FORT LAUDERDALE, FL — (Marketwired) — 07/30/13 — SEACOR Holdings Inc. (NYSE: CKH) today announced its results for its second quarter ended June 30, 2013. For the quarter ended June 30, 2013, net income attributable to SEACOR Holdings Inc. was $19.3 million, or $0.91 per diluted share. For the six months ended June 30, 2013, net income attributable to SEACOR Holdings Inc. was $8.4 million, or $0.42 per diluted share.
For the preceding quarter ended March 31, 2013, the Company reported a net loss attributable to SEACOR Holdings Inc. of $10.9 million, or $0.55 per diluted share.
A comparison of results for the quarter ended June 30, 2013 with the preceding quarter ended March 31, 2013 is included in „Highlights for the Quarter“ discussion below.
For the quarter ended June 30, 2012, net income attributable to SEACOR Holdings Inc. was $11.2 million, or $0.54 per diluted share, including income from continuing operations of $6.4 million, or $0.31 per diluted share. For the six months ended June 30, 2012, net income attributable to SEACOR Holdings Inc. was $47.7 million, or $2.29 per diluted share, including income from continuing operations of $27.7 million, or $1.33 per diluted share.
– Operating income was $18.3 million on operating revenues of $138.7 million compared with operating income of $5.2 million on operating revenues of $124.0 million in the preceding quarter.
In the U.S. Gulf of Mexico, operating revenues were $2.3 million higher in the second quarter. Time charter revenues for the Company-s liftboat fleet were $5.4 million higher primarily due to the seasonal upturn in activity levels. Time charter revenues for the Company-s anchor handling towing supply vessels were $6.4 million lower primarily due to increased out-of-service days for drydockings. Time charter revenues for other vessel classes were $2.9 million higher primarily due to improved utilization and higher day rates for the Company-s supply vessels. Utilization in the U.S. Gulf of Mexico was 78.6% compared with 73.7% in the preceding quarter and average day rates increased from $15,119 per day to $15,267 per day. As of June 30, 2013, the Company had no vessels cold-stacked in the U.S. Gulf of Mexico.
In International regions, excluding the contribution of the wind farm utility vessels, operating revenues were $11.0 million higher in the second quarter. In Mexico, Central and South America, time charter revenues were $5.5 million higher primarily due to the commencement of contracts for three vessels mobilized from the U.S. Gulf of Mexico and were $3.3 million higher primarily due to reduced drydocking activity and improved spot market conditions in Brazil. In Asia, time charter revenues were $1.9 million higher due to the commencement of a term charter in Sakhalin. In other international regions, time charter revenues were lower primarily due to increased drydocking activity in West Africa. Utilization was 85.0% compared with 83.2% in the preceding quarter and average day rates increased from $10,942 per day to $12,177 per day.
Operating expenses were $7.6 million higher in the second quarter primarily due to vessels mobilizing between geographic regions, a general increase in activity levels and increased drydocking expenses. During the second quarter, drydocking costs were $14.8 million compared with $11.2 million in the preceding quarter. The number of out-of-service days attributable to drydockings was 994 days compared with 645 days in the preceding quarter.
In the second quarter, the total number of days available for charter for the Company-s fleet, excluding wind farm utility vessels, decreased by 70 days, or 1% primarily due to net fleet dispositions. Overall utilization, excluding wind farm utility vessels, increased from 79.0% to 82.0% and overall average day rates, excluding wind farm utility vessels, increased by 6% from $12,878 per day to $13,588 per day. Time charter operating data by vessel class is presented in the table included herein.
During the second quarter, the Company sold six offshore support vessels and other equipment for net proceeds of $14.7 million and gains of $7.9 million. During the preceding quarter, the Company sold two offshore support vessels and other equipment for net proceeds of $60.6 million and gains of $2.3 million.
During the second quarter, the Company acquired a 100% controlling interest in its C-Lift joint venture through the acquisition of its partner-s 50% interest and recognized a $4.2 million gain, net of tax, included in equity in earnings of 50% or less owned companies upon marking its investment to fair value.
– Operating income was $5.5 million on operating revenues of $47.4 million compared with operating income of $3.3 million on operating revenues of $50.1 million in the preceding quarter. Second quarter results included $4.3 million of gains on asset dispositions compared with $0.7 million in gains in the preceding quarter. Operating results for the pooled hopper barge fleet were lower in the second quarter primarily due to difficult river operating conditions combined with continuing weak demand for barge freight. Operating results for the Company-s fleeting operation improved primarily due to the impact of the opening of the Upper Mississippi and increased traffic through the Port of St. Louis. Operating results for the Company-s terminal operations improved primarily due to higher throughput volumes of crude oil at the Company-s Gateway terminal in Sauget, Illinois.
– Operating income was $4.6 million on operating revenues of $48.1 million compared with operating income of $3.8 million on operating revenues of $46.5 million in the preceding quarter. Operating results for petroleum transportation were $2.2 million lower in the second quarter primarily due to more days out-of-service for drydocking and higher drydocking expenses partially offset by an increase in time charter rates for two U.S.-flag product tankers. Operating results for harbor towing and bunkering were $2.7 million higher in the second quarter primarily due to an impairment charge of $3.0 million for two harbor tugs in the preceding quarter. Operating results for short-sea and liner transportation were $0.7 million higher primarily due to increased cargo shipping demand. Equity in losses were lower in the second quarter primarily due to improved results from the Company-s Jones Act liner transportation joint venture.
– Ethanol and Industrial Alcohol reported segment profit of $0.5 million on operating revenues of $61.4 million compared with a segment loss of $3.3 million on operating revenues of $32.8 million in the preceding quarter. The improvement in segment profit was primarily due to higher fuel ethanol margins.
– Other reported a segment profit of $0.1 million during the second quarter. In the preceding quarter, segment profit of $2.4 million was primarily due to a gain on the sale of real property.
– As of June 30, 2013, the Company-s unfunded capital commitments were $150.1 million and included: 17 offshore support vessels for $128.2 million; two inland river tank barges for $2.9 million; five inland river towboats for $10.9 million; one U.S.-flag harbor tug for $1.6 million; and other equipment and improvements for $6.5 million. Of these commitments, $55.6 million is payable during 2013 with the balance payable through 2015. These unfunded capital commitments exclude $139.4 million related to two Liquefied Petroleum Gas tankers (Very Large Gas Carriers, otherwise known as „VLGC-s“) that the Company-s Shipping Services business segment committed to construct during the second quarter. Subsequent to June 30, 2013, the Company contributed $42.1 million in net cash and other consideration valued a $14.9 million that included certain progress payments made toward the construction of the two VLGC-s, the construction contracts for the VLGC-s and the related options to construct additional VLGC-s to Dorian LPG Ltd. in exchange for a noncontrolling ownership interest.
As of June 30, 2013, the Company held balances of cash, cash equivalents, restricted cash, marketable securities, construction reserve funds and Title XI reserve funds totaling $589.2 million.
SEACOR is a global provider of equipment and services primarily supporting the offshore oil and gas and marine transportation industries. SEACOR offers customers a diversified suite of services including offshore marine, inland river and shipping. SEACOR is focused on providing highly responsive local service combined with the highest safety standards, innovative technology, modern, efficient equipment and dedicated professional employees. 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 decreased demand and loss of revenues as a result of U.S. government implemented moratoriums directing operators to cease certain drilling activities and any extension of such moratoriums (the „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 Moratoriums, 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, including the Company-s involvement in 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, changes in foreign and domestic oil and gas exploration and production activity, safety record requirements related to Offshore Marine Services and 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, the dependence of Offshore Marine Services and Shipping Services on several 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 Offshore Marine Services, 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 in Inland River Services- operations, sudden and unexpected changes in commodity prices, futures and options, global weather conditions, political instability, changes in currency exchanges rates, and product availability in agriculture commodity trading and logistics activities, adequacy of insurance coverage, 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. In addition, these statements constitute the Company-s cautionary statements under the Private Securities Litigation Reform Act of 1995. 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 Quarterly Reports on Form 10-Q and Current Reports on Form 8-K (if any).
For additional information, contact Molly Hottinger at (954) 627-5278 or visit SEACOR-s website at .
Molly Hottinger (954) 627-5278
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