SEACOR Holdings Announces Second Quarter Results

HOUSTON--(BUSINESS WIRE)--July 29, 2004--SEACOR Holdings Inc. (NYSE:CKH) announced net earnings for the second quarter ended June 30, 2004 of $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 second quarter ended June 30, 2003, net earnings were $6.4 million, or $0.33 per diluted share, on operating revenues of $105.2 million. For the six months ended June 30, 2003, net earnings were $10.8 million, or $0.55 per diluted share, on operating revenues of $202.0 million.

For the immediately proceeding quarter ended March 31, 2004, the Company reported a net loss of $3.0 million, or $0.16 per diluted share, on operating revenues of $96.0 million.

Financial results for the second quarter ended June 30, 2004 as compared to the immediately preceding quarter ended March 31, 2004 were impacted by a variety of factors highlighted below.

-- Increased operating revenues. Operating revenues for the quarter were $97.4 million, an increase of $1.4 million from the previous quarter. Newly constructed barges commenced operations and non-grain freight volumes increased in Inland River Services. Utilization improved for Offshore Marine Services' vessels working in the U.S. and Mexico. Flight hours increased in Aviation Services due to improved demand and increased customer familiarity with new aircraft models introduced by the Company in late 2003. These improvements were partly offset by reduced revenues from oil spill responses handled by Environmental Services.

-- Increased operating income. Operating income was $1.7 million for the quarter as compared to an operating loss of $4.5 million for the previous quarter. The improvement in income largely resulted from increased gains on asset sales, lower operating and administrative expenses in the Offshore Marine and Environmental Services segments and the improved revenues described above. Offsetting this improvement was lower demand for southbound grain movement, higher costs associated with seasonal operating patterns, and rising fuel expenses in Inland River Services.

-- Decreased income from derivative transactions. Derivative transactions resulted in a loss of $0.6 million for the quarter as compared to income of $0.1 million in the previous quarter.

-- Decreased gain from foreign currency transactions, net. Net foreign currency exchange loss was $0.7 million for the quarter as compared to a net foreign currency exchange gain of $0.5 million for the previous quarter. The net gain and loss resulted primarily from the revaluation of a loan made by the Company to a foreign subsidiary.

-- Increased equity earnings. Equity earnings for the quarter were $0.7 million, a modest increase from the previous quarter. Income in both periods resulted primarily from Offshore Marine Services' joint venture operations in Mexico and Latin America. Results for the second quarter included a $0.5 million loss from the sale of an interest in an Asian joint venture.

Drydock costs aggregated $2.3 million in the second quarter with 18 vessels completing repairs. Fourteen main propulsion engines were overhauled for aggregate costs of $0.6 million.

In the second quarter and for all other periods reported in this press release, the Company reclassified "Gains on Asset Sales" from "Other Income (Expense)" to "Operating Income (Loss)." Gains on asset sales totaled $6.1 million in the current quarter. Offshore Marine Services sold 30 vessels that had a carrying value of $45.5 million. Dispositions included the Company's 19 remaining "retired from service" vessels and 1 that was leased-back. Six vessels chartered-in pursuant to sale-leaseback transactions were redelivered to lessors.

Four new offshore support vessels, 125 new dry cargo hopper barges and 1 new chemical tank barge were delivered to the Company in the second quarter for aggregate consideration of $53.9 million.

Remaining capital commitments at June 30, 2004 for 5 new and 1 used vessel, 183 new dry cargo hopper barges, 39 new chemical tank barges, 7 new helicopters and other equipment aggregated $113.2 million. Deliveries are expected throughout 2004 and 2005. The Company also holds options to purchase 150 new dry cargo hopper barges for delivery in 2005.

In the quarter, the Company acquired 220,400 shares of its common stock for treasury at an aggregate cost of $8.7 million pursuant to a stock and debt repurchase plan. As of June 30, 2004, $45.4 million of authority remains available for future purchases of SEACOR's stock and 5-7/8% and 7.2% notes.

At June 30, 2004, the Company's cash, marketable securities, and construction reserve funds totaled $441.8 million, an increase of $0.3 million from the prior quarter. At June 30, 2004, the Company's long-term debt totaled $342.3 million, an increase of $10.1 million from the prior quarter.

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       Six Months Ended
                              June 30,                June 30,
                      ------------------------ -----------------------
                         2004        2003         2004        2003
                      ----------- ------------ ----------- -----------

Operating Revenues   $    97,403 $    105,159 $   193,377 $   202,019
                      ----------- ------------ ----------- -----------

Costs and Expenses:
  Operating expenses      73,759       69,422     148,789     136,522
  Administrative and
   general                13,857       13,391      28,933      27,470
  Depreciation and
   amortization           14,156       13,708      28,117      28,344
                      ----------- ------------ ----------- -----------
                         101,772       96,521     205,839     192,336
                      ----------- ------------ ----------- -----------
Gains on Asset
 Sales(1)                  6,117          414       9,755       5,561
                      ----------- ------------ ----------- -----------
Operating Income
 (Loss)                    1,748        9,052      (2,707)     15,244
                      ----------- ------------ ----------- -----------

Other Income
 (Expense):
  Interest income          1,663        1,870       3,042       4,426
  Interest expense        (5,388)      (4,419)    (10,766)     (9,925)
  Debt
   extinguishments             -         (966)          -      (2,091)
  Derivative income
   (loss), net              (560)       2,624        (481)      4,373
  Foreign currency
   transaction gains
   (losses), net            (689)       1,294        (223)      1,829
  Marketable
   securities sale
   gains, net              2,753        1,250       5,502       3,441
  Other, net                 233         (747)        352        (744)
                      ----------- ------------ ----------- -----------
                          (1,988)         906      (2,574)      1,309
                      ----------- ------------ ----------- -----------

Income (Loss)  Before
 Taxes, Minority
 Interest and Equity
 in Earnings of 50%
 or Less Owned
 Companies                  (240)       9,958      (5,281)     16,553
Income Taxes                 169        3,596      (1,333)      5,995
                      ----------- ------------ ----------- -----------
Income (Loss) Before
 Minority Interest
 and Equity in
  Earnings of 50% or
   Less Owned
   Companies                (409)       6,362      (3,948)     10,558
Minority Interest in
 Net Income of
 Subsidiaries                (91)        (241)        (86)       (339)
Equity in Earnings of
 50% or Less Owned
 Companies                   673          322       1,243         568
                      ----------- ------------ ----------- -----------
Net Income (Loss)    $       173 $      6,443 $    (2,791)$    10,787
                      =========== ============ =========== ===========

Earnings (Loss) Per
 Common Share:
  Basic              $      0.01 $       0.34 $     (0.15)$      0.55
  Diluted (2)               0.01         0.33       (0.15)       0.55

Weighted Average
 Common Shares
 Outstanding:
  Basic               18,347,195   19,155,421  18,406,783  19,463,596
  Diluted (2)         18,476,409   19,315,817  18,406,783  19,834,307

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

(2)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,
                             2004     2004     2003     2003     2003
                          -------- -------- -------- -------- --------
Statements of Operations:
 Operating Revenues      $ 97,403 $ 95,974 $100,956 $103,234 $105,159
                          -------- -------- -------- -------- --------

 Cost and Expenses:
  Operating expenses       73,759   75,030   78,504   72,264   69,422
  Administrative and
   general                 13,857   15,076   16,538   13,676   13,391
  Depreciation and
   amortization            14,156   13,961   13,751   13,411   13,708
                          -------- -------- -------- -------- --------
                          101,772  104,067  108,793   99,351   96,521
                          -------- -------- -------- -------- --------
 Gains on Asset Sales(1)    6,117    3,638    9,612    2,349      414
                          -------- -------- -------- -------- --------
 Operating Income (Loss)    1,748   (4,455)   1,775    6,232    9,052
                          -------- -------- -------- -------- --------

Other Income (Expense):
 Interest income            1,663    1,379    1,565    1,540    1,870
 Interest expense          (5,388)  (5,378)  (4,785)  (4,603)  (4,419)
 Debt extinguishments           -        -        -        -     (966)
 Derivative income
  (loss), net                (560)      79   (1,541)    (443)   2,624
 Foreign currency
  transaction gains
  (losses), net              (689)     466    3,625   (1,714)   1,294
 Marketable securities
  sale gains, net           2,753    2,749      743    2,411    1,250
 Other, net                   233      119      106      (15)    (747)
                          -------- -------- -------- -------- --------
                           (1,988)    (586)    (287)  (2,824)     906
                          -------- -------- -------- -------- --------
Income (Loss) Before
 Taxes, Minority Interest
 and
 Equity Earnings in 50% or
  Less Owned Companies       (240)  (5,041)   1,488    3,408    9,958
Income Taxes                  169   (1,502)   3,067    1,334    3,596
                          -------- -------- -------- -------- --------
Income (Loss) Before
 Minority Interest and
 Equity
 Equity in 50% or Less
  Owned Companies            (409)  (3,539)  (1,579)   2,074    6,362
Minority Interest in Net
 (Income) Loss of
 Subsidiaries                 (91)       5      (66)    (112)    (241)
Equity in Earnings of 50%
 or less Owned Companies      673      570      (85)     935      322
                          -------- -------- -------- -------- --------
Net Income (Loss)        $    173 $ (2,964)$ (1,730)$  2,897 $  6,443
                          ======== ======== ======== ======== ========

Earnings (Loss) Per
 Common Share:
 Basic                   $   0.01 $  (0.16)$  (0.09)$   0.16 $   0.34
 Diluted(2)                  0.01    (0.16)   (0.09)    0.15     0.33

Weighted Average Common
 Shares Outstanding:
 Basic                     18,347   18,468   18,509   18,630   19,155
 Diluted(2)                18,476   18,468   18,509   18,785   19,316

Common Shares Outstanding
 at Period End             18,313   18,533   18,581   18,729   18,793

(1)Previously reported gains on asset sales have been reclassified
    from "Other Income (Expense)" to conform to the three months ended
    June 30, 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 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
                ------------------------------------------------------
                 Jun 30,    Mar. 31,   Dec. 31,   Sep. 30,   Jun. 30,
                  2004       2004       2003       2003       2003
                ---------- ---------- ---------- ---------- ----------
Balance Sheet
 Data, at
 period end (in
 thousands):
 Cash,
  Securities,
  Construction
  Reserve Funds$  441,805 $  441,502 $  438,131 $  428,372 $  431,796
 Total Assets   1,394,902  1,401,426  1,402,611  1,370,630  1,379,700
 Total Long-
  term Debt       342,271    332,225    332,179    332,213    332,187
 Stockholders'
  Equity          757,886    766,529    770,446    768,530    772,563

Operating
 Revenues by
 Segment (in
 thousands):
 Offshore
  Marine
  Services     $   67,039 $   66,016 $   74,262 $   81,194 $   79,553
 Environmental
  Services         14,654     16,392     11,732     10,625     15,551
 Inland River
  Services         10,038      8,576     10,728      7,247      5,044
 Other(1)           6,680      5,827      5,328      4,803      5,422
 Intersegment
  Eliminations     (1,008)      (837)    (1,094)      (635)      (411)
                ---------- ---------- ---------- ---------- ----------
               $   97,403 $   95,974 $  100,956 $  103,234 $  105,159
                ========== ========== ========== ========== ==========
Operating
 Income (Loss)
 by Segment (in
 thousands):
 Offshore
  Marine
  Services     $    4,677 $   (1,525)$    3,976 $    5,779 $    5,869
 Environmental
  Services            816        954        894      3,421      5,213
 Inland River
  Services            932      1,016      2,523        970        845
 Other(1)          (1,308)    (1,895)    (1,893)    (1,122)       (96)
 Corporate
  Expenses         (3,369)    (3,005)    (3,725)    (2,816)    (2,779)
                ---------- ---------- ---------- ---------- ----------
               $    1,748 $   (4,455)$    1,775 $    6,232 $    9,052
                ========== ========== ========== ========== ==========
Offshore Marine
 Vessels -
 Available
 Days(2):
 Anchor
  Handling
  Towing Supply
  -
  Domestic            273        304        460        460        455
  Foreign             741        724        890      1,012      1,001
 Supply -
  Domestic            731        790        831        920      1,026
  Foreign             910        910      1,061      1,104        995
 Towing -
  Domestic            182        273        184        184        253
  Foreign             837      1,026      1,095      1,196      1,140
 Crew               5,921      6,188      6,321      6,699      6,654
 Geophysical,
  Freight and
  Other                 -         91         92         92         91
 Mini-supply        2,708      2,730      2,760      2,760      2,730
 Standby Safety     1,911      1,911      1,871      1,840      1,820
 Utility                -          -      2,581      3,253      3,417
                ---------- ---------- ---------- ---------- ----------
                   14,214     14,947     18,146     19,520     19,582
                ========== ========== ========== ========== ==========

(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
                          --------------------------------------------
                          Jun. 30, Mar. 31, Dec. 31, Sep. 30, Jun. 30,
                           2004     2004     2003     2003     2003
                          -------- -------- -------- -------- --------
Offshore Marine Vessels -
 Rates Per Day Worked(1)
 (2):
 Anchor Handling Towing
  Supply -
  Domestic               $ 19,115 $ 15,888 $ 22,111 $ 20,095 $ 16,712
  Foreign                   9,539    8,524    9,212    9,927   10,593
 Supply -
  Domestic                  5,994    6,300    6,079    6,062    6,141
  Foreign                   9,729    9,067    8,860    8,926    9,615
 Towing -
  Domestic                  6,040    6,055    6,091    6,093    6,290
  Foreign                   6,775    6,586    6,577    7,236    7,050
 Crew                       3,314    3,297    3,323    3,257    3,153
 Geophysical, Freight and
  Other                         -        -        -        -        -
 Mini-supply                2,932    2,976    2,992    2,998    3,027
 Standby Safety             7,719    7,694    6,933    6,733    6,559
 Utility                        -        -    1,752    1,774    1,792

Offshore Marine Vessels -
 Utilization(2):
 Anchor Handling Towing
  Supply -
  Domestic                   68.3%    68.2%    56.2%    65.9%    66.8%
  Foreign                    63.9%    61.5%    72.8%    81.9%    81.2%
 Supply -
  Domestic                   76.1%    71.7%    50.5%    72.7%    58.4%
  Foreign                    72.8%    73.4%    86.1%    88.7%    93.9%
 Towing -
  Domestic                   91.8%    56.7%   100.0%   100.0%    97.1%
  Foreign                    61.8%    67.4%    75.0%    82.7%    88.2%
 Crew                        89.0%    82.8%    78.5%    75.9%    79.9%
 Geophysical, Freight and
  Other                         -        -        -        -        -
 Mini-supply                 86.7%    81.7%    86.3%    91.6%    89.4%
 Standby Safety              85.9%    87.0%    90.3%    89.9%    89.5%
 Utility                        -        -     52.4%    58.7%    56.7%

 Overall Utilization         83.2%    78.6%    75.1%    77.5%    77.8%
 Utilization Lost to
  Market Conditions          12.9%    17.1%    21.4%    18.9%    18.8%
 Utilization Lost to
  Operating Conditions        3.9%     4.3%     3.5%     3.6%     3.4%

Helicopter Flight Hours     6,714    5,750    5,422    5,131    5,889

(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, 2004
                                --------------------------------------
                                Owned Leased-in  Joint   Pooled/ Total
                                                Ventured Managed

                                ----- --------- -------- ------- -----
Offshore Marine Fleet Count:
 Operated Domestic -
  Anchor Handling Towing Supply     1        2        1        -    4
  Crew                             29       19        1        -   49
  Geophysical, Freight and Other    -        -        -        -    -
  Mini-supply                      22        4        -        -   26
  Standby Safety                    -        -        -        -    -
  Supply                            3        2        2        1    8
  Towing                            -        2        -        -    2
  Utility                           -        -        -        -    -
                                ----- --------- -------- ------- -----
                                   55       29        4        1   89
                                ----- --------- -------- ------- -----
 Operated Foreign -
  Anchor Handling Towing Supply    13        -        1        -   14
  Crew                             22        -        4        -   26
  Geophysical, Freight and Other    -        -        1        -    1
  Mini-supply                       3        -        2        -    5
  Standby Safety                   19        -        3        5   27
  Supply                            7        2        5        -   14
  Towing                           10        -       21        -   31
  Utility                           -        -        -        -    -
                                ----- --------- -------- ------- -----
                                   74        2       37        5  118
                                ----- --------- -------- ------- -----
 Worldwide Operations -
  Anchor Handling Towing Supply    14        2        2        -   18
  Crew                             51       19        5        -   75
  Geophysical, Freight and Other    -        -        1        -    1
  Mini-supply                      25        4        2        -   31
  Standby Safety                   19        -        3        5   27
  Supply                           10        4        7        1   22
  Towing                           10        2       21        -   33
  Utility                           -        -        -        -    -
                                ----- --------- -------- ------- -----
                                  129       31       41        6  207
                                ===== ========= ======== ======= =====
Inland Barges, domestic
  Dry Cargo Hopper                513      182        6      210  911
  Chemical Tank                     1        -        -        -    1
                                ----- --------- -------- ------- -----
                                  514      182        6      210  912
                                ===== ========= ======== ======= =====
Helicopters, domestic              24       18        -        1   43
                                ===== ========= ======== ======= =====

                 SEACOR Holdings Inc. and Subsidiaries
                          Supplementary Data
                              (unaudited)

                             Mar. 31,   Dec. 31,   Sep. 30,   Jun. 30,
                               2004       2003      2003        2003
                             --------   --------   --------   --------
Offshore Marine Fleet
 Count:
 Operated Domestic -
  Anchor Handling Towing
   Supply                          4          6          5          5
  Crew                            53         53         57         60
  Geophysical, Freight and
   Other                           -          1          1          1
  Mini-supply                     27         27         28         28
  Standby Safety                   -          -          -          -
  Supply                          10          9         11         11
  Towing                           2          2          2          2
  Utility                          -          -         34         37
                             --------   --------   --------   --------
                                  96         98        138        144
                             --------   --------   --------   --------
 Operated Foreign -
  Anchor Handling Towing
   Supply                         15         20         21         20
  Crew                            33         34         33         32
  Geophysical, Freight and
   Other                           2          3          1          1
  Mini-supply                      5          5          4          4
  Standby Safety                  27         27         26         26
  Supply                          15         17         18         17
  Towing                          35         31         36         36
  Utility                          -          -          2          3
                             --------   --------   --------   --------
                                 132        137        141        139
                             --------   --------   --------   --------
 Worldwide Operations -
  Anchor Handling Towing
   Supply                         19         26         26         25
  Crew                            86         87         90         92
  Geophysical, Freight and
   Other                           2          4          2          2
  Mini-supply                     32         32         32         32
  Standby Safety                  27         27         26         26
  Supply                          25         26         29         28
  Towing                          37         33         38         38
  Utility                          -          -         36         40
                             --------   --------   --------   --------
                                 228        235        279        283
                             ========   ========   ========   ========
Inland Barges, domestic
  Dry Cargo Hopper               792        784        735        559
  Chemical Tank                    -          -          -          -
                             --------   --------   --------   --------
                                 792        784        735        559
                             ========   ========   ========   ========
Helicopters, domestic             43         41         36         36
                             ========   ========   ========   ========

 

Contacts

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