SEACOR Holdings Announces Second Quarter Results

HOUSTON--(BUSINESS WIRE)--Aug. 9, 2005--SEACOR Holdings Inc. (NYSE:CKH) announced net earnings for the second quarter ended June 30, 2005 of $25.1 million, or $1.20 per diluted share, on operating revenues of $177.8 million. For the six months ended June 30, 2005, net earnings were $43.7 million, or $2.11 per diluted share, on operating revenues of $343.0 million.

For the second quarter ended June 30, 2004, net earnings were $0.2 million, or $0.01 per diluted share, on operating revenues of $97.4 million. For the six months ended June 30, 2004, net losses were $2.8 million, or $0.15 per diluted share, on operating revenues of $193.4 million.

For the immediately preceding quarter ended March 31, 2005, the Company reported net earnings of $18.6 million, or $0.90 per diluted share, on operating revenues of $165.2 million.

Financial results for the second quarter ended June 30, 2005 as compared to the immediately preceding quarter ended March 31, 2005 were impacted by a variety of factors highlighted below.

-- Increased operating revenues. Operating revenues for the quarter were $177.8 million, an increase of $12.6 million from the previous quarter. Results improved due primarily to increased flight hours in Helicopter Services that included seasonal flight-seeing activities in Alaska, higher rates per day worked and utilization for vessels in Offshore Marine Services and fleet growth in Inland River Services. Operating revenues earned by Environmental Services remained constant between quarters.

-- Decreased operating income. Operating income for the quarter was $24.6 million, a decrease of $1.7 million from the previous quarter. This decline was largely due to $11.7 million less in gain on asset sales, primarily related to the disposition of offshore support vessels.

In the second quarter, improved results from helicopter and vessel operations, excluding the effect of asset sales, were partly offset by reduced earnings in environmental and inland river transportation activities. Results of Helicopter Services improved due to increased flight activities and decreased maintenance expenses. Cost and expenses of Offshore Marine Services remained steady against rising revenues. Spill response profit margins declined in Environmental Services. Margins for Inland River Services declined from the prior quarter in keeping with typical seasonal patterns. Revenues did increase due to the addition of small numbers of barges, but rates did not compensate for increased expenses.

-- Decreased derivative losses, net. Derivative transactions, primarily consisting of foreign currency contracts, resulted in losses for the current quarter of $0.2 million as compared to losses for the prior quarter of $1.6 million.

-- Increased foreign currency transaction gains, net. Foreign currency transaction gains for the current quarter were $4.4 million as compared to losses of $0.5 million in the previous quarter. Gains and 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.

-- Increased marketable securities sale gains, net. Marketable securities sale transactions resulted in net gains of $8.5 million, an increase of $2.3 million from the previous quarter.

As previously announced, on July 1, 2005, the Company acquired Seabulk International, Inc. pursuant to the Agreement and Plan of Merger dated March 16, 2005, among the Company, SBLK Acquisition Corp., CORBULK LLC, and Seabulk International, Inc. Seabulk will be filing a separate Quarterly Report on Form 10-Q for the period ended June 30, 2005. The Company also sold its "fixed wing" operations which were previously held for sale through the sale of all the outstanding shares of capital stock of Era Aviation, Inc. to Era Aviation Investment Group LLC for $15 million in cash.

During the quarter, the Company purchased additional dry cargo covered hopper barges, chemical tank barges and offshore support vessels for aggregate consideration of $107.3 million. At June 30, 2005, capital commitments for helicopters, dry cargo covered hopper barges, offshore support vessels and other equipment aggregated $342.7 million. In addition, the Company placed revocable orders for additional helicopters.

At June 30, 2005, the Company's cash, marketable securities and construction reserve funds totaled $533.4 million, a decrease of $82.0 million from the prior quarter, and long-term debt totaled $597.5 million. The Company has remaining authority of $37.7 million available for future purchases of the Company's common stock and its 5.875% and 7.2% notes.

SEACOR is a global provider of marine support and transportation service, primarily to the energy and chemical industries. SEACOR and its subsidiaries provide customers with a full suite of marine-related services including offshore services, U.S. coastwise shipping, inland river services, helicopter services, environmental services, and offshore and harbor towing services. SEACOR is uniquely focused on providing highly responsive local service, combined with the highest safety standards, innovative technology, modern efficient equipment, and dedicated, professional employees.

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, the operation of Offshore Marine Services and Helicopter Services in a highly competitive environment, changes in foreign political, military and economic conditions, the dependence of Offshore Marine Services and Helicopter Services on several customers, industry fleet capacity, the ongoing need to replace aging vessels, restrictions imposed by the Shipping Acts and Aviation Acts on the amount of foreign ownership of the Company's Common Stock, safety record requirements related to Offshore Marine Services and Helicopter Services, changes in foreign and domestic oil and gas exploration and production activity, vessel and helicopter-related risks of Offshore Marine Services and Helicopter Services, effects of adverse weather conditions and seasonality on Helicopter Services, 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, changes in NRC's OSRO classification, 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, liability in connection with providing spill response services, the effect of international economic and political factors in inland river operations, the intense competition faced by Inland River Services, adequacy of insurance coverage, currency exchange fluctuations, the attraction and retention of qualified personnel by the Company, 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 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 Timothy McKeand, Vice President, at (954) 524-4200 ext. 820 or visit SEACOR's website at www.seacorholdings.com.

                 SEACOR Holdings Inc. and Subsidiaries
                 Consolidated Statements of Operations
           (in thousands, except per share data, unaudited)


                                     Three Months       Six Months 
                                        Ended             Ended
                                       June 30,          June 30,
                                   ----------------- -----------------
                                    2005     2004     2005     2004
                                   -------- -------- -------- --------

Operating Revenues                $177,831 $ 97,403 $343,016 $193,377
                                   -------- -------- -------- --------

Costs and Expenses:
   Operating expenses              117,179   73,759  232,780  148,789
   Administrative and general       19,329   13,857   37,824   28,933
   Depreciation and amortization    18,492   14,156   36,774   28,117
                                   -------- -------- -------- --------
                                   155,000  101,772  307,378  205,839
                                   -------- -------- -------- --------
Gains on Asset Sales                 1,812    6,117   15,328    9,755
                                   -------- -------- -------- --------
Operating Income (Loss)             24,643    1,748   50,966   (2,707)
                                   -------- -------- -------- --------

Other Income (Expense):
   Interest income                   4,484    1,663    8,163    3,042
   Interest expense                 (7,550)  (5,388) (15,141) (10,766)
   Derivative loss, net               (178)    (560)  (1,768)    (481)
   Foreign currency transaction
    gains (losses), net              4,401     (689)   3,852     (223)
   Marketable securities sale
    gains, net                       8,502    2,753   14,736    5,502
   Other, net                          440      233      640      352
                                   -------- -------- -------- --------
                                    10,099   (1,988)  10,482   (2,574)
                                   -------- -------- -------- --------
Income (Loss) Before Income 
 Tax Expense (Benefit), Minority 
 Interest and Equity in Earnings
 of 50% or Less Owned Companies     34,742     (240)  61,448   (5,281)
Income Tax Expense (Benefit)        12,448      169   22,188   (1,333)
                                   -------- -------- -------- --------
Income (Loss) Before Minority 
 Interest and Equity in Earnings 
 of 50% or Less Owned Companies     22,294     (409)  39,260   (3,948)
Minority Interest in Income of
 Subsidiaries                         (154)     (91)    (120)     (86)
Equity in Earnings of 50% or Less
 Owned Companies                     2,594      673    4,211    1,243
                                   -------- -------- -------- --------
Income (Loss) From Continuing
 Operations                         24,734      173   43,351   (2,791)
Income from Discontinued
 Operations, net of taxes              390        -      364        -
                                   -------- -------- -------- --------
Net Income (Loss)                 $ 25,124 $    173 $ 43,715 $ (2,791)
                                   ======== ======== ======== ========

Basic Earnings (Loss) Per Common
 Share:
   Income (Loss) from Continuing
    Operations                    $   1.35 $   0.01 $   2.37 $  (0.15)
   Income from Discontinued
    Operations                        0.02        -     0.02
                                   -------- -------- -------- --------
   Net Income (Loss)              $   1.37 $   0.01 $   2.39 $  (0.15)
                                   ======== ======== ======== ========
Diluted Earnings (Loss) Per Common
 Share:
   Income (Loss) from Continuing
    Operations (1)                $   1.18 $   0.01 $   2.09 $  (0.15)
   Income from Discontinued
    Operations                        0.02        -     0.02        -
                                   -------- -------- -------- --------
   Net Income (Loss) (1)          $   1.20 $   0.01 $   2.11 $  (0.15)
                                   ======== ======== ======== ========
Weighted Average Common 
 Shares Outstanding:
Basic                               18,349   18,347   18,299   18,407
Diluted (1)                         21,924   18,476   21,916   18,407


    (1) Outstanding stock options and restricted stock have been
        excluded from the computations of diluted loss per common
        share and diluted weighted average common shares for the six
        months ended June 30, 2004 as the effect was anti-dilutive.

                 SEACOR Holdings Inc. and Subsidiaries
                           Supplemental Data
           (in thousands, except per share data, unaudited)


                                     Three Months Ended
                        ----------------------------------------------
                        Jun. 30,  Mar. 31, Dec. 31,  Sep. 30, Jun. 30,
                          2005      2005     2004     2004      2004
                        --------- -------- -------- --------- --------
Statements of Operations:
   Operating Revenues   $177,831  $165,185 $181,997 $116,486 $ 97,403
                        --------- -------- -------- -------- ---------
   Cost and Expenses:
      Operating expenses 117,179   115,601  126,240   79,134   73,759
      Administrative and
       general            19,329    18,495   17,592   14,900   13,857
      Depreciation and
       amortization       18,492    18,282   15,365   14,352   14,156
                        --------- -------- -------- -------- ---------
                         155,000   152,378  159,197  108,386  101,772
                        --------- -------- -------- -------- ---------
   Gains (Losses) on
    Asset Sales            1,812    13,516      598     (119)   6,117
                        --------- -------- -------- -------- ---------
   Operating Income       24,643    26,323   23,398    7,981    1,748
                        --------- -------- -------- -------- ---------
   Other Income (Expense):
      Interest income      4,484     3,679    3,200    2,180    1,663
      Interest expense    (7,550)   (7,591)  (6,154)  (5,565)  (5,388)
      Derivative income
       (loss), net          (178)   (1,590)   1,787     (140)    (560)
      Foreign currency
       transaction gains
       (losses), net       4,401      (549)   1,944     (184)    (689)
      Marketable securities
       sale gains 
       (losses), net       8,502     6,234    1,689     (756)   2,753
      Other, net             440       200      108       79      233
                        --------- -------- -------- -------- ---------
                          10,099       383    2,574   (4,386)  (1,988)
                        --------- -------- -------- -------- ---------
   Income (Loss) Before 
    Taxes, Minority Interest
    and Equity in Earnings
    of 50% or Less Owned 
    Companies             34,742    26,706   25,972    3,595     (240)
   Income Tax Expense     12,448     9,740    8,395    1,511      169
                        --------- -------- -------- -------- ---------
   Income (Loss) Before 
    Minority Interest and 
    Equity in Earnings of 
    50% or Less Owned
    Companies             22,294    16,966   17,577    2,084     (409)
   Minority Interest in
    (Income) Loss of
    Subsidiaries            (154)       34     (289)    (108)     (91)
   Equity in Earnings of
    50% or Less Owned
    Companies              2,594     1,617    2,028    1,388      673
                        --------- -------- -------- -------- ---------
   Income from Continuing
    Operations            24,734    18,617   19,316    3,364      173
   Income (Loss) from
    Discontinued Operations, 
    net of tax               390       (26)       -        -        -
                        --------- -------- -------- -------- ---------
   Net Income           $ 25,124  $ 18,591 $ 19,316 $  3,364 $    173
                        ========= ======== ======== ======== =========
  Basic Earnings Per
   Common Share:
     Income from Continuing
      Operations        $   1.35  $   1.02 $   1.06 $   0.18 $   0.01
     Income (Loss) from
      Discontinued
      Operations            0.02         -        -        -        -
                        --------- -------- -------- -------- ---------
     Net Income         $   1.37  $   1.02 $   1.06 $   0.18 $   0.01
                        ========= ======== ======== ======== =========
  Diluted Earnings Per
   Common Share:
    Income from Continuing
      Operations        $   1.18  $   0.90 $   1.03 $   0.18 $   0.01
     Income (Loss) from
      Discontinued
      Operations            0.02         -        -        -        -
                        --------- -------- -------- -------- ---------
     Net Income         $   1.20  $   0.90 $   1.03 $   0.18 $   0.01
                        ========= ======== ======== ======== =========
 Weighted Average Common 
  Shares Outstanding:
   Basic                  18,349    18,249   18,203   18,211   18,347
   Diluted                21,924    21,908   18,973   18,357   18,476
 Common Shares Outstanding
  at Period End           18,466    18,442   18,307   18,292   18,313

                 SEACOR Holdings Inc. and Subsidiaries
                           Supplemental Data
                              (unaudited)

                                   Three Months Ended
                 -----------------------------------------------------
                 Jun. 30,   Mar. 31,   Dec. 31,   Sep. 30,   Jun. 30,
                   2005       2005       2004       2004       2004
                 --------- ---------- ---------- ---------- ----------


Balance Sheet Data,
 at period end (in
 thousands):
   Cash, Securities and
    Construction
    Reserve 
    Funds      $  533,417 $  615,153 $  495,387 $  440,091 $  441,805
   Total Assets 1,798,967  1,778,953  1,766,009  1,456,536  1,394,902
   Total Long-term
    Debt          597,467    582,416    582,367    382,319    342,271
   Stockholders'
    Equity        831,254    811,932    793,757    766,763    757,886

Operating Revenues by
 Segment (in thousands):
   Offshore Marine
    Services   $   84,043 $   80,350 $   80,841 $   72,825 $   67,039
   Environmental
    Services       35,635     35,893     62,824     21,144     14,654
   Inland River
    Services       27,333     25,530     31,878     16,076     10,038
   Helicopter
    Services       27,692     21,599      7,188      7,485      6,680
   Intersegment
    Eliminations
    and Other       3,128      1,813       (734)    (1,044)    (1,008)
                ---------- ---------- ---------- ---------- ----------
               $  177,831 $  165,185 $  181,997 $  116,486 $   97,403
                ========== ========== ========== ========== ==========

Operating Income
 (Loss) by Segment
 (in thousands):
   Offshore Marine
    Services   $   15,887 $   22,252 $    9,870 $    6,360 $    4,677
   Environmental
    Services        3,375      4,564      7,473      2,742        816
   Inland River
    Services        7,092      7,664     11,795      3,153        932
   Helicopter
    Services        1,738     (4,395)      (668)      (475)    (1,308)
   Corporate
    Expenses and
    Other          (3,449)    (3,762)    (5,072)    (3,799)    (3,369)
                ---------- ---------- ---------- ---------- ----------
               $   24,643 $   26,323 $   23,398 $    7,981 $    1,748
                ========== ========== ========== ========== ==========

Offshore Marine 
 Vessels - Available
 Days(1):
   Anchor Handling
    Towing Supply -
      Domestic        576        470        276        276        273
      Foreign         728        704        736        759        741
   Supply -
      Domestic        369        548        644        644        731
      Foreign         450        620        738        828        910
   Towing -
      Domestic        364        360        276        275        182
      Foreign         811        810        748        736        837
   Crew             6,697      6,783      6,446      6,024      5,921
   Mini-supply      2,427      2,464      2,576      2,619      2,708
   Other               91         90         92         50          -
   Standby Safety   1,911      1,890      1,932      1,932      1,911
                ---------- ---------- ---------- ---------- ----------
                   14,424     14,739     14,464     14,143     14,214
                ========== ========== ========== ========== ==========

    (1) 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.

                 SEACOR Holdings Inc. and Subsidiaries
                           Supplemental Data
                              (unaudited)

                                        Three Months Ended
                        ----------------------------------------------
                        Jun. 30,  Mar. 31,  Dec. 31, Sep. 30, Jun. 30,
                          2005     2005      2004      2004    2004
                        --------  -------- --------- -------- --------

Offshore Marine Vessels -
 Rates Per Day Worked(1) (2):
   Anchor Handling Towing
    Supply -
      Domestic           $23,850   $20,226   $18,815  $22,009 $19,115
      Foreign             10,228    10,848     9,964    9,534   9,539
   Supply -
      Domestic             7,255     7,924     7,769    6,720   5,994
      Foreign              9,350    13,789    16,124   10,095   9,729
   Towing -
      Domestic            10,083     9,061     8,209    6,118   6,040
      Foreign              7,581     6,959     7,096    6,769   6,775
   Crew                    4,171     3,996     3,745    3,458   3,314
   Mini-supply             3,352     3,111     3,051    2,937   2,932
   Other                       -    17,000    14,000   14,000       -
   Standby Safety          8,228     8,229     8,127    7,839   7,719

Offshore Marine Vessels -
 Utilization(2):
   Anchor Handling Towing
    Supply -
      Domestic              83.9%     91.3%     98.0%    85.2%   68.3%
      Foreign               75.3%     73.2%     82.3%    90.4%   63.9%
   Supply -
      Domestic              95.9%     74.5%     73.8%    68.9%   76.1%
      Foreign               78.5%     68.8%     75.2%    86.9%   72.8%
   Towing -
      Domestic              91.0%     83.9%     97.9%    64.3%   91.8%
      Foreign               96.0%     90.5%     78.8%    61.7%   61.8%
   Crew                     89.0%     86.1%     91.6%    93.5%   89.0%
   Mini-supply              89.9%     78.0%     88.7%    90.9%   86.7%
   Other                     0.0%     33.3%     64.9%    50.0%      -
   Standby Safety           88.8%     90.2%     91.9%    89.7%   85.9%

   Overall Utilization      87.9%     83.5%     88.4%    88.2%   83.2%
   Utilization Lost to
    Market Conditions        7.6%     12.4%      7.5%     7.9%   12.9%
   Utilization Lost to
    Operating Conditions     4.5%      4.1%      4.1%     3.9%    3.9%

Helicopter Flight Hours   14,188     9,448     6,453    7,431   6,714


    (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.

                 SEACOR Holdings Inc. and Subsidiaries
                          Supplementary Data
                              (unaudited)

                                         June 30, 2005
                            ------------------------------------------
                                               Joint    Pooled/
                            Owned  Leased-in  Ventured  Managed  Total
                            -----  ---------  --------  -------  -----
Offshore Marine Fleet Count:
   Domestic Operations -
       Anchor Handling Towing
        Supply                  6          1         1        -      8
      Crew                     37         19         1        -     57
      Mini-supply              21          4         -        -     25
      Supply                    2          2         -        1      5
      Towing                    2          2         -        -      4
                            -----    -------   -------  ------- ------
                               68         28         2        1     99
                            -----    -------   -------  ------- ------

   Foreign Operations -
      Anchor Handling Towing
       Supply                  11          -         2        -     13
      Crew                     19          -         5        -     24
      Mini-supply               2          -         2        -      4
      Other                     1          -         1        -      2
      Standby Safety           19          -         3        5     27
      Supply                    4          1         4        -      9
      Towing                    8          -        20        -     28
                            -----     ------   -------   ------ ------
                               64          1        37        5    107
                            -----     ------   -------  ------- ------

   Worldwide Operations -
      Anchor Handling Towing 
       Supply                  17          1         3        -     21
      Crew                     56         19         6        -     81
      Mini-supply              23          4         2        -     29
      Other                     1          -         1        -      2
      Standby Safety           19          -         3        5     27
      Supply                    6          3         4        1     14
      Towing                   10          2        20        -     32
                            -----     ------    ------   ------ ------
                              132         29        39        6    206
                            =====     ======    ======   ====== ======

Inland Barges
 Dry Cargo Hopper             719        182         6      207  1,114
 Chemical Tank                 36          -         -        -     36
                            -----     ------    ------    ----- ------
                              755        182         6      207  1,150
                            =====     ======    ======    ===== ======

Helicopters                    99         16         -        1    116
                            =====     ======    ======    ===== ======


                                Mar. 31,  Dec. 31,  Sep. 30,  Jun. 30,
                                  2005      2004      2004      2004
                                --------  --------  --------  --------
Offshore Marine Fleet Count:
   Domestic Operations -
       Anchor Handling Towing 
        Supply                         7         4         4         4
      Crew                            58        58        54        49
      Mini-supply                     25        26        26        26
      Supply                           6         8         8         8
      Towing                           4         4         3         2
                                  ------    ------    ------     -----
                                     100       100        95        89
                                  ------    ------    ------     -----

   Foreign Operations -
      Anchor Handling Towing Supply   14        14        13        14
      Crew                            23        24        23        26
      Mini-supply                      4         4         4         5
      Other                            2         2         2         1
      Standby Safety                  27        27        27        27
      Supply                           8        12        13        14
      Towing                          29        29        30        31
                                  ------    ------    ------     -----
                                     107       112       112       118
                                  ------    ------    ------     -----

   Worldwide Operations -
      Anchor Handling Towing Supply   21        18        17        18
      Crew                            81        82        77        75
      Mini-supply                     29        30        30        31
      Other                            2         2         2         1
      Standby Safety                  27        27        27        27
      Supply                          14        20        21        22
      Towing                          33        33        33        33
                                  ------    ------    ------     -----
                                     207       212       207       207
                                  ======    ======    ======     =====

  Inland Barges
   Dry Cargo Hopper                1,097     1,072     1,029       911
   Chemical Tank                      27        20        14         1
                                  ------    ------    ------     -----
                                   1,124     1,092     1,043       912
                                  ======    ======    ======     =====
  Helicopters                        120       127        44        43
                                  ======    ======    ======     =====

 

Contacts

SEACOR
Timothy McKeand, 954-524-4200 ext. 820
www.seacorholdings.com.