EX-99 3 mv11-5ex99_1.txt EXHIBIT 99.1 PRESS RELEASE SEACOR SMIT ANNOUNCES THIRD QUARTER RESULTS HOUSTON, TEXAS November 4, 2003 FOR IMMEDIATE RELEASE -- SEACOR SMIT Inc. (NYSE:CKH) announced net earnings for the third quarter ended September 30, 2003 of $2.9 million, or $0.15 per diluted share, on operating revenues of $103.2 million. For the nine months ended September 30, 2003, net earnings were $13.7 million, or $0.71 per diluted share, on operating revenues of $305.3 million. For the third quarter ended September 30, 2002, net earnings were $21.3 million, or $1.02 per diluted share, on operating revenues of $102.1 million. For the nine months ended September 30, 2002, net earnings were $44.9 million, or $2.16 per diluted share, on operating revenues of $303.5 million. For the quarter ended June 30, 2003, net earnings were $6.4 million, or $0.33 per diluted share, on operating revenues of $105.2 million. Financial results for the third quarter ended September 30, 2003 as compared to the immediately preceding quarter were impacted, on a pre-tax basis, by a variety of factors highlighted below and described in greater detail in subsequent paragraphs and tables in this release. o DECREASED OPERATING REVENUES. Operating revenues decreased $1.9 million. Reduced fees and services provided on a major environmental project that began in the first quarter and lower demand for helicopter services decreased revenues. These declines were partially offset by higher revenues earned by barges and offshore marine vessels added to the Company's fleet. o DECREASED OPERATING INCOME. Operating income decreased $4.8 million. In addition to those factors affecting revenues, operating income declined in part due to higher North Sea crew wage costs, unscheduled repair costs mostly reflecting insurance deductibles, additional expenses associated with planned overhauls and "start-up" costs associated with the charter-in of 166 additional barges. o DECREASED DEBT EXTINGUISHMENT EXPENSE. Prior quarter results included a $1.0 million charge against income for the write-off of unamortized discount upon debt repayment. o INCREASED INCOME FROM EQUIPMENT SALES. The sale of additional vessels in the third quarter resulted primarily in the $1.9 million increase in equipment sale income. o DECREASED RESULTS FROM DERIVATIVE TRANSACTIONS. The mark-to-market accounting of derivative transactions decreased other income by $3.1 million. o OTHER, NET. Other income declined $1.1 million resulting primarily from foreign currency accounting losses, partially offset by higher security sale gains and the non-recurrence of an investment impairment charge of the prior quarter. The Company's offshore marine fleet declined from 283 vessels at the end of the prior quarter to 279 at September 30, 2003. During the quarter, the Company sold 11 vessels, 4 of which were leased-back, and took delivery of 2 newly constructed crew vessels. Additional fleet change information is described in the attached supplementary operational data schedule. The Company's inland river hopper barge fleet grew from 559 units at the end of the prior quarter to 735 units at September 30, 2003 primarily due to the charter-in of 166 barges in the current quarter. Derivative results in the second and third quarters primarily related to swap agreements with respect to $41.0 million notional amount of the Company's 7.2% Senior Notes due 2009. The Company recognizes unrealized income or loss based on the fair value of such swap agreements. Equity in earnings of 50% or less owned companies increased $0.6 million between quarters. Offshore marine and marine telecommunication joint venture earnings were higher and a newly formed offshore marine joint venture commenced operations. Third quarter results included a $1.0 million charge against equity earnings for U.S. income taxes payable on dividends received from a foreign joint venture. SEACOR and its subsidiaries are engaged in the operation of a diversified fleet of offshore support vessels that service oil and gas exploration and development activities in the U.S. Gulf of Mexico, the North Sea, West Africa, Asia, Latin America and other international regions. Other business activities include environmental services, inland river operations, and helicopter transportation services to the oil and gas industry, mainly in the U.S. Gulf of Mexico. This release includes "forward-looking statements" as described in the Private Securities Litigation Reform Act of 1995. Statements herein that describe the Company's expectations, strategic objectives, business prospects, anticipated economic performance and financial condition and other similar matters involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of results to differ materially from any future results, performance or achievements discussed or implied by such forward-looking statements. Such risks, uncertainties and other important factors include, among others: general economic and business conditions, the cyclical nature of our business, adequacy of insurance coverage, currency exchange fluctuations, changes in foreign political, military and economic conditions, the ongoing need to replace aging vessels, dependence of spill response revenue on the number and size of spills and upon continuing government regulation in this area and our ability to comply with such regulation and other governmental regulation, industry fleet capacity, changes in foreign and domestic oil and gas exploration and production activity, competition, regulatory initiatives, customer preferences, marine-related risks, effects of adverse weather conditions and seasonality on the Company's offshore aviation business, helicopter related risks, effects of adverse weather and river conditions and seasonality on inland river operations, the level of grain export volume, variability in freight rates for inland river barges and various other matters, many of which are beyond the Company's control and other factors. The words "estimate," "project," "intend," "believe," "plan" and similar expressions are intended to identify forward-looking statements. Forward-looking statements included in this release speak only as of the date of this release and SEACOR disclaims any obligation or undertaking to provide any updates or revisions to any forward-looking statement to reflect any change in our expectations or any change in events, conditions, or circumstances on which the forward-looking statement is based. The forward-looking statements in this release should be evaluated together with the many uncertainties that affect our businesses, particularly those mentioned under "Forward-Looking Statements" in Item 7 of our Form 10-K and SEACOR's periodic reporting on Form 10-Q and Form 8-K (if any), which we incorporate by reference. For additional information, contact Randall Blank, Executive Vice President and Chief Financial Officer, at (281) 899-4800 or (212) 307-6633 or visit SEACOR's website at www.seacorsmit.com. 2 SEACOR SMIT INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (IN THOUSANDS, EXCEPT SHARE DATA, UNAUDITED)
Three Months Ended Nine Months Ended September 30, September 30, --------------------------------- ------------------------------ 2003 2002 2003 2002 --------------- --------------- ------------- -------------- Operating Revenues.......................................... $ 103,234 $ 102,137 $ 305,253 $ 303,450 --------------- --------------- ------------- -------------- Costs and Expenses: Operating expenses....................................... 72,264 64,297 208,786 182,586 Administrative and general............................... 13,676 13,434 41,146 38,597 Depreciation and amortization............................ 13,411 14,381 41,755 42,253 --------------- --------------- ------------- -------------- 99,351 92,112 291,687 263,436 --------------- --------------- ------------- -------------- Operating Income............................................ 3,883 10,025 13,566 40,014 --------------- --------------- ------------- -------------- Other Income (Expense): Interest on debt......................................... (4,603) (3,503) (14,528) (11,300) Interest income.......................................... 1,540 2,043 5,966 6,012 Debt extinguishments..................................... - (2,338) (2,091) (2,338) Income from equipment sales or retirements, net.......... 2,349 2,321 7,910 5,558 Gain from Chiles Merger.................................. - 19,719 - 19,719 Gain (loss) from derivative transactions, net............ (443) (3,251) 3,930 (2,619) Gain (loss) from foreign currency transactions, net...... (1,714) 2,203 115 5,454 Gain (loss) from sale of marketable securities, net...... 2,411 3,377 5,852 2,699 Other, net............................................... (15) 4 (759) 4 --------------- --------------- ------------- -------------- (475) 20,575 6,395 23,189 --------------- --------------- ------------- -------------- Income Before Taxes, Minority Interest and Equity Earnings. 3,408 30,600 19,961 63,203 Income Tax Expense.......................................... 1,334 10,369 7,329 21,768 --------------- --------------- ------------- -------------- Income Before Minority Interest and Equity Earnings......... 2,074 20,231 12,632 41,435 Minority Interest in Income of Subsidiaries................. (112) (6) (451) (194) Equity in Earnings of 50% or Less Owned Companies........... 935 1,070 1,503 3,708 --------------- --------------- ------------- -------------- Net Income.................................................. $ 2,897 $ 21,295 $ 13,684 $ 44,949 =============== =============== ============= ============== Basic Earnings Per Common Share............................. $ 0.16 $ 1.06 $ 0.71 $ 2.24 =============== =============== ============= ============== Diluted Earnings Per Common Share........................... $ 0.15 $ 1.02 $ 0.71 $ 2.16 =============== =============== ============= ============== Weighted Average Common Shares: Basic..................................................... 18,629,664 20,051,743 19,182,564 20,056,435 Diluted................................................... 18,785,256 21,186,390 19,479,462 21,325,804
3 SEACOR SMIT INC. AND SUBSIDIARIES SUPPLEMENTARY FINANCIAL AND OPERATIONAL DATA (IN THOUSANDS, EXCEPT SHARE AND OPERATIONAL DATA, UNAUDITED)
Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30, STATEMENTS OF OPERATIONS: 2003 2003 2003 2002 2002 -------------- ------------- -------------- ---------------- -------------- Operating Revenues..................... $ 103,234 $ 105,159 $ 96,860 $ 99,708 $ 102,137 -------------- ------------- -------------- ---------------- -------------- Cost and Expenses: Operating expenses.................. 72,264 69,422 67,100 67,306 64,297 Administrative and general.......... 13,676 13,391 14,079 14,668 13,434 Depreciation and amortization....... 13,411 13,708 14,636 13,991 14,381 -------------- ------------- -------------- ---------------- -------------- 99,351 96,521 95,815 95,965 92,112 -------------- ------------- -------------- ---------------- -------------- Operating Income....................... 3,883 8,638 1,045 3,743 10,025 Net Interest Expense................... (3,063) (2,549) (2,950) (2,943) (1,460) Debt Extinguishment.................... - (966) (1,125) - (2,338) Income from Equipment Sales, net....... 2,349 414 5,147 3,077 2,321 Gain from Chiles Merger................ - - - - 19,719 Derivative Transactions, net........... (443) 2,624 1,749 (2,424) (3,251) Other, net............................. 682 1,797 2,729 1,486 5,584 -------------- ------------- -------------- ---------------- -------------- Income Before Taxes, Minority Interest and Equity Earnings........ 3,408 9,958 6,595 2,939 30,600 Income Tax Expense..................... 1,334 3,596 2,399 1,266 10,369 -------------- ------------- -------------- ---------------- -------------- Income Before Minority Interest and Equity Earnings..................... 2,074 6,362 4,196 1,673 20,231 Minority Interest...................... (112) (241) (98) (32) (6) Equity Earnings........................ 935 322 246 (3) 1,070 -------------- ------------- -------------- ---------------- -------------- Net Income............................. $ 2,897 $ 6,443 $ 4,344 $ 1,638 $ 21,295 ============== ============= ============== ================ ============== WEIGHTED AVERAGE COMMON SHARES: Basic.................................. 18,629,664 19,155,421 19,775,194 19,823,095 20,051,743 Diluted................................ 18,785,256 19,315,817 20,362,120 20,032,229(1) 21,186,390 DILUTED EARNINGS PER COMMON SHARE......... $ 0.15 $ 0.33 $ 0.22 $ 0.08(1) $ 1.02 BALANCE SHEET: Cash, Marketable Securities and Construction Reserve Funds.......... $ 428,372 $ 431,796 $ 498,075 $ 525,931 $ 536,950 Total Assets........................... 1,370,630 1,379,700 1,401,710 1,487,107 1,467,396 Total Long-term Debt................... 332,213 332,187 343,058 402,118 401,347 Stockholders' Equity................... 768,530 772,563 789,971 804,951 804,227 MARINE FLEET RATES PER DAY WORKED ($)(2): Anchor Handling Towing Supply.......... 12,650 12,258 11,963 14,109 13,144 Crew................................... 3,257 3,153 3,158 3,148 3,200 Geophysical, Freight and Other(3)...... - - - - - Mini-Supply............................ 2,998 3,027 3,102 2,983 2,918 Standby Safety......................... 6,733 6,559 6,537 6,288 6,268 Supply and Towing Supply............... 7,470 7,648 7,712 7,834 8,153 Utility................................ 1,774 1,792 1,767 1,762 1,761 MARINE FLEET UTILIZATION (%)(2) : Anchor Handling Towing Supply.......... 76.9 76.7 82.6 73.1 72.9 Crew................................... 75.9 79.9 78.9 78.3 76.3 Geophysical, Freight and Other(3)...... - - - - - Mini-Supply............................ 91.6 89.4 86.8 86.2 90.0 Standby Safety......................... 89.9 89.5 81.6 88.5 88.2 Supply and Towing Supply............... 82.8 81.6 79.9 85.7 88.9 Utility................................ 58.7 56.7 55.1 58.0 62.4 Overall Offshore Marine Fleet....... 77.5 77.8 76.2 76.8 77.7 MARINE FLEET AT PERIOD END(2) : Anchor Handling Towing Supply......... 26 25 26 28 30 Crew.................................. 90 92 92 96 95 Geophysical, Freight and Other........ 2 2 2 2 2 Mini-Supply........................... 32 32 32 33 28 Standby Safety........................ 26 26 26 26 28 Supply and Towing Supply.............. 67 66 69 71 69 Utility............................... 36 40 41 45 48 -------------- ------------- -------------- ---------------- -------------- Total Offshore Marine Fleet......... 279 283 288 301 300 ============== ============= ============== ================ ============== INLAND BARGE FLEET AT PERIOD END.......... 735 559 562 535 482 HELICOPTER FLEET AT PERIOD END............ 36 36 36 36 n.a. HELICOPTER FLIGHT HOURS................... 5,131 5,889 5,061 n.a. n.a.
-------------------- (1) The assumed conversion of the Company's convertible notes into shares of common stock has been excluded from the computation of diluted earnings per share in the three month period ended December 31, 2002 as the effect was antidilutive. In this same period, such shares were also excluded from the calculation of diluted weighted average common shares outstanding. (2) Statistics exclude vessels retired from service in the applicable periods - 12 utility vessels at September 30, 2003. (3) Vessels in this class were out of service during all reported periods. 4 SEACOR SMIT INC. AND SUBSIDIARIES SUPPLEMENTARY OPERATIONAL DATA (UNAUDITED)
As of June 30, As of September 30, 2003 2003 ------------------------------------------------------------------------ ---------- Joint Pooled/ Owned Leased-in Subtotal Ventured Managed Total Total ---------- --------- ---------- ----------- ----------- -------- ---------- OFFSHORE MARINE FLEET ANCHOR HANDLING TOWING SUPPLY: Domestic........................ 3 2 5 - - 5 5 Foreign......................... 15 - 15 6 - 21 20 ---------- --------- ---------- ----------- ----------- -------- ---------- 18 2 20 6 - 26 25 ---------- --------- ---------- ----------- ----------- -------- ---------- CREW: Domestic........................ 33 23 56 1 - 57 60 Foreign......................... 21 - 21 12 - 33 32 ---------- --------- ---------- ----------- ----------- -------- ---------- 54 23 77 13 - 90 92 ---------- --------- ---------- ----------- ----------- -------- ---------- GEOPHYSICAL, FREIGHT AND OTHER: Domestic........................ 1 - 1 - - 1 1 Foreign......................... - - - 1 - 1 1 ---------- --------- ---------- ----------- ----------- -------- ---------- 1 - 1 1 - 2 2 ---------- --------- ---------- ----------- ----------- -------- ---------- MINI-SUPPLY: Domestic........................ 25 3 28 - - 28 28 Foreign......................... 2 - 2 2 - 4 4 ---------- --------- ---------- ----------- ----------- -------- ---------- 27 3 30 2 - 32 32 ---------- --------- ---------- ----------- ----------- -------- ---------- STANDBY SAFETY: Domestic........................ - - - - - - - Foreign......................... 18 - 18 3 5 26 26 ---------- --------- ---------- ----------- ----------- -------- ---------- 18 - 18 3 5 26 26 ---------- --------- ---------- ----------- ----------- -------- ---------- SUPPLY AND TOWING SUPPLY: Domestic........................ 3 7 10 2 1 13 13 Foreign......................... 26 3 29 25 - 54 53 ---------- --------- ---------- ----------- ----------- -------- ---------- 29 10 39 27 1 67 66 ---------- --------- ---------- ----------- ----------- -------- ---------- UTILITY: Domestic........................ 34 - 34 - - 34 37 Foreign......................... 1 - 1 1 - 2 3 ---------- --------- ---------- ----------- ----------- -------- ---------- 35 - 35 1 - 36 40 ---------- --------- ---------- ----------- ----------- -------- ---------- WORLDWIDE FLEET: Domestic........................ 99 35 134 3 1 138 144 Foreign......................... 83 3 86 50 5 141 139 ---------- --------- ---------- ----------- ----------- -------- ---------- 182 38 220 53 6 279 283 ========== ========= ========== =========== =========== ======== ========== INLAND BARGE FLEET Domestic...................... 332 166 498 6 231 735 559 ========== ========= ========== =========== =========== ======== ========== HELICOPTER FLEET Domestic...................... 19 16 35 - 1 36 36 ========== ========= ========== =========== =========== ======== ==========
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