 )   (3.41 )   (1.53 )   (1.65 )
  $ (1.91 )   $ 0.24     $ (5.52 )   $ (2.35 )   $ (3.26 )
Diluted Earnings (Loss) Per Common Share of SEACOR Holdings Inc.:                  
Continuing operations $ (0.39 )   $ 0.56     $ (2.11 )   $ (0.82 )   $ (1.61 )
Discontinued operations (1.52 )   (0.32 )   (3.41 )   (1.53 )   (1.65 )
  $ (1.91 )   $ 0.24     $ (5.52 )   $ (2.35 )   $ (3.26 )
Weighted Average Common Shares of Outstanding:                  
Basic 17,208     17,074     16,969     16,944     16,929  
Diluted 17,208     17,364     16,969     16,944     16,929  
Common Shares Outstanding at Period End 17,587     17,406     17,401     17,336     17,321  
                   
OIBDA(1) $ 26,462     $ 20,136     $ (5,390 )   $ 21,473     $ 16,845  
______________________                                      
(1) Non-GAAP Financial Measure.  The Company, from time to time, discloses and discusses OIBDA, a non-GAAP financial measure, in its public releases and other filings with the Securities and Exchange Commission.  The Company defines OIBDA as operating income (loss) plus depreciation and amortization.  The Company’s measure of OIBDA may not be comparable to similarly titled measures presented by other companies.  Other companies may calculate OIBDA differently than the Company, which may limit its usefulness as a comparative measure.  In addition, this measurement does not necessarily represent funds available for discretionary use and is not a measure of the Company’s ability to fund its cash needs.  OIBDA is a financial metric used by management (i) as a supplemental internal measure for planning and forecasting overall expectations and for evaluating actual results against such expectations; (ii) as a criteria for annual incentive bonuses paid to Company officers and other shore-based employees; and (iii) to compare to the OIBDA of other companies when evaluating potential acquisitions.
                                       

SEACOR HOLDINGS INC.
SEGMENT INFORMATION
(in thousands, unaudited)
  Three Months Ended
  Jun. 30, 2017   Mar. 31, 2017   Dec. 31, 2016   Sep. 30, 2016   Jun. 30, 2016
Inland River Services                  
Operating Revenues $ 37,644     $ 42,669     $ 53,021     $ 41,094     $ 33,814  
Costs and Expenses:                  
Operating 31,902     32,569     35,400     31,496     27,446  
Administrative and general 4,725     3,792     2,945     3,982     3,777  
Depreciation and amortization 6,483     6,592     6,628     6,308     6,254  
  43,110     42,953     44,973     41,786     37,477  
Gains (Losses) on Asset Dispositions and Impairments, Net 5,891     233     605     (597 )   2,580  
Operating Income (Loss) 425     (51 )   8,653     (1,289 )   (1,083 )
Other Income (Expense):                  
Foreign currency gains (losses), net (1,630 )   1,368     (1,143 )   410     1,018  
Other, net         1     (1 )   (4 )
Equity in Losses of 50% or Less Owned Companies, Net of Tax (1,264 )   (2,378 )   (11,318 )   (171 )   (1,677 )
Segment Loss(1) $ (2,469 )   $ (1,061 )   $ (3,807 )   $ (1,051 )   $ (1,746 )
                   
OIBDA(2) $ 6,908     $ 6,541     $ 15,281     $ 5,019     $ 5,171  
                   
Shipping Services                  
Operating Revenues $ 72,023     $ 67,639     $ 59,618     $ 57,350     $ 55,620  
Costs and Expenses:                  
Operating 33,850     37,354     36,586     28,542     30,269  
Administrative and general 8,028     7,088     6,895     6,675     7,337  
Depreciation and amortization 10,115     9,161     8,969     8,216     7,415  
  51,993     53,603     52,450     43,433     45,021  
Gains (Losses) on Asset Dispositions and Impairments, Net 6     (421 )   408     3     6  
Operating Income 20,036     13,615     7,576     13,920     10,605  
Other Income (Expense):                  
Foreign currency gains (losses), net 8     (5 )   (6 )   (3 )   (6 )
Other, net 421     (362 )   237     (5,534 )   (928 )
Equity in Earnings (Losses) of 50% or Less Owned Companies, Net of Tax 5,621     1,036     (2,581 )   (551 )   (1,591 )
Segment Profit(1) $ 26,086     $ 14,284     $ 5,226     $ 7,832     $ 8,080  
                   
OIBDA(2) $ 30,151     $ 22,776     $ 16,545     $ 22,136     $ 18,020  
Drydocking expenditures for U.S.-flag product tankers
(included in operating costs and expenses)
$     $ 94     $ 4,506     $ 95     $ 62  
Out-of-service days for drydockings of U.S.-flag product tankers         45          
                             

SEACOR HOLDINGS INC.
SEGMENT INFORMATION (continued)
(in thousands, unaudited)
  Three Months Ended
  Jun. 30, 2017   Mar. 31, 2017   Dec. 31, 2016   Sep. 30, 2016   Jun. 30, 2016
Witt O’Brien’s and Other                  
Operating Revenues $ 6,177     $ 8,124     $ 13,572     $ 11,146     $ 10,261  
Costs and Expenses:                  
Operating 4,043     5,372     9,711     6,618     6,427  
Administrative and general 2,687     3,373     5,510     3,833     3,649  
Depreciation and amortization 205     202     204     432     448  
  6,935     8,947     15,425     10,883     10,524  
Gains (Losses) on Asset Dispositions and Impairments, Net         (29,586 )   1      
Operating Income (Loss) (758 )   (823 )   (31,439 )   264     (263 )
Other Income (Expense):                  
Foreign currency gains (losses), net 23     10     (57 )   (25 )   (73 )
Other, net     (300 )   (5,885 )       (6,723 )
Equity in Earnings (Losses) of 50% or Less Owned Companies, Net of Tax (2,024 )   1,450     28     (390 )   (579 )
Segment Profit (Loss)(1) $ (2,759 )   $ 337     $ (37,353 )   $ (151 )   $ (7,638 )
                   
Corporate and Eliminations                  
Operating Revenues $ (53 )   $ (18 )   $ (15 )   $ (20 )   $ (48 )
Costs and Expenses:                  
Operating (109 )   (83 )   (78 )   (83 )   (115 )
Administrative and general 10,100     8,625     6,044     6,441     6,598  
Depreciation and amortization 666     764     759     908     926  
  10,657     9,306     6,725     7,266     7,409  
Operating Loss $ (10,710 )   $ (9,324 )   $ (6,740 )   $ (7,286 )   $ (7,457 )
Other Income (Expense):                  
Derivative gains (losses), net $ 16,897     $ 2,830     $ (10,604 )   $ (862 )   $ (2,574 )
Foreign currency gains (losses), net 129     26     (162 )   36     (142 )
Other, net 3     242     41     74     3  
______________________                            
(1) Includes amounts attributable to both SEACOR and noncontrolling interests.
(2) Non-GAAP Financial Measure.  The Company, from time to time, discloses and discusses OIBDA, a non-GAAP financial measure, for certain of its operating segments in its public releases and other filings with the Securities and Exchange Commission.  The Company defines OIBDA as operating income (loss) for the applicable segment plus depreciation and amortization.  The Company’s measure of OIBDA may not be comparable to similarly titled measures presented by other companies.  Other companies may calculate OIBDA differently than the Company, which may limit its usefulness as a comparative measure.  In addition, this measurement does not necessarily represent funds available for discretionary use and is not a measure of the Company’s ability to fund its cash needs.  OIBDA is a financial metric used by management (i) as a supplemental internal measure for planning and forecasting overall expectations and for evaluating actual results against such expectations; (ii) as a criteria for annual incentive bonuses paid to Company officers and other shore-based employees; and (iii) to compare to the OIBDA of other companies when evaluating potential acquisitions.
                             

SEACOR HOLDINGS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, unaudited)
  Jun. 30, 2017   Mar. 31, 2017   Dec. 31, 2016   Sep. 30, 2016   Jun. 30, 2016
ASSETS                  
Current Assets:                  
Cash and cash equivalents $ 223,154     $ 207,545     $ 256,638     $ 315,960     $ 367,692  
Restricted cash 2,260     2,254     2,249     2,244     1,742  
Marketable securities 75,071     97,404     76,137     55,823     65,480  
Receivables:                  
Trade, net of allowance for doubtful accounts 59,772     77,358     105,494     75,540     55,635  
Other 35,704     54,918     38,629     12,508     18,433  
Inventories 2,444     3,051     2,582     3,222     2,722  
Prepaid expenses and other 4,814     4,614     3,707     6,663     6,378  
Discontinued operations 23,105     298,915     277,365     287,658     311,462  
Total current assets 426,324     746,059     762,801     759,618     829,544  
Property and Equipment:                  
Historical cost 1,340,400     1,336,719     1,178,556     1,018,370     1,008,437  
Accumulated depreciation (467,925 )   (460,623 )   (444,559 )   (434,049 )   (418,798 )
  872,475     876,096     733,997     584,321     589,639  
Construction in progress 133,537     139,782     246,010     337,449     296,721  
Net property and equipment 1,006,012     1,015,878     980,007     921,770     886,360  
Investments, at Equity, and Advances to 50% or Less Owned Companies 174,106     182,395     175,461     198,052     195,352  
Construction Reserve Funds 65,429     64,478     75,753     99,966     104,983  
Goodwill 32,749     32,787     32,758     52,403     52,394  
Intangible Assets, Net 18,931     19,519     20,078     23,496     24,116  
Other Assets 17,739     17,869     17,189     21,599     19,206  
Discontinued Operations 32,595     875,993     798,274     877,229     889,362  
  $ 1,773,885     $ 2,954,978     $ 2,862,321     $ 2,954,133     $ 3,001,317  
                   
LIABILITIES AND EQUITY                  
Current Liabilities:                  
Current portion of long-term debt $ 125,655     $ 168,267     $ 163,202     $ 7,877     $ 4,058  
Accounts payable and accrued expenses 32,437     36,524     59,563     37,397     24,647  
Other current liabilities 49,602     58,833     62,164     55,195     52,514  
Discontinued operations 6,324     270,796     85,020     94,115     97,867  
Total current liabilities 214,018     534,420     369,949     194,584     179,086  
Long-Term Debt 615,532     628,622     631,084     804,109     820,683  
Exchange Option Liability on Subsidiary Convertible Senior Notes     16,809     19,436     8,938     8,171  
Deferred Income Taxes 161,185     183,972     157,441     168,266     175,128  
Deferred Gains and Other Liabilities 97,245     92,897     98,098     103,711     107,491  
Discontinued Operations 7,681     271,389     390,045     393,043     397,564  
Total liabilities 1,095,661     1,728,109     1,666,053     1,672,651     1,688,123  
Equity:                  
SEACOR Holdings Inc. stockholders’ equity:                  
Preferred stock                  
Common stock 382     380     379     379     379  
Additional paid-in capital 1,547,936     1,527,460     1,518,635     1,512,209     1,510,623  
Retained earnings 360,139     914,806     910,723     1,004,472     1,044,275  
Shares held in treasury, at cost (1,364,273 )   (1,364,172 )   (1,357,331 )   (1,357,331 )   (1,357,876 )
Accumulated other comprehensive loss, net of tax (545 )   (11,024 )   (11,514 )   (10,471 )   (10,810 )
  543,639     1,067,450     1,060,892     1,149,258     1,186,591  
Noncontrolling interests in subsidiaries 134,585     159,419     135,376     132,224     126,603  
Total equity 678,224     1,226,869     1,196,268     1,281,482     1,313,194  
  $ 1,773,885     $ 2,954,978     $ 2,862,321     $ 2,954,133     $ 3,001,317  
                                       

SEACOR HOLDINGS INC.
FLEET COUNTS
(unaudited)
  Jun. 30,
2017
  Mar. 31,
2017
  Dec. 31,
2016
  Sep. 30,
2016
  Jun. 30,
2016
Inland River Services                  
Dry-cargo barges 1,443     1,443     1,443     1,405     1,393  
Liquid tank barges:                  
10,000 barrel 18     18     18     18     18  
30,000 barrel 1                  
Specialty barges(1) 10     10     11     11     11  
Towboats:                  
4,000 hp - 6,600 hp 17     18     17     17     17  
3,300 hp - 3,900 hp 1     1     1     1     1  
Less than 3,200 hp 4     4     4     4     4  
Harbor boats:                  
1,100 hp - 2,000 hp 15     15     15     13     13  
Less than 1,100 hp 9     9     9     6     6  
  1,518     1,518     1,518     1,475     1,463  
                   
Shipping Services                  
Petroleum Transportation:                  
Product tankers - U.S.-flag 10     10     9     8     8  
Harbor Towing and Bunkering:                  
Harbor tugs - U.S.-flag 23     23     23     24     24  
Harbor tugs - Foreign-flag 8     4     4     4     4  
Offshore tug - U.S.-flag 1     1     1     1     1  
Ocean liquid tank barges - U.S.-flag 5     5     5     5     5  
Ocean liquid tank barges - Foreign-flag 1                  
Liner and Short-sea Transportation:                  
RORO/deck barges - U.S.-flag 7     7     7     7     7  
Short-sea container/RORO - Foreign-flag 7     7     7     7     7  
Other:                  
Dry bulk articulated tug-barge - U.S.-flag     1     1     1     1  
  62     58     57     57     57  
                             
______________________                            
(1) Includes non-certificated 10,000 and 30,000 barrel inland river liquid tank barges.
                             

SEACOR HOLDINGS INC.
EXPECTED FLEET DELIVERIES
AS OF JUNE 30, 2017
(unaudited)
  2017   2018    
  Q3   Q4   Q1   Q2   Q3   Q4   Total
Shipping Services                          
Articulated tug-barge - U.S.-flag 1                         1  
Harbor tugs - U.S.-flag     1     1                 2  
                           
Inland River Services                          
Towboats:                          
4,000 hp - 6,600 hp 2                         2  
                                         

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Source: SEACOR HOLDINGS INC.