SEACOR Holdings Announces Fourth Quarter Results

FORT LAUDERDALE, Fla., Feb. 27 /PRNewswire-FirstCall/ -- SEACOR Holdings Inc. announced net income for the fourth quarter ended December 31, 2005 of $106.5 million, or $3.76 per diluted share, on operating revenue of $334.1 million. For the twelve months ended December 31, 2005, net income was $170.7 million, or $6.95 per diluted share, on operating revenue of $972.0 million. 

Results for the fourth quarter ended December 31, 2005 included an income tax benefit of $6.3 million, primarily the result of a $46.2 million benefit, or $1.61 per diluted share, relating to the repatriation of foreign earnings under the provisions of the American Jobs Creation Act of 2004. 

For the fourth quarter ended December 31, 2004, net income was $19.3 million, or $1.03 per diluted share, on operating revenue of $182.0 million. For the twelve months ended December 31, 2004, net income was $19.9 million, or $1.08 per diluted share, on operating revenue of $491.9 million. 

For the immediately preceding quarter ended September 30, 2005, the Company reported net income of $20.5 million, or $0.76 per diluted share, on operating revenue of $294.9 million. 

Charles Fabrikant, Chairman of the Board, commented "I am pleased to announce our results for the fourth quarter of 2005. All of our business segments enjoyed a positive end to the year. In the fourth quarter of 2004 our businesses generated $23 million of operating income on revenue of $182 million. Today, one year later, we are reporting operating income for the final quarter of $90 million on revenue of $334 million. This represents a $67 million increase." 

Mr. Fabrikant added, "Calendar year 2005, which included the integration of our July 2005 acquisition of Seabulk International Inc. and our December 2004 acquisition of Era Aviation Inc., was a challenging and exciting year for SEACOR. Those acquisitions, coupled with continued growth in our other business segments, led to operating income for 2005 of $177 million compared to $29 million for 2004 -- a significant year-over-year increase." 

Highlights for the Quarter 

Offshore Marine Services -- Operating income(1) in the fourth quarter was $54.4 million on operating revenue of $168.8 million compared to $26.9 million on operating revenue of $146.8 million in the third quarter. Fourth quarter results included $6.6 million in gains on asset sales and impairments compared to $0.9 million in losses in the third quarter. 

Average day-rates increased in most markets but most noticeably in the Gulf of Mexico where demand for all classes of equipment was consistently strong throughout the quarter in response to increased drilling activity and continuing re-construction work following the summer hurricanes. 

Inland River Services -- Operating income in the fourth quarter was $18.0 million on operating revenue of $40.7 million compared to operating income of $8.7 million on operating revenue of $29.7 million in the third quarter, an increase of $9.3 million. 

The Company experienced strong demand and higher rates in the fourth quarter in response to hurricane related logistics and the seasonal impact of the grain harvest. 

Environmental Services -- Operating income in the fourth quarter was $10.4 million on operating revenue of $37.6 million compared to operating income of $4.6 million on operating revenue of $27.5 million in the third quarter. Approximately $6.4 million of fourth quarter operating income and $12.7 million of operating revenue were generated as a result of emergency response activities. 

Aviation Services -- Operating income in the fourth quarter was $10.2 million on operating revenue of $38.9 million compared to operating income of $5.9 million on operating income of $43.9 million in the third quarter. Fourth quarter results included $7.0 million in gains on asset sales as compared to $0.3 million of gains in the third quarter. 

The reduction in operating revenue between quarters was primarily due to seasonal affects on contract operations for Alaskan flightseeing operations andfirefighting activity in the Western United States, neither of which was active in the fourth quarter. The decrease in operating revenue from these operations was partially offset by an increase in operating revenue in the Gulf of Mexico driven by higher demand for all classes of equipment in theaftermath of the summer hurricanes. 

Operating income was also negatively impacted by a $1.6 million reserve resulting from the bankruptcy of a large customer of the Company's fixed base operations in Alaska. 

Marine Transportation Services -- Operating income in the fourth quarter was $6.4 million on operating revenue of $36.6 million compared to an operating loss of $1.3 million on operating revenue of $35.7 million in the third quarter. The improvement in operating income was primarily due to a reduction in costs and expenses in the fourth quarter. In the third quarter two vessels were dry-docked at a cost of $6.7 million. There were no dry- dockings in the fourth quarter. 

Derivative income (loss), net -- Derivative transactions, primarily consisting of interest rate swaps and foreign currency contracts, resulted in losses of $0.9 million in the fourth quarter as compared to losses of $4.4 million in the third quarter. 

Foreign Currency Translation -- Foreign currency transaction gains were $16.9 million in the fourth quarter compared to gains of $2.4 million in the third quarter. As part of the fourth quarter repatriation of foreign earnings under the American Jobs Creation Act of 2004, the Company recognized a $16.4 million foreign currency gain relating to the revaluation of certain British Pound denominated assets. Following the payment of dividends, the subsidiaries that owned these assets were deemed to be substantially liquidated and the accumulated currency translation adjustment previously reported in stockholders' equity was reclassified to foreign currency translation gains. 

Marketable Security Transactions -- Marketable security and short sale transactions resulted in gains of $3.0 million in the fourth quarter as compared to gains of $10.4 million in the third quarter. 

Capital Commitments -- The Company's unfunded capital commitments as of December 31, 2005 consisted primarily of marine service vessels, helicopters and barges and totaled $534.6 million, of which $447.6 million is payable in 2006 and 2007, with the remaining balance payable through 2009. Of these commitments, approximately $111.0 million may be terminated without further liability other than the payment of liquidated damages of $1.7 million in the aggregate. Subsequent to the end of year, the Company committed to purchase additional equipment, primarily barges, tugs and a crew boat in the aggregate amount of $51.7 million. As of December 31, 2005 the Company held balances of Cash, Restricted Cash, Securities, Construction Reserve Funds and Title XI Reserve Funds totaling $684.5 million. 

(1) See attached schedule "OPERATING INCOME BY LINE OF BUSINESS" for components of operating income. 

SEACOR is a global provider of marine support and transportation services, 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 focused on providing highly responsive local service, combined with the highest safety standards, innovative technology, modern efficient equipment, and dedicated, professional employees. 

This release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements concerning management's expectations, strategic objectives, business prospects, anticipated economic performance and financial condition and other similar matters involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of results to differ materially from any future results, performance or achievements discussed or implied by such forward-looking statements. Such risks, uncertainties and other important factors include, among others: the cyclical nature of the oil and gas industry, the operation of Offshore Marine Services and Helicopter Services in a highly competitive environment, changes in foreign political, military and economic conditions, the dependence of Offshore Marine Services and Helicopter Services on several customers, industry fleet capacity, the ongoing need to replace aging vessels, restrictions imposed by the Shipping Acts and Aviation Acts on the amount of foreign ownership of the Company's Common Stock, safety record requirements related to Offshore Marine Services and Helicopter Services, changes in foreign and domestic oil and gas exploration and production activity, vessel and helicopter-related risks of Offshore Marine Services and Helicopter Services, effects of adverse weather conditions and seasonality on Helicopter Services, 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, changes in NRC's OSRO classification, effects of adverse weather and river conditions and seasonality on inland river operations, the level of grain export volume, the effect of fuel prices on barge towing costs, variability in freight rates for inland river barges, liability in connection with providing spill response services, the effect of international economic and political factors in inland river operations, the intense competition faced by Inland River Services, adequacy of insurance coverage, currency exchange fluctuations, the attraction and retention of qualified personnel by the Company, and various other matters, many of which are beyond the Company's control and other factors. The words "estimate," "project," "intend," "believe," "plan" and similar expressions are intended to identify forward-looking statements. Forward- looking statements speak only as of the date of the document in which they are made. We disclaim any obligation or undertaking to provide any updates or revisions to any forward-looking statement to reflect any change in our expectations or any change in events, conditions or circumstances on which the forward-looking statement is based. The forward-looking statements in this release should be evaluated together with the many uncertainties that affect our businesses, particularly those mentioned under "Forward-Looking Statements" in Item 7 of our Form 10-K and SEACOR's periodic reporting on Form 10-Q and Form 8-K (if any), which we incorporate by reference. 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.
             CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
             (in thousands, except per share data, unaudited)


                               Three Months Ended    Twelve Months Ended
                                  December 31,           December 31,
                                2005       2004        2005        2004

  Operating Revenue           $334,119   $181,997    $972,004    $491,860

  Costs and Expenses:
    Operating expenses         177,012    126,240     589,928     354,163
    Administrative and
     general                    36,256     17,592     105,195      61,425
    Depreciation and
     amortization               44,405     15,365     127,714      57,834
                               257,673    159,197     822,837     473,422

  Gains on Asset Sales
   and Impairments              13,575        598      28,285      10,234

  Operating Income              90,021     23,398     177,452      28,672

  Other Income
  (Expense):
    Interest income              6,284      3,200      19,201       8,422
    Interest expense           (16,470)    (6,154)    (48,152)    (22,485)
    Derivative income
    (loss), net                   (881)     1,787      (7,074)      1,166
    Foreign currency
     transaction gains
     (losses), net              16,895      1,944      23,183       1,537
    Marketable
     securities sale
     gains (losses),
     net                         2,957      1,689      28,081       6,435
    Other, net                     176        108       1,707         539
                                 8,961      2,574      16,946      (4,386)
  Income from
   Continuing
   Operations Before
   Income Tax Expense
   (Benefit), Minority
   Interest in
   (Income) Loss of
   Subsidiaries and
   Equity In Earnings
   of 50% or Less
   Owned Companies              98,982     25,972     194,398      24,286
  Income Tax Expense
  (Benefit)                     (6,336)     8,395      29,746       8,573
  Income from
   Continuing
   Operations Before
   Minority Interest
   in (Income) Loss of
   Subsidiaries and
   Equity in Earnings
   of 50% or Less
   Owned Companies             105,318     17,577     164,652      15,713
  Minority Interest in
   (Income) Loss of
   Subsidiaries                    (71)      (289)         32        (483)
  Equity in Earnings of
   50% or Less Owned
   Companies                     1,250      2,028       5,661       4,659
  Income from
   Continuing
   Operations                  106,497     19,316     170,345      19,889
  Income from
   Discontinued
   Operations, net of
   $196 in income tax
   expense                          --         --         364          --
  Net Income                  $106,497   $ 19,316    $170,709    $ 19,889

  Basic Earnings Per
   Common Share:
    Income from
     Continuing
     Operations               $   4.28   $   1.06    $   7.89    $   1.09
    Income from
     Discontinued
     Operations                     --         --        0.02          --
    Net Income                $   4.28   $   1.06    $   7.91    $   1.09

  Diluted Earnings Per
   Common Share:
    Income from
     Continuing
     Operations               $   3.76   $   1.03    $   6.93    $   1.08
    Income from
     Discontinued
     Operations                     --         --        0.02          --
    Net Income                $   3.76   $   1.03    $   6.95    $   1.08

  Weighted Average
   Common Shares
   Outstanding:
    Basic                       24,884     18,203      21,595      18,306
    Diluted                     28,618     18,973      25,273      18,609



                           SEACOR HOLDINGS INC.
             CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
             (in thousands, except per share data, unaudited)

                                       Three Months Ended

                       Dec. 31,  Sep. 30,   Jun. 30,  Mar. 31,   Dec. 31,
                         2005      2005       2005      2005       2004


  Operating Revenue    $334,119  $294,869   $177,831  $165,185   $181,997

  Costs and
   Expenses:
    Operating
     expenses           177,012   180,136    117,179   115,601    126,240
    Administrative
     and general         36,256    31,115     19,329    18,495     17,592
    Depreciation and
     amortization        44,405    46,535     18,492    18,282     15,365
                        257,673   257,786    155,000   152,378    159,197

  Gains (Losses) on
   Asset Sales and
   Impairments           13,575      (618)     1,812    13,516        598

  Operating Income       90,021    36,465     24,643    26,323     23,398

  Other Income
  (Expense):
    Interest income       6,284     4,754      4,484     3,679      3,200
    Interest expense    (16,470)  (16,541)    (7,550)   (7,591)    (6,154)
    Derivative loss,
     net                   (881)   (4,425)      (178)   (1,590)     1,787
    Foreign currency
     transaction
     gains (losses),
     net                 16,895     2,436      4,401      (549)     1,944
    Marketable
     securities sale
     gains (losses),
     net                  2,957    10,388      8,502     6,234      1,689
    Other, net              176       891        440       200        108
                          8,961    (2,497)    10,099       383      2,574
  Income from
   Continuing
   Operations Before
   Income Tax
   Expense
   (Benefit),
   Minority Interest
   in (Income) Loss
   of Subsidiaries
   and Equity In
   Earnings of 50%
   or Less Owned
   Companies             98,982     33,968    34,742    26,706     25,972
  Income Tax Expense
   (Benefit)             (6,336)    13,894    12,448     9,740      8,395
  Income from
   Continuing
   Operations Before
   Minority Interest
   in (Income) Loss
   of Subsidiaries
   and Equity in
   Earnings of 50%
   or Less Owned
   Companies            105,318     20,074    22,294    16,966    17,577
  Minority Interest
   in (Income) Loss
   of Subsidiaries          (71)       223      (154)        3      (289)
  Equity in Earnings
   of 50% or Less
   Owned Companies        1,250        200     2,594     1,617     2,028
  Income from
   Continuing
   Operations           106,497     20,497    24,734    18,617    19,316
  Income (loss) from
   Discontinued
   Operations                --         --       390       (26)       --
  Net Income           $106,497   $ 20,497  $ 25,124  $ 18,591  $ 19,316

  Basic Earnings Per
   Common Share:
    Income from
     Continuing
     Operations        $   4.28   $   0.83   $  1.35  $   1.02  $   1.06
    Income from
     Discontinued
     Operations              --         --      0.02        --        --
    Net Income         $   4.28   $   0.83   $  1.37  $   1.02  $   1.06

  Diluted Earnings
   Per Common Share:
    Income from
     Continuing
     Operations        $   3.76   $   0.76   $  1.18  $   0.90  $   1.03
    Income from
     Discontinued
     Operations              --         --      0.02        --        --
    Net Income         $   3.76   $   0.76   $  1.20  $   0.90  $   1.03

  Weighted Average
   Common Shares
   Outstanding:
    Basic                24,884     24,789    18,349    18,249    18,203
    Diluted              28,618     28,562    21,924    21,908    18,973
  Common Shares
   Outstanding at
   Period End            24,819     25,009    18,466    18,442    18,307



                           SEACOR HOLDINGS INC.
                   OPERATING INCOME BY LINE OF BUSINESS
                        (in thousands, unaudited)

                                       Three Months Ended

                           Dec. 31, Sep. 30,   Jun. 30, Mar. 31, Dec. 31,
                             2005     2005       2005     2005     2004

  Offshore Marine Services

  Operating Revenue       $168,823  $146,842   $84,043  $80,350  $80,841
  Costs and Expenses:
    Operating expenses      85,377    82,726    50,735   52,850   51,781
    Administrative and
     general                12,809    11,290     8,241    7,501    8,494
    Depreciation and
     amortization           22,772    25,040    10,950   10,670   10,979
                           120,958   119,056    69,926   71,021   71,254

  Gains (Losses) on Asset
   Sales and Impairments     6,578      (905)    1,770   12,923      283
  Operating Income         $54,443   $26,881   $15,887  $22,252  $ 9,870

  Inland River Services
  Operating Revenue        $40,666   $29,702   $27,333  $25,530  $31,878
  Costs and Expenses:
    Operating expenses      18,498    17,203    16,880   14,772   17,034
    Administrative and
     general                   691       644       570      508      630
    Depreciation and
     amortization            3,479     3,151     2,791    2,597    2,453
                            22,668    20,998    20,241   17,877   20,117
  Gains on Asset Sales          --        --        --       11       34
  Operating Income         $17,998   $ 8,704   $ 7,092  $ 7,664  $11,795

  Environmental Services
   Operating Revenue       $37,583   $27,466   $35,635  $35,893 $ 62,824
   Costs and Expenses:
   Operating expenses       21,852    17,400    27,347   26,655   51,737
   Administrative and
   general                   4,669     4,546     4,177    3,811    2,843
   Depreciation and
   amortization                664       901       778      860      770
                            27,185    22,847    32,302   31,326   55,350
  Gains (Losses) on Asset
  Sales                        (27)      (19)       42       (3)      (1)
  Operating Income         $10,371   $ 4,600   $ 3,375  $ 4,564  $ 7,473

  Aviation Services (2)
   Operating Revenue       $38,856   $43,949   $30,949  $23,801  $ 7,188
  Costs and Expenses:
    Operating expenses      26,960    30,583    22,346   21,713    6,422
    Administrative and
     general                 4,571     3,579     1,858    2,581      637
    Depreciation and
     amortization            4,199     4,212     3,940    4,066    1,080
                            35,730    38,375    28,144   28,360    8,139
  Gains on Asset Sales       7,024       306        --      585      283
  Operating Income         $10,150   $ 5,881   $ 2,805  $(3,974) $  (668)




(2) Includes the Company's Fixed Based Operation for all periods presented that was previously included in "Other".
                           SEACOR HOLDINGS INC.
             OPERATING INCOME BY LINE OF BUSINESS (continued)
                        (in thousands, unaudited)

                                          Three Months Ended

                              Dec. 31, Sep. 30, Jun. 30, Mar. 31,  Dec. 31,
                                2005     2005     2005     2005      2004

  Marine Transportation
   Services
  Operating Revenue           $36,625  $35,723       --       --       --
  Costs and Expenses:
    Operating expenses         17,677   24,692       --       --       --
    Administrative and
     general                      874      705       --       --       --
    Depreciation and
     amortization              11,641   11,663       --       --       --
                               30,192   37,060       --       --       --

  Gains on Asset Sales             --       --       --       --       --
  Operating Income            $ 6,433  $(1,337)      --       --       --

  Towing and Harbor Services
  Operating Revenue           $11,949  $11,343       --       --       --
  Costs and Expenses:
    Operating expenses          7,043    7,673       --       --       --
    Administrative and
     general                    1,663    1,333       --       --       --
    Depreciation and
     amortization               1,303    1,226       --       --       --
                               10,009   10,232       --       --       --

  Gains on Asset Sales             --       --       --       --       --
  Operating Income            $ 1,940   $1,111       --       --       --

  Corporate and Eliminations
  Operating Revenue           $  (383)  $ (156)  $ (129)  $ (389) $  (734)
  Costs and Expenses:
    Operating expenses           (395)    (141)    (129)    (389)    (734)
    Administrative and
     general                   10,979    9,018    4,483    4,094    4,988
    Depreciation and
     amortization                 347      342       33       89       83
                               10,931    9,219    4,387    3,794    4,337

  Losses on Asset Sales            --       --       --       --       (1)
  Operating Income (Loss)    $(11,314) $(9,375) $(4,516) $(4,183) $(5,072)



                           SEACOR HOLDINGS INC.
                 SELECTED CONSOLIDATED BALANCE SHEET DATA
                        (in thousands, unaudited)


                        Dec. 31,   Sep. 30,   Jun. 30,  Mar. 31,   Dec. 31,
                          2005       2005       2005      2005       2004

  Cash, Restricted
   Cash, Securities,
   Construction
   Reserve Funds, and
   Title XI Reserve
   Funds               $ 684,521  $ 664,164  $ 533,417  $ 615,153  $ 495,387
   Receivables           260,831    267,108    200,476    164,848    193,050
   Current Assets        839,091    867,290    664,839    689,255    598,721
  Net Property and
   Equipment           1,759,393  1,784,083    934,213    845,386    925,587
  Total Assets         2,885,141  2,959,169  1,798,967  1,778,953  1,766,009
  Current Liabilities    247,906    209,396    125,114    143,697    142,486
  Total Long-term
   Debt & Capital
   Lease Obligations     977,635  1,126,431    597,467    582,416    582,367
  Stockholders'
   Equity              1,361,305  1,280,028    831,254    811,932    793,757



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