SEACOR SMIT Announces Third Quarter Results

HOUSTON--(BUSINESS WIRE)--Nov. 4, 2003--SEACOR SMIT Inc. (NYSE:CKH) announced net earnings for the third quarter ended September 30, 2003 of $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 third quarter ended September 30, 2002, net earnings were $21.3 million, or $1.02 per diluted share, on operating revenues of $102.1 million. For the nine months ended September 30, 2002, net earnings were $44.9 million, or $2.16 per diluted share, on operating revenues of $303.5 million.

For the quarter ended June 30, 2003, net earnings were $6.4 million, or $0.33 per diluted share, on operating revenues of $105.2 million.

Financial results for the third quarter ended September 30, 2003 as compared to the immediately preceding quarter were impacted, on a pre-tax basis, by a variety of factors highlighted below and described in greater detail in subsequent paragraphs and tables in this release.

-- Decreased operating revenues. Operating revenues decreased $1.9 million. Reduced fees and services provided on a major environmental project that began in the first quarter and lower demand for helicopter services decreased revenues. These declines were partially offset by higher revenues earned by barges and offshore marine vessels added to the Company's fleet.

-- Decreased operating income. Operating income decreased $4.8 million. In addition to those factors affecting revenues, operating income declined in part due to higher North Sea crew wage costs, unscheduled repair costs mostly reflecting insurance deductibles, additional expenses associated with planned overhauls and "start-up" costs associated with the charter-in of 166 additional barges.

-- Decreased debt extinguishment expense. Prior quarter results included a $1.0 million charge against income for the write-off of unamortized discount upon debt repayment.

-- Increased income from equipment sales. The sale of additional vessels in the third quarter resulted primarily in the $1.9 million increase in equipment sale income.

-- Decreased results from derivative transactions. The mark-to-market accounting of derivative transactions decreased other income by $3.1 million.

-- Other, net. Other income declined $1.1 million resulting primarily from foreign currency accounting losses, partially offset by higher security sale gains and the non-recurrence of an investment impairment charge of the prior quarter.

The Company's offshore marine fleet declined from 283 vessels at the end of the prior quarter to 279 at September 30, 2003. During the quarter, the Company sold 11 vessels, 4 of which were leased-back, and took delivery of 2 newly constructed crew vessels. Additional fleet change information is described in the attached supplementary operational data schedule.

The Company's inland river hopper barge fleet grew from 559 units at the end of the prior quarter to 735 units at September 30, 2003 primarily due to the charter-in of 166 barges in the current quarter.

Derivative results in the second and third quarters primarily related to swap agreements with respect to $41.0 million notional amount of the Company's 7.2% Senior Notes due 2009. The Company recognizes unrealized income or loss based on the fair value of such swap agreements.

Equity in earnings of 50% or less owned companies increased $0.6 million between quarters. Offshore marine and marine telecommunication joint venture earnings were higher and a newly formed offshore marine joint venture commenced operations. Third quarter results included a $1.0 million charge against equity earnings for U.S. income taxes payable on dividends received from a foreign joint venture.

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 include environmental services, inland river operations, and helicopter transportation services to the oil and gas industry, mainly in the U.S. Gulf of Mexico.

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.

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.seacorsmit.com.

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


                                                 Three Months Ended
                                                    September 30,
                                               -----------------------
                                                     2003        2002
                                               ----------- -----------
Operating Revenues                            $   103,234 $   102,137
                                               ----------- -----------
Costs and Expenses:
Operating expenses                                 72,264      64,297
Administrative and general                         13,676      13,434
Depreciation and amortization                      13,411      14,381
                                               ----------- -----------
                                                   99,351      92,112
                                               ----------- -----------
Operating Income                                    3,883      10,025
                                               ----------- -----------
Other Income (Expense):
Interest on debt                                   (4,603)     (3,503)
Interest income                                     1,540       2,043
Debt extinguishments                                    -      (2,338)
Income from equipment sales or retirements, 
 net                                                2,349       2,321
Gain from Chiles Merger                                 -      19,719
Gain (loss) from derivative transactions, net        (443)     (3,251)
Gain (loss) from foreign currency 
 transactions, net                                 (1,714)      2,203
Gain (loss) from sale of marketable 
 securities, net                                    2,411       3,377
Other, net                                            (15)          4
                                               ----------- -----------
                                                     (475)     20,575
                                               ----------- -----------
Income Before Taxes, Minority Interest and
 Equity Earnings                                    3,408      30,600
Income Tax Expense                                  1,334      10,369
                                               ----------- -----------
Income Before Minority Interest and Equity
 Earnings                                           2,074      20,231
Minority Interest in Income of Subsidiaries          (112)         (6)
Equity in Earnings of 50% or Less Owned
 Companies                                            935       1,070
                                               ----------- -----------
Net Income                                    $     2,897 $    21,295
                                               =========== ===========

Basic Earnings Per Common Share               $      0.16 $      1.06
                                               =========== ===========

Diluted Earnings Per Common Share             $      0.15 $      1.02
                                               =========== ===========

Weighted Average Common Shares:
Basic                                          18,629,664  20,051,743
Diluted                                        18,785,256  21,186,390


                                                  Nine Months Ended
                                                    September 30,
                                               -----------------------
                                                     2003        2002
                                               ----------- -----------
Operating Revenues                            $   305,253 $   303,450
                                               ----------- -----------
Costs and Expenses:
 Operating expenses                               208,786     182,586
 Administrative and general                        41,146      38,597
 Depreciation and amortization                     41,755      42,253
                                               ----------- -----------
                                                  291,687     263,436
                                               ----------- -----------
Operating Income                                   13,566      40,014
                                               ----------- -----------
Other Income (Expense):
 Interest on debt                                 (14,528)    (11,300)
 Interest income                                    5,966       6,012
 Debt extinguishments                              (2,091)     (2,338)
 Income from equipment sales or retirements,
  net                                               7,910       5,558
 Gain from Chiles Merger                                -      19,719
 Gain (loss) from derivative transactions, net      3,930      (2,619)
 Gain (loss) from foreign currency
  transactions, net                                   115       5,454
 Gain (loss) from sale of marketable
  securities, net                                   5,852       2,699
 Other, net                                          (759)          4
                                               ----------- -----------
                                                    6,395      23,189
                                               ----------- -----------
Income Before Taxes, Minority Interest and
 Equity Earnings                                   19,961      63,203
Income Tax Expense                                  7,329      21,768
                                               ----------- -----------
Income Before Minority Interest and Equity
 Earnings                                          12,632      41,435
Minority Interest in Income of Subsidiaries          (451)       (194)
Equity in Earnings of 50% or Less Owned
 Companies                                          1,503       3,708
                                               ----------- -----------
Net Income                                    $    13,684 $    44,949
                                               =========== ===========

Basic Earnings Per Common Share               $      0.71 $      2.24
                                               =========== ===========

Diluted Earnings Per Common Share             $      0.71 $      2.16
                                               =========== ===========

Weighted Average Common Shares:
 Basic                                         19,182,564  20,056,435
 Diluted                                       19,479,462  21,325,804

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

                                    Sep. 30,    Jun. 30,    Mar. 31,
Statements of Operations:              2003        2003        2003
                                   ----------- ----------- -----------
 Operating Revenues               $   103,234 $   105,159 $    96,860
                                   ----------- ----------- -----------
 Cost and Expenses:
   Operating expenses                  72,264      69,422      67,100
   Administrative and general          13,676      13,391      14,079
   Depreciation and amortization       13,411      13,708      14,636
                                   ----------- ----------- -----------
                                       99,351      96,521      95,815
                                   ----------- ----------- -----------
 Operating Income                       3,883       8,638       1,045
 Net Interest Expense                  (3,063)     (2,549)     (2,950)
 Debt Extinguishment                        -        (966)     (1,125)
 Income from Equipment Sales, net       2,349         414       5,147
 Gain from Chiles Merger                    -           -           -
 Derivative Transactions, net            (443)      2,624       1,749
 Other, net                               682       1,797       2,729
                                   ----------- ----------- -----------
 Income Before Taxes, Minority
   Interest and Equity Earnings         3,408       9,958       6,595
 Income Tax Expense                     1,334       3,596       2,399
                                   ----------- ----------- -----------
 Income Before Minority Interest
  and
   Equity Earnings                      2,074       6,362       4,196
 Minority Interest                       (112)       (241)        (98)
 Equity Earnings                          935         322         246
                                   ----------- ----------- -----------
 Net Income                       $     2,897 $     6,443 $     4,344
                                   =========== =========== ===========

Weighted Average Common Shares:
 Basic                             18,629,664  19,155,421  19,775,194
 Diluted                           18,785,256  19,315,817  20,362,120

Diluted Earnings Per Common Share $      0.15 $      0.33 $      0.22

Balance Sheet:
 Cash, Marketable Securities and
   Construction Reserve Funds     $   428,372 $   431,796 $   498,075
 Total Assets                       1,370,630   1,379,700   1,401,710
 Total Long-term Debt                 332,213     332,187     343,058
 Stockholders' Equity                 768,530     772,563     789,971

Marine Fleet Rates Per Day Worked
 ($)(2):
 Anchor Handling Towing Supply         12,650      12,258      11,963
 Crew                                   3,257       3,153       3,158
 Geophysical, Freight and Other(3)          -           -           -
 Mini-Supply                            2,998       3,027       3,102
 Standby Safety                         6,733       6,559       6,537
 Supply and Towing Supply               7,470       7,648       7,712
 Utility                                1,774       1,792       1,767
Marine Fleet Utilization (%)(2) :
 Anchor Handling Towing Supply           76.9        76.7        82.6
 Crew                                    75.9        79.9        78.9
 Geophysical, Freight and Other(3)          -           -           -
 Mini-Supply                             91.6        89.4        86.8
 Standby Safety                          89.9        89.5        81.6
 Supply and Towing Supply                82.8        81.6        79.9
 Utility                                 58.7        56.7        55.1
   Overall Offshore Marine Fleet         77.5        77.8        76.2
Marine Fleet at Period End(2) :
Anchor Handling Towing Supply              26          25          26
Crew                                       90          92          92
Geophysical, Freight and Other              2           2           2
Mini-Supply                                32          32          32
Standby Safety                             26          26          26
Supply and Towing Supply                   67          66          69
Utility                                    36          40          41
                                   ----------- ----------- -----------
  Total Offshore Marine Fleet             279         283         288
                                   =========== =========== ===========

Inland Barge Fleet at Period End          735         559         562

Helicopter Fleet at Period End             36          36          36

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


                                               Dec. 31,     Sep. 30,
Statements of Operations:                        2002          2002
                                             ------------- -----------
 Operating Revenues                         $      99,708 $   102,137
                                             ------------- -----------
 Cost and Expenses:
   Operating expenses                              67,306      64,297
   Administrative and general                      14,668      13,434
   Depreciation and amortization                   13,991      14,381
                                             ------------- -----------
                                                   95,965      92,112
                                             ------------- -----------
 Operating Income                                   3,743      10,025
 Net Interest Expense                              (2,943)     (1,460)
 Debt Extinguishment                                    -      (2,338)
 Income from Equipment Sales, net                   3,077       2,321
 Gain from Chiles Merger                                -      19,719
 Derivative Transactions, net                      (2,424)     (3,251)
 Other, net                                         1,486       5,584
                                             ------------- -----------
 Income Before Taxes, Minority
   Interest and Equity Earnings                     2,939      30,600
 Income Tax Expense                                 1,266      10,369
                                             ------------- -----------
 Income Before Minority Interest and
   Equity Earnings                                  1,673      20,231
 Minority Interest                                    (32)         (6)
 Equity Earnings                                       (3)      1,070
                                             ------------- -----------
 Net Income                                 $       1,638 $    21,295
                                             ============= ===========

Weighted Average Common Shares:
 Basic                                         19,823,095  20,051,743
 Diluted                                     20,032,229(1) 21,186,390

Diluted Earnings Per Common Share           $      0.08(1)$      1.02

Balance Sheet:
 Cash, Marketable Securities and
   Construction Reserve Funds               $     525,931 $   536,950
 Total Assets                                   1,487,107   1,467,396
 Total Long-term Debt                             402,118     401,347
 Stockholders' Equity                             804,951     804,227

Marine Fleet Rates Per Day Worked ($)(2):
 Anchor Handling Towing Supply                     14,109      13,144
 Crew                                               3,148       3,200
 Geophysical, Freight and Other(3)                      -           -
 Mini-Supply                                        2,983       2,918
 Standby Safety                                     6,288       6,268
 Supply and Towing Supply                           7,834       8,153
 Utility                                            1,762       1,761
Marine Fleet Utilization (%)(2) :
 Anchor Handling Towing Supply                       73.1        72.9
 Crew                                                78.3        76.3
 Geophysical, Freight and Other(3)                      -           -
 Mini-Supply                                         86.2        90.0
 Standby Safety                                      88.5        88.2
 Supply and Towing Supply                            85.7        88.9
 Utility                                             58.0        62.4
   Overall Offshore Marine Fleet                     76.8        77.7
Marine Fleet at Period End(2) :
Anchor Handling Towing Supply                          28          30
Crew                                                   96          95
Geophysical, Freight and Other                          2           2
Mini-Supply                                            33          28
Standby Safety                                         26          28
Supply and Towing Supply                               71          69
Utility                                                45          48
                                             ------------- -----------
  Total Offshore Marine Fleet                         301         300
                                             ============= ===========

Inland Barge Fleet at Period End                      535         482

Helicopter Fleet at Period End                         36    n.a.

Helicopter Flight Hours                         n.a.         n.a.

(1) 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.

(2) Statistics exclude vessels retired from service in the applicable
    periods - 12 utility vessels at September 30, 2003.

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

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

                                                                 
                                                                   As 
                                                                   of 
                                                                  June
                             As of September 30, 2003              30,
                                           Joint    Pooled/       2003
                   Owned Leased- Subtotal Ventured Managed Total Total
                             in
                     ------------------------------------------- -----

Offshore Marine
 Fleet
   Anchor Handling Towing
    Supply:
 Domestic               3     2        5        -       -     5     5
 Foreign               15     -       15        6       -    21    20
                     ----- ----- -------- -------- ------- ----- -----
                       18     2       20        6       -    26    25
                     ----- ----- -------- -------- ------- ----- -----
 Crew:
 Domestic              33    23       56        1       -    57    60
 Foreign               21     -       21       12       -    33    32
                     ----- ----- -------- -------- ------- ----- -----
                       54    23       77       13       -    90    92
                     ----- ----- -------- -------- ------- ----- -----
   Geophysical, Freight
    and Other:
 Domestic               1     -        1        -       -     1     1
 Foreign                -     -        -        1       -     1     1
                     ----- ----- -------- -------- ------- ----- -----
                        1     -        1        1       -     2     2
                     ----- ----- -------- -------- ------- ----- -----
 Mini-Supply:
 Domestic              25     3       28        -       -    28    28
 Foreign                2     -        2        2       -     4     4
                     ----- ----- -------- -------- ------- ----- -----
                       27     3       30        2       -    32    32
                     ----- ----- -------- -------- ------- ----- -----
 Standby Safety:
 Domestic               -     -        -        -       -     -     -
 Foreign               18     -       18        3       5    26    26
                     ----- ----- -------- -------- ------- ----- -----
                       18     -       18        3       5    26    26
                     ----- ----- -------- -------- ------- ----- -----
 Supply and Towing
  Supply:
 Domestic               3     7       10        2       1    13    13
 Foreign               26     3       29       25       -    54    53
                     ----- ----- -------- -------- ------- ----- -----
                       29    10       39       27       1    67    66
                     ----- ----- -------- -------- ------- ----- -----
 Utility:
 Domestic              34     -       34        -       -    34    37
 Foreign                1     -        1        1       -     2     3
                     ----- ----- -------- -------- ------- ----- -----
                       35     -       35        1       -    36    40
                     ----- ----- -------- -------- ------- ----- -----
 Worldwide Fleet:
 Domestic              99    35      134        3       1   138   144
 Foreign               83     3       86       50       5   141   139
                     ----- ----- -------- -------- ------- ----- -----
                      182    38      220       53       6   279   283
                     ===== ===== ======== ======== ======= ===== =====

Inland Barge Fleet
     Domestic:        332   166      498        6     231   735   559
                     ===== ===== ======== ======== ======= ===== =====

Helicopter Fleet
     Domestic          19    16       35        -       1    36    36
                     ===== ===== ======== ======== ======= ===== =====

 

Contacts

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