SEACOR Holdings Announces Fourth Quarter Results

HOUSTON--(BUSINESS WIRE)--March 1, 2005--SEACOR Holdings Inc. (NYSE:CKH) announced net earnings for the fourth quarter ended December 31, 2004 of $19.3 million, or $1.06 per diluted share, on operating revenues of $182.0 million. For the twelve months ended December 31, 2004, net earnings were $19.9 million, or $1.09 per diluted share, on operating revenues of $491.9 million.

For the fourth quarter ended December 31, 2003, net losses were $1.7 million, or $0.09 per diluted share, on operating revenues of $101.0 million. For the twelve months ended December 31, 2003, net earnings were $12.0 million, or $0.63 per diluted share, on operating revenues of $406.2 million.

For the immediately preceding quarter ended September 30, 2004, the Company reported net earnings of $3.4 million, or $0.18 per diluted share, on operating revenues of $116.5 million.

Financial results for the fourth quarter ended December 31, 2004 as compared to the immediately preceding quarter ended September 30, 2004 were impacted by the factors highlighted below.

-- Increased operating revenues. Operating revenues for the quarter were $182.0 million, an increase of $65.5 million from the previous quarter. Environmental Services responded to a major U. S. oil spill. Inland River Services' freight rates improved; hauled tonnage increased during the U.S. grain harvest; and new barges entered service. Offshore Marine Services' rates per day worked and utilization increased in its key markets, particularly the U.S. Gulf of Mexico.

-- Increased operating income. Operating income for the quarter was $23.4 million, an increase of $15.4 million from the previous quarter. Higher operating revenues and increased gains from asset sales improved results between comparable periods. Income improvements were partly offset by higher vessel operating expenses and administrative and general costs.

-- Increased interest income. Interest income for the quarter was $3.2 million, an increase of $1.0 million from the previous quarter. Invested cash balances and interest rates increased between quarters.

-- Increased interest expense. Interest expense for the quarter was $6.2 million, an increase of $0.6 million from the previous quarter.

-- Increased derivative income, net. Derivative transactions, primarily consisting of foreign currency contracts, resulted in income of $1.8 million for the quarter, an improvement of $1.9 million over the previous quarter.

-- Increased foreign currency transaction gains, net. Foreign currency transaction gains for the quarter were $1.9 million, an increase of $2.1 million from the previous quarter. Gains 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 $1.7 million, an increase of $2.4 million from the previous quarter.

On December 31, 2004, the Company completed its acquisition of Era Aviation, Inc. for $118.1 million in cash, subject to working capital adjustments. As a result of this transaction, it acquired 81 helicopters and 16 fixed wing aircraft. The Company now has begun a process to sell the fixed wing business.

One new and 6 used offshore marine vessels, 43 new dry cargo hopper barges, 10 new chemical tank barges and 3 new and 1 used helicopter were acquired by the Company in the fourth quarter for aggregate consideration of $63.9 million. Remaining obligations for capital commitments at December 31, 2004 for 3 new offshore marine vessels, 25 new dry cargo covered hopper barges, 16 new chemical tank barges, 32 new helicopters and other equipment aggregated $270.6 million. The Company has the right to terminate its commitments at any time with regard to undelivered helicopters without liability to seller other than payment of liquidated damages.

At December 31, 2004, the Company's cash, marketable securities and construction reserve funds totaled $495.4 million, an increase of $55.3 million from the prior quarter. At December 31, 2004, the Company's long-term debt totaled $582.4 million, an increase of $200.1 million from the prior quarter. During the quarter, the Company sold $250.0 million of its 2-7/8% Convertible Notes and repaid $50.0 million of indebtedness borrowed under its bank revolving credit facility.

SEACOR and its subsidiaries are engaged in the operation of a diversified fleet of offshore support vessels that service oil and gas exploration and development activities in the U.S. Gulf of Mexico, the North Sea, West Africa, Asia, Latin America and other international regions. Other business activities primarily include Environmental Services, Inland River Services, and Aviation Services.

This release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements concerning management's expectations, strategic objectives, business prospects, anticipated economic performance and financial condition and other similar matters involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of results to differ materially from any future results, performance or achievements discussed or implied by such forward-looking statements. Such risks, uncertainties and other important factors include, among others: the cyclical nature of the oil and gas industry, adequacy of insurance coverage, currency exchange fluctuations, changes in foreign political, military and economic conditions, the ongoing need to replace aging vessels, dependence of offshore marine operations on several customers, dependence of spill response revenue on the number and size of spills and upon continuing government regulation in this area and our ability to comply with such regulation and other governmental regulation, industry fleet capacity, changes in foreign and domestic oil and gas exploration and production activity, competition, vessel-related risks, effects of adverse weather conditions and seasonality on aviation services, helicopter related risks, effects of adverse weather and river conditions and seasonality on inland river operations, the level of grain export volume, the effect of fuel prices on barge towing costs, variability in freight rates for inland river barges, changes in the Company's environmental services segment OSRO classification, liability in connection with providing spill response services, restrictions imposed by the Shipping Act of 1916 and the Merchant Marine Act of 1920 on the amount of foreign ownership of the Company's common stock, the effect of international economic and political factors in inland river operations and various other matters, many of which are beyond the Company's control and other factors. The words "estimate," "project," "intend," "believe," "plan" and similar expressions are intended to identify forward-looking statements. Forward-looking statements speak only as of the date of the document in which they are made. We disclaim any obligation or undertaking to provide any updates or revisions to any forward-looking statement to reflect any change in our expectations or any change in events, conditions or circumstances on which the forward-looking statement is based. The forward-looking statements in this release should be evaluated together with the many uncertainties that affect our businesses, particularly those mentioned under "Forward-Looking Statements" in Item 7 of our Form 10-K and SEACOR's periodic reporting on Form 10-Q and Form 8-K (if any), which we incorporate by reference.

For additional information, contact Randall Blank, Executive Vice President and Chief Financial Officer, at (281) 899-4800 or (212) 307-6633 or visit SEACOR's website at www.seacorholdings.com.

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




                        Three Months Ended       Twelve Months Ended
                           December 31,             December 31,
                      -----------------------  -----------------------
                            2004        2003         2004        2003
                      ----------- -----------  ----------- -----------

Operating Revenues   $   181,997 $   100,956  $   491,860 $   406,209
                      ----------- -----------  ----------- -----------

Costs and Expenses:
   Operating expenses    126,240      78,504      354,163     287,290
   Administrative and
    general               17,592      16,538       61,425      57,684
   Depreciation and
    amortization          15,365      13,751       57,834      55,506
                      ----------- -----------  ----------- -----------
                         159,197     108,793      473,422     400,480
                      ----------- -----------  ----------- -----------
Gains on Asset
 Sales(1)                    598       9,612       10,234      17,522
                      ----------- -----------  ----------- -----------
Operating Income          23,398       1,775       28,672      23,251
                      ----------- -----------  ----------- -----------

Other Income
 (Expense):
   Interest income         3,200       1,565        8,422       7,531
   Interest expense       (6,154)     (4,785)     (22,485)    (19,313)
   Debt 
    extinguishment             -           -            -      (2,091)
   Derivative income
    (loss), net            1,787      (1,541)       1,166       2,389
   Foreign currency
    transaction
    gains, net             1,944       3,625        1,537       3,739
   Marketable
    securities sale
    gains, net             1,689         743        6,435       6,595
   Other, net                108         106          539        (652)
                      ----------- -----------  ----------- -----------
                           2,574        (287)      (4,386)     (1,802)
                      ----------- -----------  ----------- -----------
Income Before Income 
 Tax Expense,
 Minority Interest 
 and Equity in 
 Earnings of 50% or 
 Less Owned Companies     25,972       1,488       24,286      21,449
Income Tax Expense         8,395       3,067        8,573      10,396
                      ----------- -----------  ----------- -----------
Income (Loss) Before 
 Minority Interest 
 and Equity in
 Earnings of 50% or
 Less Owned
 Companies                17,577      (1,579)      15,713      11,053
Minority Interest in
 Net Income of
 Subsidiaries               (289)        (66)        (483)       (517)
Equity in Earnings of
 50% or Less Owned
 Companies                 2,028         (85)       4,659       1,418
                      ----------- -----------  ----------- -----------
Net Income (Loss)    $    19,316 $    (1,730) $    19,889 $    11,954
                      =========== ===========  =========== ===========

Earnings (Loss) Per
 Common Share:
   Basic             $      1.06 $     (0.09) $      1.09 $      0.63
   Diluted(2)               1.03       (0.09)        1.08        0.63

Weighted Average
 Common Shares
 Outstanding:
   Basic              18,202,983  18,509,438   18,305,937  19,012,899
   Diluted(2)         18,973,106  18,509,438   18,609,373  19,279,568

(1)Previously reported gains on asset sales have been reclassified
from "Other Income (Expense)" to conform to the three and twelve
months ended December 31, 2004 financial statement presentation.

(2)Outstanding stock options and restricted stock have been
excluded from the computation of diluted loss per common share and
diluted weighted average common shares for the three month period
ended December 31, 2003 as the effect was anti-dilutive.

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



                                        Three Months Ended
                          --------------------------------------------
                          Dec. 31, Sep. 30, Jun. 30, Mar. 31, Dec. 31,
                            2004     2004     2004     2004     2003
                          -------- -------- -------- -------- --------
Statements of Operations:

 Operating Revenues      $181,997 $116,486 $ 97,403 $ 95,974 $100,956
                          -------- -------- -------- -------- --------

 Cost and Expenses:
  Operating expenses      126,240   79,134   73,759   75,030   78,504
  Administrative and 
   general                 17,592   14,900   13,857   15,076   16,538
  Depreciation and
   amortization            15,365   14,352   14,156   13,961   13,751
                          -------- -------- -------- -------- --------
                          159,197  108,386  101,772  104,067  108,793
                          -------- -------- -------- -------- --------
 Gains (Losses) on Asset 
  Sales(1)                    598     (119)   6,117    3,638    9,612
                          -------- -------- -------- -------- --------
 Operating Income (Loss)   23,398    7,981    1,748   (4,455)   1,775
                          -------- -------- -------- -------- --------

 Other Income (Expense):
  Interest income           3,200    2,180    1,663    1,379    1,565
  Interest expense         (6,154)  (5,565)  (5,388)  (5,378)  (4,785)
  Derivative income 
   (loss), net              1,787     (140)    (560)      79   (1,541)
  Foreign currency
   transaction gains 
   (losses), net            1,944     (184)    (689)     466    3,625
  Marketable securities 
   sale gains (losses),
   net                      1,689     (756)   2,753    2,749      743
  Other, net                  108       79      233      119      106
                          -------- -------- -------- -------- --------
                            2,574   (4,386)  (1,988)    (586)    (287)
                          -------- -------- -------- -------- --------
 Income (Loss) Before 
  Taxes, Minority 
  Interest and Equity in
  Earnings of 50% or Less 
  Owned Companies          25,972    3,595     (240)  (5,041)   1,488
 Income Tax Expense
  (Benefit)                 8,395    1,511      169   (1,502)   3,067
                          -------- -------- -------- -------- --------
 Income (Loss) Before 
  Minority Interest and
  Equity in Earnings of
  50% or Less Owned 
  Companies                17,577    2,084     (409)  (3,539)  (1,579)
 Minority Interest in Net 
  (Income) Loss of 
  Subsidiaries               (289)    (108)     (91)       5      (66)
 Equity in Earnings of 
  50% or Less Owned 
  Companies                 2,028    1,388      673      570      (85)
                          -------- -------- -------- -------- --------
 Net Income (Loss)       $ 19,316 $  3,364 $    173 $ (2,964)$ (1,730)
                          ======== ======== ======== ======== ========

Earnings (Loss) Per
 Common Share:
 Basic                   $   1.06 $   0.18 $   0.01 $  (0.16)$  (0.09)
 Diluted(2)                  1.03     0.18     0.01    (0.16)   (0.09)

Weighted Average Common 
 Shares Outstanding:
 Basic                     18,203   18,211   18,347   18,468   18,509
 Diluted(2)                18,973   18,357   18,476   18,468   18,509

Common Shares Outstanding
 at Period End             18,307   18,292   18,313   18,533   18,581

(1)During the second quarter of 2004, the Company reclassified
its reporting of "Gains on Asset Sales" to Operating Income (Loss)
from "Other Income and Expense." This reclassification has been
reflected in all periods presented above.

(2)Outstanding stock options and restricted stock have been
excluded from the computation of diluted loss per common share and
diluted weighted average common shares for each of the three month
periods ended March 31, 2004 and December 31, 2003 as the effect was
anti-dilutive.

                 SEACOR Holdings Inc. and Subsidiaries
                           Supplemental Data
                              (unaudited)


                                   Three Months Ended
                 -----------------------------------------------------
                  Dec. 31,   Sep. 30,   Jun. 30,   Mar. 31,   Dec. 31,
                    2004       2004       2004       2004       2003
                 ---------- ---------- ---------- ---------- ---------


Balance Sheet Data, at period end (in thousands):
 Cash, 
  Securities
  and
  Construction
  Reserve 
  Funds        $  495,387 $  440,091 $  441,805 $  441,502 $  438,131
 Total Assets   1,766,009  1,456,536  1,394,902  1,401,426  1,402,611
 Total Long-
  term Debt       582,367    382,319    342,271    332,225    332,179
 Stockholders'
  Equity          793,757    766,763    757,886    766,529    770,446

Operating Revenues by Segment (in thousands):
 Offshore
  Marine
  Services     $   80,841 $   72,825 $   67,039 $   66,016 $   74,262
 Environmental
  Services         62,824     21,144     14,654     16,392     11,732
 Inland River
  Services         31,878     16,076     10,038      8,576     10,728
 Aviation
  Services          7,188      7,485      6,680      5,827      5,249
 Intersegment
  Eliminations
  and Other          (734)    (1,044)    (1,008)      (837)    (1,015)
                ---------- ---------- ---------- ---------- ----------
               $  181,997 $  116,486 $   97,403 $   95,974 $  100,956
                ========== ========== ========== ========== ==========

Operating Income (Loss) by Segment (in thousands):
 Offshore
  Marine  
  Services     $    9,870 $    6,360 $    4,677 $   (1,525)$    3,976
 Environmental
  Services          7,473      2,742        816        954        894
 Inland River
  Services         11,795      3,153        932      1,016      2,523
 Aviation
  Services           (668)      (475)    (1,308)    (1,893)    (1,731)
 Corporate
  Expenses and
  Other            (5,072)    (3,799)    (3,369)    (3,007)    (3,887)
                ---------- ---------- ---------- ---------- ----------
               $   23,398 $    7,981 $    1,748 $   (4,455)$    1,775
               ========== ========== ========== ========== ==========

Offshore Marine Vessels - Available Days(1):
 Anchor
  Handling
  Towing
  Supply -
  Domestic            276        276        273        304        460
  Foreign             736        759        741        724        890
 Supply -
  Domestic            644        644        731        790        831
  Foreign             738        828        910        910      1,061
 Towing -
  Domestic            276        275        182        273        184
  Foreign             748        736        837      1,026      1,095
 Crew               6,446      6,024      5,921      6,188      6,321
 Geophysical,
  Freight and
  Other                92         50          -         91         92
 Mini-supply        2,576      2,619      2,708      2,730      2,760
 Standby Safety     1,932      1,932      1,911      1,911      1,871
 Utility                -          -          -          -      2,581
                ---------- ---------- ---------- ---------- ----------
                   14,464     14,143     14,214     14,947     18,146
                ========== ========== ========== ========== ==========

(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
                               ---------------------------------------
                                Dec.    Sep.    Jun.    Mar.    Dec.
                                 30,     30,     30,     31,     31,
                                2004    2004    2004    2004    2003
                               ------- ------- ------- ------- -------

Offshore Marine Vessels - Rates Per Day Worked(1) (2):
 Anchor Handling Towing
  Supply -
  Domestic                    $18,815 $22,009 $19,115 $15,888 $22,111
  Foreign                       9,964   9,534   9,539   8,524   9,212
 Supply -
  Domestic                      7,769   6,720   5,994   6,300   6,079
  Foreign                      16,124  10,095   9,729   9,067   8,860
 Towing -
  Domestic                      8,209   6,118   6,040   6,055   6,091
  Foreign                       7,096   6,769   6,775   6,586   6,577
 Crew                           3,745   3,458   3,314   3,297   3,323
 Geophysical, Freight and
  Other                        14,000  14,000       -       -       -
 Mini-supply                    3,051   2,937   2,932   2,976   2,992
 Standby Safety                 8,127   7,839   7,719   7,694   6,933
 Utility                            -       -       -       -   1,752

Offshore Marine Vessels - Utilization(2):
 Anchor Handling Towing
  Supply -
  Domestic                      98.0%   85.2%   68.3%   68.2%   56.2%
  Foreign                       82.3%   90.4%   63.9%   61.5%   72.8%
 Supply -
  Domestic                      73.8%   68.9%   76.1%   71.7%   50.5%
  Foreign                       75.2%   86.9%   72.8%   73.4%   86.1%
 Towing -
  Domestic                      97.9%   64.3%   91.8%   56.7%  100.0%
  Foreign                       78.8%   61.7%   61.8%   67.4%   75.0%
   Crew                         91.6%   93.5%   89.0%   82.8%   78.5%
 Geophysical, Freight and
  Other                         64.9%   50.0%      -       -       -
 Mini-supply                    88.7%   90.9%   86.7%   81.7%   86.3%
 Standby Safety                 91.9%   89.7%   85.9%   87.0%   90.3%
 Utility                           -       -       -       -    52.4%

 Overall Utilization            88.4%   88.2%   83.2%   78.6%   75.1%
 Utilization Lost to Market
  Conditions                     7.5%    7.9%   12.9%   17.1%   21.4%
 Utilization Lost to
  Operating Conditions           4.1%    3.9%    3.9%    4.3%    3.5%

Helicopter Flight Hours         6,453   7,431   6,714   5,750   5,422

(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)

                                     December 31, 2004
                          --------------------------------------------
                                             Joint   Pooled/
                          Owned  Leased-in  Ventured  Managed   Total
                          ------ ---------- -------- -------- --------
Offshore Marine Fleet
 Count:
   Operated Domestic -
       Anchor Handling
        Towing Supply         2          1        1        -      4
      Crew                   38         19        1        -     58
      Geophysical, Freight
       and Other              -          -        -        -      -
      Mini-supply            22          4        -        -     26
      Supply                  3          2        2        1      8
      Towing                  2          2        -        -      4
                          ------ ---------- -------- -------- --------
                             67         28        4        1    100
                          ------ ---------- -------- -------- --------

   Operated Foreign -
      Anchor Handling
       Towing Supply         12          -        2        -     14
      Crew                   20          -        4        -     24
      Geophysical, Freight
       and Other              1          -        1        -      2
      Mini-supply             3          -        1        -      4
      Standby Safety         19          -        3        5     27
      Supply                  7          1        4        -     12
      Towing                  9          -       20        -     29
                          ------ ---------- -------- -------- --------
                             71          1       35        5    112
                          ------ ---------- -------- -------- --------

   Worldwide
    Operations -
      Anchor Handling
       Towing Supply         14          1        3        -     18
      Crew                   58         19        5        -     82
      Geophysical, Freight
       and Other              1          -        1        -      2
      Mini-supply            25          4        1        -     30
      Standby Safety         19          -        3        5     27
      Supply                 10          3        6        1     20
      Towing                 11          2       20        -     33
                          ------ ---------- -------- -------- --------
                            138         29       39        6    212
                          ====== ========== ======== ======== ========

Inland Barges,
 domestic
   Dry Cargo Hopper         674        182        6      210  1,072
   Chemical Tank             20          -        -        -     20
                          ------ ---------- -------- -------- --------
                            694        182        6      210  1,092
                          ====== ========== ======== ======== ========

Helicopters,
 domestic(1)                 28         19        -        1     48
                          ====== ========== ======== ======== ========

(1)Excludes 81 Era Aviation, Inc. helicopters acquired on December
31, 2004, of which two were leased to the Company and are included
above.



                 SEACOR Holdings Inc. and Subsidiaries
                          Supplementary Data
                              (unaudited)





                                              Sep.   Jun.  Mar.  Dec.
                                               30,    30,   31,   31,
                                              2004   2004  2004  2003
                                             ------  ----- ----- -----
Offshore Marine Fleet Count:
   Operated
    Domestic -
       Anchor Handling Towing Supply             4      4     4     6
      Crew                                      54     49    53    53
      Geophysical, Freight and Other             -      -     -     1
      Mini-supply                               26     26    27    27
      Supply                                     8      8    10     9
      Towing                                     3      2     2     2
                                             ------  ----- ----- -----
                                                95     89    96    98
                                             ------  ----- ----- -----

   Operated
    Foreign -
      Anchor Handling Towing Supply             13     14    15    20
      Crew                                      23     26    33    34
      Geophysical, Freight and Other             2      1     2     3
      Mini-supply                                4      5     5     5
      Standby Safety                            27     27    27    27
      Supply                                    13     14    15    17
      Towing                                    30     31    35    31
                                             ------  ----- ----- -----
                                               112    118   132   137
                                             ------  ----- ----- -----

   Worldwide
    Operations
    -
      Anchor Handling Towing Supply             17     18    19    26
      Crew                                      77     75    86    87
      Geophysical, Freight and Other             2      1     2     4
      Mini-
       supply                                   30     31    32    32
      Standby
       Safety                                   27     27    27    27
      Supply                                    21     22    25    26
      Towing                                    33     33    37    33
                                             ------  ----- ----- -----
                                               207    207   228   235
                                             ======  ===== ===== =====

Inland Barges, domestic
   Dry Cargo Hopper                          1,029    911   792   784
   Chemical Tank                                14      1     -     -
                                             ------  ----- ----- -----
                                             1,043    912   792   784
                                             ======  ===== ===== =====

Helicopters,
 domestic(1)                                    44     43    43    41
                                             ======  ===== ===== =====

(1)Excludes 81 Era Aviation, Inc. helicopters acquired on December
31, 2004, of which two were leased to the Company and are included
above.

 

Contacts

SEACOR Holdings Inc.
Randall Blank, 281-899-4800
or
212-307-6633
www.seacorholdings.com.