EX-99 2 jd10-26_exhibit.txt 99.1 EXHIBIT 99.1 [Seacor logo] PRESS RELEASE SEACOR HOLDINGS ANNOUNCES THIRD QUARTER RESULTS HOUSTON, TEXAS October 25, 2004 FOR IMMEDIATE RELEASE -- SEACOR Holdings Inc. (NYSE:CKH) announced net earnings for the third quarter ended September 30, 2004 of $3.4 million, or $0.18 per diluted share, on operating revenues of $116.5 million. For the nine months ended September 30, 2004, net earnings were $0.6 million, or $0.03 per diluted share, on operating revenues of $309.9 million. For the third quarter ended September 30, 2003, net earnings were $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 immediately proceeding quarter ended June 30, 2004, the Company reported net earnings of $0.2 million, or $0.01 per diluted share, on operating revenues of $97.4 million. Financial results for the third quarter ended September 30, 2004 as compared to the immediately preceding quarter ended June 30, 2004 were impacted by a variety of factors highlighted below. o INCREASED OPERATING REVENUES. Operating revenues for the quarter were $116.5 million, an increase of $19.1 million from the previous quarter. Environmental Services' emergency response and remediation activities increased in the U.S. and this segments' business expanded internationally. Inland River Services' activity increased; rates for transportation improved, and the Company took delivery of additional barges during the quarter. In Offshore Marine Services, rates per day worked and utilization improved in the U.S. Gulf of Mexico, North Sea and Asian markets. Helicopter flight hours increased in Aviation Services, which is included in the Company's "Other" business segment. o INCREASED OPERATING INCOME. Operating income for the quarter was $8.0 million, an increase of $6.2 million from the previous quarter. Offsetting the increase in operating revenues described above were increases in operating expenses primarily associated with adding equipment to the Inland River fleet and Environmental Services' international expansion. Operating expenses declined in Offshore Marine Services due to fewer drydockings and the success of cost reduction programs. Administration and general expense increased due to business development activities. Gains on asset sales declined $6.2 million between quarters due to fewer vessel dispositions. o INCREASED INTEREST INCOME. Interest income for the quarter was $2.2 million, an increase of $0.5 million from the previous quarter. Interest rates increased between quarters. o DECREASED FOREIGN CURRENCY TRANSACTION LOSSES. Foreign currency transaction losses for the quarter were $0.2 million, a decline of $0.5 million from the previous quarter. Losses resulted from the effect of currency exchange rate changes with respect to loans between SEACOR and certain of its foreign subsidiaries and other transactions denominated in currencies other than the functional currency of various subsidiaries. o MARKETABLE SECURITIES SALE LOSS. Marketable securities sale transactions resulted in net losses of $0.8 million for the quarter as compared to net gains of $2.8 million in the previous quarter. o INCREASED EQUITY EARNINGS. Equity earnings for the quarter were $1.4 million, an increase of $0.7 million from the previous quarter. Results of the previous quarter included a $0.5 million loss from the sale of an interest in an Asian joint venture. Drydock expense in Offshore Marine Services aggregated $1.6 million in the third quarter with 9 vessels completing repairs. One vessel was also sold in the quarter with a carrying value of $1.9 million. Two new and 1 used offshore marine vessel, 115 new dry cargo hopper barges, 13 new chemical tank barges and 3 used inland river towboats were acquired by the Company in the third quarter for aggregate consideration of $59.9 million. Remaining capital commitments at September 30, 2004 for 4 new offshore marine vessels, 68 new dry cargo hopper barges, 22 new chemical tank barges, 7 new helicopters and other equipment aggregated $76.0 million. Deliveries are expected through the remainder of the year and into 2005. An option to acquire 150 newly constructed dry cargo hopper barges expired shortly after the end of the third quarter. In the quarter, SEACOR acquired 51,033 shares of its common stock for treasury at an aggregate cost of $2.1 million pursuant to a stock and debt repurchase plan. At September 30, 2004, $43.3 million of authority remains available for future purchases of the Company's stock and 5-7/8% and 7.2% notes. At September 30, 2004, the Company's cash, marketable securities, and construction reserve funds totaled $440.1 million, a decrease of $1.7 million from the prior quarter. At September 30, 2004, the Company's long-term debt totaled $384.5 million, an increase of $40.0 million from the previous quarter. The Company is exploring the impact of tax legislation recently passed by Congress and signed into law by the President. As a result of this legislation, the Company believes it would be in the position to repatriate accumulated foreign earnings at an effective federal tax rate of 5.25% which, in most cases, is significantly less than the Company's provision for deferred tax liabilities. Subsequent to the end of the quarter, SEACOR entered into a Stock Purchase Agreement with Rowan Companies, Inc. and ERA Aviation, Inc. pursuant to which the Company agreed to purchase all outstanding shares of capital stock of ERA for a cash purchase price of $118.2 million subject to final working capital adjustments. The purchase is also subject to the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act and the satisfaction of customary closing conditions. SEACOR intends to combine Tex-Air Helicopters, Inc. (a wholly-owned subsidiary of SEACOR) with ERA and to continue the combined operation under the name of "ERA Aviation." The combined fleet would consist of 128 helicopters, 16 fixed wing aircraft and 14 operating bases. 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 primarily include Environmental Services, Inland River Services, and Aviation Services. This release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements concerning management'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: the cyclical nature of the oil and gas industry, adequacy of insurance coverage, currency exchange fluctuations, changes in foreign political, military and economic conditions, the ongoing need to replace aging vessels, dependence of offshore marine operations on several customers, 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, vessel-related risks, effects of adverse weather conditions and seasonality on aviation services, helicopter related risks, effects of adverse weather and river conditions and seasonality on inland river operations, the level of grain export volume, the effect of fuel prices on barge towing costs, variability in freight rates for inland river barges, changes in the Company's environmental services segment OSRO classification, liability in connection with providing spill response services, restrictions imposed by the Shipping Act of 1916 and the Merchant Marine Act of 1920 on the amount of foreign ownership of the Company's common stock, the effect of international economic and political factors in inland river operations 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 speak only as of the date of the document in which they are 2 made. We disclaim 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.seacorholdings.com. 3 SEACOR HOLDINGS INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (IN THOUSANDS, EXCEPT SHARE DATA, UNAUDITED)
Three Months Ended Nine Months Ended September 30, September 30, ---------------------------- ---------------------------- 2004 2003 2004 2003 ------------- ------------- ------------ ------------- Operating Revenues $ 116,486 $ 103,234 $ 309,863 $ 305,253 ------------- ------------- ------------ ------------- Costs and Expenses: Operating expenses 79,134 72,264 227,923 208,786 Administrative and general 14,900 13,676 43,833 41,146 Depreciation and amortization 14,352 13,411 42,469 41,755 ------------- ------------- ------------ ------------- 108,386 99,351 314,225 291,687 ------------- ------------- ------------ ------------- Gains (Losses) on Asset Sales(1) (119) 2,349 9,636 7,910 ------------- ------------- ------------ ------------- Operating Income (Loss) 7,981 6,232 5,274 21,476 ------------- ------------- ------------ ------------- Other Income (Expense): Interest income 2,180 1,540 5,222 5,966 Interest expense (5,565) (4,603) (16,331) (14,528) Debt extinguishment expense - - - (2,091) Derivative income (loss), net (140) (443) (621) 3,930 Foreign currency transaction gains (losses), net (184) (1,714) (407) 115 Marketable securities sale gains (losses), net (756) 2,411 4,746 5,852 Other, net 79 (15) 431 (759) ------------- ------------- ------------ ------------- (4,386) (2,824) (6,960) (1,515) ------------- ------------- ------------ ------------- Income Before Taxes, Minority Interest and Equity in Earnings of 50% or Less Owned Companies 3,595 3,408 (1,686) 19,961 Income Taxes 1,511 1,334 178 7,329 ------------- ------------- ------------ ------------- Income Before Minority Interest and Equity in Earnings of 50% or Less Owned Companies 2,084 2,074 (1,864) 12,632 Minority Interest in Net Income of Subsidiaries (108) (112) (194) (451) Equity in Earnings of 50% or Less Owned Companies 1,388 935 2,631 1,503 ------------- ------------- ------------ ------------- Net Income $ 3,364 $ 2,897 $ 573 $ 13,684 ============= ============= ============ ============= Earnings Per Common Share: Basic $ 0.18 $ 0.16 $ 0.03 $ 0.71 Diluted 0.18 0.15 0.03 0.71 Weighted Average Common Shares Outstanding: Basic 18,210,882 18,629,664 18,341,248 19,182,564 Diluted 18,357,438 18,785,256 18,495,594 19,479,462
------------------------- (1) Previously reported gains on asset sales have been reclassified from "Other Income (Expense)" to conform to the three and nine months ended September 30, 2004 financial statement presentation. 4 SEACOR HOLDINGS INC. AND SUBSIDIARIES SUPPLEMENTAL DATA (IN THOUSANDS, EXCEPT PER SHARE DATA, UNAUDITED)
Three Months Ended ------------------------------------------------------------- Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30, 2004 2004 2004 2003 2003 ----------- ---------- ---------- ----------- ---------- STATEMENTS OF OPERATIONS: Operating Revenues $ 116,486 $ 97,403 $ 95,974 $ 100,956 $ 103,234 ----------- ---------- ---------- ----------- ---------- Cost and Expenses: Operating expenses 79,134 73,759 75,030 78,504 72,264 Administrative and general 14,900 13,857 15,076 16,538 13,676 Depreciation and amortization 14,352 14,156 13,961 13,751 13,411 ----------- ---------- ---------- ----------- ---------- 108,386 101,772 104,067 108,793 99,351 ----------- ---------- ---------- ----------- ---------- Gains (Losses) on Asset Sales(1) (119) 6,117 3,638 9,612 2,349 ----------- ---------- ---------- ----------- ---------- Operating Income (Loss) 7,981 1,748 (4,455) 1,775 6,232 ----------- ---------- ---------- ----------- ---------- Other Income (Expense): Interest income 2,180 1,663 1,379 1,565 1,540 Interest expense (5,565) (5,388) (5,378) (4,785) (4,603) Derivative income (loss), net (140) (560) 79 (1,541) (443) Foreign currency transaction gains (losses), net (184) (689) 466 3,625 (1,714) Marketable securities sale gains (losses), net (756) 2,753 2,749 743 2,411 Other, net 79 233 119 106 (15) ----------- ---------- ---------- ----------- ---------- (4,386) (1,988) (586) (287) (2,824) ----------- ---------- ---------- ----------- ---------- Income (Loss) Before Taxes, Minority Interest and Equity in Earnings of 50% or Less Owned Companies 3,595 (240) (5,041) 1,488 3,408 Income Taxes 1,511 169 (1,502) 3,067 1,334 ----------- ---------- ---------- ----------- ---------- Income (Loss) Before Minority Interest and Equity in Earnings of 50% or Less Owned Companies 2,084 (409) (3,539) (1,579) 2,074 Minority Interest in Net (Income) Loss of Subsidiaries (108) (91) 5 (66) (112) Equity in Earnings of 50% or Less Owned Companies 1,388 673 570 (85) 935 ----------- ---------- ---------- ----------- ---------- Net Income (Loss) $ 3,364 $ 173 $ (2,964) $ (1,730) $ 2,897 =========== ========== ========== =========== ========== EARNINGS (LOSS) PER COMMON SHARE: Basic $ 0.18 $ 0.01 $ (0.16) $ (0.09) $ 0.16 Diluted(2) 0.18 0.01 (0.16) (0.09) 0.15 WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: Basic 18,211 18,347 18,468 18,509 18,630 Diluted(2) 18,357 18,476 18,468 18,509 18,785 COMMON SHARES OUTSTANDING AT PERIOD END 18,292 18,313 18,533 18,581 18,729
------------------------------ (1) During the second quarter, the Company reclassified its reporting of "Gains on Asset Sales" to Operating Income (Loss) from "Other Income and Expense." This reclassification has been reflected in all reported periods. (2) Outstanding stock options and restricted stock have been excluded from the computation of diluted loss per common share and diluted weighted average common shares for each of the three month periods ended March 31, 2004 and December 31, 2003 as the effect was anti-dilutive. 5 SEACOR HOLDINGS INC. AND SUBSIDIARIES SUPPLEMENTAL DATA (UNAUDITED)
Three Months Ended --------------------------------------------------------------------- Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30, 2004 2004 2004 2003 2003 ------------ ------------ ------------ ------------ ------------ BALANCE SHEET DATA, AT PERIOD END (IN THOUSANDS): Cash, Securities, Construction Reserve Funds $ 440,091 $ 441,805 $ 441,502 $ 438,131 $ 428,372 Total Assets 1,456,536 1,394,902 1,401,426 1,402,611 1,370,630 Total Long-term Debt 382,319 342,271 332,225 332,179 332,213 Stockholders' Equity 766,763 757,886 766,529 770,446 768,530 OPERATING REVENUES BY SEGMENT (IN THOUSANDS): Offshore Marine Services $ 72,825 $ 67,039 $ 66,016 $ 74,262 $ 81,194 Environmental Services 21,144 14,654 16,392 11,732 10,625 Inland River Services 16,076 10,038 8,576 10,728 7,247 Other(1) 7,485 6,680 5,827 5,328 4,803 Intersegment Eliminations (1,044) (1,008) (837) (1,094) (635) ------------ ------------ ------------ ------------ ------------ $ 116,486 $ 97,403 $ 95,974 $ 100,956 $ 103,234 ============ ============ ============ ============ ============ OPERATING INCOME (LOSS) BY SEGMENT (IN THOUSANDS): Offshore Marine Services $ 6,359 $ 4,677 $ (1,525) $ 3,976 $ 5,779 Environmental Services 2,741 816 954 894 3,421 Inland River Services 3,153 932 1,016 2,523 970 Other(1) (393) (1,308) (1,895) (1,893) (1,122) Corporate Expenses (3,879) (3,369) (3,005) (3,725) (2,816) ------------ ------------ ------------ ------------ ------------ $ 7,981 $ 1,748 $ (4,455) $ 1,775 $ 6,232 ============ ============ ============ ============ ============ OFFSHORE MARINE VESSELS - AVAILABLE DAYS(2): Anchor Handling Towing Supply - Domestic 276 273 304 460 460 Foreign 759 741 724 890 1,012 Supply - Domestic 644 731 790 831 920 Foreign 828 910 910 1,061 1,104 Towing - Domestic 275 182 273 184 184 Foreign 736 837 1,026 1,095 1,196 Crew 6,024 5,921 6,188 6,321 6,699 Geophysical, Freight and Other 50 - 91 92 92 Mini-supply 2,619 2,708 2,730 2,760 2,760 Standby Safety 1,932 1,911 1,911 1,871 1,840 Utility - - - 2,581 3,253 ------------ ------------ ------------ ------------ ------------ 14,143 14,214 14,947 18,146 19,520 ============ ============ ============ ============ ============
---------------------- (1) Primarily includes Aviation Services. (2) Excludes vessels that are bareboat chartered-out, vessels owned by corporations that participate in pooling arrangements with the Company, minority owned joint venture vessels and managed vessels. 6 SEACOR HOLDINGS INC. AND SUBSIDIARIES SUPPLEMENTAL DATA (UNAUDITED)
Three Months Ended -------------------------------------------------------------------- Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30, 2004 2004 2004 2003 2003 ----------- ----------- ----------- ----------- ------------ OFFSHORE MARINE VESSELS - RATES PER DAY WORKED(1) (2): Anchor Handling Towing Supply - Domestic $ 22,009 $ 19,115 $ 15,888 $ 22,111 $ 20,095 Foreign 9,534 9,539 8,524 9,212 9,927 Supply - Domestic 6,720 5,994 6,300 6,079 6,062 Foreign 10,095 9,729 9,067 8,860 8,926 Towing - Domestic 6,118 6,040 6,055 6,091 6,093 Foreign 6,769 6,775 6,586 6,577 7,236 Crew 3,458 3,314 3,297 3,323 3,257 Geophysical, Freight and Other 14,000 - - - - Mini-supply 2,937 2,932 2,976 2,992 2,998 Standby Safety 7,839 7,719 7,694 6,933 6,733 Utility - - - 1,752 1,774 OFFSHORE MARINE VESSELS - UTILIZATION(2): Anchor Handling Towing Supply - Domestic 85.2% 68.3% 68.2% 56.2% 65.9% Foreign 90.4% 63.9% 61.5% 72.8% 81.9% Supply - Domestic 68.9% 76.1% 71.7% 50.5% 72.7% Foreign 86.9% 72.8% 73.4% 86.1% 88.7% Towing - Domestic 64.3% 91.8% 56.7% 100.0% 100.0% Foreign 61.7% 61.8% 67.4% 75.0% 82.7% Crew 93.5% 89.0% 82.8% 78.5% 75.9% Geophysical, Freight and Other 50.0% - - - - Mini-supply 90.9% 86.7% 81.7% 86.3% 91.6% Standby Safety 89.7% 85.9% 87.0% 90.3% 89.9% Utility - - - 52.4% 58.7% Overall Utilization 88.2% 83.2% 78.6% 75.1% 77.5% Utilization Lost to Market Conditions 7.9% 12.9% 17.1% 21.4% 18.9% Utilization Lost to Operating Conditions 3.9% 3.9% 4.3% 3.5% 3.6% HELICOPTER FLIGHT HOURS 7,431 6,714 5,750 5,422 5,131
--------------------------- (1) Revenues for certain vessels, primarily North Sea standby safety, are earned in foreign currencies, principally British Pounds Sterling. These revenues have been converted to U.S. dollars at the weighted average exchange rate for the periods indicated. (2) Excludes vessels that are bareboat chartered-out, vessels owned by corporations that participate in pooling arrangements with the Company, minority owned joint venture vessels and managed vessels. 7 SEACOR HOLDINGS INC. AND SUBSIDIARIES SUPPLEMENTARY DATA (UNAUDITED)
September 30, 2004 -------------------------------------------------- Joint Pooled/ Jun. 30, Mar. 31, Dec. 31, Sep. 30, Owned Leased-in Ventured Managed Total 2004 2004 2003 2003 ----- --------- -------- ------- ----- -------- -------- -------- -------- OFFSHORE MARINE FLEET COUNT: OPERATED DOMESTIC - Anchor Handling Towing Supply 1 2 1 - 4 4 4 6 5 Crew 34 19 1 - 54 49 53 53 57 Geophysical, Freight and Other - - - - - - - 1 1 Mini-supply 22 4 - - 26 26 27 27 28 Standby Safety - - - - - - - - - Supply 3 2 2 1 8 8 10 9 11 Towing 1 2 - - 3 2 2 2 2 Utility - - - - - - - - 34 ------- ------- ------- ------- ------- ------- ------- ------- ------- 61 29 4 1 95 89 96 98 138 ------- ------- ------- ------- ------- ------- ------- ------- ------- OPERATED FOREIGN - Anchor Handling Towing Supply 12 - 1 - 13 14 15 20 21 Crew 19 - 4 - 23 26 33 34 33 Geophysical, Freight and Other 1 - 1 - 2 1 2 3 1 Mini-supply 3 - 1 - 4 5 5 5 4 Standby Safety 19 - 3 5 27 27 27 27 26 Supply 7 2 4 - 13 14 15 17 18 Towing 9 - 21 - 30 31 35 31 36 Utility - - - - - - - - 2 ------- ------- ------- ------- ------- ------- ------- ------- ------- 70 2 35 5 112 118 132 137 141 ------- ------- ------- ------- ------- ------- ------- ------- ------- WORLDWIDE OPERATIONS - Anchor Handling Towing Supply 13 2 2 - 17 18 19 26 26 Crew 53 19 5 - 77 75 86 87 90 Geophysical, Freight and Other 1 - 1 - 2 1 2 4 2 Mini-supply 25 4 1 - 30 31 32 32 32 Standby Safety 19 - 3 5 27 27 27 27 26 Supply 10 4 6 1 21 22 25 26 29 Towing 10 2 21 - 33 33 37 33 38 Utility - - - - - - - - 36 ------- ------- ------- ------- ------- ------- ------- ------- ------- 131 31 39 6 207 207 228 235 279 ======= ======= ======= ======= ======= ======= ======= ======= ======= INLAND BARGES, DOMESTIC Dry Cargo Hopper 631 182 6 210 1,029 911 792 784 735 Chemical Tank 14 - - - 14 1 - - - ------- ------- ------- ------- ------- ------- ------- ------- ------- 645 182 6 210 1,043 912 792 784 735 ======= ======= ======= ======= ======= ======= ======= ======= ======= HELICOPTERS, DOMESTIC 25 18 - 1 44 43 43 41 36 ======= ======= ======= ======= ======= ======= ======= ======= =======
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