SEACOR Holdings Announces Third Quarter Results

FORT LAUDERDALE, Fla., Nov. 9 /PRNewswire-FirstCall/ -- SEACOR Holdings Inc. announced net earnings for the third quarter ended September 30, 2005 of $20.5 million, or $0.76 per diluted share, on operating revenues of $294.9 million. For the nine months ended September 30, 2005, net earnings were $64.2 million, or $2.81 per diluted share, on operating revenues of $637.9 million. 

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For the third quarter ended September 30, 2004, net earnings were $3.4 million, or $0.18 per diluted share, on operating revenues of $116.5 million. For the nine months ended September 30, 2004, net earnings were $0.6 million, or $0.03 per diluted share, on operating revenues of $309.9 million. 

For the previous quarter ended June 30, 2005, the Company reported net earnings of $25.1 million, or $1.20 per diluted share, on operating revenues of $177.8 million. 

Impact of the Seabulk Acquisition -- The third quarter included, for the first time, the result of Seabulk International, Inc. ("Seabulk"), a company acquired by SEACOR on July 1, 2005. Seabulk's operating revenues for the quarter totaled $97.9 million compared to $96.7 million in the previous quarter (prior to its acquisition by SEACOR). Seabulk's business segments produced operating results consistent with Seabulk's second quarter. 

The Seabulk acquisition was accounted for as a purchase under current accounting guidelines, which required that the Seabulk assets and liabilities were subject to fair valuation on the date of acquisition. The preliminary fair value of Seabulk's vessels resulted in an increase in their book value of $385.7 million, which coupled with SEACOR's policy regarding asset useful lives, resulted in additional depreciation expense of $16.4 million over Seabulk's previous quarter. 

During the third quarter, Seabulk's result was impacted by a derivative loss of $4.1 million, related to an interest rate swap. Consistent with SEACOR's accounting treatment of other derivative instruments, changes in fair value are reflected in the statement of operations. Prior to its acquisition, Seabulk had designated this swap as a hedge. 

Seabulk's result for the quarter, including the additional depreciation expense and the derivative impact, was a net loss of $6.9 million or $0.24 per diluted share. 

Pre-existing SEACOR Business Segments -- Excluding Seabulk's result, net income from pre-existing SEACOR business segments was $27.4 million on operating revenues of $197.0 million, compared to $25.1 million on operating revenues of $177.8 million in the previous quarter. The improvement in results was primarily attributed to revenue increases and improved operating margins. 

Revenue increases were mainly due to higher demand for all classes of equipment in Offshore Marine Services and Helicopter Services. Business activity in the third quarter was generally brisk due to increased drilling in the Gulf of Mexico and damage assessment and re-construction of offshore installations following Hurricanes Katrina and Rita. Environmental Services also experienced increased demand due to remediation work required to address the aftermath of Hurricanes Katrina and Rita. Inland River Services' activity levels were slightly reduced due to closing the port of New Orleans and logistics disruptions associated with hurricanes and low water in the river system. Improvements in freight rates compensated for reduction in loadings and cargo. 

Offshore Marine Services recorded a $4.4 million charge relating to a funding deficit in a UK multi-company pension fund in which the company is deemed to be a participating employer. Offshore Marine Services was also affected by hurricane damage to certain Gulf Coast facilities of its logistics business resulting in a write-off of certain tangible assets and a goodwill impairment charge totaling $1.6 million. In all other respects, costs and expenses generally increased in response to the higher levels of business activity. 

Excluding Seabulk's result, operating income for the quarter was $32.3 million, an increase of $7.7 million over the previous quarter. Operating income improved in Offshore Marine Services, Helicopter Services and Inland River Services in response to the improvements in revenues. Environmental Services achieved improved operating income despite an overall reduction in spill activity. 

Excluding Seabulk's result, foreign currency transaction gains for the current quarter were $2.4 million, compared to gains of $4.4 million in the previous quarter. Marketable securities transactions resulted in net gains of $10.4 million, compared to gains of $8.5 million in the previous quarter. 

SEACOR recognized an impairment charge of $2.7 million, net of tax, with respect to one of its equity investments. 

Capital Commitments -- As of November 9, 2005, capital commitments in respect of all classes of assets aggregated $563.8 million. 

Quarterly Report Filing -- SEACOR was unable to file its Quarterly Report on Form 10-Q for the quarter ended September 30, 2005 on today's due date without unreasonable effort and expense due to damage caused by Hurricane Wilma. SEACOR's principal accounting functions are based in Ft.Lauderdale, Florida. From October 24, 2005 through November 1, 2005, due to damage caused by Hurricane Wilma, its Ft. Lauderdale office was effectively closed, with no water, limited generator power, limited fuel and limited access by office personnel, delaying SEACOR's ability to compile the required information and complete the preparation of its Quarterly Report on Form 10-Q for the quarter ended September 30, 2005. SEACOR expects to file its Form 10-Q on Monday, November 14, 2005 within the five day extension period allowed by Securities and Exchange Commission Rule 12b-25. 

SEACOR is a global provider of marine support and transportation service, primarily to the energy and chemical industries. SEACOR and its subsidiaries provide customers with a full suite of marine-related services including offshore services, U.S. coastwise shipping, inland river services, helicopter services, environmental services, and offshore and harbor towing services. SEACOR is uniquely focused on providing highly responsive local service, combined with the highest safety standards, innovative technology, modern efficient equipment, and dedicated, professional employees. 

For additional information, contact Timothy McKeand, Vice President, at (954) 524-4200 ext. 820 or visit SEACOR's website at http://www.seacorholdings.com/ .

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


                                     Three Months Ended  Nine Months Ended
                                        September 30,       September 30,
                                       2005      2004      2005      2004

  Operating Revenues                 $294,869  $116,486  $637,885  $309,863
  Costs and Expenses:
     Operating expenses               180,136    79,134   412,916   227,923
     Administrative and general        31,115    14,900    68,939    43,833
     Depreciation and amortization     46,535    14,352    83,309    42,469
                                      257,786   108,386   565,164   314,225
  Gains (Losses) on Asset Sales and
   Impairments                           (618)     (119)   14,710     9,636
  Operating Income                     36,465     7,981    87,431     5,274
  Other Income (Expense):
     Interest income                    4,754     2,180    12,917     5,222
     Interest expense                 (16,541)   (5,565)  (31,682)  (16,331)
     Derivative loss, net              (4,425)     (140)   (6,193)     (621)
     Foreign currency transaction
      gains (losses), net               2,436      (184)    6,288      (407)
     Marketable securities sale
      gains (losses), net              10,388      (756)   25,124     4,746
     Other, net                           891        79     1,531       431
                                       (2,497)   (4,386)    7,985    (6,960)
  Income (Loss) Before Income Tax
   Expense, Minority Interest in
   (Income) Loss of Subsidiaries
   and Equity in Earnings of 50%
   or Less Owned Companies             33,968     3,595    95,416    (1,686)
  Income Tax Expense                   13,894     1,511    36,082       178
  Income (Loss) Before Minority
   Interest in (Income) Loss of
   Subsidiaries and Equity in
   Earnings of 50% or Less
   Owned Companies                     20,074     2,084    59,334    (1,864)
  Minority Interest in (Income) Loss
   of Subsidiaries                        223      (108)      103      (194)
  Equity in Earnings of 50% or Less
   Owned Companies                        200     1,388     4,411     2,631
  Income From Continuing Operations    20,497     3,364    63,848       573
  Income from Discontinued
   Operations, net of tax                  --        --       364        --
  Net Income                          $20,497    $3,364   $64,212      $573

  Basic Earnings Per Common Share:
     Income from Continuing
      Operations                        $0.83     $0.18     $3.12     $0.03
     Income from Discontinued
      Operations                           --        --      0.01        --
     Net Income                         $0.83     $0.18     $3.13     $0.03
  Diluted Earnings Per Common Share:
     Income from Continuing
      Operations                        $0.76     $0.18     $2.79     $0.03
     Income from Discontinued
      Operations                           --        --      0.02        --
     Net Income                         $0.76     $0.18     $2.81     $0.03
  Weighted Average Common Shares
   Outstanding:
  Basic                                24,789    18,211    20,486    18,341
  Diluted                              28,562    18,357    24,151    18,496







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


                                         Three Months Ended
                           Sep. 30,  Jun. 30,  Mar. 31,  Dec. 31,  Sep. 30,
                             2005      2005      2005      2004      2004

      Operating Revenues   $294,869  $177,831  $165,185  $181,997  $116,486
      Cost and Expenses:
         Operating
          expenses          180,136   117,179   115,601   126,240    79,134
         Administrative
          and general        31,115    19,329    18,495    17,592    14,900
         Depreciation and
          amortization       46,535    18,492    18,282    15,365    14,352
                            257,786   155,000   152,378   159,197   108,386
      Gains (Losses) on
       Asset Sales and
       Impairments             (618)    1,812    13,516       598      (119)
      Operating Income       36,465    24,643    26,323    23,398     7,981
      Other Income
       (Expense):
         Interest income      4,754     4,484     3,679     3,200     2,180
         Interest expense   (16,541)   (7,550)   (7,591)   (6,154)   (5,565)
         Derivative income
          (loss), net        (4,425)     (178)   (1,590)    1,787      (140)
         Foreign currency
          transaction
          gains (losses),
          net                 2,436     4,401      (549)    1,944      (184)
         Marketable
          securities sale
          gains (losses),
          net                10,388     8,502     6,234     1,689      (756)
         Other, net             891       440       200       108        79
                             (2,497)   10,099       383     2,574    (4,386)
      Income Before Income
       Tax Expense,
       Minority Interest
       in (Income) Loss of
       Subsidiaries and
       Equity in Earnings
       of 50% or Less
       Owned Companies       33,968    34,742    26,706    25,972     3,595
      Income Tax Expense     13,894    12,448     9,740     8,395     1,511
      Income Before
       Minority Interest
       in (Income) Loss of
       Subsidiaries and
       Equity in Earnings
       of 50% or Less
       Owned Companies       20,074    22,294    16,966    17,577     2,084
      Minority Interest in
       (Income) Loss of
       Subsidiaries             223      (154)       34      (289)     (108)
      Equity in Earnings
       of 50% or Less
       Owned Companies          200     2,594     1,617     2,028     1,388
      Income from
       Continuing
       Operations            20,497    24,734    18,617    19,316     3,364
      Income (Loss) from
       Discontinued
       Operations, net of
       tax                       --       390       (26)       --        --
      Net Income            $20,497   $25,124   $18,591   $19,316    $3,364
     Basic Earnings Per
      Common Share:
        Income from
         Continuing
         Operations           $0.83     $1.35     $1.02     $1.06     $0.18
        Income (Loss) from
         Discontinued
         Operations              --      0.02        --        --        --
        Net Income            $0.83     $1.37     $1.02     $1.06     $0.18
     Diluted Earnings Per
      Common Share:
        Income from
         Continuing
         Operations           $0.76     $1.18     $0.90     $1.03     $0.18
        Income (Loss) from
         Discontinued
         Operations              --      0.02        --        --        --
        Net Income            $0.76     $1.20     $0.90     $1.03     $0.18
    Weighted Average
     Common Shares
     Outstanding:
      Basic                  24,789    18,349    18,249    18,203    18,211
      Diluted                28,562    21,924    21,908    18,973    18,357
    Common Shares
     Outstanding at Period
     End                     25,009    18,466    18,442    18,307    18,292




                            SEACOR Holdings Inc.
                        Supplemental Financial Data
                         (in thousands, unaudited)


                                                Three Months Ended
                                           Sep. 30,    Jun. 30,    Mar. 31,
                                            2005        2005        2005
  Selected Balance Sheet Data, at period
   end:
     Cash, Securities and Construction
      Reserve Funds                      $  650,805  $  533,417   $ 615,153
     Total Assets                         2,959,169   1,798,967   1,778,953
     Total Long-term Debt & Capital
      Lease Obligations                   1,126,431     597,467     582,416
     Stockholders' Equity                 1,280,028     831,254     811,932

  Operating Revenues by Segment:
     Offshore Marine Services            $  146,842  $   84,043   $  80,350
     Marine Transportation Services          35,723          --          --
     Environmental Services                  27,466      35,635      35,893
     Inland River Services                   29,702      27,333      25,530
     Helicopter Services                     40,024      27,692      21,599
     Other and Intersegment Eliminations     15,112       3,128       1,813
                                         $  294,869  $  177,831   $ 165,185

  Operating Income (Loss) by Segment:
     Offshore Marine Services            $   26,881  $   15,887   $  22,252
     Marine Transportation Services          (1,337)         --          --
     Environmental Services                   4,600       3,375       4,564
     Inland River Services                    8,704       7,092       7,664
     Helicopter Services                      5,516       1,738      (4,395)
     Corporate Expenses and Other            (7,899)     (3,449)     (3,762)
                                         $   36,465  $   24,643   $  26,323



                                                   Three Months Ended
                                                Dec. 31,          Sep. 30,
                                                  2004              2004
  Selected Balance Sheet Data, at period
   end:
     Cash, Securities and Construction
      Reserve Funds                            $  495,387        $  440,091
     Total Assets                               1,766,009         1,456,536
     Total Long-term Debt & Capital
      Lease Obligations                           582,367           382,319
     Stockholders' Equity                         793,757           766,763

  Operating Revenues by Segment:
     Offshore Marine Services                  $   80,841        $   72,825
     Marine Transportation Services                    --                --
     Environmental Services                        62,824            21,144
     Inland River Services                         31,878            16,076
     Helicopter Services                            7,188             7,485
     Other and Intersegment Eliminations             (734)           (1,044)
                                               $  181,997        $  116,486

  Operating Income (Loss) by Segment:
     Offshore Marine Services                  $    9,870        $    6,360
     Marine Transportation Services                    --                --
     Environmental Services                         7,473             2,742
     Inland River Services                         11,795             3,153
     Helicopter Services                             (668)             (475)
     Corporate Expenses and Other                  (5,072)           (3,799)
                                               $   23,398        $    7,981



CONTACT: Timothy McKeand, Vice President, SEACOR, +1-954-524-4200, ext. 820