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SEACOR SMIT Announces First Quarter Results

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HOUSTON--(BUSINESS WIRE)--April 25, 2003--SEACOR SMIT Inc. (NYSE:CKH) announced net earnings for the first quarter ended March 31, 2003 of $4,344,000, or $0.22 per diluted share, on operating revenues of $96,860,000. In the comparable quarter ended March 31, 2002, SEACOR earned $11,406,000, or $0.55 per diluted share, on operating revenues of $103,643,000.

Net earnings in the immediately preceding quarter ended December 31, 2002 were $1,638,000, or $0.08 per diluted share, on operating revenues of $99,708,000.

The financial results for the first quarter ended March 31, 2003 as compared to the immediately preceding quarter ended December 31, 2002 were impacted, on a pre-tax basis, by a variety of factors highlighted below:

-- Decreased vessel utilization and rates per day worked. Lower utilization and rates per day worked resulted in an approximate $7.9 million decline in operating revenues.

-- Change in fleet size and composition. Net vessel dispositions resulted in a $0.5 million decline in operating revenues.

-- Decreased vessel operating expenses. Reduced utilization and lower engine repair costs resulted in a $5.6 million decline in operating expenses.

-- Decreased administrative expenses. Excluding expenses associated with Tex-Air Helicopters, Inc. ("Tex-Air"), a company acquired on December 31, 2002, administrative expenses decreased $0.9 million largely due to lower performance based compensation costs. Included in the current quarter was severance benefit expense of $0.3 million.

-- Offshore aviation business. The acquisition of Tex-Air increased operating revenues and operating expenses by $5.1 million and $4.5 million, respectively.

-- Inland river business. Operating income earned by the Company's inland river business segment ("SCF Marine") declined $0.7 million due primarily to seasonality. SCF Marine took delivery of thirty-one newly constructed barges during the quarter.

-- Environmental service business. The Company's environmental service segment incurred an operating loss of $0.4 million in the first quarter as compared to earning operating income of $0.2 million in the fourth quarter. The decline was due to reduced spill response and related activities.

-- Debt extinguishment expenses. The write-off of unamortized deferred financing costs and repayment premium associated with the redemption of the Company's 5 3/8% Notes totaled $1.1 million.

-- Increased income from equipment sales. The sale of eight vessels contributed to an income increase of $2.1 million.

-- Improved results from derivative transactions. The mark-to-market accounting of certain costless collar transactions and other derivative activities increased income by $4.2 million.

-- Increased gains from the sale of marketable securities. Gains from the sale of marketable securities, reported in "Other, net," increased $1.7 million.

Overall operating revenues decreased $2,848,000, or 2.9%, from the fourth quarter. Reduced vessel utilization and rates per day worked and the effect of the Tex-Air acquisition, as previously described, were the most significant factors impacting operating revenues. Demand for vessels in the U.S. Gulf of Mexico further declined during the first quarter of 2003 due to low levels of exploration activities. All U.S. vessel classes worked fewer days, and a large anchor handling towing supply vessel experienced downtime due to major repairs. Rates per day worked were lower in the U.S. for anchor handling towing supply and supply and towing supply vessels. Utilization and rates per day worked for North Sea vessels also declined between quarters. Two large North Sea anchor handling towing supply vessels were sold in the first quarter.

Overall fleet utilization declined from 76.8% in the fourth quarter to 76.2% in the current period. An overall improvement in anchor handling towing supply, crew, and mini-supply vessel classes was offset by a decline in supply and towing supply, standby safety, and utility vessel classes. At March 31, 2003, the Company had 35 vessels out of service: 17 utility, 9 crew, 5 supply, and one each of the anchor handling towing supply, standby safety, mini-supply, and geophysical classes.

The Company's offshore marine fleet declined from 301 vessels at the end of the prior quarter to 288 at March 31, 2003. Eight vessels were sold, one of which was acquired by a joint venture, and the Company took delivery of a new crew vessel. One vessel chartered-in by the Company was redelivered, and joint ventures sold or redelivered 3 vessels. At the beginning of the quarter, the Company retired 3 additional utility vessels from service.

The Company's inland river barge fleet increased by 31 units in the current quarter, but operating revenues decreased $155,000 to $4,840,000, or 3.1%, from the fourth quarter due to lower seasonal freight rates. Operating income declined $696,000 to $884,000, or 44.1% from the prior quarter due to the reduction in revenue and higher administrative and general and depreciation expense.

Overall operating income declined $2,698,000, or 72.1%, from the fourth quarter due primarily to those factors as detailed above.

Net interest expense remained constant between quarters as lower interest income was offset by lower interest expense. In the first quarter, the Company retired $58,633,000 of debt; and following quarter end, additional debt was repaid, totaling (pound)7,500,000, or $11,712,000.

In order to partially hedge the fluctuation in market value for part of the Company's common stock position in ENSCO International Incorporated ("ENSCO") that resulted from the merger of Chiles Offshore Inc. and ENSCO, the Company entered into various transactions (commonly known as "costless collars") during 2002 with a major financial institution on 1,000,000 shares of ENSCO common stock. The effect of these transactions is that the Company will be guaranteed a minimum and maximum value per share of ENSCO, at expiration. The Company establishes the fair value of the costless collar at the end of each reporting period, and the change in value is reported as derivative income or loss. The change in the value of these costless collars increased derivative income between quarters by $5,334,000.

Equity interest in the earnings of 50% or less owned companies increased $249,000 between quarters. The Company's interest in the net losses of Globe Wireless, L.L.C., a marine telecommunications investment, totaled $353,000, or $0.02 per diluted share.

During the first quarter of 2003, the Company acquired a total of 403,990 shares of its common stock for treasury at an aggregate cost of $14,310,000. At March 31, 2003, cash and cash equivalents, marketable securities and construction reserve funds totaled $498,000,000. Long-term debt was $343,000,000.

SEACOR and its subsidiaries are engaged in the operation of a diversified fleet of offshore support vessels that service oil and gas exploration and development activities in the U.S. Gulf of Mexico, the North Sea, West Africa, Asia, Latin America and other international regions. Other business activities include environmental services, inland river operations and helicopter transportation services to the oil and gas industry mainly in the U.S. Gulf of Mexico.

This release includes "forward-looking statements" as described in the Private Securities Litigation Reform Act of 1995. Statements herein that describe the Company's expectations, strategic objectives, business prospects, anticipated economic performance and financial condition and other similar matters involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of results to differ materially from any future results, performance or achievements discussed or implied by such forward-looking statements. Such risks, uncertainties and other important factors include, among others: general economic and business conditions, the cyclical nature of our business, adequacy of insurance coverage, currency exchange fluctuations, changes in foreign political, military and economic conditions, the ongoing need to replace aging vessels, dependence of spill response revenue on the number and size of spills and upon continuing government regulation in this area and our ability to comply with such regulation and other governmental regulation, industry fleet capacity, changes in foreign and domestic oil and gas exploration and production activity, competition, regulatory initiatives, customer preferences, marine-related risks, effects of adverse weather conditions and seasonality on the Company's offshore aviation business, helicopter related risks, effects of adverse weather and river conditions and seasonality on inland river operations, the level of grain export volume, variability in freight rates for inland river barges and various other matters, many of which are beyond the Company's control and other factors. The words "estimate," "project," "intend," "believe," "plan" and similar expressions are intended to identify forward-looking statements. Forward-looking statements included in this release speak only as of the date of this release and SEACOR disclaims any obligation or undertaking to provide any updates or revisions to any forward-looking statement to reflect any change in our expectations or any change in events, conditions, or circumstances on which the forward-looking statement is based. The forward-looking statements in this release should be evaluated together with the many uncertainties that affect our businesses, particularly those mentioned under "Forward-Looking Statements" in Item 7 of our Form 10-K and SEACOR's periodic reporting on Form 10-Q and Form 8-K (if any), which we incorporate by reference.

For additional information, contact Randall Blank, Executive Vice President and Chief Financial Officer, at (281) 899-4800 or (212) 307-6633 or visit SEACOR's website at www.seacorsmit.com. SEACOR SMIT Inc. and Subsidiaries Condensed Consolidated Statements of Operations (in thousands, except share data, unaudited)

                                                 Three Months Ended
                                                     March 31,
                                              ------------------------
                                                   2003         2002
                                              ------------ -----------
Operating Revenues                           $     96,860 $   103,643
                                              ------------ -----------
Costs and Expenses:
   Operating expenses                              67,100      57,156
   Administrative and general                      14,079      12,360
   Depreciation and amortization                   14,636      13,876
                                              ------------ -----------
                                                   95,815      83,392
                                              ------------ -----------
Operating Income                                    1,045      20,251
                                              ------------ -----------
Other Income (Expense):
   Interest on debt                                (5,506)     (4,001)
   Interest income                                  2,556       1,867
   Debt extinguishment                             (1,125)          -
   Income from equipment sales or
    retirements, net                                5,147       2,299
   Derivative income (loss), net                    1,749        (772)
   Other, net                                       2,729      (4,325)
                                              ------------ -----------
                                                    5,550      (4,932)
                                              ------------ -----------
Income Before Income Taxes, Minority Interest
 and Equity in Earnings
   of 50% or Less Owned Companies                   6,595      15,319
Income Tax Expense                                  2,399       5,243
                                              ------------ -----------
Income Before Minority Interest and Equity in
 Earnings of 50% or Less
   Owned Companies                                  4,196      10,076
Minority Interest in Net Income of
 Subsidiaries                                         (98)        (93)
Equity in Earnings of 50% or Less Owned
 Companies                                            246       1,423
                                              ------------ -----------
Net Income                                   $      4,344 $    11,406
                                              ============ ===========

Basic Earnings Per Common Share              $       0.22 $      0.57
                                              ============ ===========

Diluted Earnings Per Common Share            $       0.22 $      0.55
                                              ============ ===========

Weighted Average Common Shares:
   Basic                                       19,775,194  20,039,130
   Diluted                                     20,362,120  21,350,345
Offshore Marine Fleet Operating Statistics
                                              Three Months Ended
                                                   March 31,
                                         -----------------------------
                                                  2003          2002
                                         -----------------------------
Rates per Day Worked - Worldwide ($):
 Supply and Towing Supply                         7,712         7,986
 Anchor Handling Towing Supply                   11,963        13,108
 Crew                                             3,158         3,293
 Standby Safety                                   6,537         5,404
 Utility                                          1,767         1,753
 Mini-Supply                                      3,102         2,737
 Geophysical, Freight and Other(1)                    -             -
Overall Utilization - Worldwide (%):
 Supply and Towing Supply                          79.9          88.8
 Anchor Handling Towing Supply                     82.6          87.2
 Crew                                              78.9          85.4
 Standby Safety                                    81.6          88.0
 Utility(2)                                        55.1          59.6
 Mini-Supply                                       86.8          85.4
 Geophysical, Freight and Other(1)                    -             -
    Overall Offshore Marine Fleet                  76.2          80.6
Fleet Composition at Period End:
 Supply and Towing Supply                            69            77
 Anchor Handling Towing Supply                       26            34
 Crew                                                92            95
 Standby Safety                                      26            31
 Utility(2)                                          41            49
 Mini-Supply                                         32            26
 Geophysical, Freight and Other                       2             3
                                         -----------------------------
    Total Offshore Marine Fleet                     288           315
                                         =============================
__________________________

 

(1) Vessels in this class were out of service during all reported periods.

(2) Statistics exclude vessels retired from service in the applicable periods - 16 utility vessels at March 31, 2003. Other Business Segments

                                          Three Months Ended
                                               March 31,
                                        -----------------------
                                              2003        2002
                                        -----------------------
Inland River Segment - No. of Barges:
 Owned                                          326        133
 Joint Ventured                                  11         11
 Managed                                        225        202
                                        -----------------------
    Total Barge Fleet                           562        346
                                        =======================
Offshore Aviation Segment: - No. of
 Helicopters:
 Single engine                                   31       n.a.
 Twin engine                                      4       n.a.
                                        -----------------------
    Total Helicopter Fleet                       35       n.a.
                                        =======================
 Total Flight Hours                           5,061       n.a.
                                        =======================
SEACOR SMIT Inc. and Subsidiaries Supplementary Financial and Operational Data (in thousands, except share and operational data, unaudited)
                                             Quarter Ended
                                 -------------------------------------
                                   Mar. 31,     Dec. 31,     Sep. 30,
Income Statement:                    2003        2002        2002 (1)
                                 ----------- ------------- -----------
Operating Revenues              $    96,860 $      99,708 $   102,137
                                 ----------- ------------- -----------
Cost and Expenses:
 Operating Expenses                  67,100        67,306      64,297
 Administrative and General          14,079        14,668      13,434
 Depreciation and Amortization       14,636        13,991      14,381
                                 ----------- ------------- -----------
                                     95,815        95,965      92,112
                                 ----------- ------------- -----------
Operating Income                      1,045         3,743      10,025
Net Interest Expense                 (2,950)       (2,943)     (1,460)
Debt Extinguishment                  (1,125)            -      (2,339)
Income from Equipment Sales, net      5,147         3,077       2,321
Gain from Chiles Merger                   -             -      19,719
Derivative Income (Loss), net         1,749        (2,424)     (3,251)
Other, net                            2,729         1,486       5,584
                                 ----------- ------------- -----------
Income Before Income Taxes,
 Minority Interest
 and Equity Earnings                  6,595         2,939      30,599
Income Tax Expense                    2,399         1,266      10,368
                                 ----------- ------------- -----------
Income Before Minority
 Interest and
 Equity Earnings                      4,196         1,673      20,231
Minority Interest                       (98)          (32)        (6)
Equity Earnings                         246            (3)      1,070
                                 ----------- ------------- -----------
Net Income                      $     4,344 $       1,638 $    21,295
                                 =========== ============= ===========
Weighted Average Common Shares:
  Basic                          19,775,194  19,823,095(2) 20,051,743
  Diluted                        20,362,120  20,032,229(2) 21,186,390
Diluted Earnings Per Common
 Share                           $     0.22  $       0.08 $      1.02
Balance Sheet:
 Cash, Marketable Securities and
 Construction Reserve Funds      $  498,076  $    525,931 $   536,950
Total Assets                      1,398,641     1,487,107   1,467,396
Long-term Debt                      343,058       402,118     401,347
Stockholders' Equity                789,971       804,951     804,227
Rates Per Day Worked - Worldwide($):
 Supply and Towing Supply             7,712         7,834       8,153
 Anchor Handling Towing Supply       11,963        14,109      13,144
 Crew                                 3,158         3,148       3,200
 Standby Safety                       6,537         6,288       6,268
 Utility                              1,767         1,762       1,761
 Mini-Supply                          3,102         2,983       2,918
 Geophysical, Freight 
  and Other (3)                          -             -           -
Overall Utilization - Worldwide
 (%):(4)
 Supply and Towing Supply              79.9          85.7        88.9
 Anchor Handling Towing Supply         82.6          73.1        72.9
 Crew                                  78.9          78.3        76.3
 Standby Safety                        81.6          88.5        88.2
 Utility                               55.1          58.0        62.4
 Mini-Supply                           86.8          86.2        90.0
Geophysical, Freight 
 and Other (3)                           -             -           -
   Overall Offshore Marine Fleet       76.2          76.8        77.7
Fleet Composition at Period
 End:(4)
 Supply and Towing Supply                69            71          69
 Anchor Handling Towing Supply           26            28          30
 Crew                                    92            96          95
 Standby Safety                          26            26          28
 Utility                                 41            45          48
 Mini-Supply                             32            33          28
 Geophysical, Freight and Other           2             2           2
                                 ----------- ------------- -----------
   Total Offshore Marine Fleet          288           301         300
                                 =========== ============= ===========


                                                   Quarter Ended
                                              ------------------------
                                                 Jun. 30,    Mar. 31,
Income Statement:                                  2002        2002
                                               ----------- -----------
Operating Revenues                            $    97,670 $   103,643
                                               ----------- -----------
Cost and Expenses:
 Operating Expenses                                61,133      57,156
 Administrative and General                        12,803      12,360
 Depreciation and Amortization                     13,996      13,876
                                               ----------- -----------
                                                   87,932      83,392
                                               ----------- -----------
Operating Income                                    9,738      20,251
Net Interest Expense                               (1,694)     (2,134)
Debt Extinguishment                                     -           -
Income from Equipment Sales, net                      938       2,299
Gain from Chiles Merger                                 -           -
Derivative Income (Loss), net                       1,404        (772)
Other, net                                          6,898      (4,325)
                                               ----------- -----------
Income Before Income Taxes,
 Minority Interest
 and Equity Earnings                               17,284      15,319
Income Tax Expense                                  6,156       5,243
                                               ----------- -----------
Income Before Minority
 Interest and
 Equity Earnings                                   11,128      10,076
Minority Interest                                     (95)        (93)
Equity Earnings                                     1,215       1,423
                                               ----------- -----------
Net Income                                    $    12,248 $    11,406
                                               =========== ===========
Weighted Average Common Shares:
  Basic                                        20,078,231  20,039,130
  Diluted                                      21,393,472  21,350,345
Diluted Earnings Per Common Share             $      0.59 $      0.55
Balance Sheet:
 Cash, Marketable Securities and
  Construction Reserve Funds                  $   260,321 $   264,305
 Total Assets                                   1,293,455   1,283,952
 Long-term Debt                                   257,383     256,572
 Stockholders' Equity                             784,127     765,979
Rates Per Day Worked - Worldwide ($):
 Supply and Towing Supply                           7,964       7,986
 Anchor Handling Towing Supply                     12,103      13,108
 Crew                                               3,224       3,293
 Standby Safety                                     5,726       5,404
 Utility                                            1,744       1,753
 Mini-Supply                                        2,749       2,737
 Geophysical, Freight and Other (3)                     -           -
Overall Utilization - Worldwide (%):(4)
 Supply and Towing Supply                            89.0        88.8
 Anchor Handling Towing Supply                       79.1        87.2
 Crew                                                81.8        85.4
 Standby Safety                                      84.8        88.0
 Utility                                             62.3        59.6
 Mini-Supply                                         85.9        85.4
 Geophysical, Freight and Other (3)                     -           -
  Overall Offshore Marine Fleet                      79.1        80.6
Fleet Composition at Period End:(4)
 Supply and Towing Supply                              74          77
 Anchor Handling Towing Supply                         32          34
 Crew                                                  95          95
 Standby Safety                                        28          31
 Utility                                               48          49
 Mini-Supply                                           26          26
 Geophysical, Freight and Other                         3           3
                                               ----------- -----------
  Total Offshore Marine Fleet                         306         315
                                               =========== ===========
____________________

 

(1) A previously reported extraordinary loss resulting from the extinguishment of debt has been reclassified to operating results pursuant to Statement of Financial Accounting Standards No. 145.

(2) The assumed conversion of the Company's convertible notes into shares of common stock has been excluded from the computation of diluted earnings per share in the three month period ended December 31, 2002 as the effect was antidilutive. In the same period, such shares were also excluded from the calculation of diluted weighted average common shares outstanding.

(3) Vessels in this class were out of service during all reported periods.

(4) Statistics exclude vessels retired from service in the applicable periods - 16 utility vessels at March 31, 2003.

Contacts

SEACOR SMIT Inc.
Randall Blank, 281/899-4800 or 212/307-6633