SEACOR Holdings Announces Results for the Year and Fourth Quarter Ended December 31, 2019

FORT LAUDERDALE, Fla., Feb. 28, 2020 (GLOBE NEWSWIRE) -- SEACOR Holdings Inc. (NYSE:CKH) (the “Company”) today announced its results for the year and fourth quarter ended December 31, 2019:

  • Net income attributable to stockholders for the year ended December 31, 2019 was $26.8 million ($1.38 per diluted share) compared with $58.1 million ($3.04 per diluted share) for the year ended December 31, 2018.  The prior year benefited from a net gain of $42.6 million ($2.18 per diluted share) related to the sale of the Company's interest in Hawker Pacific Airservices ("Hawker").
  • Net loss attributable to stockholders for the quarter ended December 31, 2019 was $1.9 million ($0.10 per diluted share) compared with $4.7 million ($0.26 per diluted share) for the quarter ended December 31, 2018.  The prior year quarter benefited from $5.5 million ($0.30 per diluted share) of net income related to the accelerated amortization of non-cash deferred gains.  Excluding these non-cash gains, loss per diluted share for the quarter ended December 31, 2019 improved by $0.46 compared with the quarter ended December 31, 2018.
  • “Cash Earnings” for the year ended December 31, 2019, after expensing all charges for maintenance, were $110.6 million compared with $57.8 million for the year ended December 31, 2018 and were $20.1 million for the quarter ended December 31, 2019 compared with $10.6 million for the same quarter last year.

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:

  "Cash earnings almost doubled in 2019 compared with 2018 as several of our businesses had record performance.  SEACOR Island Lines had its best year ever, with growth in demand for shipments into the Bahamas and Caribbean.  Waterman Logistics was successful in winning several significant U.S. government cargo moves throughout the year.  Our Jones Act dry bulk vessels produced good cash and harbor towing had 5% more ship assists over last year.  Unfortunately, the inland business battled severe headwinds.  The St. Louis harbor was closed for about 40 days this past year bringing activity to a virtual standstill for our terminals and fleets.  The trade war with China severely curtailed grain exports.  Witt O'Brien's also had less activity than 2018.

In 2019, we expensed approximately $23 million in dry-docking costs and overhauls to maintain our assets.  The related out-of-service time cost us approximately $7 million in lost revenue.”
   

The "Operating Discussion" below is a comparison of results for the quarter ended December 31, 2019 with the prior year quarter ended December 31, 2018.

Operating Discussion

Ocean Transportation & Logistics Services - Operating income and OIBDA were $7.6 million and $17.8 million, in the current year quarter compared with $10.8 million and $21.5 million excluding the accelerated amortization of previously deferred gains of $7.0 million in the prior year quarter, respectively.  Operating results were impacted by $9.0 million of regulatory dry-docking costs. $2.3 million more than the prior year quarter.  During the quarter Ocean Services docked one U.S.-flag petroleum and chemical carrier and one PCTC.

SEACOR Island Lines activity continued to increase in its core markets and it also experienced a boost in demand due to Hurricane Dorian recovery efforts.  Waterman Logistics had increased success this quarter winning bids to move specialized cargo for the U.S. government.  The dry bulk carrier fleet benefited from steady cargo volumes and a full quarter of operations with no dry-dockings.  In the aggregate, these service lines had a positive incremental contribution of $9.9 million compared with the prior year quarter.

Inland Transportation & Logistics Services - Operating income and OIBDA were $1.4 million and $7.5 million in the current year quarter compared with $8.3 million and $13.8 million in the prior year quarter, respectively.  U.S. grain exports through the Center Gulf were down 8% compared with the fourth quarter of 2018, reducing demand for barge freight and negatively impacting activity levels at the terminals and fleets on the Mississippi and Illinois Rivers. The primary culprits were the China trade war, U.S. government farm subsidy programs which were a disincentive to exports, and competition from South America.  Operating results for Inland Services also continued to be impacted by higher costs due to the prolonged flooding experienced earlier in the year and resulting high-water conditions.

Witt O’Brien’s - Operating loss and negative OIBDA were $(0.7) million and $(0.5) million, respectively, in the current year quarter compared with operating income and OIBDA of $5.9 million and $6.6 million, respectively, in the prior year quarter. The primary factors impacting the current year quarter's results were a lack of activity responding to seasonal storms, lower activity in the U.S. Virgin Islands and a bad debt charge of $0.8 million.

Capital Commitments - The Company’s capital commitments as of December 31, 2019 were $62.2 million and included four U.S.-flag harbor tugs, the Company's interest in two foreign-flag rail ferries, four inland river dry-cargo barges, two inland river towboats, other equipment and vessel and terminal improvements.  Subsequent to December 31, 2019, the Company committed to purchase two inland river dry-cargo barges and other equipment for $2.5 million.

Liquidity and Debt - During the current year quarter, the Company repurchased $1.8 million in principal amount of its 3.0% Convertible Senior Notes for $1.8 million.  Subsequent to December 31, 2019, the Company repurchased $2.2 million in principal amount of its 3.0% Convertible Senior Notes for $2.2 million.

As of December 31, 2019, the Company’s balances of cash, cash equivalents, restricted cash, restricted cash equivalents, and marketable securities totaled $86.4 million.  As of December 31, 2019, total outstanding debt was $314.5 million and the Company had $225.0 million of borrowing capacity under its credit facilities.

Equity -  As of December 31, 2019, the total shares outstanding were 20,176,168.

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 (LOSS)
(in thousands, except share data, unaudited)
 
  Three Months Ended   Twelve Months Ended
  December 31,   December 31,
  2019   2018   2019   2018
Operating Revenues $ 192,761     $ 213,838     $ 799,966     $ 835,750  
Costs and Expenses:              
Operating 146,265     150,374     583,633     591,848  
Administrative and general 27,134     26,718     105,517     102,907  
Depreciation and amortization 17,451     17,510     68,571     74,579  
  190,850     194,602     757,721     769,334  
Gains on Asset Dispositions, Net 651     6,014     2,910     19,583  
Operating Income 2,562     25,250     45,155     85,999  
Other Income (Expense):              
Interest income 1,488     2,245     7,471     8,730  
Interest expense (4,401 )   (6,181 )   (19,233 )   (31,683 )
Debt extinguishment losses, net (171 )   (6,017 )   (2,244 )   (11,626 )
Marketable security gains (losses), net 1,898     (11,128 )   18,394     (12,431 )
Foreign currency gains (losses), net 1,351     (2,280 )   (312 )   (2,264 )
Other, net (20 )   13     (134 )   54,964  
  145     (23,348 )   3,942     5,690  
Income Before Income Tax Expense (Benefit) and Equity in Losses of 50% or Less Owned Companies 2,707     1,902     49,097     91,689  
Income Tax Expense (Benefit) 2,817     (4,519 )   9,829     8,415  
Income (Loss) Before Equity in Losses of 50% or Less Owned Companies (110 )   6,421     39,268     83,274  
Equity in Losses of 50% or Less Owned Companies, Net of Tax (1,802 )   (1,987 )   (5,250 )   (72 )
Net Income (Loss) (1,912 )   4,434     34,018     83,202  
Net Income Attributable to Noncontrolling Interests in Subsidiaries 5     9,120     7,244     25,054  
Net Income (Loss) Attributable to SEACOR Holdings Inc. $ (1,917 )   $ (4,686 )   $ 26,774     $ 58,148  
             
Basic Earnings (Loss) Per Common Share of SEACOR Holdings Inc. $ (0.10 )   $ (0.26 )   $ 1.41     $ 3.22  
             
Diluted Earnings (Loss) Per Common Share of SEACOR Holdings Inc. $ (0.10 )   $ (0.26 )   $ 1.38     $ 3.04  
               
Weighted Average Common Shares Outstanding:              
Basic 19,933,277     18,165,361     18,949,981     18,080,778  
Diluted 19,933,277     18,165,361     20,306,332     19,575,689  
               
OIBDA(1) $ 20,013     $ 42,760     $ 113,726     $ 160,578  
OIBDA Attributable to SEACOR Holdings Inc.(1) $ 20,013     $ 29,822     $ 97,727     $ 119,753  
                               

______________________

  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
    Dec. 31, 2019   Sep. 30, 2019   Jun. 30, 2019   Mar. 31, 2019   Dec. 31, 2018
Operating Revenues   $ 192,761     $ 200,658     $ 197,023     $ 209,524     $ 213,838  
Costs and Expenses:                    
Operating   146,265     147,386     142,871     147,111     150,374  
Administrative and general   27,134     24,923     26,714     26,746     26,718  
Depreciation and amortization   17,451     16,975     17,009     17,136     17,510  
    190,850     189,284     186,594     190,993     194,602  
Gains on Asset Dispositions, Net   651     1,145     677     437     6,014  
Operating Income   2,562     12,519     11,106     18,968     25,250  
Other Income (Expense):                    
Interest income   1,488     2,198     1,885     1,900     2,245  
Interest expense   (4,401 )   (4,816 )   (4,903 )   (5,113 )   (6,181 )
Debt extinguishment losses, net   (171 )   (777 )   (503 )   (793 )   (6,017 )
Marketable security gains (losses), net   1,898     144     13,284     3,068     (11,128 )
Foreign currency gains (losses), net   1,351     (1,877 )   (191 )   405     (2,280 )
Other, net   (20 )   505     25     (644 )   13  
    145     (4,623 )   9,597     (1,177 )   (23,348 )
Income Before Income Tax Expense (Benefit) and Equity in Losses of 50% or Less Owned Companies   2,707     7,896     20,703     17,791     1,902  
Income Tax Expense (Benefit)   2,817     1,417     3,390     2,205     (4,519 )
Income (Loss) Before Equity in Losses of 50% or Less Owned Companies   (110 )   6,479     17,313     15,586     6,421  
Equity in Losses of 50% or Less Owned Companies, Net of Tax   (1,802 )   (618 )   (312 )   (2,518 )   (1,987 )
Net Income (Loss)   (1,912 )   5,861     17,001     13,068     4,434  
Net Income (Loss) attributable to Noncontrolling Interests in Subsidiaries   5     (544 )   2,448     5,335     9,120  
Net Income (Loss) attributable to SEACOR Holdings Inc.   $ (1,917 )   $ 6,405     $ 14,553     $ 7,733     $ (4,686 )
                     
Basic Earnings (Loss) Per Common Share of SEACOR Holdings Inc.   $ (0.10 )   $ 0.33     $ 0.80     $ 0.42     $ (0.26 )
                     
Diluted Earnings (Loss) Per Common Share of SEACOR Holdings Inc.   $ (0.10 )   $ 0.32     $ 0.76     $ 0.41     $ (0.26 )
                     
Weighted Average Common Shares Outstanding:                    
Basic   19,933     19,322     18,289     18,233     18,165  
Diluted   19,933     20,739     19,634     19,571     18,165  
Common Shares Outstanding at Period End   20,176     20,179     18,550     18,528     18,330  
                     
OIBDA(1)   $ 20,013     $ 29,494     $ 28,115     $ 36,104     $ 42,760  
OIBDA attributable to SEACOR Holdings Inc.(1)   $ 20,013     $ 28,813     $ 21,905     $ 26,996     $ 29,822  
                                         

______________________

  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
    Dec. 31, 2019   Sep. 30, 2019   Jun. 30, 2019   Mar. 31, 2019   Dec. 31, 2018
Ocean Transportation & Logistics Services                    
Operating Revenues   $ 101,674     $ 102,661     $ 109,681     $ 109,272     $ 97,366  
Costs and Expenses:                    
Operating   72,759     66,888     71,230     69,932     64,234  
Administrative and general   11,190     9,404     9,423     10,198     10,132  
Depreciation and amortization   10,228     10,191     10,230     10,337     10,707  
    94,177     86,483     90,883     90,467     85,073  
Gains on Asset Dispositions, Net   121     804     349     17     5,496  
Operating Income   7,618     16,982     19,147     18,822     17,789  
Other Income (Expense):                    
Foreign currency gains (losses), net   52     (104 )   1     (47 )   (17 )
Other, net   6     505     28     (651 )   (15 )
Equity in Earnings (Losses) of 50% or Less Owned Companies, Net of Tax   (1,238 )   (242 )   700     111     (23 )
Segment Profit(1)   $ 6,438     $ 17,141     $ 19,876     $ 18,235     $ 17,734  
                     
OIBDA(2)   $ 17,846     $ 27,173     $ 29,377     $ 29,159     $ 28,496  
OIBDA(2) attributable to stockholders   $ 17,846     $ 26,492     $ 23,167     $ 20,051     $ 15,558  
Dry-docking expenditures for U.S.-flag petroleum and chemical
carriers, dry bulk carriers and PCTC’s (included in operating costs and expenses)
  $ 8,752     $ 4,310     $ 1,925     $ 1,581     $ 6,430  
Out-of-service days for dry-dockings of U.S.-flag petroleum and chemical carriers, dry bulk carriers and PCTC’s   76     42     30     15     147  
Dry-docking expenditures for all other vessels   $ 289     $ 1,783     $ 1,447     $ 1,250     $ 269  
                     
Inland Transportation & Logistics Services                    
Operating Revenues   $ 68,257     $ 72,020     $ 61,455     $ 65,602     $ 77,513  
Costs and Expenses:                    
Operating   57,912     62,775     54,486     54,245     60,801  
Administrative and general   3,324     3,327     3,133     3,356     3,381  
Depreciation and amortization   6,144     5,694     5,699     5,725     5,490  
    67,380     71,796     63,318     63,326     69,672  
Gains on Asset Dispositions   522     330     330     420     481  
Operating Income (Loss)   1,399     554     (1,533 )   2,696     8,322  
Other Income (Expense):                    
Foreign currency gains (losses), net   1,249     (1,729 )   (191 )   459     (2,240 )
Other, net                   37  
Equity in Losses of 50% or Less Owned Companies, Net of Tax   (2,346 )   (1,084 )   (618 )   (2,472 )   (2,571 )
Segment Profit (Loss)(1)   $ 302     $ (2,259 )   $ (2,342 )   $ 683     $ 3,548  
                     
OIBDA(2)   $ 7,543     $ 6,248     $ 4,166     $ 8,421     $ 13,812  

 
SEACOR HOLDINGS INC.
SEGMENT INFORMATION (continued)
(in thousands, unaudited)
 
    Three Months Ended
    Dec. 31, 2019   Sep. 30, 2019   Jun. 30, 2019   Mar. 31, 2019   Dec. 31, 2018
Witt O’Brien’s                    
Operating Revenues   $ 20,742     $ 24,345     $ 23,753     $ 32,943     $ 37,702  
Costs and Expenses:                    
Operating   14,266     16,323     15,691     21,772     24,258  
Administrative and general   7,008     5,718     6,831     6,402     6,876  
Depreciation and amortization   210     210     209     206     660  
    21,484     22,251     22,731     28,380     31,794  
Gains on Asset Dispositions   8     10              
Operating Income (Loss)   (734 )   2,104     1,022     4,563     5,908  
Other Income (Expense):                    
Foreign currency losses, net   (1 )               (1 )
Other, net   (457 )   (1 )   (2 )   (3 )    
Equity in Earnings (Losses) of 50% or Less Owned Companies, Net of Tax   333     764     (128 )   (67 )   113  
Segment Profit (Loss)   $ (859 )   $ 2,867     $ 892     $ 4,493     $ 6,020  
                     
OIBDA(2)   $ (524 )   $ 2,314     $ 1,231     $ 4,769     $ 6,568  
                     
Other                    
Operating Revenues   $ 2,099     $ 1,635     $ 2,142     $ 1,805     $ 1,290  
Costs and Expenses:                    
Operating   1,335     1,404     1,472     1,253     1,106  
Administrative and general   967     846     837     839     551  
Depreciation and amortization   499     501     493     489     237  
    2,801     2,751     2,802     2,581     1,894  
Gains (Losses) on Asset Dispositions       34     (2 )       37  
Operating Loss   (702 )   (1,082 )   (662 )   (776 )   (567 )
Other Income (Expense):                    
Foreign currency losses, net                   (4 )
Other, net   431                 (105 )
Equity in Earnings (Losses) of 50% or Less Owned Companies, Net of Tax   1,449     (56 )   (266 )   (90 )   494  
Segment Profit (Loss)(1)   $ 1,178     $ (1,138 )   $ (928 )   $ (866 )   $ (182 )
                     
Corporate and Eliminations                    
Operating Revenues   $ (11 )   $ (3 )   $ (8 )   $ (98 )   $ (33 )
Costs and Expenses:                    
Operating   (7 )   (4 )   (8 )   (91 )   (25 )
Administrative and general   4,645     5,628     6,490     5,951     5,778  
Depreciation and amortization   370     379     378     379     416  
    5,008     6,003     6,860     6,239     6,169  
Losses on Asset Dispositions       (33 )            
Operating Loss   $ (5,019 )   $ (6,039 )   $ (6,868 )   $ (6,337 )   $ (6,202 )
Other Income (Expense):                    
Foreign currency gains (losses), net   $ 51     $ (44 )   $ (1 )   $ (7 )   $ (18 )
Other, net       1     (1 )   10     96  
                               

______________________

  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)
 
    Dec. 31, 2019   Sep. 30, 2019   Jun. 30, 2019   Mar. 31, 2019   Dec. 31, 2018
ASSETS                    
Current Assets:                    
Cash and cash equivalents   $ 77,222     $ 76,815     $ 138,757     $ 141,152     $ 144,221  
Restricted cash and restricted cash equivalents   1,222     1,221     1,221     2,992     2,991  
Marketable securities   7,936     6,038     39,368     33,384     30,316  
Receivables:                    
Trade, net of allowance for doubtful accounts   194,022     199,013     164,964     174,278     171,828  
Other   38,881     43,449     38,297     32,635     38,881  
Inventories   5,255     5,224     5,293     4,914     4,530  
Prepaid expenses and other   6,971     6,130     5,640     5,809     5,382  
Total current assets   331,509     337,890     393,540     395,164     398,149  
Property and Equipment:                    
Historical cost   1,442,382     1,424,907     1,416,084     1,413,488     1,407,329  
Accumulated depreciation   (624,024 )   (607,727 )   (593,168 )   (577,136 )   (560,819 )
Net property and equipment   818,358     817,180     822,916     836,352     846,510  
Operating Lease Right-of-Use Assets   144,539     153,464     161,518     167,325      
Investments, at Equity, and Advances to 50% or Less Owned Companies   157,108     154,968     155,645     155,290     156,886  
Construction Reserve Funds       3,908     3,908     3,908     3,908  
Goodwill   32,701     32,668     32,714     32,720     32,708  
Intangible Assets, Net   20,996     21,884     22,773     23,662     24,551  
Other Assets   7,761     8,284     10,376     7,385     8,312  
    $ 1,512,972     $ 1,530,246     $ 1,603,390     $ 1,621,806     $ 1,471,024  
                     
LIABILITIES AND EQUITY                    
Current Liabilities:                    
Current portion of long-term debt   $ 58,854     $ 76,426     $ 78,301     $ 8,308     $ 8,497  
Current portion of long-term operating lease liabilities   36,011     36,422     36,171     35,540      
Accounts payable and accrued expenses   57,595     54,921     35,132     50,097     59,607  
Other current liabilities   57,501     67,603     64,796     67,456     55,659  
Total current liabilities   209,961     235,372     214,400     161,401     123,763  
Long-Term Debt   255,612     241,408     234,445     315,303     346,128  
Long-Term Operating Lease Liabilities   108,295     116,866     125,182     131,862      
Deferred Income Taxes   105,661     103,489     99,938     97,758     94,420  
Deferred Gains and Other Liabilities   20,929     20,463     20,768     20,688     52,871  
Total liabilities   700,458     717,598     694,733     727,012     617,182  
Equity:                    
SEACOR Holdings Inc. stockholders’ equity:                    
Preferred stock                    
Common stock   408     408     392     392     390  
Additional paid-in capital   1,661,002     1,659,428     1,600,838     1,598,804     1,596,642  
Retained earnings   517,106     519,023     512,618     498,065     474,809  
Shares held in treasury, at cost   (1,365,792 )   (1,365,594 )   (1,366,432 )   (1,366,267 )   (1,366,773 )
Accumulated other comprehensive loss, net of tax   (998 )   (1,400 )   (995 )   (903 )   (914 )
    811,726     811,865     746,421     730,091     704,154  
Noncontrolling interests in subsidiaries   788     783     162,236     164,703     149,688  
Total equity   812,514     812,648     908,657     894,794     853,842  
    $ 1,512,972     $ 1,530,246     $ 1,603,390     $ 1,621,806     $ 1,471,024  
                                         

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 December 31,   Twelve Months Ended December 31,
  2019   2018   2019   2018
U.S. GAAP Measures              
Net Income (Loss) Attributable to Stockholders $ (1,917 )   $ (4,686 )   $ 26,774     $ 58,148  
Diluted Earnings (Loss) Per Common Share(1) $ (0.10 )   $ (0.26 )   $ 1.38     $ 3.04  
               
Reconciliation of non-GAAP Financial Measures              
Operating Income (U.S. GAAP) $ 2,562     $ 25,250     $ 45,155     $ 85,999  
(+) Depreciation and amortization 17,451     17,510     68,571     74,579  
OIBDA(2) 20,013     42,760     113,726     160,578  
(–) Amortization of deferred gains(3) (330 )   (9,759 )   (1,322 )   (25,737 )
(–) OIBDA less amortization of deferred gains attributable to noncontrolling interests     (8,593 )   (15,999 )   (30,292 )
(–) Cash interest paid, net(4) (1,459 )   (1,581 )   (4,220 )   (15,408 )
(–) Income tax obligation (6 )   (1,068 )   (25 )   (18,915 )
(+/–) Marketable security gains (losses), net 1,898     (11,128 )   18,394     (12,431 )
Cash Earnings 20,116     10,631     110,554     57,795  
(–) Make-whole premium to redeem the 7.375% notes             (5,601 )
(+) Return from sale of Hawker Pacific Airservices, Limited(5)             51,000  
Proxy for cash earned $ 20,116     $ 10,631     $ 110,554     $ 103,194  
                               

______________________

  1. Includes diluted earnings (loss) per common share of $0.08 and $(0.48) for the quarter ended December 31, 2019 and 2018, respectively, related to marking-to-market the Company’s marketable security portfolio.  Includes diluted earnings (loss) per common share of $0.72 and $(0.50) for the twelve months ended December 31, 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 twelve months ended December 31, 2019, amortization of deferred gains is included in gains on asset dispositions.  For the three and twelve months ended December 31, 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 net interest expense of $0.6 million for the three months ended December 31, 2018 and $1.2 million and $2.7 million for the twelve months ended December 31, 2019 and 2018, respectively.
  5. Cash profit from the sale of the Company's 34.2% interest in Hawker Pacific Airservices, Limited in April 2018.
 
SEACOR HOLDINGS INC.
FLEET COUNTS
(unaudited)
 
    Dec. 31, 2019   Sep. 30, 2019   Jun. 30, 2019   Mar. 31, 2019   Dec. 31, 2018
Ocean Transportation & Logistics Services                    
Bulk Transportation Services:                    
Petroleum and chemical carriers - U.S.-flag   9   9   9   9   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 vessels - Foreign-flag(1)   2   2   2   1  
Logistics Services:                    
PCTC(2) - U.S.-flag   4   4   4   4   4
Short-sea container/RORO(3) vessels - Foreign-flag   8   8   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   73   74   73   73
                     
Inland Transportation & Logistics Services                    
Bulk Transportation Services:                    
Dry-cargo barges   1,372   1,375   1,372   1,374   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   19   18   18   18   18
3,300 hp - 3,900 hp   3   3   3   3   3
Less than 3,300 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   35   32   35   33   35
Towboats:                    
Less than 3,300 hp   1        
    1,481   1,479   1,479   1,479   1,479
                     

______________________

  1. One line handling vessel and one crew transportation 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.