SEACOR SMIT Announces Second Quarter Results

HOUSTON--(BUSINESS WIRE)--July 24, 2003--SEACOR SMIT Inc. (NYSE:CKH) announced net earnings for the second quarter ended June 30, 2003 of $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.

In the second quarter ended June 30, 2002, SEACOR net earnings were $12.2 million, or $0.59 per diluted share, on operating revenues of $97.7 million. For the six months ended June 30, 2002, net earnings were $23.7 million, or $1.15 per diluted share, on operating revenues of $201.3 million.

Net earnings in the quarter ended March 31, 2003 were $4.3 million, or $0.22 per diluted share, on operating revenues of $96.9 million.

The financial results for the second quarter ended June 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:

-- Improved environmental service segment results. Operating revenues and profits increased $9.4 million and $5.5 million, respectively, due primarily to international oil spill response and remediation activities.

-- Improved marine service segment results. Operating profits increased $2.0 million despite a $1.6 million decline in operating revenues. Lower operating expenses from the sale of vessels and termination of certain charters and lower administrative expenses accounted for the improved results.

-- Decreased income from equipment sales. The Company sold fewer offshore vessels in the quarter, resulting in a $4.7 million decline in income from vessel sales.

-- Improved results from derivative transactions. The mark-to-market accounting of derivative transactions increased income by $0.9 million.

-- Other, net. Other income declined between quarters due to lower realized profits from the sale of securities and a decline in the value of certain investments.

The Company's offshore marine fleet declined from 288 vessels at the end of the prior quarter to 283 at June 30, 2003. During the quarter, the Company sold three vessels, one of which was acquired by a joint venture, and took delivery of one each newly constructed crew vessel, supply vessel and towing supply vessel. Four vessels chartered-in and one managed-in by the Company and an additional vessel chartered-in by a joint venture were redelivered to owners.

Operating revenues and profits of the inland river and offshore aviation business segments and the Company' equity interest in the earnings of 50% or less owned companies were generally constant between the first and second quarters of 2003.

In the second quarter of 2003, the Company repaid $11.9 million of debt, which resulted in the recognition of a pretax charge against income for the write-off of related unamortized discount of $1.0 million. In the second quarter of 2003, the Company acquired a total of 820,650 shares of its common stock for treasury at an aggregate cost of $31.0 million. At June 30, 2003, cash and cash equivalents, marketable securities and construction reserve funds totaled $431.8 million, and outstanding long-term debt was $332.2 million.

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.

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


                       Three Months Ended         Six Months Ended
                           June  30,                  June 30,
                   ------------------------- -------------------------
                       2003         2002         2003         2002
                   ------------ ------------ ------------ ------------
Operating Revenues $   105,159  $    97,670  $   202,019  $   201,313
                   ------------ ------------ ------------ ------------
Costs and
 Expenses:
 Operating
  expenses              69,422       61,133      136,522      118,289
 Administrative
  and general           13,391       12,803       27,470       25,163
 Depreciation and
  amortization          13,708       13,996       28,344       27,872
                   ------------ ------------ ------------ ------------
                        96,521       87,932      192,336      171,324
                   ------------ ------------ ------------ ------------
Operating Income         8,638        9,738        9,683       29,989
                   ------------ ------------ ------------ ------------
Other Income
 (Expense):
 Interest on debt       (4,419)      (3,796)      (9,925)      (7,797)
 Interest income         1,870        2,102        4,426        3,969
 Debt
  extinguishment          (966)           -       (2,091)           -
 Income from
  equipment sales
  or retirements,
  net                      414          938        5,561        3,237
 Derivative
  income, net            2,624        1,404        4,373          632
 Other, net              1,797        6,898        4,526        2,573
                   ------------ ------------ ------------ ------------
                         1,320        7,546        6,870        2,614
                   ------------ ------------ ------------ ------------
Income Before
 Income Taxes,
 Minority Interest
 and Equity in
 Earnings of 50%
 or Less Owned
 Companies               9,958       17,284       16,553       32,603
Income Tax Expense       3,596        6,156        5,995       11,399
                   ------------ ------------ ------------ ------------
Income Before
 Minority Interest
 and Equity in
 Earnings of
50% or Less Owned
 Companies               6,362       11,128       10,558       21,204
Minority Interest
 in Income of
 Subsidiaries             (241)         (95)        (339)        (188)
Equity in Earnings
 of 50% or Less
 Owned Companies           322        1,215          568        2,638
                   ------------ ------------ ------------ ------------
Net Income         $     6,443  $    12,248  $    10,787  $    23,654
                   ============ ============ ============ ============

Basic Earnings Per
 Common Share      $      0.34  $      0.61  $      0.55  $      1.18
                   ============ ============ ============ ============

Diluted Earnings
 Per Common Share  $      0.33  $      0.59  $      0.55  $      1.15
                   ============ ============ ============ ============

Weighted Average
 Common Shares:
 Basic              19,155,421   20,078,231   19,463,596   20,058,824
 Diluted            19,315,817   21,393,472   19,834,307   21,373,534
                   SEACOR SMIT Inc. and Subsidiaries
             Supplementary Financial and Operational Data
     (in thousands, except share and operational data, unaudited)


                               Jun. 30,     Mar. 31,     Dec. 31,
Statements of Operations:        2003         2003         2002
                             ------------ ------------ ------------
 Operating Revenues          $   105,159  $    96,860  $    99,708
                             ------------ ------------ ------------
 Cost and Expenses:
   Operating expenses             69,422       67,100       67,306
   Administrative and
    general                       13,391       14,079       14,668
   Depreciation and
    amortization                  13,708       14,636       13,991
                             ------------ ------------ ------------
                                  96,521       95,815       95,965
                             ------------ ------------ ------------
 Operating Income                  8,638        1,045        3,743
 Net Interest Expense             (2,549)      (2,950)      (2,943)
 Debt Extinguishment                (966)      (1,125)           -
 Income from Equipment
  Sales, net                         414        5,147        3,077
 Gain from Chiles Merger               -            -            -
 Derivative Income (Loss),
  net                              2,624        1,749       (2,424)
 Other, net                        1,797        2,729        1,486
                             ------------ ------------ ------------
 Income Before Income Taxes,
  Minority Interest and
  Equity Earnings                  9,958        6,595        2,939
 Income Tax Expense                3,596        2,399        1,266
                             ------------ ------------ ------------
 Income Before Minority
  Interest and
   Equity Earnings                 6,362        4,196        1,673
 Minority Interest                  (241)         (98)         (32)
 Equity Earnings                     322          246           (3)
                             ------------ ------------ ------------
 Net Income                  $     6,443  $     4,344  $     1,638
                             ============ ============ ============

Weighted Average Common
 Shares:
 Basic                        19,155,421   19,775,194   19,823,095
 Diluted                      19,315,817   20,362,120   20,032,229 (2)

Diluted Earnings Per Common
 Share                       $      0.33  $      0.22  $      0.08 (2)

 Balance Sheet:
   Cash, Marketable
    Securities and
    Construction Reserve
    Funds                    $   431,796  $   498,075  $   525,931
   Total Assets                1,380,007    1,401,710    1,487,107
   Total Long-term Debt          332,187      343,058      402,118
   Stockholders' Equity          772,563      789,971      804,951

Marine Fleet Rates Per Day
 Worked ($) (3):
 Anchor Handling Towing
  Supply                          12,258       11,963       14,109
 Crew                              3,153        3,158        3,148
 Geophysical, Freight and
  Other (4)                            -            -            -
 Mini-Supply                       3,027        3,102        2,983
 Standby Safety                    6,559        6,537        6,288
 Supply and Towing Supply          7,648        7,712        7,834
 Utility                           1,792        1,767        1,762
Marine Fleet
 Utilization (%) (3):
 Anchor Handling Towing
  Supply                            76.7         82.6         73.1
 Crew                               79.9         78.9         78.3
 Geophysical, Freight and
  Other (4)                            -            -            -
 Mini-Supply                        89.4         86.8         86.2
 Standby Safety                     89.5         81.6         88.5
 Supply and Towing Supply           81.6         79.9         85.7
 Utility                            56.7         55.1         58.0
   Overall Offshore Marine
    Fleet                           77.8         76.2         76.8
Marine Fleet at Period
 End (3):
Anchor Handling Towing
 Supply                               25           26           28
Crew                                  92           92           96
Geophysical, Freight and
 Other                                 2            2            2
Mini-Supply                           32           32           33
Standby Safety                        26           26           26
Supply and Towing Supply              66           69           71
Utility                               40           41           45
                             ------------ ------------ ------------
  Total Offshore Marine
   Fleet                             283          288          301
                             ============ ============ ============

Inland Barge Fleet at Period
 End                                 559          562          535

Helicopter Fleet at Period
 End                                  36           36           36

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



                                          Sep. 30,       Jun. 30,
Statements of Operations:                    2002           2002
                                        ------------   ------------
 Operating Revenues                     $   102,137    $    97,670
                                        ------------   ------------
 Cost and Expenses:
   Operating expenses                        64,297         61,133
   Administrative and general                13,434         12,803
   Depreciation and amortization             14,381         13,996
                                        ------------   ------------
                                             92,112         87,932
                                        ------------   ------------
 Operating Income                            10,025          9,738
 Net Interest Expense                        (1,460)        (1,694)
 Debt Extinguishment                         (2,339)(1)          -
 Income from Equipment Sales, net             2,321            938
 Gain from Chiles Merger                     19,719              -
 Derivative Income (Loss), net               (3,251)         1,404
 Other, net                                   5,584          6,898
                                        ------------   ------------
 Income Before Income Taxes, Minority
  Interest and Equity Earnings               30,599         17,284
 Income Tax Expense                          10,368          6,156
                                        ------------   ------------
 Income Before Minority Interest and
   Equity Earnings                           20,231         11,128
 Minority Interest                               (6)           (95)
 Equity Earnings                              1,070          1,215
                                        ------------   ------------
 Net Income                             $    21,295    $    12,248
                                        ============   ============

Weighted Average Common Shares:
 Basic                                   20,051,743     20,078,231
 Diluted                                 21,186,390     21,393,472

Diluted Earnings Per Common Share       $      1.02    $      0.59

 Balance Sheet:
   Cash, Marketable Securities and
    Construction Reserve Funds          $   536,950    $   260,321
   Total Assets                           1,467,396      1,293,455
   Total Long-term Debt                     401,347        257,383
   Stockholders' Equity                     804,227        784,127

Marine Fleet Rates Per Day
 Worked ($) (3):
 Anchor Handling Towing Supply               13,144         12,103
 Crew                                         3,200          3,224
 Geophysical, Freight and Other (4)               -              -
 Mini-Supply                                  2,918          2,749
 Standby Safety                               6,268          5,726
 Supply and Towing Supply                     8,153          7,964
 Utility                                      1,761          1,744
Marine Fleet Utilization (%) (3):
 Anchor Handling Towing Supply                 72.9           79.1
 Crew                                          76.3           81.8
 Geophysical, Freight and Other (4)               -              -
 Mini-Supply                                   90.0           85.9
 Standby Safety                                88.2           84.8
 Supply and Towing Supply                      88.9           89.0
 Utility                                       62.4           62.3
   Overall Offshore Marine Fleet               77.7           79.1
Marine Fleet at Period End (3):
Anchor Handling Towing Supply                    30             32
Crew                                             95             95
Geophysical, Freight and Other                    2              3
Mini-Supply                                      28             26
Standby Safety                                   28             28
Supply and Towing Supply                         69             74
Utility                                          48             48
                                        ------------   ------------
  Total Offshore Marine Fleet                   300            306
                                        ============   ============

Inland Barge Fleet at Period End                482            408

Helicopter Fleet at Period End                 n.a.           n.a.

Helicopter Flight Hours                        n.a.           n.a.

(1) A previously reported extraordinary loss from debt extinguishment
    was reclassified to operating results pursuant to FASB Statement
    145.

(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.

(3) Statistics exclude vessels retired from service in the applicable
    periods - 14 utility vessels at June 30, 2003.

(4) Vessels in this class were out of service during all reported
    periods.
                   SEACOR SMIT Inc. and Subsidiaries
                    Supplementary Operational Data
                              (unaudited)

                                                                  As
                                                                  of
                                                                 March
                                                                  31,
                           As of June 30, 2003                   2003
            --------------------------------------------------   -----
                                         Joint
             Owned   Leased-in Subtotal Ventured Managed Total   Total
            -------- --------- -------- -------- ------- -----   -----

Offshore
  Marine
  Fleet
 Anchor
   Handling
   Towing
   Supply:
  Domestic     3            2        5     -          -     5       5
  Foreign     15            -       15     5          -    20      21
            -------- --------- -------- -------- ------- -----   -----
              18            2       20     5          -    25      26
            -------- --------- -------- -------- ------- -----   -----
 Crew:
  Domestic    40           20       60     -          -    60      62
  Foreign     20            -       20    12          -    32      30
            -------- --------- -------- -------- ------- -----   -----
              60           20       80    12          -    92      92
            -------- --------- -------- -------- ------- -----   -----
 Geophysical,
   Freight
   and
   Other:
  Domestic     1            -        1     -          -     1       1
  Foreign      -            -        -     1          -     1       1
            -------- --------- -------- -------- ------- -----   -----
               1            -        1     1          -     2       2
            -------- --------- -------- -------- ------- -----   -----
 Mini-
   Supply:
  Domestic    26            2       28     -          -    28      29
  Foreign      2            -        2     2          -     4       3
            -------- --------- -------- -------- ------- -----   -----
              28            2       30     2          -    32      32
            -------- --------- -------- -------- ------- -----   -----
 Standby
   Safety:
  Domestic     -            -        -     -          -     -       -
  Foreign     20            -       20     1          5    26      26
            -------- --------- -------- -------- ------- -----   -----
              20            -       20     1          5    26      26
            -------- --------- -------- -------- ------- -----   -----
 Supply and
   Towing
   Supply:
  Domestic     6            7       13     -          -    13      17
  Foreign     24            4       28    25          -    53      52
            -------- --------- -------- -------- ------- -----   -----
              30           11       41    25          -    66      69
            -------- --------- -------- -------- ------- -----   -----
 Utility:
  Domestic    37            -       37     -          -    37      38
  Foreign      1            -        1     2          -     3       3
            -------- --------- -------- -------- ------- -----   -----
              38            -       38     2          -    40      41
            -------- --------- -------- -------- ------- -----   -----
 Worldwide
   Fleet:
  Domestic   113           31      144     -          -   144     152
  Foreign     82            4       86    48          5   139     136
            -------- --------- -------- -------- ------- -----   -----
             195 (1)       35      230    48          5   283     288
            ======== ========= ======== ======== ======= =====   =====

Inland Barge
 Fleet
  Domestic   326 (2)        -      326    11 (2)    222   559     562
            ======== ========= ======== ======== ======= =====   =====

U.S.
 Helicopter
 Fleet
  Domestic    18           17       35     -          1    36      36
            ======== ========= ======== ======== ======= =====   =====

(1) Two domestic supply, two foreign standby safety, and one crew
    vessel are majority-owned by the Company.

(2) Sixteen owned and five joint ventured barges were sold following
    June 30, 2003.

 

Contacts

SEACOR SMIT Inc.
Randall Blank, 281-899-4800 or 212-307-6633
Executive Vice President and Chief Financial Officer
www.seacorsmit.com