SEACOR SMIT Announces Fourth Quarter Results

HOUSTON--(BUSINESS WIRE)--Feb. 26, 2004--SEACOR SMIT Inc. (NYSE:CKH) announced a net loss for the fourth quarter ended December 31, 2003 of $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 fourth quarter ended December 31, 2002, net earnings were $1.6 million, or $0.08 per diluted share, on operating revenues of $99.7 million. For the twelve months ended December 31, 2002, net earnings were $46.6 million, or $2.28 per diluted share, on operating revenues of $403.2 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.

Financial results for the fourth quarter ended December 31, 2003 as compared to the immediately preceding quarter ended September 30, 2003 were impacted by a variety of factors highlighted below.

-- Decreased operating revenues. Operating revenues of $101.0 million decreased $2.3 million. Offshore marine services' revenue declined $6.7 million primarily due to net fleet reductions and lower fleet utilization. Environmental services' revenue, before the impact of a fourth quarter acquisition of a business which provides land based and offshore remediation and other services on the West Coast, declined $3.7 million primarily due to the completion of a major project begun in a prior period. These declines were partially offset by (i) a $3.5 million increase in inland river revenues resulting from fleet growth and higher freight rates and (ii) $4.8 million in additional revenues earned by the environmental services business acquired during the fourth quarter.

-- Increased operating and administrative expenses. Operating and administrative expenses of $95.0 million increased $9.1 million. Expenses incurred by the environmental services division increased $3.5 million primarily due to the business acquired during the fourth quarter. This increase was only partially offset by the non-recurrence of expenses associated with the major project that was mostly executed in prior periods. Offshore marine services' expenses increased $2.5 million due to severance costs related to fleet dispositions and administrative staff reductions. Expenses for performing inland river services increased $1.8 million primarily due to fleet growth. Offshore aviation's expenses increased $0.7 million resulting from the preparation for the introduction of four new helicopters to be deployed in the Gulf of Mexico.

-- Increased income from equipment sales. Income from equipment sales of $9.6 million increased by $7.3 million primarily due to the sale of offshore vessels during the fourth quarter.

-- Increased derivative transaction losses. Derivative transaction losses of $1.5 million increased by $1.1 million primarily due to the termination of credit swaps related to the Company's 7.2% Senior Notes and the mark-to-market accounting on commodity futures.

-- Increased results from other, net. Other income of $4.5 million increased $3.8 million primarily due to foreign currency accounting gains associated with the strengthening of the British pound sterling against the U.S. dollar, partially offset by lower security sale gains.

-- Increased income tax expense. The increase in the fourth quarter's effective tax rate is primarily due to a $1.9 million valuation allowance provided for foreign tax credits that may expire before utilization and a $0.5 million tax impact from non-deductible expenses.

-- Increased equity losses. Equity losses of $0.1 million, as compared to the preceding quarter's operating income of $0.9 million, represented a change of $1.0 million primarily due to lower results realized on offshore marine and marine telecommunication joint ventures, partially offset by the non-recurrence of a $1.0 million third quarter charge against earnings for U.S. income taxes on dividends received from a foreign joint venture.

The Company's offshore marine fleet declined from 279 vessels at the end of the prior quarter to 235 at December 31, 2003. During the fourth quarter, the Company sold 30 vessels with a carrying value of $29.6 million, 1 of which was leased-back and 1 of which was sold to a joint venture, and took delivery of 2 newly constructed crew vessels. In addition, the Company terminated leases on 3 vessels, transferred one vessel to the environmental services segment, and removed 14 vessels from service. Additional fleet information is described in the attached supplementary operational data schedule.

During the fourth quarter, the Company decided to divest of all utility vessels from its marine fleet. As of December 31, 2003, the carrying value of the remaining 26 utility vessels was $1.8 million. For the current quarter and full year the utility boat fleet incurred operating losses of $0.2 million and $1.1 million, respectively, before overhead associated with operating these vessels.

On October 31, 2003, the Company acquired an environmental services business that provides emergency response, site remediation, industrial and marine contract cleaning, salvage support, hazardous waste management services, and environmental equipment and product sales to both the private and public sectors on the West Coast of the United States. During the fourth quarter, this business contributed operating revenues of $4.8 million and an operating loss of $0.1 million to the consolidated group.

The Company's inland river hopper barge fleet grew from 735 units at the end of the prior quarter to 784 units at December 31, 2003 due to the acquisition of 37 new barges, the lease-in of 10 barges, and the taking over management of 2 barges during the current quarter.

The Company's offshore aviation helicopter fleet grew from 36 units at the end of the prior quarter to 40 units at December 31, 2003 due to the acquisition of 4 helicopters during the current quarter.

The aggregate cost of all offshore vessels, barges and helicopters delivered during the fourth quarter was $37.8 million.

The Company's future capital commitments to purchase 9 newly constructed offshore support vessels, 330 newly constructed inland river hopper barges, 24 newly constructed chemical tank barges, and 6 newly constructed helicopters approximates $164.0 million as of February 25, 2004. Deliveries of the newly constructed vessels, barges and helicopters are expected over the next ten months.

During the fourth quarter, the Company acquired a total of 181,676 shares of its common stock for treasury at an aggregate cost of $7.1 million. As of December 31, 2003, the Company's cash, marketable securities and construction reserve funds totaled $438.1 million, an increase of $9.8 million as compared to September 30, 2003. As of December 31, 2003, the Company's long-term debt totaled $332.2 million, unchanged as compared to September 30, 2003.

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" as described in the Private Securities Litigation Reform Act of 1995. Statements herein that describe the Company'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: general economic and business conditions, the cyclical nature of our business, adequacy of insurance coverage, currency exchange fluctuations, changes in foreign political, military and economic conditions, the ongoing need to replace aging vessels, 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, regulatory initiatives, customer preferences, marine-related risks, effects of adverse weather conditions and seasonality on the Company's offshore aviation business, helicopter related risks, effects of adverse weather and river conditions and seasonality on inland river operations, the level of grain export volume, variability in freight rates for inland river barges 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 included in this release speak only as of the date of this release and SEACOR disclaims 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 SMIT Inc. and Subsidiaries
            Condensed Consolidated Statements of Operations
             (in thousands, except share data, unaudited)

                            Three Months Ended     Twelve Months Ended
                               December 31,           December 31,
                          ---------------------   --------------------
                             2003        2002       2003      2002
                          ---------    ---------  --------- ----------
Operating Revenues       $ 100,956    $ 99,708   $ 406,209  $ 403,158
                         ----------   ---------- ---------- ----------
Costs and Expenses:
 Operating expenses         78,504      67,306     287,290    249,892
 Administrative and 
  general                   16,538      14,668      57,684     53,265
 Depreciation and
  amortization              13,751      13,991      55,506     56,244
                         ----------   ---------- ---------- ----------
                           108,793      95,965     400,480    359,401
                         ----------   ---------- ---------- ----------
Operating Income (Loss)     (7,837)      3,743       5,729     43,757
                         ----------   ---------- ---------- ----------
Other Income (Expense):
 Interest on debt           (4,785)     (5,764)    (19,313)   (17,064)
 Interest income             1,565       2,821       7,531      8,833
 Debt extinguishments            -           -      (2,091)    (2,338)
 Income from equipment
  sales or retirements,
  net                        9,612       3,077      17,522      8,635
 Gain from Chiles Merger         -           -           -     19,719
 Gain (loss) from derivative
  transactions, net         (1,541)     (2,424)      2,389     (5,043)
 Gain from foreign currency
  transactions, net          3,625         827       3,739      6,281
 Gain from sale of marketable
  securities, net              743         518       6,595      3,218
 Other, net                    106         141        (652)       144
                         ----------   ---------- ---------- ----------
                             9,325        (804)     15,720     22,385
                         ----------   ---------- ---------- ----------
Income Before Taxes,
 Minority Interest and
 Equity Earnings             1,488       2,939      21,449     66,142
Income Tax Expense           3,067       1,266      10,396     23,034
                         ----------   ---------- ---------- ----------
Income (Loss) Before
 Minority Interest and
 Equity Earnings            (1,579)      1,673      11,053     43,108
Minority Interest in Income 
 of Subsidiaries               (66)        (32)       (517)      (226)
Equity in Earnings (Losses)
 of 50% or Less Owned 
 Companies                     (85)         (3)      1,418      3,705
                         ----------   ---------  ---------- ----------
Net Income (Loss)        $  (1,730)   $  1,638   $  11,954   $ 46,587
                         ==========   =========  ==========  =========

Basic Earnings (Loss) 
 Per Common Share        $   (0.09)   $   0.08   $    0.63   $   2.33
                         ==========   =========  ==========  =========

Diluted Earnings (Loss)
 Per Common Share        $   (0.09)(1)  $ 0.08(2)   $ 0.63   $   2.28
                         ============= ==========  =======   =========

Weighted Average
 Common Shares:
  Basic             18,509,438    19,823,095    19,012,899  19,997,625
  Diluted           18,509,438(1) 20,032,229(2) 19,279,568  21,057,877

(1) Outstanding stock options and restricted stock has been excluded
from the computation of diluted earnings per share in the three month
period ended December 31, 2003 as the effect was antidilutive. In this
same period, such shares were also excluded from the calculation of
diluted weighted average common shares outstanding.

(2) The assumed conversion of the Company's convertible notes into
shares of common stock has been excluded from the computation of
diluted earnings per share in the three month period ended December
31, 2002 as the effect was antidilutive. In this same period, such
shares were also excluded from the calculation of diluted weighted
average common shares outstanding.

                   SEACOR SMIT Inc. and Subsidiaries
                     Supplementary Financial Data
             (in thousands, except share data, unaudited)


                                   Dec. 31,      Sep. 30,    Jun. 30,
Statements of                        2003         2003         2003
 Operations:                     ------------ ----------- -----------

 Operating Revenues               $ 100,956     $ 103,234  $  105,159
                                 ------------ ----------- -----------

 Cost and Expenses:

     Operating expenses              78,504        72,264      69,422

     Administrative and general      16,538        13,676      13,391

     Depreciation and amortization   13,751        13,411      13,708
                                 ------------ ----------- -----------

                                    108,793        99,351      96,521
                                 ------------ ----------- -----------

 Operating Income (Loss)             (7,837)        3,883       8,638

 Net Interest  Expense               (3,220)       (3,063)     (2,549)

 Debt Extinguishment                      -             -        (966)

 Income from  Equipment Sales, net    9,612         2,349         414

 Derivative Transactions, net        (1,541)         (443)      2,624

 Other, net                           4,474           682       1,797
                                ------------   ----------- -----------

 Income Before Taxes, Minority
  Interest and Equity Earnings        1,488         3,408       9,958

  Income Tax Expense                  3,067         1,334       3,596
                                 ------------ ----------- -----------

 Income(Loss) Before
  Minority Interest and
  Equity Earnings                    (1,579)        2,074       6,362

  Minority Interest                     (66)         (112)       (241)

  Equity Earnings
   (Losses)                             (85)          935         322
                                ------------   -----------   ---------

  Net Income (Loss)            $     (1,730)   $    2,897   $   6,443 
                                ============  =========== ===========


Weighted Average
 Common Shares:
 Basic                           18,509,438    18,629,664  19,155,421
 Diluted                         18,509,438(3) 18,785,256  19,315,817


Diluted Earnings Per
 Common Share                      $  (0.09)(3)    $ 0.15   $    0.33


Balance Sheet:

Cash, Marketable Securities and
   Construction Reserve Funds     $ 438,131    $  428,372   $ 431,796

    Total Assets                  1,402,611     1,370,630   1,379,700

    Total Long-term Debt            332,179       332,213     332,187

    Stockholders' Equity            770,446       768,530     772,563

                                   Mar. 31,             Dec. 31,
Statements of                        2003                 2002
 Operations:                      -----------         -------------

 Operating Revenues               $   96,860          $    99,708
                                  -----------         -------------

 Cost and Expenses:

     Operating expenses               67,100               67,306

     Administrative and general       14,079               14,668

     Depreciation and amortization    14,636               13,991
                                  -----------         ------------
                                      95,815               95,965
                                  -----------         ------------

 Operating Income (Loss)               1,045                3,743

 Net Interest Expense                 (2,950)              (2,943)

 Debt Extinguishment                  (1,125)                   -

 Income from Equipment Sales, net      5,147                3,077

 Derivative Transactions, net          1,749               (2,424)

 Other, net                            2,729                1,486
                                  -----------         ------------

 Income Before Taxes, Minority
  Interest and Equity Earnings         6,595                2,939

  Income Tax Expense                   2,399                1,266
                                  -----------         ------------

 Income(Loss) Before Minority 
  Interest and Equity Earnings         4,196                1,673

  Minority Interest                      (98)                 (32)

  Equity Earnings (Losses)               246                   (3)
                                  -----------         ------------

  Net Income (Loss)                $   4,344           $    1,638
                                  ===========         ============


Weighted Average Common Shares:
 Basic                            19,775,194           19,823,095
 Diluted                          20,362,120           20,032,229(4)


Diluted Earnings Per Common Share    $  0.22             $   0.08(4)


Balance Sheet:

Cash, Marketable Securities and
   Construction Reserve Funds      $ 498,075            $ 525,931

    Total Assets                   1,401,710            1,487,107

    Total Long-term Debt             343,058              402,118

    Stockholders' Equity             789,971              804,951

(3) Outstanding stock options and restricted stock has been excluded
from the computation of diluted earnings per share in the three month
period ended December 31, 2003 as the effect was antidilutive. In this
same period, such shares were also excluded from the calculation of
diluted weighted average common shares outstanding.

(4) The assumed conversion of the Company's convertible notes into
shares of common stock has been excluded from the computation of
diluted earnings per share in the three month period ended December
31, 2002 as the effect was antidilutive. In this same period, such
shares were also excluded from the calculation of diluted weighted
average common shares outstanding.

                   SEACOR SMIT Inc. and Subsidiaries
                    Supplementary Operational Data
                              (unaudited)

                                                  
                      Dec. 31,  Sep. 30,  Jun. 30,  Mar. 31,  Dec. 31,
                       2003       2003     2003      2003      2002
                       ----       -----    -----     ----      ----

Marine Fleet Rates
 Per Day Worked ($)(5):

 Anchor Handling
  Towing Supply -
  Domestic              22,111    20,095    16,712    17,668   22,196

 Anchor Handling
  Towing Supply -
  Foreign                9,212     9,927    10,593    10,110   11,073

 Crew                    3,323     3,257     3,153     3,158    3,148

 Geophysical, Freight
  and Other(6)               -         -         -         -        -

 Mini-Supply             2,992     2,998     3,027     3,102    2,983

 Standby Safety          6,933     6,733     6,559     6,537    6,288

 Supply and Towing
  Supply - Domestic      6,082     6,068     6,184     6,815    6,865

 Supply and Towing
  Supply - Foreign       7,779     8,077     8,285     8,216    8,535

 Utility                 1,752     1,774     1,792     1,767    1,762

Marine Fleet
 Utilization (%)(5) :

 Anchor Handling
  Towing Supply -
  Domestic                56.2      65.9      66.8      67.9     78.1

 Anchor Handling
  Towing Supply -
  Foreign                 72.8      81.9      81.2      88.9     71.4

 Crew                     78.5      75.9      79.9      78.9     78.3

 Geophysical, Freight
  and Other(6)               -         -         -         -        -

 Mini-Supply              86.3      91.6      89.4      86.8     86.2

 Standby Safety           90.3      89.9      89.5      81.6     88.5

 Supply and Towing
  Supply - Domestic       59.4      77.2      66.1      68.7     89.1

 Supply and Towing
  Supply - Foreign        80.5      85.5      90.8      87.9     83.4

 Utility                  52.4      58.7      56.7      55.1     58.0

   Overall Offshore
    Marine Fleet          75.1      77.5      77.8      76.2     76.8

Marine Fleet at
 Period End(5) :

Anchor Handling
 Towing Supply -
 Domestic                    6         5         5         5        5

Anchor Handling
 Towing Supply -
 Foreign                    20        21        20        21       23

Crew                        87        90        92        92       96

Geophysical, Freight
 and Other                   4         2         2         2        2

Mini-Supply                 32        32        32        32       33

Standby Safety              27        26        26        26       26

Supply and Towing
 Supply - Domestic          11        13        13        17       18

Supply and Towing
 Supply - Foreign           48        54        53        52       53

Utility                      -        36        40        41       45
                      --------- --------- --------- --------- --------

  Total Offshore
   Marine Fleet            235       279       283       288      301
                      ========= ========= ========= ========= ========


Inland Barge Fleet at
 Period End                784       735       559       562      535


Helicopter Fleet at
 Period End                 40        36        36        36       36


Helicopter Flight                                               
 Hours                   5,422     5,131     5,889     5,061     n.a.

(5) Statistics exclude vessels retired from service in the
applicable periods - 26 utility vessels at December 31, 2003.

(6) Vessels in this class were out of service during all reported
periods.

                   SEACOR SMIT Inc. and Subsidiaries
                    Supplementary Operational Data
                              (unaudited)

                                      As of December 31, 2003
                           -------------------------------------------
                               Owned          Leased-in       Subtotal
                           -------------------------------------------

Offshore Marine Fleet
   Anchor Handling Towing
    Supply:
 Domestic                          3                  2             5
 Foreign                          15                  -            15
                                ----              -----          ----
                                  18                  2            20
                                ----              -----          ----
 Crew:
 Domestic                         29                 23            52
 Foreign                          22                  -            22
                                ----              -----          ----
                                  51                 23            74
                                ----              -----          ----
  Geophysical, Freight and Other:
 Domestic                          1                  -             1
 Foreign                           1                  -             1
                                ----              -----          ----
                                   2                  -             2
                                ----              -----          ----
 Mini-Supply:
 Domestic                         23                  4            27
 Foreign                           3                  -             3
                                ----              -----          ----
                                  26                  4            30
                                ----              -----          ----
 Standby Safety:
 Domestic                          -                  -             -
 Foreign                          19                  -            19
                                ----              -----          ----
                                  19                  -            19
                                ----              -----          ----
   Supply and Towing Supply:
 Domestic                          3                  5             8
 Foreign                          20                  2            22
                                ----              -----          ----
                                  23                  7            30
                                ----              -----          ----
 Utility:
 Domestic                          -                  -             -
 Foreign                           -                  -             -
                                ----              -----          ----
                                   -                  -             -
                                ----              -----          ----
 Worldwide Fleet:
 Domestic                         59                 34            93
 Foreign                          80                  2            82
                                ----              -----          ----
                                 139                 36           175
                                ====              =====          ==== 

Inland Barge Fleet
     Domestic:                   369                176           545
                                ====              =====          ====

Helicopter Fleet
     Domestic                     23                 16            39
                                ====              =====          ====

                                                               As of
                                                             September
                              As of December 31, 2003         30, 2003
                           ----------------------------    -----------
                               Joint    Pooled/
                            Ventured    Managed   Total         Total

Offshore Marine
 Fleet
   Anchor Handling Towing
   Supply:
 Domestic                          1          -       6             5
 Foreign                           5          -      20            21
                              ------      -----   ------       ------ 
                                   6          -      26            26
                              ------      -----   ------       ------ 
 Crew:
 Domestic                          1          -      53            57
 Foreign                          12          -      34            33
                              ------      -----   ------       ------ 
                                  13          -      87            90
                              ------      -----   ------       ------ 
  Geophysical, Freight
    and Other:
 Domestic                          -          -       1             1
 Foreign                           2          -       3             1
                              ------      -----   ------       ------ 
                                   2          -       4             2
                              ------      -----   ------       ------ 
 Mini-Supply:
 Domestic                          -          -      27            28
 Foreign                           2          -       5             4
                              ------      -----   ------       ------ 
                                   2          -      32            32
                              ------      -----   ------       ------ 
 Standby Safety:
 Domestic                          -          -       -             -
 Foreign                           3          5      27            26
                              ------      -----   ------       ------ 
                                   3          5      27            26
                              ------      -----   ------       ------ 
   Supply and Towing
    Supply:
 Domestic                          2          1      11            13
 Foreign                          26          -      48            54
                              ------      -----   ------       ------ 
                                  28          1      59            67
                              ------      -----   ------       ------ 
 Utility:   
 Domestic                          -          -       -            34
 Foreign                           -          -       -             2
                              ------      -----   ------       ------ 
                                   -          -       -            36
                              ------      -----   ------       ------ 
 Worldwide Fleet:
 Domestic                          4          1      98           138
 Foreign                          50          5     137           141
                              ------      -----   ------       ------ 
                                  54          6     235           279
                              ======      =====   ======       ======

Inland Barge Fleet
     Domestic:                     6        233     784           735
                              ======      =====   ======       ======

Helicopter Fleet
     Domestic                      -          1      40            36
                              ======      =====   ======       ======

 

Contacts

SEACOR SMIT Inc.
Randall Blank, 281-899-4800 or 212-307-6633
SEACOR's website: www.seacorsmit.com