SEACOR Holdings Announces First Quarter Results

FORT LAUDERDALE, Fla., May 5 /PRNewswire-FirstCall/ -- SEACOR Holdings Inc. announced net income for the first quarter ended March 31, 2006 of $50.1 million, or $1.80 per diluted share, on operating revenues of $305.9 million. For the comparable quarter ended March 31, 2005, net income was $18.6 million, or $0.90 per diluted share, on operating revenues of $165.2 million. The results for the quarter ended March 31, 2005 do not include Seabulk International, Inc. which was acquired by the Company on July 1, 2005. 

For the immediately preceding quarter ended December 31, 2005, the Company reported net income of $106.5 million, or $3.76 per diluted share, on operating revenues of $334.1 million. For the quarter ended December 31, 2005, the Company's income tax benefit included a benefit of $46.2 million, or $1.61 per diluted share, relating to the repatriation of foreign earnings under the provisions of the American Job Creation Act of 2004. In addition, the results for the fourth quarter of 2005 included a foreign currency translation gain of $10.6 million, net of tax, or $0.37 per diluted share related to thedisposition of certain British Pound denominated assets. 

Highlights for the Quarter 

Offshore Marine Services -- Operating income(1) in the first quarter was $66.1 million on operating revenues of $159.9 million compared to $54.4 million on operating revenue of $168.8 million in the preceding quarter. First quarter results included $20.6 million in gains on asset sales compared to $6.6 million in gains in the preceding quarter. 

Demand for all classes of equipment remained strong throughout the quarter, particularly in the U.S. Gulf of Mexico in response to continued high levels of drilling activity and ongoing re-construction work following the hurricanes of 2005. 

Operating revenues between the quarters decreased primarily as a result of fewer available vessel days by virtue of asset dispositions and a shorter quarter. Furthermore, there was less revenue from brokered vessel activity and mobilizations. 

Overall fleet utilization was slightly lower in the first quarter at 85.3% compared to 88.0% in the preceding quarter. The reduction in revenue arising from the utilization change was offset by an improvement in average day rates from $7,705 per day to $8,006 per day. 

Marine Transportation Services -- Operating income in the first quarter was $5.1 million on operating revenues of $37.7 million compared to operating income of $6.4 million on operating revenues of $36.6 million in the preceding quarter. The increase in operating revenues was due to increaseddemurrage revenue for vessels operating under contracts of affreightment and dayrate increases for two vessels operating under term contracts. Fuel and port charges climbed in the quarter by virtue of three vessels operating on voyage charters compared to two in the fourth quarter of 2005. 

Operating income was lower than in the preceding quarter primarily due to expenditures related to one vessel which was drydocked following a grounding in Alaska. 

Inland River Services -- Operating income in the first quarter was $14.8 million on operating revenues of $34.5 million compared to operating income of $18.0 million on operating revenues of $40.7 million in the preceding quarter. The decrease was primarily the result of reduced levels of barge activity compared to the preceding quarter. 

The fourth quarter of each year is typically the strongest for Inland River Services as a result of the seasonal impact of the grain harvest. In the latter half of 2005 the Company also experienced higher rates for barge movements in response to the logistical problems caused by the hurricanes. 

In the corresponding quarter of 2005, Inland River Services reported operating income of $7.7 million on operating revenue of $25.5 million. 

Aviation Services -- Aviation Services reported an operating loss of $0.3 million for the first quarter on operating revenues of $33.5 million compared to operating income of $10.2 million on operating revenues of $38.9 million in the preceding quarter. First quarter results included $0.3 million in gains on asset sales as compared to $7.0 million of gains in the preceding quarter. 

The reduction in operating revenue between quarters was primarily due to the seasonal effect of reduced hours of daylight and thus reduced available flying time together with a reduction in activity for post-hurricane support in the U.S. Gulf of Mexico. Operating expenses were only slightly lower than the preceding quarter as the Company used the time available to invest in maintenance to ready helicopters for summer flight seeing activities in Alaska and for the generally higher levels of activity in the Gulf of Mexico during the summer months. 

In the corresponding quarter of 2005, Aviation Services reported an operating loss of $4.0 million on operating revenues of $23.8 million. 

Environmental Services -- Operating income in the first quarter was $2.3 million on operating revenues of $27.9 million compared to operating income of $10.4 million on operating revenues of $37.6 million in the preceding quarter. The decrease was primarily due to reduced response activity. Operating income from emergency response activities was $2.4 million on operating revenues of $5.3 million in the first quarter compared to operating income of $6.4 million on operating revenues of $12.7 million in the preceding quarter. In addition, margins for spill response activity were generally lower andretainer fees were reduced. 

Derivative Transactions -- Derivative transactions, primarily consisting of interest rate swaps and foreign currency contracts, resulted in losses of $2.8 million in the first quarter as compared to losses of $0.9 million in the preceding quarter. 

Foreign Currency Transactions -- Foreign currency transaction gains were $0.2 million in the first quarter compared to gains of $16.9 million in the preceding 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 recorded in stockholders' equity was reclassified to foreign currency translation gains. 

Marketable Security Transactions -- Marketable security and short sale transactions resulted in losses of $3.6 million in the first quarter as compared to gains of $3.0 million in the preceding quarter. 

Equity Earnings -- Equity in earnings of 50% or less owned companies was $6.4 million in the first quarter compared to $1.3 million in the preceding quarter. Effective March 6, 2006, the Company disposed of its interest in Maritima Mexicana S.A. de C.V., a Mexican joint venture through which it has participated in the Mexican offshore market since 1994. Equity earnings included an after-tax gain of $4.5 million in respect of the difference between the proceeds of the sale and the carrying value of the Company's equity investment. 

Weighted Average Shares Outstanding -- Weighted average diluted shares outstanding were 28,495,296 for the quarter ended March 31, 2006 compared to 21,908,283 for the quarter ended March 31, 2005. The increase was mainly due to the issuance of 6,354,642 shares as part of the acquisition of Seabulk International, Inc. on July 1, 2005. 

Capital Commitments -- The Company's unfunded capital commitments as of March 31, 2006 consisted primarily of marine service vessels, helicopters and barges and totaled $669.0 million, of which $498.0 million is payable in 2006 and 2007, with the remaining balance payable through 2009. Of these commitments, approximately $141.0 million may be terminated without further liability other than the payment of liquidated damages of $2.5 million in the aggregate. Subsequent to the end of the quarter, the Company committed to purchase additional equipment including a barge, a supply vessel and ahelicopter in the aggregate amount of $6.7 million. As of March 31, 2006 the Company held balances of Cash, Restricted Cash, Securities, Construction Reserve Funds and Title XI Reserve Funds totaling $764.6 million.

(1) See attached schedule "OPERATING INCOME (LOSS) 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 uniquely 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, activity in foreign countries and changes in foreign political, military and economic conditions, the dependence of Offshore Marine Services, Marine Transportation Services and Aviation Services on several customers, industry fleet capacity, consolidation of our customer base, 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, increased competition if the Jones Act is repealed, safety record requirements related to Offshore Marine Services and Aviation Services, changes in foreign and domestic oil and gas exploration and production activity, vessel and helicopter-related risks of Offshore Marine Services and Aviation Services, effects of adverse weather conditions and seasonality on Aviation Services, decreased demand for our tanker and towing services due to construction of additional refined petroleum product, natural gas or crude oil pipelines or due to decreased demand for refined petroleum products, crude oil or chemical products or a change in existing methods of delivery, future phase-out of our single-hull tankers, 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, liability in connection with providing spill response services, 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, the effect of international economic and political factors in inland river operations, the intense competition faced by Inland River Services, adequacy of insurance coverage, compliance with government regulation, including environmental laws and regulations, currency exchange fluctuations, the attraction and retention of qualified personnel by the Company, our integration of the internal controls and procedures of Seabulk International, Inc. to continue our compliance with the Sarbanes-Oxley Act of 2002 and various other matters, many of which are beyond the Company's control and other factors. In addition, these statements constitute our cautionary statements under the Private Securities Litigation Reform Act of 1995. You should understand that it is not possible to predict or identify all such factors. Consequently, you should not consider the following to be a complete discussion of all potential risks or uncertainties. 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 INCOME
             (in thousands, except per share data, unaudited)

                                                    Three Months Ended
                                                         March 31,
                                                   2006           2005

  Operating Revenues                              $305,915       $165,185

  Costs and Expenses:
    Operating expenses                             169,644        115,601
    Administrative and general                      31,493         18,495
    Depreciation and amortization                   43,260         18,282
                                                   244,397        152,378

  Gains on Asset Sales                              20,877         13,516

  Operating Income                                  82,395         26,323

  Other Income (Expense):
    Interest income                                  7,136          3,679
    Interest expense                               (14,068)        (7,591)
    Derivative loss, net                            (2,812)        (1,590)
    Foreign currency transaction gains
     (losses), net                                     159           (549)
    Marketable securities sale gains
     (losses), net                                  (3,585)         6,234
    Other, net                                          28            200
                                                   (13,142)           383

  Income from Continuing Operations Before
   Income Tax Expense, Minority Interest in
   (Income) Loss of Subsidiaries and Equity
   In Earnings of 50% or Less Owned Companies       69,253         26,706
  Income Tax Expense                                25,431          9,740
  Income from Continuing Operations Before
   Minority Interest in (Income) Loss of
   Subsidiaries and Equity in Earnings of 50%
   or Less Owned Companies                          43,822         16,966
  Minority Interest in (Income) Loss of
   Subsidiaries                                        (83)            34
  Equity in Earnings of 50% or Less Owned
   Companies                                         6,369          1,617
  Income from Continuing Operations                 50,108         18,617
  Loss from Discontinued Operations                      -            (26)
  Net Income                                       $50,108        $18,591

  Basic Earnings Per Common Share:
    Income from Continuing Operations                $2.02          $1.02
    Loss from Discontinued Operations                    -              -
    Net Income                                       $2.02          $1.02

  Diluted Earnings Per Common Share:
    Income from Continuing Operations                $1.80          $0.90
    Loss from Discontinued Operations                    -              -
    Net Income                                       $1.80          $0.90

  Weighted Average Common Shares Outstanding:
    Basic                                           24,767         18,249
    Diluted                                         28,495         21,908



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

                                         Three Months Ended
                           Mar. 31,  Dec. 31,  Sep. 30,  Jun. 30,  Mar. 31,
                            2006      2005      2005      2005      2005

  Operating Revenues      $305,915  $334,119  $294,869  $177,831  $165,185

  Costs and Expenses:
    Operating expenses     169,644   177,012   180,136   117,179   115,601
    Administrative and
     general                31,493    36,256    31,115    19,329    18,495
    Depreciation and
     amortization           43,260    44,405    46,535    18,492    18,282
                           244,397   257,673   257,786   155,000   152,378

  Gains (Losses) on Asset
   Sales and Impairments,
   Net                      20,877    13,575      (618)    1,812    13,516

  Operating Income          82,395    90,021    36,465    24,643    26,323

  Other Income (Expense):
    Interest income          7,136     6,284     4,754     4,484     3,679
    Interest expense       (14,068)  (16,470)  (16,541)   (7,550)   (7,591)
    Derivative loss, net    (2,812)     (881)   (4,425)     (178)   (1,590)
    Foreign currency
     transaction gains
     (losses), net             159    16,895     2,436     4,401      (549)
    Marketable securities
     sale gains (losses),
     net                    (3,585)    2,957    10,388     8,502     6,234
    Other, net                  28       176       891       440       200
                           (13,142)    8,961    (2,497)   10,099       383

  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     69,253    98,982    33,968    34,742    26,706
  Income Tax Expense
   (Benefit)                25,431    (6,336)   13,894    12,448     9,740
  Income from Continuing
   Operations Before
   Minority Interest in
   (Income) Loss of
   Subsidiaries and Equity
   in Earnings of 50% or
   Less Owned Companies     43,822   105,318    20,074    22,294    16,966
  Minority Interest in
   (Income) Loss of
   Subsidiaries                (83)      (71)      223      (154)       34
  Equity in Earnings of
   50% or Less Owned
   Companies                 6,369     1,250       200     2,594     1,617
  Income from Continuing
   Operations               50,108   106,497    20,497    24,734    18,617
  Income (loss) from
   Discontinued Operations      -         -         -        390       (26)
  Net Income               $50,108  $106,497   $20,497   $25,124   $18,591

  Basic Earnings Per Common
   Share:
    Income from Continuing
     Operations              $2.02     $4.28     $0.83     $1.35     $1.02
    Income (loss) from
     Discontinued
     Operations                 -         -         -       0.02        -
    Net Income               $2.02     $4.28     $0.83     $1.37     $1.02

  Diluted Earnings Per
   Common Share:
    Income from Continuing
     Operations              $1.80     $3.76     $0.76     $1.18     $0.90
    Income (loss) from
     Discontinued
     Operations                 -         -         -       0.02        -
    Net Income               $1.80     $3.76     $0.76     $1.20     $0.90

  Weighted Average Common
   Shares Outstanding:
    Basic                   24,767    24,884    24,789    18,349    18,249
    Diluted                 28,495    28,618    28,562    21,924    21,908
  Common Shares Outstanding
   at Period End            25,076    24,819    25,009    18,466    18,442



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

                                         Three Months Ended
                          Mar. 31,  Dec. 31,  Sep. 30,  Jun. 30,  Mar. 31,
                            2006      2005      2005      2005      2005

  Offshore Marine
   Services
  Operating Revenues      $159,852  $168,823  $146,842   $84,043   $80,350
  Costs and Expenses:
    Operating expenses      79,506    85,377    82,726    50,735    52,850

  Administrative and
   general                  11,688    12,809    11,290     8,241     7,501
  Depreciation and
   amortization             23,127    22,772    25,040    10,950    10,670
                           114,321   120,958   119,056    69,926    71,021

  Gains (Losses) on Asset
   Sales and Impairments,
   Net                      20,552     6,578      (905)    1,770    12,923
  Operating Income         $66,083   $54,443   $26,881   $15,887   $22,252

  Marine Transportation
   Services
  Operating Revenues       $37,724   $36,625   $35,723        -         -
  Costs and Expenses:
    Operating expenses      21,471    17,677    24,692        -         -
    Administrative and
     general                   964       874       705        -         -
    Depreciation and
     amortization           10,185    11,641    11,663        -         -
                            32,620    30,192    37,060        -         -

  Gains on Asset Sales          -         -         -         -         -
  Operating Income (Loss)   $5,104    $6,433   $(1,337)       -         -

  Inland River Services
  Operating Revenues       $34,488   $40,666   $29,702   $27,333   $25,530
  Costs and Expenses:
    Operating expenses      15,395    18,498    17,203    16,880    14,772
    Administrative and
     general                   816       691       644       570       508
    Depreciation and
     amortization            3,474     3,479     3,151     2,791     2,597
                            19,685    22,668    20,998    20,241    17,877

  Gains on Asset Sales          -         -         -         -         11
  Operating Income         $14,803   $17,998    $8,704    $7,092    $7,664

  Aviation Services
  Operating Revenues       $33,454   $38,856   $43,949   $30,949   $23,801
  Costs and Expenses:
    Operating expenses      26,345    26,960    30,583    22,346    21,713
    Administrative
     and general             3,494     4,571     3,579     1,858     2,581
    Depreciation and
     amortization            4,254     4,199     4,212     3,940     4,066
                            34,093    35,730    38,374    28,144    28,360

  Gains on Asset Sales         325     7,024       306        -        585
  Operating Income (Loss)    $(314)  $10,150    $5,881    $2,805   $(3,974)

  Environmental Services
  Operating Revenues       $27,923   $37,583   $27,466   $35,635   $35,893
  Costs and Expenses:
    Operating expenses      20,508    21,852    17,400    27,347    26,655
    Administrative and
     general                 4,405     4,669     4,546     4,177     3,811
    Depreciation and
     amortization              733       664       901       778       860
                            25,646    27,185    22,847    32,302    31,326

  Gains (Losses) on
   Asset Sales                  -        (27)      (19)       42        (3)
  Operating Income          $2,277   $10,371    $4,600    $3,375    $4,564



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

                                         Three Months Ended
                           Mar. 31,  Dec. 31,  Sep. 30,  Jun. 30,  Mar. 31,
                             2006      2005      2005      2005      2005


  Harbor and Offshore
  Towing Services
  Operating Revenues       $12,884   $11,949   $11,343       -        -
  Costs and Expenses:
   Operating expenses        6,841     7,043     7,673       -        -
   Administrative and
    general                  1,604     1,663     1,333       -        -
   Depreciation and
    amortization             1,259     1,303     1,226       -        -
                             9,704    10,009    10,232       -        -

  Gains on Asset Sales           -         -         -       -        -
  Operating Income          $3,180    $1,940    $1,111       -        -

  Corporate and Eliminations
  Operating Revenues         $(410)    $(383)    $(156)  $(129)   $(389)
  Costs and Expenses:
   Operating expenses         (422)     (395)     (141)   (129)    (389)
   Administrative and
    general                  8,522    10,979     9,018   4,483    4,094
   Depreciation and
    amortization               228       347       342      33       89
                             8,328    10,931     9,219   4,387    3,794

  Gains on Asset Sales           -         -         -       -        -
  Operating Loss           $(8,738) $(11,314)  $(9,375)$(4,516) $(4,183)



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

                           Mar. 31,  Dec. 31,  Sep. 30,  Jun. 30,  Mar. 31,
                             2006      2005      2005      2005      2005


  Cash, Restricted Cash,
  Securities,
  Construction Reserve
  Funds, and Title
  XI Reserve Funds        $764,649   $684,521  $664,164  $533,417  $615,153
  Receivables              270,794    260,831   267,108   200,476   164,848
  Current Assets           900,488    839,091   867,290   664,839   689,255
  Net Property and
   Equipment             1,733,757  1,759,393 1,784,083   934,213   845,386
  Total Assets           2,961,627  2,885,141 2,959,169 1,798,967 1,778,953
  Current Liabilities      280,279    247,906   209,396   125,114   143,697
  Total Long-term Debt
   & Capital Lease
   Obligations             964,096    977,635 1,126,431   597,467   582,416
  Stockholders' Equity   1,418,190  1,361,305 1,280,028   831,254   811,932



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