ý | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 47-2564547 | |
(State or Other Jurisdiction of Incorporation or Organization) | (IRS Employer Identification No.) | |
7910 Main Street, 2nd Floor | ||
Houma, LA | 70360 | |
(Address of Principal Executive Offices) | (Zip Code) |
Large accelerated filer ¨ | Accelerated filer ¨ | Non-accelerated filer x (Do not check if a smaller reporting company) | Smaller reporting company ¨ | Emerging growth company x |
Part I. | |||
Item 1. | |||
Item 2. | |||
Item 3. | |||
Item 4. | |||
Part II. | |||
Item 1. | |||
Item 1A. | |||
Item 2. | |||
Item 3. | |||
Item 4. | |||
Item 5. | |||
Item 6. |
ITEM 1. | FINANCIAL STATEMENTS |
SEACOR MARINE HOLDINGS INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share data, unaudited) | |||||||
September 30, 2017 | December 31, 2016 | ||||||
ASSETS | |||||||
Current Assets: | |||||||
Cash and cash equivalents | $ | 130,357 | $ | 117,309 | |||
Restricted cash | 1,619 | 1,462 | |||||
Marketable securities | — | 40,139 | |||||
Receivables: | |||||||
Trade, net of allowance for doubtful accounts of $4,805 and $5,359 in 2017 and 2016, respectively | 54,124 | 44,830 | |||||
Due from SEACOR Holdings | — | 19,102 | |||||
Other | 8,942 | 21,316 | |||||
Inventories | 3,786 | 3,058 | |||||
Prepaid expenses and other | 3,364 | 3,349 | |||||
Total current assets | 202,192 | 250,565 | |||||
Property and Equipment: | |||||||
Historical cost | 1,204,409 | 958,759 | |||||
Accumulated depreciation | (558,919 | ) | (540,619 | ) | |||
645,490 | 418,140 | ||||||
Construction in progress | 60,597 | 123,801 | |||||
Net property and equipment | 706,087 | 541,941 | |||||
Investments, at Equity, and Advances to 50% or Less Owned Companies | 89,984 | 138,311 | |||||
Construction Reserve Funds | 45,455 | 78,209 | |||||
Other Assets | 6,213 | 6,093 | |||||
$ | 1,049,931 | $ | 1,015,119 | ||||
LIABILITIES AND EQUITY | |||||||
Current Liabilities: | |||||||
Current portion of long-term debt | $ | 30,858 | $ | 20,400 | |||
Accounts payable and accrued expenses | 23,487 | 25,969 | |||||
Due to SEACOR Holdings | 663 | — | |||||
Other current liabilities | 54,210 | 34,647 | |||||
Total current liabilities | 109,218 | 81,016 | |||||
Long-Term Debt | 285,869 | 217,805 | |||||
Conversion Option Liability on 3.75% Convertible Senior Notes | 14,135 | — | |||||
Deferred Income Taxes | 106,389 | 124,945 | |||||
Deferred Gains and Other Liabilities | 36,314 | 41,198 | |||||
Total liabilities | 551,925 | 464,964 | |||||
Equity: | |||||||
SEACOR Marine Holdings Inc. stockholders’ equity: | |||||||
Preferred stock, $.01 par value, 10,000,000 shares authorized; none issued nor outstanding | — | — | |||||
Common stock, $.01 par value, 60,000,000 shares authorized; 17,671,356 shares issued in 2017 and 2016 | 177 | 177 | |||||
Additional paid-in capital | 302,952 | 306,359 | |||||
Retained earnings | 187,550 | 249,412 | |||||
Accumulated other comprehensive loss, net of tax | (8,685 | ) | (11,337 | ) | |||
481,994 | 544,611 | ||||||
Noncontrolling interests in subsidiaries | 16,012 | 5,544 | |||||
Total equity | 498,006 | 550,155 | |||||
$ | 1,049,931 | $ | 1,015,119 |
SEACOR MARINE HOLDINGS INC. CONDENSED CONSOLIDATED STATEMENTS OF LOSS (in thousands, except share data, unaudited) | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Operating Revenues | $ | 47,813 | $ | 54,125 | $ | 124,440 | $ | 171,275 | |||||||
Costs and Expenses: | |||||||||||||||
Operating | 41,258 | 41,159 | 119,119 | 134,254 | |||||||||||
Administrative and general | 10,318 | 10,588 | 43,849 | 34,915 | |||||||||||
Depreciation and amortization | 15,622 | 14,213 | 42,758 | 44,305 | |||||||||||
67,198 | 65,960 | 205,726 | 213,474 | ||||||||||||
Losses on Asset Dispositions and Impairments, Net | (9,744 | ) | (29,233 | ) | (11,243 | ) | (49,970 | ) | |||||||
Operating Loss | (29,129 | ) | (41,068 | ) | (92,529 | ) | (92,169 | ) | |||||||
Other Income (Expense): | |||||||||||||||
Interest income | 354 | 973 | 1,479 | 3,371 | |||||||||||
Interest expense | (4,295 | ) | (2,512 | ) | (12,023 | ) | (7,455 | ) | |||||||
SEACOR Holdings management fees | — | (1,925 | ) | (3,208 | ) | (5,775 | ) | ||||||||
SEACOR Holdings guarantee fees | (21 | ) | (80 | ) | (172 | ) | (237 | ) | |||||||
Marketable security gains (losses), net | (698 | ) | 1,619 | 10,931 | (4,458 | ) | |||||||||
Derivative gains, net | 13,022 | 16 | 12,720 | 3,077 | |||||||||||
Foreign currency losses, net | (106 | ) | (1,084 | ) | (1,389 | ) | (3,463 | ) | |||||||
Other, net | — | 1 | (1 | ) | 266 | ||||||||||
8,256 | (2,992 | ) | 8,337 | (14,674 | ) | ||||||||||
Loss Before Income Tax Benefit and Equity in Earnings (Losses) of 50% or Less Owned Companies | (20,873 | ) | (44,060 | ) | (84,192 | ) | (106,843 | ) | |||||||
Income Tax Benefit | (5,823 | ) | (15,263 | ) | (23,045 | ) | (35,831 | ) | |||||||
Loss Before Equity in Earnings (Losses) of 50% or Less Owned Companies | (15,050 | ) | (28,797 | ) | (61,147 | ) | (71,012 | ) | |||||||
Equity in Earnings (Losses) of 50% or Less Owned Companies, Net of Tax | (7,306 | ) | 790 | (5,297 | ) | (364 | ) | ||||||||
Net Loss | (22,356 | ) | (28,007 | ) | (66,444 | ) | (71,376 | ) | |||||||
Net Loss attributable to Noncontrolling Interests in Subsidiaries | (1,881 | ) | (74 | ) | (4,582 | ) | (904 | ) | |||||||
Net Loss attributable to SEACOR Marine Holdings Inc. | $ | (20,475 | ) | $ | (27,933 | ) | $ | (61,862 | ) | $ | (70,472 | ) | |||
Basic Loss Per Common Share of SEACOR Marine Holdings Inc. | $ | (1.17 | ) | $ | (1.58 | ) | $ | (3.51 | ) | $ | (3.99 | ) | |||
Diluted Loss Per Common Share of SEACOR Marine Holdings Inc. | $ | (1.25 | ) | $ | (1.58 | ) | $ | (3.51 | ) | $ | (3.99 | ) | |||
Weighted Average Common Shares Outstanding: | |||||||||||||||
Basic | 17,550,663 | 17,671,356 | 17,617,420 | 17,671,356 | |||||||||||
Diluted | 21,621,163 | 17,671,356 | 17,617,420 | 17,671,356 |
SEACOR MARINE HOLDINGS INC. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (in thousands, unaudited) | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net Loss | $ | (22,356 | ) | $ | (28,007 | ) | $ | (66,444 | ) | $ | (71,376 | ) | |||
Other Comprehensive Income (Loss): | |||||||||||||||
Foreign currency translation gains (losses) | 1,433 | (1,355 | ) | 4,217 | (6,780 | ) | |||||||||
Reclassification of foreign currency translation losses to foreign currency losses, net | — | 74 | — | 74 | |||||||||||
Derivative gains (losses) on cash flow hedges | 91 | (189 | ) | (347 | ) | (3,803 | ) | ||||||||
Reclassification of derivative losses on cash flow hedges to interest expense | 32 | — | 81 | 9 | |||||||||||
Reclassification of derivative losses on cash flow hedges to equity in earnings of 50% or less owned companies | 49 | 772 | 384 | 2,067 | |||||||||||
1,605 | (698 | ) | 4,335 | (8,433 | ) | ||||||||||
Income tax (expense) benefit | (541 | ) | 192 | (1,428 | ) | 2,654 | |||||||||
1,064 | (506 | ) | 2,907 | (5,779 | ) | ||||||||||
Comprehensive Loss | (21,292 | ) | (28,513 | ) | (63,537 | ) | (77,155 | ) | |||||||
Comprehensive Loss attributable to Noncontrolling Interests in Subsidiaries | (1,822 | ) | (224 | ) | (4,327 | ) | (1,754 | ) | |||||||
Comprehensive Loss attributable to SEACOR Marine Holdings Inc. | $ | (19,470 | ) | $ | (28,289 | ) | $ | (59,210 | ) | $ | (75,401 | ) |
SEACOR MARINE HOLDINGS INC. CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (in thousands, unaudited) | |||||||||||||||||||||||
SEACOR Marine Holdings Inc. Stockholders’ Equity | Non- Controlling Interests In Subsidiaries | Total Equity | |||||||||||||||||||||
Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | ||||||||||||||||||||
December 31, 2016 | $ | 177 | $ | 306,359 | $ | 249,412 | $ | (11,337 | ) | $ | 5,544 | $ | 550,155 | ||||||||||
Distribution of SEACOR Marine restricted stock to Company personnel by SEACOR Holdings | — | (2,656 | ) | — | — | — | (2,656 | ) | |||||||||||||||
Amortization of share awards | — | 363 | — | — | — | 363 | |||||||||||||||||
Purchase of subsidiary shares from noncontrolling interests | — | (1,114 | ) | — | — | (2,579 | ) | (3,693 | ) | ||||||||||||||
Consolidation of 50% or less owned companies | — | — | — | — | 17,374 | 17,374 | |||||||||||||||||
Net loss | — | — | (61,862 | ) | — | (4,582 | ) | (66,444 | ) | ||||||||||||||
Other comprehensive income | — | — | — | 2,652 | 255 | 2,907 | |||||||||||||||||
Nine Months Ended September 30, 2017 | $ | 177 | $ | 302,952 | $ | 187,550 | $ | (8,685 | ) | $ | 16,012 | $ | 498,006 |
SEACOR MARINE HOLDINGS INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands, unaudited) | |||||||
Nine Months Ended September 30, | |||||||
2017 | 2016 | ||||||
Net Cash Provided By (Used In) Operating Activities | $ | 35,144 | $ | (16,498 | ) | ||
Cash Flows from Investing Activities: | |||||||
Purchases of property and equipment | (52,353 | ) | (82,806 | ) | |||
Cash settlements on derivative transactions, net | (369 | ) | (31 | ) | |||
Proceeds from disposition of property and equipment | 9,797 | 4,119 | |||||
Investments in and advances to 50% or less owned companies | (5,302 | ) | (8,202 | ) | |||
Return of investments and advances from 50% or less owned companies | 7,752 | — | |||||
Payments received on third party notes receivable, net | — | 504 | |||||
Net increase in restricted cash | (157 | ) | (1,120 | ) | |||
Net decrease in construction reserve funds | 32,754 | 76,716 | |||||
Cash assumed on consolidation of 50% or less owned companies | 1,943 | — | |||||
Business acquisitions, net of cash acquired | (9,751 | ) | — | ||||
Net cash used in investing activities | (15,686 | ) | (10,820 | ) | |||
Cash Flows from Financing Activities: | |||||||
Payments on long-term debt | (8,572 | ) | (25,125 | ) | |||
Proceeds from issuance of long-term debt, net of issue costs | 6,845 | 36,383 | |||||
Distribution of SEACOR Marine restricted stock to Company personnel by SEACOR Holdings | (2,656 | ) | — | ||||
Purchase of subsidiary shares from noncontrolling interests | (3,693 | ) | — | ||||
Distributions to noncontrolling interests | — | (205 | ) | ||||
Net cash provided by (used in) financing activities | (8,076 | ) | 11,053 | ||||
Effects of Exchange Rate Changes on Cash and Cash Equivalents | 1,666 | (1,500 | ) | ||||
Net Increase (Decrease) in Cash and Cash Equivalents | 13,048 | (17,765 | ) | ||||
Cash and Cash Equivalents, Beginning of Period | 117,309 | 150,242 | |||||
Cash and Cash Equivalents, End of Period | $ | 130,357 | $ | 132,477 |
1. | BASIS OF PRESENTATION AND ACCOUNTING POLICIES |
2017 | 2016 | ||||||
Balance at beginning of period | $ | 6,953 | $ | 6,953 | |||
Revenues deferred during the period | 3,147 | — | |||||
Balance at end of period | $ | 10,100 | $ | 6,953 |
Offshore Support Vessels: | |
Wind farm utility vessels | 10 |
All other offshore support vessels (excluding wind farm utility) | 20 |
2017 | 2016 | ||||||
Balance at beginning of period | $ | 33,910 | $ | 43,298 | |||
Amortization of deferred gains included in operating expenses as a reduction to leased-in equipment expense | (6,109 | ) | (6,149 | ) | |||
Amortization of deferred gains included in losses on asset dispositions and impairments, net | — | (36 | ) | ||||
Other | (364 | ) | (1,153 | ) | |||
Balance at end of period | $ | 27,437 | $ | 35,960 |
SEACOR Marine Holdings Inc. Stockholders’ Equity | Noncontrolling Interests | ||||||||||||||||||||||
Foreign Currency Translation Adjustments | Derivative Losses on Cash Flow Hedges, net | Total | Foreign Currency Translation Adjustments | Derivative Gains on Cash Flow Hedges, net | Other Comprehensive Income | ||||||||||||||||||
December 31, 2016 | $ | (11,413 | ) | $ | 76 | $ | (11,337 | ) | $ | (1,614 | ) | $ | (17 | ) | |||||||||
Other comprehensive income | 3,977 | 103 | 4,080 | 240 | 15 | $ | 4,335 | ||||||||||||||||
Income tax expense | (1,392 | ) | (36 | ) | (1,428 | ) | — | — | (1,428 | ) | |||||||||||||
Nine Months Ended September 30, 2017 | $ | (8,828 | ) | $ | 143 | $ | (8,685 | ) | $ | (1,374 | ) | $ | (2 | ) | $ | 2,907 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||
Net Loss attributable to SEACOR Marine | Average O/S Shares | Per Share | Net Loss Attributable to SEACOR Marine | Average O/S Shares | Per Share | ||||||||||||||||
2017 | |||||||||||||||||||||
Basic Weighted Average Common Shares Outstanding | $ | (20,475 | ) | 17,550,663 | $ | (1.17 | ) | $ | (61,862 | ) | 17,617,420 | $ | (3.51 | ) | |||||||
Effect of Dilutive Share Awards: | |||||||||||||||||||||
Options and Restricted Stock(1) | — | — | — | — | |||||||||||||||||
Convertible Notes(2)(3) | (6,610 | ) | 4,070,500 | — | — | ||||||||||||||||
Diluted Weighted Average Common Shares Outstanding | $ | (27,085 | ) | 21,621,163 | $ | (1.25 | ) | $ | (61,862 | ) | 17,617,420 | $ | (3.51 | ) | |||||||
2016 | |||||||||||||||||||||
Basic and Diluted Weighted Average Common Shares Outstanding | $ | (27,933 | ) | 17,671,356 | $ | (1.58 | ) | $ | (70,472 | ) | 17,671,356 | $ | (3.99 | ) |
(1) | For the three and nine months ended September 30, 2017, diluted loss per common share of SEACOR Marine excluded 120,693 of certain share awards as the effect of their inclusion in the computation would be anti-dilutive. |
(2) | For the three months ended September 30, 2017, adjusted net loss attributable to SEACOR Marine excluded interest expense on the 3.75% Convertible Senior Notes and derivative gains on the related conversion option liability. |
(3) | For the nine months ended September 30, 2017, diluted loss per common share of SEACOR Marine excluded 4,070,500 of common shares issuable pursuant to the 3.75% Convertible Senior Notes as the effect of their inclusion in the computation would be anti-dilutive. |
2. | BUSINESS ACQUISITIONS |
Trade and other receivables | 235 | ||
Other current assets | 4,148 | ||
Investments, at Equity, and Advances to 50% or Less Owned Companies | (15,700 | ) | |
Property and Equipment | 61,626 | ||
Accounts payable | 747 | ||
Other current liabilities | (76 | ) | |
Long-Term Debt | (41,186 | ) | |
Other | (43 | ) | |
Purchase price(1) | $ | 9,751 |
(1) | Purchase price is net of cash acquired totaling $5.9 million. |
3. | EQUIPMENT ACQUISITIONS AND DISPOSITIONS |
4. | INVESTMENTS, AT EQUITY, AND ADVANCES TO 50% OR LESS OWNED COMPANIES |
Cash | $ | 1,943 | |
Marketable securities | 785 | ||
Trade and other receivables | (291 | ) | |
Investments, at Equity, and Advances to 50% or Less Owned Companies | (19,374 | ) | |
Property and Equipment | 96,000 | ||
Accounts payable | 3,201 | ||
Other current liabilities | 1,153 | ||
Long-Term Debt | 58,335 | ||
Other Liabilities | (1,000 | ) | |
Noncontrolling interests in subsidiaries | 17,374 |
5. | LONG-TERM DEBT |
6. | DERIVATIVE INSTRUMENTS AND HEDGING STRATEGIES |
Derivative Asset(1) | Derivative Liability(2) | ||||||
Derivatives designated as hedging instruments: | |||||||
Forward currency exchange contracts (fair value hedges) | $ | — | $ | — | |||
Interest rate swap agreements (cash flow hedges) | 104 | 26 | |||||
Derivatives not designated as hedging instruments: | |||||||
Conversion option liability on 3.75% Convertible Senior Notes | — | 14,135 | |||||
Forward currency exchange, option and future contracts | 136 | — | |||||
Interest rate swap agreements | — | 363 | |||||
$ | 240 | $ | 14,524 |
(1) | Included in other receivables in the accompanying condensed consolidated balance sheets. |
(2) | Included in other current liabilities in the accompanying condensed consolidated balance sheets, except for the conversion option liability on the 3.75% Convertible Senior Notes. |
• | Windcat Workboats had two interest rate swap agreements maturing in 2021 that call for the Company to pay a fixed rate of interest of (0.03)% on the aggregate notional value of €15.0 million ($17.7 million) and receive a variable interest rate based on EURIBOR on the aggregate notional value. |
• | MexMar had five interest rate swap agreements with maturities in 2023 that call for MexMar to pay a fixed rate of interest ranging from 1.71% to 2.10% on the aggregate amortized notional value of $114.3 million and receive a variable interest rate based on LIBOR on the aggregate amortized notional value. |
• | Sea-Cat Crewzer II had an interest rate swap agreement maturing in 2019 that calls for the Company to pay a fixed rate of interest of 1.52% on the amortized notional value of $21.5 million and receive a variable interest rate based on LIBOR on the amortized notional value. |
• | Sea-Cat Crewzer had an interest rate swap agreement maturing in 2019 that calls for the Company to pay a fixed rate of interest of 1.52% on the amortized notional value of $19.0 million and receive a variable interest rate based on LIBOR on the amortized notional value. |
2017 | 2016 | ||||||
Conversion option liability on 3.75% Convertible Senior Notes | $ | 13,119 | $ | — | |||
Options on equities and equity indices | — | 3,095 | |||||
Forward currency exchange, option and future contracts | (78 | ) | — | ||||
Interest rate swap agreements | (321 | ) | (18 | ) | |||
$ | 12,720 | $ | 3,077 |
• | Falcon Global had an interest rate swap agreement maturing in 2022 that calls for the Company to pay a fixed interest rate of 2.06% on the amortized notional value of $57.8 million and receive a variable interest rate based on LIBOR on the amortized notional value. |
• | OSV Partners had two interest rate swap agreements with maturities in 2020 that call for OSV Partners to pay a fixed rate of interest ranging from 1.89% to 2.27% on the aggregate amortized notional value of $34.2 million and receive a variable interest rate based on LIBOR on the aggregate amortized notional value. |
• | Dynamic Offshore had an interest rate swap agreement maturing in 2018 that calls for Dynamic Offshore to pay a fixed interest rate of 1.30% on the amortized notional value of $66.7 million and receive a variable interest rate based on LIBOR on the amortized notional value. |
7. | FAIR VALUE MEASUREMENTS |
Level 1 | Level 2 | Level 3 | |||||||||
ASSETS | |||||||||||
Derivative instruments (included in other receivables) | $ | — | $ | 240 | $ | — | |||||
Construction reserve funds | 45,455 | — | — | ||||||||
LIABILITIES | |||||||||||
Derivative instruments (included in other current liabilities) | — | 389 | — | ||||||||
Conversion option liability on 3.75% Convertible Senior Notes | — | — | 14,135 |
Estimated Fair Value | |||||||||||||||
Carrying Amount | Level 1 | Level 2 | Level 3 | ||||||||||||
ASSETS | |||||||||||||||
Cash, cash equivalents and restricted cash | $ | 131,976 | $ | 131,976 | $ | — | $ | — | |||||||
Investments, at cost, in 50% or less owned companies (included in other assets) | 132 | see below | |||||||||||||
LIABILITIES | |||||||||||||||
Long-term debt, including current portion | $ | 316,727 | $ | — | $ | 297,227 | $ | — |
Level 1 | Level 2 | Level 3 | |||||||||
ASSETS | |||||||||||
Property and equipment: | |||||||||||
Fast support | $ | — | $ | 175 | $ | — | |||||
Specialty | — | 750 | — | ||||||||
Investments, at equity, and advances to 50% or less owned companies: | |||||||||||
Sea-Cat Crewzer and Sea-Cat Crewzer II | — | 15,700 | — | ||||||||
Falcon Global | — | — | 19,374 | ||||||||
Dynamic Offshore | — | 5,038 | — | ||||||||
Other | — | — | 910 |
8. | NONCONTROLLING INTERESTS IN SUBSIDIARIES |
Noncontrolling Interests | September 30, 2017 | December 31, 2016 | |||||||||
Falcon Global | 50% | $ | 12,872 | $ | — | ||||||
Windcat Workboats | 12.5% | 2,853 | 5,266 | ||||||||
Other | 1.8% | 287 | 278 | ||||||||
$ | 16,012 | $ | 5,544 |
10. | COMMITMENTS AND CONTINGENCIES |
Remainder of 2017 | $ | 5,195 | |
2018 | 40,932 | ||
2019 | 21,106 | ||
2020 | 1,645 | ||
$ | 68,878 |
United States (primarily Gulf of Mexico) $’000 | Africa (primarily West Africa) $’000 | Middle East and Asia $’000 | Brazil, Mexico, Central and South America $’000 | Europe (primarily North Sea) $’000 | Total $’000 | ||||||||||||
For the three months ended September 30, 2017 | |||||||||||||||||
Operating Revenues: | |||||||||||||||||
Time charter | 4,587 | 9,700 | 9,490 | 1,439 | 20,051 | 45,267 | |||||||||||
Bareboat charter | — | — | — | 1,168 | — | 1,168 | |||||||||||
Other marine services | 1,116 | (310 | ) | (341 | ) | 159 | 754 | 1,378 | |||||||||
5,703 | 9,390 | 9,149 | 2,766 | 20,805 | 47,813 | ||||||||||||
Direct Costs and Expenses: | |||||||||||||||||
Operating: | |||||||||||||||||
Personnel | 4,455 | 3,588 | 4,731 | 326 | 9,079 | 22,179 | |||||||||||
Repairs and maintenance | 1,289 | 1,324 | 2,309 | 110 | 2,378 | 7,410 | |||||||||||
Drydocking | 1,109 | 311 | (102 | ) | — | 961 | 2,279 | ||||||||||
Insurance and loss reserves | 598 | 157 | 363 | 75 | 203 | 1,396 | |||||||||||
Fuel, lubes and supplies | 249 | 693 | 1,115 | 33 | 790 | 2,880 | |||||||||||
Other | 123 | 704 | 1,192 | 69 | 190 | 2,278 | |||||||||||
7,823 | 6,777 | 9,608 | 613 | 13,601 | 38,422 | ||||||||||||
Direct Vessel Profit (Loss) | (2,120 | ) | 2,613 | (459 | ) | 2,153 | 7,204 | 9,391 | |||||||||
Other Costs and Expenses: | |||||||||||||||||
Operating: | |||||||||||||||||
Leased-in equipment | 1,870 | 966 | — | — | — | 2,836 | |||||||||||
Administrative and general | 10,318 | ||||||||||||||||
Depreciation and amortization | 5,224 | 2,456 | 4,320 | 1,025 | 2,597 | 15,622 | |||||||||||
28,776 | |||||||||||||||||
Losses on Asset Dispositions and Impairments, Net | (9,744 | ) | |||||||||||||||
Operating Loss | (29,129 | ) |
United States (primarily Gulf of Mexico) $’000 | Africa (primarily West Africa) $’000 | Middle East and Asia $’000 | Brazil, Mexico, Central and South America $’000 | Europe (primarily North Sea) $’000 | Total $’000 | ||||||||||||
For the nine months ended September 30, 2017 | |||||||||||||||||
Operating Revenues: | |||||||||||||||||
Time charter | 12,471 | 23,333 | 22,728 | 1,439 | 54,829 | 114,800 | |||||||||||
Bareboat charter | — | — | — | 3,467 | — | 3,467 | |||||||||||
Other marine services | 3,140 | 97 | 645 | 396 | 1,895 | 6,173 | |||||||||||
15,611 | 23,430 | 23,373 | 5,302 | 56,724 | 124,440 | ||||||||||||
Direct Costs and Expenses: | |||||||||||||||||
Operating: | |||||||||||||||||
Personnel | 11,768 | 9,624 | 12,001 | 487 | 25,667 | 59,547 | |||||||||||
Repairs and maintenance | 2,963 | 5,102 | 6,832 | 230 | 6,303 | 21,430 | |||||||||||
Drydocking | 1,992 | 2,051 | 414 | — | 3,140 | 7,597 | |||||||||||
Insurance and loss reserves | 2,608 | 696 | 1,062 | 86 | 629 | 5,081 | |||||||||||
Fuel, lubes and supplies | 1,104 | 1,956 | 2,547 | 60 | 2,745 | 8,412 | |||||||||||
Other | 246 | 2,221 | 3,718 | 73 | 677 | 6,935 | |||||||||||
20,681 | 21,650 | 26,574 | 936 | 39,161 | 109,002 | ||||||||||||
Direct Vessel Profit (Loss) | (5,070 | ) | 1,780 | (3,201 | ) | 4,366 | 17,563 | 15,438 | |||||||||
Other Costs and Expenses: | |||||||||||||||||
Operating: | |||||||||||||||||
Leased-in equipment | 6,286 | 2,905 | 862 | — | 64 | 10,117 | |||||||||||
Administrative and general | 43,849 | ||||||||||||||||
Depreciation and amortization | 16,573 | 6,105 | 10,826 | 2,474 | 6,780 | 42,758 | |||||||||||
96,724 | |||||||||||||||||
Losses on Asset Dispositions and Impairments, Net | (11,243 | ) | |||||||||||||||
Operating Loss | (92,529 | ) | |||||||||||||||
As of September 30, 2017 | |||||||||||||||||
Property and Equipment: | |||||||||||||||||
Historical cost | 429,500 | 189,845 | 328,263 | 78,976 | 177,825 | 1,204,409 | |||||||||||
Accumulated depreciation | (237,210 | ) | (54,052 | ) | (93,535 | ) | (42,590 | ) | (131,532 | ) | (558,919 | ) | |||||
192,290 | 135,793 | 234,728 | 36,386 | 46,293 | 645,490 |
United States (primarily Gulf of Mexico) $’000 | Africa (primarily West Africa) $’000 | Middle East and Asia $’000 | Brazil, Mexico, Central and South America $’000 | Europe (primarily North Sea) $’000 | Total $’000 | ||||||||||||
For the three months ended September 30, 2016 | |||||||||||||||||
Operating Revenues: | |||||||||||||||||
Time charter | 6,440 | 8,593 | 12,763 | — | 19,677 | 47,473 | |||||||||||
Bareboat charter | — | — | — | 1,967 | — | 1,967 | |||||||||||
Other marine services | 1,083 | 238 | 2,566 | 220 | 578 | 4,685 | |||||||||||
7,523 | 8,831 | 15,329 | 2,187 | 20,255 | 54,125 | ||||||||||||
Direct Costs and Expenses: | |||||||||||||||||
Operating: | |||||||||||||||||
Personnel | 4,865 | 3,195 | 4,778 | 198 | 9,827 | 22,863 | |||||||||||
Repairs and maintenance | 768 | 441 | 1,394 | 20 | 2,194 | 4,817 | |||||||||||
Drydocking | (8 | ) | 617 | 719 | — | 696 | 2,024 | ||||||||||
Insurance and loss reserves | 1,200 | 147 | 199 | — | 163 | 1,709 | |||||||||||
Fuel, lubes and supplies | 533 | 748 | 961 | — | 957 | 3,199 | |||||||||||
Other | 118 | 890 | 790 | (56 | ) | 274 | 2,016 | ||||||||||
7,476 | 6,038 | 8,841 | 162 | 14,111 | 36,628 | ||||||||||||
Direct Vessel Profit | 47 | 2,793 | 6,488 | 2,025 | 6,144 | 17,497 | |||||||||||
Other Costs and Expenses: | |||||||||||||||||
Operating: | |||||||||||||||||
Leased-in equipment | 2,040 | 974 | 1,254 | 180 | 83 | 4,531 | |||||||||||
Administrative and general | 10,588 | ||||||||||||||||
Depreciation and amortization | 6,489 | 1,678 | 3,063 | 929 | 2,054 | 14,213 | |||||||||||
29,332 | |||||||||||||||||
Losses on Asset Dispositions and Impairments, Net | (29,233 | ) | |||||||||||||||
Operating Loss | (41,068 | ) |
United States (primarily Gulf of Mexico) $’000 | Africa (primarily West Africa) $’000 | Middle East and Asia $’000 | Brazil, Mexico, Central and South America $’000 | Europe (primarily North Sea) $’000 | Total $’000 | ||||||||||||
For the nine months ended September 30, 2016 | |||||||||||||||||
Operating Revenues: | |||||||||||||||||
Time charter | 26,208 | 28,634 | 31,470 | 196 | 61,772 | 148,280 | |||||||||||
Bareboat charter | — | — | — | 7,664 | — | 7,664 | |||||||||||
Other marine services | 3,048 | 274 | 9,295 | 1,104 | 1,610 | 15,331 | |||||||||||
29,256 | 28,908 | 40,765 | 8,964 | 63,382 | 171,275 | ||||||||||||
Direct Costs and Expenses: | |||||||||||||||||
Operating: | |||||||||||||||||
Personnel | 18,995 | 9,604 | 14,014 | 2,093 | 31,556 | 76,262 | |||||||||||
Repairs and maintenance | 2,170 | 1,934 | 4,887 | 227 | 7,320 | 16,538 | |||||||||||
Drydocking | 209 | 1,201 | 2,112 | — | 4,168 | 7,690 | |||||||||||
Insurance and loss reserves | 2,879 | 395 | 613 | 37 | 766 | 4,690 | |||||||||||
Fuel, lubes and supplies | 1,280 | 1,722 | 3,413 | 193 | 3,041 | 9,649 | |||||||||||
Other | 307 | 2,298 | 2,396 | 114 | 945 | 6,060 | |||||||||||
25,840 | 17,154 | 27,435 | 2,664 | 47,796 | 120,889 | ||||||||||||
Direct Vessel Profit | 3,416 | 11,754 | 13,330 | 6,300 | 15,586 | 50,386 | |||||||||||
Other Costs and Expenses: | |||||||||||||||||
Operating: | |||||||||||||||||
Leased-in equipment | 5,760 | 2,926 | 3,553 | 914 | 212 | 13,365 | |||||||||||
Administrative and general | 34,915 | ||||||||||||||||
Depreciation and amortization | 20,523 | 4,871 | 9,040 | 3,328 | 6,543 | 44,305 | |||||||||||
92,585 | |||||||||||||||||
Losses on Asset Dispositions and Impairments, Net | (49,970 | ) | |||||||||||||||
Operating Loss | (92,169 | ) | |||||||||||||||
As of September 30, 2016 | |||||||||||||||||
Property and Equipment: | |||||||||||||||||
Historical cost | 455,374 | 165,375 | 206,018 | 61,153 | 170,128 | 1,058,048 | |||||||||||
Accumulated depreciation | (227,333 | ) | (77,259 | ) | (95,195 | ) | (33,700 | ) | (118,531 | ) | (552,018 | ) | |||||
228,041 | 88,116 | 110,823 | 27,453 | 51,597 | 506,030 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
MexMar | $ | 793 | $ | 859 | $ | 3,382 | $ | 4,290 | |||||||
Other | (8,099 | ) | (69 | ) | (8,679 | ) | (4,654 | ) | |||||||
$ | (7,306 | ) | $ | 790 | $ | (5,297 | ) | $ | (364 | ) |
ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||||||||||
$’000 | % | $’000 | % | $’000 | % | $’000 | % | ||||||||||||||||
Operating Revenues: | |||||||||||||||||||||||
Time charter | 45,267 | 95 | 47,473 | 88 | 114,800 | 92 | 148,280 | 87 | |||||||||||||||
Bareboat charter | 1,168 | 2 | 1,967 | 3 | 3,467 | 3 | 7,664 | 4 | |||||||||||||||
Other marine services | 1,378 | 3 | 4,685 | 9 | 6,173 | 5 | 15,331 | 9 | |||||||||||||||
47,813 | 100 | 54,125 | 100 | 124,440 | 100 | 171,275 | 100 | ||||||||||||||||
Costs and Expenses: | |||||||||||||||||||||||
Operating: | |||||||||||||||||||||||
Personnel | 22,178 | 46 | 22,864 | 42 | 59,546 | 48 | 76,262 | 44 | |||||||||||||||
Repairs and maintenance | 7,411 | 15 | 4,817 | 9 | 21,431 | 17 | 16,538 | 10 | |||||||||||||||
Drydocking | 2,278 | 5 | 2,024 | 4 | 7,597 | 6 | 7,690 | 4 | |||||||||||||||
Insurance and loss reserves | 1,396 | 3 | 1,709 | 3 | 5,081 | 4 | 4,690 | 3 | |||||||||||||||
Fuel, lubes and supplies | 2,880 | 6 | 3,199 | 6 | 8,412 | 7 | 9,649 | 6 | |||||||||||||||
Other | 2,278 | 5 | 2,016 | 4 | 6,935 | 6 | 6,060 | 4 | |||||||||||||||
Leased-in equipment | 2,837 | 6 | 4,530 | 8 | 10,117 | 8 | 13,365 | 8 | |||||||||||||||
41,258 | 86 | 41,159 | 76 | 119,119 | 96 | 134,254 | 79 | ||||||||||||||||
Administrative and general | 10,318 | 22 | 10,588 | 20 | 43,849 | 35 | 34,915 | 20 | |||||||||||||||
Depreciation and amortization | 15,622 | 33 | 14,213 | 26 | 42,758 | 34 | 44,305 | 26 | |||||||||||||||
67,198 | 141 | 65,960 | 122 | 205,726 | 165 | 213,474 | 125 | ||||||||||||||||
Losses on Asset Dispositions and Impairments, Net | (9,744 | ) | (20 | ) | (29,233 | ) | (54 | ) | (11,243 | ) | (9 | ) | (49,970 | ) | (29 | ) | |||||||
Operating Loss | (29,129 | ) | (61 | ) | (41,068 | ) | (76 | ) | (92,529 | ) | (74 | ) | (92,169 | ) | (54 | ) | |||||||
Other Income (Expense), Net | 8,256 | 17 | (2,992 | ) | (5 | ) | 8,337 | 7 | (14,674 | ) | (9 | ) | |||||||||||
Loss Before Income Tax Benefit and Equity in Earnings (Losses) of 50% or Less Owned Companies | (20,873 | ) | (44 | ) | (44,060 | ) | (81 | ) | (84,192 | ) | (67 | ) | (106,843 | ) | (63 | ) | |||||||
Income Tax Benefit | (5,823 | ) | (12 | ) | (15,263 | ) | (28 | ) | (23,045 | ) | (18 | ) | (35,831 | ) | (21 | ) | |||||||
Loss Before Equity in Earnings (Losses) of 50% or Less Owned Companies | (15,050 | ) | (32 | ) | (28,797 | ) | (53 | ) | (61,147 | ) | (49 | ) | (71,012 | ) | (42 | ) | |||||||
Equity in Earnings (Losses) of 50% or Less Owned Companies, Net of Tax | (7,306 | ) | (15 | ) | 790 | 1 | (5,297 | ) | (4 | ) | (364 | ) | — | ||||||||||
Net Loss | (22,356 | ) | (47 | ) | (28,007 | ) | (52 | ) | (66,444 | ) | (53 | ) | (71,376 | ) | (42 | ) | |||||||
Net Loss attributable to Noncontrolling Interests in Subsidiaries | (1,881 | ) | (4 | ) | (74 | ) | — | (4,582 | ) | (3 | ) | (904 | ) | (1 | ) | ||||||||
Net Loss attributable to SEACOR Marine Holdings Inc. | (20,475 | ) | (43 | ) | (27,933 | ) | (52 | ) | (61,862 | ) | (50 | ) | (70,472 | ) | (41 | ) |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Rates Per Day Worked: | |||||||||||||||
Anchor handling towing supply | $ | 9,766 | $ | 16,469 | $ | 10,973 | $ | 20,034 | |||||||
Fast support | 7,999 | 7,848 | 7,858 | 7,692 | |||||||||||
Supply | 6,279 | 5,935 | 7,108 | 6,091 | |||||||||||
Standby safety | 8,650 | 8,904 | 8,418 | 9,377 | |||||||||||
Specialty | — | 30,593 | 12,000 | 20,926 | |||||||||||
Liftboats | 11,899 | 16,822 | 11,308 | 14,831 | |||||||||||
Overall Average Rates Per Day Worked (excluding wind farm utility) | 8,565 | 10,089 | 8,439 | 10,336 | |||||||||||
Wind farm utility | 2,220 | 2,260 | 2,128 | 2,350 | |||||||||||
Overall Average Rates Per Day Worked | 6,006 | 6,834 | 5,806 | 7,356 | |||||||||||
Utilization: | |||||||||||||||
Anchor handling towing supply | 25 | % | 27 | % | 22 | % | 35 | % | |||||||
Fast support | 49 | % | 62 | % | 45 | % | 66 | % | |||||||
Supply | 65 | % | 31 | % | 43 | % | 32 | % | |||||||
Standby safety | 84 | % | 78 | % | 81 | % | 78 | % | |||||||
Specialty | — | % | 58 | % | 2 | % | 61 | % | |||||||
Liftboats | 28 | % | 8 | % | 15 | % | 6 | % | |||||||
Overall Fleet Utilization (excluding wind farm utility) | 49 | % | 47 | % | 43 | % | 50 | % | |||||||
Wind farm utility | 89 | % | 86 | % | 82 | % | 76 | % | |||||||
Overall Fleet Utilization | 60 | % | 58 | % | 54 | % | 57 | % | |||||||
Available Days: | |||||||||||||||
Anchor handling towing supply | 1,288 | 1,483 | 3,822 | 4,213 | |||||||||||
Fast support | 3,885 | 2,389 | 10,781 | 6,655 | |||||||||||
Supply | 507 | 1,110 | 1,716 | 3,428 | |||||||||||
Standby safety | 1,840 | 1,989 | 5,460 | 6,277 | |||||||||||
Specialty | 276 | 276 | 819 | 822 | |||||||||||
Liftboats | 1,380 | 1,380 | 4,010 | 4,110 | |||||||||||
Overall Fleet Available Days (excluding wind farm utility) | 9,176 | 8,627 | 26,608 | 25,505 | |||||||||||
Wind farm utility | 3,404 | 3,345 | 10,101 | 9,866 | |||||||||||
Overall Fleet Available Days | 12,580 | 11,972 | 36,709 | 35,371 |
Owned(1) | Joint Ventured | Leased-in(1) | Pooled or Managed | Total | ||||||||||
2017 | ||||||||||||||
Anchor handling towing supply | 11 | 1 | 4 | 7 | 23 | |||||||||
Fast support | 41 | 5 | 1 | 3 | 50 | |||||||||
Supply | 8 | 17 | — | 2 | 27 | |||||||||
Standby safety | 20 | 1 | — | — | 21 | |||||||||
Specialty | 3 | 1 | — | 2 | 6 | |||||||||
Liftboats | 13 | — | 2 | — | 15 | |||||||||
Wind farm utility | 37 | 4 | — | — | 41 | |||||||||
133 | 29 | 7 | 14 | 183 | ||||||||||
2016 | ||||||||||||||
Anchor handling towing supply | 13 | 1 | 4 | 9 | 27 | |||||||||
Fast support | 35 | 11 | 1 | 3 | 50 | |||||||||
Supply | 12 | 15 | 1 | 3 | 31 | |||||||||
Standby safety | 20 | 1 | — | — | 21 | |||||||||
Specialty | 3 | 1 | — | 3 | 7 | |||||||||
Liftboats | 13 | — | 2 | — | 15 | |||||||||
Wind farm utility | 37 | 3 | — | — | 40 | |||||||||
133 | 32 | 8 | 18 | 191 |
(1) | Excludes four owned and one leased-in offshore support vessels as of September 30, 2017 that had been retired and removed from service. |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||||||||
$’000’s | % | $’000’s | % | $’000’s | % | $’000’s | % | |||||||||||||||
Operating revenues: | ||||||||||||||||||||||
Time charter | 4,587 | 80 | 6,440 | 86 | 12,471 | 80 | 26,208 | 90 | ||||||||||||||
Other marine services | 1,116 | 20 | 1,083 | 14 | 3,140 | 20 | 3,048 | 10 | ||||||||||||||
5,703 | 100 | 7,523 | 100 | 15,611 | 100 | 29,256 | 100 | |||||||||||||||
Direct operating expenses: | ||||||||||||||||||||||
Personnel | 4,455 | 78 | 4,865 | 65 | 11,768 | 75 | 18,995 | 65 | ||||||||||||||
Repairs and maintenance | 1,289 | 23 | 768 | 10 | 2,963 | 19 | 2,170 | 7 | ||||||||||||||
Drydocking | 1,109 | 19 | (8 | ) | — | 1,992 | 13 | 209 | 1 | |||||||||||||
Insurance and loss reserves | 598 | 11 | 1,200 | 16 | 2,608 | 17 | 2,879 | 10 | ||||||||||||||
Fuel, lubes and supplies | 249 | 4 | 533 | 7 | 1,104 | 7 | 1,280 | 4 | ||||||||||||||
Other | 123 | 2 | 118 | 1 | 246 | 2 | 307 | 1 | ||||||||||||||
7,823 | 137 | 7,476 | 99 | 20,681 | 133 | 25,840 | 88 | |||||||||||||||
Direct Vessel Profit (Loss) | (2,120 | ) | (37 | ) | 47 | 1 | (5,070 | ) | (33 | ) | 3,416 | 12 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Rates Per Day Worked: | |||||||||||||||
Anchor handling towing supply | $ | — | $ | 34,222 | $ | 35,496 | $ | 35,415 | |||||||
Fast support | 7,170 | 8,512 | 8,013 | 8,734 | |||||||||||
Supply | 7,400 | — | 7,400 | — | |||||||||||
Liftboats | 7,257 | 16,822 | 8,656 | 14,831 | |||||||||||
Overall Average Rates Per Day Worked | 7,212 | 13,810 | 8,661 | 17,545 | |||||||||||
Utilization: | |||||||||||||||
Anchor handling towing supply | — | % | 6 | % | 1 | % | 17 | % | |||||||
Fast support | 21 | % | 41 | % | 18 | % | 42 | % | |||||||
Supply | 36 | % | — | % | 7 | % | — | % | |||||||
Liftboats | 24 | % | 8 | % | 14 | % | 6 | % | |||||||
Overall Fleet Utilization | 16 | % | 14 | % | 12 | % | 16 | % | |||||||
Available Days: | |||||||||||||||
Anchor handling towing supply | 920 | 931 | 2,730 | 2,569 | |||||||||||
Fast support | 1,696 | 718 | 5,151 | 1,890 | |||||||||||
Supply | 47 | 234 | 228 | 733 | |||||||||||
Specialty | 92 | — | 273 | — | |||||||||||
Liftboats | 1,104 | 1,380 | 3,538 | 4,110 | |||||||||||
Overall Fleet Available Days | 3,859 | 3,263 | 11,920 | 9,302 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||||||
$’000’s | % | $’000’s | % | $’000’s | % | $’000’s | % | |||||||||||||
Operating revenues: | ||||||||||||||||||||
Time charter | 9,700 | 103 | 8,593 | 97 | 23,333 | 100 | 28,634 | 99 | ||||||||||||
Other marine services | (310 | ) | (3 | ) | 238 | 3 | 97 | — | 274 | 1 | ||||||||||
9,390 | 100 | 8,831 | 100 | 23,430 | 100 | 28,908 | 100 | |||||||||||||
Direct operating expenses: | ||||||||||||||||||||
Personnel | 3,588 | 38 | 3,195 | 36 | 9,624 | 41 | 9,604 | 33 | ||||||||||||
Repairs and maintenance | 1,324 | 14 | 441 | 5 | 5,102 | 22 | 1,934 | 7 | ||||||||||||
Drydocking | 311 | 3 | 617 | 7 | 2,051 | 9 | 1,201 | 4 | ||||||||||||
Insurance and loss reserves | 157 | 2 | 147 | 2 | 696 | 3 | 395 | 1 | ||||||||||||
Fuel, lubes and supplies | 693 | 7 | 748 | 8 | 1,956 | 8 | 1,722 | 6 | ||||||||||||
Other | 704 | 8 | 890 | 10 | 2,221 | 9 | 2,298 | 8 | ||||||||||||
6,777 | 72 | 6,038 | 68 | 21,650 | 92 | 17,154 | 59 | |||||||||||||
Direct Vessel Profit | 2,613 | 28 | 2,793 | 32 | 1,780 | 8 | 11,754 | 41 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Rates Per Day Worked: | |||||||||||||||
Anchor handling towing supply | $ | 11,669 | $ | 14,997 | $ | 12,190 | $ | 15,485 | |||||||
Fast support | 10,112 | 8,194 | 9,201 | 8,568 | |||||||||||
Supply | 11,950 | 5,750 | 12,832 | 5,750 | |||||||||||
Specialty | — | 9,900 | — | 10,571 | |||||||||||
Overall Average Rates Per Day Worked | 10,611 | 9,858 | 10,192 | 10,143 | |||||||||||
Utilization: | |||||||||||||||
Anchor handling towing supply | 100 | % | 70 | % | 71 | % | 72 | % | |||||||
Fast support | 70 | % | 64 | % | 71 | % | 67 | % | |||||||
Supply | 100 | % | 54 | % | 93 | % | 62 | % | |||||||
Specialty | — | % | 40 | % | — | % | 80 | % | |||||||
Overall Fleet Utilization | 71 | % | 62 | % | 67 | % | 68 | % | |||||||
Available Days: | |||||||||||||||
Anchor handling towing supply | 184 | 368 | 636 | 1,096 | |||||||||||
Fast support | 915 | 673 | 2,243 | 1,947 | |||||||||||
Supply | 92 | 268 | 273 | 822 | |||||||||||
Specialty | 92 | 92 | 273 | 274 | |||||||||||
Overall Fleet Available Days | 1,283 | 1,401 | 3,425 | 4,139 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||||||||
$’000’s | % | $’000’s | % | $’000’s | % | $’000’s | % | ||||||||||||||
Operating revenues: | |||||||||||||||||||||
Time charter | 9,490 | 104 | 12,763 | 83 | 22,728 | 97 | 31,470 | 77 | |||||||||||||
Other marine services | (341 | ) | (4 | ) | 2,566 | 17 | 645 | 3 | 9,295 | 23 | |||||||||||
9,149 | 100 | 15,329 | 100 | 23,373 | 100 | 40,765 | 100 | ||||||||||||||
Direct operating expenses: | |||||||||||||||||||||
Personnel | 4,731 | 52 | 4,778 | 31 | 12,001 | 51 | 14,014 | 34 | |||||||||||||
Repairs and maintenance | 2,309 | 25 | 1,394 | 9 | 6,832 | 29 | 4,887 | 12 | |||||||||||||
Drydocking | (102 | ) | (1 | ) | 719 | 5 | 414 | 2 | 2,112 | 5 | |||||||||||
Insurance and loss reserves | 363 | 4 | 199 | 2 | 1,062 | 5 | 613 | 2 | |||||||||||||
Fuel, lubes and supplies | 1,115 | 12 | 961 | 6 | 2,547 | 11 | 3,413 | 8 | |||||||||||||
Other | 1,192 | 13 | 790 | 5 | 3,718 | 16 | 2,396 | 6 | |||||||||||||
9,608 | 105 | 8,841 | 58 | 26,574 | 114 | 27,435 | 67 | ||||||||||||||
Direct Vessel Profit (Loss) | (459 | ) | (5 | ) | 6,488 | 42 | (3,201 | ) | (14 | ) | 13,330 | 33 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Rates Per Day Worked: | |||||||||||||||
Anchor handling towing supply | $ | 7,327 | $ | 8,478 | $ | 7,833 | $ | 8,477 | |||||||
Fast support | 6,848 | 7,395 | 6,917 | 6,827 | |||||||||||
Supply | 3,815 | 6,072 | 3,951 | 6,163 | |||||||||||
Specialty | — | 36,878 | 12,000 | 28,915 | |||||||||||
Liftboats | 36,252 | — | 36,252 | — | |||||||||||
Overall Average Rates Per Day Worked (excluding wind farm utility) | 7,188 | 10,357 | 6,935 | 8,688 | |||||||||||
Wind farm utility | 2,025 | 7,855 | 2,025 | 7,427 | |||||||||||
Overall Average Rates Per Day Worked | 7,138 | 10,179 | 6,916 | 8,602 | |||||||||||
Utilization: | |||||||||||||||
Anchor handling towing supply | 78 | % | 47 | % | 77 | % | 49 | % | |||||||
Fast support | 78 | % | 83 | % | 77 | % | 84 | % | |||||||
Supply | 60 | % | 38 | % | 38 | % | 35 | % | |||||||
Specialty | — | % | 67 | % | 5 | % | 52 | % | |||||||
Liftboats | 19 | % | — | % | 10 | % | — | % | |||||||
Overall Fleet Utilization (excluding wind farm utility) | 66 | % | 65 | % | 60 | % | 63 | % | |||||||
Wind farm utility | 7 | % | 48 | % | 2 | % | 55 | % | |||||||
Overall Fleet Utilization | 61 | % | 63 | % | 55 | % | 62 | % | |||||||
Available Days: | |||||||||||||||
Anchor handling towing supply | 184 | 184 | 456 | 548 | |||||||||||
Fast support | 1,182 | 920 | 3,114 | 2,740 | |||||||||||
Supply | 368 | 516 | 1,216 | 1,608 | |||||||||||
Specialty | 92 | 184 | 273 | 548 | |||||||||||
Liftboats | 184 | — | 366 | — | |||||||||||
Overall Fleet Available Days (excluding wind farm utility) | 2,010 | 1,804 | 5,425 | 5,444 | |||||||||||
Wind farm utility | 184 | 184 | 546 | 457 | |||||||||||
Overall Fleet Available Days | 2,194 | 1,988 | 5,971 | 5,901 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||||||
$’000’s | % | $’000’s | % | $’000’s | % | $’000’s | % | |||||||||||||
Operating revenues: | ||||||||||||||||||||
Time charter | 1,439 | 52 | — | — | 1,439 | 27 | 196 | 2 | ||||||||||||
Bareboat charter | 1,168 | 42 | 1,967 | 90 | 3,467 | 65 | 7,664 | 86 | ||||||||||||
Other marine services | 159 | 6 | 220 | 10 | 396 | 8 | 1,104 | 12 | ||||||||||||
2,766 | 100 | 2,187 | 100 | 5,302 | 100 | 8,964 | 100 | |||||||||||||
Direct operating expenses: | ||||||||||||||||||||
Personnel | 326 | 12 | 198 | 9 | 487 | 9 | 2,093 | 24 | ||||||||||||
Repairs and maintenance | 110 | 4 | 20 | 1 | 230 | 5 | 227 | 3 | ||||||||||||
Insurance and loss reserves | 75 | 3 | — | — | 86 | 2 | 37 | — | ||||||||||||
Fuel, lubes and supplies | 33 | 1 | — | — | 60 | 1 | 193 | 2 | ||||||||||||
Other | 69 | 2 | (56 | ) | (3 | ) | 73 | 1 | 114 | 1 | ||||||||||
613 | 22 | 162 | 7 | 936 | 18 | 2,664 | 30 | |||||||||||||
Direct Vessel Profit | 2,153 | 78 | 2,025 | 93 | 4,366 | 82 | 6,300 | 70 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Rates Per Day Worked: | |||||||||||||||
Fast support | $ | — | $ | — | $ | — | $ | — | |||||||
Supply | — | — | — | 18,986 | |||||||||||
Liftboats | 16,060 | — | 16,060 | — | |||||||||||
Overall Average Rates Per Day Worked | 16,060 | — | 16,060 | 18,986 | |||||||||||
Utilization: | |||||||||||||||
Fast support | — | % | — | % | — | % | — | % | |||||||
Supply | — | % | — | % | — | % | 4 | % | |||||||
Liftboats | 97 | % | — | % | 85 | % | — | % | |||||||
Overall Fleet Utilization | 49 | % | — | % | 24 | % | 3 | % | |||||||
Available Days: | |||||||||||||||
Fast support | 92 | 78 | 273 | 78 | |||||||||||
Supply | — | 92 | — | 266 | |||||||||||
Liftboats | 92 | — | 106 | — | |||||||||||
Overall Fleet Available Days | 184 | 170 | 379 | 344 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||||||
$’000’s | % | $’000’s | % | $’000’s | % | $’000’s | % | ||||||||||||
Operating revenues: | |||||||||||||||||||
Time charter | 20,051 | 96 | 19,677 | 97 | 54,829 | 97 | 61,772 | 97 | |||||||||||
Other marine services | 754 | 4 | 578 | 3 | 1,895 | 3 | 1,610 | 3 | |||||||||||
20,805 | 100 | 20,255 | 100 | 56,724 | 100 | 63,382 | 100 | ||||||||||||
Direct operating expenses: | |||||||||||||||||||
Personnel | 9,079 | 44 | 9,827 | 49 | 25,667 | 45 | 31,556 | 50 | |||||||||||
Repairs and maintenance | 2,378 | 11 | 2,194 | 11 | 6,303 | 11 | 7,320 | 11 | |||||||||||
Drydocking | 961 | 5 | 696 | 3 | 3,140 | 6 | 4,168 | 7 | |||||||||||
Insurance and loss reserves | 203 | 1 | 163 | 1 | 629 | 1 | 766 | 1 | |||||||||||
Fuel, lubes and supplies | 790 | 4 | 957 | 5 | 2,745 | 5 | 3,041 | 5 | |||||||||||
Other | 190 | — | 274 | 1 | 677 | 1 | 945 | 1 | |||||||||||
13,601 | 65 | 14,111 | 70 | 39,161 | 69 | 47,796 | 75 | ||||||||||||
Direct Vessel Profit | 7,204 | 35 | 6,144 | 30 | 17,563 | 31 | 15,586 | 25 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||
Rates Per Day Worked: | |||||||||||||
Standby safety | $ | 8,650 | $ | 8,904 | 8,418 | 9,377 | |||||||
Wind farm utility | 2,221 | 2,083 | 2,128 | 2,174 | |||||||||
Overall Average Rates Per Day Worked | 4,390 | 4,519 | 4,328 | 5,074 | |||||||||
Utilization: | |||||||||||||
Standby safety | 84 | % | 78 | % | 81 | % | 78 | % | |||||
Wind farm utility | 94 | % | 89 | % | 86 | % | 77 | % | |||||
Overall Fleet Utilization | 90 | % | 85 | % | 84 | % | 78 | % | |||||
Available Days: | |||||||||||||
Standby Safety | 1,840 | 1,989 | 5,460 | 6,277 | |||||||||
Wind farm utility | 3,220 | 3,161 | 9,555 | 9,409 | |||||||||
Overall Fleet Available Days | 5,060 | 5,150 | 15,015 | 15,686 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||
$’000 | $’000 | $’000 | $’000 | ||||||||
Other Income (Expense): | |||||||||||
Interest income | 354 | 973 | 1,479 | 3,371 | |||||||
Interest expense | (4,295 | ) | (2,512 | ) | (12,023 | ) | (7,455 | ) | |||
SEACOR Holdings management fees | — | (1,925 | ) | (3,208 | ) | (5,775 | ) | ||||
SEACOR Holdings guarantee fees | (21 | ) | (80 | ) | (172 | ) | (237 | ) | |||
Marketable security gains (losses), net | (698 | ) | 1,619 | 10,931 | (4,458 | ) | |||||
Derivative gains, net | 13,022 | 16 | 12,720 | 3,077 | |||||||
Foreign currency losses, net | (106 | ) | (1,084 | ) | (1,389 | ) | (3,463 | ) | |||
Other, net | — | 1 | (1 | ) | 266 | ||||||
8,256 | (2,992 | ) | 8,337 | (14,674 | ) |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||
$’000 | $’000 | $’000 | $’000 | ||||||||
MexMar | 793 | 859 | 3,382 | 4,290 | |||||||
Sea-Cat Crewzer | — | 334 | 234 | 837 | |||||||
Sea-Cat Crewzer II | — | 197 | 99 | (466 | ) | ||||||
Dynamic Offshore | (7,553 | ) | 379 | (6,936 | ) | 939 | |||||
OSV Partners | (208 | ) | (409 | ) | (628 | ) | (2,092 | ) | |||
SEACOR Grant DIS | (484 | ) | (235 | ) | (519 | ) | (1,903 | ) | |||
Falcon Global | — | (104 | ) | (1,559 | ) | (1,431 | ) | ||||
Other | 146 | (231 | ) | 630 | (538 | ) | |||||
(7,306 | ) | 790 | (5,297 | ) | (364 | ) |
Remainder of 2017 | $ | 5,195 | |
2018 | 40,932 | ||
2019 | 21,106 | ||
2020 | 1,645 | ||
$ | 68,878 |
Remainder of 2017 | $ | 19,096 | |
2018 | 14,865 | ||
2019 | 46,798 | ||
2020 | 47,439 | ||
2021 | 28,678 | ||
Years subsequent to 2021 | 194,227 | ||
$ | 351,103 |
Summary of Cash Flows | |||||
Nine Months Ended September 30, | |||||
2017 | 2016 | ||||
$’000 | $’000 | ||||
Cash flows provided by or (used in): | |||||
Operating Activities | 35,144 | (16,498 | ) | ||
Investing Activities | (15,686 | ) | (10,820 | ) | |
Financing Activities | (8,076 | ) | 11,053 | ||
Effects of Exchange Rate Changes on Cash and Cash Equivalents | 1,666 | (1,500 | ) | ||
Increase in Cash and Cash Equivalents | 13,048 | (17,765 | ) |
Nine Months Ended September 30, | |||||
2017 | 2016 | ||||
$’000 | $’000 | ||||
Regional DVP: | |||||
United States, primarily Gulf of Mexico | (5,070 | ) | 3,416 | ||
Africa, primarily West Africa | 1,780 | 11,754 | |||
Middle East and Asia | (3,201 | ) | 13,330 | ||
Brazil, Mexico, Central and South America | 4,366 | 6,300 | |||
Europe, primarily North Sea | 17,563 | 15,586 | |||
Operating, leased-in equipment (excluding amortization of deferred gains) | (16,226 | ) | (19,514 | ) | |
Administrative and general (excluding provisions for bad debts and amortization of restricted stock) | (44,002 | ) | (34,915 | ) | |
SEACOR Holdings management and guarantee fees | (3,380 | ) | (6,012 | ) | |
Other, net | (1 | ) | 266 | ||
Dividends received from 50% or less owned companies | 2,442 | 371 | |||
(45,729 | ) | (9,418 | ) | ||
Changes in operating assets and liabilities before interest and income taxes | 29,110 | (12,280 | ) | ||
Purchases of marketable securities | — | (8,679 | ) | ||
Proceeds from sale of marketable securities | 51,877 | 9,169 | |||
Cash settlements on derivative transactions, net | (372 | ) | (1,147 | ) | |
Interest paid, excluding capitalized interest(1) | (4,745 | ) | (418 | ) | |
Interest received | 3,001 | 4,164 | |||
Income taxes (paid) refunded, net | 2,002 | 2,111 | |||
Total cash flows provided by (used in) operating activities | 35,144 | (16,498 | ) |
(1) | During the Current Nine Months and Prior Nine Months, capitalized interest paid and included in purchases of property and equipment was $3.1 million and $5.1 million, respectively. |
• | Capital expenditures and payments on fair value hedges were $52.7 million. Six fast support vessels and one platform supply vessel were delivered during the period. |
• | The Company sold two liftboats, one supply vessel, six offshore support vessels previously retired and removed from service and other equipment for net proceeds of $10.3 million ($9.8 million in cash and $0.5 million of previously received deposits). |
• | Construction reserve funds account transactions included deposits of $6.3 million and withdrawals of $39.1 million. |
• | The Company made investments in, and advances to, its 50% or less owned companies of $5.3 million, including $2.4 million to Falcon Global and $2.3 million to OSV Partners. |
• | The Company received capital distributions of $7.4 million from MexMar. |
• | Effective March 31, 2017, the Company consolidated Falcon Global and assumed cash of $1.9 million. |
• | Effective April 28, 2017, the Company acquired a 100% controlling interest in Sea-Cat Crewzer II LLC through the acquisition of its partners’ 50% ownership interest for $9.6 million, net of cash acquired. |
• | Effective April 28, 2017, the Company acquired a 100% controlling interest in Sea-Cat Crewzer LLC through the acquisition of its partners’ 50% ownership interest for $0.1 million, net of cash acquired. |
• | Capital expenditures were $82.8 million. Equipment deliveries during the period included twelve fast support vessels, one supply vessel and two wind farm utility vessels. |
• | The Company sold two supply vessels, four standby safety vessels and other property and equipment for net proceeds of $4.1 million. |
• | The Company made investments in, and advances to, its 50% or less owned companies of $8.2 million, including $6.8 million to Falcon Global and $1.2 million in OSV Partners. |
• | Construction reserve funds account transactions included withdrawals of $76.7 million. |
• | The Company received $0.5 million of net payments on third party notes receivable. |
• | borrowed $7.1 million under the Sea-Cat Crewzer III Term Loan Facility; |
• | made scheduled payments on long-term debt and capital lease obligations of $8.6 million; |
• | incurred issue costs on various facilities of $0.2 million; |
• | purchased subsidiary shares from noncontrolling interests for $3.7 million; and |
• | paid SEACOR Holdings $2.7 million for the distribution of SEACOR Marine restricted stock to Company personnel. |
• | made scheduled payments on long-term debt of $2.3 million; |
• | borrowed $23.5 million (€21.0 million) under the Windcat Credit Facility and repaid all of the subsidiary’s then outstanding debt totaling $22.9 million; |
• | borrowed $16.1 million under the Sea-Cat Crewzer III Term Loan facility; |
• | incurred issuance costs on various debt facilities of $3.2 million; and |
• | made distributions to non-controlling interests of $0.2 million. |
ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
ITEM 4. | CONTROLS AND PROCEDURES |
ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS |
ITEM 3. | DEFAULT UPON SENIOR SECURITIES |
ITEM 4. | MINE SAFETY DISCLOSURES |
ITEM 5. | OTHER INFORMATION |
ITEM 6. | EXHIBITS |
10.1 | ||
31.1 | ||
31.2 | ||
32 | ||
101.INS** | XBRL Instance Document | |
101.SCH** | XBRL Taxonomy Extension Schema | |
101.CAL** | XBRL Taxonomy Extension Calculation Linkbase | |
101.DEF** | XBRL Taxonomy Extension Definition Linkbase | |
101.LAB** | XBRL Taxonomy Extension Label Linkbase | |
101.PRE** | XBRL Taxonomy Extension Presentation Linkbase |
** | Pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933 or Section 18 of the Securities Exchange Act of 1934 and otherwise are not subject to liability. |
SEACOR Marine Holdings Inc. (Registrant) | ||||
DATE: | November 9, 2017 | By: | /s/ JOHN GELLERT | |
John Gellert, President and Chief Executive Officer (Principal Executive Officer) | ||||
DATE: | November 9, 2017 | By: | /S/ MATTHEW CENAC | |
Matthew Cenac, Executive Vice President and Chief Financial Officer (Principal Financial Officer) |
i. | The definition of “Acceptable Accounting Firm” shall be deleted in its entirety and replaced with the following: |
ii. | The definition of “Change of Control” shall be deleted in its entirety and replaced with the following: |
iii. | The definition of “Debt Service Coverage Ratio” shall be deleted in its entirety and replaced with the following: |
iv. | The definition of “Guaranty” shall be deleted in its entirety and replaced with the following: |
v. | The definition of “Guarantor(s)” shall be deleted in its entirety and replaced with the following: |
vi. | The definition of “Margin” shall be deleted in its entirety and replaced with the following: |
vii. | The definition of “MONTCO Guarantor” shall be deleted in its entirety; and |
viii. | The definition of “Required MONTCO Guarantor Prepayment Amount” shall be deleted in its entirety. |
“(t) | Change of Control. A Change of Control shall occur.” |
(i). | Agreement. Each of the Borrowers, the SEACOR Guarantor, the SEACOR Parent and the MONTCO Parent shall have executed and delivered to the Facility Agent this Agreement; |
(ii). | Mortgage Amendments. A duly executed and notarized original Amendment No. 1 to First Preferred Marshall Islands Mortgage in relation to each Vessel made by each of Falcon Pearl and Falcon Diamond and the Security Trustee, each in form and substance satisfactory to the Security Trustee and its legal advisers, each duly recorded with the Deputy Commissioner of Maritime Affairs of the Republic of the Marshall Islands together with a copy of a Certificate of Ownership and Encumbrance confirming such recordations; |
(iii). | UCC Filings. Each relevant Security Party shall have duly delivered to the Facility Agent amendments to the Uniform Commercial Code financing statements relating to the change of Falcon Global’s name for filing with the State of Delaware, the District of Columbia, Terrebonne Parish Louisiana, and in such other jurisdictions as the Facility Agent may reasonably require; |
(iv). | Corporate Documents. The Facility Agent shall have received such evidence as it may reasonably require as to the authority of the officers or attorneys-in-fact executing this Agreement and the Mortgage Amendments, including, but not limited to, the following: |
A. | copies, certified as true and complete by an officer of each Security Party, of the constitutional documents of each Security Party; |
B. | copies, certified as true and complete by an officer of each Security Party, of the resolutions of the board of directors and shareholders, manager or members thereof, as the case may be, evidencing approval of this Agreement, and the Mortgage Amendments, as applicable, and authorizing an appropriate officer or attorney-in-fact to execute the same on its behalf, or other evidence of such approvals and authorizations; |
C. | copies, certified as true and complete by an officer of each Security Party, of all documents evidencing any other necessary action (including actions by such parties thereto other than the Security Parties as may be required by the Creditors), approvals or consents with respect to this Agreement and the Mortgage Amendments; and |
D. | if applicable, the Facility Agent shall have received a certified copy of any power of attorney under which this Agreement and any other document to be executed pursuant to this Agreement (including the Mortgage Amendments) was or is to be executed on behalf of each Security Party; |
(v). | Resignation Letters. Fully executed but undated resignation letters for any newly appointed director or officer of each Borrower. |
(vi). | Amended & Restated Subordinated Working Capital Loan. Falcon Global and the SEACOR Parent shall have entered into a second amended and restated subordinated loan agreement which shall amend and restate that certain working capital loan dated as of April 28, 2017, as amended and restated by a first amended and restated subordinated loan agreement dated as of June 30, 2017, pursuant to which Falcon Global shall receive from the SEACOR Parent a working capital loan in the amount of $24,500,000; |
(vii). | No Event of Default. The Creditors shall be satisfied that, other than the Disclosed Events of Default, no Event of Default (as defined in the Loan Agreement, as amended hereby) or event which, with the passage of time, giving of notice or both would become an Event of Default under the Loan Agreement (as amended hereby) has occurred and be continuing and the representations and warranties of the Security Parties contained in the Loan Agreement (as amended hereby), this Agreement, and the other Security Documents (as defined in the Loan Agreement, as amended hereby), shall be true on and as of the date of this Agreement. |
(viii). | Legal Opinions. The Facility Agent shall have received legal opinions addressed to the Lenders from Watson Farley & Williams LLP, special counsel to the Security Parties in such form as the Facility Agent may require, as well as such other legal |
(ix). | Fees and expenses. (i) The Facility Agent shall have received from the Borrowers an amendment fee in the amount of $150,000 to be shared equally among the Lenders and (ii) legal counsel for the Creditor Parties shall have received from the Borrowers payment in full of their invoiced fees and disbursements relating to the Loan Agreement and any amendments thereto including this Agreement; and |
(x). | Additional Information. The Facility Agent shall have received all such other agreements, instruments, documents, certificates (including a certificate of good standing), and information of each Security Party as the Creditors deem reasonably necessary or advisable. |
FALCON GLOBAL LLC, as a borrower | ||
By: | /s/ Jesus Llorca | |
Name: Jesus Llorca Title: Vice President | ||
FALCON PEARL LLC, as a borrower | ||
By: | /s/ Jesus Llorca | |
Name: Jesus Llorca Title: Vice President | ||
FALCON DIAMOND LLC, as a borrower | ||
By: | /s/ Jesus Llorca | |
Name: Jesus Llorca Title: Vice President | ||
SEACOR MARINE HOLDINGS INC., as guarantor | ||
By: | /s/ Jesus Llorca | |
Name: Jesus Llorca Title: Executive Vice President | ||
SEACOR LB OFFSHORE (MI) LLC, as a relevant parent | ||
By: | /s/ Jesus Llorca | |
Name: Jesus Llorca Title: Vice President | ||
MONTCO GLOBAL, LLC, as a relevant parent | ||
By: | /s/ Derek Boudreaux | |
Name: Derek Boudreaux Title: Director | ||
DNB BANK ASA, as Facility Agent, Securities Trustee and Swap Bank | ||
By: | /s/ Philippe Wulfers | |
Name: Philippe Wulfers Title: Vice President | ||
By: | /s/ Andrew J. Shohet | |
Name: Andrew J. Shohet Title: Vice President | ||
DNB CAPITAL LLC, as lender | ||
By: | /s/ Philippe Wulfers | |
Name: Philippe Wulfers Title: Vice President | ||
By: | /s/ Andrew J. Shohet | |
Name: Andrew J. Shohet Title: Vice President | ||
CLIFFORD CAPITAL PTE. LTD., as lender | ||
By: | /s/ Richard Desai | |
Name: Richard Desai Title: Chief Risk Officer | ||
NIBC BANK N.V., as lender and swap bank | ||
By: | /s/ M.J. van West | |
Name: M.J. van West Title: Managing Director | ||
By: | /s/ Ekaterina Kouznetsova | |
Name: Ekaterina Kouznetsova Title: VP Oil & Gas Services |
1. | I have reviewed this quarterly report on Form 10-Q of SEACOR Marine Holdings Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the Registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Evaluated the effectiveness of the Registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and |
c) | Disclosed in this report any change in the Registrant's internal control over financial reporting that occurred during the Registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting; and |
5. | The Registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant's auditors and the audit committee of the Registrant's board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant's ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant's internal control over financial reporting. |
Date: | November 9, 2017 | |
/s/ JOHN GELLERT | ||
Name: | John Gellert | |
Title: | Chief Executive Officer (Principal Executive Officer) |
1. | I have reviewed this quarterly report on Form 10-Q of SEACOR Marine Holdings Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the Registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Evaluated the effectiveness of the Registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and |
c) | Disclosed in this report any change in the Registrant's internal control over financial reporting that occurred during the Registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting; and |
5. | The Registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant's auditors and the audit committee of the Registrant's board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant's ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant's internal control over financial reporting. |
Date: | November 9, 2017 | |
/s/ MATTHEW CENAC | ||
Name: | Matthew Cenac | |
Title: | Executive Vice President and Chief Financial Officer (Principal Financial Officer) |
Date: | November 9, 2017 | |
/s/ JOHN GELLERT | ||
Name: | John Gellert | |
Title: | Chief Executive Officer (Principal Executive Officer) |
Date: | November 9, 2017 | |
/s/ MATTHEW CENAC | ||
Name: | Matthew Cenac | |
Title: | Executive Vice President and Chief Financial Officer (Principal Financial Officer) |
Document And Entity Information - shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2017 |
Nov. 09, 2017 |
|
Document And Entity Information [Abstract] | ||
Entity Registrant Name | SEACOR Marine Holdings Inc. | |
Entity Central Index Key | 0001690334 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2017 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 17,671,356 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes |
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Sep. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Trade receivables, allowance for doubtful accounts | $ 4,805 | $ 5,359 |
Common Stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 60,000,000 | 60,000,000 |
Common stock, shares issued | 17,671,356 | 17,671,356 |
Treasury stock, shares held in treasury | 0 | 0 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Condensed Consolidated Statement Of Changes In Equity - USD ($) $ in Thousands |
Total |
Common Stock [Member] |
Additional Paid-In Capital [Member] |
Retained Earnings [Member] |
Accumulated Other Comprehensive Loss [Member] |
Non-Controlling Interests In Subsidiaries [Member] |
---|---|---|---|---|---|---|
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Total equity | $ 550,155 | $ 177 | $ 306,359 | $ 249,412 | $ (11,337) | $ 5,544 |
Distributions of SEACOR Marine restricted stock to Company personnel by SEACOR Holdings | (2,656) | 0 | (2,656) | 0 | 0 | 0 |
Amortization of share awards | 363 | 0 | 363 | 0 | 0 | 0 |
Purchase of subsidiary shares from noncontrolling interests | (3,693) | 0 | (1,114) | 0 | 0 | (2,579) |
Consolidation of 50% or less owned companies | 17,374 | 0 | 0 | 0 | 0 | (17,374) |
Comprehensive income: | ||||||
Net loss attributable to SEACOR Marine Holdings Inc. | (61,862) | 0 | 0 | 0 | ||
Net Loss Attributable to Noncontrolling Interests in Subsidiaries | (4,582) | |||||
Net Loss | (66,444) | |||||
Other comprehensive income | 2,907 | 0 | 0 | 0 | 2,652 | 255 |
Total equity | $ 498,006 | $ 177 | $ 302,952 | $ 187,550 | $ (8,685) | $ 16,012 |
Basis of Presentation and Accounting Policy |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Presentation and Accounting Policy | BASIS OF PRESENTATION AND ACCOUNTING POLICIES The condensed consolidated financial statements include the accounts of SEACOR Marine Holdings Inc. and its consolidated subsidiaries (the “Company”). In the opinion of management, all adjustments (consisting of normal recurring adjustments) have been made to fairly present the Company’s financial position as of September 30, 2017, its results of operations for the three and nine months ended September 30, 2017 and 2016, its comprehensive loss for the three and nine months ended September 30, 2017 and 2016, its changes in equity for the nine months ended September 30, 2017, and its cash flows for the nine months ended September 30, 2017 and 2016. The condensed consolidated financial information for the three and nine months ended September 30, 2017 and 2016 have not been audited by the Company’s independent registered certified public accounting firm. Results of operations for the interim periods presented are not necessarily indicative of operating results for the full year or any future periods. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the Company’s financial statements and related notes thereto for the year ended December 31, 2016 included in the Information Statement filed as Exhibit 99.1 to Amendment No. 3 to the Company’s Registration Statement on Form 10, which was filed on May 4, 2017 (the “Registration Statement”). Unless the context otherwise indicates, any reference in this Quarterly Report on Form 10-Q to the “Company” refers to SEACOR Marine Holdings Inc. and its consolidated subsidiaries and any reference in this Quarterly Report on Form 10-Q to “SEACOR Marine” refers to SEACOR Marine Holdings Inc. without its consolidated subsidiaries. Capitalized terms used and not specifically defined herein have the same meaning given those terms in the Registration Statement. SEACOR Marine was previously a subsidiary of SEACOR Holdings Inc. (along with its other majority owned subsidiaries collectively referred to as “SEACOR Holdings”). On June 1, 2017, SEACOR Holdings completed a spin-off of SEACOR Marine by way of a pro rata dividend of SEACOR Marine’s common stock, par value $0.01 per share (“Common Stock”), all of which was then held by SEACOR Holdings, to SEACOR Holdings shareholders of record as of May 22, 2017 (the “Spin-off”). SEACOR Marine entered into certain agreements with SEACOR Holdings to govern SEACOR Marine’s relationship with SEACOR Holdings following the Spin-off, including a Distribution Agreement, two Transition Services Agreements, an Employee Matters Agreement and a Tax Matters Agreement. Following the Spin-off, SEACOR Marine began to operate as an independent, publicly traded company. Revenue Recognition. The Company recognizes revenue when it is realized or realizable and earned. Revenue is realized or realizable and earned when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the price to the buyer is fixed or determinable, and collectability is reasonably assured. Revenue that does not meet these criteria is deferred until the criteria are met. Deferred revenues, included in other current liabilities in the accompanying condensed consolidated balance sheets, for the nine months ended September 30 were as follows (in thousands):
As of September 30, 2017, deferred revenues of $6.8 million were related to the time charter of several offshore support vessels paid through the conveyance of an overriding royalty interest (the “Conveyance”) in developmental oil and gas producing properties operated by a customer in the U.S. Gulf of Mexico. Payments under the Conveyance, and the timing of such payments, were contingent upon production and energy sale prices. On August 17, 2012, the customer filed a voluntary petition for Chapter 11 bankruptcy. The Company is vigorously defending its interest in connection with the bankruptcy filing; however, payments received under the Conveyance subsequent to May 19, 2012 are subject to creditors’ claims in bankruptcy court. The Company will recognize revenues when reasonably assured of a judgment in its favor. All costs and expenses related to these charters were recognized as incurred. As of September 30, 2017, deferred revenues of $3.1 million related to the time charter of an offshore support vessel to a customer from which collection was not reasonably assured. The Company will recognize revenues when collected or when collection is reasonably assured. All costs and expenses related to this charter were recognized as incurred. Property and Equipment. Equipment, stated at cost, is depreciated using the straight-line method over the estimated useful life of the asset to an estimated salvage value. With respect to each class of asset, the estimated useful life is based upon a newly built asset being placed into service and represents the time period beyond which it is typically not justifiable for the Company to continue to operate the asset in the same or similar manner. From time to time, the Company may acquire older assets that have already exceeded the Company’s useful life policy, in which case the Company depreciates such assets based on its best estimate of remaining useful life, typically the next survey or certification date. As of September 30, 2017, the estimated useful life (in years) of each of the Company’s major categories of new equipment was as follows:
Equipment maintenance and repair costs and the costs of routine overhauls, drydockings and inspections performed on vessels and equipment are charged to operating expense as incurred. Expenditures that extend the useful life or improve the marketing and commercial characteristics of equipment as well as major renewals and improvements to other properties are capitalized. Certain interest costs incurred during the construction of equipment are capitalized as part of the assets’ carrying values and are amortized over such assets’ estimated useful lives. During the nine months ended September 30, 2017, capitalized interest totaled $3.1 million. Impairment of Long-Lived Assets. The Company performs an impairment analysis of long-lived assets used in operations, including intangible assets, when indicators of impairment are present. These indicators may include a significant decrease in the market price of a long-lived asset or asset group, a significant adverse change in the extent or manner in which a long-lived asset or asset group is being used or in its physical condition, or a current period operating or cash flow loss combined with a history of operating or cash flow losses or a forecast that demonstrates continuing losses associated with the use of a long-lived asset or asset group. If the carrying values of the assets are not recoverable, as determined by the estimated undiscounted cash flows, the estimated fair value of the assets or asset groups are compared to their current carrying values and impairment charges are recorded if the carrying value exceeds fair value. The Company performs its testing on an asset or asset group basis. Generally, fair value is determined using valuation techniques, such as expected discounted cash flows or appraisals, as appropriate. During the nine months ended September 30, 2017, the Company recognized impairment charges of $15.7 million primarily associated with one leased-in supply vessel removed from service as it is not expected to be marketed prior to the expiration of its lease, one owned fast support vessel removed from service and two owned in-service specialty vessels. Impairment of 50% or Less Owned Companies. Investments in 50% or less owned companies are reviewed periodically to assess whether there is an other-than-temporary decline in the carrying value of the investment. In its evaluation, the Company considers, among other items, recent and expected financial performance and returns, impairments recorded by the investee and the capital structure of the investee. When the Company determines that the estimated fair value of an investment is below carrying value and the decline is other-than-temporary, the investment is written down to its estimated fair value. Actual results may vary from the Company’s estimates due to the uncertainty regarding projected financial performance, the severity and expected duration of declines in value, and the available liquidity in the capital markets to support the continuing operations of the investee, among other factors. Although the Company believes its assumptions and estimates are reasonable, the investee’s actual performance compared with the estimates could produce different results and lead to additional impairment charges in future periods. During the nine months ended September 30, 2017, the Company recognized impairment charges of $8.8 million, net of tax, related to its 50% or less owned companies. Income Taxes. During the nine months ended September 30, 2017, the Company’s effective income tax rate of 27.4% was primarily due to losses of foreign subsidiaries not benefited, non-deductible expenses associated with the Company’s participation in SEACOR Holdings’ share award plans and non-deductible Spin-off related expenses reimbursed to SEACOR Holdings. During the nine months ended September 30, 2016, the Company’s effective income tax rate of 33.5% was primarily due to losses of foreign subsidiaries not benefited and non-deductible expenses associated with the Company’s participation in SEACOR Holdings’ share award plans. Deferred Gains. The Company has sold certain equipment to its 50% or less owned companies, entered into vessel sale-leaseback transactions with finance companies, and provided seller financing on sales of its equipment to third parties and its 50% or less owned companies. A portion of the gains realized from these transactions were deferred and recorded in deferred gains and other liabilities in the accompanying condensed consolidated balance sheets. Deferred gain activity related to these transactions for the nine months ended September 30 was as follows (in thousands):
Accumulated Other Comprehensive Loss. The components of accumulated other comprehensive loss were as follows (in thousands):
Loss Per Share. Basic loss per common share of the Company is computed based on the weighted average number of common shares issued and outstanding during the relevant periods. Diluted loss per common share of the Company is computed based on the weighted average number of common shares issued and outstanding plus the effect of potentially dilutive securities through the application of the treasury stock and if-converted methods. Dilutive securities for this purpose assumes restricted stock grants have vested and common shares have been issued pursuant to the conversion of the 3.75% Convertible Senior Notes. Computations of basic and diluted loss per common share of SEACOR Marine were as follows (in thousands, except share data):
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New Accounting Pronouncements. On May 28, 2014, the Financial Accounting Standards Board (“FASB”) issued a comprehensive new revenue recognition standard that will supersede nearly all existing revenue recognition guidance under generally accepted accounting principles in the United States. The core principal of the new standard is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The new standard is effective for annual and interim periods beginning after December 15, 2017 and early adoption is permitted. The Company will adopt the new standard on January 1, 2018 and expects to use the modified retrospective approach upon adoption. The Company is currently determining the impact, if any, the adoption of the new accounting standard will have on its consolidated financial position, results of operations or cash flows. Principal versus agent considerations of the new standard with respect to the Company’s vessel management services and pooling arrangements may result in a gross presentation of operating revenues and expenses compared with its current net presentation for results from managed and pooled third party equipment. On February 25, 2016, the FASB issued a comprehensive new leasing standard, which improves transparency and comparability among companies by requiring lessees to recognize a lease liability and a corresponding lease asset for virtually all lease contracts. It also requires additional disclosures about leasing arrangements. The new standard is effective for interim and annual periods beginning after December 15, 2018 and requires a modified retrospective approach to adoption. Early adoption is permitted. The Company has not yet determined what impact, if any, the adoption of the new standard will have on its consolidated financial position, results of operations or cash flows. On August 26, 2016, the FASB issued an amendment to the accounting standard which amends or clarifies guidance on classification of certain transactions in the statement of cash flows, including classification of proceeds from the settlement of insurance claims, debt prepayments, debt extinguishment costs and contingent consideration payments after a business combination. This new standard is effective for the Company as of January 1, 2018 and early adoption is permitted. The Company has not yet determined what impact, if any, the adoption of the new standard will have on its consolidated financial position, results of operations or cash flows. On October 24, 2016, the FASB issued a new accounting standard, which requires companies to account for the income tax effects of intercompany sales and transfers of assets other than inventory. The new standard is effective for interim and annual periods beginning after December 31, 2017 and requires a modified retrospective approach to adoption. The Company has not yet determined what impact, if any, the adoption of the new standard will have on its consolidated financial position, results of operations or cash flows. On November 17, 2016, the FASB issued an amendment to the accounting standard which requires that restricted cash and restricted cash equivalents be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total cash amounts shown on the statement of cash flows. The new standard is effective for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. Early adoption is permitted. |
Business Acquisitions (Notes) |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combination Disclosure [Text Block] |
Sea-Cat Crewzer II. On April 28, 2017, the Company acquired a 100% controlling interest in Sea-Cat Crewzer II, which owns and operates two high-speed offshore catamarans, through the acquisition of its partners’ 50% ownership interest for $11.3 million in cash (see Note 4). The Company performed a fair value analysis and the purchase price was allocated to the acquired assets and liabilities based on their fair values resulting in no goodwill being recorded. Sea-Cat Crewzer. On April 28, 2017, the Company acquired a 100% controlling interest in Sea-Cat Crewzer, which owns and operates two high-speed offshore catamarans, through the acquisition of its partners’ 50% ownership interest for $4.4 million in cash (see Note 4). The Company performed a fair value analysis and the purchase price was allocated to the acquired assets and liabilities based on their fair values resulting in no goodwill being recorded. Purchase Price Accounting. The allocation of the purchase price for the Company’s acquisitions for the nine months ended September 30, 2017 was as follows (in thousands):
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Equipment Acquisitions, Dispositions and Depreciation and Impairment Policies Equipment Acquisitions, Dispositions and Depreciation and Impairment Policies (Notes) |
9 Months Ended |
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Sep. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | EQUIPMENT ACQUISITIONS AND DISPOSITIONS During the nine months ended September 30, 2017, capital expenditures and payments on fair value hedges were $52.7 million. Equipment deliveries during the nine months ended September 30, 2017 included six fast support vessels and one supply vessel. During the nine months ended September 30, 2017, the Company sold two liftboats, one supply vessel, six offshore support vessels previously retired and removed from service and other equipment for net proceeds of $10.3 million ($9.8 million in cash and $0.5 million of previously received deposits) and gains of $4.4 million. |
Investments, At Equity, And Advances To 50% Or Less Owned Companies |
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Equity Method Investment, Summarized Financial Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Investments, At Equity, And Advances To 50% Or Less Owned Companies | INVESTMENTS, AT EQUITY, AND ADVANCES TO 50% OR LESS OWNED COMPANIES MexMar. MexMar owns and operates 15 offshore support vessels in Mexico. During the nine months ended September 30, 2017, the Company and its partner each received cash capital distributions of $7.4 million from MexMar. Dynamic Offshore Drilling. Dynamic was established to construct and operate a jack-up drilling rig that was delivered in the first quarter of 2013. During the nine months ended September 30, 2017, the Company recognized an impairment charge of $8.3 million, net of tax, for an other than temporary decline in the fair value of its equity investment upon Dynamic’s unsuccessful bid on a charter renewal with a customer. Its existing charter terminates in February 2018. Falcon Global. Falcon Global was formed to construct and operate two foreign-flag liftboats. During the three months ended March 31, 2017, the Company and its partner each contributed additional capital of $0.4 million, and the Company made working capital advances of $2.0 million to Falcon Global. In March 2017, the Company’s partner declined to participate in a capital call from Falcon Global and, as a consequence, the Company obtained 100% voting control of Falcon Global in accordance with the terms of the operating agreement. The impact of consolidating Falcon Global’s net assets effective March 31, 2017 to the Company’s financial position was as follows (in thousands):
Sea-Cat Crewzer II. Sea-Cat Crewzer II owns and operates two high-speed offshore catamarans. On April 28, 2017, the Company acquired a 100% controlling interest in Sea-Cat Crewzer II through the acquisition of its partners’ 50% ownership interest for $11.3 million in cash (see Note 2). Sea-Cat Crewzer. Sea-Cat Crewzer owns and operates two high-speed offshore catamarans. On April 28, 2017, the Company acquired a 100% controlling interest in Sea-Cat Crewzer through the acquisition of its partners’ 50% ownership interest for $4.4 million in cash (see Note 2). OSV Partners. OSV Partners owns and operates five offshore support vessels. OSV Partners is currently in non-compliance with its debt service coverage ratio and its maximum leverage ratio pursuant to its term loan facility and has received waivers from its lenders for these financial covenants through and including September 30, 2017. As of September 30, 2017, the remaining principal amount outstanding under the facility was $30.7 million. During the nine months ended September 30, 2017, the Company participated in a $6.0 million preferred equity offering of OSV Partners and invested $2.3 million in support of the venture. The lenders to OSV Partners have no recourse to the Company for outstanding amounts under the facility, and the Company is not obligated to any future fundings to OSV Partners. Other. The Company’s other 50% or less owned companies own and operate eight vessels. During the nine months ended September 30, 2017, the Company made working capital advances of $0.6 million to these 50% or less owned companies and received dividends of $2.4 million and advance repayments of $0.4 million from these 50% or less owned companies. Guarantees. The Company has guaranteed the payment of amounts owed under a vessel charter by one of its 50% or less owned companies. As of September 30, 2017, the total amount guaranteed by the Company under this arrangement was $0.6 million. In addition, as of September 30, 2017, the Company had uncalled capital commitments to two of its 50% or less owned companies totaling $1.7 million. |
Long-Term Debt |
9 Months Ended |
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Long-term Debt and Capital Lease Obligations [Abstract] | |
Long-Term Debt | LONG-TERM DEBT 3.75% Convertible Senior Notes. Certain features included in the 3.75% Convertible Senior Notes, including the Exchange Option and the 2018 Put Option, terminated upon the completion of the Spin-off. Upon completion of the Spin-off, the Company bifurcated the embedded conversion option liability of $27.3 million from the 3.75% Convertible Senior Notes and recorded an additional debt discount. The adjusted unamortized debt discount and issuance costs are being amortized as additional non-cash interest expense over the remaining maturity of the debt (December 1, 2022) for an overall effective interest rate of 7.95%. Falcon Global Term Loan Facility. On August 3, 2015, Falcon Global entered into a term loan facility to finance the construction of two foreign-flag liftboats. The facility consisted of two tranches: (i) a $62.5 million facility to fund the construction costs of the liftboats (“Tranche A”) and (ii) a $18.0 million facility for certain project costs (“Tranche B”). Borrowings under the facility bear interest at variable rates based on LIBOR plus a margin ranging from 2.5% to 2.9%, or an average rate of 3.97% as of September 30, 2017. The facility is secured by the liftboats and is repayable over a five year period that began after the completion of the construction of the liftboats and matures no later than June 30, 2022. In March 2017, the Company’s partner declined to participate in a capital call from Falcon Global and, as a consequence, the Company obtained 100% voting control of Falcon Global in accordance with the terms of the operating agreement. The Company has consolidated into its financial statements Falcon Global’s debt under this facility of $58.3 million, net of issue costs of $1.0 million, effective March 31, 2017 (see Note 4). During April 2017, the Tranche B facility was canceled prior to any funding. During the nine months ended September 30, 2017, Falcon Global made scheduled payments of $3.0 million under Tranche A. As of September 30, 2017, the remaining principal amount outstanding under the facility was $56.4 million and is fully guaranteed by SEACOR Marine. On November 3, 2017, Falcon Global executed an amendment to its term loan facility that requires Falcon Global to maintain a debt service coverage ratio and a minimum cash balance on hand in excess of defined thresholds. In addition, the amendment requires SEACOR Marine, as guarantor, to maintain a debt to capital ratio below a defined threshold and a minimum cash balance on hand in excess of a defined threshold. The amendment provides the Company the ability to retroactively cure any shortfalls in Falcon Global’s debt service coverage ratio. As a result of the amendment and the Company’s ability to meet its financial covenants for the next twelve months, the Company has reclassified outstanding amounts to long-term debt based on the contractual maturity schedule under this term loan facility. Sea-Cat Crewzer II. On April 28, 2017, the Company acquired a 100% controlling interest in Sea-Cat Crewzer II through the acquisition of its partners’ 50% ownership interest (see Notes 2 and 4). Sea-Cat Crewzer II has a term loan facility that matures in 2019 which is secured by a first preferred mortgage on its vessels. The balance of this facility as of September 30, 2017 was $21.5 million. The facility calls for quarterly payments of principal and interest with a balloon payment of $17.3 million due at maturity. The interest rate is fixed at 1.52%, inclusive of an interest rate swap, plus a margin ranging from 2.10% to 2.75% subject to the level of funded debt (overall rate of 4.27% as of September 30, 2017). Since April 28, 2017, the Company made scheduled payments of $0.6 million under this facility. Sea-Cat Crewzer. On April 28, 2017, the Company acquired a 100% controlling interest in Sea-Cat Crewzer through the acquisition of its partners’ 50% ownership interest (see Notes 2 and 4). Sea-Cat Crewzer has a term loan facility that matures in 2019 which is secured by a first preferred mortgage on its vessels. The balance of this facility as of September 30, 2017 was $19.0 million. The facility calls for quarterly payments of principal and interest with a balloon payment of $15.3 million due at maturity. The interest rate is fixed at 1.52%, inclusive of an interest rate swap, plus a margin ranging from 2.10% to 2.75% subject to the level of funded debt (overall rate of 4.27% as of September 30, 2017). Since April 28, 2017, the Company made scheduled payments of $0.5 million under this facility. Other. During the nine months ended September 30, 2017, the Company borrowed $7.1 million under the Sea-Cat Crewzer III Term Loan Facility to fund capital expenditures and made scheduled payments on other long-term debt of $4.5 million. As of September 30, 2017, the Company had $4.7 million of borrowing capacity under subsidiary facilities. Letters of Credit. As of September 30, 2017, the Company had outstanding letters of credit totaling $0.9 million for labor and performance guarantees. |
Derivative Instruments And Hedging Strategies |
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Derivative Instruments And Hedging Strategies | DERIVATIVE INSTRUMENTS AND HEDGING STRATEGIES Derivative instruments are classified as either assets or liabilities based on their individual fair values. The fair values of the Company’s derivative instruments as of September 30, 2017 were as follows (in thousands):
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Fair Value Hedges. From time to time, the Company may designate certain of its foreign currency exchange contracts as fair value hedges in respect of capital commitments denominated in foreign currencies. By entering into these foreign currency exchange contracts, the Company may fix a portion of its capital commitments denominated in foreign currencies in U.S. dollars to protect against currency fluctuations. During the nine months ended September 30, 2017, the Company recognized gains of $0.1 million on these contracts which were included as decreases to the corresponding hedged equipment included in construction in progress in the accompanying condensed consolidated balance sheets. Cash Flow Hedges. The Company and certain of its 50% or less owned companies have interest rate swap agreements designated as cash flow hedges. By entering into these interest rate swap agreements, the Company and its 50% or less owned companies have converted the variable LIBOR or EURIBOR component of certain of their outstanding borrowings to a fixed interest rate. The Company recognized losses on derivative instruments designated as cash flow hedges of $0.3 million and $3.8 million during the nine months ended September 30, 2017 and 2016, respectively. As of September 30, 2017, the interest rate swaps held by the Company and its 50% or less owned companies were as follows:
Other Derivative Instruments. The Company recognized gains (losses) on derivative instruments not designated as hedging instruments for the nine months ended September 30 as follows (in thousands):
The conversion option liability relates to the bifurcated embedded conversion option in the 3.75% Convertible Senior Notes (see Note 5). The Company may hold positions in publicly traded equity options that convey the right or obligation to engage in a future transaction on the underlying equity security or index. Historically, the Company’s investment in equity options has primarily included positions in energy related businesses. These contracts are typically entered into to mitigate the risk of changes in market value of marketable security positions that the Company is either about to acquire, has acquired or is about to dispose. The Company enters and settles forward currency exchange, option and future contracts with respect to various foreign currencies. These contracts enable the Company to buy currencies in the future at fixed exchange rates, which could offset possible consequences of changes in currency exchange rates with respect to the Company’s business conducted outside of the United States. The Company generally does not enter into contracts with forward settlement dates beyond twelve to eighteen months. The Company and certain of its 50% or less owned companies have entered into interest rate swap agreements for the general purpose of providing protection against increases in interest rates, which might lead to higher interest costs. As of September 30, 2017, the interest rate swaps held by the Company or its 50% or less owned companies were as follows:
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Fair Values Of Derivative Instruments | Derivative instruments are classified as either assets or liabilities based on their individual fair values. The fair values of the Company’s derivative instruments as of September 30, 2017 were as follows (in thousands):
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Recognized Gains (Losses) On Derivative Instruments Not Designated As Hedging Instruments | The Company recognized gains (losses) on derivative instruments not designated as hedging instruments for the nine months ended September 30 as follows (in thousands):
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Noncontrolling Interests in Subsidiaries (Notes) |
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Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling Interest [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling Interests in Subsidiaries Disclosure [Text Block] |
Noncontrolling interests in the Company’s consolidated subsidiaries were as follows (in thousands):
Falcon Global. Falcon Global owns and operates two foreign-flag liftboats. In March 2017, the Company’s partner declined to participate in a capital call from Falcon Global and, as a consequence, the Company obtained 100% voting control of Falcon Global in accordance with the terms of the operating agreement and began consolidating Falcon Global’s net assets effective March 31, 2017 (see Note 4). As of September 30, 2017, the net assets of Falcon Global were $25.7 million. During the six months ended September 30, 2017 (the period which Falcon Global has been consolidated into the Company’s financial statements), the net loss of Falcon Global was $9.0 million, of which $4.5 million was attributable to noncontrolling interests. Windcat Workboats. Windcat Workboats owns and operates the Company’s wind farm utility vessels that are primarily used to move personnel and supplies in the major offshore wind markets of Europe. During the nine months ended September 30, 2017, the Company acquired an additional 12.5% of Windcat Workboats from noncontrolling interests for $3.7 million. As of September 30, 2017, the net assets of Windcat Workboats were $22.8 million. During the nine months ended September 30, 2017, the net income of Windcat Workboats was $0.1 million with a net loss attributable to noncontrolling interests of $0.1 million. During the nine months ended September 30, 2016, the net loss of Windcat Workboats was $3.6 million, of which $0.9 million was attributable to noncontrolling interests. |
Related Party Transactions (Notes) |
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Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | 9. RELATED PARTY TRANSACTIONS In connection with the Spin-off, SEACOR Marine entered into certain agreements with SEACOR Holdings to govern SEACOR Marine’s relationship with SEACOR Holdings following the Spin-off, including a Distribution Agreement, two Transition Services Agreements, an Employee Matters Agreement and a Tax Matters Agreement. Following the completion of the Spin-off, the Company is no longer charged management fees by SEACOR Holdings for their corporate costs. However, the Company continues to be supported by SEACOR Holdings for corporate services provided post Spin-off for a fixed net fee of $6.3 million per annum pursuant to the Transition Services Agreements with SEACOR Holdings. The fees incurred will decline as the services and functions provided by SEACOR Holdings are terminated and replicated within the Company. Fees incurred by the Company pursuant to the Transition Services Agreements are recognized as additional administrative and general expenses in the accompanying condensed consolidated statements of loss. As of September 30, 2017, SEACOR Holdings has guaranteed $93.2 million for various obligations of the Company, including: debt facility and letter of credit obligations; performance obligations under sale-leaseback arrangements; and invoiced amounts for funding deficits under the MNOPF. Pursuant to a Transition Services Agreement with SEACOR Holdings, SEACOR Holdings charges the Company a fee of 0.5% on outstanding guaranteed amounts, which declines as the guaranteed obligations are settled by the Company. The Company recognized guarantee fees in connection with its sale-leaseback arrangements of $0.3 million for the nine months ended September 30, 2017 as additional leased-in equipment operating expenses in the accompanying condensed consolidated statements of loss. Guarantee fees paid to SEACOR Holdings for all other obligations are recognized as SEACOR Holdings guarantee fees in the accompanying condensed consolidated statements of loss. Certain officers and employees of the Company received compensation through participation in SEACOR Holdings share award plans. Pursuant to the Employee Matters Agreement with SEACOR Holdings, participating Company personnel vested in all outstanding SEACOR Holdings share awards upon the Spin-off and received SEACOR Marine restricted stock from the Spin-off distribution in connection with outstanding SEACOR Holdings restricted stock held. As a consequence, the Company paid SEACOR Holdings $9.4 million upon completion of the Spin-off, including $2.7 million for the distribution of SEACOR Marine restricted stock, which is amortized over the participants’ remaining vesting periods, and $6.7 million on the accelerated vesting of SEACOR Holdings share awards, which was immediately recognized as additional administrative and general expenses in the accompanying condensed consolidated statements of loss. Pursuant to one of the Transitions Services Agreements with SEACOR Holdings, the Company is obligated to reimburse SEACOR Holdings up to 50% of the severance and restructuring costs actually incurred by SEACOR Holdings as a result of the Spin-off up to, but not in excess of, $6.0 million (such that the Company shall not be obligated to pay more than $3.0 million). As of September 30, 2017, the Company has reimbursed SEACOR Holdings severance and restructuring costs of $0.7 million recognized as additional administrative and general expenses in the accompanying condensed consolidated statements of loss. Immediately preceding the Spin-off and pursuant to an Investment Agreement dated November 30, 2015 with the holders of the 3.75% Convertible Senior Notes, the Company reimbursed SEACOR Holdings for the final settlement of non-deductible Spin-off related expenses of $3.4 million recognized as additional administrative and general expenses in the accompanying condensed consolidated statements of loss. |
Commitments And Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||
Commitments And Contingencies | COMMITMENTS AND CONTINGENCIES As of September 30, 2017, the Company had unfunded capital commitments of $68.9 million that included four fast support vessels, three supply vessels and two wind farm utility vessels. The Company’s capital commitments by year of expected payment are as follows (in thousands):
In the normal course of its business, the Company becomes involved in various other litigation matters including, among other things, claims by third parties for alleged property damages and personal injuries. Management has used estimates in determining the Company’s potential exposure to these matters and has recorded reserves in its financial statements related thereto where appropriate. It is possible that a change in the Company’s estimates of that exposure could occur, but the Company does not expect such changes in estimated costs would have a material effect on the Company’s consolidated financial position, results of operations or cash flows. |
Segment Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | SEGMENT INFORMATION The Company’s segment presentation and basis of measurement of segment profit or loss are as previously described in the Company’s Registration Statement. The following tables summarize the operating results, capital expenditures and assets of the Company’s reportable segments.
The Company’s investments in 50% or less owned companies, which are accounted for under the equity method, also contribute to its consolidated results of operations. As of September 30, 2017, the Company’s investments, at equity, and advances to 50% or less owned companies in MexMar and its other 50% or less owned companies were $59.7 million and $30.3 million, respectively. Equity in earnings (losses) of 50% or less owned companies, net of tax, were as follows (in thousands):
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Basis of Presentation and Accounting Policy (Policy) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis Of Consolidation | The condensed consolidated financial statements include the accounts of SEACOR Marine Holdings Inc. and its consolidated subsidiaries (the “Company”). In the opinion of management, all adjustments (consisting of normal recurring adjustments) have been made to fairly present the Company’s financial position as of September 30, 2017, its results of operations for the three and nine months ended September 30, 2017 and 2016, its comprehensive loss for the three and nine months ended September 30, 2017 and 2016, its changes in equity for the nine months ended September 30, 2017, and its cash flows for the nine months ended September 30, 2017 and 2016. The condensed consolidated financial information for the three and nine months ended September 30, 2017 and 2016 have not been audited by the Company’s independent registered certified public accounting firm. Results of operations for the interim periods presented are not necessarily indicative of operating results for the full year or any future periods. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the Company’s financial statements and related notes thereto for the year ended December 31, 2016 included in the Information Statement filed as Exhibit 99.1 to Amendment No. 3 to the Company’s Registration Statement on Form 10, which was filed on May 4, 2017 (the “Registration Statement”). Unless the context otherwise indicates, any reference in this Quarterly Report on Form 10-Q to the “Company” refers to SEACOR Marine Holdings Inc. and its consolidated subsidiaries and any reference in this Quarterly Report on Form 10-Q to “SEACOR Marine” refers to SEACOR Marine Holdings Inc. without its consolidated subsidiaries. Capitalized terms used and not specifically defined herein have the same meaning given those terms in the Registration Statement. SEACOR Marine was previously a subsidiary of SEACOR Holdings Inc. (along with its other majority owned subsidiaries collectively referred to as “SEACOR Holdings”). On June 1, 2017, SEACOR Holdings completed a spin-off of SEACOR Marine by way of a pro rata dividend of SEACOR Marine’s common stock, par value $0.01 per share (“Common Stock”), all of which was then held by SEACOR Holdings, to SEACOR Holdings shareholders of record as of May 22, 2017 (the “Spin-off”). SEACOR Marine entered into certain agreements with SEACOR Holdings to govern SEACOR Marine’s relationship with SEACOR Holdings following the Spin-off, including a Distribution Agreement, two Transition Services Agreements, an Employee Matters Agreement and a Tax Matters Agreement. Following the Spin-off, SEACOR Marine began to operate as an independent, publicly traded company. |
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Revenue Recognition | Revenue Recognition. The Company recognizes revenue when it is realized or realizable and earned. Revenue is realized or realizable and earned when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the price to the buyer is fixed or determinable, and collectability is reasonably assured. Revenue that does not meet these criteria is deferred until the criteria are met. Deferred revenues, included in other current liabilities in the accompanying condensed consolidated balance sheets, for the nine months ended September 30 were as follows (in thousands):
As of September 30, 2017, deferred revenues of $6.8 million were related to the time charter of several offshore support vessels paid through the conveyance of an overriding royalty interest (the “Conveyance”) in developmental oil and gas producing properties operated by a customer in the U.S. Gulf of Mexico. Payments under the Conveyance, and the timing of such payments, were contingent upon production and energy sale prices. On August 17, 2012, the customer filed a voluntary petition for Chapter 11 bankruptcy. The Company is vigorously defending its interest in connection with the bankruptcy filing; however, payments received under the Conveyance subsequent to May 19, 2012 are subject to creditors’ claims in bankruptcy court. The Company will recognize revenues when reasonably assured of a judgment in its favor. All costs and expenses related to these charters were recognized as incurred. As of September 30, 2017, deferred revenues of $3.1 million related to the time charter of an offshore support vessel to a customer from which collection was not reasonably assured. The Company will recognize revenues when collected or when collection is reasonably assured. All costs and expenses related to this charter were recognized as incurred. |
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Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment. Equipment, stated at cost, is depreciated using the straight-line method over the estimated useful life of the asset to an estimated salvage value. With respect to each class of asset, the estimated useful life is based upon a newly built asset being placed into service and represents the time period beyond which it is typically not justifiable for the Company to continue to operate the asset in the same or similar manner. From time to time, the Company may acquire older assets that have already exceeded the Company’s useful life policy, in which case the Company depreciates such assets based on its best estimate of remaining useful life, typically the next survey or certification date. As of September 30, 2017, the estimated useful life (in years) of each of the Company’s major categories of new equipment was as follows:
Equipment maintenance and repair costs and the costs of routine overhauls, drydockings and inspections performed on vessels and equipment are charged to operating expense as incurred. Expenditures that extend the useful life or improve the marketing and commercial characteristics of equipment as well as major renewals and improvements to other properties are capitalized. Certain interest costs incurred during the construction of equipment are capitalized as part of the assets’ carrying values and are amortized over such assets’ estimated useful lives. During the nine months ended September 30, 2017, capitalized interest totaled $3.1 million. |
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Property, Plant and Equipment [Table Text Block] | As of September 30, 2017, the estimated useful life (in years) of each of the Company’s major categories of new equipment was as follows:
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Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Impairment of Long-Lived Assets. The Company performs an impairment analysis of long-lived assets used in operations, including intangible assets, when indicators of impairment are present. These indicators may include a significant decrease in the market price of a long-lived asset or asset group, a significant adverse change in the extent or manner in which a long-lived asset or asset group is being used or in its physical condition, or a current period operating or cash flow loss combined with a history of operating or cash flow losses or a forecast that demonstrates continuing losses associated with the use of a long-lived asset or asset group. If the carrying values of the assets are not recoverable, as determined by the estimated undiscounted cash flows, the estimated fair value of the assets or asset groups are compared to their current carrying values and impairment charges are recorded if the carrying value exceeds fair value. The Company performs its testing on an asset or asset group basis. Generally, fair value is determined using valuation techniques, such as expected discounted cash flows or appraisals, as appropriate. During the nine months ended September 30, 2017, the Company recognized impairment charges of $15.7 million primarily associated with one leased-in supply vessel removed from service as it is not expected to be marketed prior to the expiration of its lease, one owned fast support vessel removed from service and two owned in-service specialty vessels. Impairment of 50% or Less Owned Companies. Investments in 50% or less owned companies are reviewed periodically to assess whether there is an other-than-temporary decline in the carrying value of the investment. In its evaluation, the Company considers, among other items, recent and expected financial performance and returns, impairments recorded by the investee and the capital structure of the investee. When the Company determines that the estimated fair value of an investment is below carrying value and the decline is other-than-temporary, the investment is written down to its estimated fair value. Actual results may vary from the Company’s estimates due to the uncertainty regarding projected financial performance, the severity and expected duration of declines in value, and the available liquidity in the capital markets to support the continuing operations of the investee, among other factors. Although the Company believes its assumptions and estimates are reasonable, the investee’s actual performance compared with the estimates could produce different results and lead to additional impairment charges in future periods. During the nine months ended September 30, 2017, the Company recognized impairment charges of $8.8 million, net of tax, related to its 50% or less owned companies. |
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Income Tax, Policy [Policy Text Block] | Income Taxes. During the nine months ended September 30, 2017, the Company’s effective income tax rate of 27.4% was primarily due to losses of foreign subsidiaries not benefited, non-deductible expenses associated with the Company’s participation in SEACOR Holdings’ share award plans and non-deductible Spin-off related expenses reimbursed to SEACOR Holdings. During the nine months ended September 30, 2016, the Company’s effective income tax rate of 33.5% was primarily due to losses of foreign subsidiaries not benefited and non-deductible expenses associated with the Company’s participation in SEACOR Holdings’ share award plans. |
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Deferred Gains [Policy Text Block] | Deferred Gains. The Company has sold certain equipment to its 50% or less owned companies, entered into vessel sale-leaseback transactions with finance companies, and provided seller financing on sales of its equipment to third parties and its 50% or less owned companies. A portion of the gains realized from these transactions were deferred and recorded in deferred gains and other liabilities in the accompanying condensed consolidated balance sheets. Deferred gain activity related to these transactions for the nine months ended September 30 was as follows (in thousands):
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Schedule Of Deferred Gain Activity [Table Text Block] | Deferred gain activity related to these transactions for the nine months ended September 30 was as follows (in thousands):
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Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss. The components of accumulated other comprehensive loss were as follows (in thousands):
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Loss Per Common Share of SEACOR | Loss Per Share. Basic loss per common share of the Company is computed based on the weighted average number of common shares issued and outstanding during the relevant periods. Diluted loss per common share of the Company is computed based on the weighted average number of common shares issued and outstanding plus the effect of potentially dilutive securities through the application of the treasury stock and if-converted methods. Dilutive securities for this purpose assumes restricted stock grants have vested and common shares have been issued pursuant to the conversion of the 3.75% Convertible Senior Notes. Computations of basic and diluted loss per common share of SEACOR Marine were as follows (in thousands, except share data):
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Schedule of Weighted Average Number of Shares [Table Text Block] | Computations of basic and diluted loss per common share of SEACOR Marine were as follows (in thousands, except share data):
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New Accounting Pronouncements | New Accounting Pronouncements. On May 28, 2014, the Financial Accounting Standards Board (“FASB”) issued a comprehensive new revenue recognition standard that will supersede nearly all existing revenue recognition guidance under generally accepted accounting principles in the United States. The core principal of the new standard is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The new standard is effective for annual and interim periods beginning after December 15, 2017 and early adoption is permitted. The Company will adopt the new standard on January 1, 2018 and expects to use the modified retrospective approach upon adoption. The Company is currently determining the impact, if any, the adoption of the new accounting standard will have on its consolidated financial position, results of operations or cash flows. Principal versus agent considerations of the new standard with respect to the Company’s vessel management services and pooling arrangements may result in a gross presentation of operating revenues and expenses compared with its current net presentation for results from managed and pooled third party equipment. On February 25, 2016, the FASB issued a comprehensive new leasing standard, which improves transparency and comparability among companies by requiring lessees to recognize a lease liability and a corresponding lease asset for virtually all lease contracts. It also requires additional disclosures about leasing arrangements. The new standard is effective for interim and annual periods beginning after December 15, 2018 and requires a modified retrospective approach to adoption. Early adoption is permitted. The Company has not yet determined what impact, if any, the adoption of the new standard will have on its consolidated financial position, results of operations or cash flows. On August 26, 2016, the FASB issued an amendment to the accounting standard which amends or clarifies guidance on classification of certain transactions in the statement of cash flows, including classification of proceeds from the settlement of insurance claims, debt prepayments, debt extinguishment costs and contingent consideration payments after a business combination. This new standard is effective for the Company as of January 1, 2018 and early adoption is permitted. The Company has not yet determined what impact, if any, the adoption of the new standard will have on its consolidated financial position, results of operations or cash flows. On October 24, 2016, the FASB issued a new accounting standard, which requires companies to account for the income tax effects of intercompany sales and transfers of assets other than inventory. The new standard is effective for interim and annual periods beginning after December 31, 2017 and requires a modified retrospective approach to adoption. The Company has not yet determined what impact, if any, the adoption of the new standard will have on its consolidated financial position, results of operations or cash flows. On November 17, 2016, the FASB issued an amendment to the accounting standard which requires that restricted cash and restricted cash equivalents be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total cash amounts shown on the statement of cash flows. The new standard is effective for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. Early adoption is permitted. |
Business Acquisitions Purchase Price Allocation (Tables) |
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Mergers, Acquisitions and Dispositions Disclosures [Text Block] | Purchase Price Accounting. The allocation of the purchase price for the Company’s acquisitions for the nine months ended September 30, 2017 was as follows (in thousands):
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Fair Value Measurements Fair Value Measurements (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | FAIR VALUE MEASUREMENTS The fair value of an asset or liability is the price that would be received to sell an asset or transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company utilizes a fair value hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value and defines three levels of inputs that may be used to measure fair value. Level 1 inputs are quoted prices in active markets for identical assets or liabilities. Level 2 inputs are observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets, quoted prices in markets that are not active, inputs other than quoted prices that are observable for the asset or liability, or inputs derived from observable market data. Level 3 inputs are unobservable inputs that are supported by little or no market activity and are significant to the fair value of the assets or liabilities. The Company’s financial assets and liabilities as of September 30, 2017 that are measured at fair value on a recurring basis were as follows (in thousands):
The fair value of the conversion option liability on the 3.75% Convertible Senior Notes is estimated with significant inputs that are both observable and unobservable in the market and therefore is considered a Level 3 fair value measurement. The Company used a binomial lattice model that assumes the holders will maximize their value by finding the optimal decision between redeeming at the redemption price or exchanging into shares of Common Stock. This model estimates the fair value of the conversion option as the differential in the fair value of the notes including the conversion option compared with the fair value of the notes excluding the conversion option. The significant observable inputs used in the fair value measurement include the price of Common Stock and the risk free interest rate. The significant unobservable inputs are the estimated Company credit spread and Common Stock volatility, which were based on comparable companies in the marine transportation and energy industries. The estimated fair values of the Company’s other financial assets and liabilities as of September 30, 2017 were as follows (in thousands):
The carrying value of cash, cash equivalents and restricted cash approximates fair value. The fair value of the Company’s long-term debt was estimated by using discounted cash flow analysis based on estimated current rates for similar types of arrangements. It was not practicable to estimate the fair value of certain of the Company’s investments, at cost, in 50% or less owned companies because of the lack of quoted market prices and the inability to estimate fair value without incurring excessive costs. Considerable judgment was required in developing certain of the estimates of fair value and, accordingly, the estimates presented herein are not necessarily indicative of the amounts that the Company could realize in a current market exchange. The Company’s other assets and liabilities that were measured at fair value during the nine months ended September 30, 2017 were as follows (in thousands):
Property and equipment. During the nine months ended September 30, 2017, the Company recognized impairment charges of $10.3 million associated with certain owned offshore support vessels (see Note 1). The Level 2 fair values were determined based on contracted sales prices, sales prices of similar equipment or scrap value, as applicable. Investments, at equity, and advances to 50% or less owned companies. During the nine months ended September 30, 2017, the Company marked its investments in Sea-Cat Crewzer and Sea-Cat Crewzer II to fair value upon the acquisition of 100% controlling interests in the companies. The Level 2 fair values were determined based on the purchase price of the acquired interests. During the nine months ended September 30, 2017, the Company’s partner declined to participate in a capital call from Falcon Global and, as a consequence, the Company obtained 100% voting control of Falcon Global in accordance with the terms of the operating agreement (see Note 4). Upon the change in control, the Company marked its investment in Falcon Global to fair value. Falcon Global’s primary assets consist of two newly constructed foreign-flag liftboats. The estimated fair value of the liftboats was the primary input used by the Company in determining the fair value of its investment based on a third-party valuation using significant inputs that are unobservable in the market and therefore is considered a Level 3 fair value measurement. Due to limited market transactions, the primary valuation methodology applied by the appraisers was an estimated cost approach less economic obsolescence based on utilization and rates per day worked trending over the prior year in the Middle East region where the vessels are intended to operate. During the nine months ended September 30, 2017, the Company recognized an other than temporary decline in the fair value of its equity investment in Dynamic Offshore (see Note 4) and marked its investment to fair value. Dynamic’s primary asset consists of a recently constructed foreign-flag jack-up drilling rig. The estimated fair value of the jack-up drilling rig was the primary input used by the Company in determining the fair value of its investment based on a third-party valuation primarily using sales prices of similar equipment and therefore is considered a Level 2 fair value measurement. The fair value analysis is preliminary and is expected to be completed by December 31, 2017. |
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Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The Company’s financial assets and liabilities as of September 30, 2017 that are measured at fair value on a recurring basis were as follows (in thousands):
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Estimated Fair Value Of Other Financial Assets And Liabilities | The estimated fair values of the Company’s other financial assets and liabilities as of September 30, 2017 were as follows (in thousands):
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Fair value of non-financial assets and liabilities measured on a nonrecurring basis | The Company’s other assets and liabilities that were measured at fair value during the nine months ended September 30, 2017 were as follows (in thousands):
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Noncontrolling Interests in Subsidiaries (Tables) |
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Noncontrolling Interest [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling Interests in Subsidiaries [Table Text Block] | Noncontrolling interests in the Company’s consolidated subsidiaries were as follows (in thousands):
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Segment Information Segment Information (Tables) |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating Results, Capital Expenditures And Assets By Reporting Segment | The following tables summarize the operating results, capital expenditures and assets of the Company’s reportable segments.
The Company’s investments in 50% or less owned companies, which are accounted for under the equity method, also contribute to its consolidated results of operations. As of September 30, 2017, the Company’s investments, at equity, and advances to 50% or less owned companies in MexMar and its other 50% or less owned companies were $59.7 million and $30.3 million, respectively. Equity in earnings (losses) of 50% or less owned companies, net of tax, were as follows (in thousands):
|
Basis of Presentation and Accounting Policies Basis of Consolidation (Details) - $ / shares |
Sep. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Accounting Policies [Abstract] | ||
Common Stock, par value | $ 0.01 | $ 0.01 |
Basis of Presentation and Accounting Policies Revenue Recognition (Details) - USD ($) $ in Thousands |
9 Months Ended | |||
---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Deferred Revenue | $ 10,100 | $ 6,953 | $ 6,953 | $ 6,953 |
Deferred Revenue, Additions | 3,147 | $ 0 | ||
Domestic Destination [Member] | ||||
Deferred Revenue | 6,800 | |||
Geographic Distribution, Foreign [Member] | ||||
Deferred Revenue | $ 3,100 |
Basis of Presentation and Accounting Policies Property and Equipment (Details) $ in Millions |
9 Months Ended |
---|---|
Sep. 30, 2017
USD ($)
| |
Property, Plant and Equipment [Line Items] | |
Capitalized Interest Costs, Including Allowance for Funds Used During Construction | $ 3.1 |
Wind Farm Utility Vessel [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 10 years |
Offshore Support Vessels [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 20 years |
Basis of Presentation and Accounting Policies Impairments of Long-Lived Assets (Details) $ in Millions |
9 Months Ended |
---|---|
Sep. 30, 2017
USD ($)
| |
Property, Plant and Equipment [Abstract] | |
Asset Impairment Charges | $ (15.7) |
Equity Method Investment, Other than Temporary Impairment | $ 8.8 |
Basis of Presentation and Accounting Policies Income Taxes (Details) |
9 Months Ended | |
---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Income Tax Disclosure [Abstract] | ||
Effective Income Tax Rate Reconciliation, Percent | (27.40%) | (33.50%) |
Basis of Presentation and Accounting Policies Deferred Gains (Details) - USD ($) $ in Thousands |
9 Months Ended | |||
---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Deferred Gains | $ 27,437 | $ 35,960 | $ 33,910 | $ 43,298 |
Amortization of Deferred Gains | (364) | (1,153) | ||
Operating Expense [Member] | ||||
Amortization of Deferred Gains | (6,109) | (6,149) | ||
Gain (Loss) on Asset Dispositions and Impairments, Net [Member] | ||||
Amortization of Deferred Gains | $ 0 | $ (36) |
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