SEACOR Holdings Announces Results for the Third Quarter Ended September 30, 2019

FORT LAUDERDALE, Fla., Oct. 28, 2019 (GLOBE NEWSWIRE) -- SEACOR Holdings Inc. (NYSE:CKH) (the “Company”) today announced its results for the quarter ended September 30, 2019:

  • Net income attributable to stockholders was $6.4 million ($0.32 per diluted share) compared with $17.1 million ($0.88 per diluted share) for the quarter ended September 30, 2018.  The prior year quarter included $5.5 million ($0.26 per diluted share) related to the amortization of previously deferred gains and net mark-to-market gains on marketable securities.
  • “Cash Earnings” were $27.7 million compared with $30.0 million for the same quarter last year.  In the current quarter, "cash earnings" included $4.5 million for August and September's results from the acquisition of our partner's 49% ownership in SEA-Vista.
  • Operating income attributable to stockholders, was $12.9 million compared with $23.2 million for the quarter ended September 30, 2018.  The prior year quarter benefited from the amortization of previously deferred gains of $5.3 million.

The Company uses the non-GAAP financial measures "Cash Earnings" and OIBDA in this release; a reconciliation to their closest U.S. GAAP measure is included in "Use of non-GAAP Financial Measures" in this release.

Charles Fabrikant, Executive Chairman, commented on the quarter's results as follows:

"The quarter’s disappointing results were primarily due to the extremely difficult conditions in the inland transportation and logistics services segment and a more typical level of demand for our emergency response services.

The third calendar quarter usually produces improved results in the inland sector compared with the second quarter, but this quarter the inland river system continued to suffer from the carryover effects of extreme flooding earlier in the year.  Our inland group experienced curtailed demand for fleeting and terminal services, and the barge pool incurred higher costs.  The U.S. trade dispute with China and competition from cheaper grain in South America were additional challenges.  These challenges continue today.  Corn export demand continues to be dismal with shipments approximately 60% and export sales approximately 45% below last year.  Export sales are also lagging.  Brazil, whose share of the soybean export market increased after the commencement of the trade dispute, continues to compete aggressively.

Witt-O’Brien’s higher activity level in the third quarter of last year reflected a multitude of early stage response and recovery task orders following the hurricanes of 2017.  Witt O’Brien’s continues to support the long-term recovery efforts of public sector clients such as the U.S. Virgin Islands as well as expand into the private sector.

The overall operating results for the ocean sector in the current quarter were positive and in general compare favorably with the prior year, despite incurring a dry-docking this quarter and an accounting benefit in the prior year from the amortization of previously deferred gains.  The operating discussion below provides more details."

Fabrikant continued, "The highlight of the quarter was the acquisition of our partner’s interest in Sea-Vista, strengthening our position in the Jones Act market and also adding substantial revenue backlog.  As of September 30th, the contracted backlog in SEA-Vista was $237.7 million through 2026.  (The acquisition also should reduce complexity in our financial statements, no doubt an added plus.  We encourage you to review the tables provided in the release which include a reconciliation of cash earnings.)"

Operating Discussion

Ocean Transportation & Logistics Services - Operating income and OIBDA attributable to stockholders were $17.4 million and $26.5 million, in the current year quarter compared with $19.5 million and $27.6 million in the prior year quarter, respectively.  Operating income and OIBDA attributable to stockholders in the prior year quarter benefited from the amortization of previously deferred gains of $4.5 million.

The operating results from harbor towing activities and SEACOR Island Lines improved meaningfully with a combined incremental contribution of $5.3 million and $5.1 million in operating income and OIBDA, respectively, as a consequence of increases in ship docking requirements in various ports and increased unit freight activity into the Bahamas.  These increases were partially offset by lost revenue associated with 42 days of planned out-of-service time required for dry-docking one SEA-Vista vessel and the corresponding dry-docking expense.  This quarter's results also reflected a reduction in the time charter rate for another SEA-Vista vessel in exchange for a multiyear extension of its charter.  Operating results for the Company's military and commercial cargo activities, marketed under the Waterman brand, were also modestly lower in the current quarter.

Inland Transportation & Logistics Services - Operating income and OIBDA were $0.6 million and $6.2 million in the current year quarter compared with $4.3 million and $10.5 million in the prior year quarter, respectively.  As previously detailed, the flooding throughout the inland waterways system and weak demand negatively impacted this year’s Inland’s results.  Margins on freight operations suffered as weak freight rates were exacerbated by usually extended cycle times for trips and higher towing costs.

Witt O’Brien’s - Operating income and OIBDA were $2.1 million and $2.3 million in the current year quarter compared with $6.1 million and $6.6 million in the prior year quarter, respectively.  As previously noted, the prior year had benefited from the initial activity surge that followed the late season hurricanes in 2017.

Capital Commitments - The Company’s capital commitments as of September 30, 2019 were $21.3 million and included the Company's interest in two foreign-flag rail ferries, two inland river towboats, other equipment and vessel and terminal improvements.  Subsequent to September 30, 2019, the Company committed to purchase additional equipment for $0.3 million.

Liquidity and Debt - During the current year quarter, the Company repurchased $18.2 million in principal amount of its 3.0% Convertible Senior Notes for $18.1 million resulting in debt extinguishment losses of $0.8 million.

As of September 30, 2019, the Company’s balances of cash, cash equivalents, restricted cash, restricted cash equivalents, marketable securities and construction reserve funds totaled $88.0 million.  As of September 30, 2019, the Company had exited its position in Dorian LPG Ltd.  Total outstanding debt was $317.8 million, including $25.0 million of outstanding borrowings under the Company's revolving credit facilities, which has subsequently been repaid.  As of September 30, 2019, the Company had $200.0 million of borrowing capacity under its credit facilities.

Equity - For the quarter ended September 30, 2019, basic and diluted weighted average shares outstanding were 19,322,423 and 20,738,919, respectively.  As of September 30, 2019, the total shares outstanding were 20,179,218.

SEACOR Holdings Inc. (“SEACOR”) is a diversified holding company with interests in domestic and international transportation and logistics and risk management consultancy.  SEACOR is publicly traded on the New York Stock Exchange (NYSE) under the symbol CKH.

Certain statements discussed in this release as well as in other reports, materials and oral statements that the Company releases from time to time to the public constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Generally, words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “believe,” “plan,” “target,” “forecast” and similar expressions are intended to identify forward-looking statements.  Such forward-looking statements concern management’s expectations, strategic objectives, business prospects, anticipated economic performance and financial condition and other similar matters.  Forward-looking statements are inherently uncertain and subject to a variety of assumptions, risks and uncertainties that could cause actual results to differ materially from those anticipated or expected by management of the Company.  These statements are not guarantees of future performance and actual events or results may differ significantly from these statements.  Actual events or results are subject to significant known and unknown risks, uncertainties and other important factors, including risks relating to weakening demand for the Company’s services as a result of unplanned customer suspensions, cancellations, rate reductions or non-renewals of vessel charters or failures to finalize commitments to charter vessels, increased government legislation and regulation of the Company’s businesses that could increase the cost of operations, increased competition if the Jones Act is repealed, liability, legal fees and costs in connection with the provision of emergency response services, decreased demand for the Company’s services as a result of declines in the global economy, declines in valuations in the global financial markets and a lack of liquidity in the credit sectors, including, interest rate fluctuations, availability of credit, inflation rates, change in laws, trade barriers, commodity prices and currency exchange fluctuations, activity in foreign countries and changes in foreign political, military and economic conditions, changes in foreign and domestic oil and gas exploration and production activity, safety record requirements related to Ocean Transportation & Logistics Services, decreased demand for Ocean Transportation & Logistics Services due to construction of additional refined petroleum product, natural gas or crude oil pipelines or due to decreased demand for refined petroleum products, crude oil or chemical products or a change in existing methods of delivery, compliance with U.S. and foreign government laws and regulations, including environmental laws and regulations and economic sanctions, the dependence of Ocean Transportation & Logistics Services and Inland Transportation & Logistics Services on several key customers, consolidation of the Company’s customer base, the ongoing need to replace aging vessels, industry fleet capacity, restrictions imposed by the Shipping Acts on the amount of foreign ownership of the Company’s Common Stock, operational risks of Ocean Transportation & Logistics Services and Inland Transportation & Logistics Services, effects of adverse weather conditions and seasonality, the level of grain export volume, the effect of fuel prices on barge towing costs, variability in freight rates for inland river barges, the effect of international economic and political factors on Inland Transportation & Logistics Services’ operations, the ability to realize anticipated benefits from acquisitions and other strategic transactions, adequacy of insurance coverage, the attraction and retention of qualified personnel by the Company, changes in U.S. and international trade policies and various other matters and factors, many of which are beyond the Company’s control as well as those discussed in Item 1A. (Risk Factors) of the Company’s Annual report on Form 10-K and other reports filed by the Company with the Securities and Exchange Commission (“SEC”).  It should be understood that it is not possible to predict or identify all such factors.  Consequently, the preceding should not be considered to be a complete discussion of all potential risks or uncertainties.  Given these factors, investors and analysts should not place undue reliance on forward-looking statements.  Forward-looking statements speak only as of the date of the document in which they are made. The Company disclaims any obligation or undertaking to provide any updates or revisions to any forward-looking statement to reflect any change in the Company’s expectations or any change in events, conditions or circumstances on which the forward-looking statement is based, except as required by law.  It is advisable, however, to consult any further disclosures the Company makes on related subjects in its filings with the SEC, including  Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K (if any).  These statements constitute the Company’s cautionary statements under the Private Securities Litigation Reform Act of 1995.

For additional information, contact Investor Relations at (954) 627-5278 or visit SEACOR’s website at www.seacorholdings.com.

SEACOR HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except share data, unaudited)

  Three Months Ended   Nine Months Ended
  September 30,   September 30,
  2019     2018     2019     2018  
Operating Revenues $ 200,658     $ 220,257     $ 607,205     $ 621,912  
Costs and Expenses:              
Operating 147,386     147,529     437,368     441,474  
Administrative and general 24,923     26,083     78,383     76,189  
Depreciation and amortization 16,975     18,616     51,120     57,069  
  189,284     192,228     566,871     574,732  
Gains on Asset Dispositions, Net 1,145     6,018     2,259     13,569  
Operating Income 12,519     34,047     42,593     60,749  
Other Income (Expense):              
Interest income 2,198     2,450     5,983     6,485  
Interest expense (4,816 )   (8,335 )   (14,832 )   (25,502 )
Debt extinguishment losses, net (777 )   (160 )   (2,073 )   (5,609 )
Marketable security gains (losses), net 144     1,713     16,496     (1,303 )
Foreign currency gains (losses), net (1,877 )   (328 )   (1,663 )   16  
Other, net 505     357     (114 )   54,951  
  (4,623 )   (4,303 )   3,797     29,038  
Income Before Income Tax Expense and Equity in Earnings (Losses) of 50% or Less Owned Companies 7,896     29,744     46,390     89,787  
Income Tax Expense 1,417     3,362     7,012     12,934  
Income Before Equity in Earnings (Losses) of 50% or Less Owned Companies 6,479     26,382     39,378     76,853  
Equity in Earnings (Losses) of 50% or Less Owned Companies, Net of Tax (618 )   821     (3,448 )   1,915  
Net Income 5,861     27,203     35,930     78,768  
Net Income (Loss) Attributable to Noncontrolling Interests in Subsidiaries (544 )   10,136     7,239     15,934  
Net Income Attributable to SEACOR Holdings Inc. $ 6,405     $ 17,067     $ 28,691     $ 62,834  
             
Basic Earnings Per Common Share of SEACOR Holdings Inc. $ 0.33     $ 0.94     $ 1.54     $ 3.48  
             
Diluted Earnings Per Common Share of SEACOR Holdings Inc. $ 0.32     $ 0.88     $ 1.48     $ 3.21  
               
Weighted Average Common Shares Outstanding:              
Basic 19,322,423     18,108,388     18,618,613     18,052,274  
Diluted 20,738,919     21,192,554     19,984,302     22,508,622  
               
OIBDA(1) $ 29,494     $ 52,663     $ 93,713     $ 117,818  
OIBDA Attributable to SEACOR Holdings Inc.(1) $ 28,813     $ 38,630     $ 77,714     $ 96,120  

______________________
1. Non-GAAP Financial Measure.  See explanation of use of non-GAAP financial measures included elsewhere in this release.

SEACOR HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(in thousands, except per share data, unaudited)

  Three Months Ended
  Sep. 30,
2019
  Jun. 30,
2019
  Mar. 31,
2019
  Dec. 31,
2018
  Sep. 30,
2018
Operating Revenues $ 200,658     $ 197,023     $ 209,524     $ 213,838     $ 220,257  
Costs and Expenses:                  
Operating 147,386     142,871     147,111     150,374     147,529  
Administrative and general 24,923     26,714     26,746     26,718     26,083  
Depreciation and amortization 16,975     17,009     17,136     17,510     18,616  
  189,284     186,594     190,993     194,602     192,228  
Gains on Asset Dispositions, Net 1,145     677     437     6,014     6,018  
Operating Income 12,519     11,106     18,968     25,250     34,047  
Other Income (Expense):                  
Interest income 2,198     1,885     1,900     2,245     2,450  
Interest expense (4,816 )   (4,903 )   (5,113 )   (6,181 )   (8,335 )
Debt extinguishment losses, net (777 )   (503 )   (793 )   (6,017 )   (160 )
Marketable security gains (losses), net 144     13,284     3,068     (11,128 )   1,713  
Foreign currency gains (losses), net (1,877 )   (191 )   405     (2,280 )   (328 )
Other, net 505     25     (644 )   13     357  
  (4,623 )   9,597     (1,177 )   (23,348 )   (4,303 )
Income Before Income Tax Expense (Benefit) and Equity in Earnings (Losses) of 50% or Less Owned Companies 7,896     20,703     17,791     1,902     29,744  
Income Tax Expense (Benefit) 1,417     3,390     2,205     (4,519 )   3,362  
Income Before Equity in Earnings (Losses) of 50% or Less Owned Companies 6,479     17,313     15,586     6,421     26,382  
Equity in Earnings (Losses) of 50% or Less Owned Companies, Net of Tax (618 )   (312 )   (2,518 )   (1,987 )   821  
Net Income 5,861     17,001     13,068     4,434     27,203  
Net Income (Loss) attributable to Noncontrolling Interests in Subsidiaries (544 )   2,448     5,335     9,120     10,136  
Net Income (Loss) attributable to SEACOR Holdings Inc. $ 6,405     $ 14,553     $ 7,733     $ (4,686 )   $ 17,067  
                   
Basic Earnings (Loss) Per Common Share of SEACOR Holdings Inc. $ 0.33     $ 0.80     $ 0.42     $ (0.26 )   $ 0.94  
                   
Diluted Earnings (Loss) Per Common Share of SEACOR Holdings Inc. $ 0.32     $ 0.76     $ 0.41     $ (0.26 )   $ 0.88  
                   
Weighted Average Common Shares Outstanding:                  
Basic 19,322     18,289     18,233     18,165     18,108  
Diluted 20,739     19,634     19,571     18,165     21,193  
Common Shares Outstanding at Period End 20,179     18,550     18,528     18,330     18,243  
                   
OIBDA(1) $ 29,494     $ 28,115     $ 36,104     $ 42,760     $ 52,663  
OIBDA attributable to SEACOR Holdings Inc.(1) $ 28,813     $ 21,905     $ 26,996     $ 29,822     $ 38,630  

______________________
1. Non-GAAP Financial Measure.  See explanation of use of non-GAAP financial measures included elsewhere in this release.

SEACOR HOLDINGS INC.
SEGMENT INFORMATION
(in thousands, unaudited)

  Three Months Ended
  Sep. 30,
2019
  Jun. 30,
2019
  Mar. 31,
2019
  Dec. 31,
2018
  Sep. 30,
2018
Ocean Transportation & Logistics Services                  
Operating Revenues $ 102,661     $ 109,681     $ 109,272     $ 97,366     $ 109,939  
Costs and Expenses:                  
Operating 66,888     71,230     69,932     64,234     64,683  
Administrative and general 9,404     9,423     10,198     10,132     9,170  
Depreciation and amortization 10,191     10,230     10,337     10,707     11,298  
  86,483     90,883     90,467     85,073     85,151  
Gains on Asset Dispositions, Net 804     349     17     5,496     5,505  
Operating Income 16,982     19,147     18,822     17,789     30,293  
Other Income (Expense):                  
Foreign currency gains (losses), net (104 )   1     (47 )   (17 )   (24 )
Other, net 505     28     (651 )   (15 )   (96 )
Equity in Earnings (Losses) of 50% or Less Owned Companies, Net of Tax (242 )   700     111     (23 )   2,073  
Segment Profit(1) $ 17,141     $ 19,876     $ 18,235     $ 17,734     $ 32,246  
                   
OIBDA(2) $ 27,173     $ 29,377     $ 29,159     $ 28,496     $ 41,591  
OIBDA(2) attributable to stockholders $ 26,492     $ 23,167     $ 20,051     $ 15,558     $ 27,558  
Dry-docking expenditures for U.S.-flag petroleum and chemical
carriers, dry bulk carriers and PCTC’s (included in operating costs and expenses)
$ 4,310     $ 1,925     $ 1,581     $ 6,430     $ 399  
Out-of-service days for dry-dockings of U.S.-flag petroleum and chemical carriers, dry bulk carriers and PCTC’s 42     30     15     147      
Dry-docking expenditures for all other vessels $ 1,783     $ 1,447     $ 1,250     $ 269     $ 1,489  
                   
Inland Transportation & Logistics Services                  
Operating Revenues $ 72,020     $ 61,455     $ 65,602     $ 77,513     $ 78,845  
Costs and Expenses:                  
Operating 62,775     54,486     54,245     60,801     65,667  
Administrative and general 3,327     3,133     3,356     3,381     3,230  
Depreciation and amortization 5,694     5,699     5,725     5,490     6,197  
  71,796     63,318     63,326     69,672     75,094  
Gains on Asset Dispositions 330     330     420     481     513  
Operating Income (Loss) 554     (1,533 )   2,696     8,322     4,264  
Other Income (Expense):                  
Foreign currency gains (losses), net (1,729 )   (191 )   459     (2,240 )   (282 )
Other, net             37      
Equity in Losses of 50% or Less Owned Companies, Net of Tax (1,084 )   (618 )   (2,472 )   (2,571 )   (1,245 )
Segment Profit (Loss)(1) $ (2,259 )   $ (2,342 )   $ 683     $ 3,548     $ 2,737  
                   
OIBDA(2) $ 6,248     $ 4,166     $ 8,421     $ 13,812     $ 10,461  

 

SEACOR HOLDINGS INC.
SEGMENT INFORMATION (continued)
(in thousands, unaudited)

  Three Months Ended
  Sep. 30,
2019
  Jun. 30,
2019
  Mar. 31,
2019
  Dec. 31,
2018
  Sep. 30,
2018
Witt O’Brien’s                  
Operating Revenues $ 24,345     $ 23,753     $ 32,943     $ 37,702     $ 30,267  
Costs and Expenses:                  
Operating 16,323     15,691     21,772     24,258     16,240  
Administrative and general 5,718     6,831     6,402     6,876     7,389  
Depreciation and amortization 210     209     206     660     492  
  22,251     22,731     28,380     31,794     24,121  
Gains on Asset Dispositions and Impairments 10                  
Operating Income 2,104     1,022     4,563     5,908     6,146  
Other Income (Expense):                  
Foreign currency losses, net             (1 )   (12 )
Other, net (1 )   (2 )   (3 )        
Equity in Earnings (Losses) of 50% or Less Owned Companies, Net of Tax 764     (128 )   (67 )   113     (13 )
Segment Profit $ 2,867     $ 892     $ 4,493     $ 6,020     $ 6,121  
                   
OIBDA(2) $ 2,314     $ 1,231     $ 4,769     $ 6,568     $ 6,638  
                   
Other                  
Operating Revenues $ 1,635     $ 2,142     $ 1,805     $ 1,290     $ 1,214  
Costs and Expenses:                  
Operating 1,404     1,472     1,253     1,106     957  
Administrative and general 846     837     839     551     606  
Depreciation and amortization 501     493     489     237     202  
  2,751     2,802     2,581     1,894     1765  
Gains (Losses) on Asset Dispositions 34     (2 )       37      
Operating Loss (1,082 )   (662 )   (776 )   (567 )   (551 )
Other Income (Expense):                  
Foreign currency losses, net             (4 )    
Other, net             (105 )   452  
Equity in Earnings (Losses) of 50% or Less Owned Companies, Net of Tax (56 )   (266 )   (90 )   494     6  
Segment Loss(1) $ (1,138 )   $ (928 )   $ (866 )   $ (182 )   $ (93 )
                   
Corporate and Eliminations                  
Operating Revenues $ (3 )   $ (8 )   $ (98 )   $ (33 )   $ (8 )
Costs and Expenses:                  
Operating (4 )   (8 )   (91 )   (25 )   (18 )
Administrative and general 5,628     6,490     5,951     5,778     5,688  
Depreciation and amortization 379     378     379     416     427  
  6,003     6,860     6,239     6,169     6,097  
Losses on Asset Dispositions (33 )                
Operating Loss $ (6,039 )   $ (6,868 )   $ (6,337 )   $ (6,202 )   $ (6,105 )
Other Income (Expense):                  
Foreign currency losses, net $ (44 )   $ (1 )   $ (7 )   $ (18 )   $ (10 )
Other, net 1     (1 )   10     96     1  

______________________

  1. Includes amounts attributable to both SEACOR and noncontrolling interests.
  2. Non-GAAP Financial Measure.  See explanation of use of non-GAAP financial measures included elsewhere in this release.

SEACOR HOLDINGS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, unaudited)

  Sep. 30,
2019
  Jun. 30,
2019
  Mar. 31,
2019
  Dec. 31,
2018
  Sep. 30,
2018
ASSETS                  
Current Assets:                  
Cash and cash equivalents $ 76,815     $ 138,757     $ 141,152     $ 144,221     $ 324,564  
Restricted cash and restricted cash equivalents 1,221     1,221     2,992     2,991     2,990  
Marketable securities 6,038     39,368     33,384     30,316     41,445  
Receivables:                  
Trade, net of allowance for doubtful accounts 199,013     164,964     174,278     171,828     151,217  
Other 43,449     38,297     32,635     38,881     45,197  
Inventories 5,224     5,293     4,914     4,530     5,139  
Prepaid expenses and other 6,130     5,640     5,809     5,382     6,087  
Total current assets 337,890     393,540     395,164     398,149     576,639  
Property and Equipment:                  
Historical cost 1,424,907     1,416,084     1,413,488     1,407,329     1,403,886  
Accumulated depreciation (607,727 )   (593,168 )   (577,136 )   (560,819 )   (545,179 )
Net property and equipment 817,180     822,916     836,352     846,510     858,707  
Operating Lease Right-of-Use Assets 153,464     161,518     167,325          
Investments, at Equity, and Advances to 50% or Less Owned Companies 154,968     155,645     155,290     156,886     149,184  
Construction Reserve Funds 3,908     3,908     3,908     3,908     5,908  
Goodwill 32,668     32,714     32,720     32,708     32,767  
Intangible Assets, Net 21,884     22,773     23,662     24,551     25,724  
Other Assets 8,284     10,376     7,385     8,312     8,938  
  $ 1,530,246     $ 1,603,390     $ 1,621,806     $ 1,471,024     $ 1,657,867  
                   
LIABILITIES AND EQUITY                  
Current Liabilities:                  
Current portion of long-term debt $ 76,426     $ 78,301     $ 8,308     $ 8,497     $ 155,737  
Current portion of long-term operating lease liabilities 36,422     36,171     35,540          
Accounts payable and accrued expenses 54,921     35,132     50,097     59,607     56,533  
Other current liabilities 67,603     64,796     67,456     55,659     66,179  
Total current liabilities 235,372     214,400     161,401     123,763     278,449  
Long-Term Debt 241,408     234,445     315,303     346,128     372,657  
Long-Term Operating Lease Liabilities 116,866     125,182     131,862          
Deferred Income Taxes 103,489     99,938     97,758     94,420     99,565  
Deferred Gains and Other Liabilities 20,463     20,768     20,688     52,871     60,502  
Total liabilities 717,598     694,733     727,012     617,182     811,173  
Equity:                  
SEACOR Holdings Inc. stockholders’ equity:                  
Preferred stock                  
Common stock 408     392     392     390     389  
Additional paid-in capital 1,659,428     1,600,838     1,598,804     1,596,642     1,593,430  
Retained earnings 519,023     512,618     498,065     474,809     479,495  
Shares held in treasury, at cost (1,365,594 )   (1,366,432 )   (1,366,267 )   (1,366,773 )   (1,366,773 )
Accumulated other comprehensive loss, net of tax (1400 )   (995 )   (903 )   (914 )   (444 )
  811,865     746,421     730,091     704,154     706,097  
Noncontrolling interests in subsidiaries 783     162,236     164,703     149,688     140,597  
Total equity 812,648     908,657     894,794     853,842     846,694  
  $ 1,530,246     $ 1,603,390     $ 1,621,806     $ 1,471,024     $ 1,657,867  


Use of non-GAAP Financial Measures

The information furnished in this release includes non-GAAP financial measures that differ from measures calculated in accordance with U.S. GAAP, including OIBDA and Cash Earnings.

The Company defines OIBDA as operating income (loss) plus depreciation and amortization.  The Company includes maintenance and repair costs, including major overhauls and regulatory dry-dockings, and gains or losses (or impairments) on asset dispositions in OIBDA.  The Company defines Cash Earnings as OIBDA further adjusted to exclude the amortization of non-cash deferred gains and amounts attributable to its minority partner in SEA-Vista as well as the gain or loss associated with marking-to-market securities held for investment, accrued net cash expense associated with interest on debt obligations, and the Company’s estimate of cash taxes.  Other companies may calculate OIBDA and Cash Earnings differently than the Company, which may limit their usefulness as comparative measures.  In addition, each of these measures does not necessarily represent funds available for discretionary use and are not measures of the Company’s ability to fund its cash needs.  OIBDA and Cash Earnings are each financial metrics used by management (i) as a supplemental internal measure for planning and forecasting overall expectations and for evaluating actual results against such expectations; (ii) as a criteria for annual incentive bonuses paid to Company officers and other shore-based employees; and (iii) to compare to the OIBDA and Cash Earnings of other companies when evaluating potential acquisitions.  In addition, the Company believes Cash Earnings is meaningful to investors because it assists in evaluating the Company’s results of operations and net cash generated by business activities across previous and subsequent accounting periods and to better understand the long-term performance of the Company.  The Company views OIBDA and Cash Earnings as measures of operating performance not liquidity.

The presentation of these non-GAAP financial measures is not intended to be considered in isolation from or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP.

The following tables reconcile these non-GAAP measures to their most closely comparable U.S. GAAP measures (amounts in thousands, except per share data).

  Three Months Ended
September 30,
  Nine Months Ended
September 30,
  2019     2018     2019     2018  
U.S. GAAP Measures              
Net Income Attributable to Stockholders $ 6,405     $ 17,067     $ 28,691     $ 62,834  
Diluted Earnings Per Common Share(1) $ 0.32     $ 0.88     $ 1.48     $ 3.21  
               
Reconciliation of non-GAAP Financial Measures              
Operating Income (U.S. GAAP) $ 12,519     $ 34,047     $ 42,593     $ 60,749  
(+) Depreciation and amortization 16,975     18,616     51,120     57,069  
OIBDA(2) 29,494     52,663     93,713     117,818  
(–) Amortization of deferred gains(3) (330 )   (11,293 )   (991 )   (19,031 )
(–) OIBDA less amortization of deferred gains attributable to noncontrolling interests (681 )   (9,687 )   (15,999 )   (21,698 )
(–) Cash interest expense, net(4) (900 )   (3,301 )   (2,675 )   (11,029 )
(–) Income tax obligation (6 )   (52 )   (19 )   (17,847 )
(+/–) Marketable security gains (losses), net 144     1,713     16,496     (1,303 )
Cash Earnings $ 27,721     $ 30,043     $ 90,525     $ 46,910  

______________________

  1. Includes diluted earnings per common share of $0.01 and $0.06 for the quarter ended September 30, 2019 and 2018, respectively, related to marking-to-market the Company’s marketable security portfolio.  Includes diluted earnings per common share of $0.65 and diluted loss per common share of $0.05 for the six months ended September 30, 2019 and 2018, respectively, related to marking-to-market the Company’s marketable security portfolio.
  2. All references to OIBDA in this release are calculated in the same manner.
  3. For the three and nine months ended September 30, 2019, amortization of deferred gains is included in gains on asset dispositions.  For the three and nine months ended September 30, 2018, amortization of deferred gains may be included in operating expenses as a reduction to rental expense and/or included in gains on asset dispositions.
  4. Amount is net of interest income, excludes capitalized interest, and is net of our partner’s portion of SEA-Vista interest expense of $0.2 million and $0.7 million for the three months ended September 30, 2019 and 2018, respectively, and $1.2 million and $2.1 million for the nine months ended September 30, 2019 and 2018, respectively.

SEACOR HOLDINGS INC.
FLEET COUNTS
(unaudited)

  Sep. 30,
2019
  Jun. 30,
2019
  Mar. 31,
2019
  Dec. 31,
2018
  Sep. 30,
2018
Ocean Transportation & Logistics Services                  
Bulk Transportation Services:                  
Petroleum and chemical carriers - U.S.-flag 9   9   9   10   10
Bulk carriers - U.S.-flag 2   2   2   2   2
Port & Infrastructure Services:                  
Harbor tugs - U.S.-flag 24   24   24   24   24
Harbor tugs - Foreign-flag 8   8   8   8   8
Offshore tug - U.S.-flag 1   1   1   1   1
Ocean liquid tank barges - U.S.-flag 5   5   5   5   5
Ocean liquid tank barges - Foreign-flag 1   1   1   1   1
Specialty vessel - Foreign-flag(1) 2   2   1    
Logistics Services:                  
PCTC(2) - U.S.-flag 4   4   4   4   4
Short-sea container/RORO(3) vessels - Foreign-flag 8   9   9   9   9
RORO(3) & deck barges - U.S.-flag 7   7   7   7   7
Rail ferries - Foreign-flag 2   2   2   2   2
  73   74   73   73   73
                   
Inland Transportation & Logistics Services                  
Bulk Transportation Services:                  
Dry-cargo barges 1,374   1,374   1,374   1,372   1,372
Liquid tank barges 20   20   20   20   20
Specialty barges(4) 5   5   5   5   5
Towboats:                  
4,000 hp - 6,600 hp 18   18   18   18   18
3,300 hp - 3,900 hp 3   3   3   3   3
Less than 3,200 hp 2   2   2   2   2
Port & Infrastructure Services:                  
Harbor boats:                  
1,100 hp - 2,000 hp 18   18   18   18   18
Less than 1,100 hp 6   6   6   6   6
Logistics Services:                  
Dry-cargo barges 33   33   33   35   35
  1,479   1,479   1,479   1,479   1,479

______________________

  1. Line handling vessel.
  2. Pure Car/Truck Carrier.
  3. Roll On/Roll Off.
  4. Includes non-certificated 10,000 and 30,000 barrel inland river liquid tank barges.

 

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Source: SEACOR Holdings Inc.