SEACOR Holdings Announces Second Quarter Results

FORT LAUDERDALE, Fla., July 26 /PRNewswire-FirstCall/ -- SEACOR Holdings Inc. announced net income for the second quarter ended June 30, 2006 of $62.8 million, or $2.24 per diluted share, on operating revenues of $331.0 million. For the six months ended June 30, 2006, net income was $112.9 million, or $4.04 per diluted share, on operating revenues of $636.9 million. 

For the second quarter ended June 30, 2005, net income was $25.1 million, or $1.20 per diluted share, on operating revenues of $177.8 million. For the six months ended June 30, 2005, net income was $43.7 million, or $2.11 per diluted share, on operating revenues of $343.0 million. The results for the three and six months ended June 30, 2005 do not include Seabulk International, Inc. which was acquired by the Company on July 1, 2005. 

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For the immediately preceding quarter ended March 31, 2006, the Company reported net income of $50.1 million, or $1.80 per diluted share, on operating revenues of $305.9 million. 

Highlights for the Quarter 

Offshore Marine Services -- Operating income(1) in the second quarter was $70.8 million on operating revenues of $168.3 million compared to operating income of $66.1 million on operating revenues of $159.9 million in the preceding quarter. Second quarter results included $22.5 million in gains on asset dispositions compared to $20.6 million in gains in the preceding quarter. 

Overall fleet utilization was higher in the second quarter at 86.8% compared to 85.3% in the preceding quarter. In the second quarter the number of days available for charter was lower by 1,114 days, or 4.9% primarily as a result of a reduction in the overall fleet count following asset dispositions. 

The improvement in operating revenues was primarily driven by an 8.1% improvement in average day rates from $8,006 per day to $8,658 per day. The most significant improvements were in the Gulf of Mexico and West Africa, where average day rates increased by 12.6% and 8.1%, respectively. 

Operating expenses in the second quarter were $86.7 million, an increase of $7.2 million over the preceding quarter. Of this increase, approximately $3.1 million was related to the cost of chartering-in third party vessels for brokered vessel activity and procuring additional labor to provide cargo handling services. The majority of these charges was offset by additional revenues and thus had minimal impact on operating margins. Other increases related to higher dry-dock and repair expenditures and higher wage rates in response to a competitive labor market for seafarers in all regions. 

Marine Transportation Services -- Operating income in the second quarter was $8.2 million on operating revenues of $37.4 million compared to operating income of $5.1 million on operating revenues of $37.7 million in the preceding quarter. 

The increase in operating income was primarily due to lower operating expenses. Fuel and port charges were lower in the second quarter as only two vessels operated on voyage charters compared to three in the preceding quarter. There were no dry-dock related costs in the current quarter. 

Inland River Services -- Operating income in the second quarter was $13.6 million on operating revenues of $36.3 million compared to operating income of $14.8 million on operating revenues of $34.5 million in the preceding quarter. 

The improvement in operating revenues was primarily due to additions to the owned fleet of dry hopper and tank barges and favorable operating conditions on the river system through most of the quarter. Operating expenses were higher in the second quarter primarily due to increased towing costs and vendor service charges. These increases were caused by higher fuel and labor costs as well as seasonal operating patterns that resulted in more loadings on the upper Mississippi and thus longer barge voyages. 

Aviation Services -- Operating income in the second quarter was $3.8 million on operating revenues of $39.9 million compared to an operating loss of $0.3 million on operating revenues of $33.5 million in the preceding quarter. 

The improvement was primarily due to the resumption of seasonal flight- seeing activity in Alaska, an increase in the amount of lease revenue and the impact of additional equipment to support higher levels of activity in the Gulf of Mexico. Second quarter results included $1.8 million in gains on asset dispositions compared to $0.3 million in gains in the preceding quarter. 

Environmental Services -- Operating income in the second quarter was $4.5 million on operating revenues of $36.9 million compared to operating income of $2.3 million on operating revenues of $27.9 million in the preceding quarter. 

The improvement in operating income was primarily due to higher revenues from retainer services contracts and an increase in spill response activity. 

Derivative Transactions -- Derivative transactions, primarily consisting of interest rate swaps and foreign currency contracts, resulted in gains of $3.1 million in the second quarter as compared to losses of $2.8 million in the preceding quarter. 

Foreign Currency Transactions -- Foreign currency transaction gains were $1.2 million in the second quarter compared to gains of $0.2 million in the preceding quarter. 

Marketable Security Transactions -- Marketable security and short sale transactions resulted in losses of $3.3 million in the second quarter as compared to losses of $3.6 million in the preceding quarter. 

Equity in Earnings of 50% or Less owned Companies -- Earnings were $6.0 million in the second quarter compared to $6.4 million in the preceding quarter. In the second quarter one of the Company's offshore marine joint ventures sold a vessel to a third party and the Company's share of the gain on the sale was $4.2 million. In the preceding quarter the Company disposed of its interest in a joint venture in Mexico and realized a gain of $4.5 million. 

Weighted Average Shares Outstanding -- Weighted average diluted shares outstanding were 28,568,267 for the quarter ended June 30, 2006 compared to 21,923,636 for the quarter ended June 30, 2005. The increase was mainly due to the issuance of 6,354,642 shares as part of the acquisition of Seabulk International, Inc. 

Capital Commitments -- The Company's unfunded capital commitments as of June 30, 2006 consisted primarily of marine service vessels, helicopters and barges and totaled $631.7 million, of which $429.7 million is payable in 2006 and 2007, with the remaining balance payable through 2009. Subsequent to the end of the quarter the Company committed to purchase additional equipment for $22.6 million. Of these commitments, approximately $187.8 million may be terminated without further liability other than the payment of liquidated damages of $4.9 million in the aggregate. As of June 30, 2006 the Company held balances of Cash, Cash Equivalents, Restricted Cash, Securities, Construction Reserve Funds and Title XI Reserve Funds totaling $803.4 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    Six Months Ended
                                      June 30,             June 30,
                                    2006      2005       2006        2005

  Operating Revenues            $330,986  $177,831   $636,901    $343,016

  Costs and Expenses:
    Operating expenses           187,149   117,179    356,793     232,780
    Administrative and general    32,865    19,329     64,358      37,824
    Depreciation and amortization 42,318    18,492     85,578      36,774
                                 262,332   155,000    506,729     307,378

  Gains on Asset Dispositions     24,089     1,812     44,966      15,328

  Operating Income                92,743    24,643    175,138      50,966

  Other Income (Expense):
    Interest income                9,086     4,484     16,222       8,163
    Interest expense             (12,847)   (7,550)   (26,915)    (15,141)
    Derivative transaction gains
     (losses), net                 3,084      (178)       272      (1,768)
    Foreign currency transaction
     gains, net                    1,217     4,401      1,376       3,852
    Marketable security
     transaction gains (losses),
     net                          (3,341)    8,502     (6,926)     14,736
    Other, net                       595       440        623         640
                                  (2,206)   10,099    (15,348)     10,482
  Income from Continuing
   Operations Before Income
   Tax Expense, Minority Interest
   in Income of
   Subsidiaries and Equity In
   Earnings of 50% or Less
   Owned Companies                90,537    34,742    159,790      61,448
  Income Tax Expense              33,703    12,448     59,134      22,188
  Income from Continuing
   Operations Before Minority
   Interest in Income of
   Subsidiaries and Equity in
   Earnings of 50% or Less Owned
   Companies                      56,834    22,294    100,656      39,260
  Minority Interest in Income of
   Subsidiaries                     (104)     (154)      (187)       (120)
  Equity in Earnings of 50% or
   Less Owned Companies            6,031     2,594     12,400       4,211
  Income from Continuing
   Operations                     62,761    24,734    112,869      43,351
  Income from Discontinued
   Operations, Net of Tax              -       390          -         364
  Net Income                     $62,761   $25,124   $112,869     $43,715

  Basic Earnings Per Common
   Share:
    Income from Continuing
     Operations                    $2.52     $1.35      $4.55       $2.37
    Income from Discontinued
     Operations                        -      0.02          -        0.02
    Net Income                     $2.52     $1.37      $4.55       $2.39

  Diluted Earnings Per Common
   Share:
    Income from Continuing
     Operations                    $2.24     $1.18      $4.04       $2.09
    Income from Discontinued
     Operations                        -      0.02          -        0.02
    Net Income                     $2.24     $1.20      $4.04       $2.11

  Weighted Average Common Shares
   Outstanding:
    Basic                         24,869    18,349     24,828      18,299
    Diluted                       28,568    21,924     28,542      21,916



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

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

  Operating Revenues   $330,986  $305,915   $334,119  $294,869   $177,831

  Costs and Expenses:
    Operating expenses  187,149   169,644    177,012   180,136    117,179
    Administrative and
     general             32,865    31,493     36,256    31,115     19,329
    Depreciation and
     amortization        42,318    43,260     44,405    46,535     18,492
                        262,332   244,397    257,673   257,786    155,000

  Gains (Losses) on
   Asset Dispositions
   and Impairments, Net  24,089    20,877     13,575      (618)     1,812

  Operating Income       92,743    82,395     90,021    36,465     24,643

  Other Income
   (Expense):
    Interest income       9,086     7,136      6,284     4,754      4,484
    Interest expense    (12,847)  (14,068)   (16,470)  (16,541)    (7,550)
    Derivative
     transaction gains
     (losses), net        3,084    (2,812)      (881)   (4,425)      (178)
    Foreign currency
     transaction gains,
     net                  1,217       159     16,895     2,436      4,401
    Marketable security
     transaction gains
     (losses), net       (3,341)   (3,585)     2,957    10,388      8,502
  Other, net                595        28        176       891        440
                         (2,206)  (13,142)     8,961    (2,497)    10,099
  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       90,537    69,253     98,982    33,968     34,742
  Income Tax Expense
   (Benefit)             33,703    25,431     (6,336)   13,894     12,448
  Income from
   Continuing
   Operations
   Before Minority
   Interest in
   (Income)
   Loss of Subsidiaries
   and Equity in
   Earnings of 50% or
   Less Owned
   Companies             56,834    43,822    105,318    20,074     22,294
  Minority Interest in
   (Income) Loss of
   Subsidiaries            (104)      (83)       (71)      223       (154)
  Equity in Earnings
   of 50% or Less
   Owned Companies        6,031     6,369      1,250       200      2,594
  Income from
   Continuing
   Operations            62,761    50,108    106,497    20,497     24,734
  Income from
   Discontinued
   Operations,
   Net of Tax                 -         -          -         -        390

  Net Income            $62,761   $50,108   $106,497   $20,497    $25,124

  Basic Earnings Per
   Common Share:
    Income from
     Continuing
     Operations           $2.52     $2.02      $4.28     $0.83      $1.35
    Income from
     Discontinued
     Operations               -         -          -         -       0.02
    Net Income            $2.52     $2.02      $4.28     $0.83      $1.37

  Diluted Earnings Per
   Common Share:
    Income from
     Continuing
     Operations           $2.24     $1.80      $3.76     $0.76      $1.18
    Income from
     Discontinued
     Operations               -         -          -         -       0.02
    Net Income            $2.24     $1.80      $3.76     $0.76      $1.20

  Weighted Average
   Common Shares
   Outstanding:
    Basic                24,869    24,767     24,884    24,789     18,349
    Diluted              28,568    28,495     28,618    28,562     21,924
  Common Shares
   Outstanding at
   Period End            24,801    25,076     24,819    25,009     18,466



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

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

  Offshore Marine Services
  Operating Revenues      $168,285  $159,852  $168,823 $146,842   $84,043
  Costs and Expenses:
    Operating expenses      86,695    79,506    85,377   82,726    50,735
    Administrative
     and general            11,470    11,688    12,809   11,290     8,241
    Depreciation and
     amortization           21,793    23,127    22,772   25,040    10,950
                           119,958   114,321   120,958  119,056    69,926

  Gains on Asset
   Dispositions and
   Impairments, Net         22,489    20,552     6,578     (905)    1,770
  Operating Income         $70,816   $66,083   $54,443  $26,881   $15,887

  Marine Transportation
   Services
  Operating Revenues       $37,446   $37,724   $36,625  $35,723         -
  Costs and Expenses:
    Operating expenses      18,064    21,471    17,677   24,692         -
    Administrative
     and general             1,049       964       874      705         -
    Depreciation
     and amortization       10,162    10,185    11,641   11,663         -
                            29,275    32,620    30,192   37,060         -

  Gains on Asset Dispositions    -         -         -        -         -
  Operating Income (Loss)   $8,171    $5,104    $6,433  $(1,337)        -

  Inland River Services
  Operating Revenues       $36,339   $34,488   $40,666  $29,702   $27,333
  Costs and Expenses:
    Operating expenses      18,649    15,395    18,498   17,203    16,880
    Administrative
     and general               829       816       691      644       570
    Depreciation
     and amortization        3,267     3,474     3,479    3,151     2,791
                            22,745    19,685    22,668   20,998    20,241

  Gains on Asset Dispositions    -         -         -        -         -
  Operating Income         $13,594   $14,803   $17,998   $8,704    $7,092

  Aviation Services
  Operating Revenues       $39,903   $33,454   $38,856  $43,949   $30,949
  Costs and Expenses:
    Operating expenses      29,137    26,345    26,960   30,583    22,346
    Administrative
     and general             4,158     3,494     4,571    3,579     1,858
    Depreciation
     and amortization        4,591     4,254     4,199    4,212     3,940
                            37,886    34,093    35,730   38,374    28,144

  Gains on Asset
   Dispositions              1,818       325     7,024      306         -
  Operating Income
   (Loss)                   $3,835     $(314)  $10,150   $5,881    $2,805

  Environmental Services
  Operating Revenues       $36,946   $27,923   $37,583  $27,466   $35,635
  Costs and Expenses:
    Operating expenses      26,345    20,508    21,852   17,400    27,347
    Administrative
     and general             5,156     4,405     4,669    4,546     4,177
    Depreciation and
     amortization              741       733       664      901       778
                            32,242    25,646    27,185   22,847    32,302

  Gains (Losses) on
   Asset Dispositions         (215)        -       (27)     (19)       42
  Operating Income          $4,489    $2,277   $10,371   $4,600    $3,375


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

  Harbor and Offshore
   Towing Services

  Operating Revenues       $12,156   $12,884   $11,949  $11,343         -
  Costs and Expenses:
    Operating expenses       8,336     6,841     7,043    7,673         -
    Administrative and
     general                 1,851     1,604     1,663    1,333         -
    Depreciation and
     amortization            1,275     1,259     1,303    1,226         -
                            11,462     9,704    10,009   10,232         -

  Gains on Asset
   Dispositions                  -         -         -        -         -
  Operating Income            $694    $3,180    $1,940   $1,111         -

  Corporate and
   Eliminations
  Operating Revenues          $(89)    $(410)    $(383)   $(156)    $(129)
  Costs and Expenses:
    Operating expenses         (77)     (422)     (395)    (141)     (129)
    Administrative and
     general                 8,352     8,522    10,979    9,018     4,483
    Depreciation and
     amortization              489       228       347      342        33
                             8,764     8,328    10,931    9,219     4,387

  Losses on Asset
   Dispositions                 (3)        -         -        -         -

  Operating Loss           $(8,856)  $(8,738) $(11,314) $(9,375)  $(4,516)



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

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

  Cash, Cash
   Equivalents,
   Restricted
   Cash,
   Securities,
   Construction
   Reserve Funds,
   and Title XI
   Reserve Funds    $803,360    $764,649   $684,521    $664,164   $533,417
  Receivables        278,000     270,794    260,831     267,108    200,476
  Current Assets     915,245     900,488    839,091     867,290    664,839
  Net Property and
   Equipment       1,737,811   1,733,757  1,759,393   1,784,083    934,213
  Total Assets     3,014,963   2,961,627  2,885,141   2,959,169  1,798,967
  Current Portion
   of Long-term
   Debt and Capital
   Lease
   Obligations         8,970      10,420     10,505      13,164         41
  Current
   Liabilities       287,797     280,279    247,906     209,396    125,114
  Long-term Debt &
   Capital
   Lease
   Obligations       955,567     964,096    977,635   1,126,431    597,467
  Stockholders'
   Equity          1,458,302   1,418,190   1,361,305  1,280,028    831,254



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