SEACOR Holdings Announces First Quarter Results

HOUSTON--(BUSINESS WIRE)--May 3, 2004--SEACOR Holdings Inc. (NYSE:CKH) announced a net loss for the first quarter ended March 31, 2004 of $3.0 million, or $0.16 per diluted share, on operating revenues of $96.0 million. For the comparable quarter ended March 31, 2003, net earnings were $4.3 million, or $0.22 per diluted share, on operating revenues of $96.9 million.

For the immediately preceding quarter ended December 31, 2003, the Company reported a net loss of $1.7 million, or $0.09 per diluted share, on operating revenues of $101.0 million.

Financial results for the first quarter ended March 31, 2004 as compared to the immediately preceding quarter ended December 31, 2003 were impacted by a variety of factors highlighted below.

-- Decreased operating revenues. Operating revenues for the quarter were $96.0 million, a decrease of $5.0 million from the previous quarter. Offshore Marine Services revenue declined primarily due to a decrease in the size of its fleet and weaker demand for certain classes of its vessels. Inland River Services revenue declined primarily due to less activity, which is typical of the winter months when part of the inland river system is shut down. These declines were partially offset by higher Environmental Services revenue due to an increase in spill response activity.

-- Increased operating loss. Operating loss for the quarter was $8.1 million, an increase of $0.3 million over the prior quarter. Overall reductions in operating and administrative expenses were not sufficient to offset the decline in revenues from Inland River Services and Offshore Marine Services. Operating losses from the Company's aviation and supply chain management operations, included under "Other" in the Company's segmented financials, also increased during the quarter. Environmental Services operating income was generally unchanged between quarters.

-- Decreased income from equipment sales. Equipment sale income of $3.6 million for the quarter decreased $6.0 million from the prior quarter as a result of fewer vessel sales.

-- Increased income from derivative transactions. During the quarter the Company realized $0.1 million of gains compared to a loss of $1.5 million in the fourth quarter. Prior quarter results included a $1.5 million loss with respect to swap agreements on certain of the Company's 7.2% notes. These swap agreements were terminated in the fourth quarter.

-- Decreased foreign currency transaction gains. Foreign currency transaction gains of $0.5 million decreased $3.2 million. In both periods, foreign currency transaction gains resulted primarily from the strengthening of the pound sterling currency against the U.S. dollar with respect to an intercompany loan with a foreign subsidiary.

-- Increased marketable security sale gains. Marketable security sale gains of

$2.7 million for the quarter increased $2.0 million from the prior quarter.

-- Decreased income tax rate. Results for the fourth quarter included a $1.9 million charge in connection with valuation allowances provided for foreign tax credits which may expire before utilization. During the first quarter, no additional valuation allowances were provided.

-- Increased equity earnings. During the quarter the Company realized equity income of $0.6 million as compared to a loss of $0.1 million in the prior quarter. The effect on income of improved offshore marine joint venture business activities in Mexico and Venezuela was partially offset by a $0.5 million first quarter write-down in the carrying value of one of the Company's investments.

First quarter results included the drydock and repair of 20 vessels for an aggregate cost of $2.9 million and the overhaul of 24 engines resulting in main engine repair costs of $3.0 million.

During the quarter, Offshore Marine Services sold 12 vessels with a carrying value of $2.8 million, including 9 from its "retired from service" utility fleet. During the quarter, 1 towing supply vessel and 1 geophysical vessel were added to its "retired from service" fleet. As of March 31, 2004, a total of 19 vessels were retired from service and 9 additional vessels were out of service due to weak customer demand.

During the quarter, 2 new offshore support vessels, 22 new dry cargo covered hopper barges and 1 new helicopter were delivered to the Company for aggregate consideration of $33.0 million.

The Company's remaining capital commitments at March 31, 2004 for 7 new and 1 used vessel, 308 new dry cargo hopper barges, 24 new chemical tank barges and 3 new helicopters totaled $128.0 million, with deliveries expected throughout 2004. The Company also holds options to purchase 150 new dry cargo hopper barges for delivery in 2005.

During the quarter, the Company acquired 99,057 shares of its common stock for treasury at an aggregate cost of $4.1 million pursuant to a stock and debt repurchase plan. As of March 31, 2004, $54.1 million of authority remains available for future purchases of SEACOR's stock and 5-7/8% and 7.2% notes.

At March 31, 2004, the Company's cash, marketable securities and construction reserve funds totaled $441.5 million, an increase of $3.4 million from the prior quarter. At March 31, 2004, the Company's long-term debt totaled $332.2 million, unchanged as compared to 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 operations, and offshore 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.

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


                                                    Three Months Ended
                                                         March 31,   
                                                      ----------------
                                                         2004    2003
                                                      -------- -------

Operating Revenues                                   $ 95,974 $96,860
                                                      -------- -------

Costs and Expenses:
   Operating expenses                                  75,030  67,100
   Administrative and general                          15,076  14,079
   Deprecation and amortization                        13,961  14,636
                                                      -------- -------
                                                      104,067  95,815
                                                      -------- -------

Operating Income (Loss)                                (8,093)  1,045
                                                      -------- -------

Other Income (Expense):
   Interest income                                      1,379   2,556
   Interest expense                                    (5,378) (5,506)
   Debt extinguishments                                     -  (1,125)
   Income from equipment sales or retirements, net      3,638   5,147
   Derivative income (loss), net                           79   1,749
   Foreign currency transaction gains, net                466     535
   Marketable securities sale gains, net                2,749   2,191
   Other, net                                             119       3
                                                      -------- -------
                                                        3,052   5,550
                                                      -------- -------
Income (Loss)  Before Taxes, Minority Interest and
  Equity in Earnings of 50% or Less Owned Companies    (5,041)  6,595
Income Taxes                                           (1,502)  2,399
                                                      -------- -------
Income (Loss) Before Minority Interest and Equity in
   Earnings of 50% or Less Owned Companies             (3,539)  4,196
Minority Interest in Net (Income) Loss of
 Subsidiaries                                               5     (98)
Equity in Earnings of 50% or Less Owned Companies         570     246
                                                      -------- -------
Net Income (Loss)                                    $ (2,964)$ 4,344
                                                      ======== =======

Earnings Per Common Share:
   Basic                                             $  (0.16)$  0.22
   Diluted (1)                                          (0.16)   0.22

Weighted Average Common Shares Outstanding:
   Basic                                               18,468  19,775
   Diluted (1)                                         18,468  20,362



(1) Outstanding stock options and restricted stock have been
excluded from the computations of diluted earnings per common share
and diluted weighted average common shares for the three months ended
March 31, 2004 as the effect was anti-dilutive.


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




                             
                                       Three Months Ended    
                           -------------------------------------------
                         Mar. 31, Dec. 31, Sep. 30, Jun. 30,  Mar. 31,
                           2004     2003     2003     2003     2003
                         -------- -------- -------- -------- ---------
Statements of
Operations:
  Operating Revenues      $ 95,974 $100,956 $103,234 $105,159 $96,860
                           -------- -------- -------- -------- -------

Cost and Expenses:
Operating expenses          75,030   78,504   72,264   69,422  67,100
Administrative
and general                 15,076   16,538   13,676   13,391  14,079
Depreciation and
 amortization               13,961   13,751   13,411   13,708  14,636
                           -------- -------- -------- -------- -------
                           104,067  108,793   99,351   96,521  95,815
                           -------- -------- -------- -------- -------
Operating Income
(Loss)                      (8,093)  (7,837)   3,883    8,638   1,045
                           -------- -------- -------- -------- -------

Other Income (Expense):
Interest income              1,379    1,565    1,540    1,870   2,556
Interest expense            (5,378)  (4,785)  (4,603)  (4,419) (5,506)
Debt extinguishments             -        -        -     (966) (1,125)
Income from equipment sales
or retirements, net          3,638    9,612    2,349      414   5,147
Derivative income (loss),
net                             79   (1,541)    (443)   2,624   1,749
Foreign currency transaction
gains (losses), net            466    3,625   (1,714)   1,294     535
Marketable securities
gains, net                   2,749      743    2,411    1,250   2,191
Other, net                     119      106      (15)    (747)      3
                           -------- -------- -------- -------- -------
                             3,052    9,325     (475)   1,320   5,550
                           -------- -------- -------- -------- -------
Income (Loss)
Before Taxes, Minority Interest
and Equity Earnings in 50% or
Less Owned Companies        (5,041)   1,488    3,408    9,958   6,595
Income Taxes                (1,502)   3,067    1,334    3,596   2,399
                           -------- -------- -------- -------- -------
Income (Loss)
Before Minority Interest
and Equity
Equity in 50% or Less Owned
Companies                   (3,539)  (1,579)   2,074    6,362   4,196
Minority Interest
in Net (Income)
Loss of Subsidiaries             5      (66)    (112)    (241)    (98)
Equity in Earnings
of 50% or less
Owned Companies                570      (85)     935      322     246
                           -------- -------- -------- -------- -------
Net Income (Loss)         $ (2,964)$ (1,730)$  2,897 $  6,443 $ 4,344
                           ======== ======== ======== ======== =======

Earnings Per Common
Share:
       Basic              $  (0.16)$  (0.09)$   0.16 $   0.34 $  0.22
       Diluted(1)            (0.16)   (0.09)    0.15     0.33    0.22

Weighted Average Common Shares
Outstanding:
       Basic                18,468   18,509   18,630   19,155  19,775
       Diluted(1)           18,468   18,509   18,785   19,316  20,362

    Common Shares
    Outstanding at Period
    End                     18,533   18,581   18,729   18,793  19,615

(1) Outstanding stock options and restricted stock have been
excluded from the computation of diluted earnings 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
               -------------------------------------------------------
                  Mar. 31,   Dec. 31,   Sep. 30,   Jun. 30,   Mar. 31,
                   2004       2003       2003       2003       2003
               ---------- ---------- ---------- ---------- -----------


Balance Sheet Data,
at period
end (in thousands):
Cash, Securities,
Construction
Reserve Funds  $  441,502 $  438,131 $  428,372 $  431,796 $  498,075
 Total Assets   1,401,426  1,402,611  1,370,630  1,379,700  1,401,710
 Total Long-
 term Debt        332,225    332,179    332,213    332,187    343,058
 Stockholders'
  Equity          766,529    770,446    768,530    772,563    789,971

Operating
 Revenues by
 Segment (in
 thousands):
 Offshore marine
 services       $  66,292 $   74,262 $   81,194 $   79,553 $   81,107
 Environmental
 services          16,392     11,732     10,625     15,551      6,137
 Inland river
 services           8,576     10,728      7,247      5,044      4,840
   Other            6,705      5,328      4,803      5,422      5,187
   Intersegment
    eliminations   (1,991)    (1,094)      (635)      (411)      (411)
                 ---------- ---------- ---------- ---------- ---------
                $  95,974 $  100,956 $  103,234 $  105,159 $   96,860
                 ========== ========== ========== ========== =========

Operating Income
 (Loss) by Segment
 (in thousands):
   Offshore marine
    services    $  (4,378)$   (5,652)$    3,432 $    5,286 $    3,312
 Environmental
  services            957        894      3,419      5,131       (399)
Inland river
 services             943      2,523        970      1,156        884
  Other            (2,610)    (1,893)    (1,122)      (156)      (146)
  Corporate
  expenses         (3,005)    (3,709)    (2,816)    (2,779)    (2,606)
                 ---------- ---------- ---------- ---------- ---------
               $   (8,093)$   (7,837)$    3,883 $    8,638 $    1,045
                 ========== ========== ========== ========== =========

Offshore Marine
 Vessels -
 Available
 Days(1):
 Anchor handling towing
    supply -
      Domestic        304        460        460        455        450
      Foreign         724        890      1,012      1,001      1,058
   Supply -
      Domestic        790        831        920      1,026      1,260
      Foreign         910      1,061      1,104        995        931
   Towing -
      Domestic        273        184        184        253        304
      Foreign       1,026      1,095      1,196      1,140      1,245
   Crew             6,188      6,321      6,699      6,654      6,843
   Geophysical,
    freight and
    other              91         92         92         91         90
   Mini-supply      2,730      2,760      2,760      2,730      2,700
   Standby
    safety          1,911      1,871      1,840      1,820      1,818
   Utility              -      2,581      3,253      3,417      3,428
                 ---------- ---------- ---------- ---------- ---------
                   14,947     18,146     19,520     19,582     20,127
                 ========== ========== ========== ========== =========

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

Offshore Marine Vessels -
Rates Per Day Worked:
Anchor handling towing
supply -
Domestic                      $15,888 $22,111 $20,095 $16,712 $17,668
Foreign                         8,524   9,212   9,927  10,593  10,110
  Supply -
  Domestic                      6,300   6,079   6,062   6,141   6,957
  Foreign                       9,067   8,860   8,926   9,615   9,443
Towing -
Domestic                        6,055   6,091   6,093   6,290   6,424
Foreign                         6,586   6,577   7,236   7,050   7,146
Crew                            3,297   3,323   3,257   3,153   3,158
Geophysical, freight and
other                               -       -       -       -       -
Mini-supply                     2,976   2,992   2,998   3,027   3,102
Standby safety                  7,694   6,933   6,733   6,559   6,537
Utility                             -   1,752   1,774   1,792   1,767

Offshore Marine Vessels -
 Utilization:
  Anchor handling towing
supply -
  Domestic                       68.2%   56.2%   65.9%   66.8%   67.9%
  Foreign                        61.5%   72.8%   81.9%   81.2%   88.9%
Supply -
  Domestic                       71.7%   50.5%   72.7%   58.4%   62.5%
  Foreign                        73.4%   86.1%   88.7%   93.9%   95.7%
Towing -
  Domestic                       56.7%  100.0%  100.0%   97.1%   94.3%
  Foreign                        67.4%   75.0%   82.7%   88.2%   82.0%
Crew                             82.8%   78.5%   75.9%   79.9%   78.9%
 Geophysical, freight and
  other                             -       -       -       -       -
Mini-supply                      81.7%   86.3%   91.6%   89.4%   86.8%
Standby safety                   87.0%   90.3%   89.9%   89.5%   81.6%
Utility                             -    52.4%   58.7%   56.7%   55.1%

   Overall utilization           78.6%   75.1%   77.5%   77.8%   76.2%

Inland Barge Days(1)           44,929  44,219  37,648  25,571  23,063

Helicopter Flight Hours         5,750   5,422   5,131   5,889   5,061

(1) Excludes barges managed by and joint ventured with the Company.


                 SEACOR Holdings Inc. and Subsidiaries
                          Supplementary Data
                              (unaudited)




                                      March 31, 2004
                  ----------------------------------------------------
                                              Joint         Pooled/  
                     Owned    Leased-in       Ventured      Managed
                                                  
                  ----------------------------------------------------
Offshore Marine
 Fleet Count:

 Domestic -
  Anchor handling towing
  supply                   1       2              1               -
  Crew                    29      23              1               -
  Geophysical,
  freight and  other       -       -              -               -
      Mini-supply         23       4              -               -
      Standby safety       -       -              -               -
      Supply               4       3              2               1
      Towing               -       2              -               -
      Utility              -       -              -               -
                  ----------------------------------------------------
                          57      34              4               1
                  ----------------------------------------------------

  Foreign -
  Anchor handling
  towing supply           13       -              2               -
  Crew                    22      -              11               -
  Geophysical,
  freight and other        1       -              1               -
  Mini-supply              3       -              2               -
  Standby safety          19       -              3               5
  Supply                   8       2              5               -
  Towing                  13       -             22               -
  Utility                  -       -              -               -
                  ----------------------------------------------------
                          79       2             46               5
                  ----------------------------------------------------

Worldwide -
 Anchor handling
 towing supply            14       2              3               -
 Crew                     51      23             12               -
 Geophysical,
 freight and
 other                     1       -              1               -
Mini-supply               26       4              2               -
Standby
safety                    19       -              3               5
 Supply                   12       5              7               1
 Towing                   13       2             22               -
 Utility                   -       -              -               -
                  ----------------------------------------------------
                         136      36             50               6
                  ====================================================

Inland Barges,
 domestic                382     180              6             224
                  ====================================================

Helicopters,
 domestic                 23      18              -               1
                  ====================================================



                  --------------------------------
                            Dec.        Sep.        Jun.       Mar.
                             31,         30,         30        31
                    Total   2003        2003        2003      2003
                  ----------------------------------------------------
Offshore Marine
 Fleet Count:

Domestic -
Anchor handling
towing supply          4        6           5          5          5
Crew                  53       53          57         60         62
Geophysical,
freight and
other                  -        1           1          1          1
Mini-supply           27       27          28         28         29
Standby safety         -        -           -          -          -
Supply                10       11          13         13         17
Towing                 2        -           -          -          -
Utility                -        -          34         37         38
                  ----------------------------------------------------
                      96       98         138        144        152
                  ----------------------------------------------------

Foreign -
Anchor handling
towing supply         15       20          21         20         21
Crew                  33       34          33         32         30
Geophysical,
 freight and
 other                 2        3           1          1          1
Mini-supply            5        5           4          4          3
Standby safety        27       27          26         26         26
Supply                15       48          54         53         52
Towing                35        -           -          -          -
Utility                -        -           2          3          3
                  ----------------------------------------------------
                     132      137         141        139        136
                  ----------------------------------------------------

Worldwide -
Anchor handling
towing supply         19       26          26         25         26
Crew                  86       87          90         92         92
Geophysical,
 freight and
 other                 2        4           2          2          2
Mini-supply           32       32          32         32         32
Standby safety        27       27          26         26         26
Supply                25       59          67         66         69
Towing                37        -           -          -          -
Utility                -        -          36         40         41
                  ----------------------------------------------------
                     228      235         279        283        288
                  ====================================================

Inland Barges,
 domestic            792      784         735        559        562
                  ====================================================

Helicopters,
 domestic             42       40          36         36         36
                  ====================================================

 

Contacts

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