SEACOR Holdings Announces Third Quarter Results

HOUSTON--(BUSINESS WIRE)--Oct. 25, 2004--SEACOR Holdings Inc. (NYSE:CKH) announced net earnings for the third quarter ended September 30, 2004 of $3.4 million, or $0.18 per diluted share, on operating revenues of $116.5 million. For the nine months ended September 30, 2004, net earnings were $0.6 million, or $0.03 per diluted share, on operating revenues of $309.9 million.

For the third quarter ended September 30, 2003, net earnings were $2.9 million, or $0.15 per diluted share, on operating revenues of $103.2 million. For the nine months ended September 30, 2003, net earnings were $13.7 million, or $0.71 per diluted share, on operating revenues of $305.3 million.

For the immediately proceeding quarter ended June 30, 2004, the Company reported net earnings of $0.2 million, or $0.01 per diluted share, on operating revenues of $97.4 million.

Financial results for the third quarter ended September 30, 2004 as compared to the immediately preceding quarter ended June 30, 2004 were impacted by a variety of factors highlighted below.

-- Increased operating revenues. Operating revenues for the quarter were $116.5 million, an increase of $19.1 million from the previous quarter. Environmental Services' emergency response and remediation activities increased in the U.S. and this segments' business expanded internationally. Inland River Services' activity increased; rates for transportation improved, and the Company took delivery of additional barges during the quarter. In Offshore Marine Services, rates per day worked and utilization improved in the U.S. Gulf of Mexico, North Sea and Asian markets. Helicopter flight hours increased in Aviation Services, which is included in the Company's "Other" business segment.

-- Increased operating income. Operating income for the quarter was $8.0 million, an increase of $6.2 million from the previous quarter. Offsetting the increase in operating revenues described above were increases in operating expenses primarily associated with adding equipment to the Inland River fleet and Environmental Services' international expansion. Operating expenses declined in Offshore Marine Services due to fewer drydockings and the success of cost reduction programs. Administration and general expense increased due to business development activities.

Gains on asset sales declined $6.2 million between quarters due to fewer vessel dispositions.

-- Increased interest income. Interest income for the quarter was $2.2 million, an increase of $0.5 million from the previous quarter. Interest rates increased between quarters.

-- Decreased foreign currency transaction losses. Foreign currency transaction losses for the quarter were $0.2 million, a decline of $0.5 million from the previous quarter. Losses resulted from the effect of currency exchange rate changes with respect to loans between SEACOR and certain of its foreign subsidiaries and other transactions denominated in currencies other than the functional currency of various subsidiaries.

-- Marketable securities sale loss. Marketable securities sale transactions resulted in net losses of $0.8 million for the quarter as compared to net gains of $2.8 million in the previous quarter.

-- Increased equity earnings. Equity earnings for the quarter were $1.4 million, an increase of $0.7 million from the previous quarter. Results of the previous quarter included a $0.5 million loss from the sale of an interest in an Asian joint venture.

Drydock expense in Offshore Marine Services aggregated $1.6 million in the third quarter with 9 vessels completing repairs. One vessel was also sold in the quarter with a carrying value of $1.9 million.

Two new and 1 used offshore marine vessel, 115 new dry cargo hopper barges, 13 new chemical tank barges and 3 used inland river towboats were acquired by the Company in the third quarter for aggregate consideration of $59.9 million.

Remaining capital commitments at September 30, 2004 for 4 new offshore marine vessels, 68 new dry cargo hopper barges, 22 new chemical tank barges, 7 new helicopters and other equipment aggregated $76.0 million. Deliveries are expected through the remainder of the year and into 2005. An option to acquire 150 newly constructed dry cargo hopper barges expired shortly after the end of the third quarter.

In the quarter, SEACOR acquired 51,033 shares of its common stock for treasury at an aggregate cost of $2.1 million pursuant to a stock and debt repurchase plan. At September 30, 2004, $43.3 million of authority remains available for future purchases of the Company's stock and 5-7/8% and 7.2% notes.

At September 30, 2004, the Company's cash, marketable securities, and construction reserve funds totaled $440.1 million, a decrease of $1.7 million from the prior quarter. At September 30, 2004, the Company's long-term debt totaled $384.5 million, an increase of $40.0 million from the previous quarter.

The Company is exploring the impact of tax legislation recently passed by Congress and signed into law by the President. As a result of this legislation, the Company believes it would be in the position to repatriate accumulated foreign earnings at an effective federal tax rate of 5.25% which, in most cases, is significantly less than the Company's provision for deferred tax liabilities.

Subsequent to the end of the quarter, SEACOR entered into a Stock Purchase Agreement with Rowan Companies, Inc. and ERA Aviation, Inc. pursuant to which the Company agreed to purchase all outstanding shares of capital stock of ERA for a cash purchase price of $118.2 million subject to final working capital adjustments. The purchase is also subject to the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act and the satisfaction of customary closing conditions.

SEACOR intends to combine Tex-Air Helicopters, Inc. (a wholly-owned subsidiary of SEACOR) with ERA and to continue the combined operation under the name of "ERA Aviation." The combined fleet would consist of 128 helicopters, 16 fixed wing aircraft and 14 operating bases.

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

This release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements concerning management's expectations, strategic objectives, business prospects, anticipated economic performance and financial condition and other similar matters involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of results to differ materially from any future results, performance or achievements discussed or implied by such forward-looking statements. Such risks, uncertainties and other important factors include, among others: the cyclical nature of the oil and gas industry, adequacy of insurance coverage, currency exchange fluctuations, changes in foreign political, military and economic conditions, the ongoing need to replace aging vessels, dependence of offshore marine operations on several customers, dependence of spill response revenue on the number and size of spills and upon continuing government regulation in this area and our ability to comply with such regulation and other governmental regulation, industry fleet capacity, changes in foreign and domestic oil and gas exploration and production activity, competition, vessel-related risks, effects of adverse weather conditions and seasonality on aviation services, helicopter related risks, effects of adverse weather and river conditions and seasonality on inland river operations, the level of grain export volume, the effect of fuel prices on barge towing costs, variability in freight rates for inland river barges, changes in the Company's environmental services segment OSRO classification, liability in connection with providing spill response services, restrictions imposed by the Shipping Act of 1916 and the Merchant Marine Act of 1920 on the amount of foreign ownership of the Company's common stock, the effect of international economic and political factors in inland river operations and various other matters, many of which are beyond the Company's control and other factors. The words "estimate," "project," "intend," "believe," "plan" and similar expressions are intended to identify forward-looking statements. Forward-looking statements speak only as of the date of the document in which they are 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        Nine Months Ended
                           September 30,            September 30,
                      -----------------------  -----------------------
                          2004        2003         2004        2003
                      ----------- -----------  ----------- -----------

Operating Revenues    $  116,486  $  103,234   $  309,863  $  305,253
                      ----------- -----------  ----------- -----------

Costs and Expenses:
   Operating
    expenses              79,134      72,264      227,923     208,786
   Administrative
    and general           14,900      13,676       43,833      41,146
   Depreciation and
    amortization          14,352      13,411       42,469      41,755
                      ----------- -----------  ----------- -----------
                         108,386      99,351      314,225     291,687
                      ----------- -----------  ----------- -----------
Gains (Losses) on
 Asset Sales(1)             (119)      2,349        9,636       7,910
                      ----------- -----------  ----------- -----------
Operating Income
 (Loss)                    7,981       6,232        5,274      21,476
                      ----------- -----------  ----------- -----------

Other Income
 (Expense):
   Interest income         2,180       1,540        5,222       5,966
   Interest expense       (5,565)     (4,603)     (16,331)    (14,528)
   Debt
    extinguishment
    expense                    -           -            -      (2,091)
   Derivative income
    (loss), net             (140)       (443)        (621)      3,930
   Foreign currency
    transaction
    gains (losses),
    net                     (184)     (1,714)        (407)        115
   Marketable
    securities sale
    gains (losses),
    net                     (756)      2,411        4,746       5,852
   Other, net                 79         (15)         431        (759)
                      ----------- -----------  ----------- -----------
                          (4,386)     (2,824)      (6,960)     (1,515)
                      ----------- -----------  ----------- -----------
Income Before Taxes,
 Minority Interest
 and Equity
   in Earnings of
    50% or Less
    Owned Companies        3,595       3,408       (1,686)     19,961
Income Taxes               1,511       1,334          178       7,329
                      ----------- -----------  ----------- -----------
Income Before
 Minority Interest
 and Equity in
   Earnings of 50%
    or Less Owned
    Companies              2,084       2,074       (1,864)     12,632
Minority Interest in
 Net Income of
 Subsidiaries               (108)       (112)        (194)       (451)
Equity in Earnings
 of 50% or Less
 Owned Companies           1,388         935        2,631       1,503
                      ----------- -----------  ----------- -----------
Net Income            $     3,364 $    2,897   $      573  $   13,684
                      =========== ===========  =========== ===========

Earnings Per Common
 Share:
   Basic              $     0.18  $     0.16   $     0.03  $     0.71
   Diluted                  0.18        0.15         0.03        0.71

Weighted Average
 Common Shares
 Outstanding:
   Basic              18,210,882  18,629,664   18,341,248  19,182,564
   Diluted            18,357,438  18,785,256   18,495,594  19,479,462

(1) Previously reported gains on asset sales have been reclassified
    from "Other Income (Expense)" to conform to the three and nine
    months ended September 30, 2004 financial statement presentation.


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

                                     Three Months Ended
                      ------------------------------------------------
                      Sep. 30,  Jun. 30,  Mar. 31,  Dec. 31,  Sep. 30,
                        2004      2004      2004      2003      2003
                      --------  --------  --------  --------  --------
Statements of
 Operations:
  Operating Revenues $116,486  $ 97,403  $ 95,974  $100,956  $103,234
                      --------  --------  --------  --------  --------

  Cost and Expenses:
   Operating
    expenses           79,134    73,759    75,030    78,504    72,264
   Administrative
    and general        14,900    13,857    15,076    16,538    13,676
   Depreciation and
    amortization       14,352    14,156    13,961    13,751    13,411
                      --------  --------  --------  --------  --------
                      108,386   101,772   104,067   108,793    99,351
                      --------  --------  --------  --------  --------
  Gains (Losses) on
   Asset Sales(1)        (119)    6,117     3,638     9,612     2,349
                      --------  --------  --------  --------  --------
  Operating Income
   (Loss)               7,981     1,748    (4,455)    1,775     6,232
                      --------  --------  --------  --------  --------

  Other Income
   (Expense):
   Interest income      2,180     1,663     1,379     1,565     1,540
   Interest expense    (5,565)   (5,388)   (5,378)   (4,785)   (4,603)
   Derivative income
    (loss), net          (140)     (560)       79    (1,541)     (443)
   Foreign currency
    transaction
    gains (losses),
    net                  (184)     (689)      466     3,625    (1,714)
   Marketable
    securities sale
    gains (losses),
    net                  (756)    2,753     2,749       743     2,411
   Other, net              79       233       119       106       (15)
                      --------  --------  --------  --------  --------
                       (4,386)   (1,988)     (586)     (287)   (2,824)
                      --------  --------  --------  --------  --------
  Income (Loss)
   Before Taxes,
   Minority
   Interest and
   Equity in
   Earnings of 50%
   or Less Owned
   Companies            3,595      (240)   (5,041)    1,488     3,408
  Income Taxes          1,511       169    (1,502)    3,067     1,334
                      --------  --------  --------  --------  --------
  Income (Loss) Before Minority
   Interest and Equity
   in Earnings of
   50% or Less
   Owned Companies      2,084      (409)   (3,539)   (1,579)    2,074
  Minority Interest
   in Net (Income)
   Loss of
   Subsidiaries         (108)      (91)        5       (66)     (112)
  Equity in Earnings
   of 50% or Less
   Owned Companies      1,388       673       570       (85)      935
                      --------  --------  --------  --------  --------
  Net Income (Loss)  $  3,364  $    173  $ (2,964) $ (1,730) $  2,897
                      ========  ========  ========  ========  ========

Earnings (Loss) Per
 Common Share:
   Basic             $   0.18  $   0.01  $  (0.16) $  (0.09) $   0.16
   Diluted(2)            0.18      0.01     (0.16)    (0.09)     0.15

Weighted Average Common Shares
 Outstanding:
   Basic               18,211    18,347    18,468    18,509    18,630
   Diluted(2)          18,357    18,476    18,468    18,509    18,785

Common Shares
 Outstanding at Period
 End                   18,292    18,313    18,533    18,581    18,729

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

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


                 SEACOR Holdings Inc. and Subsidiaries
                           Supplemental Data
                              (unaudited)

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

Balance Sheet Data, 
 at period end
 (in thousands):
 Cash, Securities,
  Construction
  Reserve Funds$  440,091 $  441,805 $  441,502 $  438,131 $  428,372
 Total Assets   1,456,536  1,394,902  1,401,426  1,402,611  1,370,630
 Total Long-
  term Debt       382,319    342,271    332,225    332,179    332,213
 Stockholders'
  Equity          766,763    757,886    766,529    770,446    768,530

Operating Revenues by
 Segment (in thousands):
 Offshore Marine
  Services     $   72,825 $   67,039 $   66,016 $   74,262 $   81,194
 Environmental
  Services         21,144     14,654     16,392     11,732     10,625
 Inland River
  Services         16,076     10,038      8,576     10,728      7,247
 Other(1)           7,485      6,680      5,827      5,328      4,803
 Intersegment
  Eliminations     (1,044)    (1,008)      (837)    (1,094)      (635)
                ---------- ---------- ---------- ---------- ----------
               $  116,486 $   97,403 $   95,974 $  100,956 $  103,234
                ========== ========== ========== ========== ==========

Operating Income (Loss)
 by Segment 
 (in thousands):
 Offshore
  Marine
  Services     $    6,359 $    4,677 $   (1,525)$    3,976 $    5,779
 Environmental
  Services          2,741        816        954        894      3,421
 Inland River
  Services          3,153        932      1,016      2,523        970
 Other(1)            (393)    (1,308)    (1,895)    (1,893)    (1,122)
 Corporate
  Expenses         (3,879)    (3,369)    (3,005)    (3,725)    (2,816)
                ---------- ---------- ---------- ---------- ----------
               $    7,981 $    1,748 $   (4,455)$    1,775 $    6,232
                ========== ========== ========== ========== ==========

Offshore Marine Vessels -
 Available Days(2):
 Anchor Handling
  Towing Supply-
  Domestic            276        273        304        460        460
  Foreign             759        741        724        890      1,012
 Supply -
  Domestic            644        731        790        831        920
  Foreign             828        910        910      1,061      1,104
 Towing -
  Domestic            275        182        273        184        184
  Foreign             736        837      1,026      1,095      1,196
 Crew               6,024      5,921      6,188      6,321      6,699
 Geophysical,
  Freight and
  Other                50          -         91         92         92
 Mini-supply        2,619      2,708      2,730      2,760      2,760
 Standby Safety     1,932      1,911      1,911      1,871      1,840
 Utility                -          -          -      2,581      3,253
                ---------- ---------- ---------- ---------- ----------
                   14,143     14,214     14,947     18,146     19,520
                ========== ========== ========== ========== ==========

(1) Primarily includes Aviation Services.
(2) Excludes vessels that are bareboat chartered-out, vessels owned by
    corporations that participate in pooling arrangements with the
    Company, minority owned joint venture vessels and managed vessels.


                 SEACOR Holdings Inc. and Subsidiaries
                           Supplemental Data
                              (unaudited)

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

Offshore Marine
 Vessels - Rates Per
 Day Worked(1)(2):
 Anchor Handling
  Towing Supply -
      Domestic       $ 22,009  $ 19,115  $ 15,888  $ 22,111  $ 20,095
      Foreign           9,534     9,539     8,524     9,212     9,927
   Supply -
      Domestic          6,720     5,994     6,300     6,079     6,062
      Foreign          10,095     9,729     9,067     8,860     8,926
   Towing -
      Domestic          6,118     6,040     6,055     6,091     6,093
      Foreign           6,769     6,775     6,586     6,577     7,236
   Crew                 3,458     3,314     3,297     3,323     3,257
   Geophysical,
    Freight and
    Other              14,000         -         -         -         -
   Mini-supply          2,937     2,932     2,976     2,992     2,998
   Standby Safety       7,839     7,719     7,694     6,933     6,733
   Utility                  -         -         -     1,752     1,774

Offshore Marine
 Vessels -
 Utilization(2):
   Anchor Handling
    Towing Supply -
      Domestic           85.2%     68.3%     68.2%     56.2%     65.9%
      Foreign            90.4%     63.9%     61.5%     72.8%     81.9%
   Supply -
      Domestic           68.9%     76.1%     71.7%     50.5%     72.7%
      Foreign            86.9%     72.8%     73.4%     86.1%     88.7%
   Towing -
      Domestic           64.3%     91.8%     56.7%    100.0%    100.0%
      Foreign            61.7%     61.8%     67.4%     75.0%     82.7%
   Crew                  93.5%     89.0%     82.8%     78.5%     75.9%
   Geophysical,
    Freight and
    Other                50.0%        -         -         -         -
   Mini-supply           90.9%     86.7%     81.7%     86.3%     91.6%
   Standby Safety        89.7%     85.9%     87.0%     90.3%     89.9%
   Utility                  -         -         -      52.4%     58.7%

   Overall
    Utilization          88.2%     83.2%     78.6%     75.1%     77.5%
   Utilization Lost
    to Market
    Conditions            7.9%     12.9%     17.1%     21.4%     18.9%
   Utilization Lost
    to Operating
    Conditions            3.9%      3.9%      4.3%      3.5%      3.6%

Helicopter Flight
 Hours                  7,431     6,714     5,750     5,422     5,131


(1) Revenues for certain vessels, primarily North Sea standby safety,
    are earned in foreign currencies, principally British Pounds
    Sterling. These revenues have been converted to U.S. dollars at
    the weighted average exchange rate for the periods indicated.
(2) Excludes vessels that are bareboat chartered-out, vessels owned by
    corporations that participate in pooling arrangements with the
    Company, minority owned joint venture vessels and managed vessels.


                 SEACOR Holdings Inc. and Subsidiaries
                          Supplementary Data
                              (unaudited)

                                     September 30, 2004
                      ------------------------------------------------
                                            Joint     Pooled/
                       Owned   Leased-in   Ventured   Managed   Total
                      ------- ----------- ---------- --------- -------
Offshore Marine Fleet
 Count:
 Operated Domestic -
  Anchor Handling
   Towing Supply           1           2          1         -       4
  Crew                    34          19          1         -      54
  Geophysical,
   Freight and Other       -           -          -         -       -
  Mini-supply             22           4          -         -      26
  Standby Safety           -           -          -         -       -
  Supply                   3           2          2         1       8
  Towing                   1           2          -         -       3
  Utility                  -           -          -         -       -
                      ------- ----------- ---------- --------- -------
                          61          29          4         1      95
                      ------- ----------- ---------- --------- -------

 Operated Foreign -
  Anchor Handling
   Towing Supply          12           -          1         -      13
  Crew                    19           -          4         -      23
  Geophysical,
   Freight and Other       1           -          1         -       2
  Mini-supply              3           -          1         -       4
  Standby Safety          19           -          3         5      27
  Supply                   7           2          4         -      13
  Towing                   9           -         21         -      30
  Utility                  -           -          -         -       -
                      ------- ----------- ---------- --------- -------
                          70           2         35         5     112
                      ------- ----------- ---------- --------- -------

 Worldwide Operations
  -
  Anchor Handling
   Towing Supply          13           2          2         -      17
  Crew                    53          19          5         -      77
  Geophysical,
   Freight and Other       1           -          1         -       2
  Mini-supply             25           4          1         -      30
  Standby Safety          19           -          3         5      27
  Supply                  10           4          6         1      21
  Towing                  10           2         21         -      33
  Utility                  -           -          -         -       -
                      ------- ----------- ---------- --------- -------
                         131          31         39         6     207
                      ======= =========== ========== ========= =======

Inland Barges,
 domestic
  Dry Cargo Hopper       631         182          6       210   1,029
  Chemical Tank           14           -          -         -      14
                      ------- ----------- ---------- --------- -------
                         645         182          6       210   1,043
                      ======= =========== ========== ========= =======

Helicopters, domestic     25          18          -         1      44
                      ======= =========== ========== ========= =======


                            Jun. 30,   Mar. 31,   Dec. 31,   Sep. 30,
                              2004       2004       2003       2003
                           ---------- ---------- ---------- ----------
Offshore Marine Fleet
 Count:
 Operated Domestic -
  Anchor Handling Towing
   Supply                          4          4          6          5
  Crew                            49         53         53         57
  Geophysical, Freight and
   Other                           -          -          1          1
  Mini-supply                     26         27         27         28
  Standby Safety                   -          -          -          -
  Supply                           8         10          9         11
  Towing                           2          2          2          2
  Utility                          -          -          -         34
                           ---------- ---------- ---------- ----------
                                  89         96         98        138
                           ---------- ---------- ---------- ----------

 Operated Foreign -
  Anchor Handling Towing
   Supply                         14         15         20         21
  Crew                            26         33         34         33
  Geophysical, Freight and
   Other                           1          2          3          1
  Mini-supply                      5          5          5          4
  Standby Safety                  27         27         27         26
  Supply                          14         15         17         18
  Towing                          31         35         31         36
  Utility                          -          -          -          2
                           ---------- ---------- ---------- ----------
                                 118        132        137        141
                           ---------- ---------- ---------- ----------

 Worldwide Operations -
  Anchor Handling Towing
   Supply                         18         19         26         26
  Crew                            75         86         87         90
  Geophysical, Freight and
   Other                           1          2          4          2
  Mini-supply                     31         32         32         32
  Standby Safety                  27         27         27         26
  Supply                          22         25         26         29
  Towing                          33         37         33         38
  Utility                          -          -          -         36
                           ---------- ---------- ---------- ----------
                                 207        228        235        279
                           ========== ========== ========== ==========

Inland Barges, domestic
 Dry Cargo Hopper                911        792        784        735
 Chemical Tank                     1          -          -          -
                           ---------- ---------- ---------- ----------
                                 912        792        784        735
                           ========== ========== ========== ==========

Helicopters, domestic             43         43         41         36
                           ========== ========== ========== ==========

 

Contacts

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